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Free Efile For State Taxes

Free efile for state taxes 2. Free efile for state taxes   Fuel Tax Credits and Refunds Table of Contents Gasoline and Aviation Gasoline Undyed Diesel Fuel and Undyed Kerosene (Other Than Kerosene Used in Aviation)Sales by Registered Ultimate Vendors Diesel-Water Fuel Emulsion Kerosene for Use in AviationSales by Registered Ultimate Vendors Other Fuels (Including Alternative Fuels) Refunds of Second TaxOptional reporting. Free efile for state taxes Providing information. Free efile for state taxes Definitions of Nontaxable UsesCustom application of fertilizer and pesticide. Free efile for state taxes Fuel used between airfield and farm. Free efile for state taxes Fuel not used for farming. Free efile for state taxes Vehicles not considered highway vehicles. Free efile for state taxes Biodiesel or Renewable Diesel Mixture Credit, Alternative Fuel Credit, and Alternative Fuel Mixture CreditHow to Claim the Credit Filing Claims Claiming A Refund Claiming a Credit on Form 4136 Including the Credit or Refund in Income Federal excise taxes are imposed on certain fuels as discussed in chapter 1. Free efile for state taxes This chapter lists the nontaxable uses of each fuel and defines the nontaxable uses. Free efile for state taxes Information on the refund of second tax is included. Free efile for state taxes This chapter also explains credits and refunds for the biodiesel or renewable diesel mixture credits, and the alternative fuel mixture and alternative fuel credits. Free efile for state taxes Information on how to make a claim for credit or refund is included in this chapter and in the instructions for: Form 720, Form 4136, and Form 8849. Free efile for state taxes Exported taxable fuel. Free efile for state taxes   The claim rates for exported taxable fuel are listed on Schedule C (Form 720), Schedule 1 (Form 8849), and Form 4136. Free efile for state taxes Taxpayers making a claim for exported taxable fuel must include with their records proof of exportation. Free efile for state taxes Proof of exportation includes: A copy of the export bill of lading issued by the delivering carrier, A certificate by the agent or representative of the export carrier showing actual exportation of the fuel, A certificate of lading signed by a customs officer of the foreign country to which the fuel is exported, or A statement of the foreign consignee showing receipt of the fuel. Free efile for state taxes Gasoline and Aviation Gasoline Ultimate Purchasers. Free efile for state taxes   The following are the uses of gasoline (defined earlier) for which a credit or refund may be allowable to an ultimate purchaser. Free efile for state taxes On a farm for farming purposes (credit only). Free efile for state taxes Off-highway business use. Free efile for state taxes Export. Free efile for state taxes In a boat engaged in commercial fishing. Free efile for state taxes In certain intercity and local buses. Free efile for state taxes In a school bus. Free efile for state taxes Exclusive use by a qualified blood collector organization. Free efile for state taxes In a highway vehicle owned by the United States that is not used on a highway. Free efile for state taxes Exclusive use by a nonprofit educational organization (see Sales by registered ultimate vendors and Credit Card Purchases, later). Free efile for state taxes Exclusive use by a state, political subdivision of a state, or the District of Columbia (see Sales by registered ultimate vendors and Credit Card Purchases, later). Free efile for state taxes In an aircraft or vehicle owned by an aircraft museum. Free efile for state taxes   The following are the uses of aviation gasoline for which a credit or refund may be allowable to an ultimate purchaser. Free efile for state taxes On a farm for farming purposes (credit only). Free efile for state taxes Export. Free efile for state taxes In foreign trade. Free efile for state taxes Certain helicopter and fixed-wing air ambulance uses. Free efile for state taxes In commercial aviation (other than foreign trade). Free efile for state taxes Exclusive use by a qualified blood collector organization. Free efile for state taxes Exclusive use by a nonprofit education organization (see Sales by registered ultimate vendors and Credit card purchases, later). Free efile for state taxes Exclusive use by a state, political subdivision of a state, or the District of Columbia (see Sales by registered ultimate vendors and Credit and purchases, later). Free efile for state taxes In an aircraft owned by an aircraft museum. Free efile for state taxes In military aircraft. Free efile for state taxes Claims by persons who paid the tax to the government. Free efile for state taxes   Except for sales to nonprofit educational organizations and states and local governments, a credit or refund is allowable to the person that paid the tax to the government if the gasoline was sold to the ultimate purchaser (including an exporter) by either that person or by a retailer and the fuel was exported; used or sold for use as supplies for vessels or aircraft, including military aircraft, commercial fishing, and foreign trade; sold to a qualified blood collector organization; or used or sold for use in the production of Other Fuels. Free efile for state taxes See Filing Claims, later. Free efile for state taxes Sales by registered ultimate vendors. Free efile for state taxes   This is an ultimate vendor that sells gasoline or aviation gasoline to any of the following and that is purchased without the use of a credit card. Free efile for state taxes A state or local government for its exclusive use (including essential government use by an Indian tribal government). Free efile for state taxes A nonprofit educational organization for its exclusive use. Free efile for state taxes   The registered ultimate vendor may make the claim if the ultimate purchaser did not use a credit card and waives its right to the credit or refund by providing the registered ultimate vendor with a certificate. Free efile for state taxes A sample certificate is included as Model Certificate M in the Appendix. Free efile for state taxes The registered ultimate vendor must have the certificate at the time the credit or refund is claimed. Free efile for state taxes   The ultimate vendor must be registered by the IRS. Free efile for state taxes See Registration Requirements, earlier. Free efile for state taxes Credit card purchases. Free efile for state taxes   If gasoline and aviation gasoline are purchased with a credit card issued to a state or local government for its exclusive use (including essential government use by an Indian tribal government), or a nonprofit educational organization for its exclusive use, the person who extended credit to the ultimate purchaser (the credit card issuer) is treated as the person that paid the tax and makes the claim if the credit card issuer: Is registered by the IRS, Has established that the amount of tax has not been collected from the person who purchased the gasoline or has obtained written consent from the ultimate purchaser to the allowance of the credit or refund, and Has repaid or agreed to repay the amount of the tax to the ultimate vendor, has obtained the written consent of the ultimate vendor to the allowance of the credit or refund, or has made arrangements that provide the ultimate vendor with reimbursement of the tax. Free efile for state taxes   If the requirements above are not met by the credit card issuer, the credit card issuer must collect the tax from the ultimate purchaser and only the ultimate purchaser may make the claim. Free efile for state taxes How to make the claim. Free efile for state taxes   If the claim is made by the credit card issuer, see Schedule C  (Form 720) or Schedule 8 (Form 8849). Free efile for state taxes Undyed Diesel Fuel and Undyed Kerosene (Other Than Kerosene Used in Aviation) For conditions to an allowance of a credit or refund on exported dyed diesel fuel and dyed kerosene, see Exported taxable fuel, earlier. Free efile for state taxes Ultimate purchasers. Free efile for state taxes   The following are nontaxable uses of diesel fuel and kerosene (defined earlier) for which a credit or refund may be allowable to an ultimate purchaser. Free efile for state taxes On a farm for farming purposes. Free efile for state taxes Off-highway business use. Free efile for state taxes Export. Free efile for state taxes In a qualified local bus. Free efile for state taxes In a school bus. Free efile for state taxes Other than as a fuel in a propulsion engine of a diesel-powered highway vehicle (such as home heating oil). Free efile for state taxes Exclusive use by a qualified blood collector organization. Free efile for state taxes In a highway vehicle owned by the United States that is not used on a highway. Free efile for state taxes Exclusive use by a nonprofit educational organization (see Sales by Registered Ultimate Vendors and Credit Card Purchases, later). Free efile for state taxes Exclusive use by a state, political subdivision of a state, or the District of Columbia (see Sales by Registered Ultimate Vendors and Credit Card Purchases, later). Free efile for state taxes In a vehicle owned by an aircraft museum. Free efile for state taxes As a fuel in a propulsion engine of a diesel-powered train. Free efile for state taxes Sales by Registered Ultimate Vendors The following are the sales for which a credit or refund may be allowable to the registered ultimate vendor only. Free efile for state taxes Undyed diesel fuel or undyed kerosene sold for the exclusive use by a state or local government (if credit card rules (defined later) do not apply), Undyed kerosene sold from a blocked pump (defined below), or Undyed diesel fuel or undyed kerosene used in certain intercity and local buses, only if the ultimate purchaser waives its right to the credit or refund by providing the registered ultimate vendor with a waiver. Free efile for state taxes Registered ultimate vendor (state use). Free efile for state taxes   This is a person that sells undyed diesel fuel or undyed kerosene to a state or local government for its exclusive use (including essential government use by an Indian tribal government). Free efile for state taxes The diesel fuel or kerosene must be purchased by the state without the use of a credit card, issued to the state by the credit card issuer, in order for the ultimate vendor to make the claim. Free efile for state taxes The ultimate vendor must be registered by the IRS. Free efile for state taxes See Registration Requirements, earlier. Free efile for state taxes Registered ultimate vendor (blocked pump). Free efile for state taxes   This is an ultimate vendor that sells undyed kerosene from a blocked pump. Free efile for state taxes   A credit or refund may be allowable to a registered ultimate vendor (blocked pump) if the vendor sold to a buyer undyed kerosene from a blocked pump for use other than as a fuel in a diesel-powered highway vehicle and the vendor had no reason to believe the kerosene would not be used in that manner. Free efile for state taxes Blocked pump. Free efile for state taxes   A blocked pump is a fuel pump that meets all the following requirements. Free efile for state taxes It is used to make retail sales of undyed kerosene for use by the buyer in any nontaxable use. Free efile for state taxes It is at a fixed location. Free efile for state taxes It is identified with a legible and conspicuous notice stating, “UNDYED UNTAXED KEROSENE, NONTAXABLE USE ONLY. Free efile for state taxes ” It meets either of the following conditions. Free efile for state taxes It cannot reasonably be used to dispense fuel directly into the fuel supply tank of a diesel-powered highway vehicle or train. Free efile for state taxes It is locked by the vendor after each sale and unlocked by the vendor only in response to a buyer's request for undyed kerosene for use other than as a fuel in a diesel-powered highway vehicle or train. Free efile for state taxes Registered ultimate vendor (certain intercity and local buses). Free efile for state taxes   This is an ultimate vendor that sells undyed diesel fuel or undyed kerosene to the ultimate purchaser for use in certain intercity and local buses. Free efile for state taxes   The registered ultimate vendor may make the claim if the ultimate purchaser waives its right to the credit or refund by providing the registered ultimate vendor with a waiver. Free efile for state taxes A sample waiver is included as Model Waiver N in the Appendix. Free efile for state taxes The registered ultimate vendor must have the waiver at the time the credit or payment is claimed. Free efile for state taxes Credit Card Purchases. Free efile for state taxes   If undyed diesel fuel or kerosene is purchased with a credit card issued to a state, the person who extended credit to the state (the credit card issuer) is treated as the person that paid the tax and makes the claim if the credit card issuer: Is registered by the IRS, Has established that the amount of tax has not been collected from the person who purchased the diesel fuel or kerosene, or has obtained written consent from the ultimate purchaser to the allowance of the credit or refund, and Has repaid or agreed to repay the amount of the tax to the ultimate vendor, has obtained the written consent of the ultimate vendor to the allowance of the credit or refund, or has made arrangements that provide the ultimate vendor with reimbursement of the tax. Free efile for state taxes   If the requirements above are not met by the credit card issuer, the credit card issuer must collect the tax from the ultimate purchaser and only the ultimate purchaser may make the claim. Free efile for state taxes Diesel-Water Fuel Emulsion A claim for credit or refund may be made for the nontaxable use of a diesel-water fuel emulsion and for undyed diesel fuel used to produce a diesel-water fuel emulsion. Free efile for state taxes The claim rate for nontaxable use of a diesel-water fuel emulsion taxed at $. Free efile for state taxes 198 per gallon is $. Free efile for state taxes 197 (if exported, the claim rate is $. Free efile for state taxes 198). Free efile for state taxes The following are the nontaxable uses for a diesel-water fuel emulsion for which a credit or refund may be allowable to an ultimate purchaser. Free efile for state taxes On a farm for farming purposes. Free efile for state taxes Off-highway business use. Free efile for state taxes Export. Free efile for state taxes In a qualified local bus. Free efile for state taxes In a school bus. Free efile for state taxes Other than as fuel in the propulsion engine of a train or diesel-powered highway vehicle (but not off-highway use). Free efile for state taxes Exclusive use by a qualified blood collector organization. Free efile for state taxes In a highway vehicle owned by the United States that is not used on a highway. Free efile for state taxes Exclusive use by a nonprofit educational organization. Free efile for state taxes Exclusive use by a state, political subdivision of a state, or the District of Columbia. Free efile for state taxes In an aircraft or vehicle owned by an aircraft museum. Free efile for state taxes Blender claims. Free efile for state taxes   The claim rate for undyed diesel fuel taxed at $. Free efile for state taxes 244 and used to produce a diesel-water fuel emulsion is $. Free efile for state taxes 046 per gallon of diesel fuel so used. Free efile for state taxes The blender must be registered by the IRS in order to make the claim. Free efile for state taxes The blender must attach a statement to the claim certifying that: The diesel-water fuel emulsion contains at least 14% water, The emulsion additive is registered by a United States manufacturer with the EPA under section 211 of the Clean Air Act as in effect on March 31, 2003, Undyed diesel fuel taxed at $. Free efile for state taxes 244 was used to produce the diesel-water fuel emulsion, and The diesel-water fuel emulsion was used or sold for use in the blender's trade or business. Free efile for state taxes Kerosene for Use in Aviation Ultimate purchasers. Free efile for state taxes   Ultimate purchasers of kerosene used in certain aviation uses may make a claim if the rate of tax on their use is less than the rate of tax that was charged on the kerosene. Free efile for state taxes   The ultimate purchaser of the kerosene used in commercial aviation (other than foreign trade) and noncommercial aviation (other than nonexempt, noncommercial aviation and exclusive use by a state, political subdivision of a state, or the District of Columbia) is eligible to make a claim if the ultimate purchaser certifies that the right to make the claim has not been waived. Free efile for state taxes Generally, the ultimate purchaser is the aircraft operator. Free efile for state taxes   The following are the nontaxable uses of kerosene used in noncommercial aviation for which a credit or refund may be allowable to the ultimate purchaser. Free efile for state taxes On a farm for farming purposes. Free efile for state taxes Certain helicopter and fixed-wing aircraft uses. Free efile for state taxes Exclusive use by a qualified blood collector organization. Free efile for state taxes Exclusive use by a nonprofit educational organization. Free efile for state taxes In an aircraft owned by an aircraft museum. Free efile for state taxes In military aircraft. Free efile for state taxes Kerosene for use partly in commercial aviation and partly in nonexempt, noncommercial aviation. Free efile for state taxes   If the fuel is used partly for use in commercial aviation and partly for use in nonexempt, noncommercial aviation, the operator may identify, either at the time of purchase or after the kerosene has been used, the amount that will be (or has been) used in commercial aviation. Free efile for state taxes At the same time, the operator would either make the claim or waive the right to make the claim for credit or refund of the kerosene for use in commercial and nonexempt, noncommercial aviation. Free efile for state taxes   If the operator does not identify the amount of kerosene that will be (or has been) used in commercial aviation, the operator may provide a certificate to the ultimate vendor similar to Model Certificate Q in the Appendix. Free efile for state taxes For kerosene purchased with the certificate, used in commercial aviation, and taxed at $. Free efile for state taxes 244 per gallon, use of the certificate will be treated as a waiver of the right to claim a credit or refund for the $. Free efile for state taxes 025 per gallon part of the tax. Free efile for state taxes The ultimate vendor may make this claim. Free efile for state taxes The operator may make a claim for the $. Free efile for state taxes 175 tax per gallon of the kerosene, but cannot waive the right to make the claim for the $. Free efile for state taxes 175 tax per gallon. Free efile for state taxes Sales by Registered Ultimate Vendors Kerosene for use in commercial aviation or noncommercial aviation. Free efile for state taxes   The registered ultimate vendor of kerosene for use in commercial aviation (other than foreign trade) or noncommercial aviation (other than nonexempt, noncommercial aviation and exclusive use by a state, political subdivision of a state, or the District of Columbia) may make this claim if the ultimate purchaser waives its right to the credit or payment by providing the registered ultimate vendor with a waiver. Free efile for state taxes A sample waiver is included as Model Waiver L in the Appendix. Free efile for state taxes The registered ultimate vendor must have the waiver at the time the credit or payment is claimed. Free efile for state taxes   Noncommercial aviation means any use of an aircraft not described as commercial aviation. Free efile for state taxes For the definition of commercial aviation, see Commercial aviation on page 11. Free efile for state taxes Kerosene for use in nonexempt, noncommercial aviation. Free efile for state taxes   Only the registered ultimate vendor may claim a credit or payment for sales of kerosene for use in nonexempt, noncommercial aviation. Free efile for state taxes The ultimate vendor must be registered by the IRS (activity letter UA) and have the required certificate from the ultimate purchaser. Free efile for state taxes A sample certificate is included as Model Certificate Q in the Appendix. Free efile for state taxes The registered ultimate vendor must have the certificate at the time the credit or payment is claimed. Free efile for state taxes Kerosene for use in aviation by a state or local government. Free efile for state taxes   Only the registered ultimate vendor may claim a credit or payment for sales of kerosene for use in aviation to a state or local government for its exclusive use (including essential government use by an Indian tribal government). Free efile for state taxes The kerosene for use in aviation must be purchased by the state without the use of a credit card in order for the ultimate vendor to make the claim. Free efile for state taxes The ultimate vendor must be registered by the IRS (activity letter UV) and have the required certificate from the ultimate purchaser. Free efile for state taxes A sample certificate is included as Model Certificate P in the Appendix. Free efile for state taxes The registered ultimate vendor must have the certificate at the time the credit or payment is claimed. Free efile for state taxes Credit card purchases. Free efile for state taxes   If taxed kerosene for use in aviation is purchased with a credit card issued to a state, the person who extended credit to the state (the credit card issuer) is treated as the person that paid the tax and makes the claim if the credit card issuer: Is registered by the IRS, Has established that the amount of tax has not been collected from the person who purchased the kerosene, or has obtained written consent from the ultimate purchaser to the allowance of the credit or refund, and Has repaid or agreed to repay the amount of the tax to the ultimate vendor, has obtained the written consent of the ultimate vendor to the allowance of the credit or refund, or has made arrangements that provide the ultimate vendor with reimbursement of the tax. Free efile for state taxes   If the requirements above are not met by the credit card issuer, the credit card issuer must collect the tax from the ultimate purchaser and only the ultimate purchaser may make the claim. Free efile for state taxes Other Fuels (Including Alternative Fuels) Credit or refund for nontaxable use of taxed Other Fuels may be allowable to an ultimate purchaser. Free efile for state taxes While tax is generally imposed on delivery, Other Fuels are taxed prior to delivery in the case of certain bulk sales described in chapter 1. Free efile for state taxes The following are the nontaxable uses of Other Fuels for which a credit or refund may be allowable to the ultimate purchaser. Free efile for state taxes On a farm for farming purposes. Free efile for state taxes Off-highway business use. Free efile for state taxes In a boat engaged in commercial fishing. Free efile for state taxes In certain intercity and local buses. Free efile for state taxes In a school bus. Free efile for state taxes In a qualified local bus. Free efile for state taxes Exclusive use by a qualified blood collector organization. Free efile for state taxes Exclusive use by a nonprofit educational organization. Free efile for state taxes Exclusive use by a state, political subdivision of a state, or the District of Columbia. Free efile for state taxes In an aircraft or vehicle owned by an aircraft museum. Free efile for state taxes Use in any boat operated by the United States for its exclusive use or any vessel of war of any foreign nation. Free efile for state taxes See Biodiesel or Renewable Diesel Mixture Credit, Alternative Fuel Credit, and Alternative Fuel Mixture Credit, later. Free efile for state taxes Refunds of Second Tax The tax on dyed diesel fuel for inland waterways fuel use applies at the rate listed on Form 720. Free efile for state taxes This is in addition to all other taxes imposed on the sale or use of the fuel. Free efile for state taxes The section 4081(e) refund (discussed below) cannot be claimed. Free efile for state taxes If the tax is paid and reported to the government on more than one taxable event for a taxable fuel under section 4081, the person paying the “second tax” may claim a refund (without interest) of that tax if certain conditions and reporting requirements are met. Free efile for state taxes No credit against any tax is allowed for this tax. Free efile for state taxes For information about taxable events, see the discussions under Gasoline, Diesel Fuel and Kerosene and Kerosene for Use in Aviation in chapter 1. Free efile for state taxes Conditions to allowance of refund. Free efile for state taxes   A claim for refund of the tax is allowed only if all the following conditions are met. Free efile for state taxes A tax on the fuel was paid to the government and not credited or refunded (the “first tax”). Free efile for state taxes After the first tax was imposed, another tax was imposed on the same fuel and was paid to the government (the “second tax”). Free efile for state taxes The person that paid the second tax filed a timely claim for refund containing the information required (see Refund claim, later). Free efile for state taxes The person that paid the first tax has met the reporting requirements, discussed next. Free efile for state taxes Reporting requirements. Free efile for state taxes   Generally, the person that paid the first tax must file a “First Taxpayer's Report” with its Form 720 for the quarter to which the report relates. Free efile for state taxes A model first taxpayer's report is shown in the Appendix as Model Certificate B. Free efile for state taxes The report must contain all information needed to complete the model. Free efile for state taxes   By the due date for filing the Form 720, you must also send a separate copy of the report to the following address. Free efile for state taxes Department of the Treasury Internal Revenue Service  Cincinnati, OH 45999-0555 Write “EXCISE – FIRST TAXPAYER'S REPORT” across the top of that copy. Free efile for state taxes Optional reporting. Free efile for state taxes   A first taxpayer's report is not required for the tax imposed on: Removal at a terminal rack, Nonbulk entries into the United States, and Removals or sales by blenders. Free efile for state taxes However, if the person liable for the tax expects that another tax will be imposed on that fuel, that person should (but is not required to) file a first taxpayer's report. Free efile for state taxes Providing information. Free efile for state taxes   The first taxpayer must give a copy of the report to the buyer of the fuel within the bulk transfer/terminal system or to the owner of the fuel immediately before the first tax was imposed, if the first taxpayer is not the owner at that time. Free efile for state taxes If an optional report is filed, a copy should (but is not required to) be given to the buyer or owner. Free efile for state taxes   A person that receives a copy of the first taxpayer's report and later sells the fuel within the bulk transfer/terminal system must give the copy and a “Statement of Subsequent Seller” to the buyer. Free efile for state taxes If the later sale is outside the bulk transfer/terminal system and that person expects that another tax will be imposed, that person should (but is not required to) give the copy and the statement to the buyer. Free efile for state taxes A model statement of subsequent seller is shown in the Appendix as Model Certificate A. Free efile for state taxes The statement must contain all information necessary to complete the model. Free efile for state taxes   If the first taxpayer's report relates to fuel sold to more than one buyer, copies of that report must be made when the fuel is divided. Free efile for state taxes Each buyer must be given a copy of the report. Free efile for state taxes Refund claim. Free efile for state taxes   You must have filed Form 720 and paid the second tax before you file for a refund of that tax. Free efile for state taxes You must make your claim for refund on Form 8849. Free efile for state taxes Complete Schedule 5 (Form 8849) and attach it to your Form 8849. Free efile for state taxes Do not include this claim with a claim under another tax provision. Free efile for state taxes You must not have included the second tax in the price of the fuel and must not have collected it from the purchaser. Free efile for state taxes You must submit the following information with your claim. Free efile for state taxes A copy of the first taxpayer's report (discussed earlier). Free efile for state taxes A copy of the statement of subsequent seller if the fuel was bought from someone other than the first taxpayer. Free efile for state taxes Definitions of Nontaxable Uses This section provides definitions of the terms used in Table 2-1 for nontaxable uses. Free efile for state taxes If applicable, the type of use number from Table 2-1 is indicated in each heading. Free efile for state taxes Type of use table. Free efile for state taxes   The first column of the table is the number you enter on Form 4136, Form 8849, or Schedule C (Form 720) for that type of use. Free efile for state taxes For type of use 2, the mobile machinery parenthetical applies only to Form 8849 and Form 720. Free efile for state taxes Table 2-1. Free efile for state taxes Type of Use Table No. Free efile for state taxes Type of Use 1 On a farm for farming purposes 2 Off-highway business use (for business use other than in a highway vehicle registered or required to be registered for highway use) (other than use in mobile machinery) 3 Export 4 In a boat engaged in commercial fishing 5 In certain intercity and local buses 6 In a qualified local bus 7 In a bus transporting students and employees of schools (school buses) 8 For diesel fuel and kerosene (other than kerosene used in aviation) used other than as a fuel in the propulsion engine of a train or diesel-powered highway vehicle (but not off-highway business use) 9 In foreign trade 10 Certain helicopter and fixed-wing aircraft uses 11 Exclusive use by a qualified blood collector organization 12 In a highway vehicle owned by the United States that is not used on a highway 13 Exclusive use by a nonprofit educational organization 14 Exclusive use by a state, political subdivision of a state, or the District of Columbia 15 In an aircraft or vehicle owned by an aircraft museum 16 In military aircraft On a farm for farming purposes (No. Free efile for state taxes 1). Free efile for state taxes   On a farm for farming purposes means fuel used in carrying on a trade or business of farming, on a farm in the United States, and for farming purposes. Free efile for state taxes Farm. Free efile for state taxes   A farm includes livestock, dairy, fish, poultry, fruit, fur-bearing animals, and truck farms; orchards; plantations; ranches; nurseries; ranges; and feed yards for fattening cattle. Free efile for state taxes It also includes structures such as greenhouses used primarily for the raising of agricultural or horticultural commodities. Free efile for state taxes A fish farm is an area where fish are grown or raised — not merely caught or harvested. Free efile for state taxes Farming purposes. Free efile for state taxes   As an owner, tenant, or operator, you use fuel on a farm for farming purposes if you use it in any of the following ways. Free efile for state taxes To cultivate the soil or to raise or harvest any agricultural or horticultural commodity. Free efile for state taxes To raise, shear, feed, care for, train, or manage livestock, bees, poultry, fur-bearing animals, or wildlife. Free efile for state taxes To operate, manage, conserve, improve, or maintain your farm and its tools and equipment. Free efile for state taxes To handle, dry, pack, grade, or store any raw agricultural or horticultural commodity. Free efile for state taxes For this use to qualify, you must have produced more than half the commodity so treated during the tax year. Free efile for state taxes Commodity means a single raw product. Free efile for state taxes For example, apples and peaches are two separate commodities. Free efile for state taxes To plant, cultivate, care for, or cut trees or to prepare (other than sawing logs into lumber, chipping, or other milling) trees for market, but only if the planting, etc. Free efile for state taxes , is incidental to your farming operations. Free efile for state taxes Your tree operations will be incidental only if they are minor in nature when compared to the total farming operations. Free efile for state taxes   If any other person, such as a neighbor or custom operator, performs a service for you on your farm for any of the purposes listed in (1) or (2), you are considered to be the ultimate purchaser that used the fuel on a farm for farming purposes. Free efile for state taxes However, see Custom application of fertilizer and pesticide, next. Free efile for state taxes   If doubt exists whether the owner, the tenant, or the operator of the farm bought the fuel, determine who bore the cost of the fuel. Free efile for state taxes For example, if the owner of a farm and the tenant equally share the cost of gasoline that is used on a farm for farming purposes, each can claim a credit for the tax on one-half the fuel used. Free efile for state taxes Custom application of fertilizer and pesticide. Free efile for state taxes   Fuel used on a farm for farming purposes includes fuel used in the application of fertilizer, pesticides, or other substances, including aerial applications. Free efile for state taxes Generally, the applicator is treated as having used the fuel on a farm for farming purposes. Free efile for state taxes For aviation gasoline, the aerial applicator makes the claim as the ultimate purchaser. Free efile for state taxes For kerosene used in aviation, the ultimate purchaser may make the claim or waive their right to make the claim to the registered ultimate vendor. Free efile for state taxes Fuel used between airfield and farm. Free efile for state taxes   Fuel used by an aerial applicator for the direct flight between the airfield and one or more farms is treated as a farming purpose. Free efile for state taxes Fuel not used for farming. Free efile for state taxes   Fuel is not used on a farm for farming purposes if it is used in any of the following ways. Free efile for state taxes Off the farm, such as on the highway or in noncommercial aviation, other than fuel used between the airfield and farm described above, even if the fuel is used in transporting livestock, feed, crops, or equipment. Free efile for state taxes For personal use, such as mowing the lawn. Free efile for state taxes In processing, packaging, freezing, or canning operations. Free efile for state taxes In processing crude gum into gum spirits of turpentine or gum resin or in processing maple sap into maple syrup or maple sugar. Free efile for state taxes Off-highway business use (No. Free efile for state taxes 2). Free efile for state taxes   Off-highway business use means fuel used in a trade or business or in an income-producing activity other than as a fuel in a highway vehicle registered or required to be registered for use on public highways. Free efile for state taxes The terms “highway vehicle,” “public highway,” and “registered” are defined below. Free efile for state taxes Do not consider any use in a boat as an off-highway business use. Free efile for state taxes   Off-highway business use includes fuels used in any of the following ways. Free efile for state taxes In stationary machines such as generators, compressors, power saws, and similar equipment. Free efile for state taxes For cleaning purposes. Free efile for state taxes In forklift trucks, bulldozers, and earthmovers. Free efile for state taxes   Generally, this use does not include nonbusiness use of fuel, such as use by minibikes, snowmobiles, power lawn mowers, chain saws, and other yard equipment. Free efile for state taxes Example. Free efile for state taxes Caroline owns a landscaping business. Free efile for state taxes She uses power lawn mowers and chain saws in her business. Free efile for state taxes The gasoline used in the power lawn mowers and chain saws qualifies as fuel used in an off-highway business use. Free efile for state taxes The gasoline used in her personal lawn mower at home does not qualify. Free efile for state taxes Highway vehicle. Free efile for state taxes   A highway vehicle is any self-propelled vehicle designed to carry a load over public highways, whether or not it is also designed to perform other functions. Free efile for state taxes Examples of vehicles designed to carry a load over public highways are passenger automobiles, motorcycles, buses, and highway-type trucks and truck tractors. Free efile for state taxes A vehicle is a highway vehicle even though the vehicle's design allows it to perform a highway transportation function for only one of the following. Free efile for state taxes A particular type of load, such as passengers, furnishings, and personal effects (as in a house, office, or utility trailer). Free efile for state taxes A special kind of cargo, goods, supplies, or materials. Free efile for state taxes Some off-highway task unrelated to highway transportation, except as discussed next. Free efile for state taxes Vehicles not considered highway vehicles. Free efile for state taxes   Generally, the following kinds of vehicles are not considered highway vehicles for purposes of the credit or refund of fuel taxes. Free efile for state taxes Specially designed mobile machinery for nontransportation functions. Free efile for state taxes A self-propelled vehicle is not a highway vehicle if all the following apply. Free efile for state taxes The chassis has permanently mounted to it machinery or equipment used to perform certain operations (construction, manufacturing, drilling, mining, timbering, processing, farming, or similar operations) if the operation of the machinery or equipment is unrelated to transportation on or off the public highways. Free efile for state taxes The chassis has been specially designed to serve only as a mobile carriage and mount (and power source, if applicable) for the machinery or equipment, whether or not the machinery or equipment is in operation. Free efile for state taxes The chassis could not, because of its special design and without substantial structural modification, be used as part of a vehicle designed to carry any other load. Free efile for state taxes The vehicle must have traveled less than 7,500 miles on public highways during the taxable year. Free efile for state taxes Vehicles specially designed for off-highway transportation. Free efile for state taxes A vehicle is not treated as a highway vehicle if the vehicle is specially designed for the primary function of transporting a particular type of load other than over the public highway and because of this special design, the vehicle's capability to transport a load over a public highway is substantially limited or impaired. Free efile for state taxes To make this determination, you can take into account the vehicle's size, whether the vehicle is subject to licensing, safety, or other requirements, and whether the vehicle can transport a load at a sustained speed of at least 25 miles per hour. Free efile for state taxes It does not matter that the vehicle can carry heavier loads off highway than it is allowed to carry over the highway. Free efile for state taxes Nontransportation trailers and semitrailers. Free efile for state taxes A trailer or semi-trailer is not treated as a highway vehicle if it is specially designed to function only as an enclosed stationary shelter for carrying on a nontransportation function at an off-highway site. Free efile for state taxes For example, a trailer that is capable only of functioning as an office for an off-highway construction operation is not a highway vehicle. Free efile for state taxes Public highway. Free efile for state taxes   A public highway includes any road in the United States that is not a private roadway. Free efile for state taxes This includes federal, state, county, and city roads and streets. Free efile for state taxes Registered. Free efile for state taxes   A vehicle is considered registered when it is registered or required to be registered for highway use under the law of any state, the District of Columbia, or any foreign country in which it is operated or situated. Free efile for state taxes Any highway vehicle operated under a dealer's tag, license, or permit is considered registered. Free efile for state taxes A highway vehicle is not considered registered solely because a special permit allows the vehicle to be operated at particular times and under specified conditions. Free efile for state taxes Dual use of propulsion motor. Free efile for state taxes   Off-highway business use does not include any fuel used in the propulsion motor of a registered highway vehicle even though that motor also operates special equipment by means of a power take-off or power transfer. Free efile for state taxes It does not matter if the special equipment is mounted on the vehicle. Free efile for state taxes Example. Free efile for state taxes The motor of a registered concrete-mixer truck operates both the engine and the mixing unit by means of a power take-off. Free efile for state taxes The fuel used in the motor to run the mixer is not off-highway business use. Free efile for state taxes Use in separate motor. Free efile for state taxes   Off-highway business use includes fuel used in a separate motor to operate special equipment, such as a refrigeration unit, pump, generator, or mixing unit. Free efile for state taxes If you draw fuel from the same tank that supplies fuel to the propulsion motor, you must figure the quantity used in the separate motor operating the special equipment. Free efile for state taxes You may make a reasonable estimate based on your operating experience and supported by your records. Free efile for state taxes   You can use devices that measure the miles the vehicle has traveled (such as hubometers) to figure the gallons of fuel used to propel the vehicle. Free efile for state taxes Add to this amount the fuel consumed while idling or warming up the motor before propelling the vehicle. Free efile for state taxes The difference between your total fuel used and the fuel used to propel the vehicle is the fuel used in the separate motor. Free efile for state taxes Example. Free efile for state taxes Hazel owns a refrigerated truck. Free efile for state taxes It has a separate motor for the refrigeration unit. Free efile for state taxes The same tank supplies both motors. Free efile for state taxes Using the truck's hubometer, Hazel figures that 90% of the fuel was used to propel the truck. Free efile for state taxes Therefore, 10% of the fuel is used in an off-highway business use. Free efile for state taxes Fuel lost or destroyed. Free efile for state taxes   You cannot treat fuel lost or destroyed through spillage, fire, or other casualty as fuel used in an off-highway business use. Free efile for state taxes Export (No. Free efile for state taxes 3). Free efile for state taxes   Export means fuel transported from the United States with the intention that the fuel remain in a foreign country or possession of the United States. Free efile for state taxes Fuel is not exported if it is in the fuel supply tank of a vehicle or aircraft. Free efile for state taxes In a boat engaged in commercial fishing (No. Free efile for state taxes 4). Free efile for state taxes   In a boat engaged in commercial fishing means fuel used in taking, catching, processing, or transporting fish, shellfish, or other aquatic life for commercial purposes, such as selling or processing the catch, on a specific trip basis. Free efile for state taxes They include boats used in both fresh and salt water fishing. Free efile for state taxes They do not include boats used for both sport fishing and commercial fishing on the same trip. Free efile for state taxes In certain intercity and local buses (No. Free efile for state taxes 5). Free efile for state taxes   In certain intercity and local buses means fuel used in a bus engaged in furnishing (for compensation) passenger land transportation available to the general public. Free efile for state taxes The bus must be engaged in one of the following activities. Free efile for state taxes Scheduled transportation along regular routes. Free efile for state taxes Nonscheduled operations if the seating capacity of the bus is at least 20 adults, not including the driver. Free efile for state taxes Vans and similar vehicles used for van-pooling or taxi service do not qualify. Free efile for state taxes Available to the general public. Free efile for state taxes   This means you offer service to more than a limited number of persons or organizations. Free efile for state taxes If a bus operator normally provides charter operations through travel agencies but has buses available for chartering by the general public, this service is available to the general public. Free efile for state taxes A bus does not qualify when its operator uses it to provide exclusive services to only one person, group, or organization. Free efile for state taxes Also, intercity bus transportation does not include transporting students and employees of schools or intercity transportation in a qualified local bus. Free efile for state taxes In a qualified local bus (No. Free efile for state taxes 6). Free efile for state taxes   In a qualified local bus means fuel used in a bus meeting all the following requirements. Free efile for state taxes It is engaged in furnishing (for compensation) intracity passenger land transportation available to the general public. Free efile for state taxes It operates along scheduled, regular routes. Free efile for state taxes It has a seating capacity of at least 20 adults (excluding the driver). Free efile for state taxes It is under contract with (or is receiving more than a nominal subsidy from) any state or local government to furnish the transportation. Free efile for state taxes Intracity passenger land transportation. Free efile for state taxes   This is the land transportation of passengers between points located within the same metropolitan area. Free efile for state taxes It includes transportation along routes that cross state, city, or county boundaries if the routes remain within the metropolitan area. Free efile for state taxes Under contract. Free efile for state taxes   A bus is under contract with a state or local government only if the contract imposes a bona fide obligation on the bus operator to furnish the transportation. Free efile for state taxes More than a nominal subsidy. Free efile for state taxes   A subsidy is more than nominal if it is reasonably expected to exceed an amount equal to 3 cents multiplied by the number of gallons of fuel used in buses on subsidized routes. Free efile for state taxes A company that operates its buses along subsidized and unsubsidized intracity routes may consider its buses qualified local buses only when the buses are used on the subsidized intracity routes. Free efile for state taxes In a school bus (No. Free efile for state taxes 7). Free efile for state taxes   In a school bus means fuel used in a bus engaged in the transportation of students or employees of schools. Free efile for state taxes A school is an educational organization with a regular faculty and curriculum and a regularly enrolled body of students who attend the place where the educational activities occur. Free efile for state taxes For diesel fuel and kerosene (other than kerosene used in aviation) used other than as a fuel (No. Free efile for state taxes 8). Free efile for state taxes   Diesel fuel and kerosene (other than kerosene used in aviation) used other than as a fuel in the propulsion engine of a diesel-powered highway vehicle or diesel-powered train (not including off-highway business use) means undyed diesel fuel and undyed kerosene used: For home heating, lighting, and cooking; In boats; In stationary machines, such as generators and compressors; For cleaning purposes; or In minibikes and snowmobiles. Free efile for state taxes In foreign trade (No. Free efile for state taxes 9). Free efile for state taxes   In foreign trade means fuel used in civil aircraft employed in foreign trade or trade between the United States and any of its possessions. Free efile for state taxes The term trade includes the transportation of persons or property for hire and the making of the necessary preparations for such transportation. Free efile for state taxes In the case of aircraft registered in a foreign country, the country must allow reciprocal benefits for aircraft registered in the United States. Free efile for state taxes Certain helicopter and fixed-wing aircraft uses (No. Free efile for state taxes 10). Free efile for state taxes   Includes: Certain helicopter uses. Free efile for state taxes   Certain helicopter uses means fuel used by a helicopter for any of the following purposes. Free efile for state taxes Transporting individuals, equipment, or supplies in the exploration for, or the development or removal of, hard minerals, oil, or gas. Free efile for state taxes Planting, cultivating, cutting, transporting, or caring for trees (including logging operations). Free efile for state taxes Providing emergency medical transportation. Free efile for state taxes   During a use described in items (1) and (2), the helicopter must not take off from, or land at, a facility eligible for assistance under the Airport and Airway Development Act of 1970, or otherwise use services provided pursuant to section 44509 or 44913(b) or subchapter I of chapter 471 of title 49, United States Code. Free efile for state taxes For item (1), treat each flight segment as a separate flight. Free efile for state taxes Fixed-wing aircraft uses. Free efile for state taxes   Fixed-wing aircraft uses means fuel used by a fixed-wing aircraft for any of the following purposes. Free efile for state taxes Planting, cultivating, cutting, transporting, or caring for trees (including logging operations). Free efile for state taxes Providing emergency medical transportation. Free efile for state taxes The aircraft must be equipped for and exclusively dedicated on that flight to acute care emergency medical services. Free efile for state taxes During a use described in item (1), the aircraft must not take off from, or land at, a facility eligible for assistance under the Airport and Airway Development Act of 1970, or otherwise use services provided pursuant to section 44509 or 44913(b) or subchapter I of chapter 471 of title 49, United States Code. Free efile for state taxes Exclusive use by a qualified blood collector organization (No. Free efile for state taxes 11). Free efile for state taxes   Exclusive use by a qualified blood collector organization means fuel used by the qualified blood collector organization for its exclusive use in the collection, storage, or transportation of blood. Free efile for state taxes Qualified blood collector organization. Free efile for state taxes   A qualified blood collector organization is one that is: Described in section 501(c)(3) and exempt from tax under section 501(a), Primarily engaged in the activity of collecting human blood, Registered by the IRS, and Registered by the Food and Drug Administration to collect blood. Free efile for state taxes In a highway vehicle owned by the United States that is not used on a highway (No. Free efile for state taxes 12). Free efile for state taxes   In a highway vehicle owned by the United States that is not used on a highway means fuel used in a vehicle that was not used on public highways during the period covered by the claim. Free efile for state taxes This use applies whether or not the vehicle is registered or required to be registered for highway use. Free efile for state taxes Exclusive use by a nonprofit educational organization (No. Free efile for state taxes 13). Free efile for state taxes   Exclusive use by a nonprofit educational organization means fuel used by an organization exempt from income tax under section 501(a) that meets both of the following requirements. Free efile for state taxes It has a regular faculty and curriculum. Free efile for state taxes It has a regularly enrolled body of students who attend the place where the instruction normally occurs. Free efile for state taxes   A nonprofit educational organization also includes a school operated by a church or other organization described in section 501(c)(3) if the school meets the above requirements. Free efile for state taxes Exclusive use by a state, political subdivision of a state, or the District of Columbia (No. Free efile for state taxes 14). Free efile for state taxes   Exclusive use by a state, political subdivision of a state, or the District of Columbia means fuel purchased by the state or local government for its exclusive use. Free efile for state taxes A state or local government is any state, any political subdivision thereof, or the District of Columbia. Free efile for state taxes An Indian tribal government is treated as a state only if the fuel is used in an activity that involves the exercise of an essential tribal government function. Free efile for state taxes Gasoline, diesel fuel, and kerosene used by the American Red Cross is considered to be the use of these fuels by a state. Free efile for state taxes In an aircraft or vehicle owned by an aircraft museum (No. Free efile for state taxes 15). Free efile for state taxes   In an aircraft or vehicle owned by an aircraft museum means fuel used in an aircraft or vehicle that is owned by an organization that meets all the following requirements. Free efile for state taxes It is exempt from income tax as an organization described in section 501(c)(3). Free efile for state taxes It is operated as a museum under a state (or District of Columbia) charter. Free efile for state taxes It is operated exclusively for acquiring, exhibiting, and caring for aircraft of the type used for combat or transport in  World War II. Free efile for state taxes   The aircraft or vehicle (such as a ground servicing vehicle for aircraft) must be used exclusively for the purposes described in item (3). Free efile for state taxes In military aircraft (No. Free efile for state taxes 16). Free efile for state taxes   In a military aircraft means fuel used in an aircraft owned by the United States or any foreign nation and constituting a part of its armed forces. Free efile for state taxes In commercial aviation (other than foreign trade). Free efile for state taxes   See Commercial aviation, earlier, for the definition. Free efile for state taxes Use in a train. Free efile for state taxes   Use in a train means fuel used in the propulsion engine of equipment or machinery that rides on rails. Free efile for state taxes This includes use in a locomotive, work train, switching engine, and track maintenance machine. Free efile for state taxes Biodiesel or Renewable Diesel Mixture Credit, Alternative Fuel Credit, and Alternative Fuel Mixture Credit For alternative fuel mixtures produced after December 31, 2011, see How to Claim the Credit below. Free efile for state taxes The section 6426 credit for biodiesel and alternative fuel consists of the biodiesel or renewable diesel mixture credit, alternative fuel credit, and alternative fuel mixture credit. Free efile for state taxes Biodiesel or renewable diesel mixture credit claimant. Free efile for state taxes   Claimant produced a biodiesel mixture by mixing biodiesel with diesel fuel. Free efile for state taxes Claimant produced a renewable diesel mixture by mixing renewable diesel with liquid fuel (other than renewable diesel). Free efile for state taxes   The person that produced and sold or used the mixture in their trade or business is the only person eligible to make this claim. Free efile for state taxes The credit is based on the gallons of biodiesel or renewable diesel in the mixture. Free efile for state taxes Renewable diesel does not include any fuel derived from coprocessing biomass (as defined in section 45K(c)(3)) with a feedstock that is not biomass. Free efile for state taxes Claim requirements. Free efile for state taxes   See the Instructions for Form 720 for the biodiesel or renewable diesel mixture claim requirements. Free efile for state taxes Alternative fuel credit claimant. Free efile for state taxes   For the alternative fuel credit, the registered alternative fueler who (1) sold an alternative fuel at retail delivered it into the fuel supply tank of a motor vehicle or motorboat, (2) sold an alternative fuel, delivered it in bulk taxable use in a motor vehicle or motorboat, and received required statement from the buyer, (3) used an alternative fuel (not sold at retail or in bulk as previously described) motor vehicle or motorboat, or (4) sold an alternative fuel used as a fuel in aviation is the only person eligible to make this claim. Free efile for state taxes Carbon capture requirement. Free efile for state taxes   A credit for Fischer-Tropsch process liquid fuel derived from coal (including peat) can be claimed only if the fuel is derived from coal produced at a gasification facility that separates and sequesters at least 75% of the facility's total carbon dioxide emissions. Free efile for state taxes Alternative fuel credit. Free efile for state taxes   The registered alternative fueler is the person eligible to make the claim. Free efile for state taxes An alternative fueler is the person liable for tax on alternative fuel under the rules for taxable events for Other Fuels (discussed in chapter 1) or would be liable but for an exemption for nontaxable uses. Free efile for state taxes An alternative fueler includes a person who sells for use or uses an alternative fuel in aviation. Free efile for state taxes Alternative fuel mixture credit claimant. Free efile for state taxes   For the alternative fuel mixture credit, the registered alternative fueler that produced and sold or used the mixture as a fuel in their trade or business is the only person eligible to make this claim. Free efile for state taxes The credit is based on the gallons of alternative fuel in the mixture. Free efile for state taxes An alternative fuel mixture is a mixture of alternative fuel and section 4081 taxable fuel (gasoline, diesel fuel, or kerosene). Free efile for state taxes Registration. Free efile for state taxes   You must be registered by the IRS to be eligible to claim the section 6426 fuel credit. Free efile for state taxes See Registration Requirements in chapter 1. Free efile for state taxes Credits for fuel provide incentive for United States production. Free efile for state taxes   The section 6426 fuel credit may not be claimed for alternative fuel that is produced outside the United States for use as a fuel outside the United States. Free efile for state taxes The United States includes any possession of the United States. Free efile for state taxes Credit for fuels derived from paper or pulp production. Free efile for state taxes   Credit for alternative fuels and alternative fuel mixtures for any fuel derived from the production of paper or pulp are not available for fuel sold or used on or after December 31, 2009. Free efile for state taxes How to Claim the Credit Any biodiesel or renewable diesel mixture credit must first be claimed on Schedule C to reduce your taxable fuel liability reported on Form 720. Free efile for state taxes Any excess credit may be claimed on Schedule C (Form 720), Schedule 3 (Form 8849), Form 4136, or Form 8864, Biodiesel and Renewable Diesel Fuels Credit. Free efile for state taxes See Notice 2005-4 and the Instructions for Form 720 for more information. Free efile for state taxes Also see Notice 2013-26 on page 984 of I. Free efile for state taxes R. Free efile for state taxes B. Free efile for state taxes 2013-18 at www. Free efile for state taxes irs. Free efile for state taxes gov/pub/irs-irbs/irb13-18. Free efile for state taxes pdf; and see chapter 2, later. Free efile for state taxes Coordination with income tax credit. Free efile for state taxes   Only one credit may be taken for any amount of biodiesel or renewable diesel. Free efile for state taxes If any amount is claimed (or will be claimed) for any amount of biodiesel or renewable diesel on Form 720, Form 8849, or Form 4136, then a claim cannot be made on Form 8864 for that amount of biodiesel or renewable diesel. Free efile for state taxes   Any alternative fuel credit must first be claimed on Schedule C (Form 720) to reduce your section 4041 taxable fuel liability for alternative fuel and CNG reported on Form 720. Free efile for state taxes Any excess credit may claimed on Schedule C (Form 720), Schedule 3 (Form 8849), or Form 4136. Free efile for state taxes   For alternative fuel mixtures produced after December 31, 2011, the alternative fuel mixture credit can be claimed on Schedule C (Form 720), not on Form 4136 or Schedule 3 (Form 8849), and only to the extent of your section 4081 taxable fuel liability for gasoline, diesel fuel and kerosene reported on Form 720. Free efile for state taxes   Calculate the limitation for alternative fuel mixtures separately and enter on Schedule C (Form 720), line 14, only the gallons of mixtures that do not exceed your section 4081 taxable fuel liability. Free efile for state taxes Filing Claims This section tells you how to make a claim for a credit or refund of excise taxes on fuels. Free efile for state taxes This section also covers recordkeeping requirements and when to include the credit or refund in your income. Free efile for state taxes Generally, you will provide all the information needed to claim a credit or refund when you properly complete Form 8849, Form 4136, Schedule C (Form 720), Form 6478, or Form 8864. Free efile for state taxes In some cases, you will have to attach additional information. Free efile for state taxes You need to keep records that support your claim for a credit or refund. Free efile for state taxes Keep at your principal place of business all records needed to enable the IRS to verify that you are the person entitled to claim a credit or refund and the amount you claimed. Free efile for state taxes Ultimate purchaser. Free efile for state taxes   Ultimate purchasers may make claims for the nontaxable use of fuels on Form 4136, Schedule 1 (Form 8849), and Schedule C (Form 720) if reporting excise tax liability on that return. Free efile for state taxes If you are an ultimate purchaser, you must keep the following records. Free efile for state taxes The number of gallons purchased and used during the period covered by your claim. Free efile for state taxes The dates of the purchases. Free efile for state taxes The names and addresses of suppliers and amounts purchased from each in the period covered by your claim. Free efile for state taxes The nontaxable use for which you used the fuel. Free efile for state taxes The number of gallons used for each nontaxable use. Free efile for state taxes It is important that your records show separately the number of gallons used for each nontaxable use that qualifies as a claim. Free efile for state taxes If the fuel is exported, you must have proof of exportation. Free efile for state taxes   For more information about keeping records, see Publication 583, Starting a Business and Keeping Records, or chapter 1 of Publication 17, Your Federal Income Tax for Individuals. Free efile for state taxes Exceptions. Free efile for state taxes    Generally, the ultimate purchaser may not claim a credit or refund for undyed diesel fuel, undyed kerosene, or kerosene for use in aviation sold for the exclusive use of a state or local government. Free efile for state taxes However, see Claims by credit card issuers, later, for an exception. Free efile for state taxes The ultimate purchaser may not claim a credit or refund as follows. Free efile for state taxes The ultimate purchaser of gasoline or aviation gasoline used by a state or local government for its exclusive use or by a nonprofit educational organization for its exclusive use may waive its right to make a claim by providing a certificate that is signed under penalties of perjury by a person authorized to bind the ultimate purchaser and is in the same format as the Model Certificate M. Free efile for state taxes A new certificate is required each year or when any information in the current certificate expires. Free efile for state taxes The ultimate purchaser of kerosene for use in commercial aviation or noncommercial aviation (other than nonexempt, noncommercial aviation and exclusive use by a state, political subdivision of a state, or the District of Columbia) may waive its right to make a claim by providing a waiver that is signed under penalties of perjury by a person authorized to bind the ultimate purchaser and is in the same format as the Model Waiver L. Free efile for state taxes A new waiver is required each year or when any information in the current waiver expires. Free efile for state taxes The ultimate purchaser of undyed diesel fuel or undyed kerosene used in certain intercity and local buses may waive its right to make a claim by providing a waiver that is signed under penalties of perjury by a person authorized to bind the ultimate purchaser and is in the same format as the Model Waiver N. Free efile for state taxes A new waiver is required each year or when any information in the current waiver expires. Free efile for state taxes The ultimate purchaser of kerosene for use in nonexempt, noncommercial aviation must provide a certificate that is signed under penalties of perjury by a person authorized to bind the ultimate purchaser and is in the same format as the Model Certificate Q. Free efile for state taxes A new certificate is required each year or when any information in the current certificate expires. Free efile for state taxes Registered ultimate vendor. Free efile for state taxes   Registered ultimate vendors may make claims for certain sales of fuels on Form 4136, Schedule 2 (Form 8849), and Schedule C (Form 720) if reporting excise tax liability on that return. Free efile for state taxes If you are a registered ultimate vendor, you must keep certain information pertaining to the sale of the fuel. Free efile for state taxes   To make a claim, you must have sold the fuel at a tax-excluded price, repaid the tax to the buyer, or obtained the buyer's written consent to the allowance of the claim. Free efile for state taxes You are required to have a valid certificate or waiver in your possession in order to make the claim. Free efile for state taxes   In addition, you must have a registration number that has not been revoked or suspended. Free efile for state taxes See Form 637. Free efile for state taxes State use. Free efile for state taxes   To make a claim as an ultimate vendor (state), you must have a UV registration number and the fuel cannot be purchased with a credit card as explained below. Free efile for state taxes If you sell undyed diesel fuel, undyed kerosene, or kerosene for use in aviation for use by a state or local government, you must keep the following information. Free efile for state taxes The name and taxpayer identification number of each person (government unit) that bought the fuel. Free efile for state taxes The number of gallons sold to each person. Free efile for state taxes An unexpired certificate from the buyer. Free efile for state taxes See Model Certificate P in the Appendix. Free efile for state taxes The certificate expires on the earlier of 1 year after the date of the certificate or the date a new certificate is given to the registered ultimate vendor. Free efile for state taxes Nonprofit educational organization and state use. Free efile for state taxes   To make a claim as an ultimate vendor (nonprofit educational organization or state), you must have a UV registration number and the fuel cannot be purchased with a credit card as explained later. Free efile for state taxes If you sell gasoline or aviation gasoline to a nonprofit educational organization for its exclusive use or to a state or local government for its exclusive use, you must keep the following information. Free efile for state taxes The name and taxpayer identification number of each person (nonprofit educational organization or government unit) that bought the fuel. Free efile for state taxes The number of gallons sold to each person. Free efile for state taxes An unexpired certificate from the buyer. Free efile for state taxes See Model Certificate M in the Appendix. Free efile for state taxes  The certificate expires on the earlier of 1 year after the date of the certificate or the date a new certificate is given to the registered ultimate vendor. Free efile for state taxes Blocked pump. Free efile for state taxes   To make a claim as an ultimate vendor (blocked pump), you must have a UP registration number. Free efile for state taxes If you sell undyed kerosene (other than kerosene for use in aviation) from a pump that qualifies as a blocked pump because it is locked by you after each sale and is unlocked by you at the request of the buyer, you must keep the following information for each sale of more than 5 gallons. Free efile for state taxes The date of each sale. Free efile for state taxes The name and address of the buyer. Free efile for state taxes The number of gallons sold to that buyer. Free efile for state taxes Certain intercity and local bus use. Free efile for state taxes   To make a claim as an ultimate vendor of undyed diesel fuel or undyed kerosene used in certain intercity and local buses, you must have a UB registration number. Free efile for state taxes You must keep the following information. Free efile for state taxes The date of each sale. Free efile for state taxes The name and address of the buyer. Free efile for state taxes The number of gallons sold to the buyer. Free efile for state taxes A copy of the waiver signed by the buyer at the time the credit or payment is claimed. Free efile for state taxes See Model Waiver N in the Appendix. Free efile for state taxes Kerosene for use in commercial aviation or noncommercial aviation. Free efile for state taxes   To make a claim as an ultimate vendor of kerosene for use in commercial aviation (other than foreign trade) or noncommercial aviation (other than nonexempt, noncommercial aviation and exclusive use by a state, political subdivision of a state, or the District of Columbia), you must have a UA registration number. Free efile for state taxes See Kerosene for use in aviation, earlier, for a list of nontaxable uses. Free efile for state taxes You must keep the following information. Free efile for state taxes The date of each sale. Free efile for state taxes The name and address of the buyer. Free efile for state taxes The number of gallons sold to the buyer. Free efile for state taxes A copy of the waiver signed by the buyer at the time the credit or payment is claimed. Free efile for state taxes See Model Waiver L in the Appendix. Free efile for state taxes Kerosene for use in nonexempt, noncommercial aviation. Free efile for state taxes   To make a claim as an ultimate vendor of kerosene for use in nonexempt, noncommercial aviation, you must have a UA registration number. Free efile for state taxes You must keep the following information. Free efile for state taxes The date of each sale. Free efile for state taxes The name and address of the buyer. Free efile for state taxes The number of gallons sold to the buyer. Free efile for state taxes A copy of the certificate signed by the buyer at the time the credit or payment is claimed. Free efile for state taxes See Model Certificate Q in the Appendix. Free efile for state taxes Claims by credit card issuers. Free efile for state taxes   For sales of gasoline, aviation gasoline, diesel fuel, kerosene, or kerosene for use in aviation that are purchased by an exempt user with the use of a credit card, the registered credit card issuer is the only person who can make the claim. Free efile for state taxes An exempt user for this purpose is: For gasoline or aviation gasoline, a state or local government (including essential government use by an Indian tribal government) or a nonprofit educational organization; or For diesel fuel, kerosene, or kerosene for use in aviation, a state or local government (including essential government use by an Indian tribal government). Free efile for state taxes   If gasoline is purchased without the use of a credit card, then the registered ultimate vendor of the gasoline may make the claim for refund or credit. Free efile for state taxes However, if the gasoline is purchased with a credit card issued to a state, but the credit card issuer is not registered by the IRS or does not meet the conditions described, the credit card issuer must collect the tax and the state may make the claim. Free efile for state taxes   If diesel fuel, kerosene, or kerosene for use in aviation is purchased without the use of a credit card, the registered ultimate vendor may make the claim for refund or credit. Free efile for state taxes A state is not allowed to make a claim for these fuels. Free efile for state taxes However, if the diesel fuel or kerosene is purchased with a credit card issued to a state, but the credit card issuer is not registered by the IRS or does not meet the conditions described, the credit card issuer must collect the tax and the state may make the claim. Free efile for state taxes   The claim from the credit card issuer must contain the following information as it applies to the fuel covered in the claim. Free efile for state taxes The total number of gallons. Free efile for state taxes Its registration number. Free efile for state taxes A statement that it has not collected the amount of tax from the ultimate purchaser or has obtained the written consent of the ultimate purchaser to make the claim. Free efile for state taxes A statement that it has repaid or agreed to repay the amount of tax to the ultimate vendor, has obtained the written consent of the ultimate vendor to make the claim, or has otherwise made arrangements which directly or indirectly provide the ultimate vendor with reimbursement of the tax. Free efile for state taxes Has in its possession an unexpired certificate similar to Model Certificate R in the Appendix and has no reason to believe any of the information in the certificate is false. Free efile for state taxes Taxpayer identification number. Free efile for state taxes   To file a claim, you must have a taxpayer identification number. Free efile for state taxes Your taxpayer identification number can be an: Employer identification number (EIN), Social security number (SSN), or Individual taxpayer identification number (ITIN), if you are an alien individual and do not have and are not eligible to get an SSN. Free efile for state taxes   If you normally file only a U. Free efile for state taxes S. Free efile for state taxes individual income tax return (such as Form 1040 or 1040NR), use your SSN or ITIN. Free efile for state taxes You get an SSN by filing Form SS-5, Application for a Social Security Card, with the Social Security Administration. Free efile for state taxes To get an ITIN, file Form W-7, Application for IRS Individual Taxpayer Identification Number, with the IRS. Free efile for state taxes   If you operate a business, use your EIN. Free efile for state taxes If you do not have an EIN, you may apply for one online. Free efile for state taxes Go to the IRS website at irs. Free efile for state taxes gov/businesses/small and click on the “Employer ID Numbers (EINs)” link. Free efile for state taxes You may also apply for an EIN by calling 1-800-829-4933, or you can fax or mail Form SS-4, Application for Employer Identification Number, to the IRS. Free efile for state taxes Claiming A Refund Generally, you may claim a refund of excise taxes on Form 8849. Free efile for state taxes Complete and attach to Form 8849 the appropriate Form 8849 schedules. Free efile for state taxes The instructions for Form 8849 and the separate instructions for each schedule explain the requirements for making a claim for refund. Free efile for state taxes If you file Form 720, you can use the Schedule C (Form 720) for your refund claims for the quarter. Free efile for state taxes See the Instructions for Form 720. Free efile for state taxes Do not claim a refund on Form 8849 for any amount for which you have filed or will file a claim on Schedule C (Form 720) or Form 4136. Free efile for state taxes The alternative fuel mixture credit must be claimed on Schedule C (Form 720) against your section 4081 taxable fuel liability for gasoline, diesel, and kerosene and any excess is not allowed. Free efile for state taxes The alternative fuel credit must first be claimed on Schedule C (Form 720) against your section 4041 taxable fuel liability for alternative fuel and CNG. Free efile for state taxes To the extent the alternative fuel credit exceeds this taxable fuel liability, a payment is allowed and may be claimed as a credit on Schedule C (Form 720), or as an income tax credit on Forms 4136, 6478, or 8864, as applicable. Free efile for state taxes Only one claim may be made for any particular amount of alternative fuel. Free efile for state taxes Claiming a Credit on Form 4136 For alternative fuel mixtures produced after December 31, 2011, the alternative fuel mixture credit cannot be claimed on Form 4136. Free efile for state taxes See Biodiesel or Renewable Diesel Mixture Credit, Alternative Fuel Credit and Alternative Fuel Mixture Credit in chapter 2, earlier. Free efile for state taxes A credit may be claimed for certain uses and sales of fuels on Form 4136 when you file your income tax return at the end of the year. Free efile for state taxes If you meet certain requirements (discussed earlier), you may be able to make a claim during the year. Free efile for state taxes Credit only. Free efile for state taxes   You can claim the following taxes only as a credit on Form 4136. Free efile for state taxes Tax on fuels used for nontaxable uses if the total for your tax year is less than $750. Free efile for state taxes Tax on fuel you did not include in any claim for refund previously filed for any quarter of your tax year. Free efile for state taxes Tax on fuel you used in mobile machinery (off-highway business use) that traveled less than 7,500 miles on public highways. Free efile for state taxes Do not claim a credit for any amount for which you have filed a refund claim on Form 8849 or credit on Schedule C (Form 720). Free efile for state taxes When to file. Free efile for state taxes   You can claim a fuel tax credit on your income tax return for the year you used the fuel (or sold the fuel in the case of a registered ultimate vendor claim). Free efile for state taxes You may be able to make a fuel tax claim on an amended income tax return for the year you used the fuel. Free efile for state taxes Generally, you must file an amended return by the later of 3 years from the date you filed your original return or within 2 years from the date you paid the income tax. Free efile for state taxes How to claim a credit. Free efile for state taxes   How you claim a credit depends on whether you are an individual, partnership, corporation, S corporation, or farmers' cooperative association. Free efile for state taxes Individuals. Free efile for state taxes   You claim the credit on the “Credits from” line of Form 1040. Free efile for state taxes Also check box b on that line. Free efile for state taxes If you would not otherwise have to file an income tax return, you must do so to get a fuel tax credit. Free efile for state taxes Partnerships. Free efile for state taxes   Partnerships (other than electing large partnerships) claim the credit by including a statement on Schedule K-1 (Form 1065), Partner's Share of Income, Deductions, Credits, etc. Free efile for state taxes , showing each partner's share of the number of gallons of each fuel sold or used for a non
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Tax Relief for Victims of Severe Storms, Tornadoes, Straight-line Winds and Flooding in Kentucky

Updated 3/13/2012 to include Grayson, Larue, Ohio, Russell and Trimble counties.
Updated 3/12/2012 to include Magoffin and Wolfe counties.
Updated 3/9/2012 to include Bath, Campbell, Carroll, Grant, Martin, Montgomery and Rowan counties.

KY-2012-08, March 7, 2012

DETROIT — Victims of the severe storms, tornadoes, straight-line winds and flooding that started on Feb. 29, 2012 in parts of Kentucky may qualify for tax relief from the Internal Revenue Service.

The President has declared Bath, Campbell, Carroll, Grant, Grayson, Johnson, Kenton, Larue, Laurel, Lawrence, Magoffin, Martin, Menifee, Montgomery, Morgan, Ohio, Pendleton, Rowan, Russell, Trimble and Wolfe counties a federal disaster area. Individuals who reside or have a business in these counties may qualify for tax relief.

The declaration permits the IRS to postpone certain deadlines for taxpayers who reside or have a business in the disaster area. For instance, certain deadlines falling on or after Feb. 29, and on or before May 31, have been postponed to May 31, 2012. This includes the April 17 deadline for filing 2011 individual income tax returns, making income tax payments and making 2011 contributions to an individual retirement account (IRA).  

In addition, the IRS is waiving the failure-to-deposit penalties for employment and excise tax deposits due on or after Feb. 29, and on or before March 15, as long as the deposits are made by March 15, 2012.

If an affected taxpayer receives a penalty notice from the IRS, the taxpayer should call the telephone number on the notice to have the IRS abate any interest and any late filing or late payment penalties that would otherwise apply. Penalties or interest will be abated only for taxpayers who have an original or extended filing, payment or deposit due date, including an extended filing or payment due date, that falls within the postponement period.

The IRS automatically identifies taxpayers located in the covered disaster area and applies automatic filing and payment relief. But affected taxpayers who reside or have a business located outside the covered disaster area must call the IRS disaster hotline at 1-866-562-5227 to request this tax relief.

Covered Disaster Area

The counties listed above constitute a covered disaster area for purposes of Treas. Reg. § 301.7508A-1(d)(2) and are entitled to the relief detailed below.

Affected Taxpayers

Taxpayers considered to be affected taxpayers eligible for the postponement of time to file returns, pay taxes and perform other time-sensitive acts are those taxpayers listed in Treas. Reg. § 301.7508A-1(d)(1), and include individuals who live, and businesses whose principal place of business is located, in the covered disaster area. Taxpayers not in the covered disaster area, but whose records necessary to meet a deadline listed in Treas. Reg. § 301.7508A-1(c) are in the covered disaster area, are also entitled to relief. In addition, all relief workers affiliated with a recognized government or philanthropic organization assisting in the relief activities in the covered disaster area and any individual visiting the covered disaster area who was killed or injured as a result of the disaster are entitled to relief.

Grant of Relief

Under section 7508A, the IRS gives affected taxpayers until May 31 to file most tax returns (including individual, corporate, and estate and trust income tax returns; partnership returns, S corporation returns, and trust returns; estate, gift, and generation-skipping transfer tax returns; and employment and certain excise tax returns), or to make tax payments, including estimated tax payments, that have either an original or extended due date occurring on or after Feb. 29 and on or before May 31.

The IRS also gives affected taxpayers until May 31 to perform other time-sensitive actions described in Treas. Reg. § 301.7508A-1(c)(1) and Rev. Proc. 2007-56, 2007-34 I.R.B. 388 (Aug. 20, 2007), that are due to be performed on or after Feb. 29 and on or before May 31.

This relief also includes the filing of Form 5500 series returns, in the manner described in section 8 of Rev. Proc. 2007-56. The relief described in section 17 of Rev. Proc. 2007-56, pertaining to like-kind exchanges of property, also applies to certain taxpayers who are not otherwise affected taxpayers and may include acts required to be performed before or after the period above.

The postponement of time to file and pay does not apply to information returns in the W-2, 1098, 1099 series, or to Forms 1042-S or 8027. Penalties for failure to timely file information returns can be waived under existing procedures for reasonable cause. Likewise, the postponement does not apply to employment and excise tax deposits. The IRS, however, will abate penalties for failure to make timely employment and excise tax deposits due on or after Feb. 29 and on or before March 15 provided the taxpayer makes these deposits by March 15.

Casualty Losses

Affected taxpayers in a federally declared disaster area have the option of claiming disaster-related casualty losses on their federal income tax return for either this year or last year. Claiming the loss on an original or amended return for last year will get the taxpayer an earlier refund, but waiting to claim the loss on this year’s return could result in a greater tax saving, depending on other income factors.

Individuals may deduct personal property losses that are not covered by insurance or other reimbursements. For details, see Form 4684 and its instructions.

Affected taxpayers claiming the disaster loss on last year’s return should put the Disaster Designation “Kentucky, Severe Storms, Tornadoes, Straight-line Winds, and Flooding” at the top of the form so that the IRS can expedite the processing of the refund.

Other Relief

The IRS will waive the usual fees and expedite requests for copies of previously filed tax returns for affected taxpayers. Taxpayers should put the assigned Disaster Designation in red ink at the top of Form 4506, Request for Copy of Tax Return, or Form 4506-T, Request for Transcript of Tax Return, as appropriate, and submit it to the IRS.

Affected taxpayers who are contacted by the IRS on a collection or examination matter should explain how the disaster impacts them so that the IRS can provide appropriate consideration to their case.

Taxpayers may download forms and publications from the official IRS website, irs.gov, or order them by calling 800-TAX-FORM (800-829-3676). The IRS toll-free number for general tax questions is 800-829-1040.

Related Information

Page Last Reviewed or Updated: 30-Jan-2014

The Free Efile For State Taxes

Free efile for state taxes Publication 80 - Main Content Table of Contents Introduction 1. Free efile for state taxes Employer Identification Number (EIN) 2. Free efile for state taxes Who Are Employees?Tests. Free efile for state taxes Business Owned and Operated by Spouses Farm Crew Leaders 3. Free efile for state taxes Employee's Social Security Number (SSN)Registering for SSNVS. Free efile for state taxes 4. Free efile for state taxes Wages and Other CompensationFringe Benefits 5. Free efile for state taxes TipsOrdering rule. Free efile for state taxes 6. Free efile for state taxes Social Security and Medicare Taxes for FarmworkersThe $150 Test or the $2,500 Test 7. Free efile for state taxes How To Figure Social Security and Medicare TaxesHousehold and agricultural employers. Free efile for state taxes 8. Free efile for state taxes Depositing TaxesPayment with Return When To Deposit How To Deposit Deposit Penalties 9. Free efile for state taxes Employer's ReturnsReporting Adjustments to Form 941-SS, 944-SS, 944, or 943 Current Period Adjustments Prior Period Adjustments 10. Free efile for state taxes Wage and Tax StatementsWaiver. Free efile for state taxes 11. Free efile for state taxes Federal Unemployment (FUTA) Tax—U. Free efile for state taxes S. Free efile for state taxes Virgin Islands Employers Only How To Get Tax Help Introduction This publication is for employers whose principal place of business is in the U. Free efile for state taxes S. Free efile for state taxes Virgin Islands, Guam, American Samoa, or the Commonwealth of the Northern Mariana Islands, or who have employees who are subject to income tax withholding for any of these jurisdictions. Free efile for state taxes Employers and employees in these areas are generally subject to social security and Medicare taxes under the Federal Insurance Contributions Act (FICA). Free efile for state taxes See section 6 and section 7 for more information. Free efile for state taxes This publication summarizes employer responsibilities to collect, pay, and report these taxes. Free efile for state taxes Whenever the term “United States” is used in this publication, it includes U. Free efile for state taxes S. Free efile for state taxes Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands. Free efile for state taxes This publication also provides employers in the U. Free efile for state taxes S. Free efile for state taxes Virgin Islands with a summary of their responsibilities in connection with the tax under the Federal Unemployment Tax Act, known as FUTA tax. Free efile for state taxes See section 11 for more information. Free efile for state taxes Except as shown in the table in section 12, social security, Medicare, and FUTA taxes apply to every employer who pays taxable wages to employees or who has employees who report tips. Free efile for state taxes This publication does not include information relating to the self-employment tax (for social security and Medicare of self-employed persons). Free efile for state taxes See Publication 570, Tax Guide for Individuals With Income From U. Free efile for state taxes S. Free efile for state taxes Possessions, if you need this information. Free efile for state taxes This publication also does not include information relating to income tax withholding. Free efile for state taxes In U. Free efile for state taxes S. Free efile for state taxes Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands, contact your local tax department for information about income tax withholding. Free efile for state taxes See Publication 15 (Circular E), for information on U. Free efile for state taxes S. Free efile for state taxes federal income tax withholding. Free efile for state taxes Comments and suggestions. Free efile for state taxes   We welcome your comments about this publication and your suggestions for future editions. Free efile for state taxes   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. Free efile for state taxes NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Free efile for state taxes Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Free efile for state taxes    You can also send us comments from www. Free efile for state taxes irs. Free efile for state taxes gov/formspubs. Free efile for state taxes Click on More Information and then click on Comment on Tax Forms and Publications. Free efile for state taxes   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax forms, instructions, and publications. Free efile for state taxes 1. Free efile for state taxes Employer Identification Number (EIN) An employer identification number (EIN) is a nine-digit number that the IRS issues. Free efile for state taxes Its format is 00-0000000. Free efile for state taxes It is used to identify the tax accounts of employers and certain other organizations and entities that have no employees. Free efile for state taxes Use your EIN on all of the items that you send to the IRS and SSA for your business. Free efile for state taxes If you do not have an EIN, you may apply for one online. Free efile for state taxes Go to IRS. Free efile for state taxes gov and click on the Apply for an EIN Online link under Tools. Free efile for state taxes You may also apply for an EIN by calling 1-800-829-4933, (U. Free efile for state taxes S. Free efile for state taxes Virgin Islands only) or 267-941-1099 (toll call), or you can fax or mail Form SS-4, Application for Employer Identification Number, to the IRS. Free efile for state taxes Do not use a social security number (SSN) in place of an EIN. Free efile for state taxes If you do not have an EIN by the time a return is due, file a paper return and enter “Applied For” and the date that you applied for it in the space shown for the number. Free efile for state taxes If you took over another employer's business, do not use that employer's EIN. Free efile for state taxes You should have only one EIN. Free efile for state taxes If you have more than one, write to the IRS office where you file your returns using the “without a payment” address in the Instructions for Form 941-SS, Instructions for Form 944, or Instructions for Form 943. Free efile for state taxes Or call the IRS Business & Specialty Tax Line at 1-800-829-4933 (U. Free efile for state taxes S. Free efile for state taxes Virgin Islands only) or 267-941-1000 (toll call). Free efile for state taxes Persons who are deaf, hard of hearing, or have a speech disability (TDD/TTY users) in the U. Free efile for state taxes S. Free efile for state taxes Virgin Islands may call 1-800-829-4059. Free efile for state taxes The IRS will tell you which EIN to use. Free efile for state taxes For more information, see Publication 1635, Employer Identification Number: Understanding Your EIN, or Publication 583, Starting a Business and Keeping Records. Free efile for state taxes 2. Free efile for state taxes Who Are Employees? Generally, employees are defined either under common law or under special statutes for certain situations. Free efile for state taxes See Publication 15-A, Employer's Supplemental Tax Guide, for details on statutory employees and nonemployees. Free efile for state taxes Employee status under common law. Free efile for state taxes   Generally, a worker who performs services for you is your employee if you can control what will be done and how it will be done. Free efile for state taxes This is so even when you give the employee freedom of action. Free efile for state taxes What matters is that you have the right to control the details of how the services are performed. Free efile for state taxes See Publication 15-A for more information on how to determine whether an individual providing services is an independent contractor or an employee. Free efile for state taxes    Generally, people in business for themselves are not employees. Free efile for state taxes For example, doctors, lawyers, veterinarians, and others in an independent trade in which they offer their services to the public are usually not employees. Free efile for state taxes However, if the business is incorporated, corporate officers who work in the business are employees of the corporation. Free efile for state taxes   If an employer-employee relationship exists, it does not matter what it is called. Free efile for state taxes The employee may be called an agent or independent contractor. Free efile for state taxes It also does not matter how payments are measured or paid, what they are called, or if the employee works full or part time. Free efile for state taxes Statutory employees. Free efile for state taxes   There are also some special definitions of employees for social security, Medicare, and FUTA taxes. Free efile for state taxes   While the following persons may not be common law employees, they are considered employees for social security and Medicare purposes if the conditions under Tests , discussed later, are met. Free efile for state taxes a. Free efile for state taxes   An agent (or commission) driver who delivers food or beverages (other than milk) or picks up and delivers laundry or dry cleaning for someone else. Free efile for state taxes b. Free efile for state taxes   A full-time life insurance salesperson who sells primarily for one company. Free efile for state taxes c. Free efile for state taxes   A homeworker who works by the guidelines of the person for whom the work is done, with materials furnished by and returned to that person or to someone that person designates. Free efile for state taxes d. Free efile for state taxes   A traveling or city salesperson (other than an agent-driver or commission-driver) who works full time (except for sideline sales activities) for one firm or person getting orders from customers. Free efile for state taxes The orders must be for merchandise for resale or supplies for use in the customer's business. Free efile for state taxes The customers must be retailers, wholesalers, contractors, or operators of hotels, restaurants, or other businesses dealing with food or lodging. Free efile for state taxes Tests. Free efile for state taxes   Withhold social security and Medicare taxes from statutory employees' wages if all three of the following tests apply. Free efile for state taxes The service contract states or implies that almost all of the services are to be performed personally by them. Free efile for state taxes They have little or no investment in the equipment and property used to perform the services (other than an investment in transportation facilities). Free efile for state taxes The services are performed on a continuing basis for the same payer. Free efile for state taxes Persons in a or d, earlier, are also employees for FUTA tax purposes if tests 1 through 3 are met (U. Free efile for state taxes S. Free efile for state taxes Virgin Islands only). Free efile for state taxes   Publication 15-A gives examples of the employer-employee relationship. Free efile for state taxes Statutory nonemployees. Free efile for state taxes   Certain direct sellers, qualified real estate agents, and certain companion sitters are, by law, considered nonemployees. Free efile for state taxes They are generally treated as self-employed for employment tax purposes. Free efile for state taxes See Publication 15-A for details. Free efile for state taxes H-2A agricultural workers. Free efile for state taxes   On Form W-2, do not check box 13 (Statutory employee) as H-2A workers are not statutory employees. Free efile for state taxes Treating employees as nonemployees. Free efile for state taxes   If you incorrectly treated an employee as a nonemployee and did not withhold social security and Medicare taxes, you will be liable for the taxes. Free efile for state taxes See Treating employees as nonemployees in section 2 of Publication 15 (Circular E), for details on Internal Revenue Code section 3509, which may apply. Free efile for state taxes IRS help. Free efile for state taxes   If you want the IRS to determine if a worker is an employee, file Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding. Free efile for state taxes Voluntary Classification Settlement Program (VCSP). Free efile for state taxes   Employers who are currently treating their workers (or a class or group of workers) as independent contractors or other nonemployees and want to voluntarily reclassify their workers as employees for future tax periods may be eligible to participate in the VCSP if certain requirements are met. Free efile for state taxes To apply, use Form 8952, Application for Voluntary Classification Settlement Program (VCSP). Free efile for state taxes For more information, visit IRS. Free efile for state taxes gov and enter “VCSP” in the search box. Free efile for state taxes Business Owned and Operated by Spouses If you and your spouse jointly own and operate a business and share in the profits and losses, you are partners in a partnership, whether or not you have a formal partnership agreement. Free efile for state taxes See Publication 541, Partnerships, for more details. Free efile for state taxes The partnership is considered the employer of any employees, and is liable for any employment taxes due on wages paid to its employees. Free efile for state taxes Exception—Qualified Joint Venture. Free efile for state taxes   If you and your spouse materially participate as the only members of a jointly owned and operated business, and you file a joint Form 1040, U. Free efile for state taxes S. Free efile for state taxes Individual Income Tax Return, or joint Form 1040-SS, U. Free efile for state taxes S. Free efile for state taxes Self-Employment Tax Return—U. Free efile for state taxes S. Free efile for state taxes Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, or Puerto Rico, you can make a joint election to be taxed as a qualified joint venture instead of a partnership. Free efile for state taxes See the Instructions for Schedule C (Form 1040) or the Instructions for Form 1040-SS. Free efile for state taxes Spouses electing qualified joint venture status are treated as sole proprietors for federal tax purposes. Free efile for state taxes Either of the sole proprietor spouses may report and pay the employment taxes due on wages paid to the employees, using the EIN of that spouse’s sole proprietorship. Free efile for state taxes For more information on qualified joint ventures, visit IRS. Free efile for state taxes gov and enter “qualified joint venture” in the search box. Free efile for state taxes Farm Crew Leaders You are an employer of farmworkers if you are a crew leader. Free efile for state taxes A crew leader is a person who furnishes and pays (either on his or her own behalf or on behalf of the farm operator) workers to do farmwork for the farm operator. Free efile for state taxes If there is no written agreement between you and the farm operator stating that you are his or her employee, and if you pay the workers (either for yourself or for the farm operator), then you are a crew leader. Free efile for state taxes 3. Free efile for state taxes Employee's Social Security Number (SSN) An employee's social security number (SSN) consists of nine digits separated as follows: 000-00-0000. Free efile for state taxes You must get each employee's name and SSN and enter them on Form W-2AS, W-2CM, W-2GU, or W-2VI. Free efile for state taxes If you do not report the employee's correct name and SSN, you may owe a penalty unless you have reasonable cause. Free efile for state taxes See Publication 1586, Reasonable Cause Regulations and Requirements for Missing and Incorrect Name/TINs, for information on the requirement to solicit the employee's SSN. Free efile for state taxes Employee's social security card. Free efile for state taxes   You should ask the employee to show you his or her social security card. Free efile for state taxes The employee may show the card if it is available. Free efile for state taxes Do not accept a social security card that says “Not valid for employment. Free efile for state taxes ” A social security number issued with this legend does not permit employment. Free efile for state taxes You may, but you are not required to, photocopy the social security card if the employee provides it. Free efile for state taxes If an employee does not have a social security card or needs a new one, the employee should apply for one on Form SS-5 and submit the necessary documentation. Free efile for state taxes The employee must complete and sign Form SS-5; it cannot be filed by the employer. Free efile for state taxes You may be asked to supply a letter to accompany Form SS-5 if the employee has exceeded his or her yearly or lifetime limit for the number of replacement cards allowed. Free efile for state taxes If your employee has applied for an SSN but has not received the card before you must file your Form W-2 reports, and you are filing your reports on paper, enter “Applied For” in box d. Free efile for state taxes Enter all zeroes in the SSN field if filing electronically. Free efile for state taxes When the employee receives the SSN, file Copy A of Form W-2c with SSA to show the employee's SSN. Free efile for state taxes Correctly record the employee's name and SSN. Free efile for state taxes   Record the name and number of each employee as they appear on his or her social security card. Free efile for state taxes If the name is not correct as shown on the card (for example, because of marriage or divorce), the employee should request a corrected card from the SSA. Free efile for state taxes Continue to use the old name until the employee shows you the replacement social security card with the corrected name. Free efile for state taxes   If the SSA issues the employee a replacement card after a name change, or a new card with a different social security number after a change in alien work status, file a Form W-2c to correct the name/SSN reported on the most recently filed Form W-2AS, W-2CM, W-2GU, or W-2VI. Free efile for state taxes It is not necessary to correct other years if the previous name and SSN were used for years before the most recent Form W-2. Free efile for state taxes Where to get and file social security number application forms. Free efile for state taxes    U. Free efile for state taxes S. Free efile for state taxes Virgin Islands—U. Free efile for state taxes S. Free efile for state taxes Social Security Administration, 8000 Nisky Center, First Floor, Suite 2, St. Free efile for state taxes Thomas, VI 00802. Free efile for state taxes  Guam—U. Free efile for state taxes S. Free efile for state taxes Social Security Administration, 655 Harmon Loop Road, Suite 300, Dededo, GU 96929. Free efile for state taxes  American Samoa—U. Free efile for state taxes S. Free efile for state taxes Social Security Administration, Pago Plaza, Suite 117, Pago Pago, AS 96799. Free efile for state taxes  Commonwealth of the Northern Mariana Islands—U. Free efile for state taxes S. Free efile for state taxes Social Security Administration, MH Building, Suite 201, Saipan, MP 96950. Free efile for state taxes Verification of social security numbers. Free efile for state taxes   Employers and authorized reporting agents can use the Social Security Number Verification Service (SSNVS) to instantly verify up to 10 names and SSNs (per screen) at a time, or submit an electronic file of up to 250,000 names and SSNs and usually receive the results the next business day. Free efile for state taxes Visit www. Free efile for state taxes socialsecurity. Free efile for state taxes gov/employer/ssnv. Free efile for state taxes htm for more information. Free efile for state taxes Registering for SSNVS. Free efile for state taxes   You must register online and receive authorization from your employer to use SSNVS. Free efile for state taxes To register, visit SSA's website at www. Free efile for state taxes ssa. Free efile for state taxes gov/employer and click on the Business Services Online link. Free efile for state taxes Follow the registration instructions to obtain a user identification (ID) and password. Free efile for state taxes You will need to provide the following information about yourself and your company. Free efile for state taxes Name. Free efile for state taxes SSN. Free efile for state taxes Date of birth. Free efile for state taxes Type of employer. Free efile for state taxes EIN. Free efile for state taxes Company name, address, and telephone number. Free efile for state taxes Email address. Free efile for state taxes   When you have completed the online registration process, SSA will mail a one-time activation code to your employer. Free efile for state taxes You must enter the activation code online to use SSNVS. Free efile for state taxes 4. Free efile for state taxes Wages and Other Compensation Generally, all wages are subject to social security and Medicare tax (and FUTA tax for U. Free efile for state taxes S. Free efile for state taxes Virgin Islands employers). Free efile for state taxes However, wages subject to social security tax and FUTA tax are limited by a wage base amount that you pay to each employee for the year. Free efile for state taxes The wage base for social security tax is $117,000 for 2014. Free efile for state taxes After you pay $117,000 to an employee in 2014, including tips, do not withhold social security tax on any amount that you later pay to the employee for the year. Free efile for state taxes The wage base for FUTA tax is $7,000 for 2014. Free efile for state taxes All wages are subject to Medicare tax. Free efile for state taxes The wages may be in cash or in other forms, such as an automobile for personal use. Free efile for state taxes Wages include salaries, vacation allowances, bonuses, commissions, and fringe benefits. Free efile for state taxes It does not matter how payments are measured or paid. Free efile for state taxes See the table in section 12 for exceptions to social security, Medicare, and FUTA taxes on wages. Free efile for state taxes See section 5 and section 6 for a discussion of how the rules apply to tips and farmworkers. Free efile for state taxes Social security and Medicare taxes apply to most payments of sick pay, including payments by third parties such as insurance companies. Free efile for state taxes Special rules apply to the reporting of third-party sick pay. Free efile for state taxes For details, see Publication 15-A. Free efile for state taxes Determine the value of noncash pay (such as goods, lodging, and meals) by its fair market value. Free efile for state taxes However, see Fringe Benefits , later in this section. Free efile for state taxes Except for farmworkers and household employees, this kind of pay may be subject to social security, Medicare, and FUTA taxes. Free efile for state taxes Back pay, including retroactive wage increases (but not amounts paid as liquidated damages), is taxed as ordinary wages in the year paid. Free efile for state taxes For information on reporting back pay to the Social Security Administration, see Publication 957, Reporting Back Pay and Special Wage Payments to the Social Security Administration. Free efile for state taxes Travel and business expenses. Free efile for state taxes   Payments to your employee for travel and other necessary expenses of your business generally are included in taxable wages if (a) your employee is not required to or does not substantiate timely those expenses to you with receipts or other documentation, or (b) you advance an amount to your employee for business expenses and your employee is not required to or does not return timely any amount that he or she does not substantiate. Free efile for state taxes Sick pay. Free efile for state taxes   In general, sick pay is any amount that you pay, under a plan that you take part in, to an employee because of sickness or injury. Free efile for state taxes These amounts are sometimes paid by a third party, such as an insurance company. Free efile for state taxes In either case, these payments are subject to social security and Medicare taxes (and FUTA tax for U. Free efile for state taxes S. Free efile for state taxes Virgin Islands employers). Free efile for state taxes Sick pay becomes exempt from these taxes after the end of 6 calendar months after the calendar month the employee last worked for the employer. Free efile for state taxes Publication 15-A explains the employment tax rules that apply to sick pay, disability benefits, and similar payments to employees. Free efile for state taxes Fringe Benefits Generally, fringe benefits are includible in the gross income of an employee and are subject to employment taxes. Free efile for state taxes Examples of fringe benefits include the use of an automobile, aircraft flights that you provide, free or discounted commercial airline flights, vacations, discounts on property or services, memberships in country clubs or other social clubs, and tickets to entertainment or sporting events. Free efile for state taxes In general, the amount included in the employee's income is the excess of the fair market value of the benefit over the sum of any amount paid for it by the employee and any amount excluded by law. Free efile for state taxes For more information, see Publication 15-B, Employer's Tax Guide to Fringe Benefits. Free efile for state taxes When fringe benefits are treated as paid. Free efile for state taxes   You can choose to treat certain noncash fringe benefits (including personal use of an automobile provided by you) as paid by the pay period, quarter, or on any other basis that you choose, but they must be treated as paid at least annually. Free efile for state taxes You do not have to make a formal choice of payment dates or notify the IRS. Free efile for state taxes You do not have to use the same basis for all employees. Free efile for state taxes You may change methods as often as you like, as long as all benefits provided in a calendar year are treated as paid no later than December 31 of the calendar year. Free efile for state taxes However, see Special accounting rule for fringe benefits provided during November and December , later in this section. Free efile for state taxes   You can treat the value of a single taxable noncash fringe benefit as paid on one or more dates in the same calendar year, even if the employee gets the entire benefit at one time. Free efile for state taxes However, once you elect the payment dates, you must report the taxes on your return in the same tax period in which you treated them as paid. Free efile for state taxes This election does not apply to a fringe benefit where real property or investment personal property is transferred. Free efile for state taxes Withholding social security and Medicare taxes on fringe benefits. Free efile for state taxes   You add the value of fringe benefits to regular wages for a payroll period and figure social security and Medicare taxes on the total. Free efile for state taxes   If you withhold less than the required amount of social security and Medicare taxes from the employee in a calendar year but report and pay the proper amount, you may recover the taxes from the employee. Free efile for state taxes Depositing taxes on fringe benefits. Free efile for state taxes   Once you choose payment dates for taxable noncash fringe benefits, you must deposit taxes in the same deposit period that you treat the fringe benefits as paid. Free efile for state taxes You may make a reasonable estimate of the value of the fringe benefits. Free efile for state taxes In general, the value of taxable noncash fringe benefits provided in a calendar year must be determined by January 31 of the following year. Free efile for state taxes   You may claim a refund of overpayments or elect to have any overpayment applied to the next employment tax return. Free efile for state taxes If deposits are underpaid, see Deposit Penalties in section 8. Free efile for state taxes Valuation of vehicles provided to employees. Free efile for state taxes    If you provide a vehicle to your employees, you may either determine the actual value of the benefit for the entire calendar year, taking into account the business use of the vehicle, or consider the entire use for the calendar year as personal and include 100% of the value of the vehicle in the employee's income. Free efile for state taxes For reporting information to employees, see the box 14 instructions in the General Instructions for Forms W-2 and W-3. Free efile for state taxes Special accounting rule for fringe benefits provided during November and December. Free efile for state taxes   You may choose to treat the value of taxable noncash fringe benefits provided during November and December as paid in the next year. Free efile for state taxes However, this applies only to those benefits that you actually provided during November and December, not to those you merely treated as paid during those months. Free efile for state taxes   If you use this rule, you must notify each affected employee between the time of the employee's last paycheck of the calendar year and at or near the time that you give the employee Form W-2AS, W-2CM, W-2GU, or W-2VI. Free efile for state taxes If you use the special accounting rule, your employee must also use it for the same period that you use it. Free efile for state taxes You cannot use this rule for a fringe benefit of real property or tangible or intangible real property of a kind normally held for investment that is transferred to your employee. Free efile for state taxes 5. Free efile for state taxes Tips Tips that your employee receives from customers are generally subject to social security and Medicare withholding. Free efile for state taxes Your employee must report cash tips to you by the 10th of the month after the month that the tips are received. Free efile for state taxes The report should include tips you paid over to the employee for charge customers, tips the employee received directly from customers, and tips received from other employees under any tip-sharing arrangement. Free efile for state taxes Both directly and indirectly tipped employees must report tips to you. Free efile for state taxes The report should not include tips that the employee paid out to other employees. Free efile for state taxes No report is required for months when tips are less than $20. Free efile for state taxes Your employees report tips on Form 4070, Employee's Report of Tips to Employer, or on a similar statement. Free efile for state taxes They may also use Form 4070A, Employee's Daily Record of Tips, to keep a record of their tips. Free efile for state taxes Both forms are included in Publication 1244, Employee's Daily Record of Tips and Report to Employer, available at IRS. Free efile for state taxes gov. Free efile for state taxes The statement must be signed by the employee and must include: The employee's name, address, and SSN, Your name and address, The month or period that the report covers, and The total tips received during the month or period. Free efile for state taxes You are permitted to establish a system for electronic tip reporting by employees. Free efile for state taxes See Regulations section 31. Free efile for state taxes 6053-1(d). Free efile for state taxes Collecting taxes on tips. Free efile for state taxes   You must collect the employee social security and Medicare taxes on the employee's tips. Free efile for state taxes You can also collect these taxes from the employee's wages or from other funds that he or she makes available. Free efile for state taxes Stop collecting the employee social security tax when his or her total wages and tips for 2014 reach $117,000. Free efile for state taxes Collect the employee Medicare tax for the whole year on all wages and tips. Free efile for state taxes   You are responsible for the employer social security tax on wages and tips until the wages (including tips) reach the wage base limit. Free efile for state taxes You are responsible for the employer Medicare tax for the whole year on all wages and tips. Free efile for state taxes File Form 941-SS (or Form 944) to report withholding and employer taxes on tips. Free efile for state taxes The withholding rules for withholding an employee's share of Medicare tax on tips also apply to withholding the Additional Medicare Tax once wages and tips exceed $200,000 in the calendar year. Free efile for state taxes Ordering rule. Free efile for state taxes   If, by the 10th of the month after the month you received an employee's report on tips, you do not have enough employee funds available to deduct the employee social security and Medicare tax on tips, you no longer have to collect it and are not liable for it. Free efile for state taxes Reporting tips. Free efile for state taxes   Report tips and any collected and uncollected social security in boxes 1, 5, 7, and 12 on Forms W-2AS, W-2CM, W-2GU, or W-2VI and on Form 941-SS, lines 5b, 5c, and 5d (Form 944, lines 4b, 4c, and 4d). Free efile for state taxes Do not include any uncollected Additional Medicare Tax in box 12 of Form W-2. Free efile for state taxes Report an adjustment on Form 941-SS, line 9 (Form 944, line 6), for the uncollected social security and Medicare taxes. Free efile for state taxes The table in section 12 shows how tips are treated for FUTA tax purposes. Free efile for state taxes   Revenue Ruling 2012-18 provides guidance for employers regarding social security and Medicare taxes imposed on tips, including information on the reporting of the employer share of social security and Medicare taxes under section 3121(q), the difference between tips and service charges, and the section 45B credit. Free efile for state taxes See Revenue Ruling 2012-18, 2012-26 I. Free efile for state taxes R. Free efile for state taxes B. Free efile for state taxes 1032, available at www. Free efile for state taxes irs. Free efile for state taxes gov/irb/2012-26_IRB/ar07. Free efile for state taxes html. Free efile for state taxes 6. Free efile for state taxes Social Security and Medicare Taxes for Farmworkers The tests described below apply only to services that are defined as agricultural labor (farmwork). Free efile for state taxes In general, you are an employer of farmworkers if your employees: Raise or harvest agricultural or horticultural products on your farm (including the raising and feeding of livestock); Work in connection with the operation, management, conservation, improvement, or maintenance of your farm and its tools and equipment; Provide services relating to salvaging timber, or clearing land of brush and other debris, left by a hurricane (also known as hurricane labor); Handle, process, or package any agricultural or horticultural commodity if you produced over half of the commodity (for a group of up to 20 unincorporated operators, all of the commodity); or Do work for you related to cotton ginning, turpentine, gum resin products, or the operation and maintenance of irrigation facilities. Free efile for state taxes For this purpose, the term “farm” includes stock, dairy, poultry, fruit, fur-bearing animal, and truck farms, as well as plantations, ranches, nurseries, ranges, greenhouses or other similar structures used primarily for the raising of agricultural or horticultural commodities, and orchards. Free efile for state taxes Farmwork does not include reselling activities that do not involve any substantial activity of raising agricultural or horticultural commodities, such as a retail store or a greenhouse used primarily for display or storage. Free efile for state taxes A “share farmer” working for you is not your employee. Free efile for state taxes However, the share farmer may be subject to self-employment tax. Free efile for state taxes In general, share farming is an arrangement in which certain commodity products are shared between the farmer and the owner (or tenant) of the land. Free efile for state taxes For details, see Regulations section 31. Free efile for state taxes 3121(b)(16)-1. Free efile for state taxes The $150 Test or the $2,500 Test All cash wages that you pay to any employee for farmwork are subject to social security and Medicare taxes if either of the following two tests is met. Free efile for state taxes You pay cash wages to the employee of $150 or more in a year (count all cash wages paid on a time, piecework, or other basis) for farmwork. Free efile for state taxes The $150 test applies separately to each farmworker that you employ. Free efile for state taxes If you employ a family of workers, each member is treated separately. Free efile for state taxes Do not count wages paid by other employers. Free efile for state taxes The total that you pay for farmwork (cash and noncash) to all of your employees is $2,500 or more during the year. Free efile for state taxes Exceptions. Free efile for state taxes   The $150 and $2,500 tests do not apply to wages that you pay to a farmworker who receives less than $150 in annual cash wages and the wages are not subject to social security and Medicare taxes even if you pay $2,500 or more in that year to all of your farmworkers if the farmworker: Is employed in agriculture as a hand-harvest laborer, Is paid piece rates in an operation that is usually paid on a piece-rate basis in the region of employment, Commutes daily from his or her home to the farm, and Had been employed in agriculture less than 13 weeks in the preceding calendar year. Free efile for state taxes   Amounts that you pay to these seasonal farmworkers, however, count toward the $2,500-or-more test to determine whether wages that you pay to other farmworkers are subject to social security and Medicare taxes. Free efile for state taxes 7. Free efile for state taxes How To Figure Social Security and Medicare Taxes The tax rate for social security is 6. Free efile for state taxes 2% (amount withheld) each for the employer and employee (12. Free efile for state taxes 4% total). Free efile for state taxes The social security wage base limit is $117,000. Free efile for state taxes The tax rate for Medicare is 1. Free efile for state taxes 45% (amount withheld) each for the employee and employer (2. Free efile for state taxes 9% total). Free efile for state taxes There is no wage base limit for Medicare tax; all covered wages are subject to Medicare tax. Free efile for state taxes Multiply each wage payment by these percentages to figure the tax to withhold from employees. Free efile for state taxes Employers report both the employee and employer shares on Forms 941-SS, 944, or Form 943 (farm employment). Free efile for state taxes See section 5 for information on tips. Free efile for state taxes Additional Medicare Tax withholding. Free efile for state taxes   In addition to withholding Medicare tax at 1. Free efile for state taxes 45%, you must withhold a 0. Free efile for state taxes 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. Free efile for state taxes You are required to begin withholding Additional Medicare Tax in the pay period in which you pay wages in excess of $200,000 to an employee and continue to withhold it each pay period until the end of the calendar year. Free efile for state taxes Additional Medicare Tax is only imposed on the employee. Free efile for state taxes There is no employer share of Additional Medicare Tax. Free efile for state taxes All wages that are subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 withholding threshold. Free efile for state taxes   For more information on what wages are subject to Medicare tax, see the chart Special Rules for Various Types of Employment and Payments in section 12. Free efile for state taxes For more information on Additional Medicare Tax, visit IRS. Free efile for state taxes gov and enter “Additional Medicare Tax” in the search box. Free efile for state taxes Deducting the tax. Free efile for state taxes   Deduct the employee tax from each wage payment. Free efile for state taxes If you are not sure that the wages that you pay to a farmworker during the year will be taxable, you may either deduct the tax when you make the payments or wait until the $2,500 test or the $150 test explained in section 6 has been met. Free efile for state taxes Employee's portion of taxes paid by employer. Free efile for state taxes   If you pay your employee's social security and Medicare taxes without deducting them from the employee's pay, you must include the amount of the payments in the employee's wages for social security and Medicare taxes. Free efile for state taxes This increase in the employee's wage payment for your payment of the employee's social security and Medicare taxes is also subject to employee social security and Medicare taxes. Free efile for state taxes This again increases the amount of the additional taxes that you must pay. Free efile for state taxes Household and agricultural employers. Free efile for state taxes   This discussion does not apply to household and agricultural employers. Free efile for state taxes If you pay a household or agricultural employee's social security and Medicare taxes, these payments must be included in the employee's wages. Free efile for state taxes However, this wage increase due to the tax payments is not subject to social security or Medicare taxes as discussed in this section. Free efile for state taxes See Publication 15-A for details. Free efile for state taxes Sick pay payments. Free efile for state taxes   Social security and Medicare taxes apply to most payments of sick pay, including payments made by third parties such as insurance companies. Free efile for state taxes For details on third-party payers of sick pay, see Publication 15-A. Free efile for state taxes 8. Free efile for state taxes Depositing Taxes You must deposit social security and Medicare taxes if your tax liability (Form 941-SS, line 10; Form 944, line 7; or Form 943, line 11) is $2,500 or more for the tax return period. Free efile for state taxes You must make the deposit by electronic funds transfer. Free efile for state taxes For more information about electronic funds transfers, see How To Deposit , later in this section. Free efile for state taxes Payment with Return $2,500 rule. Free efile for state taxes   Instead of making deposits during the current quarter, you can pay your total Form 941-SS tax liability when you timely file Form 941-SS if: Your total Form 941-SS tax liability for either the current quarter or the preceding quarter is less than $2,500 and You do not incur a $100,000 next-day deposit obligation during the current quarter. Free efile for state taxes   If you are not sure your total liability for the current quarter will be less than $2,500, (and your liability for the preceding quarter was not less than $2,500), make deposits using the semiweekly or monthly rules so you won't be subject to failure to deposit penalties. Free efile for state taxes Employers who have been notified to file Form 944 can pay their tax liability due for the fourth quarter with Form 944, if their fourth quarter tax liability is less than $2,500. Free efile for state taxes Employers must have deposited any tax liability due for the first, second, and third quarters, according to the deposit rules, in order to avoid failure-to-deposit penalties for deposits due during those quarters. Free efile for state taxes Only monthly schedule depositors are allowed to make an Accuracy of Deposits Rule payment with the return. Free efile for state taxes Semiweekly schedule depositors must timely deposit the amount. Free efile for state taxes See Accuracy of Deposits Rule and How To Deposit, later in this section. Free efile for state taxes When To Deposit Under the rules discussed below, the only difference between farm and nonfarm workers' employment tax deposit rules is the lookback period. Free efile for state taxes Therefore, farm and nonfarm workers are discussed together except where noted. Free efile for state taxes Depending on your total taxes reported during a lookback period (discussed later), you are either a monthly schedule depositor or a semiweekly schedule depositor. Free efile for state taxes The terms “monthly schedule depositor” and “semiweekly schedule depositor” do not refer to how often you pay your employees or how often you are required to make deposits. Free efile for state taxes The terms identify which set of rules that you must follow when a tax liability arises (for example, when you have a payday). Free efile for state taxes You will need to determine your deposit schedule for a calendar year based on the total employment taxes reported on Forms 941-SS, line 10; Form 944, line 7; or Form 943, line 9, for your lookback period (defined below). Free efile for state taxes If you filed both Forms 941-SS and 941 during the lookback period, combine the tax liabilities for these returns for purposes of determining your deposit schedule. Free efile for state taxes Determine your deposit schedule for Form 943 separately from Forms 941-SS and 941. Free efile for state taxes Lookback period for employers of nonfarm workers. Free efile for state taxes   The lookback period for Form 941-SS (or Form 941) consists of four quarters beginning July 1 of the second preceding year and ending June 30 of the prior year. Free efile for state taxes These four quarters are your lookback period even if you did not report any taxes for any of the quarters. Free efile for state taxes For 2014, the lookback period is July 1, 2012, through June 30, 2013. Free efile for state taxes    Table 1. Free efile for state taxes Lookback Period for Calendar Year 2014 Lookback Period July 1, 2012 Oct. Free efile for state taxes 1, 2012 Jan. Free efile for state taxes 1, 2013 Apr. Free efile for state taxes 1, 2013 through through through through Sep. Free efile for state taxes 30, 2012 Dec. Free efile for state taxes 31, 2012 Mar. Free efile for state taxes 31, 2013 June 30, 2013    The lookback period for Form 944 is the second calendar year preceding the current calendar year. Free efile for state taxes For example, the lookback period for calendar year 2014 is calendar year 2012. Free efile for state taxes In addition, for employers who filed Form 944 for 2012 or for 2013 and will file Form 941-SS (or Form 941) for 2014, the lookback period for 2014 is the second calendar year preceding the current calendar year, that is, 2012. Free efile for state taxes Lookback period for employers of farmworkers. Free efile for state taxes   The lookback period for Form 943 is the second calendar year preceding the current calendar year. Free efile for state taxes The lookback period for calendar year 2014 is calendar year 2012. Free efile for state taxes Adjustments to lookback period taxes. Free efile for state taxes   To determine your taxes for the lookback period, use only the tax that you reported on the original returns (Forms 941-SS, 943, or 944). Free efile for state taxes Do not include any adjustments shown on Form 941-X, 943-X, or 944-X. Free efile for state taxes Example. Free efile for state taxes   An employer originally reported total taxes of $45,000 for the lookback period. Free efile for state taxes The employer discovered during January 2014 that the tax reported during the lookback period was understated by $10,000 and corrected this error by filing Form 941-X. Free efile for state taxes The employer is a monthly schedule depositor for 2014 because the lookback period tax liabilities are based on the amounts originally reported, and they were $50,000 or less. Free efile for state taxes Deposit Period The term “deposit period” refers to the period during which tax liabilities are accumulated for each required deposit due date. Free efile for state taxes For monthly schedule depositors, the deposit period is a calendar month. Free efile for state taxes The deposit periods for semiweekly schedule depositors are Wednesday through Friday and Saturday through Tuesday. Free efile for state taxes Monthly Deposit Schedule If your total tax reported for the lookback period is $50,000 or less, you are a monthly schedule depositor for the current year. Free efile for state taxes You must deposit taxes on wage payments made during a calendar month by the 15th day of the following month. Free efile for state taxes New employers. Free efile for state taxes   Your tax liability for any quarter in the lookback period before the date you started or acquired your business is considered to be zero. Free efile for state taxes Therefore, you are a monthly schedule depositor for the first calendar year of your business (but see the $100,000 Next-Day Deposit Rule , later in this section). Free efile for state taxes Semiweekly Deposit Schedule If your total tax reported for the lookback period is more than $50,000, you are a semiweekly schedule depositor for the current year. Free efile for state taxes If you are a semiweekly schedule depositor, you must deposit on Wednesday and/or Friday, depending on what day of the week that you make wage payments, as follows. Free efile for state taxes Deposit taxes on wage payments made on Wednesday, Thursday, and/or Friday by the following Wednesday. Free efile for state taxes Deposit taxes on wage payments made on Saturday, Sunday, Monday, and/or Tuesday by the following Friday. Free efile for state taxes Semiweekly depositors are generally not required to deposit twice a week if their payments were in the same semiweekly period unless the $100,000 Next-Day Deposit Rule , discussed later in this section, applies. Free efile for state taxes For example, if you made a payment on both Wednesday and Friday and incurred taxes of $10,000 for each pay date, deposit the $20,000 on the following Wednesday. Free efile for state taxes If you made no additional payments on Saturday through Tuesday, no deposit is due on Friday. Free efile for state taxes Semiweekly deposit period spanning two quarters. Free efile for state taxes   If you have more than one pay date during a semiweekly period and the pay dates fall in different calendar quarters, you will need to make separate deposits for the separate liabilities. Free efile for state taxes Example. Free efile for state taxes   If you have a pay date on Monday, March 31, 2014 (first quarter), and another pay date on Tuesday, April 1, 2014 (second quarter), two separate deposits will be required even though the pay dates fall within the same semiweekly period. Free efile for state taxes Both deposits will be due on Friday, April 4, 2014 (3 business days from the end of the semiweekly deposit period). Free efile for state taxes Examples of Monthly and Semiweekly Schedules Employers of nonfarm workers. Free efile for state taxes   Rose Co. Free efile for state taxes reported Form 941-SS taxes as follows: 2013 Lookback Period 3rd Quarter 2011 $12,000 4th Quarter 2011 12,000 1st Quarter 2012 12,000 2nd Quarter 2012 12,000   $48,000 2014 Lookback Period 3rd Quarter 2012 $12,000 4th Quarter 2012 12,000 1st Quarter 2013 12,000 2nd Quarter 2013 15,000   $51,000 Rose Co. Free efile for state taxes is a monthly schedule depositor for 2013 because its taxes for the four quarters in its lookback period ($48,000 for the 3rd quarter of 2011 through the 2nd quarter of 2012) were not more than $50,000. Free efile for state taxes However, for 2014, Rose Co. Free efile for state taxes is a semiweekly schedule depositor because the total taxes for the four quarters in its lookback period ($51,000 for the 3rd quarter of 2012 through the 2nd quarter of 2013) exceeded $50,000. Free efile for state taxes Employers of farmworkers. Free efile for state taxes   Red Co. Free efile for state taxes reported taxes on its 2012 Form 943, line 9, of $48,000. Free efile for state taxes On its 2013 Form 943, line 11, it reported taxes of $60,000. Free efile for state taxes   Red Co. Free efile for state taxes is a monthly schedule depositor for 2014 because its taxes for its lookback period ($48,000 for calendar year 2012) were not more than $50,000. Free efile for state taxes However, for 2015, Red Co. Free efile for state taxes is a semiweekly schedule depositor because the total taxes for its lookback period ($60,000 for calendar year 2013) exceeded $50,000. Free efile for state taxes New agricultural employers. Free efile for state taxes   New agricultural employers filing Form 943 are monthly schedule depositors for the first and second calendar years of their business because their taxes for the lookback period (2 years) are considered to be zero. Free efile for state taxes However, see the $100,000 Next-Day Deposit Rule , later in this section. Free efile for state taxes Deposits on Business Days Only If a deposit due date falls on a day that is not a business day, the deposit is considered timely if it is made by the close of the next business day. Free efile for state taxes A business day is any day other than a Saturday, Sunday, or legal holiday. Free efile for state taxes For example, if a deposit is required to be made on Friday, but Friday is a legal holiday, the deposit is considered timely if it is made by the following Monday (if Monday is a business day). Free efile for state taxes Semiweekly schedule depositors have at least 3 business days to make a deposit. Free efile for state taxes If any of the 3 weekdays after the end of a semiweekly period is a legal holiday, you will have an additional day for each day that is a legal holiday to make the required deposit. Free efile for state taxes For example, if a semiweekly schedule depositor accumulated taxes for payments made on Friday and the following Monday is a legal holiday, the deposit normally due on Wednesday may be made on Thursday (this allows 3 business days to make the deposit). Free efile for state taxes Legal holiday. Free efile for state taxes   The term “legal holiday” means any legal holiday in the District of Columbia. Free efile for state taxes Legal holidays for 2014 are listed below. Free efile for state taxes January 1—New Year's Day January 20—Birthday of Martin Luther King, Jr. Free efile for state taxes February 17—Washington's Birthday April 16—District of Columbia Emancipation Day May 26—Memorial Day July 4—Independence Day September 1—Labor Day October 13—Columbus Day November 11—Veterans Day November 27—Thanksgiving Day December 25—Christmas Day Application of Monthly and Semiweekly Schedules The following examples illustrate the procedure for determining the deposit date under the two different deposit schedules. Free efile for state taxes Monthly schedule example. Free efile for state taxes   Spruce Co. Free efile for state taxes is a monthly schedule depositor with seasonal employees. Free efile for state taxes It paid wages each Friday during August but did not pay any wages during September. Free efile for state taxes Under the monthly deposit schedule, Spruce Co. Free efile for state taxes must deposit the combined tax liabilities for the four August paydays by September 15. Free efile for state taxes Spruce Co. Free efile for state taxes does not have a deposit requirement for September (due by October 15) because no wages were paid and, therefore, it did not have a tax liability for September. Free efile for state taxes Semiweekly schedule example. Free efile for state taxes   Green, Inc. Free efile for state taxes is a semiweekly schedule depositor and pays wages once each month on the last Friday of the month. Free efile for state taxes Although Green, Inc. Free efile for state taxes , has a semiweekly deposit schedule, it will deposit just once a month because it pays wages only once a month. Free efile for state taxes The deposit, however, will be made under the semiweekly deposit schedule as follows: Green, Inc. Free efile for state taxes ’s tax liability for the April 25, 2014 (Friday), payday must be deposited by April 30, 2014 (Wednesday). Free efile for state taxes Under the semiweekly deposit schedule, liabilities for wages paid on Wednesday through Friday must be deposited by the following Wednesday. Free efile for state taxes $100,000 Next-Day Deposit Rule If you accumulate taxes of $100,000 or more on any day during a deposit period, you must deposit by the close of the next business day, whether you are a monthly or a semiweekly schedule depositor. Free efile for state taxes For purposes of the $100,000 rule, do not continue accumulating taxes after the end of a deposit period. Free efile for state taxes For example, if a semiweekly schedule depositor has accumulated taxes of $95,000 on Tuesday and $10,000 on Wednesday, the $100,000 next-day deposit rule does not apply because the $10,000 is accumulated in the next deposit period. Free efile for state taxes Thus, $95,000 must be deposited by Friday and $10,000 must be deposited by the following Wednesday. Free efile for state taxes However, once you accumulate at least $100,000 in a deposit period, stop accumulating at the end of that day and begin to accumulate anew on the next day. Free efile for state taxes For example, Fir Co. Free efile for state taxes is a semiweekly schedule depositor. Free efile for state taxes On Monday, Fir Co. Free efile for state taxes accumulates taxes of $110,000 and must deposit on Tuesday, the next business day. Free efile for state taxes On Tuesday, Fir Co. Free efile for state taxes accumulates additional taxes of $30,000. Free efile for state taxes Because the $30,000 is not added to the previous $110,000 and is less than $100,000, Fir Co. Free efile for state taxes does not have to deposit the $30,000 until Friday (following the semiweekly deposit schedule). Free efile for state taxes If you are a monthly schedule depositor and you accumulate a $100,000 tax liability on any day during a month, you become a semiweekly schedule depositor on the next day and remain so for the remainder of the calendar year and for the following calendar year. Free efile for state taxes Example. Free efile for state taxes   Elm, Inc. Free efile for state taxes started its business on May 1, 2014. Free efile for state taxes On May 8, it paid wages for the first time and accumulated a tax liability of $40,000. Free efile for state taxes On Friday, May 9, Elm, Inc. Free efile for state taxes paid wages and accumulated a liability of $60,000, making its accumulated Form 941-SS tax liability total $100,000. Free efile for state taxes Elm, Inc. Free efile for state taxes must deposit $100,000 by Monday, May 12, the next business day. Free efile for state taxes Because this was the first year of its business, the tax liability for its lookback period is considered to be zero, and it would be a monthly schedule depositor based on the lookback rules. Free efile for state taxes However, because Elm, Inc. Free efile for state taxes accumulated $100,000 on May 9, it became a semiweekly schedule depositor on May 10. Free efile for state taxes It will be a semiweekly schedule depositor for the remainder of 2014 and for 2015. Free efile for state taxes Accuracy of Deposits Rule You are required to deposit 100% of your tax liability on or before the deposit due date. Free efile for state taxes However, penalties will not be applied for depositing less than 100% if both of the following conditions are met. Free efile for state taxes Any deposit shortfall does not exceed the greater of $100 or 2% of the amount of taxes otherwise required to be deposited, and The deposit shortfall is paid or deposited by the shortfall makeup date as described below. Free efile for state taxes Makeup date for deposit shortfall: Monthly schedule depositor. Free efile for state taxes Deposit or pay the shortfall by the due date of your Form 941-SS, 944, or 943 for the period in which the shortfall occurred. Free efile for state taxes You may pay the shortfall with your return even if the amount is $2,500 or more. Free efile for state taxes Semiweekly schedule depositor. Free efile for state taxes Deposit by the earlier of: The first Wednesday or Friday (whichever comes first) that comes on or after the 15th of the month following the month in which the shortfall occurred, or The return due date for the period in which the shortfall occurred. Free efile for state taxes For example, if a semiweekly schedule depositor filing Form 941-SS has a deposit shortfall during July 2014, the shortfall makeup date is August 15, 2014 (Friday). Free efile for state taxes However, if the shortfall occurred on the required April 2 (Wednesday), deposit date for a March 28 (Friday) pay date, the return due date for the March 28 pay date (April 30) would come before the May 16 (Friday) shortfall makeup date. Free efile for state taxes In this case, the shortfall must be deposited by April 30, 2014. Free efile for state taxes Employers of Both Farm and Nonfarm Workers If you employ both farm and nonfarm workers, you must treat employment taxes for the farmworkers (Form 943 taxes) separately from employment taxes for the nonfarm workers (Form 941-SS or 944 taxes). Free efile for state taxes Form 943 taxes and Form 941-SS (or Form 944) taxes are not combined for purposes of applying any of the deposit rules. Free efile for state taxes If a deposit is due, deposit the Form 941-SS (or Form 944) taxes and Form 943 taxes separately, as discussed next. Free efile for state taxes How To Deposit You must deposit employment taxes by electronic funds transfer. Free efile for state taxes See Payment with Return , earlier in this section, for exceptions explaining when taxes may be paid with the tax return instead of being deposited. Free efile for state taxes Electronic deposit requirement. Free efile for state taxes   You must use electronic funds transfer to make all federal tax deposits (such as deposits of employment tax, excise tax, and corporate income tax). Free efile for state taxes Generally, electronic fund transfers are made using the Electronic Federal Tax Payment System (EFTPS). Free efile for state taxes If you do not want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make electronic deposits on your behalf. Free efile for state taxes   EFTPS is a free service provided by the Department of the Treasury. Free efile for state taxes To get more information or to enroll in EFTPS, call 1-800-555-4477 (U. Free efile for state taxes S. Free efile for state taxes Virgin Islands only) or 303-967-5916 (toll call). Free efile for state taxes You can also visit the EFTPS website at www. Free efile for state taxes eftps. Free efile for state taxes gov. Free efile for state taxes Additional information about EFTPS is also available in Publication 966. Free efile for state taxes When you receive your EIN. Free efile for state taxes   If you are a new employer that indicated a federal tax obligation when requesting an EIN, you will be pre-enrolled in EFTPS. Free efile for state taxes You will receive information about Express Enrollment in your Employer Identification Number (EIN) Package and an additional mailing containing your EFTPS personal identification number (PIN) and instructions for activating your PIN. Free efile for state taxes Follow the steps in your “How to Activate Your Enrollment” brochure to activate your enrollment and begin making your payroll tax deposits. Free efile for state taxes If you outsource any of your payroll and related tax duties to a third party payer, such as a payroll service provider or reporting agent, be sure to tell them about your EFTPS enrollment. Free efile for state taxes Deposit record. Free efile for state taxes   For your records, an Electronic Funds Transfer (EFT) Trace Number will be provided with each successful payment. Free efile for state taxes The number can be used as a receipt or to trace the payment. Free efile for state taxes Depositing on time. Free efile for state taxes   For deposits made by EFTPS to be on time, you must initiate the deposit by 8 p. Free efile for state taxes m. Free efile for state taxes Eastern time the day before the date the deposit is due. Free efile for state taxes If you use a third party to make deposits on your behalf, they may have different cutoff times. Free efile for state taxes Same-day payment option. Free efile for state taxes   If you fail to initiate a deposit transaction on EFTPS by 8 p. Free efile for state taxes m. Free efile for state taxes Eastern time the day before the date a deposit is due, you can still make your deposit on time by using the Federal Tax Application (FTA). Free efile for state taxes To use the same-day payment method, you will need to make arrangements with your financial institution ahead of time. Free efile for state taxes Please check with your financial institution regarding availability, deadlines, and costs. Free efile for state taxes Your financial institution may charge you a fee for payments made this way. Free efile for state taxes To learn more about the information you will need to provide your financial institution to make a same-day wire payment, please visit www. Free efile for state taxes eftps. Free efile for state taxes gov to download the Same-Day Payment Worksheet. Free efile for state taxes How to claim credit for overpayments. Free efile for state taxes   If you deposited more than the right amount of taxes for a tax period, you can choose on Form 941-SS, 941, 944, or 943 for that tax period to have the overpayment refunded or applied as a credit to your next return. Free efile for state taxes Do not ask EFTPS to request a refund from the IRS for you. Free efile for state taxes Deposit Penalties Penalties may apply if you do not make required deposits on time or if you make deposits of less than the required amount. Free efile for state taxes The penalties do not apply if any failure to make a proper and timely deposit was due to reasonable cause and not to willful neglect. Free efile for state taxes The IRS may also waive penalties if you inadvertently fail to deposit in the first quarter that a deposit is due, or the first quarter during which your frequency of deposits changed, if you timely filed your employment tax return. Free efile for state taxes For amounts not properly or timely deposited, the penalty rates are as follows. Free efile for state taxes 2% - Deposits made 1 to 5 days late. Free efile for state taxes 5% - Deposits made 6 to 15 days late. Free efile for state taxes 10% - Deposits made 16 or more days late. Free efile for state taxes Also applies to amounts paid within 10 days of the date of the first notice that the IRS sent asking for the tax due. Free efile for state taxes 10% - Amounts (that should have been deposited) paid directly to the IRS or paid with your tax return (but see Payment with Return , earlier in this section, for exceptions). Free efile for state taxes 15% - Amounts still unpaid more than 10 days after the date of the first notice that the IRS sent asking for the tax due or the day on which you received notice and demand for immediate payment, whichever is earlier. Free efile for state taxes Late deposit penalty amounts are determined using calendar days, starting from the due date of the liability. Free efile for state taxes Special rule for former Form 944 filers. Free efile for state taxes    If you filed Form 944 for the prior year and must file Forms 941-SS for the current year because your employment tax liability for the prior year exceeded the Form 944 eligibility requirement ($1,000 or less), the failure-to-deposit penalty will not apply to a late deposit of employment taxes for the first month of the current year if the taxes are deposited in full by March 15 of the current year. Free efile for state taxes Order in which deposits are applied. Free efile for state taxes   Deposits generally are applied to the most recent tax liability within the return period (quarter or year). Free efile for state taxes However, if you receive a failure-to-deposit penalty notice, you may designate how your payment is to be applied in order to minimize the amount of the penalty, if you do so within 90 days of the date of the notice. Free efile for state taxes Follow the instructions on the penalty notice that you received. Free efile for state taxes For more information on designating deposits, see Revenue Procedure 2001-58. Free efile for state taxes You can find Revenue Procedure 2001-58 on page 579 of Internal Revenue Bulletin 2001-50 at www. Free efile for state taxes irs. Free efile for state taxes gov/pub/irs-irbs/irb01-50. Free efile for state taxes pdf. Free efile for state taxes Example. Free efile for state taxes Cedar, Inc. Free efile for state taxes is required to make a deposit of $1,000 on July 15 and $1,500 on August 15. Free efile for state taxes It does not make the deposit on July 15. Free efile for state taxes On August 15, Cedar, Inc. Free efile for state taxes deposits $2,000. Free efile for state taxes Under the deposits rule, which applies deposits to the most recent tax liability, $1,500 of the deposit is applied to the August 15 deposit and the remaining $500 is applied to the July deposit. Free efile for state taxes Accordingly, $500 of the July 15 liability remains undeposited. Free efile for state taxes The penalty on this underdeposit will apply as explained earlier. Free efile for state taxes Trust fund recovery penalty. Free efile for state taxes   If federal income, social security, or Medicare taxes that must be withheld are not withheld or are not deposited or paid to the United States Treasury, the trust fund recovery penalty may apply. Free efile for state taxes The penalty is the full amount of the unpaid trust fund tax. Free efile for state taxes This penalty may apply to you if these unpaid taxes cannot be immediately collected from the employer or business. Free efile for state taxes   The trust fund recovery penalty may be imposed on all persons who are determined by the IRS to be responsible for collecting, accounting for, and paying over these taxes, and who acted willfully in not doing so. Free efile for state taxes   A responsible person can be an officer or employee of a corporation, a partner or employee of a partnership, an accountant, a volunteer director/trustee, or an employee of a sole proprietorship, or any other person or entity that is responsible for collecting, accounting for, and paying over trust fund taxes. Free efile for state taxes A responsible person also may include one who signs checks for the business or otherwise has authority to cause the spending of business funds. Free efile for state taxes    Willfully means voluntarily, consciously, and intentionally. Free efile for state taxes A responsible person acts willfully if the person knows the required actions of collecting, accounting for or paying over trust fund taxes are not taking place, or recklessly disregards obvious and known risks to the government's right to receive trust fund taxes. Free efile for state taxes “Averaged” failure-to-deposit penalty. Free efile for state taxes   The IRS may assess an “averaged” failure-to-deposit (FTD) penalty of 2% to 10% if you are a monthly schedule depositor and did not properly complete Form 941-SS, line 14, when your tax liability shown on Form 941-SS, line 10, was $2,500 or more. Free efile for state taxes IRS may also assess this penalty of 2% to 10% if you are a semiweekly schedule depositor and your tax liability shown on Form 941-SS, line 10, was $2,500 or more and you did any of the following. Free efile for state taxes Completed Form 941-SS, line 14, instead of Schedule B (Form 941). Free efile for state taxes Failed to attach a properly completed Schedule B (Form 941). Free efile for state taxes Completed Schedule B (Form 941) incorrectly, for example, by entering tax deposits instead of tax liabilities in the numbered spaces. Free efile for state taxes   The IRS figures the penalty by allocating your total tax liability shown on Form 941-SS, line 10, equally throughout the tax period. Free efile for state taxes Your deposits and payments may not be counted as timely because IRS does not know the actual dates of your tax liabilities. Free efile for state taxes   You can avoid the penalty by reviewing your return before filing it. Free efile for state taxes Follow these steps before filing your Form 941-SS. Free efile for state taxes If you are a monthly schedule depositor, report your tax liabilities (not your deposits) in the monthly entry spaces on Form 941-SS, line 14. Free efile for state taxes If you are a semiweekly schedule depositor, report your tax liabilities (not your deposits) on Schedule B (Form 941) in the lines that represent the dates you paid your employees. Free efile for state taxes Verify that your total liability shown on Form 941-SS, line 14, or the bottom of Schedule B (Form 941) equals your tax liability shown on Form 941-SS,  line 10. Free efile for state taxes Do not show negative amounts on Form 941-SS, line 14, or Schedule B (Form 941). Free efile for state taxes For prior period errors, do not adjust your tax liabilities reported on your current Form 941-SS, line 14, or on Schedule B (Form 941). Free efile for state taxes Instead, file an adjusted return (Form 941-X (if you are adjusting a previously filed Form 941-SS) or Form 944-X (if you are adjusting a previously filed Form 944-SS or 944)) if you are also adjusting your tax liability. Free efile for state taxes If you are only adjusting your deposits in response to a failure-to-deposit penalty notice, see the Instructions for Schedule B (Form 941) (if you previously filed Form 941-SS) or the Instructions for Form 944-X (if you previously filed Form 944-SS or 944). Free efile for state taxes If you filed Form 944 for 2013 and line 7 was $2,500 or more, you were required to complete Form 944, lines 13a–13m, or attach Form 945-A, Annual Record of Federal Tax Liability. Free efile for state taxes If you failed to complete lines 13a–13m, or failed to attach Form 945-A, whichever was required, IRS may assess an “averaged” failure-to-deposit (FTD) penalty. Free efile for state taxes 9. Free efile for state taxes Employer's Returns General instructions. Free efile for state taxes   File Forms 941-SS (or Form 944) for nonfarm workers and Form 943 for farmworkers. Free efile for state taxes (U. Free efile for state taxes S. Free efile for state taxes Virgin Islands employers may be required to file Form 940 for the combined wages of nonfarm workers and farmworkers. Free efile for state taxes ) Employers with employees subject to U. Free efile for state taxes S. Free efile for state taxes income tax withholding. Free efile for state taxes   If you have both employees who are subject to U. Free efile for state taxes S. Free efile for state taxes income tax withholding and employees who are not subject to U. Free efile for state taxes S. Free efile for state taxes income tax withholding, you must file only Form 941 (or Form 944) and include all your employees’ wages on that form. Free efile for state taxes Nonfarm employers. Free efile for state taxes   File Form 941-SS for the calendar quarter in which you first pay wages for nonfarm workers and for each quarter thereafter unless you are a seasonal employer or file a final return. Free efile for state taxes Due dates for each quarter of the calendar year are as follows. Free efile for state taxes Quarter Due Jan. Free efile for state taxes , Feb. Free efile for state taxes , Mar. Free efile for state taxes Apr. Free efile for state taxes 30 Apr. Free efile for state taxes , May, June July 31 July, Aug. Free efile for state taxes , Sept. Free efile for state taxes Oct. Free efile for state taxes 31 Oct. Free efile for state taxes , Nov. Free efile for state taxes , Dec. Free efile for state taxes Jan. Free efile for state taxes 31   However, if you deposited all taxes when due for the quarter, you have 10 additional days from the due dates to file the return. Free efile for state taxes If the due date for filing your return falls on a Saturday, Sunday, or legal holiday, you may file on the next business day. Free efile for state taxes   If you closed your business or stopped paying wages and do not have to file returns in the future, check the box on line 15 of your final Form 941-SS and show the date final wages were paid. Free efile for state taxes Form 944. Free efile for state taxes   If IRS notified you to file Form 944, file your 2013 Form 944 by January 31, 2014, or by February 10, 2014 (if you deposited all taxes when due). Free efile for state taxes Household employers reporting social security and Medicare taxes. Free efile for state taxes   If you are a sole proprietor and file Forms 941-SS (or Form 944) for business employees, you may include taxes for household employees on your Forms 941-SS (or Form 944). Free efile for state taxes Otherwise, report social security and Medicare taxes for household employees on Schedule H (Form 1040), Household Employment Taxes. Free efile for state taxes See Publication 926, Household Employer's Tax Guide, for more information. Free efile for state taxes Employers of farmworkers. Free efile for state taxes   Every employer of farmworkers must file a Form 943 for each calendar year beginning with the first year the employer pays $2,500 or more for farmwork or employs a farmworker who meets the $150 test described in section 6. Free efile for state taxes   File a Form 943 each year for all taxable wages paid for farmwork. Free efile for state taxes You may report household workers in a private home on a farm operated for profit on Form 943. Free efile for state taxes Do not report wages for farmworkers on Form 941-SS or 944. Free efile for state taxes   Send Form 943 to the IRS by January 31 of the following year. Free efile for state taxes Send it with payment of any taxes due that you are not required to deposit. Free efile for state taxes If you deposited all taxes when due, you have 10 additional days to file. Free efile for state taxes Penalties. Free efile for state taxes   For each whole or part month that a return is not filed when required (disregarding any extensions of the filing deadline), there is a failure-to-file penalty of 5% of the unpaid tax due with that return. Free efile for state taxes The maximum penalty is generally 25% of the tax due. Free efile for state taxes Also, for each whole or part month that the tax is paid late (disregarding any extensions of the payment deadline), there is a failure-to-pay penalty of 0. Free efile for state taxes 5% per month of the amount of tax. Free efile for state taxes For individual filers only, the failure-to-pay penalty is reduced from 0. Free efile for state taxes 5% per month to 0. Free efile for state taxes 25% per month if an installment agreement is in effect. Free efile for state taxes You must have filed your return on or before the due date of the return to qualify for the reduced penalty. Free efile for state taxes The maximum amount of the failure-to-pay penalty is also 25% of the tax due. Free efile for state taxes If both penalties apply in any month, the failure-to-file penalty is reduced by the amount of the failure-to-pay penalty. Free efile for state taxes The penalties will not be charged if you have a reasonable cause for failing to file or pay. Free efile for state taxes If you receive a penalty notice, you can provide an explanation of why you believe reasonable cause exists. Free efile for state taxes Reporting Adjustments to Form 941-SS, 944-SS, 944, or 943 Current Period Adjustments Make current period adjustments for fractions of cents, sick pay, tips, and group-term life insurance on your Form 941-SS, 944, or 943. Free efile for state taxes See the Instructions for Form 941-SS, Instructions for Form 944, or Instructions for Form 943 for information on how to report these adjustments. Free efile for state taxes Prior Period Adjustments Forms for prior period adjustments. Free efile for state taxes   Use Form 941-X or Form 944-X to make a correction after you discover an error on a previously filed Form 941 or Form 944. Free efile for state taxes There are also Forms 943-X, 945-X, and CT-1X to report corrections on the corresponding returns. Free efile for state taxes Form 941-X and Form 944-X also replace Form 843, Claim for Refund and Request for Abatement, for employers to request a refund or abatement of overreported employment taxes. Free efile for state taxes Continue to use Form 843 when requesting a refund or abatement of assessed interest or penalties. Free efile for state taxes See Revenue Ruling 2009-39, 2009-52 I. Free efile for state taxes R. Free efile for state taxes B. Free efile for state taxes 951, for examples of how the interest-free adjustment and claim for refund rules apply in 10 different situations. Free efile for state taxes You can find Revenue Ruling 2009-39, at www. Free efile for state taxes irs. Free efile for state taxes gov/irb/2009-52_IRB/ar14. Free efile for state taxes html. Free efile for state taxes Background. Free efile for state taxes   Treasury Decision 9405 changed the process for making interest-free adjustments to employment taxes reported on Forms 941-SS, 943, 944-SS, and 944, and for filing a claim for refund of employment taxes. Free efile for state taxes Treasury Decision 9405, 2008-32 I. Free efile for state taxes R. Free efile for state taxes B. Free efile for state taxes 293, is available at www. Free efile for state taxes irs. Free efile for state taxes gov/irb/2008-32_IRB/ar13. Free efile for state taxes html. Free efile for state taxes You will use the adjustment process if you underreported employment taxes and are making a payment, or if you overreported employment taxes and will be applying the credit to the Form 941-SS, 943, or 944 period during which you file Forms 941-X, 943-X, or 944-X, respectively. Free efile for state taxes You will use the claim process if you overreported employment taxes and are requesting a refund or abatement of the overreported amount. Free efile for state taxes We use the terms “correct” and “corrections” to include interest-free adjustments under sections 6205 and 6413, and claims for refund and abatement under sections 6402, 6414, and 6404 of the Internal Revenue Code. Free efile for state taxes Correcting employment taxes. Free efile for state taxes   When you discover an error on a previously filed Form 941-SS, 943, 944-SS, or 944, you must: Correct that error using Form 941-X, Form 943-X, or Form 944-X, File a separate Form 941-X, Form 943-X, or Form 944-X for