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Free tax help for seniors Publication 80 - Main Content Table of Contents Introduction 1. Free tax help for seniors Employer Identification Number (EIN) 2. Free tax help for seniors Who Are Employees?Tests. Free tax help for seniors Business Owned and Operated by Spouses Farm Crew Leaders 3. Free tax help for seniors Employee's Social Security Number (SSN)Registering for SSNVS. Free tax help for seniors 4. Free tax help for seniors Wages and Other CompensationFringe Benefits 5. Free tax help for seniors TipsOrdering rule. Free tax help for seniors 6. Free tax help for seniors Social Security and Medicare Taxes for FarmworkersThe $150 Test or the $2,500 Test 7. Free tax help for seniors How To Figure Social Security and Medicare TaxesHousehold and agricultural employers. Free tax help for seniors 8. Free tax help for seniors Depositing TaxesPayment with Return When To Deposit How To Deposit Deposit Penalties 9. Free tax help for seniors Employer's ReturnsReporting Adjustments to Form 941-SS, 944-SS, 944, or 943 Current Period Adjustments Prior Period Adjustments 10. Free tax help for seniors Wage and Tax StatementsWaiver. Free tax help for seniors 11. Free tax help for seniors Federal Unemployment (FUTA) Tax—U. Free tax help for seniors S. Free tax help for seniors 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 tax help for seniors S. Free tax help for seniors 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 tax help for seniors Employers and employees in these areas are generally subject to social security and Medicare taxes under the Federal Insurance Contributions Act (FICA). Free tax help for seniors See section 6 and section 7 for more information. Free tax help for seniors This publication summarizes employer responsibilities to collect, pay, and report these taxes. Free tax help for seniors Whenever the term “United States” is used in this publication, it includes U. Free tax help for seniors S. Free tax help for seniors Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands. Free tax help for seniors This publication also provides employers in the U. Free tax help for seniors S. Free tax help for seniors Virgin Islands with a summary of their responsibilities in connection with the tax under the Federal Unemployment Tax Act, known as FUTA tax. Free tax help for seniors See section 11 for more information. Free tax help for seniors 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 tax help for seniors This publication does not include information relating to the self-employment tax (for social security and Medicare of self-employed persons). Free tax help for seniors See Publication 570, Tax Guide for Individuals With Income From U. Free tax help for seniors S. Free tax help for seniors Possessions, if you need this information. Free tax help for seniors This publication also does not include information relating to income tax withholding. Free tax help for seniors In U. Free tax help for seniors S. Free tax help for seniors 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 tax help for seniors See Publication 15 (Circular E), for information on U. Free tax help for seniors S. Free tax help for seniors federal income tax withholding. Free tax help for seniors Comments and suggestions. Free tax help for seniors   We welcome your comments about this publication and your suggestions for future editions. Free tax help for seniors   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. Free tax help for seniors NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Free tax help for seniors Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Free tax help for seniors    You can also send us comments from www. Free tax help for seniors irs. Free tax help for seniors gov/formspubs. Free tax help for seniors Click on More Information and then click on Comment on Tax Forms and Publications. Free tax help for seniors   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 tax help for seniors 1. Free tax help for seniors Employer Identification Number (EIN) An employer identification number (EIN) is a nine-digit number that the IRS issues. Free tax help for seniors Its format is 00-0000000. Free tax help for seniors It is used to identify the tax accounts of employers and certain other organizations and entities that have no employees. Free tax help for seniors Use your EIN on all of the items that you send to the IRS and SSA for your business. Free tax help for seniors If you do not have an EIN, you may apply for one online. Free tax help for seniors Go to IRS. Free tax help for seniors gov and click on the Apply for an EIN Online link under Tools. Free tax help for seniors You may also apply for an EIN by calling 1-800-829-4933, (U. Free tax help for seniors S. Free tax help for seniors 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 tax help for seniors Do not use a social security number (SSN) in place of an EIN. Free tax help for seniors 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 tax help for seniors If you took over another employer's business, do not use that employer's EIN. Free tax help for seniors You should have only one EIN. Free tax help for seniors 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 tax help for seniors Or call the IRS Business & Specialty Tax Line at 1-800-829-4933 (U. Free tax help for seniors S. Free tax help for seniors Virgin Islands only) or 267-941-1000 (toll call). Free tax help for seniors Persons who are deaf, hard of hearing, or have a speech disability (TDD/TTY users) in the U. Free tax help for seniors S. Free tax help for seniors Virgin Islands may call 1-800-829-4059. Free tax help for seniors The IRS will tell you which EIN to use. Free tax help for seniors For more information, see Publication 1635, Employer Identification Number: Understanding Your EIN, or Publication 583, Starting a Business and Keeping Records. Free tax help for seniors 2. Free tax help for seniors Who Are Employees? Generally, employees are defined either under common law or under special statutes for certain situations. Free tax help for seniors See Publication 15-A, Employer's Supplemental Tax Guide, for details on statutory employees and nonemployees. Free tax help for seniors Employee status under common law. Free tax help for seniors   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 tax help for seniors This is so even when you give the employee freedom of action. Free tax help for seniors What matters is that you have the right to control the details of how the services are performed. Free tax help for seniors See Publication 15-A for more information on how to determine whether an individual providing services is an independent contractor or an employee. Free tax help for seniors    Generally, people in business for themselves are not employees. Free tax help for seniors 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 tax help for seniors However, if the business is incorporated, corporate officers who work in the business are employees of the corporation. Free tax help for seniors   If an employer-employee relationship exists, it does not matter what it is called. Free tax help for seniors The employee may be called an agent or independent contractor. Free tax help for seniors 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 tax help for seniors Statutory employees. Free tax help for seniors   There are also some special definitions of employees for social security, Medicare, and FUTA taxes. Free tax help for seniors   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 tax help for seniors a. Free tax help for seniors   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 tax help for seniors b. Free tax help for seniors   A full-time life insurance salesperson who sells primarily for one company. Free tax help for seniors c. Free tax help for seniors   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 tax help for seniors d. Free tax help for seniors   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 tax help for seniors The orders must be for merchandise for resale or supplies for use in the customer's business. Free tax help for seniors The customers must be retailers, wholesalers, contractors, or operators of hotels, restaurants, or other businesses dealing with food or lodging. Free tax help for seniors Tests. Free tax help for seniors   Withhold social security and Medicare taxes from statutory employees' wages if all three of the following tests apply. Free tax help for seniors The service contract states or implies that almost all of the services are to be performed personally by them. Free tax help for seniors They have little or no investment in the equipment and property used to perform the services (other than an investment in transportation facilities). Free tax help for seniors The services are performed on a continuing basis for the same payer. Free tax help for seniors Persons in a or d, earlier, are also employees for FUTA tax purposes if tests 1 through 3 are met (U. Free tax help for seniors S. Free tax help for seniors Virgin Islands only). Free tax help for seniors   Publication 15-A gives examples of the employer-employee relationship. Free tax help for seniors Statutory nonemployees. Free tax help for seniors   Certain direct sellers, qualified real estate agents, and certain companion sitters are, by law, considered nonemployees. Free tax help for seniors They are generally treated as self-employed for employment tax purposes. Free tax help for seniors See Publication 15-A for details. Free tax help for seniors H-2A agricultural workers. Free tax help for seniors   On Form W-2, do not check box 13 (Statutory employee) as H-2A workers are not statutory employees. Free tax help for seniors Treating employees as nonemployees. Free tax help for seniors   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 tax help for seniors 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 tax help for seniors IRS help. Free tax help for seniors   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 tax help for seniors Voluntary Classification Settlement Program (VCSP). Free tax help for seniors   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 tax help for seniors To apply, use Form 8952, Application for Voluntary Classification Settlement Program (VCSP). Free tax help for seniors For more information, visit IRS. Free tax help for seniors gov and enter “VCSP” in the search box. Free tax help for seniors 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 tax help for seniors See Publication 541, Partnerships, for more details. Free tax help for seniors The partnership is considered the employer of any employees, and is liable for any employment taxes due on wages paid to its employees. Free tax help for seniors Exception—Qualified Joint Venture. Free tax help for seniors   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 tax help for seniors S. Free tax help for seniors Individual Income Tax Return, or joint Form 1040-SS, U. Free tax help for seniors S. Free tax help for seniors Self-Employment Tax Return—U. Free tax help for seniors S. Free tax help for seniors 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 tax help for seniors See the Instructions for Schedule C (Form 1040) or the Instructions for Form 1040-SS. Free tax help for seniors Spouses electing qualified joint venture status are treated as sole proprietors for federal tax purposes. Free tax help for seniors 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 tax help for seniors For more information on qualified joint ventures, visit IRS. Free tax help for seniors gov and enter “qualified joint venture” in the search box. Free tax help for seniors Farm Crew Leaders You are an employer of farmworkers if you are a crew leader. Free tax help for seniors 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 tax help for seniors 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 tax help for seniors 3. Free tax help for seniors Employee's Social Security Number (SSN) An employee's social security number (SSN) consists of nine digits separated as follows: 000-00-0000. Free tax help for seniors You must get each employee's name and SSN and enter them on Form W-2AS, W-2CM, W-2GU, or W-2VI. Free tax help for seniors If you do not report the employee's correct name and SSN, you may owe a penalty unless you have reasonable cause. Free tax help for seniors 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 tax help for seniors Employee's social security card. Free tax help for seniors   You should ask the employee to show you his or her social security card. Free tax help for seniors The employee may show the card if it is available. Free tax help for seniors Do not accept a social security card that says “Not valid for employment. Free tax help for seniors ” A social security number issued with this legend does not permit employment. Free tax help for seniors You may, but you are not required to, photocopy the social security card if the employee provides it. Free tax help for seniors 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 tax help for seniors The employee must complete and sign Form SS-5; it cannot be filed by the employer. Free tax help for seniors 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 tax help for seniors 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 tax help for seniors Enter all zeroes in the SSN field if filing electronically. Free tax help for seniors When the employee receives the SSN, file Copy A of Form W-2c with SSA to show the employee's SSN. Free tax help for seniors Correctly record the employee's name and SSN. Free tax help for seniors   Record the name and number of each employee as they appear on his or her social security card. Free tax help for seniors 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 tax help for seniors Continue to use the old name until the employee shows you the replacement social security card with the corrected name. Free tax help for seniors   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 tax help for seniors 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 tax help for seniors Where to get and file social security number application forms. Free tax help for seniors    U. Free tax help for seniors S. Free tax help for seniors Virgin Islands—U. Free tax help for seniors S. Free tax help for seniors Social Security Administration, 8000 Nisky Center, First Floor, Suite 2, St. Free tax help for seniors Thomas, VI 00802. Free tax help for seniors  Guam—U. Free tax help for seniors S. Free tax help for seniors Social Security Administration, 655 Harmon Loop Road, Suite 300, Dededo, GU 96929. Free tax help for seniors  American Samoa—U. Free tax help for seniors S. Free tax help for seniors Social Security Administration, Pago Plaza, Suite 117, Pago Pago, AS 96799. Free tax help for seniors  Commonwealth of the Northern Mariana Islands—U. Free tax help for seniors S. Free tax help for seniors Social Security Administration, MH Building, Suite 201, Saipan, MP 96950. Free tax help for seniors Verification of social security numbers. Free tax help for seniors   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 tax help for seniors Visit www. Free tax help for seniors socialsecurity. Free tax help for seniors gov/employer/ssnv. Free tax help for seniors htm for more information. Free tax help for seniors Registering for SSNVS. Free tax help for seniors   You must register online and receive authorization from your employer to use SSNVS. Free tax help for seniors To register, visit SSA's website at www. Free tax help for seniors ssa. Free tax help for seniors gov/employer and click on the Business Services Online link. Free tax help for seniors Follow the registration instructions to obtain a user identification (ID) and password. Free tax help for seniors You will need to provide the following information about yourself and your company. Free tax help for seniors Name. Free tax help for seniors SSN. Free tax help for seniors Date of birth. Free tax help for seniors Type of employer. Free tax help for seniors EIN. Free tax help for seniors Company name, address, and telephone number. Free tax help for seniors Email address. Free tax help for seniors   When you have completed the online registration process, SSA will mail a one-time activation code to your employer. Free tax help for seniors You must enter the activation code online to use SSNVS. Free tax help for seniors 4. Free tax help for seniors Wages and Other Compensation Generally, all wages are subject to social security and Medicare tax (and FUTA tax for U. Free tax help for seniors S. Free tax help for seniors Virgin Islands employers). Free tax help for seniors 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 tax help for seniors The wage base for social security tax is $117,000 for 2014. Free tax help for seniors 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 tax help for seniors The wage base for FUTA tax is $7,000 for 2014. Free tax help for seniors All wages are subject to Medicare tax. Free tax help for seniors The wages may be in cash or in other forms, such as an automobile for personal use. Free tax help for seniors Wages include salaries, vacation allowances, bonuses, commissions, and fringe benefits. Free tax help for seniors It does not matter how payments are measured or paid. Free tax help for seniors See the table in section 12 for exceptions to social security, Medicare, and FUTA taxes on wages. Free tax help for seniors See section 5 and section 6 for a discussion of how the rules apply to tips and farmworkers. Free tax help for seniors Social security and Medicare taxes apply to most payments of sick pay, including payments by third parties such as insurance companies. Free tax help for seniors Special rules apply to the reporting of third-party sick pay. Free tax help for seniors For details, see Publication 15-A. Free tax help for seniors Determine the value of noncash pay (such as goods, lodging, and meals) by its fair market value. Free tax help for seniors However, see Fringe Benefits , later in this section. Free tax help for seniors Except for farmworkers and household employees, this kind of pay may be subject to social security, Medicare, and FUTA taxes. Free tax help for seniors Back pay, including retroactive wage increases (but not amounts paid as liquidated damages), is taxed as ordinary wages in the year paid. Free tax help for seniors 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 tax help for seniors Travel and business expenses. Free tax help for seniors   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 tax help for seniors Sick pay. Free tax help for seniors   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 tax help for seniors These amounts are sometimes paid by a third party, such as an insurance company. Free tax help for seniors In either case, these payments are subject to social security and Medicare taxes (and FUTA tax for U. Free tax help for seniors S. Free tax help for seniors Virgin Islands employers). Free tax help for seniors 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 tax help for seniors Publication 15-A explains the employment tax rules that apply to sick pay, disability benefits, and similar payments to employees. Free tax help for seniors Fringe Benefits Generally, fringe benefits are includible in the gross income of an employee and are subject to employment taxes. Free tax help for seniors 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 tax help for seniors 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 tax help for seniors For more information, see Publication 15-B, Employer's Tax Guide to Fringe Benefits. Free tax help for seniors When fringe benefits are treated as paid. Free tax help for seniors   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 tax help for seniors You do not have to make a formal choice of payment dates or notify the IRS. Free tax help for seniors You do not have to use the same basis for all employees. Free tax help for seniors 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 tax help for seniors However, see Special accounting rule for fringe benefits provided during November and December , later in this section. Free tax help for seniors   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 tax help for seniors 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 tax help for seniors This election does not apply to a fringe benefit where real property or investment personal property is transferred. Free tax help for seniors Withholding social security and Medicare taxes on fringe benefits. Free tax help for seniors   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 tax help for seniors   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 tax help for seniors Depositing taxes on fringe benefits. Free tax help for seniors   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 tax help for seniors You may make a reasonable estimate of the value of the fringe benefits. Free tax help for seniors 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 tax help for seniors   You may claim a refund of overpayments or elect to have any overpayment applied to the next employment tax return. Free tax help for seniors If deposits are underpaid, see Deposit Penalties in section 8. Free tax help for seniors Valuation of vehicles provided to employees. Free tax help for seniors    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 tax help for seniors For reporting information to employees, see the box 14 instructions in the General Instructions for Forms W-2 and W-3. Free tax help for seniors Special accounting rule for fringe benefits provided during November and December. Free tax help for seniors   You may choose to treat the value of taxable noncash fringe benefits provided during November and December as paid in the next year. Free tax help for seniors 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 tax help for seniors   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 tax help for seniors If you use the special accounting rule, your employee must also use it for the same period that you use it. Free tax help for seniors 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 tax help for seniors 5. Free tax help for seniors Tips Tips that your employee receives from customers are generally subject to social security and Medicare withholding. Free tax help for seniors Your employee must report cash tips to you by the 10th of the month after the month that the tips are received. Free tax help for seniors 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 tax help for seniors Both directly and indirectly tipped employees must report tips to you. Free tax help for seniors The report should not include tips that the employee paid out to other employees. Free tax help for seniors No report is required for months when tips are less than $20. Free tax help for seniors Your employees report tips on Form 4070, Employee's Report of Tips to Employer, or on a similar statement. Free tax help for seniors They may also use Form 4070A, Employee's Daily Record of Tips, to keep a record of their tips. Free tax help for seniors Both forms are included in Publication 1244, Employee's Daily Record of Tips and Report to Employer, available at IRS. Free tax help for seniors gov. Free tax help for seniors 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 tax help for seniors You are permitted to establish a system for electronic tip reporting by employees. Free tax help for seniors See Regulations section 31. Free tax help for seniors 6053-1(d). Free tax help for seniors Collecting taxes on tips. Free tax help for seniors   You must collect the employee social security and Medicare taxes on the employee's tips. Free tax help for seniors You can also collect these taxes from the employee's wages or from other funds that he or she makes available. Free tax help for seniors Stop collecting the employee social security tax when his or her total wages and tips for 2014 reach $117,000. Free tax help for seniors Collect the employee Medicare tax for the whole year on all wages and tips. Free tax help for seniors   You are responsible for the employer social security tax on wages and tips until the wages (including tips) reach the wage base limit. Free tax help for seniors You are responsible for the employer Medicare tax for the whole year on all wages and tips. Free tax help for seniors File Form 941-SS (or Form 944) to report withholding and employer taxes on tips. Free tax help for seniors 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 tax help for seniors Ordering rule. Free tax help for seniors   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 tax help for seniors Reporting tips. Free tax help for seniors   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 tax help for seniors Do not include any uncollected Additional Medicare Tax in box 12 of Form W-2. Free tax help for seniors Report an adjustment on Form 941-SS, line 9 (Form 944, line 6), for the uncollected social security and Medicare taxes. Free tax help for seniors The table in section 12 shows how tips are treated for FUTA tax purposes. Free tax help for seniors   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 tax help for seniors See Revenue Ruling 2012-18, 2012-26 I. Free tax help for seniors R. Free tax help for seniors B. Free tax help for seniors 1032, available at www. Free tax help for seniors irs. Free tax help for seniors gov/irb/2012-26_IRB/ar07. Free tax help for seniors html. Free tax help for seniors 6. Free tax help for seniors Social Security and Medicare Taxes for Farmworkers The tests described below apply only to services that are defined as agricultural labor (farmwork). Free tax help for seniors 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 tax help for seniors 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 tax help for seniors 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 tax help for seniors A “share farmer” working for you is not your employee. Free tax help for seniors However, the share farmer may be subject to self-employment tax. Free tax help for seniors 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 tax help for seniors For details, see Regulations section 31. Free tax help for seniors 3121(b)(16)-1. Free tax help for seniors 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 tax help for seniors 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 tax help for seniors The $150 test applies separately to each farmworker that you employ. Free tax help for seniors If you employ a family of workers, each member is treated separately. Free tax help for seniors Do not count wages paid by other employers. Free tax help for seniors The total that you pay for farmwork (cash and noncash) to all of your employees is $2,500 or more during the year. Free tax help for seniors Exceptions. Free tax help for seniors   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 tax help for seniors   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 tax help for seniors 7. Free tax help for seniors How To Figure Social Security and Medicare Taxes The tax rate for social security is 6. Free tax help for seniors 2% (amount withheld) each for the employer and employee (12. Free tax help for seniors 4% total). Free tax help for seniors The social security wage base limit is $117,000. Free tax help for seniors The tax rate for Medicare is 1. Free tax help for seniors 45% (amount withheld) each for the employee and employer (2. Free tax help for seniors 9% total). Free tax help for seniors There is no wage base limit for Medicare tax; all covered wages are subject to Medicare tax. Free tax help for seniors Multiply each wage payment by these percentages to figure the tax to withhold from employees. Free tax help for seniors Employers report both the employee and employer shares on Forms 941-SS, 944, or Form 943 (farm employment). Free tax help for seniors See section 5 for information on tips. Free tax help for seniors Additional Medicare Tax withholding. Free tax help for seniors   In addition to withholding Medicare tax at 1. Free tax help for seniors 45%, you must withhold a 0. Free tax help for seniors 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. Free tax help for seniors 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 tax help for seniors Additional Medicare Tax is only imposed on the employee. Free tax help for seniors There is no employer share of Additional Medicare Tax. Free tax help for seniors 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 tax help for seniors   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 tax help for seniors For more information on Additional Medicare Tax, visit IRS. Free tax help for seniors gov and enter “Additional Medicare Tax” in the search box. Free tax help for seniors Deducting the tax. Free tax help for seniors   Deduct the employee tax from each wage payment. Free tax help for seniors 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 tax help for seniors Employee's portion of taxes paid by employer. Free tax help for seniors   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 tax help for seniors 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 tax help for seniors This again increases the amount of the additional taxes that you must pay. Free tax help for seniors Household and agricultural employers. Free tax help for seniors   This discussion does not apply to household and agricultural employers. Free tax help for seniors 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 tax help for seniors However, this wage increase due to the tax payments is not subject to social security or Medicare taxes as discussed in this section. Free tax help for seniors See Publication 15-A for details. Free tax help for seniors Sick pay payments. Free tax help for seniors   Social security and Medicare taxes apply to most payments of sick pay, including payments made by third parties such as insurance companies. Free tax help for seniors For details on third-party payers of sick pay, see Publication 15-A. Free tax help for seniors 8. Free tax help for seniors 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 tax help for seniors You must make the deposit by electronic funds transfer. Free tax help for seniors For more information about electronic funds transfers, see How To Deposit , later in this section. Free tax help for seniors Payment with Return $2,500 rule. Free tax help for seniors   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 tax help for seniors   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 tax help for seniors 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 tax help for seniors 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 tax help for seniors Only monthly schedule depositors are allowed to make an Accuracy of Deposits Rule payment with the return. Free tax help for seniors Semiweekly schedule depositors must timely deposit the amount. Free tax help for seniors See Accuracy of Deposits Rule and How To Deposit, later in this section. Free tax help for seniors 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 tax help for seniors Therefore, farm and nonfarm workers are discussed together except where noted. Free tax help for seniors 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 tax help for seniors 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 tax help for seniors The terms identify which set of rules that you must follow when a tax liability arises (for example, when you have a payday). Free tax help for seniors 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 tax help for seniors 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 tax help for seniors Determine your deposit schedule for Form 943 separately from Forms 941-SS and 941. Free tax help for seniors Lookback period for employers of nonfarm workers. Free tax help for seniors   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 tax help for seniors These four quarters are your lookback period even if you did not report any taxes for any of the quarters. Free tax help for seniors For 2014, the lookback period is July 1, 2012, through June 30, 2013. Free tax help for seniors    Table 1. Free tax help for seniors Lookback Period for Calendar Year 2014 Lookback Period July 1, 2012 Oct. Free tax help for seniors 1, 2012 Jan. Free tax help for seniors 1, 2013 Apr. Free tax help for seniors 1, 2013 through through through through Sep. Free tax help for seniors 30, 2012 Dec. Free tax help for seniors 31, 2012 Mar. Free tax help for seniors 31, 2013 June 30, 2013    The lookback period for Form 944 is the second calendar year preceding the current calendar year. Free tax help for seniors For example, the lookback period for calendar year 2014 is calendar year 2012. Free tax help for seniors 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 tax help for seniors Lookback period for employers of farmworkers. Free tax help for seniors   The lookback period for Form 943 is the second calendar year preceding the current calendar year. Free tax help for seniors The lookback period for calendar year 2014 is calendar year 2012. Free tax help for seniors Adjustments to lookback period taxes. Free tax help for seniors   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 tax help for seniors Do not include any adjustments shown on Form 941-X, 943-X, or 944-X. Free tax help for seniors Example. Free tax help for seniors   An employer originally reported total taxes of $45,000 for the lookback period. Free tax help for seniors 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 tax help for seniors 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 tax help for seniors Deposit Period The term “deposit period” refers to the period during which tax liabilities are accumulated for each required deposit due date. Free tax help for seniors For monthly schedule depositors, the deposit period is a calendar month. Free tax help for seniors The deposit periods for semiweekly schedule depositors are Wednesday through Friday and Saturday through Tuesday. Free tax help for seniors 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 tax help for seniors You must deposit taxes on wage payments made during a calendar month by the 15th day of the following month. Free tax help for seniors New employers. Free tax help for seniors   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 tax help for seniors 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 tax help for seniors 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 tax help for seniors 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 tax help for seniors Deposit taxes on wage payments made on Wednesday, Thursday, and/or Friday by the following Wednesday. Free tax help for seniors Deposit taxes on wage payments made on Saturday, Sunday, Monday, and/or Tuesday by the following Friday. Free tax help for seniors 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 tax help for seniors 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 tax help for seniors If you made no additional payments on Saturday through Tuesday, no deposit is due on Friday. Free tax help for seniors Semiweekly deposit period spanning two quarters. Free tax help for seniors   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 tax help for seniors Example. Free tax help for seniors   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 tax help for seniors Both deposits will be due on Friday, April 4, 2014 (3 business days from the end of the semiweekly deposit period). Free tax help for seniors Examples of Monthly and Semiweekly Schedules Employers of nonfarm workers. Free tax help for seniors   Rose Co. Free tax help for seniors 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 tax help for seniors 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 tax help for seniors However, for 2014, Rose Co. Free tax help for seniors 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 tax help for seniors Employers of farmworkers. Free tax help for seniors   Red Co. Free tax help for seniors reported taxes on its 2012 Form 943, line 9, of $48,000. Free tax help for seniors On its 2013 Form 943, line 11, it reported taxes of $60,000. Free tax help for seniors   Red Co. Free tax help for seniors 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 tax help for seniors However, for 2015, Red Co. Free tax help for seniors is a semiweekly schedule depositor because the total taxes for its lookback period ($60,000 for calendar year 2013) exceeded $50,000. Free tax help for seniors New agricultural employers. Free tax help for seniors   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 tax help for seniors However, see the $100,000 Next-Day Deposit Rule , later in this section. Free tax help for seniors 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 tax help for seniors A business day is any day other than a Saturday, Sunday, or legal holiday. Free tax help for seniors 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 tax help for seniors Semiweekly schedule depositors have at least 3 business days to make a deposit. Free tax help for seniors 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 tax help for seniors 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 tax help for seniors Legal holiday. Free tax help for seniors   The term “legal holiday” means any legal holiday in the District of Columbia. Free tax help for seniors Legal holidays for 2014 are listed below. Free tax help for seniors January 1—New Year's Day January 20—Birthday of Martin Luther King, Jr. Free tax help for seniors 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 tax help for seniors Monthly schedule example. Free tax help for seniors   Spruce Co. Free tax help for seniors is a monthly schedule depositor with seasonal employees. Free tax help for seniors It paid wages each Friday during August but did not pay any wages during September. Free tax help for seniors Under the monthly deposit schedule, Spruce Co. Free tax help for seniors must deposit the combined tax liabilities for the four August paydays by September 15. Free tax help for seniors Spruce Co. Free tax help for seniors 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 tax help for seniors Semiweekly schedule example. Free tax help for seniors   Green, Inc. Free tax help for seniors is a semiweekly schedule depositor and pays wages once each month on the last Friday of the month. Free tax help for seniors Although Green, Inc. Free tax help for seniors , has a semiweekly deposit schedule, it will deposit just once a month because it pays wages only once a month. Free tax help for seniors The deposit, however, will be made under the semiweekly deposit schedule as follows: Green, Inc. Free tax help for seniors ’s tax liability for the April 25, 2014 (Friday), payday must be deposited by April 30, 2014 (Wednesday). Free tax help for seniors Under the semiweekly deposit schedule, liabilities for wages paid on Wednesday through Friday must be deposited by the following Wednesday. Free tax help for seniors $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 tax help for seniors For purposes of the $100,000 rule, do not continue accumulating taxes after the end of a deposit period. Free tax help for seniors 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 tax help for seniors Thus, $95,000 must be deposited by Friday and $10,000 must be deposited by the following Wednesday. Free tax help for seniors 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 tax help for seniors For example, Fir Co. Free tax help for seniors is a semiweekly schedule depositor. Free tax help for seniors On Monday, Fir Co. Free tax help for seniors accumulates taxes of $110,000 and must deposit on Tuesday, the next business day. Free tax help for seniors On Tuesday, Fir Co. Free tax help for seniors accumulates additional taxes of $30,000. Free tax help for seniors Because the $30,000 is not added to the previous $110,000 and is less than $100,000, Fir Co. Free tax help for seniors does not have to deposit the $30,000 until Friday (following the semiweekly deposit schedule). Free tax help for seniors 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 tax help for seniors Example. Free tax help for seniors   Elm, Inc. Free tax help for seniors started its business on May 1, 2014. Free tax help for seniors On May 8, it paid wages for the first time and accumulated a tax liability of $40,000. Free tax help for seniors On Friday, May 9, Elm, Inc. Free tax help for seniors paid wages and accumulated a liability of $60,000, making its accumulated Form 941-SS tax liability total $100,000. Free tax help for seniors Elm, Inc. Free tax help for seniors must deposit $100,000 by Monday, May 12, the next business day. Free tax help for seniors 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 tax help for seniors However, because Elm, Inc. Free tax help for seniors accumulated $100,000 on May 9, it became a semiweekly schedule depositor on May 10. Free tax help for seniors It will be a semiweekly schedule depositor for the remainder of 2014 and for 2015. Free tax help for seniors Accuracy of Deposits Rule You are required to deposit 100% of your tax liability on or before the deposit due date. Free tax help for seniors However, penalties will not be applied for depositing less than 100% if both of the following conditions are met. Free tax help for seniors 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 tax help for seniors Makeup date for deposit shortfall: Monthly schedule depositor. Free tax help for seniors 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 tax help for seniors You may pay the shortfall with your return even if the amount is $2,500 or more. Free tax help for seniors Semiweekly schedule depositor. Free tax help for seniors 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 tax help for seniors 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 tax help for seniors 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 tax help for seniors In this case, the shortfall must be deposited by April 30, 2014. Free tax help for seniors 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 tax help for seniors Form 943 taxes and Form 941-SS (or Form 944) taxes are not combined for purposes of applying any of the deposit rules. Free tax help for seniors If a deposit is due, deposit the Form 941-SS (or Form 944) taxes and Form 943 taxes separately, as discussed next. Free tax help for seniors How To Deposit You must deposit employment taxes by electronic funds transfer. Free tax help for seniors 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 tax help for seniors Electronic deposit requirement. Free tax help for seniors   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 tax help for seniors Generally, electronic fund transfers are made using the Electronic Federal Tax Payment System (EFTPS). Free tax help for seniors 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 tax help for seniors   EFTPS is a free service provided by the Department of the Treasury. Free tax help for seniors To get more information or to enroll in EFTPS, call 1-800-555-4477 (U. Free tax help for seniors S. Free tax help for seniors Virgin Islands only) or 303-967-5916 (toll call). Free tax help for seniors You can also visit the EFTPS website at www. Free tax help for seniors eftps. Free tax help for seniors gov. Free tax help for seniors Additional information about EFTPS is also available in Publication 966. Free tax help for seniors When you receive your EIN. Free tax help for seniors   If you are a new employer that indicated a federal tax obligation when requesting an EIN, you will be pre-enrolled in EFTPS. Free tax help for seniors 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 tax help for seniors Follow the steps in your “How to Activate Your Enrollment” brochure to activate your enrollment and begin making your payroll tax deposits. Free tax help for seniors 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 tax help for seniors Deposit record. Free tax help for seniors   For your records, an Electronic Funds Transfer (EFT) Trace Number will be provided with each successful payment. Free tax help for seniors The number can be used as a receipt or to trace the payment. Free tax help for seniors Depositing on time. Free tax help for seniors   For deposits made by EFTPS to be on time, you must initiate the deposit by 8 p. Free tax help for seniors m. Free tax help for seniors Eastern time the day before the date the deposit is due. Free tax help for seniors If you use a third party to make deposits on your behalf, they may have different cutoff times. Free tax help for seniors Same-day payment option. Free tax help for seniors   If you fail to initiate a deposit transaction on EFTPS by 8 p. Free tax help for seniors m. Free tax help for seniors 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 tax help for seniors To use the same-day payment method, you will need to make arrangements with your financial institution ahead of time. Free tax help for seniors Please check with your financial institution regarding availability, deadlines, and costs. Free tax help for seniors Your financial institution may charge you a fee for payments made this way. Free tax help for seniors 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 tax help for seniors eftps. Free tax help for seniors gov to download the Same-Day Payment Worksheet. Free tax help for seniors How to claim credit for overpayments. Free tax help for seniors   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 tax help for seniors Do not ask EFTPS to request a refund from the IRS for you. Free tax help for seniors 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 tax help for seniors 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 tax help for seniors 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 tax help for seniors For amounts not properly or timely deposited, the penalty rates are as follows. Free tax help for seniors 2% - Deposits made 1 to 5 days late. Free tax help for seniors 5% - Deposits made 6 to 15 days late. Free tax help for seniors 10% - Deposits made 16 or more days late. Free tax help for seniors 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 tax help for seniors 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 tax help for seniors 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 tax help for seniors Late deposit penalty amounts are determined using calendar days, starting from the due date of the liability. Free tax help for seniors Special rule for former Form 944 filers. Free tax help for seniors    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 tax help for seniors Order in which deposits are applied. Free tax help for seniors   Deposits generally are applied to the most recent tax liability within the return period (quarter or year). Free tax help for seniors 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 tax help for seniors Follow the instructions on the penalty notice that you received. Free tax help for seniors For more information on designating deposits, see Revenue Procedure 2001-58. Free tax help for seniors You can find Revenue Procedure 2001-58 on page 579 of Internal Revenue Bulletin 2001-50 at www. Free tax help for seniors irs. Free tax help for seniors gov/pub/irs-irbs/irb01-50. Free tax help for seniors pdf. Free tax help for seniors Example. Free tax help for seniors Cedar, Inc. Free tax help for seniors is required to make a deposit of $1,000 on July 15 and $1,500 on August 15. Free tax help for seniors It does not make the deposit on July 15. Free tax help for seniors On August 15, Cedar, Inc. Free tax help for seniors deposits $2,000. Free tax help for seniors 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 tax help for seniors Accordingly, $500 of the July 15 liability remains undeposited. Free tax help for seniors The penalty on this underdeposit will apply as explained earlier. Free tax help for seniors Trust fund recovery penalty. Free tax help for seniors   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 tax help for seniors The penalty is the full amount of the unpaid trust fund tax. Free tax help for seniors This penalty may apply to you if these unpaid taxes cannot be immediately collected from the employer or business. Free tax help for seniors   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 tax help for seniors   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 tax help for seniors 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 tax help for seniors    Willfully means voluntarily, consciously, and intentionally. Free tax help for seniors 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 tax help for seniors “Averaged” failure-to-deposit penalty. Free tax help for seniors   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 tax help for seniors 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 tax help for seniors Completed Form 941-SS, line 14, instead of Schedule B (Form 941). Free tax help for seniors Failed to attach a properly completed Schedule B (Form 941). Free tax help for seniors Completed Schedule B (Form 941) incorrectly, for example, by entering tax deposits instead of tax liabilities in the numbered spaces. Free tax help for seniors   The IRS figures the penalty by allocating your total tax liability shown on Form 941-SS, line 10, equally throughout the tax period. Free tax help for seniors Your deposits and payments may not be counted as timely because IRS does not know the actual dates of your tax liabilities. Free tax help for seniors   You can avoid the penalty by reviewing your return before filing it. Free tax help for seniors Follow these steps before filing your Form 941-SS. Free tax help for seniors 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 tax help for seniors 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 tax help for seniors 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 tax help for seniors Do not show negative amounts on Form 941-SS, line 14, or Schedule B (Form 941). Free tax help for seniors 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 tax help for seniors 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 tax help for seniors 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 tax help for seniors 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 tax help for seniors 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 tax help for seniors 9. Free tax help for seniors Employer's Returns General instructions. Free tax help for seniors   File Forms 941-SS (or Form 944) for nonfarm workers and Form 943 for farmworkers. Free tax help for seniors (U. Free tax help for seniors S. Free tax help for seniors Virgin Islands employers may be required to file Form 940 for the combined wages of nonfarm workers and farmworkers. Free tax help for seniors ) Employers with employees subject to U. Free tax help for seniors S. Free tax help for seniors income tax withholding. Free tax help for seniors   If you have both employees who are subject to U. Free tax help for seniors S. Free tax help for seniors income tax withholding and employees who are not subject to U. Free tax help for seniors S. Free tax help for seniors income tax withholding, you must file only Form 941 (or Form 944) and include all your employees’ wages on that form. Free tax help for seniors Nonfarm employers. Free tax help for seniors   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 tax help for seniors Due dates for each quarter of the calendar year are as follows. Free tax help for seniors Quarter Due Jan. Free tax help for seniors , Feb. Free tax help for seniors , Mar. Free tax help for seniors Apr. Free tax help for seniors 30 Apr. Free tax help for seniors , May, June July 31 July, Aug. Free tax help for seniors , Sept. Free tax help for seniors Oct. Free tax help for seniors 31 Oct. Free tax help for seniors , Nov. Free tax help for seniors , Dec. Free tax help for seniors Jan. Free tax help for seniors 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 tax help for seniors 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 tax help for seniors   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 tax help for seniors Form 944. Free tax help for seniors   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 tax help for seniors Household employers reporting social security and Medicare taxes. Free tax help for seniors   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 tax help for seniors Otherwise, report social security and Medicare taxes for household employees on Schedule H (Form 1040), Household Employment Taxes. Free tax help for seniors See Publication 926, Household Employer's Tax Guide, for more information. Free tax help for seniors Employers of farmworkers. Free tax help for seniors   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 tax help for seniors   File a Form 943 each year for all taxable wages paid for farmwork. Free tax help for seniors You may report household workers in a private home on a farm operated for profit on Form 943. Free tax help for seniors Do not report wages for farmworkers on Form 941-SS or 944. Free tax help for seniors   Send Form 943 to the IRS by January 31 of the following year. Free tax help for seniors Send it with payment of any taxes due that you are not required to deposit. Free tax help for seniors If you deposited all taxes when due, you have 10 additional days to file. Free tax help for seniors Penalties. Free tax help for seniors   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 tax help for seniors The maximum penalty is generally 25% of the tax due. Free tax help for seniors 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 tax help for seniors 5% per month of the amount of tax. Free tax help for seniors For individual filers only, the failure-to-pay penalty is reduced from 0. Free tax help for seniors 5% per month to 0. Free tax help for seniors 25% per month if an installment agreement is in effect. Free tax help for seniors You must have filed your return on or before the due date of the return to qualify for the reduced penalty. Free tax help for seniors The maximum amount of the failure-to-pay penalty is also 25% of the tax due. Free tax help for seniors If both penalties apply in any month, the failure-to-file penalty is reduced by the amount of the failure-to-pay penalty. Free tax help for seniors The penalties will not be charged if you have a reasonable cause for failing to file or pay. Free tax help for seniors If you receive a penalty notice, you can provide an explanation of why you believe reasonable cause exists. Free tax help for seniors 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 tax help for seniors 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 tax help for seniors Prior Period Adjustments Forms for prior period adjustments. Free tax help for seniors   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 tax help for seniors There are also Forms 943-X, 945-X, and CT-1X to report corrections on the corresponding returns. Free tax help for seniors 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 tax help for seniors Continue to use Form 843 when requesting a refund or abatement of assessed interest or penalties. Free tax help for seniors See Revenue Ruling 2009-39, 2009-52 I. Free tax help for seniors R. Free tax help for seniors B. Free tax help for seniors 951, for examples of how the interest-free adjustment and claim for refund rules apply in 10 different situations. Free tax help for seniors You can find Revenue Ruling 2009-39, at www. Free tax help for seniors irs. Free tax help for seniors gov/irb/2009-52_IRB/ar14. Free tax help for seniors html. Free tax help for seniors Background. Free tax help for seniors   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 tax help for seniors Treasury Decision 9405, 2008-32 I. Free tax help for seniors R. Free tax help for seniors B. Free tax help for seniors 293, is available at www. Free tax help for seniors irs. Free tax help for seniors gov/irb/2008-32_IRB/ar13. Free tax help for seniors html. Free tax help for seniors 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 tax help for seniors You will use the claim process if you overreported employment taxes and are requesting a refund or abatement of the overreported amount. Free tax help for seniors 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 tax help for seniors Correcting employment taxes. Free tax help for seniors   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
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The Free Tax Help For Seniors

Free tax help for seniors Publication 598 - Introductory Material Table of Contents What's New Introduction Useful Items - You may want to see: What's New Federal tax deposits must be made by electronic funds transfer. Free tax help for seniors Beginning January 1, 2011, you must use electronic funds transfer to make all federal tax deposits. Free tax help for seniors Forms 8109 and 8109-B, Federal Tax Deposit Coupon, cannot be used after 2010. Free tax help for seniors See Federal Tax Deposits Must be Made by Electronic Funds Transfer on page 3. Free tax help for seniors For large corporations, special rules apply for estimated tax payments that are required to be made for the period that includes July, August, or September of 2012, and the period that immediately follows these months. Free tax help for seniors See the instructions for line 12 on the 2012 Form 990-W (Worksheet), Estimated Tax on Unrelated Business Taxable Income for Tax-Exempt Organizations. Free tax help for seniors The maximum cost of a low-cost article, for organizations eligible to receive charitable contributions, was increased to $9. Free tax help for seniors 70 for 2011. Free tax help for seniors See Distribution of low-cost articles on page 8. Free tax help for seniors The annual limit on associate member dues received by an agricultural or horticultural organization not treated as gross income was increased to $148 for 2011. Free tax help for seniors See Exception under Dues of Agricultural Organizations and Business Leagues on page 10. Free tax help for seniors The IRS has created a page on IRS. Free tax help for seniors gov that includes information about Pub. Free tax help for seniors 598 at www. Free tax help for seniors irs. Free tax help for seniors gov/pub598. Free tax help for seniors Introduction An exempt organization is not taxed on its income from an activity substantially related to the charitable, educational, or other purpose that is the basis for the organization's exemption. Free tax help for seniors Such income is exempt even if the activity is a trade or business. Free tax help for seniors However, if an exempt organization regularly carries on a trade or business not substantially related to its exempt purpose, except that it provides funds to carry out that purpose, the organization is subject to tax on its income from that unrelated trade or business. Free tax help for seniors This publication covers the rules for the tax on unrelated business income of exempt organizations. Free tax help for seniors It explains: Which organizations are subject to the tax (chapter 1), What the requirements are for filing a tax return (chapter 2), What an unrelated trade or business is (chapter 3), and How to figure unrelated business taxable income (chapter 4). Free tax help for seniors All section references in this publication are to the Internal Revenue Code. Free tax help for seniors Useful Items - You may want to see: Publication 557 Tax-Exempt Status for Your Organization Form (and Instructions) 990-T Exempt Organization Business Income Tax Return See chapter 5 for information about getting these publications and forms. Free tax help for seniors Comments and suggestions. Free tax help for seniors   We welcome your comments about this publication and your suggestions for future editions. Free tax help for seniors   You can write to us at: Internal Revenue Service Individual Forms and Publications Branch SE:W:CAR:MP:T:I 1111 Constitution Ave. Free tax help for seniors NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Free tax help for seniors Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Free tax help for seniors   You can email us at taxforms@irs. Free tax help for seniors gov. Free tax help for seniors Please put “publications Comment” on the subject line. Free tax help for seniors You can also send us comments from www. Free tax help for seniors irs. Free tax help for seniors gov/formspubs/, select “Comment on Tax Forms and Publications” under “Information about. Free tax help for seniors ”   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. Free tax help for seniors Prev  Up  Next   Home   More Online Publications