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Form 1040ez 2011

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Form 1040ez 2011

Form 1040ez 2011 12. Form 1040ez 2011   Other Income Table of Contents Introduction Useful Items - You may want to see: Bartering Canceled DebtsInterest included in canceled debt. Form 1040ez 2011 Exceptions Host or Hostess Life Insurance ProceedsSurviving spouse. Form 1040ez 2011 Endowment Contract Proceeds Accelerated Death Benefits Public Safety Officer Killed in the Line of Duty Partnership Income S Corporation Income RecoveriesItemized Deduction Recoveries Rents from Personal Property RepaymentsMethod 1. Form 1040ez 2011 Method 2. Form 1040ez 2011 RoyaltiesDepletion. Form 1040ez 2011 Coal and iron ore. Form 1040ez 2011 Sale of property interest. Form 1040ez 2011 Part of future production sold. Form 1040ez 2011 Unemployment BenefitsTypes of unemployment compensation. Form 1040ez 2011 Governmental program. Form 1040ez 2011 Repayment of unemployment compensation. Form 1040ez 2011 Tax withholding. Form 1040ez 2011 Repayment of benefits. Form 1040ez 2011 Welfare and Other Public Assistance Benefits Other IncomeEmotional distress. Form 1040ez 2011 Deduction for costs involved in unlawful discrimination suits. Form 1040ez 2011 Energy conservation measure. Form 1040ez 2011 Dwelling unit. Form 1040ez 2011 Current income required to be distributed. Form 1040ez 2011 Current income not required to be distributed. Form 1040ez 2011 How to report. Form 1040ez 2011 Losses. Form 1040ez 2011 Grantor trust. Form 1040ez 2011 Nonemployee compensation. Form 1040ez 2011 Corporate director. Form 1040ez 2011 Personal representatives. Form 1040ez 2011 Manager of trade or business for bankruptcy estate. Form 1040ez 2011 Notary public. Form 1040ez 2011 Election precinct official. Form 1040ez 2011 Difficulty-of-care payments. Form 1040ez 2011 Maintaining space in home. Form 1040ez 2011 Reporting taxable payments. Form 1040ez 2011 Lotteries and raffles. Form 1040ez 2011 Form W-2G. Form 1040ez 2011 Reporting winnings and recordkeeping. Form 1040ez 2011 Inherited pension or IRA. Form 1040ez 2011 Employee awards or bonuses. Form 1040ez 2011 Pulitzer, Nobel, and similar prizes. Form 1040ez 2011 Payment for services. Form 1040ez 2011 VA payments. Form 1040ez 2011 Prizes. Form 1040ez 2011 Strike and lockout benefits. Form 1040ez 2011 Introduction You must include on your return all items of income you receive in the form of money, property, and services unless the tax law states that you do not include them. Form 1040ez 2011 Some items, however, are only partly excluded from income. Form 1040ez 2011 This chapter discusses many kinds of income and explains whether they are taxable or nontaxable. Form 1040ez 2011 Income that is taxable must be reported on your tax return and is subject to tax. Form 1040ez 2011 Income that is nontaxable may have to be shown on your tax return but is not taxable. Form 1040ez 2011 This chapter begins with discussions of the following income items. Form 1040ez 2011 Bartering. Form 1040ez 2011 Canceled debts. Form 1040ez 2011 Sales parties at which you are the host or hostess. Form 1040ez 2011 Life insurance proceeds. Form 1040ez 2011 Partnership income. Form 1040ez 2011 S Corporation income. Form 1040ez 2011 Recoveries (including state income tax refunds). Form 1040ez 2011 Rents from personal property. Form 1040ez 2011 Repayments. Form 1040ez 2011 Royalties. Form 1040ez 2011 Unemployment benefits. Form 1040ez 2011 Welfare and other public assistance benefits. Form 1040ez 2011 These discussions are followed by brief discussions of other income items. Form 1040ez 2011 Useful Items - You may want to see: Publication 525 Taxable and Nontaxable Income 544 Sales and Other Dispositions of Assets 4681 Canceled Debts, Foreclosures, Repossessions, and Abandonments Bartering Bartering is an exchange of property or services. Form 1040ez 2011 You must include in your income, at the time received, the fair market value of property or services you receive in bartering. Form 1040ez 2011 If you exchange services with another person and you both have agreed ahead of time on the value of the services, that value will be accepted as fair market value unless the value can be shown to be otherwise. Form 1040ez 2011 Generally, you report this income on Schedule C (Form 1040), Profit or Loss From Business, or Schedule C-EZ (Form 1040), Net Profit From Business. Form 1040ez 2011 However, if the barter involves an exchange of something other than services, such as in Example 3 below, you may have to use another form or schedule instead. Form 1040ez 2011 Example 1. Form 1040ez 2011 You are a self-employed attorney who performs legal services for a client, a small corporation. Form 1040ez 2011 The corporation gives you shares of its stock as payment for your services. Form 1040ez 2011 You must include the fair market value of the shares in your income on Schedule C (Form 1040) or Schedule C-EZ (Form 1040) in the year you receive them. Form 1040ez 2011 Example 2. Form 1040ez 2011 You are self-employed and a member of a barter club. Form 1040ez 2011 The club uses “credit units” as a means of exchange. Form 1040ez 2011 It adds credit units to your account for goods or services you provide to members, which you can use to purchase goods or services offered by other members of the barter club. Form 1040ez 2011 The club subtracts credit units from your account when you receive goods or services from other members. Form 1040ez 2011 You must include in your income the value of the credit units that are added to your account, even though you may not actually receive goods or services from other members until a later tax year. Form 1040ez 2011 Example 3. Form 1040ez 2011 You own a small apartment building. Form 1040ez 2011 In return for 6 months rent-free use of an apartment, an artist gives you a work of art she created. Form 1040ez 2011 You must report as rental income on Schedule E (Form 1040), Supplemental Income and Loss, the fair market value of the artwork, and the artist must report as income on Schedule C (Form 1040) or Schedule C-EZ (Form 1040) the fair rental value of the apartment. Form 1040ez 2011 Form 1099-B from barter exchange. Form 1040ez 2011   If you exchanged property or services through a barter exchange, Form 1099-B, Proceeds From Broker and Barter Exchange Transactions, or a similar statement from the barter exchange should be sent to you by February 18, 2014. Form 1040ez 2011 It should show the value of cash, property, services, credits, or scrip you received from exchanges during 2013. Form 1040ez 2011 The IRS also will receive a copy of Form 1099-B. Form 1040ez 2011 Canceled Debts In most cases, if a debt you owe is canceled or forgiven, other than as a gift or bequest, you must include the canceled amount in your income. Form 1040ez 2011 You have no income from the canceled debt if it is intended as a gift to you. Form 1040ez 2011 A debt includes any indebtedness for which you are liable or which attaches to property you hold. Form 1040ez 2011 If the debt is a nonbusiness debt, report the canceled amount on Form 1040, line 21. Form 1040ez 2011 If it is a business debt, report the amount on Schedule C (Form 1040) or Schedule C-EZ (Form 1040) (or on Schedule F (Form 1040), Profit or Loss From Farming, if the debt is farm debt and you are a farmer). Form 1040ez 2011 Form 1099-C. Form 1040ez 2011   If a Federal Government agency, financial institution, or credit union cancels or forgives a debt you owe of $600 or more, you will receive a Form 1099-C, Cancellation of Debt. Form 1040ez 2011 The amount of the canceled debt is shown in box 2. Form 1040ez 2011 Interest included in canceled debt. Form 1040ez 2011   If any interest is forgiven and included in the amount of canceled debt in box 2, the amount of interest also will be shown in box 3. Form 1040ez 2011 Whether or not you must include the interest portion of the canceled debt in your income depends on whether the interest would be deductible when you paid it. Form 1040ez 2011 See Deductible debt under Exceptions, later. Form 1040ez 2011   If the interest would not be deductible (such as interest on a personal loan), include in your income the amount from Form 1099-C, box 2. Form 1040ez 2011 If the interest would be deductible (such as on a business loan), include in your income the net amount of the canceled debt (the amount shown in box 2 less the interest amount shown in box 3). Form 1040ez 2011 Discounted mortgage loan. Form 1040ez 2011   If your financial institution offers a discount for the early payment of your mortgage loan, the amount of the discount is canceled debt. Form 1040ez 2011 You must include the canceled amount in your income. Form 1040ez 2011 Mortgage relief upon sale or other disposition. Form 1040ez 2011   If you are personally liable for a mortgage (recourse debt), and you are relieved of the mortgage when you dispose of the property, you may realize gain or loss up to the fair market value of the property. Form 1040ez 2011 To the extent the mortgage discharge exceeds the fair market value of the property, it is income from discharge of indebtedness unless it qualifies for exclusion under Excluded debt , later. Form 1040ez 2011 Report any income from discharge of indebtedness on nonbusiness debt that does not qualify for exclusion as other income on Form 1040, line 21. Form 1040ez 2011    You may be able to exclude part of the mortgage relief on your principal residence. Form 1040ez 2011 See Excluded debt, later. Form 1040ez 2011   If you are not personally liable for a mortgage (nonrecourse debt), and you are relieved of the mortgage when you dispose of the property (such as through foreclosure), that relief is included in the amount you realize. Form 1040ez 2011 You may have a taxable gain if the amount you realize exceeds your adjusted basis in the property. Form 1040ez 2011 Report any gain on nonbusiness property as a capital gain. Form 1040ez 2011   See Publication 4681 for more information. Form 1040ez 2011 Stockholder debt. Form 1040ez 2011   If you are a stockholder in a corporation and the corporation cancels or forgives your debt to it, the canceled debt is a constructive distribution that is generally dividend income to you. Form 1040ez 2011 For more information, see Publication 542, Corporations. Form 1040ez 2011   If you are a stockholder in a corporation and you cancel a debt owed to you by the corporation, you generally do not realize income. Form 1040ez 2011 This is because the canceled debt is considered as a contribution to the capital of the corporation equal to the amount of debt principal that you canceled. Form 1040ez 2011 Repayment of canceled debt. Form 1040ez 2011   If you included a canceled amount in your income and later pay the debt, you may be able to file a claim for refund for the year the amount was included in income. Form 1040ez 2011 You can file a claim on Form 1040X if the statute of limitations for filing a claim is still open. Form 1040ez 2011 The statute of limitations generally does not end until 3 years after the due date of your original return. Form 1040ez 2011 Exceptions There are several exceptions to the inclusion of canceled debt in income. Form 1040ez 2011 These are explained next. Form 1040ez 2011 Student loans. Form 1040ez 2011   Certain student loans contain a provision that all or part of the debt incurred to attend the qualified educational institution will be canceled if you work for a certain period of time in certain professions for any of a broad class of employers. Form 1040ez 2011   You do not have income if your student loan is canceled after you agreed to this provision and then performed the services required. Form 1040ez 2011 To qualify, the loan must have been made by: The Federal Government, a state or local government, or an instrumentality, agency, or subdivision thereof, A tax-exempt public benefit corporation that has assumed control of a state, county, or municipal hospital, and whose employees are considered public employees under state law, or An educational institution: Under an agreement with an entity described in (1) or (2) that provided the funds to the institution to make the loan, or As part of a program of the institution designed to encourage its students to serve in occupations with unmet needs or in areas with unmet needs and under which the services provided by the students (or former students) are for or under the direction of a governmental unit or a tax-exempt organization described in section 501(c)(3). Form 1040ez 2011   A loan to refinance a qualified student loan also will qualify if it was made by an educational institution or a qualified tax-exempt organization under its program designed as described in (3)(b) above. Form 1040ez 2011 Education loan repayment assistance. Form 1040ez 2011   Education loan repayments made to you by the National Health Service Corps Loan Repayment Program (NHSC Loan Repayment Program), a state education loan repayment program eligible for funds under the Public Health Service Act, or any other state loan repayment or loan forgiveness program that is intended to provide for the increased availability of health services in underserved or health professional shortage areas are not taxable. Form 1040ez 2011    The provision relating to the “other state loan repayment or loan forgiveness program” was added to this exclusion for amounts received in tax years beginning after December 31, 2008. Form 1040ez 2011 If you included these amounts in income in 2010, 2011, or 2012, you should file an amended tax return to exclude this income. Form 1040ez 2011 See Form 1040X and its instructions for details on filing. Form 1040ez 2011 Deductible debt. Form 1040ez 2011   You do not have income from the cancellation of a debt if your payment of the debt would be deductible. Form 1040ez 2011 This exception applies only if you use the cash method of accounting. Form 1040ez 2011 For more information, see chapter 5 of Publication 334, Tax Guide for Small Business. Form 1040ez 2011 Price reduced after purchase. Form 1040ez 2011   In most cases, if the seller reduces the amount of debt you owe for property you purchased, you do not have income from the reduction. Form 1040ez 2011 The reduction of the debt is treated as a purchase price adjustment and reduces your basis in the property. Form 1040ez 2011 Excluded debt. Form 1040ez 2011   Do not include a canceled debt in your gross income in the following situations. Form 1040ez 2011 The debt is canceled in a bankruptcy case under title 11 of the U. Form 1040ez 2011 S. Form 1040ez 2011 Code. Form 1040ez 2011 See Publication 908, Bankruptcy Tax Guide. Form 1040ez 2011 The debt is canceled when you are insolvent. Form 1040ez 2011 However, you cannot exclude any amount of canceled debt that is more than the amount by which you are insolvent. Form 1040ez 2011 See Publication 908. Form 1040ez 2011 The debt is qualified farm debt and is canceled by a qualified person. Form 1040ez 2011 See chapter 3 of Publication 225, Farmer's Tax Guide. Form 1040ez 2011 The debt is qualified real property business debt. Form 1040ez 2011 See chapter 5 of Publication 334. Form 1040ez 2011 The cancellation is intended as a gift. Form 1040ez 2011 The debt is qualified principal residence indebtedness. Form 1040ez 2011 See Publication 525 for additional information. Form 1040ez 2011 Host or Hostess If you host a party or event at which sales are made, any gift or gratuity you receive for giving the event is a payment for helping a direct seller make sales. Form 1040ez 2011 You must report this item as income at its fair market value. Form 1040ez 2011 Your out-of-pocket party expenses are subject to the 50% limit for meal and entertainment expenses. Form 1040ez 2011 These expenses are deductible as miscellaneous itemized deductions subject to the 2%-of-AGI limit on Schedule A (Form 1040), but only up to the amount of income you receive for giving the party. Form 1040ez 2011 For more information about the 50% limit for meal and entertainment expenses, see chapter 26. Form 1040ez 2011 Life Insurance Proceeds Life insurance proceeds paid to you because of the death of the insured person are not taxable unless the policy was turned over to you for a price. Form 1040ez 2011 This is true even if the proceeds were paid under an accident or health insurance policy or an endowment contract. Form 1040ez 2011 However, interest income received as a result of life insurance proceeds may be taxable. Form 1040ez 2011 Proceeds not received in installments. Form 1040ez 2011   If death benefits are paid to you in a lump sum or other than at regular intervals, include in your income only the benefits that are more than the amount payable to you at the time of the insured person's death. Form 1040ez 2011 If the benefit payable at death is not specified, you include in your income the benefit payments that are more than the present value of the payments at the time of death. Form 1040ez 2011 Proceeds received in installments. Form 1040ez 2011   If you receive life insurance proceeds in installments, you can exclude part of each installment from your income. Form 1040ez 2011   To determine the excluded part, divide the amount held by the insurance company (generally the total lump sum payable at the death of the insured person) by the number of installments to be paid. Form 1040ez 2011 Include anything over this excluded part in your income as interest. Form 1040ez 2011 Surviving spouse. Form 1040ez 2011   If your spouse died before October 23, 1986, and insurance proceeds paid to you because of the death of your spouse are received in installments, you can exclude up to $1,000 a year of the interest included in the installments. Form 1040ez 2011 If you remarry, you can continue to take the exclusion. Form 1040ez 2011 Surrender of policy for cash. Form 1040ez 2011   If you surrender a life insurance policy for cash, you must include in income any proceeds that are more than the cost of the life insurance policy. Form 1040ez 2011 In most cases, your cost (or investment in the contract) is the total of premiums that you paid for the life insurance policy, less any refunded premiums, rebates, dividends, or unrepaid loans that were not included in your income. Form 1040ez 2011    You should receive a Form 1099-R showing the total proceeds and the taxable part. Form 1040ez 2011 Report these amounts on lines 16a and 16b of Form 1040 or lines 12a and 12b of Form 1040A. Form 1040ez 2011 More information. Form 1040ez 2011   For more information, see Life Insurance Proceeds in Publication 525. Form 1040ez 2011 Endowment Contract Proceeds An endowment contract is a policy under which you are paid a specified amount of money on a certain date unless you die before that date, in which case, the money is paid to your designated beneficiary. Form 1040ez 2011 Endowment proceeds paid in a lump sum to you at maturity are taxable only if the proceeds are more than the cost of the policy. Form 1040ez 2011 To determine your cost, subtract any amount that you previously received under the contract and excluded from your income from the total premiums (or other consideration) paid for the contract. Form 1040ez 2011 Include the part of the lump sum payment that is more than your cost in your income. Form 1040ez 2011 Accelerated Death Benefits Certain amounts paid as accelerated death benefits under a life insurance contract or viatical settlement before the insured's death are excluded from income if the insured is terminally or chronically ill. Form 1040ez 2011 Viatical settlement. Form 1040ez 2011   This is the sale or assignment of any part of the death benefit under a life insurance contract to a viatical settlement provider. Form 1040ez 2011 A viatical settlement provider is a person who regularly engages in the business of buying or taking assignment of life insurance contracts on the lives of insured individuals who are terminally or chronically ill and who meets the requirements of section 101(g)(2)(B) of the Internal Revenue Code. Form 1040ez 2011 Exclusion for terminal illness. Form 1040ez 2011    Accelerated death benefits are fully excludable if the insured is a terminally ill individual. Form 1040ez 2011 This is a person who has been certified by a physician as having an illness or physical condition that can reasonably be expected to result in death within 24 months from the date of the certification. Form 1040ez 2011 Exclusion for chronic illness. Form 1040ez 2011    If the insured is a chronically ill individual who is not terminally ill, accelerated death benefits paid on the basis of costs incurred for qualified long-term care services are fully excludable. Form 1040ez 2011 Accelerated death benefits paid on a per diem or other periodic basis are excludable up to a limit. Form 1040ez 2011 This limit applies to the total of the accelerated death benefits and any periodic payments received from long-term care insurance contracts. Form 1040ez 2011 For information on the limit and the definitions of chronically ill individual, qualified long-term care services, and long-term care insurance contracts, see Long-Term Care Insurance Contracts under Sickness and Injury Benefits in Publication 525. Form 1040ez 2011 Exception. Form 1040ez 2011   The exclusion does not apply to any amount paid to a person (other than the insured) who has an insurable interest in the life of the insured because the insured: Is a director, officer, or employee of the person, or Has a financial interest in the person's business. Form 1040ez 2011 Form 8853. Form 1040ez 2011   To claim an exclusion for accelerated death benefits made on a per diem or other periodic basis, you must file Form 8853, Archer MSAs and Long-Term Care Insurance Contracts, with your return. Form 1040ez 2011 You do not have to file Form 8853 to exclude accelerated death benefits paid on the basis of actual expenses incurred. Form 1040ez 2011 Public Safety Officer Killed in the Line of Duty If you are a survivor of a public safety officer who was killed in the line of duty, you may be able to exclude from income certain amounts you receive. Form 1040ez 2011 For this purpose, the term public safety officer includes law enforcement officers, firefighters, chaplains, and rescue squad and ambulance crew members. Form 1040ez 2011 For more information, see Publication 559, Survivors, Executors, and Administrators. Form 1040ez 2011 Partnership Income A partnership generally is not a taxable entity. Form 1040ez 2011 The income, gains, losses, deductions, and credits of a partnership are passed through to the partners based on each partner's distributive share of these items. Form 1040ez 2011 Schedule K-1 (Form 1065). Form 1040ez 2011    Although a partnership generally pays no tax, it must file an information return on Form 1065, U. Form 1040ez 2011 S. Form 1040ez 2011 Return of Partnership Income, and send Schedule K-1 (Form 1065) to each partner. Form 1040ez 2011 In addition, the partnership will send each partner a copy of the Partner's Instructions for Schedule K-1 (Form 1065) to help each partner report his or her share of the partnership's income, deductions, credits, and tax preference items. Form 1040ez 2011 Keep Schedule K-1 (Form 1065) for your records. Form 1040ez 2011 Do not attach it to your Form 1040, unless you are specifically required to do so. Form 1040ez 2011 For more information on partnerships, see Publication 541, Partnerships. Form 1040ez 2011 Qualified joint venture. Form 1040ez 2011   If you and your spouse each materially participate as the only members of a jointly owned and operated business, and you file a joint return for the tax year, you can make a joint election to be treated as a qualified joint venture instead of a partnership. Form 1040ez 2011 To make this election, you must divide all items of income, gain, loss, deduction, and credit attributable to the business between you and your spouse in accordance with your respective interests in the venture. Form 1040ez 2011 For further information on how to make the election and which schedule(s) to file, see the instructions for your individual tax return. Form 1040ez 2011 S Corporation Income In most cases, an S corporation does not pay tax on its income. Form 1040ez 2011 Instead, the income, losses, deductions, and credits of the corporation are passed through to the shareholders based on each shareholder's pro rata share. Form 1040ez 2011 Schedule K-1 (Form 1120S). Form 1040ez 2011   An S corporation must file a return on Form 1120S, U. Form 1040ez 2011 S. Form 1040ez 2011 Income Tax Return for an S Corporation, and send Schedule K-1 (Form 1120S) to each shareholder. Form 1040ez 2011 In addition, the S corporation will send each shareholder a copy of the Shareholder's Instructions for Schedule K-1 (Form 1120S) to help each shareholder report his or her share of the S corporation's income, losses, credits, and deductions. Form 1040ez 2011 Keep Schedule K-1 (Form 1120S) for your records. Form 1040ez 2011 Do not attach it to your Form 1040, unless you are specifically required to do so. Form 1040ez 2011 For more information on S corporations and their shareholders, see the Instructions for Form 1120S. Form 1040ez 2011 Recoveries A recovery is a return of an amount you deducted or took a credit for in an earlier year. Form 1040ez 2011 The most common recoveries are refunds, reimbursements, and rebates of deductions itemized on Schedule A (Form 1040). Form 1040ez 2011 You also may have recoveries of non-itemized deductions (such as payments on previously deducted bad debts) and recoveries of items for which you previously claimed a tax credit. Form 1040ez 2011 Tax benefit rule. Form 1040ez 2011   You must include a recovery in your income in the year you receive it up to the amount by which the deduction or credit you took for the recovered amount reduced your tax in the earlier year. Form 1040ez 2011 For this purpose, any increase to an amount carried over to the current year that resulted from the deduction or credit is considered to have reduced your tax in the earlier year. Form 1040ez 2011 For more information, see Publication 525. Form 1040ez 2011 Federal income tax refund. Form 1040ez 2011   Refunds of federal income taxes are not included in your income because they are never allowed as a deduction from income. Form 1040ez 2011 State tax refund. Form 1040ez 2011   If you received a state or local income tax refund (or credit or offset) in 2013, you generally must include it in income if you deducted the tax in an earlier year. Form 1040ez 2011 The payer should send Form 1099-G, Certain Government Payments, to you by January 31, 2014. Form 1040ez 2011 The IRS also will receive a copy of the Form 1099-G. Form 1040ez 2011 If you file Form 1040, use the State and Local Income Tax Refund Worksheet in the 2013 Form 1040 instructions for line 10 to figure the amount (if any) to include in your income. Form 1040ez 2011 See Publication 525 for when you must use another worksheet. Form 1040ez 2011   If you could choose to deduct for a tax year either: State and local income taxes, or State and local general sales taxes, then the maximum refund that you may have to include in income is limited to the excess of the tax you chose to deduct for that year over the tax you did not choose to deduct for that year. Form 1040ez 2011 For examples, see Publication 525. Form 1040ez 2011 Mortgage interest refund. Form 1040ez 2011    If you received a refund or credit in 2013 of mortgage interest paid in an earlier year, the amount should be shown in box 3 of your Form 1098, Mortgage Interest Statement. Form 1040ez 2011 Do not subtract the refund amount from the interest you paid in 2013. Form 1040ez 2011 You may have to include it in your income under the rules explained in the following discussions. Form 1040ez 2011 Interest on recovery. Form 1040ez 2011   Interest on any of the amounts you recover must be reported as interest income in the year received. Form 1040ez 2011 For example, report any interest you received on state or local income tax refunds on Form 1040, line 8a. Form 1040ez 2011 Recovery and expense in same year. Form 1040ez 2011   If the refund or other recovery and the expense occur in the same year, the recovery reduces the deduction or credit and is not reported as income. Form 1040ez 2011 Recovery for 2 or more years. Form 1040ez 2011   If you receive a refund or other recovery that is for amounts you paid in 2 or more separate years, you must allocate, on a pro rata basis, the recovered amount between the years in which you paid it. Form 1040ez 2011 This allocation is necessary to determine the amount of recovery from any earlier years and to determine the amount, if any, of your allowable deduction for this item for the current year. Form 1040ez 2011 For information on how to compute the allocation, see Recoveries in Publication 525. Form 1040ez 2011 Itemized Deduction Recoveries If you recover any amount that you deducted in an earlier year on Schedule A (Form 1040), you generally must include the full amount of the recovery in your income in the year you receive it. Form 1040ez 2011 Where to report. Form 1040ez 2011   Enter your state or local income tax refund on Form 1040, line 10, and the total of all other recoveries as other income on Form 1040, line 21. Form 1040ez 2011 You cannot use Form 1040A or Form 1040EZ. Form 1040ez 2011 Standard deduction limit. Form 1040ez 2011   You generally are allowed to claim the standard deduction if you do not itemize your deductions. Form 1040ez 2011 Only your itemized deductions that are more than your standard deduction are subject to the recovery rule (unless you are required to itemize your deductions). Form 1040ez 2011 If your total deductions on the earlier year return were not more than your income for that year, include in your income this year the lesser of: Your recoveries, or The amount by which your itemized deductions exceeded the standard deduction. Form 1040ez 2011 Example. Form 1040ez 2011 For 2012, you filed a joint return. Form 1040ez 2011 Your taxable income was $60,000 and you were not entitled to any tax credits. Form 1040ez 2011 Your standard deduction was $11,900, and you had itemized deductions of $14,000. Form 1040ez 2011 In 2013, you received the following recoveries for amounts deducted on your 2012 return: Medical expenses $200 State and local income tax refund 400 Refund of mortgage interest 325 Total recoveries $925 None of the recoveries were more than the deductions taken for 2012. Form 1040ez 2011 The difference between the state and local income tax you deducted and your local general sales tax was more than $400. Form 1040ez 2011 Your total recoveries are less than the amount by which your itemized deductions exceeded the standard deduction ($14,000 − 11,900 = $2,100), so you must include your total recoveries in your income for 2013. Form 1040ez 2011 Report the state and local income tax refund of $400 on Form 1040, line 10, and the balance of your recoveries, $525, on Form 1040, line 21. Form 1040ez 2011 Standard deduction for earlier years. Form 1040ez 2011   To determine if amounts recovered in 2013 must be included in your income, you must know the standard deduction for your filing status for the year the deduction was claimed. Form 1040ez 2011 Look in the instructions for your tax return from prior years to locate the standard deduction for the filing status for that prior year. Form 1040ez 2011 Example. Form 1040ez 2011 You filed a joint return on Form 1040 for 2012 with taxable income of $45,000. Form 1040ez 2011 Your itemized deductions were $12,350. Form 1040ez 2011 The standard deduction that you could have claimed was $11,900. Form 1040ez 2011 In 2013, you recovered $2,100 of your 2012 itemized deductions. Form 1040ez 2011 None of the recoveries were more than the actual deductions for 2012. Form 1040ez 2011 Include $450 of the recoveries in your 2013 income. Form 1040ez 2011 This is the smaller of your recoveries ($2,100) or the amount by which your itemized deductions were more than the standard deduction ($12,350 − $11,900 = $450). Form 1040ez 2011 Recovery limited to deduction. Form 1040ez 2011   You do not include in your income any amount of your recovery that is more than the amount you deducted in the earlier year. Form 1040ez 2011 The amount you include in your income is limited to the smaller of: The amount deducted on Schedule A (Form 1040), or The amount recovered. Form 1040ez 2011 Example. Form 1040ez 2011 During 2012 you paid $1,700 for medical expenses. Form 1040ez 2011 From this amount you subtracted $1,500, which was 7. Form 1040ez 2011 5% of your adjusted gross income. Form 1040ez 2011 Your actual medical expense deduction was $200. Form 1040ez 2011 In 2013, you received a $500 reimbursement from your medical insurance for your 2012 expenses. Form 1040ez 2011 The only amount of the $500 reimbursement that must be included in your income for 2013 is $200—the amount actually deducted. Form 1040ez 2011 Other recoveries. Form 1040ez 2011   See Recoveries in Publication 525 if: You have recoveries of items other than itemized deductions, or You received a recovery for an item for which you claimed a tax credit (other than investment credit or foreign tax credit) in a prior year. Form 1040ez 2011 Rents from Personal Property If you rent out personal property, such as equipment or vehicles, how you report your income and expenses is in most cases determined by: Whether or not the rental activity is a business, and Whether or not the rental activity is conducted for profit. Form 1040ez 2011 In most cases, if your primary purpose is income or profit and you are involved in the rental activity with continuity and regularity, your rental activity is a business. Form 1040ez 2011 See Publication 535, Business Expenses, for details on deducting expenses for both business and not-for-profit activities. Form 1040ez 2011 Reporting business income and expenses. Form 1040ez 2011    If you are in the business of renting personal property, report your income and expenses on Schedule C or Schedule C-EZ (Form 1040). Form 1040ez 2011 The form instructions have information on how to complete them. Form 1040ez 2011 Reporting nonbusiness income. Form 1040ez 2011   If you are not in the business of renting personal property, report your rental income on Form 1040, line 21. Form 1040ez 2011 List the type and amount of the income on the dotted line next to line 21. Form 1040ez 2011 Reporting nonbusiness expenses. Form 1040ez 2011   If you rent personal property for profit, include your rental expenses in the total amount you enter on Form 1040, line 36. Form 1040ez 2011 Also enter the amount and “PPR” on the dotted line next to line 36. Form 1040ez 2011   If you do not rent personal property for profit, your deductions are limited and you cannot report a loss to offset other income. Form 1040ez 2011 See Activity not for profit , under Other Income, later. Form 1040ez 2011 Repayments If you had to repay an amount that you included in your income in an earlier year, you may be able to deduct the amount repaid from your income for the year in which you repaid it. Form 1040ez 2011 Or, if the amount you repaid is more than $3,000, you may be able to take a credit against your tax for the year in which you repaid it. Form 1040ez 2011 Generally, you can claim a deduction or credit only if the repayment qualifies as an expense or loss incurred in your trade or business or in a for-profit transaction. Form 1040ez 2011 Type of deduction. Form 1040ez 2011   The type of deduction you are allowed in the year of repayment depends on the type of income you included in the earlier year. Form 1040ez 2011 You generally deduct the repayment on the same form or schedule on which you previously reported it as income. Form 1040ez 2011 For example, if you reported it as self-employment income, deduct it as a business expense on Schedule C or Schedule C-EZ (Form 1040) or Schedule F (Form 1040). Form 1040ez 2011 If you reported it as a capital gain, deduct it as a capital loss as explained in the Instructions for Schedule D (Form 1040). Form 1040ez 2011 If you reported it as wages, unemployment compensation, or other nonbusiness income, deduct it as a miscellaneous itemized deduction on Schedule A (Form 1040). Form 1040ez 2011 Repaid social security benefits. Form 1040ez 2011   If you repaid social security benefits or equivalent railroad retirement benefits, see Repayment of benefits in chapter 11. Form 1040ez 2011 Repayment of $3,000 or less. Form 1040ez 2011   If the amount you repaid was $3,000 or less, deduct it from your income in the year you repaid it. Form 1040ez 2011 If you must deduct it as a miscellaneous itemized deduction, enter it on Schedule A (Form 1040), line 23. Form 1040ez 2011 Repayment over $3,000. Form 1040ez 2011   If the amount you repaid was more than $3,000, you can deduct the repayment (as explained under Type of deduction , earlier). Form 1040ez 2011 However, you can choose instead to take a tax credit for the year of repayment if you included the income under a claim of right. Form 1040ez 2011 This means that at the time you included the income, it appeared that you had an unrestricted right to it. Form 1040ez 2011 If you qualify for this choice, figure your tax under both methods and compare the results. Form 1040ez 2011 Use the method (deduction or credit) that results in less tax. Form 1040ez 2011 When determining whether the amount you repaid was more or less than $3,000, consider the total amount being repaid on the return. Form 1040ez 2011 Each instance of repayment is not considered separately. Form 1040ez 2011 Method 1. Form 1040ez 2011   Figure your tax for 2013 claiming a deduction for the repaid amount. Form 1040ez 2011 If you must deduct it as a miscellaneous itemized deduction, enter it on Schedule A (Form 1040), line 28. Form 1040ez 2011 Method 2. Form 1040ez 2011   Figure your tax for 2013 claiming a credit for the repaid amount. Form 1040ez 2011 Follow these steps. Form 1040ez 2011 Figure your tax for 2013 without deducting the repaid amount. Form 1040ez 2011 Refigure your tax from the earlier year without including in income the amount you repaid in 2013. Form 1040ez 2011 Subtract the tax in (2) from the tax shown on your return for the earlier year. Form 1040ez 2011 This is the credit. Form 1040ez 2011 Subtract the answer in (3) from the tax for 2013 figured without the deduction (Step 1). Form 1040ez 2011   If method 1 results in less tax, deduct the amount repaid. Form 1040ez 2011 If method 2 results in less tax, claim the credit figured in (3) above on Form 1040, line 71, by adding the amount of the credit to any other credits on this line, and entering “I. Form 1040ez 2011 R. Form 1040ez 2011 C. Form 1040ez 2011 1341” in the column to the right of line 71. Form 1040ez 2011   An example of this computation can be found in Publication 525. Form 1040ez 2011 Repaid wages subject to social security and Medicare taxes. Form 1040ez 2011   If you had to repay an amount that you included in your wages or compensation in an earlier year on which social security, Medicare, or tier 1 RRTA taxes were paid, ask your employer to refund the excess amount to you. Form 1040ez 2011 If the employer refuses to refund the taxes, ask for a statement indicating the amount of the overcollection to support your claim. Form 1040ez 2011 File a claim for refund using Form 843, Claim for Refund and Request for Abatement. Form 1040ez 2011 Repaid wages subject to Additional Medicare Tax. Form 1040ez 2011   Employers cannot make an adjustment or file a claim for refund for Additional Medicare Tax withholding when there is a repayment of wages received by an employee in a prior year because the employee determines liability for Additional Medicare Tax on the employee's income tax return for the prior year. Form 1040ez 2011 If you had to repay an amount that you included in your wages or compensation in an earlier year, and on which Additional Medicare Tax was paid, you may be able to recover the Additional Medicare Tax paid on the amount. Form 1040ez 2011 To recover Additional Medicare Tax on the repaid wages or compensation, you must file Form 1040X, Amended U. Form 1040ez 2011 S. Form 1040ez 2011 Individual Income Tax Return, for the prior year in which the wages or compensation were originally received. Form 1040ez 2011 See the Instructions for Form 1040X. Form 1040ez 2011 Royalties Royalties from copyrights, patents, and oil, gas, and mineral properties are taxable as ordinary income. Form 1040ez 2011 In most cases you report royalties in Part I of Schedule E (Form 1040). Form 1040ez 2011 However, if you hold an operating oil, gas, or mineral interest or are in business as a self-employed writer, inventor, artist, etc. Form 1040ez 2011 , report your income and expenses on Schedule C or Schedule C-EZ (Form 1040). Form 1040ez 2011 Copyrights and patents. Form 1040ez 2011   Royalties from copyrights on literary, musical, or artistic works, and similar property, or from patents on inventions, are amounts paid to you for the right to use your work over a specified period of time. Form 1040ez 2011 Royalties generally are based on the number of units sold, such as the number of books, tickets to a performance, or machines sold. Form 1040ez 2011 Oil, gas, and minerals. Form 1040ez 2011   Royalty income from oil, gas, and mineral properties is the amount you receive when natural resources are extracted from your property. Form 1040ez 2011 The royalties are based on units, such as barrels, tons, etc. Form 1040ez 2011 , and are paid to you by a person or company who leases the property from you. Form 1040ez 2011 Depletion. Form 1040ez 2011   If you are the owner of an economic interest in mineral deposits or oil and gas wells, you can recover your investment through the depletion allowance. Form 1040ez 2011 For information on this subject, see chapter 9 of Publication 535. Form 1040ez 2011 Coal and iron ore. Form 1040ez 2011   Under certain circumstances, you can treat amounts you receive from the disposal of coal and iron ore as payments from the sale of a capital asset, rather than as royalty income. Form 1040ez 2011 For information about gain or loss from the sale of coal and iron ore, see Publication 544. Form 1040ez 2011 Sale of property interest. Form 1040ez 2011   If you sell your complete interest in oil, gas, or mineral rights, the amount you receive is considered payment for the sale of property used in a trade or business under section 1231, not royalty income. Form 1040ez 2011 Under certain circumstances, the sale is subject to capital gain or loss treatment as explained in the Instructions for Schedule D (Form 1040). Form 1040ez 2011 For more information on selling section 1231 property, see chapter 3 of Publication 544. Form 1040ez 2011   If you retain a royalty, an overriding royalty, or a net profit interest in a mineral property for the life of the property, you have made a lease or a sublease, and any cash you receive for the assignment of other interests in the property is ordinary income subject to a depletion allowance. Form 1040ez 2011 Part of future production sold. Form 1040ez 2011   If you own mineral property but sell part of the future production, in most cases you treat the money you receive from the buyer at the time of the sale as a loan from the buyer. Form 1040ez 2011 Do not include it in your income or take depletion based on it. Form 1040ez 2011   When production begins, you include all the proceeds in your income, deduct all the production expenses, and deduct depletion from that amount to arrive at your taxable income from the property. Form 1040ez 2011 Unemployment Benefits The tax treatment of unemployment benefits you receive depends on the type of program paying the benefits. Form 1040ez 2011 Unemployment compensation. Form 1040ez 2011   You must include in income all unemployment compensation you receive. Form 1040ez 2011 You should receive a Form 1099-G showing in box 1 the total unemployment compensation paid to you. Form 1040ez 2011 In most cases, you enter unemployment compensation on line 19 of Form 1040, line 13 of Form 1040A, or line 3 of Form 1040EZ. Form 1040ez 2011 Types of unemployment compensation. Form 1040ez 2011   Unemployment compensation generally includes any amount received under an unemployment compensation law of the United States or of a state. Form 1040ez 2011 It includes the following benefits. Form 1040ez 2011 Benefits paid by a state or the District of Columbia from the Federal Unemployment Trust Fund. Form 1040ez 2011 State unemployment insurance benefits. Form 1040ez 2011 Railroad unemployment compensation benefits. Form 1040ez 2011 Disability payments from a government program paid as a substitute for unemployment compensation. Form 1040ez 2011 (Amounts received as workers' compensation for injuries or illness are not unemployment compensation. Form 1040ez 2011 See chapter 5 for more information. Form 1040ez 2011 ) Trade readjustment allowances under the Trade Act of 1974. Form 1040ez 2011 Unemployment assistance under the Disaster Relief and Emergency Assistance Act. Form 1040ez 2011 Unemployment assistance under the Airline Deregulation Act of 1974 Program. Form 1040ez 2011 Governmental program. Form 1040ez 2011   If you contribute to a governmental unemployment compensation program and your contributions are not deductible, amounts you receive under the program are not included as unemployment compensation until you recover your contributions. Form 1040ez 2011 If you deducted all of your contributions to the program, the entire amount you receive under the program is included in your income. Form 1040ez 2011 Repayment of unemployment compensation. Form 1040ez 2011   If you repaid in 2013 unemployment compensation you received in 2013, subtract the amount you repaid from the total amount you received and enter the difference on line 19 of Form 1040, line 13 of Form 1040A, or line 3 of Form 1040EZ. Form 1040ez 2011 On the dotted line next to your entry enter “Repaid” and the amount you repaid. Form 1040ez 2011 If you repaid unemployment compensation in 2013 that you included in income in an earlier year, you can deduct the amount repaid on Schedule A (Form 1040), line 23, if you itemize deductions. Form 1040ez 2011 If the amount is more than $3,000, see Repayments , earlier. Form 1040ez 2011 Tax withholding. Form 1040ez 2011   You can choose to have federal income tax withheld from your unemployment compensation. Form 1040ez 2011 To make this choice, complete Form W-4V, Voluntary Withholding Request, and give it to the paying office. Form 1040ez 2011 Tax will be withheld at 10% of your payment. Form 1040ez 2011    If you do not choose to have tax withheld from your unemployment compensation, you may be liable for estimated tax. Form 1040ez 2011 If you do not pay enough tax, either through withholding or estimated tax, or a combination of both, you may have to pay a penalty. Form 1040ez 2011 For more information on estimated tax, see chapter 4. Form 1040ez 2011 Supplemental unemployment benefits. Form 1040ez 2011   Benefits received from an employer-financed fund (to which the employees did not contribute) are not unemployment compensation. Form 1040ez 2011 They are taxable as wages and are subject to withholding for income tax. Form 1040ez 2011 They may be subject to social security and Medicare taxes. Form 1040ez 2011 For more information, see Supplemental Unemployment Benefits in section 5 of Publication 15-A, Employer's Supplemental Tax Guide. Form 1040ez 2011 Report these payments on line 7 of Form 1040 or Form 1040A or on line 1 of Form 1040EZ. Form 1040ez 2011 Repayment of benefits. Form 1040ez 2011   You may have to repay some of your supplemental unemployment benefits to qualify for trade readjustment allowances under the Trade Act of 1974. Form 1040ez 2011 If you repay supplemental unemployment benefits in the same year you receive them, reduce the total benefits by the amount you repay. Form 1040ez 2011 If you repay the benefits in a later year, you must include the full amount of the benefits received in your income for the year you received them. Form 1040ez 2011   Deduct the repayment in the later year as an adjustment to gross income on Form 1040. Form 1040ez 2011 (You cannot use Form 1040A or Form 1040EZ. Form 1040ez 2011 ) Include the repayment on Form 1040, line 36, and enter “Sub-Pay TRA” and the amount on the dotted line next to line 36. Form 1040ez 2011 If the amount you repay in a later year is more than $3,000, you may be able to take a credit against your tax for the later year instead of deducting the amount repaid. Form 1040ez 2011 For more information on this, see Repayments , earlier. Form 1040ez 2011 Private unemployment fund. Form 1040ez 2011   Unemployment benefit payments from a private (nonunion) fund to which you voluntarily contribute are taxable only if the amounts you receive are more than your total payments into the fund. Form 1040ez 2011 Report the taxable amount on Form 1040, line 21. Form 1040ez 2011 Payments by a union. Form 1040ez 2011   Benefits paid to you as an unemployed member of a union from regular union dues are included in your income on Form 1040, line 21. Form 1040ez 2011 However, if you contribute to a special union fund and your payments to the fund are not deductible, the unemployment benefits you receive from the fund are includible in your income only to the extent they are more than your contributions. Form 1040ez 2011 Guaranteed annual wage. Form 1040ez 2011   Payments you receive from your employer during periods of unemployment, under a union agreement that guarantees you full pay during the year, are taxable as wages. Form 1040ez 2011 Include them on line 7 of Form 1040 or Form 1040A or on line 1 of Form 1040EZ. Form 1040ez 2011 State employees. Form 1040ez 2011   Payments similar to a state's unemployment compensation may be made by the state to its employees who are not covered by the state's unemployment compensation law. Form 1040ez 2011 Although the payments are fully taxable, do not report them as unemployment compensation. Form 1040ez 2011 Report these payments on Form 1040, line 21. Form 1040ez 2011 Welfare and Other Public Assistance Benefits Do not include in your income governmental benefit payments from a public welfare fund based upon need, such as payments to blind individuals under a state public assistance law. Form 1040ez 2011 Payments from a state fund for the victims of crime should not be included in the victims' incomes if they are in the nature of welfare payments. Form 1040ez 2011 Do not deduct medical expenses that are reimbursed by such a fund. Form 1040ez 2011 You must include in your income any welfare payments that are compensation for services or that are obtained fraudulently. Form 1040ez 2011 Reemployment Trade Adjustment Assistance (RTAA) payments. Form 1040ez 2011   RTAA payments received from a state must be included in your income. Form 1040ez 2011 The state must send you Form 1099-G to advise you of the amount you should include in income. Form 1040ez 2011 The amount should be reported on Form 1040, line 21. Form 1040ez 2011 Persons with disabilities. Form 1040ez 2011   If you have a disability, you must include in income compensation you receive for services you perform unless the compensation is otherwise excluded. Form 1040ez 2011 However, you do not include in income the value of goods, services, and cash that you receive, not in return for your services, but for your training and rehabilitation because you have a disability. Form 1040ez 2011 Excludable amounts include payments for transportation and attendant care, such as interpreter services for the deaf, reader services for the blind, and services to help individuals with an intellectual disability do their work. Form 1040ez 2011 Disaster relief grants. Form 1040ez 2011    Do not include post-disaster grants received under the Robert T. Form 1040ez 2011 Stafford Disaster Relief and Emergency Assistance Act in your income if the grant payments are made to help you meet necessary expenses or serious needs for medical, dental, housing, personal property, transportation, child care, or funeral expenses. Form 1040ez 2011 Do not deduct casualty losses or medical expenses that are specifically reimbursed by these disaster relief grants. Form 1040ez 2011 If you have deducted a casualty loss for the loss of your personal residence and you later receive a disaster relief grant for the loss of the same residence, you may have to include part or all of the grant in your taxable income. Form 1040ez 2011 See Recoveries , earlier. Form 1040ez 2011 Unemployment assistance payments under the Act are taxable unemployment compensation. Form 1040ez 2011 See Unemployment compensation under Unemployment Benefits, earlier. Form 1040ez 2011 Disaster relief payments. Form 1040ez 2011   You can exclude from income any amount you receive that is a qualified disaster relief payment. Form 1040ez 2011 A qualified disaster relief payment is an amount paid to you: To reimburse or pay reasonable and necessary personal, family, living, or funeral expenses that result from a qualified disaster; To reimburse or pay reasonable and necessary expenses incurred for the repair or rehabilitation of your home or repair or replacement of its contents to the extent it is due to a qualified disaster; By a person engaged in the furnishing or sale of transportation as a common carrier because of the death or personal physical injuries incurred as a result of a qualified disaster; or By a federal, state, or local government, or agency, or instrumentality in connection with a qualified disaster in order to promote the general welfare. Form 1040ez 2011 You can exclude this amount only to the extent any expense it pays for is not paid for by insurance or otherwise. Form 1040ez 2011 The exclusion does not apply if you were a participant or conspirator in a terrorist action or a representative of one. Form 1040ez 2011   A qualified disaster is: A disaster which results from a terrorist or military action; A federally declared disaster; or A disaster which results from an accident involving a common carrier, or from any other event, which is determined to be catastrophic by the Secretary of the Treasury or his or her delegate. Form 1040ez 2011   For amounts paid under item (4), a disaster is qualified if it is determined by an applicable federal, state, or local authority to warrant assistance from the federal, state, or local government, agency, or instrumentality. Form 1040ez 2011 Disaster mitigation payments. Form 1040ez 2011   You also can exclude from income any amount you receive that is a qualified disaster mitigation payment. Form 1040ez 2011 Qualified disaster mitigation payments are also most commonly paid to you in the period immediately following damage to property as a result of a natural disaster. Form 1040ez 2011 However, disaster mitigation payments are used to mitigate (reduce the severity of) potential damage from future natural disasters. Form 1040ez 2011 They are paid to you through state and local governments based on the provisions of the Robert T. Form 1040ez 2011 Stafford Disaster Relief and Emergency Assistance Act or the National Flood Insurance Act. Form 1040ez 2011   You cannot increase the basis or adjusted basis of your property for improvements made with nontaxable disaster mitigation payments. Form 1040ez 2011 Home Affordable Modification Program (HAMP). Form 1040ez 2011   If you benefit from Pay-for-Performance Success Payments under HAMP, the payments are not taxable. Form 1040ez 2011 Mortgage assistance payments under section 235 of the National Housing Act. Form 1040ez 2011   Payments made under section 235 of the National Housing Act for mortgage assistance are not included in the homeowner's income. Form 1040ez 2011 Interest paid for the homeowner under the mortgage assistance program cannot be deducted. Form 1040ez 2011 Medicare. Form 1040ez 2011   Medicare benefits received under title XVIII of the Social Security Act are not includible in the gross income of the individuals for whom they are paid. Form 1040ez 2011 This includes basic (part A (Hospital Insurance Benefits for the Aged)) and supplementary (part B (Supplementary Medical Insurance Benefits for the Aged)). Form 1040ez 2011 Old-age, survivors, and disability insurance benefits (OASDI). Form 1040ez 2011   Generally, OASDI payments under section 202 of title II of the Social Security Act are not includible in the gross income of the individuals to whom they are paid. Form 1040ez 2011 This applies to old-age insurance benefits, and insurance benefits for wives, husbands, children, widows, widowers, mothers and fathers, and parents, as well as the lump-sum death payment. Form 1040ez 2011 Nutrition Program for the Elderly. Form 1040ez 2011    Food benefits you receive under the Nutrition Program for the Elderly are not taxable. Form 1040ez 2011 If you prepare and serve free meals for the program, include in your income as wages the cash pay you receive, even if you are also eligible for food benefits. Form 1040ez 2011 Payments to reduce cost of winter energy. Form 1040ez 2011   Payments made by a state to qualified people to reduce their cost of winter energy use are not taxable. Form 1040ez 2011 Other Income The following brief discussions are arranged in alphabetical order. Form 1040ez 2011 Other income items briefly discussed below are referenced to publications which provide more topical information. Form 1040ez 2011 Activity not for profit. Form 1040ez 2011   You must include on your return income from an activity from which you do not expect to make a profit. Form 1040ez 2011 An example of this type of activity is a hobby or a farm you operate mostly for recreation and pleasure. Form 1040ez 2011 Enter this income on Form 1040, line 21. Form 1040ez 2011 Deductions for expenses related to the activity are limited. Form 1040ez 2011 They cannot total more than the income you report and can be taken only if you itemize deductions on Schedule A (Form 1040). Form 1040ez 2011 See Not-for-Profit Activities in chapter 1 of Publication 535 for information on whether an activity is considered carried on for a profit. Form 1040ez 2011 Alaska Permanent Fund dividend. Form 1040ez 2011   If you received a payment from Alaska's mineral income fund (Alaska Permanent Fund dividend), report it as income on line 21 of Form 1040, line 13 of Form 1040A, or line 3 of Form 1040EZ. Form 1040ez 2011 The state of Alaska sends each recipient a document that shows the amount of the payment with the check. Form 1040ez 2011 The amount also is reported to IRS. Form 1040ez 2011 Alimony. Form 1040ez 2011   Include in your income on Form 1040, line 11, any alimony payments you receive. Form 1040ez 2011 Amounts you receive for child support are not income to you. Form 1040ez 2011 Alimony and child support payments are discussed in chapter 18. Form 1040ez 2011 Bribes. Form 1040ez 2011   If you receive a bribe, include it in your income. Form 1040ez 2011 Campaign contributions. Form 1040ez 2011   These contributions are not income to a candidate unless they are diverted to his or her personal use. Form 1040ez 2011 To be exempt from tax, the contributions must be spent for campaign purposes or kept in a fund for use in future campaigns. Form 1040ez 2011 However, interest earned on bank deposits, dividends received on contributed securities, and net gains realized on sales of contributed securities are taxable and must be reported on Form 1120-POL, U. Form 1040ez 2011 S. Form 1040ez 2011 Income Tax Return for Certain Political Organizations. Form 1040ez 2011 Excess campaign funds transferred to an office account must be included in the officeholder's income on Form 1040, line 21, in the year transferred. Form 1040ez 2011 Car pools. Form 1040ez 2011   Do not include in your income amounts you receive from the passengers for driving a car in a car pool to and from work. Form 1040ez 2011 These amounts are considered reimbursement for your expenses. Form 1040ez 2011 However, this rule does not apply if you have developed car pool arrangements into a profit-making business of transporting workers for hire. Form 1040ez 2011 Cash rebates. Form 1040ez 2011   A cash rebate you receive from a dealer or manufacturer of an item you buy is not income, but you must reduce your basis by the amount of the rebate. Form 1040ez 2011 Example. Form 1040ez 2011 You buy a new car for $24,000 cash and receive a $2,000 rebate check from the manufacturer. Form 1040ez 2011 The $2,000 is not income to you. Form 1040ez 2011 Your basis in the car is $22,000. Form 1040ez 2011 This is the basis on which you figure gain or loss if you sell the car and depreciation if you use it for business. Form 1040ez 2011 Casualty insurance and other reimbursements. Form 1040ez 2011   You generally should not report these reimbursements on your return unless you are figuring gain or loss from the casualty or theft. Form 1040ez 2011 See chapter 25 for more information. Form 1040ez 2011 Child support payments. Form 1040ez 2011   You should not report these payments on your return. Form 1040ez 2011 See chapter 18 for more information. Form 1040ez 2011 Court awards and damages. Form 1040ez 2011   To determine if settlement amounts you receive by compromise or judgment must be included in your income, you must consider the item that the settlement replaces. Form 1040ez 2011 The character of the income as ordinary income or capital gain depends on the nature of the underlying claim. Form 1040ez 2011 Include the following as ordinary income. Form 1040ez 2011 Interest on any award. Form 1040ez 2011 Compensation for lost wages or lost profits in most cases. Form 1040ez 2011 Punitive damages, in most cases. Form 1040ez 2011 It does not matter if they relate to a physical injury or physical sickness. Form 1040ez 2011 Amounts received in settlement of pension rights (if you did not contribute to the plan). Form 1040ez 2011 Damages for: Patent or copyright infringement, Breach of contract, or Interference with business operations. Form 1040ez 2011 Back pay and damages for emotional distress received to satisfy a claim under title VII of the Civil Rights Act of 1964. Form 1040ez 2011 Attorney fees and costs (including contingent fees) where the underlying recovery is included in gross income. Form 1040ez 2011   Do not include in your income compensatory damages for personal physical injury or physical sickness (whether received in a lump sum or installments). Form 1040ez 2011 Emotional distress. Form 1040ez 2011   Emotional distress itself is not a physical injury or physical sickness, but damages you receive for emotional distress due to a physical injury or sickness are treated as received for the physical injury or sickness. Form 1040ez 2011 Do not include them in your income. Form 1040ez 2011   If the emotional distress is due to a personal injury that is not due to a physical injury or sickness (for example, employment discrimination or injury to reputation), you must include the damages in your income, except for any damages you receive for medical care due to that emotional distress. Form 1040ez 2011 Emotional distress includes physical symptoms that result from emotional distress, such as headaches, insomnia, and stomach disorders. Form 1040ez 2011 Deduction for costs involved in unlawful discrimination suits. Form 1040ez 2011   You may be able to deduct attorney fees and court costs paid to recover a judgment or settlement for a claim of unlawful discrimination under various provisions of federal, state, and local law listed in Internal Revenue Code section 62(e), a claim against the United States government, or a claim under section 1862(b)(3)(A) of the Social Security Act. Form 1040ez 2011 For more information, see Publication 525. Form 1040ez 2011 Credit card insurance. Form 1040ez 2011   In most cases, if you receive benefits under a credit card disability or unemployment insurance plan, the benefits are taxable to you. Form 1040ez 2011 These plans make the minimum monthly payment on your credit card account if you cannot make the payment due to injury, illness, disability, or unemployment. Form 1040ez 2011 Report on Form 1040, line 21, the amount of benefits you received during the year that is more than the amount of the premiums you paid during the year. Form 1040ez 2011 Down payment assistance. Form 1040ez 2011   If you purchase a home and receive assistance from a nonprofit corporation to make the down payment, that assistance is not included in your income. Form 1040ez 2011 If the corporation qualifies as a tax-exempt charitable organization, the assistance is treated as a gift and is included in your basis of the house. Form 1040ez 2011 If the corporation does not qualify, the assistance is treated as a rebate or reduction of the purchase price and is not included in your basis. Form 1040ez 2011 Employment agency fees. Form 1040ez 2011   If you get a job through an employment agency, and the fee is paid by your employer, the fee is not includible in your income if you are not liable for it. Form 1040ez 2011 However, if you pay it and your employer reimburses you for it, it is includible in your income. Form 1040ez 2011 Energy conservation subsidies. Form 1040ez 2011   You can exclude from gross income any subsidy provided, either directly or indirectly, by public utilities for the purchase or installation of an energy conservation measure for a dwelling unit. Form 1040ez 2011 Energy conservation measure. Form 1040ez 2011   This includes installations or modifications that are primarily designed to reduce consumption of electricity or natural gas, or improve the management of energy demand. Form 1040ez 2011 Dwelling unit. Form 1040ez 2011   This includes a house, apartment, condominium, mobile home, boat, or similar property. Form 1040ez 2011 If a building or structure contains both dwelling and other units, any subsidy must be properly allocated. Form 1040ez 2011 Estate and trust income. Form 1040ez 2011    An estate or trust, unlike a partnership, may have to pay federal income tax. Form 1040ez 2011 If you are a beneficiary of an estate or trust, you may be taxed on your share of its income distributed or required to be distributed to you. Form 1040ez 2011 However, there is never a double tax. Form 1040ez 2011 Estates and trusts file their returns on Form 1041, U. Form 1040ez 2011 S. Form 1040ez 2011 Income Tax Return for Estates and Trusts, and your share of the income is reported to you on Schedule K-1 (Form 1041). Form 1040ez 2011 Current income required to be distributed. Form 1040ez 2011   If you are the beneficiary of an estate or trust that must distribute all of its current income, you must report your share of the distributable net income, whether or not you actually received it. Form 1040ez 2011 Current income not required to be distributed. Form 1040ez 2011    If you are the beneficiary of an estate or trust and the fiduciary has the choice of whether to distribute all or part of the current income, you must report: All income that is required to be distributed to you, whether or not it is actually distributed, plus All other amounts actually paid or credited to you, up to the amount of your share of distributable net income. Form 1040ez 2011 How to report. Form 1040ez 2011   Treat each item of income the same way that the estate or trust would treat it. Form 1040ez 2011 For example, if a trust's dividend income is distributed to you, you report the distribution as dividend income on your return. Form 1040ez 2011 The same rule applies to distributions of tax-exempt interest and capital gains. Form 1040ez 2011   The fiduciary of the estate or trust must tell you the type of items making up your share of the estate or trust income and any credits you are allowed on your individual income tax return. Form 1040ez 2011 Losses. Form 1040ez 2011   Losses of estates and trusts generally are not deductible by the beneficiaries. Form 1040ez 2011 Grantor trust. Form 1040ez 2011   Income earned by a grantor trust is taxable to the grantor, not the beneficiary, if the grantor keeps certain control over the trust. Form 1040ez 2011 (The grantor is the one who transferred property to the trust. Form 1040ez 2011 ) This rule applies if the property (or income from the property) put into the trust will or may revert (be returned) to the grantor or the grantor's spouse. Form 1040ez 2011   Generally, a trust is a grantor trust if the grantor has a reversionary interest valued (at the date of transfer) at more than 5% of the value of the transferred property. Form 1040ez 2011 Expenses paid by another. Form 1040ez 2011   If your personal expenses are paid for by another person, such as a corporation, the payment may be taxable to you depending upon your relationship with that person and the nature of the payment. Form 1040ez 2011 But if the payment makes up for a loss caused by that person, and only restores you to the position you were in before the loss, the payment is not includible in your income. Form 1040ez 2011 Fees for services. Form 1040ez 2011   Include all fees for your services in your income. Form 1040ez 2011 Examples of these fees are amounts you receive for services you perform as: A corporate director, An executor, administrator, or personal representative of an estate, A manager of a trade or business you operated before declaring Chapter 11 bankruptcy, A notary public, or An election precinct official. Form 1040ez 2011 Nonemployee compensation. Form 1040ez 2011   If you are not an employee and the fees for your services from the same payer total $600 or more for the year, you may receive a Form 1099-MISC. Form 1040ez 2011 You may need to report your fees as self-employment income. Form 1040ez 2011 See Self-Employed Persons , in chapter 1, for a discussion of when you are considered self-employed. Form 1040ez 2011 Corporate director. Form 1040ez 2011   Corporate director fees are self-employment income. Form 1040ez 2011 Report these payments on Schedule C or Schedule C-EZ (Form 1040). Form 1040ez 2011 Personal representatives. Form 1040ez 2011   All personal representatives must include in their gross income fees paid to them from an estate. Form 1040ez 2011 If you are not in the trade or business of being an executor (for instance, you are the executor of a friend's or relative's estate), report these fees on Form 1040, line 21. Form 1040ez 2011 If you are in the trade or business of being an executor, report these fees as self-employment income on Schedule C or Schedule C-EZ (Form 1040). Form 1040ez 2011 The fee is not includible in income if it is waived. Form 1040ez 2011 Manager of trade or business for bankruptcy estate. Form 1040ez 2011   Include in your income all payments received from your bankruptcy estate for managing or operating a trade or business that you operated before you filed for bankruptcy. Form 1040ez 2011 Report this income on Form 1040, line 21. Form 1040ez 2011 Notary public. Form 1040ez 2011    Report payments for these services on Schedule C or Schedule C-EZ (Form 1040). Form 1040ez 2011 These payments are not subject to self-employment tax. Form 1040ez 2011 See the separate instructions for Schedule SE (Form 1040) for details. Form 1040ez 2011 Election precinct official. Form 1040ez 2011    You should receive a Form W-2 showing payments for services performed as an election official or election worker. Form 1040ez 2011 Report these payments on line 7 of Form 1040 or Form 1040A or on line 1 of Form 1040EZ. Form 1040ez 2011 Foster care providers. Form 1040ez 2011   Payments you receive from a state, political subdivision, or a qualified foster care placement agency for providing care to qualified foster individuals in your home generally are not included in your income. Form 1040ez 2011 However, you must include in your income payments received for the care of more than 5 individuals age 19 or older and certain difficulty-of-care payments. Form 1040ez 2011   A qualified foster individual is a person who: Is living in a foster family home, and Was placed there by: An agency of a state or one of its political subdivisions, or A qualified foster care placement agency. Form 1040ez 2011 Difficulty-of-care payments. Form 1040ez 2011   These are additional payments that are designated by the payer as compensation for providing the additional care that is required for physically, mentally, or emotionally handicapped qualified foster individuals. Form 1040ez 2011 A state must determine that the additional compensation is needed, and the care for which the payments are made must be provided in your home. Form 1040ez 2011   You must include in your income difficulty-of-care payments received for more than: 10 qualified foster individuals under age 19, or 5 qualified foster individuals age 19 or older. Form 1040ez 2011 Maintaining space in home. Form 1040ez 2011   If you are paid to maintain space in your home for emergency foster care, you must include the payment in your income. Form 1040ez 2011 Reporting taxable payments. Form 1040ez 2011    If you receive payments that you must include in your income, you are in business as a foster care provider and you are self-employed. Form 1040ez 2011 Report the payments on Schedule C or Schedule C-EZ (Form 1040). Form 1040ez 2011 See Publication 587, Business Use of Your Home, to help you determine the amount you can deduct for the use of your home. Form 1040ez 2011 Found property. Form 1040ez 2011   If you find and keep property that does not belong to you that has been lost or abandoned (treasure-trove), it is taxable to you at its fair market value in the first year it is your undisputed possession. Form 1040ez 2011 Free tour. Form 1040ez 2011   If you received a free tour from a travel agency for organizing a group of tourists, you must include its value in your income. Form 1040ez 2011 Report the fair market value of the tour on Form 1040, line 21, if you are not in the trade or business of organizing tours. Form 1040ez 2011 You cannot deduct your expenses in serving as the voluntary leader of the group at the group's request. Form 1040ez 2011 If you organize tours as a trade or business, report the tour's value on Schedule C or Schedule C-EZ (Form 1040). Form 1040ez 2011 Gambling winnings. Form 1040ez 2011   You must include your gambling winnings in income on Form 1040, line 21. Form 1040ez 2011 If you itemize your deductions on Schedule A (Form 1040), you can deduct gambling losses you had during the year, but only up to the amount of your winnings. Form 1040ez 2011 Lotteries and raffles. Form 1040ez 2011   Winnings from lotteries and raffles are gambling winnings. Form 1040ez 2011 In addition to cash winnings, you must include in your income the fair market value of bonds, cars, houses, and other noncash prizes. Form 1040ez 2011    If you win a state lottery prize payable in installments, see Publication 525 for more information. Form 1040ez 2011 Form W-2G. Form 1040ez 2011   You may have received a Form W-2G, Certain Gambling Winnings, showing the amount of your gambling winnings and any tax taken out of them. Form 1040ez 2011 Include the amount from box 1 on Form 1040, line 21. Form 1040ez 2011 Include the amount shown in box 4 on Form 1040, line 62, as federal income tax withheld. Form 1040ez 2011 Reporting winnings and recordkeeping. Form 1040ez 2011   For more information on reporting gam
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The Form 1040ez 2011

Form 1040ez 2011 Publication 926 - Main Content Table of Contents Do You Have a Household Employee? Can Your Employee Legally Work in the United States? Do You Need To Pay Employment Taxes?Social Security and Medicare Taxes Federal Unemployment (FUTA) Tax Do You Need To Withhold Federal Income Tax? What Do You Need To Know About the Earned Income Credit? How Do You Make Tax Payments? What Forms Must You File?Employee who leaves during the year. Form 1040ez 2011 Filing options when no return is required. Form 1040ez 2011 What Records Must You Keep? Can You Claim a Credit for Child and Dependent Care Expenses? How Can You Correct Schedule H?Adjust the overpayment. Form 1040ez 2011 Claim for refund process. Form 1040ez 2011 How To Get Tax HelpLow Income Taxpayer Clinics Do You Have a Household Employee? You have a household employee if you hired someone to do household work and that worker is your employee. Form 1040ez 2011 The worker is your employee if you can control not only what work is done, but how it is done. Form 1040ez 2011 If the worker is your employee, it does not matter whether the work is full time or part time or that you hired the worker through an agency or from a list provided by an agency or association. Form 1040ez 2011 It also does not matter whether you pay the worker on an hourly, daily, or weekly basis, or by the job. Form 1040ez 2011 Example. Form 1040ez 2011 You pay Betty Shore to babysit your child and do light housework 4 days a week in your home. Form 1040ez 2011 Betty follows your specific instructions about household and child care duties. Form 1040ez 2011 You provide the household equipment and supplies that Betty needs to do her work. Form 1040ez 2011 Betty is your household employee. Form 1040ez 2011 Household work. Form 1040ez 2011   Household work is work done in or around your home. Form 1040ez 2011 Some examples of workers who do household work are: Babysitters, Caretakers, House cleaning workers, Domestic workers, Drivers, Health aides, Housekeepers, Maids, Nannies, Private nurses, and Yard workers. Form 1040ez 2011 Workers who are not your employees. Form 1040ez 2011   If only the worker can control how the work is done, the worker is not your employee but is self-employed. Form 1040ez 2011 A self-employed worker usually provides his or her own tools and offers services to the general public in an independent business. Form 1040ez 2011   A worker who performs child care services for you in his or her home generally is not your employee. Form 1040ez 2011   If an agency provides the worker and controls what work is done and how it is done, the worker is not your employee. Form 1040ez 2011 Example. Form 1040ez 2011 You made an agreement with John Peters to care for your lawn. Form 1040ez 2011 John runs a lawn care business and offers his services to the general public. Form 1040ez 2011 He provides his own tools and supplies, and he hires and pays any helpers he needs. Form 1040ez 2011 Neither John nor his helpers are your household employees. Form 1040ez 2011 More information. Form 1040ez 2011   More information about who is an employee is in Publication 15-A, Employer's Supplemental Tax Guide. Form 1040ez 2011 Can Your Employee Legally Work in the United States? It is unlawful for you knowingly to hire or continue to employ an alien who cannot legally work in the United States. Form 1040ez 2011 When you hire a household employee to work for you on a regular basis, you and the employee must complete the U. Form 1040ez 2011 S. Form 1040ez 2011 Citizenship and Immigration Services (USCIS) Form I-9, Employment Eligibility Verification. Form 1040ez 2011 No later than the first day of work, the employee must complete the employee section of the form by providing certain required information and attesting to his or her current work eligibility status in the United States. Form 1040ez 2011 You must complete the employer section by examining documents presented by the employee as evidence of his or her identity and employment eligibility. Form 1040ez 2011 Acceptable documents to establish identity and employment eligibility are listed on Form I-9. Form 1040ez 2011 You should keep the completed Form I-9 in your own records. Form 1040ez 2011 Do not submit it to the IRS, the USCIS, or any other government or other entity. Form 1040ez 2011 The form must be kept available for review upon notice by an authorized U. Form 1040ez 2011 S. Form 1040ez 2011 Government official. Form 1040ez 2011 Two copies of Form I-9 are contained in the Handbook for Employers (Form M-274) published by the USCIS. Form 1040ez 2011 Call the USCIS at 1-800-870-3676 to order the Handbook for Employers; or you may download the handbook at www. Form 1040ez 2011 uscis. Form 1040ez 2011 gov. Form 1040ez 2011 If you have questions about the employment eligibility verification process or other immigration-related employment matters, contact the USCIS Office of Business Liaison at 1-800-357-2099. Form 1040ez 2011 You also can visit the USCIS website at www. Form 1040ez 2011 uscis. Form 1040ez 2011 gov to get Form I-9. Form 1040ez 2011 For more information, see Employee's Social Security Number (SSN) in Publication 15 (Circular E), Employer's Tax Guide. Form 1040ez 2011 Do You Need To Pay Employment Taxes? If you have a household employee, you may need to withhold and pay social security and Medicare taxes, pay federal unemployment tax, or both. Form 1040ez 2011 To find out, read Table 1. Form 1040ez 2011 You do not need to withhold federal income tax from your household employee's wages. Form 1040ez 2011 But if your employee asks you to withhold it, you can. Form 1040ez 2011 See Do You Need To Withhold Federal Income Tax, later. Form 1040ez 2011 If you need to pay social security, Medicare, or federal unemployment tax or choose to withhold federal income tax, read Table 2 for an overview of what you may need to do. Form 1040ez 2011 If you do not need to pay social security, Medicare, or federal unemployment tax and do not choose to withhold federal income tax, read State employment taxes, next. Form 1040ez 2011 The rest of this publication does not apply to you. Form 1040ez 2011 State employment taxes. Form 1040ez 2011   You should contact your state unemployment tax agency to find out whether you need to pay state unemployment tax for your household employee. Form 1040ez 2011 For a list of state unemployment tax agencies, visit the U. Form 1040ez 2011 S. Form 1040ez 2011 Department of Labor's website at www. Form 1040ez 2011 workforcesecurity. Form 1040ez 2011 doleta. Form 1040ez 2011 gov/unemploy/agencies. Form 1040ez 2011 asp. Form 1040ez 2011 You should also determine if you need to pay or collect other state employment taxes or carry workers' compensation insurance. Form 1040ez 2011    Table 1. Form 1040ez 2011 Do You Need To Pay Employment Taxes? IF you . Form 1040ez 2011 . Form 1040ez 2011 . Form 1040ez 2011 THEN you need to . Form 1040ez 2011 . Form 1040ez 2011 . Form 1040ez 2011 A– Pay cash wages of $1,900 or more in 2014 to any one household employee. Form 1040ez 2011 Withhold and pay social security and Medicare taxes. Form 1040ez 2011 The taxes are 15. Form 1040ez 2011 3%1 of cash wages. Form 1040ez 2011 Your employee's share is 7. Form 1040ez 2011 65%1. Form 1040ez 2011   (You can choose to pay it yourself and not withhold it. Form 1040ez 2011 ) Your share is 7. Form 1040ez 2011 65%. Form 1040ez 2011   Do not count wages you pay to— Your spouse, Your child under the age of 21, Your parent (see Wages not counted, later, for an exception), or Any employee under the age of 18 at any time in 2014 (see Wages not counted, later, for an exception). Form 1040ez 2011 B– Pay total cash wages of $1,000 or more in any calendar quarter of 2013 or 2014 to household employees. Form 1040ez 2011 Pay federal unemployment tax. Form 1040ez 2011 The tax is 6% of cash wages. Form 1040ez 2011 Wages over $7,000 a year per employee are not taxed. Form 1040ez 2011 You also may owe state unemployment tax. Form 1040ez 2011   Do not count wages you pay to— Your spouse, Your child under the age of 21, or Your parent. Form 1040ez 2011 1In addition to withholding Medicare tax at 1. Form 1040ez 2011 45%, you must withhold a 0. Form 1040ez 2011 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. Form 1040ez 2011 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. Form 1040ez 2011 Additional Medicare Tax is only imposed on the employee. Form 1040ez 2011 There is no employer share of Additional Medicare Tax. Form 1040ez 2011 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. Form 1040ez 2011 Note. Form 1040ez 2011 If neither A nor B above applies, you do not need to pay any federal employment taxes. Form 1040ez 2011 But you may still need to pay state employment taxes. Form 1040ez 2011 Table 2. Form 1040ez 2011 Household Employer's Checklist You may need to do the following things when you have a household employee. Form 1040ez 2011   When you hire a household employee: □ Find out if the person can legally work in the United States. Form 1040ez 2011  □ Find out if you need to pay state taxes. Form 1040ez 2011 When you pay your household employee: □ Withhold social security and Medicare taxes. Form 1040ez 2011  □ Withhold federal income tax. Form 1040ez 2011  □ Decide how you will make tax payments. Form 1040ez 2011  □ Keep records. Form 1040ez 2011 By February 2, 2015: □ Get an employer identification number (EIN). Form 1040ez 2011  □ Give your employee Copies B, C, and 2 of Form W-2, Wage and Tax Statement. Form 1040ez 2011 By March 2, 2015 (March 31, 2015, if you file Form W-2 electronically): □ Send Copy A of Form W-2 to the Social Security Administration (SSA). Form 1040ez 2011 By April 15, 2015: □ File Schedule H (Form 1040), Household Employment Taxes, with your 2014 federal income tax return (Form 1040, 1040NR, 1040-SS, or Form 1041). Form 1040ez 2011  If you do not have to file a return, file Schedule H by itself. Form 1040ez 2011 Social Security and Medicare Taxes The social security tax pays for old-age, survivors, and disability benefits for workers and their families. Form 1040ez 2011 The Medicare tax pays for hospital insurance. Form 1040ez 2011 Both you and your household employee may owe social security and Medicare taxes. Form 1040ez 2011 Your share is 7. Form 1040ez 2011 65% (6. Form 1040ez 2011 2% for social security tax and 1. Form 1040ez 2011 45% for Medicare tax) of the employee's social security and Medicare wages. Form 1040ez 2011 Your employee's share is also 7. Form 1040ez 2011 65% (6. Form 1040ez 2011 2% for social security tax and 1. Form 1040ez 2011 45% for Medicare tax). Form 1040ez 2011 In addition to withholding Medicare tax at 1. Form 1040ez 2011 45%, you must withhold a 0. Form 1040ez 2011 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. Form 1040ez 2011 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. Form 1040ez 2011 Additional Medicare Tax is only imposed on the employee. Form 1040ez 2011 There is no employer share of Additional Medicare Tax. Form 1040ez 2011 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. Form 1040ez 2011 For more information on Additional Medicare Tax, visit IRS. Form 1040ez 2011 gov and enter “Additional Medicare Tax” in the search box. Form 1040ez 2011 Generally, you can use Table 3 to figure the amount of social security and Medicare taxes to withhold from each wage payment. Form 1040ez 2011 You are responsible for payment of your employee's share of the taxes as well as your own. Form 1040ez 2011 You can either withhold your employee's share from the employee's wages or pay it from your own funds. Form 1040ez 2011 If you decide to pay the employee's share from your own funds, see Not withholding the employee's share, later. Form 1040ez 2011 Pay the taxes as discussed under How Do You Make Tax Payments, later. Form 1040ez 2011 Also, see What Forms Must You File, later. Form 1040ez 2011 Social security and Medicare wages. Form 1040ez 2011   You figure social security and Medicare taxes on the social security and Medicare wages you pay your employee. Form 1040ez 2011   If you pay your household employee cash wages of $1,900 or more in 2014, all cash wages you pay to that employee in 2014 (regardless of when the wages were earned) up to $117,000 are social security wages and all cash wages are Medicare wages. Form 1040ez 2011 However, any noncash wages you pay do not count as social security and Medicare wages. Form 1040ez 2011   If you pay the employee less than $1,900 in cash wages in 2014, none of the wages you pay the employee are social security or Medicare wages and neither you nor your employee will owe social security or Medicare tax on those wages. Form 1040ez 2011 Cash wages. Form 1040ez 2011   Cash wages include wages you pay by check, money order, etc. Form 1040ez 2011 Cash wages do not include the value of food, lodging, clothing, and other noncash items you give your household employee. Form 1040ez 2011 However, cash you give your employee in place of these items is included in cash wages. Form 1040ez 2011 State disability payments treated as wages. Form 1040ez 2011   Certain state disability plan payments that your household employee may receive are treated as social security and Medicare wages. Form 1040ez 2011 For more information about these payments, see the Instructions for Schedule H (Form 1040) and the notice issued by the state. Form 1040ez 2011 Wages not counted. Form 1040ez 2011   Do not count wages you pay to any of the following individuals as social security or Medicare wages, even if these wages are $1,900 or more during the year. Form 1040ez 2011 Your spouse. Form 1040ez 2011 Your child who is under the age of 21. Form 1040ez 2011 Your parent. Form 1040ez 2011 Exception: Count these wages if both the following conditions apply. Form 1040ez 2011 Your parent cares for your child who is either of the following. Form 1040ez 2011 Under the age of 18, or Has a physical or mental condition that requires the personal care of an adult for at least 4 continuous weeks in the calendar quarter services were performed. Form 1040ez 2011 Your marital status is one of the following. Form 1040ez 2011 You are divorced and have not remarried, You are a widow or widower, or You are living with a spouse whose physical or mental condition prevents him or her from caring for your child for at least 4 continuous weeks in the calendar quarter services were performed. Form 1040ez 2011 An employee who is under the age of 18 at any time during the year. Form 1040ez 2011 Exception: Count these wages if providing household services is the employee's principal occupation. Form 1040ez 2011 If the employee is a student, providing household services is not considered to be his or her principal occupation. Form 1040ez 2011 Also, if your employee's cash wages reach $117,000 (maximum wages subject to social security tax) in 2014, do not count any wages you pay that employee during the rest of the year as social security wages to figure social security tax. Form 1040ez 2011 Continue to count the employee's cash wages as Medicare wages to figure Medicare tax. Form 1040ez 2011 If you provide your employee transit passes to commute to your home, do not count the value of the transit passes (up to $130 per month for 2014) as wages. Form 1040ez 2011 A transit pass includes any pass, token, fare card, voucher, or similar item entitling a person to ride on mass transit, such as a bus or train. Form 1040ez 2011 If you provide your employee parking at or near your home or at or near a location from which your employee commutes to your home, do not count the value of parking (up to $250 per month for 2014) as wages. Form 1040ez 2011 If you reimburse your employee for transit passes or parking, you may be able to exclude the reimbursement amounts. Form 1040ez 2011 See Publication 15-B, Employer's Tax Guide to Fringe Benefits, for special requirements for this exclusion. Form 1040ez 2011 Withholding the employee's share. Form 1040ez 2011   You should withhold the employee's share of social security and Medicare taxes if you expect to pay your household employee cash wages of $1,900 or more in 2014. Form 1040ez 2011 However, if you prefer to pay the employee's share yourself, see Not withholding the employee's share, later. Form 1040ez 2011   You can withhold the employee's share of the taxes even if you are not sure your employee's cash wages will be $1,900 or more in 2014. Form 1040ez 2011 If you withhold the taxes but then actually pay the employee less than $1,900 in cash wages for the year, you should repay the employee. Form 1040ez 2011   Withhold 7. Form 1040ez 2011 65% (6. Form 1040ez 2011 2% for social security tax and 1. Form 1040ez 2011 45% for Medicare tax) from each payment of social security and Medicare wages. Form 1040ez 2011 Generally, you can use Table 3 to figure the proper amount to withhold. Form 1040ez 2011 You will pay the amount withheld to the IRS with your share of the taxes. Form 1040ez 2011 Do not withhold any social security tax after your employee's social security wages for the year reach $117,000. Form 1040ez 2011 Table 3. Form 1040ez 2011 Employee Social Security (6. Form 1040ez 2011 2%) and Medicare (1. Form 1040ez 2011 45%1) Tax Withholding Table (See Publication 15 (Circular E) for income tax withholding tables. Form 1040ez 2011 ) Use this table to figure the amount of social security and Medicare taxes to withhold from each wage payment. Form 1040ez 2011 For example, on a wage payment of $180, the employee social security tax is $11. Form 1040ez 2011 16 ($6. Form 1040ez 2011 20 tax on $100 plus $4. Form 1040ez 2011 96 on $80 wages). Form 1040ez 2011 The employee Medicare tax is $2. Form 1040ez 2011 61 ($1. Form 1040ez 2011 45 tax on $100 plus $1. Form 1040ez 2011 16 on $80 wages). Form 1040ez 2011 If wage payment is: The social security tax to be withheld is: The Medicare tax to be withheld is: If wage payment is: The social security tax to be withheld is: The Medicare tax to be withheld is: $ 1. Form 1040ez 2011 00 . Form 1040ez 2011 $ . Form 1040ez 2011 06 $ . Form 1040ez 2011 01 $ 51. Form 1040ez 2011 00 . Form 1040ez 2011 $ 3. Form 1040ez 2011 16 $ . Form 1040ez 2011 74 2. Form 1040ez 2011 00 . Form 1040ez 2011 . Form 1040ez 2011 12 . Form 1040ez 2011 03 52. Form 1040ez 2011 00 . Form 1040ez 2011 3. Form 1040ez 2011 22 . Form 1040ez 2011 75 3. Form 1040ez 2011 00 . Form 1040ez 2011 . Form 1040ez 2011 19 . Form 1040ez 2011 04 53. Form 1040ez 2011 00 . Form 1040ez 2011 3. Form 1040ez 2011 29 . Form 1040ez 2011 77 4. Form 1040ez 2011 00 . Form 1040ez 2011 . Form 1040ez 2011 25 . Form 1040ez 2011 06 54. Form 1040ez 2011 00 . Form 1040ez 2011 3. Form 1040ez 2011 35 . Form 1040ez 2011 78 5. Form 1040ez 2011 00 . Form 1040ez 2011 . Form 1040ez 2011 31 . Form 1040ez 2011 07 55. Form 1040ez 2011 00 . Form 1040ez 2011 3. Form 1040ez 2011 41 . Form 1040ez 2011 80 6. Form 1040ez 2011 00 . Form 1040ez 2011 . Form 1040ez 2011 37 . Form 1040ez 2011 09 56. Form 1040ez 2011 00 . Form 1040ez 2011 3. Form 1040ez 2011 47 . Form 1040ez 2011 81 7. Form 1040ez 2011 00 . Form 1040ez 2011 . Form 1040ez 2011 43 . Form 1040ez 2011 10 57. Form 1040ez 2011 00 . Form 1040ez 2011 3. Form 1040ez 2011 53 . Form 1040ez 2011 83 8. Form 1040ez 2011 00 . Form 1040ez 2011 . Form 1040ez 2011 50 . Form 1040ez 2011 12 58. Form 1040ez 2011 00 . Form 1040ez 2011 3. Form 1040ez 2011 60 . Form 1040ez 2011 84 9. Form 1040ez 2011 00 . Form 1040ez 2011 . Form 1040ez 2011 56 . Form 1040ez 2011 13 59. Form 1040ez 2011 00 . Form 1040ez 2011 3. Form 1040ez 2011 66 . Form 1040ez 2011 86 10. Form 1040ez 2011 00 . Form 1040ez 2011 . Form 1040ez 2011 62 . Form 1040ez 2011 15 60. Form 1040ez 2011 00 . Form 1040ez 2011 3. Form 1040ez 2011 72 . Form 1040ez 2011 87 11. Form 1040ez 2011 00 . Form 1040ez 2011 . Form 1040ez 2011 68 . Form 1040ez 2011 16 61. Form 1040ez 2011 00 . Form 1040ez 2011 3. Form 1040ez 2011 78 . Form 1040ez 2011 88 12. Form 1040ez 2011 00 . Form 1040ez 2011 . Form 1040ez 2011 74 . Form 1040ez 2011 17 62. Form 1040ez 2011 00 . Form 1040ez 2011 3. Form 1040ez 2011 84 . Form 1040ez 2011 90 13. Form 1040ez 2011 00 . Form 1040ez 2011 . Form 1040ez 2011 81 . Form 1040ez 2011 19 63. Form 1040ez 2011 00 . Form 1040ez 2011 3. Form 1040ez 2011 91 . Form 1040ez 2011 91 14. Form 1040ez 2011 00 . Form 1040ez 2011 . Form 1040ez 2011 87 . Form 1040ez 2011 20 64. Form 1040ez 2011 00 . Form 1040ez 2011 3. Form 1040ez 2011 97 . Form 1040ez 2011 93 15. Form 1040ez 2011 00 . Form 1040ez 2011 . Form 1040ez 2011 93 . Form 1040ez 2011 22 65. Form 1040ez 2011 00 . Form 1040ez 2011 4. Form 1040ez 2011 03 . Form 1040ez 2011 94 16. Form 1040ez 2011 00 . Form 1040ez 2011 . Form 1040ez 2011 99 . Form 1040ez 2011 23 66. Form 1040ez 2011 00 . Form 1040ez 2011 4. Form 1040ez 2011 09 . Form 1040ez 2011 96 17. Form 1040ez 2011 00 . Form 1040ez 2011 1. Form 1040ez 2011 05 . Form 1040ez 2011 25 67. Form 1040ez 2011 00 . Form 1040ez 2011 4. Form 1040ez 2011 15 . Form 1040ez 2011 97 18. Form 1040ez 2011 00 . Form 1040ez 2011 1. Form 1040ez 2011 12 . Form 1040ez 2011 26 68. Form 1040ez 2011 00 . Form 1040ez 2011 4. Form 1040ez 2011 22 . Form 1040ez 2011 99 19. Form 1040ez 2011 00 . Form 1040ez 2011 1. Form 1040ez 2011 18 . Form 1040ez 2011 28 69. Form 1040ez 2011 00 . Form 1040ez 2011 4. Form 1040ez 2011 28 1. Form 1040ez 2011 00 20. Form 1040ez 2011 00 . Form 1040ez 2011 1. Form 1040ez 2011 24 . Form 1040ez 2011 29 70. Form 1040ez 2011 00 . Form 1040ez 2011 4. Form 1040ez 2011 34 1. Form 1040ez 2011 02 21. Form 1040ez 2011 00 . Form 1040ez 2011 1. Form 1040ez 2011 30 . Form 1040ez 2011 30 71. Form 1040ez 2011 00 . Form 1040ez 2011 4. Form 1040ez 2011 40 1. Form 1040ez 2011 03 22. Form 1040ez 2011 00 . Form 1040ez 2011 1. Form 1040ez 2011 36 . Form 1040ez 2011 32 72. Form 1040ez 2011 00 . Form 1040ez 2011 4. Form 1040ez 2011 46 1. Form 1040ez 2011 04 23. Form 1040ez 2011 00 . Form 1040ez 2011 1. Form 1040ez 2011 43 . Form 1040ez 2011 33 73. Form 1040ez 2011 00 . Form 1040ez 2011 4. Form 1040ez 2011 53 1. Form 1040ez 2011 06 24. Form 1040ez 2011 00 . Form 1040ez 2011 1. Form 1040ez 2011 49 . Form 1040ez 2011 35 74. Form 1040ez 2011 00 . Form 1040ez 2011 4. Form 1040ez 2011 59 1. Form 1040ez 2011 07 25. Form 1040ez 2011 00 . Form 1040ez 2011 1. Form 1040ez 2011 55 . Form 1040ez 2011 36 75. Form 1040ez 2011 00 . Form 1040ez 2011 4. Form 1040ez 2011 65 1. Form 1040ez 2011 09 26. Form 1040ez 2011 00 . Form 1040ez 2011 1. Form 1040ez 2011 61 . Form 1040ez 2011 38 76. Form 1040ez 2011 00 . Form 1040ez 2011 4. Form 1040ez 2011 71 1. Form 1040ez 2011 10 27. Form 1040ez 2011 00 . Form 1040ez 2011 1. Form 1040ez 2011 67 . Form 1040ez 2011 39 77. Form 1040ez 2011 00 . Form 1040ez 2011 4. Form 1040ez 2011 77 1. Form 1040ez 2011 12 28. Form 1040ez 2011 00 . Form 1040ez 2011 1. Form 1040ez 2011 74 . Form 1040ez 2011 41 78. Form 1040ez 2011 00 . Form 1040ez 2011 4. Form 1040ez 2011 84 1. Form 1040ez 2011 13 29. Form 1040ez 2011 00 . Form 1040ez 2011 1. Form 1040ez 2011 80 . Form 1040ez 2011 42 79. Form 1040ez 2011 00 . Form 1040ez 2011 4. Form 1040ez 2011 90 1. Form 1040ez 2011 15 30. Form 1040ez 2011 00 . Form 1040ez 2011 1. Form 1040ez 2011 86 . Form 1040ez 2011 44 80. Form 1040ez 2011 00 . Form 1040ez 2011 4. Form 1040ez 2011 96 1. Form 1040ez 2011 16 31. Form 1040ez 2011 00 . Form 1040ez 2011 1. Form 1040ez 2011 92 . Form 1040ez 2011 45 81. Form 1040ez 2011 00 . Form 1040ez 2011 5. Form 1040ez 2011 02 1. Form 1040ez 2011 17 32. Form 1040ez 2011 00 . Form 1040ez 2011 1. Form 1040ez 2011 98 . Form 1040ez 2011 46 82. Form 1040ez 2011 00 . Form 1040ez 2011 5. Form 1040ez 2011 08 1. Form 1040ez 2011 19 33. Form 1040ez 2011 00 . Form 1040ez 2011 2. Form 1040ez 2011 05 . Form 1040ez 2011 48 83. Form 1040ez 2011 00 . Form 1040ez 2011 5. Form 1040ez 2011 15 1. Form 1040ez 2011 20 34. Form 1040ez 2011 00 . Form 1040ez 2011 2. Form 1040ez 2011 11 . Form 1040ez 2011 49 84. Form 1040ez 2011 00 . Form 1040ez 2011 5. Form 1040ez 2011 21 1. Form 1040ez 2011 22 35. Form 1040ez 2011 00 . Form 1040ez 2011 2. Form 1040ez 2011 17 . Form 1040ez 2011 51 85. Form 1040ez 2011 00 . Form 1040ez 2011 5. Form 1040ez 2011 27 1. Form 1040ez 2011 23 36. Form 1040ez 2011 00 . Form 1040ez 2011 2. Form 1040ez 2011 23 . Form 1040ez 2011 52 86. Form 1040ez 2011 00 . Form 1040ez 2011 5. Form 1040ez 2011 33 1. Form 1040ez 2011 25 37. Form 1040ez 2011 00 . Form 1040ez 2011 2. Form 1040ez 2011 29 . Form 1040ez 2011 54 87. Form 1040ez 2011 00 . Form 1040ez 2011 5. Form 1040ez 2011 39 1. Form 1040ez 2011 26 38. Form 1040ez 2011 00 . Form 1040ez 2011 2. Form 1040ez 2011 36 . Form 1040ez 2011 55 88. Form 1040ez 2011 00 . Form 1040ez 2011 5. Form 1040ez 2011 46 1. Form 1040ez 2011 28 39. Form 1040ez 2011 00 . Form 1040ez 2011 2. Form 1040ez 2011 42 . Form 1040ez 2011 57 89. Form 1040ez 2011 00 . Form 1040ez 2011 5. Form 1040ez 2011 52 1. Form 1040ez 2011 29 40. Form 1040ez 2011 00 . Form 1040ez 2011 2. Form 1040ez 2011 48 . Form 1040ez 2011 58 90. Form 1040ez 2011 00 . Form 1040ez 2011 5. Form 1040ez 2011 58 1. Form 1040ez 2011 31 41. Form 1040ez 2011 00 . Form 1040ez 2011 2. Form 1040ez 2011 54 . Form 1040ez 2011 59 91. Form 1040ez 2011 00 . Form 1040ez 2011 5. Form 1040ez 2011 64 1. Form 1040ez 2011 32 42. Form 1040ez 2011 00 . Form 1040ez 2011 2. Form 1040ez 2011 60 . Form 1040ez 2011 61 92. Form 1040ez 2011 00 . Form 1040ez 2011 5. Form 1040ez 2011 70 1. Form 1040ez 2011 33 43. Form 1040ez 2011 00 . Form 1040ez 2011 2. Form 1040ez 2011 67 . Form 1040ez 2011 62 93. Form 1040ez 2011 00 . Form 1040ez 2011 5. Form 1040ez 2011 77 1. Form 1040ez 2011 35 44. Form 1040ez 2011 00 . Form 1040ez 2011 2. Form 1040ez 2011 73 . Form 1040ez 2011 64 94. Form 1040ez 2011 00 . Form 1040ez 2011 5. Form 1040ez 2011 83 1. Form 1040ez 2011 36 45. Form 1040ez 2011 00 . Form 1040ez 2011 2. Form 1040ez 2011 79 . Form 1040ez 2011 65 95. Form 1040ez 2011 00 . Form 1040ez 2011 5. Form 1040ez 2011 89 1. Form 1040ez 2011 38 46. Form 1040ez 2011 00 . Form 1040ez 2011 2. Form 1040ez 2011 85 . Form 1040ez 2011 67 96. Form 1040ez 2011 00 . Form 1040ez 2011 5. Form 1040ez 2011 95 1. Form 1040ez 2011 39 47. Form 1040ez 2011 00 . Form 1040ez 2011 2. Form 1040ez 2011 91 . Form 1040ez 2011 68 97. Form 1040ez 2011 00 . Form 1040ez 2011 6. Form 1040ez 2011 01 1. Form 1040ez 2011 41 48. Form 1040ez 2011 00 . Form 1040ez 2011 2. Form 1040ez 2011 98 . Form 1040ez 2011 70 98. Form 1040ez 2011 00 . Form 1040ez 2011 6. Form 1040ez 2011 08 1. Form 1040ez 2011 42 49. Form 1040ez 2011 00 . Form 1040ez 2011 3. Form 1040ez 2011 04 . Form 1040ez 2011 71 99. Form 1040ez 2011 00 . Form 1040ez 2011 6. Form 1040ez 2011 14 1. Form 1040ez 2011 44 50. Form 1040ez 2011 00 . Form 1040ez 2011 3. Form 1040ez 2011 10 . Form 1040ez 2011 73 100. Form 1040ez 2011 00 . Form 1040ez 2011 6. Form 1040ez 2011 20 1. Form 1040ez 2011 45 1In addition to withholding Medicare tax at 1. Form 1040ez 2011 45%, you must withhold a 0. Form 1040ez 2011 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. Form 1040ez 2011 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. Form 1040ez 2011 Additional Medicare Tax is only imposed on the employee. Form 1040ez 2011 There is no employer share of Additional Medicare Tax. Form 1040ez 2011 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. Form 1040ez 2011   If you make an error by withholding too little, you should withhold additional taxes from a later payment. Form 1040ez 2011 If you withhold too much, you should repay the employee. Form 1040ez 2011    In addition to withholding Medicare tax at 1. Form 1040ez 2011 45%, you must withhold a 0. Form 1040ez 2011 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. Form 1040ez 2011 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. Form 1040ez 2011 Additional Medicare Tax is only imposed on the employee. Form 1040ez 2011 There is no employer share of Additional Medicare Tax. Form 1040ez 2011 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. Form 1040ez 2011 For more information on Additional Medicare Tax, visit IRS. Form 1040ez 2011 gov and enter “Additional Medicare Tax” in the search box. Form 1040ez 2011 Example. Form 1040ez 2011 On February 13, 2014, Mary Brown hired Jane R. Form 1040ez 2011 Oak (who is an unrelated individual over age 18) to care for her child and agreed to pay cash wages of $50 every Friday. Form 1040ez 2011 Jane worked for the remainder of the year (a total of 46 weeks). Form 1040ez 2011 Mary did not give Jane a Form W-4 to request federal or state tax withholding. Form 1040ez 2011 The following is the information Mary will need to complete Schedule H, Form W-2, and Form W-3. Form 1040ez 2011 See the completed examples of Form W-2 and Form W-3 for 2014 at the end of this publication. Form 1040ez 2011 Total cash wages paid to Jane $2,300. Form 1040ez 2011 00 ($50 x 46 weeks)       Jane's share of:     Social security tax $142. Form 1040ez 2011 60 ($2,300 x 6. Form 1040ez 2011 2% (. Form 1040ez 2011 062))         Medicare tax $33. Form 1040ez 2011 35       ($2,300 x 1. Form 1040ez 2011 45% (. Form 1040ez 2011 0145)) Mary's share of:     Social security tax $142. Form 1040ez 2011 60  ($2,300 x 6. Form 1040ez 2011 2% (. Form 1040ez 2011 062))           Medicare tax $33. Form 1040ez 2011 35  ($2,300 x 1. Form 1040ez 2011 45% (. Form 1040ez 2011 0145)) Amount reported on Form W-2 and Form W-3:   Box 1:Wages, tips $2,300. Form 1040ez 2011 00   Box 4: Social security tax withheld 142. Form 1040ez 2011 60   Box 6: Medicare tax withheld 33. Form 1040ez 2011 35 For information on withholding and reporting federal income taxes, see Publication 15 (Circular E). Form 1040ez 2011 Not withholding the employee's share. Form 1040ez 2011   If you prefer to pay your employee's social security and Medicare taxes from your own funds, do not withhold them from your employee's wages. Form 1040ez 2011 The social security and Medicare taxes you pay to cover your employee's share must be included in the employee's wages for income tax purposes. Form 1040ez 2011 However, they are not counted as social security and Medicare wages or as federal unemployment (FUTA) wages. Form 1040ez 2011 Example. Form 1040ez 2011 In 2014 you hire a household employee (who is an unrelated individual over age 18) to care for your child and agree to pay cash wages of $100 every Friday. Form 1040ez 2011 You expect to pay your employee $1,900 or more for the year. Form 1040ez 2011 You decide to pay your employee's share of social security and Medicare taxes from your own funds. Form 1040ez 2011 You pay your employee $100 every Friday without withholding any social security or Medicare taxes. Form 1040ez 2011 For social security and Medicare tax purposes, your employee's wages each payday are $100. Form 1040ez 2011 For each wage payment, you will pay $15. Form 1040ez 2011 30 when you pay the taxes. Form 1040ez 2011 This is $7. Form 1040ez 2011 65 ($6. Form 1040ez 2011 20 for social security tax + $1. Form 1040ez 2011 45 for Medicare tax) to cover your employee's share plus $7. Form 1040ez 2011 65 ($6. Form 1040ez 2011 20 for social security tax + $1. Form 1040ez 2011 45 for Medicare tax) for your share. Form 1040ez 2011 For income tax purposes, your employee's wages each payday are $107. Form 1040ez 2011 65 ($100 + the $7. Form 1040ez 2011 65 you will pay to cover your employee's share of social security and Medicare taxes). Form 1040ez 2011 Federal Unemployment (FUTA) Tax The federal unemployment tax is part of the federal and state program under the Federal Unemployment Tax Act (FUTA) that pays unemployment compensation to workers who lose their jobs. Form 1040ez 2011 Like most employers, you may owe both the federal unemployment tax (the FUTA tax) and a state unemployment tax. Form 1040ez 2011 Or, you may owe only the FUTA tax or only the state unemployment tax. Form 1040ez 2011 To find out whether you will owe state unemployment tax, contact your state's unemployment tax agency. Form 1040ez 2011 For a list of state unemployment tax agencies, visit the U. Form 1040ez 2011 S. Form 1040ez 2011 Department of Labor's website at www. Form 1040ez 2011 workforcesecurity. Form 1040ez 2011 doleta. Form 1040ez 2011 gov/unemploy/agencies. Form 1040ez 2011 asp. Form 1040ez 2011 You should also find out if you need to pay or collect other state employment taxes or carry workers' compensation insurance. Form 1040ez 2011 The FUTA tax is 6. Form 1040ez 2011 0% of your employee's FUTA wages. Form 1040ez 2011 However, you may be able to take a credit of up to 5. Form 1040ez 2011 4% against the FUTA tax, resulting in a net tax rate of 0. Form 1040ez 2011 6%. Form 1040ez 2011 Your credit for 2014 is limited unless you pay all the required contributions for 2014 to your state unemployment fund by April 15, 2015. Form 1040ez 2011 The credit you can take for any contributions for 2014 that you pay after April 15, 2015, is limited to 90% of the credit that would have been allowable if the contributions were paid by April 15, 2015. Form 1040ez 2011 (If you did not pay all the required contributions for 2013 by April 15, 2014, see Credit for 2013, later. Form 1040ez 2011 ) Note. Form 1040ez 2011   If a due date falls on a Saturday, Sunday, or legal holiday, payments are considered timely if made by the next business day. Form 1040ez 2011 The term “legal holiday” means any legal holiday in the District of Columbia. Form 1040ez 2011 Pay the tax as discussed under How Do You Make Tax Payments, later. Form 1040ez 2011 Also, see What Forms Must You File, later. Form 1040ez 2011 Note. Form 1040ez 2011   The 5. Form 1040ez 2011 4% credit is reduced for wages paid in a credit reduction state. Form 1040ez 2011 See the Instructions for Schedule H (Form 1040). Form 1040ez 2011 Do not withhold the FUTA tax from your employee's wages. Form 1040ez 2011 You must pay it from your own funds. Form 1040ez 2011 FUTA wages. Form 1040ez 2011   Figure the FUTA tax on the FUTA wages you pay. Form 1040ez 2011 If you pay cash wages to all of your household employees totaling $1,000 or more in any calendar quarter of 2013 or 2014, the first $7,000 of cash wages you pay to each household employee in 2014 is FUTA wages. Form 1040ez 2011 (A calendar quarter is January through March, April through June, July through September, or October through December. Form 1040ez 2011 ) If your employee's cash wages reach $7,000 during the year, do not figure the FUTA tax on any wages you pay that employee during the rest of the year. Form 1040ez 2011 For an explanation of cash wages, see the discussion on Social security and Medicare wages under Social Security and Medicare Taxes, earlier. Form 1040ez 2011 Wages not counted. Form 1040ez 2011   Do not count wages you pay to any of the following individuals as FUTA wages. Form 1040ez 2011 Your spouse. Form 1040ez 2011 Your child who is under the age of 21. Form 1040ez 2011 Your parent. Form 1040ez 2011 Credit for 2013. Form 1040ez 2011   The credit you can take for any state unemployment fund contributions for 2013 that you pay after April 15, 2014, is limited to 90% of the credit that would have been allowable if the contributions were paid on or before April 15, 2014. Form 1040ez 2011 Use Worksheet A to figure the credit for late contributions if you paid any state contributions after the due date for filing  Form 1040. Form 1040ez 2011 Worksheet A. Form 1040ez 2011 Worksheet for Credit for Late Contributions 1. Form 1040ez 2011 Enter the amount from Schedule H, line 22   2. Form 1040ez 2011 Enter the amount from Schedule H, line 19   3. Form 1040ez 2011 Subtract line 2 from line 1. Form 1040ez 2011 If zero or less, enter -0-   4. Form 1040ez 2011 Enter total contributions paid to the state(s) after the Form 1040 due date   5. Form 1040ez 2011 Enter the smaller of line 3 or line 4   6. Form 1040ez 2011 Multiply line 5 by . Form 1040ez 2011 90 (90%)   7. Form 1040ez 2011 Add lines 2 and 6   8. Form 1040ez 2011 Enter the smaller of the amount on line 1 or line 7 here and on Schedule H, line 23   Do You Need To Withhold Federal Income Tax? You are not required to withhold federal income tax from wages you pay a household employee. Form 1040ez 2011 You should withhold federal income tax only if your household employee asks you to withhold it and you agree. Form 1040ez 2011 The employee must give you a completed Form W-4, Employee's Withholding Allowance Certificate. Form 1040ez 2011 If you and your employee have agreed to withholding, either of you may end the agreement by letting the other know in writing. Form 1040ez 2011 If you agree to withhold federal income tax, you are responsible for paying it to the IRS. Form 1040ez 2011 Pay the tax as discussed under How Do You Make Tax Payments, later. Form 1040ez 2011 Also, see What Forms Must You File, later. Form 1040ez 2011 Use the income tax withholding tables in Publication 15 (Circular E) to find out how much to withhold. Form 1040ez 2011 Figure federal income tax withholding on wages before you deduct any amounts for other withheld taxes. Form 1040ez 2011 Withhold federal income tax from each payment of wages based on the filing status and exemptions shown on your employee's Form W-4. Form 1040ez 2011 Publication 15 (Circular E) contains detailed instructions. Form 1040ez 2011 Wages. Form 1040ez 2011   Figure federal income tax withholding on both cash and noncash wages you pay. Form 1040ez 2011 Measure wages you pay in any form other than cash by the fair market value of the noncash item. Form 1040ez 2011   Do not count as wages any of the following items. Form 1040ez 2011 Meals provided to your employee at your home for your convenience. Form 1040ez 2011 Lodging provided to your employee at your home for your convenience and as a condition of employment. Form 1040ez 2011 Up to $130 per month for 2014 for transit passes you give your employee (or for any cash reimbursement you make for the amount your employee pays for transit passes used to commute to your home if you qualify for this exclusion). Form 1040ez 2011 A transit pass includes any pass, token, fare card, voucher, or similar item entitling a person to ride on mass transit, such as a bus or train. Form 1040ez 2011 See Publication 15-B for special requirements for this exclusion. Form 1040ez 2011 Up to $250 per month for 2014 for the value of parking you provide your employee or for any cash reimbursement you make for the amount your employee pays and substantiates for parking at or near your home or at or near a location from which your employee commutes to your home. Form 1040ez 2011   See Publication 15 (Circular E) for more information on cash and noncash wages. Form 1040ez 2011 Paying tax without withholding. Form 1040ez 2011   Any income tax you pay for your employee without withholding it from the employee's wages must be included in the employee's wages for federal income tax purposes. Form 1040ez 2011 It also must be included in social security and Medicare wages and in federal unemployment (FUTA) wages. Form 1040ez 2011 What Do You Need To Know About the Earned Income Credit? Certain workers can take the earned income credit (EIC) on their federal income tax return. Form 1040ez 2011 This credit reduces their tax or allows them to receive a payment from the IRS. Form 1040ez 2011 You also may have to give your employee a notice about the EIC. Form 1040ez 2011 Notice about the EIC. Form 1040ez 2011   Copy B of the 2014 Form W-2 has a statement about the EIC on the back. Form 1040ez 2011 If you give your employee that copy by February 2, 2015 (as discussed under Form W-2 under What Forms Must You File, later), you do not have to give the employee any other notice about the EIC. Form 1040ez 2011   If you do not give your employee Copy B of the Form W-2, your notice about the EIC can be any of the following items. Form 1040ez 2011 A substitute Form W-2 with the same EIC information on the back of the employee's copy that is on Copy B of the Form W-2. Form 1040ez 2011 Notice 797, Possible Federal Tax Refund Due to the Earned Income Credit (EIC). Form 1040ez 2011 Your own written statement with the same wording as in Notice 797. Form 1040ez 2011 If a substitute Form W-2 is given on time but does not have the required EIC information, you must notify the employee within one week of the date the substitute Form W-2 is given. Form 1040ez 2011 If Form W-2 is required but is not given on time, you must give the employee Notice 797 or your written statement about the 2014 EIC by February 2, 2015. Form 1040ez 2011 If Form W-2 is not required, you must notify the employee by February 7, 2015. Form 1040ez 2011   You must give your household employee a notice about the EIC if you agree to withhold federal income tax from the employee's wages (as discussed earlier under Do You Need To Withhold Federal Income Tax?) and the income tax withholding tables show that no tax should be withheld. Form 1040ez 2011 Even if not required, you are encouraged to give the employee a notice about the EIC if his or her 2014 wages are less than $46,997 ($52,427 if married filing jointly). Form 1040ez 2011 How Do You Make Tax Payments? When you file your 2014 federal income tax return in 2015, attach Schedule H (Form 1040) to your Form 1040, 1040NR, 1040-SS, or 1041. Form 1040ez 2011 Use Schedule H to figure your total household employment taxes (social security, Medicare, FUTA, and withheld federal income taxes). Form 1040ez 2011 Add these household employment taxes to your income tax. Form 1040ez 2011 Pay the amount due by April 15, 2015. Form 1040ez 2011 For more information about using Schedule H, see Schedule H under What Forms Must You File, later. Form 1040ez 2011 You can avoid owing tax with your return if you pay enough tax during the year to cover your household employment taxes, as well as your income tax. Form 1040ez 2011 You can pay the additional tax in any of the following ways. Form 1040ez 2011 Ask your employer to withhold more federal income tax from your wages in 2014. Form 1040ez 2011 Ask the payer of your pension or annuity to withhold more federal income tax from your benefits. Form 1040ez 2011 Make estimated tax payments for 2014 to the IRS. Form 1040ez 2011 Increase your payments if you already make estimated tax payments. Form 1040ez 2011 You may be subject to the estimated tax underpayment penalty if you did not pay enough income and household employment taxes during the year. Form 1040ez 2011 (See Publication 505, Tax Withholding and Estimated Tax, for information about the underpayment penalty. Form 1040ez 2011 ) However, you will not be subject to the penalty if both of the following situations apply to you. Form 1040ez 2011 You will not have federal income tax withheld from wages, pensions, or any other payments you receive. Form 1040ez 2011 Your income taxes, excluding your household employment taxes, would not be enough to require payment of estimated taxes. Form 1040ez 2011 Asking for more federal income tax withholding. Form 1040ez 2011   If you are employed and want more federal income tax withheld from your wages to cover your household employment taxes, give your employer a new Form W-4. Form 1040ez 2011 Complete it as before, but show the additional amount you want withheld from each paycheck on line 6. Form 1040ez 2011   If you receive a pension or annuity and want more federal income tax withheld to cover household employment taxes, give the payer a new Form W-4P, Withholding Certificate for Pension or Annuity Payments (or a similar form provided by the payer). Form 1040ez 2011 Complete it as before, but show the additional amount you want withheld from each benefit payment on line 3. Form 1040ez 2011   See Publication 505 to make sure you will have the right amount withheld. Form 1040ez 2011 It will help you compare your total expected withholding for 2014 with the combined income tax and employment taxes that you can expect to figure on your 2014 tax return. Form 1040ez 2011 Paying estimated tax. Form 1040ez 2011   If you want to make estimated tax payments to cover household employment taxes, get Form 1040-ES, Estimated Tax for Individuals. Form 1040ez 2011 You can use its payment vouchers to make your payments by check or money order. Form 1040ez 2011 You may be able to pay by Electronic Funds Withdrawal (EFW) or credit card. Form 1040ez 2011 For details, see the form instructions and visit IRS. Form 1040ez 2011 gov. Form 1040ez 2011    You can pay all the employment taxes at once or you can pay them in installments. Form 1040ez 2011 If you have already made estimated tax payments for 2014, you can increase your remaining payments to cover the employment taxes. Form 1040ez 2011 Estimated tax payments for 2014 are due April 15, June 16, and September 15, 2014, and January 15, 2015. Form 1040ez 2011 Payment option for business employers. Form 1040ez 2011   If you own a business as a sole proprietor or your home is on a farm operated for profit, you can choose either of two ways to pay your 2014 household employment taxes. Form 1040ez 2011 You can pay them with your federal income tax as previously described, or you can include them with your federal employment tax deposits or other payments for your business or farm employees. Form 1040ez 2011 For information on depositing employment taxes, see Publication 15 (Circular E). Form 1040ez 2011   If you pay your household employment taxes with your business or farm employment taxes, you must report your household employment taxes with those other employment taxes on Form 941, Employer's QUARTERLY Federal Tax Return, Form 944, Employer's ANNUAL Federal Tax Return, or Form 943, Employer's Annual Federal Tax Return for Agricultural Employees, and on Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return. Form 1040ez 2011 See Business employment tax returns, later. Form 1040ez 2011    The deduction that can be taken on Schedules C and F (Form 1040) for wages and employment taxes applies only to wages and taxes paid for business and farm employees. Form 1040ez 2011 You cannot deduct the wages and employment taxes paid for your household employees on your Schedule C or F. Form 1040ez 2011 More information. Form 1040ez 2011   For more information about paying taxes through federal income tax withholding and estimated tax payments, and figuring the estimated tax penalty, see Publication 505. Form 1040ez 2011 What Forms Must You File? You must file certain forms to report your household employee's wages and the federal employment taxes for the employee if you pay any of the following wages to the employee. Form 1040ez 2011 Social security and Medicare wages. Form 1040ez 2011 FUTA wages. Form 1040ez 2011 Wages from which you withhold federal income tax. Form 1040ez 2011 For information on ordering employment tax forms, see How To Get Tax Help, later. Form 1040ez 2011 Employer identification number (EIN). Form 1040ez 2011   You must include your employer identification number (EIN) on the forms you file for your household employee. Form 1040ez 2011 An EIN is a nine-digit number issued by the IRS. Form 1040ez 2011 It is not the same as a social security number. Form 1040ez 2011    You ordinarily will have an EIN if you previously paid taxes for employees, either as a household employer or as a sole proprietor of a business you own. Form 1040ez 2011 If you already have an EIN, use that number. Form 1040ez 2011   If you do not have an EIN, you may apply for one online. Form 1040ez 2011 Go to IRS. Form 1040ez 2011 gov and click on the Apply for an EIN Online link under Tools. Form 1040ez 2011 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. Form 1040ez 2011 Form W-2. Form 1040ez 2011   File a separate 2014 Form W-2, for each household employee to whom you pay either of the following wages during the year. Form 1040ez 2011 Social security and Medicare wages of $1,900 or more. Form 1040ez 2011 Wages from which you withhold federal income tax. Form 1040ez 2011 You must complete Form W-2 and give Copies B, C, and 2 to your employee by February 2, 2015. Form 1040ez 2011 You must send Copy A of Form W-2 with Form W-3, Transmittal of Wage and Tax Statements, to the SSA by March 2, 2015 (March 31, 2015, if you file your Form W-2 electronically). Form 1040ez 2011 Electronic filing is available to all employers and is free, fast, secure, and offers a later filing deadline. Form 1040ez 2011 Visit the SSA's Employer W-2 Filing Instructions & Information website at www. Form 1040ez 2011 socialsecurity. Form 1040ez 2011 gov/employer for guidelines on filing electronically. Form 1040ez 2011 Employee who leaves during the year. Form 1040ez 2011   If an employee stops working for you before the end of 2014, you can file Form W-2 and provide copies to your employee immediately after you make your final payment of wages. Form 1040ez 2011 You do not need to wait until 2015. Form 1040ez 2011 If the employee asks you for Form W-2, give it to him or her within 30 days after the request or the last wage payment, whichever is later. Form 1040ez 2011 Schedule H. Form 1040ez 2011   Use Schedule H to report household employment taxes if you pay any of the following wages to the employee. Form 1040ez 2011 Social security and Medicare wages of $1,900 or more. Form 1040ez 2011 FUTA wages. Form 1040ez 2011 Wages from which you withhold federal income tax. Form 1040ez 2011 File Schedule H with your 2014 federal income tax return by April 15, 2015. Form 1040ez 2011 If you get an extension to file your return, the extension also will apply to your Schedule H. Form 1040ez 2011 Filing options when no return is required. Form 1040ez 2011   If you are not required to file a 2014 tax return, you have the following two options. Form 1040ez 2011 You can file Schedule H by itself. Form 1040ez 2011 See the Schedule H instructions for details. Form 1040ez 2011 If, besides your household employee, you have other employees for whom you report employment taxes on Form 941, Form 944, or Form 943 and on Form 940, you can include your taxes for your household employee on those forms. Form 1040ez 2011 See Business employment tax returns, next. Form 1040ez 2011   Employers having the options listed above include certain tax-exempt organizations that do not have to file a tax return, such as churches that pay a household worker to take care of a minister's home. Form 1040ez 2011 Business employment tax returns. Form 1040ez 2011   Do not use Schedule H if you choose to pay the employment taxes for your household employee with business or farm employment taxes. Form 1040ez 2011 (See Payment option for business employers, earlier. Form 1040ez 2011 ) Instead, include the social security, Medicare, and withheld federal income taxes for the employee on the Form 941 or Form 944 you file for your business or on the Form 943 you file for your farm. Form 1040ez 2011 Include the FUTA tax for the employee on your Form 940. Form 1040ez 2011   If you report the employment taxes for your household employee on Form 941, Form 944, or Form 943, file Form W-2 for that employee with the Forms W-2 and Form W-3 for your business or farm employees. Form 1040ez 2011   For information on filing Form 941 or Form 944, see Publication 15 (Circular E). Form 1040ez 2011 For information on filing Form 943, see Publication 51 (Circular A), Agricultural Employer's Tax Guide. Form 1040ez 2011 Both of these publications also provide information about filing Form 940. Form 1040ez 2011 What Records Must You Keep? Keep your copies of Schedule H or other employment tax forms you file and related Forms W-2, W-3, and W-4. Form 1040ez 2011 You must also keep records to support the information you enter on the forms you file. Form 1040ez 2011 If you must file Form W-2, you will need to keep a record of your employee's name, address, and social security number. Form 1040ez 2011 Wage and tax records. Form 1040ez 2011   On each payday, you should record the date and amounts of all the following items. Form 1040ez 2011 Your employee's cash and noncash wages. Form 1040ez 2011 Any employee social security tax you withhold or agree to pay for your employee. Form 1040ez 2011 Any employee Medicare tax you withhold or agree to pay for your employee. Form 1040ez 2011 Any federal income tax you withhold. Form 1040ez 2011 Any state employment taxes you withhold. Form 1040ez 2011 Employee's social security number. Form 1040ez 2011   You must keep a record of your employee's name and social security number exactly as they appear on his or her social security card if you pay the employee either of the following. Form 1040ez 2011 Social security and Medicare wages of $1,900 or more. Form 1040ez 2011 Wages from which you withhold federal income tax. Form 1040ez 2011 You must ask for your employee's social security number no later than the first day on which you pay the wages. Form 1040ez 2011 You may wish to ask for it when you hire your employee. Form 1040ez 2011 You should ask your employee to show you his or her social security card. Form 1040ez 2011 The employee may show the card if it is available. Form 1040ez 2011 You may, but are not required to, photocopy the card if the employee provides it. Form 1040ez 2011   An employee who does not have a social security number must apply for one on Form SS-5, Application for a Social Security Card. Form 1040ez 2011 An employee who has lost his or her social security card or whose name is not correctly shown on the card may apply for a replacement card. Form 1040ez 2011    Employees can get Form SS-5 from any Social Security Administration office or by calling 1-800-772-1213. Form 1040ez 2011    You also can download Form SS-5 from the Social Security Administration website at  www. Form 1040ez 2011 socialsecurity. Form 1040ez 2011 gov/online/ss-5. Form 1040ez 2011 pdf. Form 1040ez 2011 How long to keep records. Form 1040ez 2011   Keep your employment tax records for at least 4 years after the due date of the return on which you report the taxes or the date the taxes were paid, whichever is later. Form 1040ez 2011 Can You Claim a Credit for Child and Dependent Care Expenses? If your household employee cares for your dependent who is under age 13 or for your spouse or dependent who is not capable of self-care, you may be able to take an income tax credit against some of your expenses. Form 1040ez 2011 To qualify, you must pay these expenses so you can work or look for work. Form 1040ez 2011 If you can take the credit, you can include in your qualifying expenses your share of the federal and state employment taxes you pay, as well as the employee's wages. Form 1040ez 2011 For information about the credit, see Publication 503, Child and Dependent Care Expenses. Form 1040ez 2011 How Can You Correct Schedule H? If you discover that you made an error on a Schedule H (or Anexo H-PR), the forms used to correct the error depend on whether the Schedule H was attached to another form or whether it was filed by itself. Form 1040ez 2011 Schedule H attached to another form. Form 1040ez 2011    If you discover an error on a Schedule H that you previously filed with Form 1040, Form 1040NR, or Form 1040-SS, file Form 1040X, Amended U. Form 1040ez 2011 S. Form 1040ez 2011 Individual Income Tax Return, and attach a corrected Schedule H. Form 1040ez 2011 If you filed Formulario 1040-PR, file a Form 1040X and attach a corrected Anexo H-PR. Form 1040ez 2011 If you discover an error on a Schedule H that you previously filed with Form 1041, U. Form 1040ez 2011 S. Form 1040ez 2011 Income Tax Return for Estates and Trusts, file an “amended” Form 1041 and attach a corrected Schedule H. Form 1040ez 2011 You discovered (that is, ascertained) the error when you had enough information to be able to correct the error. Form 1040ez 2011 Write “CORRECTED” (or “CORREGIDO”) and the date you discovered the error in the top margin of your corrected Schedule H (or Anexo H-PR), in dark, bold letters. Form 1040ez 2011 In addition, explain the reason for your correction and the date the error was discovered in Part III of Form 1040X or in a statement attached to the amended Form 1041. Form 1040ez 2011 Schedule H filed by itself. Form 1040ez 2011   If you discover an error on a Schedule H (or Anexo H-PR) that you filed as a stand-alone return, file another stand-alone Schedule H with the corrected information. Form 1040ez 2011 You discovered (that is, ascertained) the error when you had enough information to be able to correct the error. Form 1040ez 2011 Write “CORRECTED” (or “CORREGIDO”) and the date you discovered the error in the top margin of your corrected Schedule H (or Anexo H-PR), in dark, bold letters. Form 1040ez 2011 In addition, explain the reason for your correction and the date the error was discovered in a statement attached to the corrected Schedule H. Form 1040ez 2011 If you have an overpayment, also write “ADJUSTED” (or “CORREGIDO”) or “REFUND” (or “REEMBOLSO”) in the top margin, depending on whether you want to adjust your overpayment or claim a refund. Form 1040ez 2011 (See Overpayment of tax, later. Form 1040ez 2011 ) When to file. Form 1040ez 2011   File a corrected Schedule H when you discover an error on a previously filed Schedule H. Form 1040ez 2011 If you are correcting an underpayment, file a corrected Schedule H no later than the due date of your next tax return (generally, April 15 of the following calendar year) after you discover the error. Form 1040ez 2011 If you are correcting an overpayment, file a corrected Schedule H within the refund period of limitations (generally 3 years from the date your original form was filed or within 2 years from the date you paid the tax, whichever is later). Form 1040ez 2011 Underpayment of tax. Form 1040ez 2011   You must pay any underpayment of social security and Medicare taxes by the time you file the corrected Schedule H. Form 1040ez 2011 Generally, by filing on time and paying by the time you file the return, you will not be charged interest (and will not be subject to failure-to-pay or estimated tax penalties) on the balance due. Form 1040ez 2011 However, underreported FUTA taxes will be subject to interest. Form 1040ez 2011 Overpayment of tax. Form 1040ez 2011    You may either adjust or claim a refund of an overpayment of social security and Medicare taxes on a previously filed Schedule H. Form 1040ez 2011 However, if you are correcting an overpayment and are filing the corrected Schedule H within 90 days of the expiration of the period of limitations, you can only claim a refund of the overpayment. Form 1040ez 2011 Adjust the overpayment. Form 1040ez 2011   If the corrected Schedule H is filed with a Form 1040X or an amended Form 1041, adjust your return by indicating on line 22 of the Form 1040X or on line 29a of the Form 1041 that you would like the overpayment applied to your estimated taxes on Form 1040, Form 1040NR, Form 1040-PR, Form 1040-SS, or Form 1041 for the year in which you are filing the corrected Schedule H. Form 1040ez 2011 If the corrected Schedule H is filed as a stand-alone return, adjust your return by writing “ADJUSTED” (or “CORREGIDO”) in the top margin (in dark, bold letters). Form 1040ez 2011 If you adjust your return, you will not receive interest on your overpayment. Form 1040ez 2011 If the corrected Schedule H will be filed within 90 days of the expiration of the refund period of limitations, you may not adjust the return and must claim a refund for the overpayment. Form 1040ez 2011 You may not adjust your return to correct overpayments of FUTA tax. Form 1040ez 2011 Claim for refund process. Form 1040ez 2011   If the corrected Schedule H is filed with a Form 1040X or an amended Form 1041, claim a refund by indicating that you would like the overpayment refunded to you on line 21 of the Form 1040X or line 29b of the Form 1041. Form 1040ez 2011 If the corrected Schedule H is filed as a stand-alone return, claim a refund by writing “REFUND” (or “REEMBOLSO”) in the top margin (in dark, bold letters). Form 1040ez 2011 You will receive interest on any overpayment refunded, unless the overpayment is for FUTA tax because you were entitled to increased credits for state contributions. Form 1040ez 2011 Required repayment or consent. Form 1040ez 2011   If you previously overreported social security and Medicare taxes, you may adjust your overpayment only after you have repaid or reimbursed your employees in the amount of the overcollection of employee tax. Form 1040ez 2011 You reimburse your employees by applying the overwithheld amount against taxes to be withheld on future wages. Form 1040ez 2011 You may claim a refund for the overpayment only after you have repaid or reimbursed your employees in the amount of the overcollection or you have obtained consents from your employees to file the claim for refund for the employee tax. Form 1040ez 2011 Include a statement that you repaid or reimbursed your employees, or obtained their written consents in the case of a claim for refund, in Part III of Form 1040X or in a statement attached to the amended Form 1041 or the stand-alone corrected Schedule H. Form 1040ez 2011 Filing required Forms W-2 or Forms W-2c. Form 1040ez 2011   Whether you previously underreported tax or overreported tax, you will generally be required to file Form W-2, or their territorial equivalents (if none was previously filed), or Form W-2c, Corrected Wage and Tax Statement, to reflect the changes reported on your corrected Schedule H. Form 1040ez 2011 Additional Medicare Tax. Form 1040ez 2011   Generally, you may not correct an error in Additional Medicare Tax withholding for wages paid to employees in a prior year unless it is an administrative error. Form 1040ez 2011 An administrative error occurs if the amount you entered on Schedule H is not the amount you actually withheld. Form 1040ez 2011 For example, if the Additional Medicare Tax actually withheld was incorrectly reported on Schedule H due to a mathematical or transposition error, this would be an administrative error. Form 1040ez 2011   Any underwithheld Additional Medicare Tax must be recovered from employees on or before the last day of the calendar year in which the underwithholding occurred. Form 1040ez 2011 Any excess Additional Medicare Tax withholding must be repaid or reimbursed to employees before the end of the calendar year in which it was withheld. Form 1040ez 2011 Additional information. Form 1040ez 2011   For more information about correcting errors on a previously filed Schedule H, see page 4 of Form 944-X, Form 944-X: Which process should you use? (substitute “Schedule H” for “Form 944-X”) and the Instructions for Form 944-X (or Formulario 944-X (PR)). Form 1040ez 2011 Also, visit IRS. Form 1040ez 2011 gov. Form 1040ez 2011 How To Get Tax Help Whether it's help with a tax issue, preparing your tax return or a need for a free publication or form, get the help you need the way you want it: online, use a smart phone, call or walk in to an IRS office or volunteer site near you. Form 1040ez 2011 Free help with your tax return. Form 1040ez 2011   You can get free help preparing your return nationwide from IRS-certified volunteers. Form 1040ez 2011 The Volunteer Income Tax Assistance (VITA) program helps low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers. Form 1040ez 2011 The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Form 1040ez 2011 Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. Form 1040ez 2011 In addition, some VITA and TCE sites provide taxpayers the opportunity to prepare their own return with help from an IRS-certified volunteer. Form 1040ez 2011 To find the nearest VITA or TCE site, you can use the VITA Locator Tool on IRS. Form 1040ez 2011 gov, download the IRS2Go app, or call 1-800-906-9887. Form 1040ez 2011   As part of the TCE program, AARP offers the Tax-Aide counseling program. Form 1040ez 2011 To find the nearest AARP Tax-Aide site, visit AARP's website at www. Form 1040ez 2011 aarp. Form 1040ez 2011 org/money/taxaide or call 1-888-227-7669. Form 1040ez 2011 For more information on these programs, go to IRS. Form 1040ez 2011 gov and enter “VITA” in the search box. Form 1040ez 2011 Internet. Form 1040ez 2011    IRS. Form 1040ez 2011 gov and IRS2Go are ready when you are —24 hours a day, 7 days a week. Form 1040ez 2011 Download the free IRS2Go app from the iTunes app store or from Google Play. Form 1040ez 2011 Use it to check your refund status, order transcripts of your tax returns or tax account, watch the IRS YouTube channel, get IRS news as soon as it's released to the public, subscribe to filing season updates or daily tax tips, and follow the IRS Twitter news feed, @IRSnews, to get the latest federal tax news, including information about tax law changes and important IRS programs. Form 1040ez 2011 Check the status of your 2013 refund with the Where's My Refund? application on IRS. Form 1040ez 2011 gov or download the IRS2Go app and select the Refund Status option. Form 1040ez 2011 The IRS issues more than 9 out of 10 refunds in less than 21 days. Form 1040ez 2011 Using these applications, you can start checking on the status of your return within 24 hours after we receive your e-filed return or 4 weeks after you mail a paper return. Form 1040ez 2011 You will also be given a personalized refund date as soon as the IRS processes your tax return and approves your refund. Form 1040ez 2011 The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Form 1040ez 2011 Use the Interactive Tax Assistant (ITA) to research your tax questions. Form 1040ez 2011 No need to wait on the phone or stand in line. Form 1040ez 2011 The ITA is available 24 hours a day, 7 days a week, and provides you with a variety of tax information related to general filing topics, deductions, credits, and income. Form 1040ez 2011 When you reach the response screen, you can print the entire interview and the final response for your records. Form 1040ez 2011 New subject areas are added on a regular basis. Form 1040ez 2011  Answers not provided through ITA may be found in Tax Trails, one of the Tax Topics on IRS. Form 1040ez 2011 gov which contain general individual and business tax information or by searching the IRS Tax Map, which includes an international subject index. Form 1040ez 2011 You can use the IRS Tax Map, to search publications and instructions by topic or keyword. Form 1040ez 2011 The IRS Tax Map integrates forms and publications into one research tool and provides single-point access to tax law information by subject. Form 1040ez 2011 When the user searches the IRS Tax Map, they will be provided with links to related content in existing IRS publications, forms and instructions, questions and answers, and Tax Topics. Form 1040ez 2011 Coming this filing season, you can immediately view and print for free all 5 types of individual federal tax transcripts (tax returns, tax account, record of account, wage and income statement, and certification of non-filing) using Get Transcript. Form 1040ez 2011 You can also ask the IRS to mail a return or an account transcript to you. Form 1040ez 2011 Only the mail option is available by choosing the Tax Records option on the IRS2Go app by selecting Mail Transcript on IRS. Form 1040ez 2011 gov or by calling 1-800-908-9946. Form 1040ez 2011 Tax return and tax account transcripts are generally available for the current year and the past three years. Form 1040ez 2011 Determine if you are eligible for the EITC and estimate the amount of the credit with the Earned Income Tax Credit (EITC) Assistant. Form 1040ez 2011 Visit Understanding Your IRS Notice or Letter to get answers to questions about a notice or letter you received from the IRS. Form 1040ez 2011 If you received the First Time Homebuyer Credit, you can use the First Time Homebuyer Credit Account Look-up tool for information on your repayments and account balance. Form 1040ez 2011 Check the status of your amended return using Where's My Amended Return? Go to IRS. Form 1040ez 2011 gov and enter Where's My Amended Return? in the search box. Form 1040ez 2011 You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. Form 1040ez 2011 It can take up to 3 weeks from the date you mailed it to show up in our system. Form 1040ez 2011 Make a payment using one of several safe and convenient electronic payment options available on IRS. Form 1040ez 2011 gov. Form 1040ez 2011 Select the Payment tab on the front page of IRS. Form 1040ez 2011 gov for more information. Form 1040ez 2011 Determine if you are eligible and apply for an online payment agreement, if you owe more tax than you can pay today. Form 1040ez 2011 Figure your income tax withholding with the IRS Withholding Calculator on IRS. Form 1040ez 2011 gov. Form 1040ez 2011 Use it if you've had too much or too little withheld, your personal situation has changed, you're starting a new job or you just want to see if you're having the right amount withheld. Form 1040ez 2011 Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. Form 1040ez 2011 gov. Form 1040ez 2011 Request an Electronic Filing PIN by going to IRS. Form 1040ez 2011 gov and entering Electronic Filing PIN in the search box. Form 1040ez 2011 Download forms, instructions and publications, including accessible versions for people with disabilities. Form 1040ez 2011 Locate the nearest Taxpayer Assistance Center (TAC) using the Office Locator tool on IRS. Form 1040ez 2011 gov, or choose the Contact Us option on the IRS2Go app and search Local Offices. Form 1040ez 2011 An employee can answer questions about your tax account or help you set up a payment plan. Form 1040ez 2011 Before you visit, check the Office Locator on IRS. Form 1040ez 2011 gov, or Local Offices under Contact Us on IRS2Go to confirm the address, phone number, days and hours of operation, and the services provided. Form 1040ez 2011 If you have a special need, such as a disability, you can request an appointment. Form 1040ez 2011 Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. Form 1040ez 2011 Apply for an Employer Identification Number (EIN). Form 1040ez 2011 Go to IRS. Form 1040ez 2011 gov and enter Apply for an EIN in the search box. Form 1040ez 2011 Read the Internal Revenue Code, regulations, or other official guidance. Form 1040ez 2011 Read Internal Revenue Bulletins. Form 1040ez 2011 Sign up to receive local and national tax news and more by email. Form 1040ez 2011 Just click on “subscriptions” above the search box on IRS. Form 1040ez 2011 gov and choose from a variety of options. Form 1040ez 2011 Phone. Form 1040ez 2011    You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. Form 1040ez 2011 Download the free IRS2Go app from the iTunes app store or from Google Play. Form 1040ez 2011 Call to locate the nearest volunteer help site, 1-800-906-9887 or you can use the VITA Locator Tool on IRS. Form 1040ez 2011 gov, or download the IRS2Go app. Form 1040ez 2011 Low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. Form 1040ez 2011 The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Form 1040ez 2011 Most VITA and TCE sites offer free electronic filing. Form 1040ez 2011 Some VITA and TCE sites provide IRS-certified volunteers who can help prepare your tax return. Form 1040ez 2011 Through the TCE program, AARP offers the Tax-Aide counseling program; call 1-888-227-7669 to find the nearest Tax-Aide location. Form 1040ez 2011 Call the automated Where's My Refund? information hotline to check the status of your 2013 refund 24 hours a day, 7 days a week at 1-800-829-1954. Form 1040ez 2011 If you e-file, you can start checking on the status of your return within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. Form 1040ez 2011 The IRS issues more than 9 out of 10 refunds in less than 21 days. Form 1040ez 2011 Where's My Refund? will give you a personalized refund date as soon as the IRS processes your tax return and approves your refund. Form 1040ez 2011 Before you call this automated hotline, have your 2013 tax return handy so you can enter your social security number, your filing status, and the exact whole dollar amount of your refund. Form 1040ez 2011 The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Form 1040ez 2011 Note, the above information is for our automated hotline. Form 1040ez 2011 Our live phone and walk-in assistors can research the status of your refund only if it's been 21 days or more since you filed electronically or more than 6 weeks since you mailed your paper return. Form 1040ez 2011 Call the Amended Return Hotline, 1-866-464-2050, to check the status of your amended return. Form 1040ez 2011 You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. Form 1040ez 2011 It can take up to 3 weeks from the date you mailed it to show up in our system. Form 1040ez 2011 Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, publications, and prior-year forms and instructions (limited to 5 years). Form 1040ez 2011 You should receive your order within 10 business days. Form 1040ez 2011 Call TeleTax, 1-800-829-4477, to listen to pre-recorded messages covering general and business tax information. Form 1040ez 2011 If, between January and April 15, you still have questions about the Form 1040, 1040A, or 1040EZ (like filing requirements, dependents, credits, Schedule D, pensions and IRAs or self-employment taxes), call 1-800-829-1040. Form 1040ez 2011 Call using TTY/TDD equipment, 1-800-829-4059 to ask tax questions or order forms and publications. Form 1040ez 2011 The TTY/TDD telephone number is for people who are deaf, hard of hearing, or have a speech disability. Form 1040ez 2011 These individuals can also contact the IRS through relay services such as the Federal Relay Service. Form 1040ez 2011 Walk-in. Form 1040ez 2011   You can find a selection of forms, publications and services — in-person. Form 1040ez 2011 Products. Form 1040ez 2011 You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Form 1040ez 2011 Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. Form 1040ez 2011 Services. Form 1040ez 2011 You can walk in to your local TAC for face-to-face tax help. Form 1040ez 2011 An employee can answer questions about your tax account or help you set up a payment plan. Form 1040ez 2011 Before visiting, use the Office Locator tool on IRS. Form 1040ez 2011 gov, or choose the Contact Us option on the IRS2Go app and search Local Offices for days and hours of operation, and services provided. Form 1040ez 2011 Mail. Form 1040ez 2011   You can send your order for forms, instructions, and publications to the address below. Form 1040ez 2011 You should receive a response within 10 business days after your request is received. Form 1040ez 2011 Internal Revenue Service 1201 N. Form 1040ez 2011 Mitsubishi Motorway Bloomington, IL 61705-6613    The Taxpayer Advocate Service Is Here to Help You. Form 1040ez 2011 The Taxpayer Advocate Service (TAS) is your voice at the IRS. Form 1040ez 2011 Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. Form 1040ez 2011   What can TAS do for you? We can offer you free help with IRS problems that you can't resolve on your own. Form 1040ez 2011 We know this process can be confusing, but the worst thing you can do is nothing at all! TAS can help if you can't resolve your tax problem and: Your problem is causing financial difficulties for you, your family, or your business. Form 1040ez 2011 You face (or your business is facing) an immediate threat of adverse action. Form 1040ez 2011 You've tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised. Form 1040ez 2011   If you qualify for our help, you'll be assigned to one advocate who'll be with you at every turn and will do everything possible to resolve your problem. Form 1040ez 2011 Here's why we can help: TAS is an independent organization within the IRS. Form 1040ez 2011 Our advocates know how to work with the IRS. Form 1040ez 2011 Our services are free and tailored to meet your needs. Form 1040ez 2011 We have offices in every state, the District of Columbia, and Puerto Rico. Form 1040ez 2011   How can you reach us? If you think TAS can help you, call your local advocate, whose number is in your local directory and at Taxpayer Advocate, or call us toll-free at 1-877-777-4778. Form 1040ez 2011   How else does TAS help taxpayers?  TAS also works to resolve large-scale, systemic problems that affect many taxpayers. Form 1040ez 2011 If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System. Form 1040ez 2011 Low Income Taxpayer Clinics Low Income Taxpayer Clinics (LITCs) serve individuals whose income is below a certain level and need to resolve tax problems such as audits, appeals and tax collection disputes. Form 1040ez 2011 Some clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. Form 1040ez 2011 Visit Taxpayer Advocate or see IRS Publication 4134, Low Income Taxpayer Clinic List. Form 1040ez 2011 Sample W-2 Form This image is too large to be displayed in the current screen. Form 1040ez 2011 Please click the link to view the image. Form 1040ez 2011 Webtitle: Form W-2 Wage and Tax Statement and Form W-3 Transmitttal of Wage and Tax Statemtents Prev  Up  Next   Home   More Online Publications