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Federal Form 1040x

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Federal Form 1040x

Federal form 1040x Publication 15-A - Main Content Table of Contents 1. Federal form 1040x Who Are Employees?Independent Contractors Common-Law Employees Statutory Employees Statutory Nonemployees Misclassification of Employees 2. Federal form 1040x Employee or Independent Contractor?Common-Law Rules Industry Examples 3. Federal form 1040x Employees of Exempt OrganizationsSocial security and Medicare taxes. Federal form 1040x FUTA tax. Federal form 1040x 4. Federal form 1040x Religious Exemptions and Special Rules for MinistersForm W-2. Federal form 1040x Self-employed. Federal form 1040x Employees. Federal form 1040x 5. Federal form 1040x Wages and Other CompensationRelocating for Temporary Work Assignments Employee Achievement Awards Scholarship and Fellowship Payments Outplacement Services Withholding for Idle Time Back Pay Supplemental Unemployment Benefits Golden Parachute Payments Interest-Free and Below-Market-Interest-Rate Loans Leave Sharing Plans Nonqualified Deferred Compensation Plans Tax-Sheltered Annuities Contributions to a Simplified Employee Pension (SEP) SIMPLE Retirement Plans 6. Federal form 1040x Sick Pay ReportingSick Pay Payments That Are Not Sick Pay Sick Pay Plan Third-Party Payers of Sick Pay Social Security, Medicare, and FUTA Taxes on Sick Pay Income Tax Withholding on Sick Pay Depositing and Reporting Example of Figuring and Reporting Sick Pay 7. Federal form 1040x Special Rules for Paying TaxesCommon Paymaster Agents Reporting Agents Employee's Portion of Taxes Paid by Employer International Social Security Agreements 8. Federal form 1040x Pensions and AnnuitiesFederal Income Tax Withholding 9. Federal form 1040x Alternative Methods for Figuring WithholdingTerm of continuous employment. Federal form 1040x Formula Tables for Percentage Method Withholding (for Automated Payroll Systems) Wage Bracket Percentage Method Tables (for Automated Payroll Systems) Combined Federal Income Tax, Employee Social Security Tax, and Employee Medicare Tax Withholding Tables 10. Federal form 1040x Tables for Withholding on Distributions of Indian Gaming Profits to Tribal MembersWithholding Tables How To Get Tax Help 1. Federal form 1040x Who Are Employees? Before you can know how to treat payments that you make to workers for services, you must first know the business relationship that exists between you and the person performing the services. Federal form 1040x The person performing the services may be: An independent contractor, A common-law employee, A statutory employee, or A statutory nonemployee. Federal form 1040x This discussion explains these four categories. Federal form 1040x A later discussion, Employee or Independent Contractor in section 2, points out the differences between an independent contractor and an employee and gives examples from various types of occupations. Federal form 1040x If an individual who works for you is not an employee under the common-law rules (see section 2), you generally do not have to withhold federal income tax from that individual's pay. Federal form 1040x However, in some cases you may be required to withhold under the backup withholding requirements on these payments. Federal form 1040x See Publication 15 (Circular E) for information on backup withholding. Federal form 1040x Independent Contractors People such as doctors, veterinarians, and auctioneers who follow an independent trade, business, or profession in which they offer their services to the public, are generally not employees. Federal form 1040x However, whether such people are employees or independent contractors depends on the facts in each case. Federal form 1040x The general rule is that an individual is an independent contractor if you, the person for whom the services are performed, have the right to control or direct only the result of the work and not the means and methods of accomplishing the result. Federal form 1040x Common-Law Employees Under common-law rules, anyone who performs services for you is generally your employee if you have the right to control what will be done and how it will be done. Federal form 1040x This is so even when you give the employee freedom of action. Federal form 1040x What matters is that you have the right to control the details of how the services are performed. Federal form 1040x For a discussion of facts that indicate whether an individual providing services is an independent contractor or employee, see section 2. Federal form 1040x If you have an employer-employee relationship, it makes no difference how it is labeled. Federal form 1040x The substance of the relationship, not the label, governs the worker's status. Federal form 1040x It does not matter whether the individual is employed full time or part time. Federal form 1040x For employment tax purposes, no distinction is made between classes of employees. Federal form 1040x Superintendents, managers, and other supervisory personnel are all employees. Federal form 1040x An officer of a corporation is generally an employee; however, an officer who performs no services or only minor services, and neither receives nor is entitled to receive any pay, is not considered an employee. Federal form 1040x A director of a corporation is not an employee with respect to services performed as a director. Federal form 1040x You generally have to withhold and pay income, social security, and Medicare taxes on wages that you pay to common-law employees. Federal form 1040x However, the wages of certain employees may be exempt from one or more of these taxes. Federal form 1040x See Employees of Exempt Organizations (section 3) and Religious Exemptions and Special Rules for Ministers (section 4). Federal form 1040x Leased employees. Federal form 1040x   Under certain circumstances, a firm that furnishes workers to other firms is the employer of those workers for employment tax purposes. Federal form 1040x For example, a temporary staffing service may provide the services of secretaries, nurses, and other similarly trained workers to its clients on a temporary basis. Federal form 1040x   The staffing service enters into contracts with the clients under which the clients specify the services to be provided and a fee is paid to the staffing service for each individual furnished. Federal form 1040x The staffing service has the right to control and direct the worker's services for the client, including the right to discharge or reassign the worker. Federal form 1040x The staffing service hires the workers, controls the payment of their wages, provides them with unemployment insurance and other benefits, and is the employer for employment tax purposes. Federal form 1040x For information on employee leasing as it relates to pension plan qualification requirements, see Leased employee in Publication 560, Retirement Plans for Small Business. Federal form 1040x Additional information. Federal form 1040x   For more information about the treatment of special types of employment, the treatment of special types of payments, and similar subjects, see Publication 15 (Circular E) or Publication 51 (Circular A), Agricultural Employer's Tax Guide. Federal form 1040x Statutory Employees If workers are independent contractors under the common law rules, such workers may nevertheless be treated as employees by statute, (also known as “statutory employees”) for certain employment tax purposes. Federal form 1040x This would happen if they fall within any one of the following four categories and meet the three conditions described next under Social security and Medicare taxes . Federal form 1040x A driver who distributes beverages (other than milk) or meat, vegetable, fruit, or bakery products; or who picks up and delivers laundry or dry cleaning, if the driver is your agent or is paid on commission. Federal form 1040x A full-time life insurance sales agent whose principal business activity is selling life insurance or annuity contracts, or both, primarily for one life insurance company. Federal form 1040x An individual who works at home on materials or goods that you supply and that must be returned to you or to a person you name, if you also furnish specifications for the work to be done. Federal form 1040x A full-time traveling or city salesperson who works on your behalf and turns in orders to you from wholesalers, retailers, contractors, or operators of hotels, restaurants, or other similar establishments. Federal form 1040x The goods sold must be merchandise for resale or supplies for use in the buyer's business operation. Federal form 1040x The work performed for you must be the salesperson's principal business activity. Federal form 1040x See Salesperson in section 2. Federal form 1040x Social security and Medicare taxes. Federal form 1040x   You must withhold social security and Medicare taxes from the wages of statutory employees if all three of the following conditions apply. Federal form 1040x The service contract states or implies that substantially all the services are to be performed personally by them. Federal form 1040x They do not have a substantial investment in the equipment and property used to perform the services (other than an investment in facilities for transportation, such as a car or truck). Federal form 1040x The services are performed on a continuing basis for the same payer. Federal form 1040x Federal unemployment (FUTA) tax. Federal form 1040x   For FUTA tax (the unemployment tax paid under the Federal Unemployment Tax Act), the term “employee” means the same as it does for social security and Medicare taxes, except that it does not include statutory employees defined above in categories 2 and 3. Federal form 1040x Any individual who is a statutory employee described above under category 1 or 4 is also an employee for FUTA tax purposes and subject to FUTA tax. Federal form 1040x Income tax. Federal form 1040x   Do not withhold federal income tax from the wages of statutory employees. Federal form 1040x Reporting payments to statutory employees. Federal form 1040x   Furnish Form W-2 to a statutory employee, and check “Statutory employee” in box 13. Federal form 1040x Show your payments to the employee as “other compensation” in box 1. Federal form 1040x Also, show social security wages in box 3, social security tax withheld in box 4, Medicare wages in box 5, and Medicare tax withheld in box 6. Federal form 1040x The statutory employee can deduct his or her trade or business expenses from the payments shown on Form W-2. Federal form 1040x He or she reports earnings as a statutory employee on line 1 of Schedule C (Form 1040), Profit or Loss From Business, or Schedule C-EZ (Form 1040), Net Profit From Business. Federal form 1040x A statutory employee's business expenses are deductible on Schedule C (Form 1040) or C-EZ (Form 1040) and are not subject to the reduction by 2% of his or her adjusted gross income that applies to common-law employees. Federal form 1040x H-2A agricultural workers. Federal form 1040x   On Form W-2, do not check box 13 (Statutory employee), as H-2A workers are not statutory employees. Federal form 1040x Statutory Nonemployees There are three categories of statutory nonemployees: direct sellers, licensed real estate agents, and certain companion sitters. Federal form 1040x Direct sellers and licensed real estate agents are treated as self-employed for all federal tax purposes, including income and employment taxes, if: Substantially all payments for their services as direct sellers or real estate agents are directly related to sales or other output, rather than to the number of hours worked, and Their services are performed under a written contract providing that they will not be treated as employees for federal tax purposes. Federal form 1040x Direct sellers. Federal form 1040x   Direct sellers include persons falling within any of the following three groups. Federal form 1040x Persons engaged in selling (or soliciting the sale of) consumer products in the home or place of business other than in a permanent retail establishment. Federal form 1040x Persons engaged in selling (or soliciting the sale of) consumer products to any buyer on a buy-sell basis, a deposit-commission basis, or any similar basis prescribed by regulations, for resale in the home or at a place of business other than in a permanent retail establishment. Federal form 1040x Persons engaged in the trade or business of delivering or distributing newspapers or shopping news (including any services directly related to such delivery or distribution). Federal form 1040x   Direct selling includes activities of individuals who attempt to increase direct sales activities of their direct sellers and who earn income based on the productivity of their direct sellers. Federal form 1040x Such activities include providing motivation and encouragement; imparting skills, knowledge, or experience; and recruiting. Federal form 1040x Licensed real estate agents. Federal form 1040x   This category includes individuals engaged in appraisal activities for real estate sales if they earn income based on sales or other output. Federal form 1040x Companion sitters. Federal form 1040x   Companion sitters are individuals who furnish personal attendance, companionship, or household care services to children or to individuals who are elderly or disabled. Federal form 1040x A person engaged in the trade or business of putting the sitters in touch with individuals who wish to employ them (that is, a companion sitting placement service) will not be treated as the employer of the sitters if that person does not receive or pay the salary or wages of the sitters and is compensated by the sitters or the persons who employ them on a fee basis. Federal form 1040x Companion sitters who are not employees of a companion sitting placement service are generally treated as self-employed for all federal tax purposes. Federal form 1040x Misclassification of Employees Consequences of treating an employee as an independent contractor. Federal form 1040x   If you classify an employee as an independent contractor and you have no reasonable basis for doing so, you are liable for employment taxes for that worker and the relief provision, discussed next, will not apply. Federal form 1040x See section 2 in Publication 15 (Circular E) for more information. Federal form 1040x Relief provision. Federal form 1040x   If you have a reasonable basis for not treating a worker as an employee, you may be relieved from having to pay employment taxes for that worker. Federal form 1040x To get this relief, you must file all required federal information returns on a basis consistent with your treatment of the worker. Federal form 1040x You (or your predecessor) must not have treated any worker holding a substantially similar position as an employee for any periods beginning after 1977. Federal form 1040x Technical service specialists. Federal form 1040x   This relief provision does not apply for a technical services specialist you provide to another business under an arrangement between you and the other business. Federal form 1040x A technical service specialist is an engineer, designer, drafter, computer programmer, systems analyst, or other similarly skilled worker engaged in a similar line of work. Federal form 1040x   This limit on the application of the rule does not affect the determination of whether such workers are employees under the common-law rules. Federal form 1040x The common-law rules control whether the specialist is treated as an employee or an independent contractor. Federal form 1040x However, if you directly contract with a technical service specialist to provide services for your business and not for another business, you may still be entitled to the relief provision. Federal form 1040x Test proctors and room supervisors. Federal form 1040x   The consistent treatment requirement does not apply to services performed after December 31, 2006, by an individual as a test proctor or room supervisor assisting in the administration of college entrance or placement examinations if the individual: Is performing the services for a section 501(c) organization exempt from tax under section 501(a) of the code, and Is not otherwise treated as an employee of the organization for employment taxes. Federal form 1040x Voluntary Classification Settlement Program (VCSP). Federal form 1040x   Employers who are currently treating their workers (or a class or group of workers) as independent contractors or other nonemployees and want to voluntarily reclassify their workers as employees for future tax periods may be eligible to participate in the VCSP if certain requirements are met. Federal form 1040x To apply, use Form 8952, Application for Voluntary Classification Settlement Program (VCSP). Federal form 1040x For more information, visit IRS. Federal form 1040x gov and enter “VCSP” in the search box. Federal form 1040x 2. Federal form 1040x Employee or Independent Contractor? An employer must generally withhold federal income taxes, withhold and pay over social security and Medicare taxes, and pay unemployment tax on wages paid to an employee. Federal form 1040x An employer does not generally have to withhold or pay over any federal taxes on payments to independent contractors. Federal form 1040x Common-Law Rules To determine whether an individual is an employee or an independent contractor under the common law, the relationship of the worker and the business must be examined. Federal form 1040x In any employee-independent contractor determination, all information that provides evidence of the degree of control and the degree of independence must be considered. Federal form 1040x Facts that provide evidence of the degree of control and independence fall into three categories: behavioral control, financial control, and the type of relationship of the parties. Federal form 1040x These facts are discussed next. Federal form 1040x Behavioral control. Federal form 1040x   Facts that show whether the business has a right to direct and control how the worker does the task for which the worker is hired include the type and degree of: Instructions that the business gives to the worker. Federal form 1040x   An employee is generally subject to the business' instructions about when, where, and how to work. Federal form 1040x All of the following are examples of types of instructions about how to do work. Federal form 1040x When and where to do the work. Federal form 1040x What tools or equipment to use. Federal form 1040x What workers to hire or to assist with the work. Federal form 1040x Where to purchase supplies and services. Federal form 1040x What work must be performed by a specified  individual. Federal form 1040x What order or sequence to follow. Federal form 1040x   The amount of instruction needed varies among different jobs. Federal form 1040x Even if no instructions are given, sufficient behavioral control may exist if the employer has the right to control how the work results are achieved. Federal form 1040x A business may lack the knowledge to instruct some highly specialized professionals; in other cases, the task may require little or no instruction. Federal form 1040x The key consideration is whether the business has retained the right to control the details of a worker's performance or instead has given up that right. Federal form 1040x Training that the business gives to the worker. Federal form 1040x   An employee may be trained to perform services in a particular manner. Federal form 1040x Independent contractors ordinarily use their own methods. Federal form 1040x Financial control. Federal form 1040x   Facts that show whether the business has a right to control the business aspects of the worker's job include: The extent to which the worker has unreimbursed business expenses. Federal form 1040x   Independent contractors are more likely to have unreimbursed expenses than are employees. Federal form 1040x Fixed ongoing costs that are incurred regardless of whether work is currently being performed are especially important. Federal form 1040x However, employees may also incur unreimbursed expenses in connection with the services that they perform for their employer. Federal form 1040x The extent of the worker's investment. Federal form 1040x   An independent contractor often has a significant investment in the facilities or tools he or she uses in performing services for someone else. Federal form 1040x However, a significant investment is not necessary for independent contractor status. Federal form 1040x The extent to which the worker makes his or her services available to the relevant market. Federal form 1040x   An independent contractor is generally free to seek out business opportunities. Federal form 1040x Independent contractors often advertise, maintain a visible business location, and are available to work in the relevant market. Federal form 1040x How the business pays the worker. Federal form 1040x   An employee is generally guaranteed a regular wage amount for an hourly, weekly, or other period of time. Federal form 1040x This usually indicates that a worker is an employee, even when the wage or salary is supplemented by a commission. Federal form 1040x An independent contractor is often paid a flat fee or on a time and materials basis for the job. Federal form 1040x However, it is common in some professions, such as law, to pay independent contractors hourly. Federal form 1040x The extent to which the worker can realize a profit or loss. Federal form 1040x   An independent contractor can make a profit or loss. Federal form 1040x Type of relationship. Federal form 1040x   Facts that show the parties' type of relationship include: Written contracts describing the relationship the parties intended to create. Federal form 1040x Whether or not the business provides the worker with employee-type benefits, such as insurance, a pension plan, vacation pay, or sick pay. Federal form 1040x The permanency of the relationship. Federal form 1040x If you engage a worker with the expectation that the relationship will continue indefinitely, rather than for a specific project or period, this is generally considered evidence that your intent was to create an employer-employee relationship. Federal form 1040x The extent to which services performed by the worker are a key aspect of the regular business of the company. Federal form 1040x If a worker provides services that are a key aspect of your regular business activity, it is more likely that you will have the right to direct and control his or her activities. Federal form 1040x For example, if a law firm hires an attorney, it is likely that it will present the attorney's work as its own and would have the right to control or direct that work. Federal form 1040x This would indicate an employer-employee relationship. Federal form 1040x IRS help. Federal form 1040x   If you want the IRS to determine whether or not a worker is an employee, file Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding, with the IRS. Federal form 1040x Industry Examples The following examples may help you properly classify your workers. Federal form 1040x Building and Construction Industry Example 1. Federal form 1040x Jerry Jones has an agreement with Wilma White to supervise the remodeling of her house. Federal form 1040x She did not advance funds to help him carry on the work. Federal form 1040x She makes direct payments to the suppliers for all necessary materials. Federal form 1040x She carries liability and workers' compensation insurance covering Jerry and others that he engaged to assist him. Federal form 1040x She pays them an hourly rate and exercises almost constant supervision over the work. Federal form 1040x Jerry is not free to transfer his assistants to other jobs. Federal form 1040x He may not work on other jobs while working for Wilma. Federal form 1040x He assumes no responsibility to complete the work and will incur no contractual liability if he fails to do so. Federal form 1040x He and his assistants perform personal services for hourly wages. Federal form 1040x Jerry Jones and his assistants are employees of Wilma White. Federal form 1040x Example 2. Federal form 1040x Milton Manning, an experienced tile setter, orally agreed with a corporation to perform full-time services at construction sites. Federal form 1040x He uses his own tools and performs services in the order designated by the corporation and according to its specifications. Federal form 1040x The corporation supplies all materials, makes frequent inspections of his work, pays him on a piecework basis, and carries workers' compensation insurance on him. Federal form 1040x He does not have a place of business or hold himself out to perform similar services for others. Federal form 1040x Either party can end the services at any time. Federal form 1040x Milton Manning is an employee of the corporation. Federal form 1040x Example 3. Federal form 1040x Wallace Black agreed with the Sawdust Co. Federal form 1040x to supply the construction labor for a group of houses. Federal form 1040x The company agreed to pay all construction costs. Federal form 1040x However, he supplies all the tools and equipment. Federal form 1040x He performs personal services as a carpenter and mechanic for an hourly wage. Federal form 1040x He also acts as superintendent and foreman and engages other individuals to assist him. Federal form 1040x The company has the right to select, approve, or discharge any helper. Federal form 1040x A company representative makes frequent inspections of the construction site. Federal form 1040x When a house is finished, Wallace is paid a certain percentage of its costs. Federal form 1040x He is not responsible for faults, defects of construction, or wasteful operation. Federal form 1040x At the end of each week, he presents the company with a statement of the amount that he has spent, including the payroll. Federal form 1040x The company gives him a check for that amount from which he pays the assistants, although he is not personally liable for their wages. Federal form 1040x Wallace Black and his assistants are employees of the Sawdust Co. Federal form 1040x Example 4. Federal form 1040x Bill Plum contracted with Elm Corporation to complete the roofing on a housing complex. Federal form 1040x A signed contract established a flat amount for the services rendered by Bill Plum. Federal form 1040x Bill is a licensed roofer and carries workers' compensation and liability insurance under the business name, Plum Roofing. Federal form 1040x He hires his own roofers who are treated as employees for federal employment tax purposes. Federal form 1040x If there is a problem with the roofing work, Plum Roofing is responsible for paying for any repairs. Federal form 1040x Bill Plum, doing business as Plum Roofing, is an independent contractor. Federal form 1040x Example 5. Federal form 1040x Vera Elm, an electrician, submitted a job estimate to a housing complex for electrical work at $16 per hour for 400 hours. Federal form 1040x She is to receive $1,280 every 2 weeks for the next 10 weeks. Federal form 1040x This is not considered payment by the hour. Federal form 1040x Even if she works more or less than 400 hours to complete the work, Vera Elm will receive $6,400. Federal form 1040x She also performs additional electrical installations under contracts with other companies, that she obtained through advertisements. Federal form 1040x Vera is an independent contractor. Federal form 1040x Trucking Industry Example. Federal form 1040x Rose Trucking contracts to deliver material for Forest, Inc. Federal form 1040x , at $140 per ton. Federal form 1040x Rose Trucking is not paid for any articles that are not delivered. Federal form 1040x At times, Jan Rose, who operates as Rose Trucking, may also lease another truck and engage a driver to complete the contract. Federal form 1040x All operating expenses, including insurance coverage, are paid by Jan Rose. Federal form 1040x All equipment is owned or rented by Jan and she is responsible for all maintenance. Federal form 1040x None of the drivers are provided by Forest, Inc. Federal form 1040x Jan Rose, operating as Rose Trucking, is an independent contractor. Federal form 1040x Computer Industry Example. Federal form 1040x Steve Smith, a computer programmer, is laid off when Megabyte, Inc. Federal form 1040x , downsizes. Federal form 1040x Megabyte agrees to pay Steve a flat amount to complete a one-time project to create a certain product. Federal form 1040x It is not clear how long that it will take to complete the project, and Steve is not guaranteed any minimum payment for the hours spent on the program. Federal form 1040x Megabyte provides Steve with no instructions beyond the specifications for the product itself. Federal form 1040x Steve and Megabyte have a written contract, which provides that Steve is considered to be an independent contractor, is required to pay federal and state taxes, and receives no benefits from Megabyte. Federal form 1040x Megabyte will file Form 1099-MISC, Miscellaneous Income, to report the amount paid to Steve. Federal form 1040x Steve works at home and is not expected or allowed to attend meetings of the software development group. Federal form 1040x Steve is an independent contractor. Federal form 1040x Automobile Industry Example 1. Federal form 1040x Donna Lee is a salesperson employed on a full-time basis by Bob Blue, an auto dealer. Federal form 1040x She works six days a week and is on duty in Bob's showroom on certain assigned days and times. Federal form 1040x She appraises trade-ins, but her appraisals are subject to the sales manager's approval. Federal form 1040x Lists of prospective customers belong to the dealer. Federal form 1040x She is required to develop leads and report results to the sales manager. Federal form 1040x Because of her experience, she requires only minimal assistance in closing and financing sales and in other phases of her work. Federal form 1040x She is paid a commission and is eligible for prizes and bonuses offered by Bob. Federal form 1040x Bob also pays the cost of health insurance and group-term life insurance for Donna. Federal form 1040x Donna is an employee of Bob Blue. Federal form 1040x Example 2. Federal form 1040x Sam Sparks performs auto repair services in the repair department of an auto sales company. Federal form 1040x He works regular hours and is paid on a percentage basis. Federal form 1040x He has no investment in the repair department. Federal form 1040x The sales company supplies all facilities, repair parts, and supplies; issues instructions on the amounts to be charged, parts to be used, and the time for completion of each job; and checks all estimates and repair orders. Federal form 1040x Sam is an employee of the sales company. Federal form 1040x Example 3. Federal form 1040x An auto sales agency furnishes space for Helen Bach to perform auto repair services. Federal form 1040x She provides her own tools, equipment, and supplies. Federal form 1040x She seeks out business from insurance adjusters and other individuals and does all of the body and paint work that comes to the agency. Federal form 1040x She hires and discharges her own helpers, determines her own and her helpers' working hours, quotes prices for repair work, makes all necessary adjustments, assumes all losses from uncollectible accounts, and receives, as compensation for her services, a large percentage of the gross collections from the auto repair shop. Federal form 1040x Helen is an independent contractor and the helpers are her employees. Federal form 1040x Attorney Example. Federal form 1040x Donna Yuma is a sole practitioner who rents office space and pays for the following items: telephone, computer, on-line legal research linkup, fax machine, and photocopier. Federal form 1040x Donna buys office supplies and pays bar dues and membership dues for three other professional organizations. Federal form 1040x Donna has a part-time receptionist who also does the bookkeeping. Federal form 1040x She pays the receptionist, withholds and pays federal and state employment taxes, and files a Form W-2 each year. Federal form 1040x For the past 2 years, Donna has had only three clients, corporations with which there have been long-standing relationships. Federal form 1040x Donna charges the corporations an hourly rate for her services, sending monthly bills detailing the work performed for the prior month. Federal form 1040x The bills include charges for long distance calls, on-line research time, fax charges, photocopies, postage, and travel, costs for which the corporations have agreed to reimburse her. Federal form 1040x Donna is an independent contractor. Federal form 1040x Taxicab Driver Example. Federal form 1040x Tom Spruce rents a cab from Taft Cab Co. Federal form 1040x for $150 per day. Federal form 1040x He pays the costs of maintaining and operating the cab. Federal form 1040x Tom Spruce keeps all fares that he receives from customers. Federal form 1040x Although he receives the benefit of Taft's two-way radio communication equipment, dispatcher, and advertising, these items benefit both Taft and Tom Spruce. Federal form 1040x Tom Spruce is an independent contractor. Federal form 1040x Salesperson To determine whether salespersons are employees under the usual common-law rules, you must evaluate each individual case. Federal form 1040x If a salesperson who works for you does not meet the tests for a common-law employee, discussed earlier in this section, you do not have to withhold federal income tax from his or her pay (see Statutory Employees in section 1). Federal form 1040x However, even if a salesperson is not an employee under the usual common-law rules for income tax withholding, his or her pay may still be subject to social security, Medicare, and FUTA taxes as a statutory employee. Federal form 1040x To determine whether a salesperson is an employee for social security, Medicare, and FUTA tax purposes, the salesperson must meet all eight elements of the statutory employee test. Federal form 1040x A salesperson is a statutory employee for social security, Medicare, and FUTA tax purposes if he or she: Works full time for one person or company except, possibly, for sideline sales activities on behalf of some other person, Sells on behalf of, and turns his or her orders over to, the person or company for which he or she works, Sells to wholesalers, retailers, contractors, or operators of hotels, restaurants, or similar establishments, Sells merchandise for resale, or supplies for use in the customer's business, Agrees to do substantially all of this work personally, Has no substantial investment in the facilities used to do the work, other than in facilities for transportation, Maintains a continuing relationship with the person or company for which he or she works, and Is not an employee under common-law rules. Federal form 1040x 3. Federal form 1040x Employees of Exempt Organizations Many nonprofit organizations are exempt from federal income tax. Federal form 1040x Although they do not have to pay federal income tax themselves, they must still withhold federal income tax from the pay of their employees. Federal form 1040x However, there are special social security, Medicare, and FUTA tax rules that apply to the wages that they pay their employees. Federal form 1040x Section 501(c)(3) organizations. Federal form 1040x   Nonprofit organizations that are exempt from federal income tax under section 501(c)(3) of the Internal Revenue Code include any community chest, fund, or foundation organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary or educational purposes, fostering national or international amateur sports competition, or for the prevention of cruelty to children or animals. Federal form 1040x These organizations are usually corporations and are exempt from federal income tax under section 501(a). Federal form 1040x Social security and Medicare taxes. Federal form 1040x   Wages paid to employees of section 501(c)(3) organizations are subject to social security and Medicare taxes unless one of the following situations applies. Federal form 1040x The organization pays an employee less than $100 in a calendar year. Federal form 1040x The organization is a church or church-controlled organization opposed for religious reasons to the payment of social security and Medicare taxes and has filed Form 8274, Certification by Churches and Qualified Church-Controlled Organizations Electing Exemption From Employer Social Security and Medicare Taxes, to elect exemption from social security and Medicare taxes. Federal form 1040x The organization must have filed for exemption before the first date on which a quarterly employment tax return (Form 941) or annual employment tax return (Form 944) would otherwise be due. Federal form 1040x   An employee of a church or church-controlled organization that is exempt from social security and Medicare taxes must pay self-employment tax if the employee is paid $108. Federal form 1040x 28 or more in a year. Federal form 1040x However, an employee who is a member of a qualified religious sect can apply for an exemption from the self-employment tax by filing Form 4029, Application for Exemption From Social Security and Medicare Taxes and Waiver of Benefits. Federal form 1040x See Members of recognized religious sects opposed to insurance in section 4. Federal form 1040x FUTA tax. Federal form 1040x   An organization that is exempt from federal income tax under section 501(c)(3) of the Internal Revenue Code is also exempt from FUTA tax. Federal form 1040x This exemption cannot be waived. Federal form 1040x Do not file Form 940 to report wages paid by these organizations or pay the tax. Federal form 1040x Note. Federal form 1040x An organization wholly owned by a state or its political subdivision should contact the appropriate state official for information about reporting and getting social security and Medicare coverage for its employees. Federal form 1040x Other than section 501(c)(3) organizations. Federal form 1040x   Nonprofit organizations that are not section 501(c)(3) organizations may also be exempt from federal income tax under section 501(a) or section 521. Federal form 1040x However, these organizations are not exempt from withholding federal income, social security, or Medicare tax from their employees' pay, or from paying FUTA tax. Federal form 1040x Two special rules for social security, Medicare, and FUTA taxes apply. Federal form 1040x If an employee is paid less than $100 during a calendar year, his or her wages are not subject to social security and Medicare taxes. Federal form 1040x If an employee is paid less than $50 in a calendar quarter, his or her wages are not subject to FUTA tax for the quarter. Federal form 1040x The above rules do not apply to employees who work for pension plans and other similar organizations described in section 401(a). Federal form 1040x 4. Federal form 1040x Religious Exemptions and Special Rules for Ministers Special rules apply to the treatment of ministers for social security and Medicare tax purposes. Federal form 1040x An exemption from social security and Medicare taxes is available for ministers and certain other religious workers and members of certain recognized religious sects. Federal form 1040x For more information on getting an exemption, see Publication 517, Social Security and Other Information for Members of the Clergy and Religious Workers. Federal form 1040x Ministers. Federal form 1040x   Ministers are individuals who are duly ordained, commissioned, or licensed by a religious body constituting a church or church denomination. Federal form 1040x They are given the authority to conduct religious worship, perform sacerdotal functions, and administer ordinances and sacraments according to the prescribed tenets and practices of that religious organization. Federal form 1040x   Ministers are employees if they perform services in the exercise of ministry and are subject to your will and control. Federal form 1040x The common-law rules discussed in section 1 and section 2 should be applied to determine whether a minister is your employee or is self-employed. Federal form 1040x Whether the minister is an employee or self-employed, the earnings of a minister are not subject to federal income, social security, and Medicare tax withholding. Federal form 1040x However, even if the minister is a common law employee, the earnings as reported on the minister's Form 1040 are subject to self-employment tax and federal income tax. Federal form 1040x You do not withhold these taxes from wages earned by a minister, but if the minister is your employee, you may agree with the minister to voluntarily withhold tax to cover the minister's liability for self-employment tax and federal income tax. Federal form 1040x For more information, see Publication 517. Federal form 1040x Form W-2. Federal form 1040x   If your minister is an employee, report all taxable compensation as wages in box 1 on Form W-2. Federal form 1040x Include in this amount expense allowances or reimbursements paid under a nonaccountable plan, discussed in section 5 of Publication 15 (Circular E). Federal form 1040x Do not include a parsonage allowance (excludable housing allowance) in this amount. Federal form 1040x You may report a designated parsonage or rental allowance (housing allowance) and a utilities allowance, or the rental value of housing provided in a separate statement or in box 14 on Form W-2. Federal form 1040x Do not show on Form W-2, Form 941, or Form 944 any amount as social security or Medicare wages, or any withholding for social security or Medicare taxes. Federal form 1040x If you withheld federal income tax from the minister under a voluntary agreement, this amount should be shown in box 2 on Form W-2 as federal income tax withheld. Federal form 1040x For more information on ministers, see Publication 517. Federal form 1040x Exemptions for ministers and others. Federal form 1040x   Certain ordained ministers, Christian Science practitioners, and members of religious orders who have not taken a vow of poverty may apply to exempt their earnings from self-employment tax on religious grounds. Federal form 1040x The application must be based on conscientious opposition because of personal considerations to public insurance that makes payments in the event of death, disability, old age, or retirement, or that makes payments toward the cost of, or provides services for, medical care, including social security and Medicare benefits. Federal form 1040x The exemption applies only to qualified services performed for the religious organization. Federal form 1040x See Revenue Procedure 91-20, 1991-1 C. Federal form 1040x B. Federal form 1040x 524, for guidelines to determine whether an organization is a religious order or whether an individual is a member of a religious order. Federal form 1040x   To apply for the exemption, the employee should file Form 4361, Application for Exemption From Self-Employment Tax for Use by Ministers, Members of Religious Orders and Christian Science Practitioners. Federal form 1040x See Publication 517 for more information about claiming an exemption from self-employment tax using Form 4361. Federal form 1040x Members of recognized religious sects opposed to insurance. Federal form 1040x   If you belong to a recognized religious sect or to a division of such sect that is opposed to insurance, you may qualify for an exemption from the self-employment tax. Federal form 1040x To qualify, you must be conscientiously opposed to accepting the benefits of any public or private insurance that makes payments because of death, disability, old age, or retirement, or makes payments toward the cost of, or provides services for, medical care (including social security and Medicare benefits). Federal form 1040x If you buy a retirement annuity from an insurance company, you will not be eligible for this exemption. Federal form 1040x Religious opposition based on the teachings of the sect is the only legal basis for the exemption. Federal form 1040x In addition, your religious sect (or division) must have existed since December 31, 1950. Federal form 1040x Self-employed. Federal form 1040x   If you are self-employed and a member of a recognized religious sect opposed to insurance, you can apply for exemption by filing Form 4029 to waive all social security and Medicare benefits. Federal form 1040x Employees. Federal form 1040x   The social security and Medicare tax exemption available to the self-employed who are members of a recognized religious sect opposed to insurance is also available to their employees who are members of such a sect. Federal form 1040x This applies to partnerships only if each partner is a member of the sect. Federal form 1040x This exemption for employees applies only if both the employee and the employer are members of such a sect, and the employer has an exemption. Federal form 1040x To get the exemption, the employee must file Form 4029. Federal form 1040x   An employee of a church or church-controlled organization that is exempt from social security and Medicare taxes can also apply for an exemption on Form 4029. Federal form 1040x 5. Federal form 1040x Wages and Other Compensation Publication 15 (Circular E) provides a general discussion of taxable wages. Federal form 1040x Publication 15-B discusses fringe benefits. Federal form 1040x The following topics supplement those discussions. Federal form 1040x Relocating for Temporary Work Assignments If an employee is given a temporary work assignment away from his or her regular place of work, certain travel expenses reimbursed or paid directly by the employer in accordance with an accountable plan (see section 5 in Publication 15 (Circular E)) may be excludable from the employee's wages. Federal form 1040x Generally, a temporary work assignment in a single location is one that is realistically expected to last (and does in fact last) for 1 year or less. Federal form 1040x If the employee's new work assignment is indefinite, any living expenses reimbursed or paid by the employer (other than qualified moving expenses) must be included in the employee's wages as compensation. Federal form 1040x For the travel expenses to be excludable: The new work location must be outside of the city or general area of the employee's regular work place or post of duty, The travel expenses must otherwise qualify as deductible by the employee, and The expenses must be for the period during which the employee is at the temporary work location. Federal form 1040x If you reimburse or pay any personal expenses of an employee during his or her temporary work assignment, such as expenses for home leave for family members or for vacations, these amounts must be included in the employee's wages. Federal form 1040x See chapter 1 of Publication 463, Travel, Entertainment, Gift, and Car Expenses, and section 5 of Publication 15 (Circular E), for more information. Federal form 1040x These rules generally apply to temporary work assignments both inside and outside the U. Federal form 1040x S. Federal form 1040x Employee Achievement Awards Do not withhold federal income, social security, or Medicare taxes on the fair market value of an employee achievement award if it is excludable from your employee's gross income. Federal form 1040x To be excludable from your employee's gross income, the award must be tangible personal property (not cash, gift certificates, or securities) given to an employee for length of service or safety achievement, awarded as part of a meaningful presentation, and awarded under circumstances that do not indicate that the payment is disguised compensation. Federal form 1040x Excludable employee achievement awards also are not subject to FUTA tax. Federal form 1040x Limits. Federal form 1040x   The most that you can exclude for the cost of all employee achievement awards to the same employee for the year is $400. Federal form 1040x A higher limit of $1,600 applies to qualified plan awards. Federal form 1040x Qualified plan awards are employee achievement awards under a written plan that does not discriminate in favor of highly compensated employees. Federal form 1040x An award cannot be treated as a qualified plan award if the average cost per recipient of all awards under all of your qualified plans is more than $400. Federal form 1040x   If during the year an employee receives awards not made under a qualified plan and also receives awards under a qualified plan, the exclusion for the total cost of all awards to that employee cannot be more than $1,600. Federal form 1040x The $400 and $1,600 limits cannot be added together to exclude more than $1,600 for the cost of awards to any one employee during the year. Federal form 1040x Scholarship and Fellowship Payments Only amounts that you pay as a qualified scholarship to a candidate for a degree may be excluded from the recipient's gross income. Federal form 1040x A qualified scholarship is any amount granted as a scholarship or fellowship that is used for: Tuition and fees required to enroll in, or to attend, an educational institution, or Fees, books, supplies, and equipment that are required for courses at the educational institution. Federal form 1040x The exclusion from income does not apply to the portion of any amount received that represents payment for teaching, research, or other services required as a condition of receiving the scholarship or tuition reduction. Federal form 1040x These amounts are reportable on Form W-2. Federal form 1040x However, the exclusion will still apply for any amount received under two specific programs—the National Health Service Corps Scholarship Program and the Armed Forces Health Professions Scholarship and Financial Assistance Program—despite any service condition attached to those amounts. Federal form 1040x Any amounts that you pay for room and board are not excludable from the recipient's gross income. Federal form 1040x A qualified scholarship is not subject to social security, Medicare, and FUTA taxes, or federal income tax withholding. Federal form 1040x For more information, see Publication 970, Tax Benefits for Education. Federal form 1040x Outplacement Services If you provide outplacement services to your employees to help them find new employment (such as career counseling, resume assistance, or skills assessment), the value of these benefits may be income to them and subject to all withholding taxes. Federal form 1040x However, the value of these services will not be subject to any employment taxes if: You derive a substantial business benefit from providing the services (such as improved employee morale or business image) separate from the benefit that you would receive from the mere payment of additional compensation, and The employee would be able to deduct the cost of the services as employee business expenses if he or she had paid for them. Federal form 1040x However, if you receive no additional benefit from providing the services, or if the services are not provided on the basis of employee need, then the value of the services is treated as wages and is subject to federal income tax withholding and social security and Medicare taxes. Federal form 1040x Similarly, if an employee receives the outplacement services in exchange for reduced severance pay (or other taxable compensation), then the amount the severance pay is reduced is treated as wages for employment tax purposes. Federal form 1040x Withholding for Idle Time Payments made under a voluntary guarantee to employees for idle time (any time during which an employee performs no services) are wages for the purposes of social security, Medicare, and FUTA taxes, and federal income tax withholding. Federal form 1040x Back Pay Treat back pay as wages in the year paid and withhold and pay employment taxes as required. Federal form 1040x If back pay was awarded by a court or government agency to enforce a federal or state statute protecting an employee's right to employment or wages, special rules apply for reporting those wages to the Social Security Administration. Federal form 1040x These rules also apply to litigation actions and settlement agreements or agency directives that are resolved out of court and not under a court decree or order. Federal form 1040x Examples of pertinent statutes include, but are not limited to, the National Labor Relations Act, Fair Labor Standards Act, Equal Pay Act, and Age Discrimination in Employment Act. Federal form 1040x See Publication 957, Reporting Back Pay and Special Wage Payments to the Social Security Administration, and Form SSA-131, Employer Report of Special Wage Payments, for details. Federal form 1040x Supplemental Unemployment Benefits If you pay, under a plan, supplemental unemployment benefits to a former employee, all or part of the payments may be taxable and subject to federal income tax withholding, depending on how the plan is funded. Federal form 1040x Amounts that represent a return to the employee of amounts previously subject to tax are not taxable and are not subject to withholding. Federal form 1040x You should withhold federal income tax on the taxable part of the payments made, under a plan, to an employee who is involuntarily separated because of a reduction in force, discontinuance of a plant or operation, or other similar condition. Federal form 1040x It does not matter whether the separation is temporary or permanent. Federal form 1040x There are special rules that apply in determining whether benefits qualify as supplemental unemployment benefits that are excluded from wages for social security, Medicare, and FUTA tax purposes. Federal form 1040x To qualify as supplemental unemployment benefits for these purposes, the benefits must meet the following requirements. Federal form 1040x Benefits are paid only to unemployed former employees who are laid off by the employer. Federal form 1040x Eligibility for benefits depends on meeting prescribed conditions after termination. Federal form 1040x The amount of weekly benefits payable is based upon state unemployment benefits, other compensation allowable under state law, and the amount of regular weekly pay. Federal form 1040x The right to benefits does not accrue until a prescribed period after termination. Federal form 1040x Benefits are not attributable to the performance of particular services. Federal form 1040x No employee has any right to the benefits until qualified and eligible to receive benefits. Federal form 1040x Benefits may not be paid in a lump sum. Federal form 1040x Withholding on taxable supplemental unemployment benefits must be based on the withholding certificate (Form W-4) that the employee gave to you. Federal form 1040x Golden Parachute Payments A golden parachute payment, in general, is a payment made under a contract entered into by a corporation and key personnel. Federal form 1040x Under the agreement, the corporation agrees to pay certain amounts to its key personnel in the event of a change in ownership or control of the corporation. Federal form 1040x Payments to employees under golden parachute contracts are subject to social security, Medicare, and FUTA taxes, and federal income tax withholding. Federal form 1040x See Regulations section 1. Federal form 1040x 280G-1 for more information. Federal form 1040x No deduction is allowed to the corporation for any excess parachute payment. Federal form 1040x To determine the amount of the excess parachute payment, you must first determine if there is a parachute payment for purposes of section 280G. Federal form 1040x A parachute payment for purposes of section 280G is any payment that meets all of the following. Federal form 1040x The payment is in the nature of compensation. Federal form 1040x The payment is to, or for the benefit of, a disqualified individual. Federal form 1040x A disqualified individual is anyone who at any time during the 12-month period prior to and ending on the date of the change in ownership or control of the corporation (the disqualified individual determination period) was an employee or independent contractor and was, in regard to that corporation, a shareholder, an officer, or highly compensated individual. Federal form 1040x The payment is contingent on a change in ownership of the corporation, the effective control of the corporation, or the ownership of a substantial portion of the assets of the corporation. Federal form 1040x The payment has an aggregate present value of at least three times the individual's base amount. Federal form 1040x The base amount is the average annual compensation for service includible in the individual's gross income over the most recent 5 taxable years. Federal form 1040x An excess parachute payment amount is the excess of any parachute payment over the base amount. Federal form 1040x For more information, see Regulations section 1. Federal form 1040x 280G-1. Federal form 1040x The recipient of an excess parachute payment is subject to a 20% nondeductible excise tax. Federal form 1040x If the recipient is an employee, the 20% excise tax is to be withheld by the corporation. Federal form 1040x Example. Federal form 1040x An officer of a corporation receives a golden parachute payment of $400,000. Federal form 1040x This is more than three times greater than his or her average compensation of $100,000 over the previous 5-year period. Federal form 1040x The excess parachute payment is $300,000 ($400,000 minus $100,000). Federal form 1040x The corporation cannot deduct the $300,000 and must withhold the excise tax of $60,000 (20% of $300,000). Federal form 1040x Reporting golden parachute payments. Federal form 1040x   Golden parachute payments to employees must be reported on Form W-2. Federal form 1040x See the General Instructions for Forms W-2 and W-3 for details. Federal form 1040x For nonemployee reporting of these payments, see Box 7. Federal form 1040x Nonemployee Compensation in the Instructions for Form 1099-MISC. Federal form 1040x Exempt payments. Federal form 1040x   Payments by most small business corporations and payments under certain qualified plans are exempt from the golden parachute rules. Federal form 1040x See section 280G(b)(5) and (6) for more information. Federal form 1040x Interest-Free and Below-Market-Interest-Rate Loans In general, if an employer lends an employee more than $10,000 at an interest rate less than the current applicable federal rate (AFR), the difference between the interest paid and the interest that would be paid under the AFR is considered additional compensation to the employee. Federal form 1040x This rule applies to a loan of $10,000 or less if one of its principal purposes is the avoidance of federal tax. Federal form 1040x This additional compensation to the employee is subject to social security, Medicare, and FUTA taxes, but not to federal income tax withholding. Federal form 1040x Include it in compensation on Form W-2 (or Form 1099-MISC for an independent contractor). Federal form 1040x The AFR is established monthly and published by the IRS each month in the Internal Revenue Bulletin. Federal form 1040x You can get these rates by calling 1-800-829-4933 or by visiting IRS. Federal form 1040x gov. Federal form 1040x For more information, see section 7872 and its related regulations. Federal form 1040x Leave Sharing Plans If you establish a leave sharing plan for your employees that allows them to transfer leave to other employees for medical emergencies, the amounts paid to the recipients of the leave are considered wages. Federal form 1040x These amounts are includible in the gross income of the recipients and are subject to social security, Medicare, and FUTA taxes, and federal income tax withholding. Federal form 1040x Do not include these amounts in the income of the transferors. Federal form 1040x These rules apply only to leave sharing plans that permit employees to transfer leave to other employees for medical emergencies. Federal form 1040x Nonqualified Deferred Compensation Plans Income Tax and Reporting Section 409A provides that all amounts deferred under a nonqualified deferred compensation (NQDC) plan for all tax years are currently includible in gross income (to the extent not subject to a substantial risk of forfeiture and not previously included in gross income) and subject to additional taxes, unless certain requirements are met pertaining to, among other things, elections to defer compensation and distributions under a NQDC plan. Federal form 1040x Section 409A also includes rules that apply to certain trusts or similar arrangements associated with NQDC plans if the trusts or arrangements are located outside of the United States, are restricted to the provision of benefits in connection with a decline in the financial health of the plan sponsor, or contributions are made to the trust during certain periods such as when a qualified plan of the service recipient is underfunded. Federal form 1040x Employers must withhold federal income tax (but not the additional Section 409A taxes) on any amount includible in gross income under section 409A. Federal form 1040x Other changes to the Internal Revenue Code provide that the deferrals under a NQDC plan must be reported separately on Form W-2 or Form 1099-MISC, whichever applies. Federal form 1040x Specific rules for reporting are provided in the instructions to the forms. Federal form 1040x The provisions do not affect the application or reporting of social security, Medicare, or FUTA taxes. Federal form 1040x The provisions do not prevent the inclusion of amounts in income or wages under other provisions of the Internal Revenue Code or common law principles, such as when amounts are actually or constructively received or irrevocably contributed to a separate fund. Federal form 1040x For more information about nonqualified deferred compensation plans, see Regulations sections 1. Federal form 1040x 409A-1 through 1. Federal form 1040x 409A-6. Federal form 1040x Notice 2008-113 provides guidance on the correction of certain operation failures of a NQDC plan. Federal form 1040x Notice 2008-113, 2008-51 I. Federal form 1040x R. Federal form 1040x B. Federal form 1040x 1305, is available at www. Federal form 1040x irs. Federal form 1040x gov/irb/2008-51_IRB/ar12. Federal form 1040x html. Federal form 1040x Also see Notice 2010-6, 2010-3 I. Federal form 1040x R. Federal form 1040x B. Federal form 1040x 275, available at www. Federal form 1040x irs. Federal form 1040x gov/irb/2010-03_IRB/ar08. Federal form 1040x html and Notice 2010-80, 2010-51 I. Federal form 1040x R. Federal form 1040x B. Federal form 1040x 853, available at www. Federal form 1040x irs. Federal form 1040x gov/irb/2010-51_IRB/ar08. Federal form 1040x html. Federal form 1040x Social security, Medicare, and FUTA taxes. Federal form 1040x   Employer contributions to nonqualified deferred compensation (NQDC) plans, as defined in the applicable regulations, are treated as wages subject to social security, Medicare, and FUTA taxes when the services are performed or the employee no longer has a substantial risk of forfeiting the right to the deferred compensation, whichever is later. Federal form 1040x   Amounts deferred are subject to social security, Medicare, and FUTA taxes at that time unless the amount that is deferred cannot be reasonably ascertained; for example, if benefits are based on final pay. Federal form 1040x If the value of the future benefit is based on any factors that are not yet reasonably ascertainable, you may choose to estimate the value of the future benefit and withhold and pay social security, Medicare, and FUTA taxes on that amount. Federal form 1040x You will have to determine later, when the amount is reasonably ascertainable, whether any additional taxes are required. Federal form 1040x If taxes are not paid before the amounts become reasonably ascertainable, when the amounts become reasonably ascertainable they are subject to social security, Medicare, and FUTA taxes on the amounts deferred plus the income attributable to those amounts deferred. Federal form 1040x For more information, see Regulations sections 31. Federal form 1040x 3121(v)(2)-1 and 31. Federal form 1040x 3306(r)(2)-1. Federal form 1040x Tax-Sheltered Annuities Employer payments made by a public educational institution or a tax-exempt organization to purchase a tax-sheltered annuity for an employee (annual deferrals) are included in the employee's social security and Medicare wages, if the payments are made because of a salary reduction agreement. Federal form 1040x However, they are not included in box 1 on Form W-2 in the year the deferrals are made and are not subject to federal income tax withholding. Federal form 1040x See Regulations section 31. Federal form 1040x 3121(a)(5)-2 for the definition of a salary reduction agreement. Federal form 1040x Contributions to a Simplified Employee Pension (SEP) An employer's SEP contributions to an employee's individual retirement arrangement (IRA) are excluded from the employee's gross income. Federal form 1040x These excluded amounts are not subject to social security, Medicare, or FUTA taxes, or federal income tax withholding. Federal form 1040x However, any SEP contributions paid under a salary reduction agreement (SARSEP) are included in wages for purposes of social security, Medicare, and FUTA taxes. Federal form 1040x See Publication 560 for more information about SEPs. Federal form 1040x Salary reduction simplified employee pensions (SARSEP) repealed. Federal form 1040x   You may not establish a SARSEP after 1996. Federal form 1040x However, SARSEPs established before January 1, 1997, may continue to receive contributions. Federal form 1040x SIMPLE Retirement Plans Employer and employee contributions to a savings incentive match plan for employees (SIMPLE) retirement account (subject to limitations) are excludable from the employee's income and are exempt from federal income tax withholding. Federal form 1040x An employer's nonelective (2%) or matching contributions are exempt from social security, Medicare, and FUTA taxes. Federal form 1040x However, an employee's salary reduction contributions to a SIMPLE are subject to social security, Medicare, and FUTA taxes. Federal form 1040x For more information about SIMPLE retirement plans, see Publication 560. Federal form 1040x 6. Federal form 1040x Sick Pay Reporting The IRS expects to change the third-party sick pay recap reporting and filing requirements for wages paid in 2014. Federal form 1040x Information about this change will be included in the revision of Publication 15-A that is expected to post to IRS. Federal form 1040x gov in December 2014. Federal form 1040x Special rules apply to the reporting of sick pay payments to employees. Federal form 1040x How these payments are reported depends on whether the payments are made by the employer or a third party, such as an insurance company. Federal form 1040x Sick pay is usually subject to social security, Medicare, and FUTA taxes. Federal form 1040x For exceptions, see Social Security, Medicare, and FUTA Taxes on Sick Pay , later in this section. Federal form 1040x Sick pay may also be subject to either mandatory or voluntary federal income tax withholding, depending on who pays it. Federal form 1040x Sick Pay Sick pay generally means any amount paid under a plan because of an employee's temporary absence from work due to injury, sickness, or disability. Federal form 1040x It may be paid by either the employer or a third party, such as an insurance company. Federal form 1040x Sick pay includes both short- and long-term benefits. Federal form 1040x It is often expressed as a percentage of the employee's regular wages. Federal form 1040x Payments That Are Not Sick Pay Sick pay does not include the following payments. Federal form 1040x Disability retirement payments. Federal form 1040x Disability retirement payments are not sick pay and are not discussed in this section. Federal form 1040x Those payments are subject to the rules for federal income tax withholding from pensions and annuities. Federal form 1040x See section 8. Federal form 1040x Workers' compensation. Federal form 1040x Payments because of a work-related injury or sickness that are made under a workers' compensation law are not sick pay and are not subject to employment taxes. Federal form 1040x But see Payments in the nature of workers' compensation—public employees next. Federal form 1040x Payments in the nature of workers' compensation—public employees. Federal form 1040x State and local government employees, such as police officers and firefighters, sometimes receive payments due to an injury in the line of duty under a statute that is not the general workers' compensation law of a state. Federal form 1040x If the statute limits benefits to work-related injuries or sickness and does not base payments on the employee's age, length of service, or prior contributions, the statute is “in the nature of” a workers' compensation law. Federal form 1040x Payments under a statute in the nature of a workers' compensation law are not sick pay and are not subject to employment taxes. Federal form 1040x For more information, see Regulations section 31. Federal form 1040x 3121(a)(2)-1. Federal form 1040x Medical expense payments. Federal form 1040x Payments under a definite plan or system for medical and hospitalization expenses, or for insurance covering these expenses, are not sick pay and are not subject to employment taxes. Federal form 1040x Payments unrelated to absence from work. Federal form 1040x Accident or health insurance payments unrelated to absence from work are not sick pay and are not subject to employment taxes. Federal form 1040x These include payments for: Permanent loss of a member or function of the body, Permanent loss of the use of a member or function of the body, or Permanent disfigurement of the body. Federal form 1040x Example. Federal form 1040x Donald was injured in a car accident and lost an eye. Federal form 1040x Under a policy paid for by Donald's employer, Delta Insurance Co. Federal form 1040x paid Donald $20,000 as compensation for the loss of his eye. Federal form 1040x Because the payment was determined by the type of injury and was unrelated to Donald's absence from work, it is not sick pay and is not subject to federal employment taxes. Federal form 1040x Sick Pay Plan A sick pay plan is a plan or system established by an employer under which sick pay is available to employees generally or to a class or classes of employees. Federal form 1040x This does not include a situation in which benefits are provided on a discretionary or occasional basis with merely an intention to aid particular employees in time of need. Federal form 1040x You have a sick pay plan or system if the plan is in writing or is otherwise made known to employees, such as by a bulletin board notice or your long and established practice. Federal form 1040x Some indications that you have a sick pay plan or system include references to the plan or system in the contract of employment, employer contributions to a plan, or segregated accounts for the payment of benefits. Federal form 1040x Definition of employer. Federal form 1040x   The employer for whom the employee normally works, a term used in the following discussion, is either the employer for whom the employee was working at the time that the employee became sick or disabled or the last employer for whom the employee worked before becoming sick or disabled, if that employer made contributions to the sick pay plan on behalf of the sick or disabled employee. Federal form 1040x Note. Federal form 1040x Contributions to a sick pay plan through a cafeteria plan (by direct employer contributions or salary reduction) are employer contributions unless they are after-tax employee contributions (that is, included in taxable wages). Federal form 1040x Third-Party Payers of Sick Pay Employer's agent. Federal form 1040x   An employer's agent is a third party that bears no insurance risk and is reimbursed on a cost-plus-fee basis for payment of sick pay and similar amounts. Federal form 1040x A third party may be your agent even if the third party is responsible for determining which employees are eligible to receive payments. Federal form 1040x For example, if a third party provides administrative services only, the third party is your agent. Federal form 1040x If the third party is paid an insurance premium and is not reimbursed on a cost-plus-fee basis, the third party is not your agent. Federal form 1040x Whether an insurance company or other third party is your agent depends on the terms of their agreement with you. Federal form 1040x   A third party that makes payments of sick pay as your agent is not considered the employer and generally has no responsibility for employment taxes. Federal form 1040x This responsibility remains with you. Federal form 1040x However, under an exception to this rule, the parties may enter into an agreement that makes the third-party agent responsible for employment taxes. Federal form 1040x In this situation, the third-party agent should use its own name and EIN (rather than your name and EIN) for the responsibilities that it has assumed. Federal form 1040x Third party not employer's agent. Federal form 1040x   A third party that makes payments of sick pay other than as an agent of the employer is liable for federal income tax withholding (if requested by the employee) and the employee part of the social security and Medicare taxes. Federal form 1040x   The third party is also liable for the employer part of the social security and Medicare taxes, and the FUTA tax, unless the third party transfers this liability to the employer for whom the employee normally works. Federal form 1040x This liability is transferred if the third party takes the following steps. Federal form 1040x Withholds the employee social security and Medicare taxes from the sick pay payments. Federal form 1040x Makes timely deposits of the employee social security and Medicare taxes. Federal form 1040x Notifies the employer for whom the employee normally works of the payments on which employee taxes were withheld and deposited. Federal form 1040x The third party must notify the employer within the time required for the third party's deposit of the employee part of the social security and Medicare taxes. Federal form 1040x For instance, if the third party is a monthly schedule depositor, it must notify the employer by the 15th day of the month following the month in which the sick pay payment is made because that is the day by which the deposit is required to be made. Federal form 1040x The third party should notify the employer as soon as information on payments is available so that an employer required to make electronic deposits can make them timely. Federal form 1040x For multi-employer plans, see the special rule discussed next. Federal form 1040x Multi-employer plan timing rule. Federal form 1040x   A special rule applies to sick pay payments made to employees by a third-party insurer under an insurance contract with a multi-employer plan established under a collectively bargained agreement. Federal form 1040x If the third-party insurer making the payments complies wi
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Page Last Reviewed or Updated: 26-Mar-2014

The Federal Form 1040x

Federal form 1040x Index A Affiliated corporations, Aircraft used by affiliated corporations. Federal form 1040x Agri-biodiesel, defined, Agri-biodiesel. Federal form 1040x Air transportation taxes, Air Transportation Taxes 225-mile-zone rule, Taxable transportation. Federal form 1040x Alaska, Transportation between the continental U. Federal form 1040x S. Federal form 1040x and Alaska or Hawaii. Federal form 1040x , Transportation within Alaska or Hawaii. Federal form 1040x , Alaska and Hawaii. Federal form 1040x Baggage, Excess baggage. Federal form 1040x Bonus tickets, Bonus tickets. Federal form 1040x Credits or refunds, Credits or refunds. Federal form 1040x Exemptions, Exemptions. Federal form 1040x Export, Exportation. Federal form 1040x Fixed-wing aircraft, Fixed-wing aircraft uses. Federal form 1040x Hawaii, Transportation between the continental U. Federal form 1040x S. Federal form 1040x and Alaska or Hawaii. Federal form 1040x , Transportation within Alaska or Hawaii. Federal form 1040x , Alaska and Hawaii. Federal form 1040x Helicopters, Certain helicopter uses. Federal form 1040x , Transportation of Property by Air International air travel facilities, International Air Travel Facilities Military personnel, Military personnel on international trips. Federal form 1040x Package tours, Package tours. Federal form 1040x Persons by air, Transportation of Persons by Air Persons liable, Liability for tax. Federal form 1040x , Liability for tax. Federal form 1040x Property by air, Transportation of Property by Air Tax rates, Transportation of Persons by Air Taxable transportation, Taxable transportation. Federal form 1040x Travel agency, Liability for tax. Federal form 1040x Uninterrupted international, Uninterrupted international air transportation. Federal form 1040x Aircraft, Fixed-wing aircraft uses. Federal form 1040x Affiliated corporations, Aircraft used by affiliated corporations. Federal form 1040x Small planes, Small aircraft. Federal form 1040x Aircraft museum, In an aircraft or vehicle owned by an aircraft museum (No. Federal form 1040x 15). Federal form 1040x Alaska Air transportation taxes, Transportation between the continental U. Federal form 1040x S. Federal form 1040x and Alaska or Hawaii. Federal form 1040x Tax on diesel fuel or kerosene, Removal for sale or use in Alaska. Federal form 1040x Alcohol and tobacco taxes, Excise Taxes Not Covered Alternative fuel credit, Alternative fuel credit. Federal form 1040x Alternative fuel, defined, Other fuels. Federal form 1040x American Red Cross, International organizations and the American Red Cross. Federal form 1040x Answering service, Answering services. Federal form 1040x Appeal procedures, Examination and Appeal Procedures Approved refinery, defined, Approved terminal or refinery. Federal form 1040x Approved terminal, defined, Approved terminal or refinery. Federal form 1040x Arrow shafts, Arrow Shafts Assistance (see Tax help) Aviation gasoline, defined, Aviation gasoline. Federal form 1040x B Back-up tax, Back-up Tax Biodiesel, defined, Biodiesel. Federal form 1040x Blended taxable fuel, defined, Blended taxable fuel. Federal form 1040x Blender, defined, Blender. Federal form 1040x Blocked pump, Blocked pump. Federal form 1040x Blood collector organizations, qualified, Exclusive use by a qualified blood collector organization (No. Federal form 1040x 11). Federal form 1040x , Qualified blood collector organizations. Federal form 1040x Boats, In a boat engaged in commercial fishing (No. Federal form 1040x 4). Federal form 1040x Bonus tickets, Bonus tickets. Federal form 1040x Bows, Quivers, Broadheads, and Points, Bows, Quivers, Broadheads, and Points Bulk transfer, defined, Bulk transfer. Federal form 1040x Bulk transfer/terminal system, defined, Bulk transfer/terminal system. Federal form 1040x Buses, In certain intercity and local buses (No. Federal form 1040x 5). Federal form 1040x , In a qualified local bus (No. Federal form 1040x 6). Federal form 1040x , In a school bus (No. Federal form 1040x 7). Federal form 1040x Tire tax, Qualifying intercity or local bus. Federal form 1040x C Cellulosic biofuel, Cellulosic biofuel. Federal form 1040x Chemicals, ozone-depleting, Environmental Taxes Claims Claiming a credit, Claiming a Credit on Form 4136 Claiming a refund, Claiming A Refund Filing claims, Filing Claims Coal Blending, Blending. Federal form 1040x Exemptions, Exemption from tax. Federal form 1040x Producer, Coal Production, Coal production. Federal form 1040x Selling price, Determining tonnage or selling price. Federal form 1040x Tax rates, Tax rates. Federal form 1040x Coin-operated telephones, Coin-operated telephones. Federal form 1040x Comments, Comments and suggestions. Federal form 1040x Commercial aviation, In commercial aviation (other than foreign trade). Federal form 1040x Commercial fishing, In a boat engaged in commercial fishing (No. Federal form 1040x 4). Federal form 1040x Commercial waterway transportation, Commercial waterway transportation. Federal form 1040x Communications taxes Credits or refunds, Credits or Refunds Exemptions, Exemptions Figuring the tax, Figuring the tax. Federal form 1040x Local telephone service, Local telephone service. Federal form 1040x Local-only service, Local-only service. Federal form 1040x Private communication service, Private communication service. Federal form 1040x Teletypewriter exchange service, Teletypewriter exchange service. Federal form 1040x Credit card purchases Aviation gasoline, Credit card purchases. Federal form 1040x Gasoline, Credit card purchases. Federal form 1040x Kerosene for use in aviation, Credit card purchases. Federal form 1040x Undyed diesel fuel, Credit Card Purchases. Federal form 1040x Undyed kerosene, Credit Card Purchases. Federal form 1040x Credit or refund Gas guzzler tax, Credit or refund. Federal form 1040x Manufacturers taxes, Credits or Refunds Resale of tax-paid semitrailers, Tax on resale of tax-paid trailers and semitrailers. Federal form 1040x Retail tax, Credits or refunds. Federal form 1040x Tire tax, Credit or refund. Federal form 1040x Vaccines, Credit or refund. Federal form 1040x Credits, Claiming a Credit on Form 4136 D Deposits Net tax liability, Amount of Deposits Deposits, How to make, How To Make Deposits Diesel fuel Definitions, Diesel Fuel and Kerosene Exported, Diesel Fuel and Kerosene Diesel-water fuel emulsion, defined, Diesel-water fuel emulsion. Federal form 1040x Dyed diesel fuel, Dyed Diesel Fuel and Dyed Kerosene Dyed kerosene, Dyed Diesel Fuel and Dyed Kerosene E Electric outboard motors, Electric outboard boat motors. Federal form 1040x Enterer, defined, Enterer. Federal form 1040x Entry, defined, Entry. Federal form 1040x Environmental taxes Credit or refund, Credits or refunds. Federal form 1040x Exceptions, Exceptions. Federal form 1040x Ozone-depleting chemicals (ODCs), Environmental Taxes United States (defined), Environmental Taxes Examination procedures, Examination and Appeal Procedures Excluded liquid, Diesel Fuel and Kerosene Exempt articles, retail tax, Articles exempt from tax. Federal form 1040x Exempt communication services American Red Cross, International organizations and the American Red Cross. Federal form 1040x Answering service, Answering services. Federal form 1040x Coin-operated telephones, Coin-operated telephones. Federal form 1040x Installation charges, Installation charges. Federal form 1040x International organizations, International organizations and the American Red Cross. Federal form 1040x Mobile radio telephone service, Mobile radio telephone service. Federal form 1040x News services, News services. Federal form 1040x Nonprofit educational organizations, Nonprofit educational organizations. Federal form 1040x Nonprofit hospitals, Nonprofit hospitals. Federal form 1040x Private communication service, Private communication service. Federal form 1040x Qualified blood collector organizations, Qualified blood collector organizations. Federal form 1040x Radio broadcasts, News services. Federal form 1040x Security systems, Telephone-operated security systems. Federal form 1040x Exempt sales, heavy trucks, Sales exempt from tax. Federal form 1040x Exemptions Air transportation taxes, Exemptions. Federal form 1040x Bonus tickets, Bonus tickets. Federal form 1040x Coal, Exemption from tax. Federal form 1040x Communications taxes, Exemptions Federal government, Federal, state, and local government. Federal form 1040x Fixed-wing aircraft, Fixed-wing aircraft uses. Federal form 1040x For export, Exemptions Further manufacturing, Exemptions Helicopters, Certain helicopter uses. Federal form 1040x Indian handicrafts, Exemptions Indian tribal governments, Federal, state, and local government. Federal form 1040x Military personnel, Military personnel on international trips. Federal form 1040x Nonprofit educational organizations, Federal, state, and local government. Federal form 1040x , Exemptions Qualified blood collector organizations, Exemptions State and local governments, Federal, state, and local government. Federal form 1040x , Exemptions Taxable tires, Tires exempt from tax. Federal form 1040x Vessel supplies, Exemptions Export, Export (No. Federal form 1040x 3). Federal form 1040x Exported taxable fuel, Exported taxable fuel. Federal form 1040x F Farming, On a farm for farming purposes (No. Federal form 1040x 1). Federal form 1040x Federal government, Federal, state, and local government. Federal form 1040x Fishing, In a boat engaged in commercial fishing (No. Federal form 1040x 4). Federal form 1040x Fishing rods and fishing poles. Federal form 1040x , Fishing rods and fishing poles. Federal form 1040x Fishing tackle boxes, Fishing tackle boxes. Federal form 1040x Fixed-wing aircraft, Fixed-wing aircraft uses. Federal form 1040x Floor stocks tax Ozone-depleting chemicals, Floor Stocks Tax Floor stocks, ODCs, Environmental Taxes Foreign trade, In foreign trade (No. Federal form 1040x 9). Federal form 1040x Form 1363, Exportation. Federal form 1040x 4136, Claiming a Credit on Form 4136 6197, Gas Guzzler Tax, Form 6197. Federal form 1040x , Attachments to Form 720. Federal form 1040x 637, Reminders 6627, Environmental Taxes, Attachments to Form 720. Federal form 1040x 720, Claiming A Refund, Form 6197. Federal form 1040x , Filing Form 720 720X, Form 720X. Federal form 1040x 8849, Claiming A Refund 8864, Biodiesel Sold as But Not Used as Fuel Form 720 Attachments, Attachments to Form 720. Federal form 1040x Due dates, Due dates. Federal form 1040x Final return, Final return. Federal form 1040x Schedule A, Filing Form 720 Schedule C, Filing Form 720 Schedule T, Filing Form 720 Free tax services, How To Get Tax Help Fuels Alternative fuel, Other Fuels (Including Alternative Fuels) Diesel, Diesel Fuel and Kerosene Diesel-water fuel emulsion, Diesel-Water Fuel Emulsion For use in aviation, Kerosene for Use in Aviation Gasoline, Gasoline and Aviation Gasoline Kerosene, Diesel Fuel and Kerosene Other Fuels, Other Fuels (Including Alternative Fuels) Used on inland waterways, Fuels Used on Inland Waterways G Gambling, Taxable situations. Federal form 1040x Gas guzzler tax Automobiles, Automobiles. Federal form 1040x Credit or refund, Credit or refund. Federal form 1040x Limousines, Automobiles. Federal form 1040x Vehicles not subject to tax, Vehicles not subject to tax. Federal form 1040x Gasoline blendstocks, Gasoline Blendstocks Gasoline, defined, Gasoline. Federal form 1040x H Hawaii, air transportation taxes, Transportation between the continental U. Federal form 1040x S. Federal form 1040x and Alaska or Hawaii. Federal form 1040x Heavy Motor Vehicle User Fee, Excise Taxes Not Covered Heavy trucks First retail sale, defined, First retail sale defined. Federal form 1040x Further manufacture, Further manufacture. Federal form 1040x Installment sales, Installment sales. Federal form 1040x Parts or accessories, Parts or accessories. Federal form 1040x Presumptive retail sales price, Presumptive retail sales price. Federal form 1040x Related persons, Related person. Federal form 1040x Separate purchases, Separate purchase. Federal form 1040x Tax base, Determination of tax base. Federal form 1040x Tax rate, Retail Tax on Heavy Trucks, Trailers, and Tractors Helicopter, Certain helicopter uses. Federal form 1040x Help (see Tax help) Highway vehicle, Highway vehicle. Federal form 1040x , In a highway vehicle owned by the United States that is not used on a highway (No. Federal form 1040x 12). Federal form 1040x Highway vehicle (Diesel-powered), Diesel-powered highway vehicle. Federal form 1040x I Identifying number, Taxpayer identification number. Federal form 1040x Imported taxable products (ODCs), Imported Taxable Products Income, include in, Including the Credit or Refund in Income Indoor tanning services, Indoor Tanning Services Tax Information returns, liquid products, Information Returns Inland waterways, Fuels Used on Inland Waterways Intercity and local buses, In certain intercity and local buses (No. Federal form 1040x 5). Federal form 1040x Interest and penalties, Penalties and Interest International air travel facilities, International Air Travel Facilities K Kerosene Definitions, Diesel Fuel and Kerosene Exported, Diesel Fuel and Kerosene For use in aviation, Kerosene for Use in Aviation L Liquid products, information returns, Information Returns Local telephone service, Local telephone service. Federal form 1040x Local-only service, Local-only service. Federal form 1040x M Manufacturer, defined, Manufacturer. Federal form 1040x Manufacturers taxes Arrow shafts, Arrow Shafts Bows, Quivers, Broadheads, and Points, Bows, Quivers, Broadheads, and Points Coal, Coal Credits or refunds, Credits or Refunds Exemptions, Exemptions Gas guzzler tax, Gas Guzzler Tax Lease, Lease considered sale. Federal form 1040x Lease payments, Partial payments. Federal form 1040x Partial payments, Partial payments. Federal form 1040x Registration, Registration requirements. Federal form 1040x Related person, Related person. Federal form 1040x Requirements for exempt sales, Requirements for Exempt Sales Sale, Sale. Federal form 1040x Sport fishing equipment, Sport Fishing Equipment Taxable Tires, Taxable Tires Vaccines, Vaccines Medical device tax, Taxable medical devices. Federal form 1040x Military aircraft, In military aircraft (No. Federal form 1040x 16). Federal form 1040x Mobile radio telephone service, Mobile radio telephone service. Federal form 1040x N News services, News services. Federal form 1040x Nonprofit educational organization, Exclusive use by a nonprofit educational organization (No. Federal form 1040x 13). Federal form 1040x Nonprofit educational organization use and state use, Nonprofit educational organization and state use. Federal form 1040x Nonprofit educational organizations, Nonprofit educational organizations. Federal form 1040x , Federal, state, and local government. Federal form 1040x Nontaxable uses, definitions, Definitions of Nontaxable Uses Nontaxable uses, type of use table, Definitions of Nontaxable Uses O Obligations not in registered form, Obligations Not in Registered Form Off-highway use, Off-highway business use (No. Federal form 1040x 2). Federal form 1040x Oil spill liability, Environmental Taxes Other Fuels (Including Alternative Fuels), Other Fuels (Including Alternative Fuels) Other fuels, defined, Other fuels. Federal form 1040x Ozone-depleting chemicals Floor stocks tax, Floor Stocks Tax Imported taxable products, Imported Taxable Products P Patient-centered outcomes research fee, Patient-Centered Outcomes Research Fee Payment of taxes, Payment of Taxes Penalties Dyed diesel fuel, Penalty. Federal form 1040x Dyed kerosene, Penalty. Federal form 1040x Pipeline operator, defined, Pipeline operator. Federal form 1040x Position holder, defined, Position holder. Federal form 1040x Publications (see Tax help) Q Qualified local bus, In a qualified local bus (No. Federal form 1040x 6). Federal form 1040x R Rack, defined, Rack. Federal form 1040x Radio broadcasts, News services. Federal form 1040x Records, Refiner, defined, Refiner. Federal form 1040x Refinery, defined, Refinery. Federal form 1040x Refunds, Claiming A Refund Refunds of second tax, Refunds of Second Tax Registered ultimate vendor, Sales by Registered Ultimate Vendors, Registered ultimate vendor. Federal form 1040x Registrant, Taxable fuel registrant. Federal form 1040x Registrant, defined, Registrant. Federal form 1040x Registration, Registration Requirements Form 637, Reminders Registration-required obligations, Obligations Not in Registered Form Related persons Heavy trucks, Related person. Federal form 1040x Sport fishing equipment, Related person. Federal form 1040x Removal, defined, Removal. Federal form 1040x Retail tax Credits or refunds, Credits or refunds. Federal form 1040x Heavy trucks, Retail Tax on Heavy Trucks, Trailers, and Tractors Rulings Program, Rulings Program Rural airports, Rural airports. Federal form 1040x S Sale, defined, Sale. Federal form 1040x Sales by registered ultimate vendors, gasoline, Sales by registered ultimate vendors. Federal form 1040x Sales by registered ultimate vendors, kerosene for use in aviation, Sales by Registered Ultimate Vendors Sales price Bonus goods, Bonus goods. Federal form 1040x Cost of transportation, Manufacturers taxes based on sale price. Federal form 1040x Delivery costs, Manufacturers taxes based on sale price. Federal form 1040x Discounts, Manufacturers taxes based on sale price. Federal form 1040x Installation costs, Manufacturers taxes based on sale price. Federal form 1040x Insurance costs, Manufacturers taxes based on sale price. Federal form 1040x Local advertising charges, Manufacturers taxes based on sale price. Federal form 1040x Manufacturers excise tax, Manufacturers taxes based on sale price. Federal form 1040x Rebates, Manufacturers taxes based on sale price. Federal form 1040x Retail dealer preparation costs, Manufacturers taxes based on sale price. Federal form 1040x Warranty charges, Manufacturers taxes based on sale price. Federal form 1040x School bus, In a school bus (No. Federal form 1040x 7). Federal form 1040x Second generation biofuel, Second generation biofuel. Federal form 1040x Security systems, Telephone-operated security systems. Federal form 1040x Ship passenger tax, Ship Passenger Tax Special September rule, When to deposit, Special rule for deposits of taxes in September. Federal form 1040x Sport fishing equipment List of equipment, Sport Fishing Equipment Resales, Certain equipment resale. Federal form 1040x State and local governments, Federal, state, and local government. Federal form 1040x State or local governments, Exclusive use by a state, political subdivision of a state, or the District of Columbia (No. Federal form 1040x 14). Federal form 1040x State or nonprofit educational organization use, Sales by registered ultimate vendors. Federal form 1040x State use, Registered ultimate vendor (state use). Federal form 1040x , State use. Federal form 1040x State, defined, State. Federal form 1040x Suggestions, Comments and suggestions. Federal form 1040x T Tanning tax, Indoor Tanning Services Tax Tax help, How To Get Tax Help Tax rate, Electric outboard boat motors. Federal form 1040x Air transportation of persons, Transportation of Persons by Air Air transportation of property, Transportation of Property by Air Arrow shafts, Arrow Shafts Bows, Quivers, Broadheads, and Points, Bows, Quivers, Broadheads, and Points Coal, Tax rates. Federal form 1040x Electric outboard motor, Electric outboard boat motors. Federal form 1040x International air travel facilities, International Air Travel Facilities Obligations not in registered form, Obligations Not in Registered Form Policies issued by foreign persons, Foreign Insurance Taxes Ship passenger tax, Ship Passenger Tax Sport fishing equipment, Sport Fishing Equipment Trucks, Retail Tax on Heavy Trucks, Trailers, and Tractors Taxable fuel registrant, Taxable fuel registrant. Federal form 1040x Taxable Tires Manufacturers taxes, Taxable Tires Taxable tires Exemptions, Tires exempt from tax. Federal form 1040x Taxes, Payment of, Payment of Taxes Taxpayer identification number, Taxpayer identification number. Federal form 1040x Teletypewriter exchange service, Teletypewriter exchange service. Federal form 1040x Terminal operator, defined, Terminal operator. Federal form 1040x Terminal, defined, Terminal. Federal form 1040x Throughputter, defined, Throughputter. Federal form 1040x Tires Credit against heavy truck tax, Tire credit. Federal form 1040x Credit or refund of tax, Credit or refund. Federal form 1040x Train, Use in a train. Federal form 1040x Train (Diesel-powered), Diesel-powered train. Federal form 1040x Transmix, Diesel Fuel and Kerosene Travel agency, Liability for tax. Federal form 1040x TTY/TDD information, How To Get Tax Help Two-party exchanges, Two-party exchanges. Federal form 1040x , Two-party exchanges. Federal form 1040x U Ultimate purchaser, Ultimate purchaser. Federal form 1040x Uninterrupted international air transportation, Uninterrupted international air transportation. Federal form 1040x , Military personnel on international trips. Federal form 1040x Used other than as a fuel Diesel fuel and kerosene, For diesel fuel and kerosene (other than kerosene used in aviation) used other than as a fuel (No. Federal form 1040x 8). Federal form 1040x Uses, nontaxable Alternative fuels, Other Fuels (Including Alternative Fuels) Aviation gasoline, Gasoline and Aviation Gasoline Diesel fuel, Undyed Diesel Fuel and Undyed Kerosene (Other Than Kerosene Used in Aviation) Diesel-water fuel emulsion, Diesel-Water Fuel Emulsion Gasoline, Gasoline and Aviation Gasoline Kerosene, Undyed Diesel Fuel and Undyed Kerosene (Other Than Kerosene Used in Aviation) Kerosene for use in aviation, Ultimate purchasers. Federal form 1040x Liquefied petroleum gas (LPG), Other Fuels (Including Alternative Fuels) Other Fuels, Other Fuels (Including Alternative Fuels) V Vaccines Credit or refund, Credit or refund. Federal form 1040x Manufacturers tax, What's New, Vaccines Vehicles Gas guzzler, Gas Guzzler Tax Imported, Imported automobiles. Federal form 1040x Law enforcement, Vehicles not subject to tax. Federal form 1040x Vendors, registered ultimate, Sales by Registered Ultimate Vendors, Registered ultimate vendor. Federal form 1040x Vessel operator, defined, Vessel operator. Federal form 1040x W Wagering and occupational wagering fee, Excise Taxes Not Covered When to deposit, When To Make Deposits Prev  Up     Home   More Online Publications