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Federal Tax Ez Form

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Federal Tax Ez Form

Federal tax ez form Publication 15-B - Main Content Table of Contents 1. Federal tax ez form Fringe Benefit OverviewAre Fringe Benefits Taxable? Cafeteria Plans Simple Cafeteria Plans 2. Federal tax ez form Fringe Benefit Exclusion RulesAccident and Health Benefits Achievement Awards Adoption Assistance Athletic Facilities De Minimis (Minimal) Benefits Dependent Care Assistance Educational Assistance Employee Discounts Employee Stock Options Employer-Provided Cell Phones Group-Term Life Insurance Coverage Health Savings Accounts Lodging on Your Business Premises Meals Moving Expense Reimbursements No-Additional-Cost Services Retirement Planning Services Transportation (Commuting) Benefits Tuition Reduction Working Condition Benefits 3. Federal tax ez form Fringe Benefit Valuation RulesGeneral Valuation Rule Cents-Per-Mile Rule Commuting Rule Lease Value Rule Unsafe Conditions Commuting Rule 4. Federal tax ez form Rules for Withholding, Depositing, and ReportingTransfer of property. Federal tax ez form Amount of deposit. Federal tax ez form Limitation. Federal tax ez form Conformity rules. Federal tax ez form Election not to withhold income tax. Federal tax ez form How To Get Tax Help 1. Federal tax ez form Fringe Benefit Overview A fringe benefit is a form of pay for the performance of services. Federal tax ez form For example, you provide an employee with a fringe benefit when you allow the employee to use a business vehicle to commute to and from work. Federal tax ez form Performance of services. Federal tax ez form   A person who performs services for you does not have to be your employee. Federal tax ez form A person may perform services for you as an independent contractor, partner, or director. Federal tax ez form Also, for fringe benefit purposes, treat a person who agrees not to perform services (such as under a covenant not to compete) as performing services. Federal tax ez form Provider of benefit. Federal tax ez form   You are the provider of a fringe benefit if it is provided for services performed for you. Federal tax ez form You are considered the provider of a fringe benefit even if a third party, such as your client or customer, provides the benefit to your employee for services the employee performs for you. Federal tax ez form For example, if, in exchange for goods or services, your customer provides day care services as a fringe benefit to your employees for services they provide for you as their employer, then you are the provider of this fringe benefit even though the customer is actually providing the day care. Federal tax ez form Recipient of benefit. Federal tax ez form   The person who performs services for you is considered the recipient of a fringe benefit provided for those services. Federal tax ez form That person may be considered the recipient even if the benefit is provided to someone who did not perform services for you. Federal tax ez form For example, your employee may be the recipient of a fringe benefit you provide to a member of the employee's family. Federal tax ez form Are Fringe Benefits Taxable? Any fringe benefit you provide is taxable and must be included in the recipient's pay unless the law specifically excludes it. Federal tax ez form Section 2 discusses the exclusions that apply to certain fringe benefits. Federal tax ez form Any benefit not excluded under the rules discussed in section 2 is taxable. Federal tax ez form Including taxable benefits in pay. Federal tax ez form   You must include in a recipient's pay the amount by which the value of a fringe benefit is more than the sum of the following amounts. Federal tax ez form Any amount the law excludes from pay. Federal tax ez form Any amount the recipient paid for the benefit. Federal tax ez form The rules used to determine the value of a fringe benefit are discussed in section 3. Federal tax ez form   If the recipient of a taxable fringe benefit is your employee, the benefit is subject to employment taxes and must be reported on Form W-2, Wage and Tax Statement. Federal tax ez form However, you can use special rules to withhold, deposit, and report the employment taxes. Federal tax ez form These rules are discussed in section 4. Federal tax ez form   If the recipient of a taxable fringe benefit is not your employee, the benefit is not subject to employment taxes. Federal tax ez form However, you may have to report the benefit on one of the following information returns. Federal tax ez form If the recipient receives the benefit as: Use: An independent contractor Form 1099-MISC, Miscellaneous Income A partner Schedule K-1 (Form 1065), Partner's Share of Income, Deductions, Credits, etc. Federal tax ez form For more information, see the instructions for the forms listed above. Federal tax ez form Cafeteria Plans A cafeteria plan, including a flexible spending arrangement, is a written plan that allows your employees to choose between receiving cash or taxable benefits instead of certain qualified benefits for which the law provides an exclusion from wages. Federal tax ez form If an employee chooses to receive a qualified benefit under the plan, the fact that the employee could have received cash or a taxable benefit instead will not make the qualified benefit taxable. Federal tax ez form Generally, a cafeteria plan does not include any plan that offers a benefit that defers pay. Federal tax ez form However, a cafeteria plan can include a qualified 401(k) plan as a benefit. Federal tax ez form Also, certain life insurance plans maintained by educational institutions can be offered as a benefit even though they defer pay. Federal tax ez form Qualified benefits. Federal tax ez form   A cafeteria plan can include the following benefits discussed in section 2. Federal tax ez form Accident and health benefits (but not Archer medical savings accounts (Archer MSAs) or long-term care insurance). Federal tax ez form Adoption assistance. Federal tax ez form Dependent care assistance. Federal tax ez form Group-term life insurance coverage (including costs that cannot be excluded from wages). Federal tax ez form Health savings accounts (HSAs). Federal tax ez form Distributions from an HSA may be used to pay eligible long-term care insurance premiums or qualified long-term care services. Federal tax ez form Benefits not allowed. Federal tax ez form   A cafeteria plan cannot include the following benefits discussed in section 2. Federal tax ez form Archer MSAs. Federal tax ez form See Accident and Health Benefits in section 2. Federal tax ez form Athletic facilities. Federal tax ez form De minimis (minimal) benefits. Federal tax ez form Educational assistance. Federal tax ez form Employee discounts. Federal tax ez form Employer-provided cell phones. Federal tax ez form Lodging on your business premises. Federal tax ez form Meals. Federal tax ez form Moving expense reimbursements. Federal tax ez form No-additional-cost services. Federal tax ez form Transportation (commuting) benefits. Federal tax ez form Tuition reduction. Federal tax ez form Working condition benefits. Federal tax ez form It also cannot include scholarships or fellowships (discussed in Publication 970, Tax Benefits for Education). Federal tax ez form $2,500 limit on a health flexible spending arrangement (FSA). Federal tax ez form   For plan years beginning after December 31, 2012, a cafeteria plan may not allow an employee to request salary reduction contributions for a health FSA in excess of $2,500. Federal tax ez form For plan years beginning after December 31, 2013, the limit is unchanged at $2,500. Federal tax ez form   A cafeteria plan offering a health FSA must be amended to specify the $2,500 limit (or any lower limit set by the employer). Federal tax ez form While cafeteria plans generally must be amended on a prospective basis, an amendment that is adopted on or before December 31, 2014, may be made effective retroactively, provided that in operation the cafeteria plan meets the limit for plan years beginning after December 31, 2012. Federal tax ez form A cafeteria plan that does not limit health FSA contributions to the dollar limit is not a cafeteria plan and all benefits offered under the plan are includible in the employee's gross income. Federal tax ez form   For more information, see Notice 2012-40, 2012-26 I. Federal tax ez form R. Federal tax ez form B. Federal tax ez form 1046, available at www. Federal tax ez form irs. Federal tax ez form gov/irb/2012-26_IRB/ar09. Federal tax ez form html. Federal tax ez form Employee. Federal tax ez form   For these plans, treat the following individuals as employees. Federal tax ez form A current common-law employee. Federal tax ez form See section 2 in Publication 15 (Circular E) for more information. Federal tax ez form A full-time life insurance agent who is a current statutory employee. Federal tax ez form A leased employee who has provided services to you on a substantially full-time basis for at least a year if the services are performed under your primary direction or control. Federal tax ez form Exception for S corporation shareholders. Federal tax ez form   Do not treat a 2% shareholder of an S corporation as an employee of the corporation for this purpose. Federal tax ez form A 2% shareholder for this purpose is someone who directly or indirectly owns (at any time during the year) more than 2% of the corporation's stock or stock with more than 2% of the voting power. Federal tax ez form Treat a 2% shareholder as you would a partner in a partnership for fringe benefit purposes, but do not treat the benefit as a reduction in distributions to the 2% shareholder. Federal tax ez form Plans that favor highly compensated employees. Federal tax ez form   If your plan favors highly compensated employees as to eligibility to participate, contributions, or benefits, you must include in their wages the value of taxable benefits they could have selected. Federal tax ez form A plan you maintain under a collective bargaining agreement does not favor highly compensated employees. Federal tax ez form   A highly compensated employee for this purpose is any of the following employees. Federal tax ez form An officer. Federal tax ez form A shareholder who owns more than 5% of the voting power or value of all classes of the employer's stock. Federal tax ez form An employee who is highly compensated based on the facts and circumstances. Federal tax ez form A spouse or dependent of a person described in (1), (2), or (3). Federal tax ez form Plans that favor key employees. Federal tax ez form   If your plan favors key employees, you must include in their wages the value of taxable benefits they could have selected. Federal tax ez form A plan favors key employees if more than 25% of the total of the nontaxable benefits you provide for all employees under the plan go to key employees. Federal tax ez form However, a plan you maintain under a collective bargaining agreement does not favor key employees. Federal tax ez form   A key employee during 2014 is generally an employee who is either of the following. Federal tax ez form An officer having annual pay of more than $170,000. Federal tax ez form An employee who for 2014 is either of the following. Federal tax ez form A 5% owner of your business. Federal tax ez form A 1% owner of your business whose annual pay was more than $150,000. Federal tax ez form Simple Cafeteria Plans Eligible employers meeting contribution requirements and eligibility and participation requirements can establish a simple cafeteria plan. Federal tax ez form Simple cafeteria plans are treated as meeting the nondiscrimination requirements of a cafeteria plan and certain benefits under a cafeteria plan. Federal tax ez form Eligible employer. Federal tax ez form   You are an eligible employer if you employ an average of 100 or fewer employees during either of the 2 preceding years. Federal tax ez form If your business was not in existence throughout the preceding year, you are eligible if you reasonably expect to employ an average of 100 or fewer employees in the current year. Federal tax ez form If you establish a simple cafeteria plan in a year that you employ an average of 100 or fewer employees, you are considered an eligible employer for any subsequent year as long as you do not employ an average of 200 or more employees in a subsequent year. Federal tax ez form Eligibility and participation requirements. Federal tax ez form   These requirements are met if all employees who had at least 1,000 hours of service for the preceding plan year are eligible to participate and each employee eligible to participate in the plan may elect any benefit available under the plan. Federal tax ez form You may elect to exclude from the plan employees who: Are under age 21 before the close of the plan year, Have less than 1 year of service with you as of any day during the plan year, Are covered under a collective bargaining agreement, or Are nonresident aliens working outside the United States whose income did not come from a U. Federal tax ez form S. Federal tax ez form source. Federal tax ez form Contribution requirements. Federal tax ez form   You must make a contribution to provide qualified benefits on behalf of each qualified employee in an amount equal to: A uniform percentage (not less than 2%) of the employee’s compensation for the plan year, or An amount which is at least 6% of the employee’s compensation for the plan year or twice the amount of the salary reduction contributions of each qualified employee, whichever is less. Federal tax ez form If the contribution requirements are met using option (2), the rate of contribution to any salary reduction contribution of a highly compensated or key employee can not be greater than the rate of contribution to any other employee. Federal tax ez form More information. Federal tax ez form   For more information about cafeteria plans, see section 125 of the Internal Revenue Code and its regulations. Federal tax ez form 2. Federal tax ez form Fringe Benefit Exclusion Rules This section discusses the exclusion rules that apply to fringe benefits. Federal tax ez form These rules exclude all or part of the value of certain benefits from the recipient's pay. Federal tax ez form The excluded benefits are not subject to federal income tax withholding. Federal tax ez form Also, in most cases, they are not subject to social security, Medicare, or federal unemployment (FUTA) tax and are not reported on Form W-2. Federal tax ez form This section discusses the exclusion rules for the following fringe benefits. Federal tax ez form Accident and health benefits. Federal tax ez form Achievement awards. Federal tax ez form Adoption assistance. Federal tax ez form Athletic facilities. Federal tax ez form De minimis (minimal) benefits. Federal tax ez form Dependent care assistance. Federal tax ez form Educational assistance. Federal tax ez form Employee discounts. Federal tax ez form Employee stock options. Federal tax ez form Employer-provided cell phones. Federal tax ez form Group-term life insurance coverage. Federal tax ez form Health savings accounts (HSAs). Federal tax ez form Lodging on your business premises. Federal tax ez form Meals. Federal tax ez form Moving expense reimbursements. Federal tax ez form No-additional-cost services. Federal tax ez form Retirement planning services. Federal tax ez form Transportation (commuting) benefits. Federal tax ez form Tuition reduction. Federal tax ez form Working condition benefits. Federal tax ez form See Table 2-1, later, for an overview of the employment tax treatment of these benefits. Federal tax ez form Table 2-1. Federal tax ez form Special Rules for Various Types of Fringe Benefits (For more information, see the full discussion in this section. Federal tax ez form ) Treatment Under Employment Taxes Type of Fringe Benefit Income Tax Withholding Social Security and Medicare (including Additional Medicare Tax when wages are paid in excess of $200,000) Federal Unemployment (FUTA) Accident and health benefits Exempt1,2, except for long-term care benefits provided through a flexible spending or similar arrangement. Federal tax ez form Exempt, except for certain payments to S corporation employees who are 2% shareholders. Federal tax ez form Exempt Achievement awards Exempt1 up to $1,600 for qualified plan awards ($400 for nonqualified awards). Federal tax ez form Adoption assistance Exempt1,3 Taxable Taxable Athletic facilities Exempt if substantially all use during the calendar year is by employees, their spouses, and their dependent children and the facility is operated by the employer on premises owned or leased by the employer. Federal tax ez form De minimis (minimal) benefits Exempt Exempt Exempt Dependent care assistance Exempt3 up to certain limits, $5,000 ($2,500 for married employee filing separate return). Federal tax ez form Educational assistance Exempt up to $5,250 of benefits each year. Federal tax ez form (See Educational Assistance , later in this section. Federal tax ez form ) Employee discounts Exempt3 up to certain limits. Federal tax ez form (See Employee Discounts , later in this section. Federal tax ez form ) Employee stock options See Employee Stock Options , later in this section. Federal tax ez form Employer-provided cell phones Exempt if provided primarily for noncompensatory business purposes. Federal tax ez form Group-term life insurance coverage Exempt Exempt1,4, 7 up to cost of $50,000 of coverage. Federal tax ez form (Special rules apply to former employees. Federal tax ez form ) Exempt Health savings accounts (HSAs) Exempt for qualified individuals up to the HSA contribution limits. Federal tax ez form (See Health Savings Accounts , later in this section. Federal tax ez form ) Lodging on your business premises Exempt1 if furnished for your convenience as a condition of employment. Federal tax ez form Meals Exempt if furnished on your business premises for your convenience. Federal tax ez form Exempt if de minimis. Federal tax ez form Moving expense reimbursements Exempt1 if expenses would be deductible if the employee had paid them. Federal tax ez form No-additional-cost services Exempt3 Exempt3 Exempt3 Retirement planning services Exempt5 Exempt5 Exempt5 Transportation (commuting) benefits Exempt1 up to certain limits if for rides in a commuter highway vehicle and/or transit passes ($130), qualified parking ($250), or qualified bicycle commuting reimbursement6 ($20). Federal tax ez form (See Transportation (Commuting) Benefits , later in this section. Federal tax ez form ) Exempt if de minimis. Federal tax ez form Tuition reduction Exempt3 if for undergraduate education (or graduate education if the employee performs teaching or research activities). Federal tax ez form Working condition benefits Exempt Exempt Exempt 1 Exemption does not apply to S corporation employees who are 2% shareholders. Federal tax ez form 2 Exemption does not apply to certain highly compensated employees under a self-insured plan that favors those employees. Federal tax ez form 3 Exemption does not apply to certain highly compensated employees under a program that favors those employees. Federal tax ez form 4 Exemption does not apply to certain key employees under a plan that favors those employees. Federal tax ez form 5 Exemption does not apply to services for tax preparation, accounting, legal, or brokerage services. Federal tax ez form 6 If the employee receives a qualified bicycle commuting reimbursement in a qualified bicycle commuting month, the employee cannot receive commuter highway vehicle, transit pass, or qualified parking benefits in that same month. Federal tax ez form 7 You must include in your employee's wages the cost of group-term life insurance beyond $50,000 worth of coverage, reduced by the amount the employee paid toward the insurance. Federal tax ez form Report it as wages in boxes 1, 3, and 5 of the employee's Form W-2. Federal tax ez form Also, show it in box 12 with code “C. Federal tax ez form ” The amount is subject to social security and Medicare taxes, and you may, at your option, withhold federal income tax. Federal tax ez form Accident and Health Benefits This exclusion applies to contributions you make to an accident or health plan for an employee, including the following. Federal tax ez form Contributions to the cost of accident or health insurance including qualified long-term care insurance. Federal tax ez form Contributions to a separate trust or fund that directly or through insurance provides accident or health benefits. Federal tax ez form Contributions to Archer MSAs or health savings accounts (discussed in Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans). Federal tax ez form This exclusion also applies to payments you directly or indirectly make to an employee under an accident or health plan for employees that are either of the following. Federal tax ez form Payments or reimbursements of medical expenses. Federal tax ez form Payments for specific injuries or illnesses (such as the loss of the use of an arm or leg). Federal tax ez form The payments must be figured without regard to any period of absence from work. Federal tax ez form Accident or health plan. Federal tax ez form   This is an arrangement that provides benefits for your employees, their spouses, their dependents, and their children (under age 27) in the event of personal injury or sickness. Federal tax ez form The plan may be insured or noninsured and does not need to be in writing. Federal tax ez form Employee. Federal tax ez form   For this exclusion, treat the following individuals as employees. Federal tax ez form A current common-law employee. Federal tax ez form A full-time life insurance agent who is a current statutory employee. Federal tax ez form A retired employee. Federal tax ez form A former employee you maintain coverage for based on the employment relationship. Federal tax ez form A widow or widower of an individual who died while an employee. Federal tax ez form A widow or widower of a retired employee. Federal tax ez form For the exclusion of contributions to an accident or health plan, a leased employee who has provided services to you on a substantially full-time basis for at least a year if the services are performed under your primary direction or control. Federal tax ez form Special rule for certain government plans. Federal tax ez form   For certain government accident and health plans, payments to a deceased plan participant's beneficiary may qualify for the exclusion from gross income if the other requirements for exclusion are met. Federal tax ez form See section 105(j) for details. Federal tax ez form Exception for S corporation shareholders. Federal tax ez form   Do not treat a 2% shareholder of an S corporation as an employee of the corporation for this purpose. Federal tax ez form A 2% shareholder is someone who directly or indirectly owns (at any time during the year) more than 2% of the corporation's stock or stock with more than 2% of the voting power. Federal tax ez form Treat a 2% shareholder as you would a partner in a partnership for fringe benefit purposes, but do not treat the benefit as a reduction in distributions to the 2% shareholder. Federal tax ez form Exclusion from wages. Federal tax ez form   You can generally exclude the value of accident or health benefits you provide to an employee from the employee's wages. Federal tax ez form Exception for certain long-term care benefits. Federal tax ez form   You cannot exclude contributions to the cost of long-term care insurance from an employee's wages subject to federal income tax withholding if the coverage is provided through a flexible spending or similar arrangement. Federal tax ez form This is a benefit program that reimburses specified expenses up to a maximum amount that is reasonably available to the employee and is less than five times the total cost of the insurance. Federal tax ez form However, you can exclude these contributions from the employee's wages subject to social security, Medicare, and federal unemployment (FUTA) taxes. Federal tax ez form S corporation shareholders. Federal tax ez form   Because you cannot treat a 2% shareholder of an S corporation as an employee for this exclusion, you must include the value of accident or health benefits you provide to the employee in the employee's wages subject to federal income tax withholding. Federal tax ez form However, you can exclude the value of these benefits (other than payments for specific injuries or illnesses) from the employee's wages subject to social security, Medicare, and FUTA taxes. Federal tax ez form Exception for highly compensated employees. Federal tax ez form   If your plan is a self-insured medical reimbursement plan that favors highly compensated employees, you must include all or part of the amounts you pay to these employees in their wages subject to federal income tax withholding. Federal tax ez form However, you can exclude these amounts (other than payments for specific injuries or illnesses) from the employee's wages subject to social security, Medicare, and FUTA taxes. Federal tax ez form   A self-insured plan is a plan that reimburses your employees for medical expenses not covered by an accident or health insurance policy. Federal tax ez form   A highly compensated employee for this exception is any of the following individuals. Federal tax ez form One of the five highest paid officers. Federal tax ez form An employee who owns (directly or indirectly) more than 10% in value of the employer's stock. Federal tax ez form An employee who is among the highest paid 25% of all employees (other than those who can be excluded from the plan). Federal tax ez form   For more information on this exception, see section 105(h) of the Internal Revenue Code and its regulations. Federal tax ez form COBRA premiums. Federal tax ez form   The exclusion for accident and health benefits applies to amounts you pay to maintain medical coverage for a current or former employee under the Combined Omnibus Budget Reconciliation Act of 1986 (COBRA). Federal tax ez form The exclusion applies regardless of the length of employment, whether you directly pay the premiums or reimburse the former employee for premiums paid, and whether the employee's separation is permanent or temporary. Federal tax ez form Achievement Awards This exclusion applies to the value of any tangible personal property you give to an employee as an award for either length of service or safety achievement. Federal tax ez form The exclusion does not apply to awards of cash, cash equivalents, gift certificates, or other intangible property such as vacations, meals, lodging, tickets to theater or sporting events, stocks, bonds, and other securities. Federal tax ez form The award must meet the requirements for employee achievement awards discussed in chapter 2 of Publication 535, Business Expenses. Federal tax ez form Employee. Federal tax ez form   For this exclusion, treat the following individuals as employees. Federal tax ez form A current employee. Federal tax ez form A former common-law employee you maintain coverage for in consideration of or based on an agreement relating to prior service as an employee. Federal tax ez form A leased employee who has provided services to you on a substantially full-time basis for at least a year if the services are performed under your primary direction or control. Federal tax ez form Exception for S corporation shareholders. Federal tax ez form   Do not treat a 2% shareholder of an S corporation as an employee of the corporation for this purpose. Federal tax ez form A 2% shareholder is someone who directly or indirectly owns (at any time during the year) more than 2% of the corporation's stock or stock with more than 2% of the voting power. Federal tax ez form Treat a 2% shareholder as you would a partner in a partnership for fringe benefit purposes, but do not treat the benefit as a reduction in distributions to the 2% shareholder. Federal tax ez form Exclusion from wages. Federal tax ez form   You can generally exclude the value of achievement awards you give to an employee from the employee's wages if their cost is not more than the amount you can deduct as a business expense for the year. Federal tax ez form The excludable annual amount is $1,600 ($400 for awards that are not “qualified plan awards”). Federal tax ez form See chapter 2 of Publication 535 for more information about the limit on deductions for employee achievement awards. Federal tax ez form    To determine for 2014 whether an achievement award is a “qualified plan award” under the deduction rules described in Publication 535, treat any employee who received more than $115,000 in pay for 2013 as a highly compensated employee. Federal tax ez form   If the cost of awards given to an employee is more than your allowable deduction, include in the employee's wages the larger of the following amounts. Federal tax ez form The part of the cost that is more than your allowable deduction (up to the value of the awards). Federal tax ez form The amount by which the value of the awards exceeds your allowable deduction. Federal tax ez form Exclude the remaining value of the awards from the employee's wages. Federal tax ez form Adoption Assistance An adoption assistance program is a separate written plan of an employer that meets all of the following requirements. Federal tax ez form It benefits employees who qualify under rules set up by you, which do not favor highly compensated employees or their dependents. Federal tax ez form To determine whether your plan meets this test, do not consider employees excluded from your plan who are covered by a collective bargaining agreement, if there is evidence that adoption assistance was a subject of good-faith bargaining. Federal tax ez form It does not pay more than 5% of its payments during the year for shareholders or owners (or their spouses or dependents). Federal tax ez form A shareholder or owner is someone who owns (on any day of the year) more than 5% of the stock or of the capital or profits interest of your business. Federal tax ez form You give reasonable notice of the plan to eligible employees. Federal tax ez form Employees provide reasonable substantiation that payments or reimbursements are for qualifying expenses. Federal tax ez form For this exclusion, a highly compensated employee for 2014 is an employee who meets either of the following tests. Federal tax ez form The employee was a 5% owner at any time during the year or the preceding year. Federal tax ez form The employee received more than $115,000 in pay for the preceding year. Federal tax ez form You can choose to ignore test (2) if the employee was not also in the top 20% of employees when ranked by pay for the preceding year. Federal tax ez form You must exclude all payments or reimbursements you make under an adoption assistance program for an employee's qualified adoption expenses from the employee's wages subject to federal income tax withholding. Federal tax ez form However, you cannot exclude these payments from wages subject to social security, Medicare, and federal unemployment (FUTA) taxes. Federal tax ez form For more information, see the Instructions for Form 8839, Qualified Adoption Expenses. Federal tax ez form You must report all qualifying adoption expenses you paid or reimbursed under your adoption assistance program for each employee for the year in box 12 of the employee's Form W-2. Federal tax ez form Use code “T” to identify this amount. Federal tax ez form Exception for S corporation shareholders. Federal tax ez form   For this exclusion, do not treat a 2% shareholder of an S corporation as an employee of the corporation. Federal tax ez form A 2% shareholder is someone who directly or indirectly owns (at any time during the year) more than 2% of the corporation's stock or stock with more than 2% of the voting power. Federal tax ez form Treat a 2% shareholder as you would a partner in a partnership for fringe benefit purposes, including using the benefit as a reduction in distributions to the 2% shareholder. Federal tax ez form Athletic Facilities You can exclude the value of an employee's use of an on-premises gym or other athletic facility you operate from an employee's wages if substantially all use of the facility during the calendar year is by your employees, their spouses, and their dependent children. Federal tax ez form For this purpose, an employee's dependent child is a child or stepchild who is the employee's dependent or who, if both parents are deceased, has not attained the age of 25. Federal tax ez form On-premises facility. Federal tax ez form   The athletic facility must be located on premises you own or lease. Federal tax ez form It does not have to be located on your business premises. Federal tax ez form However, the exclusion does not apply to an athletic facility for residential use, such as athletic facilities that are part of a resort. Federal tax ez form Employee. Federal tax ez form   For this exclusion, treat the following individuals as employees. Federal tax ez form A current employee. Federal tax ez form A former employee who retired or left on disability. Federal tax ez form A widow or widower of an individual who died while an employee. Federal tax ez form A widow or widower of a former employee who retired or left on disability. Federal tax ez form A leased employee who has provided services to you on a substantially full-time basis for at least a year if the services are performed under your primary direction or control. Federal tax ez form A partner who performs services for a partnership. Federal tax ez form De Minimis (Minimal) Benefits You can exclude the value of a de minimis benefit you provide to an employee from the employee's wages. Federal tax ez form A de minimis benefit is any property or service you provide to an employee that has so little value (taking into account how frequently you provide similar benefits to your employees) that accounting for it would be unreasonable or administratively impracticable. Federal tax ez form Cash and cash equivalent fringe benefits (for example, use of gift card, charge card, or credit card), no matter how little, are never excludable as a de minimis benefit, except for occasional meal money or transportation fare. Federal tax ez form Examples of de minimis benefits include the following. Federal tax ez form Personal use of an employer-provided cell phone provided primarily for noncompensatory business purposes. Federal tax ez form See Employer-Provided Cell Phones , later in this section, for details. Federal tax ez form Occasional personal use of a company copying machine if you sufficiently control its use so that at least 85% of its use is for business purposes. Federal tax ez form Holiday gifts, other than cash, with a low fair market value. Federal tax ez form Group-term life insurance payable on the death of an employee's spouse or dependent if the face amount is not more than $2,000. Federal tax ez form Meals. Federal tax ez form See Meals , later in this section, for details. Federal tax ez form Occasional parties or picnics for employees and their guests. Federal tax ez form Occasional tickets for theater or sporting events. Federal tax ez form Transportation fare. Federal tax ez form See Transportation (Commuting) Benefits , later in this section, for details. Federal tax ez form Employee. Federal tax ez form   For this exclusion, treat any recipient of a de minimis benefit as an employee. Federal tax ez form Dependent Care Assistance This exclusion applies to household and dependent care services you directly or indirectly pay for or provide to an employee under a dependent care assistance program that covers only your employees. Federal tax ez form The services must be for a qualifying person's care and must be provided to allow the employee to work. Federal tax ez form These requirements are basically the same as the tests the employee would have to meet to claim the dependent care credit if the employee paid for the services. Federal tax ez form For more information, see Qualifying Person Test and Work-Related Expense Test in Publication 503, Child and Dependent Care Expenses. Federal tax ez form Employee. Federal tax ez form   For this exclusion, treat the following individuals as employees. Federal tax ez form A current employee. Federal tax ez form A leased employee who has provided services to you on a substantially full-time basis for at least a year if the services are performed under your primary direction or control. Federal tax ez form Yourself (if you are a sole proprietor). Federal tax ez form A partner who performs services for a partnership. Federal tax ez form Exclusion from wages. Federal tax ez form   You can exclude the value of benefits you provide to an employee under a dependent care assistance program from the employee's wages if you reasonably believe that the employee can exclude the benefits from gross income. Federal tax ez form   An employee can generally exclude from gross income up to $5,000 of benefits received under a dependent care assistance program each year. Federal tax ez form This limit is reduced to $2,500 for married employees filing separate returns. Federal tax ez form   However, the exclusion cannot be more than the smaller of the earned income of either the employee or employee's spouse. Federal tax ez form Special rules apply to determine the earned income of a spouse who is either a student or not able to care for himself or herself. Federal tax ez form For more information on the earned income limit, see Publication 503. Federal tax ez form Exception for highly compensated employees. Federal tax ez form   You cannot exclude dependent care assistance from the wages of a highly compensated employee unless the benefits provided under the program do not favor highly compensated employees and the program meets the requirements described in section 129(d) of the Internal Revenue Code. Federal tax ez form   For this exclusion, a highly compensated employee for 2014 is an employee who meets either of the following tests. Federal tax ez form The employee was a 5% owner at any time during the year or the preceding year. Federal tax ez form The employee received more than $115,000 in pay for the preceding year. Federal tax ez form You can choose to ignore test (2) if the employee was not also in the top 20% of employees when ranked by pay for the preceding year. Federal tax ez form Form W-2. Federal tax ez form   Report the value of all dependent care assistance you provide to an employee under a dependent care assistance program in box 10 of the employee's Form W-2. Federal tax ez form Include any amounts you cannot exclude from the employee's wages in boxes 1, 3, and 5. Federal tax ez form Report both the nontaxable portion of assistance (up to $5,000) and any assistance above the amount that is non-taxable to the employee. Federal tax ez form Example. Federal tax ez form   Company A provides a dependent care assistance flexible spending arrangement to its employees through a cafeteria plan. Federal tax ez form In addition, it provides occasional on-site dependent care to its employees at no cost. Federal tax ez form Emily, an employee of company A, had $4,500 deducted from her pay for the dependent care flexible spending arrangement. Federal tax ez form In addition, Emily used the on-site dependent care several times. Federal tax ez form The fair market value of the on-site care was $700. Federal tax ez form Emily's Form W-2 should report $5,200 of dependent care assistance in box 10 ($4,500 flexible spending arrangement plus $700 on-site dependent care). Federal tax ez form Boxes 1, 3, and 5 should include $200 (the amount in excess of the nontaxable assistance), and applicable taxes should be withheld on that amount. Federal tax ez form Educational Assistance This exclusion applies to educational assistance you provide to employees under an educational assistance program. Federal tax ez form The exclusion also applies to graduate level courses. Federal tax ez form Educational assistance means amounts you pay or incur for your employees' education expenses. Federal tax ez form These expenses generally include the cost of books, equipment, fees, supplies, and tuition. Federal tax ez form However, these expenses do not include the cost of a course or other education involving sports, games, or hobbies, unless the education: Has a reasonable relationship to your business, or Is required as part of a degree program. Federal tax ez form Education expenses do not include the cost of tools or supplies (other than textbooks) your employee is allowed to keep at the end of the course. Federal tax ez form Nor do they include the cost of lodging, meals, or transportation. Federal tax ez form Educational assistance program. Federal tax ez form   An educational assistance program is a separate written plan that provides educational assistance only to your employees. Federal tax ez form The program qualifies only if all of the following tests are met. Federal tax ez form The program benefits employees who qualify under rules set up by you that do not favor highly compensated employees. Federal tax ez form To determine whether your program meets this test, do not consider employees excluded from your program who are covered by a collective bargaining agreement if there is evidence that educational assistance was a subject of good-faith bargaining. Federal tax ez form The program does not provide more than 5% of its benefits during the year for shareholders or owners. Federal tax ez form A shareholder or owner is someone who owns (on any day of the year) more than 5% of the stock or of the capital or profits interest of your business. Federal tax ez form The program does not allow employees to choose to receive cash or other benefits that must be included in gross income instead of educational assistance. Federal tax ez form You give reasonable notice of the program to eligible employees. Federal tax ez form Your program can cover former employees if their employment is the reason for the coverage. Federal tax ez form   For this exclusion, a highly compensated employee for 2014 is an employee who meets either of the following tests. Federal tax ez form The employee was a 5% owner at any time during the year or the preceding year. Federal tax ez form The employee received more than $115,000 in pay for the preceding year. Federal tax ez form You can choose to ignore test (2) if the employee was not also in the top 20% of employees when ranked by pay for the preceding year. Federal tax ez form Employee. Federal tax ez form   For this exclusion, treat the following individuals as employees. Federal tax ez form A current employee. Federal tax ez form A former employee who retired, left on disability, or was laid off. Federal tax ez form A leased employee who has provided services to you on a substantially full-time basis for at least a year if the services are performed under your primary direction or control. Federal tax ez form Yourself (if you are a sole proprietor). Federal tax ez form A partner who performs services for a partnership. Federal tax ez form Exclusion from wages. Federal tax ez form   You can exclude up to $5,250 of educational assistance you provide to an employee under an educational assistance program from the employee's wages each year. Federal tax ez form Assistance over $5,250. Federal tax ez form   If you do not have an educational assistance plan, or you provide an employee with assistance exceeding $5,250, you must include the value of these benefits as wages, unless the benefits are working condition benefits. Federal tax ez form Working condition benefits may be excluded from wages. Federal tax ez form Property or a service provided is a working condition benefit to the extent that if the employee paid for it, the amount paid would have been deductible as a business or depreciation expense. Federal tax ez form See Working Condition Benefits , later, in this section. Federal tax ez form Employee Discounts This exclusion applies to a price reduction you give an employee on property or services you offer to customers in the ordinary course of the line of business in which the employee performs substantial services. Federal tax ez form However, it does not apply to discounts on real property or discounts on personal property of a kind commonly held for investment (such as stocks or bonds). Federal tax ez form Employee. Federal tax ez form   For this exclusion, treat the following individuals as employees. Federal tax ez form A current employee. Federal tax ez form A former employee who retired or left on disability. Federal tax ez form A widow or widower of an individual who died while an employee. Federal tax ez form A widow or widower of an employee who retired or left on disability. Federal tax ez form A leased employee who has provided services to you on a substantially full-time basis for at least a year if the services are performed under your primary direction or control. Federal tax ez form A partner who performs services for a partnership. Federal tax ez form Exclusion from wages. Federal tax ez form   You can generally exclude the value of an employee discount you provide an employee from the employee's wages, up to the following limits. Federal tax ez form For a discount on services, 20% of the price you charge nonemployee customers for the service. Federal tax ez form For a discount on merchandise or other property, your gross profit percentage times the price you charge nonemployee customers for the property. Federal tax ez form   Determine your gross profit percentage in the line of business based on all property you offer to customers (including employee customers) and your experience during the tax year immediately before the tax year in which the discount is available. Federal tax ez form To figure your gross profit percentage, subtract the total cost of the property from the total sales price of the property and divide the result by the total sales price of the property. Federal tax ez form Exception for highly compensated employees. Federal tax ez form   You cannot exclude from the wages of a highly compensated employee any part of the value of a discount that is not available on the same terms to one of the following groups. Federal tax ez form All of your employees. Federal tax ez form A group of employees defined under a reasonable classification you set up that does not favor highly compensated employees. Federal tax ez form   For this exclusion, a highly compensated employee for 2014 is an employee who meets either of the following tests. Federal tax ez form The employee was a 5% owner at any time during the year or the preceding year. Federal tax ez form The employee received more than $115,000 in pay for the preceding year. Federal tax ez form You can choose to ignore test (2) if the employee was not also in the top 20% of employees when ranked by pay for the preceding year. Federal tax ez form Employee Stock Options There are three kinds of stock options—incentive stock options, employee stock purchase plan options, and nonstatutory (nonqualified) stock options. Federal tax ez form Wages for social security, Medicare, and federal unemployment (FUTA) taxes do not include remuneration resulting from the exercise, after October 22, 2004, of an incentive stock option or under an employee stock purchase plan option, or from any disposition of stock acquired by exercising such an option. Federal tax ez form The IRS will not apply these taxes to an exercise before October 23, 2004, of an incentive stock option or an employee stock purchase plan option or to a disposition of stock acquired by such exercise. Federal tax ez form Additionally, federal income tax withholding is not required on the income resulting from a disqualifying disposition of stock acquired by the exercise after October 22, 2004, of an incentive stock option or under an employee stock purchase plan option, or on income equal to the discount portion of stock acquired by the exercise, after October 22, 2004, of an employee stock purchase plan option resulting from any disposition of the stock. Federal tax ez form The IRS will not apply federal income tax withholding upon the disposition of stock acquired by the exercise, before October 23, 2004, of an incentive stock option or an employee stock purchase plan option. Federal tax ez form However, the employer must report as income in box 1 of Form W-2, (a) the discount portion of stock acquired by the exercise of an employee stock purchase plan option upon disposition of the stock, and (b) the spread (between the exercise price and the fair market value of the stock at the time of exercise) upon a disqualifying disposition of stock acquired by the exercise of an incentive stock option or an employee stock purchase plan option. Federal tax ez form An employer must report the excess of the fair market value of stock received upon exercise of a nonstatutory stock option over the amount paid for the stock option on Form W-2 in boxes 1, 3 (up to the social security wage base), 5, and in box 12 using the code “V. Federal tax ez form ” See Regulations section 1. Federal tax ez form 83-7. Federal tax ez form An employee who transfers his or her interest in nonstatutory stock options to the employee's former spouse incident to a divorce is not required to include an amount in gross income upon the transfer. Federal tax ez form The former spouse, rather than the employee, is required to include an amount in gross income when the former spouse exercises the stock options. Federal tax ez form See Revenue Ruling 2002-22 and Revenue Ruling 2004-60 for details. Federal tax ez form You can find Revenue Ruling 2002-22 on page 849 of Internal Revenue Bulletin 2002-19 at www. Federal tax ez form irs. Federal tax ez form gov/pub/irs-irbs/irb02-19. Federal tax ez form pdf. Federal tax ez form See Revenue Ruling 2004-60, 2004-24 I. Federal tax ez form R. Federal tax ez form B. Federal tax ez form 1051, available at www. Federal tax ez form irs. Federal tax ez form gov/irb/2004-24_IRB/ar13. Federal tax ez form html. Federal tax ez form For more information about employee stock options, see sections 421, 422, and 423 of the Internal Revenue Code and their related regulations. Federal tax ez form Employer-Provided Cell Phones The value of an employer-provided cell phone, provided primarily for noncompensatory business reasons, is excludable from an employee's income as a working condition fringe benefit. Federal tax ez form Personal use of an employer-provided cell phone, provided primarily for noncompensatory business reasons, is excludable from an employee's income as a de minimis fringe benefit. Federal tax ez form For the rules relating to these types of benefits, see De Minimis (Minimal) Benefits , earlier in this section, and Working Condition Benefits , later in this section. Federal tax ez form Noncompensatory business purposes. Federal tax ez form   You provide a cell phone primarily for noncompensatory business purposes if there are substantial business reasons for providing the cell phone. Federal tax ez form Examples of substantial business reasons include the employer's: Need to contact the employee at all times for work-related emergencies, Requirement that the employee be available to speak with clients at times when the employee is away from the office, and Need to speak with clients located in other time zones at times outside the employee's normal workday. Federal tax ez form Cell phones provided to promote goodwill, boost morale, or attract prospective employees. Federal tax ez form   You cannot exclude from an employee's wages the value of a cell phone provided to promote goodwill of an employee, to attract a prospective employee, or as a means of providing additional compensation to an employee. Federal tax ez form Additional information. Federal tax ez form   For additional information on the tax treatment of employer-provided cell phones, see Notice 2011-72, 2011-38 I. Federal tax ez form R. Federal tax ez form B. Federal tax ez form 407, available at  www. Federal tax ez form irs. Federal tax ez form gov/irb/2011-38_IRB/ar07. Federal tax ez form html. Federal tax ez form Group-Term Life Insurance Coverage This exclusion applies to life insurance coverage that meets all the following conditions. Federal tax ez form It provides a general death benefit that is not included in income. Federal tax ez form You provide it to a group of employees. Federal tax ez form See The 10-employee rule , later. Federal tax ez form It provides an amount of insurance to each employee based on a formula that prevents individual selection. Federal tax ez form This formula must use factors such as the employee's age, years of service, pay, or position. Federal tax ez form You provide it under a policy you directly or indirectly carry. Federal tax ez form Even if you do not pay any of the policy's cost, you are considered to carry it if you arrange for payment of its cost by your employees and charge at least one employee less than, and at least one other employee more than, the cost of his or her insurance. Federal tax ez form Determine the cost of the insurance, for this purpose, as explained under Coverage over the limit , later. Federal tax ez form Group-term life insurance does not include the following insurance. Federal tax ez form Insurance that does not provide general death benefits, such as travel insurance or a policy providing only accidental death benefits. Federal tax ez form Life insurance on the life of your employee's spouse or dependent. Federal tax ez form However, you may be able to exclude the cost of this insurance from the employee's wages as a de minimis benefit. Federal tax ez form See De Minimis (Minimal) Benefits , earlier in this section. Federal tax ez form Insurance provided under a policy that provides a permanent benefit (an economic value that extends beyond 1 policy year, such as paid-up or cash surrender value), unless certain requirements are met. Federal tax ez form See Regulations section 1. Federal tax ez form 79-1 for details. Federal tax ez form Employee. Federal tax ez form   For this exclusion, treat the following individuals as employees. Federal tax ez form A current common-law employee. Federal tax ez form A full-time life insurance agent who is a current statutory employee. Federal tax ez form An individual who was formerly your employee under (1) or (2). Federal tax ez form A leased employee who has provided services to you on a substantially full-time basis for at least a year if the services are performed under your primary direction and control. Federal tax ez form Exception for S corporation shareholders. Federal tax ez form   Do not treat a 2% shareholder of an S corporation as an employee of the corporation for this purpose. Federal tax ez form A 2% shareholder is someone who directly or indirectly owns (at any time during the year) more than 2% of the corporation's stock or stock with more than 2% of the voting power. Federal tax ez form Treat a 2% shareholder as you would a partner in a partnership for fringe benefit purposes, but do not treat the benefit as a reduction in distributions to the 2% shareholder. Federal tax ez form The 10-employee rule. Federal tax ez form   Generally, life insurance is not group-term life insurance unless you provide it to at least 10 full-time employees at some time during the year. Federal tax ez form   For this rule, count employees who choose not to receive the insurance unless, to receive it, they must contribute to the cost of benefits other than the group-term life insurance. Federal tax ez form For example, count an employee who could receive insurance by paying part of the cost, even if that employee chooses not to receive it. Federal tax ez form However, do not count an employee who must pay part or all of the cost of permanent benefits to get insurance, unless that employee chooses to receive it. Federal tax ez form A permanent benefit is an economic value extending beyond one policy year (for example, a paid-up or cash-surrender value) that is provided under a life insurance policy. Federal tax ez form Exceptions. Federal tax ez form   Even if you do not meet the 10-employee rule, two exceptions allow you to treat insurance as group-term life insurance. Federal tax ez form   Under the first exception, you do not have to meet the 10-employee rule if all the following conditions are met. Federal tax ez form If evidence that the employee is insurable is required, it is limited to a medical questionnaire (completed by the employee) that does not require a physical. Federal tax ez form You provide the insurance to all your full-time employees or, if the insurer requires the evidence mentioned in (1), to all full-time employees who provide evidence the insurer accepts. Federal tax ez form You figure the coverage based on either a uniform percentage of pay or the insurer's coverage brackets that meet certain requirements. Federal tax ez form See Regulations section 1. Federal tax ez form 79-1 for details. Federal tax ez form   Under the second exception, you do not have to meet the 10-employee rule if all the following conditions are met. Federal tax ez form You provide the insurance under a common plan covering your employees and the employees of at least one other employer who is not related to you. Federal tax ez form The insurance is restricted to, but mandatory for, all your employees who belong to, or are represented by, an organization (such as a union) that carries on substantial activities besides obtaining insurance. Federal tax ez form Evidence of whether an employee is insurable does not affect an employee's eligibility for insurance or the amount of insurance that employee gets. Federal tax ez form   To apply either exception, do not consider employees who were denied insurance for any of the following reasons. Federal tax ez form They were 65 or older. Federal tax ez form They customarily work 20 hours or less a week or 5 months or less in a calendar year. Federal tax ez form They have not been employed for the waiting period given in the policy. Federal tax ez form This waiting period cannot be more than 6 months. Federal tax ez form Exclusion from wages. Federal tax ez form   You can generally exclude the cost of up to $50,000 of group-term life insurance from the wages of an insured employee. Federal tax ez form You can exclude the same amount from the employee's wages when figuring social security and Medicare taxes. Federal tax ez form In addition, you do not have to withhold federal income tax or pay FUTA tax on any group-term life insurance you provide to an employee. Federal tax ez form Coverage over the limit. Federal tax ez form   You must include in your employee's wages the cost of group-term life insurance beyond $50,000 worth of coverage, reduced by the amount the employee paid toward the insurance. Federal tax ez form Report it as wages in boxes 1, 3, and 5 of the employee's Form W-2. Federal tax ez form Also, show it in box 12 with code “C. Federal tax ez form ” The amount is subject to social security and Medicare taxes, and you may, at your option, withhold federal income tax. Federal tax ez form   Figure the monthly cost of the insurance to include in the employee's wages by multiplying the number of thousands of dollars of all insurance coverage over $50,000 (figured to the nearest $100) by the cost shown in Table 2-2. Federal tax ez form For all coverage provided within the calendar year, use the employee's age on the last day of the employee's tax year. Federal tax ez form You must prorate the cost from the table if less than a full month of coverage is involved. Federal tax ez form Table 2-2. Federal tax ez form Cost Per $1,000 of Protection For 1 Month Age Cost Under 25 $ . Federal tax ez form 05 25 through 29 . Federal tax ez form 06 30 through 34 . Federal tax ez form 08 35 through 39 . Federal tax ez form 09 40 through 44 . Federal tax ez form 10 45 through 49 . Federal tax ez form 15 50 through 54 . Federal tax ez form 23 55 through 59 . Federal tax ez form 43 60 through 64 . Federal tax ez form 66 65 through 69 1. Federal tax ez form 27 70 and older 2. Federal tax ez form 06 You figure the total cost to include in the employee's wages by multiplying the monthly cost by the number of full months' coverage at that cost. Federal tax ez form Example. Federal tax ez form Tom's employer provides him with group-term life insurance coverage of $200,000. Federal tax ez form Tom is 45 years old, is not a key employee, and pays $100 per year toward the cost of the insurance. Federal tax ez form Tom's employer must include $170 in his wages. Federal tax ez form The $200,000 of insurance coverage is reduced by $50,000. Federal tax ez form The yearly cost of $150,000 of coverage is $270 ($. Federal tax ez form 15 x 150 x 12), and is reduced by the $100 Tom pays for the insurance. Federal tax ez form The employer includes $170 in boxes 1, 3, and 5 of Tom's Form W-2. Federal tax ez form The employer also enters $170 in box 12 with code “C. Federal tax ez form ” Coverage for dependents. Federal tax ez form   Group-term life insurance coverage paid by the employer for the spouse or dependents of an employee may be excludable from income as a de minimis fringe benefit if the face amount is not more than $2,000. Federal tax ez form If the face amount is greater than $2,000, the entire cost of the dependent coverage must be included in income unless the amount over $2,000 is purchased with employee contributions on an after-tax basis. Federal tax ez form The cost of the insurance is determined by using Table 2-2. Federal tax ez form Former employees. Federal tax ez form   When group-term life insurance over $50,000 is provided to an employee (including retirees) after his or her termination, the employee share of social security and Medicare taxes on that period of coverage is paid by the former employee with his or her tax return and is not collected by the employer. Federal tax ez form You are not required to collect those taxes. Federal tax ez form Use the table above to determine the amount of social security and Medicare taxes owed by the former employee for coverage provided after separation from service. Federal tax ez form Report those uncollected amounts separately in box 12 of Form W-2 using codes “M” and “N. Federal tax ez form ” See the General Instructions for Forms W-2 and W-3 and the Instructions for Form 941. Federal tax ez form Exception for key employees. Federal tax ez form   Generally, if your group-term life insurance plan favors key employees as to participation or benefits, you must include the entire cost of the insurance in your key employees' wages. Federal tax ez form This exception generally does not apply to church plans. Federal tax ez form When figuring social security and Medicare taxes, you must also include the entire cost in the employees' wages. Federal tax ez form Include the cost in boxes 1, 3, and 5 of Form W-2. Federal tax ez form However, you do not have to withhold federal income tax or pay FUTA tax on the cost of any group-term life insurance you provide to an employee. Federal tax ez form   For this purpose, the cost of the insurance is the greater of the following amounts. Federal tax ez form The premiums you pay for the employee's insurance. Federal tax ez form See Regulations section 1. Federal tax ez form 79-4T(Q&A 6) for more information. Federal tax ez form The cost you figure using Table 2-2. Federal tax ez form   For this exclusion, a key employee during 2014 is an employee or former employee who is one of the following individuals. Federal tax ez form See section 416(i) of the Internal Revenue Code for more information. Federal tax ez form An officer having annual pay of more than $170,000. Federal tax ez form An individual who for 2014 was either of the following. Federal tax ez form A 5% owner of your business. Federal tax ez form A 1% owner of your business whose annual pay was more than $150,000. Federal tax ez form   A former employee who was a key employee upon retirement or separation from service is also a key employee. Federal tax ez form   Your plan does not favor key employees as to participation if at least one of the following is true. Federal tax ez form It benefits at least 70% of your employees. Federal tax ez form At least 85% of the participating employees are not key employees. Federal tax ez form It benefits employees who qualify under a set of rules you set up that do not favor key employees. Federal tax ez form   Your plan meets this participation test if it is part of a cafeteria plan (discussed in section 1) and it meets the participation test for those plans. Federal tax ez form   When applying this test, do not consider employees who: Have not completed 3 years of service, Are part-time or seasonal, Are nonresident aliens who receive no U. Federal tax ez form S. Federal tax ez form source earned income from you, or Are not included in the plan but are in a unit of employees covered by a collective bargaining agreement, if the benefits provided under the plan were the subject of good-faith bargaining between you and employee representatives. Federal tax ez form   Your plan does not favor key employees as to benefits if all benefits available to participating key employees are also available to all other participating employees. Federal tax ez form Your plan does not favor key employees just because the amount of insurance you provide to your employees is uniformly related to their pay. Federal tax ez form S corporation shareholders. Federal tax ez form   Because you cannot treat a 2% shareholder of an S corporation as an employee for this exclusion, you must include the cost of all group-term life insurance coverage you provide the 2% shareholder in his or her wages. Federal tax ez form When figuring social security and Medicare taxes, you must also include the cost of this coverage in the 2% shareholder's wages. Federal tax ez form Include the cost in boxes 1, 3, and 5 of Form W-2. Federal tax ez form However, you do not have to withhold federal income tax or pay federal unemployment tax on the cost of any group-term life insurance coverage you provide to the 2% shareholder. Federal tax ez form Health Savings Accounts A Health Savings Account (HSA) is an account owned by a qualified individual who is generally your employee or former employee. Federal tax ez form Any contributions that you make to an HSA become the employee's property and cannot be withdrawn by you. Federal tax ez form Contributions to the account are used to pay current or future medical expenses of the account owner, his or her spouse, and any qualified dependent. Federal tax ez form The medical expenses must not be reimbursable by insurance or other sources and their payment from HSA funds (distribution) will not give rise to a medical expense deduction on the individual's federal income tax return. Federal tax ez form For more information about HSAs, visit the Department of Treasury's website at www. Federal tax ez form treasury. Federal tax ez form gov and enter “HSA” in the search box. Federal tax ez form Eligibility. Federal tax ez form   A qualified individual must be covered by a High Deductible Health Plan (HDHP) and not be covered by other health insurance except for permitted insurance listed under section 223(c)(3) or insurance for accidents, disability, dental care, vision care, or long-term care. Federal tax ez form For calendar year 2014, a qualifying HDHP must have a deductible of at least $1,250 for self-only coverage or $2,500 for family coverage and must limit annual out-of-pocket expenses of the beneficiary to $6,350 for self-only coverage and $12,700 for family coverage. Federal tax ez form   There are no income limits that restrict an individual's eligibility to contribute to an HSA nor is there a requirement that the account owner have earned income to make a contribution. Federal tax ez form Exceptions. Federal tax ez form   An individual is not a qualified individual if he or she can be claimed as a dependent on another person's tax return. Federal tax ez form Also, an employee's participation in a health flexible spending arrangement (FSA) or health reimbursement arrangement (HRA) generally disqualifies the individual (and employer) from making contributions to his or her HSA. Federal tax ez form However, an individual may qualify to participate in an HSA if he or she is participating in only a limited-purpose FSA or HRA or a post-deductible FSA. Federal tax ez form For more information, see Other employee health plans in Publication 969. Federal tax ez form Employer contributions. Federal tax ez form   Up to specified dollar limits, cash contributions to the HSA of a qualified individual (determined monthly) are exempt from federal income tax withholding, social security tax, Medicare tax, and FUTA tax. Federal tax ez form For 2014, you can contribute up to $3,300 for self-only coverage or $6,550 for family coverage to a qualified individual's HSA. Federal tax ez form   The contribution amounts listed above are increased by $1,000 for a qualified individual who is age 55 or older at any time during the year. Federal tax ez form For two qualified individuals who are married to each other and who each are age 55 or older at any time during the year, each spouse's contribution limit is increased by $1,000 provided each spouse has a separate HSA. Federal tax ez form No contributions can be made to an individual's HSA after he or she becomes enrolled in Medicare Part A or Part B. Federal tax ez form Nondiscrimination rules. Federal tax ez form    Your contribution amount to an employee's HSA must be comparable for all employees who have comparable coverage during the same period. Federal tax ez form Otherwise, there will be an excise tax equal to 35% of the amount you contributed to all employees' HSAs. Federal tax ez form   For guidance on employer comparable contributions to HSAs under section 4980G in instances where an employee has not established an HSA by December 31 and in instances where an employer accelerates contributions for the calendar year for employees who have incurred qualified medical expenses, see Regulations section 54. Federal tax ez form 4980G-4. Federal tax ez form Exception. Federal tax ez form   The Tax Relief and Health Care Act of 2006 allows employers to make larger HSA contributions for a nonhighly compensated employee than for a highly compensated employee. Federal tax ez form A highly compensated employee for 2014 is an employee who meets either of the following tests. Federal tax ez form The employee was a 5% owner at any time during the year or the preceding year. Federal tax ez form The employee received more than $115,000 in pay for the preceding year. Federal tax ez form You can choose to ignore test (2) if the employee was not also in the top 20% of employees when ranked by pay for the preceding year. Federal tax ez form Partnerships and S corporations. Federal tax ez form   Partners and 2% shareholders of an S corporation are not eligible for salary reduction (pre-tax) contributions to an HSA. Federal tax ez form Employer contributions to the HSA of a bona fide partner or 2% shareholder are treated as distributions or guaranteed payments as determined by the facts and circumstances. Federal tax ez form Cafeteria plans. Federal tax ez form   You may contribute to an employee's HSA using a cafeteria plan and your contributions are not subject to the statutory comparability rules. Federal tax ez form However, cafeteria plan nondiscrimination rules still apply. Federal tax ez form For example, contributions under a cafeteria plan to employee HSAs cannot be greater for higher-paid employees than they are for lower-paid employees. Federal tax ez form Contributions that favor lower-paid employees are not prohibited. Federal tax ez form Reporting requirements. Federal tax ez form   You must report your contributions to an employee's HSA in box 12 of Form W-2 using code “W. Federal tax ez form ” The trustee or custodian of the HSA, generally a bank or insurance company, reports distributions from the HSA using Form 1099-SA, Distributions From an HSA, Archer MSA, or Medicare Advantage MSA. Federal tax ez form Lodging on Your Business Premises You can exclude the value of lodging you furnish to an employee from the employee's wages if it meets the following tests. Federal tax ez form It is furnished on your business premises. Federal tax ez form It is furnished for your convenience. Federal tax ez form The employee must accept it as a condition of employment. Federal tax ez form Different tests may apply to lodging furnished by educational institutions. Federal tax ez form See section 119(d) of the Internal Revenue Code for details. Federal tax ez form The exclusion does not apply if you allow your employee to choose to receive additional pay instead of lodging. Federal tax ez form On your business premises. Federal tax ez form   For this exclusion, your business premises is generally your employee's place of work. Federal tax ez form For special rules that apply to lodging furnished in a camp located in a foreign country, see section 119(c) of the Internal Revenue Code and its regulations. Federal tax ez form For your convenience. Federal tax ez form   Whether or not you furnish lodging for your convenience as an employer depends on all the facts and circumstances. Federal tax ez form You furnish the lodging to your employee for your convenience if you do this for a substantial business reason other than to provide the employee with additional pay. Federal tax ez form This is true even if a law or an employment contract provides that the lodging is furnished as pay. Federal tax ez form However, a written statement that the lodging is furnished for your convenience is not sufficient. Federal tax ez form Condition of employment. Federal tax ez form   Lodging meets this test if you require your employees to accept the lodging because they need to live on your business premises to be able to properly perform their duties. Federal tax ez form Examples include employees who must be available at all times and employees who could not perform their required duties without being furnished the lodging. Federal tax ez form   It does not matter whether you must furnish the lodging as pay under the terms of an employment contract or a law fixing the terms of employment. Federal tax ez form Example. Federal tax ez form A hospital gives Joan, an employee of the hospital, the choice of living at the hospital free of charge or living elsewhere and receiving a cash allowance in addition to her regular salary. Federal tax ez form If Joan chooses to live at the hospital, the hospital cannot exclude the value of the lodging from her wages because she is not required to live at the hospital to properly perform the duties of her employment. Federal tax ez form S corporation shareholders. Federal tax ez form   For this exclusion, do not treat a 2% shareholder of an S corporation as an employee of the corporation. Federal tax ez form A 2% shareholder is someone who directly or indirectly owns (at any time during the year) more than 2% of the corporation's stock or stock with more than 2% of the voting power. Federal tax ez form Treat a 2% shareholder as you would a partner in a partnership for fringe benefit purposes, but do not treat the benefit as a reduction in distributions to the 2% shareholder. Federal tax ez form Meals This section discusses the exclusion rules that apply to de minimis meals and meals on your business premises. Federal tax ez form De Minimis Meals You can exclude any occasional meal or meal money you provide to an employee if it has so little value (taking into account how frequently you provide meals to your employees) that accounting for it would be unreasonable or administratively impracticable. Federal tax ez form The exclusion applies, for example, to the following items. Federal tax ez form Coffee, doughnuts, or soft drinks. Federal tax ez form Occasional meals or meal money provided to enable an employee to work overtime. Federal tax ez form However, the exclusion does not apply to meal money figured on the basis of hours worked. Federal tax ez form Occasional parties or picnics for employees and their guests. Federal tax ez form This exclusion also applies to meals you provide at an employer-operated eating facility for employees if the annual revenue from the facility equals or exceeds the direct costs of the facility. Federal tax ez form For this purpose, your revenue from providing a meal is considered equal to the facility's direct operating costs to provide that meal if its value can be excluded from an employee's wages as explained under Meals on Your Business Premises , later. Federal tax ez form If food or beverages you furnish to employees qualify as a de minimis benefit, you can deduct their full cost. Federal tax ez form The 50% limit on deductions for the cost of meals does not apply. Federal tax ez form The deduction limit on meals is discussed in chapter 2 of Publication 535. Federal tax ez form Employee. Federal tax ez form   For this exclusion, treat any recipient of a de minimis meal as
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The Federal Tax Ez Form

Federal tax ez form 1. Federal tax ez form   Filing and Paying Business Taxes Table of Contents Introduction Useful Items - You may want to see: Identification NumbersNew EIN. Federal tax ez form Employee. Federal tax ez form Other payee. Federal tax ez form Income TaxDo I Have To File an Income Tax Return? How Do I File? IRS e-file (Electronic Filing) When Is My Tax Return Due? How Do I Pay Income Tax? Self-Employment (SE) TaxHow to become insured under social security. Federal tax ez form Earning credits in 2013 and 2014. Federal tax ez form Employment Taxes Excise Taxes Information ReturnsWaiver of penalties. Federal tax ez form Penalties. Federal tax ez form Introduction This chapter explains the business taxes you may have to pay and the forms you may have to file. Federal tax ez form It also discusses taxpayer identification numbers. Federal tax ez form Table 1-1 lists the benefits of filing electronically. Federal tax ez form Table 1-2 lists the federal taxes you may have to pay, their due dates, and the forms you use to report them. Federal tax ez form Table 1-3 provides checklists that highlight the typical forms and schedules you may need to file if you ever go out of business. Federal tax ez form You may want to get Publication 509, Tax Calendars. Federal tax ez form It has tax calendars that tell you when to file returns and make tax payments. Federal tax ez form Useful Items - You may want to see: Publication 505 Tax Withholding and Estimated Tax Form (and Instructions) 1040 U. Federal tax ez form S. Federal tax ez form Individual Income Tax Return 1040-ES Estimated Tax for Individuals Sch C (Form 1040) Profit or Loss From Business Sch C-EZ (Form 1040) Net Profit From Business Sch SE (Form 1040) Self-Employment Tax See chapter 12 for information about getting publications and forms. Federal tax ez form Identification Numbers This section explains three types of taxpayer identification numbers, who needs them, when to use them, and how to get them. Federal tax ez form Social security number (SSN). Federal tax ez form   Generally, use your SSN as your taxpayer identification number. Federal tax ez form You must put this number on each of your individual income tax forms, such as Form 1040 and its schedules. Federal tax ez form   To apply for an SSN, use Form SS-5, Application for a Social Security Card. Federal tax ez form This form is available at Social Security Administration (SSA) offices or by calling 1-800-772-1213. Federal tax ez form It is also available from the SSA website at www. Federal tax ez form socialsecurity. Federal tax ez form gov. Federal tax ez form Individual taxpayer identification number (ITIN). Federal tax ez form   The IRS will issue an ITIN if you are a nonresident or resident alien and you do not have and are not eligible to get an SSN. Federal tax ez form In general, if you need to obtain an ITIN, you must attach Form W-7, Application for IRS Individual Taxpayer Identification Number, with your signed, original, completed tax return and any other required documentation and mail them to the following address. Federal tax ez form  Internal Revenue Service ITIN Operation P. Federal tax ez form O. Federal tax ez form Box 149342 Austin, TX 78714-9342 The exceptions are covered in detail in the instructions for Form W-7. Federal tax ez form If you must include another person's SSN on your return and that person does not have and cannot get an SSN, enter that person's ITIN. Federal tax ez form The application is also available in Spanish. Federal tax ez form The form is available at IRS. Federal tax ez form gov or you can call 1-800-829-3676 to order the form. Federal tax ez form    An ITIN is for tax use only. Federal tax ez form It does not entitle the holder to social security benefits or change the holder's employment or immigration status. Federal tax ez form Employer identification number (EIN). Federal tax ez form   You must also have an EIN to use as a taxpayer identification number if you do either of the following. Federal tax ez form Pay wages to one or more employees. Federal tax ez form File pension or excise tax returns. Federal tax ez form   If you must have an EIN, include it along with your SSN on your Schedule C or C-EZ. Federal tax ez form   You can apply for an EIN: Online by clicking on the Employer ID Numbers (EINs) link at www. Federal tax ez form irs. Federal tax ez form gov/businesses/small. Federal tax ez form The EIN is issued immediately once the application information is validated. Federal tax ez form By telephone at 1-800-829-4933. Federal tax ez form By mailing or faxing Form SS-4, Application for Employer Identification Number. Federal tax ez form New EIN. Federal tax ez form   You may need to get a new EIN if either the form or the ownership of your business changes. Federal tax ez form For more information, see Publication 1635, Understanding Your EIN. Federal tax ez form When you need identification numbers of other persons. Federal tax ez form   In operating your business, you will probably make certain payments you must report on information returns. Federal tax ez form These payments are discussed under Information Returns, later in this chapter. Federal tax ez form You must give the recipient of these payments (the payee) a statement showing the total amount paid during the year. Federal tax ez form You must include the payee's identification number and your identification number on the returns and statements. Federal tax ez form Employee. Federal tax ez form   If you have employees, you must get an SSN from each of them. Federal tax ez form Record the name and SSN of each employee exactly as they are shown on the employee's social security card. Federal tax ez form If the employee's name is not correct as shown on the card, the employee should request a new card from the SSA. Federal tax ez form This may occur if the employee's name was changed due to marriage or divorce. Federal tax ez form   Form W-4, Employee's Withholding Allowance Certificate, is completed by each employee so the correct federal income tax can be withheld from their pay. Federal tax ez form   If your employee does not have an SSN, he or she should file Form SS-5 with the SSA. Federal tax ez form Other payee. Federal tax ez form   If you make payments to someone who is not your employee and you must report the payments on an information return, get that person's SSN. Federal tax ez form If you must report payments to an organization, such as a corporation or partnership, you must get its EIN. Federal tax ez form   To get the payee's SSN or EIN, use Form W-9, Request for Taxpayer Identification Number and Certification. Federal tax ez form   A payee who does not provide you with an identification number may be subject to backup withholding. Federal tax ez form For information on backup withholding, see the Form W-9 instructions and the General Instructions for Certain Information Returns. Federal tax ez form Income Tax This part explains whether you have to file an income tax return and when you file it. Federal tax ez form It also explains how you pay the tax. Federal tax ez form Do I Have To File an Income Tax Return? You have to file an income tax return for 2013 if your net earnings from self-employment were $400 or more. Federal tax ez form If your net earnings from self-employment were less than $400, you still have to file an income tax return if you meet any other filing requirement listed in the Form 1040 instructions. Federal tax ez form How Do I File? File your income tax return on Form 1040 and attach Schedule C or Schedule C-EZ. Federal tax ez form Enter the net profit or loss from Schedule C or Schedule C-EZ on page 1 of Form 1040. Federal tax ez form Use Schedule C to figure your net profit or loss from your business. Federal tax ez form If you operated more than one business as a sole proprietorship, you must attach a separate Schedule C for each business. Federal tax ez form You can use the simpler Schedule C-EZ if you operated only one business as a sole proprietorship, you did not have a net loss, and you meet the other requirements listed in Part I of the schedule. Federal tax ez form IRS e-file (Electronic Filing) Please click here for the text description of the image. Federal tax ez form E-file logo You may be able to file your tax returns electronically using an IRS e-file option. Federal tax ez form Table 1-1 lists the benefits of IRS e-file. Federal tax ez form IRS e-file uses automation to replace most of the manual steps needed to process paper returns. Federal tax ez form As a result, the processing of e-file returns is faster and more accurate than the processing of paper returns. Federal tax ez form As with a paper return, you are responsible for making sure your return contains accurate information and is filed on time. Federal tax ez form Using e-file does not affect your chances of an IRS examination of your return. Federal tax ez form You can file most commonly used business forms using IRS e-file. Federal tax ez form For more information, visit IRS. Federal tax ez form gov. Federal tax ez form Electronic signatures. Federal tax ez form   Paperless filing is easier than you think and it's available to most taxpayers who file electronically—including those first-time filers who were 16 or older at the end of 2013. Federal tax ez form If you file electronically using tax preparation software or a tax professional, you will participate in the Self-Select PIN (personal identification number) program. Federal tax ez form If you are married filing jointly, you and your spouse will each need to create a PIN and enter these PINs as your electronic signatures. Federal tax ez form    To create a PIN, you must know your adjusted gross income (AGI) from your originally filed 2012 income tax return (not from an amended return, Form 1040X, or any math error notice from the IRS). Federal tax ez form You will also need to provide your date of birth (DOB). Federal tax ez form Make sure your DOB is accurate and matches the information on record with the Social Security Administration before you e-file. Federal tax ez form To do this, check your annual Social Security Statement. Federal tax ez form   With a Self-Select PIN, there is nothing to sign and nothing to mail—not even your Forms W-2. Federal tax ez form For more details on the Self-Select PIN program, visit IRS. Federal tax ez form gov. Federal tax ez form State returns. Federal tax ez form   In most states, you can file an electronic state return simultaneously with your federal return. Federal tax ez form For more information, check with your local IRS office, state tax agency, tax professional, or IRS. Federal tax ez form gov. Federal tax ez form Refunds. Federal tax ez form   You can have your refund check mailed to you, or you can have your refund deposited directly to your checking or savings account. Federal tax ez form   With e-file, your refund will be issued in half the time as when filing on paper. Federal tax ez form Most refunds are issued within 3 weeks. Federal tax ez form If you choose Direct Deposit, you can receive your refund in as few as 10 days. Federal tax ez form Offset against debts. Federal tax ez form   As with a paper return, you may not get all of your refund if you owe certain past-due amounts, such as federal tax, state tax, a student loan, or child support. Federal tax ez form You will be notified if the refund you claimed has been offset against your debts. Federal tax ez form Refund inquiries. Federal tax ez form   You can check the status of your refund if it has been at least 24 hours (4 weeks if you mailed a paper return) from the date you filed your return. Federal tax ez form Be sure to have a copy of your tax return available because you will need to know the filing status, the first social security number shown on the return, and the exact whole-dollar amount of the refund. Federal tax ez form To check on your refund, do one of the following. Federal tax ez form Go to IRS. Federal tax ez form gov and click on Where's My Refund. Federal tax ez form Call 1-800-829-4477 for automated refund information, and follow the recorded instructions. Federal tax ez form Call 1-800-829-1954 during the hours shown in your form instructions. Federal tax ez form Balance due. Federal tax ez form   If you owe tax, you must pay it by April 15, 2014, to avoid late-payment penalties and interest. Federal tax ez form You can make your payment electronically by scheduling an electronic funds withdrawal from your checking or savings account or by credit card. Federal tax ez form Using an Authorized IRS e-file Provider Many tax professionals can electronically file paperless returns for their clients. Federal tax ez form You have two options. Federal tax ez form You can prepare your return, take it to an authorized IRS e-file provider, and have the provider transmit it electronically to the IRS. Federal tax ez form You can have an authorized IRS e-file provider prepare your return and transmit it for you electronically. Federal tax ez form You will be asked to complete Form 8879, IRS e-file Signature Authorization, to authorize the provider to enter your self-selected PIN on your return. Federal tax ez form Depending on the provider and the specific services requested, a fee may be charged. Federal tax ez form To find an authorized IRS e-file provider near you, go to IRS. Federal tax ez form gov or look for an “Authorized IRS e-file Provider” sign. Federal tax ez form Using Your Personal Computer A computer with Internet access is all you need to file your tax return using IRS e-file. Federal tax ez form When you use your personal computer, you can e-file your return from your home any time of the day or night. Federal tax ez form Sign your return electronically using a self-selected PIN to complete the process. Federal tax ez form There is no signature form to submit or Forms W-2 to send in. Federal tax ez form Free Internet filing options. Federal tax ez form   More taxpayers can now prepare and e-file their individual income tax returns free using commercial tax preparation software accessible through IRS. Federal tax ez form gov or www. Federal tax ez form usa. Federal tax ez form gov. Federal tax ez form The IRS is partnering with the tax software industry to offer free preparation and filing services to a significant number of taxpayers. Federal tax ez form Security and privacy certificate programs will assure tax data is safe and secure. Federal tax ez form To see if you qualify for these services, visit the Return Preparation and Filing Options page at IRS. Federal tax ez form gov. Federal tax ez form   If you cannot use the free services, you can buy tax preparation software at various electronics stores or computer and office supply stores. Federal tax ez form You can also download software from the Internet or prepare and file your return completely online by using tax preparation software available on the Internet. Federal tax ez form Filing Through Employers and Financial Institutions Some businesses offer free e-file to their employees, members, or customers. Federal tax ez form Others offer it for a fee. Federal tax ez form Ask your employer or financial institution if they offer IRS e-file as an employee, member, or customer benefit. Federal tax ez form Free Help With Your Return Free help in preparing your return is available nationwide from IRS-trained volunteers. Federal tax ez form The Volunteer Income Tax Assistance (VITA) program is designed to help low-income taxpayers, and the Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 or older with their tax returns. Federal tax ez form Some locations offer free electronic filing. Federal tax ez form Table 1-1. Federal tax ez form Benefits of IRS e-file Accuracy • Your chance of getting an error notice from the IRS is significantly reduced. Federal tax ez form Security • Your privacy and security are assured. Federal tax ez form Electronic signatures • Create your own personal identification number (PIN) and file a completely paperless return through your tax preparation software or tax professional. Federal tax ez form There is nothing to mail. Federal tax ez form Proof of acceptance • You receive an electronic acknowledgment within 48 hours that the IRS has accepted your return for processing. Federal tax ez form Fast refunds • You get your refund faster with Direct Deposit—in as few as 10 days. Federal tax ez form Free Internet filing options • Use IRS. Federal tax ez form gov to access commercial tax preparation and e-file services available at no cost to eligible taxpayers. Federal tax ez form Electronic payment options • Convenient, safe, and secure electronic payment options are available. Federal tax ez form E-file and pay your taxes in a single step. Federal tax ez form Schedule an electronic funds withdrawal from your checking or savings account (up to and including April 15, 2014) or pay by credit card. Federal tax ez form Federal/State filing • Prepare and file your federal and state tax returns together and double the benefits you get from e-file. Federal tax ez form When Is My Tax Return Due? Form 1040 for calendar year 2013 is due by April 15, 2014. Federal tax ez form If you use a fiscal year (explained in chapter 2), your return is due by the 15th day of the 4th month after the end of your fiscal year. Federal tax ez form If you file late, you may have to pay penalties and interest. Federal tax ez form If you cannot file your return on time, use Form 4868, Application for Automatic Extension of Time To File U. Federal tax ez form S. Federal tax ez form Individual Income Tax Return, to request an automatic 6-month extension. Federal tax ez form For calendar year taxpayers, this will extend the tax filing due date until October 15. Federal tax ez form Filing an extension does not extend the time to pay your taxes, only the time to file the tax return. Federal tax ez form How Do I Pay Income Tax? Federal income tax is a pay-as-you-go tax. Federal tax ez form You must pay it as you earn or receive income during the year. Federal tax ez form An employee usually has income tax withheld from his or her pay. Federal tax ez form If you do not pay your tax through withholding, or do not pay enough tax that way, you might have to pay estimated tax. Federal tax ez form You generally have to make estimated tax payments if you expect to owe taxes, including self-employment tax (discussed later), of $1,000 or more when you file your return. Federal tax ez form Use Form 1040-ES to figure and pay the tax. Federal tax ez form If you do not have to make estimated tax payments, you can pay any tax due when you file your return. Federal tax ez form For more information on estimated tax, see Publication 505, Tax Withholding and Estimated Tax. Federal tax ez form What are my payment options?   You can pay your estimated tax electronically using various options. Federal tax ez form If you pay electronically, there is no need to mail in Form 1040-ES payment vouchers. Federal tax ez form These options include: Paying electronically through the Electronic Federal Tax Payment System (EFTPS). Federal tax ez form Paying by authorizing an electronic funds withdrawal when you file Form 1040 electronically. Federal tax ez form Paying by credit or debit card over the phone or by Internet. Federal tax ez form Other options include crediting an overpayment from your 2013 return to your 2014 estimated tax, or mailing a check or money order with a Form 1040-ES payment voucher. Federal tax ez form EFTPS    To enroll in EFTPS, go to www. Federal tax ez form eftps. Federal tax ez form gov or call 1-800-555-4477. Federal tax ez form When you request a new EIN and you will have a tax obligation, you are automatically enrolled in EFTPS. Federal tax ez form Benefits of EFTPS: The chance of an error in making your payments is reduced. Federal tax ez form You receive immediate confirmation of every transaction. Federal tax ez form Penalty for underpayment of tax. Federal tax ez form   If you did not pay enough income tax and self-employment tax for 2013 by withholding or by making estimated tax payments, you may have to pay a penalty on the amount not paid. Federal tax ez form The IRS will figure the penalty for you and send you a bill. Federal tax ez form Or you can use Form 2210, Underpayment of Estimated Tax by Individuals, Estates, and Trusts, to see if you have to pay a penalty and to figure the penalty amount. Federal tax ez form For more information, see Publication 505. Federal tax ez form Self-Employment (SE) Tax Self-employment tax (SE tax) is a social security and Medicare tax primarily for individuals who work for themselves. Federal tax ez form It is similar to the social security and Medicare taxes withheld from the pay of most wage earners. Federal tax ez form If you earned income as a statutory employee, you do not pay SE tax on that income. Federal tax ez form Social security coverage. Federal tax ez form   Social security benefits are available to self-employed persons just as they are to wage earners. Federal tax ez form Your payments of SE tax contribute to your coverage under the social security system. Federal tax ez form Social security coverage provides you with retirement benefits, disability benefits, survivor benefits, and hospital insurance (Medicare) benefits. Federal tax ez form By not reporting all of your self-employment income, you could cause your social security benefits to be lower when you retire. Federal tax ez form How to become insured under social security. Federal tax ez form   You must be insured under the social security system before you begin receiving social security benefits. Federal tax ez form You are insured if you have the required number of credits (also called quarters of coverage), discussed next. Federal tax ez form Earning credits in 2013 and 2014. Federal tax ez form   For 2013, you received one credit, up to a maximum of four credits, for each $1,160 ($1,200 for 2014) of income subject to social security taxes. Federal tax ez form Therefore, for 2013, if you had income (self-employment and wages) of $4,640 that was subject to social security taxes, you receive four credits ($4,640 ÷ $1,160). Federal tax ez form   For an explanation of the number of credits you must have to be insured and the benefits available to you and your family under the social security program, consult your nearest Social Security Administration (SSA) office. Federal tax ez form    Making false statements to get or to increase social security benefits may subject you to penalties. Federal tax ez form The Social Security Administration (SSA) time limit for posting self-employment income. Federal tax ez form   Generally, the SSA will give you credit only for self-employment income reported on a tax return filed within 3 years, 3 months, and 15 days after the tax year you earned the income. Federal tax ez form If you file your tax return or report a change in your self-employment income after this time limit, the SSA may change its records, but only to remove or reduce the amount. Federal tax ez form The SSA will not change its records to increase your self-employment income. Federal tax ez form Who must pay self-employment tax. Federal tax ez form   You must pay SE tax and file Schedule SE (Form 1040) if either of the following applies. Federal tax ez form Your net earnings from self-employment (excluding church employee income) were $400 or more. Federal tax ez form You had church employee income of $108. Federal tax ez form 28 or more. Federal tax ez form The SE tax rules apply no matter how old you are and even if you are already receiving social security or Medicare benefits. Federal tax ez form SE tax rate. Federal tax ez form   For 2013, the SE tax rate on net earnings is 15. Federal tax ez form 3% (12. Federal tax ez form 4% social security tax plus 2. Federal tax ez form 9% Medicare tax). Federal tax ez form Maximum earnings subject to SE tax. Federal tax ez form   Only the first $113,700 of your combined wages, tips, and net earnings in 2013 is subject to any combination of the 12. Federal tax ez form 4% social security part of SE tax, social security tax, or railroad retirement (tier 1) tax. Federal tax ez form   All your combined wages, tips, and net earnings in 2013 are subject to any combination of the 2. Federal tax ez form 9% Medicare part of SE tax, social security tax, or railroad retirement (tier 1) tax. Federal tax ez form   If wages and tips you receive as an employee are subject to either social security or railroad retirement (tier 1) tax, or both, and total at least $113,700, do not pay the 12. Federal tax ez form 4% social security part of the SE tax on any of your net earnings. Federal tax ez form However, you must pay the 2. Federal tax ez form 9% Medicare part of the SE tax on all your net earnings. Federal tax ez form Deduct one-half of your SE tax as an adjustment to income on line 27 of Form 1040. Federal tax ez form   More information. Federal tax ez form   For information on methods of calculating SE tax, see Chapter 10, Self-Employment Tax. Federal tax ez form Table 1-2. Federal tax ez form Which Forms Must I File? IF you are liable for: THEN use Form: DUE by:1 Income tax 1040 and Schedule C or C-EZ2 15th day of 4th month after end of  tax year. Federal tax ez form Self-employment tax Schedule SE File with Form 1040. Federal tax ez form Estimated tax 1040-ES 15th day of 4th, 6th, and 9th months of tax year, and 15th day of 1st month after the end of tax year. Federal tax ez form Social security and Medicare taxes and income tax withholding 941 or 944 April 30, July 31, October 31, and January 313. Federal tax ez form     See Publication 15. Federal tax ez form Providing information on social security and Medicare taxes and income tax withholding W-2 (to employee)  W-2 and W-3 (to the Social Security Administration) January 313. Federal tax ez form   Last day of February (March 31 if filing electronically)3. Federal tax ez form Federal unemployment (FUTA) tax 940 January 313. Federal tax ez form     April 30, July 31, October 31, and January 31, but only if the liability for unpaid tax is more than $500. Federal tax ez form Filing information returns for payments to nonemployees and transactions with other persons See Information Returns Forms 1099 – to the recipient by January 31 and to the IRS by February 28 (March 31 if filing electronically). Federal tax ez form     Other forms – see the General Instructions for Certain Information Returns. Federal tax ez form Excise tax See Excise Taxes See the instructions to the forms. Federal tax ez form 1 If a due date falls on a Saturday, Sunday, or legal holiday, file by the next day that is not a Saturday, Sunday, or legal holiday. Federal tax ez form For more information, see Publication 509, Tax Calendars. Federal tax ez form 2 File a separate schedule for each business. Federal tax ez form 3 See the form instructions if you go out of business, change the form of your business, or stop paying wages. Federal tax ez form     Employment Taxes If you have employees, you will need to file forms to report employment taxes. Federal tax ez form Employment taxes include the following items. Federal tax ez form Social security and Medicare taxes. Federal tax ez form Federal income tax withholding. Federal tax ez form Federal unemployment (FUTA) tax. Federal tax ez form For more information, see Publication 15 (Circular E), Employer's Tax Guide. Federal tax ez form That publication explains your tax responsibilities as an employer. Federal tax ez form To help you determine whether the people working for you are your employees, see Publication 15-A, Employer's Supplemental Tax Guide. Federal tax ez form That publication has information to help you determine whether an individual is an independent contractor or an employee. Federal tax ez form If you incorrectly classify an employee as an independent contractor, you may be held liable for employment taxes for that worker plus a penalty. Federal tax ez form An independent contractor is someone who is self-employed. Federal tax ez form You do not generally have to withhold or pay any taxes on payments made to an independent contractor. Federal tax ez form Excise Taxes This section identifies some of the excise taxes you may have to pay and the forms you have to file if you do any of the following. Federal tax ez form Manufacture or sell certain products. Federal tax ez form Operate certain kinds of businesses. Federal tax ez form Use various kinds of equipment, facilities, or products. Federal tax ez form Receive payment for certain services. Federal tax ez form For more information on excise taxes, see Publication 510, Excise Taxes. Federal tax ez form Form 720. Federal tax ez form   The federal excise taxes reported on Form 720, Quarterly Federal Excise Tax Return, consist of several broad categories of taxes, including the following. Federal tax ez form Environmental taxes on the sale or use of ozone-depleting chemicals and imported products containing or manufactured with these chemicals. Federal tax ez form Communications and air transportation taxes. Federal tax ez form Fuel taxes. Federal tax ez form Tax on the first retail sale of heavy trucks, trailers, and tractors. Federal tax ez form Manufacturers taxes on the sale or use of a variety of different articles. Federal tax ez form Tax on indoor tanning services. Federal tax ez form Form 2290. Federal tax ez form   There is a federal excise tax on the use of certain trucks, truck tractors, and buses on public highways. Federal tax ez form The tax applies to vehicles having a taxable gross weight of 55,000 pounds or more. Federal tax ez form Report the tax on Form 2290, Heavy Highway Vehicle Use Tax Return. Federal tax ez form For more information, see the Instructions for Form 2290. Federal tax ez form Depositing excise taxes. Federal tax ez form   If you have to file a quarterly excise tax return on Form 720, you may have to deposit your excise taxes before the return is due. Federal tax ez form For details on depositing excise taxes, see the Instructions for Form 720. Federal tax ez form Information Returns If you make or receive payments in your business, you may have to report them to the IRS on information returns. Federal tax ez form The IRS compares the payments shown on the information returns with each person's income tax return to see if the payments were included in income. Federal tax ez form You must give a copy of each information return you are required to file to the recipient or payer. Federal tax ez form In addition to the forms described below, you may have to use other returns to report certain kinds of payments or transactions. Federal tax ez form For more details on information returns and when you have to file them, see the General Instructions for Certain Information Returns. Federal tax ez form Form 1099-MISC. Federal tax ez form   Use Form 1099-MISC, Miscellaneous Income, to report certain payments you make in your business. Federal tax ez form These payments include the following items. Federal tax ez form Payments of $600 or more for services performed for your business by people not treated as your employees, such as fees to subcontractors, attorneys, accountants, or directors. Federal tax ez form Rent payments of $600 or more, other than rents paid to real estate agents. Federal tax ez form Prizes and awards of $600 or more that are not for services, such as winnings on TV or radio shows. Federal tax ez form Royalty payments of $10 or more. Federal tax ez form Payments to certain crew members by operators of fishing boats. Federal tax ez form You also use Form 1099-MISC to report your sales of $5,000 or more of consumer goods to a person for resale anywhere other than in a permanent retail establishment. Federal tax ez form Form W-2. Federal tax ez form   You must file Form W-2, Wage and Tax Statement, to report payments to your employees, such as wages, tips, and other compensation, withheld income, social security, and Medicare taxes. Federal tax ez form You can file Form W-2 online. Federal tax ez form For more information about Form W-2, see the General Instructions for Forms W-2 and W-3. Federal tax ez form Penalties. Federal tax ez form   The law provides for the following penalties if you do not file Form 1099-MISC or Form W-2 or do not correctly report the information. Federal tax ez form For more information, see the General Instructions for Certain Information Returns. Federal tax ez form Failure to file information returns. Federal tax ez form This penalty applies if you do not file information returns by the due date, do not include all required information, or report incorrect information. Federal tax ez form Failure to furnish correct payee statements. Federal tax ez form This penalty applies if you do not furnish a required statement to a payee by the required date, do not include all required information, or report incorrect information. Federal tax ez form Waiver of penalties. Federal tax ez form   These penalties will not apply if you can show that the failure was due to reasonable cause and not willful neglect. Federal tax ez form   In addition, there is no penalty for failure to include all required information, or for including incorrect information, on a de minimis (small) number of information returns if you correct the errors by August 1 of the year the returns are due. Federal tax ez form (A de minimis number of returns is the greater of 10 or ½ of 1% of the total number of returns you are required to file for the year. Federal tax ez form ) Form 8300. Federal tax ez form   You must file Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business, if you receive more than $10,000 in cash in one transaction, or two or more related business transactions. Federal tax ez form Cash includes U. Federal tax ez form S. Federal tax ez form and foreign coin and currency. Federal tax ez form It also includes certain monetary instruments such as cashier's and traveler's checks and money orders. Federal tax ez form Cash does not include a check drawn on an individual's personal account (personal check). Federal tax ez form For more information, see Publication 1544, Reporting Cash Payments of Over $10,000 (Received in a Trade or Business). Federal tax ez form Penalties. Federal tax ez form   There are civil and criminal penalties, including up to 5 years in prison, for not filing Form 8300, filing (or causing the filing of) a false or fraudulent Form 8300, or structuring a transaction to evade reporting requirements. Federal tax ez form Table 1-3. Federal tax ez form Going Out of Business Checklists (Note. Federal tax ez form The following checklists highlight the typical final forms and schedules you may need to file if you ever go out of business. Federal tax ez form For more information, see the instructions for the listed forms. Federal tax ez form ) IF you are liable for:   THEN you may need to: Income tax □ File Schedule C or C-EZ with your Form 1040 for the year in which you go out of business. Federal tax ez form   □ File Form 4797 with your Form 1040 for each year in which you sell or exchange property used in your business or in which the business use of certain section 179 or listed property drops to 50% or less. Federal tax ez form   □ File Form 8594 with your Form 1040 if you sold your business. Federal tax ez form Self-employment tax □ File Schedule SE with your Form 1040 for the year in which you go out of business. Federal tax ez form Employment taxes □ File Form 941 (or Form 944) for the calendar quarter in which you make final wage payments. Federal tax ez form Note. Federal tax ez form Do not forget to check the box and enter the date final wages were paid on line 15 of Form 941 or line 14 of Form 944. Federal tax ez form   □ File Form 940 for the calendar year in which final wages were paid. Federal tax ez form Note. Federal tax ez form Do not forget to check box d, Final: Business closed or stopped paying wages, under Type of Return. Federal tax ez form Information returns □ Provide Forms W-2 to your employees for the calendar year in which you make final wage payments. Federal tax ez form Note. Federal tax ez form These forms are generally due by the due date of your final Form 941 or Form 944. Federal tax ez form   □ File Form W-3 to file Forms W-2. Federal tax ez form Note. Federal tax ez form These forms are generally due within 1 month after the due date of your final Form 941 or Form 944. Federal tax ez form   □ Provide Forms 1099-MISC to each person to whom you have paid at least $600 for services (including parts and materials) during the calendar year in which you go out of business. Federal tax ez form   □ File Form 1096 to file Forms 1099-MISC. Federal tax ez form Prev  Up  Next   Home   More Online Publications