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Irs Form 1040ez

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Irs Form 1040ez

Irs form 1040ez Index A Accounting method Accrual, Accrual Method, Accrual method. Irs form 1040ez Automatic procedures, Automatic change procedures. Irs form 1040ez Cash, Cash Method, Cash method. Irs form 1040ez Change in, Change in Accounting Method Combination, Combination Method Special, Special Methods Accounting periods, Accounting Periods Accrual method Income - general rule, Income—General Rule Income - special rules, Income—Special Rules Of accounting, Accrual Method Adjusted basis, Adjusted basis. Irs form 1040ez Administrator, Executor or administrator. Irs form 1040ez Alternative fuel vehicle refueling property credit, Alternative fuel vehicle refueling property credit (Form 8911). Irs form 1040ez Alternative motor vehicle credit, Alternative motor vehicle credit (Form 8910). Irs form 1040ez Appeal rights, Appeals. Irs form 1040ez Appreciation, Appreciation. Irs form 1040ez Audits, Examinations (audits). Irs form 1040ez Automobile (see Car expenses) B Bad debts, Bad Debts Barter income, Bartering for Property or Services Basis of property, Basis. Irs form 1040ez Bribes, Expenses You Cannot Deduct Business expenses, Business Expenses Business income, Business Income Business use of your home, Business Use of Your Home C Canceled debt, Canceled Debt Cancellation of qualified real property business debt, Cancellation of qualified real property business debt. Irs form 1040ez Capital gain or loss, Is My Gain or Loss Ordinary or Capital? Car expenses, Car and Truck Expenses, Methods for Deducting Car and Truck Expenses Carbon dioxide sequestration credit, Carbon dioxide sequestration credit (Form 8933). Irs form 1040ez Cash discount, Cash discounts. Irs form 1040ez , Cash discounts. Irs form 1040ez Cash method Expenses, Expenses Income, Income Changing accounting method, Changing accounting method. Irs form 1040ez Charitable contributions, Expenses You Cannot Deduct Child employed by parent, Child employed by parent. Irs form 1040ez Claim for refund, Refunds. Irs form 1040ez Collection of tax, Collections. Irs form 1040ez Combination method of accounting, Combination Method Comments on publication, Comments and suggestions. Irs form 1040ez Condemned property, Condemned property. Irs form 1040ez Consignments, Consignments. Irs form 1040ez Construction allowances, Construction allowances. Irs form 1040ez Cost of goods sold, How To Figure Cost of Goods Sold Credit Alternative fuel vehicle refueling property, Alternative fuel vehicle refueling property credit (Form 8911). Irs form 1040ez Alternative motor vehicle, Alternative motor vehicle credit (Form 8910). Irs form 1040ez Carbon dioxide sequestration, Carbon dioxide sequestration credit (Form 8933). Irs form 1040ez Disabled access, Disabled access credit (Form 8826). Irs form 1040ez Distilled spirits, Distilled spirits credit (Form 8906). Irs form 1040ez Employer-provided childcare, Credit for employer-provided childcare facilities and services (Form 8882). Irs form 1040ez How to claim, How To Claim the Credit Indian coal, Renewable electricity, refined coal, and Indian coal production credit (Form 8835). Irs form 1040ez Investment, Investment credit (Form 3468). Irs form 1040ez Low sulfur diesel fuel production, Low sulfur diesel fuel production credit (Form 8896). Irs form 1040ez Low-income housing, Low-income housing credit (Form 8586). Irs form 1040ez New markets, New markets credit (Form 8874). Irs form 1040ez Nonconventional source fuel, Nonconventional source fuel credit (Form 8907). Irs form 1040ez Orphan drug, Orphan drug credit (Form 8820). Irs form 1040ez Qualified plug-in electric drive motor vehicle, Qualified plug-in electric drive motor vehicle credit (Form 8936). Irs form 1040ez Refined coal, Renewable electricity, refined coal, and Indian coal production credit (Form 8835). Irs form 1040ez Renewable electricity, Renewable electricity, refined coal, and Indian coal production credit (Form 8835). Irs form 1040ez Small employer health insurance premiums, Credit for small employer health insurance premiums (Form 8941). Irs form 1040ez Small employer pension plan startup costs, Credit for small employer pension plan startup costs (Form 8881). Irs form 1040ez Taxes paid on certain employee tips, Credit for employer social security and Medicare taxes paid on certain employee tips (Form 8846). Irs form 1040ez Work opportunity, Work opportunity credit (Form 5884). Irs form 1040ez D Damages, Damages. Irs form 1040ez Debt Bad, Bad Debts Canceled, Canceled Debt Qualified real property business, Qualified real property business debt. Irs form 1040ez Refund offset against, Offset against debts. Irs form 1040ez Definitions Accounting methods, Accounting Methods Accounting periods, Accounting Periods Barter, Bartering for Property or Services Basis, Basis. Irs form 1040ez Business bad debt, Business bad debt. Irs form 1040ez Calendar tax year, Calendar tax year. Irs form 1040ez Cash discount, Cash discounts. Irs form 1040ez , Cash discounts. Irs form 1040ez Disposition of property, What Is a Disposition of Property? Drawing account, Merchandise withdrawn from sale. Irs form 1040ez Entertainment expenses, Entertainment expenses. Irs form 1040ez Fair market value, Fair market value. Irs form 1040ez Fiscal tax year, Fiscal tax year. Irs form 1040ez Fringe benefit, Fringe benefits. Irs form 1040ez Local transportation expenses, Local transportation expenses. Irs form 1040ez Necessary expense, Introduction Net operating loss, Net Operating Losses (NOLs) Nonbusiness bad debt, Nonbusiness bad debts. Irs form 1040ez Ordinary expense, Introduction Principal place of business, Principal place of business. Irs form 1040ez Qualified long-term real property, Qualified long-term real property. Irs form 1040ez Qualified real property business debt, Cancellation of qualified real property business debt. Irs form 1040ez Rent, Rent Expense Restricted property, Other Income Retail space, Retail space. Irs form 1040ez Self-employment (SE) tax, Self-Employment (SE) Tax Sole proprietor, Sole proprietor. Irs form 1040ez Tax home, Local transportation expenses. Irs form 1040ez Trade discount, Trade discounts. Irs form 1040ez , Cash discounts. Irs form 1040ez Travel expenses, Travel, Meals, and Entertainment Depreciation Deduction, Depreciation Listed property, Listed property. Irs form 1040ez Depreciation, recapture, Recapture of depreciation. Irs form 1040ez Direct seller, Direct seller. Irs form 1040ez , Real estate agent or direct seller. Irs form 1040ez Disabled access credit, Disabled access credit (Form 8826). Irs form 1040ez Disposition of property Business property, Introduction Installment sale, Installment sales. Irs form 1040ez , Installment sales. Irs form 1040ez Like-kind exchange, Like-kind exchanges. Irs form 1040ez , Like-kind exchanges. Irs form 1040ez , Exchange of like-kind property. Irs form 1040ez Nontaxable exchange, Nontaxable exchanges. Irs form 1040ez Sale of a business, Sale of a business. Irs form 1040ez Distilled spirits credit, Distilled spirits credit (Form 8906). Irs form 1040ez Dividend income, Interest and Dividend Income Donation of inventory, Donation of inventory. Irs form 1040ez Drawing account, Merchandise withdrawn from sale. Irs form 1040ez Due date of return, When Is My Tax Return Due? E e-file, IRS e-file (Electronic Filing) Economic injury, Economic injury. Irs form 1040ez EFTPS, EFTPS Electronic filing, IRS e-file (Electronic Filing) Employee, Employee. Irs form 1040ez Employee benefit programs, Fringe benefits. Irs form 1040ez Employees' pay, Employees' Pay Employer identification number (EIN), Employer identification number (EIN). Irs form 1040ez Employment taxes About, Employment Taxes Deduction for, Employment taxes. Irs form 1040ez Entertainment expenses, Entertainment expenses. Irs form 1040ez (see Travel expenses) Escrow, payments placed in, Payment placed in escrow. Irs form 1040ez Estimated tax, How Do I Pay Income Tax? Examinations (audits), Examinations (audits). Irs form 1040ez Excise taxes About, Excise Taxes Deduction for, Excise taxes. Irs form 1040ez Executor, Executor or administrator. Irs form 1040ez Expenses, Business Expenses Bad debts, Bad Debts Car, Car and Truck Expenses Depreciation, Depreciation Employees' pay, Employees' Pay Entertainment, Travel, Meals, and Entertainment Home, business use, Business Use of Your Home Insurance, Insurance Interest, Interest Legal and professional fees, Legal and Professional Fees Meals, Travel, Meals, and Entertainment Nondeductible, Expenses You Cannot Deduct Other, Other Expenses You Can Deduct Pension plans, Pension Plans Rent, Rent Expense Taxes, Taxes Travel, Travel, Meals, and Entertainment Truck, Car and Truck Expenses F Fair market value, Fair market value. Irs form 1040ez Filing business taxes, Filing and Paying Business Taxes Fishing crew member, Fishing crew member. Irs form 1040ez , Fishing crew member. Irs form 1040ez Form 1040 (tax return), How Do I File? 1040-ES (estimated tax), How Do I Pay Income Tax? 1040-V (voucher), Balance due. Irs form 1040ez 1099-B (barter), Information returns. Irs form 1040ez 1099-MISC (miscellaneous), Form 1099-MISC. Irs form 1040ez , Information returns. Irs form 1040ez 1128 (change tax year), Change in tax year. Irs form 1040ez 2210 (underpayment of estimated tax), Penalty for underpayment of tax. Irs form 1040ez 2290 (excise tax for heavy trucks), Form 2290. Irs form 1040ez 3115 (change accounting method), Change in Accounting Method 3468 (investment credit), Investment credit (Form 3468). Irs form 1040ez 3800 (general business credit), Useful Items - You may want to see: 4562 (depreciation), Form 4562. Irs form 1040ez 4684 (casualty and theft), Casualties and thefts. Irs form 1040ez 4797 (sale of business property), Dispositions of business property and depreciable property. Irs form 1040ez , Condemned property. Irs form 1040ez , Listed property. Irs form 1040ez 4868 (extension), When Is My Tax Return Due? 5884 (work opportunity credit), Work opportunity credit (Form 5884). Irs form 1040ez 6251 (alternative minimum tax), Useful Items - You may want to see: 6252 (installment sale), Installment sales. Irs form 1040ez 720 (excise tax return), Form 720. Irs form 1040ez 8300 (cash payments over $10,000), Form 8300. Irs form 1040ez 8586 (low-income housing), Low-income housing credit (Form 8586). Irs form 1040ez 8594 (asset acquisition), Sale of a business. Irs form 1040ez 8820 (orphan drug credit), Orphan drug credit (Form 8820). Irs form 1040ez 8824 (like-kind exchange), Like-kind exchanges. Irs form 1040ez , Like-kind exchanges. Irs form 1040ez 8826 (disabled access credit), Disabled access credit (Form 8826). Irs form 1040ez 8829 (business in home), Deduction limit. Irs form 1040ez 8835 (renewable electricity, coal credit), Renewable electricity, refined coal, and Indian coal production credit (Form 8835). Irs form 1040ez 8846 (credit for social security on tip income), Credit for employer social security and Medicare taxes paid on certain employee tips (Form 8846). Irs form 1040ez 8857 (innocent spouse), Innocent spouse relief. Irs form 1040ez 8874 (new markets credit), New markets credit (Form 8874). Irs form 1040ez 8879 (self-selected PIN), Using an Authorized IRS e-file Provider 8881 (pension plan startup costs credit), Credit for small employer pension plan startup costs (Form 8881). Irs form 1040ez 8882 (employer-provided childcare credit), Credit for employer-provided childcare facilities and services (Form 8882). Irs form 1040ez 8886 (transaction statement), Reminders 8896 (low sulfur diesel fuel production credit), Low sulfur diesel fuel production credit (Form 8896). Irs form 1040ez 8906 (distilled spirits credit), Distilled spirits credit (Form 8906). Irs form 1040ez 8907 (nonconventional fuel credit), Nonconventional source fuel credit (Form 8907). Irs form 1040ez 8910 (alternative vehicle credit), Alternative motor vehicle credit (Form 8910). Irs form 1040ez , Car and Truck Expenses 8911 (alternative fuel refueling property credit), Alternative fuel vehicle refueling property credit (Form 8911). Irs form 1040ez 8933 (carbon dioxide sequestration credit), Carbon dioxide sequestration credit (Form 8933). Irs form 1040ez 8936 (qualified plug-in electric drive motor vehicle), Qualified plug-in electric drive motor vehicle credit (Form 8936). Irs form 1040ez 8941 (small employer health insurance premiums), Credit for small employer health insurance premiums (Form 8941). Irs form 1040ez 982 (discharge of indebtedness), Exclusions Schedule C (sole proprietor), How Do I File? Schedule C-EZ (sole proprietor), How Do I File? Schedule SE (self-employment tax), Who must pay self-employment tax. Irs form 1040ez SS-4 (application for EIN), Employer identification number (EIN). Irs form 1040ez SS-5 (application for SSN), Social security number (SSN). Irs form 1040ez W-2 (report wages), Form W-2. Irs form 1040ez W-4 (employee withholding), Employee. Irs form 1040ez W-7 (application for ITIN), Individual taxpayer identification number (ITIN). Irs form 1040ez W-9 (request for TIN), Other payee. Irs form 1040ez Fringe benefits, Fringe benefits. Irs form 1040ez Fuel taxes, Fuel taxes. Irs form 1040ez G Gains and losses, Gains and losses. Irs form 1040ez General business credits, General Business Credits, Business Credits Gross profit Accuracy, Testing Gross Profit Accuracy Additions to, Additions to Gross Profit Guidelines for selected occupations, Guidelines for Selected Occupations (see also Occupations, selected) H Health insurance, deduction for self-employed, Self-employed health insurance deduction. Irs form 1040ez Home, business use of, Business Use of Your Home Hotels, boarding houses, and apartments, Hotels, boarding houses, and apartments. Irs form 1040ez Husband and wife business, Business owned and operated by spouses. Irs form 1040ez I Identification numbers, Identification Numbers Income, Items That Are Not Income (see also Not income) Accounting for your, Accounting for Your Income Barter, Bartering for Property or Services Business, Business Income Damages, Damages. Irs form 1040ez Gains and losses, Gains and losses. Irs form 1040ez Kickbacks, Kickbacks. Irs form 1040ez Kinds of income, Kinds of Income Lost income payments, Lost income payments. Irs form 1040ez Other, Other Income Paid to a third party, Income paid to a third party. Irs form 1040ez Personal property rent, Personal Property Rents Promissory notes, Promissory notes. Irs form 1040ez Recapture of depreciation, Recapture of depreciation. Irs form 1040ez Recovery of items previously deducted, Recovery of items previously deducted. Irs form 1040ez Rental, Real Estate Rents, Personal Property Rents Restricted property, Restricted property. Irs form 1040ez Income tax About, Income Tax Deduction for, Income taxes. Irs form 1040ez How to pay, How Do I Pay Income Tax? Underpayment penalty, Penalty for underpayment of tax. Irs form 1040ez Income tax return, who must file, Do I Have To File an Income Tax Return? Independent contractor, Independent contractor. Irs form 1040ez , Employment Taxes, Sole proprietor or independent contractor. Irs form 1040ez Individual taxpayer identification number (ITIN), Individual taxpayer identification number (ITIN). Irs form 1040ez Information returns, Information Returns Information, How to get more, How To Get More Information Innocent spouse relief, Innocent spouse relief. Irs form 1040ez Installment sales, Installment sales. Irs form 1040ez Insurance Expense, Insurance Nondeductible premiums, Nondeductible premiums. Irs form 1040ez Prepayment, Prepayment. Irs form 1040ez Proceeds, Insurance proceeds. Irs form 1040ez Self-employed health, Self-employed health insurance deduction. Irs form 1040ez Insurance agent Former, Insurance agent, former. Irs form 1040ez Retired, Insurance agent, retired. Irs form 1040ez Interest Expenses, Interest Income, Interest and Dividend Income Inventories, Inventories Investment credit, Investment credit (Form 3468). Irs form 1040ez K Kickbacks, Kickbacks. Irs form 1040ez , Expenses You Cannot Deduct L Lease bonus, Lease bonus. Irs form 1040ez Lease cancellation payments, Lease cancellation payments. Irs form 1040ez Legal fees, Legal and Professional Fees Like-kind exchanges, Like-kind exchanges. Irs form 1040ez , Exchange of like-kind property. Irs form 1040ez Limited liability company, Limited liability company (LLC). Irs form 1040ez Listed property, Listed property. Irs form 1040ez Lobbying expense, Expenses You Cannot Deduct Local transportation expenses, Local transportation expenses. Irs form 1040ez Lodging, Meals and lodging. Irs form 1040ez Long-term capital gain or loss, Is My Capital Gain or Loss Short Term or Long Term? Lost income payments, Lost income payments. Irs form 1040ez Low sulfur diesel fuel production credit, Low sulfur diesel fuel production credit (Form 8896). Irs form 1040ez Low-income housing credit, Low-income housing credit (Form 8586). Irs form 1040ez M Meals, Meals and lodging. Irs form 1040ez (see Travel expenses) Methods for figuring net earnings, Methods for Figuring Net Earnings Mileage rate for vehicles, Standard mileage rate. Irs form 1040ez Motor vehicle, alternative credit, Alternative motor vehicle credit (Form 8910). Irs form 1040ez N Net operating losses, Net Operating Losses (NOLs) Net profit or loss, Introduction New markets credit, New markets credit (Form 8874). Irs form 1040ez Newspaper carrier or distributor, Newspaper carrier or distributor. Irs form 1040ez Newspaper or magazine vendor, Newspaper or magazine vendor. Irs form 1040ez Nonbusiness bad debt, Nonbusiness bad debts. Irs form 1040ez Nonconventional source fuel credit, Nonconventional source fuel credit (Form 8907). Irs form 1040ez Nondeductible insurance premiums, Nondeductible premiums. Irs form 1040ez Nonemployee compensation, Introduction Nontaxable exchanges, Nontaxable exchanges. Irs form 1040ez Not income Appreciation, Appreciation. Irs form 1040ez Consignments, Consignments. Irs form 1040ez Constructions allowances, Construction allowances. Irs form 1040ez Exchange of like-kind property, Exchange of like-kind property. Irs form 1040ez Leasehold improvements, Leasehold improvements. Irs form 1040ez Loans, Loans. Irs form 1040ez Sales tax, Sales tax. Irs form 1040ez Not-for-profit activities, Not-for-Profit Activities Notary public, Notary public. Irs form 1040ez , Notary public. Irs form 1040ez O Occupations, selected Administrator, Executor or administrator. Irs form 1040ez Direct seller, Direct seller. Irs form 1040ez , Real estate agent or direct seller. Irs form 1040ez Executor, Executor or administrator. Irs form 1040ez Fishing crew member, Fishing crew member. Irs form 1040ez Insurance agent, former, Insurance agent, former. Irs form 1040ez Insurance agent, retired, Insurance agent, retired. Irs form 1040ez Newspaper carrier or distributor, Newspaper carrier or distributor. Irs form 1040ez Newspaper or magazine vendor, Newspaper or magazine vendor. Irs form 1040ez Notary public, Notary public. Irs form 1040ez Public official, Public official. Irs form 1040ez Real estate agent, Real estate agent or direct seller. Irs form 1040ez Securities dealer, Securities dealer. Irs form 1040ez Securities trader, Securities trader. Irs form 1040ez Office in the home, Office in the home. Irs form 1040ez (see also Business use of your home) Optional methods, using both, Using Both Optional Methods Ordinary gain or loss, Is My Gain or Loss Ordinary or Capital? Orphan drug credit, Orphan drug credit (Form 8820). Irs form 1040ez P Parking fees, Parking fees and tolls. Irs form 1040ez Partners, husband and wife, Business owned and operated by spouses. Irs form 1040ez Pay, kinds of, Kinds of pay. Irs form 1040ez Paying Business taxes, Filing and Paying Business Taxes Income tax, How Do I Pay Income Tax? Payments to third parties, Payments to third parties. Irs form 1040ez Penalties and fines, Expenses You Cannot Deduct Penalty Failure to file Form 8300, Penalties. Irs form 1040ez Failure to file information returns, Penalties. Irs form 1040ez Failure to furnish correct payee statements, Penalties. Irs form 1040ez Underpayment of tax, Penalty for underpayment of tax. Irs form 1040ez Waiver of, Waiver of penalties. Irs form 1040ez Pension plans, Pension Plans Personal property tax, Personal property tax. Irs form 1040ez Prepaid expense Extends useful life, Prepayment. Irs form 1040ez Rent, Rent paid in advance. Irs form 1040ez Professional fees, Legal and Professional Fees Promissory notes, Promissory notes. Irs form 1040ez Public official, Public official. Irs form 1040ez Punitive damages, Punitive damages. Irs form 1040ez Q Qualified plug-in electric drive motor vehicle credit, Qualified plug-in electric drive motor vehicle credit (Form 8936). Irs form 1040ez Qualified real property business debt, Qualified real property business debt. Irs form 1040ez R Real estate Agent, Real estate agent or direct seller. Irs form 1040ez Dealer, Real estate dealer. Irs form 1040ez Rent, Real Estate Rents Taxes, Real estate taxes. Irs form 1040ez Recovery of items previously deducted, Recovery of items previously deducted. Irs form 1040ez Refund Inquiries, Refund inquiries. Irs form 1040ez Offsets against debts, Offset against debts. Irs form 1040ez Related persons Unreasonable rent, Unreasonable rent. Irs form 1040ez Renewable electricity, refined coal, and Indian coal production credit, Renewable electricity, refined coal, and Indian coal production credit (Form 8835). Irs form 1040ez Rent expense, Rent Expense Rental income, Real Estate Rents Repayment of income, Repayment of income. Irs form 1040ez Reportable transaction disclosure statement, Reminders Reporting self-employment tax, Reporting Self-Employment Tax Restricted property, Restricted property. Irs form 1040ez Retirement plans (see Pension plans) S Salaries, Employees' Pay Sale of a business, Sale of a business. Irs form 1040ez Sale of property, What Is a Disposition of Property? (see also Disposition of property) Sales of assets, Introduction Sales tax, Sales tax. Irs form 1040ez Schedule C, How Do I File? Schedule C-EZ, How Do I File? Schedule SE (Form 1040), Who must pay self-employment tax. Irs form 1040ez Schedule SE, filing requirement, Reporting Self-Employment Tax SE tax About, Self-Employment (SE) Tax Aliens, Aliens. Irs form 1040ez Child employed by parent, Child employed by parent. Irs form 1040ez Church employee, Church employee. Irs form 1040ez Community property income, Community Property Income Deduction for, Self-employment tax. Irs form 1040ez Earning credits, Earning credits in 2013 and 2014. Irs form 1040ez Effects of using an optional method, Effects of using an optional method. Irs form 1040ez Farm optional method, Farm Optional Method Fiscal year filer, Fiscal Year Filer Fishing crew member, Fishing crew member. Irs form 1040ez Gain or loss, Gain or Loss Government employee, State or local government employee. Irs form 1040ez , Foreign government or international organization employee. Irs form 1040ez Joint return, Joint return. Irs form 1040ez Lost income payments, Lost Income Payments Maximum earnings For 2011, What's New for 2013, Maximum earnings subject to SE tax. Irs form 1040ez Subject to, Maximum earnings subject to self-employment tax. Irs form 1040ez Methods for figuring net earnings, Methods for Figuring Net Earnings More than one business, More Than One Business, More than one business. Irs form 1040ez Nonfarm optional method, Nonfarm Optional Method Notary public, Notary public. Irs form 1040ez Optional methods Farm, Farm Optional Method Nonfarm, Nonfarm Optional Method Rate, SE tax rate. Irs form 1040ez Regular method, Regular Method Residing abroad, U. Irs form 1040ez S. Irs form 1040ez citizen or resident alien residing abroad. Irs form 1040ez Special rules and exceptions, Special Rules and Exceptions Tax rate, SE tax rate. Irs form 1040ez Time limit for posting income, The Social Security Administration (SSA) time limit for posting self-employment income. Irs form 1040ez Who must pay, Who Must Pay SE Tax? Why use an optional method, Why use an optional method? Section 179 Deduction, Section 179 deduction. Irs form 1040ez Property, Section 179 property. Irs form 1040ez Securities Dealer, Securities dealer. Irs form 1040ez Trader, Securities trader. Irs form 1040ez Self-employed health insurance deduction, Self-employed health insurance deduction. Irs form 1040ez Self-employment tax (see SE tax) Settlement payments, Settlement payments. Irs form 1040ez Short-term capital gain or loss, Is My Capital Gain or Loss Short Term or Long Term? Signature, electronic, Electronic signatures. Irs form 1040ez Small Business Administration, Small Business Administration Small employer health insurance premiums credit, Credit for small employer health insurance premiums (Form 8941). Irs form 1040ez Social security coverage, Social security coverage. Irs form 1040ez Social security number (SSN), Social security number (SSN). Irs form 1040ez Sole proprietor, Sole proprietor. Irs form 1040ez , Sole proprietor or independent contractor. Irs form 1040ez Sport utility vehicle, Section 179 deduction. Irs form 1040ez Standard mileage rate, Standard mileage rate. Irs form 1040ez For 2011, What's New for 2013 Statutory employee, Statutory employee. Irs form 1040ez Suggestions for publication, Comments and suggestions. Irs form 1040ez SUV, Section 179 deduction. Irs form 1040ez T Tax home, Local transportation expenses. Irs form 1040ez , Travel expenses. Irs form 1040ez Tax preparation fees, Tax preparation fees. Irs form 1040ez Tax refund Claim for, Refunds. Irs form 1040ez Offset against debts, Offset against debts. Irs form 1040ez Tax return How to file, How Do I File? Who must file, Do I Have To File an Income Tax Return? Tax year, Accounting Periods Calendar, Calendar tax year. Irs form 1040ez Change in, Change in tax year. Irs form 1040ez Fiscal, Fiscal tax year. Irs form 1040ez Taxes Deduction for, Taxes Employment, Employment Taxes, Employment taxes. Irs form 1040ez Excise, Excise Taxes, Excise taxes. Irs form 1040ez Fuel, Fuel taxes. Irs form 1040ez Income, Income Tax, Income taxes. Irs form 1040ez Paid on certain employee tips, Credit for employer social security and Medicare taxes paid on certain employee tips (Form 8846). Irs form 1040ez Personal property, Personal property tax. Irs form 1040ez Real estate, Real estate taxes. Irs form 1040ez Sales, Sales tax. Irs form 1040ez Self-employment, Self-Employment (SE) Tax, Self-employment tax. Irs form 1040ez Taxpayer rights, Declaration of Taxpayer Rights Third parties, Payments to, Payments to third parties. Irs form 1040ez Tolls, Parking fees and tolls. Irs form 1040ez Trade discount, Trade discounts. Irs form 1040ez , Trade discounts. Irs form 1040ez Trade or business, Trade or business. Irs form 1040ez Trailer park owner, Trailer park owner. Irs form 1040ez Transportation expenses, Local transportation expenses. Irs form 1040ez Travel expenses, Travel expenses. Irs form 1040ez U Underpayment of tax penalty, Penalty for underpayment of tax. Irs form 1040ez Uniform capitalization rules, Uniform Capitalization Rules W Wages, Employees' Pay Work opportunity credit, Work opportunity credit (Form 5884). Irs form 1040ez Prev  Up     Home   More Online Publications
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Know the Risks

Cyber security, phishing, worms, firewalls, Trojan horses, hackers, and viruses seem to be in the news every day. Plus warnings to update your virus protection, watch out for online scams, protect your privacy, and watch what you click on are everywhere. But what does it all mean? And what can you do to safeguard access to your computer and to protect yourself and your family? What is this all about?

The first step in protecting yourself is to recognize the risks and become familiar with some of the terminology associated with cyber security. The Department of Homeland Security created this list of terms: Hacker, attacker, or intruder - These terms are applied to the people who seek to exploit weaknesses in software and computer systems for their own gain. Although their intentions are sometimes fairly benign and motivated solely by curiosity, their actions are typically in violation of the intended use of the systems they are exploiting. The results can range from mere mischief (creating a virus with no intentionally negative impact) to malicious (stealing or altering information).

Malicious code includes code such as viruses, worms, and Trojan horses. Although some people use these terms interchangeably, they have unique characteristics:

  • Viruses - This type of malicious code requires you to actually do something before it infects your computer. This action could be opening an email attachment or going to a particular web page.
  • Worms - Worms propagate without you r doing anything. They typically start by exploiting a software vulnerability (a flaw that allows the software's intended security policy to be violated). Then once the victim computer has been infected, the worm will attempt to find and infect other computers. Similar to viruses, worms can propagate via email, web sites, or network-based software. The automated self-propagation of worms distinguishes them from viruses.
  • Trojan horses - A Trojan horse program is software that claims to do one thing while, in fact, doing something different behind the scenes. For example, a program that claims it will speed up your computer may actually be sending your confidential information to an intruder.
  • Spyware - This sneaky software rides its way onto computers when you download screensavers, games, music, and other applications. Spyware sends information about what you're doing on the Internet to a third-party, usually to target you with pop-up ads. Browsers enable you to block pop-ups. You can also install anti-spyware to stop this threat to your privacy.

Minimize Access to Your Information

It is probably easy for you to identify people who could gain physical access to your computer—family members, roommates, co-workers, members of a cleaning crew, and maybe some others. But identifying the people who could gain remote access to your computer becomes much more difficult. As long as you have a computer and connect it to a network or the internet, you are vulnerable to someone or something else accessing or corrupting your information. Luckily, you can develop habits that make it more difficult.

Lock or log-off your computer when you are away from it. This prevents another person from waiting for you to leave and then sitting down at your computer and accessing all of your information.

To be really secure, disconnect your computer from the Internet when you aren't using it. DSL and cable modems make it possible for users to be online all the time, but this convenience comes with risks. The likelihood that attackers or viruses scanning the network for available computers will target your computer becomes much higher if your computer is always connected.

Evaluate your security settings. It is important to examine your computer's settings, especially the security settings, and select options that meet your needs without putting you at increased risk. Many, but not all Internet providers offer free security software. If you don't receive free software, you should consider buying a commercial product that includes virus scan, firewall, and pop-up blockers. You should also be aware of your Internet cookies setting. Cookies are short pieces of data used by web servers to identify users. Some cookies are useful for storing images and data from websites that you frequent, but others are malicious and collect information about you. You'll have to decide how much risk from cookies you can accept. Finally, if you install a patch or a new version of software, or if you hear of something that might affect your settings, reevaluate your settings to make sure they are still appropriate.

Look for a privacy policy statement or seal that indicates the site abides by privacy standards. Take time to read how your privacy is protected.

Look for signals that you are using a secure web page. A secure site encrypts or scrambles personal information so it cannot be easily intercepted. Signals include a screen notice that says you are on a secure site, a closed lock or unbroken key in the bottom corner of your screen, or the first letters of the Internet address you are viewing changes from "http" to "https."

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What if Your Online Privacy is Compromised?

If you believe you might have revealed sensitive information about your organization, report it to the appropriate people within the organization, including network administrators. They can be alert for any suspicious or unusual activity.

If you believe your financial accounts may be compromised, contact your financial institution immediately and close any accounts that may have been compromised. Watch for any unexplainable charges to your account.

Check your credit reports for unusual activity.

Report your situation to local police, and file a report with the Federal Trade Commission.

Protecting Children Online

The Children's Online Privacy Protection Act requires commercial websites to obtain parental consent before collecting, using, or disclosing personal information from children under 13. For more information, contact the FTC about Children's Privacy.

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The Irs Form 1040ez

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