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

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

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

3. E-File for FREE

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

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

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

I Need To Amend My Taxes

Income Tax Form 1040State Tax Filing RequirementsCan I Amend My 2010 Tax ReturnIrs EfileWhere Can I File My 2012 Taxes OnlineHow To Do Amended Tax Return1040ez Form20122011 Tax FilingGet Pin Number 2011 TaxesInstructions For Filing An Amended Tax ReturnFile 2009 Taxes TurbotaxTaxact 2008 Free DownloadFile 1040ez For FreeAmend 2011 Tax Return OnlineWhere To File A 1040x1040x IrsTax Planning Us 1040aTax Amendments 2013 14It 1040ezFiling 2006 TaxesIrs 1040ez 2013E File State Tax For Free2012 Tax Forms 1040File State And Federal Taxes Free2010 Tax ReturnIrs Tax 1040ezStudent Tax ReturnState Tax Return Only1040ez InstuctionsFile A 1040x Online For FreeIrsfreetaxTax Extension 20111040ez 2013 FormCan I Efile My 2011 TaxesHow Do I File A 1040xI Need To File 2011 Tax ReturnH&r Block Online Tax ReturnFree E-file 2012 TaxesFile Taxes Online For FreeFederal Income Tax Table

I Need To Amend My Taxes

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

FAQs on New Payment Card Reporting Requirements

By law, reporting began in early 2012 for payment card and third-party network transactions that occurred in 2011. Details on the reporting requirements are in these FAQs.

General FAQs on Payment Card and Third Party Network Transactions

Payment Card Transactions FAQs

Third Party Network Transactions FAQs

Page Last Reviewed or Updated: 20-Mar-2014

The I Need To Amend My Taxes

I need to amend my taxes Publication 517 - Main Content Table of Contents Social Security CoverageCoverage of Members of the Clergy Coverage of Religious Workers (Church Employees) U. I need to amend my taxes S. I need to amend my taxes Citizens and Resident and Nonresident Aliens Ministerial ServicesMinisters Members of Religious Orders Christian Science Practitioners and Readers Exemption From Self-Employment (SE) TaxMembers of the Clergy Members of Recognized Religious Sects Self-Employment Tax: Figuring Net EarningsRegular Method Nonfarm Optional Method Income Tax: Income and ExpensesIncome Items Expense Items Income Tax Withholding and Estimated Tax Filing Your Return Retirement Savings ArrangementsDeducting contributions to tax-sheltered annuity plans. I need to amend my taxes Full-time student. I need to amend my taxes Adjusted gross income. I need to amend my taxes More information. I need to amend my taxes Earned Income Credit Comprehensive ExampleForm W-2 From Church Form W-2 From College Schedule C-EZ (Form 1040) Form 2106-EZ Schedule A (Form 1040) Schedule SE (Form 1040) Form 1040 Attachment 1 Attachment 2 How To Get Tax HelpLow Income Taxpayer Clinics Social Security Coverage This section gives information about which system (SECA or FICA) is used to collect social security and Medicare taxes from members of the clergy (ministers, members of a religious order, and Christian Science practitioners and readers) and religious workers (church employees). I need to amend my taxes Coverage of Members of the Clergy The services you perform in the exercise of your ministry, of the duties required by your religious order, or of your profession as a Christian Science practitioner or reader are covered by social security and Medicare under SECA. I need to amend my taxes Your earnings for these ministerial services (defined later) are subject to self-employment (SE) tax unless one of the following applies. I need to amend my taxes You are a member of a religious order who has taken a vow of poverty. I need to amend my taxes You ask the Internal Revenue Service (IRS) for an exemption from SE tax for your services and the IRS approves your request. I need to amend my taxes See Exemption From Self-Employment (SE) Tax , later. I need to amend my taxes You are subject only to the social security laws of a foreign country under the provisions of a social security agreement between the United States and that country. I need to amend my taxes For more information, see Bilateral Social Security (Totalization) Agreements in Publication 54. I need to amend my taxes Your earnings that are not from ministerial services may be subject to social security tax under FICA or SECA according to the rules that apply to taxpayers in general. I need to amend my taxes See Ministerial Services , later. I need to amend my taxes Ministers If you are a minister of a church, your earnings for the services you perform in your capacity as a minister are subject to SE tax, even if you perform these services as an employee of that church. I need to amend my taxes However, you can request that the IRS grant you an exemption, as discussed under Exemption From Self-Employment (SE) Tax , later. I need to amend my taxes For the specific services covered, see Ministerial Services , later. I need to amend my taxes Ministers defined. I need to amend my taxes   Ministers are individuals who are duly ordained, commissioned, or licensed by a religious body constituting a church or church denomination. I need to amend my taxes Ministers have the authority to conduct religious worship, perform sacerdotal functions, and administer ordinances or sacraments according to the prescribed tenets and practices of that church or denomination. I need to amend my taxes   If a church or denomination ordains some ministers and licenses or commissions others, anyone licensed or commissioned must be able to perform substantially all the religious functions of an ordained minister to be treated as a minister for social security purposes. I need to amend my taxes Employment status for other tax purposes. I need to amend my taxes   Even though all of your income from performing ministerial services is subject to self-employment tax for social security tax purposes, you may be an employee for income tax or retirement plan purposes in performing those same services. I need to amend my taxes For income tax or retirement plan purposes, your income earned as an employee will be considered wages. I need to amend my taxes Common-law employee. I need to amend my taxes   Under common-law rules, you are considered either an employee or a self-employed person. I need to amend my taxes Generally, you are an employee if you perform services for someone who has the legal right to control both what you do and how you do it, even if you have considerable discretion and freedom of action. I need to amend my taxes For more information about the common-law rules, see Publication 15-A, Employer's Supplemental Tax Guide. I need to amend my taxes   If a congregation employs you and pays you a salary, you are generally a common-law employee and income from the exercise of your ministry is wages for income tax purposes. I need to amend my taxes However, amounts received directly from members of the congregation, such as fees for performing marriages, baptisms, or other personal services, are not wages; such amounts are self-employment income for both income tax purposes and social security tax purposes. I need to amend my taxes Example. I need to amend my taxes A church hires and pays you a salary to perform ministerial services subject to its control. I need to amend my taxes Under the common-law rules, you are an employee of the church while performing those services. I need to amend my taxes Form SS-8. I need to amend my taxes   If you are not certain whether you are an employee or a self-employed person, you can get a determination from the IRS by filing Form SS-8. I need to amend my taxes Members of Religious Orders If you are a member of a religious order who has not taken a vow of poverty, your earnings for ministerial services you perform as a member of the order are subject to SE tax. I need to amend my taxes See Ministerial Services , later. I need to amend my taxes However, you can request that the IRS grant you an exemption as discussed under Exemption From Self-Employment (SE) Tax , later. I need to amend my taxes Vow of poverty. I need to amend my taxes   If you are a member of a religious order and have taken a vow of poverty, you are already exempt from paying SE tax on your earnings for ministerial services you perform as an agent of your church or its agencies. I need to amend my taxes You do not need to request a separate exemption. I need to amend my taxes For income tax purposes, the earnings are tax free to you. I need to amend my taxes Your earnings are considered the income of the religious order. I need to amend my taxes Services covered under FICA at the election of the order. I need to amend my taxes   However, even if you have taken a vow of poverty, the services you perform for your church or its agencies may be covered under social security. I need to amend my taxes Your services are covered if your order, or an autonomous subdivision of the order, elects social security coverage for its current and future vow-of-poverty members. I need to amend my taxes   The order or subdivision elects coverage by filing Form SS-16. I need to amend my taxes The election may cover certain vow-of-poverty members for a retroactive period of up to 20 calendar quarters before the quarter in which it files the certificate. I need to amend my taxes If the election is made, the order or subdivision pays both the employer's and employee's share of the tax. I need to amend my taxes You do not pay any of the FICA tax. I need to amend my taxes Services performed outside the order. I need to amend my taxes   Even if you are a member of a religious order who has taken a vow of poverty and the order requires you to turn over amounts you earn, your earnings are subject to federal income tax and either SE tax or FICA tax (including estimated tax payments and/or withholding) if you: Are self-employed or an employee of an organization outside your religious community, and Perform work not required by, or done on behalf of, the order. I need to amend my taxes   In these cases, your income from self-employment or as an employee of that outside organization is taxable to you directly. I need to amend my taxes You may, however, be able to take a charitable deduction for the amount you turn over to the order. I need to amend my taxes See Publication 526, Charitable Contributions. I need to amend my taxes Rulings. I need to amend my taxes   Organizations and individuals may request rulings from the IRS on whether they are religious orders, or members of a religious order, respectively, for FICA tax, SE tax, and federal income tax withholding purposes. I need to amend my taxes To request a ruling, follow the procedures in Revenue Procedure 2014-1, 2014-1 I. I need to amend my taxes R. I need to amend my taxes B. I need to amend my taxes 1, available at www. I need to amend my taxes irs. I need to amend my taxes gov/irb/2014-1_IRB/ar05. I need to amend my taxes html. I need to amend my taxes Christian Science Practitioners and Readers Generally, your earnings from services you perform in your profession as a Christian Science practitioner or reader are subject to SE tax. I need to amend my taxes However, you can request an exemption as discussed under Exemption From Self-Employment (SE) Tax , later. I need to amend my taxes Practitioners. I need to amend my taxes   Christian Science practitioners are members in good standing of the Mother Church, The First Church of Christ, Scientist, in Boston, Massachusetts, who practice healing according to the teachings of Christian Science. I need to amend my taxes State law specifically exempts Christian Science practitioners from licensing requirements. I need to amend my taxes   Some Christian Science practitioners also are Christian Science teachers or lecturers. I need to amend my taxes Income from teaching or lecturing is considered the same as income from their work as practitioners. I need to amend my taxes Readers. I need to amend my taxes   For tax purposes, Christian Science readers are considered the same as ordained, commissioned, or licensed ministers. I need to amend my taxes Coverage of Religious Workers (Church Employees) If you are a religious worker (a church employee) and are not in one of the classes already discussed, your wages are generally subject to social security and Medicare tax under FICA, not SECA. I need to amend my taxes Some exceptions are discussed next. I need to amend my taxes Election by Church To Exclude Its Employees From FICA Coverage Churches and qualified church-controlled organizations (church organizations) that are opposed for religious reasons to the payment of social security and Medicare taxes can elect to exclude their employees from FICA coverage. I need to amend my taxes If your employer makes this election, it does not pay the employer's portion of the FICA taxes or withhold from your pay your portion of the FICA taxes. I need to amend my taxes Instead, your wages are subject to SECA and you must pay SE tax on your wages if they exceed $108. I need to amend my taxes 28 during the tax year. I need to amend my taxes However, you can request an exemption from SE tax if you are a member of a recognized religious sect, as discussed below. I need to amend my taxes Churches and church organizations make this election by filing two copies of Form 8274. I need to amend my taxes For more information about making this election, see Form 8274. I need to amend my taxes Election by Certain Church Employees Who Are Opposed to Social Security and Medicare You may be able to choose to be exempt from social security and Medicare taxes, including the SE tax, if you are a member of a recognized religious sect or division and work for a church (or church-controlled nonprofit division) that does not pay the employer's part of the social security tax on wages. I need to amend my taxes This exemption does not apply to your service, if any, as a minister of a church or as a member of a religious order. I need to amend my taxes Make this choice by filing Form 4029. I need to amend my taxes See Requesting Exemption—Form 4029 , later, under Members of Recognized Religious Sects. I need to amend my taxes U. I need to amend my taxes S. I need to amend my taxes Citizens and Resident and Nonresident Aliens To be covered under the SE tax provisions (SECA), individuals generally must be citizens or resident aliens of the United States. I need to amend my taxes Nonresident aliens are not covered under SECA unless a social security agreement in effect between the United States and the foreign country determines that you are covered under the U. I need to amend my taxes S. I need to amend my taxes social security system. I need to amend my taxes To determine your alien status, see Publication 519, U. I need to amend my taxes S. I need to amend my taxes Tax Guide for Aliens. I need to amend my taxes Residents of Puerto Rico, the U. I need to amend my taxes S. I need to amend my taxes Virgin Islands, Guam, the CNMI, and American Samoa. I need to amend my taxes   If you are a resident of one of these U. I need to amend my taxes S. I need to amend my taxes possessions but not a U. I need to amend my taxes S. I need to amend my taxes citizen, for SE tax purposes you are treated the same as a citizen or resident alien of the United States. I need to amend my taxes For information on figuring the tax, see Self-Employment Tax: Figuring Net Earnings , later. I need to amend my taxes Ministerial Services Ministerial services, in general, are the services you perform in the exercise of your ministry, in the exercise of your duties as required by your religious order, or in the exercise of your profession as a Christian Science practitioner or reader. I need to amend my taxes Income you receive for performing ministerial services is subject to SE tax unless you have an exemption as explained later. I need to amend my taxes Even if you have an exemption, only the income you receive for performing ministerial services is exempt. I need to amend my taxes The exemption does not apply to any other income. I need to amend my taxes The following discussions provide more detailed information on ministerial services of ministers, members of a religious order, and Christian Science practitioners and readers. I need to amend my taxes Ministers Most services you perform as a minister, priest, rabbi, etc. I need to amend my taxes , are ministerial services. I need to amend my taxes These services include: Performing sacerdotal functions, Conducting religious worship, and Controlling, conducting, and maintaining religious organizations (including the religious boards, societies, and other integral agencies of such organizations) that are under the authority of a religious body that is a church or denomination. I need to amend my taxes You are considered to control, conduct, and maintain a religious organization if you direct, manage, or promote the organization's activities. I need to amend my taxes A religious organization is under the authority of a religious body that is a church or denomination if it is organized for and dedicated to carrying out the principles of a faith according to the requirements governing the creation of institutions of the faith. I need to amend my taxes Services for nonreligious organizations. I need to amend my taxes   Your services for a nonreligious organization are ministerial services if the services are assigned or designated by your church. I need to amend my taxes Assigned or designated services qualify even if they do not involve performing sacerdotal functions or conducting religious worship. I need to amend my taxes   If your services are not assigned or designated by your church, they are ministerial services only if they involve performing sacerdotal functions or conducting religious worship. I need to amend my taxes Services that are not part of your ministry. I need to amend my taxes   Income from services you perform as an employee that are not ministerial services is subject to social security and Medicare tax withholding under FICA (not SECA) under the rules that apply to employees in general. I need to amend my taxes The following are not ministerial services. I need to amend my taxes Services you perform for nonreligious organizations other than the services stated above. I need to amend my taxes Services you perform as a duly ordained, commissioned, or licensed minister of a church as an employee of the United States, the District of Columbia, a foreign government, or any of their political subdivisions. I need to amend my taxes These services are not ministerial services even if you are performing sacerdotal functions or conducting religious worship. I need to amend my taxes (For example, if you perform services as a chaplain in the Armed Forces of the United States, those services are not ministerial services. I need to amend my taxes ) Services you perform in a government-owned and operated hospital. I need to amend my taxes (These services are considered performed by a government employee, not by a minister as part of the ministry. I need to amend my taxes ) However, services that you perform at a church-related hospital or health and welfare institution, or a private nonprofit hospital, are considered to be part of the ministry and are considered ministerial services. I need to amend my taxes Books or articles. I need to amend my taxes   Writing religious books or articles is considered to be in the exercise of your ministry and is considered a ministerial service. I need to amend my taxes   This rule also applies to members of religious orders and to Christian Science practitioners and readers. I need to amend my taxes Members of Religious Orders Services you perform as a member of a religious order in the exercise of duties required by the order are ministerial services. I need to amend my taxes The services are considered ministerial because you perform them as an agent of the order. I need to amend my taxes For example, if the order directs you to perform services for another agency of the supervising church or an associated institution, you are considered to perform the services as an agent of the order. I need to amend my taxes However, if the order directs you to work outside the order, this employment will not be considered a duty required by the order unless: Your services are the kind that are ordinarily performed by members of the order, and Your services are part of the duties that must be exercised for, or on behalf of, the religious order as its agent. I need to amend my taxes Effect of employee status. I need to amend my taxes   Ordinarily, if your services are not considered directed or required of you by the order, you and the outside party for whom you work are considered employee and employer. I need to amend my taxes In this case, your earnings from the services are taxed under the rules that apply to employees in general, not under the rules for services provided as agent for the order. I need to amend my taxes This result is true even if you have taken a vow of poverty. I need to amend my taxes Example. I need to amend my taxes Pat Brown and Chris Green are members of a religious order and have taken vows of poverty. I need to amend my taxes They renounce all claims to their earnings. I need to amend my taxes The earnings belong to the order. I need to amend my taxes Pat is a licensed attorney. I need to amend my taxes The superiors of the order instructed her to get a job with a law firm. I need to amend my taxes Pat joined a law firm as an employee and, as she requested, the firm made the salary payments directly to the order. I need to amend my taxes Chris is a secretary. I need to amend my taxes The superiors of the order instructed him to accept a job with the business office of the church that supervises the order. I need to amend my taxes Chris took the job and gave all his earnings to the order. I need to amend my taxes Pat's services are not duties required by the order. I need to amend my taxes Her earnings are subject to social security and Medicare tax under FICA and to federal income tax. I need to amend my taxes Chris' services are duties required by the order. I need to amend my taxes He is acting as an agent of the order and not as an employee of a third party. I need to amend my taxes He does not include the earnings in gross income, and they are not subject to income tax withholding or to social security and Medicare tax under FICA or SECA. I need to amend my taxes Christian Science Practitioners and Readers Services you perform as a Christian Science practitioner or reader in the exercise of your profession are ministerial services. I need to amend my taxes Amounts you receive for performing these services are generally subject to SE tax. I need to amend my taxes You may request an exemption from SE tax, discussed next, which applies only to those services. I need to amend my taxes Exemption From Self-Employment (SE) Tax You can request an exemption from SE tax if you are a member of the clergy (minister, member of a religious order, or Christian Science practitioner or reader) or a member of a recognized religious sect. I need to amend my taxes Generally, members of religious orders who have taken a vow of poverty are already exempt from paying SE tax, as discussed earlier under Members of Religious Orders under Social Security Coverage. I need to amend my taxes They do not have to request the exemption. I need to amend my taxes Who cannot be exempt. I need to amend my taxes   You cannot be exempt from SE tax if you made one of the following elections to be covered under social security. I need to amend my taxes These elections are irrevocable. I need to amend my taxes You elected to be covered under social security by filing Form 2031, Revocation of Exemption From Self-Employment Tax for Use by Ministers, Members of Religious Orders, and Christian Science Practitioners, for your 1986, 1987, 2000, or 2001 tax year. I need to amend my taxes You elected before 1968 to be covered under social security for your ministerial services. I need to amend my taxes Requesting exemption. I need to amend my taxes    Table 2, earlier, briefly summarizes the procedure for requesting exemption from the SE tax. I need to amend my taxes More detailed explanations follow. I need to amend my taxes If you are a minister, member of a religious order, or Christian Science practitioner, an approved exemption only applies to earnings you receive for ministerial services, discussed earlier. I need to amend my taxes It does not apply to any other self-employment income. I need to amend my taxes Table 2. I need to amend my taxes The Self-Employment Tax Exemption Application and Approval Process   Who Can Apply Members of the Clergy Members of Recognized  Religious Sects How File Form 4361 File Form 4029 When File by the due date (including extensions) of your income tax return for the second tax year in which you had at least $400 of net earnings from self-employment (at least part from ministerial services) File anytime Approval If approved, you will receive an approved copy of Form 4361 If approved, you will receive an approved copy of Form 4029 Effective Date For all tax years after 1967 in which you have at least $400 of net earnings from self-employment For all tax years beginning with the first year you meet the eligibility requirements discussed later Members of the Clergy To claim the exemption from SE tax, you must meet all of the following conditions. I need to amend my taxes You file Form 4361, described below under Requesting Exemption—Form 4361 . I need to amend my taxes You are conscientiously opposed to public insurance because of your individual religious considerations (not because of your general conscience), or you are opposed because of the principles of your religious denomination. I need to amend my taxes You file for other than economic reasons. I need to amend my taxes You inform the ordaining, commissioning, or licensing body of your church or order that you are opposed to public insurance if you are a minister or a member of a religious order (other than a vow-of-poverty member). I need to amend my taxes This requirement does not apply to Christian Science practitioners or readers. I need to amend my taxes You establish that the organization that ordained, commissioned, or licensed you, or your religious order, is a tax-exempt religious organization. I need to amend my taxes You establish that the organization is a church or a convention or association of churches. I need to amend my taxes You did not make an election discussed earlier under Who cannot be exempt . I need to amend my taxes You sign and return the statement the IRS mails to you to certify that you are requesting an exemption based on the grounds listed on the statement. I need to amend my taxes Requesting Exemption—Form 4361 To request exemption from SE tax, file Form 4361 in triplicate (original and two copies) with the IRS. I need to amend my taxes The IRS will return to you a copy of the Form 4361 that you filed indicating whether it has approved your exemption. I need to amend my taxes If it is approved, keep the approved copy of Form 4361 in your permanent records. I need to amend my taxes When to file. I need to amend my taxes   File Form 4361 by the date your income tax return is due, including extensions, for the second tax year in which both of the following are true. I need to amend my taxes You have net earnings from self-employment of at least $400. I need to amend my taxes Any part of those net earnings was from ministerial services you performed as a: Minister, Member of a religious order, or Christian Science practitioner or reader. I need to amend my taxes The 2 years do not have to be consecutive tax years. I need to amend my taxes    The approval process can take some time, so you should file Form 4361 as soon as possible. I need to amend my taxes Example 1. I need to amend my taxes Rev. I need to amend my taxes Lawrence Jaeger, a clergyman ordained in 2013, has net self-employment earnings as a minister of $450 in 2013 and $500 in 2014. I need to amend my taxes He must file his application for exemption by the due date, including extensions, for his 2014 income tax return. I need to amend my taxes However, if Rev. I need to amend my taxes Jaeger does not receive IRS approval for an exemption by April 15, 2015, his SE tax for 2014 is due by that date. I need to amend my taxes Example 2. I need to amend my taxes Rev. I need to amend my taxes Louise Wolfe has only $300 in net self-employment earnings as a minister in 2013, but earned more than $400 in 2012 and expects to earn more than $400 in 2014. I need to amend my taxes She must file her application for exemption by the due date, including extensions, for her 2014 income tax return. I need to amend my taxes However, if she does not receive IRS approval for an exemption by April 15, 2015, her SE tax for 2014 is due by that date. I need to amend my taxes Example 3. I need to amend my taxes In 2011, Rev. I need to amend my taxes David Moss was ordained a minister and had $700 in net self-employment earnings as a minister. I need to amend my taxes In 2012, he received $1,000 as a minister, but his related expenses were over $1,000. I need to amend my taxes Therefore, he had no net self-employment earnings as a minister in 2012. I need to amend my taxes Also in 2012, he opened a book store and had $8,000 in net self-employment earnings from the store. I need to amend my taxes In 2013, he had net self-employment earnings of $1,500 as a minister and $10,000 net self-employment earnings from the store. I need to amend my taxes Rev. I need to amend my taxes Moss had net earnings from self-employment in 2011 and 2013 that were $400 or more each year, and part of the self-employment earnings in each of those years was for his services as a minister. I need to amend my taxes Thus, he must file his application for exemption by the due date, including extensions, for his 2013 income tax return. I need to amend my taxes Death of individual. I need to amend my taxes   The right to file an application for exemption ends with an individual's death. I need to amend my taxes A surviving spouse, executor, or administrator cannot file an exemption application for a deceased clergy member. I need to amend my taxes Effective date of exemption. I need to amend my taxes   An approved exemption is effective for all tax years after 1967 in which you have $400 or more of net earnings from self-employment and any part of those earnings is for services as a member of the clergy. I need to amend my taxes Once the exemption is approved, it is irrevocable. I need to amend my taxes Example. I need to amend my taxes Rev. I need to amend my taxes Trudy Austin, ordained in 2010, had $400 or more in net self-employment earnings as a minister in both 2010 and 2013. I need to amend my taxes She files an application for exemption on February 20, 2014. I need to amend my taxes If an exemption is granted, it is effective for 2010 and the following years. I need to amend my taxes Refunds of SE tax. I need to amend my taxes   If, after receiving an approved Form 4361, you find that you overpaid SE tax, you can file a claim for refund on Form 1040X. I need to amend my taxes Generally, for a refund, you must file Form 1040X within 3 years from the date you filed the return or within 2 years from the date you paid the tax, whichever is later. I need to amend my taxes A return you filed, or tax you paid, before the due date is considered to have been filed or paid on the due date. I need to amend my taxes   If you file a claim after the 3-year period but within 2 years from the time you paid the tax, the credit or refund will not be more than the tax you paid within the 2 years immediately before you file the claim. I need to amend my taxes Members of Recognized Religious Sects If you are a member of a recognized religious sect, or a division of a recognized religious sect, you can apply for an exemption from payment of social security and Medicare taxes on both your self-employment income and the wages you earn from an employer who also has an exemption. I need to amend my taxes Exception. I need to amend my taxes   If you received social security benefits or payments, or anyone else received these benefits or payments based on your wages or self-employment income, you cannot apply. I need to amend my taxes However, if you pay your benefits back, you may be considered for exemption. I need to amend my taxes Contact your local Social Security Administration office to find out the amount you must pay back. I need to amend my taxes Eligibility requirements. I need to amend my taxes   To claim this exemption from SE tax, all the following requirements must be met. I need to amend my taxes You must file Form 4029, discussed later under Requesting Exemption—Form 4029 . I need to amend my taxes As a follower of the established teachings of the sect or division, you must be conscientiously opposed to accepting benefits of any private or public insurance that makes payments for death, disability, old age, retirement, or medical care, or provides services for medical care. I need to amend my taxes You must waive all rights to receive any social security payment or benefit and agree that no benefits or payments will be made to anyone else based on your wages and self-employment income. I need to amend my taxes The Commissioner of Social Security must determine that: Your sect or division has the established teachings as described in (2) above, It is the practice, and has been for a substantial period of time, for members of the sect or division to provide for their dependent members in a manner that is reasonable in view of the members' general level of living, and The sect or division has existed at all times since December 31, 1950. I need to amend my taxes Requesting Exemption—Form 4029 To request the exemption, file Form 4029 in triplicate (original and two copies) with the Social Security Administration at the address shown on the form. I need to amend my taxes The sect or division must complete part of the form. I need to amend my taxes The IRS will return to you a copy of the Form 4029 that you filed indicating whether it has approved your exemption. I need to amend my taxes If it is approved, keep the approved copy of Form 4029 in your permanent records. I need to amend my taxes When to file. I need to amend my taxes   You can file Form 4029 at any time. I need to amend my taxes   If you have an approved exemption from SE tax and for some reason that approved exemption ended, you must file a new Form 4029 if you subsequently meet the eligibility requirements, discussed earlier. I need to amend my taxes See Effective date of exemption next for information on when the newly approved exemption would become effective. I need to amend my taxes    If you have a previously approved exemption from SE tax and you change membership to another recognized religious sect, without any change to your eligibility requirements, then you do not need to file a new Form 4029. I need to amend my taxes Effective date of exemption. I need to amend my taxes   An approved exemption from SE tax generally is effective for all tax years beginning with the first year you meet the eligibility requirements discussed earlier. I need to amend my taxes (For example, if you meet the eligibility requirements in 2011, you file Form 4029 in 2012, and the IRS approves your exemption in 2013, your exemption is effective for tax year 2011 and all later years. I need to amend my taxes )   The exemption will end if you fail to meet the eligibility requirements or if the Commissioner of Social Security determines that the sect or division fails to meet them. I need to amend my taxes You must notify the IRS within 60 days if you are no longer a member of the religious group, or if you no longer follow the established teachings of this group. I need to amend my taxes The exemption will end for the tax year where you or your sect/division first fails to meet the eligibility requirements. I need to amend my taxes Refunds of SE tax paid. I need to amend my taxes    To get a refund of any SE tax you paid while the exemption was in effect, file Form 1040X. I need to amend my taxes For information on filing this form, see Refunds of SE tax under Requesting Exemption—Form 4361, earlier. I need to amend my taxes Exemption From FICA Taxes Generally, under FICA, the employer and the employee each pay half of the social security and Medicare tax. I need to amend my taxes Both the employee and the employer, if they meet the eligibility requirements discussed earlier, can apply to be exempt from their share of FICA taxes on wages paid by the employer to the employee. I need to amend my taxes A partnership in which each partner holds a religious exemption from social security and Medicare is an employer for this purpose. I need to amend my taxes If the employer's application is approved, the exemption will apply only to FICA taxes on wages paid to employees who also received an approval of identical applications. I need to amend my taxes Information for employers. I need to amend my taxes   If you have an approved Form 4029 and you have an employee who has an approved Form 4029, do not report wages you paid to the employee as social security and Medicare wages. I need to amend my taxes   If you have an employee who does not have an approved Form 4029, you must withhold the employee's share of social security and Medicare taxes and pay the employer's share. I need to amend my taxes Form W-2. I need to amend my taxes   When preparing a Form W-2 for an employee with an approved Form 4029, enter “Form 4029” in box 14, “Other. I need to amend my taxes ” Do not make any entries in boxes 3, 4, 5, or 6. I need to amend my taxes Forms 941, 943, and 944. I need to amend my taxes   If both you and your employee have received approved Forms 4029, do not include these exempt wages on the following forms. I need to amend my taxes Instead, follow the instructions given below. I need to amend my taxes Form 941, Employer's QUARTERLY Federal Tax Return: check the box on line 4 and enter “Form 4029” in the empty space below the check box. I need to amend my taxes Form 943, Employer's Annual Federal Tax Return for Agricultural Employees: enter “Form 4029” on the dotted line next to the lines 2 and 4 entry spaces. I need to amend my taxes Form 944, Employer's ANNUAL Federal Tax Return: check the box on line 3 and enter “Form 4029” in the empty space below the check box. I need to amend my taxes Effective date. I need to amend my taxes   An approved exemption from FICA becomes effective on the first day of the first calendar quarter after the quarter in which you file Form 4029. I need to amend my taxes The exemption will end on the last day of the calendar quarter before the quarter in which the employer, employee, sect, or division fails to meet the requirements. I need to amend my taxes Self-Employment Tax: Figuring Net Earnings There are two methods for figuring your net earnings from self-employment as a member of the clergy or a religious worker. I need to amend my taxes Regular method. I need to amend my taxes Nonfarm optional method. I need to amend my taxes You may find Worksheets 1 through 4 helpful in figuring your net earnings from self-employment. I need to amend my taxes Blank worksheets are in the back of this publication, after the Comprehensive Example. I need to amend my taxes Regular Method Most people use the regular method. I need to amend my taxes Under this method, figure your net earnings from self-employment by totaling your gross income for services you performed as a minister, a member of a religious order who has not taken a vow of poverty, or a Christian Science practitioner or reader. I need to amend my taxes Then, subtract your allowable business deductions and multiply the difference by 92. I need to amend my taxes 35% (. I need to amend my taxes 9235). I need to amend my taxes Use Schedule SE (Form 1040) to figure your net earnings and SE tax. I need to amend my taxes If you are an employee of a church that elected to exclude you from FICA coverage, figure net earnings by multiplying your church wages shown on Form W-2 by 92. I need to amend my taxes 35% (. I need to amend my taxes 9235). I need to amend my taxes Do not reduce your wages by any business deductions when making this computation. I need to amend my taxes Use Schedule SE (Form 1040), Section B, to figure your net earnings and SE tax. I need to amend my taxes If you have an approved exemption, or you are automatically exempt, do not include the income or deductions from ministerial services in figuring your net earnings from self-employment. I need to amend my taxes Amounts included in gross income. I need to amend my taxes   To figure your net earnings from self-employment (on Schedule SE (Form 1040)), include in gross income: Salaries and fees for your ministerial services (discussed earlier), Offerings you receive for marriages, baptisms, funerals, masses, etc. I need to amend my taxes , The value of meals and lodging provided to you, your spouse, and your dependents for your employer's convenience, The fair rental value of a parsonage provided to you (including the cost of utilities that are furnished) and the rental allowance (including an amount for payment of utilities) paid to you, and Any amount a church pays toward your income tax or SE tax, other than withholding the amount from your salary. I need to amend my taxes This amount is also subject to income tax. I need to amend my taxes   For the income tax treatment of items (2) and (4), see Income Tax: Income and Expenses , later. I need to amend my taxes Example. I need to amend my taxes Pastor Roger Adams receives an annual salary of $39,000 as a full-time minister. I need to amend my taxes The $39,000 includes $5,000 that is designated as a rental allowance to pay utilities. I need to amend my taxes His church owns a parsonage that has a fair rental value of $12,000 per year. I need to amend my taxes The church gives Pastor Adams the use of the parsonage. I need to amend my taxes He is not exempt from SE tax. I need to amend my taxes He must include $51,000 ($39,000 plus $12,000) when figuring his net earnings for SE tax purposes. I need to amend my taxes The results would be the same if, instead of the use of the parsonage and receipt of the rental allowance for utilities, Pastor Adams had received an annual salary of $51,000 of which $17,000 ($5,000 plus $12,000) per year was designated as a rental allowance. I need to amend my taxes Overseas duty. I need to amend my taxes   Your net earnings from self-employment are determined without any foreign earned income exclusion or the foreign housing exclusion or deduction if you are a U. I need to amend my taxes S. I need to amend my taxes citizen or resident alien serving abroad and living in a foreign country. I need to amend my taxes   For information on excluding foreign earned income or the foreign housing amount, see Publication 54. I need to amend my taxes Example. I need to amend my taxes Diane Jones was the minister of a U. I need to amend my taxes S. I need to amend my taxes church in Mexico. I need to amend my taxes She earned $35,000 in that position and was able to exclude it all for income tax purposes under the foreign earned income exclusion. I need to amend my taxes The United States does not have a social security agreement with Mexico, so Mrs. I need to amend my taxes Jones is subject to U. I need to amend my taxes S. I need to amend my taxes SE tax and must include $35,000 when figuring net earnings from self-employment. I need to amend my taxes Specified U. I need to amend my taxes S. I need to amend my taxes possessions. I need to amend my taxes    The exclusion from gross income for amounts derived from American Samoa or Puerto Rico does not apply in computing net earnings from self-employment. I need to amend my taxes Also see Residents of Puerto Rico, the U. I need to amend my taxes S. I need to amend my taxes Virgin Islands, Guam, the CNMI, and American Samoa , earlier, under U. I need to amend my taxes S. I need to amend my taxes Citizens and Resident and Nonresident Aliens. I need to amend my taxes Amounts not included in gross income. I need to amend my taxes   Do not include the following amounts in gross income when figuring your net earnings from self-employment. I need to amend my taxes Offerings that others made to the church. I need to amend my taxes Contributions by your church to a tax-sheltered annuity plan set up for you, including any salary reduction contributions (elective deferrals) that are not included in your gross income. I need to amend my taxes Pension payments or retirement allowances you receive for your past ministerial services. I need to amend my taxes The rental value of a parsonage or a parsonage allowance provided to you after you retire. I need to amend my taxes Allowable deductions. I need to amend my taxes   When figuring your net earnings from self-employment, deduct all your expenses related to your ministerial services performed as a self-employed person. I need to amend my taxes These are ministerial expenses you incurred while working other than as a common-law employee of the church. I need to amend my taxes They include expenses incurred in performing marriages and baptisms, and in delivering speeches. I need to amend my taxes Deduct these expenses on Schedule C or C-EZ (Form 1040), and carry the net amount to line 2 of Schedule SE (Form 1040), Section A or B. I need to amend my taxes   Wages earned as a common-law employee (explained earlier) of a church are generally subject to self-employment tax unless an exemption is requested, as discussed earlier under Exemption From Self-Employment (SE) Tax . I need to amend my taxes Subtract any allowable expenses (including unreimbursed employee business expenses) from those wages, include the net amount on line 2 of Schedule SE (Form 1040), Section A or B, and attach an explanation. I need to amend my taxes Do not complete Schedule C or C-EZ (Form 1040). I need to amend my taxes However, for income tax purposes, the expenses are allowed only as an itemized deduction on Schedule A (Form 1040) to the extent they exceed 2% of adjusted gross income. I need to amend my taxes Employee reimbursement arrangements. I need to amend my taxes   If you received an advance, allowance, or reimbursement for your employee expenses, how you report this amount and your employee expenses depends on whether your employer reimbursed you under an accountable plan or a nonaccountable plan. I need to amend my taxes Ask your employer if you are not sure if it reimburses you using an accountable or a nonaccountable plan. I need to amend my taxes Accountable plans. I need to amend my taxes   To be an accountable plan, your employer's reimbursement arrangement must include all three of the following rules. I need to amend my taxes Your expenses must have a business connection—that is, you must have paid or incurred deductible expenses while performing services as an employee of your employer. I need to amend my taxes You must adequately account to your employer for these expenses within a reasonable period of time. I need to amend my taxes You must return any excess reimbursement or allowance within a reasonable period of time. I need to amend my taxes   The reimbursement is not reported on your Form W-2. I need to amend my taxes Generally, if your expenses equal your reimbursement, you have no deduction. I need to amend my taxes If your expenses are more than your reimbursement, you can deduct your excess expenses for SE tax and income tax purposes. I need to amend my taxes Nonaccountable plan. I need to amend my taxes   A nonaccountable plan is a reimbursement arrangement that does not meet all three of the rules listed under Accountable plans above. I need to amend my taxes In addition, even if your employer has an accountable plan, the following payments will be treated as being paid under a nonaccountable plan. I need to amend my taxes Excess reimbursements you fail to return to your employer. I need to amend my taxes Reimbursement of nondeductible expenses related to your employer's business. I need to amend my taxes   Your employer will combine any reimbursement paid to you under a nonaccountable plan with your wages, salary, or other compensation and report the combined total in box 1 of your Form W-2. I need to amend my taxes Since reimbursements under a nonaccountable plan are included in your gross income, you can deduct your related expenses (for SE tax and income tax purposes) regardless of whether they are more than, less than, or equal to your reimbursement. I need to amend my taxes   For more information on accountable and nonaccountable plans, see Publication 463, Travel, Entertainment, Gift, and Car Expenses. I need to amend my taxes Married Couple Missionary Team If both spouses are duly ordained, commissioned, or licensed ministers of a church and have an agreement that each will perform specific services for which they are paid jointly or separately, they must divide the self-employment income according to the agreement. I need to amend my taxes If the agreement is with one spouse only and the other spouse is not paid for any specific duties, amounts received for their services are included only in the self-employment income of the spouse having the agreement. I need to amend my taxes Earnings Subject to SE Tax For 2013, the maximum net earnings from self-employment subject to social security (old age, survivors, and disability insurance) tax is $113,700 minus any wages and tips you earned that were subject to social security tax. I need to amend my taxes The tax rate for the social security part is 12. I need to amend my taxes 4%. I need to amend my taxes In addition, all of your net earnings are subject to the Medicare (hospital insurance) part of the SE tax. I need to amend my taxes This tax rate is 2. I need to amend my taxes 9%. I need to amend my taxes The combined self-employment tax rate is 15. I need to amend my taxes 3%. I need to amend my taxes Additional Medicare Tax. I need to amend my taxes   Beginning in 2013, a 0. I need to amend my taxes 9% Additional Medicare Tax applies to Medicare wages, railroad retirement (RRTA) compensation, and self-employment income that are more than: $125,000 if married filing separately, $250,000 if married filing jointly, or $200,000 for any other filing status. I need to amend my taxes Medicare wages and self-employment income are combined to determine if income exceeds the threshold. I need to amend my taxes A self-employment loss is not considered for purposes of this tax. I need to amend my taxes RRTA compensation is separately compared to the threshold. I need to amend my taxes For more information, see Form 8959, Additional Medicare Tax, and its separate instructions. I need to amend my taxes Nonfarm Optional Method You may be able to use the nonfarm optional method for figuring your net earnings from self-employment. I need to amend my taxes In general, the nonfarm optional method is intended to permit continued coverage for social security and Medicare purposes when your income for the tax year is low. I need to amend my taxes You may use the nonfarm optional method if you meet all the following tests. I need to amend my taxes You are self-employed on a regular basis. I need to amend my taxes You meet this test if your actual net earnings from self-employment were $400 or more in at least 2 of the 3 tax years before the one for which you use this method. I need to amend my taxes The net earnings can be from either farm or nonfarm earnings or both. I need to amend my taxes You have used this method less than 5 prior years. I need to amend my taxes (There is a 5-year lifetime limit. I need to amend my taxes ) The years do not have to be consecutive. I need to amend my taxes Your net nonfarm profits were: Less than $5,024, and Less than 72. I need to amend my taxes 189% of your gross nonfarm income. I need to amend my taxes If you meet all three tests, use Table 3 to figure your net earnings from self-employment under the nonfarm optional method. I need to amend my taxes Table 3. I need to amend my taxes Figuring Nonfarm Net Earnings IF your gross nonfarm income is . I need to amend my taxes . I need to amend my taxes . I need to amend my taxes THEN your net earnings are equal to . I need to amend my taxes . I need to amend my taxes . I need to amend my taxes $6,960 or less Two-thirds of your gross nonfarm income. I need to amend my taxes More than $6,960 $4,640. I need to amend my taxes Actual net earnings. I need to amend my taxes   Multiply your total earnings subject to SE tax by 92. I need to amend my taxes 35% (. I need to amend my taxes 9235) to get actual net earnings. I need to amend my taxes Actual net earnings are equivalent to net earnings under the “Regular Method. I need to amend my taxes ” More information. I need to amend my taxes   For more information on the nonfarm optional method, see Publication 334, Tax Guide for Small Business, and the Schedule SE (Form 1040) instructions. I need to amend my taxes Income Tax: Income and Expenses Some income and expense items are treated the same for both income tax and SE tax purposes and some are treated differently. I need to amend my taxes Note. I need to amend my taxes For purposes of this section, references to members of the clergy are only to ministers or members of a religious order. I need to amend my taxes Income Items The tax treatment of offerings and fees, outside earnings, rental allowances, rental value of a parsonage, earnings of members of religious orders, and foreign earned income is discussed here. I need to amend my taxes Offerings and Fees If you are a member of the clergy, you must include in your income offerings and fees you receive for marriages, baptisms, funerals, masses, etc. I need to amend my taxes , in addition to your salary. I need to amend my taxes If the offering is made to the religious institution, it is not taxable to you. I need to amend my taxes Outside Earnings If you are a member of a religious organization and you give your outside earnings to the organization, you still must include the earnings in your income. I need to amend my taxes However, you may be entitled to a charitable contribution deduction for the amount paid to the organization. I need to amend my taxes For more information, see Publication 526. I need to amend my taxes Exclusion of Rental Allowance and Fair Rental Value of a Parsonage Ordained, commissioned, or licensed ministers of the gospel may be able to exclude from income tax the rental allowance or fair rental value of a parsonage that is provided to them as pay for their services. I need to amend my taxes Services include: Ministerial services, discussed earlier, Administrative duties and teaching at theological seminaries, and The ordinary duties of a minister performed as an employee of the United States (other than as a chaplain in the Armed Forces), a state, possession, political subdivision, or the District of Columbia. I need to amend my taxes This exclusion applies only for income tax purposes. I need to amend my taxes It does not apply for SE tax purposes, as discussed earlier under Amounts included in gross income under Self-Employment Tax: Figuring Net Earnings. I need to amend my taxes Designation requirement. I need to amend my taxes   The church or organization that employs you must officially designate the payment as a housing allowance before it makes the payment. I need to amend my taxes It must designate a definite amount. I need to amend my taxes It cannot determine the amount of the housing allowance at a later date. I need to amend my taxes If the church or organization does not officially designate a definite amount as a housing allowance, you must include your total salary in your income. I need to amend my taxes   If you are employed and paid by a local congregation, a resolution by a national church agency of your denomination does not effectively designate a housing allowance for you. I need to amend my taxes The local congregation must officially designate the part of your salary that is a housing allowance. I need to amend my taxes However, a resolution of a national church agency can designate your housing allowance if you are directly employed by the national agency. I need to amend my taxes Rental allowances. I need to amend my taxes   If you receive in your salary an amount officially designated as a rental allowance (including an amount to pay utility costs), you can exclude the allowance from your gross income if: You use the amount to provide or rent a home, and The amount is not more than reasonable pay for your services. I need to amend my taxes   The amount you exclude cannot be more than the fair rental value of the home, including furnishings, plus the cost of utilities. I need to amend my taxes Fair rental value of parsonage. I need to amend my taxes   You can exclude from gross income the fair rental value of a house or parsonage, including utilities, furnished to you as part of your earnings. I need to amend my taxes However, the exclusion cannot be more than the reasonable pay for your services. I need to amend my taxes If you pay for the utilities, you can exclude any allowance designated for utility costs, up to your actual cost. I need to amend my taxes Example. I need to amend my taxes Rev. I need to amend my taxes Joanna Baker is a full-time minister. I need to amend my taxes The church allows her to use a parsonage that has an annual fair rental value of $24,000. I need to amend my taxes The church pays her an annual salary of $67,000, of which $7,500 is designated for utility costs. I need to amend my taxes Her actual utility costs during the year were $7,000. I need to amend my taxes For income tax purposes, Rev. I need to amend my taxes Baker excludes $31,000 from gross income ($24,000 fair rental value of the parsonage plus $7,000 from the allowance for utility costs). I need to amend my taxes She will report $60,000 ($59,500 salary plus $500 of unused utility allowance). I need to amend my taxes Her income for SE tax purposes, however, is $91,000 ($67,000 salary + $24,000 fair rental value of the parsonage). I need to amend my taxes Home ownership. I need to amend my taxes   If you own your home and you receive as part of your salary a housing or rental allowance, you may exclude from gross income the smallest of: The amount actually used to provide a home, The amount officially designated as a rental allowance, or The fair rental value of the home, including furnishings, utilities, garage, etc. I need to amend my taxes Excess rental allowance. I need to amend my taxes   You must include in gross income the amount of any rental allowance that is more than the smallest of: Your reasonable salary, The fair rental value of the home plus utilities, or The amount actually used to provide a home. I need to amend my taxes   Include in the total on Form 1040, line 7. I need to amend my taxes On the dotted line next to line 7, enter “Excess allowance” and the amount. I need to amend my taxes You may deduct the home mortgage interest and real estate taxes paid on your home even though you pay all or part of those expenses with funds you get through a tax-free rental or parsonage allowance. I need to amend my taxes However, you can only deduct these expenses as itemized deductions on Schedule A (Form 1040). I need to amend my taxes Retired ministers. I need to amend my taxes   If you are a retired minister, you can exclude from your gross income the rental value of a home (plus utilities) furnished to you by your church as a part of your pay for past services, or the part of your pension that was designated as a rental allowance. I need to amend my taxes However, a minister's surviving spouse cannot exclude the rental value unless the rental value is for ministerial services he or she performs or performed. I need to amend my taxes Teachers or administrators. I need to amend my taxes   If you are a minister employed as a teacher or administrator by a church school, college, or university, you are performing ministerial services for purposes of the housing exclusion. I need to amend my taxes However, if you perform services as a teacher or administrator on the faculty of a nonchurch college, you cannot exclude from your income a housing allowance or the value of a home that the college provides to you. I need to amend my taxes    If you live in faculty lodging as an employee of an educational institution or academic health center, all or part of the value of that lodging may be nontaxable under a different rule. I need to amend my taxes In Publication 525, see Faculty lodging in the discussion on meals and lodging under Fringe Benefits. I need to amend my taxes   If you serve as a minister of music or minister of education, or serve in an administrative or other function of your religious organization, but are not authorized to perform substantially all of the religious duties of an ordained minister in your church (even if you are commissioned as a minister of the gospel), the housing exclusion does not apply to you. I need to amend my taxes Theological students. I need to amend my taxes   If you are a theological student serving a required internship as a part-time or assistant pastor, you cannot exclude a parsonage or rental allowance from your income unless you are ordained, commissioned, or licensed as a minister. I need to amend my taxes Traveling evangelists. I need to amend my taxes   You can exclude a designated rental allowance from out-of-town churches if you meet all of the following requirements. I need to amend my taxes You are an ordained minister. I need to amend my taxes You perform ministerial services at churches located away from your community. I need to amend my taxes You actually use the rental allowance to maintain your permanent home. I need to amend my taxes Cantors. I need to amend my taxes   If you have a bona fide commission and your congregation employs you on a full-time basis to perform substantially all the religious functions of the Jewish faith, you can exclude a rental allowance from your gross income. I need to amend my taxes Earnings—Members of Religious Orders Your earnings may be exempt from both income tax and SE tax if you are a member of a religious order who: Has taken a vow of poverty, Receives earnings for services performed as an agent of the order and in the exercise of duties required by the order, and Renounces the earnings and gives them to the order. I need to amend my taxes See Members of Religious Orders , earlier, under Social Security Coverage. I need to amend my taxes Foreign Earned Income Certain income may be exempt from income tax if you work in a foreign country or in a specified U. I need to amend my taxes S. I need to amend my taxes possession. I need to amend my taxes Publication 54 discusses the foreign earned income exclusion. I need to amend my taxes Publication 570, Tax Guide for Individuals With Income From U. I need to amend my taxes S. I need to amend my taxes Possessions, covers the rules for taxpayers with income from U. I need to amend my taxes S. I need to amend my taxes possessions. I need to amend my taxes You can get these free publications from the Internal Revenue Service at IRS. I need to amend my taxes gov or from most U. I need to amend my taxes S. I need to amend my taxes Embassies or consulates. I need to amend my taxes Expense Items The tax treatment of ministerial trade or business expenses, expenses allocable to tax-free income, and health insurance costs is discussed here. I need to amend my taxes Ministerial Trade or Business Expenses as an Employee When you figure your income tax, you must itemize your deductions on Schedule A (Form 1040) to claim allowable deductions for ministerial trade or business expenses incurred while working as an employee. I need to amend my taxes You also may have to file Form 2106, Employee Business Expenses (or Form 2106-EZ, Unreimbursed Employee Business Expenses). I need to amend my taxes You claim these expenses as miscellaneous itemized deductions that are subject to the 2%-of-adjusted-gross-income (AGI) limit. I need to amend my taxes See Publication 529 for more information on this limit. I need to amend my taxes However, you cannot deduct any of your employee business expenses that are allocable to tax-free income (discussed next). I need to amend my taxes Expenses Allocable to Tax-Free Income If you receive a rental or parsonage allowance that is exempt from income tax (tax free), you must allocate a portion of the expenses of operating your ministry to that tax-free income. I need to amend my taxes You cannot deduct the portion of your expenses that you allocate to your tax-free rental or parsonage allowance. I need to amend my taxes Exception. I need to amend my taxes   This rule does not apply to your deductions for home mortgage interest or real estate taxes on your home. I need to amend my taxes Figuring the allocation. I need to amend my taxes   Figure the portion of your otherwise deductible expenses that you cannot deduct (because you must allocate that portion to tax-free income) by multiplying the expenses by the following fraction:      Tax-free rental or parsonage allowance     All income (taxable and tax free) earned from your ministry           When figuring the allocation, include the income and expenses related to the ministerial duties you perform both as an employee and as a self-employed person. I need to amend my taxes    Reduce your otherwise deductible expenses only in figuring your income tax, not your SE tax. I need to amend my taxes Example. I need to amend my taxes Rev. I need to amend my taxes Charles Ashford received $40,000 in earnings for ministerial services consisting of a $28,000 salary for ministerial services performed as an employee, $2,000 for weddings and baptisms performed as a self-employed person, and a $10,000 tax-free parsonage allowance. I need to amend my taxes He incurred $4,000 of unreimbursed expenses connected with his earnings for ministerial services. I need to amend my taxes $3,500 of the $4,000 is for employee expenses related to his ministerial salary, and $500 is related to the weddings and baptisms he performed as a self-employed person. I need to amend my taxes Rev. I need to amend my taxes Ashford figures the nondeductible (tax-free) portion of expenses related to his ministerial salary as follows: ($10,000 ÷ $40,000) x $3,500 = $875   Rev. I need to amend my taxes Ashford figures the nondeductible (tax-free) portion of expenses related to his wedding and baptism income as follows: ($10,000 ÷ $40,000) x $500 = $125 Required statement. I need to amend my taxes   If you receive a tax-free rental or parsonage allowance and have ministerial expenses, attach a statement to your tax return. I need to amend my taxes The statement must contain all of the following information. I need to amend my taxes A list of each item of taxable ministerial income by source (such as wages, salary, weddings, baptisms, etc. I need to amend my taxes ) plus the amount. I need to amend my taxes A list of each item of tax-free ministerial income by source (parsonage allowance) plus the amount. I need to amend my taxes A list of each item of otherwise deductible ministerial expenses plus the amount. I need to amend my taxes How you figured the nondeductible part of your otherwise deductible expenses. I need to amend my taxes A statement that the other deductions claimed on your tax return are not allocable to your tax-free income. I need to amend my taxes   See the attachments prepared for the Comprehensive Example , later. I need to amend my taxes Following the example, you will find blank worksheets for your own use. I need to amend my taxes Health Insurance Costs of Self-Employed Ministers If you are self-employed, you may be able to deduct the amount you paid in 2013 for medical and dental insurance and qualified long-term care insurance for you, your spouse, and your dependents. I need to amend my taxes If you qualify, you can take this deduction as an adjustment to income on Form 1040, line 29. I need to amend my taxes See the Instructions for Form 1040 to figure your deduction. I need to amend my taxes The following special rules apply to the self-employed health insurance deduction. I need to amend my taxes You cannot take a medical expense deduction on Schedule A (Form 1040) for any expenses you claim for purposes of the self-employed health insurance deduction. I need to amend my taxes You cannot take the deduction for any month you are eligible to participate in a subsidized plan of your (or your spouse's) employer. I need to amend my taxes The deduction cannot exceed your net earnings from the business under which the insurance plan is established. I need to amend my taxes Your net earnings under this rule do not include the income you earned as a common-law employee (discussed earlier) of a church. I need to amend my taxes More information. I need to amend my taxes   For more information about the self-employed health insurance deduction, see chapter 6 in Publication 535. I need to amend my taxes Deduction for SE Tax You can deduct one-half of your SE tax in figuring adjusted gross income. I need to amend my taxes This is an income tax deduction only, on Form 1040, line 27. I need to amend my taxes Do not claim this deduction in figuring net earnings from self-employment subject to SE tax. I need to amend my taxes Income Tax Withholding and Estimated Tax The federal income tax is a pay-as-you-go tax. I need to amend my taxes You must pay the tax as you earn or receive income during the year. I need to amend my taxes An employee usually has income tax withheld from his or her wages or salary. I need to amend my taxes However, your salary is not subject to federal income tax withholding if both of the following conditions apply. I need to amend my taxes You are a duly ordained, commissioned, or licensed minister, a member of a religious order (who has not taken a vow of poverty), or a Christian Science practitioner or reader. I need to amend my taxes Your salary is for ministerial services (see Ministerial Services , earlier). I need to amend my taxes If your salary is not subject to withholding, or if you do not pay enough tax through withholding, you may need to make estimated tax payments to avoid penalties for not paying enough tax as you earn your income. I need to amend my taxes You generally must make estimated tax payments if you expect to owe taxes, including SE tax, of $1,000 or more, when you file your return. I need to amend my taxes Determine your estimated tax by using the worksheets in Publication 505, Tax Withholding and Estimated Tax. I need to amend my taxes Pay the entire estimated tax for 2014 or the first installment by April 15, 2014. I need to amend my taxes See Form 1040-ES for the different payment methods. I need to amend my taxes The April 15 date applies whether or not your tax home and your abode are outside the United States and Puerto Rico. I need to amend my taxes For more information, see chapter 2 of Publication 505. I need to amend my taxes If you perform your services as a common-law employee of the church and your salary is not subject to income tax withholding, you can enter into a voluntary withholding agreement with the church to cover any income and SE tax that may be due. I need to amend my taxes Filing Your Return You must file an income tax return for 2013 if your gross income was at least the amount shown in the third column of Table 4 above. I need to amend my taxes Table 4. I need to amend my taxes 2013 Filing Requirements for Most Taxpayers IF your filing status is . I need to amend my taxes . I need to amend my taxes . I need to amend my taxes AND at the end of 2013 you were* . I need to amend my taxes . I need to amend my taxes . I need to amend my taxes THEN file a return if your gross income** was at least . I need to amend my taxes . I need to amend my taxes . I need to amend my taxes single under age 65 65 or older   $10,000 $11,500   married filing jointly*** under 65 (both spouses) 65 or older (one spouse) 65 or older (both spouses)   $20,000  $21,200  $22,400   married filing separately any age   $3,900   head of household under 65 65 or older   $12,850 $14,350   qualifying widow(er) with dependent child under 65 65 or older   $16,100  $17,300   * If you were born on January 1, 1949, you are considered to be age 65 at the end of 2013. I need to amend my taxes ** Gross income means all income you received in the form of money, goods, property, and services that is not exempt from tax, including any income from sources outside the United States or from the sale of your main home (even if you can exclude part or all of it). I need to amend my taxes Do not include any social security benefits unless (a) you are married filing a separate return and you lived with your spouse at any time in 2013, or (b) one-half of your social security benefits plus your other gross income and any tax-exempt interest is more than $25,000 ($32,000 if married filing jointly). I need to amend my taxes If (a) or (b) applies, see the instructions for Form 1040, lines 20a and 20b, to figure the taxable part of social security benefits you must include in gross income. I need to amend my taxes Gross income includes gains, but not losses, reported on Form 8949 or Schedule D (Form 1040). I need to amend my taxes Gross income from a business means, for example, the amount on Schedule C (Form 1040), line 7, or Schedule F (Form 1040), line 9. I need to amend my taxes But, in figuring gross income, do not reduce your income by any losses, including any loss on Schedule C (Form 1040), line 7, or Schedule F (Form 1040), line 9. I need to amend my taxes *** If you did not live with your spouse at the end of 2013 (or on the date your spouse died) and your gross income was at least $3,900, you must file a return regardless of your age. I need to amend my taxes Additional requirements. I need to amend my taxes   Even if your income was less than the amount shown in Table 4, you must file an income tax return on Form 1040, and attach a completed Schedule SE (Form 1040), if:    You are not exempt from SE tax, and you have net earnings from self-employment (discussed earlier under Self-Employment Tax: Figuring Net Earnings ) of $400 or more in the tax year, You are exempt from SE tax on earnings from ministerial services and you have $400 or more of other net earnings subject to SE tax, or You had wages of $108. I need to amend my taxes 28 or more from an electing church or church-controlled organization (see Coverage of Religious Workers (Church Employees) , earlier, under Social Security Coverage). I need to amend my taxes Self-employment tax. I need to amend my taxes   If you are liable for SE tax, you must file Schedule SE (Form 1040) with your return. I need to amend my taxes   If you filed Form 4361 and did not receive approval from the IRS, you must pay SE tax on your ministerial earnings, as explained earlier. I need to amend my taxes You should report ministerial earnings and expenses from nonemployee ministerial services on Schedule C or C-EZ (Form 1040). I need to amend my taxes You should then carry the net amount over to line 2 of Schedule SE (Form 1040), Section A or B. I need to amend my taxes However, if you were a duly ordained minister who was an employee of a church and you must pay SE tax on the wages you earned for those services, do not report those wages on Schedule C or C-EZ (Form 1040). I need to amend my taxes Instead, report those wages less any allowable expenses (including any unreimbursed employee business expenses), on line 2 of Schedule SE (Form 1040), Section A or B, and attach an explanation. I need to amend my taxes Note. I need to amend my taxes For income tax purposes, the unreimbursed employee business expenses that you incurred as an employee of the church and subtracted from your wages on line 2 of Schedule SE (Form 1040) are allowed only as an itemized deduction on Schedule A (Form 1040) if they exceed 2% of your adjusted gross income. I need to amend my taxes You cannot deduct these expenses on Schedule C or C-EZ (Form 1040) as a trade or business expense. I need to amend my taxes Exemption from SE tax. I need to amend my taxes   If you filed Form 4361 and received IRS approval not to be taxed on your ministerial earnings, and you do not have any other income subject to SE tax, do not file Schedule SE (Form 1040). I need to amend my taxes Instead, enter “Exempt—Form 4361” on the dotted line next to Form 1040, line 56. I need to amend my taxes However, if you had net earnings from another trade or business of $400 or more subject to SE tax, see line A at the top of Schedule SE (Form 1040), Section B. I need to amend my taxes    If you filed Form 4029 and received IRS approval not to be taxed on those earnings, and you do not have any other income subject to SE tax, do not file Schedule SE (Form 1040). I need to amend my taxes Instead, enter “Exempt—Form 4029” on the dotted line next to Form 1040, line 56. I need to amend my taxes More information. I need to amend my taxes   For more information on filing your return, including when and where to file it, see the Instructions for Form 1040. I need to amend my taxes Retirement Savings Arrangements Retirement savings arrangements are plans that offer you a tax-favored way to save for your retirement. I need to amend my taxes You generally can deduct your contributions to the plan. I need to amend my taxes Your contributions and the earnings on them are not taxed until they are distributed. I need to amend my taxes Retirement plans for the self-employed. I need to amend my taxes   To set up one of the following plans you must be self-employed. I need to amend my taxes SEP (simplified employee pension) plan. I need to amend my taxes SIMPLE (savings incentive match plan for employees) plan. I need to amend my taxes Qualified retirement plan (also called a Keogh or H. I need to amend my taxes R. I need to amend my taxes 10 plan). I need to amend my taxes   The common-law rules determine whether you are an employee or a self-employed person for purposes of setting up a retirement plan. I need to amend my taxes See Employment status for other tax purposes under Coverage of Members of the Clergy, earlier. I need to amend my taxes This result is true even if your compensation for ministerial services (defined earlier) is subject to SE tax. I need to amend my taxes   For example, if a congregation pays you a salary for performing ministerial services and you are subject to the congregation's control, you generally are a common-law employee. I need to amend my taxes You are not a self-employed person for purposes of setting up a retirement plan. I need to amend my taxes This result is true even if your salary is subject to SE tax. I need to amend my taxes   On the other hand, amounts received directly from members of the congregation, such as fees for performing marriages, baptisms, or other personal services that you report on Schedule C or C-EZ (Form 1040), are earnings from self-employment for all tax purposes. I need to amend my taxes   For more information on establishing a SEP, SIMPLE, or qualified retirement plan, see Publication 560, Retirement Plans for Small Business (SEP, SIMPLE, and Qualified Plans). I need to amend my taxes Individual retirement arrangements (IRAs). I need to amend my taxes   The traditional IRA and the Roth IRA are two individual retirement arrangements you can use to save money for your retirement. I need to amend my taxes Generally, your maximum contribution for 2013 to either of these plans (or to a combination of the two) is the smaller of your taxable compensation or $5,500 ($6,500 if you are age 50 or older). I need to amend my taxes   However, your maximum contribution to a Roth IRA will be further reduced or eliminated if your adjusted gross income is above a certain amount. I need to amend my taxes You cannot deduct Roth IRA contributions, but if you satisfy certain requirements, all earnings in the Roth IRA are tax free and neither your nondeductible contributions nor any earnings on them are taxable when distributed. I need to amend my taxes   If you contribute to a traditional IRA, your contribution may be deductible. I need to amend my taxes However, your deduction may be reduced or eliminated if you or your spouse is covered by an employer retirement plan (including, but not limited to, a SEP, SIMPLE, or qualified retirement plan). I need to amend my taxes   For more information on IRAs, see Publication 590. I need to amend my taxes Tax-sheltered annuity plans. I need to amend my taxes   Church employees, members of religious orders, and duly ordained, commissioned, or licensed ministers working as ministers or chaplains can participate in tax-sheltered annuity (403(b)) plans. I need to amend my taxes For more