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Free downloadable irs tax forms 34. Free downloadable irs tax forms   Child Tax Credit Table of Contents Introduction Useful Items - You may want to see: Qualifying Child Amount of CreditLimits on the Credit Claiming the Credit Additional Child Tax Credit Completing Schedule 8812 (Form 1040A or 1040)Part I Parts II–IV Introduction The child tax credit is a credit that may reduce your tax by as much as $1,000 for each of your qualifying children. Free downloadable irs tax forms The additional child tax credit is a credit you may be able to take if you are not able to claim the full amount of the child tax credit. Free downloadable irs tax forms This chapter explains the following. Free downloadable irs tax forms Who is a qualifying child. Free downloadable irs tax forms The amount of the credit. Free downloadable irs tax forms How to claim the credit. Free downloadable irs tax forms The child tax credit and the additional child tax credit should not be confused with the child and dependent care credit discussed in chapter 32. Free downloadable irs tax forms If you have no tax. Free downloadable irs tax forms   Credits, such as the child tax credit or the credit for child and dependent care expenses, are used to reduce tax. Free downloadable irs tax forms If your tax on Form 1040, line 46, or Form 1040A, line 28, is zero, do not figure the child tax credit because there is no tax to reduce. Free downloadable irs tax forms However, you may qualify for the additional child tax credit on line 65 (Form 1040) or line 39 (Form 1040A). Free downloadable irs tax forms Useful Items - You may want to see: Publication 972 Child Tax Credit Form (and Instructions) Schedule 8812 (Form 1040A or 1040) Child Tax Credit W-4 Employee's Withholding Allowance Certificate Qualifying Child A qualifying child for purposes of the child tax credit is a child who: Is your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, or a descendant of any of them (for example, your grandchild, niece, or nephew), Was under age 17 at the end of 2013, Did not provide over half of his or her own support for 2013, Lived with you for more than half of 2013 (see Exceptions to time lived with you , later), Is claimed as a dependent on your return, Does not file a joint return for the year (or files it only as a claim for refund), and Was a U. Free downloadable irs tax forms S. Free downloadable irs tax forms citizen, a U. Free downloadable irs tax forms S. Free downloadable irs tax forms national, or a resident of the United States. Free downloadable irs tax forms If the child was adopted, see Adopted child , later. Free downloadable irs tax forms For each qualifying child you must check the box on Form 1040 or Form 1040A, line 6c. Free downloadable irs tax forms Example 1. Free downloadable irs tax forms Your son turned 17 on December 30, 2013. Free downloadable irs tax forms He is a citizen of the United States and you claimed him as a dependent on your return. Free downloadable irs tax forms He is not a qualifying child for the child tax credit because he was not under age 17 at the end of 2013. Free downloadable irs tax forms Example 2. Free downloadable irs tax forms Your daughter turned 8 years old in 2013. Free downloadable irs tax forms She is not a citizen of the United States, has an ITIN, and lived in Mexico all of 2013. Free downloadable irs tax forms She is not a qualifying child for the child tax credit because she was not a resident of the United States for 2013. Free downloadable irs tax forms Filers who have certain child dependents with an Individual Taxpayer Identification Number (ITIN). Free downloadable irs tax forms   If you are claiming a child tax credit or additional child tax credit for a child you identified on your tax return with an ITIN instead of an SSN, you must complete Part I of Schedule 8812 (Form 1040A or 1040). Free downloadable irs tax forms   Although a child may be your dependent, you may only claim a child tax credit or additional child tax credit for a dependent who is a citizen, national, or resident of the United States. Free downloadable irs tax forms To be treated as a resident of the United States, a child generally will need to meet the requirements of the substantial presence test. Free downloadable irs tax forms For more information about the substantial presence test, see Publication 519, U. Free downloadable irs tax forms S. Free downloadable irs tax forms Tax Guide for Aliens. Free downloadable irs tax forms Adopted child. Free downloadable irs tax forms   An adopted child is always treated as your own child. Free downloadable irs tax forms An adopted child includes a child lawfully placed with you for legal adoption. Free downloadable irs tax forms   If you are a U. Free downloadable irs tax forms S. Free downloadable irs tax forms citizen or U. Free downloadable irs tax forms S. Free downloadable irs tax forms national and your adopted child lived with you all year as a member of your household in 2013, that child meets condition (7) above to be a qualifying child for the child tax credit. Free downloadable irs tax forms Exceptions to time lived with you. Free downloadable irs tax forms   A child is considered to have lived with you for more than half of 2013 if the child was born or died in 2013 and your home was this child's home for more than half the time he or she was alive. Free downloadable irs tax forms Temporary absences by you or the child for special circumstances, such as for school, vacation, business, medical care, military service, or detention in a juvenile facility, count as time the child lived with you. Free downloadable irs tax forms   There are also exceptions for kidnapped children and children of divorced or separated parents. Free downloadable irs tax forms For details, see Residency Test in chapter 3. Free downloadable irs tax forms Qualifying child of more than one person. Free downloadable irs tax forms   A special rule applies if your qualifying child is the qualifying child of more than one person. Free downloadable irs tax forms For details, see Special Rule for Qualifying Child of More Than One Person in chapter 3. Free downloadable irs tax forms Amount of Credit The maximum amount you can claim for the credit is $1,000 for each qualifying child. Free downloadable irs tax forms Limits on the Credit You must reduce your child tax credit if either (1) or (2) applies. Free downloadable irs tax forms The amount on Form 1040, line 46, or Form 1040A, line 28, is less than the credit. Free downloadable irs tax forms If this amount is zero, you cannot take this credit because there is no tax to reduce. Free downloadable irs tax forms But you may be able to take the additional child tax credit. Free downloadable irs tax forms See Additional Child Tax Credit , later. Free downloadable irs tax forms Your modified adjusted gross income (AGI) is more than the amount shown below for your filing status. Free downloadable irs tax forms Married filing jointly - $110,000. Free downloadable irs tax forms Single, head of household, or qualifying widow(er) - $75,000. Free downloadable irs tax forms Married filing separately - $55,000. Free downloadable irs tax forms Modified AGI. Free downloadable irs tax forms   For purposes of the child tax credit, your modified AGI is your AGI plus the following amounts that may apply to you. Free downloadable irs tax forms Any amount excluded from income because of the exclusion of income from  Puerto Rico. Free downloadable irs tax forms On the dotted line next to Form 1040, line 38, enter the amount excluded and identify it as “EPRI. Free downloadable irs tax forms ” Also attach a copy of any Form(s) 499R-2/W-2PR to your return. Free downloadable irs tax forms Any amount on line 45 or line 50 of Form 2555, Foreign Earned Income. Free downloadable irs tax forms Any amount on line 18 of Form 2555-EZ, Foreign Earned Income Exclusion. Free downloadable irs tax forms Any amount on line 15 of Form 4563, Exclusion of Income for Bona Fide Residents of American Samoa. Free downloadable irs tax forms   If you do not have any of the above, your modified AGI is the same as your AGI. Free downloadable irs tax forms AGI. Free downloadable irs tax forms   Your AGI is the amount on Form 1040, line 38, or Form 1040A, line 22. Free downloadable irs tax forms Claiming the Credit To claim the child tax credit, you must file Form 1040 or Form 1040A. Free downloadable irs tax forms You cannot claim the child tax credit on Form 1040EZ. Free downloadable irs tax forms You must provide the name and identification number (usually a social security number) on your tax return for each qualifying child. Free downloadable irs tax forms If you claim the child tax credit with a child identified by an ITIN, you must also file Schedule 8812. Free downloadable irs tax forms To figure your credit, first review the Child Tax Credit Worksheet in your Form 1040 or 1040A instructions. Free downloadable irs tax forms If you are instructed to use Publication 972, you may not use the worksheet in your tax return instructions; instead, you must use Publication 972 to figure the credit. Free downloadable irs tax forms If you are not instructed to use Publication 972, you may use the Child Tax Credit Worksheet in your Form 1040 or 1040A instructions or Publication 972 to figure the credit. Free downloadable irs tax forms Additional Child Tax Credit This credit is for certain individuals who get less than the full amount of the child tax credit. Free downloadable irs tax forms The additional child tax credit may give you a refund even if you do not owe any tax. Free downloadable irs tax forms How to claim the additional child tax credit. Free downloadable irs tax forms   To claim the additional child tax credit, follow the steps below. Free downloadable irs tax forms Make sure you figured the amount, if any, of your child tax credit. Free downloadable irs tax forms See Claiming the Credit , earlier. Free downloadable irs tax forms If you answered “Yes” on line 9 or line 10 of the Child Tax Credit Worksheet in the Form 1040 or Form 1040A instructions, or line 13 of the Child Tax Credit Worksheet in Publication 972, use Parts II through IV of Schedule 8812 to see if you can take the additional child tax credit. Free downloadable irs tax forms If you have an additional child tax credit on line 13 of Schedule 8812, carry it to Form 1040, line 65, or Form 1040A, line 39. Free downloadable irs tax forms Completing Schedule 8812 (Form 1040A or 1040) Schedule 8812 contains four parts, but can really be thought of as two sections. Free downloadable irs tax forms Part I is distinct and separate from Parts II–IV. Free downloadable irs tax forms If all your children are identified by social security numbers or IRS adoption taxpayer identification numbers and you are not claiming the additional child tax credit, you do not need to complete or attach Schedule 8812 to your tax return. Free downloadable irs tax forms Part I You only need to complete Part I if you are claiming the child tax credit for a child identified by an IRS individual taxpayer identification number (ITIN). Free downloadable irs tax forms When completing Part I, only answer the questions with regard to children identified by an ITIN; you do not need to complete Part I of Schedule 8812 for any child that is identified by a social security number (SSN) or an IRS adoption taxpayer identification number (ATIN). Free downloadable irs tax forms If all the children for whom you checked the box in column 4 of line 6c on your Form 1040 or Form 1040A are identified by an SSN or an ATIN, you do not need to complete Part I of Schedule 8812. Free downloadable irs tax forms Parts II–IV Parts II–IV help you figure your additional child tax credit. Free downloadable irs tax forms Generally, you should only complete Parts II–IV if you are instructed to do so after completing the Child Tax Credit Worksheet in your tax return instructions or Publication 972. Free downloadable irs tax forms See How to claim the additional child tax credit , earlier. Free downloadable irs tax forms Prev  Up  Next   Home   More Online Publications
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The Free Downloadable Irs Tax Forms

Free downloadable irs tax forms Publication 957 - Main Content Table of Contents 1. Free downloadable irs tax forms What is Back Pay?Reporting Back Pay Back Pay Under a Statute Nonstatutory Back Pay Format for Report to the SSA Questions 2. Free downloadable irs tax forms Special Wage PaymentsReporting Special Wage Payments Reporting Nonstatutory (Nonqualified) Stock Options as Special Wage Payments Nonqualified Deferred Compensation and Section 457 Plans Additional Reporting Examples for Nonqualified Deferred Compensation (NQDC) PlansSpecial rule for box 11 of Form W-2 (distributions and deferral in the same year). Free downloadable irs tax forms 1. Free downloadable irs tax forms What is Back Pay? Back pay is pay received in a tax year(s) for actual or deemed employment in an earlier tax year(s). Free downloadable irs tax forms For social security coverage and benefit purposes, all back pay, whether or not under a statute, is wages if it is payment for covered employment. Free downloadable irs tax forms Damages for personal injury, interest, penalties, and legal fees included with back pay awards are not wages. Free downloadable irs tax forms Report all back pay. Free downloadable irs tax forms However, the tax year(s) for which back pay is credited as wages for social security purposes is different if it is awarded under a statute. Free downloadable irs tax forms See Back Pay Under a Statute , later, for more information. Free downloadable irs tax forms Reporting Back Pay The Internal Revenue Service (IRS) and the SSA consider back pay awards to be wages. Free downloadable irs tax forms However, for income tax purposes, the IRS treats all back pay as wages in the year paid. Free downloadable irs tax forms Employers should use Form W-2, Wage and Tax Statement, or electronic wage reports to report back pay as wages in the year they actually pay the employee. Free downloadable irs tax forms The SSA no longer accepts reports on tapes, cartridges, and diskettes. Free downloadable irs tax forms Example. Free downloadable irs tax forms In 2012, Terry Morris earned wages of $50,000. Free downloadable irs tax forms In the same year, she received $100,000 in settlement of a back pay case against her employer that covered the periods January 2007 through December 2011. Free downloadable irs tax forms Her employer properly reflected social security wages of $110,100 and Medicare wages of $150,000 on her 2012 Form W-2. Free downloadable irs tax forms However, if an employer did not include back pay wages on a previously filed Form W-2, magnetic media, or electronically filed wage report, the employer should prepare a wage correction report, Form W-2c, Corrected Wage and Tax Statement, or electronically filed report, to add the back pay award to the wages previously reported. Free downloadable irs tax forms Example. Free downloadable irs tax forms If, in the above example, Terry Morris' employer had prepared her 2012 Form W-2 reporting social security and Medicare wages of only $50,000 each, the employer would have to correct that report. Free downloadable irs tax forms A Form W-2c correcting the 2012 Form W-2 would show previously reported social security and Medicare wages of $50,000 and the correct amount of $110,100 for social security wages and $150,000 for Medicare wages. Free downloadable irs tax forms SSA treatment of back pay under a statute. Free downloadable irs tax forms   Under the law, the SSA credits back pay awarded under a statute to an individual's earnings record in the period(s) the wages should have been paid. Free downloadable irs tax forms This is important because wages not credited to the proper year may result in lower social security benefits or failure to meet the requirements for benefits. Free downloadable irs tax forms   However, back pay under statute payments will remain posted to the employee's social security earnings record in the year reported on Form W-2 (or Form W-2c) unless the employer or employee notifies the SSA (in a separate, special report) of the back pay under a statute payment. Free downloadable irs tax forms Then, the SSA can allocate the statutory back pay to the appropriate periods. Free downloadable irs tax forms   If a back pay award is not made under a statute, the SSA credits back pay as wages in the year paid. Free downloadable irs tax forms    If employers do notify the SSA of this payment, they should prepare a special report (with the information noted below) and send it to: Social Security Administration Attn: CPS Back Pay Staff 7-B-15 SWT 1500 Woodlawn Drive Baltimore, MD 21241-0001 Be sure to send this special report to the above address because the SSA handles it separately from other reports. Free downloadable irs tax forms    If you paid the back pay award in the same tax year to which it applies, report the wages on that year's Form W-2. Free downloadable irs tax forms No further action is necessary. Free downloadable irs tax forms Example. Free downloadable irs tax forms In 2012, Judy Wilson received a salary of $30,000 and a back pay under statute award of $2,000 for the period January through June 2012. Free downloadable irs tax forms Her employer properly reported wages of $32,000 for social security and Medicare on her 2012 Form W-2. Free downloadable irs tax forms No further action is necessary. Free downloadable irs tax forms Information the SSA needs to properly credit back pay under a statute (special report). Free downloadable irs tax forms   After you complete the special report, you or the employee should send it to the SSA when or after you submit the Form W-2 (on paper or electronically) to the SSA for the year you pay the statutory back pay to the employee. Free downloadable irs tax forms There is no statute of limitations on the filing of the special report to enable the SSA to allocate the wages. Free downloadable irs tax forms The special report must include the following information. Free downloadable irs tax forms The employer's name, address, and employer identification number (EIN). Free downloadable irs tax forms A signed statement citing the federal or state statute under which the payment was made. Free downloadable irs tax forms If the statute is not identified, the SSA will assume the payment was not under a statute and will not allocate to earlier period(s). Free downloadable irs tax forms The name and telephone number of a person to contact. Free downloadable irs tax forms The SSA may have additional questions concerning the back pay case or the individual employee's information. Free downloadable irs tax forms A list of employees receiving the payment and the following information for each employee: The tax year you paid and reported the back pay. Free downloadable irs tax forms The employee's social security number (SSN). Free downloadable irs tax forms The employee's name (as shown on his or her social security card). Free downloadable irs tax forms The amount of the back pay award excluding any amounts specifically designated otherwise, for example, damages for personal injury, interest, penalties, and legal fees. Free downloadable irs tax forms The period(s) the back pay award covers (beginning and ending dates—month and year). Free downloadable irs tax forms The other wages paid subject to social security and/or Medicare taxes and reported in the same year as the back pay award (if none, show zero)*. Free downloadable irs tax forms Do not include the back pay award shown in that wage report. Free downloadable irs tax forms If you originally submitted the report under an establishment number, show that number and the amount of money that is to remain under that establishment number. Free downloadable irs tax forms The amount to allocate to each reporting period*. Free downloadable irs tax forms This includes any amount you want allocated (if applicable) to the tax year of the award payment. Free downloadable irs tax forms If you do not give the SSA specific amounts to allocate, the SSA does the allocation by dividing the back pay award by the number of months or years covered by the award. Free downloadable irs tax forms *Note. Free downloadable irs tax forms   For periods before January 1, 1978 (before January 1, 1981, for state and local government employers covered by a Section 218 agreement), show the wage amounts for each calendar quarter ending March 31, June 30, September 30, and December 31. Free downloadable irs tax forms For all tax years, show and identify the social security and/or Medicare Qualified Government Employment (MQGE) wages (where applicable) separately. Free downloadable irs tax forms MQGE is applicable to federal employees beginning in 1983, and for certain state and local government employees beginning in 1986. Free downloadable irs tax forms For tax years 1991 and later, list the social security and Medicare wages separately. Free downloadable irs tax forms If you originally reported the individual's wages under an establishment or payroll record unit number, show the amount of wages to remain in the award year for that number and furnish that number to the SSA along with the EIN. Free downloadable irs tax forms Back Pay Under a Statute Back pay awarded under a statute is a payment by an employer following an award, determination, or agreement approved or sanctioned by a court or government agency responsible for enforcing a federal or state statute that protects an employee's right to employment or wages. Free downloadable irs tax forms Examples of pertinent statutes include: Age Discrimination in Employment Act, Americans with Disabilities Act, Equal Pay Act, Fair Labor Standards Act, National Labor Relations Act, State minimum wage laws, and State statutes that protect rights to employment and wages. Free downloadable irs tax forms Payments based on laws that have a similar effect to those listed above also may qualify as payments made under a statute. Free downloadable irs tax forms Back pay awards, under some of the statutes listed above, may be compensation for personal injury and not pay for employment. Free downloadable irs tax forms Such awards are not wages for social security coverage purposes. Free downloadable irs tax forms If a court-approved or sanctioned settlement agreement states that the agreement is not an admission of discrimination, liability, or act of wrongdoing, the statement does not change the nature of a back pay award. Free downloadable irs tax forms The payments made in such a settlement may still be back pay and wages under the rules discussed here. Free downloadable irs tax forms Nonstatutory Back Pay A payment for back wages negotiated between an employer and employee without an award, determination, or agreement approved or sanctioned by a court or government agency, the payment is not made under a statute. Free downloadable irs tax forms Delayed wage payments and retroactive pay increases resulting from union negotiation or payments under local ordinances or regulations are back pay and are wages. Free downloadable irs tax forms However, they are not payments made under a statute. Free downloadable irs tax forms If you are uncertain whether the back pay award was under a qualified statute, you may need to contact your personnel department or legal counsel or the attorney who filed the suit. Free downloadable irs tax forms Format for Report to the SSA Use the format shown in Table 1, later, to send the SSA the information needed to properly credit back pay under a statute. Free downloadable irs tax forms In a cover letter, include: Name and address of the employer, Statute under which you paid the back pay, Name and telephone number of the employer contact, and Signature of the reporting official. Free downloadable irs tax forms Under certain circumstances, back pay may be a special wage payment and excluded from wages counted under the social security earnings test. Free downloadable irs tax forms If you pay back pay to an employee age 61 or older, report it to the SSA in accordance with this section. Free downloadable irs tax forms Read Special Wage Payments, later, for additional reporting instructions. Free downloadable irs tax forms Questions If you have questions concerning back pay under a statute, call the SSA at 1-800-772-6270. Free downloadable irs tax forms Exception. Free downloadable irs tax forms   If you are a state or local government employer who was covered by an agreement under Section 218 of the Social Security Act before January 1, 1987, and you paid a back pay award before January 1, 1987, which you did not report to the SSA, contact your state Social Security Administrator's office. Free downloadable irs tax forms Table 1. Free downloadable irs tax forms Format for Report (Under Covering Letter) to Request SSA to Allocate Back Pay Under Statute Wages Employer's EIN: xx-xxxxxxx Tax Year in Which Award Payment Was Paid: 2012 (1) SSN and Employee Name (2)1 Award Amount and Period(s) (3)2,3 Other Soc. Free downloadable irs tax forms Sec. Free downloadable irs tax forms /Med. Free downloadable irs tax forms Wages Paid In Award Year (4)3 Allocation     Soc. Free downloadable irs tax forms Sec. Free downloadable irs tax forms Med. Free downloadable irs tax forms /MQGE Year Soc. Free downloadable irs tax forms Sec. Free downloadable irs tax forms Med. Free downloadable irs tax forms /MQGE xxx-xx-xxxx HELEN T. Free downloadable irs tax forms SMITH $100,000 1/2009 - 12/2012 $40,000 $40,000 2009 2010 2011 2012 $20,000 25,000 27,000 28,000 $20,000 25,000 27,000 28,000 xxx-xx-xxxx SAM W. Free downloadable irs tax forms EVANS 30,000 7/89-12/91 -0- -0- 1989 1990 1991   6,000 12,000 12,000 xxx-xx-xxxx ROLAND S. Free downloadable irs tax forms ADAMS 15,000 7/80-12/81 -0- -0- 9/80 12/80 1981 3,500 3,500 8,000   1Exclude amounts specifically designated as damages, penalties, etc. Free downloadable irs tax forms  2Exclude the amount of back pay, if any, included in that amount. Free downloadable irs tax forms  3For periods before January 1, 1978 (and for state and local government (Section 218) employers before January 1, 1981), show the wage amounts by calendar quarters. Free downloadable irs tax forms The social security and/or Medicare Qualified Government Employment (MQGE) wages (where applicable) must be shown separately FOR ALL YEARS. Free downloadable irs tax forms (Wages subject ONLY to MQGE would be shown in the Medicare/MQGE column; no wages would be shown in the Soc. Free downloadable irs tax forms Sec. Free downloadable irs tax forms column. Free downloadable irs tax forms ) For tax years 1991 and later, the social security and Medicare wages must be listed separately. Free downloadable irs tax forms Explanation of examples. Free downloadable irs tax forms Helen T. Free downloadable irs tax forms Smith–The back pay award, excluding interest, was $100,000 for the periods 1/2009-12/2012. Free downloadable irs tax forms In 2012, this employee was also paid $40,000 in other wages. Free downloadable irs tax forms (Her Form W-2 for 2012 reported $110,100 for social security and $140,000 for Medicare. Free downloadable irs tax forms The SSA allocation will result in adjusted posted wages of $68,000 for social security and $68,000 for Medicare for 2012. Free downloadable irs tax forms ) Sam W. Free downloadable irs tax forms Evans–The back pay award was $30,000 for the periods 7/89-12/91. Free downloadable irs tax forms This employee was hired in 1989 and was subject to MQGE only. Free downloadable irs tax forms He was no longer employed by this governmental employer in 2012. Free downloadable irs tax forms (His Form W-2 for 2012 reported $30,000 for social security and $30,000 for Medicare. Free downloadable irs tax forms After the SSA allocation, he will not have any net posted wages for 2012. Free downloadable irs tax forms ) Roland S. Free downloadable irs tax forms Adams–The back pay award was $15,000 for the periods 7/80-12/81. Free downloadable irs tax forms He was no longer employed by this state and local government (Section 218) employer in 2012. Free downloadable irs tax forms (His Form W-2 for 2012 reported $15,000 for social security and $15,000 for Medicare; after the SSA allocation, he will not have any net posted wages for 2012. Free downloadable irs tax forms ) If the state Social Security Administrator's office needs more information, they can contact the SSA at the following address:   Social Security Administration Office of Income Security Programs Office of Earnings and Program Integrity Policy 6401 Security Boulevard 2506 OPS Baltimore, MD 21235 2. Free downloadable irs tax forms Special Wage Payments A special wage payment (SWP) is an amount paid by an employer to an employee (or former employee) for services performed in a prior year. Free downloadable irs tax forms Employers should report to the SSA special wage payments made to employees and former employees who are recipients of social security retirement benefits. Free downloadable irs tax forms Special wage payments made to a retired employee receiving social security or to an employee who continues to work while receiving social security benefits may reduce the benefits the individual receives if not reported to the SSA. Free downloadable irs tax forms Special wage payments may include (but are not limited to): Accumulated sick and vacation pay, Back pay, Bonuses, Deferred compensation, Payments because of retirement, Sales commissions, Severance pay, and Stock options. Free downloadable irs tax forms Note. Free downloadable irs tax forms Payments made after retirement that are part of the normal payroll cycle should not be routinely reported as special wage payments. Free downloadable irs tax forms Earnings Test. Free downloadable irs tax forms   Benefits paid to a social security beneficiary under full retirement age may be reduced if the beneficiary continues to work. Free downloadable irs tax forms The SSA uses the information in boxes 1, 3, and 5 of Form W-2 to determine the beneficiary's current year earnings. Free downloadable irs tax forms Special wage payments, which are for services performed in a prior year, will increase the current year earnings on Form W-2, which also may result in a reduction in the beneficiary's benefits. Free downloadable irs tax forms If a benefit is reduced because of a special wage payment, the beneficiary must get documentation from the employer before the SSA can restore the deducted portion. Free downloadable irs tax forms Therefore, employer reports of special wage payments help prevent incorrect benefit reductions. Free downloadable irs tax forms Reporting Special Wage Payments Employers must report special wage payments for income tax purposes and social security and Medicare taxes in the year received. Free downloadable irs tax forms Report income, social security, and/or Medicare taxes for special wage payments on Form W-2. Free downloadable irs tax forms See Nonqualified Deferred Compensation and Section 457 Plans, later, for reporting nonqualified deferred compensation plan deferrals and payments on Form W-2. Free downloadable irs tax forms In addition, report to the SSA special wage payments made during the reporting year to retired employees and employees who continue to work while receiving social security benefits. Free downloadable irs tax forms Submit reports after the close of the tax year. Free downloadable irs tax forms To avoid delays in processing, submit reports in time to reach the SSA by April 1. Free downloadable irs tax forms Use one of the following reporting methods. Free downloadable irs tax forms Electronic reporting. Free downloadable irs tax forms   Special wage payment files can be sent electronically by logging onto Business Services Online (BSO) via the socialsecurity. Free downloadable irs tax forms gov website. Free downloadable irs tax forms BSO enables organizations and authorized individuals to conduct business with and submit confidential information to the Social Security Administration. Free downloadable irs tax forms You must register to use this website. Free downloadable irs tax forms The web address is www. Free downloadable irs tax forms socialsecurity. Free downloadable irs tax forms gov/bso/bsowelcome. Free downloadable irs tax forms htm. Free downloadable irs tax forms   Use the specifications and record layout shown in  Table 2, later. Free downloadable irs tax forms Only one file at a time may be submitted. Free downloadable irs tax forms If your file is large (>10MB), or you have a slow internet connection, the transmission will be faster if the file is zipped. Free downloadable irs tax forms A zipped file contains a file that has been compressed to reduce its file size. Free downloadable irs tax forms WinZip and PKZIP are examples of acceptable compression packages. Free downloadable irs tax forms   Electronic submissions not meeting the specifications in Table 2 will be rejected. Free downloadable irs tax forms Paper listing. Free downloadable irs tax forms   A paper listing can be used to report special wage payments to several employees. Free downloadable irs tax forms Use the format shown in Table 3, later. Free downloadable irs tax forms Submit paper listings to the local SSA office nearest your place of business. Free downloadable irs tax forms Visit www. Free downloadable irs tax forms socialsecurity. Free downloadable irs tax forms gov/locator to find a Social Security office near you. Free downloadable irs tax forms Form SSA-131. Free downloadable irs tax forms   Use Form SSA-131 to report special wage payments made to an employee. Free downloadable irs tax forms Also use this form to report nonqualified deferred compensation and section 457 plan deferrals and payments that could not be reported in box 11 of Form W-2. Free downloadable irs tax forms    This image is too large to be displayed in the current screen. Free downloadable irs tax forms Please click the link to view the image. Free downloadable irs tax forms Publication 957 Reporting Back Pay to the Social Security Administration Instructions for Form SSA–131   EMPLOYER INSTRUCTIONS FOR COMPLETING SPECIAL WAGE PAYMENT FORM 1. Free downloadable irs tax forms Provide the EIN that was used or will be used to report the employee's wages on the Form W-2. Free downloadable irs tax forms 2. Free downloadable irs tax forms Enter the date the employee retired. Free downloadable irs tax forms Enter “Not Retired” if the employee has not retired. Free downloadable irs tax forms 3. Free downloadable irs tax forms Enter the date that the employee last performed services; was not expected to return to work; and was not subject to recall to render additional services. Free downloadable irs tax forms This date should be the same as or earlier than the date in item “2”. Free downloadable irs tax forms Enter “Not Retired” if the employee has not retired. Free downloadable irs tax forms 4. Free downloadable irs tax forms Enter the wages that were paid to the employee in the tax year that were for services that were performed in years prior to the tax year or that were paid on account of retirement. Free downloadable irs tax forms  Examples (not all inclusive) of payments to be included: Payments in lieu of vacation that were earned in a year prior to the tax year. Free downloadable irs tax forms Accumulated sick payments which were paid in a lump sum based on “retirement” as the sole condition of payment. Free downloadable irs tax forms Accumulated sick payments paid at or after the date in item 3, which were earned in a year prior to the tax year. Free downloadable irs tax forms Payments “on account of retirement”–dismissal, severance or termination pay paid because of retirement. Free downloadable irs tax forms Bonuses which are paid pursuant to a prior contract, agreement or promise causing the employee to expect such payments regularly; or announced to induce the employee to work more steadily, rapidly or efficiently or to remain with the employer. Free downloadable irs tax forms Stock Options. Free downloadable irs tax forms   Do not include in item “4” payments: For annual, sick, holiday, or vacation pay if used (absence from work) prior to the date of retirement (earlier of items “2” or “3”). Free downloadable irs tax forms That were reported or will be reported under “Nonqualified Plans” on the Form W-2. Free downloadable irs tax forms That were deducted from the employee's wages and paid to a deferred compensation plan (e. Free downloadable irs tax forms g. Free downloadable irs tax forms , 401k). Free downloadable irs tax forms Employees health and dental plan benefits (non-covered/non-taxable for Social Security Wages). Free downloadable irs tax forms Bonuses earned and paid in the tax year. Free downloadable irs tax forms 5. Free downloadable irs tax forms Check whether payments listed in item 4 will be made for years after the tax year. Free downloadable irs tax forms If yes, please show the amounts and years in which these will be paid, if known. Free downloadable irs tax forms 6. Free downloadable irs tax forms Nonqualified deferred compensation and section 457 plans only. Free downloadable irs tax forms If you were unable to report nonqualified deferred compensation or section 457 plan payments and deferrals (contributions) on Form W-2 because both payments and deferrals occurred during the year, show the amount of wages earned by the employee during the tax year. Free downloadable irs tax forms Generally, the wages earned will be the compensation reported in block 1 of Form W-2 less payments from a nonqualified deferred compensation (or 457) plan, but including any amounts deferred under the plan during the tax year (See IRS Publication 957). Free downloadable irs tax forms Paperwork/Privacy Act Notice: This report is authorized by regulation 20 CFR 404. Free downloadable irs tax forms 702. Free downloadable irs tax forms The information that you provide will be used in making a determination regarding the amount of Social Security benefits payable to the above named individual. Free downloadable irs tax forms While your response is voluntary, if you do not respond we may not be able to make a correct determination regarding the amount of Social Security benefits payable to the above named individual for the year in question. Free downloadable irs tax forms We may also use the information you give us when we match records by computer. Free downloadable irs tax forms Matching programs compare our records with those of other Federal, State, or local government agencies. Free downloadable irs tax forms Many agencies may use matching programs to find or prove that a person qualifies for benefits paid by the Federal Government. Free downloadable irs tax forms The law allows us to do this even if you do not agree to it. Free downloadable irs tax forms Explanations about these and other reasons why information you provide us may be used or given out are available in Social Security Offices. Free downloadable irs tax forms If you want to learn more about this, contact any Social Security Office. Free downloadable irs tax forms The Paperwork Reduction Act: This information collection meets the clearance requirements of 44 U. Free downloadable irs tax forms S. Free downloadable irs tax forms C. Free downloadable irs tax forms §3507, as amended by Section 2 of the Paperwork Reduction Act of 1995. Free downloadable irs tax forms You are not required to answer these questions unless we display a valid Office of Management and Budget control number. Free downloadable irs tax forms We estimate that it will take you about 20 minutes to read the instructions, gather the necessary facts, and answer the questions. Free downloadable irs tax forms Form SSA-131 (8-2001) EF (06-2002)   Submit Form SSA-131 to the SSA office nearest your place of business. Free downloadable irs tax forms Or, the employee can submit it to the SSA office handling the claim. Free downloadable irs tax forms You or the employee must submit this form before the SSA can exclude the special wage payments for purposes of the earnings test. Free downloadable irs tax forms If reporting on more than one employee, complete a separate Form SSA-131 for each employee or use the paper listing format (except for reporting nonqualified and section 457 plan deferrals and payments) in Table 3. Free downloadable irs tax forms Do not report payments from nonqualified deferred compensation or section 457 plans that were reported in box 11 of Form W-2. Free downloadable irs tax forms Use Form SSA-131 if deferrals to and payments from nonqualified or section 457 plans occurred during the tax year. Free downloadable irs tax forms Reporting Nonstatutory (Nonqualified) Stock Options as Special Wage Payments A nonstatutory (nonqualified) option to purchase stock which is exercised in a year after the year in which the option was earned is a special wage payment. Free downloadable irs tax forms It should not count for the social security earnings test. Free downloadable irs tax forms Nonstatutory (nonqualified) options exercised as special wage payments by retired employees or employees who continue to work while receiving social security benefits should be reported by employers using the above reporting methods. Free downloadable irs tax forms Nonqualified Deferred Compensation and Section 457 Plans A nonqualified deferred compensation plan is a plan or arrangement established and maintained by an employer for one or more of its employees that provides for the deferral of compensation, but does not meet the requirements for a tax-qualified deferred compensation plan. Free downloadable irs tax forms For social security and Medicare purposes, deferred compensation plans for employees of state and local governments (section 457 plans) are treated the same as nonqualified plans. Free downloadable irs tax forms Nonqualified and section 457 plans are reported differently than other special wage payments. Free downloadable irs tax forms See Reporting Amounts Deferred to Nonqualified and Section 457 Plans below for specific instructions. Free downloadable irs tax forms Reporting Amounts Deferred to Nonqualified and Section 457 Plans Generally, when the related services are performed, nonqualified deferred compensation is subject to social security and Medicare tax when deferred. Free downloadable irs tax forms However, if nonqualified and section 457 plans contain provisions that delay the employee's right to receive payments from the plan, a period of substantial risk of forfeiture exists. Free downloadable irs tax forms The plans' deferrals, or contributions, are not subject to social security and Medicare taxes until the period of substantial risk of forfeiture ends. Free downloadable irs tax forms No risk of forfeiture. Free downloadable irs tax forms   If there is no risk of forfeiture, report wage amounts deferred to a nonqualified deferred compensation or section 457 plan in box 3 (up to the wage base maximum) and/or box 5 of Form W-2. Free downloadable irs tax forms Example. Free downloadable irs tax forms Company X's nonqualified deferred compensation plan allows the deferral of up to $20,000 of employee salaries each year. Free downloadable irs tax forms The plan has no risk of forfeiture. Free downloadable irs tax forms In 2012, Employee A defers $20,000 to the plan from a total salary of $200,000. Free downloadable irs tax forms Form W-2 Completion Amount Box 1 $200,000 Box 3* 110,100 Box 5 200,000 *Wage base maximum for tax year 2012 Risk of forfeiture lapses before retirement. Free downloadable irs tax forms   If the substantial risk of forfeiture lapses before the employee retires, report all past contributions to the plan (or the value of the plan), including accumulated earned interest, in box 3 (up to the wage base maximum) and/or box 5 of Form W-2. Free downloadable irs tax forms The accumulated deferrals are reported along with any other social security and Medicare wages earned during the year. Free downloadable irs tax forms   Report in box 11 of Form W-2 the amount of deferrals, including any accumulated interest, that became taxable for social security and Medicare taxes during the year (but were for prior year services) because the deferred amounts were no longer subject to a substantial risk of forfeiture. Free downloadable irs tax forms If the employee continues working, future deferrals are social security and Medicare wages when they are earned. Free downloadable irs tax forms    Do not include in box 11 deferrals that are included in boxes 3 and/or 5 and that are for current year services. Free downloadable irs tax forms Risk of forfeiture lapses at retirement. Free downloadable irs tax forms   When an employee's right to a payment is contingent upon working until retirement, report all past contributions to the plan (or the value of the plan), including accumulated earned interest, as social security and/or Medicare wages in the year of retirement. Free downloadable irs tax forms Add the amount to other wages paid in that year, and enter in box 3 (up to the wage base maximum) and/or box 5 of Form W-2. Free downloadable irs tax forms   Report in box 11 of Form W-2 the amount of deferrals, including any accumulated interest, that became taxable for social security and Medicare taxes during the year (but were for prior year services) because the deferred amounts were no longer subject to a substantial risk of forfeiture. Free downloadable irs tax forms    Do not include in box 11 deferrals that are included in boxes 3 and/or 5 and that are for current year services. Free downloadable irs tax forms Example—risk of forfeiture. Free downloadable irs tax forms At the end of the risk-of-forfeiture period for Company Y's nonqualified deferred compensation plan, Employee B's accumulated deferrals, plus interest earned by the plan, are $120,000, not including B's $20,000 deferral for this year. Free downloadable irs tax forms B's wages, including this year's deferred amount, are $80,000. Free downloadable irs tax forms Form W-2 Completion Amount Box 1 $60,000 Box 3* 110,100 Box 5 200,000 Box 11 120,000 *Wage base maximum for tax year 2012 Reporting Payments From Nonqualified and Nongovernmental Section 457 Plans When an employee or former employee retires and begins receiving payments (distributions) from a nonqualified or nongovernmental section 457 plan, report the payments in boxes 1 and 11 of Form W-2. Free downloadable irs tax forms Report payments (distributions) from a governmental section 457 plan on Form 1099-R, Distributions from Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. Free downloadable irs tax forms Example. Free downloadable irs tax forms Employee D retired from the XYZ company and began receiving social security benefits. Free downloadable irs tax forms XYZ paid D a $12,000 bonus upon retirement for sales made in a prior year, and D received $25,000 in payments from XYZ's nonqualified deferred compensation plan. Free downloadable irs tax forms In addition, D agreed to continue performing services for XYZ, but on a part-time basis for wages of $15,000 per year. Free downloadable irs tax forms D made no deferrals to the nonqualified plan this year. Free downloadable irs tax forms Form W-2 Completion Amount Box 1 $52,000 Box 3 27,000 Box 5 27,000 Box 11 25,000 Report the $12,000 bonus to the SSA using electronic reporting, a paper listing, or Form SSA-131. Free downloadable irs tax forms For more information, see Reporting Special Wage Payments , earlier. Free downloadable irs tax forms Reporting Payments and Deferrals in the Same Year Do not complete box 11 when payments (distributions) are made from a nonqualified plan and deferrals are reported in boxes 3 and/or 5 of Form W-2 (including current year deferrals). Free downloadable irs tax forms Report to the SSA on Form SSA-131 the total amount the employee earned during the tax year. Free downloadable irs tax forms Normally, the amount earned is the amount reported in box 1 of Form W-2 less payments from a nonqualified or section 457 plan, but including any amounts deferred under the plan during the tax year. Free downloadable irs tax forms See Form SSA-131 and its instructions, earlier. Free downloadable irs tax forms Example. Free downloadable irs tax forms Employee K retired this year from Company XYZ and began receiving social security benefits. Free downloadable irs tax forms During the year he earned wages of $50,000 and deferred $35,000 of the wages into the company's nonqualified deferred compensation plan. Free downloadable irs tax forms K also received $75,000 in payments from the company's nonqualified plan. Free downloadable irs tax forms Form W-2 Completion Amount Special Wage Payment $75,000 Wages 50,000 Minus: deferral 35,000 Total reported in Box 1 $90,000     Wages including deferral reported in  Boxes 3 and 5 $50,000     Leave Box 11 blank. Free downloadable irs tax forms File Form SSA-131 -0-     Form SSA-131 Completion Amount from Box 1 of Form W-2 $90,000 Minus: payments from a nonqualified plan 75,000 Plus: amounts deferred into the plan during the year 35,000 Total wages earned for purposes of Form SSA-131 (item 6) $50,000 Additional Reporting Examples for Nonqualified Deferred Compensation (NQDC) Plans It is not necessary to show amounts deferred during the year under an NQDC plan subject to section 409A. Free downloadable irs tax forms If you report section 409A deferrals, show the amount in box 12 of Form W-2 using code Y. Free downloadable irs tax forms For more information, see Notice 2008-115, 2008-52 I. Free downloadable irs tax forms R. Free downloadable irs tax forms B. Free downloadable irs tax forms 1367, available at www. Free downloadable irs tax forms irs. Free downloadable irs tax forms gov/irb/2008-52_IRB/ar10. Free downloadable irs tax forms html. Free downloadable irs tax forms Special reporting rules apply when an NQDC plan is not compliant with section 409A (when there has been a “plan failure”). Free downloadable irs tax forms Income included under section 409A from an NQDC plan is reported in box 1 and box 12 of Form W-2 using code Z. Free downloadable irs tax forms See Notice 2008-115. Free downloadable irs tax forms The following examples use small dollar amounts for illustrative purposes. Free downloadable irs tax forms However, the amount reported in box 3 of Form W-2 is always limited by the social security earnings wage base (for example, $110,100 for 2012). Free downloadable irs tax forms The term “vested” in the following examples means that the amount deferred is not subject to a substantial risk of forfeiture. Free downloadable irs tax forms Conversely, the term “not vested” means that the amount deferred is subject to a substantial risk of forfeiture. Free downloadable irs tax forms The examples assume that the NQDC plan is in compliance with section 409A, and that amounts deferred under the plan are not includible in gross income as they are deferred. Free downloadable irs tax forms For purposes of the examples, it is assumed that the regular pay of the employee is remuneration for employment and wages for employment tax purposes except to the extent the deferral of a portion of the regular pay results in a reduction in wages. Free downloadable irs tax forms Example 1: Deferral that is immediately vested (no substantial risk of forfeiture) with no distributions and no vesting of prior-year deferrals. Free downloadable irs tax forms For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into her employer’s NQDC plan. Free downloadable irs tax forms The deferral of $20 was vested upon deferral and there was an employer match of $10 under the plan, which was also vested. Free downloadable irs tax forms Regular pay = $200; Deferral, vested = $20; Employer match, vested = $10. Free downloadable irs tax forms Form W-2 Completion Amount Box 1 ($200 Regular pay minus $20 vested deferral) $180 Box 3 ($200 Regular pay plus $10 Employer match, vested) 210 Box 5 ($200 Regular pay plus $10 Employer match, vested) 210 Box 11 -0- Example 2: Deferral with delayed vesting (substantial risk of forfeiture) of employee and employer portions (no distributions and no vesting of prior-year deferrals). Free downloadable irs tax forms For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into the employer’s nonqualified deferred compensation plan. Free downloadable irs tax forms The deferral of $20 was not vested upon deferral, and there was an employer match of $10 under the plan, which was also not vested. Free downloadable irs tax forms Regular pay = $200; Deferral, not vested = $20; Employer match, not vested = $10. Free downloadable irs tax forms Form W-2 Completion Amount Box 1 ($200 Regular pay minus $20 Deferral, not vested) $180 Box 3 ($200 Regular pay minus $20 Deferral, not vested) 180 Box 5 ($200 Regular pay minus $20 Deferral, not vested) 180 Box 11 -0- Example 3: Deferral that is immediately vested with prior-year deferrals and investment earnings on the prior-year deferrals that are now vesting (no distributions). Free downloadable irs tax forms For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into the employer’s nonqualified deferred compensation plan. Free downloadable irs tax forms The deferral of $20 was vested upon deferral. Free downloadable irs tax forms During the year, $100 of prior-year deferrals and $15 of investment earnings on the $100 of prior-year deferrals became vested. Free downloadable irs tax forms Regular pay = $200; Deferral, vested = $20; Vesting of prior-year deferrals = $100; Vesting of investment earnings on $100 of prior-year deferral = $15. Free downloadable irs tax forms Form W-2 Completion Amount Box 1 ($200 Regular pay minus $20 Deferral, vested) $180 Box 3 ($200 Regular pay plus $100 vested prior-year deferral plus $15 earnings on deferral) 315 Box 5 ($200 Regular pay plus $100 vested prior-year deferral plus $15 vested investment earnings on prior year deferral) 315 Box 11 ($100 vested prior-year deferral plus $15 earnings) 115 Example 4: No deferrals but there are distributions (no vesting of prior-year deferrals). Free downloadable irs tax forms For the year, the employee’s regular pay was $100, and the employee deferred no pay into the employer’s NQDC plan. Free downloadable irs tax forms There was no vesting of prior-year deferrals under the plan. Free downloadable irs tax forms During the year, there were total distributions of $50 from the plan to the employee. Free downloadable irs tax forms Regular pay = $100; Distribution = $50. Free downloadable irs tax forms Form W-2 Completion Amount Box 1 ($100 Regular pay plus $50 Distribution) $150 Box 3 ($100 Regular pay ) 100 Box 5 ($100 Regular pay) 100 Box 11 ($50 Distribution) 50 Special rule for box 11 of Form W-2 (distributions and deferral in the same year). Free downloadable irs tax forms   If, in the same year, there are NQDC distributions and there are deferrals that are reportable in boxes 3 and/or 5 (current or prior-year deferrals) of Form W-2, do not complete box 11. Free downloadable irs tax forms Instead, report on Form SSA-131 the total amount the employee earned during the year. Free downloadable irs tax forms * Submit the SSA-131 to the nearest SSA office or give it to the employee. Free downloadable irs tax forms   *Generally, the amount earned by the employee during the tax year for purposes of item 6 of Form SSA-131 is the amount reported in box 1 of Form W-2 plus current-year deferrals that are vested (employee and employer portions) less distributions. Free downloadable irs tax forms Do not consider prior-year deferrals that are vesting in the current year. Free downloadable irs tax forms If there was a plan failure, the box 1 amount in this calculation should be as if there were no plan failure. Free downloadable irs tax forms Example 5: Deferral that is immediately vested and there are distributions (no vesting of prior-year deferrals). Free downloadable irs tax forms For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into the employer’s NQDC plan. Free downloadable irs tax forms There was also an employer match of $10. Free downloadable irs tax forms The deferral and employer match were vested upon deferral. Free downloadable irs tax forms There was no vesting of prior-year deferrals under the plan. Free downloadable irs tax forms During the year, there were total distributions of $50 from the plan to the employee. Free downloadable irs tax forms Regular pay = $200; Deferral, vested = $20; Employer match, vested = $10; Distribution = $50. Free downloadable irs tax forms Form W-2 Completion Amount Box 1 ($50 Special Wage Payment (Distribution) plus $200 Regular pay minus $20 Deferral, vested) $230 Boxes 3 and 5 ($200 Regular pay plus $10 vested employer match) 210 Leave Box 11 blank. Free downloadable irs tax forms File Form SSA-131 -0-     Form SSA-131 Completion Item 6 - amount of wages earned by the employee during the tax year ($230 from Box 1 of Form W-2 minus $50 Distribution plus $30 vested current year employee deferral and employer match) $210 Example 6: Deferral with delayed vesting and there are distributions (no vesting of prior-year deferrals). Free downloadable irs tax forms For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into the employer’s NQDC plan. Free downloadable irs tax forms The deferral was not vested upon deferral. Free downloadable irs tax forms There was no vesting of prior-year deferrals under the plan. Free downloadable irs tax forms During the year, there were total distributions of $50 from the plan to the employee. Free downloadable irs tax forms Regular pay = $200; Deferral, not vested = $20; Distribution = $50. Free downloadable irs tax forms Form W-2 Completion Amount Box 1 ($50 Special Wage Payment (Distribution) plus $200 Regular pay minus $20 Deferral, not vested) $230 Boxes 3 and 5 ($200 Regular pay minus $20 deferral that is not vested) 180 Box 11 ($50 Distribution). Free downloadable irs tax forms 50 Example 7: Deferral that is immediately vested and there are distributions (also vesting of prior-year deferrals and earnings on those prior-year deferrals). Free downloadable irs tax forms For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into the employer’s NQDC plan. Free downloadable irs tax forms The deferral was vested upon deferral. Free downloadable irs tax forms There was vesting of $100 of prior-year deferrals and $15 of earnings on the $100 prior-year deferral under the plan. Free downloadable irs tax forms During the year, there were total distributions of $50 from the plan to the employee. Free downloadable irs tax forms Regular pay = $200; Deferral, vested = $20; Distribution = $50; Vesting of prior-year deferrals ($100) and earnings on those prior-year deferrals ($15) = $115. Free downloadable irs tax forms Form W-2 Completion Amount Box 1 ($50 Special Wage Payment (Distribution) plus $200 Regular pay minus $20 vested deferral $230 Boxes 3 and 5 ($200 Regular pay Plus $115 vested prior deferral (with vested earnings on the deferral)) 315 Leave Box 11 blank. Free downloadable irs tax forms File Form SSA-131 -0-     Form SSA-131 Completion Item 6, amount of wages earned by the employee during the tax year ($230 from Box 1 of Form W-2 minus $50 Distribution plus $20 vested current year deferral) $200 Example 8: Deferral with delayed vesting and there are distributions (vesting of prior-year deferrals, including employer matches, and earnings on those deferrals). Free downloadable irs tax forms For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into the employer’s NQDC plan. Free downloadable irs tax forms The deferral was not vested upon deferral. Free downloadable irs tax forms There was also vesting of prior-year deferrals and employer matches and earnings on these amounts under the plan ($115). Free downloadable irs tax forms During the year, there were total distributions of $50 from the plan to the employee. Free downloadable irs tax forms Regular pay = $200; Deferral, not vested = $20; Distribution = $50; Vesting of prior-year deferrals and employer match = $100 plus earnings on that $100 of $15. Free downloadable irs tax forms Form W-2 Completion Amount Box 1 ($50 Special Wage Payment (Distribution) plus $200 regular pay minus $20 Deferral, not vested) $230 Boxes 3 and 5 ($200 Regular pay plus $115 vested prior-year deferral and prior year employer match and earning on the prior year amounts minus $20 deferral that is not vested) 295 Leave Box 11 blank. Free downloadable irs tax forms File Form SSA-131 -0-     Form SSA-131 Completion Item 6 ($230 Amount from Box 1 of Form W-2 minus $50 Distribution) $180 Table 2. Free downloadable irs tax forms Specifications for Electronic Reporting of Special Wage Payments Record Position  Field Size   Description Start End 1 3 3 Record Type—must include only the capital letters “SWP” 4 12 9 SSN—must be numeric and may not be all zeros 13 27 15 Last Name—all capitals and no punctuation; may have blanks on right only 28 38 11 First Name—all capitals and no punctuation; may have blanks on right only 39 39 1 Middle Initial—must be either a capital letter or blank 40 48 9 EIN—must be numeric and may not be all zeros 49 59 11 Payment—must be numeric; may not be all zeros; last two digits on right are assumed to be cents; no period or dollar sign 60 63 4 Payment Year—must be only a four-digit year 64 66 3 SSA Office Code—must be numeric and may be all zeros 67 67 1 Payment Type Code—must be the capital letter “T” 68 117 50 Filler  The record format is a fixed length of 117. Free downloadable irs tax forms  The file format is ASCII. Free downloadable irs tax forms  Submit only one file at a time. Free downloadable irs tax forms   Table 3. Free downloadable irs tax forms Sample—Paper Listing for Reporting Special Wage Payments to Several Employees Report of Special Wage PaymentsTax Year: Page of A. Free downloadable irs tax forms Employer Name: EIN:   Address: Contact Name:     Phone: ( )   . Free downloadable irs tax forms 1) B. Free downloadable irs tax forms Employee Name: (Last) (First) (MI)   C. Free downloadable irs tax forms SSN: D. Free downloadable irs tax forms SWP:$ E. Free downloadable irs tax forms Type: Other: 2) B. Free downloadable irs tax forms Employee Name: (Last) (First) (MI)   C. Free downloadable irs tax forms SSN: D. Free downloadable irs tax forms SWP:$ E. Free downloadable irs tax forms Type: Other: 3) B. Free downloadable irs tax forms Employee Name: (Last) (First) (MI)   C. Free downloadable irs tax forms SSN: D. Free downloadable irs tax forms SWP:$ E. Free downloadable irs tax forms Type: Other: 4) B. Free downloadable irs tax forms Employee Name: (Last) (First) (MI)   C. Free downloadable irs tax forms SSN: D. Free downloadable irs tax forms SWP:$ E. Free downloadable irs tax forms Type: Other: 5) B. Free downloadable irs tax forms Employee Name: (Last) (First) (MI)   C. Free downloadable irs tax forms SSN: D. Free downloadable irs tax forms SWP:$ E. Free downloadable irs tax forms Type: Other:     INSTRUCTIONS:   Enter tax year and page number. Free downloadable irs tax forms   A. Free downloadable irs tax forms Employer name, employer identification number (EIN), address, the name of a contact person, and a phone number where the contact person can be reached during normal business hours. Free downloadable irs tax forms   B. Free downloadable irs tax forms Employee's name. Free downloadable irs tax forms   C. Free downloadable irs tax forms Employee's social security number (SSN). Free downloadable irs tax forms   D. Free downloadable irs tax forms Total amount of special wage payments made to the employee. Free downloadable irs tax forms   E. Free downloadable irs tax forms Type of special wage payment from the following list: (1) Vacation Pay, (2) Sick Pay, (3) Severance Pay,  (4) Bonus, (5) Deferred Compensation, (6) Stock Options, and (7) Other—Please explain. Free downloadable irs tax forms   Do not use a paper listing for nonqualified deferred compensation and section 457 plan deferrals and payments that could not be reported in block 11 of Form W-2. Free downloadable irs tax forms (Get Form SSA-131. Free downloadable irs tax forms )                 Prev  Up  Next   Home   More Online Publications