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How To File My 2012 Taxes For Free

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How To File My 2012 Taxes For Free

How to file my 2012 taxes for free Publication 969 - Main Content Table of Contents Health Savings Accounts (HSAs)Qualifying for an HSA Contributions to an HSA Distributions From an HSA Balance in an HSA Death of HSA Holder Filing Form 8889 Employer Participation Medical Savings Accounts (MSAs)Archer MSAs Contributions to an MSA Distributions From an MSA Balance in an Archer MSA Death of the Archer MSA Holder Filing Form 8853 Employer Participation Medicare Advantage MSAs Flexible Spending Arrangements (FSAs)Qualifying for an FSA Contributions to an FSA Distributions From an FSA Balance in an FSA Employer Participation Health Reimbursement Arrangements (HRAs)Qualifying for an HRA Contributions to an HRA Distributions From an HRA Balance in an HRA Employer Participation How To Get Tax HelpLow Income Taxpayer Clinics Health Savings Accounts (HSAs) A health savings account (HSA) is a tax-exempt trust or custodial account you set up with a qualified HSA trustee to pay or reimburse certain medical expenses you incur. How to file my 2012 taxes for free You must be an eligible individual to qualify for an HSA. How to file my 2012 taxes for free No permission or authorization from the IRS is necessary to establish an HSA. How to file my 2012 taxes for free You set up an HSA with a trustee. How to file my 2012 taxes for free A qualified HSA trustee can be a bank, an insurance company, or anyone already approved by the IRS to be a trustee of individual retirement arrangements (IRAs) or Archer MSAs. How to file my 2012 taxes for free The HSA can be established through a trustee that is different from your health plan provider. How to file my 2012 taxes for free Your employer may already have some information on HSA trustees in your area. How to file my 2012 taxes for free If you have an Archer MSA, you can generally roll it over into an HSA tax free. How to file my 2012 taxes for free See Rollovers, later. How to file my 2012 taxes for free What are the benefits of an HSA?   You may enjoy several benefits from having an HSA. How to file my 2012 taxes for free You can claim a tax deduction for contributions you, or someone other than your employer, make to your HSA even if you do not itemize your deductions on Form 1040. How to file my 2012 taxes for free Contributions to your HSA made by your employer (including contributions made through a cafeteria plan) may be excluded from your gross income. How to file my 2012 taxes for free The contributions remain in your account until you use them. How to file my 2012 taxes for free The interest or other earnings on the assets in the account are tax free. How to file my 2012 taxes for free Distributions may be tax free if you pay qualified medical expenses. How to file my 2012 taxes for free See Qualified medical expenses , later. How to file my 2012 taxes for free An HSA is “portable. How to file my 2012 taxes for free ” It stays with you if you change employers or leave the work force. How to file my 2012 taxes for free Qualifying for an HSA To be an eligible individual and qualify for an HSA, you must meet the following requirements. How to file my 2012 taxes for free You must be covered under a high deductible health plan (HDHP), described later, on the first day of the month. How to file my 2012 taxes for free You have no other health coverage except what is permitted under Other health coverage , later. How to file my 2012 taxes for free You are not enrolled in Medicare. How to file my 2012 taxes for free You cannot be claimed as a dependent on someone else's 2013 tax return. How to file my 2012 taxes for free Under the last-month rule, you are considered to be an eligible individual for the entire year if you are an eligible individual on the first day of the last month of your tax year (December 1 for most taxpayers). How to file my 2012 taxes for free If you meet these requirements, you are an eligible individual even if your spouse has non-HDHP family coverage, provided your spouse's coverage does not cover you. How to file my 2012 taxes for free If another taxpayer is entitled to claim an exemption for you, you cannot claim a deduction for an HSA contribution. How to file my 2012 taxes for free This is true even if the other person does not actually claim your exemption. How to file my 2012 taxes for free Each spouse who is an eligible individual who wants an HSA must open a separate HSA. How to file my 2012 taxes for free You cannot have a joint HSA. How to file my 2012 taxes for free High deductible health plan (HDHP). How to file my 2012 taxes for free   An HDHP has: A higher annual deductible than typical health plans, and A maximum limit on the sum of the annual deductible and out-of-pocket medical expenses that you must pay for covered expenses. How to file my 2012 taxes for free Out-of-pocket expenses include copayments and other amounts, but do not include premiums. How to file my 2012 taxes for free   An HDHP may provide preventive care benefits without a deductible or with a deductible less than the minimum annual deductible. How to file my 2012 taxes for free Preventive care includes, but is not limited to, the following. How to file my 2012 taxes for free Periodic health evaluations, including tests and diagnostic procedures ordered in connection with routine examinations, such as annual physicals. How to file my 2012 taxes for free Routine prenatal and well-child care. How to file my 2012 taxes for free Child and adult immunizations. How to file my 2012 taxes for free Tobacco cessation programs. How to file my 2012 taxes for free Obesity weight-loss programs. How to file my 2012 taxes for free Screening services. How to file my 2012 taxes for free This includes screening services for the following: Cancer. How to file my 2012 taxes for free Heart and vascular diseases. How to file my 2012 taxes for free Infectious diseases. How to file my 2012 taxes for free Mental health conditions. How to file my 2012 taxes for free Substance abuse. How to file my 2012 taxes for free Metabolic, nutritional, and endocrine conditions. How to file my 2012 taxes for free Musculoskeletal disorders. How to file my 2012 taxes for free Obstetric and gynecological conditions. How to file my 2012 taxes for free Pediatric conditions. How to file my 2012 taxes for free Vision and hearing disorders. How to file my 2012 taxes for free For more information on screening services, see Notice 2004-23, 2004-15 I. How to file my 2012 taxes for free R. How to file my 2012 taxes for free B. How to file my 2012 taxes for free 725 available at www. How to file my 2012 taxes for free irs. How to file my 2012 taxes for free gov/irb/2004-15_IRB/ar10. How to file my 2012 taxes for free html. How to file my 2012 taxes for free     The following table shows the minimum annual deductible and maximum annual deductible and other out-of-pocket expenses for HDHPs for 2013. How to file my 2012 taxes for free      Self-only coverage Family coverage Minimum annual deductible $1,250 $2,500 Maximum annual deductible and other out-of-pocket expenses* $6,250 $12,500 * This limit does not apply to deductibles and expenses for out-of-network services if the plan uses a network of providers. How to file my 2012 taxes for free Instead, only deductibles and out-of-pocket expenses for services within the network should be used to figure whether the limit applies. How to file my 2012 taxes for free    The following table shows the minimum annual deductible and maximum annual deductible and other out-of-pocket expenses for HDHPs for 2014. How to file my 2012 taxes for free      Self-only coverage Family coverage Minimum annual deductible $1,250 $2,500 Maximum annual deductible and other out-of-pocket expenses* $6,350 $12,700 * This limit does not apply to deductibles and expenses for out-of-network services if the plan uses a network of providers. How to file my 2012 taxes for free Instead, only deductibles and out-of-pocket expenses for services within the network should be used to figure whether the limit applies. How to file my 2012 taxes for free   Self-only HDHP coverage is an HDHP covering only an eligible individual. How to file my 2012 taxes for free Family HDHP coverage is an HDHP covering an eligible individual and at least one other individual (whether or not that individual is an eligible individual). How to file my 2012 taxes for free Example. How to file my 2012 taxes for free An eligible individual and his dependent child are covered under an “employee plus one” HDHP offered by the individual's employer. How to file my 2012 taxes for free This is family HDHP coverage. How to file my 2012 taxes for free Family plans that do not meet the high deductible rules. How to file my 2012 taxes for free   There are some family plans that have deductibles for both the family as a whole and for individual family members. How to file my 2012 taxes for free Under these plans, if you meet the individual deductible for one family member, you do not have to meet the higher annual deductible amount for the family. How to file my 2012 taxes for free If either the deductible for the family as a whole or the deductible for an individual family member is less than the minimum annual deductible for family coverage, the plan does not qualify as an HDHP. How to file my 2012 taxes for free Example. How to file my 2012 taxes for free You have family health insurance coverage in 2013. How to file my 2012 taxes for free The annual deductible for the family plan is $3,500. How to file my 2012 taxes for free This plan also has an individual deductible of $1,500 for each family member. How to file my 2012 taxes for free The plan does not qualify as an HDHP because the deductible for an individual family member is less than the minimum annual deductible ($2,500) for family coverage. How to file my 2012 taxes for free Other health coverage. How to file my 2012 taxes for free   You (and your spouse, if you have family coverage) generally cannot have any other health coverage that is not an HDHP. How to file my 2012 taxes for free However, you can still be an eligible individual even if your spouse has non-HDHP coverage provided you are not covered by that plan. How to file my 2012 taxes for free    You can have additional insurance that provides benefits only for the following items. How to file my 2012 taxes for free Liabilities incurred under workers' compensation laws, tort liabilities, or liabilities related to ownership or use of property. How to file my 2012 taxes for free A specific disease or illness. How to file my 2012 taxes for free A fixed amount per day (or other period) of hospitalization. How to file my 2012 taxes for free   You can also have coverage (whether provided through insurance or otherwise) for the following items. How to file my 2012 taxes for free Accidents. How to file my 2012 taxes for free Disability. How to file my 2012 taxes for free Dental care. How to file my 2012 taxes for free Vision care. How to file my 2012 taxes for free Long-term care. How to file my 2012 taxes for free    Plans in which substantially all of the coverage is through the items listed earlier are not HDHPs. How to file my 2012 taxes for free For example, if your plan provides coverage substantially all of which is for a specific disease or illness, the plan is not an HDHP for purposes of establishing an HSA. How to file my 2012 taxes for free Prescription drug plans. How to file my 2012 taxes for free   You can have a prescription drug plan, either as part of your HDHP or a separate plan (or rider), and qualify as an eligible individual if the plan does not provide benefits until the minimum annual deductible of the HDHP has been met. How to file my 2012 taxes for free If you can receive benefits before that deductible is met, you are not an eligible individual. How to file my 2012 taxes for free Other employee health plans. How to file my 2012 taxes for free   An employee covered by an HDHP and a health FSA or an HRA that pays or reimburses qualified medical expenses generally cannot make contributions to an HSA. How to file my 2012 taxes for free Health FSAs and HRAs are discussed later. How to file my 2012 taxes for free   However, an employee can make contributions to an HSA while covered under an HDHP and one or more of the following arrangements. How to file my 2012 taxes for free Limited-purpose health FSA or HRA. How to file my 2012 taxes for free These arrangements can pay or reimburse the items listed earlier under Other health coverage except long-term care. How to file my 2012 taxes for free Also, these arrangements can pay or reimburse preventive care expenses because they can be paid without having to satisfy the deductible. How to file my 2012 taxes for free Suspended HRA. How to file my 2012 taxes for free Before the beginning of an HRA coverage period, you can elect to suspend the HRA. How to file my 2012 taxes for free The HRA does not pay or reimburse, at any time, the medical expenses incurred during the suspension period except preventive care and items listed under Other health coverage. How to file my 2012 taxes for free When the suspension period ends, you are no longer eligible to make contributions to an HSA. How to file my 2012 taxes for free Post-deductible health FSA or HRA. How to file my 2012 taxes for free These arrangements do not pay or reimburse any medical expenses incurred before the minimum annual deductible amount is met. How to file my 2012 taxes for free The deductible for these arrangements does not have to be the same as the deductible for the HDHP, but benefits may not be provided before the minimum annual deductible amount is met. How to file my 2012 taxes for free Retirement HRA. How to file my 2012 taxes for free This arrangement pays or reimburses only those medical expenses incurred after retirement. How to file my 2012 taxes for free After retirement you are no longer eligible to make contributions to an HSA. How to file my 2012 taxes for free Health FSA – grace period. How to file my 2012 taxes for free   Coverage during a grace period by a general purpose health FSA is allowed if the balance in the health FSA at the end of its prior year plan is zero. How to file my 2012 taxes for free See Flexible Spending Arrangements (FSAs) , later. How to file my 2012 taxes for free Contributions to an HSA Any eligible individual can contribute to an HSA. How to file my 2012 taxes for free For an employee's HSA, the employee, the employee's employer, or both may contribute to the employee's HSA in the same year. How to file my 2012 taxes for free For an HSA established by a self-employed (or unemployed) individual, the individual can contribute. How to file my 2012 taxes for free Family members or any other person may also make contributions on behalf of an eligible individual. How to file my 2012 taxes for free Contributions to an HSA must be made in cash. How to file my 2012 taxes for free Contributions of stock or property are not allowed. How to file my 2012 taxes for free Limit on Contributions The amount you or any other person can contribute to your HSA depends on the type of HDHP coverage you have, your age, the date you become an eligible individual, and the date you cease to be an eligible individual. How to file my 2012 taxes for free For 2013, if you have self-only HDHP coverage, you can contribute up to $3,250. How to file my 2012 taxes for free If you have family HDHP coverage, you can contribute up to $6,450. How to file my 2012 taxes for free For 2014, if you have self-only HDHP coverage, you can contribute up to $3,300. How to file my 2012 taxes for free If you have family HDHP coverage you can contribute up to $6,550. How to file my 2012 taxes for free If you were, or were considered (under the last-month rule, discussed later), an eligible individual for the entire year and did not change your type of coverage, you can contribute the full amount based on your type of coverage. How to file my 2012 taxes for free However, if you were not an eligible individual for the entire year or changed your coverage during the year, your contribution limit is the greater of: The limitation shown on the Line 3 Limitation Chart and Worksheetin the Instructions for Form 8889, Health Savings Accounts (HSAs), or The maximum annual HSA contribution based on your HDHP coverage (self-only or family) on the first day of the last month of your tax year. How to file my 2012 taxes for free If you had family HDHP coverage on the first day of the last month of your tax year, your contribution limit for 2013 is $6,450 even if you changed coverage during the year. How to file my 2012 taxes for free Last-month rule. How to file my 2012 taxes for free   Under the last-month rule, if you are an eligible individual on the first day of the last month of your tax year (December 1 for most taxpayers), you are considered an eligible individual for the entire year. How to file my 2012 taxes for free You are treated as having the same HDHP coverage for the entire year as you had on the first day of the last month. How to file my 2012 taxes for free Testing period. How to file my 2012 taxes for free   If contributions were made to your HSA based on you being an eligible individual for the entire year under the last-month rule, you must remain an eligible individual during the testing period. How to file my 2012 taxes for free For the last-month rule, the testing period begins with the last month of your tax year and ends on the last day of the 12th month following that month. How to file my 2012 taxes for free For example, December 1, 2013, through December 31, 2014. How to file my 2012 taxes for free   If you fail to remain an eligible individual during the testing period, other than because of death or becoming disabled, you will have to include in income the total contributions made to your HSA that would not have been made except for the last-month rule. How to file my 2012 taxes for free You include this amount in your income in the year in which you fail to be an eligible individual. How to file my 2012 taxes for free This amount is also subject to a 10% additional tax. How to file my 2012 taxes for free The income and additional tax are shown on Form 8889, Part III. How to file my 2012 taxes for free Example 1. How to file my 2012 taxes for free Chris, age 53, becomes an eligible individual on December 1, 2013. How to file my 2012 taxes for free He has family HDHP coverage on that date. How to file my 2012 taxes for free Under the last-month rule, he contributes $6,450 to his HSA. How to file my 2012 taxes for free Chris fails to be an eligible individual in June 2014. How to file my 2012 taxes for free Because Chris did not remain an eligible individual during the testing period (December 1, 2013, through December 31, 2014), he must include in his 2014 income the contributions made in 2013 that would not have been made except for the last-month rule. How to file my 2012 taxes for free Chris uses the worksheet in the Form 8889 instructions to determine this amount. How to file my 2012 taxes for free January -0- February -0- March -0- April -0- May -0- June -0- July -0- August -0- September -0- October -0- November -0- December $6,450. How to file my 2012 taxes for free 00 Total for all months $6,450. How to file my 2012 taxes for free 00 Limitation. How to file my 2012 taxes for free Divide the total by 12 $537. How to file my 2012 taxes for free 50 Chris would include $5,912. How to file my 2012 taxes for free 50 ($6,450. How to file my 2012 taxes for free 00 – $537. How to file my 2012 taxes for free 50) in his gross income on his 2014 tax return. How to file my 2012 taxes for free Also, a 10% additional tax applies to this amount. How to file my 2012 taxes for free Example 2. How to file my 2012 taxes for free Erika, age 39, has self-only HDHP coverage on January 1, 2013. How to file my 2012 taxes for free Erika changes to family HDHP coverage on November 1, 2013. How to file my 2012 taxes for free Because Erika has family HDHP coverage on December 1, 2013, she contributes $6,450 for 2013. How to file my 2012 taxes for free Erika fails to be an eligible individual in March 2014. How to file my 2012 taxes for free Because she did not remain an eligible individual during the testing period (December 1, 2013, through December 31, 2014), she must include in income the contribution made that would not have been made except for the last-month rule. How to file my 2012 taxes for free Erika uses the worksheet in the Form 8889 instructions to determine this amount. How to file my 2012 taxes for free January $3,250. How to file my 2012 taxes for free 00 February $3,250. How to file my 2012 taxes for free 00 March $3,250. How to file my 2012 taxes for free 00 April $3,250. How to file my 2012 taxes for free 00 May $3,250. How to file my 2012 taxes for free 00 June $3,250. How to file my 2012 taxes for free 00 July $3,250. How to file my 2012 taxes for free 00 August $3,250. How to file my 2012 taxes for free 00 September $3,250. How to file my 2012 taxes for free 00 October $3,250. How to file my 2012 taxes for free 00 November $6,450. How to file my 2012 taxes for free 00 December $6,450. How to file my 2012 taxes for free 00 Total for all months $45,400. How to file my 2012 taxes for free 00 Limitation. How to file my 2012 taxes for free Divide the total by 12 $3,783. How to file my 2012 taxes for free 34 Erika would include $2,666. How to file my 2012 taxes for free 67 ($6,450 – $3,783. How to file my 2012 taxes for free 34) in her gross income on her 2014 tax return. How to file my 2012 taxes for free Also, a 10% additional tax applies to this amount. How to file my 2012 taxes for free Additional contribution. How to file my 2012 taxes for free   If you are an eligible individual who is age 55 or older at the end of your tax year, your contribution limit is increased by $1,000. How to file my 2012 taxes for free For example, if you have self-only coverage, you can contribute up to $4,250 (the contribution limit for self-only coverage ($3,250) plus the additional contribution of $1,000). How to file my 2012 taxes for free However, see Enrolled in Medicare , later. How to file my 2012 taxes for free If you have more than one HSA in 2013, your total contributions to all the HSAs cannot be more than the limits discussed earlier. How to file my 2012 taxes for free Reduction of contribution limit. How to file my 2012 taxes for free   You must reduce the amount that can be contributed (including any additional contribution) to your HSA by the amount of any contribution made to your Archer MSA (including employer contributions) for the year. How to file my 2012 taxes for free A special rule applies to married people, discussed next, if each spouse has family coverage under an HDHP. How to file my 2012 taxes for free Rules for married people. How to file my 2012 taxes for free   If either spouse has family HDHP coverage, both spouses are treated as having family HDHP coverage. How to file my 2012 taxes for free If each spouse has family coverage under a separate plan, the contribution limit for 2013 is $6,450. How to file my 2012 taxes for free You must reduce the limit on contributions, before taking into account any additional contributions, by the amount contributed to both spouses' Archer MSAs. How to file my 2012 taxes for free After that reduction, the contribution limit is split equally between the spouses unless you agree on a different division. How to file my 2012 taxes for free The rules for married people apply only if both spouses are eligible individuals. How to file my 2012 taxes for free If both spouses are 55 or older and not enrolled in Medicare, each spouse's contribution limit is increased by the additional contribution. How to file my 2012 taxes for free If both spouses meet the age requirement, the total contributions under family coverage cannot be more than $8,450. How to file my 2012 taxes for free Each spouse must make the additional contribution to his or her own HSA. How to file my 2012 taxes for free Example. How to file my 2012 taxes for free For 2013, Mr. How to file my 2012 taxes for free Auburn and his wife are both eligible individuals. How to file my 2012 taxes for free They each have family coverage under separate HDHPs. How to file my 2012 taxes for free Mr. How to file my 2012 taxes for free Auburn is 58 years old and Mrs. How to file my 2012 taxes for free Auburn is 53. How to file my 2012 taxes for free Mr. How to file my 2012 taxes for free and Mrs. How to file my 2012 taxes for free Auburn can split the family contribution limit ($6,450) equally or they can agree on a different division. How to file my 2012 taxes for free If they split it equally, Mr. How to file my 2012 taxes for free Auburn can contribute $4,225 to an HSA (one-half the maximum contribution for family coverage ($3,225) + $1,000 additional contribution) and Mrs. How to file my 2012 taxes for free Auburn can contribute $3,225 to an HSA. How to file my 2012 taxes for free Employer contributions. How to file my 2012 taxes for free   You must reduce the amount you, or any other person, can contribute to your HSA by the amount of any contributions made by your employer that are excludable from your income. How to file my 2012 taxes for free This includes amounts contributed to your account by your employer through a cafeteria plan. How to file my 2012 taxes for free Enrolled in Medicare. How to file my 2012 taxes for free   Beginning with the first month you are enrolled in Medicare, your contribution limit is zero. How to file my 2012 taxes for free Example. How to file my 2012 taxes for free You turned age 65 in July 2013 and enrolled in Medicare. How to file my 2012 taxes for free You had an HDHP with self-only coverage and are eligible for an additional contribution of $1,000. How to file my 2012 taxes for free Your contribution limit is $2,125 ($4,250 × 6 ÷ 12). How to file my 2012 taxes for free Qualified HSA funding distribution. How to file my 2012 taxes for free   A qualified HSA funding distribution may be made from your traditional IRA or Roth IRA to your HSA. How to file my 2012 taxes for free This distribution cannot be made from an ongoing SEP IRA or SIMPLE IRA. How to file my 2012 taxes for free For this purpose, a SEP IRA or SIMPLE IRA is ongoing if an employer contribution is made for the plan year ending with or within your tax year in which the distribution would be made. How to file my 2012 taxes for free   The maximum qualified HSA funding distribution depends on the HDHP coverage (self-only or family) you have on the first day of the month in which the contribution is made and your age as of the end of the tax year. How to file my 2012 taxes for free The distribution must be made directly by the trustee of the IRA to the trustee of the HSA. How to file my 2012 taxes for free The distribution is not included in your income, is not deductible, and reduces the amount that can be contributed to your HSA. How to file my 2012 taxes for free The qualified HSA funding distribution is shown on Form 8889 for the year in which the distribution is made. How to file my 2012 taxes for free   You can make only one qualified HSA funding distribution during your lifetime. How to file my 2012 taxes for free However, if you make a distribution during a month when you have self-only HDHP coverage, you can make another qualified HSA funding distribution in a later month in that tax year if you change to family HDHP coverage. How to file my 2012 taxes for free The total qualified HSA funding distribution cannot be more than the contribution limit for family HDHP coverage plus any additional contribution to which you are entitled. How to file my 2012 taxes for free Example. How to file my 2012 taxes for free In 2013, you are an eligible individual, age 57, with self-only HDHP coverage. How to file my 2012 taxes for free You can make a qualified HSA funding distribution of $4,250 ($3,250 plus $1,000 additional contribution). How to file my 2012 taxes for free Funding distribution – testing period. How to file my 2012 taxes for free   You must remain an eligible individual during the testing period. How to file my 2012 taxes for free For a qualified HSA funding distribution, the testing period begins with the month in which the qualified HSA funding distribution is contributed and ends on the last day of the 12th month following that month. How to file my 2012 taxes for free For example, if a qualified HSA funding distribution is contributed to your HSA on August 10, 2013, your testing period begins in August 2013, and ends on August 31, 2014. How to file my 2012 taxes for free   If you fail to remain an eligible individual during the testing period, other than because of death or becoming disabled, you will have to include in income the qualified HSA funding distribution. How to file my 2012 taxes for free You include this amount in income in the year in which you fail to be an eligible individual. How to file my 2012 taxes for free This amount is also subject to a 10% additional tax. How to file my 2012 taxes for free The income and the additional tax are shown on Form 8889, Part III. How to file my 2012 taxes for free   Each qualified HSA funding distribution allowed has its own testing period. How to file my 2012 taxes for free For example, you are an eligible individual, age 45, with self-only HDHP coverage. How to file my 2012 taxes for free On June 18, 2013, you make a qualified HSA funding distribution of $3,250. How to file my 2012 taxes for free On July 27, 2013, you enroll in family HDHP coverage and on August 17, 2013, you make a qualified HSA funding distribution of $3,200. How to file my 2012 taxes for free Your testing period for the first distribution begins in June 2013 and ends on June 30, 2014. How to file my 2012 taxes for free Your testing period for the second distribution begins in August 2013 and ends on August 31, 2014. How to file my 2012 taxes for free   The testing period rule that applies under the last-month rule (discussed earlier) does not apply to amounts contributed to an HSA through a qualified HSA funding distribution. How to file my 2012 taxes for free If you remain an eligible individual during the entire funding distribution testing period, then no amount of that distribution is included in income and will not be subject to the additional tax for failing to meet the last-month rule testing period. How to file my 2012 taxes for free Rollovers A rollover contribution is not included in your income, is not deductible, and does not reduce your contribution limit. How to file my 2012 taxes for free Archer MSAs and other HSAs. How to file my 2012 taxes for free   You can roll over amounts from Archer MSAs and other HSAs into an HSA. How to file my 2012 taxes for free You do not have to be an eligible individual to make a rollover contribution from your existing HSA to a new HSA. How to file my 2012 taxes for free Rollover contributions do not need to be in cash. How to file my 2012 taxes for free Rollovers are not subject to the annual contribution limits. How to file my 2012 taxes for free   You must roll over the amount within 60 days after the date of receipt. How to file my 2012 taxes for free You can make only one rollover contribution to an HSA during a 1-year period. How to file my 2012 taxes for free Note. How to file my 2012 taxes for free If you instruct the trustee of your HSA to transfer funds directly to the trustee of another of your HSAs, the transfer is not considered a rollover. How to file my 2012 taxes for free There is no limit on the number of these transfers. How to file my 2012 taxes for free Do not include the amount transferred in income, deduct it as a contribution, or include it as a distribution on Form 8889. How to file my 2012 taxes for free When To Contribute You can make contributions to your HSA for 2013 until April 15, 2014. How to file my 2012 taxes for free If you fail to be an eligible individual during 2013, you can still make contributions, up until April 15, 2014, for the months you were an eligible individual. How to file my 2012 taxes for free Your employer can make contributions to your HSA between January 1, 2014, and April 15, 2014, that are allocated to 2013. How to file my 2012 taxes for free Your employer must notify you and the trustee of your HSA that the contribution is for 2013. How to file my 2012 taxes for free The contribution will be reported on your 2014 Form W-2. How to file my 2012 taxes for free Reporting Contributions on Your Return Contributions made by your employer are not included in your income. How to file my 2012 taxes for free Contributions to an employee's account by an employer using the amount of an employee's salary reduction through a cafeteria plan are treated as employer contributions. How to file my 2012 taxes for free Generally, you can claim contributions you made and contributions made by any other person, other than your employer, on your behalf, as an adjustment to income. How to file my 2012 taxes for free Contributions by a partnership to a bona fide partner's HSA are not contributions by an employer. How to file my 2012 taxes for free The contributions are treated as a distribution of money and are not included in the partner's gross income. How to file my 2012 taxes for free Contributions by a partnership to a partner's HSA for services rendered are treated as guaranteed payments that are deductible by the partnership and includible in the partner's gross income. How to file my 2012 taxes for free In both situations, the partner can deduct the contribution made to the partner's HSA. How to file my 2012 taxes for free Contributions by an S corporation to a 2% shareholder-employee's HSA for services rendered are treated as guaranteed payments and are deductible by the S corporation and includible in the shareholder-employee's gross income. How to file my 2012 taxes for free The shareholder-employee can deduct the contribution made to the shareholder-employee's HSA. How to file my 2012 taxes for free Form 8889. How to file my 2012 taxes for free   Report all contributions to your HSA on Form 8889 and file it with your Form 1040 or Form 1040NR. How to file my 2012 taxes for free You should include all contributions made for 2013, including those made by April 15, 2014, that are designated for 2013. How to file my 2012 taxes for free Contributions made by your employer and qualified HSA funding distributions are also shown on the form. How to file my 2012 taxes for free   You should receive Form 5498-SA, HSA, Archer MSA, or Medicare Advantage MSA Information, from the trustee showing the amount contributed to your HSA during the year. How to file my 2012 taxes for free Your employer's contributions also will be shown in box 12 of Form W-2, Wage and Tax Statement, with code W. How to file my 2012 taxes for free Follow the instructions for Form 8889. How to file my 2012 taxes for free Report your HSA deduction on Form 1040 or Form 1040NR. How to file my 2012 taxes for free Excess contributions. How to file my 2012 taxes for free   You will have excess contributions if the contributions to your HSA for the year are greater than the limits discussed earlier. How to file my 2012 taxes for free Excess contributions are not deductible. How to file my 2012 taxes for free Excess contributions made by your employer are included in your gross income. How to file my 2012 taxes for free If the excess contribution is not included in box 1 of Form W-2, you must report the excess as “Other income” on your tax return. How to file my 2012 taxes for free   Generally, you must pay a 6% excise tax on excess contributions. How to file my 2012 taxes for free See Form 5329, Additional Taxes on Qualified Plans (including IRAs) and Other Tax-Favored Accounts, to figure the excise tax. How to file my 2012 taxes for free The excise tax applies to each tax year the excess contribution remains in the account. How to file my 2012 taxes for free   You may withdraw some or all of the excess contributions and not pay the excise tax on the amount withdrawn if you meet the following conditions. How to file my 2012 taxes for free You withdraw the excess contributions by the due date, including extensions, of your tax return for the year the contributions were made. How to file my 2012 taxes for free You withdraw any income earned on the withdrawn contributions and include the earnings in “Other income” on your tax return for the year you withdraw the contributions and earnings. How to file my 2012 taxes for free If you fail to remain an eligible individual during any of the testing periods, discussed earlier, the amount you have to include in income is not an excess contribution. How to file my 2012 taxes for free If you withdraw any of those amounts, the amount is treated the same as any other distribution from an HSA, discussed later. How to file my 2012 taxes for free Deducting an excess contribution in a later year. How to file my 2012 taxes for free   You may be able to deduct excess contributions for previous years that are still in your HSA. How to file my 2012 taxes for free The excess contribution you can deduct for the current year is the lesser of the following two amounts. How to file my 2012 taxes for free Your maximum HSA contribution limit for the year minus any amounts contributed to your HSA for the year. How to file my 2012 taxes for free The total excess contributions in your HSA at the beginning of the year. How to file my 2012 taxes for free   Amounts contributed for the year include contributions by you, your employer, and any other person. How to file my 2012 taxes for free They also include any qualified HSA funding distribution made to your HSA. How to file my 2012 taxes for free Any excess contribution remaining at the end of a tax year is subject to the excise tax. How to file my 2012 taxes for free See Form 5329. How to file my 2012 taxes for free Distributions From an HSA You will generally pay medical expenses during the year without being reimbursed by your HDHP until you reach the annual deductible for the plan. How to file my 2012 taxes for free When you pay medical expenses during the year that are not reimbursed by your HDHP, you can ask the trustee of your HSA to send you a distribution from your HSA. How to file my 2012 taxes for free You can receive tax-free distributions from your HSA to pay or be reimbursed for qualified medical expenses you incur after you establish the HSA. How to file my 2012 taxes for free If you receive distributions for other reasons, the amount you withdraw will be subject to income tax and may be subject to an additional 20% tax. How to file my 2012 taxes for free You do not have to make distributions from your HSA each year. How to file my 2012 taxes for free If you are no longer an eligible individual, you can still receive tax-free distributions to pay or reimburse your qualified medical expenses. How to file my 2012 taxes for free Generally, a distribution is money you get from your health savings account. How to file my 2012 taxes for free Your total distributions include amounts paid with a debit card that restricts payments to health care and amounts withdrawn from the HSA by other individuals that you have designated. How to file my 2012 taxes for free The trustee will report any distribution to you and the IRS on Form 1099-SA, Distributions From an HSA, Archer MSA, or Medicare Advantage MSA. How to file my 2012 taxes for free Qualified medical expenses. How to file my 2012 taxes for free   Qualified medical expenses are those expenses that would generally qualify for the medical and dental expenses deduction. How to file my 2012 taxes for free These are explained in Publication 502, Medical and Dental Expenses. How to file my 2012 taxes for free   Also, non-prescription medicines (other than insulin) are not considered qualified medical expenses for HSA purposes. How to file my 2012 taxes for free A medicine or drug will be a qualified medical expense for HSA purposes only if the medicine or drug: Requires a prescription, Is available without a prescription (an over-the-counter medicine or drug) and you get a prescription for it, or Is insulin. How to file my 2012 taxes for free   For HSA purposes, expenses incurred before you establish your HSA are not qualified medical expenses. How to file my 2012 taxes for free State law determines when an HSA is established. How to file my 2012 taxes for free An HSA that is funded by amounts rolled over from an Archer MSA or another HSA is established on the date the prior account was established. How to file my 2012 taxes for free   If, under the last-month rule, you are considered to be an eligible individual for the entire year for determining the contribution amount, only those expenses incurred after you actually establish your HSA are qualified medical expenses. How to file my 2012 taxes for free   Qualified medical expenses are those incurred by the following persons. How to file my 2012 taxes for free You and your spouse. How to file my 2012 taxes for free All dependents you claim on your tax return. How to file my 2012 taxes for free Any person you could have claimed as a dependent on your return except that: The person filed a joint return, The person had gross income of $3,900 or more, or You, or your spouse if filing jointly, could be claimed as a dependent on someone else's 2013 return. How to file my 2012 taxes for free    For this purpose, a child of parents that are divorced, separated, or living apart for the last 6 months of the calendar year is treated as the dependent of both parents whether or not the custodial parent releases the claim to the child's exemption. How to file my 2012 taxes for free You cannot deduct qualified medical expenses as an itemized deduction on Schedule A (Form 1040) that are equal to the tax-free distribution from your HSA. How to file my 2012 taxes for free Insurance premiums. How to file my 2012 taxes for free   You cannot treat insurance premiums as qualified medical expenses unless the premiums are for: Long-term care insurance. How to file my 2012 taxes for free Health care continuation coverage (such as coverage under COBRA). How to file my 2012 taxes for free Health care coverage while receiving unemployment compensation under federal or state law. How to file my 2012 taxes for free Medicare and other health care coverage if you were 65 or older (other than premiums for a Medicare supplemental policy, such as Medigap). How to file my 2012 taxes for free   The premiums for long-term care insurance (item (1)) that you can treat as qualified medical expenses are subject to limits based on age and are adjusted annually. How to file my 2012 taxes for free See Limit on long-term care premiums you can deduct in the instructions for Schedule A (Form 1040). How to file my 2012 taxes for free   Items (2) and (3) can be for your spouse or a dependent meeting the requirement for that type of coverage. How to file my 2012 taxes for free For item (4), if you, the account beneficiary, are not 65 or older, Medicare premiums for coverage of your spouse or a dependent (who is 65 or older) generally are not qualified medical expenses. How to file my 2012 taxes for free Health coverage tax credit. How to file my 2012 taxes for free   You cannot claim this credit for premiums that you pay with a tax-free distribution from your HSA. How to file my 2012 taxes for free See Publication 502 for more information on this credit. How to file my 2012 taxes for free Deemed distributions from HSAs. How to file my 2012 taxes for free   The following situations result in deemed taxable distributions from your HSA. How to file my 2012 taxes for free You engaged in any transaction prohibited by section 4975 with respect to any of your HSAs, at any time in 2013. How to file my 2012 taxes for free Your account ceases to be an HSA as of January 1, 2013, and you must include the fair market value of all assets in the account as of January 1, 2013, on Form 8889. How to file my 2012 taxes for free You used any portion of any of your HSAs as security for a loan at any time in 2013. How to file my 2012 taxes for free You must include the fair market value of the assets used as security for the loan as income on Form 1040 or Form 1040NR. How to file my 2012 taxes for free   Examples of prohibited transactions include the direct or indirect: Sale, exchange, or leasing of property between you and the HSA, Lending of money between you and the HSA, Furnishing goods, services, or facilities between you and the HSA, and Transfer to or use by you, or for your benefit, of any assets of the HSA. How to file my 2012 taxes for free   Any deemed distribution will not be treated as used to pay qualified medical expenses. How to file my 2012 taxes for free These distributions are included in your income and are subject to the additional 20% tax, discussed later. How to file my 2012 taxes for free Recordkeeping. How to file my 2012 taxes for free You must keep records sufficient to show that: The distributions were exclusively to pay or reimburse qualified medical expenses, The qualified medical expenses had not been previously paid or reimbursed from another source, and The medical expenses had not been taken as an itemized deduction in any year. How to file my 2012 taxes for free Do not send these records with your tax return. How to file my 2012 taxes for free Keep them with your tax records. How to file my 2012 taxes for free Reporting Distributions on Your Return How you report your distributions depends on whether or not you use the distribution for qualified medical expenses (defined earlier). How to file my 2012 taxes for free If you use a distribution from your HSA for qualified medical expenses, you do not pay tax on the distribution but you have to report the distribution on Form 8889. How to file my 2012 taxes for free However, the distribution of an excess contribution taken out after the due date, including extensions, of your return is subject to tax even if used for qualified medical expenses. How to file my 2012 taxes for free Follow the instructions for the form and file it with your Form 1040 or Form 1040NR. How to file my 2012 taxes for free If you do not use a distribution from your HSA for qualified medical expenses, you must pay tax on the distribution. How to file my 2012 taxes for free Report the amount on Form 8889 and file it with your Form 1040 or Form 1040NR. How to file my 2012 taxes for free You may have to pay an additional 20% tax on your taxable distribution. How to file my 2012 taxes for free HSA administration and maintenance fees withdrawn by the trustee are not reported as distributions from the HSA. How to file my 2012 taxes for free Additional tax. How to file my 2012 taxes for free   There is an additional 20% tax on the part of your distributions not used for qualified medical expenses. How to file my 2012 taxes for free Figure the tax on Form 8889 and file it with your Form 1040 or Form 1040NR. How to file my 2012 taxes for free Exceptions. How to file my 2012 taxes for free   There is no additional tax on distributions made after the date you are disabled, reach age 65, or die. How to file my 2012 taxes for free Balance in an HSA An HSA is generally exempt from tax. How to file my 2012 taxes for free You are permitted to take a distribution from your HSA at any time; however, only those amounts used exclusively to pay for qualified medical expenses are tax free. How to file my 2012 taxes for free Amounts that remain at the end of the year are generally carried over to the next year (see Excess contributions , earlier). How to file my 2012 taxes for free Earnings on amounts in an HSA are not included in your income while held in the HSA. How to file my 2012 taxes for free Death of HSA Holder You should choose a beneficiary when you set up your HSA. How to file my 2012 taxes for free What happens to that HSA when you die depends on whom you designate as the beneficiary. How to file my 2012 taxes for free Spouse is the designated beneficiary. How to file my 2012 taxes for free   If your spouse is the designated beneficiary of your HSA, it will be treated as your spouse's HSA after your death. How to file my 2012 taxes for free Spouse is not the designated beneficiary. How to file my 2012 taxes for free   If your spouse is not the designated beneficiary of your HSA: The account stops being an HSA, and The fair market value of the HSA becomes taxable to the beneficiary in the year in which you die. How to file my 2012 taxes for free If your estate is the beneficiary, the value is included on your final income tax return. How to file my 2012 taxes for free The amount taxable to a beneficiary other than the estate is reduced by any qualified medical expenses for the decedent that are paid by the beneficiary within 1 year after the date of death. How to file my 2012 taxes for free Filing Form 8889 You must file Form 8889 with your Form 1040 or Form 1040NR if you (or your spouse, if married filing a joint return) had any activity in your HSA during the year. How to file my 2012 taxes for free You must file the form even if only your employer or your spouse's employer made contributions to the HSA. How to file my 2012 taxes for free If, during the tax year, you are the beneficiary of two or more HSAs or you are a beneficiary of an HSA and you have your own HSA, you must complete a separate Form 8889 for each HSA. How to file my 2012 taxes for free Enter “statement” at the top of each Form 8889 and complete the form as instructed. How to file my 2012 taxes for free Next, complete a controlling Form 8889 combining the amounts shown on each of the statement Forms 8889. How to file my 2012 taxes for free Attach the statements to your tax return after the controlling Form 8889. How to file my 2012 taxes for free Employer Participation This section contains the rules that employers must follow if they decide to make HSAs available to their employees. How to file my 2012 taxes for free Unlike the previous discussions, “you” refers to the employer and not to the employee. How to file my 2012 taxes for free Health plan. How to file my 2012 taxes for free   If you want your employees to be able to have an HSA, they must have an HDHP. How to file my 2012 taxes for free You can provide no additional coverage other than those exceptions listed previously under Other health coverage . How to file my 2012 taxes for free Contributions. How to file my 2012 taxes for free   You can make contributions to your employees' HSAs. How to file my 2012 taxes for free You deduct the contributions on your business income tax return for the year in which you make the contributions. How to file my 2012 taxes for free If the contribution is allocated to the prior year, you still deduct it in the year in which you made the contribution. How to file my 2012 taxes for free   For more information on employer contributions, see Notice 2008-59, 2008-29 I. How to file my 2012 taxes for free R. How to file my 2012 taxes for free B. How to file my 2012 taxes for free 123, questions 23 through 27, available at www. How to file my 2012 taxes for free irs. How to file my 2012 taxes for free gov/irb/2008-29_IRB/ar11. How to file my 2012 taxes for free html. How to file my 2012 taxes for free Comparable contributions. How to file my 2012 taxes for free   If you decide to make contributions, you must make comparable contributions to all comparable participating employees' HSAs. How to file my 2012 taxes for free Your contributions are comparable if they are either: The same amount, or The same percentage of the annual deductible limit under the HDHP covering the employees. How to file my 2012 taxes for free The comparability rules do not apply to contributions made through a cafeteria plan. How to file my 2012 taxes for free Comparable participating employees. How to file my 2012 taxes for free   Comparable participating employees: Are covered by your HDHP and are eligible to establish an HSA, Have the same category of coverage (either self-only or family coverage), and Have the same category of employment (part-time, full-time, or former employees). How to file my 2012 taxes for free   To meet the comparability requirements for eligible employees who have not established an HSA by December 31 or have not notified you that they have an HSA, you must meet a notice requirement and a contribution requirement. How to file my 2012 taxes for free   You will meet the notice requirement if by January 15 of the following calendar year you provide a written notice to all such employees. How to file my 2012 taxes for free The notice must state that each eligible employee who, by the last day of February, establishes an HSA and notifies you that they have established an HSA will receive a comparable contribution to the HSA for the prior year. How to file my 2012 taxes for free For a sample of the notice, see Regulation 54. How to file my 2012 taxes for free 4980G-4 A-14(c). How to file my 2012 taxes for free You will meet the contribution requirement for these employees if by April 15, 2014, you contribute comparable amounts plus reasonable interest to the employee's HSA for the prior year. How to file my 2012 taxes for free Note. How to file my 2012 taxes for free For purposes of making contributions to HSAs of non-highly compensated employees, highly compensated employees shall not be treated as comparable participating employees. How to file my 2012 taxes for free Excise tax. How to file my 2012 taxes for free   If you made contributions to your employees' HSAs that were not comparable, you must pay an excise tax of 35% of the amount you contributed. How to file my 2012 taxes for free Employment taxes. How to file my 2012 taxes for free   Amounts you contribute to your employees' HSAs are generally not subject to employment taxes. How to file my 2012 taxes for free You must report the contributions in box 12 of the Form W-2 you file for each employee. How to file my 2012 taxes for free This includes the amounts the employee elected to contribute through a cafeteria plan. How to file my 2012 taxes for free Enter code “W” in box 12. How to file my 2012 taxes for free Medical Savings Accounts (MSAs) Archer MSAs were created to help self-employed individuals and employees of certain small employers meet the medical care costs of the account holder, the account holder's spouse, or the account holder's dependent(s). How to file my 2012 taxes for free After December 31, 2007, you cannot be treated as an eligible individual for Archer MSA purposes unless: You were an active participant for any tax year ending before January 1, 2008, or You became an active participant for a tax year ending after December 31, 2007, by reason of coverage under a high deductible health plan (HDHP) of an Archer MSA participating employer. How to file my 2012 taxes for free A Medicare Advantage MSA is an Archer MSA designated by Medicare to be used solely to pay the qualified medical expenses of the account holder who is eligible for Medicare. How to file my 2012 taxes for free Archer MSAs An Archer MSA is a tax-exempt trust or custodial account that you set up with a U. How to file my 2012 taxes for free S. How to file my 2012 taxes for free financial institution (such as a bank or an insurance company) in which you can save money exclusively for future medical expenses. How to file my 2012 taxes for free What are the benefits of an Archer MSA?   You may enjoy several benefits from having an Archer MSA. How to file my 2012 taxes for free You can claim a tax deduction for contributions you make even if you do not itemize your deductions on Form 1040 or Form 1040NR. How to file my 2012 taxes for free The interest or other earnings on the assets in your Archer MSA are tax free. How to file my 2012 taxes for free Distributions may be tax free if you pay qualified medical expenses. How to file my 2012 taxes for free See Qualified medical expenses , later. How to file my 2012 taxes for free The contributions remain in your Archer MSA from year to year until you use them. How to file my 2012 taxes for free An Archer MSA is “portable” so it stays with you if you change employers or leave the work force. How to file my 2012 taxes for free Qualifying for an Archer MSA To qualify for an Archer MSA, you must be either of the following. How to file my 2012 taxes for free An employee (or the spouse of an employee) of a small employer (defined later) that maintains a self-only or family HDHP for you (or your spouse). How to file my 2012 taxes for free A self-employed person (or the spouse of a self-employed person) who maintains a self-only or family HDHP. How to file my 2012 taxes for free You can have no other health or Medicare coverage except what is permitted under Other health coverage , later. How to file my 2012 taxes for free You must be an eligible individual on the first day of a given month to get an Archer MSA deduction for that month. How to file my 2012 taxes for free If another taxpayer is entitled to claim an exemption for you, you cannot claim a deduction for an Archer MSA contribution. How to file my 2012 taxes for free This is true even if the other person does not actually claim your exemption. How to file my 2012 taxes for free Small employer. How to file my 2012 taxes for free   A small employer is generally an employer who had an average of 50 or fewer employees during either of the last 2 calendar years. How to file my 2012 taxes for free The definition of small employer is modified for new employers and growing employers. How to file my 2012 taxes for free Growing employer. How to file my 2012 taxes for free   A small employer may begin HDHPs and Archer MSAs for his or her employees and then grow beyond 50 employees. How to file my 2012 taxes for free The employer will continue to meet the requirement for small employers if he or she: Had 50 or fewer employees when the Archer MSAs began, Made a contribution that was excludable or deductible as an Archer MSA for the last year he or she had 50 or fewer employees, and Had an average of 200 or fewer employees each year after 1996. How to file my 2012 taxes for free Changing employers. How to file my 2012 taxes for free   If you change employers, your Archer MSA moves with you. How to file my 2012 taxes for free However, you may not make additional contributions unless you are otherwise eligible. How to file my 2012 taxes for free High deductible health plan (HDHP). How to file my 2012 taxes for free   To be eligible for an Archer MSA, you must be covered under an HDHP. How to file my 2012 taxes for free An HDHP has: A higher annual deductible than typical health plans, and A maximum limit on the annual out-of-pocket medical expenses that you must pay for covered expenses. How to file my 2012 taxes for free Limits. How to file my 2012 taxes for free   The following table shows the limits for annual deductibles and the maximum out-of-pocket expenses for HDHPs for 2013. How to file my 2012 taxes for free   Self-only coverage Family coverage Minimum annual deductible $2,150 $4,300 Maximum annual deductible $3,200 $6,450 Maximum annual out-of-pocket expenses $4,300 $7,850 Family plans that do not meet the high deductible rules. How to file my 2012 taxes for free   There are some family plans that have deductibles for both the family as a whole and for individual family members. How to file my 2012 taxes for free Under these plans, if you meet the individual deductible for one family member, you do not have to meet the higher annual deductible amount for the family. How to file my 2012 taxes for free If either the deductible for the family as a whole or the deductible for an individual family member is less than the minimum annual deductible for family coverage, the plan does not qualify as an HDHP. How to file my 2012 taxes for free Example. How to file my 2012 taxes for free You have family health insurance coverage in 2013. How to file my 2012 taxes for free The annual deductible for the family plan is $5,500. How to file my 2012 taxes for free This plan also has an individual deductible of $2,000 for each family member. How to file my 2012 taxes for free The plan does not qualify as an HDHP because the deductible for an individual family member is less than the minimum annual deductible ($4,300) for family coverage. How to file my 2012 taxes for free Other health coverage. How to file my 2012 taxes for free   You (and your spouse, if you have family coverage) generally cannot have any other health coverage that is not an HDHP. How to file my 2012 taxes for free However, you can still be an eligible individual even if your spouse has non-HDHP coverage provided you are not covered by that plan. How to file my 2012 taxes for free However, you can have additional insurance that provides benefits only for the following items. How to file my 2012 taxes for free Liabilities incurred under workers' compensation laws, torts, or ownership or use of property. How to file my 2012 taxes for free A specific disease or illness. How to file my 2012 taxes for free A fixed amount per day (or other period) of hospitalization. How to file my 2012 taxes for free You can also have coverage (whether provided through insurance or otherwise) for the following items. How to file my 2012 taxes for free Accidents. How to file my 2012 taxes for free Disability. How to file my 2012 taxes for free Dental care. How to file my 2012 taxes for free Vision care. How to file my 2012 taxes for free Long-term care. How to file my 2012 taxes for free Contributions to an MSA Contributions to an Archer MSA must be made in cash. How to file my 2012 taxes for free You cannot contribute stock or other property to an Archer MSA. How to file my 2012 taxes for free Who can contribute to my Archer MSA?   If you are an employee, your employer may make contributions to your Archer MSA. How to file my 2012 taxes for free (You do not pay tax on these contributions. How to file my 2012 taxes for free ) If your employer does not make contributions to your Archer MSA, or you are self-employed, you can make your own contributions to your Archer MSA. How to file my 2012 taxes for free Both you and your employer cannot make contributions to your Archer MSA in the same year. How to file my 2012 taxes for free You do not have to make contributions to your Archer MSA every year. How to file my 2012 taxes for free    If your spouse is covered by your HDHP and an excludable amount is contributed by your spouse's employer to an Archer MSA belonging to your spouse, you cannot make contributions to your own Archer MSA that year. How to file my 2012 taxes for free Limits There are two limits on the amount you or your employer can contribute to your Archer MSA: The annual deductible limit. How to file my 2012 taxes for free An income limit. How to file my 2012 taxes for free Annual deductible limit. How to file my 2012 taxes for free   You (or your employer) can contribute up to 75% of the annual deductible of your HDHP (65% if you have a self-only plan) to your Archer MSA. How to file my 2012 taxes for free You must have the HDHP all year to contribute the full amount. How to file my 2012 taxes for free If you do not qualify to contribute the full amount for the year, determine your annual deductible limit by using the worksheet in the Instructions for Form 8853, Archer MSAs and Long-Term Care Insurance Contracts. How to file my 2012 taxes for free Example 1. How to file my 2012 taxes for free You have an HDHP for your family all year in 2013. How to file my 2012 taxes for free The annual deductible is $5,000. How to file my 2012 taxes for free You can contribute up to $3,750 ($5,000 × 75%) to your Archer MSA for the year. How to file my 2012 taxes for free Example 2. How to file my 2012 taxes for free You have an HDHP for your family for the entire months of July through December 2013 (6 months). How to file my 2012 taxes for free The annual deductible is $5,000. How to file my 2012 taxes for free You can contribute up to $1,875 ($5,000 × 75% ÷ 12 × 6) to your Archer MSA for the year. How to file my 2012 taxes for free If you and your spouse each have a family plan, you are treated as having family coverage with the lower annual deductible of the two health plans. How to file my 2012 taxes for free The contribution limit is split equally between you unless you agree on a different division. How to file my 2012 taxes for free Income limit. How to file my 2012 taxes for free   You cannot contribute more than you earned for the year from the employer through whom you have your HDHP. How to file my 2012 taxes for free   If you are self-employed, you cannot contribute more than your net self-employment income. How to file my 2012 taxes for free This is your income from self-employment minus expenses (including the deductible part of self-employment tax). How to file my 2012 taxes for free Example 1. How to file my 2012 taxes for free Noah Paul earned $25,000 from ABC Company in 2013. How to file my 2012 taxes for free Through ABC, he had an HDHP for his family for the entire year. How to file my 2012 taxes for free The annual deductible was $5,000. How to file my 2012 taxes for free He can contribute up to $3,750 to his Archer MSA (75% × $5,000). How to file my 2012 taxes for free He can contribute the full amount because he earned more than $3,750 at ABC. How to file my 2012 taxes for free Example 2. How to file my 2012 taxes for free Westley Lawrence is self-employed. How to file my 2012 taxes for free He had an HDHP for his family for the entire year in 2013. How to file my 2012 taxes for free The annual deductible was $5,000. How to file my 2012 taxes for free Based on the annual deductible, the maximum contribution to his Archer MSA would have been $3,750 (75% × $5,000). How to file my 2012 taxes for free However, after deducting his business expenses, Joe's net self-employment income is $2,500 for the year. How to file my 2012 taxes for free Therefore, he is limited to a contribution of $2,500. How to file my 2012 taxes for free Individuals enrolled in Medicare. How to file my 2012 taxes for free   Beginning with the first month you are enrolled in Medicare, you cannot contribute to an Archer MSA. How to file my 2012 taxes for free However, you may be eligible for a Medicare Advantage MSA, discussed later. How to file my 2012 taxes for free When To Contribute You can make contributions to your Archer MSA for 2013 until April 15, 2014. How to file my 2012 taxes for free Reporting Contributions on Your Return Report all contributions to your Archer MSA on Form 8853 and file it with your Form 1040 or Form 1040NR. How to file my 2012 taxes for free You should include all contributions you, or your employer, made for 2013, including those made by April 15, 2014, that are designated for 2013. How to file my 2012 taxes for free You should receive Form 5498-SA, HSA, Archer MSA, or Medicare Advantage MSA Information, from the trustee showing the amount you (or your employer) contributed during the year. How to file my 2012 taxes for free Your employer's contributions should be shown in box 12 of Form W-2, Wage and Tax Statement, with code R. How to file my 2012 taxes for free Follow the instructions for Form 8853 and complete the worksheet in the instructions. How to file my 2012 taxes for free Report your Archer MSA deduction on Form 1040 or Form 1040NR. How to file my 2012 taxes for free Excess contributions. How to file my 2012 taxes for free   You will have excess contributions if the contributions to your Archer MSA for the year are greater than the limits discussed earlier. How to file my 2012 taxes for free Excess contributions are not deductible. How to file my 2012 taxes for free Excess contributions made by your employer are included in your gross income. How to file my 2012 taxes for free If the excess contribution is not included in box 1 of Form W-2, you must report the excess as “Other income” on your tax return. How to file my 2012 taxes for free   Generally, you must pay a 6% excise tax on excess contributions. How to file my 2012 taxes for free See Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts, to figure the excise tax. How to file my 2012 taxes for free The excise tax applies to each tax year the excess contribution remains in the account. How to file my 2012 taxes for free   You may withdraw some or all of the excess contributions and not pay the excise tax on the amount withdrawn if you meet the following conditions. How to file my 2012 taxes for free You withdraw the excess contributions by the due date, including extensions, of your tax return. How to file my 2012 taxes for free You withdraw any income earned on the withdrawn contributions and include the earnings in “Other income” on your tax return for the year you withdraw the contributions and earnings. How to file my 2012 taxes for free Deducting an excess contribution in a later year. How to file my 2012 taxes for free   You may be able to deduct excess contributions for previous years that are still in your Archer MSA. How to file my 2012 taxes for free The excess contribution you can deduct in the current year is the lesser of the following two amounts. How to file my 2012 taxes for free Your maximum Archer MSA contribution limit for the year minus any amounts contributed to your Archer MSA for the year. How to file my 2012 taxes for free The total excess contributions in your Archer MSA at the beginning of the year. How to file my 2012 taxes for free   Any excess contributions remaining at the end of a tax year are subject to the excise tax. How to file my 2012 taxes for free See Form 5329. How to file my 2012 taxes for free Distributions From an MSA You will generally pay medical expenses during the year without being reimbursed by your HDHP until you reach the annual deductible for the plan. How to file my 2012 taxes for free When you pay medical expenses during the year that are not reimbursed by your HDHP, you can ask the trustee of your Archer MSA to send you a distribution from your Archer MSA. How to file my 2012 taxes for free You can receive tax-free distributions from your Archer MSA to pay for qualified medical expenses (discussed later). How to file my 2012 taxes for free If you receive distributions for other reasons, the amount will be subject to income tax and may be subject to an additional 20% tax as well. How to file my 2012 taxes for free You do not have to make withdrawals from your Archer MSA each year. How to file my 2012 taxes for free If you no longer qualify to make contributions, you can still receive tax-free distributions to pay or reimburse your qualified medical expenses. How to file my 2012 taxes for free A distribution is money you get from your Archer MSA. How to file my 2012 taxes for free The trustee will report any distribution to you and the IRS on Form 1099-SA, Distributions From an HSA, Archer MSA, or Medicare Advantage MSA. How to file my 2012 taxes for free Qualified medical expenses. How to file my 2012 taxes for free   Qualified medical expenses are those expenses that would generally qualify for the medical and dental expenses deduction. How to file my 2012 taxes for free These are explained in Publication 502. How to file my 2012 taxes for free   Also, non-prescription medicines (other than insulin) are not considered qualified medical expenses for MSA purposes. How to file my 2012 taxes for free A medicine or drug will be a qualified medical expense for MSA purposes only if the medicine or drug: Requires a prescription, Is available without a prescription (an over-the-counter medicine or drug) and you get a prescription for it, or Is insulin. How to file my 2012 taxes for free   Qualified medical expenses are those incurred by the following persons. How to file my 2012 taxes for free You and your spouse. How to file my 2012 taxes for free All dependents you claim on your tax return. How to file my 2012 taxes for free Any person you could have claimed as a dependent on your return except that: The person filed a joint return, The person had gross income of $3,900 or more, or You, or your spouse if filing jointly, could be claimed as a dependent on someone else's 2013 return. How to file my 2012 taxes for free    For this purpose, a child of parents that are divorced, separated, or living apart for the last 6 months of the calendar year is treated as the dependent of both parents whether or not the custodial parent releases the claim to the child's exemption. How to file my 2012 taxes for free    You cannot deduct qualified medical expenses as an itemized deduction on Schedule A (Form 1040) that are equal to the tax-free distribution from your Archer MSA. How to file my 2012 taxes for free Special rules for insurance premiums. How to file my 2012 taxes for free   Generally, you cannot treat insurance premiums as qualified medical expenses for Archer MSAs. How to file my 2012 taxes for free You can, however, treat premiums for long-term care coverage, health care coverage while you receive unemployment benefits, or health care continuation coverage required under any federal law as qualified medical expenses for Archer MSAs. How to file my 2012 taxes for free Health coverage tax credit. How to file my 2012 taxes for free   You cannot claim this credit for premiums that you pay with a tax-free distribution from your Archer MSA. How to file my 2012 taxes for free See Publication 502 for information on this credit. How to file my 2012 taxes for free Deemed distributions from Archer MSAs. How to file my 2012 taxes for free   The following situations result in deemed taxable distributions from your Archer MSA. How to file my 2012 taxes for free You engaged in any transaction prohibited by section 4975 with respect to any of your Archer MSAs at any time in 2013. How to file my 2012 taxes for free Your account ceases to be an Archer MSA as of January 1, 2013, and you must include the fair market value of all assets in the account as of January 1, 2013, on Form 8853. How to file my 2012 taxes for free You used any portion of any of your Archer MSAs as security for a loan at any time in 2013. How to file my 2012 taxes for free You must include the fair market value of the assets used as security for the loan as income on Form 1040 or Form 1040NR. How to file my 2012 taxes for free   Examples of prohibited transactions include the direct or indirect: Sale, exchange, or leasing of property between you and the Archer MSA, Lending of money between you and the Archer MSA, Furnishing goods, services, or facilities between you and the Archer MSA, and Transfer to or use by you, or for your benefit, of any assets of the Archer MSA. How to file my 2012 taxes for free   Any deemed distribution will not be treated as used to pay qualified medical expenses. How to file my 2012 taxes for free These distributions are included in your income and are subject to the additional 20% tax, discussed later. How to file my 2012 taxes for free Recordkeeping. How to file my 2012 taxes for free You must keep records sufficient to show that: The distributions were exclusively to pay or reimburse qualified medical expenses, The qualified medical expenses had not been previously paid or reimbursed from another source, and The medical expenses had not been taken as an itemized deduction in any year. How to file my 2012 taxes for free Do not send these records with your tax return. How to file my 2012 taxes for free Keep them with your tax records. How to file my 2012 taxes for free Reporting Distributions on Your Return How you report your distributions depends on whether or not you use the distribution for qualified medical expenses (defined earlier). How to file my 2012 taxes for free If you use a distribution from your Archer MSA for qualified medical expenses, you do not pay tax on the distribution but you have to report the distribution on Form 8853. How to file my 2012 taxes for free Follow the instructions for the form and file it with your Form 1040 or Form 1040NR. How to file my 2012 taxes for free If you do not use a distribution from your Archer MSA for qualified medical expenses, you must pay tax on the distribution. How to file my 2012 taxes for free Report the amount on Form 8853 and file it with your Form 1040 or Form 1040NR. How to file my 2012 taxes for free You may have to pay an additional 20% tax, discussed later, on your taxable distribution. How to file my 2012 taxes for free If an amount (other than a rollover) is contributed to your Archer MSA this year (by you or your employer), you also must report and pay tax on a distribution you receive from your Archer MSA this year that is used to pay medical expenses of someone who is not covered by an HDHP, or is also covered by another health plan that is not an HDHP, at the time the expenses are incurred. How to file my 2012 taxes for free Rollovers. How to file my 2012 taxes for free   Generally, any distribution from an Archer MSA that you roll over into another Archer MSA or an HSA is not taxable if you complete the rollover within 60 days. How to file my 2012 taxes for free An Archer MSA and an HSA can only receive one rollover contribution during a 1-year period. How to file my 2012 taxes for free See the Form 8853 instructions for more information. How to file my 2012 taxes for free Additional tax. How to file my 2012 taxes for free   There is a 20% additional tax on the part of your distributions not used for qualified medical expenses. How to file my 2012 taxes for free Figure the tax on Form 8853 and file it with your Form 1040 or Form 1040NR. How to file my 2012 taxes for free Report the additional tax in the total on Form 1040 or Form 1040NR. How to file my 2012 taxes for free Exceptions. How to file my 2012 taxes for free   There is no additional tax on distributions made after the date you are disabled, reach age 65, or die. How to file my 2012 taxes for free Balance in an Archer MSA An Archer MSA is generally exempt from tax. How to file my 2012 taxes for free You are permitted to take a distribution from your Archer MSA at any time; however, only those amounts used exclusively to pay for qualified medical expenses are tax free. How to file my 2012 taxes for free Amounts that remain at the end of the year are generally carried over to the next year (see Excess contributions , earlier). How to file my 2012 taxes for free Earnings on amounts in an Archer MSA are not included in your income while held in the Archer MSA. How to file my 2012 taxes for free Death of the Archer MSA Holder You should choose a beneficiary when you set up your Archer MSA. How to file my 2012 taxes for free What happens to that Archer MSA when you die depends on whom you designate as the beneficiary. How to file my 2012 taxes for free Spouse is the designated beneficiary. How to file my 2012 taxes for free   If your spouse is the designated beneficiary of your Archer MSA, it will be treated as your spouse's Archer MSA after your death. How to file my 2012 taxes for free Spouse is not the designated beneficiary. How to file my 2012 taxes for free   If your spouse is not the designated beneficiary of your Archer MSA: The account stops being an Archer MSA, and The fair market value of the Archer MSA becomes taxable to the beneficiary in the year in which you die. How to file my 2012 taxes for free   If your estate is the beneficiary, the fair market value of the Archer MSA will be included on your final income tax return. How to file my 2012 taxes for free The amount taxable to a beneficiary other than the estate is reduced by any qualified medical expenses for the decedent that are paid by the beneficiary within 1 year after the date of death. How to file my 2012 taxes for free Filing Form 8853 You must file Form 8853 with your Form 1040 or Form 1040NR if you (or your spouse, if married filing a joint return) had any activity in your Archer MSA during the year. How to file my 2012 taxes for free You must file the form even if only your employer or your spouse's employer made contributions to the Archer MSA. How to file my 2012 taxes for free If, during the tax year, you are the beneficiary of two or more Archer MSAs or you are a beneficiary of an Archer MSA and you have your own Archer MSA, you must complete a separate Form 8853 for each MSA. How to file my 2012 taxes for free Enter “statement” at the top of each Form 8853 and complete the form as instructed. How to file my 2012 taxes for free Next, complete a controlling Form 8853 combining the amounts shown on each of the statement Forms 8853. How to file my 2012 taxes for free Attach the statements to your tax return after the controlling Form 8853. How to file my 2012 taxes for free Employer Participation This section contains the rules that employers must follow if they decide to make Archer MSAs available to their employees. How to file my 2012 taxes for free Unlike the previous discussions, “you” refers to the employer and not to the employee. How to file my 2012 taxes for free Health plan. How to file my 2012 taxes for free   If you want your employees to be able to have an Archer MSA, you must make an HDHP available to them. How to file my 2012 taxes for free You can provide no additional coverage other than those exceptions listed previously under Other health coverage . How to file my 2012 taxes for free Contributions. How to file my 2012 taxes for free   You can make contributions to your employees' Archer MSAs. How to file my 2012 taxes for free You deduct the contributions on the “Employee benefit programs” line of your business income tax return for the year in which you make the contributions. How to file my 2012 taxes for free If you are filing Form 1040, Schedule C, this is Part II, line 14. How to file my 2012 taxes for free Comparable contributions. How to file my 2012 taxes for free   If you decide to make contributions, you must make comparable contributions to all comparable participating employees' Archer MSAs. How to file my 2012 taxes for free Your contributions are comparable if they are either: The same amount, or The same percentage of the annual deductible limit under the HDHP covering the employees. How to file my 2012 taxes for free Comparable participating employees. How to file my 2012 taxes for free   Comparable participating employees: Are covered by your HDHP and are eligible to establish an Archer MSA, Have the same category of coverage (either self-only or family coverage), and Have the same category of employment (either part-time or full-time). How to file my 2012 taxes for free Excise tax. How to file my 2012 taxes for free   If you made contributions to your employees' Archer MSAs that were not comparable, you must pay an excise tax of 35% of the amount you contributed. How to file my 2012 taxes for free Employment taxes. How to file my 2012 taxes for free   Amounts you contribute to your employees' Archer MSAs are generally not subject to employment taxes. How to file my 2012 taxes for free You must report the contributions in box 12 of the Form W-2 you file for each employee. How to file my 2012 taxes for free Enter code “R” in box 12. How to file my 2012 taxes for free Medicare Advantage MSAs A Medicare Advantage MSA is an Archer MSA designated by Medicare to be used solely to pay the qualified medical expenses of the account holder. How to file my 2012 taxes for free To be eligible for a Medicare Advantage MSA, you must be enrolled in Medicare and have a high deductible health plan (HDHP) that meets the Medicare guidelines. How to file my 2012 taxes for free A Medicare Advantage MSA is a tax-exempt trust or custodial savings account that you set up with a financial institution (such as a bank or an insurance company) in which the Medicare program can deposit money for qualified medical expenses. How to file my 2012 taxes for free The money in your account is not taxed if it is used for qualified medical expenses, and it may earn interest or dividends. How to file my 2012 taxes for free An HDHP is a special health insurance policy that has a high deductible. How to file my 2012 taxes for free You choose the policy you want to use as part of your Medicare Advantage MSA plan. How to file my 2012 taxes for free However, the policy must be approved by the Medicare program. How to file my 2012 taxes for free Medicare Advantage MSAs are administered through the federal Medicare program. How to file my 2012 taxes for free You can get information by calling 1-800-Medicare (1-800-633-4227) or through the Internet at www. How to file my 2012 taxes for free medicare. How to file my 2012 taxes for free gov. How to file my 2012 taxes for free Note. How to file my 2012 taxes for free You must file Form 8853, Archer MSAs and Long-Term Care Insurance Contracts, with your tax return if you have a Medicare Advantage MSA. How to file my 2012 taxes for free Flexible Spending Arrangements (FSAs) A health flexible spending arrangement (FSA) allows employees to be reimbursed for medical expenses. How to file my 2012 taxes for free FSAs are usually funded through voluntary salary reduction agreements with your employer. How to file my 2012 taxes for free No employment or federal income taxes are deducted from your contribution. How to file my 2012 taxes for free The employer may also contribute. How to file my 2012 taxes for free Note. How to file my 2012 taxes for free Unlike HSAs or Archer MSAs which must be reported on Form 1040 or Form 1040NR, there are no reporting requirements for FSAs on your income tax return. How to file my 2012 taxes for free For information on the interaction between a health FSA and an HSA, see Other employee health plans under Qualifying for an HSA, earlier. How to file my 2012 taxes for free What are the benefits of an FSA?   You may enjoy several benefits from having an FSA. How to file my 2012 taxes for free Contributions made by your employer can be excluded from your gross income. How to file my 2012 taxes for free No employment or federal income taxes are deducted from the contributions. How to file my 2012 taxes for free Withdrawals may be tax free if you pay qualified medical expenses. How to file my 2012 taxes for free See Qualified medical expenses , later. How to file my 2012 taxes for free You can withdraw funds from the account to pay qualified medical expenses even if you have not yet placed the funds in the account. How to file my 2012 taxes for free Qualifying for an FSA Health FSAs are employer-established benefit plans. How to file my 2012 taxes for free These may be offered in conjunction with other employer-provided benefits as part of a cafeteria plan. How to file my 2012 taxes for free Employers have complete flexibility to offer various combinations of benefits in designing their plan. How to file my 2012 taxes for free You do not have to be covered under any other health care plan to participate. How to file my 2012 taxes for free Self-employed persons are not eligible for an FSA. How to file my 2012 taxes for free Certain limitations may apply if you are a highly compensated participant or a key employee. How to file my 2012 taxes for free Contributions to an FSA You contribute to your FSA by electing an amount to be voluntarily withheld from your pay by your employer. How to file my 2012 taxes for free This is sometimes called a salary reduction agreement. How to file my 2012 taxes for free The employer may also contribute to your FSA if specified in the plan. How to file my 2012 taxes for free You do not pay federal income tax or employment taxes on the salary you contribute or the amounts your employer contributes to the FSA. How to file my 2012 taxes for free However, contributions made by your employer to provide coverage for long-term care insurance must be included in income. How to file my 2012 taxes for free When To Contribute At the
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Tax Information for Bond Professionals

IRS Revises Form for Tax-Exempt Bonds
IR-2005-12– The IRS today released a revised form used by municipalities and other issuers of tax-exempt bonds to make arbitrage related payments.

Circular 230 Tax Professionals
The Office of Professional Responsibility (OPR) establishes and enforces consistent standards of competence, integrity and conduct for tax professionals enrolled agents, attorneys, CPAs, and other individuals and groups covered by Circular 230.

Index of Applicable Federal Rates (AFRs)
Each month, the IRS provides various prescribed rates for federal income tax purposes. These rates, known as Applicable Federal Rates, or AFRs, are regularly published as Revenue Rulings. The Revenue Rulings containing current and recent-past AFRs are available here in Adobe PDF format.

TEB CPE Texts
A series of articles published by the Service as the Tax Exempt Bonds Continuing Professional Education Technical Instruction Program.

Page Last Reviewed or Updated: 19-Feb-2014

The How To File My 2012 Taxes For Free

How to file my 2012 taxes for free Publication 51 - Main Content Table of Contents 1. How to file my 2012 taxes for free Taxpayer Identification NumbersWhen you receive your EIN. How to file my 2012 taxes for free Registering for SSNVS. How to file my 2012 taxes for free 2. How to file my 2012 taxes for free Who Are Employees?Crew Leaders Business Owned and Operated by Spouses 3. How to file my 2012 taxes for free Wages and Other Compensation 4. How to file my 2012 taxes for free Social Security and Medicare TaxesThe $150 Test or the $2,500 Test Social Security and Medicare Tax Withholding 5. How to file my 2012 taxes for free Federal Income Tax WithholdingImplementation of lock-in letter. How to file my 2012 taxes for free Seasonal employees and employees not currently performing services. How to file my 2012 taxes for free Termination and re-hire of employees. How to file my 2012 taxes for free How To Figure Federal Income Tax Withholding 6. How to file my 2012 taxes for free Required Notice to Employees About Earned Income Credit (EIC) 7. How to file my 2012 taxes for free Depositing TaxesWhen To Deposit How To Deposit Deposit Penalties Employers of Both Farm and Nonfarm Workers 8. How to file my 2012 taxes for free Form 943 9. How to file my 2012 taxes for free Reporting Adjustments on Form 943Current Year Adjustments Prior Year Adjustments 10. How to file my 2012 taxes for free Federal Unemployment (FUTA) Tax 11. How to file my 2012 taxes for free Reconciling Wage Reporting Forms 13. How to file my 2012 taxes for free Federal Income Tax Withholding MethodsWage Bracket Method Percentage Method Alternative Methods of Federal Income Tax Withholding How To Get Tax Help 1. How to file my 2012 taxes for free Taxpayer Identification Numbers If you are required to withhold any federal income, social security, or Medicare taxes, you will need an employer identification number (EIN) for yourself. How to file my 2012 taxes for free Also, you will need the SSN of each employee and the name of each employee as shown on the employee's social security card. How to file my 2012 taxes for free Employer identification number (EIN). How to file my 2012 taxes for free   An employer identification number (EIN) is a nine-digit number that the IRS issues. How to file my 2012 taxes for free The digits are arranged as follows: 00-0000000. How to file my 2012 taxes for free It is used to identify the tax accounts of employers and certain others who have no employees. How to file my 2012 taxes for free Use your EIN on all of the items that you send to the IRS and SSA. How to file my 2012 taxes for free   If you do not have an EIN, you may apply for one online. How to file my 2012 taxes for free Visit IRS. How to file my 2012 taxes for free gov and click on the Apply for an EIN Online link under Tools. How to file my 2012 taxes for free 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. How to file my 2012 taxes for free Do not use a SSN in place of an EIN. How to file my 2012 taxes for free   If you do not have an EIN by the time a return is due, write “Applied For” and the date you applied for it in the space shown for the number. How to file my 2012 taxes for free If you took over another employer's business, do not use that employer's EIN. How to file my 2012 taxes for free   You should have only one EIN. How to file my 2012 taxes for free If you have more than one, and are not sure which one to use, call the toll-free Business and Specialty Tax Line at 1-800-829-4933 or 1-800-829-4059 (TDD/TTY for persons who are deaf, hard of hearing, or have a speech disability). How to file my 2012 taxes for free Provide the EINs that you have, the name and address to which each number was assigned, and the address of your principal place of business. How to file my 2012 taxes for free The IRS will tell you which EIN to use. How to file my 2012 taxes for free   For more information, see Publication 1635 or Publication 583. How to file my 2012 taxes for free When you receive your EIN. How to file my 2012 taxes for free   If you are a new employer that indicated a federal tax obligation when requesting an EIN, you will be pre-enrolled in the Electronic Federal Tax Payment System (EFTPS). How to file my 2012 taxes for free You will receive information in your Employer Identification Number (EIN) Package about Express Enrollment and an additional mailing containing your EFTPS personal identification number (PIN) and instructions for activating your PIN. How to file my 2012 taxes for free Call the toll-free number located in your “How to Activate Your Enrollment” brochure to activate your enrollment and begin making your employment tax deposits. How to file my 2012 taxes for free 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. How to file my 2012 taxes for free Social security number (SSN). How to file my 2012 taxes for free   An employee's social security number (SSN) consists of nine digits arranged as follows: 000-00-0000. How to file my 2012 taxes for free You must obtain each employee's name and SSN as shown on the employee's social security card because you must enter them on Form W-2. How to file my 2012 taxes for free Do not accept a social security card that says “Not valid for employment. How to file my 2012 taxes for free ” A social security number issued with this legend does not permit employment. How to file my 2012 taxes for free You may, but are not required to, photocopy the social security card if the employee provides it. How to file my 2012 taxes for free If you do not show the employee's correct name and SSN on Form W-2, you may owe a penalty unless you have reasonable cause. How to file my 2012 taxes for free See Publication 1586, Reasonable Cause Regulations & Requirements for Missing and Incorrect Name/TINs. How to file my 2012 taxes for free Applying for a social security card. How to file my 2012 taxes for free   Any employee who is legally eligible to work in the United States and does not have a social security card can get one by completing Form SS-5, Application for a Social Security Card, and submitting the necessary documentation to SSA. How to file my 2012 taxes for free You can get Form SS-5 at SSA offices, by calling 1-800-772-1213 or 1-800-325-0778 (TTY), or from the SSA website at www. How to file my 2012 taxes for free socialsecurity. How to file my 2012 taxes for free gov/online/ss-5. How to file my 2012 taxes for free html. How to file my 2012 taxes for free The employee must complete and sign Form SS-5; it cannot be filed by the employer. How to file my 2012 taxes for free 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. How to file my 2012 taxes for free Applying for a social security number. How to file my 2012 taxes for free   If you file Form W-2 on paper and your employee has applied for an SSN but does not have one when you must file Form W-2, enter “Applied For” on the form. How to file my 2012 taxes for free If you are filing electronically, enter all zeros (000-00-0000) in the social security number field. How to file my 2012 taxes for free When the employee receives the SSN, file Copy A of Form W-2c, Corrected Wage and Tax Statement, with the SSA to show the employee's SSN. How to file my 2012 taxes for free Furnish Copies B, C, and 2 of Form W-2c to the employee. How to file my 2012 taxes for free Up to 25 Forms W-2c per Form W-3c, Transmittal of Corrected Wage and Tax Statements, may be filed per session over the Internet, with no limit on the number of sessions. How to file my 2012 taxes for free For more information, visit SSA's Employer W-2 Filing Instructions & Information webpage at www. How to file my 2012 taxes for free socialsecurity. How to file my 2012 taxes for free gov/employer. How to file my 2012 taxes for free Advise your employee to correct the SSN on his or her original Form W-2. How to file my 2012 taxes for free Correctly record the employee's name and SSN. How to file my 2012 taxes for free   Record the name and number of each employee as they are shown on the employee's social security card. How to file my 2012 taxes for free If the employee's 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. How to file my 2012 taxes for free Continue to report the employee's wages under the old name until the employee shows you an updated social security card with the new name. How to file my 2012 taxes for free   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-2. How to file my 2012 taxes for free 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. How to file my 2012 taxes for free IRS individual taxpayer identification numbers (ITINs) for aliens. How to file my 2012 taxes for free   Do not accept an ITIN in place of an SSN for employee identification or for work. How to file my 2012 taxes for free An ITIN is issued for use by resident and nonresident aliens who need identification for tax purposes, but who are not eligible for U. How to file my 2012 taxes for free S. How to file my 2012 taxes for free employment. How to file my 2012 taxes for free The ITIN is a nine-digit number formatted like an SSN (for example, NNN-NN-NNNN). How to file my 2012 taxes for free However, it begins with the number “9” and has either a “7” or “8” as the fourth digit (for example, 9NN-7N-NNNN or 9NN-8N-NNNN). How to file my 2012 taxes for free    An individual with an ITIN who later becomes eligible to work in the United States must obtain an SSN. How to file my 2012 taxes for free If the individual is currently eligible to work in the United States, instruct the individual to apply for an SSN and follow the instructions under Applying for a social security number, earlier in this section. How to file my 2012 taxes for free Do not use an ITIN in place of an SSN on Form W-2. How to file my 2012 taxes for free Verification of social security numbers. How to file my 2012 taxes for free   Employers and authorized reporting agents can use the Social Security Number Verification Service (SSNVS) to instantly verify up to 10 employee names and SSNs (per screen) at a time, or submit an electronic file of up to 250,000 names and SSNs and usually receive results the next business day. How to file my 2012 taxes for free Visit www. How to file my 2012 taxes for free socialsecurity. How to file my 2012 taxes for free gov/employer/ssnv. How to file my 2012 taxes for free htm for more information. How to file my 2012 taxes for free Registering for SSNVS. How to file my 2012 taxes for free   You must register online and receive authorization from your employer to use SSNVS. How to file my 2012 taxes for free To register, visit SSA's website at www. How to file my 2012 taxes for free socialsecurity. How to file my 2012 taxes for free gov/employer and click on the Business Services Online link. How to file my 2012 taxes for free Follow the registration instructions to obtain a user identification (ID) and password. How to file my 2012 taxes for free You will need to provide the following information about yourself and your company. How to file my 2012 taxes for free Name. How to file my 2012 taxes for free SSN. How to file my 2012 taxes for free Date of birth. How to file my 2012 taxes for free Type of employer. How to file my 2012 taxes for free EIN. How to file my 2012 taxes for free Company name, address, and telephone number. How to file my 2012 taxes for free Email address. How to file my 2012 taxes for free When you have completed the online registration process, SSA will mail a one-time activation code to your employer. How to file my 2012 taxes for free You must enter the activation code online to use SSNVS. How to file my 2012 taxes for free 2. How to file my 2012 taxes for free Who Are Employees? Generally, employees are defined either under common law or under statutes for certain situations. How to file my 2012 taxes for free See Publication 15-A for details on statutory employees and nonemployees. How to file my 2012 taxes for free Employee status under common law. How to file my 2012 taxes for free   Generally, a worker who performs services for you is your employee if you have the right to control what will be done and how it will be done. How to file my 2012 taxes for free This is so even when you give the employee freedom of action. How to file my 2012 taxes for free What matters is that you have the right to control the details of how the services are performed. How to file my 2012 taxes for free See Publication 15-A for more information on how to determine whether an individual providing services is an independent contractor or an employee. How to file my 2012 taxes for free If an employer-employee relationship exists, it does not matter what it is called. How to file my 2012 taxes for free The employee may be called an agent or independent contractor. How to file my 2012 taxes for free It also does not matter how payments are measured or paid, what they are called, or if the employee works full or part time. How to file my 2012 taxes for free You are responsible for withholding and paying employment taxes for your employees. How to file my 2012 taxes for free You are also required to file employment tax returns. How to file my 2012 taxes for free These requirements do not apply to amounts that you pay to independent contractors. How to file my 2012 taxes for free The rules discussed in this publication apply only to workers who are your employees. How to file my 2012 taxes for free 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. How to file my 2012 taxes for free 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. How to file my 2012 taxes for free 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. How to file my 2012 taxes for free The table in section 12, How Do Employment Taxes Apply to Farmwork , distinguishes between farm and nonfarm activities, and also addresses rules that apply in special situations. How to file my 2012 taxes for free Crew Leaders If you are a crew leader, you are an employer of farmworkers. How to file my 2012 taxes for free 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. How to file my 2012 taxes for free 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. How to file my 2012 taxes for free For FUTA tax rules, see section 10. How to file my 2012 taxes for free Business Owned and Operated by Spouses If you and your spouse jointly own and operate a farm or nonfarm business and share in the profits and losses, you are partners in a partnership, whether or not you have a formal partnership agreement. How to file my 2012 taxes for free See Publication 541, Partnerships, for more details. How to file my 2012 taxes for free The partnership is considered the employer of any employees, and is liable for any employment taxes due on wages paid to its employees. How to file my 2012 taxes for free Exception—Qualified joint venture. How to file my 2012 taxes for free   For tax years beginning after December 31, 2006, the Small Business and Work Opportunity Tax Act of 2007 (Public Law 110-28) provides that a “qualified joint venture,” whose only members are spouses filing a joint income tax return, can elect not to be treated as a partnership for federal tax purposes. How to file my 2012 taxes for free A qualified joint venture conducts a trade or business where: The only members of the joint venture are spouses who file a joint income tax return, Both spouses materially participate (see Material participation in the Instructions for Schedule C (Form 1040), line G) in the trade or business (mere joint ownership of property is not enough), Both spouses elect to not be treated as a partnership, and The business is co-owned by both spouses and is not held in the name of a state law entity such as a partnership or limited liability company (LLC). How to file my 2012 taxes for free   To make the election, all items of income, gain, loss, deduction, and credit must be divided between the spouses, in accordance with each spouse's interest in the venture, and reported on separate Schedules C or F as sole proprietors. How to file my 2012 taxes for free Each spouse must also file a separate Schedule SE to pay self-employment taxes, as applicable. How to file my 2012 taxes for free   Spouses using the qualified joint venture rules are treated as sole proprietors for federal tax purposes and generally do not need an EIN. How to file my 2012 taxes for free If employment taxes are owed by the qualified joint venture, either spouse may report and pay the employment taxes due on the wages paid to the employees using the EIN of that spouse's sole proprietorship. How to file my 2012 taxes for free Generally, filing as a qualified joint venture will not increase the spouses' total tax owed on the joint income tax return. How to file my 2012 taxes for free However, it gives each spouse credit for social security earnings on which retirement benefits are based and for Medicare coverage without filing a partnership return. How to file my 2012 taxes for free    Note. How to file my 2012 taxes for free If your spouse is your employee, not your partner, you must pay social security and Medicare taxes for him or her. How to file my 2012 taxes for free   For more information on qualified joint ventures, visit IRS. How to file my 2012 taxes for free gov and enter “qualified joint venture” in the search box. How to file my 2012 taxes for free Exception—Community income. How to file my 2012 taxes for free   If you and your spouse wholly own an unincorporated business as community property under the community property laws of a state, foreign country, or U. How to file my 2012 taxes for free S. How to file my 2012 taxes for free possession, you can treat the business either as a sole proprietorship (of the spouse who carried on the business) or a partnership. How to file my 2012 taxes for free You may still make an election to be taxed as a qualified joint venture instead of a partnership. How to file my 2012 taxes for free See Exception—Qualified joint venture , earlier in this section. How to file my 2012 taxes for free 3. How to file my 2012 taxes for free Wages and Other Compensation Cash wages that you pay to employees for farmwork are generally subject to social security tax and Medicare tax. How to file my 2012 taxes for free You may also be required to withhold, deposit, and report Additional Medicare Tax. How to file my 2012 taxes for free See section 4 for more information. How to file my 2012 taxes for free If the wages are subject to social security and Medicare taxes, they are also subject to federal income tax withholding. How to file my 2012 taxes for free You may also be liable for FUTA tax, which is not withheld by you or paid by the employee. How to file my 2012 taxes for free FUTA tax is discussed in section 10. How to file my 2012 taxes for free Cash wages include checks, money orders, etc. How to file my 2012 taxes for free Do not count as cash wages the value of food, lodging, and other noncash items. How to file my 2012 taxes for free For more information on what payments are considered taxable wages, see Publication 15 (Circular E). How to file my 2012 taxes for free Commodity wages. How to file my 2012 taxes for free   Commodity wages are not cash and are not subject to social security and Medicare taxes or federal income tax withholding. How to file my 2012 taxes for free However, noncash payments, including commodity wages, are treated as cash wages (see above) if the substance of the transaction is a cash payment. How to file my 2012 taxes for free These noncash payments are subject to social security and Medicare taxes and federal income tax withholding. How to file my 2012 taxes for free Other compensation. How to file my 2012 taxes for free   Publications 15-A and 15-B discuss other forms of compensation that may be taxable. How to file my 2012 taxes for free Family members. How to file my 2012 taxes for free   Generally, the wages that you pay to family members who are your employees are subject to social security and Medicare taxes, federal income tax withholding, and FUTA tax. How to file my 2012 taxes for free However, certain exemptions may apply for your child, spouse, or parent. How to file my 2012 taxes for free See the table, How Do Employment Taxes Apply to Farmwork , in section 12. How to file my 2012 taxes for free Household employees. How to file my 2012 taxes for free   The wages of an employee who performs household services, such as a maid, babysitter, gardener, or cook, in your home are not subject to social security and Medicare taxes if you pay that employee cash wages of less than $1,900 in 2014. How to file my 2012 taxes for free   Social security and Medicare taxes do not apply to cash wages for housework in your private home if it was done by your spouse or your child under age 21. How to file my 2012 taxes for free Nor do the taxes apply to housework done by your parent unless: You have a child living in your home who is under age 18 or has a physical or mental condition that requires care by an adult for at least 4 continuous weeks in a calendar quarter, and You are a widow or widower, or divorced and not remarried, or have a spouse in the home who, because of a physical or mental condition, cannot care for your child for at least 4 continuous weeks in the quarter. How to file my 2012 taxes for free   For more information, see Publication 926, Household Employer's Tax Guide. How to file my 2012 taxes for free    Wages for household work may not be a deductible farm expense. How to file my 2012 taxes for free See Publication 225, Farmer's Tax Guide. How to file my 2012 taxes for free Share farmers. How to file my 2012 taxes for free   You do not have to withhold or pay social security and Medicare taxes on amounts paid to share farmers under share-farming arrangements. How to file my 2012 taxes for free Compensation paid to H-2A visa holders. How to file my 2012 taxes for free   Report compensation of $600 or more paid to foreign agricultural workers who entered the country on H-2A visas in box 1 of Form W-2 but do not report it as social security wages (box 3) or Medicare wages (box 5) on Form W-2 because compensation paid to H-2A workers for agricultural labor performed in connection with this visa is not subject to social security and Medicare taxes. How to file my 2012 taxes for free On Form W-2, do not check box 13 (Statutory employee), as H-2A workers are not statutory employees. How to file my 2012 taxes for free   An employer is not required to withhold federal income tax from compensation it pays an H-2A worker for agricultural labor performed in connection with this visa unless the worker asks for withholding and the employer agrees. How to file my 2012 taxes for free In that case, the worker must give the employer a completed Form W-4. How to file my 2012 taxes for free Federal income tax withheld should be reported in box 2 of Form W-2. How to file my 2012 taxes for free These reporting rules apply when the H-2A worker provides his or her taxpayer identification number (TIN) to the employer. How to file my 2012 taxes for free For rules relating to backup withholding and reporting when the H-2A worker does not provide a TIN, see the Instructions for Form 1099-MISC and the Instructions for Form 945. How to file my 2012 taxes for free 4. How to file my 2012 taxes for free Social Security and Medicare Taxes Generally, you must withhold social security and Medicare taxes on all cash wage payments that you make to your employees. How to file my 2012 taxes for free You may also be required to withhold Additional Medicare Tax. How to file my 2012 taxes for free For more information, see Additional Medicare Tax withholding , later. How to file my 2012 taxes for free The $150 Test or the $2,500 Test All cash wages that you pay to an employee during the year for farmwork are subject to social security and Medicare taxes and federal income tax withholding if either of the two tests below is met. How to file my 2012 taxes for free You pay cash wages to an employee of $150 or more in a year for farmwork (count all cash wages paid on a time, piecework, or other basis). How to file my 2012 taxes for free The $150 test applies separately to each farmworker that you employ. How to file my 2012 taxes for free If you employ a family of workers, each member is treated separately. How to file my 2012 taxes for free Do not count wages paid by other employers. How to file my 2012 taxes for free The total that you pay for farmwork (cash and noncash) to all your employees is $2,500 or more during the year. How to file my 2012 taxes for free Exceptions. How to file my 2012 taxes for free   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, or federal income tax withholding, 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 permanent home to the farm, and Had been employed in agriculture less than 13 weeks in the preceding calendar year. How to file my 2012 taxes for free   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. How to file my 2012 taxes for free Social Security and Medicare Tax Withholding The social security tax rate is 6. How to file my 2012 taxes for free 2%, for both the employee and employer, on the first $117,000 paid to each employee. How to file my 2012 taxes for free You must withhold at this rate from each employee and pay a matching amount. How to file my 2012 taxes for free The Medicare tax rate is 1. How to file my 2012 taxes for free 45% each for the employee and employer on all wages. How to file my 2012 taxes for free You must withhold at this rate from each employee and pay a matching amount. How to file my 2012 taxes for free There is no wage base limit for Medicare tax; all covered wages are subject to Medicare tax. How to file my 2012 taxes for free Social security and Medicare taxes apply to most payments of sick pay, including payments made by third parties such as insurance companies. How to file my 2012 taxes for free For details, see Publication 15-A. How to file my 2012 taxes for free Additional Medicare Tax withholding. How to file my 2012 taxes for free   In addition to withholding Medicare tax at 1. How to file my 2012 taxes for free 45%, you must withhold a 0. How to file my 2012 taxes for free 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. How to file my 2012 taxes for free 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. How to file my 2012 taxes for free Additional Medicare Tax is only imposed on the employee. How to file my 2012 taxes for free There is no employer share of Additional Medicare Tax. How to file my 2012 taxes for free 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. How to file my 2012 taxes for free   For more information on what wages are subject to Medicare tax, see the chart, Special Rules for Various Types of Services and Payments, in section 15 of Publication 15 (Circular E). How to file my 2012 taxes for free For more information on Additional Medicare Tax, visit IRS. How to file my 2012 taxes for free gov and enter “Additional Medicare Tax” in the search box. How to file my 2012 taxes for free Employee share paid by employer. How to file my 2012 taxes for free   If you would rather pay a household or agricultural employee's share of the social security and Medicare taxes without withholding them from his or her wages, you may do so. How to file my 2012 taxes for free If you do not withhold the taxes, however, you must still pay them. How to file my 2012 taxes for free Any employee social security and Medicare taxes that you pay is additional income to the employee. How to file my 2012 taxes for free Include it in box 1 of the employee's Form W-2, but do not count it as social security and Medicare wages and do not include it in boxes 3 and 5. How to file my 2012 taxes for free Also, do not count the additional income as wages for FUTA tax purposes. How to file my 2012 taxes for free Different rules apply to employer payments of social security and Medicare taxes for non-household and non-agricultural employees. How to file my 2012 taxes for free See section 7 of Publication 15-A. How to file my 2012 taxes for free Withholding social security and Medicare taxes on nonresident alien employees. How to file my 2012 taxes for free   In general, if you pay wages to nonresident alien employees, you must withhold social security and Medicare taxes as you would for a U. How to file my 2012 taxes for free S. How to file my 2012 taxes for free citizen or resident alien. How to file my 2012 taxes for free However, see Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities, for exceptions to this general rule. How to file my 2012 taxes for free Also see Compensation paid to H-2A visa holders in section 3. How to file my 2012 taxes for free Religious exemption. How to file my 2012 taxes for free    An exemption from social security and Medicare taxes is available to members of a recognized religious sect opposed to public insurance. How to file my 2012 taxes for free This exemption is available only if both the employee and the employer are members of the sect. How to file my 2012 taxes for free   For more information, see Publication 517, Social Security and Other Information for Members of the Clergy and Religious Workers. How to file my 2012 taxes for free 5. How to file my 2012 taxes for free Federal Income Tax Withholding Farmers and crew leaders must withhold federal income tax from the wages of farmworkers if the wages are subject to social security and Medicare taxes. How to file my 2012 taxes for free The amount to withhold is figured on gross wages before taking out social security and Medicare taxes, union dues, insurance, etc. How to file my 2012 taxes for free You may use one of several methods to determine the amount of federal income tax withholding. How to file my 2012 taxes for free They are discussed in section 13. How to file my 2012 taxes for free Form W-4. How to file my 2012 taxes for free   To know how much federal income tax to withhold from employees' wages, you should have a Form W-4 on file for each employee. How to file my 2012 taxes for free Encourage your employees to file an updated Form W-4 for 2014, especially if they owed taxes or received a large refund when filing their 2013 tax return. How to file my 2012 taxes for free Advise your employees to use the IRS Withholding Calculator on the IRS website at www. How to file my 2012 taxes for free irs. How to file my 2012 taxes for free gov/individuals for help in determining how many withholding allowances to claim on their Form W-4. How to file my 2012 taxes for free   Ask each new employee to give you a signed Form W-4 when starting work. How to file my 2012 taxes for free Make the form effective with the first wage payment. How to file my 2012 taxes for free If a new employee does not give you a completed Form W-4, withhold tax as if he or she is single, with no withholding allowances. How to file my 2012 taxes for free Forms in Spanish. How to file my 2012 taxes for free   You can provide Formulario W-4(SP) in place of Form W-4 to your Spanish-speaking employees. How to file my 2012 taxes for free For more information, see Publicación 17(SP). How to file my 2012 taxes for free Effective date of Form W-4. How to file my 2012 taxes for free   A Form W-4 remains in effect until the employee gives you a new one. How to file my 2012 taxes for free When you receive a new Form W-4, do not adjust withholding for pay periods before the effective date of the new form. How to file my 2012 taxes for free Do not adjust withholding retroactively. How to file my 2012 taxes for free If an employee gives you a replacement Form W-4, begin withholding no later than the start of the first payroll period ending on or after the 30th day from the date when you received the replacement Form W-4. How to file my 2012 taxes for free For exceptions, see Exemption from federal income tax withholding , IRS review of requested Forms W-4 , and Invalid Forms W-4 , later in this section. How to file my 2012 taxes for free A Form W-4 that makes a change for the next calendar year will not take effect in the current calendar year. How to file my 2012 taxes for free Completing Form W-4. How to file my 2012 taxes for free   The amount of federal income tax withholding is based on marital status and withholding allowances. How to file my 2012 taxes for free Your employees may not base their withholding amounts on a fixed dollar amount or percentage. How to file my 2012 taxes for free However, the employee may specify a dollar amount to be withheld in addition to the amount of withholding based on filing status and withholding allowances claimed on Form W-4. How to file my 2012 taxes for free   Employees may claim fewer withholding allowances than they are entitled to claim. How to file my 2012 taxes for free They may do this to ensure that they have enough withholding or to offset other sources of taxable income that are not subject to withholding. How to file my 2012 taxes for free   See Publication 505, Tax Withholding and Estimated Tax, for more information about completing Form W-4. How to file my 2012 taxes for free Along with Form W-4, you may wish to order Publication 505 for use by your employees. How to file my 2012 taxes for free    Do not accept any withholding or estimated tax payments from your employees in addition to withholding based on their Form W-4. How to file my 2012 taxes for free If an employee wants additional withholding, he or she should submit a new Form W-4 and, if necessary, pay estimated tax by filing Form 1040-ES, Estimated Tax for Individuals, or by using the Electronic Federal Tax Payment System (EFTPS) to make estimated tax payments. How to file my 2012 taxes for free Exemption from federal income tax withholding. How to file my 2012 taxes for free   Generally, an employee may claim exemption from federal income tax withholding because he or she had no federal income tax liability last year and expects none this year. How to file my 2012 taxes for free See the Form W-4 instructions for more information. How to file my 2012 taxes for free However, the wages are still subject to social security and Medicare taxes. How to file my 2012 taxes for free   A Form W-4 claiming exemption from withholding is effective when it is filed with the employer and only for that calendar year. How to file my 2012 taxes for free To continue to be exempt from withholding in the next calendar year, an employee must give you a new Form W-4 by February 15. How to file my 2012 taxes for free If the employee does not give you a new Form W-4 by February 15, withhold tax based on the last valid Form W-4 you have for the employee that did not claim an exemption from withholding or, if one does not exist, withhold as if he or she is single with zero withholding allowances. How to file my 2012 taxes for free If the employee provides a new Form W-4 claiming an exemption from withholding on February 16 or later, you may apply the exemption to future wages, but do not refund taxes withheld while the exempt status was not in place. How to file my 2012 taxes for free Withholding income taxes on the wages of nonresident alien employees. How to file my 2012 taxes for free   In general, you must withhold federal income taxes on the wages of nonresident alien employees. How to file my 2012 taxes for free However, see Publication 515 for exceptions to this general rule. How to file my 2012 taxes for free Also see Compensation paid to H-2A visa workers in section 3. How to file my 2012 taxes for free Withholding adjustment for nonresident alien employees. How to file my 2012 taxes for free   A special procedure applies for figuring the amount of income tax to withhold from wages of nonresident alien employees performing services within the United States for wages paid in 2014. How to file my 2012 taxes for free This procedure requires a special chart to be used with the withholding tables to determine the amount to withhold from the wages of the nonresident alien employee. How to file my 2012 taxes for free See Withholding adjustment for nonresident alien employees in section 9 of Publication 15 (Circular E). How to file my 2012 taxes for free Nonresident alien employee's Form W-4. How to file my 2012 taxes for free   When completing Forms W-4, nonresident aliens are required to: Not claim exemption from income tax withholding; Request withholding as if they are single, regardless of their actual marital status; Claim only one allowance (if the nonresident alien is a resident of Canada, Mexico, or Korea, he or she may claim more than one allowance); and Write “Nonresident Alien” or “NRA” above the dotted line on line 6 of Form W-4. How to file my 2012 taxes for free   If you maintain an electronic Form W-4 system, you should provide a field for nonresident alien employees to enter nonresident alien status in lieu of writing “Nonresident Alien” or “NRA” above the dotted line on line 6. How to file my 2012 taxes for free    A nonresident alien employee may request additional withholding at his or her option for other purposes, although such additions should not be necessary for withholding to cover federal income tax liability related to employment. How to file my 2012 taxes for free Form 8233. How to file my 2012 taxes for free   If a nonresident alien employee claims a tax treaty exemption from withholding, the employee must submit Form 8233, Exemption from Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual, with respect to the income exempt under the treaty, instead of Form W-4. How to file my 2012 taxes for free See Publication 515 for details. How to file my 2012 taxes for free IRS review of requested Forms W-4. How to file my 2012 taxes for free   When requested by the IRS, you must make original Forms W-4 available for inspection by an IRS employee. How to file my 2012 taxes for free You may also be directed to send certain Forms W-4 to the IRS. How to file my 2012 taxes for free You may receive a notice from the IRS requiring you to submit a copy of Form W-4 for one or more of your named employees. How to file my 2012 taxes for free Send the requested copy or copies of Form W-4 to the IRS at the address provided and in the manner directed by the notice. How to file my 2012 taxes for free The IRS may also require you to submit copies of Form W-4 to the IRS as directed by a revenue procedure or notice published in the Internal Revenue Bulletin. How to file my 2012 taxes for free When we refer to Form W-4, the same rules apply to Formulario W-4(SP), its Spanish translation. How to file my 2012 taxes for free   After submitting a copy of the requested Form W-4 to the IRS, continue to withhold federal income tax based on that Form W-4 if it is valid (see Invalid Forms W-4 , later in this section). How to file my 2012 taxes for free However, if the IRS later notifies you in writing that the employee is not entitled to claim a complete exemption from withholding or more than the maximum number of withholding allowances specified by the IRS in the written notice, withhold federal income tax based on the effective date, marital status, and maximum number of withholding allowances specified in the notice (commonly referred to as a “lock-in letter”). How to file my 2012 taxes for free Initial lock-in letter. How to file my 2012 taxes for free   The IRS uses information reported on Form W-2 to identify employees with withholding compliance problems. How to file my 2012 taxes for free In some cases, where a serious under-withholding problem is found to exist for a particular employee, the IRS may issue a lock-in letter to the employer specifying the maximum number of withholding allowances and marital status permitted for a specific employee. How to file my 2012 taxes for free You will also receive a copy for the employee that identifies the maximum number of withholding allowances permitted and the process by which the employee can provide additional information to the IRS for purposes of determining the appropriate number of withholding allowances. How to file my 2012 taxes for free If the employee is employed by you as of the date of the notice, you must furnish the employee copy to the employee within 10 business days of receipt. How to file my 2012 taxes for free You may follow any reasonable business practice to furnish the employee copy to the employee. How to file my 2012 taxes for free Implementation of lock-in letter. How to file my 2012 taxes for free   When you receive the notice specifying the maximum number of withholding allowances and marital status permitted, you may not withhold immediately on the basis of the notice. How to file my 2012 taxes for free You must begin withholding tax on the basis of the notice for any wages paid after the date specified in the notice. How to file my 2012 taxes for free The delay between your receipt of the notice and the date to begin the withholding on the basis of the notice permits the employee to contact the IRS. How to file my 2012 taxes for free Seasonal employees and employees not currently performing services. How to file my 2012 taxes for free   If you receive a notice for an employee who is not currently performing services for you, you are still required to furnish the employee copy to the employee and withhold based on the notice if any of the following apply. How to file my 2012 taxes for free You are paying wages for the employee's prior services and the wages are subject to income tax withholding on or after the date specified in the notice. How to file my 2012 taxes for free You reasonably expect the employee to resume services within 12 months of the date of the notice. How to file my 2012 taxes for free The employee is on a bona fide leave of absence that does not exceed 12 months or the employee has a right to reemployment after the leave of absence. How to file my 2012 taxes for free Termination and re-hire of employees. How to file my 2012 taxes for free   If you are required to furnish and withhold based on the notice and the employment relationship is terminated after the date of the notice, you must continue to withhold based on the notice if you continue to pay any wages subject to income tax withholding. How to file my 2012 taxes for free You must also withhold based on the notice or modification notice (explained next) if the employee resumes the employment relationship with you within 12 months after the termination of the employment relationship. How to file my 2012 taxes for free Modification notice. How to file my 2012 taxes for free   After issuing the notice specifying the maximum number of withholding allowances and marital status permitted, the IRS may issue a subsequent notice (modification notice) that modifies the original notice. How to file my 2012 taxes for free The modification notice may change the marital status and/or the number of withholding allowances permitted. How to file my 2012 taxes for free You must withhold federal income tax based on the effective date specified in the modification notice. How to file my 2012 taxes for free New Form W-4 after IRS notice. How to file my 2012 taxes for free   After the IRS issues a notice or modification notice, if the employee provides you with a new Form W-4 claiming complete exemption from withholding or claims a marital status, a number of withholding allowances, and any additional withholding that results in less withholding than would result under the IRS notice or modification notice, you must disregard the new Form W-4. How to file my 2012 taxes for free You are required to withhold on the basis of the notice or modification notice unless the IRS subsequently notifies you to withhold based on the new Form W-4. How to file my 2012 taxes for free If the employee wants to put a new Form W-4 into effect that results in less withholding than required, the employee must contact the IRS. How to file my 2012 taxes for free   If, after you receive an IRS notice or modification notice, your employee provides you with a new Form W-4 that does not claim exemption from federal income tax withholding and claims a marital status, a number of withholding allowances, and any additional withholding that results in more withholding than would result under the notice or modification notice, you must withhold tax on the basis of that new Form W-4. How to file my 2012 taxes for free Otherwise, disregard any subsequent Forms W-4 provided by the employee and withhold based on the IRS notice or modification notice. How to file my 2012 taxes for free Substitute Forms W-4. How to file my 2012 taxes for free   You are encouraged to have your employees use the official version of Form W-4 to claim withholding allowances or exemption from withholding. How to file my 2012 taxes for free Call the IRS at 1-800-TAX-FORM (1-800-829-3676) or visit IRS. How to file my 2012 taxes for free gov to obtain copies of Form W-4. How to file my 2012 taxes for free   You may use a substitute version of Form W-4 to meet your business needs. How to file my 2012 taxes for free However, your substitute Form W-4 must contain language that is identical to the official Form W-4 and your form must meet all current IRS rules for substitute forms. How to file my 2012 taxes for free At the time that you provide your substitute form to the employee, you must provide him or her with all tables, instructions, and worksheets from the current Form W-4. How to file my 2012 taxes for free   You cannot accept a substitute Form W-4 developed by an employee, and the employee submitting such form will be treated as failing to furnish a Form W-4. How to file my 2012 taxes for free However, continue to use any valid Forms W-4 developed by your employees that you accepted before October 11, 2007. How to file my 2012 taxes for free Invalid Forms W-4. How to file my 2012 taxes for free   Any unauthorized change or addition to Form W-4 makes it invalid. How to file my 2012 taxes for free This includes taking out any language by which the employee certifies that the form is correct. How to file my 2012 taxes for free A Form W-4 is also invalid if, by the date an employee gives it to you, he or she indicates in any way that it is false. How to file my 2012 taxes for free An employee who submits a false Form W-4 may be subject to a $500 penalty. How to file my 2012 taxes for free You may treat a Form W-4 as invalid if the employee wrote “exempt” on line 7 and also entered a number on line 5 or an amount on line 6. How to file my 2012 taxes for free   When you get an invalid Form W-4, do not use it to figure federal income tax withholding. How to file my 2012 taxes for free Tell the employee that it is invalid and ask for another one. How to file my 2012 taxes for free If the employee does not give you a valid one, withhold taxes as if the employee was single and claiming no withholding allowances. How to file my 2012 taxes for free However, if you have an earlier Form W-4 for this worker that is valid, withhold as you did before. How to file my 2012 taxes for free   For additional information about these rules, see Treasury Decision 9337, 2007-35 I. How to file my 2012 taxes for free R. How to file my 2012 taxes for free B. How to file my 2012 taxes for free 455, available at www. How to file my 2012 taxes for free irs. How to file my 2012 taxes for free gov/irb/2007-35_IRB/ar10. How to file my 2012 taxes for free html. How to file my 2012 taxes for free Amounts exempt from levy on wages, salary, and other income. How to file my 2012 taxes for free   If you receive a Notice of Levy on Wages, Salary, and Other Income—Forms 668-W(ACS), 668-W(c)(DO), or 668-W(ICS), you must withhold amounts as described in the instructions for these forms. How to file my 2012 taxes for free Publication 1494, Tables for Figuring Amount Exempt From Levy on Wages, Salary, and Other Income—Forms 668-W(ACS), 668-W(c)(DO), and 668-W(ICS), shows the exempt amount. How to file my 2012 taxes for free If a levy issued in a prior year is still in effect and the taxpayer submits a new Statement of Exemptions and Filing Status, use the current year Publication 1494 to compute the exempt amount. How to file my 2012 taxes for free How To Figure Federal Income Tax Withholding There are several ways to figure federal income tax withholding. How to file my 2012 taxes for free Wage bracket tables. How to file my 2012 taxes for free See section 13 for directions on how to use the tables. How to file my 2012 taxes for free Percentage method. How to file my 2012 taxes for free See section 13 for directions on how to use the percentage method. How to file my 2012 taxes for free Alternative formula tables for percentage method withholding. How to file my 2012 taxes for free See Publication 15-A. How to file my 2012 taxes for free Wage bracket percentage method withholding tables. How to file my 2012 taxes for free See Publication 15-A. How to file my 2012 taxes for free Other alternative methods. How to file my 2012 taxes for free See Publication 15-A. How to file my 2012 taxes for free Employers with automated payroll systems will find the two alternative formula tables and the two alternative wage bracket percentage method tables in Publication 15-A useful. How to file my 2012 taxes for free If an employee wants additional federal tax withheld, have the employee show the extra amount on Form W-4. How to file my 2012 taxes for free Supplemental wages. How to file my 2012 taxes for free   Supplemental wages are wage payments to an employee that are not regular wages. How to file my 2012 taxes for free They include, but are not limited to, bonuses, commissions, overtime pay, accumulated sick leave, severance pay, awards, prizes, back pay and retroactive pay increases for current employees, and payments for nondeductible moving expenses. How to file my 2012 taxes for free Other payments subject to the supplemental wage rules include taxable fringe benefits and expense allowances paid under a nonaccountable plan. How to file my 2012 taxes for free   If you pay supplemental wages with regular wages but do not specify the amount of each, withhold federal income tax as if the total was a single payment for a regular payroll period. How to file my 2012 taxes for free   If you pay supplemental wages separately (or combine them in a single payment and specify the amount of each), the federal income tax withholding method depends partly on whether you withhold federal income tax from your employee's regular wages. How to file my 2012 taxes for free If you withheld federal income tax from an employee's regular wages in the current or immediately preceding calendar year, you can use one of the following methods for the supplemental wages. How to file my 2012 taxes for free Withhold a flat 25% (no other percentage allowed). How to file my 2012 taxes for free If the supplemental wages are paid concurrently with regular wages, add the supplemental wages to the concurrently paid regular wages. How to file my 2012 taxes for free If there are no concurrently paid regular wages, add the supplemental wages to alternatively, either the regular wages paid or to be paid for the current payroll period or the regular wages paid for the preceding payroll period. How to file my 2012 taxes for free Figure the income tax withholding as if the total of the regular wages and supplemental wages is a single payment. How to file my 2012 taxes for free Subtract the tax withheld from the regular wages. How to file my 2012 taxes for free Withhold the remaining tax from the supplemental wages. How to file my 2012 taxes for free If there were other payments of supplemental wages paid during the payroll period made before the current payment of supplemental wages, aggregate all the payments of supplemental wages paid during the payroll period with the regular wages paid during the payroll period, calculate the tax on the total, subtract the tax already withheld from the regular wages and previous supplemental wage payments, and withhold the remaining tax from the current payment of supplemental wages. How to file my 2012 taxes for free If you did not withhold federal income tax from the employee's regular wages in the current or immediately preceding calendar year, use method 1-b above. How to file my 2012 taxes for free This would occur, for example, when the value of the employee's withholding allowances claimed on Form W-4 is more than the wages. How to file my 2012 taxes for free    Separate rules apply to any supplemental wages exceeding $1 million that you pay to an individual during the year. How to file my 2012 taxes for free See section 7 in Publication 15 (Circular E) for details. How to file my 2012 taxes for free   Regardless of the method that you use to withhold federal income tax on supplemental wages, they are generally subject to social security, Medicare, and FUTA taxes. How to file my 2012 taxes for free 6. How to file my 2012 taxes for free Required Notice to Employees About Earned Income Credit (EIC) You must notify employees who have no federal income tax withheld that they may be able to claim a tax refund because of the EIC. How to file my 2012 taxes for free Although you do not have to notify employees who claim exemption from withholding on Form W-4 about the EIC, you are encouraged to notify any employees whose wages for 2013 were less than $46,227 ($51,567 if married filing jointly) that they may be eligible to claim the credit for 2013. How to file my 2012 taxes for free This is because eligible employees may get a refund of the amount of EIC that is more than the tax that they owe. How to file my 2012 taxes for free You will meet the notification requirement if you issue to the employee Form W-2 with the EIC notice on the back of Copy B, or a substitute Form W-2 with the same statement. How to file my 2012 taxes for free You may also meet the requirement by providing Notice 797, Possible Federal Tax Refund Due to the Earned Income Credit (EIC), or your own statement that contains the same wording. How to file my 2012 taxes for free If a substitute Form W-2 is given to the employee on time but does not have the required statement, you must notify the employee within 1 week of the date that the substitute Form W-2 is given. How to file my 2012 taxes for free If Form W-2 is required but is not given on time, you must give the employee Notice 797 or your written statement by the date that Form W-2 is required to be given. How to file my 2012 taxes for free If Form W-2 is not required, you must notify the employee by February 7, 2014. How to file my 2012 taxes for free 7. How to file my 2012 taxes for free Depositing Taxes Generally, you must deposit both the employer and employee shares of social security and Medicare taxes and federal income tax withheld. How to file my 2012 taxes for free You must use electronic funds transfer to make all federal tax deposits. How to file my 2012 taxes for free See How To Deposit , later in this section. How to file my 2012 taxes for free The credit against employment taxes for COBRA premium assistance payments is treated as a deposit of taxes on the first day of your return period. How to file my 2012 taxes for free For more information, see COBRA premium assistance credit under Introduction. How to file my 2012 taxes for free Payment with return. How to file my 2012 taxes for free   You may make payments with Forms 943 or 945 instead of depositing if one of the following applies. How to file my 2012 taxes for free You report less than a $2,500 tax liability for the year (Form 943, line 11; Form 945, line 3) and you pay in full with a return that is filed on time. How to file my 2012 taxes for free However, if you are unsure that you will report less than $2,500, deposit under the rules explained in this section so that you will not be subject to failure-to-deposit penalties. How to file my 2012 taxes for free You are a monthly schedule depositor and make a payment in accordance with the Accuracy of Deposits Rule discussed later in this section. How to file my 2012 taxes for free This payment may be $2,500 or more. How to file my 2012 taxes for free Only monthly schedule depositors, defined later, are allowed to make an Accuracy of Deposits Rule payment with the return. How to file my 2012 taxes for free Semiweekly schedule depositors must timely deposit the amount. How to file my 2012 taxes for free See Accuracy of Deposits Rule and How To Deposit, later in this section. How to file my 2012 taxes for free When To Deposit If you employ both farm and nonfarm workers, do not combine the taxes reportable on Forms 941 or 944 with Form 943 to decide whether to make a deposit. How to file my 2012 taxes for free See Employers of Both Farm and Nonfarm Workers, later in this section. How to file my 2012 taxes for free The rules for determining when to deposit Form 943 taxes are discussed below. How to file my 2012 taxes for free See section 10 for the separate rules that apply to FUTA tax. How to file my 2012 taxes for free Under these rules, you are classified as either a monthly schedule depositor or a semiweekly schedule depositor. How to file my 2012 taxes for free The terms “monthly schedule depositor” and “semiweekly schedule depositor” do not refer to how often your business pays its employees or how often you are required to make deposits. How to file my 2012 taxes for free The terms identify which set of rules you must follow when you incur a tax liability (for example, when you have a payday). How to file my 2012 taxes for free The deposit schedule that you must use for a calendar year is determined from the tax liability reported on your Form 943, line 9, for the lookback period, discussed next. How to file my 2012 taxes for free If you reported $50,000 or less of Form 943 taxes for the lookback period, you are a monthly schedule depositor. How to file my 2012 taxes for free If you reported more than $50,000 of Form 943 taxes for the lookback period, you are a semiweekly schedule depositor. How to file my 2012 taxes for free Lookback period. How to file my 2012 taxes for free   The lookback period is the second calendar year preceding the current calendar year. How to file my 2012 taxes for free For example, the lookback period for 2014 is 2012. How to file my 2012 taxes for free Example of deposit schedule based on lookback period. How to file my 2012 taxes for free Rose Co. How to file my 2012 taxes for free reported taxes on Form 943 as follows. How to file my 2012 taxes for free 2012 — $48,000 2013 — $60,000 Rose Co. How to file my 2012 taxes for free is a monthly schedule depositor for 2014 because its taxes for the lookback period ($48,000 for calendar year 2012) were not more than $50,000. How to file my 2012 taxes for free However, for 2015, Rose Co. How to file my 2012 taxes for free is a semiweekly schedule depositor because the total taxes before adjustment for its lookback period ($60,000 for calendar year 2013) exceeded $50,000. How to file my 2012 taxes for free Adjustments to lookback period taxes. How to file my 2012 taxes for free   To determine your taxes for the lookback period, use only the tax that you reported on the original return (Form 943, line 9). How to file my 2012 taxes for free Do not include adjustments shown on Form 943-X, Adjusted Employer's Annual Federal Tax Return for Agricultural Employees or Claim for Refund. How to file my 2012 taxes for free Example of adjustments. How to file my 2012 taxes for free An employer originally reported total tax of $45,000 for the lookback period in 2012. How to file my 2012 taxes for free The employer discovered during March 2014 that the tax reported for the lookback period was understated by $10,000 and corrected this error by filing Form 943-X. How to file my 2012 taxes for free The total tax reported in the lookback period is still $45,000. How to file my 2012 taxes for free The $10,000 adjustment is also not treated as part of the 2014 taxes. How to file my 2012 taxes for free Deposit period. How to file my 2012 taxes for free   The term “deposit period” refers to the period during which tax liabilities are accumulated for each required deposit due date. How to file my 2012 taxes for free For monthly schedule depositors, the deposit period is a calendar month. How to file my 2012 taxes for free The deposit periods for semiweekly schedule depositors are Wednesday through Friday and Saturday through Tuesday. How to file my 2012 taxes for free Monthly Deposit Schedule If the tax liability reported on Form 943, line 9, for the lookback period is $50,000 or less, you are a monthly schedule depositor for the current year. How to file my 2012 taxes for free You must deposit Form 943 taxes on payments made during a calendar month by the 15th day of the following month. How to file my 2012 taxes for free Monthly schedule example. How to file my 2012 taxes for free   Red Co. How to file my 2012 taxes for free is a seasonal employer and a monthly schedule depositor. How to file my 2012 taxes for free It pays wages each Friday. How to file my 2012 taxes for free It paid wages during August 2014, but did not pay any wages during September. How to file my 2012 taxes for free Red Co. How to file my 2012 taxes for free must deposit the combined tax liabilities for the August paydays by September 15. How to file my 2012 taxes for free Red Co. How to file my 2012 taxes for free does not have a deposit requirement for September (that is, due by October 15, 2014) because no wages were paid in September; therefore, it did not have a tax liability for September. How to file my 2012 taxes for free New employers. How to file my 2012 taxes for free   For agricultural employers, your tax liability for any year in the lookback period before the date you started or acquired your business is considered to be zero. How to file my 2012 taxes for free Therefore, you are a monthly schedule depositor for the first and second calendar years of your agricultural business (but see the $100,000 Next-Day Deposit Rule , later in this section). How to file my 2012 taxes for free Semiweekly Deposit Schedule You are a semiweekly schedule depositor for a calendar year if the tax liability on Form 943, line 9, during your lookback period was more than $50,000. How to file my 2012 taxes for free Under the semiweekly deposit schedule, deposit Form 943 taxes for payments made on Wednesday, Thursday, and/or Friday by the following Wednesday. How to file my 2012 taxes for free Deposit amounts accumulated for payments made on Saturday, Sunday, Monday, and/or Tuesday by the following Friday. How to file my 2012 taxes for free Semiweekly depositors are 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. How to file my 2012 taxes for free 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 by the following Wednesday. How to file my 2012 taxes for free If you made no additional payments on Saturday through Tuesday, no deposit is due on Friday. How to file my 2012 taxes for free Semiweekly schedule depositors must complete Form 943-A, Agricultural Employer's Record of Federal Tax Liability, and submit it with Form 943. How to file my 2012 taxes for free Semiweekly Deposit Schedule IF the payday falls on a. How to file my 2012 taxes for free . How to file my 2012 taxes for free . How to file my 2012 taxes for free THEN deposit taxes by the following. How to file my 2012 taxes for free . How to file my 2012 taxes for free . How to file my 2012 taxes for free Wednesday, Thursday, and/or Friday Wednesday Saturday, Sunday, Monday, and/or Tuesday Friday Semiweekly schedule example. How to file my 2012 taxes for free   Green, Inc. How to file my 2012 taxes for free , is a semiweekly schedule depositor and pays wages once each month on the last Friday of the month. How to file my 2012 taxes for free Green, Inc. How to file my 2012 taxes for free , will deposit only once a month, but the deposit will be made under the semiweekly deposit schedule as follows. How to file my 2012 taxes for free Green, Inc. How to file my 2012 taxes for free 's tax liability for the April 25, 2014 (Friday), wage payment must be deposited by April 30, 2014 (Wednesday). How to file my 2012 taxes for free Semiweekly deposit period spanning two quarters. How to file my 2012 taxes for free   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. How to file my 2012 taxes for free For example, 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. How to file my 2012 taxes for free Both deposits will be due Friday, April 4, 2014 (3 business days from the end of the semiweekly deposit period). How to file my 2012 taxes for free Deposits on Business Days Only If a deposit is required to be made 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. How to file my 2012 taxes for free A business day is any day other than a Saturday, Sunday, or legal holiday. How to file my 2012 taxes for free For example, if a deposit is required to be made on Friday and Friday is a legal holiday, the deposit is considered timely if it is made by the following Monday (if Monday is a business day). How to file my 2012 taxes for free Semiweekly schedule depositors   will always have 3 business days to make a deposit. How to file my 2012 taxes for free That is, 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 deposit. How to file my 2012 taxes for free For example, if a semiweekly schedule depositor accumulated taxes 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). How to file my 2012 taxes for free Legal holiday. How to file my 2012 taxes for free   The term “legal holiday” means any legal holiday in the District of Columbia. How to file my 2012 taxes for free Legal holidays for 2014 are listed below. How to file my 2012 taxes for free January 1— New Year's Day January 20— Birthday of Martin Luther King, Jr. How to file my 2012 taxes for free 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 $100,000 Next-Day Deposit Rule If you accumulate $100,000 or more of Form 943 taxes (that is, taxes reported on Form 943, line 11) on any day during a deposit period, you must deposit the tax by the close of the next business day, whether you are a monthly or a semiweekly schedule depositor. How to file my 2012 taxes for free For purposes of the $100,000 rule, do not continue accumulating a tax liability after the end of a deposit period. How to file my 2012 taxes for free For example, if a semiweekly schedule depositor has accumulated a liability of $95,000 on a Tuesday (of a Saturday-through-Tuesday deposit period) and accumulated a $10,000 liability on Wednesday, the $100,000 next-day deposit rule does not apply because the $10,000 is accumulated in the next deposit period. How to file my 2012 taxes for free Thus, $95,000 must be deposited by Friday and $10,000 must be deposited by the following Wednesday. How to file my 2012 taxes for free 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. How to file my 2012 taxes for free For example, Fir Co. How to file my 2012 taxes for free is a semiweekly schedule depositor. How to file my 2012 taxes for free On Monday, Fir Co. How to file my 2012 taxes for free accumulates taxes of $110,000 and must deposit this amount on Tuesday, the next business day. How to file my 2012 taxes for free On Tuesday, Fir Co. How to file my 2012 taxes for free accumulates additional taxes of $30,000. How to file my 2012 taxes for free Because the $30,000 is not added to the previous $110,000 and is less than $100,000, Fir Co. How to file my 2012 taxes for free does not have to deposit the $30,000 until Friday (following the semiweekly deposit schedule). How to file my 2012 taxes for free If you are a monthly schedule depositor and you accumulate a $100,000 tax liability on any day, you become a semiweekly schedule depositor on the next day and remain so for at least the rest of the calendar year and for the following calendar year. How to file my 2012 taxes for free Example of the $100,000 next-day deposit rule. How to file my 2012 taxes for free   Elm, Inc. How to file my 2012 taxes for free , started its business on May 1, 2014. How to file my 2012 taxes for free Because Elm, Inc. How to file my 2012 taxes for free , is a new employer, the taxes for its lookback period are considered to be zero; therefore, Elm, Inc. How to file my 2012 taxes for free , is a monthly schedule depositor. How to file my 2012 taxes for free On May 8, Elm, Inc. How to file my 2012 taxes for free , paid wages for the first time and accumulated taxes of $50,000. How to file my 2012 taxes for free On May 9 (Friday), Elm, Inc. How to file my 2012 taxes for free , paid wages and accumulated taxes of $60,000, for a total of $110,000. How to file my 2012 taxes for free Because Elm, Inc. How to file my 2012 taxes for free , accumulated $110,000 on May 9, it must deposit $110,000 by May 12 (Monday), the next business day. How to file my 2012 taxes for free Elm, Inc. How to file my 2012 taxes for free , became a semiweekly schedule depositor on May 10. How to file my 2012 taxes for free It will be a semiweekly schedule depositor for the remainder of 2014 and for 2015. How to file my 2012 taxes for free Accuracy of Deposits Rule You are required to deposit 100% of your tax liability on or before the deposit due date. How to file my 2012 taxes for free However, penalties will not be applied for depositing less than 100% if both of the following conditions are met. How to file my 2012 taxes for free Any deposit shortfall does not exceed the greater of $100 or 2% of the amount of taxes otherwise required to be deposited. How to file my 2012 taxes for free The deposit shortfall is paid or deposited by the shortfall makeup date as described below. How to file my 2012 taxes for free Makeup Date for Deposit Shortfall:    Monthly Schedule Depositor—Deposit the shortfall or pay it with your return by the due date of your Form 943. How to file my 2012 taxes for free You may pay the shortfall with your Form 943 even if the amount is $2,500 or more. How to file my 2012 taxes for free Semiweekly Schedule Depositor—Deposit by the earlier of (a) the first Wednesday or Friday (whichever comes first) that falls on or after the 15th of the month following the month in which the shortfall occurred, or (b) the due date for Form 943. How to file my 2012 taxes for free For example, if a semiweekly schedule depositor has a deposit shortfall during February 2014, the shortfall makeup date is March 19, 2014 (Wednesday). How to file my 2012 taxes for free How To Deposit You must deposit employment taxes by electronic funds transfer. How to file my 2012 taxes for free See Payment with return , earlier in this section, for exceptions explaining when taxes may be paid with the tax return instead of being deposited. How to file my 2012 taxes for free Electronic deposit requirement. How to file my 2012 taxes for free   You must use electronic funds transfer to make all federal tax deposits (such as deposits of employment tax, excise tax, and corporate income tax). How to file my 2012 taxes for free Generally, electronic funds transfers are made using the Electronic Federal Tax Payment System (EFTPS). How to file my 2012 taxes for free 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. How to file my 2012 taxes for free   EFTPS is a free service provided by the Department of Treasury. How to file my 2012 taxes for free To get more information or to enroll in EFTPS, call 1-800-555-4477 (business), 1-800-316-6541 (individual), or 1-800-733-4829 (TDD). How to file my 2012 taxes for free You can also visit the EFTPS website at www. How to file my 2012 taxes for free eftps. How to file my 2012 taxes for free gov. How to file my 2012 taxes for free Additional information about EFTPS is also available in Publication 966. How to file my 2012 taxes for free New employers that have a federal tax obligation will be pre-enrolled in EFTPS. How to file my 2012 taxes for free Call the toll-free number located in your Employer Identification Number (EIN) Package to activate your enrollment and begin making your tax deposit payments. How to file my 2012 taxes for free See When you receive your EIN in section 1 for more information. How to file my 2012 taxes for free Deposit record. How to file my 2012 taxes for free   For your records, an Electronic Funds Transfer (EFT) Trace Number will be provided with each successful payment. How to file my 2012 taxes for free The number can be used as a receipt or to trace the payment. How to file my 2012 taxes for free Depositing on time. How to file my 2012 taxes for free   For deposits made by EFTPS to be on time, you must initiate the deposit by 8 p. How to file my 2012 taxes for free m. How to file my 2012 taxes for free Eastern time the day before the date a deposit is due. How to file my 2012 taxes for free If you use a third party to make a deposit on your behalf, they may have different cutoff times. How to file my 2012 taxes for free Same-day payment option. How to file my 2012 taxes for free   If you fail to initiate a deposit transaction on EFTPS by 8 p. How to file my 2012 taxes for free m. How to file my 2012 taxes for free 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). How to file my 2012 taxes for free To use the same-day payment method, you will need to make arrangements with your financial institution ahead of time. How to file my 2012 taxes for free Please check with your financial institution regarding availability, deadlines, and costs. How to file my 2012 taxes for free Your financial institution may charge you a fee for payments made this way. How to file my 2012 taxes for free To learn more about the information you will need to provide to your financial institution to make a same-day wire payment, visit www. How to file my 2012 taxes for free eftps. How to file my 2012 taxes for free gov to download the Same-Day Payment Worksheet. How to file my 2012 taxes for free Deposit Penalties Penalties may apply if you do not make required deposits on time or if you make deposits for less than the required amount. How to file my 2012 taxes for free 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. How to file my 2012 taxes for free IRS may also waive deposit 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. How to file my 2012 taxes for free For amounts not properly deposited or not deposited on time, the penalty rates are shown next. How to file my 2012 taxes for free Penalty Charged for. How to file my 2012 taxes for free . How to file my 2012 taxes for free . How to file my 2012 taxes for free 2% Deposits made 1 to 5 days late. How to file my 2012 taxes for free 5% Deposits made 6 to 15 days late. How to file my 2012 taxes for free 10% Deposits made 16 or more days late. How to file my 2012 taxes for free Also applies to amounts paid within 10 days of the date of the first notice the IRS sent asking for the tax due. How to file my 2012 taxes for free 10% Amounts (that should have been deposited) paid directly to the IRS or paid with your tax return. How to file my 2012 taxes for free See Payment with return , earlier in this section, for exceptions. How to file my 2012 taxes for free 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. How to file my 2012 taxes for free Late deposit penalty amounts are determined using calendar days, starting from the due date of the liability. How to file my 2012 taxes for free Order in which deposits are applied. How to file my 2012 taxes for free   Deposits generally are applied to the most recent tax liability within the year. How to file my 2012 taxes for free If you receive a failure-to-deposit penalty notice, you may designate how your deposits are 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. How to file my 2012 taxes for free Follow the instructions on the penalty notice that you received. How to file my 2012 taxes for free For examples on how the IRS will apply deposits and more information on designating deposits, see Revenue Procedure 2001-58. How to file my 2012 taxes for free You can find Revenue Procedure 2001-58 on page 579 of Internal Revenue Bulletin 2001-50 at www. How to file my 2012 taxes for free irs. How to file my 2012 taxes for free gov/pub/irs-irbs/irb01-50. How to file my 2012 taxes for free pdf. How to file my 2012 taxes for free Example. How to file my 2012 taxes for free Cedar, Inc. How to file my 2012 taxes for free , is required to make a deposit of $1,000 on July 15 and $1,500 on August 15. How to file my 2012 taxes for free It does not make the deposit on July 15. How to file my 2012 taxes for free On August 15, Cedar, Inc. How to file my 2012 taxes for free , deposits $2,000. How to file my 2012 taxes for free 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. How to file my 2012 taxes for free Accordingly, $500 of the July 15 liability remains undeposited. How to file my 2012 taxes for free The penalty on this underdeposit will apply as explained above. How to file my 2012 taxes for free Trust fund recovery penalty. How to file my 2012 taxes for free   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. How to file my 2012 taxes for free The penalty is the full amount of the unpaid trust fund tax. How to file my 2012 taxes for free This penalty may apply to you if these unpaid taxes cannot be immediately collected from the employer or business. How to file my 2012 taxes for free   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. How to file my 2012 taxes for free   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. How to file my 2012 taxes for free A responsible person also may include one who signs checks for the business or otherwise has authority to cause the spending of business funds. How to file my 2012 taxes for free    Willfully means voluntarily, consciously, and intentionally. How to file my 2012 taxes for free A responsible person acts willfully if the person knows that 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. How to file my 2012 taxes for free “Average” failure-to-deposit penalty. How to file my 2012 taxes for free   IRS may assess an “averaged” failure-to-deposit penalty of 2% to 10% if you are a monthly schedule depositor and did not properly complete Form 943, line 17, when your tax liability shown on Form 943, line 11, was $2,500 or more. How to file my 2012 taxes for free IRS may also assess this penalty of 2% to 10% if you are a semiweekly schedule depositor and your tax liability shown on Form 943, line 11, was $2,500 or more and you did any of the following. How to file my 2012 taxes for free Completed Form 943, line 17, instead of Form 943-A. How to file my 2012 taxes for free Failed to attach a properly completed Form 943-A. How to file my 2012 taxes for free Completed Form 943-A incorrectly, for example, by entering tax deposits instead of tax liabilities in the numbered spaces. How to file my 2012 taxes for free   IRS figures the penalty by allocating your tax liability on Form 943, line 11, equally throughout the tax period. How to file my 2012 taxes for free Your deposits and payments may not be counted as timely because IRS does not know the actual dates of your tax liabilities. How to file my 2012 taxes for free   You can avoid the penalty by reviewing your return before filing it. How to file my 2012 taxes for free Follow these steps before filing your Form 943. How to file my 2012 taxes for free If you are a monthly schedule depositor, report your tax liabilities (not your deposits) in the monthly entry spaces on Form 943, line 17. How to file my 2012 taxes for free If you are a semiweekly schedule depositor, report your tax liabilities (not your deposits) on Form 943-A in the lines that represent the dates you paid your employees. How to file my 2012 taxes for free Verify that your total liability shown on Form 943, line 17, or Form 943-A, line M, equals your tax liability shown on Form 943, line 11. How to file my 2012 taxes for free Do not show negative amounts on Form 943, line 17, or Form 943-A. How to file my 2012 taxes for free For prior period errors discovered after December 31, 2008, do not adjust your tax liabilities reported on Form 943, line 17, or on Form 943-A. How to file my 2012 taxes for free 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 and 944 taxes). How to file my 2012 taxes for free Form 943 taxes and Form 941/944 taxes are not combined for purposes of applying any of the deposit schedule rules. How to file my 2012 taxes for free If a deposit is due, deposi