Filing Your Taxes Online is Fast, Easy and Secure.
Start now and receive your tax refund in as little as 7 days.

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

Find tax credits for everything from school tuition to buying a hybri

3. E-File for FREE

E-file free with direct deposit to get your refund in as few as 7 days.

Filing your taxes with paper mail can be difficult and it could take weeks for your refund to arrive. IRS e-file is easy, fast and secure. There is no paperwork going to the IRS so tax refunds can be processed in as little as 7 days with direct deposit. As you prepare your taxes online, you can see your tax refund in real time.

FREE audit support and representation from an enrolled agent – NEW and only from H&R Block

Free E File Irs

1040ez Form Booklet2009 Free Tax Software2010 Amended Tax ReturnH And R Block FreeH&r Block Free Tax FilingVita Tax Program 2012 LocationsWww Irs Gov 1040xTurbo Tax 2006Taxes H&r Block1040ezFiling Taxes For 2012 Late1040 Ez Tax Form 20122011 E FileIrs1040ezformFreetaxusa 2012Need To File 2010 TaxesFree 2011 Tax SoftwareWww H & R Block1040x File1040ez Tax Return Forms 2013How To Amend Tax Return TurbotaxFree State And Federal Tax EfileFree Online Ez Form1040ez Tax Return Forms 20132011 Ez Tax FormFiling Taxes Self EmployedH & R Block Advantage Free File2011 1040ez InstructionsIncome Tax Forms 20122013 1040ez FormCan You File 2011 Taxes OnlineIrs Gov 1040x InstructionsIrs Form 1040nrFree Taxes For 20121040 Short FormFree Income Tax FormsHrblock TaxHow Do I Amend My 2013 Tax ReturnIrs 2009 Tax FormsWww.irs.gov1040x

Free E File Irs

Free e file irs Publication 957 - Main Content Table of Contents 1. Free e file irs What is Back Pay?Reporting Back Pay Back Pay Under a Statute Nonstatutory Back Pay Format for Report to the SSA Questions 2. Free e file irs 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 e file irs 1. Free e file irs 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 e file irs 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 e file irs Damages for personal injury, interest, penalties, and legal fees included with back pay awards are not wages. Free e file irs Report all back pay. Free e file irs 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 e file irs See Back Pay Under a Statute , later, for more information. Free e file irs Reporting Back Pay The Internal Revenue Service (IRS) and the SSA consider back pay awards to be wages. Free e file irs However, for income tax purposes, the IRS treats all back pay as wages in the year paid. Free e file irs 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 e file irs The SSA no longer accepts reports on tapes, cartridges, and diskettes. Free e file irs Example. Free e file irs In 2012, Terry Morris earned wages of $50,000. Free e file irs 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 e file irs Her employer properly reflected social security wages of $110,100 and Medicare wages of $150,000 on her 2012 Form W-2. Free e file irs 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 e file irs Example. Free e file irs 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 e file irs 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 e file irs SSA treatment of back pay under a statute. Free e file irs   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 e file irs 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 e file irs   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 e file irs Then, the SSA can allocate the statutory back pay to the appropriate periods. Free e file irs   If a back pay award is not made under a statute, the SSA credits back pay as wages in the year paid. Free e file irs    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 e file irs    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 e file irs No further action is necessary. Free e file irs Example. Free e file irs 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 e file irs Her employer properly reported wages of $32,000 for social security and Medicare on her 2012 Form W-2. Free e file irs No further action is necessary. Free e file irs Information the SSA needs to properly credit back pay under a statute (special report). Free e file irs   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 e file irs There is no statute of limitations on the filing of the special report to enable the SSA to allocate the wages. Free e file irs The special report must include the following information. Free e file irs The employer's name, address, and employer identification number (EIN). Free e file irs A signed statement citing the federal or state statute under which the payment was made. Free e file irs 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 e file irs The name and telephone number of a person to contact. Free e file irs The SSA may have additional questions concerning the back pay case or the individual employee's information. Free e file irs 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 e file irs The employee's social security number (SSN). Free e file irs The employee's name (as shown on his or her social security card). Free e file irs 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 e file irs The period(s) the back pay award covers (beginning and ending dates—month and year). Free e file irs 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 e file irs Do not include the back pay award shown in that wage report. Free e file irs 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 e file irs The amount to allocate to each reporting period*. Free e file irs This includes any amount you want allocated (if applicable) to the tax year of the award payment. Free e file irs 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 e file irs *Note. Free e file irs   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 e file irs For all tax years, show and identify the social security and/or Medicare Qualified Government Employment (MQGE) wages (where applicable) separately. Free e file irs MQGE is applicable to federal employees beginning in 1983, and for certain state and local government employees beginning in 1986. Free e file irs For tax years 1991 and later, list the social security and Medicare wages separately. Free e file irs 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 e file irs 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 e file irs 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 e file irs Payments based on laws that have a similar effect to those listed above also may qualify as payments made under a statute. Free e file irs Back pay awards, under some of the statutes listed above, may be compensation for personal injury and not pay for employment. Free e file irs Such awards are not wages for social security coverage purposes. Free e file irs 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 e file irs The payments made in such a settlement may still be back pay and wages under the rules discussed here. Free e file irs 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 e file irs 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 e file irs However, they are not payments made under a statute. Free e file irs 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 e file irs 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 e file irs 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 e file irs Under certain circumstances, back pay may be a special wage payment and excluded from wages counted under the social security earnings test. Free e file irs If you pay back pay to an employee age 61 or older, report it to the SSA in accordance with this section. Free e file irs Read Special Wage Payments, later, for additional reporting instructions. Free e file irs Questions If you have questions concerning back pay under a statute, call the SSA at 1-800-772-6270. Free e file irs Exception. Free e file irs   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 e file irs Table 1. Free e file irs 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 e file irs Sec. Free e file irs /Med. Free e file irs Wages Paid In Award Year (4)3 Allocation     Soc. Free e file irs Sec. Free e file irs Med. Free e file irs /MQGE Year Soc. Free e file irs Sec. Free e file irs Med. Free e file irs /MQGE xxx-xx-xxxx HELEN T. Free e file irs 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 e file irs EVANS 30,000 7/89-12/91 -0- -0- 1989 1990 1991   6,000 12,000 12,000 xxx-xx-xxxx ROLAND S. Free e file irs 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 e file irs  2Exclude the amount of back pay, if any, included in that amount. Free e file irs  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 e file irs The social security and/or Medicare Qualified Government Employment (MQGE) wages (where applicable) must be shown separately FOR ALL YEARS. Free e file irs (Wages subject ONLY to MQGE would be shown in the Medicare/MQGE column; no wages would be shown in the Soc. Free e file irs Sec. Free e file irs column. Free e file irs ) For tax years 1991 and later, the social security and Medicare wages must be listed separately. Free e file irs Explanation of examples. Free e file irs Helen T. Free e file irs Smith–The back pay award, excluding interest, was $100,000 for the periods 1/2009-12/2012. Free e file irs In 2012, this employee was also paid $40,000 in other wages. Free e file irs (Her Form W-2 for 2012 reported $110,100 for social security and $140,000 for Medicare. Free e file irs The SSA allocation will result in adjusted posted wages of $68,000 for social security and $68,000 for Medicare for 2012. Free e file irs ) Sam W. Free e file irs Evans–The back pay award was $30,000 for the periods 7/89-12/91. Free e file irs This employee was hired in 1989 and was subject to MQGE only. Free e file irs He was no longer employed by this governmental employer in 2012. Free e file irs (His Form W-2 for 2012 reported $30,000 for social security and $30,000 for Medicare. Free e file irs After the SSA allocation, he will not have any net posted wages for 2012. Free e file irs ) Roland S. Free e file irs Adams–The back pay award was $15,000 for the periods 7/80-12/81. Free e file irs He was no longer employed by this state and local government (Section 218) employer in 2012. Free e file irs (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 e file irs ) 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 e file irs 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 e file irs Employers should report to the SSA special wage payments made to employees and former employees who are recipients of social security retirement benefits. Free e file irs 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 e file irs 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 e file irs Note. Free e file irs Payments made after retirement that are part of the normal payroll cycle should not be routinely reported as special wage payments. Free e file irs Earnings Test. Free e file irs   Benefits paid to a social security beneficiary under full retirement age may be reduced if the beneficiary continues to work. Free e file irs The SSA uses the information in boxes 1, 3, and 5 of Form W-2 to determine the beneficiary's current year earnings. Free e file irs 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 e file irs 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 e file irs Therefore, employer reports of special wage payments help prevent incorrect benefit reductions. Free e file irs 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 e file irs Report income, social security, and/or Medicare taxes for special wage payments on Form W-2. Free e file irs See Nonqualified Deferred Compensation and Section 457 Plans, later, for reporting nonqualified deferred compensation plan deferrals and payments on Form W-2. Free e file irs 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 e file irs Submit reports after the close of the tax year. Free e file irs To avoid delays in processing, submit reports in time to reach the SSA by April 1. Free e file irs Use one of the following reporting methods. Free e file irs Electronic reporting. Free e file irs   Special wage payment files can be sent electronically by logging onto Business Services Online (BSO) via the socialsecurity. Free e file irs gov website. Free e file irs BSO enables organizations and authorized individuals to conduct business with and submit confidential information to the Social Security Administration. Free e file irs You must register to use this website. Free e file irs The web address is www. Free e file irs socialsecurity. Free e file irs gov/bso/bsowelcome. Free e file irs htm. Free e file irs   Use the specifications and record layout shown in  Table 2, later. Free e file irs Only one file at a time may be submitted. Free e file irs If your file is large (>10MB), or you have a slow internet connection, the transmission will be faster if the file is zipped. Free e file irs A zipped file contains a file that has been compressed to reduce its file size. Free e file irs WinZip and PKZIP are examples of acceptable compression packages. Free e file irs   Electronic submissions not meeting the specifications in Table 2 will be rejected. Free e file irs Paper listing. Free e file irs   A paper listing can be used to report special wage payments to several employees. Free e file irs Use the format shown in Table 3, later. Free e file irs Submit paper listings to the local SSA office nearest your place of business. Free e file irs Visit www. Free e file irs socialsecurity. Free e file irs gov/locator to find a Social Security office near you. Free e file irs Form SSA-131. Free e file irs   Use Form SSA-131 to report special wage payments made to an employee. Free e file irs 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 e file irs    This image is too large to be displayed in the current screen. Free e file irs Please click the link to view the image. Free e file irs 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 e file irs Provide the EIN that was used or will be used to report the employee's wages on the Form W-2. Free e file irs 2. Free e file irs Enter the date the employee retired. Free e file irs Enter “Not Retired” if the employee has not retired. Free e file irs 3. Free e file irs 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 e file irs This date should be the same as or earlier than the date in item “2”. Free e file irs Enter “Not Retired” if the employee has not retired. Free e file irs 4. Free e file irs 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 e file irs  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 e file irs Accumulated sick payments which were paid in a lump sum based on “retirement” as the sole condition of payment. Free e file irs Accumulated sick payments paid at or after the date in item 3, which were earned in a year prior to the tax year. Free e file irs Payments “on account of retirement”–dismissal, severance or termination pay paid because of retirement. Free e file irs 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 e file irs Stock Options. Free e file irs   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 e file irs That were reported or will be reported under “Nonqualified Plans” on the Form W-2. Free e file irs That were deducted from the employee's wages and paid to a deferred compensation plan (e. Free e file irs g. Free e file irs , 401k). Free e file irs Employees health and dental plan benefits (non-covered/non-taxable for Social Security Wages). Free e file irs Bonuses earned and paid in the tax year. Free e file irs 5. Free e file irs Check whether payments listed in item 4 will be made for years after the tax year. Free e file irs If yes, please show the amounts and years in which these will be paid, if known. Free e file irs 6. Free e file irs Nonqualified deferred compensation and section 457 plans only. Free e file irs 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 e file irs 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 e file irs Paperwork/Privacy Act Notice: This report is authorized by regulation 20 CFR 404. Free e file irs 702. Free e file irs 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 e file irs 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 e file irs We may also use the information you give us when we match records by computer. Free e file irs Matching programs compare our records with those of other Federal, State, or local government agencies. Free e file irs Many agencies may use matching programs to find or prove that a person qualifies for benefits paid by the Federal Government. Free e file irs The law allows us to do this even if you do not agree to it. Free e file irs Explanations about these and other reasons why information you provide us may be used or given out are available in Social Security Offices. Free e file irs If you want to learn more about this, contact any Social Security Office. Free e file irs The Paperwork Reduction Act: This information collection meets the clearance requirements of 44 U. Free e file irs S. Free e file irs C. Free e file irs §3507, as amended by Section 2 of the Paperwork Reduction Act of 1995. Free e file irs You are not required to answer these questions unless we display a valid Office of Management and Budget control number. Free e file irs We estimate that it will take you about 20 minutes to read the instructions, gather the necessary facts, and answer the questions. Free e file irs Form SSA-131 (8-2001) EF (06-2002)   Submit Form SSA-131 to the SSA office nearest your place of business. Free e file irs Or, the employee can submit it to the SSA office handling the claim. Free e file irs You or the employee must submit this form before the SSA can exclude the special wage payments for purposes of the earnings test. Free e file irs 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 e file irs Do not report payments from nonqualified deferred compensation or section 457 plans that were reported in box 11 of Form W-2. Free e file irs Use Form SSA-131 if deferrals to and payments from nonqualified or section 457 plans occurred during the tax year. Free e file irs 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 e file irs It should not count for the social security earnings test. Free e file irs 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 e file irs 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 e file irs 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 e file irs Nonqualified and section 457 plans are reported differently than other special wage payments. Free e file irs See Reporting Amounts Deferred to Nonqualified and Section 457 Plans below for specific instructions. Free e file irs 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 e file irs 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 e file irs The plans' deferrals, or contributions, are not subject to social security and Medicare taxes until the period of substantial risk of forfeiture ends. Free e file irs No risk of forfeiture. Free e file irs   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 e file irs Example. Free e file irs Company X's nonqualified deferred compensation plan allows the deferral of up to $20,000 of employee salaries each year. Free e file irs The plan has no risk of forfeiture. Free e file irs In 2012, Employee A defers $20,000 to the plan from a total salary of $200,000. Free e file irs 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 e file irs   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 e file irs The accumulated deferrals are reported along with any other social security and Medicare wages earned during the year. Free e file irs   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 e file irs If the employee continues working, future deferrals are social security and Medicare wages when they are earned. Free e file irs    Do not include in box 11 deferrals that are included in boxes 3 and/or 5 and that are for current year services. Free e file irs Risk of forfeiture lapses at retirement. Free e file irs   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 e file irs 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 e file irs   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 e file irs    Do not include in box 11 deferrals that are included in boxes 3 and/or 5 and that are for current year services. Free e file irs Example—risk of forfeiture. Free e file irs 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 e file irs B's wages, including this year's deferred amount, are $80,000. Free e file irs 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 e file irs 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 e file irs Example. Free e file irs Employee D retired from the XYZ company and began receiving social security benefits. Free e file irs 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 e file irs In addition, D agreed to continue performing services for XYZ, but on a part-time basis for wages of $15,000 per year. Free e file irs D made no deferrals to the nonqualified plan this year. Free e file irs 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 e file irs For more information, see Reporting Special Wage Payments , earlier. Free e file irs 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 e file irs Report to the SSA on Form SSA-131 the total amount the employee earned during the tax year. Free e file irs 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 e file irs See Form SSA-131 and its instructions, earlier. Free e file irs Example. Free e file irs Employee K retired this year from Company XYZ and began receiving social security benefits. Free e file irs 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 e file irs K also received $75,000 in payments from the company's nonqualified plan. Free e file irs 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 e file irs 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 e file irs If you report section 409A deferrals, show the amount in box 12 of Form W-2 using code Y. Free e file irs For more information, see Notice 2008-115, 2008-52 I. Free e file irs R. Free e file irs B. Free e file irs 1367, available at www. Free e file irs irs. Free e file irs gov/irb/2008-52_IRB/ar10. Free e file irs html. Free e file irs Special reporting rules apply when an NQDC plan is not compliant with section 409A (when there has been a “plan failure”). Free e file irs 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 e file irs See Notice 2008-115. Free e file irs The following examples use small dollar amounts for illustrative purposes. Free e file irs 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 e file irs The term “vested” in the following examples means that the amount deferred is not subject to a substantial risk of forfeiture. Free e file irs Conversely, the term “not vested” means that the amount deferred is subject to a substantial risk of forfeiture. Free e file irs 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 e file irs 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 e file irs Example 1: Deferral that is immediately vested (no substantial risk of forfeiture) with no distributions and no vesting of prior-year deferrals. Free e file irs 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 e file irs The deferral of $20 was vested upon deferral and there was an employer match of $10 under the plan, which was also vested. Free e file irs Regular pay = $200; Deferral, vested = $20; Employer match, vested = $10. Free e file irs 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 e file irs 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 e file irs 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 e file irs Regular pay = $200; Deferral, not vested = $20; Employer match, not vested = $10. Free e file irs 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 e file irs 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 e file irs The deferral of $20 was vested upon deferral. Free e file irs During the year, $100 of prior-year deferrals and $15 of investment earnings on the $100 of prior-year deferrals became vested. Free e file irs Regular pay = $200; Deferral, vested = $20; Vesting of prior-year deferrals = $100; Vesting of investment earnings on $100 of prior-year deferral = $15. Free e file irs 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 e file irs For the year, the employee’s regular pay was $100, and the employee deferred no pay into the employer’s NQDC plan. Free e file irs There was no vesting of prior-year deferrals under the plan. Free e file irs During the year, there were total distributions of $50 from the plan to the employee. Free e file irs Regular pay = $100; Distribution = $50. Free e file irs 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 e file irs   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 e file irs Instead, report on Form SSA-131 the total amount the employee earned during the year. Free e file irs * Submit the SSA-131 to the nearest SSA office or give it to the employee. Free e file irs   *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 e file irs Do not consider prior-year deferrals that are vesting in the current year. Free e file irs If there was a plan failure, the box 1 amount in this calculation should be as if there were no plan failure. Free e file irs Example 5: Deferral that is immediately vested and there are distributions (no vesting of prior-year deferrals). Free e file irs 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 e file irs There was also an employer match of $10. Free e file irs The deferral and employer match were vested upon deferral. Free e file irs There was no vesting of prior-year deferrals under the plan. Free e file irs During the year, there were total distributions of $50 from the plan to the employee. Free e file irs Regular pay = $200; Deferral, vested = $20; Employer match, vested = $10; Distribution = $50. Free e file irs 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 e file irs 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 e file irs 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 e file irs The deferral was not vested upon deferral. Free e file irs There was no vesting of prior-year deferrals under the plan. Free e file irs During the year, there were total distributions of $50 from the plan to the employee. Free e file irs Regular pay = $200; Deferral, not vested = $20; Distribution = $50. Free e file irs 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 e file irs 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 e file irs 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 e file irs The deferral was vested upon deferral. Free e file irs There was vesting of $100 of prior-year deferrals and $15 of earnings on the $100 prior-year deferral under the plan. Free e file irs During the year, there were total distributions of $50 from the plan to the employee. Free e file irs Regular pay = $200; Deferral, vested = $20; Distribution = $50; Vesting of prior-year deferrals ($100) and earnings on those prior-year deferrals ($15) = $115. Free e file irs 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 e file irs 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 e file irs 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 e file irs The deferral was not vested upon deferral. Free e file irs There was also vesting of prior-year deferrals and employer matches and earnings on these amounts under the plan ($115). Free e file irs During the year, there were total distributions of $50 from the plan to the employee. Free e file irs 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 e file irs 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 e file irs File Form SSA-131 -0-     Form SSA-131 Completion Item 6 ($230 Amount from Box 1 of Form W-2 minus $50 Distribution) $180 Table 2. Free e file irs Specifications for Electronic Reporting of Special Wage Payments Record Position  Field Size   Description Start End 1 3 3 Record Type—must include only the capital letters “SWP” 4 12 9 SSN—must be numeric and may not be all zeros 13 27 15 Last Name—all capitals and no punctuation; may have blanks on right only 28 38 11 First Name—all capitals and no punctuation; may have blanks on right only 39 39 1 Middle Initial—must be either a capital letter or blank 40 48 9 EIN—must be numeric and may not be all zeros 49 59 11 Payment—must be numeric; may not be all zeros; last two digits on right are assumed to be cents; no period or dollar sign 60 63 4 Payment Year—must be only a four-digit year 64 66 3 SSA Office Code—must be numeric and may be all zeros 67 67 1 Payment Type Code—must be the capital letter “T” 68 117 50 Filler  The record format is a fixed length of 117. Free e file irs  The file format is ASCII. Free e file irs  Submit only one file at a time. Free e file irs   Table 3. Free e file irs Sample—Paper Listing for Reporting Special Wage Payments to Several Employees Report of Special Wage PaymentsTax Year: Page of A. Free e file irs Employer Name: EIN:   Address: Contact Name:     Phone: ( )   . Free e file irs 1) B. Free e file irs Employee Name: (Last) (First) (MI)   C. Free e file irs SSN: D. Free e file irs SWP:$ E. Free e file irs Type: Other: 2) B. Free e file irs Employee Name: (Last) (First) (MI)   C. Free e file irs SSN: D. Free e file irs SWP:$ E. Free e file irs Type: Other: 3) B. Free e file irs Employee Name: (Last) (First) (MI)   C. Free e file irs SSN: D. Free e file irs SWP:$ E. Free e file irs Type: Other: 4) B. Free e file irs Employee Name: (Last) (First) (MI)   C. Free e file irs SSN: D. Free e file irs SWP:$ E. Free e file irs Type: Other: 5) B. Free e file irs Employee Name: (Last) (First) (MI)   C. Free e file irs SSN: D. Free e file irs SWP:$ E. Free e file irs Type: Other:     INSTRUCTIONS:   Enter tax year and page number. Free e file irs   A. Free e file irs 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 e file irs   B. Free e file irs Employee's name. Free e file irs   C. Free e file irs Employee's social security number (SSN). Free e file irs   D. Free e file irs Total amount of special wage payments made to the employee. Free e file irs   E. Free e file irs 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 e file irs   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 e file irs (Get Form SSA-131. Free e file irs )                 Prev  Up  Next   Home   More Online Publications
Español

Corporation for National and Community Service

The Corporation for National and Community Service encourages and provides community service opportunities, including AmeriCorps and Senior Corps.

Contact the Agency or Department

Website: Corporation for National and Community Service

E-mail:

Address: 1201 New York Avenue, NW
Washington, DC 20525

Phone Number: (202) 606-5000

TTY: (800) 833-3722

Related Agencies

The Free E File Irs

Free e file irs Publication 501 - Introductory Material Table of Contents What's New Reminders IntroductionOrdering forms and publications. Free e file irs Tax questions. Free e file irs Useful Items - You may want to see: What's New Who must file. Free e file irs   In some cases, the amount of income you can receive before you must file a tax return has increased. Free e file irs Table 1 shows the filing requirements for most taxpayers. Free e file irs Exemption amount. Free e file irs  The amount you can deduct for each exemption has increased. Free e file irs It was $3,800 for 2012. Free e file irs It is $3,900 for 2013. Free e file irs Exemption phaseout. Free e file irs  You lose at least part of the benefit of your exemptions if your adjusted gross income is above a certain amount. Free e file irs For 2013, the phaseout begins at $150,000 for married individuals filing separate returns; $250,000 for single individuals; $275,000 for heads of household; and $300,000 for married individuals filing joint returns or qualifying widow(er)s. Free e file irs See Phaseout of Exemptions , later. Free e file irs Standard deduction increased. Free e file irs   The standard deduction for some taxpayers who do not itemize their deductions on Schedule A of Form 1040 is higher for 2013 than it was for 2012. Free e file irs The amount depends on your filing status. Free e file irs You can use the 2013 Standard Deduction Tables near the end of this publication to figure your standard deduction. Free e file irs Same-sex marriages. Free e file irs . Free e file irs  If you have a same-sex spouse whom you legally married in a state (or foreign country) that recognizes same-sex marriage, you and your spouse generally must use the married filing jointly or married filing separately filing status on your 2013 return, even if you and your spouse now live in a state (or foreign country) that does not recognize same-sex marriage. Free e file irs See Same-sex marriage under Marital Status, later. Free e file irs If you meet certain requirements, you may be able to file amended returns to change your filing status for some earlier years. Free e file irs For details on filing amended returns, see Joint Return After Separate Returns . Free e file irs Reminders Future developments. Free e file irs  Information about any future developments affecting Publication 501 (such as legislation enacted after we release it) will be posted at www. Free e file irs irs. Free e file irs gov/pub501. Free e file irs Taxpayer identification number for aliens. Free e file irs   If you are a nonresident or resident alien and you do not have and are not eligible to get a social security number (SSN), you must apply for an individual taxpayer identification number (ITIN). Free e file irs Your spouse also may need an ITIN if he or she does not have and is not eligible to get an SSN. Free e file irs See Form W-7, Application for IRS Individual Taxpayer Identification Number. Free e file irs Also, see Social Security Numbers for Dependents , later. Free e file irs Photographs of missing children. Free e file irs   The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Free e file irs Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. Free e file irs You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. Free e file irs Introduction This publication discusses some tax rules that affect every person who may have to file a federal income tax return. Free e file irs It answers some basic questions: who must file; who should file; what filing status to use; how many exemptions to claim; and the amount of the standard deduction. Free e file irs Who Must File explains who must file an income tax return. Free e file irs If you have little or no gross income, reading this section will help you decide if you have to file a return. Free e file irs Who Should File helps you decide if you should file a return, even if you are not required to do so. Free e file irs Filing Status helps you determine which filing status to use. Free e file irs Filing status is important in determining whether you must file a return and whether you may claim certain deductions and credits. Free e file irs It also helps determine your standard deduction and tax rate. Free e file irs Exemptions, which reduce your taxable income, are discussed in Exemptions . Free e file irs Exemptions for Dependents explains the difference between a qualifying child and a qualifying relative. Free e file irs Other topics include the social security number requirement for dependents, the rules for multiple support agreements, and the rules for divorced or separated parents. Free e file irs Phaseout of Exemptions explains how to determine whether you must reduce the dollar amount of exemptions you claim and, if so, the amount of the reduction. Free e file irs Standard Deduction gives the rules and dollar amounts for the standard deduction — a benefit for taxpayers who do not itemize their deductions. Free e file irs This section also discusses the standard deduction for taxpayers who are blind or age 65 or older, as well as special rules that limit the standard deduction available to dependents. Free e file irs In addition, this section helps you decide whether you would be better off taking the standard deduction or itemizing your deductions. Free e file irs How To Get Tax Help explains how to get tax help from the IRS. Free e file irs This publication is for U. Free e file irs S. Free e file irs citizens and resident aliens only. Free e file irs If you are a resident alien for the entire year, you must follow the same tax rules that apply to U. Free e file irs S. Free e file irs citizens. Free e file irs The rules to determine if you are a resident or nonresident alien are discussed in chapter 1 of Publication 519, U. Free e file irs S. Free e file irs Tax Guide for Aliens. Free e file irs Nonresident aliens. Free e file irs    If you were a nonresident alien at any time during the year, the rules and tax forms that apply to you may be different from those that apply to U. Free e file irs S. Free e file irs citizens. Free e file irs See Publication 519. Free e file irs Comments and suggestions. Free e file irs    We welcome your comments about this publication and your suggestions for future editions. Free e file irs   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. Free e file irs NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Free e file irs Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Free e file irs   You can send your comments from www. Free e file irs irs. Free e file irs gov/formspubs. Free e file irs Click on “More Information” and then on “Comment on Tax Forms and Publications. Free e file irs ”   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. Free e file irs Ordering forms and publications. Free e file irs    Visit www. Free e file irs irs. Free e file irs gov/formspubs to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. Free e file irs Internal Revenue Service 1201 N. Free e file irs Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. Free e file irs    If you have a tax question, check the information available on IRS. Free e file irs gov or call 1-800-829-1040. Free e file irs We cannot answer tax questions sent to either of the above addresses. Free e file irs Useful Items - You may want to see: Publication 559 Survivors, Executors, and Administrators 929 Tax Rules for Children and Dependents Form (and Instructions) 1040X Amended U. Free e file irs S. Free e file irs Individual Income Tax Return 2848 Power of Attorney and Declaration of Representative 8332 Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent 8814 Parents' Election To Report Child's Interest and Dividends Prev  Up  Next   Home   More Online Publications