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Irs Amendments

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Irs Amendments

Irs amendments Publication 15 - Main Content Table of Contents 1. Irs amendments Employer Identification Number (EIN) 2. Irs amendments Who Are Employees?Relief provisions. Irs amendments Business Owned and Operated by Spouses 3. Irs amendments Family Employees 4. Irs amendments Employee's Social Security Number (SSN)Registering for SSNVS. Irs amendments 5. Irs amendments Wages and Other CompensationAccountable plan. Irs amendments Nonaccountable plan. Irs amendments Per diem or other fixed allowance. Irs amendments 50% test. Irs amendments Health Savings Accounts and medical savings accounts. Irs amendments Nontaxable fringe benefits. Irs amendments When fringe benefits are treated as paid. Irs amendments Valuation of fringe benefits. Irs amendments Withholding on fringe benefits. Irs amendments Depositing taxes on fringe benefits. Irs amendments 6. Irs amendments TipsOrdering rule. Irs amendments 7. Irs amendments Supplemental Wages 8. Irs amendments Payroll Period 9. Irs amendments Withholding From Employees' WagesIncome Tax Withholding Social Security and Medicare Taxes Part-Time Workers 10. Irs amendments Required Notice to Employees About the Earned Income Credit (EIC) 11. Irs amendments Depositing TaxesWhen To Deposit How To Deposit Deposit Penalties 12. Irs amendments Filing Form 941 or Form 944 13. Irs amendments Reporting Adjustments to Form 941 or Form 944Current Period Adjustments Prior Period Adjustments Wage Repayments 14. Irs amendments Federal Unemployment (FUTA) TaxSuccessor employer. Irs amendments Household employees. Irs amendments When to deposit. Irs amendments Household employees. Irs amendments Electronic filing by reporting agents. Irs amendments 16. Irs amendments How To Use the Income Tax Withholding TablesWage Bracket Method Percentage Method Alternative Methods of Income Tax Withholding How To Get Tax Help 1. Irs amendments Employer Identification Number (EIN) If you are required to report employment taxes or give tax statements to employees or annuitants, you need an EIN. Irs amendments The EIN is a nine-digit number the IRS issues. Irs amendments The digits are arranged as follows: 00-0000000. Irs amendments It is used to identify the tax accounts of employers and certain others who have no employees. Irs amendments Use your EIN on all of the items you send to the IRS and SSA. Irs amendments For more information, see Publication 1635, Employer Identification Number: Understanding Your EIN. Irs amendments If you do not have an EIN, you may apply for one online. Irs amendments Go to the IRS. Irs amendments gov and click on the Apply for an EIN Online link under Tools. Irs amendments 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. Irs amendments Do not use an SSN in place of an EIN. Irs amendments You should have only one EIN. Irs amendments If you have more than one and are not sure which one to use, call 1-800-829-4933 or 1-800-829-4059 (TDD/TTY for persons who are deaf, hard of hearing, or have a speech disability). Irs amendments Give the numbers you have, the name and address to which each was assigned, and the address of your main place of business. Irs amendments The IRS will tell you which number to use. Irs amendments If you took over another employer's business (see Successor employer in section 9), do not use that employer's EIN. Irs amendments If you have applied for an EIN but do not have your EIN by the time a return is due, file a paper return and write “Applied For” and the date you applied for it in the space shown for the number. Irs amendments 2. Irs amendments Who Are Employees? Generally, employees are defined either under common law or under statutes for certain situations. Irs amendments See Publication 15-A for details on statutory employees and nonemployees. Irs amendments Employee status under common law. Irs amendments   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. Irs amendments This is so even when you give the employee freedom of action. Irs amendments What matters is that you have the right to control the details of how the services are performed. Irs amendments See Publication 15-A for more information on how to determine whether an individual providing services is an independent contractor or an employee. Irs amendments   Generally, people in business for themselves are not employees. Irs amendments For example, doctors, lawyers, veterinarians, and others in an independent trade in which they offer their services to the public are usually not employees. Irs amendments However, if the business is incorporated, corporate officers who work in the business are employees of the corporation. Irs amendments   If an employer-employee relationship exists, it does not matter what it is called. Irs amendments The employee may be called an agent or independent contractor. Irs amendments It also does not matter how payments are measured or paid, what they are called, or if the employee works full or part time. Irs amendments Statutory employees. Irs amendments   If someone who works for you is not an employee under the common law rules discussed earlier, do not withhold federal income tax from his or her pay, unless backup withholding applies. Irs amendments Although the following persons may not be common law employees, they are considered employees by statute for social security, Medicare, and FUTA tax purposes under certain conditions. Irs amendments An agent (or commission) driver who delivers food, beverages (other than milk), laundry, or dry cleaning for someone else. Irs amendments A full-time life insurance salesperson who sells primarily for one company. Irs amendments A homeworker who works by guidelines of the person for whom the work is done, with materials furnished by and returned to that person or to someone that person designates. Irs amendments A traveling or city salesperson (other than an agent-driver or commission-driver) who works full time (except for sideline sales activities) for one firm or person getting orders from customers. Irs amendments The orders must be for merchandise for resale or supplies for use in the customer's business. Irs amendments The customers must be retailers, wholesalers, contractors, or operators of hotels, restaurants, or other businesses dealing with food or lodging. Irs amendments    Statutory nonemployees. Irs amendments   Direct sellers, qualified real estate agents, and certain companion sitters are, by law, considered nonemployees. Irs amendments They are generally treated as self-employed for all federal tax purposes, including income and employment taxes. Irs amendments H-2A agricultural workers. Irs amendments   On Form W-2, do not check box 13 (Statutory employee), as H-2A workers are not statutory employees. Irs amendments Treating employees as nonemployees. Irs amendments   You will generally be liable for social security and Medicare taxes and withheld income tax if you do not deduct and withhold these taxes because you treated an employee as a nonemployee. Irs amendments You may be able to calculate your liability using special section 3509 rates for the employee share of social security and Medicare taxes and the federal income tax withholding. Irs amendments The applicable rates depend on whether you filed required Forms 1099. Irs amendments You cannot recover the employee share of social security, or Medicare tax, or income tax withholding from the employee if the tax is paid under section 3509. Irs amendments You are liable for the income tax withholding regardless of whether the employee paid income tax on the wages. Irs amendments You continue to owe the full employer share of social security and Medicare taxes. Irs amendments The employee remains liable for the employee share of social security and Medicare taxes. Irs amendments See Internal Revenue Code section 3509 for details. Irs amendments Also see the Instructions for Form 941-X. Irs amendments   Section 3509 rates are not available if you intentionally disregard the requirement to withhold taxes from the employee or if you withheld income taxes but not social security or Medicare taxes. Irs amendments Section 3509 is not available for reclassifying statutory employees. Irs amendments See Statutory employees , earlier in this section. Irs amendments   If the employer issued required information returns, the section 3509 rates are: For social security taxes; employer rate of 6. Irs amendments 2% plus 20% of the employee rate (see the Instructions for Form 941-X). Irs amendments For Medicare taxes; employer rate of 1. Irs amendments 45% plus 20% of the employee rate of 1. Irs amendments 45%, for a total rate of 1. Irs amendments 74% of wages. Irs amendments For Additional Medicare Tax; 0. Irs amendments 18% (20% of the employee rate of 0. Irs amendments 9%) of wages subject to Additional Medicare Tax. Irs amendments For income tax withholding, the rate is 1. Irs amendments 5% of wages. Irs amendments   If the employer did not issue required information returns, the section 3509 rates are: For social security taxes; employer rate of 6. Irs amendments 2% plus 40% of the employee rate (see the Instructions for Form 941-X). Irs amendments For Medicare taxes; employer rate of 1. Irs amendments 45% plus 40% of the employee rate of 1. Irs amendments 45%, for a total rate of 2. Irs amendments 03% of wages. Irs amendments For Additional Medicare Tax; 0. Irs amendments 36% (40% of the employee rate of 0. Irs amendments 9%) of wages subject to Additional Medicare Tax. Irs amendments For income tax withholding, the rate is 3. Irs amendments 0% of wages. Irs amendments Relief provisions. Irs amendments   If you have a reasonable basis for not treating a worker as an employee, you may be relieved from having to pay employment taxes for that worker. Irs amendments To get this relief, you must file all required federal tax returns, including information returns, on a basis consistent with your treatment of the worker. Irs amendments You (or your predecessor) must not have treated any worker holding a substantially similar position as an employee for any periods beginning after 1977. Irs amendments See Publication 1976, Do You Qualify for Relief Under Section 530. Irs amendments IRS help. Irs amendments   If you want the IRS to determine whether a worker is an employee, file Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding. Irs amendments Voluntary Classification Settlement Program (VCSP). Irs amendments   Employers who are currently treating their workers (or a class or group of workers) as independent contractors or other nonemployees and want to voluntarily reclassify their workers as employees for future tax periods may be eligible to participate in the VCSP if certain requirements are met. Irs amendments To apply, use Form 8952, Application for Voluntary Classification Settlement Program (VCSP). Irs amendments For more information visit IRS. Irs amendments gov and enter “VCSP” in the search box. Irs amendments Business Owned and Operated by Spouses If you and your spouse jointly own and operate a business and share in the profits and losses, you are partners in a partnership, whether or not you have a formal partnership agreement. Irs amendments See Publication 541, Partnerships, for more details. Irs amendments The partnership is considered the employer of any employees, and is liable for any employment taxes due on wages paid to its employees. Irs amendments Exception—Qualified joint venture. Irs amendments   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. Irs amendments 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). Irs amendments   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. Irs amendments Each spouse must also file a separate Schedule SE to pay self-employment taxes, as applicable. Irs amendments   Spouses using the qualified joint venture rules are treated as sole proprietors for federal tax purposes and generally do not need an EIN. Irs amendments 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. Irs amendments Generally, filing as a qualified joint venture will not increase the spouses' total tax owed on the joint income tax return. Irs amendments 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. Irs amendments    Note. Irs amendments If your spouse is your employee, not your partner, see One spouse employed by another in section 3. Irs amendments   For more information on qualified joint ventures, visit IRS. Irs amendments gov and enter “qualified joint venture” in the search box. Irs amendments Exception—Community income. Irs amendments   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. Irs amendments S. Irs amendments possession, you can treat the business either as a sole proprietorship (of the spouse who carried on the business) or a partnership. Irs amendments You may still make an election to be taxed as a qualified joint venture instead of a partnership. Irs amendments See Exception—Qualified joint venture , earlier. Irs amendments 3. Irs amendments Family Employees Child employed by parents. Irs amendments   Payments for the services of a child under age 18 who works for his or her parent in a trade or business are not subject to social security and Medicare taxes if the trade or business is a sole proprietorship or a partnership in which each partner is a parent of the child. Irs amendments If these payments are for work other than in a trade or business, such as domestic work in the parent's private home, they are not subject to social security and Medicare taxes until the child reaches age 21. Irs amendments However, see Covered services of a child or spouse , later in this section. Irs amendments Payments for the services of a child under age 21 who works for his or her parent, whether or not in a trade or business, are not subject to FUTA tax. Irs amendments Payments for the services of a child of any age who works for his or her parent are generally subject to income tax withholding unless the payments are for domestic work in the parent's home, or unless the payments are for work other than in a trade or business and are less than $50 in the quarter or the child is not regularly employed to do such work. Irs amendments One spouse employed by another. Irs amendments   The wages for the services of an individual who works for his or her spouse in a trade or business are subject to income tax withholding and social security and Medicare taxes, but not to FUTA tax. Irs amendments However, the payments for services of one spouse employed by another in other than a trade or business, such as domestic service in a private home, are not subject to social security, Medicare, and FUTA taxes. Irs amendments Covered services of a child or spouse. Irs amendments   The wages for the services of a child or spouse are subject to income tax withholding as well as social security, Medicare, and FUTA taxes if he or she works for: A corporation, even if it is controlled by the child's parent or the individual's spouse; A partnership, even if the child's parent is a partner, unless each partner is a parent of the child; A partnership, even if the individual's spouse is a partner; or An estate, even if it is the estate of a deceased parent. Irs amendments Parent employed by son or daughter. Irs amendments   When the employer is a son or daughter employing his or her parent the following rules apply. Irs amendments Payments for the services of a parent in the son’s or daughter’s (the employer’s) trade or business are subject to income tax withholding and social security and Medicare taxes. Irs amendments Payments for the services of a parent not in the son’s or daughter’s (the employer’s) trade or business are generally not subject to social security and Medicare taxes. Irs amendments    Social security and Medicare taxes do apply to payments made to a parent for domestic services if all of the following apply: The parent is employed by his or her son or daughter; The son or daughter (the employer) has a child or stepchild living in the home; The son or daughter (the employer) is a widow or widower, divorced, or living with a spouse who, because of a mental or physical condition, cannot care for the child or stepchild for at least 4 continuous weeks in a calendar quarter; and The child or stepchild is either under age 18 or requires the personal care of an adult for at least 4 continuous weeks in a calendar quarter due to a mental or physical condition. Irs amendments   Payments made to a parent employed by his or her child are not subject to FUTA tax, regardless of the type of services provided. Irs amendments 4. Irs amendments Employee's Social Security Number (SSN) You are required to get each employee's name and SSN and to enter them on Form W-2. Irs amendments This requirement also applies to resident and nonresident alien employees. Irs amendments You should ask your employee to show you his or her social security card. Irs amendments The employee may show the card if it is available. Irs amendments Do not accept a social security card that says “Not valid for employment. Irs amendments ” A social security number issued with this legend does not permit employment. Irs amendments You may, but are not required to, photocopy the social security card if the employee provides it. Irs amendments If you do not provide the correct employee name and SSN on Form W-2, you may owe a penalty unless you have reasonable cause. Irs amendments See Publication 1586, Reasonable Cause Regulations & Requirements for Missing and Incorrect Name/TINs, for information on the requirement to solicit the employee's SSN. Irs amendments Applying for a social security card. Irs amendments   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. Irs amendments You can get Form SS-5 at SSA offices, by calling 1-800-772-1213, or from the SSA website at www. Irs amendments socialsecurity. Irs amendments gov/online/ss-5. Irs amendments html. Irs amendments The employee must complete and sign Form SS-5; it cannot be filed by the employer. Irs amendments 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. Irs amendments Applying for a social security number. Irs amendments   If you file Form W-2 on paper and your employee applied for an SSN but does not have one when you must file Form W-2, enter “Applied For” on the form. Irs amendments If you are filing electronically, enter all zeros (000-00-000) in the social security number field. Irs amendments 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. Irs amendments Furnish copies B, C, and 2 of Form W-2c to the employee. Irs amendments Up to 25 Forms W-2c for each Form W-3c, Transmittal of Corrected Wage and Tax Statements, may now be filed per session over the Internet, with no limit on the number of sessions. Irs amendments For more information, visit the SSA's Employer W-2 Filing Instructions & Information webpage at www. Irs amendments socialsecurity. Irs amendments gov/employer. Irs amendments Advise your employee to correct the SSN on his or her original Form W-2. Irs amendments Correctly record the employee's name and SSN. Irs amendments   Record the name and number of each employee as they are shown on the employee's social security card. Irs amendments 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. Irs amendments 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. Irs amendments 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 for the most recently filed Form W-2. Irs amendments It is not necessary to correct other years if the previous name and number were used for years before the most recent Form W-2. Irs amendments IRS individual taxpayer identification numbers (ITINs) for aliens. Irs amendments   Do not accept an ITIN in place of an SSN for employee identification or for work. Irs amendments An ITIN is only available to resident and nonresident aliens who are not eligible for U. Irs amendments S. Irs amendments employment and need identification for other tax purposes. Irs amendments You can identify an ITIN because it is a nine-digit number, beginning with the number “9” with either a “7” or “8” as the fourth digit and is formatted like an SSN (for example, 9NN-7N-NNNN). Irs amendments    An individual with an ITIN who later becomes eligible to work in the United States must obtain an SSN. Irs amendments 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. Irs amendments Do not use an ITIN in place of an SSN on Form W-2. Irs amendments Verification of social security numbers. Irs amendments   Employers and authorized reporting agents can use the Social Security Number Verification Service (SSNVS) to instantly verify up to 10 names and SSNs (per screen) at a time, or submit an electronic file of up to 250,000 names and SSNs and usually receive the results the next business day. Irs amendments Visit www. Irs amendments socialsecurity. Irs amendments gov/employer/ssnv. Irs amendments htm for more information. Irs amendments Registering for SSNVS. Irs amendments   You must register online and receive authorization from your employer to use SSNVS. Irs amendments To register, visit SSA's website at www. Irs amendments ssa. Irs amendments gov/employer and click on the Business Services Online link. Irs amendments Follow the registration instructions to obtain a user identification (ID) and password. Irs amendments You will need to provide the following information about yourself and your company. Irs amendments Name. Irs amendments SSN. Irs amendments Date of birth. Irs amendments Type of employer. Irs amendments EIN. Irs amendments Company name, address, and telephone number. Irs amendments Email address. Irs amendments   When you have completed the online registration process, SSA will mail a one-time activation code to your employer. Irs amendments You must enter the activation code online to use SSNVS. Irs amendments 5. Irs amendments Wages and Other Compensation Wages subject to federal employment taxes generally include all pay you give to an employee for services performed. Irs amendments The pay may be in cash or in other forms. Irs amendments It includes salaries, vacation allowances, bonuses, commissions, and fringe benefits. Irs amendments It does not matter how you measure or make the payments. Irs amendments Amounts an employer pays as a bonus for signing or ratifying a contract in connection with the establishment of an employer-employee relationship and an amount paid to an employee for cancellation of an employment contract and relinquishment of contract rights are wages subject to social security, Medicare, and FUTA taxes and income tax withholding. Irs amendments Also, compensation paid to a former employee for services performed while still employed is wages subject to employment taxes. Irs amendments More information. Irs amendments   See section 6 for a discussion of tips and section 7 for a discussion of supplemental wages. Irs amendments Also, see section 15 for exceptions to the general rules for wages. Irs amendments Publication 15-A provides additional information on wages, including nonqualified deferred compensation, and other compensation. Irs amendments Publication 15-B provides information on other forms of compensation, including: Accident and health benefits, Achievement awards, Adoption assistance, Athletic facilities, De minimis (minimal) benefits, Dependent care assistance, Educational assistance, Employee discounts, Employee stock options, Employer-provided cell phones, Group-term life insurance coverage, Health Savings Accounts, Lodging on your business premises, Meals, Moving expense reimbursements, No-additional-cost services, Retirement planning services, Transportation (commuting) benefits, Tuition reduction, and Working condition benefits. Irs amendments Employee business expense reimbursements. Irs amendments   A reimbursement or allowance arrangement is a system by which you pay the advances, reimbursements, and charges for your employees' business expenses. Irs amendments How you report a reimbursement or allowance amount depends on whether you have an accountable or a nonaccountable plan. Irs amendments If a single payment includes both wages and an expense reimbursement, you must specify the amount of the reimbursement. Irs amendments   These rules apply to all ordinary and necessary employee business expenses that would otherwise qualify for a deduction by the employee. Irs amendments Accountable plan. Irs amendments   To be an accountable plan, your reimbursement or allowance arrangement must require your employees to meet all three of the following rules. Irs amendments They must have paid or incurred deductible expenses while performing services as your employees. Irs amendments The reimbursement or advance must be paid for the expense and must not be an amount that would have otherwise been paid by the employee. Irs amendments They must substantiate these expenses to you within a reasonable period of time. Irs amendments They must return any amounts in excess of substantiated expenses within a reasonable period of time. Irs amendments   Amounts paid under an accountable plan are not wages and are not subject to income, social security, Medicare, and FUTA taxes. Irs amendments   If the expenses covered by this arrangement are not substantiated (or amounts in excess of substantiated expenses are not returned within a reasonable period of time), the amount paid under the arrangement in excess of the substantiated expenses is treated as paid under a nonaccountable plan. Irs amendments This amount is subject to income, social security, Medicare, and FUTA taxes for the first payroll period following the end of the reasonable period of time. Irs amendments   A reasonable period of time depends on the facts and circumstances. Irs amendments Generally, it is considered reasonable if your employees receive their advance within 30 days of the time they incur the expenses, adequately account for the expenses within 60 days after the expenses were paid or incurred, and return any amounts in excess of expenses within 120 days after the expenses were paid or incurred. Irs amendments Also, it is considered reasonable if you give your employees a periodic statement (at least quarterly) that asks them to either return or adequately account for outstanding amounts and they do so within 120 days. Irs amendments Nonaccountable plan. Irs amendments   Payments to your employee for travel and other necessary expenses of your business under a nonaccountable plan are wages and are treated as supplemental wages and subject to income, social security, Medicare, and FUTA taxes. Irs amendments Your payments are treated as paid under a nonaccountable plan if: Your employee is not required to or does not substantiate timely those expenses to you with receipts or other documentation, You advance an amount to your employee for business expenses and your employee is not required to or does not return timely any amount he or she does not use for business expenses, You advance or pay an amount to your employee regardless of whether you reasonably expect the employee to have business expenses related to your business, or You pay an amount as a reimbursement you would have otherwise paid as wages. Irs amendments   See section 7 for more information on supplemental wages. Irs amendments Per diem or other fixed allowance. Irs amendments   You may reimburse your employees by travel days, miles, or some other fixed allowance under the applicable revenue procedure. Irs amendments In these cases, your employee is considered to have accounted to you if your reimbursement does not exceed rates established by the Federal Government. Irs amendments The 2013 standard mileage rate for auto expenses was 56. Irs amendments 5 cents per mile. Irs amendments The rate for 2014 is 56 cents per mile. Irs amendments   The government per diem rates for meals and lodging in the continental United States are listed in Publication 1542, Per Diem Rates. Irs amendments Other than the amount of these expenses, your employees' business expenses must be substantiated (for example, the business purpose of the travel or the number of business miles driven). Irs amendments   If the per diem or allowance paid exceeds the amounts substantiated, you must report the excess amount as wages. Irs amendments This excess amount is subject to income tax withholding and payment of social security, Medicare, and FUTA taxes. Irs amendments Show the amount equal to the substantiated amount (for example, the nontaxable portion) in box 12 of Form W-2 using code “L. Irs amendments ” Wages not paid in money. Irs amendments   If in the course of your trade or business you pay your employees in a medium that is neither cash nor a readily negotiable instrument, such as a check, you are said to pay them “in kind. Irs amendments ” Payments in kind may be in the form of goods, lodging, food, clothing, or services. Irs amendments Generally, the fair market value of such payments at the time they are provided is subject to federal income tax withholding and social security, Medicare, and FUTA taxes. Irs amendments   However, noncash payments for household work, agricultural labor, and service not in the employer's trade or business are exempt from social security, Medicare, and FUTA taxes. Irs amendments Withhold income tax on these payments only if you and the employee agree to do so. Irs amendments Nonetheless, noncash payments for agricultural labor, such as commodity wages, are treated as cash payments subject to employment taxes if the substance of the transaction is a cash payment. Irs amendments Moving expenses. Irs amendments   Reimbursed and employer-paid qualified moving expenses (those that would otherwise be deductible by the employee) paid under an accountable plan are not includible in an employee's income unless you have knowledge the employee deducted the expenses in a prior year. Irs amendments Reimbursed and employer-paid nonqualified moving expenses are includible in income and are subject to employment taxes and income tax withholding. Irs amendments For more information on moving expenses, see Publication 521, Moving Expenses. Irs amendments Meals and lodging. Irs amendments   The value of meals is not taxable income and is not subject to income tax withholding and social security, Medicare, and FUTA taxes if the meals are furnished for the employer's convenience and on the employer's premises. Irs amendments The value of lodging is not subject to income tax withholding and social security, Medicare, and FUTA taxes if the lodging is furnished for the employer's convenience, on the employer's premises, and as a condition of employment. Irs amendments    “For the convenience of the employer” means you have a substantial business reason for providing the meals and lodging other than to provide additional compensation to the employee. Irs amendments For example, meals you provide at the place of work so that an employee is available for emergencies during his or her lunch period are generally considered to be for your convenience. Irs amendments   However, whether meals or lodging are provided for the convenience of the employer depends on all of the facts and circumstances. Irs amendments A written statement that the meals or lodging are for your convenience is not sufficient. Irs amendments 50% test. Irs amendments   If over 50% of the employees who are provided meals on an employer's business premises receive these meals for the convenience of the employer, all meals provided on the premises are treated as furnished for the convenience of the employer. Irs amendments If this 50% test is met, the value of the meals is excludable from income for all employees and is not subject to federal income tax withholding or employment taxes. Irs amendments For more information, see Publication 15-B. Irs amendments Health insurance plans. Irs amendments   If you pay the cost of an accident or health insurance plan for your employees, including an employee's spouse and dependents, your payments are not wages and are not subject to social security, Medicare, and FUTA taxes, or federal income tax withholding. Irs amendments Generally, this exclusion also applies to qualified long-term care insurance contracts. Irs amendments However, for income tax withholding, the value of health insurance benefits must be included in the wages of S corporation employees who own more than 2% of the S corporation (2% shareholders). Irs amendments For social security, Medicare, and FUTA taxes, the health insurance benefits are excluded from the wages only for employees and their dependents or for a class or classes of employees and their dependents. Irs amendments See Announcement 92-16 for more information. Irs amendments You can find Announcement 92-16 on page 53 of Internal Revenue Bulletin 1992-5. Irs amendments Health Savings Accounts and medical savings accounts. Irs amendments   Your contributions to an employee's Health Savings Account (HSA) or Archer medical savings account (MSA) are not subject to social security, Medicare, or FUTA taxes, or federal income tax withholding if it is reasonable to believe at the time of payment of the contributions they will be excludable from the income of the employee. Irs amendments To the extent it is not reasonable to believe they will be excludable, your contributions are subject to these taxes. Irs amendments Employee contributions to their HSAs or MSAs through a payroll deduction plan must be included in wages and are subject to social security, Medicare, and FUTA taxes and income tax withholding. Irs amendments However, HSA contributions made under a salary reduction arrangement in a section 125 cafeteria plan are not wages and are not subject to employment taxes or withholding. Irs amendments For more information, see the Instructions for Form 8889, Health Savings Accounts (HSAs). Irs amendments Medical care reimbursements. Irs amendments   Generally, medical care reimbursements paid for an employee under an employer's self-insured medical reimbursement plan are not wages and are not subject to social security, Medicare, and FUTA taxes, or income tax withholding. Irs amendments See Publication 15-B for an exception for highly compensated employees. Irs amendments Differential wage payments. Irs amendments   Differential wage payments are any payments made by an employer to an individual for a period during which the individual is performing service in the uniformed services while on active duty for a period of more than 30 days and represent all or a portion of the wages the individual would have received from the employer if the individual were performing services for the employer. Irs amendments   Differential wage payments are wages for income tax withholding, but are not subject to social security, Medicare, or FUTA taxes. Irs amendments Employers should report differential wage payments in box 1 of Form W-2. Irs amendments For more information about the tax treatment of differential wage payments, visit IRS. Irs amendments gov and enter “employees in a combat zone” in the search box. Irs amendments Fringe benefits. Irs amendments   You generally must include fringe benefits in an employee's gross income (but see Nontaxable fringe benefits next). Irs amendments The benefits are subject to income tax withholding and employment taxes. Irs amendments Fringe benefits include cars you provide, flights on aircraft you provide, free or discounted commercial flights, vacations, discounts on property or services, memberships in country clubs or other social clubs, and tickets to entertainment or sporting events. Irs amendments In general, the amount you must include is the amount by which the fair market value of the benefits is more than the sum of what the employee paid for it plus any amount the law excludes. Irs amendments There are other special rules you and your employees may use to value certain fringe benefits. Irs amendments See Publication 15-B for more information. Irs amendments Nontaxable fringe benefits. Irs amendments   Some fringe benefits are not taxable (or are minimally taxable) if certain conditions are met. Irs amendments See Publication 15-B for details. Irs amendments The following are some examples of nontaxable fringe benefits. Irs amendments Services provided to your employees at no additional cost to you. Irs amendments Qualified employee discounts. Irs amendments Working condition fringes that are property or services the employee could deduct as a business expense if he or she had paid for it. Irs amendments Examples include a company car for business use and subscriptions to business magazines. Irs amendments Certain minimal value fringes (including an occasional cab ride when an employee must work overtime and meals you provide at eating places you run for your employees if the meals are not furnished at below cost). Irs amendments Qualified transportation fringes subject to specified conditions and dollar limitations (including transportation in a commuter highway vehicle, any transit pass, and qualified parking). Irs amendments Qualified moving expense reimbursement. Irs amendments See Moving expenses , earlier in this section, for details. Irs amendments The use of on-premises athletic facilities, if substantially all of the use is by employees, their spouses, and their dependent children. Irs amendments Qualified tuition reduction an educational organization provides to its employees for education. Irs amendments For more information, see Publication 970, Tax Benefits for Education. Irs amendments Employer-provided cell phones provided primarily for a noncompensatory business reason. Irs amendments   However, do not exclude the following fringe benefits from the income of highly compensated employees unless the benefit is available to other employees on a nondiscriminatory basis. Irs amendments No-additional-cost services. Irs amendments Qualified employee discounts. Irs amendments Meals provided at an employer operated eating facility. Irs amendments Reduced tuition for education. Irs amendments  For more information, including the definition of a highly compensated employee, see Publication 15-B. Irs amendments When fringe benefits are treated as paid. Irs amendments   You may choose to treat certain noncash fringe benefits as paid by the pay period, by the quarter, or on any other basis you choose as long as you treat the benefits as paid at least once a year. Irs amendments You do not have to make a formal choice of payment dates or notify the IRS of the dates you choose. Irs amendments You do not have to make this choice for all employees. Irs amendments You may change methods as often as you like, as long as you treat all benefits provided in a calendar year as paid by December 31 of the calendar year. Irs amendments See Publication 15-B for more information, including a discussion of the special accounting rule for fringe benefits provided during November and December. Irs amendments Valuation of fringe benefits. Irs amendments   Generally, you must determine the value of fringe benefits no later than January 31 of the next year. Irs amendments Before January 31, you may reasonably estimate the value of the fringe benefits for purposes of withholding and depositing on time. Irs amendments Withholding on fringe benefits. Irs amendments   You may add the value of fringe benefits to regular wages for a payroll period and figure withholding taxes on the total, or you may withhold federal income tax on the value of the fringe benefits at the optional flat 25% supplemental wage rate. Irs amendments However, see Withholding on supplemental wages when an employee receives more than $1 million of supplemental wages during the calendar year in section 7. Irs amendments   You may choose not to withhold income tax on the value of an employee's personal use of a vehicle you provide. Irs amendments You must, however, withhold social security and Medicare taxes on the use of the vehicle. Irs amendments See Publication 15-B for more information on this election. Irs amendments Depositing taxes on fringe benefits. Irs amendments   Once you choose when fringe benefits are paid, you must deposit taxes in the same deposit period you treat the fringe benefits as paid. Irs amendments To avoid a penalty, deposit the taxes following the general deposit rules for that deposit period. Irs amendments   If you determine by January 31 you overestimated the value of a fringe benefit at the time you withheld and deposited for it, you may claim a refund for the overpayment or have it applied to your next employment tax return. Irs amendments See Valuation of fringe benefits , earlier. Irs amendments If you underestimated the value and deposited too little, you may be subject to a failure-to-deposit penalty. Irs amendments See section 11 for information on deposit penalties. Irs amendments   If you deposited the required amount of taxes but withheld a lesser amount from the employee, you can recover from the employee the social security, Medicare, or income taxes you deposited on his or her behalf, and included in the employee's Form W-2. Irs amendments However, you must recover the income taxes before April 1 of the following year. Irs amendments Sick pay. Irs amendments   In general, sick pay is any amount you pay under a plan to an employee who is unable to work because of sickness or injury. Irs amendments These amounts are sometimes paid by a third party, such as an insurance company or an employees' trust. Irs amendments In either case, these payments are subject to social security, Medicare, and FUTA taxes. Irs amendments Sick pay becomes exempt from these taxes after the end of 6 calendar months after the calendar month the employee last worked for the employer. Irs amendments The payments are always subject to federal income tax. Irs amendments See Publication 15-A for more information. Irs amendments 6. Irs amendments Tips Tips your employee receives from customers are generally subject to withholding. Irs amendments Your employee must report cash tips to you by the 10th of the month after the month the tips are received. Irs amendments The report should include tips you paid over to the employee for charge customers, tips the employee received directly from customers, and tips received from other employees under any tip-sharing arrangement. Irs amendments Both directly and indirectly tipped employees must report tips to you. Irs amendments No report is required for months when tips are less than $20. Irs amendments Your employee reports the tips on Form 4070, Employee's Report of Tips to Employer, or on a similar statement. Irs amendments The statement must be signed by the employee and must include: The employee's name, address, and SSN, Your name and address, The month or period the report covers, and The total of tips received during the month or period. Irs amendments Both Forms 4070 and 4070-A, Employee's Daily Record of Tips, are included in Publication 1244, Employee's Daily Record of Tips and Report to Employer. Irs amendments You are permitted to establish a system for electronic tip reporting by employees. Irs amendments See Regulations section 31. Irs amendments 6053-1(d). Irs amendments Collecting taxes on tips. Irs amendments   You must collect income tax, employee social security tax, and employee Medicare tax on the employee's tips. Irs amendments The withholding rules for withholding an employee's share of Medicare tax on tips also apply to withholding the Additional Medicare Tax once wages and tips exceed $200,000 in the calendar year. Irs amendments If an employee reports to you in writing $20 or more of tips in a month, the tips are also subject to FUTA tax. Irs amendments   You can collect these taxes from the employee's wages or from other funds he or she makes available. Irs amendments See Tips treated as supplemental wages in section 7 for more information. Irs amendments Stop collecting the employee social security tax when his or her wages and tips for tax year 2014 reach $117,000; collect the income and employee Medicare taxes for the whole year on all wages and tips. Irs amendments You are responsible for the employer social security tax on wages and tips until the wages (including tips) reach the limit. Irs amendments You are responsible for the employer Medicare tax for the whole year on all wages and tips. Irs amendments File Form 941 or Form 944 to report withholding and employment taxes on tips. Irs amendments Ordering rule. Irs amendments   If, by the 10th of the month after the month for which you received an employee's report on tips, you do not have enough employee funds available to deduct the employee tax, you no longer have to collect it. Irs amendments If there are not enough funds available, withhold taxes in the following order. Irs amendments Withhold on regular wages and other compensation. Irs amendments Withhold social security and Medicare taxes on tips. Irs amendments Withhold income tax on tips. Irs amendments Reporting tips. Irs amendments   Report tips and any collected and uncollected social security and Medicare taxes on Form W-2 and on Form 941, lines 5b, 5c, and 5d (Form 944, lines 4b, 4c, and 4d). Irs amendments Report an adjustment on Form 941, line 9 (Form 944, line 6), for the uncollected social security and Medicare taxes. Irs amendments Enter the amount of uncollected social security tax and Medicare tax on Form W-2, box 12, with codes “A” and “B. Irs amendments ” Do not include any uncollected Additional Medicare Tax in box 12 of Form W-2. Irs amendments See section 13 and the General Instructions for Forms W-2 and W-3. Irs amendments   Revenue Ruling 2012-18 provides guidance for employers regarding social security and Medicare taxes imposed on tips, including information on the reporting of the employer share of social security and Medicare taxes under section 3121(q), the difference between tips and service charges, and the section 45B credit. Irs amendments See Revenue Ruling 2012-18, 2012-26 I. Irs amendments R. Irs amendments B. Irs amendments 1032, available at www. Irs amendments irs. Irs amendments gov/irb/2012-26_IRB/ar07. Irs amendments html. Irs amendments Allocated tips. Irs amendments   If you operate a large food or beverage establishment, you must report allocated tips under certain circumstances. Irs amendments However, do not withhold income, social security, or Medicare taxes on allocated tips. Irs amendments   A large food or beverage establishment is one that provides food or beverages for consumption on the premises, where tipping is customary, and where there were normally more than 10 employees on a typical business day during the preceding year. Irs amendments   The tips may be allocated by one of three methods—hours worked, gross receipts, or good faith agreement. Irs amendments For information about these allocation methods, including the requirement to file Forms 8027 electronically if 250 or more forms are filed, see the Instructions for Form 8027. Irs amendments For information on filing Form 8027 electronically with the IRS, see Publication 1239. Irs amendments Tip Rate Determination and Education Program. Irs amendments   Employers may participate in the Tip Rate Determination and Education Program. Irs amendments The program primarily consists of two voluntary agreements developed to improve tip income reporting by helping taxpayers to understand and meet their tip reporting responsibilities. Irs amendments The two agreements are the Tip Rate Determination Agreement (TRDA) and the Tip Reporting Alternative Commitment (TRAC). Irs amendments A tip agreement, the Gaming Industry Tip Compliance Agreement (GITCA), is available for the gaming (casino) industry. Irs amendments To get more information about TRDA and TRAC agreements, see Publication 3144, Tips on Tips. Irs amendments Additionally, visit IRS. Irs amendments gov and enter “MSU tips” in the search box to get more information about GITCA, TRDA, or TRAC agreements. Irs amendments 7. Irs amendments Supplemental Wages Supplemental wages are wage payments to an employee that are not regular wages. Irs amendments They include, but are not limited to, bonuses, commissions, overtime pay, payments for accumulated sick leave, severance pay, awards, prizes, back pay, retroactive pay increases, and payments for nondeductible moving expenses. Irs amendments Other payments subject to the supplemental wage rules include taxable fringe benefits and expense allowances paid under a nonaccountable plan. Irs amendments How you withhold on supplemental wages depends on whether the supplemental payment is identified as a separate payment from regular wages. Irs amendments See Regulations section 31. Irs amendments 3402(g)-1 for additional guidance for wages paid after January 1, 2007. Irs amendments Also see Revenue Ruling 2008-29, 2008-24 I. Irs amendments R. Irs amendments B. Irs amendments 1149, available at www. Irs amendments irs. Irs amendments gov/irb/2008-24_IRB/ar08. Irs amendments html. Irs amendments Withholding on supplemental wages when an employee receives more than $1 million of supplemental wages from you during the calendar year. Irs amendments   Special rules apply to the extent supplemental wages paid to any one employee during the calendar year exceed $1 million. Irs amendments If a supplemental wage payment, together with other supplemental wage payments made to the employee during the calendar year, exceeds $1 million, the excess is subject to withholding at 39. Irs amendments 6% (or the highest rate of income tax for the year). Irs amendments Withhold using the 39. Irs amendments 6% rate without regard to the employee's Form W-4. Irs amendments In determining supplemental wages paid to the employee during the year, include payments from all businesses under common control. Irs amendments For more information, see Treasury Decision 9276, 2006-37 I. Irs amendments R. Irs amendments B. Irs amendments 423, available at www. Irs amendments irs. Irs amendments gov/irb/2006-37_IRB/ar09. Irs amendments html. Irs amendments Withholding on supplemental wage payments to an employee who does not receive $1 million of supplemental wages during the calendar year. Irs amendments   If the supplemental wages paid to the employee during the calendar year are less than or equal to $1 million, the following rules apply in determining the amount of income tax to be withheld. Irs amendments Supplemental wages combined with regular wages. Irs amendments   If you pay supplemental wages with regular wages but do not specify the amount of each, withhold federal income tax as if the total were a single payment for a regular payroll period. Irs amendments Supplemental wages identified separately from regular wages. Irs amendments   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 income tax from your employee's regular wages. Irs amendments If you withheld 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. Irs amendments Withhold a flat 25% (no other percentage allowed). Irs amendments If the supplemental wages are paid concurrently with regular wages, add the supplemental wages to the concurrently paid regular wages. Irs amendments 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. Irs amendments Figure the income tax withholding as if the total of the regular wages and supplemental wages is a single payment. Irs amendments Subtract the tax withheld from the regular wages. Irs amendments Withhold the remaining tax from the supplemental wages. Irs amendments 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 the previous supplemental wage payments, and withhold the remaining tax. Irs amendments If you did not withhold income tax from the employee's regular wages in the current or immediately preceding calendar year, use method 1-b. Irs amendments This would occur, for example, when the value of the employee's withholding allowances claimed on Form W-4 is more than the wages. Irs amendments Regardless of the method you use to withhold income tax on supplemental wages, they are subject to social security, Medicare, and FUTA taxes. Irs amendments Example 1. Irs amendments You pay John Peters a base salary on the 1st of each month. Irs amendments He is single and claims one withholding allowance. Irs amendments In January he is paid $1,000. Irs amendments Using the wage bracket tables, you withhold $50 from this amount. Irs amendments In February, he receives salary of $1,000 plus a commission of $2,000, which you combine with regular wages and do not separately identify. Irs amendments You figure the withholding based on the total of $3,000. Irs amendments The correct withholding from the tables is $338. Irs amendments Example 2. Irs amendments You pay Sharon Warren a base salary on the 1st of each month. Irs amendments She is single and claims one allowance. Irs amendments Her May 1 pay is $2,000. Irs amendments Using the wage bracket tables, you withhold $188. Irs amendments On May 14 she receives a bonus of $1,000. Irs amendments Electing to use supplemental wage withholding method 1-b, you: Add the bonus amount to the amount of wages from the most recent base salary pay date (May 1) ($2,000 + $1,000 = $3,000). Irs amendments Determine the amount of withholding on the combined $3,000 amount to be $338 using the wage bracket tables. Irs amendments Subtract the amount withheld from wages on the most recent base salary pay date (May 1) from the combined withholding amount ($338 – $188 = $150). Irs amendments Withhold $150 from the bonus payment. Irs amendments Example 3. Irs amendments The facts are the same as in Example 2, except you elect to use the flat rate method of withholding on the bonus. Irs amendments You withhold 25% of $1,000, or $250, from Sharon's bonus payment. Irs amendments Example 4. Irs amendments The facts are the same as in Example 2, except you elect to pay Sharon a second bonus of $2,000 on May 28. Irs amendments Using supplemental wage withholding method 1-b, you: Add the first and second bonus amounts to the amount of wages from the most recent base salary pay date (May 1) ($2,000 + $1,000 + $2,000 = $5,000). Irs amendments Determine the amount of withholding on the combined $5,000 amount to be $781 using the wage bracket tables. Irs amendments Subtract the amounts withheld from wages on the most recent base salary pay date (May 1) and the amounts withheld from the first bonus payment from the combined withholding amount ($781 – $188 – $150 = $443). Irs amendments Withhold $443 from the second bonus payment. Irs amendments Tips treated as supplemental wages. Irs amendments   Withhold income tax on tips from wages earned by the employee or from other funds the employee makes available. Irs amendments If an employee receives regular wages and reports tips, figure income tax withholding as if the tips were supplemental wages. Irs amendments If you have not withheld income tax from the regular wages, add the tips to the regular wages. Irs amendments Then withhold income tax on the total. Irs amendments If you withheld income tax from the regular wages, you can withhold on the tips by method 1-a or 1-b discussed earlier in this section under Supplemental wages identified separately from regular wages. Irs amendments Vacation pay. Irs amendments   Vacation pay is subject to withholding as if it were a regular wage payment. Irs amendments When vacation pay is in addition to regular wages for the vacation period, treat it as a supplemental wage payment. Irs amendments If the vacation pay is for a time longer than your usual payroll period, spread it over the pay periods for which you pay it. Irs amendments 8. Irs amendments Payroll Period Your payroll period is a period of service for which you usually pay wages. Irs amendments When you have a regular payroll period, withhold income tax for that time period even if your employee does not work the full period. Irs amendments No regular payroll period. Irs amendments   When you do not have a regular payroll period, withhold the tax as if you paid wages for a daily or miscellaneous payroll period. Irs amendments Figure the number of days (including Sundays and holidays) in the period covered by the wage payment. Irs amendments If the wages are unrelated to a specific length of time (for example, commissions paid on completion of a sale), count back the number of days from the payment period to the latest of: The last wage payment made during the same calendar year, The date employment began, if during the same calendar year, or January 1 of the same year. Irs amendments Employee paid for period less than 1 week. Irs amendments   When you pay an employee for a period of less than one week, and the employee signs a statement under penalties of perjury indicating he or she is not working for any other employer during the same week for wages subject to withholding, figure withholding based on a weekly payroll period. Irs amendments If the employee later begins to work for another employer for wages subject to withholding, the employee must notify you within 10 days. Irs amendments You then figure withholding based on the daily or miscellaneous period. Irs amendments 9. Irs amendments Withholding From Employees' Wages Income Tax Withholding Using Form W-4 to figure withholding. Irs amendments   To know how much federal income tax to withhold from employees' wages, you should have a Form W-4 on file for each employee. Irs amendments 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. Irs amendments Advise your employees to use the IRS Withholding Calculator on the IRS website at www. Irs amendments irs. Irs amendments gov/individuals for help in determining how many withholding allowances to claim on their Forms W-4. Irs amendments   Ask all new employees to give you a signed Form W-4 when they start work. Irs amendments Make the form effective with the first wage payment. Irs amendments If a new employee does not give you a completed Form W-4, withhold income tax as if he or she is single, with no withholding allowances. Irs amendments Form in Spanish. Irs amendments   You can provide Formulario W-4(SP), Certificado de Exención de Retenciones del Empleado, in place of Form W-4, to your Spanish-speaking employees. Irs amendments For more information, see Publicación 17(SP), El Impuesto Federal sobre los Ingresos (Para Personas Físicas). Irs amendments The rules discussed in this section that apply to Form W-4 also apply to Formulario W-4(SP). Irs amendments Electronic system to receive Form W-4. Irs amendments   You may establish a system to electronically receive Forms W-4 from your employees. Irs amendments See Regulations section 31. Irs amendments 3402(f)(5)-1(c) for more information. Irs amendments Effective date of Form W-4. Irs amendments   A Form W-4 remains in effect until the employee gives you a new one. Irs amendments When you receive a new Form W-4 from an employee, do not adjust withholding for pay periods before the effective date of the new form. Irs amendments If an employee gives you a Form W-4 that replaces an existing 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. Irs amendments 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. Irs amendments A Form W-4 that makes a change for the next calendar year will not take effect in the current calendar year. Irs amendments Successor employer. Irs amendments   If you are a successor employer (see Successor employer , later in this section), secure new Forms W-4 from the transferred employees unless the “Alternative Procedure” in section 5 of Revenue Procedure 2004-53 applies. Irs amendments See Revenue Procedure 2004-53, 2004-34 I. Irs amendments R. Irs amendments B. Irs amendments 320, available at www. Irs amendments irs. Irs amendments gov/irb/2004-34_IRB/ar13. Irs amendments html. Irs amendments Completing Form W-4. Irs amendments   The amount of any federal income tax withholding must be based on marital status and withholding allowances. Irs amendments Your employees may not base their withholding amounts on a fixed dollar amount or percentage. Irs amendments However, an 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. Irs amendments Employees may claim fewer withholding allowances than they are entitled to claim. Irs amendments They may wish to claim fewer allowances to ensure they have enough withholding or to offset the tax on other sources of taxable income not subject to withholding. Irs amendments See Publication 505, Tax Withholding and Estimated Tax, for more information about completing Form W-4. Irs amendments Along with Form W-4, you may wish to order Publication 505 for use by your employees. Irs amendments Do not accept any withholding or estimated tax payments from your employees in addition to withholding based on their Form W-4. Irs amendments If they require additional withholding, they 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. Irs amendments Exemption from federal income tax withholding. Irs amendments   Generally, an employee may claim exemption from federal income tax withholding because he or she had no income tax liability last year and expects none this year. Irs amendments See the Form W-4 instructions for more information. Irs amendments However, the wages are still subject to social security and Medicare taxes. Irs amendments See also Invalid Forms W-4 , later in this section. Irs amendments   A Form W-4 claiming exemption from withholding is effective when it is filed with the employer and only for that calendar year. Irs amendments 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. Irs amendments If the employee does not give you a new Form W-4 by February 15, begin withholding based on the last Form W-4 for the employee that did not claim an exemption from withholding or, if one was not filed, then withhold tax as if he or she is single with zero withholding allowances. Irs amendments If the employee provides a new Form W-4 claiming exemption from withholding on February 16 or later, you may apply it to future wages but do not refund any taxes already withheld. Irs amendments Withholding income taxes on the wages of nonresident alien employees. Irs amendments   In general, you must withhold federal income taxes on the wages of nonresident alien employees. Irs amendments However, see Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities, for exceptions to this general rule. Irs amendments Also see section 3 of Publication 51 (Circular A), Agricultural Employer's Tax Guide, for guidance on H-2A visa workers. Irs amendments Withholding adjustment for nonresident alien employees. Irs amendments   For 2014, apply the procedure discussed next to figure the amount of income tax to withhold from the wages of nonresident alien employees performing services within the United States. Irs amendments Nonresident alien students from India and business apprentices from India are not subject to this procedure. Irs amendments Instructions. Irs amendments   To figure how much income tax to withhold from the wages paid to a nonresident alien employee performing services in the United States, use the following steps. Irs amendments Step 1. Irs amendments   Add to the wages paid to the nonresident alien employee for the payroll period the amount shown in the chart below for the applicable payroll period. Irs amendments    Amount to Add to Nonresident Alien Employee's Wages for Calculating Income Tax Withholding Only   Payroll Period Add Additional     Weekly $ 43. Irs amendments 30     Biweekly 86. Irs amendments 50     Semimonthly 93. Irs amendments 80     Monthly 187. Irs amendments 50     Quarterly 562. Irs amendments 50     Semiannually 1,125. Irs amendments 00     Annually 2,250. Irs amendments 00     Daily or Miscellaneous (each day of the payroll period) 8. Irs amendments 70   Step 2. Irs amendments   Use the amount figured in Step 1 and the number of withholding allowances claimed (generally limited to one allowance) to figure income tax withholding. Irs amendments Determine the value of withholding allowances by multiplying the number of withholding allowances claimed by the appropriate amount from Table 5. Irs amendments Percentage Method—2014 Amount for One Withholding Allowance shown on page 41. Irs amendments If you are using the Percentage Method Tables for Income Tax Withholding, provided on pages 43–44, reduce the amount figured in Step 1 by the value of withholding allowances and use that reduced amount to figure the income tax withholding. Irs amendments If you are using the Wage Bracket Method for Income Tax Withholding, provided on pages 45–64, use the amount figured in Step 1 and the number of withholding allowances to figure income tax withholding. Irs amendments The amounts from the chart above are added to wages solely for calculating income tax withholding on the wages of the nonresident alien employee. Irs amendments The amounts from the chart should not be included in any box on the employee's Form W-2 and do not increase the income tax liability of the employee. Irs amendments Also, the amounts from the chart do not increase the social security tax or Medicare tax liability of the employer or the employee, or the FUTA tax liability of the employer. Irs amendments This procedure only applies to nonresident alien employees who have wages subject to income tax withholding. Irs amendments Example. Irs amendments An employer using the percentage method of withholding pays wages of $500 for a biweekly payroll period to a married nonresident alien employee. Irs amendments The nonresident alien has properly completed Form W-4, entering marital status as “single” with one withholding allowance and indicating status as a nonresident alien on Form W-4, line 6 (see Nonresident alien employee's Form W-4 , later in this section). Irs amendments The employer determines the wages to be used in the withholding tables by adding to the $500 amount of wages paid the amount of $86. Irs amendments 50 from the chart under Step 1 ($586. Irs amendments 50 total). Irs amendments The employer then applies the applicable tables to determine the income tax withholding for nonresident aliens (see Step 2 ). Irs amendments Reminder: If you use the Percentage Method Tables for Income Tax Withholding, reduce the amount figured in Step 1 by the value of withholding allowances and use that reduced amount to figure income tax withholding. Irs amendments The $86. Irs amendments 50 added to wages for calculating income tax withholding is not reported on Form W-2, and does not increase the income tax liability of the employee. Irs amendments Also, the $86. Irs amendments 50 added to wages does not affect the social security tax or Medicare tax liability of the employer or the employee, or the FUTA tax liability of the employer. Irs amendments Supplemental wage payment. Irs amendments   This procedure for determining the amount of income tax withholding does not apply to a supplemental wage payment (see section 7) if the 39. Irs amendments 6% mandatory flat rate withholding applies or if the 25% optional flat rate withholding is being used to calculate income tax withholding on the supplemental wage payment. Irs amendments Nonresident alien employee's Form W-4. Irs amendments   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 South Korea, or a student or business apprentice from India, 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. Irs amendments   If you maintain an electronic Form W-4 system, you should provide a field for nonresident aliens to enter nonresident alien status in lieu of writing “Nonresident Alien” or “NRA” above the dotted line on line 6. Irs amendments 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. Irs amendments Form 8233. Irs amendments   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. Irs amendments See Publication 515 for details. Irs amendments IRS review of requested Forms W-4. Irs amendments   When requested by the IRS, you must make original Forms W-4 available for inspection by an IRS employee. Irs amendments You may also be directed to send certain Forms W-4 to the IRS. Irs amendments 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. Irs amendments 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. Irs amendments The IRS may also require you to submit copies of Form W-4 to the IRS as directed by Treasury Decision 9337, 2007-35 I. Irs amendments R. Irs amendments B. Irs amendments 455, which is available at www. Irs amendments irs. Irs amendments gov/irb/2007-35_IRB/ar10. Irs amendments html. Irs amendments When we refer to Form W-4, the same rules apply to Formulario W-4(SP), its Spanish translation. Irs amendments After submitting a copy of a 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). Irs amendments However, if the IRS later notifies you in writing the employee is not entitled to claim exemption from withholding or a claimed number of withholding allowances, withhold federal income tax based on the effective date, marital status, and maximum number of withholding allowances specified in the IRS notice (commonly referred to as a "lock-in letter
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The Irs Amendments

Irs amendments Index A Accelerated Cost Recovery System (ACRS), MACRS Depreciation (see also Modified Accelerated Cost Recovery System (MACRS)) Effective date, Depreciation Methods Accounting methods Accrual method, Accrual method. Irs amendments Cash method, Cash method. Irs amendments Change of method, Changing your accounting method. Irs amendments Constructive receipt of income, Cash method. Irs amendments , More information. Irs amendments Accrual method taxpayers, Accrual method. Irs amendments ACRS (Accelerated Cost Recovery System) Effective date, Depreciation Methods Active participation, Active participation. Irs amendments Activities not for profit, Duplex. Irs amendments Additions to property, Additions or improvements to property. Irs amendments (see also Improvements) Basis, Increases to basis. Irs amendments , Additions or improvements. Irs amendments MACRS recovery period, Additions or improvements to property. Irs amendments Adjusted basis MACRS depreciation, Adjusted Basis Adjusted gross income (AGI) Modified (see Modified adjusted gross income (MAGI)) Advance rent, Advance rent. Irs amendments Security deposits, Security deposits. Irs amendments Advertising, Types of Expenses Allocation of expenses Change of property to rental use, Payments added to capital account. Irs amendments How to divide expenses, Dividing Expenses Part of property rented, Renting Part of Property, How to divide expenses. Irs amendments Personal use of rental property, Personal use of rental property. Irs amendments , Personal Use of Dwelling Unit (Including Vacation Home) Alternative Depreciation System (ADS) Election of, Electing ADS MACRS, MACRS Depreciation, Table 2-2d. Irs amendments Alternative minimum tax (AMT) Accelerated depreciation methods, Alternative minimum tax (AMT). Irs amendments Amended returns, Filing an amended return. Irs amendments Apartments Basement apartments, Examples. Irs amendments Dwelling units, Dwelling unit. Irs amendments Appraisal fees, Settlement fees and other costs. Irs amendments Assessments for maintenance, Assessments for local improvements. Irs amendments Assessments, local (see Local assessments) Assistance (see Tax help) Assumption of mortgage, Assumption of a mortgage. Irs amendments Attorneys' fees, Settlement fees and other costs. Irs amendments , Increases to basis. Irs amendments Automobiles MACRS recovery periods, Property Classes Under GDS B Basis Adjusted basis, Adjusted Basis Assessments for local improvements, Assessments for local improvements. Irs amendments Basis other than cost, Basis Other Than Cost Cost basis, Cost Basis Decreases to, Decreases to basis. Irs amendments Deductions Capitalization of costs vs. Irs amendments , Deducting vs. Irs amendments capitalizing costs. Irs amendments Not greater than basis, Cost or Other Basis Fully Recovered Fair market value, Fair market value. Irs amendments Increases to, Increases to basis. Irs amendments MACRS depreciable basis, Basis of Depreciable Property Property changed to rental use, Basis of Property Changed to Rental Use C Capital expenditures Deductions vs. Irs amendments effect on basis, Deducting vs. Irs amendments capitalizing costs. Irs amendments Local benefit taxes, Local benefit taxes. Irs amendments Mortgages, payments to obtain, Expenses paid to obtain a mortgage. Irs amendments Cars MACRS recovery periods, Property Classes Under GDS Cash method taxpayers, Cash method. Irs amendments Casualty losses, Exception for Rental Real Estate With Active Participation Change of accounting method, Changing your accounting method. Irs amendments Charitable contributions Use of property, Donation of use of the property. Irs amendments Cleaning and maintenance, Types of Expenses Closing costs, Settlement fees and other costs. Irs amendments Commissions, Types of Expenses Computers MACRS recovery periods, Property Classes Under GDS Condominiums, Condominiums, Dwelling unit. Irs amendments Constructive receipt of income, Cash method. Irs amendments , More information. Irs amendments Cooperative housing, Cooperative apartments. Irs amendments , Cooperatives, Dwelling unit. Irs amendments Cost basis, Cost Basis Credit reports, Settlement fees and other costs. Irs amendments Credits Residential energy credits, Decreases to basis. Irs amendments D Days of personal use, What is a day of personal use? Days used for repairs and maintenance, Days used for repairs and maintenance. Irs amendments Deductions Capitalizing costs vs. Irs amendments effect on basis, Deducting vs. Irs amendments capitalizing costs. Irs amendments Depreciation (see Depreciation) Limitations on, Form 4562. Irs amendments Passive activity losses (see Passive activity) Depreciation, Depreciation of Rental Property, Changing your accounting method. Irs amendments Alternative Depreciation System (ADS) (see Modified Accelerated Cost Recovery System (MACRS)) Basis (see Basis) Change of accounting method, Changing your accounting method. Irs amendments Change of property to rental use, Property Changed to Rental Use Claiming correct amount of, Claiming the Correct Amount of Depreciation Declining balance method, Depreciation Methods Duration of property expected to last more than one year, What Rental Property Can Be Depreciated? Eligible property, What Rental Property Can Be Depreciated? First-year expensing, Section 179 deduction. Irs amendments MACRS (see Modified Accelerated Cost Recovery System (MACRS)) Methods, Depreciation Methods, Figuring Your Depreciation Deduction Ownership of property, What Rental Property Can Be Depreciated?, Property you own. Irs amendments Rental expense, Depreciation. Irs amendments Rented property, Rented property. Irs amendments Section 179 deduction, Section 179 deduction. Irs amendments Special depreciation allowances, Claiming the Special Depreciation Allowance Straight line method, Depreciation Methods Useful life, What Rental Property Can Be Depreciated?, Property having a determinable useful life. Irs amendments Vacant rental property, Vacant rental property. Irs amendments Discount, bonds and notes issued at (see Original issue discount (OID)) Dividing of expenses (see Allocation of expenses) Dwelling units Definition, Dwelling unit. Irs amendments Fair rental price, Fair rental price. Irs amendments Personal use of, Personal Use of Dwelling Unit (Including Vacation Home), What is a day of personal use? E Easements, Decreases to basis. Irs amendments Equipment rental expense, Rental of equipment. Irs amendments F Fair market value (FMV), Fair market value. Irs amendments Fair rental price, Dividing Expenses, Fair rental price. Irs amendments Fees Loan origination fees, Points, Settlement fees and other costs. Irs amendments Points (see Points) Settlement fees and other costs, Settlement fees and other costs. Irs amendments Tax return preparation fees, Legal and other professional fees. Irs amendments First-year expensing, Section 179 deduction. Irs amendments Form 1040 Not rented for profit income, Where to report. Irs amendments Part of property rented, Renting Part of Property Rental income and expenses, Reporting Rental Income, Expenses, and Losses Schedule E, Schedule E (Form 1040) Form 1098 Mortgage interest, Form 1098, Mortgage Interest Statement. Irs amendments Form 4684 Casualties and thefts, How to report. Irs amendments Form 4797 Sales of business property, How to report. Irs amendments Form 8582 Passive activity losses, Form 8582. Irs amendments , Form 8582 not required. Irs amendments Free tax services, Free help with your tax return. Irs amendments G Gains and losses At-risk rules, At-Risk Rules Casualty and theft losses, Exception for Rental Real Estate With Active Participation Limits on rental losses, Form 4562. Irs amendments Passive activity losses, Passive Activity Limits Rental real estate activities, Exception for Rental Real Estate With Active Participation Sale of rental property, Sale or exchange of rental property. Irs amendments , How to report. Irs amendments General depreciation system (GDS) (see Modified Accelerated Cost Recovery System (MACRS)) H Help (see Tax help) Home Main home, Main home. Irs amendments Use as rental property (see Use of home) I Improvements, Table 1-1. Irs amendments Examples of Improvements (see also Repairs) Assessments for local improvements, Assessments for local improvements. Irs amendments Basis, Increases to basis. Irs amendments , Additions or improvements. Irs amendments Depreciation of rented property, Rented property. Irs amendments MACRS recovery period, Additions or improvements to property. Irs amendments Insurance, Types of Expenses Casualty or theft loss payments, Decreases to basis. Irs amendments Change of property to rental use, Property Changed to Rental Use Fire insurance premiums, cost basis, Settlement fees and other costs. Irs amendments Part of property rented, Renting Part of Property Premiums paid in advance, Insurance premiums paid in advance. Irs amendments Title insurance, cost basis, Settlement fees and other costs. Irs amendments Interest payments, Interest expense. Irs amendments (see also Mortgages) Loan origination fees, Points Rental expenses, Types of Expenses L Land Cost basis, Separating cost of land and buildings. Irs amendments Depreciation, Land. Irs amendments Leases Cancellation payments, Canceling a lease. Irs amendments Equipment leasing, Rental of equipment. Irs amendments Limits Passive activity losses and credits, Passive Activity Limits Rental losses, Limits on Rental Losses Loans Assumption fees, Settlement fees and other costs. Irs amendments Charges connected with getting or refinancing, cost basis, Settlement fees and other costs. Irs amendments Low or no interest, Loans with low or no interest. Irs amendments Origination fees, Points Local assessments, Assessments for local improvements. Irs amendments Losses (see Gains and losses) M Missing children, photographs of, Reminders Modified Accelerated Cost Recovery System (MACRS), MACRS Depreciation, Figuring MACRS Depreciation Under ADS Additions or improvements to property, Additions or improvements to property. Irs amendments Adjusted basis, Adjusted Basis Alternative Depreciation System (ADS), MACRS Depreciation, Figuring MACRS Depreciation Under ADS Basis other than cost, Basis Other Than Cost Conventions, Conventions Cost basis, Cost Basis Depreciable basis, Basis of Depreciable Property Effective date, Depreciation Methods Excluded property, Excluded Property General Depreciation System (GDS), MACRS Depreciation, Property Classes Under GDS, Figuring Your Depreciation Deduction Nonresidential rental property, Property Classes Under GDS Property used in rental activities (Table 2-1), Table 2-1. Irs amendments MACRS Recovery Periods for Property Used in Rental Activities Recovery periods, Table 2-1. Irs amendments MACRS Recovery Periods for Property Used in Rental Activities, 5-, 7-, or 15-year property. Irs amendments Residential rental property, Property Classes Under GDS, Residential rental property. Irs amendments Special depreciation allowances, Claiming the Special Depreciation Allowance Modified adjusted gross income (MAGI), Modified adjusted gross income (MAGI). Irs amendments Mortgages, Expenses paid to obtain a mortgage. Irs amendments Assumption of, cost basis, Assumption of a mortgage. Irs amendments Change of property to rental use, Property Changed to Rental Use End of, OID, Loan or mortgage ends. Irs amendments Interest, Interest expense. Irs amendments , Property Changed to Rental Use, Renting Part of Property Mortgage insurance premiums, Settlement fees and other costs. Irs amendments Part of property rented, Renting Part of Property N Nonresidential real property, Property Classes Under GDS Not-for-profit activities, Duplex. Irs amendments O Original issue discount (OID), Points, Loan or mortgage ends. Irs amendments P Part interest Expenses, Part interest. Irs amendments Income, Part interest. Irs amendments Passive activity Maximum special allowance, Maximum special allowance. Irs amendments Personal property Rental income from, Property or services. Irs amendments Personal use of rental property, Payments added to capital account. Irs amendments , Personal Use of Dwelling Unit (Including Vacation Home) (see also Property changed to rental use) Placed-in-service date, Placed in Service Points, Types of Expenses, Points, Settlement fees and other costs. Irs amendments Pre-rental expenses, Pre-rental expenses. Irs amendments Principal residence (see Home) Profit, property not rented for, Duplex. Irs amendments Property changed to rental use, Payments added to capital account. Irs amendments Basis, Basis of Property Changed to Rental Use Publications (see Tax help) R Real estate professionals, Real estate professionals. Irs amendments Real estate taxes, Real estate taxes. Irs amendments Real property trades or businesses, Real property trades or businesses. Irs amendments Recordkeeping requirements Travel and transportation expenses, Local transportation expenses. Irs amendments , Travel expenses. Irs amendments Recovery periods, Property Classes Under GDS Rent, Settlement fees and other costs. Irs amendments Advance rent, Advance rent. Irs amendments Fair price, Fair rental price. Irs amendments Rental expenses, Rental Expenses Advertising, Types of Expenses Allocation between rental and personal uses, Dividing Expenses Change of property to rental use, Property Changed to Rental Use Cleaning and maintenance, Types of Expenses Commissions, Types of Expenses Depreciation, Depreciation. Irs amendments Dwelling unit used as home, Dwelling Unit Used as a Home Equipment rental, Rental of equipment. Irs amendments Home, property also used as, Rental of property also used as your home. Irs amendments Improvements, Table 1-1. Irs amendments Examples of Improvements Insurance, Types of Expenses, Insurance premiums paid in advance. Irs amendments Interest payments, Types of Expenses, Interest expense. Irs amendments Local transportation expenses, Types of Expenses, Local transportation expenses. Irs amendments Part of property rented, Renting Part of Property Points, Types of Expenses, Points Pre-rental expenses, Pre-rental expenses. Irs amendments Rental payments, Types of Expenses Repairs, Types of Expenses, Repairs and Improvements Sale of property, Vacant while listed for sale. Irs amendments Tax return preparation fees, Legal and other professional fees. Irs amendments Taxes, Types of Expenses Tenant, paid by, Expenses paid by tenant. Irs amendments Travel expenses, Types of Expenses Utilities, Types of Expenses Vacant rental property, Vacant rental property. Irs amendments Rental income Advance rent, Advance rent. Irs amendments Cancellation of lease payments, Canceling a lease. Irs amendments Dwelling unit used as home, Dwelling Unit Used as a Home Lease with option to buy, Lease with option to buy. Irs amendments Not rented for profit, Not Rented for Profit Part interest, Part interest. Irs amendments Property received from tenant, Property or services. Irs amendments Reporting, Accrual method. Irs amendments , Which Forms To Use Security deposit, Security deposits. Irs amendments Services received from tenant, Property or services. Irs amendments Uncollected rent, Uncollected rent. Irs amendments Used as home, Rental of property also used as your home. Irs amendments Rental losses, Exception for Rental Real Estate With Active Participation (see also Gains and losses) (see also Passive activity) Repairs, Types of Expenses, Repairs and Improvements (see also Improvements) Assessments for maintenance, Assessments for local improvements. Irs amendments Personal use of rental property exception for days used for repairs and maintenance, Days used for repairs and maintenance. Irs amendments S Sale of property Expenses, Vacant while listed for sale. Irs amendments Gain or loss, Sale or exchange of rental property. Irs amendments , How to report. Irs amendments Main home, Sale of main home used as rental property. Irs amendments Section 179 deductions, Section 179 deduction. Irs amendments Security deposits, Security deposits. Irs amendments Settlement fees, Settlement fees and other costs. Irs amendments Shared equity financing agreements, Shared equity financing agreement. Irs amendments Special depreciation allowances, Claiming the Special Depreciation Allowance Spouse Material participation, Participating spouse. Irs amendments Standard mileage rates, Local transportation expenses. Irs amendments Surveys, Settlement fees and other costs. Irs amendments T Tables and figures Improvements, examples of (Table 1-1), Table 1-1. Irs amendments Examples of Improvements MACRS optional tables (Table 2-2d), Table 2-2d. Irs amendments MACRS optional tables (Tables 2-2a, 2-2b, and 2-2c), Tables 2-2a, 2-2b, and 2-2c. Irs amendments MACRS recovery periods for property used in rental activities (Table 2-1), Table 2-1. Irs amendments MACRS Recovery Periods for Property Used in Rental Activities Tax credits Residential energy credits, effect on basis, Decreases to basis. Irs amendments Tax help, How To Get Tax Help Tax return preparation fees, Legal and other professional fees. Irs amendments Taxes Deduction of, Types of Expenses Local benefit taxes, Local benefit taxes. Irs amendments Real estate taxes, Real estate taxes. Irs amendments Transfer taxes, Settlement fees and other costs. Irs amendments Theft losses, Theft. Irs amendments Title insurance, Settlement fees and other costs. Irs amendments Transfer taxes, Settlement fees and other costs. Irs amendments Travel and transportation expenses Local transportation expenses, Types of Expenses, Local transportation expenses. Irs amendments Recordkeeping, Travel expenses. Irs amendments Rental expenses, Types of Expenses Standard mileage rate, Local transportation expenses. Irs amendments U Uncollected rent Income, Uncollected rent. Irs amendments Use of home Before or after renting, Days used as a main home before or after renting. Irs amendments Change to rental use, Property Changed to Rental Use Days of personal use, What is a day of personal use? Fair rental price, Fair rental price. Irs amendments Passive activity rules exception, Exception for Personal Use of Dwelling Unit Personal use as dwelling unit, Personal Use of Dwelling Unit (Including Vacation Home) Utilities, Types of Expenses, Increases to basis. Irs amendments V Vacant rental property, Vacant rental property. Irs amendments Vacation homes Dwelling unit, Dwelling unit. Irs amendments Fair rental price, Fair rental price. Irs amendments Personal use of, Personal Use of Dwelling Unit (Including Vacation Home) Valuation Fair market value, Fair market value. 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