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File tax extension free 35. File tax extension free   Créditos Tributarios por Estudios Table of Contents Introduction Useful Items - You may want to see: ¿Quién Puede Reclamar un Crédito Tributario por Estudios? Gastos de Estudios CalificadosNo se Permite Beneficio Doble Ajustes a los Gastos de Estudios Calificados Introduction Para 2013, hay dos créditos tributarios para personas que paguen gastos de enseñanza superior (postsecundaria). File tax extension free Éstos son: El crédito tributario de oportunidad para los estadounidenses y El crédito vitalicio por aprendizaje. File tax extension free Este capítulo explica en términos generales estos créditos tributarios por estudios. File tax extension free Para obtener la información detallada que necesitará para reclamar cualquiera de los créditos, y para ver ejemplos aclaratorios, consulte los capítulos 2 y 3 de la Publicación 970, Tax Benefits for Education (Beneficios tributarios por estudios), en inglés. File tax extension free ¿Puede reclamar más de un crédito por estudios este año?   Puede escoger sólo uno de los créditos por cada estudiante por cada año. File tax extension free Por ejemplo, si reclama el crédito tributario de oportunidad para los estadounidenses por un hijo en su declaración de impuestos de 2013, no puede tomar el crédito vitalicio por aprendizaje para 2013 si se trata del mismo hijo. File tax extension free   Si reúne los requisitos del crédito tributario de oportunidad para los estadounidenses y también del crédito vitalicio por aprendizaje por el mismo estudiante durante el mismo año, puede reclamar sólo uno de los dos créditos, pero no ambos. File tax extension free   Si paga gastos de estudios calificados por más de un estudiante durante el mismo año, puede reclamar el crédito tributario de oportunidad para los estadounidenses y el crédito vitalicio por aprendizaje basado por cada estudiante y por año. File tax extension free Esto quiere decir que, por ejemplo, puede reclamar el crédito tributario de oportunidad para los estadounidenses por un estudiante y el crédito vitalicio por aprendizaje por otro estudiante en el mismo año. File tax extension free    Tabla 35-1. File tax extension free Comparación de los Créditos Tributarios por Estudios Precaución: Puede reclamar el crédito tributario de oportunidad para los estadounidenses y el crédito vitalicio por aprendizaje en la misma declaración —pero no por el mismo estudiante. File tax extension free   Crédito tributario de oportunidad para los estadounidenses Crédito vitalicio por aprendizaje Crédito máximo Un crédito de hasta $2,500 por cada estudiante que reúne los requisitos Un crédito de hasta $2,000 por cada declaración Límite a los ingresos brutos ajustados modificados (MAGI, por sus siglas en inglés) $180,000 si es casado que presenta una declaración conjunta;  $90,000 si es soltero, cabeza de familia o viudo que reúne los requisitos $127,000 si es casado que presenta una declaración conjunta;  $63,000 si es soltero, cabeza de familia o viudo que reúne los requisitos Reembolsable o no reembolsable El 40% del crédito podría ser reembolsable El monto del crédito está limitado al monto de impuestos que tiene que pagar sobre sus ingresos sujetos a impuestos Número de años de enseñanza postsecundaria Disponible SÓLO si el estudiante no ha completado los 4 primeros años de enseñanza postsecundaria antes de 2013 Disponible para todo año de enseñanza postsecundaria y cursos para adquirir o mejorar aptitudes en el trabajo Número de años tributarios por los cuales se ofrece el crédito Disponible SÓLO por 4 años por cada estudiante que reúna los requisitos (incluido todo año en el que se haya reclamado el crédito Hope) Disponible por un número ilimitado de años Tipo de programa académico requerido El estudiante tiene que estar cursando un programa de estudios con miras a sacar una licenciatura u otro título o certificado académico acreditado El estudiante no necesita estar cursando un programa de estudios con miras a sacar una licenciatura u otro título o certificado académico acreditado Número de cursos El estudiante tiene que estar matriculado a medio tiempo como mínimo durante al menos un período académico que haya comenzado en el transcurso del año tributario Disponible para uno o más cursos Fallo condenatorio por delito grave de drogas Si para el fin de 2013 no consta fallo condenatorio alguno al estudiante por delito grave de poseer o distribuir drogas Fallos condenatorios por delito grave de drogas no hacen que el estudiante no reúna los requisitos Gastos que reúnen los requisitos Costos de matrícula y gastos de inscripción obligatorios y todos los materiales relacionados con un curso que necesita el estudiante, tanto si son comprados o no en la institución como condición de inscripción o asistencia Costos de matrícula y gastos de inscripción obligatorios (incluidas cantidades que tienen que pagarse a la institución por textos, materiales y equipo relacionados con un curso) Pagos por períodos académicos Pagos efectuados en 2013 para períodos académicos que se iniciaron en 2013 y en los tres primeros meses de 2014 Diferencias entre el crédito tributario de oportunidad para los estadounidenses y el crédito vitalicio por aprendizaje. File tax extension free   Existen varias diferencias entre estos dos créditos. File tax extension free Estas diferencias se resumen en la Tabla 35-1, más adelante. File tax extension free Useful Items - You may want to see: Publicación 970 Tax Benefits for Education (Beneficios tributarios por estudios), en inglés Formulario (e Instrucciones) 8863 Education Credits (American Opportunity and Lifetime Learning Credits) (Créditos tributarios por estudios (crédito tributario de oportunidad para los estadounidenses y crédito vitalicio por aprendizaje)), en inglés ¿Quién Puede Reclamar un Crédito Tributario por Estudios? Tal vez pueda reclamar un crédito tributario por estudios si usted, su cónyuge o un dependiente reclamado en su declaración de impuestos era estudiante matriculado en, o asistió a, una institución de enseñanza superior que reúne los requisitos. File tax extension free Los créditos se basan en la cantidad de gastos de estudios calificados que hayan sido pagados a nombre del estudiante en 2013 por períodos académicos que comenzaron en 2013 y en los primeros tres meses de 2014. File tax extension free Por ejemplo, si pagó $1,500 en diciembre de 2013 por una matrícula calificada por el semestre de primavera de 2014 que comience en enero de 2014, tal vez pueda usar los $1,500 en el cálculo del (de los) crédito(s) para 2013. File tax extension free Período académico. File tax extension free   Un período académico abarca un semestre, trimestre, cuatrimestre u otro período de estudios (como un curso de escuela de verano) según lo determine de manera razonable una institución de enseñanza superior. File tax extension free En el caso de una institución de enseñanza superior que no tenga períodos académicos sino horas de crédito u horas de reloj, cada período de pago se puede considerar período académico. File tax extension free Institución de enseñanza superior que reúne los requisitos. File tax extension free   Una “institución de enseñanza superior que reúne los requisitos” es todo colegio universitario, universidad, escuela de enseñanza técnica u otra institución de enseñanza superior con derecho a participar en un programa de asistencia financiera al estudiante administrado por el Departamento de Educación de los Estados Unidos. File tax extension free Esta clase de institución abarca prácticamente todas las instituciones acreditadas de enseñanza superior públicas, sin fines de lucro y las privadas con fines de lucro. File tax extension free La institución de enseñanza superior debe poder indicarle si reúne los requisitos. File tax extension free   Determinadas instituciones de enseñanza superior ubicadas en el extranjero participan también en los programas de Federal Student Aid (Asistencia Financiera al Estudiante o FSA, por sus siglas en inglés) del Departamento de Educación de los Estados Unidos. File tax extension free ¿Quién puede reclamar los gastos de un dependiente?   Si una persona reclama al estudiante como dependiente y se permite una deducción por aquel estudiante en la declaración de dicha persona, se considera que esa persona ha pagado todos los gastos de estudios calificados del estudiante. File tax extension free Por lo tanto, sólo esa persona puede reclamar un crédito por estudios en nombre del estudiante. File tax extension free Si un estudiante no es reclamado como dependiente en la declaración de impuestos de otra persona, sólo el estudiante puede reclamar un crédito. File tax extension free Gastos pagados por un tercero. File tax extension free   Los gastos de estudios calificados pagados en nombre del estudiante por una persona que no sea el estudiante (como un pariente) se tratan como si hubiesen sido pagados por dicho estudiante. File tax extension free Sin embargo, los gastos de estudios calificados pagados (o que se tratan como si hubiesen sido pagados) por un estudiante que es reclamado como dependiente en su declaración de impuestos, se tratan como si hubiesen sido pagados por usted. File tax extension free Por lo tanto, a usted se le trata como si hubiese pagado los gastos que fueron pagados por el tercero. File tax extension free Para más información y para ver un ejemplo, vea Who can Claim a Dependent's Expenses (¿Quién puede reclamar los gastos de un dependiente?) en el capítulo 2 ó 3 de la Publicación 970, en inglés. File tax extension free ¿Quién no puede reclamar el crédito?   No puede tomar un crédito tributario por estudios si alguna de las siguientes situaciones le corresponde: Usted es reclamado como dependiente en la declaración de impuestos de otra persona, como la de sus padres. File tax extension free Su estado civil para efectos de la declaración es casado que presenta una declaración por separado. File tax extension free Usted (o su cónyuge) fue extranjero no residente durante cualquier parte de 2013 y no optó por ser tratado como extranjero residente para fines tributarios. File tax extension free Sus ingresos brutos ajustados modificados (MAGI, por sus siglas en inglés) es uno de los siguientes: Crédito tributario de oportunidad para los estadounidenses: $180,000 o más si es casado que presenta la declaración conjunta, o $90,000 o más si es soltero, cabeza de familia o viudo que reúne los requisitos. File tax extension free Crédito vitalicio por aprendizaje: $127,000 o más si es casado que presenta la declaración conjunta, o $63,000 o más si es soltero, cabeza de familia o viudo que reúne los requisitos. File tax extension free   Por lo general, su MAGI es la cantidad de la línea 38 de su Formulario 1040 o la línea 22 del Formulario 1040A. File tax extension free No obstante, si presenta el Formulario 2555, 2555-EZ o 4563 o si excluye ingresos de fuentes dentro de Puerto Rico, sume la cantidad excluida del ingreso a la cantidad en la línea 38 de su Formulario 1040 o de la línea 22 del Formulario 1040A. File tax extension free Para más detalles, vea la Publicación 970, en inglés. File tax extension free   La Figura 35-A podría ser útil al momento de determinar si puede reclamar un crédito tributario por estudios en su declaración de impuestos. File tax extension free    El crédito tributario de oportunidad para los estadounidenses siempre será mayor que o igual al crédito vitalicio por aprendizaje para todo estudiante que reúna los requisitos para ambos créditos. File tax extension free Sin embargo, si no se cumplen todos los requisitos correspondientes al crédito tributario de oportunidad para los estadounidenses enumerados anteriormente en la Tabla 35-1, usted no puede reclamar dicho crédito en base de este estudiante. File tax extension free En lugar de ello, quizás podría reclamar el crédito vitalicio por aprendizaje por una parte o la totalidad de los gastos de estudios calificados de dicho estudiante. File tax extension free Para obtener información sobre otros beneficios relacionados con los estudios, vea la Publicación 970, en inglés. File tax extension free Gastos de Estudios Calificados Generalmente, se considera que los gastos de estudios calificados son cantidades pagadas en 2013 por matrícula y gastos escolares obligatorios para matricularse en un curso o asistir al mismo en una institución de enseñanza superior. File tax extension free No importa si los gastos fueron pagados en efectivo, por cheque, con tarjeta de crédito o débito, o con préstamos. File tax extension free Sólo reúnen los requisitos ciertos gastos por libros, materiales y equipos relacionados con un curso: Crédito tributario de oportunidad para los estadounidenses: Los gastos de estudios calificados abarcan cantidades gastadas en libros, materiales y equipos necesarios para cursos de un programa de estudios, ya sea o no que se compren estos materiales en la institución de enseñanza como condición para matricularse o asistir a tales cursos. File tax extension free Crédito vitalicio por aprendizaje: Los gastos de estudios calificados abarcan cantidades gastadas en libros, materiales y equipos sólo si se tienen que pagar a la institución como condición para matricularse o asistir a cursos. File tax extension free Los gastos de estudios calificados incluyen cuotas no académicas, tales como cuotas por actividades estudiantiles, cuotas por actividades deportivas u otros gastos no relacionados con el curso de instrucción, sólo si la cuota tiene que pagarse a la institución como condición de inscripción o asistencia. File tax extension free Sin embargo, las cuotas por gastos personales (descritos a continuación) nunca se consideran gastos de estudios calificados. File tax extension free Los gastos de estudios calificados no incluyen cantidades pagadas por: Gastos personales. File tax extension free Éstos incluyen gastos de alojamiento y comida, seguros, gastos médicos (incluyendo las cuotas de servicios de salud para estudiantes), transporte y otros gastos personales similares o de familia. File tax extension free Todo curso u otros estudios que se relacionen con deportes, juegos o pasatiempos o todo curso sin crédito académico, a menos que dicho curso o dichos estudios formen parte del programa de estudios para obtener un título del estudiante o (sólo en el caso del crédito vitalicio por aprendizaje) ayude al estudiante a adquirir o mejorar aptitudes en el trabajo. File tax extension free Usted debe recibir el Formulario 1098-T, Tuition Statement (Información sobre el pago de matrícula), en inglés, de la institución que informa cualesquiera de los pagos recibidos en 2013 (encasillado 1) o las cantidades facturadas en 2013 (encasillado 2). File tax extension free Sin embargo, la cantidad pagada (o tratada como pagada) puede ser distinta a la cantidad en el encasillado 1 ó 2 del Formulario 1098-T. File tax extension free Al completar el Formulario 8863, en inglés, utilice sólo las cantidades que realmente pagó (además de cualquier otra cantidad tratada como pagada) en 2013, reducida cuando sea necesario, como se describe en Ajustes a los Gastos de Estudios Calificados , más adelante. File tax extension free Los gastos de estudios calificados pagados en nombre del estudiante por una persona que no sea el estudiante (como un pariente) se tratan como si hubiesen sido pagados por dicho estudiante. File tax extension free Los gastos de estudios calificados pagados (o que se tratan como si hubiesen sido pagados) por un estudiante que es reclamado como dependiente en su declaración de impuestos se tratan como si hubiesen sido pagados por usted. File tax extension free Al calcular los créditos tributarios por estudios, si usted o el estudiante toman una deducción por gastos de enseñanza superior, tal como en el Anexo A o C (Formulario 1040), no pueden utilizar esos gastos como gastos de estudios calificados. File tax extension free Los gastos de estudios calificados para cualquier período académico tienen que ser reducidos por toda ayuda económica de estudios exenta de los impuestos asignable a dicho período académico. File tax extension free Vea Ajustes a los Gastos de Estudios Calificados , más adelante. File tax extension free Gastos pagados por adelantado. File tax extension free   Los gastos de estudios calificados pagados en 2013 para un período académico que comienza en los primeros tres meses de 2014 se pueden utilizar sólo en el cálculo del crédito por estudios de 2013. File tax extension free Vea Período académico , anteriormente. File tax extension free Por ejemplo, si usted paga $2,000 en diciembre de 2013 para matrícula calificada por el cuatrimestre del invierno de 2014 que comienza en enero de 2014, puede utilizar los $2,000 en el cálculo del crédito por estudios sólo para 2013 (si reúne todos los otros requisitos). File tax extension free No puede utilizar cantidad alguna que haya pagado en 2012 ó 2014 para calcular su(s) crédito(s) tributario(s) por estudios de 2013. File tax extension free Gastos pagados con un préstamo. File tax extension free   Puede reclamar un crédito por estudios en el caso de gastos de estudios calificados que haya pagado con un préstamo. File tax extension free Utilice los gastos para calcular el crédito tributario por estudios correspondiente al año en que se paguen los gastos y no al año en el que se pague el préstamo. File tax extension free Trate los pagos del préstamo enviados directamente a la institución de enseñanza superior como si se hubiesen pagado en la fecha en que dicha institución abone los pagos a la cuenta del estudiante. File tax extension free Si el estudiante se retira de uno o más cursos. File tax extension free   Puede reclamar un crédito tributario por estudios en el caso de gastos de estudios calificados que no se le devuelvan al estudiante si el estudiante se retira de uno o más cursos. File tax extension free No se Permite Beneficio Doble No se permite hacer lo siguiente: Deducir gastos de enseñanza superior en su declaración de impuestos sobre los ingresos (por ejemplo, un gasto de negocio) y reclamar también un crédito por estudios basándose en dichos gastos. File tax extension free Reclamar más de un (1) crédito tributario por estudios basándose en los mismos gastos de estudios calificados. File tax extension free Reclamar un crédito por estudios basándose en los mismos gastos utilizados para calcular la parte exenta del impuesto de distribuciones de una cuenta de ahorros para estudios Coverdell (Coverdell ESA, por su abreviatura en inglés) o un programa de matrícula calificada (QTP, por sus siglas en inglés). File tax extension free Reclamar un crédito basándose en gastos de estudios calificados que hayan sido pagados con ayuda para estudios, tal como una beca o subvención o ayuda provista por el empleador, libres de impuestos. File tax extension free Vea Ajustes a los Gastos de Estudios Calificados, a continuación. File tax extension free Ajustes a los Gastos de Estudios Calificados Para cada estudiante, se tiene que restar los gastos de estudios calificados, pagados en 2013, por o en nombre de dicho estudiante bajo las siguientes reglas. File tax extension free El resultado es la cantidad ajustada en gastos de estudios calificados por cada estudiante. File tax extension free Ayuda económica para estudios exenta de impuestos. File tax extension free   Si en 2013 recibió ayuda económica para estudios que está exenta de impuestos, reste la cantidad de la ayuda económica para estudios exenta de impuestos asignable para cada período académico de la cantidad de gastos de estudios calificados para cada período académico. File tax extension free Vea Período académico , anteriormente. File tax extension free   La ayuda económica para estudios exenta de impuestos incluye: Partes no sujetas a impuestos de becas de estudios y becas de investigación (vea el capítulo 12 de esta publicación y el capítulo 1 de la Publicación 970, en inglés), La parte no sujeta a impuestos de subvenciones federales Pell (vea el capítulo 1 de la Publicación 970, en inglés), La parte no sujeta a impuestos de ayuda económica para estudios provista por el empleador (vea la Publicación 970, en inglés), Ayuda económica para estudios para veteranos (vea el capítulo 1 de la Publicación 970, en inglés) y Cualquier otro pago no sujeto a impuestos (libre de impuestos) (que no sean regalos ni herencias) recibido como ayuda económica para estudios. File tax extension free   Por lo general, toda beca de estudios o de investigación es tratada como una ayuda económica para estudios exenta de impuestos. File tax extension free Sin embargo, una beca de estudios o de investigación no será tratada como dicha ayuda al punto de que el estudiante la incluye como ingreso bruto (si el estudiante tiene que presentar una declaración de impuestos) para el año en que reciba la beca de estudios o de investigación y le corresponde uno de los siguientes: La beca de estudios o de investigación (o cualquier parte de dicha beca) tiene que ser aplicada (por sus condiciones) a gastos (como de alojamiento y comida) que no sean gastos de estudios calificados como se define en el capítulo 1, Qualified education expenses (Gastos de estudios calificados), de la Publicación 970, en inglés, o La beca de estudios o de investigación (o cualquier parte de dicha beca) puede ser aplicada (por sus condiciones) a gastos (como de alojamiento y comida) que no sean gastos de estudios calificados como se define en el capítulo 1, Qualified education expenses (Gastos de estudios calificados), de la Publicación 970, en inglés. File tax extension free Podría aumentar el valor combinado del crédito tributario por estudios y cierta ayuda económica para estudios si el estudiante incluye alguna o toda ayuda económica para estudios del ingreso en el año en que recibió dicha ayuda. File tax extension free Para detalles, vea Adjustments of Qualified Education Expenses (Ajustes a los gastos de estudios calificados) en los capítulos 2 y 3 de la Publicación 970, en inglés. File tax extension free Cierta ayuda económica para estudios exenta de impuestos recibida después de 2013 podría ser tratada como un reembolso de gastos de estudios calificados que se pagaron en 2013. File tax extension free Esta ayuda económica para estudios exenta de impuestos es toda ayuda económica para estudios exenta de impuestos que usted o cualquier otro ha recibido después de 2013 por gastos de estudios calificados pagados en nombre de un estudiante en 2013 (o atribuible a la matrícula de una institución de enseñanza superior que reúne los requisitos durante 2013). File tax extension free Si dicha ayuda económica para estudios exenta de impuestos se recibe después de 2013 pero antes de que presente su declaración de impuestos sobre los ingresos para 2013, vea Reembolsos recibidos después de 2013 pero antes de presentar su declaración de impuestos sobre los ingresos, más adelante. File tax extension free Si dicha ayuda económica para estudios exenta de impuestos se recibe después de 2013 y después que presenta su declaración de impuestos sobre los ingresos para 2013, vea Reembolsos recibidos después de 2013 y después que presenta su declaración de impuestos sobre los ingresos, más adelante. File tax extension free Reembolsos. File tax extension free   Un reembolso de gastos de estudios calificados puede reducir gastos de estudios calificados por el año tributable o puede requerir que recupere (reintegre) el crédito tributario por estudios que reclamó en un año anterior. File tax extension free Cierta ayuda económica para estudios exenta de impuestos recibida después de 2013 puede ser tratada como un reembolso. File tax extension free Vea Ayuda económica para estudios exenta de impuestos, anteriormente. File tax extension free Reembolsos recibidos en 2013. File tax extension free   Por cada estudiante, calcule los gastos de estudios calificados ajustados de 2013 sumando todos los gastos de estudios calificados pagados en 2013 y reste todos los reembolsos de esos gastos recibidos de la institución de enseñanza superior que reúne los requisitos durante 2013. File tax extension free Reembolsos recibidos después de 2013 pero antes de presentar su declaración de impuestos sobre los ingresos. File tax extension free   Si alguien recibe un reembolso después de 2013 por gastos de estudios calificados pagado en nombre de un estudiante en 2013 y el reembolso es recibido antes de que presente su declaración de impuestos sobre los ingresos de 2013, reste la cantidad de gastos de estudios calificados de 2013 por la cantidad del reembolso. File tax extension free Reembolsos recibidos después de 2013 y después de presentar su declaración de impuestos sobre los ingresos. File tax extension free   Si alguien recibe un reembolso después de 2013 por gastos de estudios calificados pagados en nombre de un estudiante en 2013 y el reembolso es recibido después de presentar su declaración de impuestos sobre los ingresos de 2013, podría verse obligado a reintegrar parte o todo el crédito tributario por estudios que reclamó. File tax extension free Vea Recuperar (reintegrar) el crédito, a continuación. File tax extension free Recuperar (reintegrar) el crédito. File tax extension free   Si después de haber presentado su declaración de impuestos sobre los ingresos de 2013, recibe alguna ayuda económica para estudios exenta de impuestos o cualquier reembolso correspondiente a gastos de estudios calificados que haya pagado en 2013, tiene que recuperar (reintegrar) todo crédito en exceso. File tax extension free Cuando se vuelve a calcular la cantidad de gastos de estudios calificados ajustados de 2013, reste de dichos gastos la cantidad de la ayuda económica para estudios exenta de impuestos o el (los) reembolso(s) que haya recibido. File tax extension free Entonces se calcula nuevamente su(s) crédito(s) tributario(s) por estudios de 2013 y se calcula la cantidad por la cual su impuesto adeudado de 2013 hubiera aumentado si hubiese reclamado dicho(s) crédito(s) nuevamente calculado(s). File tax extension free Incluya esa cantidad como un impuesto adicional para el año en que la ayuda económica o el reembolso fueron recibidos. File tax extension free Ejemplo. File tax extension free   Usted pagó $8,000 por matrícula y gastos escolares de su hijo en diciembre de 2013 por el semestre de primavera que comienza en enero de 2014. File tax extension free Usted presentó su declaración de impuestos de 2013 el 3 de febrero de 2014 y reclamó un crédito vitalicio por aprendizaje de $1,600 ($8,000 de gastos de estudios calificados multiplicado por 0. File tax extension free 20). File tax extension free Usted no reclamó otros créditos tributarios. File tax extension free Después de haber presentado su declaración, su hijo se retiró de dos cursos y usted recibió un reembolso de $1,400. File tax extension free Tiene que volver a calcular su crédito vitalicio por aprendizaje de 2013 usando $6,600 ($1,400 del reembolso que se resta de los gastos de estudios calificados de $8,000). File tax extension free El crédito nuevamente calculado es $1,320 y su impuesto adeudado aumentó por $280. File tax extension free Tiene que incluir el resultado de $280 (lo que queda después de que haya restado $1,320 (el crédito nuevamente calculado) de $1,600 (el crédito que había reclamado originalmente)) como un impuesto adicional en su declaración de impuestos sobre los ingresos de 2014. File tax extension free Para determinar en dónde incluir dicho impuesto adicional, vea las instrucciones de su declaración de impuestos sobre los ingresos de 2014. File tax extension free    Si también paga gastos de estudios calificados en 2014 para un período académico que comienza en los primeros tres meses de 2014 y recibe ayuda económica para estudios exenta de impuestos o un reembolso como se explicó anteriormente, usted puede escoger reducir sus gastos de estudios calificados para el 2014 en vez de reducir sus gastos para 2013. File tax extension free Cantidades que no reducen los gastos de estudios calificados. File tax extension free   No reste de los gastos de estudios calificados las cantidades pagadas con fondos que el estudiante reciba como: Pagos por servicios, como salarios; Un préstamo; Un regalo; Una herencia o Un retiro de la cuenta de ahorros personal del estudiante. File tax extension free   No reste de los gastos de estudios calificados ninguna beca de estudios o beca de investigación reclamada como ingresos en la declaración de ingresos del estudiante en las siguientes situaciones: El uso del dinero está limitado, por los términos de la beca de estudios o de investigación, a los costos de asistencia (como alojamiento y comida) que no sean gastos de estudios calificados, como se definen en el capítulo 1 de la Publicación 970, en inglés. File tax extension free El uso del dinero no está limitado. File tax extension free   Para ver ejemplos, consulte el capítulo 2 de la Publicación 970, en inglés. File tax extension free Please click here for the text description of the image. File tax extension free Figura 35-A ¿Puede usted reclamar el crédito por Estudios para 2013? Prev  Up  Next   Home   More Online Publications
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Large Business and International Tax Center

The Large Business and International (LB&I) Division serves corporations, subchapter S corporations, and partnerships with assets greater than $10 million.

LB&I Programs and Resources

Abusive Tax Shelters and Transactions
The Internal Revenue Service has a comprehensive strategy in place to combat abusive tax shelters and transactions.

Coordinated Issue Papers - LB&I
Effective January 21, 2014, all LB&I coordinated issue papers are decoordinated.  See 1/21/14 Directive from LB&I Commissioner Maloy for details.

e-file for Large and Mid-Size Corporations
For tax years ending on or after December 31, 2006, corporations that have assets of $10 Million or more are required to electronically file their 1120/1102S income tax returns.  For tax years ending on or after December 31, 2007, foreign corporations with assets of $10 Million or more are required to electronically file their 1120-F income tax returns.

Industry Issue Resolution Program
The Industry Issue Resolution (IIR) Program resolves frequently disputed or burdensome tax issues. IRS solicits suggestions for issues for the program from taxpayers, representatives and associations.

LB&I Industry Director Guidance
LB&I Directives provide industry-related and administrative guidance to LB&I examiners to ensure consistent tax administration. The Directives do not establish Service position on legal issues and are not legal guidance.

Pre-Filing Agreement Program
The Pre-Filing Agreement Program is expected to reduce taxpayer burden and make more effective use of IRS resources by resolving or eliminating tax controversy earlier in the examination process.

Schedule M-3 for Reconciling Book to Tax Income
The Treasury Department and IRS are implementing Schedule M-3, “Net Income (Loss) Reconciliation for Corporations With Total Assets of $10 Million or More”.
 

Page Last Reviewed or Updated: 18-Mar-2014

The File Tax Extension Free

File tax extension free Publication 51 - Main Content Table of Contents 1. File tax extension free Taxpayer Identification NumbersWhen you receive your EIN. File tax extension free Registering for SSNVS. File tax extension free 2. File tax extension free Who Are Employees?Crew Leaders Business Owned and Operated by Spouses 3. File tax extension free Wages and Other Compensation 4. File tax extension free Social Security and Medicare TaxesThe $150 Test or the $2,500 Test Social Security and Medicare Tax Withholding 5. File tax extension free Federal Income Tax WithholdingImplementation of lock-in letter. File tax extension free Seasonal employees and employees not currently performing services. File tax extension free Termination and re-hire of employees. File tax extension free How To Figure Federal Income Tax Withholding 6. File tax extension free Required Notice to Employees About Earned Income Credit (EIC) 7. File tax extension free Depositing TaxesWhen To Deposit How To Deposit Deposit Penalties Employers of Both Farm and Nonfarm Workers 8. File tax extension free Form 943 9. File tax extension free Reporting Adjustments on Form 943Current Year Adjustments Prior Year Adjustments 10. File tax extension free Federal Unemployment (FUTA) Tax 11. File tax extension free Reconciling Wage Reporting Forms 13. File tax extension free Federal Income Tax Withholding MethodsWage Bracket Method Percentage Method Alternative Methods of Federal Income Tax Withholding How To Get Tax Help 1. File tax extension free Taxpayer Identification Numbers If you are required to withhold any federal income, social security, or Medicare taxes, you will need an employer identification number (EIN) for yourself. File tax extension free Also, you will need the SSN of each employee and the name of each employee as shown on the employee's social security card. File tax extension free Employer identification number (EIN). File tax extension free   An employer identification number (EIN) is a nine-digit number that the IRS issues. File tax extension free The digits are arranged as follows: 00-0000000. File tax extension free It is used to identify the tax accounts of employers and certain others who have no employees. File tax extension free Use your EIN on all of the items that you send to the IRS and SSA. File tax extension free   If you do not have an EIN, you may apply for one online. File tax extension free Visit IRS. File tax extension free gov and click on the Apply for an EIN Online link under Tools. File tax extension free You may also apply for an EIN by calling 1-800-829-4933, or you can fax or mail Form SS-4, Application for Employer Identification Number, to the IRS. File tax extension free Do not use a SSN in place of an EIN. File tax extension free   If you do not have an EIN by the time a return is due, write “Applied For” and the date you applied for it in the space shown for the number. File tax extension free If you took over another employer's business, do not use that employer's EIN. File tax extension free   You should have only one EIN. File tax extension free If you have more than one, and are not sure which one to use, call the toll-free Business and Specialty Tax Line at 1-800-829-4933 or 1-800-829-4059 (TDD/TTY for persons who are deaf, hard of hearing, or have a speech disability). File tax extension free Provide the EINs that you have, the name and address to which each number was assigned, and the address of your principal place of business. File tax extension free The IRS will tell you which EIN to use. File tax extension free   For more information, see Publication 1635 or Publication 583. File tax extension free When you receive your EIN. File tax extension free   If you are a new employer that indicated a federal tax obligation when requesting an EIN, you will be pre-enrolled in the Electronic Federal Tax Payment System (EFTPS). File tax extension free You will receive information in your Employer Identification Number (EIN) Package about Express Enrollment and an additional mailing containing your EFTPS personal identification number (PIN) and instructions for activating your PIN. File tax extension free Call the toll-free number located in your “How to Activate Your Enrollment” brochure to activate your enrollment and begin making your employment tax deposits. File tax extension free If you outsource any of your payroll and related tax duties to a third party payer, such as a payroll service provider or reporting agent, be sure to tell them about your EFTPS enrollment. File tax extension free Social security number (SSN). File tax extension free   An employee's social security number (SSN) consists of nine digits arranged as follows: 000-00-0000. File tax extension free You must obtain each employee's name and SSN as shown on the employee's social security card because you must enter them on Form W-2. File tax extension free Do not accept a social security card that says “Not valid for employment. File tax extension free ” A social security number issued with this legend does not permit employment. File tax extension free You may, but are not required to, photocopy the social security card if the employee provides it. File tax extension free If you do not show the employee's correct name and SSN on Form W-2, you may owe a penalty unless you have reasonable cause. File tax extension free See Publication 1586, Reasonable Cause Regulations & Requirements for Missing and Incorrect Name/TINs. File tax extension free Applying for a social security card. File tax extension free   Any employee who is legally eligible to work in the United States and does not have a social security card can get one by completing Form SS-5, Application for a Social Security Card, and submitting the necessary documentation to SSA. File tax extension free You can get Form SS-5 at SSA offices, by calling 1-800-772-1213 or 1-800-325-0778 (TTY), or from the SSA website at www. File tax extension free socialsecurity. File tax extension free gov/online/ss-5. File tax extension free html. File tax extension free The employee must complete and sign Form SS-5; it cannot be filed by the employer. File tax extension free You may be asked to supply a letter to accompany Form SS-5 if the employee has exceeded his or her yearly or lifetime limit for the number of replacement cards allowed. File tax extension free Applying for a social security number. File tax extension free   If you file Form W-2 on paper and your employee has applied for an SSN but does not have one when you must file Form W-2, enter “Applied For” on the form. File tax extension free If you are filing electronically, enter all zeros (000-00-0000) in the social security number field. File tax extension free When the employee receives the SSN, file Copy A of Form W-2c, Corrected Wage and Tax Statement, with the SSA to show the employee's SSN. File tax extension free Furnish Copies B, C, and 2 of Form W-2c to the employee. File tax extension free Up to 25 Forms W-2c per Form W-3c, Transmittal of Corrected Wage and Tax Statements, may be filed per session over the Internet, with no limit on the number of sessions. File tax extension free For more information, visit SSA's Employer W-2 Filing Instructions & Information webpage at www. File tax extension free socialsecurity. File tax extension free gov/employer. File tax extension free Advise your employee to correct the SSN on his or her original Form W-2. File tax extension free Correctly record the employee's name and SSN. File tax extension free   Record the name and number of each employee as they are shown on the employee's social security card. File tax extension free If the employee's name is not correct as shown on the card (for example, because of marriage or divorce), the employee should request a corrected card from the SSA. File tax extension free Continue to report the employee's wages under the old name until the employee shows you an updated social security card with the new name. File tax extension free   If the SSA issues the employee a replacement card after a name change, or a new card with a different social security number after a change in alien work status, file a Form W-2c to correct the name/SSN reported on the most recently filed Form W-2. File tax extension free It is not necessary to correct other years if the previous name and SSN were used for years before the most recent Form W-2. File tax extension free IRS individual taxpayer identification numbers (ITINs) for aliens. File tax extension free   Do not accept an ITIN in place of an SSN for employee identification or for work. File tax extension free An ITIN is issued for use by resident and nonresident aliens who need identification for tax purposes, but who are not eligible for U. File tax extension free S. File tax extension free employment. File tax extension free The ITIN is a nine-digit number formatted like an SSN (for example, NNN-NN-NNNN). File tax extension free However, it begins with the number “9” and has either a “7” or “8” as the fourth digit (for example, 9NN-7N-NNNN or 9NN-8N-NNNN). File tax extension free    An individual with an ITIN who later becomes eligible to work in the United States must obtain an SSN. File tax extension free If the individual is currently eligible to work in the United States, instruct the individual to apply for an SSN and follow the instructions under Applying for a social security number, earlier in this section. File tax extension free Do not use an ITIN in place of an SSN on Form W-2. File tax extension free Verification of social security numbers. File tax extension free   Employers and authorized reporting agents can use the Social Security Number Verification Service (SSNVS) to instantly verify up to 10 employee names and SSNs (per screen) at a time, or submit an electronic file of up to 250,000 names and SSNs and usually receive results the next business day. File tax extension free Visit www. File tax extension free socialsecurity. File tax extension free gov/employer/ssnv. File tax extension free htm for more information. File tax extension free Registering for SSNVS. File tax extension free   You must register online and receive authorization from your employer to use SSNVS. File tax extension free To register, visit SSA's website at www. File tax extension free socialsecurity. File tax extension free gov/employer and click on the Business Services Online link. File tax extension free Follow the registration instructions to obtain a user identification (ID) and password. File tax extension free You will need to provide the following information about yourself and your company. File tax extension free Name. File tax extension free SSN. File tax extension free Date of birth. File tax extension free Type of employer. File tax extension free EIN. File tax extension free Company name, address, and telephone number. File tax extension free Email address. File tax extension free When you have completed the online registration process, SSA will mail a one-time activation code to your employer. File tax extension free You must enter the activation code online to use SSNVS. File tax extension free 2. File tax extension free Who Are Employees? Generally, employees are defined either under common law or under statutes for certain situations. File tax extension free See Publication 15-A for details on statutory employees and nonemployees. File tax extension free Employee status under common law. File tax extension free   Generally, a worker who performs services for you is your employee if you have the right to control what will be done and how it will be done. File tax extension free This is so even when you give the employee freedom of action. File tax extension free What matters is that you have the right to control the details of how the services are performed. File tax extension free See Publication 15-A for more information on how to determine whether an individual providing services is an independent contractor or an employee. File tax extension free If an employer-employee relationship exists, it does not matter what it is called. File tax extension free The employee may be called an agent or independent contractor. File tax extension free It also does not matter how payments are measured or paid, what they are called, or if the employee works full or part time. File tax extension free You are responsible for withholding and paying employment taxes for your employees. File tax extension free You are also required to file employment tax returns. File tax extension free These requirements do not apply to amounts that you pay to independent contractors. File tax extension free The rules discussed in this publication apply only to workers who are your employees. File tax extension free In general, you are an employer of farmworkers if your employees: Raise or harvest agricultural or horticultural products on your farm (including the raising and feeding of livestock); Work in connection with the operation, management, conservation, improvement, or maintenance of your farm and its tools and equipment; Provide services relating to salvaging timber, or clearing land of brush and other debris, left by a hurricane (also known as hurricane labor); Handle, process, or package any agricultural or horticultural commodity if you produced over half of the commodity (for a group of up to 20 unincorporated operators, all of the commodity); or Do work for you related to cotton ginning, turpentine, gum resin products, or the operation and maintenance of irrigation facilities. File tax extension free For this purpose, the term “farm” includes stock, dairy, poultry, fruit, fur-bearing animal, and truck farms, as well as plantations, ranches, nurseries, ranges, greenhouses or other similar structures used primarily for the raising of agricultural or horticultural commodities, and orchards. File tax extension free Farmwork does not include reselling activities that do not involve any substantial activity of raising agricultural or horticultural commodities, such as a retail store or a greenhouse used primarily for display or storage. File tax extension free The table in section 12, How Do Employment Taxes Apply to Farmwork , distinguishes between farm and nonfarm activities, and also addresses rules that apply in special situations. File tax extension free Crew Leaders If you are a crew leader, you are an employer of farmworkers. File tax extension free A crew leader is a person who furnishes and pays (either on his or her own behalf or on behalf of the farm operator) workers to do farmwork for the farm operator. File tax extension free If there is no written agreement between you and the farm operator stating that you are his or her employee and if you pay the workers (either for yourself or for the farm operator), then you are a crew leader. File tax extension free For FUTA tax rules, see section 10. File tax extension free Business Owned and Operated by Spouses If you and your spouse jointly own and operate a farm or nonfarm business and share in the profits and losses, you are partners in a partnership, whether or not you have a formal partnership agreement. File tax extension free See Publication 541, Partnerships, for more details. File tax extension free The partnership is considered the employer of any employees, and is liable for any employment taxes due on wages paid to its employees. File tax extension free Exception—Qualified joint venture. File tax extension free   For tax years beginning after December 31, 2006, the Small Business and Work Opportunity Tax Act of 2007 (Public Law 110-28) provides that a “qualified joint venture,” whose only members are spouses filing a joint income tax return, can elect not to be treated as a partnership for federal tax purposes. File tax extension free A qualified joint venture conducts a trade or business where: The only members of the joint venture are spouses who file a joint income tax return, Both spouses materially participate (see Material participation in the Instructions for Schedule C (Form 1040), line G) in the trade or business (mere joint ownership of property is not enough), Both spouses elect to not be treated as a partnership, and The business is co-owned by both spouses and is not held in the name of a state law entity such as a partnership or limited liability company (LLC). File tax extension free   To make the election, all items of income, gain, loss, deduction, and credit must be divided between the spouses, in accordance with each spouse's interest in the venture, and reported on separate Schedules C or F as sole proprietors. File tax extension free Each spouse must also file a separate Schedule SE to pay self-employment taxes, as applicable. File tax extension free   Spouses using the qualified joint venture rules are treated as sole proprietors for federal tax purposes and generally do not need an EIN. File tax extension free If employment taxes are owed by the qualified joint venture, either spouse may report and pay the employment taxes due on the wages paid to the employees using the EIN of that spouse's sole proprietorship. File tax extension free Generally, filing as a qualified joint venture will not increase the spouses' total tax owed on the joint income tax return. File tax extension free However, it gives each spouse credit for social security earnings on which retirement benefits are based and for Medicare coverage without filing a partnership return. File tax extension free    Note. File tax extension free If your spouse is your employee, not your partner, you must pay social security and Medicare taxes for him or her. File tax extension free   For more information on qualified joint ventures, visit IRS. File tax extension free gov and enter “qualified joint venture” in the search box. File tax extension free Exception—Community income. File tax extension free   If you and your spouse wholly own an unincorporated business as community property under the community property laws of a state, foreign country, or U. File tax extension free S. File tax extension free possession, you can treat the business either as a sole proprietorship (of the spouse who carried on the business) or a partnership. File tax extension free You may still make an election to be taxed as a qualified joint venture instead of a partnership. File tax extension free See Exception—Qualified joint venture , earlier in this section. File tax extension free 3. File tax extension free Wages and Other Compensation Cash wages that you pay to employees for farmwork are generally subject to social security tax and Medicare tax. File tax extension free You may also be required to withhold, deposit, and report Additional Medicare Tax. File tax extension free See section 4 for more information. File tax extension free If the wages are subject to social security and Medicare taxes, they are also subject to federal income tax withholding. File tax extension free You may also be liable for FUTA tax, which is not withheld by you or paid by the employee. File tax extension free FUTA tax is discussed in section 10. File tax extension free Cash wages include checks, money orders, etc. File tax extension free Do not count as cash wages the value of food, lodging, and other noncash items. File tax extension free For more information on what payments are considered taxable wages, see Publication 15 (Circular E). File tax extension free Commodity wages. File tax extension free   Commodity wages are not cash and are not subject to social security and Medicare taxes or federal income tax withholding. File tax extension free However, noncash payments, including commodity wages, are treated as cash wages (see above) if the substance of the transaction is a cash payment. File tax extension free These noncash payments are subject to social security and Medicare taxes and federal income tax withholding. File tax extension free Other compensation. File tax extension free   Publications 15-A and 15-B discuss other forms of compensation that may be taxable. File tax extension free Family members. File tax extension free   Generally, the wages that you pay to family members who are your employees are subject to social security and Medicare taxes, federal income tax withholding, and FUTA tax. File tax extension free However, certain exemptions may apply for your child, spouse, or parent. File tax extension free See the table, How Do Employment Taxes Apply to Farmwork , in section 12. File tax extension free Household employees. File tax extension free   The wages of an employee who performs household services, such as a maid, babysitter, gardener, or cook, in your home are not subject to social security and Medicare taxes if you pay that employee cash wages of less than $1,900 in 2014. File tax extension free   Social security and Medicare taxes do not apply to cash wages for housework in your private home if it was done by your spouse or your child under age 21. File tax extension free Nor do the taxes apply to housework done by your parent unless: You have a child living in your home who is under age 18 or has a physical or mental condition that requires care by an adult for at least 4 continuous weeks in a calendar quarter, and You are a widow or widower, or divorced and not remarried, or have a spouse in the home who, because of a physical or mental condition, cannot care for your child for at least 4 continuous weeks in the quarter. File tax extension free   For more information, see Publication 926, Household Employer's Tax Guide. File tax extension free    Wages for household work may not be a deductible farm expense. File tax extension free See Publication 225, Farmer's Tax Guide. File tax extension free Share farmers. File tax extension free   You do not have to withhold or pay social security and Medicare taxes on amounts paid to share farmers under share-farming arrangements. File tax extension free Compensation paid to H-2A visa holders. File tax extension free   Report compensation of $600 or more paid to foreign agricultural workers who entered the country on H-2A visas in box 1 of Form W-2 but do not report it as social security wages (box 3) or Medicare wages (box 5) on Form W-2 because compensation paid to H-2A workers for agricultural labor performed in connection with this visa is not subject to social security and Medicare taxes. File tax extension free On Form W-2, do not check box 13 (Statutory employee), as H-2A workers are not statutory employees. File tax extension free   An employer is not required to withhold federal income tax from compensation it pays an H-2A worker for agricultural labor performed in connection with this visa unless the worker asks for withholding and the employer agrees. File tax extension free In that case, the worker must give the employer a completed Form W-4. File tax extension free Federal income tax withheld should be reported in box 2 of Form W-2. File tax extension free These reporting rules apply when the H-2A worker provides his or her taxpayer identification number (TIN) to the employer. File tax extension free For rules relating to backup withholding and reporting when the H-2A worker does not provide a TIN, see the Instructions for Form 1099-MISC and the Instructions for Form 945. File tax extension free 4. File tax extension free Social Security and Medicare Taxes Generally, you must withhold social security and Medicare taxes on all cash wage payments that you make to your employees. File tax extension free You may also be required to withhold Additional Medicare Tax. File tax extension free For more information, see Additional Medicare Tax withholding , later. File tax extension free The $150 Test or the $2,500 Test All cash wages that you pay to an employee during the year for farmwork are subject to social security and Medicare taxes and federal income tax withholding if either of the two tests below is met. File tax extension free You pay cash wages to an employee of $150 or more in a year for farmwork (count all cash wages paid on a time, piecework, or other basis). File tax extension free The $150 test applies separately to each farmworker that you employ. File tax extension free If you employ a family of workers, each member is treated separately. File tax extension free Do not count wages paid by other employers. File tax extension free The total that you pay for farmwork (cash and noncash) to all your employees is $2,500 or more during the year. File tax extension free Exceptions. File tax extension free   The $150 and $2,500 tests do not apply to wages that you pay to a farmworker who receives less than $150 in annual cash wages and the wages are not subject to social security and Medicare taxes, or federal income tax withholding, even if you pay $2,500 or more in that year to all of your farmworkers if the farmworker: Is employed in agriculture as a hand-harvest laborer, Is paid piece rates in an operation that is usually paid on a piece-rate basis in the region of employment, Commutes daily from his or her permanent home to the farm, and Had been employed in agriculture less than 13 weeks in the preceding calendar year. File tax extension free   Amounts that you pay to these seasonal farmworkers, however, count toward the $2,500-or-more test to determine whether wages that you pay to other farmworkers are subject to social security and Medicare taxes. File tax extension free Social Security and Medicare Tax Withholding The social security tax rate is 6. File tax extension free 2%, for both the employee and employer, on the first $117,000 paid to each employee. File tax extension free You must withhold at this rate from each employee and pay a matching amount. File tax extension free The Medicare tax rate is 1. File tax extension free 45% each for the employee and employer on all wages. File tax extension free You must withhold at this rate from each employee and pay a matching amount. File tax extension free There is no wage base limit for Medicare tax; all covered wages are subject to Medicare tax. File tax extension free Social security and Medicare taxes apply to most payments of sick pay, including payments made by third parties such as insurance companies. File tax extension free For details, see Publication 15-A. File tax extension free Additional Medicare Tax withholding. File tax extension free   In addition to withholding Medicare tax at 1. File tax extension free 45%, you must withhold a 0. File tax extension free 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. File tax extension free You are required to begin withholding Additional Medicare Tax in the pay period in which you pay wages in excess of $200,000 to an employee and continue to withhold it each pay period until the end of the calendar year. File tax extension free Additional Medicare Tax is only imposed on the employee. File tax extension free There is no employer share of Additional Medicare Tax. File tax extension free All wages that are subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 withholding threshold. File tax extension free   For more information on what wages are subject to Medicare tax, see the chart, Special Rules for Various Types of Services and Payments, in section 15 of Publication 15 (Circular E). File tax extension free For more information on Additional Medicare Tax, visit IRS. File tax extension free gov and enter “Additional Medicare Tax” in the search box. File tax extension free Employee share paid by employer. File tax extension free   If you would rather pay a household or agricultural employee's share of the social security and Medicare taxes without withholding them from his or her wages, you may do so. File tax extension free If you do not withhold the taxes, however, you must still pay them. File tax extension free Any employee social security and Medicare taxes that you pay is additional income to the employee. File tax extension free Include it in box 1 of the employee's Form W-2, but do not count it as social security and Medicare wages and do not include it in boxes 3 and 5. File tax extension free Also, do not count the additional income as wages for FUTA tax purposes. File tax extension free Different rules apply to employer payments of social security and Medicare taxes for non-household and non-agricultural employees. File tax extension free See section 7 of Publication 15-A. File tax extension free Withholding social security and Medicare taxes on nonresident alien employees. File tax extension free   In general, if you pay wages to nonresident alien employees, you must withhold social security and Medicare taxes as you would for a U. File tax extension free S. File tax extension free citizen or resident alien. File tax extension free However, see Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities, for exceptions to this general rule. File tax extension free Also see Compensation paid to H-2A visa holders in section 3. File tax extension free Religious exemption. File tax extension free    An exemption from social security and Medicare taxes is available to members of a recognized religious sect opposed to public insurance. File tax extension free This exemption is available only if both the employee and the employer are members of the sect. File tax extension free   For more information, see Publication 517, Social Security and Other Information for Members of the Clergy and Religious Workers. File tax extension free 5. File tax extension free Federal Income Tax Withholding Farmers and crew leaders must withhold federal income tax from the wages of farmworkers if the wages are subject to social security and Medicare taxes. File tax extension free The amount to withhold is figured on gross wages before taking out social security and Medicare taxes, union dues, insurance, etc. File tax extension free You may use one of several methods to determine the amount of federal income tax withholding. File tax extension free They are discussed in section 13. File tax extension free Form W-4. File tax extension free   To know how much federal income tax to withhold from employees' wages, you should have a Form W-4 on file for each employee. File tax extension free Encourage your employees to file an updated Form W-4 for 2014, especially if they owed taxes or received a large refund when filing their 2013 tax return. File tax extension free Advise your employees to use the IRS Withholding Calculator on the IRS website at www. File tax extension free irs. File tax extension free gov/individuals for help in determining how many withholding allowances to claim on their Form W-4. File tax extension free   Ask each new employee to give you a signed Form W-4 when starting work. File tax extension free Make the form effective with the first wage payment. File tax extension free If a new employee does not give you a completed Form W-4, withhold tax as if he or she is single, with no withholding allowances. File tax extension free Forms in Spanish. File tax extension free   You can provide Formulario W-4(SP) in place of Form W-4 to your Spanish-speaking employees. File tax extension free For more information, see Publicación 17(SP). File tax extension free Effective date of Form W-4. File tax extension free   A Form W-4 remains in effect until the employee gives you a new one. File tax extension free When you receive a new Form W-4, do not adjust withholding for pay periods before the effective date of the new form. File tax extension free Do not adjust withholding retroactively. File tax extension free If an employee gives you a replacement Form W-4, begin withholding no later than the start of the first payroll period ending on or after the 30th day from the date when you received the replacement Form W-4. File tax extension free For exceptions, see Exemption from federal income tax withholding , IRS review of requested Forms W-4 , and Invalid Forms W-4 , later in this section. File tax extension free A Form W-4 that makes a change for the next calendar year will not take effect in the current calendar year. File tax extension free Completing Form W-4. File tax extension free   The amount of federal income tax withholding is based on marital status and withholding allowances. File tax extension free Your employees may not base their withholding amounts on a fixed dollar amount or percentage. File tax extension free However, the employee may specify a dollar amount to be withheld in addition to the amount of withholding based on filing status and withholding allowances claimed on Form W-4. File tax extension free   Employees may claim fewer withholding allowances than they are entitled to claim. File tax extension free They may do this to ensure that they have enough withholding or to offset other sources of taxable income that are not subject to withholding. File tax extension free   See Publication 505, Tax Withholding and Estimated Tax, for more information about completing Form W-4. File tax extension free Along with Form W-4, you may wish to order Publication 505 for use by your employees. File tax extension free    Do not accept any withholding or estimated tax payments from your employees in addition to withholding based on their Form W-4. File tax extension free If an employee wants additional withholding, he or she should submit a new Form W-4 and, if necessary, pay estimated tax by filing Form 1040-ES, Estimated Tax for Individuals, or by using the Electronic Federal Tax Payment System (EFTPS) to make estimated tax payments. File tax extension free Exemption from federal income tax withholding. File tax extension free   Generally, an employee may claim exemption from federal income tax withholding because he or she had no federal income tax liability last year and expects none this year. File tax extension free See the Form W-4 instructions for more information. File tax extension free However, the wages are still subject to social security and Medicare taxes. File tax extension free   A Form W-4 claiming exemption from withholding is effective when it is filed with the employer and only for that calendar year. File tax extension free To continue to be exempt from withholding in the next calendar year, an employee must give you a new Form W-4 by February 15. File tax extension free If the employee does not give you a new Form W-4 by February 15, withhold tax based on the last valid Form W-4 you have for the employee that did not claim an exemption from withholding or, if one does not exist, withhold as if he or she is single with zero withholding allowances. File tax extension free If the employee provides a new Form W-4 claiming an exemption from withholding on February 16 or later, you may apply the exemption to future wages, but do not refund taxes withheld while the exempt status was not in place. File tax extension free Withholding income taxes on the wages of nonresident alien employees. File tax extension free   In general, you must withhold federal income taxes on the wages of nonresident alien employees. File tax extension free However, see Publication 515 for exceptions to this general rule. File tax extension free Also see Compensation paid to H-2A visa workers in section 3. File tax extension free Withholding adjustment for nonresident alien employees. File tax extension free   A special procedure applies for figuring the amount of income tax to withhold from wages of nonresident alien employees performing services within the United States for wages paid in 2014. File tax extension free This procedure requires a special chart to be used with the withholding tables to determine the amount to withhold from the wages of the nonresident alien employee. File tax extension free See Withholding adjustment for nonresident alien employees in section 9 of Publication 15 (Circular E). File tax extension free Nonresident alien employee's Form W-4. File tax extension free   When completing Forms W-4, nonresident aliens are required to: Not claim exemption from income tax withholding; Request withholding as if they are single, regardless of their actual marital status; Claim only one allowance (if the nonresident alien is a resident of Canada, Mexico, or Korea, he or she may claim more than one allowance); and Write “Nonresident Alien” or “NRA” above the dotted line on line 6 of Form W-4. File tax extension free   If you maintain an electronic Form W-4 system, you should provide a field for nonresident alien employees to enter nonresident alien status in lieu of writing “Nonresident Alien” or “NRA” above the dotted line on line 6. File tax extension free    A nonresident alien employee may request additional withholding at his or her option for other purposes, although such additions should not be necessary for withholding to cover federal income tax liability related to employment. File tax extension free Form 8233. File tax extension free   If a nonresident alien employee claims a tax treaty exemption from withholding, the employee must submit Form 8233, Exemption from Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual, with respect to the income exempt under the treaty, instead of Form W-4. File tax extension free See Publication 515 for details. File tax extension free IRS review of requested Forms W-4. File tax extension free   When requested by the IRS, you must make original Forms W-4 available for inspection by an IRS employee. File tax extension free You may also be directed to send certain Forms W-4 to the IRS. File tax extension free You may receive a notice from the IRS requiring you to submit a copy of Form W-4 for one or more of your named employees. File tax extension free Send the requested copy or copies of Form W-4 to the IRS at the address provided and in the manner directed by the notice. File tax extension free The IRS may also require you to submit copies of Form W-4 to the IRS as directed by a revenue procedure or notice published in the Internal Revenue Bulletin. File tax extension free When we refer to Form W-4, the same rules apply to Formulario W-4(SP), its Spanish translation. File tax extension free   After submitting a copy of the requested Form W-4 to the IRS, continue to withhold federal income tax based on that Form W-4 if it is valid (see Invalid Forms W-4 , later in this section). File tax extension free However, if the IRS later notifies you in writing that the employee is not entitled to claim a complete exemption from withholding or more than the maximum number of withholding allowances specified by the IRS in the written notice, withhold federal income tax based on the effective date, marital status, and maximum number of withholding allowances specified in the notice (commonly referred to as a “lock-in letter”). File tax extension free Initial lock-in letter. File tax extension free   The IRS uses information reported on Form W-2 to identify employees with withholding compliance problems. File tax extension free In some cases, where a serious under-withholding problem is found to exist for a particular employee, the IRS may issue a lock-in letter to the employer specifying the maximum number of withholding allowances and marital status permitted for a specific employee. File tax extension free You will also receive a copy for the employee that identifies the maximum number of withholding allowances permitted and the process by which the employee can provide additional information to the IRS for purposes of determining the appropriate number of withholding allowances. File tax extension free If the employee is employed by you as of the date of the notice, you must furnish the employee copy to the employee within 10 business days of receipt. File tax extension free You may follow any reasonable business practice to furnish the employee copy to the employee. File tax extension free Implementation of lock-in letter. File tax extension free   When you receive the notice specifying the maximum number of withholding allowances and marital status permitted, you may not withhold immediately on the basis of the notice. File tax extension free You must begin withholding tax on the basis of the notice for any wages paid after the date specified in the notice. File tax extension free The delay between your receipt of the notice and the date to begin the withholding on the basis of the notice permits the employee to contact the IRS. File tax extension free Seasonal employees and employees not currently performing services. File tax extension free   If you receive a notice for an employee who is not currently performing services for you, you are still required to furnish the employee copy to the employee and withhold based on the notice if any of the following apply. File tax extension free You are paying wages for the employee's prior services and the wages are subject to income tax withholding on or after the date specified in the notice. File tax extension free You reasonably expect the employee to resume services within 12 months of the date of the notice. File tax extension free The employee is on a bona fide leave of absence that does not exceed 12 months or the employee has a right to reemployment after the leave of absence. File tax extension free Termination and re-hire of employees. File tax extension free   If you are required to furnish and withhold based on the notice and the employment relationship is terminated after the date of the notice, you must continue to withhold based on the notice if you continue to pay any wages subject to income tax withholding. File tax extension free You must also withhold based on the notice or modification notice (explained next) if the employee resumes the employment relationship with you within 12 months after the termination of the employment relationship. File tax extension free Modification notice. File tax extension free   After issuing the notice specifying the maximum number of withholding allowances and marital status permitted, the IRS may issue a subsequent notice (modification notice) that modifies the original notice. File tax extension free The modification notice may change the marital status and/or the number of withholding allowances permitted. File tax extension free You must withhold federal income tax based on the effective date specified in the modification notice. File tax extension free New Form W-4 after IRS notice. File tax extension free   After the IRS issues a notice or modification notice, if the employee provides you with a new Form W-4 claiming complete exemption from withholding or claims a marital status, a number of withholding allowances, and any additional withholding that results in less withholding than would result under the IRS notice or modification notice, you must disregard the new Form W-4. File tax extension free You are required to withhold on the basis of the notice or modification notice unless the IRS subsequently notifies you to withhold based on the new Form W-4. File tax extension free If the employee wants to put a new Form W-4 into effect that results in less withholding than required, the employee must contact the IRS. File tax extension free   If, after you receive an IRS notice or modification notice, your employee provides you with a new Form W-4 that does not claim exemption from federal income tax withholding and claims a marital status, a number of withholding allowances, and any additional withholding that results in more withholding than would result under the notice or modification notice, you must withhold tax on the basis of that new Form W-4. File tax extension free Otherwise, disregard any subsequent Forms W-4 provided by the employee and withhold based on the IRS notice or modification notice. File tax extension free Substitute Forms W-4. File tax extension free   You are encouraged to have your employees use the official version of Form W-4 to claim withholding allowances or exemption from withholding. File tax extension free Call the IRS at 1-800-TAX-FORM (1-800-829-3676) or visit IRS. File tax extension free gov to obtain copies of Form W-4. File tax extension free   You may use a substitute version of Form W-4 to meet your business needs. File tax extension free However, your substitute Form W-4 must contain language that is identical to the official Form W-4 and your form must meet all current IRS rules for substitute forms. File tax extension free At the time that you provide your substitute form to the employee, you must provide him or her with all tables, instructions, and worksheets from the current Form W-4. File tax extension free   You cannot accept a substitute Form W-4 developed by an employee, and the employee submitting such form will be treated as failing to furnish a Form W-4. File tax extension free However, continue to use any valid Forms W-4 developed by your employees that you accepted before October 11, 2007. File tax extension free Invalid Forms W-4. File tax extension free   Any unauthorized change or addition to Form W-4 makes it invalid. File tax extension free This includes taking out any language by which the employee certifies that the form is correct. File tax extension free A Form W-4 is also invalid if, by the date an employee gives it to you, he or she indicates in any way that it is false. File tax extension free An employee who submits a false Form W-4 may be subject to a $500 penalty. File tax extension free You may treat a Form W-4 as invalid if the employee wrote “exempt” on line 7 and also entered a number on line 5 or an amount on line 6. File tax extension free   When you get an invalid Form W-4, do not use it to figure federal income tax withholding. File tax extension free Tell the employee that it is invalid and ask for another one. File tax extension free If the employee does not give you a valid one, withhold taxes as if the employee was single and claiming no withholding allowances. File tax extension free However, if you have an earlier Form W-4 for this worker that is valid, withhold as you did before. File tax extension free   For additional information about these rules, see Treasury Decision 9337, 2007-35 I. File tax extension free R. File tax extension free B. File tax extension free 455, available at www. File tax extension free irs. File tax extension free gov/irb/2007-35_IRB/ar10. File tax extension free html. File tax extension free Amounts exempt from levy on wages, salary, and other income. File tax extension free   If you receive a Notice of Levy on Wages, Salary, and Other Income—Forms 668-W(ACS), 668-W(c)(DO), or 668-W(ICS), you must withhold amounts as described in the instructions for these forms. File tax extension free Publication 1494, Tables for Figuring Amount Exempt From Levy on Wages, Salary, and Other Income—Forms 668-W(ACS), 668-W(c)(DO), and 668-W(ICS), shows the exempt amount. File tax extension free If a levy issued in a prior year is still in effect and the taxpayer submits a new Statement of Exemptions and Filing Status, use the current year Publication 1494 to compute the exempt amount. File tax extension free How To Figure Federal Income Tax Withholding There are several ways to figure federal income tax withholding. File tax extension free Wage bracket tables. File tax extension free See section 13 for directions on how to use the tables. File tax extension free Percentage method. File tax extension free See section 13 for directions on how to use the percentage method. File tax extension free Alternative formula tables for percentage method withholding. File tax extension free See Publication 15-A. File tax extension free Wage bracket percentage method withholding tables. File tax extension free See Publication 15-A. File tax extension free Other alternative methods. File tax extension free See Publication 15-A. File tax extension free Employers with automated payroll systems will find the two alternative formula tables and the two alternative wage bracket percentage method tables in Publication 15-A useful. File tax extension free If an employee wants additional federal tax withheld, have the employee show the extra amount on Form W-4. File tax extension free Supplemental wages. File tax extension free   Supplemental wages are wage payments to an employee that are not regular wages. File tax extension free They include, but are not limited to, bonuses, commissions, overtime pay, accumulated sick leave, severance pay, awards, prizes, back pay and retroactive pay increases for current employees, and payments for nondeductible moving expenses. File tax extension free Other payments subject to the supplemental wage rules include taxable fringe benefits and expense allowances paid under a nonaccountable plan. File tax extension free   If you pay supplemental wages with regular wages but do not specify the amount of each, withhold federal income tax as if the total was a single payment for a regular payroll period. File tax extension free   If you pay supplemental wages separately (or combine them in a single payment and specify the amount of each), the federal income tax withholding method depends partly on whether you withhold federal income tax from your employee's regular wages. File tax extension free If you withheld federal income tax from an employee's regular wages in the current or immediately preceding calendar year, you can use one of the following methods for the supplemental wages. File tax extension free Withhold a flat 25% (no other percentage allowed). File tax extension free If the supplemental wages are paid concurrently with regular wages, add the supplemental wages to the concurrently paid regular wages. File tax extension free If there are no concurrently paid regular wages, add the supplemental wages to alternatively, either the regular wages paid or to be paid for the current payroll period or the regular wages paid for the preceding payroll period. File tax extension free Figure the income tax withholding as if the total of the regular wages and supplemental wages is a single payment. File tax extension free Subtract the tax withheld from the regular wages. File tax extension free Withhold the remaining tax from the supplemental wages. File tax extension free If there were other payments of supplemental wages paid during the payroll period made before the current payment of supplemental wages, aggregate all the payments of supplemental wages paid during the payroll period with the regular wages paid during the payroll period, calculate the tax on the total, subtract the tax already withheld from the regular wages and previous supplemental wage payments, and withhold the remaining tax from the current payment of supplemental wages. File tax extension free If you did not withhold federal income tax from the employee's regular wages in the current or immediately preceding calendar year, use method 1-b above. File tax extension free This would occur, for example, when the value of the employee's withholding allowances claimed on Form W-4 is more than the wages. File tax extension free    Separate rules apply to any supplemental wages exceeding $1 million that you pay to an individual during the year. File tax extension free See section 7 in Publication 15 (Circular E) for details. File tax extension free   Regardless of the method that you use to withhold federal income tax on supplemental wages, they are generally subject to social security, Medicare, and FUTA taxes. File tax extension free 6. File tax extension free Required Notice to Employees About Earned Income Credit (EIC) You must notify employees who have no federal income tax withheld that they may be able to claim a tax refund because of the EIC. File tax extension free Although you do not have to notify employees who claim exemption from withholding on Form W-4 about the EIC, you are encouraged to notify any employees whose wages for 2013 were less than $46,227 ($51,567 if married filing jointly) that they may be eligible to claim the credit for 2013. File tax extension free This is because eligible employees may get a refund of the amount of EIC that is more than the tax that they owe. File tax extension free You will meet the notification requirement if you issue to the employee Form W-2 with the EIC notice on the back of Copy B, or a substitute Form W-2 with the same statement. File tax extension free You may also meet the requirement by providing Notice 797, Possible Federal Tax Refund Due to the Earned Income Credit (EIC), or your own statement that contains the same wording. File tax extension free If a substitute Form W-2 is given to the employee on time but does not have the required statement, you must notify the employee within 1 week of the date that the substitute Form W-2 is given. File tax extension free If Form W-2 is required but is not given on time, you must give the employee Notice 797 or your written statement by the date that Form W-2 is required to be given. File tax extension free If Form W-2 is not required, you must notify the employee by February 7, 2014. File tax extension free 7. File tax extension free Depositing Taxes Generally, you must deposit both the employer and employee shares of social security and Medicare taxes and federal income tax withheld. File tax extension free You must use electronic funds transfer to make all federal tax deposits. File tax extension free See How To Deposit , later in this section. File tax extension free The credit against employment taxes for COBRA premium assistance payments is treated as a deposit of taxes on the first day of your return period. File tax extension free For more information, see COBRA premium assistance credit under Introduction. File tax extension free Payment with return. File tax extension free   You may make payments with Forms 943 or 945 instead of depositing if one of the following applies. File tax extension free You report less than a $2,500 tax liability for the year (Form 943, line 11; Form 945, line 3) and you pay in full with a return that is filed on time. File tax extension free However, if you are unsure that you will report less than $2,500, deposit under the rules explained in this section so that you will not be subject to failure-to-deposit penalties. File tax extension free You are a monthly schedule depositor and make a payment in accordance with the Accuracy of Deposits Rule discussed later in this section. File tax extension free This payment may be $2,500 or more. File tax extension free Only monthly schedule depositors, defined later, are allowed to make an Accuracy of Deposits Rule payment with the return. File tax extension free Semiweekly schedule depositors must timely deposit the amount. File tax extension free See Accuracy of Deposits Rule and How To Deposit, later in this section. File tax extension free When To Deposit If you employ both farm and nonfarm workers, do not combine the taxes reportable on Forms 941 or 944 with Form 943 to decide whether to make a deposit. File tax extension free See Employers of Both Farm and Nonfarm Workers, later in this section. File tax extension free The rules for determining when to deposit Form 943 taxes are discussed below. File tax extension free See section 10 for the separate rules that apply to FUTA tax. File tax extension free Under these rules, you are classified as either a monthly schedule depositor or a semiweekly schedule depositor. File tax extension free The terms “monthly schedule depositor” and “semiweekly schedule depositor” do not refer to how often your business pays its employees or how often you are required to make deposits. File tax extension free The terms identify which set of rules you must follow when you incur a tax liability (for example, when you have a payday). File tax extension free The deposit schedule that you must use for a calendar year is determined from the tax liability reported on your Form 943, line 9, for the lookback period, discussed next. File tax extension free If you reported $50,000 or less of Form 943 taxes for the lookback period, you are a monthly schedule depositor. File tax extension free If you reported more than $50,000 of Form 943 taxes for the lookback period, you are a semiweekly schedule depositor. File tax extension free Lookback period. File tax extension free   The lookback period is the second calendar year preceding the current calendar year. File tax extension free For example, the lookback period for 2014 is 2012. File tax extension free Example of deposit schedule based on lookback period. File tax extension free Rose Co. File tax extension free reported taxes on Form 943 as follows. File tax extension free 2012 — $48,000 2013 — $60,000 Rose Co. File tax extension free is a monthly schedule depositor for 2014 because its taxes for the lookback period ($48,000 for calendar year 2012) were not more than $50,000. File tax extension free However, for 2015, Rose Co. File tax extension free is a semiweekly schedule depositor because the total taxes before adjustment for its lookback period ($60,000 for calendar year 2013) exceeded $50,000. File tax extension free Adjustments to lookback period taxes. File tax extension free   To determine your taxes for the lookback period, use only the tax that you reported on the original return (Form 943, line 9). File tax extension free Do not include adjustments shown on Form 943-X, Adjusted Employer's Annual Federal Tax Return for Agricultural Employees or Claim for Refund. File tax extension free Example of adjustments. File tax extension free An employer originally reported total tax of $45,000 for the lookback period in 2012. File tax extension free The employer discovered during March 2014 that the tax reported for the lookback period was understated by $10,000 and corrected this error by filing Form 943-X. File tax extension free The total tax reported in the lookback period is still $45,000. File tax extension free The $10,000 adjustment is also not treated as part of the 2014 taxes. File tax extension free Deposit period. File tax extension free   The term “deposit period” refers to the period during which tax liabilities are accumulated for each required deposit due date. File tax extension free For monthly schedule depositors, the deposit period is a calendar month. File tax extension free The deposit periods for semiweekly schedule depositors are Wednesday through Friday and Saturday through Tuesday. File tax extension free Monthly Deposit Schedule If the tax liability reported on Form 943, line 9, for the lookback period is $50,000 or less, you are a monthly schedule depositor for the current year. File tax extension free You must deposit Form 943 taxes on payments made during a calendar month by the 15th day of the following month. File tax extension free Monthly schedule example. File tax extension free   Red Co. File tax extension free is a seasonal employer and a monthly schedule depositor. File tax extension free It pays wages each Friday. File tax extension free It paid wages during August 2014, but did not pay any wages during September. File tax extension free Red Co. File tax extension free must deposit the combined tax liabilities for the August paydays by September 15. File tax extension free Red Co. File tax extension free does not have a deposit requirement for September (that is, due by October 15, 2014) because no wages were paid in September; therefore, it did not have a tax liability for September. File tax extension free New employers. File tax extension free   For agricultural employers, your tax liability for any year in the lookback period before the date you started or acquired your business is considered to be zero. File tax extension free Therefore, you are a monthly schedule depositor for the first and second calendar years of your agricultural business (but see the $100,000 Next-Day Deposit Rule , later in this section). File tax extension free Semiweekly Deposit Schedule You are a semiweekly schedule depositor for a calendar year if the tax liability on Form 943, line 9, during your lookback period was more than $50,000. File tax extension free Under the semiweekly deposit schedule, deposit Form 943 taxes for payments made on Wednesday, Thursday, and/or Friday by the following Wednesday. File tax extension free Deposit amounts accumulated for payments made on Saturday, Sunday, Monday, and/or Tuesday by the following Friday. File tax extension free Semiweekly depositors are not required to deposit twice a week if their payments were in the same semiweekly period unless the $100,000 Next-Day Deposit Rule (discussed later in this section) applies. File tax extension free For example, if you made a payment on both Wednesday and Friday and incurred taxes of $10,000 for each pay date, deposit the $20,000 by the following Wednesday. File tax extension free If you made no additional payments on Saturday through Tuesday, no deposit is due on Friday. File tax extension free Semiweekly schedule depositors must complete Form 943-A, Agricultural Employer's Record of Federal Tax Liability, and submit it with Form 943. File tax extension free Semiweekly Deposit Schedule IF the payday falls on a. File tax extension free . File tax extension free . File tax extension free THEN deposit taxes by the following. File tax extension free . File tax extension free . File tax extension free Wednesday, Thursday, and/or Friday Wednesday Saturday, Sunday, Monday, and/or Tuesday Friday Semiweekly schedule example. File tax extension free   Green, Inc. File tax extension free , is a semiweekly schedule depositor and pays wages once each month on the last Friday of the month. File tax extension free Green, Inc. File tax extension free , will deposit only once a month, but the deposit will be made under the semiweekly deposit schedule as follows. File tax extension free Green, Inc. File tax extension free 's tax liability for the April 25, 2014 (Friday), wage payment must be deposited by April 30, 2014 (Wednesday). File tax extension free Semiweekly deposit period spanning two quarters. File tax extension free   If you have more than one pay date during a semiweekly period and the pay dates fall in different calendar quarters, you will need to make separate deposits for the separate liabilities. File tax extension free For example, if you have a pay date on Monday, March 31, 2014 (first quarter), and another pay date on Tuesday, April 1, 2014 (second quarter), two separate deposits will be required even though the pay dates fall within the same semiweekly period. File tax extension free Both deposits will be due Friday, April 4, 2014 (3 business days from the end of the semiweekly deposit period). File tax extension free Deposits on Business Days Only If a deposit is required to be made on a day that is not a business day, the deposit is considered timely if it is made by the close of the next business day. File tax extension free A business day is any day other than a Saturday, Sunday, or legal holiday. File tax extension free For example, if a deposit is required to be made on Friday and Friday is a legal holiday, the deposit is considered timely if it is made by the following Monday (if Monday is a business day). File tax extension free Semiweekly schedule depositors   will always have 3 business days to make a deposit. File tax extension free That is, if any of the 3 weekdays after the end of a semiweekly period is a legal holiday, you will have an additional day for each day that is a legal holiday to make the deposit. File tax extension free For example, if a semiweekly schedule depositor accumulated taxes on Friday and the following Monday is a legal holiday, the deposit normally due on Wednesday may be made on Thursday (this allows 3 business days to make the deposit). File tax extension free Legal holiday. File tax extension free   The term “legal holiday” means any legal holiday in the District of Columbia. File tax extension free Legal holidays for 2014 are listed below. File tax extension free January 1— New Year's Day January 20— Birthday of Martin Luther King, Jr. File tax extension free February 17— Washington's Birthday April 16— District of Columbia Emancipation Day May 26— Memorial Day July 4— Independence Day September 1— Labor Day October 13— Columbus Day November 11— Veterans' Day November 27— Thanksgiving Day December 25— Christmas Day $100,000 Next-Day Deposit Rule If you accumulate $100,000 or more of Form 943 taxes (that is, taxes reported on Form 943, line 11) on any day during a deposit period, you must deposit the tax by the close of the next business day, whether you are a monthly or a semiweekly schedule depositor. File tax extension free For purposes of the $100,000 rule, do not continue accumulating a tax liability after the end of a deposit period. File tax extension free For example, if a semiweekly schedule depositor has accumulated a liability of $95,000 on a Tuesday (of a Saturday-through-Tuesday deposit period) and accumulated a $10,000 liability on Wednesday, the $100,000 next-day deposit rule does not apply because the $10,000 is accumulated in the next deposit period. File tax extension free Thus, $95,000 must be deposited by Friday and $10,000 must be deposited by the following Wednesday. File tax extension free However, once you accumulate at least $100,000 in a deposit period, stop accumulating at the end of that day and begin to accumulate anew on the next day. File tax extension free For example, Fir Co. File tax extension free is a semiweekly schedule depositor. File tax extension free On Monday, Fir Co. File tax extension free accumulates taxes of $110,000 and must deposit this amount on Tuesday, the next business day. File tax extension free On Tuesday, Fir Co. File tax extension free accumulates additional taxes of $30,000. File tax extension free Because the $30,000 is not added to the previous $110,000 and is less than $100,000, Fir Co. File tax extension free does not have to deposit the $30,000 until Friday (following the semiweekly deposit schedule). File tax extension free If you are a monthly schedule depositor and you accumulate a $100,000 tax liability on any day, you become a semiweekly schedule depositor on the next day and remain so for at least the rest of the calendar year and for the following calendar year. File tax extension free Example of the $100,000 next-day deposit rule. File tax extension free   Elm, Inc. File tax extension free , started its business on May 1, 2014. File tax extension free Because Elm, Inc. File tax extension free , is a new employer, the taxes for its lookback period are considered to be zero; therefore, Elm, Inc. File tax extension free , is a monthly schedule depositor. File tax extension free On May 8, Elm, Inc. File tax extension free , paid wages for the first time and accumulated taxes of $50,000. File tax extension free On May 9 (Friday), Elm, Inc. File tax extension free , paid wages and accumulated taxes of $60,000, for a total of $110,000. File tax extension free Because Elm, Inc. File tax extension free , accumulated $110,000 on May 9, it must deposit $110,000 by May 12 (Monday), the next business day. File tax extension free Elm, Inc. File tax extension free , became a semiweekly schedule depositor on May 10. File tax extension free It will be a semiweekly schedule depositor for the remainder of 2014 and for 2015. File tax extension free Accuracy of Deposits Rule You are required to deposit 100% of your tax liability on or before the deposit due date. File tax extension free However, penalties will not be applied for depositing less than 100% if both of the following conditions are met. File tax extension free Any deposit shortfall does not exceed the greater of $100 or 2% of the amount of taxes otherwise required to be deposited. File tax extension free The deposit shortfall is paid or deposited by the shortfall makeup date as described below. File tax extension free Makeup Date for Deposit Shortfall:    Monthly Schedule Depositor—Deposit the shortfall or pay it with your return by the due date of your Form 943. File tax extension free You may pay the shortfall with your Form 943 even if the amount is $2,500 or more. File tax extension free Semiweekly Schedule Depositor—Deposit by the earlier of (a) the first Wednesday or Friday (whichever comes first) that falls on or after the 15th of the month following the month in which the shortfall occurred, or (b) the due date for Form 943. File tax extension free For example, if a semiweekly schedule depositor has a deposit shortfall during February 2014, the shortfall makeup date is March 19, 2014 (Wednesday). File tax extension free How To Deposit You must deposit employment taxes by electronic funds transfer. File tax extension free See Payment with return , earlier in this section, for exceptions explaining when taxes may be paid with the tax return instead of being deposited. File tax extension free Electronic deposit requirement. File tax extension free   You must use electronic funds transfer to make all federal tax deposits (such as deposits of employment tax, excise tax, and corporate income tax). File tax extension free Generally, electronic funds transfers are made using the Electronic Federal Tax Payment System (EFTPS). File tax extension free If you do not want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make electronic deposits on your behalf. File tax extension free   EFTPS is a free service provided by the Department of Treasury. File tax extension free To get more information or to enroll in EFTPS, call 1-800-555-4477 (business), 1-800-316-6541 (individual), or 1-800-733-4829 (TDD). File tax extension free You can also visit the EFTPS website at www. File tax extension free eftps. File tax extension free gov. File tax extension free Additional information about EFTPS is also available in Publication 966. File tax extension free New employers that have a federal tax obligation will be pre-enrolled in EFTPS. File tax extension free Call the toll-free number located in your Employer Identification Number (EIN) Package to activate your enrollment and begin making your tax deposit payments. File tax extension free See When you receive your EIN in section 1 for more information. File tax extension free Deposit record. File tax extension free   For your records, an Electronic Funds Transfer (EFT) Trace Number will be provided with each successful payment. File tax extension free The number can be used as a receipt or to trace the payment. File tax extension free Depositing on time. File tax extension free   For deposits made by EFTPS to be on time, you must initiate the deposit by 8 p. File tax extension free m. File tax extension free Eastern time the day before the date a deposit is due. File tax extension free If you use a third party to make a deposit on your behalf, they may have different cutoff times. File tax extension free Same-day payment option. File tax extension free   If you fail to initiate a deposit transaction on EFTPS by 8 p. File tax extension free m. File tax extension free Eastern time the day before the date a deposit is due, you can still make your deposit on time by using the Federal Tax Application (FTA). File tax extension free To use the same-day payment method, you will need to make arrangements with your financial institution ahead of time. File tax extension free Please check with your financial institution regarding availability, deadlines, and costs. File tax extension free Your financial institution may charge you a fee for payments made this way. File tax extension free To learn more about the information you will need to provide to your financial institution to make a same-day wire payment, visit www. File tax extension free eftps. File tax extension free gov to download the Same-Day Payment Worksheet. File tax extension free Deposit Penalties Penalties may apply if you do not make required deposits on time or if you make deposits for less than the required amount. File tax extension free The penalties do not apply if any failure to make a proper and timely deposit was due to reasonable cause and not to willful neglect. File tax extension free IRS may also waive deposit penalties if you inadvertently fail to deposit in the first quarter that a deposit is due, or the first quarter during which your frequency of deposits changed, if you timely filed your employment tax return. File tax extension free For amounts not properly deposited or not deposited on time, the penalty rates are shown next. File tax extension free Penalty Charged for. File tax extension free . File tax extension free . File tax extension free 2% Deposits made 1 to 5 days late. File tax extension free 5% Deposits made 6 to 15 days late. File tax extension free 10% Deposits made 16 or more days late. File tax extension free Also applies to amounts paid within 10 days of the date of the first notice the IRS sent asking for the tax due. File tax extension free 10% Amounts (that should have been deposited) paid directly to the IRS or paid with your tax return. File tax extension free See Payment with return , earlier in this section, for exceptions. File tax extension free 15% Amounts still unpaid more than 10 days after the date of the first notice that the IRS sent asking for the tax due or the day on which you received notice and demand for immediate payment, whichever is earlier. File tax extension free Late deposit penalty amounts are determined using calendar days, starting from the due date of the liability. File tax extension free Order in which deposits are applied. File tax extension free   Deposits generally are applied to the most recent tax liability within the year. File tax extension free If you receive a failure-to-deposit penalty notice, you may designate how your deposits are to be applied in order to minimize the amount of the penalty, if you do so within 90 days of the date of the notice. File tax extension free Follow the instructions on the penalty notice that you received. File tax extension free For examples on how the IRS will apply deposits and more information on designating deposits, see Revenue Procedure 2001-58. File tax extension free You can find Revenue Procedure 2001-58 on page 579 of Internal Revenue Bulletin 2001-50 at www. File tax extension free irs. File tax extension free gov/pub/irs-irbs/irb01-50. File tax extension free pdf. File tax extension free Example. File tax extension free Cedar, Inc. File tax extension free , is required to make a deposit of $1,000 on July 15 and $1,500 on August 15. File tax extension free It does not make the deposit on July 15. File tax extension free On August 15, Cedar, Inc. File tax extension free , deposits $2,000. File tax extension free Under the deposits rule, which applies deposits to the most recent tax liability, $1,500 of the deposit is applied to the August 15 deposit and the remaining $500 is applied to the July deposit. File tax extension free Accordingly, $500 of the July 15 liability remains undeposited. File tax extension free The penalty on this underdeposit will apply as explained above. File tax extension free Trust fund recovery penalty. File tax extension free   If federal income, social security, or Medicare taxes that must be withheld are not withheld or are not deposited or paid to the United States Treasury, the trust fund recovery penalty may apply. File tax extension free The penalty is the full amount of the unpaid trust fund tax. File tax extension free This penalty may apply to you if these unpaid taxes cannot be immediately collected from the employer or business. File tax extension free   The trust fund recovery penalty may be imposed on all persons who are determined by the IRS to be responsible for collecting, accounting for, and paying over these taxes, and who acted willfully in not doing so. File tax extension free   A responsible person can be an officer or employee of a corporation, a partner or employee of a partnership, an accountant, a volunteer director/trustee, or an employee of a sole proprietorship. File tax extension free A responsible person also may include one who signs checks for the business or otherwise has authority to cause the spending of business funds. File tax extension free    Willfully means voluntarily, consciously, and intentionally. File tax extension free A responsible person acts willfully if the person knows that the required actions of collecting, accounting for or paying over trust fund taxes are not taking place, or recklessly disregards obvious and known risks to the government's right to receive trust fund taxes. File tax extension free “Average” failure-to-deposit penalty. File tax extension free   IRS may assess an “averaged” failure-to-deposit penalty of 2% to 10% if you are a monthly schedule depositor and did not properly complete Form 943, line 17, when your tax liability shown on Form 943, line 11, was $2,500 or more. File tax extension free IRS may also assess this penalty of 2% to 10% if you are a semiweekly schedule depositor and your tax liability shown on Form 943, line 11, was $2,500 or more and you did any of the following. File tax extension free Completed Form 943, line 17, instead of Form 943-A. File tax extension free Failed to attach a properly completed Form 943-A. File tax extension free Completed Form 943-A incorrectly, for example, by entering tax deposits instead of tax liabilities in the numbered spaces. File tax extension free   IRS figures the penalty by allocating your tax liability on Form 943, line 11, equally throughout the tax period. File tax extension free Your deposits and payments may not be counted as timely because IRS does not know the actual dates of your tax liabilities. File tax extension free   You can avoid the penalty by reviewing your return before filing it. File tax extension free Follow these steps before filing your Form 943. File tax extension free If you are a monthly schedule depositor, report your tax liabilities (not your deposits) in the monthly entry spaces on Form 943, line 17. File tax extension free If you are a semiweekly schedule depositor, report your tax liabilities (not your deposits) on Form 943-A in the lines that represent the dates you paid your employees. File tax extension free Verify that your total liability shown on Form 943, line 17, or Form 943-A, line M, equals your tax liability shown on Form 943, line 11. File tax extension free Do not show negative amounts on Form 943, line 17, or Form 943-A. File tax extension free For prior period errors discovered after December 31, 2008, do not adjust your tax liabilities reported on Form 943, line 17, or on Form 943-A. File tax extension free Employers of Both Farm and Nonfarm Workers If you employ both farm and nonfarm workers, you must treat employment taxes for the farmworkers (Form 943 taxes) separately from employment taxes for the nonfarm workers (Form 941 and 944 taxes). File tax extension free Form 943 taxes and Form 941/944 taxes are not combined for purposes of applying any of the deposit schedule rules. File tax extension free If a deposit is due, deposi