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

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

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

3. E-File for FREE

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

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

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

Irs Gov Freefile Com

Tax 1040xTurbotax Free State FilingHow Do I File My 2011 Taxes Online1040xformTax Return 2011 DeadlineTax Unemployed2012 Taxes OnlineHow To File Amended Tax ReturnIrs Tax Form 940 2012Free State Taxes FileFiling Amended Tax Return OnlineH&r Block 2011 Tax SoftwareEz 1040 E-filePrint 1040ez2009 Turbo TaxTax FilingHow To File 2011 Taxes In 2013File State Income Tax Online FreeCan Ie File 2011 TaxesHow To Fill Out 1040ez FormForm 1040x TurbotaxTax Deductions For MilitaryFree State Tax FormsI Didn T File My 2011 Taxes2012 Tax Return InstructionsEz File TaxesIrs Gov 1040x FormFile For 2012 TaxesFreetaxusa 2012Filing Taxes For FreeMyfreetaxes 2013Filelate ComCan You File 1040x OnlineH&r BlocksHow To Amend TaxState Tax Form 20142011 Ez Tax FormForm 1040ez Instructions 2013Students TaxesTax 1040ez

Irs Gov Freefile Com

Irs gov freefile com 13. Irs gov freefile com   Employment Taxes Table of Contents What's New for 2013 What's New for 2014 Reminders Important Dates for 2014 Introduction Topics - This chapter discusses: Useful Items - You may want to see: Farm Employment Family Employees Crew Leaders Social Security and Medicare TaxesReligious exemption. Irs gov freefile com Wage limit. Irs gov freefile com Federal Income Tax WithholdingNew Form W-4 for 2014. Irs gov freefile com Required Notice to Employees About Earned Income Credit (EIC) Reporting and Paying Social Security, Medicare, and Withheld Federal Income TaxesElectronic deposit requirement. Irs gov freefile com Federal Unemployment (FUTA) TaxReporting and Paying FUTA Tax What's New for 2013 Social security and Medicare tax for 2013. Irs gov freefile com  The employee tax rate for social security is 6. Irs gov freefile com 2%. Irs gov freefile com Previously, the employee tax rate for social security was 4. Irs gov freefile com 2%. Irs gov freefile com The employer tax rate for social security remains unchanged at 6. Irs gov freefile com 2%. Irs gov freefile com The social security wage base limit is $113,700. Irs gov freefile com The Medicare tax rate is 1. Irs gov freefile com 45% each for the employee and employer, unchanged from 2012. Irs gov freefile com There is no wage base limit for Medicare tax. Irs gov freefile com Additional Medicare Tax. Irs gov freefile com  In addition to withholding Medicare tax at 1. Irs gov freefile com 45%, you must withhold a 0. Irs gov freefile com 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. Irs gov freefile com You are required to begin withholding Additional Medicare Tax in the pay period in which you pay wages in excess of $200,000 to an employee and continue to withhold it each pay period until the end of the calendar year. Irs gov freefile com Additional Medicare Tax is only imposed on the employee. Irs gov freefile com There is no employer share of Additional Medicare Tax. Irs gov freefile com All wages that are subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 threshold. Irs gov freefile com For more information on what wages are subject to Medicare tax, see the chart, Special Rules for Various Types of Services and Payments, in section 15 of Publication 15 (Circular E), Employer's Tax Guide. Irs gov freefile com For more information on Additional Medicare Tax, visit IRS. Irs gov freefile com gov and enter “Additional Medicare Tax” in the search box. Irs gov freefile com Leave-based donation programs to aid victims of Hurricane Sandy. Irs gov freefile com  Under these programs, employees may donate their vacation, sick, or personal leave in exchange for employer cash payments made before January 1, 2014, to qualified tax-exempt organizations providing relief for the victims of Hurricane Sandy. Irs gov freefile com The donated leave will not be included in the income or wages of the employee. Irs gov freefile com The employer may deduct the cash payments as business expenses or charitable contributions. Irs gov freefile com For more information, see Notice 2012-69, 2012-51 I. Irs gov freefile com R. Irs gov freefile com B. Irs gov freefile com 712, available at www. Irs gov freefile com irs. Irs gov freefile com gov/irb/2012-51_IRB/ar09. Irs gov freefile com html. Irs gov freefile com Work opportunity tax credit for qualified tax-exempt organizations hiring qualified veterans extended. Irs gov freefile com  The work opportunity tax credit is now available for eligible unemployed veterans who begin work before January 1, 2014. Irs gov freefile com Previously, the credit was available for unemployed veterans who began work on or after November 22, 2011, and before January 1, 2013. Irs gov freefile com Qualified tax-exempt organizations that hire eligible unemployed veterans can claim the work opportunity tax credit against their payroll tax liability using Form 5884-C, Work Opportunity Credit for Qualified Tax-Exempt Organizations Hiring Qualified Veterans. Irs gov freefile com For more information, visit IRS. Irs gov freefile com gov and enter “work opportunity credit” in the search box. Irs gov freefile com What's New for 2014 Social security and Medicare tax for 2014. Irs gov freefile com  The employee and employer tax rates for social security and the maximum amount of wages subject to social security tax for 2014 will be discussed in Publication 51 (Circular A), Agricultural Employer's Tax Guide (For use in 2014). Irs gov freefile com The Medicare tax rate for 2014 will also be discussed in Publication 51 (Circular A) (For use in 2014). Irs gov freefile com There is no limit on the amount of wages subject to Medicare tax. Irs gov freefile com Reminders Additional employment tax information for farmers. Irs gov freefile com  See Publication 51 (Circular A) for more detailed guidance on employment taxes. Irs gov freefile com For the latest information about employment tax developments impacting farmers, go to www. Irs gov freefile com irs. Irs gov freefile com gov/pub51. Irs gov freefile com Correcting a previously filed Form 943. Irs gov freefile com  If you discover an error on a previously filed Form 943, Employer's Annual Federal Tax Return for Agricultural Employees, make the correction using Form 943-X, Adjusted Employer's Annual Federal Tax Return for Agricultural Employees or Claim for Refund. Irs gov freefile com Form 943-X is filed separately from Form 943. Irs gov freefile com For more information on correcting Form 943, see the Instructions for Form 943-X. Irs gov freefile com Federal tax deposits must be made by electronic funds transfer. Irs gov freefile com  You must use electronic funds transfer to make all federal tax deposits. Irs gov freefile com Generally, electronic funds transfers are made using the Electronic Federal Tax Payment System (EFTPS). Irs gov freefile com If you do not want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make electronic deposits on your behalf. Irs gov freefile com Also, you may arrange for your financial institution to initiate a same-day wire payment on your behalf. Irs gov freefile com EFTPS is a free service provided by the Department of Treasury. Irs gov freefile com Services provided by your tax professional, financial institution, payroll service, or other third party may have a fee. Irs gov freefile com For more information on making federal tax deposits, see section 7 of Publication 51 (Circular A). Irs gov freefile com To get more information about EFTPS or to enroll in EFTPS, visit www. Irs gov freefile com eftps. Irs gov freefile com gov or call 1-800-555-4477 or 1-800-733-4829 (TDD). Irs gov freefile com Additional information about EFTPS is also available in Publication 966, Electronic Federal Tax Payment System: A Guide To Getting Started. Irs gov freefile com Important Dates for 2014 You should take the action indicated by the dates listed. Irs gov freefile com See By February 15 and On February 16 for Form W-4, Employee's Withholding Allowance Certificate, information. Irs gov freefile com Due dates for deposits of withheld federal income taxes, social security taxes, and Medicare taxes are not listed here. Irs gov freefile com For these dates, see Publication 509, Tax Calendars (For use in 2014). Irs gov freefile com Note. Irs gov freefile com  If any date shown below for filing a return, furnishing a form, or depositing taxes falls on a Saturday, Sunday, or legal holiday, the due date is the next business day. Irs gov freefile com A statewide legal holiday delays a filing or furnishing due date only if the IRS office where you are required to file a return or furnish a form is located in that state. Irs gov freefile com For any due date, you will meet the “file” or “furnish” date requirement if the envelope containing the tax return or form is properly addressed, contains sufficient postage, and is postmarked by the U. Irs gov freefile com S. Irs gov freefile com Postal Service by the due date, or sent by an IRS-designated delivery service by the due date. Irs gov freefile com See Private delivery services in Publication 51 (Circular A). Irs gov freefile com Federal tax deposits can only be made by electronic funds transfer and are governed by legal holidays in the District of Columbia. Irs gov freefile com Statewide holidays no longer apply. Irs gov freefile com For a list of legal holidays that delay the due date of a federal tax deposit, see section 7 of Publication 51 (Circular A). Irs gov freefile com Fiscal year taxpayers. Irs gov freefile com  The due dates listed below apply whether you use a calendar or a fiscal year. Irs gov freefile com By January 31. Irs gov freefile com   File Form 943 with the IRS. Irs gov freefile com If you deposited all Form 943 taxes when due, you have 10 additional days to file. Irs gov freefile com Furnish each employee with a completed Form W-2, Wage and Tax Statement. Irs gov freefile com Furnish each recipient to whom you paid $600 or more in nonemployee compensation with a completed Form 1099 (for example, Form 1099-MISC). Irs gov freefile com File Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return, with the IRS. Irs gov freefile com If you deposited all the FUTA tax when due, you have 10 additional days to file. Irs gov freefile com File Form 945, Annual Return of Withheld Federal Income Tax, with the IRS to report any nonpayroll income tax withheld during 2013. Irs gov freefile com If you deposited all Form 945 taxes when due, you have 10 additional days to file. Irs gov freefile com By February 15. Irs gov freefile com  Ask for a new Form W-4 or Formulario W-4(SP), Certificado de Exención de Retenciones del Empleado, from each employee who claimed exemption from federal income tax withholding last year. Irs gov freefile com On February 16. Irs gov freefile com  Any Form W-4 claiming exemption from withholding for the previous year has now expired. Irs gov freefile com Begin withholding for any employee who previously claimed exemption from withholding but has not given you a new Form W-4 for the current year. Irs gov freefile com If the employee does not give you a new Form W-4, withhold taxes based on the last valid Form W-4 you have for the employee that does not claim exemption from withholding or, if one does not exist, as if he or she is single with zero withholding allowances. Irs gov freefile com If the employee furnishes a new Form W-4 claiming exemption from withholding after February 15, you may apply the exemption to future wages, but do not refund taxes withheld while the exempt status was not in place. Irs gov freefile com By February 28. Irs gov freefile com   File paper Forms 1099 and 1096. Irs gov freefile com File Copy A of all paper Forms 1099 with Form 1096, Annual Summary and Transmittal of U. Irs gov freefile com S. Irs gov freefile com Information Returns, with the IRS. Irs gov freefile com For electronically filed returns, see By March 31 below. Irs gov freefile com File paper Forms W-2 and W-3. Irs gov freefile com File Copy A of all paper Forms W-2 with Form W-3, Transmittal of Wage and Tax Statements, with the Social Security Administration (SSA). Irs gov freefile com For electronically filed returns, see By March 31 below. Irs gov freefile com By March 31. Irs gov freefile com   File electronic Forms W-2 and 1099. Irs gov freefile com File electronic Forms W-2 with the SSA and Forms 1099 with the IRS. Irs gov freefile com For more information on reporting Form W-2 information to the SSA electronically, visit the SSA's Employer W-2 Filing Instructions & Information webpage at www. Irs gov freefile com socialsecurity. Irs gov freefile com gov/employer. Irs gov freefile com For information on filing information returns electronically with the IRS, see Publication 1220, Specifications for Filing Forms 1097, 1098, 1099, 3921, 3922, 5498, 8935, and W-2G Electronically. Irs gov freefile com By April 30, July 31, October 31, and January 31. Irs gov freefile com   Deposit FUTA taxes. Irs gov freefile com Deposit FUTA tax due if it is more than $500. Irs gov freefile com Before December 1. Irs gov freefile com  Remind employees to submit a new Form W-4 if their withholding allowances have changed or will change for the next year. Irs gov freefile com Introduction You are generally required to withhold federal income tax from the wages of your employees. Irs gov freefile com You may also be subject to social security and Medicare taxes under the Federal Insurance Contributions Act (FICA) and federal unemployment tax under the Federal Unemployment Tax Act (FUTA). Irs gov freefile com You must also withhold Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. Irs gov freefile com This chapter includes information about these taxes. Irs gov freefile com You must also pay self-employment tax on your net earnings from farming. Irs gov freefile com See chapter 12 for information on self-employment tax. Irs gov freefile com Topics - This chapter discusses: Farm employment, Family employees, Crew leaders, Social security and Medicare taxes, Additional Medicare Tax withholding, Federal income tax withholding, Reporting and paying social security, Medicare, and withheld federal income taxes, and FUTA tax. Irs gov freefile com Useful Items - You may want to see: Publication 15 (Circular E), Employer's Tax Guide 15-A Employer's Supplemental Tax Guide 15-B Employer's Tax Guide to Fringe Benefits 51 (Circular A), Agricultural Employer's Tax Guide 926 Household Employer's Tax Guide Form (and Instructions) W-2 Wage and Tax Statement W-4 Employee's Withholding Allowance Certificate W-9 Request for Taxpayer Identification Number and Certification 940 Employer's Annual Federal Unemployment (FUTA) Tax Return 943 Employer's Annual Federal Tax Return for Agricultural Employees 943-X Adjusted Employer's Annual Federal Tax Return for Agricultural Employees or Claim for Refund See chapter 16 for information about getting publications and forms. Irs gov freefile com Farm Employment In general, you are an employer of farmworkers if your employees do any of the following types of work. Irs gov freefile com Raising or harvesting agricultural or horticultural products on a farm, including raising and feeding of livestock. Irs gov freefile com Operating, managing, conserving, improving, or maintaining your farm and its tools and equipment. Irs gov freefile com Services performed in salvaging timber, or clearing land of brush and other debris, left by a hurricane (also known as hurricane labor). Irs gov freefile com Handling, processing, or packaging any agricultural or horticultural commodity if you produced more than half of the commodity (for a group of up to 20 unincorporated operators, all of the commodity). Irs gov freefile com Work related to cotton ginning, turpentine, gum resin products, or the operation and maintenance of irrigation facilities. Irs gov freefile com For more information, see Publication 51 (Circular A). Irs gov freefile com Generally, a worker who performs services for you is your employee if you have the right to control what will be done and how it will be done. Irs gov freefile com This is so even when you give the employee freedom of action. Irs gov freefile com What matters is that you have the right to control the details of how the services are performed. Irs gov freefile com You are responsible for withholding and paying employment taxes for your employees. Irs gov freefile com You are also required to file employment tax returns. Irs gov freefile com These requirements do not apply to amounts that you pay to independent contractors. Irs gov freefile com See Publication 15-A for more information on how to determine whether an individual providing services is an independent contractor or an employee. Irs gov freefile com If you employ a family of workers, each worker subject to your control (not just the head of the family) is an employee. Irs gov freefile com Special rules apply to crew leaders. Irs gov freefile com See Crew Leaders , later. Irs gov freefile com Employer identification number (EIN). Irs gov freefile com   If you have employees, you must have an EIN. Irs gov freefile com If you do not have an EIN, you may apply for one online. Irs gov freefile com Go to IRS. Irs gov freefile com gov and click on the Apply for an EIN Online link under Tools. Irs gov freefile com You may also apply for an EIN by calling 1-800-829-4933 or 1-800-829-4059 (TDD/TTY for persons who are deaf, hard of hearing, or have a speech disability). Irs gov freefile com The hours of operation for both numbers are Monday–Friday form 7:00 a. Irs gov freefile com m. Irs gov freefile com –7:00 p. Irs gov freefile com m. Irs gov freefile com local time (Alaska and Hawaii follow Pacific time). Irs gov freefile com You can also fax or mail Form SS-4, Application for Employer Identification Number, to the IRS. Irs gov freefile com Employee's social security number (SSN). Irs gov freefile com   An employee who does not have an SSN should submit Form SS-5, Application for a Social Security Card, to the Social Security Administration (SSA). Irs gov freefile com Form SS-5 is available from any SSA office or by calling 1-800-772-1213 (operates 24 hours per day). Irs gov freefile com It is also available from the SSA's website at www. Irs gov freefile com socialsecurity. Irs gov freefile com gov. Irs gov freefile com   The employee must furnish evidence of age, identity, and U. Irs gov freefile com S. Irs gov freefile com citizenship or lawful immigration status permitting employment with the Form SS-5. Irs gov freefile com An employee who is age 18 or older must appear in person with this evidence at an SSA office. Irs gov freefile com Form I-9. Irs gov freefile com    You must verify that each new employee is legally eligible to work in the United States. Irs gov freefile com This includes completing the Form I-9, Employment Eligibility Verification. Irs gov freefile com Form I-9 is available from the U. Irs gov freefile com S. Irs gov freefile com Citizenship and Immigration Services (USCIS) offices or by calling the Bureau of Citizenship and Immigration Services Forms Request Line at 1-800-870-3676. Irs gov freefile com Form I-9 is also available from the USCIS website at www. Irs gov freefile com uscis. Irs gov freefile com gov. Irs gov freefile com You can also contact the USCIS at 1-800-375-5283 for more information. Irs gov freefile com New hire reporting. Irs gov freefile com   You are required to report any new employee to a designated state new hire registry. Irs gov freefile com Many states accept a copy of Form W-4 with employer information added. Irs gov freefile com Visit the Office of Child Support Enforcement website at www. Irs gov freefile com acf. Irs gov freefile com hhs. Irs gov freefile com gov/programs/cse/newhire for more information. Irs gov freefile com Family Employees Generally, the wages you pay to family members who are your employees are subject to employment taxes. Irs gov freefile com However, certain exemptions may apply to wages paid to your child, spouse, or parent. Irs gov freefile com Exemptions for your child. Irs gov freefile com   Payments for the services of your child under age 18 who works for you in your trade or business (including a farm) are not subject to social security and Medicare taxes. Irs gov freefile com However, see Nonexempt services of a child or spouse , later. Irs gov freefile com Payments for the services of your child under age 21 employed by you in other than a trade or business, such as payments for household services in your home, are also not subject to social security or Medicare taxes. Irs gov freefile com Payments for the services of your child under age 21 employed by you, whether or not in your trade or business, are not subject to FUTA tax. Irs gov freefile com Although not subject to social security, Medicare, or FUTA tax, the child's wages still may be subject to federal income tax withholding. Irs gov freefile com Exemptions for your spouse. Irs gov freefile com   Payments for the services of your spouse who works for you in your trade or business are subject to federal income tax withholding and social security and Medicare taxes, but not FUTA tax. Irs gov freefile com   Payments for the services of your spouse employed by you in other than a trade or business, such as payments for household services in your home, are not subject to social security, Medicare, or FUTA taxes. Irs gov freefile com Nonexempt services of a child or spouse. Irs gov freefile com   Payments for the services of your child or spouse are subject to federal income tax withholding as well as social security, Medicare, and FUTA taxes if he or she works for any of the following entities. Irs gov freefile com A corporation, even if it is controlled by you. Irs gov freefile com A partnership, even if you are a partner. Irs gov freefile com This does not apply to wages paid to your child if each partner is a parent of the child. Irs gov freefile com An estate or trust, even if it is the estate of a deceased parent. Irs gov freefile com In these situations, the child or spouse is considered to work for the corporation, partnership, or estate, not you. Irs gov freefile com Exemptions for your parent. Irs gov freefile com   Payments for the services of your parent employed by you in your trade or business are subject to federal income tax withholding and social security and Medicare taxes. Irs gov freefile com Social security and Medicare taxes do not apply to wages paid to your parent for services not in your trade or business, but they do apply to payments for household services in your home if both the following conditions are satisfied. Irs gov freefile com You have a child living in your home who is under age 18 or has a physical or mental condition that requires care by an adult for at least 4 continuous weeks in a calendar quarter. Irs gov freefile com You are a widow or widower; or divorced and not remarried; or have a spouse in the home who, because of a physical or mental condition, cannot care for your child for at least 4 continuous weeks in the quarter. Irs gov freefile com   Wages you pay to your parent are not subject to FUTA tax, regardless of the type of services provided. Irs gov freefile com Qualified joint venture. Irs gov freefile com   If spouses elect to be treated as a qualified joint venture instead of a partnership, either spouse may report and pay the employment taxes due on the wages paid to employees using the EIN of that spouse's sole proprietorship. Irs gov freefile com For more information about qualified joint ventures, see chapter 12. Irs gov freefile com Crew Leaders If farmworkers are provided by a crew leader, the crew leader may be the employer of the workers. Irs gov freefile com Social security and Medicare taxes. Irs gov freefile com   For social security and Medicare tax purposes, the crew leader is the employer of the workers if both of the following requirements are met. Irs gov freefile com The crew leader pays (either on his or her own behalf or on behalf of the farmer) the workers for their farm labor. Irs gov freefile com The crew leader has not entered into a written agreement with the farmer under which the crew leader is designated as an employee of the farmer. Irs gov freefile com Federal income tax withholding. Irs gov freefile com   If the crew leader is the employer for social security and Medicare tax purposes, the crew leader is the employer for federal income tax withholding purposes. Irs gov freefile com Federal unemployment (FUTA) tax. Irs gov freefile com   For FUTA tax purposes, the crew leader is the employer of the workers if, in addition to the earlier requirements, either of the following requirements are met. Irs gov freefile com The crew leader is registered under the Migrant and Seasonal Agricultural Worker Protection Act. Irs gov freefile com Substantially all crew members operate or maintain mechanized equipment provided by the crew leader as part of the service to the farmer. Irs gov freefile com   The farmer is the employer of workers furnished by a crew leader in all other situations. Irs gov freefile com In addition, the farmer is the employer of workers furnished by a registered crew leader if the workers are the employees of the farmer under the common-law test. Irs gov freefile com For example, some farmers employ individuals to recruit farmworkers exclusively for them. Irs gov freefile com Although these individuals may be required to register under the Migrant and Seasonal Agricultural Worker Protection Act, the workers are employed directly by the farmer. Irs gov freefile com The farmer is the employer in these cases. Irs gov freefile com For information about common-law employees, see section 1 of Publication 15-A. Irs gov freefile com For information about crew leaders, see the Department of Labor website at www. Irs gov freefile com dol. Irs gov freefile com gov/whd/regs/compliance/whdfs49. Irs gov freefile com htm. Irs gov freefile com Social Security and Medicare Taxes All cash wages you pay to an employee during the year for farmwork are subject to social security and Medicare taxes if you meet either of the following tests. Irs gov freefile com You pay the employee $150 or more in cash wages (count all wages paid on a time, piecework, or other basis) during the year for farmwork (the $150 test). Irs gov freefile com The $150 test applies separately to each farmworker that you employ. Irs gov freefile com If you employ a family of workers, each member is treated separately. Irs gov freefile com Do not count wages paid by other employers. Irs gov freefile com You pay cash and noncash wages of $2,500 or more during the year to all your employees for farmwork (the $2,500 test). Irs gov freefile com If the $2,500 test for the group is not met, the $150 test for an employee still applies. Irs gov freefile com Exceptions. Irs gov freefile com   Annual cash wages of less than $150 you pay to a seasonal farmworker are not subject to social security and Medicare taxes, even if you pay $2,500 or more to all your farmworkers. Irs gov freefile com However, these wages count toward the $2,500 test for determining whether other farmworkers' wages are subject to social security and Medicare taxes. Irs gov freefile com   A seasonal farmworker is a worker who: Works as a hand-harvest laborer, Is paid piece rates in an operation usually paid on this basis in the region of employment, Commutes daily from his or her permanent home to the farm, and Worked in agriculture less than 13 weeks in the preceding calendar year. Irs gov freefile com   See Family Employees , earlier, for certain exemptions from social security and Medicare taxes that apply to your child, spouse, and parent. Irs gov freefile com Religious exemption. Irs gov freefile com   An exemption from social security and Medicare taxes is available to members of a recognized religious group or division opposed to public insurance. Irs gov freefile com This exemption is available only if both the employee and the employer are members of the group or division. Irs gov freefile com   For more information, see Publication 517, Social Security and Other Information for Members of the Clergy and Religious Workers. Irs gov freefile com Cash wages. Irs gov freefile com   Only cash wages paid to farmworkers are subject to social security and Medicare taxes. Irs gov freefile com Cash wages include checks, money orders, and any kind of money or cash. Irs gov freefile com   Only cash wages subject to social security and Medicare taxes are credited to your employees for social security benefit purposes. Irs gov freefile com Payments not subject to these taxes, such as commodity wages, do not contribute to your employees' social security coverage. Irs gov freefile com For information about social security benefits, contact the SSA at 1-800-772-1213 or online at www. Irs gov freefile com socialsecurity. Irs gov freefile com gov. Irs gov freefile com Noncash wages. Irs gov freefile com    Noncash wages include food, lodging, clothing, transportation passes, and other goods and services. Irs gov freefile com Noncash wages paid to farmworkers, including commodity wages, are not subject to social security and Medicare taxes. Irs gov freefile com However, they are subject to these taxes if the substance of the transaction is a cash payment. Irs gov freefile com For information on lodging provided as a condition of employment, see Publication 15-B. Irs gov freefile com   Report the value of noncash wages in box 1 of Form W-2 together with cash wages. Irs gov freefile com Do not show noncash wages in box 3 or in box 5, (unless the substance of the transaction is a cash payment). Irs gov freefile com Tax rates and social security wage limit. Irs gov freefile com   For 2013, the employer and the employee will pay the following taxes. Irs gov freefile com The employer and employee each pay 6. Irs gov freefile com 2% of cash wages for social security tax (old-age, survivors, and disability insurance). Irs gov freefile com The employer and employee each pay 1. Irs gov freefile com 45% of cash wages for Medicare tax (hospital insurance). Irs gov freefile com The employee pays 0. Irs gov freefile com 9% of cash wages in excess of $200,000 for Additional Medicare Tax. Irs gov freefile com Wage limit. Irs gov freefile com   The limit on wages subject to the social security tax for 2013 is $113,700. Irs gov freefile com There is no limit on wages subject to the Medicare tax. Irs gov freefile com All covered wages are subject to the Medicare tax. Irs gov freefile com Additionally, all wages in excess of $200,000 are subject to Additional Medicare Tax withholding. Irs gov freefile com Paying employee's share. Irs gov freefile com   If you would rather pay the employee's share of social security and Medicare taxes without deducting it from his or her wages, you may do so. Irs gov freefile com It is additional income to the employee. Irs gov freefile com You must include it in box 1 of the employee's Form W-2, but do not count it as social security and Medicare wages (boxes 3 and 5 on Form W-2) or as wages for federal unemployment (FUTA) tax purposes. Irs gov freefile com Example. Irs gov freefile com Jane operates a small family fruit farm. Irs gov freefile com She employs day laborers in the picking season to enable her to timely get her crop to market. Irs gov freefile com She does not deduct the employees' share of social security and Medicare taxes from their pay; instead, she pays it on their behalf. Irs gov freefile com When her accountant, Susan, prepares the employees' Forms W-2, she adds each employee's share of social security and Medicare taxes paid by Jane to the employee's wage income (box 1 of Form W-2), but does not include it in box 3 (social security wages) or box 5 (Medicare wages and tips). Irs gov freefile com For 2013, Jane paid Mary $1,000 during the year. Irs gov freefile com Susan enters $1,076. Irs gov freefile com 50 in box 1 of Mary's Form W-2 ($1,000 wages plus $76. Irs gov freefile com 50 social security and Medicare taxes paid for Mary). Irs gov freefile com She enters $1,000 in boxes 3 and 5 of Mary's Form W-2. Irs gov freefile com Additional Medicare Tax. Irs gov freefile com   In addition to withholding Medicare tax at 1. Irs gov freefile com 45%, you must withhold a 0. Irs gov freefile com 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. Irs gov freefile com You are required to begin withholding Additional Medicare Tax in the pay period in which you pay wages in excess of $200,000 to an employee and continue to withhold it each pay period until the end of the calendar year. Irs gov freefile com Additional Medicare Tax is only imposed on the employee. Irs gov freefile com There is no employer share of Additional Medicare Tax. Irs gov freefile com All wages that are subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 threshold. Irs gov freefile com   For more information on what wages are subject to Medicare tax, see the chart, Special Rules for Various Types of Services and Payments, in section 15 of Publication 15 (Circular E). Irs gov freefile com For more information on Additional Medicare Tax, visit IRS. Irs gov freefile com gov and enter “Additional Medicare Tax” in the search box. Irs gov freefile com Federal Income Tax Withholding If the cash wages you pay to farmworkers are subject to social security and Medicare taxes, they are also subject to federal income tax withholding. Irs gov freefile com Although noncash wages are subject to federal income tax, withhold income tax only if you and the employee agree to do so. Irs gov freefile com The amount to withhold is figured on gross wages without taking out social security and Medicare taxes, union dues, insurance, etc. Irs gov freefile com Form W-4. Irs gov freefile com   Generally, the amount of federal income tax you withhold is based on the employee's marital status and withholding allowances claimed on the employee's Form W-4. Irs gov freefile com In general, an employee can claim withholding allowances on Form W-4 equal to the number of exemptions the employee will be entitled to claim on his or her tax return. Irs gov freefile com An employee may also be able to claim a special withholding allowance and allowances for estimated deductions and credits. Irs gov freefile com   Do not withhold federal income tax from the wages of an employee who, by filing Form W-4, certifies that he or she had no federal income tax liability last year and anticipates no liability for the current year. Irs gov freefile com   You should give each new employee a Form W-4 as soon as you hire the employee. Irs gov freefile com For Spanish-speaking employees, you may use Formulario W-4(SP) which is the Spanish translation of Form W-4. Irs gov freefile com Have the employee complete and return the form to you before the first payday. Irs gov freefile com If the employee does not return the completed form, you must withhold federal income tax as if the employee is single and claims no withholding allowances. Irs gov freefile com New Form W-4 for 2014. Irs gov freefile com   You should make the 2014 Form W-4 available to your employees and encourage them to check their income tax withholding for 2014. Irs gov freefile com Those employees who owed a large amount of tax or received a large refund for 2013 may want to submit a new Form W-4. Irs gov freefile com You cannot accept substitute Forms W-4 developed by employees. Irs gov freefile com How to figure withholding. Irs gov freefile com   You can use one of several methods to determine the amount to withhold. Irs gov freefile com The methods are described in Publication 51 (Circular A), which contains tables showing the correct amount of federal income tax you should withhold. Irs gov freefile com Publication 51 (Circular A) also contains additional information about federal income tax withholding. Irs gov freefile com Nonemployee compensation. Irs gov freefile com   Generally, you do not have to withhold federal income tax on payments for services to individuals who are not your employees. Irs gov freefile com However, you may be required to report these payments on Form 1099-MISC, Miscellaneous Income, and to withhold under the backup withholding rules. Irs gov freefile com For more information, see the Instructions for Form 1099-MISC. Irs gov freefile com Required Notice to Employees About Earned Income Credit (EIC) You must provide notification about EIC to each employee who worked for you at any time during the year and from whom you did not withhold any federal income tax. Irs gov freefile com However, you do not have to notify employees who claim exemption from federal income tax withholding on Form W-4. Irs gov freefile com You meet the notification requirement by giving each employee any of the following. Irs gov freefile com Form W-2, which contains EIC notification on the back of Copy B. Irs gov freefile com A substitute Form W-2 with the exact EIC wording shown on the back of copy B of Form W-2. Irs gov freefile com Notice 797, Possible Federal Tax Refund Due to the Earned Income Credit (EIC). Irs gov freefile com Your own written statement with the exact wording of Notice 797. Irs gov freefile com For more information, see Publication 51 (Circular A). Irs gov freefile com Reporting and Paying Social Security, Medicare, and Withheld Federal Income Taxes You must withhold federal income, social security, and Medicare taxes required to be withheld from the salaries and wages of your employees. Irs gov freefile com You are liable for the payment of these taxes to the federal government whether or not you collect them from your employees. Irs gov freefile com If, for example, you withhold less than the correct tax from an employee's wages, you are still liable for the full amount. Irs gov freefile com You must also pay the employer's share of social security and Medicare taxes. Irs gov freefile com There is no employer share of Additional Medicare Tax. Irs gov freefile com Form 943. Irs gov freefile com   Report withheld federal income tax, social security tax, and Medicare tax on Form 943. Irs gov freefile com Your 2013 Form 943 is due by January 31, 2014 (or February 10, 2014, if you made deposits on time in full payment of the taxes due for the year). Irs gov freefile com Deposits. Irs gov freefile com   Generally, you must deposit both the employer and employee shares of social security and Medicare taxes and federal income tax withheld during the year. Irs gov freefile com However, you may make payments with Form 943 instead of depositing them if you accumulate less than a $2,500 tax liability (“Total taxes after adjustments” line on Form 943) during the year and you pay in full with a timely filed return. Irs gov freefile com   For more information on deposit rules, see Publication 51 (Circular A). Irs gov freefile com Electronic deposit requirement. Irs gov freefile com   You must use electronic funds transfer to make all federal tax deposits. Irs gov freefile com Generally, electronic funds transfers are made using EFTPS. Irs gov freefile com If you do not want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make electronic deposits on your behalf. Irs gov freefile com Also, you may arrange for your financial institution to initiate a same-day wire payment on your behalf. Irs gov freefile com EFTPS is a free service provided by the Department of Treasury. Irs gov freefile com Services provided by your tax professional, financial institution, payroll service, or other third party may have a fee. Irs gov freefile com   For more information on making federal tax deposits, see section 7 of Publication 51 (Circular A). Irs gov freefile com To get more information about EFTPS or to enroll in EFTPS, visit www. Irs gov freefile com eftps. Irs gov freefile com gov or call 1-800-555-4477 or 1-800-733-4829 (TDD). Irs gov freefile com Additional information about EFTPS is also available in Publication 966. Irs gov freefile com Form W-2. Irs gov freefile com   By January 31, you must furnish each employee a Form W-2 showing total wages for the previous year and total federal income tax, social security tax, and Medicare tax withheld. Irs gov freefile com However, if an employee stops working for you and requests the form earlier, you must give it to the employee within 30 days of the later of the following dates. Irs gov freefile com The date the employee requests the form. Irs gov freefile com The date you make your final payment of wages to the employee. Irs gov freefile com Compensation paid to H-2A visa holders. Irs gov freefile com   Report compensation of $600 or more paid to foreign agricultural workers who entered the country on H-2A visas in box 1 of Form W-2. Irs gov freefile com Compensation paid to H-2A workers for agricultural labor performed in connection with this visa is not subject to social security and Medicare taxes, and therefore should not be reported as wages subject to social security tax (line 2), Medicare tax (line 4), or Additional Medicare Tax (line 6) on Form 943, and should not be reported as social security wages (box 3) or Medicare wages (box 5) on Form W-2. Irs gov freefile com   An employer is not required to withhold federal income tax from compensation it pays to an H-2A worker for agricultural labor performed in connection with this visa unless the worker asks for withholding and the employer agrees. Irs gov freefile com In this case, the worker must give the employer a completed Form W-4. Irs gov freefile com Federal income tax withheld should be reported on Form 943, line 8, and in box 2 of Form W-2. Irs gov freefile com   These reporting rules apply when the H-2A worker provides his or her taxpayer identification number (TIN) to the employer. Irs gov freefile com For the rules relating to backup withholding and reporting when the H-2A worker does not provide a TIN, see the Instructions for Form 1099-MISC and the Instructions for Form 945. Irs gov freefile com Trust fund recovery penalty. Irs gov freefile com   If you are responsible for withholding, accounting for, depositing, or paying federal withholding taxes and willfully fail to do so, you can be held liable for a penalty equal to the withheld tax not paid. Irs gov freefile com A responsible person can be an officer of a corporation, a partner, a sole proprietor, or an employee of any form of business. Irs gov freefile com A trustee or agent with authority over the funds of the business can also be held responsible for the penalty. Irs gov freefile com   Willfully means voluntarily, consciously, and intentionally. Irs gov freefile com Paying other expenses of the business instead of the taxes due is acting willfully. Irs gov freefile com Consequences of treating an employee as an independent contractor. Irs gov freefile com   If you classify an employee as an independent contractor and you have no reasonable basis for doing so, you may be held liable for employment taxes for that worker. Irs gov freefile com See Publication 15-A for more information. Irs gov freefile com Federal Unemployment (FUTA) Tax You must pay FUTA tax if you meet either of the following tests. Irs gov freefile com You paid cash wages of $20,000 or more to farmworkers in any calendar quarter during the current or preceding calendar year. Irs gov freefile com You employed 10 or more farmworkers for some part of at least 1 day during any 20 or more different calendar weeks during the current or preceding calendar year. Irs gov freefile com These rules do not apply to exempt services of your spouse, your parents, or your children under age 21. Irs gov freefile com See Family Employees , earlier. Irs gov freefile com Alien farmworkers. Irs gov freefile com   Wages paid to aliens admitted on a temporary basis to the United States to perform farmwork (also known as “H-2A visa workers”) are exempt from FUTA tax. Irs gov freefile com However, include your employment of these workers and the wages you paid them to determine whether you meet either of the above tests. Irs gov freefile com Commodity wages. Irs gov freefile com   Payments in kind for farm labor are not cash wages. Irs gov freefile com Do not count them to figure whether you are subject to FUTA tax or to figure how much tax you owe. Irs gov freefile com Tax rate and credit. Irs gov freefile com   The gross FUTA tax rate is 6. Irs gov freefile com 0% of the first $7,000 cash wages you pay to each employee during the year. Irs gov freefile com However, you are given a credit of up to 5. Irs gov freefile com 4% of the first $7,000 cash wages you pay to each employee for the state unemployment tax you pay. Irs gov freefile com If your state tax rate (experience rate) is less than 5. Irs gov freefile com 4%, you may still be allowed the full 5. Irs gov freefile com 4% credit. Irs gov freefile com   If you do not pay the state tax, you cannot take the credit. Irs gov freefile com If you are exempt from state unemployment tax for any reason, the full 6. Irs gov freefile com 0% rate applies. Irs gov freefile com See the Instructions for Form 940 for additional information. Irs gov freefile com More information. Irs gov freefile com   For more information on FUTA tax, see Publication 51 (Circular A). Irs gov freefile com Reporting and Paying FUTA Tax The FUTA tax is imposed on you as the employer. Irs gov freefile com It must not be collected or deducted from the wages of your employees. Irs gov freefile com Form 940. Irs gov freefile com   Report FUTA tax on Form 940. Irs gov freefile com The 2013 Form 940 is due January 31, 2014 (or February 10, 2014, if you timely deposited the full amount of your 2013 FUTA tax). Irs gov freefile com Deposits. Irs gov freefile com   If at the end of any calendar quarter you owe, but have not yet deposited, more than $500 in FUTA tax for the year, you must make a deposit by the end of the following month. Irs gov freefile com If the undeposited tax is $500 or less at the end of a quarter, you do not have to deposit it. Irs gov freefile com You can add it to the tax for the next quarter. Irs gov freefile com If the total undeposited tax is more than $500 at the end of the next quarter, a deposit will be required. Irs gov freefile com If the total undeposited tax at the end of the 4th quarter is $500 or less, you can either make a deposit or pay it with your return by the January 31, 2014, due date. Irs gov freefile com Electronic deposit requirement. Irs gov freefile com   You must use electronic funds transfer to make all federal tax deposits. Irs gov freefile com Generally, electronic funds transfers are made using EFTPS. Irs gov freefile com If you do not want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make electronic deposits on your behalf. Irs gov freefile com Also, you may arrange for your financial institution to initiate a same-day wire payment on your behalf. Irs gov freefile com EFTPS is a free service provided by the Department of Treasury. Irs gov freefile com Services provided by your tax professional, financial institution, payroll service, or other third party may have a fee. Irs gov freefile com   For more information on making federal tax deposits, see section 7 of Publication 51 (Circular A). Irs gov freefile com To get more information about EFTPS or to enroll in EFTPS, visit www. Irs gov freefile com eftps. Irs gov freefile com gov or call 1-800-555-4477 or 1-800-733-4829 (TDD). Irs gov freefile com Additional information about EFTPS is also available in Publication 966. Irs gov freefile com Prev  Up  Next   Home   More Online Publications
Español

  • Beware Of 'Windshield Bullies'
    Police are issuing renewed warnings about "windshield bullies." In some of the worst cases, they'll damage your windshield and then ring your doorbell offering their windshield replacement services.

The Irs Gov Freefile Com

Irs gov freefile com Internal Revenue Bulletin:  2012-14  April 2, 2012  Rev. Irs gov freefile com Proc. Irs gov freefile com 2012-23 Table of Contents SECTION 1. Irs gov freefile com PURPOSE SECTION 2. Irs gov freefile com BACKGROUND SECTION 3. Irs gov freefile com SCOPE SECTION 4. Irs gov freefile com APPLICATION. Irs gov freefile com 01 Limitations on Depreciation Deductions for Certain Automobiles. Irs gov freefile com . Irs gov freefile com 02 Inclusions in Income of Lessees of Passenger Automobiles. Irs gov freefile com SECTION 5. Irs gov freefile com EFFECTIVE DATE SECTION 6. Irs gov freefile com DRAFTING INFORMATION SECTION 1. Irs gov freefile com PURPOSE This revenue procedure provides: (1) limitations on depreciation deductions for owners of passenger automobiles first placed in service by the taxpayer during calendar year 2012, including separate tables of limitations on depreciation deductions for trucks and vans; and (2) the amounts that must be included in income by lessees of passenger automobiles first leased by the taxpayer during calendar year 2012, including a separate table of inclusion amounts for lessees of trucks and vans. Irs gov freefile com The tables detailing these depreciation limitations and lessee inclusion amounts reflect the automobile price inflation adjustments required by § 280F(d)(7) of the Internal Revenue Code. Irs gov freefile com SECTION 2. Irs gov freefile com BACKGROUND . Irs gov freefile com 01 For owners of passenger automobiles, § 280F(a) imposes dollar limitations on the depreciation deduction for the year the taxpayer places the passenger automobile in service and for each succeeding year. Irs gov freefile com For passenger automobiles placed in service after 1988, § 280F(d)(7) requires the Internal Revenue Service to increase the amounts allowable as depreciation deductions by a price inflation adjustment amount. Irs gov freefile com The method of calculating this price inflation amount for trucks and vans placed in service in or after calendar year 2003 uses a different CPI “automobile component” (the “new trucks” component) than that used in the price inflation amount calculation for other passenger automobiles (the “new cars” component), resulting in somewhat higher depreciation deductions for trucks and vans. Irs gov freefile com This change reflects the higher rate of price inflation for trucks and vans since 1988. Irs gov freefile com . Irs gov freefile com 02 Section 401(a) of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, Pub. Irs gov freefile com L. Irs gov freefile com No. Irs gov freefile com 111-312, 124 Stat. Irs gov freefile com 3296 (Dec. Irs gov freefile com 17, 2010) (the “Act”) extended the 50 percent additional first year depreciation deduction under § 168(k) to qualified property acquired by the taxpayer after December 31, 2007, and before January 1, 2013, if no written binding contract for the acquisition of the property existed before January 1, 2008, and if the taxpayer places the property in service generally before January 1, 2013. Irs gov freefile com Section 168(k)(2)(F)(i) increases the first year depreciation allowed under § 280F(a)(1)(A)(i) by $8,000 for passenger automobiles to which the additional first year depreciation deduction under § 168(k) (hereinafter, referred to as “§ 168(k) additional first year depreciation deduction”) applies. Irs gov freefile com . Irs gov freefile com 03 Section 168(k)(2)(D)(i) provides that the § 168(k) additional first year depreciation deduction does not apply to any property required to be depreciated under the alternative depreciation system of § 168(g), including property described in § 280F(b)(1). Irs gov freefile com Section 168(k)(2)(D)(iii) permits a taxpayer to elect out of the § 168(k) additional first year depreciation deduction for any class of property. Irs gov freefile com Section 168(k)(4), as amended by the Act, permits a corporation to elect to increase the alternative minimum tax (“AMT”) credit limitation under § 53(c), instead of claiming the § 168(k) additional first year depreciation deduction for all eligible qualified property placed in service after December 31, 2010, that is round 2 extension property (as defined in § 168(k)(4)(I)(iv)). Irs gov freefile com Accordingly, this revenue procedure provides tables for passenger automobiles for which the § 168(k) additional first year depreciation deduction applies. Irs gov freefile com This revenue procedure also provides tables for passenger automobiles for which the § 168(k) additional first year depreciation deduction does not apply, either because taxpayer (1) purchased the passenger automobile used; (2) did not use the passenger automobile during 2012 more than 50 percent for business purposes; (3) elected out of the § 168(k) additional first year depreciation deduction pursuant to § 168(k)(2)(D)(iii); or (4) elected to increase the § 53 AMT credit limitation in lieu of claiming § 168(k) additional first year depreciation. Irs gov freefile com . Irs gov freefile com 04 Section 280F(c) requires a reduction in the deduction allowed to the lessee of a leased passenger automobile. Irs gov freefile com The reduction must be substantially equivalent to the limitations on the depreciation deductions imposed on owners of passenger automobiles. Irs gov freefile com Under § 1. Irs gov freefile com 280F-7(a) of the Income Tax Regulations, this reduction requires a lessee to include in gross income an amount determined by applying a formula to the amount obtained from a table. Irs gov freefile com One table applies to lessees of trucks and vans and another table applies to all other passenger automobiles. Irs gov freefile com Each table shows inclusion amounts for a range of fair market values for each taxable year after the passenger automobile is first leased. Irs gov freefile com SECTION 3. Irs gov freefile com SCOPE . Irs gov freefile com 01 The limitations on depreciation deductions in section 4. Irs gov freefile com 01(2) of this revenue procedure apply to passenger automobiles (other than leased passenger automobiles) that are placed in service by the taxpayer in calendar year 2012, and continue to apply for each taxable year that the passenger automobile remains in service. Irs gov freefile com . Irs gov freefile com 02 The tables in section 4. Irs gov freefile com 02 of this revenue procedure apply to leased passenger automobiles for which the lease term begins during calendar year 2012. Irs gov freefile com Lessees of these passenger automobiles must use these tables to determine the inclusion amount for each taxable year during which the passenger automobile is leased. Irs gov freefile com See Rev. Irs gov freefile com Proc. Irs gov freefile com 2007-30, 2007-1 C. Irs gov freefile com B. Irs gov freefile com 1104, for passenger automobiles first leased during calendar year 2007; Rev. Irs gov freefile com Proc. Irs gov freefile com 2008-22, 2008-1 C. Irs gov freefile com B. Irs gov freefile com 658, for passenger automobiles first leased during calendar year 2008; Rev. Irs gov freefile com Proc. Irs gov freefile com 2009-24, 2009-17 I. Irs gov freefile com R. Irs gov freefile com B. Irs gov freefile com 885, for passenger automobiles first leased during calendar year 2009; Rev. Irs gov freefile com Proc. Irs gov freefile com 2010-18, 2010-9 I. Irs gov freefile com R. Irs gov freefile com B. Irs gov freefile com 427, as amplified and modified by section 4. Irs gov freefile com 03 of Rev. Irs gov freefile com Proc. Irs gov freefile com 2011-21, 2011-12 I. Irs gov freefile com R. Irs gov freefile com B. Irs gov freefile com 560, for passenger automobiles first leased during calendar year 2010; and Rev. Irs gov freefile com Proc. Irs gov freefile com 2011-21, for passenger automobiles first leased during calendar year 2011. Irs gov freefile com SECTION 4. Irs gov freefile com APPLICATION . Irs gov freefile com 01 Limitations on Depreciation Deductions for Certain Automobiles. Irs gov freefile com (1) Amount of the inflation adjustment. Irs gov freefile com (a) Passenger automobiles (other than trucks or vans). Irs gov freefile com Under § 280F(d)(7)(B)(i), the automobile price inflation adjustment for any calendar year is the percentage (if any) by which the CPI automobile component for October of the preceding calendar year exceeds the CPI automobile component for October 1987. Irs gov freefile com Section 280F(d)(7)(B)(ii) defines the term “CPI automobile component” as the automobile component of the Consumer Price Index for all Urban Consumers published by the Department of Labor. Irs gov freefile com The new car component of the CPI was 115. Irs gov freefile com 2 for October 1987 and 143. Irs gov freefile com 419 for October 2011. Irs gov freefile com The October 2011 index exceeded the October 1987 index by 28. Irs gov freefile com 219. Irs gov freefile com Therefore, the automobile price inflation adjustment for 2012 for passenger automobiles (other than trucks and vans) is 24. Irs gov freefile com 5 percent (28. Irs gov freefile com 219/115. Irs gov freefile com 2 x 100%). Irs gov freefile com The dollar limitations in § 280F(a) are multiplied by a factor of 0. Irs gov freefile com 245, and the resulting increases, after rounding to the nearest $100, are added to the 1988 limitations to give the depreciation limitations applicable to passenger automobiles (other than trucks and vans) for calendar year 2012. Irs gov freefile com This adjustment applies to all passenger automobiles (other than trucks and vans) that are first placed in service in calendar year 2012. Irs gov freefile com (b) Trucks and vans. Irs gov freefile com To determine the dollar limitations for trucks and vans first placed in service during calendar year 2012, the Service uses the new truck component of the CPI instead of the new car component. Irs gov freefile com The new truck component of the CPI was 112. Irs gov freefile com 4 for October 1987 and 146. Irs gov freefile com 607 for October 2011. Irs gov freefile com The October 2011 index exceeded the October 1987 index by 34. Irs gov freefile com 207. Irs gov freefile com Therefore, the automobile price inflation adjustment for 2012 for trucks and vans is 30. Irs gov freefile com 43 percent (34. Irs gov freefile com 207/112. Irs gov freefile com 4 x 100%). Irs gov freefile com The dollar limitations in § 280F(a) are multiplied by a factor of 0. Irs gov freefile com 3043, and the resulting increases, after rounding to the nearest $100, are added to the 1988 limitations to give the depreciation limitations for trucks and vans. Irs gov freefile com This adjustment applies to all trucks and vans that are first placed in service in calendar year 2012. Irs gov freefile com (2) Amount of the limitation. Irs gov freefile com Tables 1 through 4 contain the dollar amount of the depreciation limitation for each taxable year for passenger automobiles a taxpayer places in service in calendar year 2012. Irs gov freefile com Use Table 1 for a passenger automobile (other than a truck or van), and Table 2 for a truck or van, placed in service in calendar year 2012 for which the § 168(k) additional first year depreciation deduction applies. Irs gov freefile com Use Table 3 for a passenger automobile (other than a truck or van), and Table 4 for a truck or van, placed in service in calendar year 2012 for which the § 168(k) additional first year depreciation deduction does not apply. Irs gov freefile com REV. Irs gov freefile com PROC. Irs gov freefile com 2012-23 TABLE 1 DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) PLACED IN SERVICE IN CALENDAR YEAR 2012 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES Tax Year Amount 1st Tax Year $11,160 2nd Tax Year $5,100 3rd Tax Year $3,050 Each Succeeding Year $1,875 REV. Irs gov freefile com PROC. Irs gov freefile com 2012-23 TABLE 2 DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS PLACED IN SERVICE IN CALENDAR YEAR 2012 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES Tax Year Amount 1st Tax Year $11,360 2nd Tax Year $5,300 3rd Tax Year $3,150 Each Succeeding Year $1,875 REV. Irs gov freefile com PROC. Irs gov freefile com 2012-23 TABLE 3 DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) PLACED IN SERVICE IN CALENDAR YEAR 2012 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION DOES NOT APPLY Tax Year Amount 1st Tax Year $3,160 2nd Tax Year $5,100 3rd Tax Year $3,050 Each Succeeding Year $1,875 REV. Irs gov freefile com PROC. Irs gov freefile com 2012-23 TABLE 4 DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS PLACED IN SERVICE IN CALENDAR YEAR 2012 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION DOES NOT APPLY Tax Year Amount 1st Tax Year $3,360 2nd Tax Year $5,300 3rd Tax Year $3,150 Each Succeeding Year $1,875 . Irs gov freefile com 02 Inclusions in Income of Lessees of Passenger Automobiles. Irs gov freefile com A taxpayer must follow the procedures in § 1. Irs gov freefile com 280F-7(a) for determining the inclusion amounts for passenger automobiles first leased in calendar year 2012. Irs gov freefile com In applying these procedures, lessees of passenger automobiles other than trucks and vans should use Table 5 of this revenue procedure, while lessees of trucks and vans should use Table 6 of this revenue procedure. Irs gov freefile com REV. Irs gov freefile com PROC. Irs gov freefile com 2012-23 TABLE 5 DOLLAR AMOUNTS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2012 Fair Market Value of Passenger Automobile Tax Year During Lease Over Not Over 1st 2nd 3rd 4th 5th & Later $18,500 $19,000 2 4 5 6 8 19,000 19,500 2 4 7 7 9 19,500 20,000 2 5 8 8 10 20,000 20,500 3 5 9 10 11 20,500 21,000 3 6 9 12 12 21,000 21,500 3 7 10 12 14 21,500 22,000 3 8 11 13 16 22,000 23,000 4 8 13 15 17 23,000 24,000 4 10 15 17 20 24,000 25,000 5 11 17 19 23 25,000 26,000 6 12 19 21 26 26,000 27,000 6 14 20 24 28 27,000 28,000 7 15 22 26 31 28,000 29,000 7 16 25 28 33 29,000 30,000 8 18 25 32 35 30,000 31,000 9 19 27 34 38 31,000 32,000 9 20 30 36 41 32,000 33,000 10 21 32 38 43 33,000 34,000 10 23 33 41 46 34,000 35,000 11 24 35 43 49 35,000 36,000 12 25 37 45 52 36,000 37,000 12 27 39 47 54 37,000 38,000 13 28 41 49 57 38,000 39,000 13 29 43 52 59 39,000 40,000 14 30 45 54 62 40,000 41,000 14 32 47 56 65 41,000 42,000 15 33 49 58 68 42,000 43,000 16 34 51 61 70 43,000 44,000 16 36 52 63 73 44,000 45,000 17 37 54 66 75 45,000 46,000 17 38 57 67 78 46,000 47,000 18 39 59 70 80 47,000 48,000 19 40 61 72 83 48,000 49,000 19 42 62 75 86 49,000 50,000 20 43 64 77 89 50,000 51,000 20 45 66 79 91 51,000 52,000 21 46 68 81 94 52,000 53,000 21 47 70 84 96 53,000 54,000 22 48 72 86 99 54,000 55,000 23 49 74 88 102 55,000 56,000 23 51 76 90 104 56,000 57,000 24 52 78 92 107 57,000 58,000 24 54 79 95 110 58,000 59,000 25 55 81 97 113 59,000 60,000 26 56 83 100 115 60,000 62,000 26 58 86 103 119 62,000 64,000 28 60 90 108 124 64,000 66,000 29 63 94 112 129 66,000 68,000 30 66 97 117 135 68,000 70,000 31 68 102 121 140 70,000 72,000 32 71 105 126 145 72,000 74,000 33 74 109 130 151 74,000 76,000 35 76 113 135 156 76,000 78,000 36 78 117 140 161 78,000 80,000 37 81 120 145 166 80,000 85,000 39 86 127 152 176 85,000 90,000 42 92 137 163 189 90,000 95,000 45 98 147 175 202 95,000 100,000 48 105 155 187 215 100,000 110,000 52 115 170 203 235 110,000 120,000 58 127 189 227 262 120,000 130,000 64 140 208 250 288 130,000 140,000 70 153 227 272 315 140,000 150,000 75 166 246 296 340 150,000 160,000 81 179 265 318 368 160,000 170,000 87 192 284 341 394 170,000 180,000 93 204 304 364 420 180,000 190,000 99 217 323 387 446 190,000 200,000 105 230 342 409 473 200,000 210,000 111 243 361 432 499 210,000 220,000 116 256 380 455 526 220,000 230,000 122 269 399 478 552 230,000 240,000 128 282 418 501 578 240,000 and up 134 294 437 524 605 REV. Irs gov freefile com PROC. Irs gov freefile com 2012-23 TABLE 6 DOLLAR AMOUNTS FOR TRUCKS AND VANS WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2012 Fair Market Value of Truck or Van Tax Year During Lease Over Not Over 1st 2nd 3rd 4th 5th & Later $19,000 $19,500 1 4 5 6 7 19,500 20,000 2 4 6 7 9 20,000 20,500 2 5 7 8 10 20,500 21,000 2 5 8 10 11 21,000 21,500 3 6 9 10 13 21,500 22,000 3 6 10 12 14 22,000 23,000 3 8 11 14 15 23,000 24,000 4 9 13 16 18 24,000 25,000 4 10 15 19 21 25,000 26,000 5 11 17 21 24 26,000 27,000 6 12 19 23 26 27,000 28,000 6 14 21 25 29 28,000 29,000 7 15 23 27 32 29,000 30,000 7 17 24 30 34 30,000 31,000 8 18 26 32 37 31,000 32,000 9 19 28 34 40 32,000 33,000 9 20 31 36 42 33,000 34,000 10 21 33 39 44 34,000 35,000 10 23 34 41 48 35,000 36,000 11 24 36 44 50 36,000 37,000 12 25 38 46 53 37,000 38,000 12 27 40 48 55 38,000 39,000 13 28 42 50 58 39,000 40,000 13 29 44 53 60 40,000 41,000 14 31 45 55 63 41,000 42,000 14 32 48 57 66 42,000 43,000 15 33 50 59 69 43,000 44,000 16 34 52 61 72 44,000 45,000 16 36 53 64 74 45,000 46,000 17 37 55 66 77 46,000 47,000 17 38 58 68 79 47,000 48,000 18 40 59 70 82 48,000 49,000 19 41 61 73 84 49,000 50,000 19 42 63 75 87 50,000 51,000 20 43 65 78 89 51,000 52,000 20 45 66 80 93 52,000 53,000 21 46 68 83 95 53,000 54,000 21 48 70 84 98 54,000 55,000 22 49 72 87 100 55,000 56,000 23 50 74 89 103 56,000 57,000 23 51 76 92 105 57,000 58,000 24 52 78 94 108 58,000 59,000 24 54 80 96 111 59,000 60,000 25 55 82 98 114 60,000 62,000 26 57 85 101 118 62,000 64,000 27 60 88 106 123 64,000 66,000 28 62 93 110 128 66,000 68,000 29 65 96 115 134 68,000 70,000 30 67 100 120 139 70,000 72,000 32 70 103 125 144 72,000 74,000 33 72 108 129 149 74,000 76,000 34 75 111 134 155 76,000 78,000 35 78 115 138 160 78,000 80,000 36 80 119 143 165 80,000 85,000 38 85 125 151 175 85,000 90,000 41 91 135 163 187 90,000 95,000 44 98 144 174 201 95,000 100,000 47 104 154 185 214 100,000 110,000 52 113 169 202 234 110,000 120,000 57 127 187 225 261 120,000 130,000 63 139 207 248 287 130,000 140,000 69 152 226 271 313 140,000 150,000 75 165 245 294 339 150,000 160,000 81 178 264 316 366 160,000 170,000 87 190 283 340 392 170,000 180,000 92 204 302 362 419 180,000 190,000 98 216 322 385 445 190,000 200,000 104 229 340 409 471 200,000 210,000 110 242 359 431 498 210,000 220,000 116 255 378 454 524 220,000 230,000 122 267 398 477 551 230,000 240,000 127 281 416 500 577 240,000 and up 133 294 435 523 603 SECTION 5. Irs gov freefile com EFFECTIVE DATE This revenue procedure applies to passenger automobiles that a taxpayer first places in service or first leases during calendar year 2012. Irs gov freefile com SECTION 6. Irs gov freefile com DRAFTING INFORMATION The principal author of this revenue procedure is Bernard P. Irs gov freefile com Harvey of the Office of Associate Chief Counsel (Income Tax & Accounting). Irs gov freefile com For further information regarding this revenue procedure, contact Mr. Irs gov freefile com Harvey at (202) 622-4930 (not a toll-free call). Irs gov freefile com Prev  Up  Next   Home   More Internal Revenue Bulletins