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 Income Tax Forms 2011

Where To Get 1040ez FormHttps Www Freefilefillableforms OrgState Tax Return 2013Irs Forms 2009Taxact 2006 Free Download2010 Income TaxFree State Tax Return FileAmend Federal Tax ReturnHow To Fill Out A 1040x Tax Amendment FormFile 1040 X1040a Tax Form 2011Free Federal Tax FilingFree E File Tax ReturnHow Can I File My 2011 Taxes Online For FreeIrs 2011 Tax Forms 1040ez2011 1040H&r Block Online Filing2010 1040 Tax FormFree 1040ez FilingHighest State TaxesTax Software FreeH & R Block TaxesIrs 1040ez Form 2011How To Amend 2010 Tax Return OnlineCheapest State Tax FilingWhere To File 2012 Federal Tax Return1040 Ez CalculatorForm 1040ez Mailing AddressIrstaxTurbotax 2010 DownloadFree H&r Block Tax SoftwareIrs Form 990 Ez 20101040 Ez FormsFree Tax ExtentionFile Free State Tax Return2011 Tax Return Form 1040H&rblockIrs 1040ez FormH&r Block Free Tax FormFree State Taxes Filing

Irs Income Tax Forms 2011

Irs income tax forms 2011 Publication 15-A - Main Content Table of Contents 1. Irs income tax forms 2011 Who Are Employees?Independent Contractors Common-Law Employees Statutory Employees Statutory Nonemployees Misclassification of Employees 2. Irs income tax forms 2011 Employee or Independent Contractor?Common-Law Rules Industry Examples 3. Irs income tax forms 2011 Employees of Exempt OrganizationsSocial security and Medicare taxes. Irs income tax forms 2011 FUTA tax. Irs income tax forms 2011 4. Irs income tax forms 2011 Religious Exemptions and Special Rules for MinistersForm W-2. Irs income tax forms 2011 Self-employed. Irs income tax forms 2011 Employees. Irs income tax forms 2011 5. Irs income tax forms 2011 Wages and Other CompensationRelocating for Temporary Work Assignments Employee Achievement Awards Scholarship and Fellowship Payments Outplacement Services Withholding for Idle Time Back Pay Supplemental Unemployment Benefits Golden Parachute Payments Interest-Free and Below-Market-Interest-Rate Loans Leave Sharing Plans Nonqualified Deferred Compensation Plans Tax-Sheltered Annuities Contributions to a Simplified Employee Pension (SEP) SIMPLE Retirement Plans 6. Irs income tax forms 2011 Sick Pay ReportingSick Pay Payments That Are Not Sick Pay Sick Pay Plan Third-Party Payers of Sick Pay Social Security, Medicare, and FUTA Taxes on Sick Pay Income Tax Withholding on Sick Pay Depositing and Reporting Example of Figuring and Reporting Sick Pay 7. Irs income tax forms 2011 Special Rules for Paying TaxesCommon Paymaster Agents Reporting Agents Employee's Portion of Taxes Paid by Employer International Social Security Agreements 8. Irs income tax forms 2011 Pensions and AnnuitiesFederal Income Tax Withholding 9. Irs income tax forms 2011 Alternative Methods for Figuring WithholdingTerm of continuous employment. Irs income tax forms 2011 Formula Tables for Percentage Method Withholding (for Automated Payroll Systems) Wage Bracket Percentage Method Tables (for Automated Payroll Systems) Combined Federal Income Tax, Employee Social Security Tax, and Employee Medicare Tax Withholding Tables 10. Irs income tax forms 2011 Tables for Withholding on Distributions of Indian Gaming Profits to Tribal MembersWithholding Tables How To Get Tax Help 1. Irs income tax forms 2011 Who Are Employees? Before you can know how to treat payments that you make to workers for services, you must first know the business relationship that exists between you and the person performing the services. Irs income tax forms 2011 The person performing the services may be: An independent contractor, A common-law employee, A statutory employee, or A statutory nonemployee. Irs income tax forms 2011 This discussion explains these four categories. Irs income tax forms 2011 A later discussion, Employee or Independent Contractor in section 2, points out the differences between an independent contractor and an employee and gives examples from various types of occupations. Irs income tax forms 2011 If an individual who works for you is not an employee under the common-law rules (see section 2), you generally do not have to withhold federal income tax from that individual's pay. Irs income tax forms 2011 However, in some cases you may be required to withhold under the backup withholding requirements on these payments. Irs income tax forms 2011 See Publication 15 (Circular E) for information on backup withholding. Irs income tax forms 2011 Independent Contractors People such as doctors, veterinarians, and auctioneers who follow an independent trade, business, or profession in which they offer their services to the public, are generally not employees. Irs income tax forms 2011 However, whether such people are employees or independent contractors depends on the facts in each case. Irs income tax forms 2011 The general rule is that an individual is an independent contractor if you, the person for whom the services are performed, have the right to control or direct only the result of the work and not the means and methods of accomplishing the result. Irs income tax forms 2011 Common-Law Employees Under common-law rules, anyone who performs services for you is generally your employee if you have the right to control what will be done and how it will be done. Irs income tax forms 2011 This is so even when you give the employee freedom of action. Irs income tax forms 2011 What matters is that you have the right to control the details of how the services are performed. Irs income tax forms 2011 For a discussion of facts that indicate whether an individual providing services is an independent contractor or employee, see section 2. Irs income tax forms 2011 If you have an employer-employee relationship, it makes no difference how it is labeled. Irs income tax forms 2011 The substance of the relationship, not the label, governs the worker's status. Irs income tax forms 2011 It does not matter whether the individual is employed full time or part time. Irs income tax forms 2011 For employment tax purposes, no distinction is made between classes of employees. Irs income tax forms 2011 Superintendents, managers, and other supervisory personnel are all employees. Irs income tax forms 2011 An officer of a corporation is generally an employee; however, an officer who performs no services or only minor services, and neither receives nor is entitled to receive any pay, is not considered an employee. Irs income tax forms 2011 A director of a corporation is not an employee with respect to services performed as a director. Irs income tax forms 2011 You generally have to withhold and pay income, social security, and Medicare taxes on wages that you pay to common-law employees. Irs income tax forms 2011 However, the wages of certain employees may be exempt from one or more of these taxes. Irs income tax forms 2011 See Employees of Exempt Organizations (section 3) and Religious Exemptions and Special Rules for Ministers (section 4). Irs income tax forms 2011 Leased employees. Irs income tax forms 2011   Under certain circumstances, a firm that furnishes workers to other firms is the employer of those workers for employment tax purposes. Irs income tax forms 2011 For example, a temporary staffing service may provide the services of secretaries, nurses, and other similarly trained workers to its clients on a temporary basis. Irs income tax forms 2011   The staffing service enters into contracts with the clients under which the clients specify the services to be provided and a fee is paid to the staffing service for each individual furnished. Irs income tax forms 2011 The staffing service has the right to control and direct the worker's services for the client, including the right to discharge or reassign the worker. Irs income tax forms 2011 The staffing service hires the workers, controls the payment of their wages, provides them with unemployment insurance and other benefits, and is the employer for employment tax purposes. Irs income tax forms 2011 For information on employee leasing as it relates to pension plan qualification requirements, see Leased employee in Publication 560, Retirement Plans for Small Business. Irs income tax forms 2011 Additional information. Irs income tax forms 2011   For more information about the treatment of special types of employment, the treatment of special types of payments, and similar subjects, see Publication 15 (Circular E) or Publication 51 (Circular A), Agricultural Employer's Tax Guide. Irs income tax forms 2011 Statutory Employees If workers are independent contractors under the common law rules, such workers may nevertheless be treated as employees by statute, (also known as “statutory employees”) for certain employment tax purposes. Irs income tax forms 2011 This would happen if they fall within any one of the following four categories and meet the three conditions described next under Social security and Medicare taxes . Irs income tax forms 2011 A driver who distributes beverages (other than milk) or meat, vegetable, fruit, or bakery products; or who picks up and delivers laundry or dry cleaning, if the driver is your agent or is paid on commission. Irs income tax forms 2011 A full-time life insurance sales agent whose principal business activity is selling life insurance or annuity contracts, or both, primarily for one life insurance company. Irs income tax forms 2011 An individual who works at home on materials or goods that you supply and that must be returned to you or to a person you name, if you also furnish specifications for the work to be done. Irs income tax forms 2011 A full-time traveling or city salesperson who works on your behalf and turns in orders to you from wholesalers, retailers, contractors, or operators of hotels, restaurants, or other similar establishments. Irs income tax forms 2011 The goods sold must be merchandise for resale or supplies for use in the buyer's business operation. Irs income tax forms 2011 The work performed for you must be the salesperson's principal business activity. Irs income tax forms 2011 See Salesperson in section 2. Irs income tax forms 2011 Social security and Medicare taxes. Irs income tax forms 2011   You must withhold social security and Medicare taxes from the wages of statutory employees if all three of the following conditions apply. Irs income tax forms 2011 The service contract states or implies that substantially all the services are to be performed personally by them. Irs income tax forms 2011 They do not have a substantial investment in the equipment and property used to perform the services (other than an investment in facilities for transportation, such as a car or truck). Irs income tax forms 2011 The services are performed on a continuing basis for the same payer. Irs income tax forms 2011 Federal unemployment (FUTA) tax. Irs income tax forms 2011   For FUTA tax (the unemployment tax paid under the Federal Unemployment Tax Act), the term “employee” means the same as it does for social security and Medicare taxes, except that it does not include statutory employees defined above in categories 2 and 3. Irs income tax forms 2011 Any individual who is a statutory employee described above under category 1 or 4 is also an employee for FUTA tax purposes and subject to FUTA tax. Irs income tax forms 2011 Income tax. Irs income tax forms 2011   Do not withhold federal income tax from the wages of statutory employees. Irs income tax forms 2011 Reporting payments to statutory employees. Irs income tax forms 2011   Furnish Form W-2 to a statutory employee, and check “Statutory employee” in box 13. Irs income tax forms 2011 Show your payments to the employee as “other compensation” in box 1. Irs income tax forms 2011 Also, show social security wages in box 3, social security tax withheld in box 4, Medicare wages in box 5, and Medicare tax withheld in box 6. Irs income tax forms 2011 The statutory employee can deduct his or her trade or business expenses from the payments shown on Form W-2. Irs income tax forms 2011 He or she reports earnings as a statutory employee on line 1 of Schedule C (Form 1040), Profit or Loss From Business, or Schedule C-EZ (Form 1040), Net Profit From Business. Irs income tax forms 2011 A statutory employee's business expenses are deductible on Schedule C (Form 1040) or C-EZ (Form 1040) and are not subject to the reduction by 2% of his or her adjusted gross income that applies to common-law employees. Irs income tax forms 2011 H-2A agricultural workers. Irs income tax forms 2011   On Form W-2, do not check box 13 (Statutory employee), as H-2A workers are not statutory employees. Irs income tax forms 2011 Statutory Nonemployees There are three categories of statutory nonemployees: direct sellers, licensed real estate agents, and certain companion sitters. Irs income tax forms 2011 Direct sellers and licensed real estate agents are treated as self-employed for all federal tax purposes, including income and employment taxes, if: Substantially all payments for their services as direct sellers or real estate agents are directly related to sales or other output, rather than to the number of hours worked, and Their services are performed under a written contract providing that they will not be treated as employees for federal tax purposes. Irs income tax forms 2011 Direct sellers. Irs income tax forms 2011   Direct sellers include persons falling within any of the following three groups. Irs income tax forms 2011 Persons engaged in selling (or soliciting the sale of) consumer products in the home or place of business other than in a permanent retail establishment. Irs income tax forms 2011 Persons engaged in selling (or soliciting the sale of) consumer products to any buyer on a buy-sell basis, a deposit-commission basis, or any similar basis prescribed by regulations, for resale in the home or at a place of business other than in a permanent retail establishment. Irs income tax forms 2011 Persons engaged in the trade or business of delivering or distributing newspapers or shopping news (including any services directly related to such delivery or distribution). Irs income tax forms 2011   Direct selling includes activities of individuals who attempt to increase direct sales activities of their direct sellers and who earn income based on the productivity of their direct sellers. Irs income tax forms 2011 Such activities include providing motivation and encouragement; imparting skills, knowledge, or experience; and recruiting. Irs income tax forms 2011 Licensed real estate agents. Irs income tax forms 2011   This category includes individuals engaged in appraisal activities for real estate sales if they earn income based on sales or other output. Irs income tax forms 2011 Companion sitters. Irs income tax forms 2011   Companion sitters are individuals who furnish personal attendance, companionship, or household care services to children or to individuals who are elderly or disabled. Irs income tax forms 2011 A person engaged in the trade or business of putting the sitters in touch with individuals who wish to employ them (that is, a companion sitting placement service) will not be treated as the employer of the sitters if that person does not receive or pay the salary or wages of the sitters and is compensated by the sitters or the persons who employ them on a fee basis. Irs income tax forms 2011 Companion sitters who are not employees of a companion sitting placement service are generally treated as self-employed for all federal tax purposes. Irs income tax forms 2011 Misclassification of Employees Consequences of treating an employee as an independent contractor. Irs income tax forms 2011   If you classify an employee as an independent contractor and you have no reasonable basis for doing so, you are liable for employment taxes for that worker and the relief provision, discussed next, will not apply. Irs income tax forms 2011 See section 2 in Publication 15 (Circular E) for more information. Irs income tax forms 2011 Relief provision. Irs income tax forms 2011   If you have a reasonable basis for not treating a worker as an employee, you may be relieved from having to pay employment taxes for that worker. Irs income tax forms 2011 To get this relief, you must file all required federal information returns on a basis consistent with your treatment of the worker. Irs income tax forms 2011 You (or your predecessor) must not have treated any worker holding a substantially similar position as an employee for any periods beginning after 1977. Irs income tax forms 2011 Technical service specialists. Irs income tax forms 2011   This relief provision does not apply for a technical services specialist you provide to another business under an arrangement between you and the other business. Irs income tax forms 2011 A technical service specialist is an engineer, designer, drafter, computer programmer, systems analyst, or other similarly skilled worker engaged in a similar line of work. Irs income tax forms 2011   This limit on the application of the rule does not affect the determination of whether such workers are employees under the common-law rules. Irs income tax forms 2011 The common-law rules control whether the specialist is treated as an employee or an independent contractor. Irs income tax forms 2011 However, if you directly contract with a technical service specialist to provide services for your business and not for another business, you may still be entitled to the relief provision. Irs income tax forms 2011 Test proctors and room supervisors. Irs income tax forms 2011   The consistent treatment requirement does not apply to services performed after December 31, 2006, by an individual as a test proctor or room supervisor assisting in the administration of college entrance or placement examinations if the individual: Is performing the services for a section 501(c) organization exempt from tax under section 501(a) of the code, and Is not otherwise treated as an employee of the organization for employment taxes. Irs income tax forms 2011 Voluntary Classification Settlement Program (VCSP). Irs income tax forms 2011   Employers who are currently treating their workers (or a class or group of workers) as independent contractors or other nonemployees and want to voluntarily reclassify their workers as employees for future tax periods may be eligible to participate in the VCSP if certain requirements are met. Irs income tax forms 2011 To apply, use Form 8952, Application for Voluntary Classification Settlement Program (VCSP). Irs income tax forms 2011 For more information, visit IRS. Irs income tax forms 2011 gov and enter “VCSP” in the search box. Irs income tax forms 2011 2. Irs income tax forms 2011 Employee or Independent Contractor? An employer must generally withhold federal income taxes, withhold and pay over social security and Medicare taxes, and pay unemployment tax on wages paid to an employee. Irs income tax forms 2011 An employer does not generally have to withhold or pay over any federal taxes on payments to independent contractors. Irs income tax forms 2011 Common-Law Rules To determine whether an individual is an employee or an independent contractor under the common law, the relationship of the worker and the business must be examined. Irs income tax forms 2011 In any employee-independent contractor determination, all information that provides evidence of the degree of control and the degree of independence must be considered. Irs income tax forms 2011 Facts that provide evidence of the degree of control and independence fall into three categories: behavioral control, financial control, and the type of relationship of the parties. Irs income tax forms 2011 These facts are discussed next. Irs income tax forms 2011 Behavioral control. Irs income tax forms 2011   Facts that show whether the business has a right to direct and control how the worker does the task for which the worker is hired include the type and degree of: Instructions that the business gives to the worker. Irs income tax forms 2011   An employee is generally subject to the business' instructions about when, where, and how to work. Irs income tax forms 2011 All of the following are examples of types of instructions about how to do work. Irs income tax forms 2011 When and where to do the work. Irs income tax forms 2011 What tools or equipment to use. Irs income tax forms 2011 What workers to hire or to assist with the work. Irs income tax forms 2011 Where to purchase supplies and services. Irs income tax forms 2011 What work must be performed by a specified  individual. Irs income tax forms 2011 What order or sequence to follow. Irs income tax forms 2011   The amount of instruction needed varies among different jobs. Irs income tax forms 2011 Even if no instructions are given, sufficient behavioral control may exist if the employer has the right to control how the work results are achieved. Irs income tax forms 2011 A business may lack the knowledge to instruct some highly specialized professionals; in other cases, the task may require little or no instruction. Irs income tax forms 2011 The key consideration is whether the business has retained the right to control the details of a worker's performance or instead has given up that right. Irs income tax forms 2011 Training that the business gives to the worker. Irs income tax forms 2011   An employee may be trained to perform services in a particular manner. Irs income tax forms 2011 Independent contractors ordinarily use their own methods. Irs income tax forms 2011 Financial control. Irs income tax forms 2011   Facts that show whether the business has a right to control the business aspects of the worker's job include: The extent to which the worker has unreimbursed business expenses. Irs income tax forms 2011   Independent contractors are more likely to have unreimbursed expenses than are employees. Irs income tax forms 2011 Fixed ongoing costs that are incurred regardless of whether work is currently being performed are especially important. Irs income tax forms 2011 However, employees may also incur unreimbursed expenses in connection with the services that they perform for their employer. Irs income tax forms 2011 The extent of the worker's investment. Irs income tax forms 2011   An independent contractor often has a significant investment in the facilities or tools he or she uses in performing services for someone else. Irs income tax forms 2011 However, a significant investment is not necessary for independent contractor status. Irs income tax forms 2011 The extent to which the worker makes his or her services available to the relevant market. Irs income tax forms 2011   An independent contractor is generally free to seek out business opportunities. Irs income tax forms 2011 Independent contractors often advertise, maintain a visible business location, and are available to work in the relevant market. Irs income tax forms 2011 How the business pays the worker. Irs income tax forms 2011   An employee is generally guaranteed a regular wage amount for an hourly, weekly, or other period of time. Irs income tax forms 2011 This usually indicates that a worker is an employee, even when the wage or salary is supplemented by a commission. Irs income tax forms 2011 An independent contractor is often paid a flat fee or on a time and materials basis for the job. Irs income tax forms 2011 However, it is common in some professions, such as law, to pay independent contractors hourly. Irs income tax forms 2011 The extent to which the worker can realize a profit or loss. Irs income tax forms 2011   An independent contractor can make a profit or loss. Irs income tax forms 2011 Type of relationship. Irs income tax forms 2011   Facts that show the parties' type of relationship include: Written contracts describing the relationship the parties intended to create. Irs income tax forms 2011 Whether or not the business provides the worker with employee-type benefits, such as insurance, a pension plan, vacation pay, or sick pay. Irs income tax forms 2011 The permanency of the relationship. Irs income tax forms 2011 If you engage a worker with the expectation that the relationship will continue indefinitely, rather than for a specific project or period, this is generally considered evidence that your intent was to create an employer-employee relationship. Irs income tax forms 2011 The extent to which services performed by the worker are a key aspect of the regular business of the company. Irs income tax forms 2011 If a worker provides services that are a key aspect of your regular business activity, it is more likely that you will have the right to direct and control his or her activities. Irs income tax forms 2011 For example, if a law firm hires an attorney, it is likely that it will present the attorney's work as its own and would have the right to control or direct that work. Irs income tax forms 2011 This would indicate an employer-employee relationship. Irs income tax forms 2011 IRS help. Irs income tax forms 2011   If you want the IRS to determine whether or not a worker is an employee, file Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding, with the IRS. Irs income tax forms 2011 Industry Examples The following examples may help you properly classify your workers. Irs income tax forms 2011 Building and Construction Industry Example 1. Irs income tax forms 2011 Jerry Jones has an agreement with Wilma White to supervise the remodeling of her house. Irs income tax forms 2011 She did not advance funds to help him carry on the work. Irs income tax forms 2011 She makes direct payments to the suppliers for all necessary materials. Irs income tax forms 2011 She carries liability and workers' compensation insurance covering Jerry and others that he engaged to assist him. Irs income tax forms 2011 She pays them an hourly rate and exercises almost constant supervision over the work. Irs income tax forms 2011 Jerry is not free to transfer his assistants to other jobs. Irs income tax forms 2011 He may not work on other jobs while working for Wilma. Irs income tax forms 2011 He assumes no responsibility to complete the work and will incur no contractual liability if he fails to do so. Irs income tax forms 2011 He and his assistants perform personal services for hourly wages. Irs income tax forms 2011 Jerry Jones and his assistants are employees of Wilma White. Irs income tax forms 2011 Example 2. Irs income tax forms 2011 Milton Manning, an experienced tile setter, orally agreed with a corporation to perform full-time services at construction sites. Irs income tax forms 2011 He uses his own tools and performs services in the order designated by the corporation and according to its specifications. Irs income tax forms 2011 The corporation supplies all materials, makes frequent inspections of his work, pays him on a piecework basis, and carries workers' compensation insurance on him. Irs income tax forms 2011 He does not have a place of business or hold himself out to perform similar services for others. Irs income tax forms 2011 Either party can end the services at any time. Irs income tax forms 2011 Milton Manning is an employee of the corporation. Irs income tax forms 2011 Example 3. Irs income tax forms 2011 Wallace Black agreed with the Sawdust Co. Irs income tax forms 2011 to supply the construction labor for a group of houses. Irs income tax forms 2011 The company agreed to pay all construction costs. Irs income tax forms 2011 However, he supplies all the tools and equipment. Irs income tax forms 2011 He performs personal services as a carpenter and mechanic for an hourly wage. Irs income tax forms 2011 He also acts as superintendent and foreman and engages other individuals to assist him. Irs income tax forms 2011 The company has the right to select, approve, or discharge any helper. Irs income tax forms 2011 A company representative makes frequent inspections of the construction site. Irs income tax forms 2011 When a house is finished, Wallace is paid a certain percentage of its costs. Irs income tax forms 2011 He is not responsible for faults, defects of construction, or wasteful operation. Irs income tax forms 2011 At the end of each week, he presents the company with a statement of the amount that he has spent, including the payroll. Irs income tax forms 2011 The company gives him a check for that amount from which he pays the assistants, although he is not personally liable for their wages. Irs income tax forms 2011 Wallace Black and his assistants are employees of the Sawdust Co. Irs income tax forms 2011 Example 4. Irs income tax forms 2011 Bill Plum contracted with Elm Corporation to complete the roofing on a housing complex. Irs income tax forms 2011 A signed contract established a flat amount for the services rendered by Bill Plum. Irs income tax forms 2011 Bill is a licensed roofer and carries workers' compensation and liability insurance under the business name, Plum Roofing. Irs income tax forms 2011 He hires his own roofers who are treated as employees for federal employment tax purposes. Irs income tax forms 2011 If there is a problem with the roofing work, Plum Roofing is responsible for paying for any repairs. Irs income tax forms 2011 Bill Plum, doing business as Plum Roofing, is an independent contractor. Irs income tax forms 2011 Example 5. Irs income tax forms 2011 Vera Elm, an electrician, submitted a job estimate to a housing complex for electrical work at $16 per hour for 400 hours. Irs income tax forms 2011 She is to receive $1,280 every 2 weeks for the next 10 weeks. Irs income tax forms 2011 This is not considered payment by the hour. Irs income tax forms 2011 Even if she works more or less than 400 hours to complete the work, Vera Elm will receive $6,400. Irs income tax forms 2011 She also performs additional electrical installations under contracts with other companies, that she obtained through advertisements. Irs income tax forms 2011 Vera is an independent contractor. Irs income tax forms 2011 Trucking Industry Example. Irs income tax forms 2011 Rose Trucking contracts to deliver material for Forest, Inc. Irs income tax forms 2011 , at $140 per ton. Irs income tax forms 2011 Rose Trucking is not paid for any articles that are not delivered. Irs income tax forms 2011 At times, Jan Rose, who operates as Rose Trucking, may also lease another truck and engage a driver to complete the contract. Irs income tax forms 2011 All operating expenses, including insurance coverage, are paid by Jan Rose. Irs income tax forms 2011 All equipment is owned or rented by Jan and she is responsible for all maintenance. Irs income tax forms 2011 None of the drivers are provided by Forest, Inc. Irs income tax forms 2011 Jan Rose, operating as Rose Trucking, is an independent contractor. Irs income tax forms 2011 Computer Industry Example. Irs income tax forms 2011 Steve Smith, a computer programmer, is laid off when Megabyte, Inc. Irs income tax forms 2011 , downsizes. Irs income tax forms 2011 Megabyte agrees to pay Steve a flat amount to complete a one-time project to create a certain product. Irs income tax forms 2011 It is not clear how long that it will take to complete the project, and Steve is not guaranteed any minimum payment for the hours spent on the program. Irs income tax forms 2011 Megabyte provides Steve with no instructions beyond the specifications for the product itself. Irs income tax forms 2011 Steve and Megabyte have a written contract, which provides that Steve is considered to be an independent contractor, is required to pay federal and state taxes, and receives no benefits from Megabyte. Irs income tax forms 2011 Megabyte will file Form 1099-MISC, Miscellaneous Income, to report the amount paid to Steve. Irs income tax forms 2011 Steve works at home and is not expected or allowed to attend meetings of the software development group. Irs income tax forms 2011 Steve is an independent contractor. Irs income tax forms 2011 Automobile Industry Example 1. Irs income tax forms 2011 Donna Lee is a salesperson employed on a full-time basis by Bob Blue, an auto dealer. Irs income tax forms 2011 She works six days a week and is on duty in Bob's showroom on certain assigned days and times. Irs income tax forms 2011 She appraises trade-ins, but her appraisals are subject to the sales manager's approval. Irs income tax forms 2011 Lists of prospective customers belong to the dealer. Irs income tax forms 2011 She is required to develop leads and report results to the sales manager. Irs income tax forms 2011 Because of her experience, she requires only minimal assistance in closing and financing sales and in other phases of her work. Irs income tax forms 2011 She is paid a commission and is eligible for prizes and bonuses offered by Bob. Irs income tax forms 2011 Bob also pays the cost of health insurance and group-term life insurance for Donna. Irs income tax forms 2011 Donna is an employee of Bob Blue. Irs income tax forms 2011 Example 2. Irs income tax forms 2011 Sam Sparks performs auto repair services in the repair department of an auto sales company. Irs income tax forms 2011 He works regular hours and is paid on a percentage basis. Irs income tax forms 2011 He has no investment in the repair department. Irs income tax forms 2011 The sales company supplies all facilities, repair parts, and supplies; issues instructions on the amounts to be charged, parts to be used, and the time for completion of each job; and checks all estimates and repair orders. Irs income tax forms 2011 Sam is an employee of the sales company. Irs income tax forms 2011 Example 3. Irs income tax forms 2011 An auto sales agency furnishes space for Helen Bach to perform auto repair services. Irs income tax forms 2011 She provides her own tools, equipment, and supplies. Irs income tax forms 2011 She seeks out business from insurance adjusters and other individuals and does all of the body and paint work that comes to the agency. Irs income tax forms 2011 She hires and discharges her own helpers, determines her own and her helpers' working hours, quotes prices for repair work, makes all necessary adjustments, assumes all losses from uncollectible accounts, and receives, as compensation for her services, a large percentage of the gross collections from the auto repair shop. Irs income tax forms 2011 Helen is an independent contractor and the helpers are her employees. Irs income tax forms 2011 Attorney Example. Irs income tax forms 2011 Donna Yuma is a sole practitioner who rents office space and pays for the following items: telephone, computer, on-line legal research linkup, fax machine, and photocopier. Irs income tax forms 2011 Donna buys office supplies and pays bar dues and membership dues for three other professional organizations. Irs income tax forms 2011 Donna has a part-time receptionist who also does the bookkeeping. Irs income tax forms 2011 She pays the receptionist, withholds and pays federal and state employment taxes, and files a Form W-2 each year. Irs income tax forms 2011 For the past 2 years, Donna has had only three clients, corporations with which there have been long-standing relationships. Irs income tax forms 2011 Donna charges the corporations an hourly rate for her services, sending monthly bills detailing the work performed for the prior month. Irs income tax forms 2011 The bills include charges for long distance calls, on-line research time, fax charges, photocopies, postage, and travel, costs for which the corporations have agreed to reimburse her. Irs income tax forms 2011 Donna is an independent contractor. Irs income tax forms 2011 Taxicab Driver Example. Irs income tax forms 2011 Tom Spruce rents a cab from Taft Cab Co. Irs income tax forms 2011 for $150 per day. Irs income tax forms 2011 He pays the costs of maintaining and operating the cab. Irs income tax forms 2011 Tom Spruce keeps all fares that he receives from customers. Irs income tax forms 2011 Although he receives the benefit of Taft's two-way radio communication equipment, dispatcher, and advertising, these items benefit both Taft and Tom Spruce. Irs income tax forms 2011 Tom Spruce is an independent contractor. Irs income tax forms 2011 Salesperson To determine whether salespersons are employees under the usual common-law rules, you must evaluate each individual case. Irs income tax forms 2011 If a salesperson who works for you does not meet the tests for a common-law employee, discussed earlier in this section, you do not have to withhold federal income tax from his or her pay (see Statutory Employees in section 1). Irs income tax forms 2011 However, even if a salesperson is not an employee under the usual common-law rules for income tax withholding, his or her pay may still be subject to social security, Medicare, and FUTA taxes as a statutory employee. Irs income tax forms 2011 To determine whether a salesperson is an employee for social security, Medicare, and FUTA tax purposes, the salesperson must meet all eight elements of the statutory employee test. Irs income tax forms 2011 A salesperson is a statutory employee for social security, Medicare, and FUTA tax purposes if he or she: Works full time for one person or company except, possibly, for sideline sales activities on behalf of some other person, Sells on behalf of, and turns his or her orders over to, the person or company for which he or she works, Sells to wholesalers, retailers, contractors, or operators of hotels, restaurants, or similar establishments, Sells merchandise for resale, or supplies for use in the customer's business, Agrees to do substantially all of this work personally, Has no substantial investment in the facilities used to do the work, other than in facilities for transportation, Maintains a continuing relationship with the person or company for which he or she works, and Is not an employee under common-law rules. Irs income tax forms 2011 3. Irs income tax forms 2011 Employees of Exempt Organizations Many nonprofit organizations are exempt from federal income tax. Irs income tax forms 2011 Although they do not have to pay federal income tax themselves, they must still withhold federal income tax from the pay of their employees. Irs income tax forms 2011 However, there are special social security, Medicare, and FUTA tax rules that apply to the wages that they pay their employees. Irs income tax forms 2011 Section 501(c)(3) organizations. Irs income tax forms 2011   Nonprofit organizations that are exempt from federal income tax under section 501(c)(3) of the Internal Revenue Code include any community chest, fund, or foundation organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary or educational purposes, fostering national or international amateur sports competition, or for the prevention of cruelty to children or animals. Irs income tax forms 2011 These organizations are usually corporations and are exempt from federal income tax under section 501(a). Irs income tax forms 2011 Social security and Medicare taxes. Irs income tax forms 2011   Wages paid to employees of section 501(c)(3) organizations are subject to social security and Medicare taxes unless one of the following situations applies. Irs income tax forms 2011 The organization pays an employee less than $100 in a calendar year. Irs income tax forms 2011 The organization is a church or church-controlled organization opposed for religious reasons to the payment of social security and Medicare taxes and has filed Form 8274, Certification by Churches and Qualified Church-Controlled Organizations Electing Exemption From Employer Social Security and Medicare Taxes, to elect exemption from social security and Medicare taxes. Irs income tax forms 2011 The organization must have filed for exemption before the first date on which a quarterly employment tax return (Form 941) or annual employment tax return (Form 944) would otherwise be due. Irs income tax forms 2011   An employee of a church or church-controlled organization that is exempt from social security and Medicare taxes must pay self-employment tax if the employee is paid $108. Irs income tax forms 2011 28 or more in a year. Irs income tax forms 2011 However, an employee who is a member of a qualified religious sect can apply for an exemption from the self-employment tax by filing Form 4029, Application for Exemption From Social Security and Medicare Taxes and Waiver of Benefits. Irs income tax forms 2011 See Members of recognized religious sects opposed to insurance in section 4. Irs income tax forms 2011 FUTA tax. Irs income tax forms 2011   An organization that is exempt from federal income tax under section 501(c)(3) of the Internal Revenue Code is also exempt from FUTA tax. Irs income tax forms 2011 This exemption cannot be waived. Irs income tax forms 2011 Do not file Form 940 to report wages paid by these organizations or pay the tax. Irs income tax forms 2011 Note. Irs income tax forms 2011 An organization wholly owned by a state or its political subdivision should contact the appropriate state official for information about reporting and getting social security and Medicare coverage for its employees. Irs income tax forms 2011 Other than section 501(c)(3) organizations. Irs income tax forms 2011   Nonprofit organizations that are not section 501(c)(3) organizations may also be exempt from federal income tax under section 501(a) or section 521. Irs income tax forms 2011 However, these organizations are not exempt from withholding federal income, social security, or Medicare tax from their employees' pay, or from paying FUTA tax. Irs income tax forms 2011 Two special rules for social security, Medicare, and FUTA taxes apply. Irs income tax forms 2011 If an employee is paid less than $100 during a calendar year, his or her wages are not subject to social security and Medicare taxes. Irs income tax forms 2011 If an employee is paid less than $50 in a calendar quarter, his or her wages are not subject to FUTA tax for the quarter. Irs income tax forms 2011 The above rules do not apply to employees who work for pension plans and other similar organizations described in section 401(a). Irs income tax forms 2011 4. Irs income tax forms 2011 Religious Exemptions and Special Rules for Ministers Special rules apply to the treatment of ministers for social security and Medicare tax purposes. Irs income tax forms 2011 An exemption from social security and Medicare taxes is available for ministers and certain other religious workers and members of certain recognized religious sects. Irs income tax forms 2011 For more information on getting an exemption, see Publication 517, Social Security and Other Information for Members of the Clergy and Religious Workers. Irs income tax forms 2011 Ministers. Irs income tax forms 2011   Ministers are individuals who are duly ordained, commissioned, or licensed by a religious body constituting a church or church denomination. Irs income tax forms 2011 They are given the authority to conduct religious worship, perform sacerdotal functions, and administer ordinances and sacraments according to the prescribed tenets and practices of that religious organization. Irs income tax forms 2011   Ministers are employees if they perform services in the exercise of ministry and are subject to your will and control. Irs income tax forms 2011 The common-law rules discussed in section 1 and section 2 should be applied to determine whether a minister is your employee or is self-employed. Irs income tax forms 2011 Whether the minister is an employee or self-employed, the earnings of a minister are not subject to federal income, social security, and Medicare tax withholding. Irs income tax forms 2011 However, even if the minister is a common law employee, the earnings as reported on the minister's Form 1040 are subject to self-employment tax and federal income tax. Irs income tax forms 2011 You do not withhold these taxes from wages earned by a minister, but if the minister is your employee, you may agree with the minister to voluntarily withhold tax to cover the minister's liability for self-employment tax and federal income tax. Irs income tax forms 2011 For more information, see Publication 517. Irs income tax forms 2011 Form W-2. Irs income tax forms 2011   If your minister is an employee, report all taxable compensation as wages in box 1 on Form W-2. Irs income tax forms 2011 Include in this amount expense allowances or reimbursements paid under a nonaccountable plan, discussed in section 5 of Publication 15 (Circular E). Irs income tax forms 2011 Do not include a parsonage allowance (excludable housing allowance) in this amount. Irs income tax forms 2011 You may report a designated parsonage or rental allowance (housing allowance) and a utilities allowance, or the rental value of housing provided in a separate statement or in box 14 on Form W-2. Irs income tax forms 2011 Do not show on Form W-2, Form 941, or Form 944 any amount as social security or Medicare wages, or any withholding for social security or Medicare taxes. Irs income tax forms 2011 If you withheld federal income tax from the minister under a voluntary agreement, this amount should be shown in box 2 on Form W-2 as federal income tax withheld. Irs income tax forms 2011 For more information on ministers, see Publication 517. Irs income tax forms 2011 Exemptions for ministers and others. Irs income tax forms 2011   Certain ordained ministers, Christian Science practitioners, and members of religious orders who have not taken a vow of poverty may apply to exempt their earnings from self-employment tax on religious grounds. Irs income tax forms 2011 The application must be based on conscientious opposition because of personal considerations to public insurance that makes payments in the event of death, disability, old age, or retirement, or that makes payments toward the cost of, or provides services for, medical care, including social security and Medicare benefits. Irs income tax forms 2011 The exemption applies only to qualified services performed for the religious organization. Irs income tax forms 2011 See Revenue Procedure 91-20, 1991-1 C. Irs income tax forms 2011 B. Irs income tax forms 2011 524, for guidelines to determine whether an organization is a religious order or whether an individual is a member of a religious order. Irs income tax forms 2011   To apply for the exemption, the employee should file Form 4361, Application for Exemption From Self-Employment Tax for Use by Ministers, Members of Religious Orders and Christian Science Practitioners. Irs income tax forms 2011 See Publication 517 for more information about claiming an exemption from self-employment tax using Form 4361. Irs income tax forms 2011 Members of recognized religious sects opposed to insurance. Irs income tax forms 2011   If you belong to a recognized religious sect or to a division of such sect that is opposed to insurance, you may qualify for an exemption from the self-employment tax. Irs income tax forms 2011 To qualify, you must be conscientiously opposed to accepting the benefits of any public or private insurance that makes payments because of death, disability, old age, or retirement, or makes payments toward the cost of, or provides services for, medical care (including social security and Medicare benefits). Irs income tax forms 2011 If you buy a retirement annuity from an insurance company, you will not be eligible for this exemption. Irs income tax forms 2011 Religious opposition based on the teachings of the sect is the only legal basis for the exemption. Irs income tax forms 2011 In addition, your religious sect (or division) must have existed since December 31, 1950. Irs income tax forms 2011 Self-employed. Irs income tax forms 2011   If you are self-employed and a member of a recognized religious sect opposed to insurance, you can apply for exemption by filing Form 4029 to waive all social security and Medicare benefits. Irs income tax forms 2011 Employees. Irs income tax forms 2011   The social security and Medicare tax exemption available to the self-employed who are members of a recognized religious sect opposed to insurance is also available to their employees who are members of such a sect. Irs income tax forms 2011 This applies to partnerships only if each partner is a member of the sect. Irs income tax forms 2011 This exemption for employees applies only if both the employee and the employer are members of such a sect, and the employer has an exemption. Irs income tax forms 2011 To get the exemption, the employee must file Form 4029. Irs income tax forms 2011   An employee of a church or church-controlled organization that is exempt from social security and Medicare taxes can also apply for an exemption on Form 4029. Irs income tax forms 2011 5. Irs income tax forms 2011 Wages and Other Compensation Publication 15 (Circular E) provides a general discussion of taxable wages. Irs income tax forms 2011 Publication 15-B discusses fringe benefits. Irs income tax forms 2011 The following topics supplement those discussions. Irs income tax forms 2011 Relocating for Temporary Work Assignments If an employee is given a temporary work assignment away from his or her regular place of work, certain travel expenses reimbursed or paid directly by the employer in accordance with an accountable plan (see section 5 in Publication 15 (Circular E)) may be excludable from the employee's wages. Irs income tax forms 2011 Generally, a temporary work assignment in a single location is one that is realistically expected to last (and does in fact last) for 1 year or less. Irs income tax forms 2011 If the employee's new work assignment is indefinite, any living expenses reimbursed or paid by the employer (other than qualified moving expenses) must be included in the employee's wages as compensation. Irs income tax forms 2011 For the travel expenses to be excludable: The new work location must be outside of the city or general area of the employee's regular work place or post of duty, The travel expenses must otherwise qualify as deductible by the employee, and The expenses must be for the period during which the employee is at the temporary work location. Irs income tax forms 2011 If you reimburse or pay any personal expenses of an employee during his or her temporary work assignment, such as expenses for home leave for family members or for vacations, these amounts must be included in the employee's wages. Irs income tax forms 2011 See chapter 1 of Publication 463, Travel, Entertainment, Gift, and Car Expenses, and section 5 of Publication 15 (Circular E), for more information. Irs income tax forms 2011 These rules generally apply to temporary work assignments both inside and outside the U. Irs income tax forms 2011 S. Irs income tax forms 2011 Employee Achievement Awards Do not withhold federal income, social security, or Medicare taxes on the fair market value of an employee achievement award if it is excludable from your employee's gross income. Irs income tax forms 2011 To be excludable from your employee's gross income, the award must be tangible personal property (not cash, gift certificates, or securities) given to an employee for length of service or safety achievement, awarded as part of a meaningful presentation, and awarded under circumstances that do not indicate that the payment is disguised compensation. Irs income tax forms 2011 Excludable employee achievement awards also are not subject to FUTA tax. Irs income tax forms 2011 Limits. Irs income tax forms 2011   The most that you can exclude for the cost of all employee achievement awards to the same employee for the year is $400. Irs income tax forms 2011 A higher limit of $1,600 applies to qualified plan awards. Irs income tax forms 2011 Qualified plan awards are employee achievement awards under a written plan that does not discriminate in favor of highly compensated employees. Irs income tax forms 2011 An award cannot be treated as a qualified plan award if the average cost per recipient of all awards under all of your qualified plans is more than $400. Irs income tax forms 2011   If during the year an employee receives awards not made under a qualified plan and also receives awards under a qualified plan, the exclusion for the total cost of all awards to that employee cannot be more than $1,600. Irs income tax forms 2011 The $400 and $1,600 limits cannot be added together to exclude more than $1,600 for the cost of awards to any one employee during the year. Irs income tax forms 2011 Scholarship and Fellowship Payments Only amounts that you pay as a qualified scholarship to a candidate for a degree may be excluded from the recipient's gross income. Irs income tax forms 2011 A qualified scholarship is any amount granted as a scholarship or fellowship that is used for: Tuition and fees required to enroll in, or to attend, an educational institution, or Fees, books, supplies, and equipment that are required for courses at the educational institution. Irs income tax forms 2011 The exclusion from income does not apply to the portion of any amount received that represents payment for teaching, research, or other services required as a condition of receiving the scholarship or tuition reduction. Irs income tax forms 2011 These amounts are reportable on Form W-2. Irs income tax forms 2011 However, the exclusion will still apply for any amount received under two specific programs—the National Health Service Corps Scholarship Program and the Armed Forces Health Professions Scholarship and Financial Assistance Program—despite any service condition attached to those amounts. Irs income tax forms 2011 Any amounts that you pay for room and board are not excludable from the recipient's gross income. Irs income tax forms 2011 A qualified scholarship is not subject to social security, Medicare, and FUTA taxes, or federal income tax withholding. Irs income tax forms 2011 For more information, see Publication 970, Tax Benefits for Education. Irs income tax forms 2011 Outplacement Services If you provide outplacement services to your employees to help them find new employment (such as career counseling, resume assistance, or skills assessment), the value of these benefits may be income to them and subject to all withholding taxes. Irs income tax forms 2011 However, the value of these services will not be subject to any employment taxes if: You derive a substantial business benefit from providing the services (such as improved employee morale or business image) separate from the benefit that you would receive from the mere payment of additional compensation, and The employee would be able to deduct the cost of the services as employee business expenses if he or she had paid for them. Irs income tax forms 2011 However, if you receive no additional benefit from providing the services, or if the services are not provided on the basis of employee need, then the value of the services is treated as wages and is subject to federal income tax withholding and social security and Medicare taxes. Irs income tax forms 2011 Similarly, if an employee receives the outplacement services in exchange for reduced severance pay (or other taxable compensation), then the amount the severance pay is reduced is treated as wages for employment tax purposes. Irs income tax forms 2011 Withholding for Idle Time Payments made under a voluntary guarantee to employees for idle time (any time during which an employee performs no services) are wages for the purposes of social security, Medicare, and FUTA taxes, and federal income tax withholding. Irs income tax forms 2011 Back Pay Treat back pay as wages in the year paid and withhold and pay employment taxes as required. Irs income tax forms 2011 If back pay was awarded by a court or government agency to enforce a federal or state statute protecting an employee's right to employment or wages, special rules apply for reporting those wages to the Social Security Administration. Irs income tax forms 2011 These rules also apply to litigation actions and settlement agreements or agency directives that are resolved out of court and not under a court decree or order. Irs income tax forms 2011 Examples of pertinent statutes include, but are not limited to, the National Labor Relations Act, Fair Labor Standards Act, Equal Pay Act, and Age Discrimination in Employment Act. Irs income tax forms 2011 See Publication 957, Reporting Back Pay and Special Wage Payments to the Social Security Administration, and Form SSA-131, Employer Report of Special Wage Payments, for details. Irs income tax forms 2011 Supplemental Unemployment Benefits If you pay, under a plan, supplemental unemployment benefits to a former employee, all or part of the payments may be taxable and subject to federal income tax withholding, depending on how the plan is funded. Irs income tax forms 2011 Amounts that represent a return to the employee of amounts previously subject to tax are not taxable and are not subject to withholding. Irs income tax forms 2011 You should withhold federal income tax on the taxable part of the payments made, under a plan, to an employee who is involuntarily separated because of a reduction in force, discontinuance of a plant or operation, or other similar condition. Irs income tax forms 2011 It does not matter whether the separation is temporary or permanent. Irs income tax forms 2011 There are special rules that apply in determining whether benefits qualify as supplemental unemployment benefits that are excluded from wages for social security, Medicare, and FUTA tax purposes. Irs income tax forms 2011 To qualify as supplemental unemployment benefits for these purposes, the benefits must meet the following requirements. Irs income tax forms 2011 Benefits are paid only to unemployed former employees who are laid off by the employer. Irs income tax forms 2011 Eligibility for benefits depends on meeting prescribed conditions after termination. Irs income tax forms 2011 The amount of weekly benefits payable is based upon state unemployment benefits, other compensation allowable under state law, and the amount of regular weekly pay. Irs income tax forms 2011 The right to benefits does not accrue until a prescribed period after termination. Irs income tax forms 2011 Benefits are not attributable to the performance of particular services. Irs income tax forms 2011 No employee has any right to the benefits until qualified and eligible to receive benefits. Irs income tax forms 2011 Benefits may not be paid in a lump sum. Irs income tax forms 2011 Withholding on taxable supplemental unemployment benefits must be based on the withholding certificate (Form W-4) that the employee gave to you. Irs income tax forms 2011 Golden Parachute Payments A golden parachute payment, in general, is a payment made under a contract entered into by a corporation and key personnel. Irs income tax forms 2011 Under the agreement, the corporation agrees to pay certain amounts to its key personnel in the event of a change in ownership or control of the corporation. Irs income tax forms 2011 Payments to employees under golden parachute contracts are subject to social security, Medicare, and FUTA taxes, and federal income tax withholding. Irs income tax forms 2011 See Regulations section 1. Irs income tax forms 2011 280G-1 for more information. Irs income tax forms 2011 No deduction is allowed to the corporation for any excess parachute payment. Irs income tax forms 2011 To determine the amount of the excess parachute payment, you must first determine if there is a parachute payment for purposes of section 280G. Irs income tax forms 2011 A parachute payment for purposes of section 280G is any payment that meets all of the following. Irs income tax forms 2011 The payment is in the nature of compensation. Irs income tax forms 2011 The payment is to, or for the benefit of, a disqualified individual. Irs income tax forms 2011 A disqualified individual is anyone who at any time during the 12-month period prior to and ending on the date of the change in ownership or control of the corporation (the disqualified individual determination period) was an employee or independent contractor and was, in regard to that corporation, a shareholder, an officer, or highly compensated individual. Irs income tax forms 2011 The payment is contingent on a change in ownership of the corporation, the effective control of the corporation, or the ownership of a substantial portion of the assets of the corporation. Irs income tax forms 2011 The payment has an aggregate present value of at least three times the individual's base amount. Irs income tax forms 2011 The base amount is the average annual compensation for service includible in the individual's gross income over the most recent 5 taxable years. Irs income tax forms 2011 An excess parachute payment amount is the excess of any parachute payment over the base amount. Irs income tax forms 2011 For more information, see Regulations section 1. Irs income tax forms 2011 280G-1. Irs income tax forms 2011 The recipient of an excess parachute payment is subject to a 20% nondeductible excise tax. Irs income tax forms 2011 If the recipient is an employee, the 20% excise tax is to be withheld by the corporation. Irs income tax forms 2011 Example. Irs income tax forms 2011 An officer of a corporation receives a golden parachute payment of $400,000. Irs income tax forms 2011 This is more than three times greater than his or her average compensation of $100,000 over the previous 5-year period. Irs income tax forms 2011 The excess parachute payment is $300,000 ($400,000 minus $100,000). Irs income tax forms 2011 The corporation cannot deduct the $300,000 and must withhold the excise tax of $60,000 (20% of $300,000). Irs income tax forms 2011 Reporting golden parachute payments. Irs income tax forms 2011   Golden parachute payments to employees must be reported on Form W-2. Irs income tax forms 2011 See the General Instructions for Forms W-2 and W-3 for details. Irs income tax forms 2011 For nonemployee reporting of these payments, see Box 7. Irs income tax forms 2011 Nonemployee Compensation in the Instructions for Form 1099-MISC. Irs income tax forms 2011 Exempt payments. Irs income tax forms 2011   Payments by most small business corporations and payments under certain qualified plans are exempt from the golden parachute rules. Irs income tax forms 2011 See section 280G(b)(5) and (6) for more information. Irs income tax forms 2011 Interest-Free and Below-Market-Interest-Rate Loans In general, if an employer lends an employee more than $10,000 at an interest rate less than the current applicable federal rate (AFR), the difference between the interest paid and the interest that would be paid under the AFR is considered additional compensation to the employee. Irs income tax forms 2011 This rule applies to a loan of $10,000 or less if one of its principal purposes is the avoidance of federal tax. Irs income tax forms 2011 This additional compensation to the employee is subject to social security, Medicare, and FUTA taxes, but not to federal income tax withholding. Irs income tax forms 2011 Include it in compensation on Form W-2 (or Form 1099-MISC for an independent contractor). Irs income tax forms 2011 The AFR is established monthly and published by the IRS each month in the Internal Revenue Bulletin. Irs income tax forms 2011 You can get these rates by calling 1-800-829-4933 or by visiting IRS. Irs income tax forms 2011 gov. Irs income tax forms 2011 For more information, see section 7872 and its related regulations. Irs income tax forms 2011 Leave Sharing Plans If you establish a leave sharing plan for your employees that allows them to transfer leave to other employees for medical emergencies, the amounts paid to the recipients of the leave are considered wages. Irs income tax forms 2011 These amounts are includible in the gross income of the recipients and are subject to social security, Medicare, and FUTA taxes, and federal income tax withholding. Irs income tax forms 2011 Do not include these amounts in the income of the transferors. Irs income tax forms 2011 These rules apply only to leave sharing plans that permit employees to transfer leave to other employees for medical emergencies. Irs income tax forms 2011 Nonqualified Deferred Compensation Plans Income Tax and Reporting Section 409A provides that all amounts deferred under a nonqualified deferred compensation (NQDC) plan for all tax years are currently includible in gross income (to the extent not subject to a substantial risk of forfeiture and not previously included in gross income) and subject to additional taxes, unless certain requirements are met pertaining to, among other things, elections to defer compensation and distributions under a NQDC plan. Irs income tax forms 2011 Section 409A also includes rules that apply to certain trusts or similar arrangements associated with NQDC plans if the trusts or arrangements are located outside of the United States, are restricted to the provision of benefits in connection with a decline in the financial health of the plan sponsor, or contributions are made to the trust during certain periods such as when a qualified plan of the service recipient is underfunded. Irs income tax forms 2011 Employers must withhold federal income tax (but not the additional Section 409A taxes) on any amount includible in gross income under section 409A. Irs income tax forms 2011 Other changes to the Internal Revenue Code provide that the deferrals under a NQDC plan must be reported separately on Form W-2 or Form 1099-MISC, whichever applies. Irs income tax forms 2011 Specific rules for reporting are provided in the instructions to the forms. Irs income tax forms 2011 The provisions do not affect the application or reporting of social security, Medicare, or FUTA taxes. Irs income tax forms 2011 The provisions do not prevent the inclusion of amounts in income or wages under other provisions of the Internal Revenue Code or common law principles, such as when amounts are actually or constructively received or irrevocably contributed to a separate fund. Irs income tax forms 2011 For more information about nonqualified deferred compensation plans, see Regulations sections 1. Irs income tax forms 2011 409A-1 through 1. Irs income tax forms 2011 409A-6. Irs income tax forms 2011 Notice 2008-113 provides guidance on the correction of certain operation failures of a NQDC plan. Irs income tax forms 2011 Notice 2008-113, 2008-51 I. Irs income tax forms 2011 R. Irs income tax forms 2011 B. Irs income tax forms 2011 1305, is available at www. Irs income tax forms 2011 irs. Irs income tax forms 2011 gov/irb/2008-51_IRB/ar12. Irs income tax forms 2011 html. Irs income tax forms 2011 Also see Notice 2010-6, 2010-3 I. Irs income tax forms 2011 R. Irs income tax forms 2011 B. Irs income tax forms 2011 275, available at www. Irs income tax forms 2011 irs. Irs income tax forms 2011 gov/irb/2010-03_IRB/ar08. Irs income tax forms 2011 html and Notice 2010-80, 2010-51 I. Irs income tax forms 2011 R. Irs income tax forms 2011 B. Irs income tax forms 2011 853, available at www. Irs income tax forms 2011 irs. Irs income tax forms 2011 gov/irb/2010-51_IRB/ar08. Irs income tax forms 2011 html. Irs income tax forms 2011 Social security, Medicare, and FUTA taxes. Irs income tax forms 2011   Employer contributions to nonqualified deferred compensation (NQDC) plans, as defined in the applicable regulations, are treated as wages subject to social security, Medicare, and FUTA taxes when the services are performed or the employee no longer has a substantial risk of forfeiting the right to the deferred compensation, whichever is later. Irs income tax forms 2011   Amounts deferred are subject to social security, Medicare, and FUTA taxes at that time unless the amount that is deferred cannot be reasonably ascertained; for example, if benefits are based on final pay. Irs income tax forms 2011 If the value of the future benefit is based on any factors that are not yet reasonably ascertainable, you may choose to estimate the value of the future benefit and withhold and pay social security, Medicare, and FUTA taxes on that amount. Irs income tax forms 2011 You will have to determine later, when the amount is reasonably ascertainable, whether any additional taxes are required. Irs income tax forms 2011 If taxes are not paid before the amounts become reasonably ascertainable, when the amounts become reasonably ascertainable they are subject to social security, Medicare, and FUTA taxes on the amounts deferred plus the income attributable to those amounts deferred. Irs income tax forms 2011 For more information, see Regulations sections 31. Irs income tax forms 2011 3121(v)(2)-1 and 31. Irs income tax forms 2011 3306(r)(2)-1. Irs income tax forms 2011 Tax-Sheltered Annuities Employer payments made by a public educational institution or a tax-exempt organization to purchase a tax-sheltered annuity for an employee (annual deferrals) are included in the employee's social security and Medicare wages, if the payments are made because of a salary reduction agreement. Irs income tax forms 2011 However, they are not included in box 1 on Form W-2 in the year the deferrals are made and are not subject to federal income tax withholding. Irs income tax forms 2011 See Regulations section 31. Irs income tax forms 2011 3121(a)(5)-2 for the definition of a salary reduction agreement. Irs income tax forms 2011 Contributions to a Simplified Employee Pension (SEP) An employer's SEP contributions to an employee's individual retirement arrangement (IRA) are excluded from the employee's gross income. Irs income tax forms 2011 These excluded amounts are not subject to social security, Medicare, or FUTA taxes, or federal income tax withholding. Irs income tax forms 2011 However, any SEP contributions paid under a salary reduction agreement (SARSEP) are included in wages for purposes of social security, Medicare, and FUTA taxes. Irs income tax forms 2011 See Publication 560 for more information about SEPs. Irs income tax forms 2011 Salary reduction simplified employee pensions (SARSEP) repealed. Irs income tax forms 2011   You may not establish a SARSEP after 1996. Irs income tax forms 2011 However, SARSEPs established before January 1, 1997, may continue to receive contributions. Irs income tax forms 2011 SIMPLE Retirement Plans Employer and employee contributions to a savings incentive match plan for employees (SIMPLE) retirement account (subject to limitations) are excludable from the employee's income and are exempt from federal income tax withholding. Irs income tax forms 2011 An employer's nonelective (2%) or matching contributions are exempt from social security, Medicare, and FUTA taxes. Irs income tax forms 2011 However, an employee's salary reduction contributions to a SIMPLE are subject to social security, Medicare, and FUTA taxes. Irs income tax forms 2011 For more information about SIMPLE retirement plans, see Publication 560. Irs income tax forms 2011 6. Irs income tax forms 2011 Sick Pay Reporting The IRS expects to change the third-party sick pay recap reporting and filing requirements for wages paid in 2014. Irs income tax forms 2011 Information about this change will be included in the revision of Publication 15-A that is expected to post to IRS. Irs income tax forms 2011 gov in December 2014. Irs income tax forms 2011 Special rules apply to the reporting of sick pay payments to employees. Irs income tax forms 2011 How these payments are reported depends on whether the payments are made by the employer or a third party, such as an insurance company. Irs income tax forms 2011 Sick pay is usually subject to social security, Medicare, and FUTA taxes. Irs income tax forms 2011 For exceptions, see Social Security, Medicare, and FUTA Taxes on Sick Pay , later in this section. Irs income tax forms 2011 Sick pay may also be subject to either mandatory or voluntary federal income tax withholding, depending on who pays it. Irs income tax forms 2011 Sick Pay Sick pay generally means any amount paid under a plan because of an employee's temporary absence from work due to injury, sickness, or disability. Irs income tax forms 2011 It may be paid by either the employer or a third party, such as an insurance company. Irs income tax forms 2011 Sick pay includes both short- and long-term benefits. Irs income tax forms 2011 It is often expressed as a percentage of the employee's regular wages. Irs income tax forms 2011 Payments That Are Not Sick Pay Sick pay does not include the following payments. Irs income tax forms 2011 Disability retirement payments. Irs income tax forms 2011 Disability retirement payments are not sick pay and are not discussed in this section. Irs income tax forms 2011 Those payments are subject to the rules for federal income tax withholding from pensions and annuities. Irs income tax forms 2011 See section 8. Irs income tax forms 2011 Workers' compensation. Irs income tax forms 2011 Payments because of a work-related injury or sickness that are made under a workers' compensation law are not sick pay and are not subject to employment taxes. Irs income tax forms 2011 But see Payments in the nature of workers' compensation—public employees next. Irs income tax forms 2011 Payments in the nature of workers' compensation—public employees. Irs income tax forms 2011 State and local government employees, such as police officers and firefighters, sometimes receive payments due to an injury in the line of duty under a statute that is not the general workers' compensation law of a state. Irs income tax forms 2011 If the statute limits benefits to work-related injuries or sickness and does not base payments on the employee's age, length of service, or prior contributions, the statute is “in the nature of” a workers' compensation law. Irs income tax forms 2011 Payments under a statute in the nature of a workers' compensation law are not sick pay and are not subject to employment taxes. Irs income tax forms 2011 For more information, see Regulations section 31. Irs income tax forms 2011 3121(a)(2)-1. Irs income tax forms 2011 Medical expense payments. Irs income tax forms 2011 Payments under a definite plan or system for medical and hospitalization expenses, or for insurance covering these expenses, are not sick pay and are not subject to employment taxes. Irs income tax forms 2011 Payments unrelated to absence from work. Irs income tax forms 2011 Accident or health insurance payments unrelated to absence from work are not sick pay and are not subject to employment taxes. Irs income tax forms 2011 These include payments for: Permanent loss of a member or function of the body, Permanent loss of the use of a member or function of the body, or Permanent disfigurement of the body. Irs income tax forms 2011 Example. Irs income tax forms 2011 Donald was injured in a car accident and lost an eye. Irs income tax forms 2011 Under a policy paid for by Donald's employer, Delta Insurance Co. Irs income tax forms 2011 paid Donald $20,000 as compensation for the loss of his eye. Irs income tax forms 2011 Because the payment was determined by the type of injury and was unrelated to Donald's absence from work, it is not sick pay and is not subject to federal employment taxes. Irs income tax forms 2011 Sick Pay Plan A sick pay plan is a plan or system established by an employer under which sick pay is available to employees generally or to a class or classes of employees. Irs income tax forms 2011 This does not include a situation in which benefits are provided on a discretionary or occasional basis with merely an intention to aid particular employees in time of need. Irs income tax forms 2011 You have a sick pay plan or system if the plan is in writing or is otherwise made known to employees, such as by a bulletin board notice or your long and established practice. Irs income tax forms 2011 Some indications that you have a sick pay plan or system include references to the plan or system in the contract of employment, employer contributions to a plan, or segregated accounts for the payment of benefits. Irs income tax forms 2011 Definition of employer. Irs income tax forms 2011   The employer for whom the employee normally works, a term used in the following discussion, is either the employer for whom the employee was working at the time that the employee became sick or disabled or the last employer for whom the employee worked before becoming sick or disabled, if that employer made contributions to the sick pay plan on behalf of the sick or disabled employee. Irs income tax forms 2011 Note. Irs income tax forms 2011 Contributions to a sick pay plan through a cafeteria plan (by direct employer contributions or salary reduction) are employer contributions unless they are after-tax employee contributions (that is, included in taxable wages). Irs income tax forms 2011 Third-Party Payers of Sick Pay Employer's agent. Irs income tax forms 2011   An employer's agent is a third party that bears no insurance risk and is reimbursed on a cost-plus-fee basis for payment of sick pay and similar amounts. Irs income tax forms 2011 A third party may be your agent even if the third party is responsible for determining which employees are eligible to receive payments. Irs income tax forms 2011 For example, if a third party provides administrative services only, the third party is your agent. Irs income tax forms 2011 If the third party is paid an insurance premium and is not reimbursed on a cost-plus-fee basis, the third party is not your agent. Irs income tax forms 2011 Whether an insurance company or other third party is your agent depends on the terms of their agreement with you. Irs income tax forms 2011   A third party that makes payments of sick pay as your agent is not considered the employer and generally has no responsibility for employment taxes. Irs income tax forms 2011 This responsibility remains with you. Irs income tax forms 2011 However, under an exception to this rule, the parties may enter into an agreement that makes the third-party agent responsible for employment taxes. Irs income tax forms 2011 In this situation, the third-party agent should use its own name and EIN (rather than your name and EIN) for the responsibilities that it has assumed. Irs income tax forms 2011 Third party not employer's agent. Irs income tax forms 2011   A third party that makes payments of sick pay other than as an agent of the employer is liable for federal income tax withholding (if requested by the employee) and the employee part of the social security and Medicare taxes. Irs income tax forms 2011   The third party is also liable for the employer part of the social security and Medicare taxes, and the FUTA tax, unless the third party transfers this liability to the employer for whom the employee normally works. Irs income tax forms 2011 This liability is transferred if the third party takes the following steps. Irs income tax forms 2011 Withholds the employee social security and Medicare taxes from the sick pay payments. Irs income tax forms 2011 Makes timely deposits of the employee social security and Medicare taxes. Irs income tax forms 2011 Notifies the employer for whom the employee normally works of the payments on which employee taxes were withheld and deposited. Irs income tax forms 2011 The third party must notify the employer within the time required for the third party's deposit of the employee part of the social security and Medicare taxes. Irs income tax forms 2011 For instance, if the third party is a monthly schedule depositor, it must notify the employer by the 15th day of the month following the month in which the sick pay payment is made because that is the day by which the deposit is required to be made. Irs income tax forms 2011 The third party should notify the employer as soon as information on payments is available so that an employer required to make electronic deposits can make them timely. Irs income tax forms 2011 For multi-employer plans, see the special rule discussed next. Irs income tax forms 2011 Multi-employer plan timing rule. Irs income tax forms 2011   A special rule applies to sick pay payments made to employees by a third-party insurer under an insurance contract with a multi-employer plan established under a collectively bargained agreement. Irs income tax forms 2011 If the third-party insurer making the payments complies wi
Español

Administration on Aging (AoA)

The Administration on Aging is the Federal focal point and advocate agency for older persons and their concerns. In this role, the Administration on Aging works to heighten awareness among other Federal agencies, organizations, groups, and the public about the valuable contributions that older Americans make to the nation. The Administration also alerts others to the needs of vulnerable older people. Through information, referral and outreach efforts at the community level, the Administration seeks to educate older people and their caregivers about the benefits and services available to help them.

Contact the Agency or Department

Website: Administration on Aging (AoA)

Contact In-Person: Find Administration on Aging (AoA) Offices Near You

E-mail:

Address: One Massachusetts Ave., NW
Washington, DC 20001

Phone Number: (202) 619-0724

Toll-free: (800) 677-1116 (to find local resources)

The Irs Income Tax Forms 2011

Irs income tax forms 2011 Publication 501 - Main Content Table of Contents Who Must FileSelf-employed persons. Irs income tax forms 2011 Filing Requirements for Most Taxpayers Dependents Other Situations Who Should File Filing StatusMarital Status Single Married Filing Jointly Married Filing Separately Head of Household Qualifying Widow(er) With Dependent Child ExemptionsForm 1040EZ filers. Irs income tax forms 2011 Form 1040A filers. Irs income tax forms 2011 Form 1040 filers. Irs income tax forms 2011 More information. Irs income tax forms 2011 Personal Exemptions Exemptions for Dependents Qualifying Child Qualifying Relative Phaseout of Exemptions Social Security Numbers for DependentsBorn and died in 2013. Irs income tax forms 2011 Taxpayer identification numbers for aliens. Irs income tax forms 2011 Taxpayer identification numbers for adoptees. Irs income tax forms 2011 Standard DeductionStandard Deduction Amount Standard Deduction for Dependents Who Should Itemize How To Get Tax HelpLow Income Taxpayer Clinics Who Must File If you are a U. Irs income tax forms 2011 S. Irs income tax forms 2011 citizen or resident alien, whether you must file a federal income tax return depends on your gross income, your filing status, your age, and whether you are a dependent. Irs income tax forms 2011 For details, see Table 1 and Table 2. Irs income tax forms 2011 You also must file if one of the situations described in Table 3 applies. Irs income tax forms 2011 The filing requirements apply even if you owe no tax. Irs income tax forms 2011 Table 1. Irs income tax forms 2011 2013 Filing Requirements Chart for Most Taxpayers IF your filing status is. Irs income tax forms 2011 . Irs income tax forms 2011 . Irs income tax forms 2011 AND at the end of 2013 you were. Irs income tax forms 2011 . Irs income tax forms 2011 . Irs income tax forms 2011 * THEN file a return if your gross income was at least. Irs income tax forms 2011 . Irs income tax forms 2011 . Irs income tax forms 2011 ** single under 65  $10,000 65 or older $11,500 head of household under 65 $12,850 65 or older $14,350 married, filing jointly*** under 65 (both spouses) $20,000 65 or older (one spouse) $21,200 65 or older (both spouses) $22,400 married, filing separately any age  $3,900 qualifying widow(er) with dependent child under 65 $16,100 65 or older $17,300 * If you were born before January 2, 1949, you are considered to be 65 or older at the end of 2013. Irs income tax forms 2011 ** Gross income means all income you receive 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 income tax forms 2011 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 during 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 income tax forms 2011 If (a) or (b) applies, see the Form 1040 instructions to figure the taxable part of social security benefits you must include in gross income. Irs income tax forms 2011 Gross income includes gains, but not losses, reported on Form 8949 or Schedule D. Irs income tax forms 2011 Gross income from a business means, for example, the amount on Schedule C, line 7, or Schedule F, line 9. Irs income tax forms 2011 But in figuring gross income, do not reduce your income by any losses, including any loss on Schedule C, line 7, or Schedule F, line 9. Irs income tax forms 2011 *** 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 income tax forms 2011 You may have to pay a penalty if you are required to file a return but fail to do so. Irs income tax forms 2011 If you willfully fail to file a return, you may be subject to criminal prosecution. Irs income tax forms 2011 For information on what form to use — Form 1040EZ, Form 1040A, or Form 1040 — see the instructions for your tax return. Irs income tax forms 2011 Gross income. Irs income tax forms 2011    Gross income is all income you receive in the form of money, goods, property, and services that is not exempt from tax. Irs income tax forms 2011 If you are married and live with your spouse in a community property state, half of any income defined by state law as community income may be considered yours. Irs income tax forms 2011 For a list of community property states, see Community property states under Married Filing Separately, later. Irs income tax forms 2011 Self-employed persons. Irs income tax forms 2011    If you are self-employed in a business that provides services (where products are not a factor), your gross income from that business is the gross receipts. Irs income tax forms 2011 If you are self-employed in a business involving manufacturing, merchandising, or mining, your gross income from that business is the total sales minus the cost of goods sold. Irs income tax forms 2011 In either case, you must add any income from investments and from incidental or outside operations or sources. Irs income tax forms 2011    You must file Form 1040 if you owe any self-employment tax. Irs income tax forms 2011 Filing status. Irs income tax forms 2011    Your filing status generally depends on whether you are single or married. Irs income tax forms 2011 Whether you are single or married is determined at the end of your tax year, which is December 31 for most taxpayers. Irs income tax forms 2011 Filing status is discussed in detail later in this publication. Irs income tax forms 2011 Age. Irs income tax forms 2011    Age is a factor in determining if you must file a return only if you are 65 or older at the end of your tax year. Irs income tax forms 2011 For 2013, you are 65 or older if you were born before January 2, 1949. Irs income tax forms 2011 Filing Requirements for Most Taxpayers You must file a return if your gross income for the year was at least the amount shown on the appropriate line in Table 1. Irs income tax forms 2011 Dependents should see Table 2 instead. Irs income tax forms 2011 Deceased Persons You must file an income tax return for a decedent (a person who died) if both of the following are true. Irs income tax forms 2011 You are the surviving spouse, executor, administrator, or legal representative. Irs income tax forms 2011 The decedent met the filing requirements described in this publication at the time of his or her death. Irs income tax forms 2011 For more information, see Final Income Tax Return for Decedent — Form 1040 in Publication 559. Irs income tax forms 2011 Table 2. Irs income tax forms 2011 2013 Filing Requirements for Dependents See Exemptions for Dependents to find out if you are a dependent. Irs income tax forms 2011 If your parent (or someone else) can claim you as a dependent, use this table to see if you must file a return. Irs income tax forms 2011  In this table, unearned income includes taxable interest, ordinary dividends, and capital gain distributions. Irs income tax forms 2011 It also includes unemployment compensation, taxable social security benefits, pensions, annuities, and distributions of unearned income from a trust. Irs income tax forms 2011 Earned income includes salaries, wages, tips, professional fees, and taxable scholarship and fellowship grants. Irs income tax forms 2011 Gross income is the total of your unearned and earned income. Irs income tax forms 2011 If your gross income was $3,900 or more, you usually cannot be claimed as a dependent unless you are a qualifying child. Irs income tax forms 2011 For details, see Exemptions for Dependents. Irs income tax forms 2011 Single dependents—Were you either age 65 or older or blind? □ No. Irs income tax forms 2011 You must file a return if any of the following apply. Irs income tax forms 2011 Your unearned income was more than $1,000. Irs income tax forms 2011 Your earned income was more than $6,100. Irs income tax forms 2011 Your gross income was more than the larger of— $1,000, or Your earned income (up to $5,750) plus $350. Irs income tax forms 2011     □ Yes. Irs income tax forms 2011 You must file a return if any of the following apply. Irs income tax forms 2011 Your unearned income was more than $2,500 ($4,000 if 65 or older and blind). Irs income tax forms 2011 Your earned income was more than $7,600 ($9,100 if 65 or older and blind). Irs income tax forms 2011 Your gross income was more than the larger of—  $2,500 ($4,000 if 65 or older and blind), or Your earned income (up to $5,750) plus $1,850 ($3,350 if 65 or older and blind). Irs income tax forms 2011     Married dependents—Were you either age 65 or older or blind? □ No. Irs income tax forms 2011 You must file a return if any of the following apply. Irs income tax forms 2011 Your gross income was at least $5 and your spouse files a separate return and itemizes deductions. Irs income tax forms 2011 Your unearned income was more than $1,000. Irs income tax forms 2011 Your earned income was more than $6,100. Irs income tax forms 2011 Your gross income was more than the larger of— $1,000, or Your earned income (up to $5,750 plus $350. Irs income tax forms 2011     □ Yes. Irs income tax forms 2011 You must file a return if any of the following apply. Irs income tax forms 2011 Your gross income was at least $5 and your spouse files a separate return and itemizes deductions. Irs income tax forms 2011 Your unearned income was more than $2,200 ($3,400 if 65 or older and blind). Irs income tax forms 2011 Your earned income was more than $7,300 ($8,500 if 65 or older and blind). Irs income tax forms 2011 Your gross income was more than the larger of— $2,200 ($3,400 if 65 or older and blind), or Your earned income (up to $5,750) plus $1,550 ($2,750 if 65 or older and blind). Irs income tax forms 2011     U. Irs income tax forms 2011 S. Irs income tax forms 2011 Citizens or Resident Aliens Living Abroad To determine whether you must file a return, include in your gross income any income you earned or received abroad, including any income you can exclude under the foreign earned income exclusion. Irs income tax forms 2011 For more information on special tax rules that may apply to you, see Publication 54, Tax Guide for U. Irs income tax forms 2011 S. Irs income tax forms 2011 Citizens and Resident Aliens Abroad. Irs income tax forms 2011 Residents of Puerto Rico If you are a U. Irs income tax forms 2011 S. Irs income tax forms 2011 citizen and also a bona fide resident of Puerto Rico, you generally must file a U. Irs income tax forms 2011 S. Irs income tax forms 2011 income tax return for any year in which you meet the income requirements. Irs income tax forms 2011 This is in addition to any legal requirement you may have to file an income tax return with Puerto Rico. Irs income tax forms 2011 If you are a bona fide resident of Puerto Rico for the whole year, your U. Irs income tax forms 2011 S. Irs income tax forms 2011 gross income does not include income from sources within Puerto Rico. Irs income tax forms 2011 It does, however, include any income you received for your services as an employee of the United States or any U. Irs income tax forms 2011 S. Irs income tax forms 2011 agency. Irs income tax forms 2011 If you receive income from Puerto Rican sources that is not subject to U. Irs income tax forms 2011 S. Irs income tax forms 2011 tax, you must reduce your standard deduction, which reduces the amount of income you can have before you must file a U. Irs income tax forms 2011 S. Irs income tax forms 2011 income tax return. Irs income tax forms 2011 For more information, see Publication 570, Tax Guide for Individuals With Income From U. Irs income tax forms 2011 S. Irs income tax forms 2011 Possessions. Irs income tax forms 2011 Individuals With Income From U. Irs income tax forms 2011 S. Irs income tax forms 2011 Possessions If you had income from Guam, the Commonwealth of the Northern Mariana Islands, American Samoa, or the U. Irs income tax forms 2011 S. Irs income tax forms 2011 Virgin Islands, special rules may apply when determining whether you must file a U. Irs income tax forms 2011 S. Irs income tax forms 2011 federal income tax return. Irs income tax forms 2011 In addition, you may have to file a return with the individual possession government. Irs income tax forms 2011 See Publication 570 for more information. Irs income tax forms 2011 Dependents A person who is a dependent may still have to file a return. Irs income tax forms 2011 It depends on his or her earned income, unearned income, and gross income. Irs income tax forms 2011 For details, see Table 2. Irs income tax forms 2011 A dependent must also file if one of the situations described in Table 3 applies. Irs income tax forms 2011 Responsibility of parent. Irs income tax forms 2011    If a dependent child must file an income tax return but cannot file due to age or any other reason, a parent, guardian, or other legally responsible person must file it for the child. Irs income tax forms 2011 If the child cannot sign the return, the parent or guardian must sign the child's name followed by the words “By (your signature), parent for minor child. Irs income tax forms 2011 ” Earned income. Irs income tax forms 2011    Earned income includes salaries, wages, professional fees, and other amounts received as pay for work you actually perform. Irs income tax forms 2011 Earned income (only for purposes of filing requirements and the standard deduction) also includes any part of a scholarship that you must include in your gross income. Irs income tax forms 2011 See chapter 1 of Publication 970, Tax Benefits for Education, for more information on taxable and nontaxable scholarships. Irs income tax forms 2011 Child's earnings. Irs income tax forms 2011    Amounts a child earns by performing services are included in his or her gross income and not the gross income of the parent. Irs income tax forms 2011 This is true even if under local law the child's parent has the right to the earnings and may actually have received them. Irs income tax forms 2011 But if the child does not pay the tax due on this income, the parent is liable for the tax. Irs income tax forms 2011 Unearned income. Irs income tax forms 2011    Unearned income includes income such as interest, dividends, and capital gains. Irs income tax forms 2011 Trust distributions of interest, dividends, capital gains, and survivor annuities are also considered unearned income. Irs income tax forms 2011 Election to report child's unearned income on parent's return. Irs income tax forms 2011    You may be able to include your child's interest and dividend income on your tax return. Irs income tax forms 2011 If you do this, your child will not have to file a return. Irs income tax forms 2011 To make this election, all of the following conditions must be met. Irs income tax forms 2011 Your child was under age 19 (or under age 24 if a student) at the end of 2013. Irs income tax forms 2011 (A child born on January 1, 1995, is considered to be age 19 at the end of 2013; you cannot make the election for this child unless the child was a student. Irs income tax forms 2011 Similarly, a child born on January 1, 1990, is considered to be age 24 at the end of 2013; you cannot make the election for this child. Irs income tax forms 2011 ) Your child had gross income only from interest and dividends (including capital gain distributions and Alaska Permanent Fund dividends). Irs income tax forms 2011 The interest and dividend income was less than $10,000. Irs income tax forms 2011 Your child is required to file a return for 2013 unless you make this election. Irs income tax forms 2011 Your child does not file a joint return for 2013. Irs income tax forms 2011 No estimated tax payment was made for 2013 and no 2012 overpayment was applied to 2013 under your child's name and social security number. Irs income tax forms 2011 No federal income tax was withheld from your child's income under the backup withholding rules. Irs income tax forms 2011 You are the parent whose return must be used when making the election to report your child's unearned income. Irs income tax forms 2011   For more information, see Form 8814 and Parent's Election To Report Child's Interest and Dividends in Publication 929. Irs income tax forms 2011 Other Situations You may have to file a tax return even if your gross income is less than the amount shown in Table 1 or Table 2 for your filing status. Irs income tax forms 2011 See Table 3 for those other situations when you must file. Irs income tax forms 2011 Table 3. Irs income tax forms 2011 Other Situations When You Must File a 2013 Return If any of the four conditions listed below applied to you for 2013, you must file a return. Irs income tax forms 2011 1. Irs income tax forms 2011 You owe any special taxes, including any of the following. Irs income tax forms 2011   a. Irs income tax forms 2011 Alternative minimum tax. Irs income tax forms 2011 (See Form 6251. Irs income tax forms 2011 )   b. Irs income tax forms 2011 Additional tax on a qualified plan, including an individual retirement arrangement (IRA), or other tax-favored account. Irs income tax forms 2011 (See Publication 590, Individual Retirement Arrangements (IRAs), and Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans. Irs income tax forms 2011 ) But if you are filing a return only because you owe this tax, you can file Form 5329 by itself. Irs income tax forms 2011   c. Irs income tax forms 2011 Social security or Medicare tax on tips you did not report to your employer (see Publication 531, Reporting Tip Income) or on wages you received from an employer who did not withhold these taxes (see Form 8919). Irs income tax forms 2011   d. Irs income tax forms 2011 Write-in taxes, including uncollected social security, Medicare, or railroad retirement tax on tips you reported to your employer or on group-term life insurance and additional tax on health savings accounts. Irs income tax forms 2011 (See Publication 531, Publication 969, and the Form 1040 instructions for line 60. Irs income tax forms 2011 )   e. Irs income tax forms 2011 Household employment taxes. Irs income tax forms 2011 But if you are filing a return only because you owe these taxes, you can file Schedule H (Form 1040) by itself. Irs income tax forms 2011   f. Irs income tax forms 2011 Recapture taxes. Irs income tax forms 2011 (See the Form 1040 instructions for lines 44, 59b, and 60. Irs income tax forms 2011 ) 2. Irs income tax forms 2011 You (or your spouse if filing jointly) received Archer MSA, Medicare Advantage MSA, or health savings account distributions. Irs income tax forms 2011 3. Irs income tax forms 2011 You had net earnings from self-employment of at least $400. Irs income tax forms 2011 (See Schedule SE (Form 1040) and its instructions. Irs income tax forms 2011 ) 4. Irs income tax forms 2011 You had wages of $108. Irs income tax forms 2011 28 or more from a church or qualified church-controlled organization that is exempt from employer social security and Medicare taxes. Irs income tax forms 2011 (See Schedule SE (Form 1040) and its instructions. Irs income tax forms 2011 ) Who Should File Even if you do not have to file, you should file a tax return if you can get money back. Irs income tax forms 2011 For example, you should file if one of the following applies. Irs income tax forms 2011 You had income tax withheld from your pay. Irs income tax forms 2011 You made estimated tax payments for the year or had any of your overpayment for last year applied to this year's estimated tax. Irs income tax forms 2011 You qualify for the earned income credit. Irs income tax forms 2011 See Publication 596, Earned Income Credit (EIC), for more information. Irs income tax forms 2011 You qualify for the additional child tax credit. Irs income tax forms 2011 See the instructions for the tax form you file (Form 1040 or 1040A) for more information. Irs income tax forms 2011 You qualify for the refundable American opportunity education credit. Irs income tax forms 2011 See Form 8863, Education Credits. Irs income tax forms 2011 You qualify for the health coverage tax credit. Irs income tax forms 2011 For information about this credit, see Form 8885, Health Coverage Tax Credit. Irs income tax forms 2011 You qualify for the credit for federal tax on fuels. Irs income tax forms 2011 See Form 4136, Credit for Federal Tax Paid on Fuels. Irs income tax forms 2011 Form 1099-B received. Irs income tax forms 2011    Even if you are not required to file a return, you should consider filing if all of the following apply. Irs income tax forms 2011 You received a Form 1099-B, Proceeds From Broker and Barter Exchange Transactions (or substitute statement). Irs income tax forms 2011 The amount in box 2a of Form 1099-B (or substitute statement), when added to your other gross income, means you have to file a tax return because of the filing requirement in Table 1 or Table 2 that applies to you. Irs income tax forms 2011 Box 3 of Form 1099-B (or substitute statement) is blank. Irs income tax forms 2011 In this case, filing a return may keep you from getting a notice from the IRS. Irs income tax forms 2011 Filing Status You must determine your filing status before you can determine whether you must file a tax return, your standard deduction (discussed later), and your tax. Irs income tax forms 2011 You also use your filing status to determine whether you are eligible to claim certain other deductions and credits. Irs income tax forms 2011 There are five filing statuses: Single, Married Filing Jointly, Married Filing Separately, Head of Household, and Qualifying Widow(er) With Dependent Child. Irs income tax forms 2011 If more than one filing status applies to you, choose the one that will give you the lowest tax. Irs income tax forms 2011 Marital Status In general, your filing status depends on whether you are considered unmarried or married. Irs income tax forms 2011 Unmarried persons. Irs income tax forms 2011    You are considered unmarried for the whole year if, on the last day of your tax year, you are unmarried or legally separated from your spouse under a divorce or separate maintenance decree. Irs income tax forms 2011   State law governs whether you are married or legally separated under a divorce or separate maintenance decree. Irs income tax forms 2011 Divorced persons. Irs income tax forms 2011    If you are divorced under a final decree by the last day of the year, you are considered unmarried for the whole year. Irs income tax forms 2011 Divorce and remarriage. Irs income tax forms 2011    If you obtain a divorce for the sole purpose of filing tax returns as unmarried individuals, and at the time of divorce you intend to and do, in fact, remarry each other in the next tax year, you and your spouse must file as married individuals in both years. Irs income tax forms 2011 Annulled marriages. Irs income tax forms 2011    If you obtain a court decree of annulment, which holds that no valid marriage ever existed, you are considered unmarried even if you filed joint returns for earlier years. Irs income tax forms 2011 You must file amended returns (Form 1040X) claiming single or head of household status for all tax years that are affected by the annulment and not closed by the statute of limitations for filing a tax return. Irs income tax forms 2011 Generally, for a credit or refund, you must file Form 1040X within 3 years (including extensions) after the date you filed your original return or within 2 years after the date you paid the tax, whichever is later. Irs income tax forms 2011 If you filed your original tax return early (for example, March 1), your return is considered filed on the due date (generally April 15). Irs income tax forms 2011 However, if you had an extension to file (for example, until October 15) but you filed earlier and we received it on July 1, your return is considered filed on July 1. Irs income tax forms 2011 Head of household or qualifying widow(er) with dependent child. Irs income tax forms 2011    If you are considered unmarried, you may be able to file as a head of household or as a qualifying widow(er) with a dependent child. Irs income tax forms 2011 See Head of Household and Qualifying Widow(er) With Dependent Child to see if you qualify. Irs income tax forms 2011 Married persons. Irs income tax forms 2011    If you are considered married, you and your spouse can file a joint return or separate returns. Irs income tax forms 2011 Considered married. Irs income tax forms 2011    You are considered married for the whole year if, on the last day of your tax year, you and your spouse meet any one of the following tests. Irs income tax forms 2011 You are married and living together. Irs income tax forms 2011 You are living together in a common law marriage recognized in the state where you now live or in the state where the common law marriage began. Irs income tax forms 2011 You are married and living apart but not legally separated under a decree of divorce or separate maintenance. Irs income tax forms 2011 You are separated under an interlocutory (not final) decree of divorce. Irs income tax forms 2011 Same-sex marriage. Irs income tax forms 2011    For federal tax purposes, individuals of the same sex are married if they were lawfully married in a state (or foreign country) whose laws authorize the marriage of two individuals of the same sex, even if the state (or foreign country) in which they now live does not recognize same-sex marriage. Irs income tax forms 2011 The term "spouse" includes an individual married to a person of the same sex if the couple is lawfully married under state (or foreign) law. Irs income tax forms 2011 However, individuals who have entered into a registered domestic partnership, civil union, or other similar relationship that is not called a marriage under state (or foreign) law are not married for federal tax purposes. Irs income tax forms 2011   The word “state” as used here includes the District of Columbia, Puerto Rico, and U. Irs income tax forms 2011 S. Irs income tax forms 2011 territories and possessions. Irs income tax forms 2011 It means any domestic jurisdiction that has the legal authority to sanction marriages. Irs income tax forms 2011 The term “foreign country” means any foreign jurisdiction that has the legal authority to sanction marriages. Irs income tax forms 2011   If individuals of the same sex are married, they generally must use the married filing jointly or married filing separately filing status. Irs income tax forms 2011 However, if they did not live together during the last 6 months of the year, one or both of them may be able to use the head of household filing status, as explained later. Irs income tax forms 2011   For more details, see Answers to Frequently Asked Questions For Individuals of the Same Sex Who Are Married Under State Law on IRS. Irs income tax forms 2011 gov. Irs income tax forms 2011 Spouse died during the year. Irs income tax forms 2011    If your spouse died during the year, you are considered married for the whole year for filing status purposes. Irs income tax forms 2011   If you did not remarry before the end of the tax year, you can file a joint return for yourself and your deceased spouse. Irs income tax forms 2011 For the next 2 years, you may be entitled to the special benefits described later under Qualifying Widow(er) With Dependent Child . Irs income tax forms 2011   If you remarried before the end of the tax year, you can file a joint return with your new spouse. Irs income tax forms 2011 Your deceased spouse's filing status is married filing separately for that year. Irs income tax forms 2011 Married persons living apart. Irs income tax forms 2011    If you live apart from your spouse and meet certain tests, you may be able to file as head of household even if you are not divorced or legally separated. Irs income tax forms 2011 If you qualify to file as head of household instead of as married filing separately, your standard deduction will be higher. Irs income tax forms 2011 Also, your tax may be lower, and you may be able to claim the earned income credit. Irs income tax forms 2011 See Head of Household , later. Irs income tax forms 2011 Single Your filing status is single if you are considered unmarried and you do not qualify for another filing status. Irs income tax forms 2011 To determine your marital status, see Marital Status , earlier. Irs income tax forms 2011 Widow(er). Irs income tax forms 2011    Your filing status may be single if you were widowed before January 1, 2013, and did not remarry before the end of 2013. Irs income tax forms 2011 You may, however, be able to use another filing status that will give you a lower tax. Irs income tax forms 2011 See Head of Household and Qualifying Widow(er) With Dependent Child , later, to see if you qualify. Irs income tax forms 2011 How to file. Irs income tax forms 2011    You can file Form 1040. Irs income tax forms 2011 If you have taxable income of less than $100,000, you may be able to file Form 1040A. Irs income tax forms 2011 If, in addition, you have no dependents, are under 65 and not blind, and meet other requirements, you can file Form 1040EZ. Irs income tax forms 2011 If you file Form 1040A or Form 1040, show your filing status as single by checking the box on line 1. Irs income tax forms 2011 Use the Single column of the Tax Table, or Section A of the Tax Computation Worksheet, to figure your tax. Irs income tax forms 2011 Married Filing Jointly You can choose married filing jointly as your filing status if you are considered married and both you and your spouse agree to file a joint return. Irs income tax forms 2011 On a joint return, you and your spouse report your combined income and deduct your combined allowable expenses. Irs income tax forms 2011 You can file a joint return even if one of you had no income or deductions. Irs income tax forms 2011 If you and your spouse decide to file a joint return, your tax may be lower than your combined tax for the other filing statuses. Irs income tax forms 2011 Also, your standard deduction (if you do not itemize deductions) may be higher, and you may qualify for tax benefits that do not apply to other filing statuses. Irs income tax forms 2011 If you and your spouse each have income, you may want to figure your tax both on a joint return and on separate returns (using the filing status of married filing separately). Irs income tax forms 2011 You can choose the method that gives the two of you the lower combined tax. Irs income tax forms 2011 How to file. Irs income tax forms 2011    If you file as married filing jointly, you can use Form 1040. Irs income tax forms 2011 If you and your spouse have taxable income of less than $100,000, you may be able to file Form 1040A. Irs income tax forms 2011 If, in addition, you and your spouse have no dependents, are both under 65 and not blind, and meet other requirements, you can file Form 1040EZ. Irs income tax forms 2011 If you file Form 1040 or Form 1040A, show this filing status by checking the box on line 2. Irs income tax forms 2011 Use the Married filing jointly column of the Tax Table, or Section B of the Tax Computation Worksheet, to figure your tax. Irs income tax forms 2011 Spouse died. Irs income tax forms 2011    If your spouse died during the year, you are considered married for the whole year and can choose married filing jointly as your filing status. Irs income tax forms 2011 See Spouse died during the year , under Married persons, earlier. Irs income tax forms 2011   If your spouse died in 2014 before filing a 2013 return, you can choose married filing jointly as your filing status on your 2013 return. Irs income tax forms 2011 Divorced persons. Irs income tax forms 2011    If you are divorced under a final decree by the last day of the year, you are considered unmarried for the whole year and you cannot choose married filing jointly as your filing status. Irs income tax forms 2011 Filing a Joint Return Both you and your spouse must include all of your income, exemptions, and deductions on your joint return. Irs income tax forms 2011 Accounting period. Irs income tax forms 2011    Both of you must use the same accounting period, but you can use different accounting methods. Irs income tax forms 2011 Joint responsibility. Irs income tax forms 2011    Both of you may be held responsible, jointly and individually, for the tax and any interest or penalty due on your joint return. Irs income tax forms 2011 This means that if one spouse does not pay the tax due, the other may have to. Irs income tax forms 2011 Or, if one spouse does not report the correct tax, both spouses may be responsible for any additional taxes assessed by the IRS. Irs income tax forms 2011 One spouse may be held responsible for all the tax due even if all the income was earned by the other spouse. Irs income tax forms 2011   You may want to file separately if: You believe your spouse is not reporting all of his or her income, or You do not want to be responsible for any taxes due if your spouse does not have enough tax withheld or does not pay enough estimated tax. Irs income tax forms 2011 Divorced taxpayer. Irs income tax forms 2011    You may be held jointly and individually responsible for any tax, interest, and penalties due on a joint return filed before your divorce. Irs income tax forms 2011 This responsibility may apply even if your divorce decree states that your former spouse will be responsible for any amounts due on previously filed joint returns. Irs income tax forms 2011 Relief from joint responsibility. Irs income tax forms 2011    In some cases, one spouse may be relieved of joint responsibility for tax, interest, and penalties on a joint return for items of the other spouse that were incorrectly reported on the joint return. Irs income tax forms 2011 You can ask for relief no matter how small the liability. Irs income tax forms 2011   There are three types of relief available. Irs income tax forms 2011 Innocent spouse relief. Irs income tax forms 2011 Separation of liability (available only to joint filers who are divorced, widowed, legally separated, or who have not lived together for the 12 months ending on the date the election for this relief is filed). Irs income tax forms 2011 Equitable relief. Irs income tax forms 2011    You must file Form 8857, Request for Innocent Spouse Relief, to request relief from joint responsibility. Irs income tax forms 2011 Publication 971, Innocent Spouse Relief, explains the kinds of relief and who may qualify for them. Irs income tax forms 2011 Signing a joint return. Irs income tax forms 2011    For a return to be considered a joint return, both spouses generally must sign the return. Irs income tax forms 2011 Spouse died before signing. Irs income tax forms 2011    If your spouse died before signing the return, the executor or administrator must sign the return for your spouse. Irs income tax forms 2011 If neither you nor anyone else has been appointed as executor or administrator, you can sign the return for your spouse and enter “Filing as surviving spouse” in the area where you sign the return. Irs income tax forms 2011 Spouse away from home. Irs income tax forms 2011    If your spouse is away from home, you should prepare the return, sign it, and send it to your spouse to sign so it can be filed on time. Irs income tax forms 2011 Injury or disease prevents signing. Irs income tax forms 2011    If your spouse cannot sign because of injury or disease and tells you to sign for him or her, you can sign your spouse's name in the proper space on the return followed by the words “By (your name), Husband (or Wife). Irs income tax forms 2011 ” Be sure to also sign in the space provided for your signature. Irs income tax forms 2011 Attach a dated statement, signed by you, to the return. Irs income tax forms 2011 The statement should include the form number of the return you are filing, the tax year, and the reason your spouse cannot sign, and should state that your spouse has agreed to your signing for him or her. Irs income tax forms 2011 Signing as guardian of spouse. Irs income tax forms 2011    If you are the guardian of your spouse who is mentally incompetent, you can sign the return for your spouse as guardian. Irs income tax forms 2011 Spouse in combat zone. Irs income tax forms 2011    You can sign a joint return for your spouse if your spouse cannot sign because he or she is serving in a combat zone (such as the Persian Gulf area, Serbia, Montenegro, Albania, or Afghanistan), even if you do not have a power of attorney or other statement. Irs income tax forms 2011 Attach a signed statement to your return explaining that your spouse is serving in a combat zone. Irs income tax forms 2011 For more information on special tax rules for persons who are serving in a combat zone, or who are in missing status as a result of serving in a combat zone, see Publication 3, Armed Forces' Tax Guide. Irs income tax forms 2011 Other reasons spouse cannot sign. Irs income tax forms 2011    If your spouse cannot sign the joint return for any other reason, you can sign for your spouse only if you are given a valid power of attorney (a legal document giving you permission to act for your spouse). Irs income tax forms 2011 Attach the power of attorney (or a copy of it) to your tax return. Irs income tax forms 2011 You can use Form 2848. Irs income tax forms 2011 Nonresident alien or dual-status alien. Irs income tax forms 2011    Generally, a married couple cannot file a joint return if either one is a nonresident alien at any time during the tax year. Irs income tax forms 2011 However, if one spouse was a nonresident alien or dual-status alien who was married to a U. Irs income tax forms 2011 S. Irs income tax forms 2011 citizen or resident alien at the end of the year, the spouses can choose to file a joint return. Irs income tax forms 2011 If you do file a joint return, you and your spouse are both treated as U. Irs income tax forms 2011 S. Irs income tax forms 2011 residents for the entire tax year. Irs income tax forms 2011 See chapter 1 of Publication 519. Irs income tax forms 2011 Married Filing Separately You can choose married filing separately as your filing status if you are married. Irs income tax forms 2011 This filing status may benefit you if you want to be responsible only for your own tax or if it results in less tax than filing a joint return. Irs income tax forms 2011 If you and your spouse do not agree to file a joint return, you must use this filing status unless you qualify for head of household status, discussed later. Irs income tax forms 2011 You may be able to choose head of household filing status if you are considered unmarried because you live apart from your spouse and meet certain tests (explained later, under Head of Household ). Irs income tax forms 2011 This can apply to you even if you are not divorced or legally separated. Irs income tax forms 2011 If you qualify to file as head of household, instead of as married filing separately, your tax may be lower, you may be able to claim the earned income credit and certain other credits, and your standard deduction will be higher. Irs income tax forms 2011 The head of household filing status allows you to choose the standard deduction even if your spouse chooses to itemize deductions. Irs income tax forms 2011 See Head of Household , later, for more information. Irs income tax forms 2011 You will generally pay more combined tax on separate returns than you would on a joint return for the reasons listed under Special Rules, later. Irs income tax forms 2011 However, unless you are required to file separately, you should figure your tax both ways (on a joint return and on separate returns). Irs income tax forms 2011 This way you can make sure you are using the filing status that results in the lowest combined tax. Irs income tax forms 2011 When figuring the combined tax of a married couple, you may want to consider state taxes as well as federal taxes. Irs income tax forms 2011 How to file. Irs income tax forms 2011    If you file a separate return, you generally report only your own income, exemptions, credits, and deductions. Irs income tax forms 2011 You can claim an exemption for your spouse only if your spouse had no gross income, is not filing a return, and was not the dependent of another person. Irs income tax forms 2011   You can file Form 1040. Irs income tax forms 2011 If your taxable income is less than $100,000, you may be able to file Form 1040A. Irs income tax forms 2011 Select this filing status by checking the box on line 3 of either form. Irs income tax forms 2011 Enter your spouse's full name and SSN or ITIN in the spaces provided. Irs income tax forms 2011 If your spouse does not have and is not required to have an SSN or ITIN, enter “NRA” in the space for your spouse's SSN. Irs income tax forms 2011 Use the Married filing separately column of the Tax Table or Section C of the Tax Computation Worksheet to figure your tax. Irs income tax forms 2011 Special Rules If you choose married filing separately as your filing status, the following special rules apply. Irs income tax forms 2011 Because of these special rules, you usually pay more tax on a separate return than if you use another filing status you qualify for. Irs income tax forms 2011 Your tax rate generally is higher than on a joint return. Irs income tax forms 2011 Your exemption amount for figuring the alternative minimum tax is half that allowed on a joint return. Irs income tax forms 2011 You cannot take the credit for child and dependent care expenses in most cases, and the amount you can exclude from income under an employer's dependent care assistance program is limited to $2,500 (instead of $5,000 on a joint return). Irs income tax forms 2011 If you are legally separated or living apart from your spouse, you may be able to file a separate return and still take the credit. Irs income tax forms 2011 See Joint Return Test in Publication 503, Child and Dependent Care Expenses, for more information. Irs income tax forms 2011 You cannot take the earned income credit. Irs income tax forms 2011 You cannot take the exclusion or credit for adoption expenses in most cases. Irs income tax forms 2011 You cannot take the education credits (the American opportunity credit and lifetime learning credit), the deduction for student loan interest, or the tuition and fees deduction. Irs income tax forms 2011 You cannot exclude any interest income from qualified U. Irs income tax forms 2011 S. Irs income tax forms 2011 savings bonds you used for higher education expenses. Irs income tax forms 2011 If you lived with your spouse at any time during the tax year: You cannot claim the credit for the elderly or the disabled, and You must include in income a greater percentage (up to 85%) of any social security or equivalent railroad retirement benefits you received. Irs income tax forms 2011 The following credits and deductions are reduced at income levels half those for a joint return: The child tax credit, The retirement savings contributions credit, The deduction for personal exemptions, and Itemized deductions. Irs income tax forms 2011 Your capital loss deduction limit is $1,500 (instead of $3,000 on a joint return). Irs income tax forms 2011 If your spouse itemizes deductions, you cannot claim the standard deduction. Irs income tax forms 2011 If you can claim the standard deduction, your basic standard deduction is half the amount allowed on a joint return. Irs income tax forms 2011 Adjusted gross income (AGI) limits. Irs income tax forms 2011    If your AGI on a separate return is lower than it would have been on a joint return, you may be able to deduct a larger amount for certain deductions that are limited by AGI, such as medical expenses. Irs income tax forms 2011 Individual retirement arrangements (IRAs). Irs income tax forms 2011    You may not be able to deduct all or part of your contributions to a traditional IRA if you or your spouse were covered by an employee retirement plan at work during the year. Irs income tax forms 2011 Your deduction is reduced or eliminated if your income is more than a certain amount. Irs income tax forms 2011 This amount is much lower for married individuals who file separately and lived together at any time during the year. Irs income tax forms 2011 For more information, see How Much Can You Deduct? in chapter 1 of Publication 590. Irs income tax forms 2011 Rental activity losses. Irs income tax forms 2011    If you actively participated in a passive rental real estate activity that produced a loss, you generally can deduct the loss from your nonpassive income up to $25,000. Irs income tax forms 2011 This is called a special allowance. Irs income tax forms 2011 However, married persons filing separate returns who lived together at any time during the year cannot claim this special allowance. Irs income tax forms 2011 Married persons filing separate returns who lived apart at all times during the year are each allowed a $12,500 maximum special allowance for losses from passive real estate activities. Irs income tax forms 2011 See Rental Activities in Publication 925, Passive Activity and At-Risk Rules. Irs income tax forms 2011 Community property states. Irs income tax forms 2011    If you live in Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, or Wisconsin and file separately, your income may be considered separate income or community income for income tax purposes. Irs income tax forms 2011 See Publication 555, Community Property. Irs income tax forms 2011 Joint Return After Separate Returns You can change your filing status from a separate return to a joint return by filing an amended return using Form 1040X. Irs income tax forms 2011 You generally can change to a joint return any time within 3 years from the due date of the separate return or returns. Irs income tax forms 2011 This does not include any extensions. Irs income tax forms 2011 A separate return includes a return filed by you or your spouse claiming married filing separately, single, or head of household filing status. Irs income tax forms 2011 Separate Returns After Joint Return Once you file a joint return, you cannot choose to file separate returns for that year after the due date of the return. Irs income tax forms 2011 Exception. Irs income tax forms 2011    A personal representative for a decedent can change from a joint return elected by the surviving spouse to a separate return for the decedent. Irs income tax forms 2011 The personal representative has 1 year from the due date (including extensions) of the return to make the change. Irs income tax forms 2011 See Publication 559 for more information on filing income tax returns for a decedent. Irs income tax forms 2011 Head of Household You may be able to file as head of household if you meet all the following requirements. Irs income tax forms 2011 You are unmarried or considered unmarried on the last day of the year. Irs income tax forms 2011 See Marital Status , earlier, and Considered Unmarried , later. Irs income tax forms 2011 You paid more than half the cost of keeping up a home for the year. Irs income tax forms 2011 A qualifying person lived with you in the home for more than half the year (except for temporary absences, such as school). Irs income tax forms 2011 However, if the qualifying person is your dependent parent, he or she does not have to live with you. Irs income tax forms 2011 See Special rule for parent , later, under Qualifying Person. Irs income tax forms 2011 If you qualify to file as head of household, your tax rate usually will be lower than the rates for single or married filing separately. Irs income tax forms 2011 You will also receive a higher standard deduction than if you file as single or married filing separately. Irs income tax forms 2011 How to file. Irs income tax forms 2011    If you file as head of household, you can use Form 1040. Irs income tax forms 2011 If you have taxable income of less than $100,000 and meet certain other conditions, you may be able to file Form 1040A. Irs income tax forms 2011 Indicate your choice of this filing status by checking the box on line 4 of either form. Irs income tax forms 2011 Use the Head of a household column of the Tax Table or Section D of the Tax Computation Worksheet to figure your tax. Irs income tax forms 2011 Considered Unmarried To qualify for head of household status, you must be either unmarried or considered unmarried on the last day of the year. Irs income tax forms 2011 You are considered unmarried on the last day of the tax year if you meet all the following tests. Irs income tax forms 2011 You file a separate return (defined earlier under Joint Return After Separate Returns ). Irs income tax forms 2011 You paid more than half the cost of keeping up your home for the tax year. Irs income tax forms 2011 Your spouse did not live in your home during the last 6 months of the tax year. Irs income tax forms 2011 Your spouse is considered to live in your home even if he or she is temporarily absent due to special circumstances. Irs income tax forms 2011 See Temporary absences , later. Irs income tax forms 2011 Your home was the main home of your child, stepchild, or foster child for more than half the year. Irs income tax forms 2011 (See Home of qualifying person , later, for rules applying to a child's birth, death, or temporary absence during the year. Irs income tax forms 2011 ) You must be able to claim an exemption for the child. Irs income tax forms 2011 However, you meet this test if you cannot claim the exemption only because the noncustodial parent can claim the child using the rules described later in Children of divorced or separated parents (or parents who live apart) under Qualifying Child or in Support Test for Children of Divorced or Separated Parents (or Parents Who Live Apart) under Qualifying Relative. Irs income tax forms 2011 The general rules for claiming an exemption for a dependent are explained later under Exemptions for Dependents . Irs income tax forms 2011 If you were considered married for part of the year and lived in a community property state (listed earlier under Married Filing Separately), special rules may apply in determining your income and expenses. Irs income tax forms 2011 See Publication 555 for more information. Irs income tax forms 2011 Nonresident alien spouse. Irs income tax forms 2011    You are considered unmarried for head of household purposes if your spouse was a nonresident alien at any time during the year and you do not choose to treat your nonresident spouse as a resident alien. Irs income tax forms 2011 However, your spouse is not a qualifying person for head of household purposes. Irs income tax forms 2011 You must have another qualifying person and meet the other tests to be eligible to file as a head of household. Irs income tax forms 2011 Choice to treat spouse as resident. Irs income tax forms 2011    You are considered married if you choose to treat your spouse as a resident alien. Irs income tax forms 2011 See chapter 1 of Publication 519. Irs income tax forms 2011 Keeping Up a Home To qualify for head of household status, you must pay more than half of the cost of keeping up a home for the year. Irs income tax forms 2011 You can determine whether you paid more than half of the cost of keeping up a home by using Worksheet 1. Irs income tax forms 2011 Worksheet 1. Irs income tax forms 2011 Cost of Keeping Up a Home         Amount You  Paid Total  Cost Property taxes $ $ Mortgage interest expense     Rent     Utility charges     Repairs/maintenance     Property insurance     Food consumed on the premises     Other household expenses     Totals $ $       Minus total amount you paid   ()       Amount others paid   $       If the total amount you paid is more than the amount others paid, you meet the requirement of paying more than half the cost of keeping up the home. Irs income tax forms 2011 Costs you include. Irs income tax forms 2011    Include in the cost of keeping up a home expenses such as rent, mortgage interest, real estate taxes, insurance on the home, repairs, utilities, and food eaten in the home. Irs income tax forms 2011   If you used payments you received under Temporary Assistance for Needy Families (TANF) or other public assistance programs to pay part of the cost of keeping up your home, you cannot count them as money you paid. Irs income tax forms 2011 However, you must include them in the total cost of keeping up your home to figure if you paid over half the cost. Irs income tax forms 2011 Costs you do not include. Irs income tax forms 2011    Do not include the cost of clothing, education, medical treatment, vacations, life insurance, or transportation. Irs income tax forms 2011 Also, do not include the rental value of a home you own or the value of your services or those of a member of your household. Irs income tax forms 2011 Qualifying Person See Table 4 to see who is a qualifying person. Irs income tax forms 2011 Any person not described in Table 4 is not a qualifying person. Irs income tax forms 2011 Example 1—child. Irs income tax forms 2011 Your unmarried son lived with you all year and was 18 years old at the end of the year. Irs income tax forms 2011 He did not provide more than half of his own support and does not meet the tests to be a qualifying child of anyone else. Irs income tax forms 2011 As a result, he is your qualifying child (see Qualifying Child , later) and, because he is single, your qualifying person for head of household purposes. Irs income tax forms 2011 Example 2—child who is not qualifying person. Irs income tax forms 2011 The facts are the same as in Example 1 except your son was 25 years old at the end of the year and his gross income was $5,000. Irs income tax forms 2011 Because he does not meet the age test (explained later under Qualifying Child), your son is not your qualifying child. Irs income tax forms 2011 Because he does not meet the gross income test (explained later under Qualifying Relative), he is not your qualifying relative. Irs income tax forms 2011 As a result, he is not your qualifying person for head of household purposes. Irs income tax forms 2011 Example 3—girlfriend. Irs income tax forms 2011 Your girlfriend lived with you all year. Irs income tax forms 2011 Even though she may be your qualifying relative if the gross income and support tests (explained later) are met, she is not your qualifying person for head of household purposes because she is not related to you in one of the ways listed under Relatives who do not have to live with you . Irs income tax forms 2011 See Table 4. Irs income tax forms 2011 Example 4—girlfriend's child. Irs income tax forms 2011 The facts are the same as in Example 3 except your girlfriend's 10-year-old son also lived with you all year. Irs income tax forms 2011 He is not your qualifying child and, because he is your girlfriend's qualifying child, he is not your qualifying relative (see Not a Qualifying Child Test , later). Irs income tax forms 2011 As a result, he is not your qualifying person for head of household purposes. Irs income tax forms 2011 Home of qualifying person. Irs income tax forms 2011    Generally, the qualifying person must live with you for more than half of the year. Irs income tax forms 2011 Special rule for parent. Irs income tax forms 2011    If your qualifying person is your father or mother, you may be eligible to file as head of household even if your father or mother does not live with you. Irs income tax forms 2011 However, you must be able to claim an exemption for your father or mother. Irs income tax forms 2011 Also, you must pay more than half the cost of keeping up a home that was the main home for the entire year for your father or mother. Irs income tax forms 2011   You are keeping up a main home for your father or mother if you pay more than half the cost of keeping your parent in a rest home or home for the elderly. Irs income tax forms 2011 Death or birth. Irs income tax forms 2011    You may be eligible to file as head of household even if the qualifying person who qualifies you for this filing status is born or dies during the year. Irs income tax forms 2011 To qualify you for head of household filing status, the qualifying person (as defined in Table 4) must be one of the following. Irs income tax forms 2011 Your qualifying child or qualifying relative who lived with you for more than half the part of the year he or she was alive. Irs income tax forms 2011 Your parent for whom you paid, for the entire part of the year he or she was alive, more than half the cost of keeping up the home he or she lived in. Irs income tax forms 2011 Example. Irs income tax forms 2011 You are unmarried. Irs income tax forms 2011 Your mother, for whom you can claim an exemption, lived in an apartment by herself. Irs income tax forms 2011 She died on September 2. Irs income tax forms 2011 The cost of the upkeep of her apartment for the year until her death was $6,000. Irs income tax forms 2011 You paid $4,000 and your brother paid $2,000. Irs income tax forms 2011 Your brother made no other payments towards your mother's support. Irs income tax forms 2011 Your mother had no income. Irs income tax forms 2011 Because you paid more than half of the cost of keeping up your mother's apartment from January 1 until her death, and you can claim an exemption for her, you can file as a head of household. Irs income tax forms 2011 Temporary absences. Irs income tax forms 2011    You and your qualifying person are considered to live together even if one or both of you are temporarily absent from your home due to special circumstances such as illness, education, business, vacation, or military service. Irs income tax forms 2011 It must be reasonable to assume the absent person will return to the home after the temporary absence. Irs income tax forms 2011 You must continue to keep up the home during the absence. Irs income tax forms 2011 Kidnapped child. Irs income tax forms 2011    You may be eligible to file as head of household even if the child who is your qualifying person has been kidnapped. Irs income tax forms 2011 You can claim head of household filing status if all the following statements are true. Irs income tax forms 2011 The child is presumed by law enforcement authorities to have been kidnapped by someone who is not a member of your family or the child's family. Irs income tax forms 2011 In the year of the kidnapping, the child lived with you for more than half the part of the year before the kidnapping. Irs income tax forms 2011 You would have qualified for head of household filing status if the child had not been kidnapped. Irs income tax forms 2011   This treatment applies for all years until the earliest of: The year the child is returned, The year there is a determination that the child is dead, or The year the child would have reached age 18. Irs income tax forms 2011 Qualifying Widow(er) With Dependent Child If your spouse died in 2013, you can use married filing jointly as your filing status for 2013 if you otherwise qualify to use that status. Irs income tax forms 2011 The year of death is the last year for which you can file jointly with your deceased spouse. Irs income tax forms 2011 See Married Filing Jointly , earlier. Irs income tax forms 2011 You may be eligible to use qualifying widow(er) with dependent child as your filing status for 2 years following the year your spouse died. Irs income tax forms 2011 For example, if your spouse died in 2012 and you have not remarried, you may be able to use this filing status for 2013 and 2014. Irs income tax forms 2011 The rules for using this filing status are explained in detail here. Irs income tax forms 2011 This filing status entitles you to use joint return tax rates and the highest standard deduction amount (if you do not itemize deductions). Irs income tax forms 2011 It does not entitle you to file a joint return. Irs income tax forms 2011 How to file. Irs income tax forms 2011    If you file as a qualifying widow(er) with dependent child, you can use Form 1040. Irs income tax forms 2011 If you also have taxable income of less than $100,000 and meet certain other conditions, you may be able to file Form 1040A. Irs income tax forms 2011 Check the box on line 5 of either form. Irs income tax forms 2011 Use the Married filing jointly column of the Tax Table or Section B of the Tax Computation Worksheet to figure your tax. Irs income tax forms 2011 Table 4. Irs income tax forms 2011 Who Is a Qualifying Person Qualifying You To File as Head of Household?1 See the text of this publication for the other requirements you must meet to claim head of household filing status. Irs income tax forms 2011 IF the person is your . Irs income tax forms 2011 . Irs income tax forms 2011 . Irs income tax forms 2011   AND . Irs income tax forms 2011 . Irs income tax forms 2011 . Irs income tax forms 2011   THEN that person is . Irs income tax forms 2011 . Irs income tax forms 2011 . Irs income tax forms 2011 qualifying child (such as a son, daughter, or grandchild who lived with you more than half the year and meets certain other tests)2   he or she is single   a qualifying person, whether or not you can claim an exemption for the person. Irs income tax forms 2011   he or she is married and you can claim an exemption for him or her   a qualifying person. Irs income tax forms 2011   he or she is married and you cannot claim an exemption for him or her   not a qualifying person. Irs income tax forms 2011 3 qualifying relative4 who is your father or mother   you can claim an exemption for him or her5   a qualifying person. Irs income tax forms 2011 6   you cannot claim an exemption for him or her   not a qualifying person. Irs income tax forms 2011 qualifying relative4 other than your father or mother (such as a grandparent, brother, or sister who meets certain tests). Irs income tax forms 2011   he or she lived with you more than half the year, and he or she is related to you in one of the ways listed under Relatives who do not have to live with you , later, and you can claim an exemption for him or her5   a qualifying person. Irs income tax forms 2011   he or she did not live with you more than half the year   not a qualifying person. Irs income tax forms 2011   he or she is not related to you in one of the ways listed under Relatives who do not have to live with you , later, and is your qualifying relative only because he or she lived with you all year as a member of your household   not a qualifying person. Irs income tax forms 2011   you cannot claim an exemption for him or her   not a qualifying person. Irs income tax forms 2011 1 A person cannot qualify more than one taxpayer to use the head of household filing status for the year. Irs income tax forms 2011 2 The term “qualifying child” is defined under Exemptions for Dependents, later. Irs income tax forms 2011 Note: If you are a noncustodial parent, the term “qualifying child” for head of household filing status does not include a child who is your qualifying child for exemption purposes only because of the rules described under Children of divorced or separated parents (or parents who live apart) under Qualifying Child, later. Irs income tax forms 2011 If you are the custodial parent and those rules apply, the child generally is your qualifying child for head of household filing status even though the child is not a qualifying child for whom you can claim an exemption. Irs income tax forms 2011 3 This person is a qualifying person if the only reason you cannot claim the exemption is that you can be claimed as a dependent on someone else's return. Irs income tax forms 2011 4 The term “qualifying relative” is defined under Exemptions for Dependents, later. Irs income tax forms 2011 5 If you can claim an exemption for a person only because of a multiple support agreement, that person is not a qualifying person. Irs income tax forms 2011 See Multiple Support Agreement . Irs income tax forms 2011 6 See Special rule for parent . Irs income tax forms 2011 Eligibility rules. Irs income tax forms 2011    You are eligible to file your 2013 return as a qualifying widow(er) with dependent child if you meet all the following tests. Irs income tax forms 2011 You were entitled to file a joint return with your spouse for the year your spouse died. Irs income tax forms 2011 It does not matter whether you actually filed a joint return. Irs income tax forms 2011 Your spouse died in 2011 or 2012 and you did not remarry before the end of 2013. Irs income tax forms 2011 You have a child or stepchild for whom you can claim an exemption. Irs income tax forms 2011 This does not include a foster child. Irs income tax forms 2011 This child lived in your home all year, except for temporary absences. Irs income tax forms 2011 See Temporary absences , earlier, under Head of Household. Irs income tax forms 2011 There are also exceptions, described later, for a child who was born or died during the year and for a kidnapped child. Irs income tax forms 2011 You paid more than half the cost of keeping up a home for the year. Irs income tax forms 2011 See Keeping Up a Home , earlier, under Head of Household. Irs income tax forms 2011 Example. Irs income tax forms 2011 John's wife died in 2011. Irs income tax forms 2011 John has not remarried. Irs income tax forms 2011 He has continued during 2012 and 2013 to keep up a home for himself and his child, who lives with him and for whom he can claim an exemption. Irs income tax forms 2011 For 2011 he was entitled to file a joint return for himself and his deceased wife. Irs income tax forms 2011 For 2012 and 2013, he can file as a qualifying widower with a dependent child. Irs income tax forms 2011 After 2013, he can file as head of household if he qualifies. Irs income tax forms 2011 Death or birth. Irs income tax forms 2011    You may be eligible to file as a qualifying widow(er) with dependent child if the child who qualifies you for this filing status is born or dies during the year. Irs income tax forms 2011 You must have provided more than half of the cost of keeping up a home that was the child's main home during the entire part of the year he or she was alive. Irs income tax forms 2011 Kidnapped child. Irs income tax forms 2011    You may be eligible to file as a qualifying widow(er) with dependent child even if the child who qualifies you for this filing status has been kidnapped. Irs income tax forms 2011 You can claim qualifying widow(er) with dependent child filing status if all the following statements are true. Irs income tax forms 2011 The child is presumed by law enforcement authorities to have been kidnapped by someone who is not a member of your family or the child's family. Irs income tax forms 2011 In the year of the kidnapping, the child lived with you for more than half the part of the year before the kidnapping. Irs income tax forms 2011 You would have qualified for qualifying widow(er) with dependent child filing status if the child had not been kidnapped. Irs income tax forms 2011 As mentioned earlier, this filing status is available for only 2 years following the year your spouse died. Irs income tax forms 2011 Exemptions Exemptions reduce your taxable income. Irs income tax forms 2011 You can deduct $3,900 for each exemption you claim in 2013. Irs income tax forms 2011 If you are entitled to two exemptions for 2013, you can deduct $7,800 ($3,900 × 2). Irs income tax forms 2011 But you may lose the benefit of part or all of your exemptions if your adjusted gross income is above a certain amount. Irs income tax forms 2011 See Phaseout of Exemptions , later. Irs income tax forms 2011 Types of exemptions. Irs income tax forms 2011    There are two types of exemptions you may be able to take: Personal exemptions for yourself and your spouse, and Exemptions for dependents (dependency exemptions). Irs income tax forms 2011 While each is worth the same amount ($3,900 for 2013), different rules, discussed later, apply to each type. Irs income tax forms 2011 Dependent cannot claim a personal exemption. Irs income tax forms 2011    If you are entitled to claim an exemption for a dependent (such as your child), that dependent cannot claim a personal exemption on his or her own tax return. Irs income tax forms 2011 How to claim exemptions. Irs income tax forms 2011    How you claim an exemption on your tax return depends on which form you file. Irs income tax forms 2011 Form 1040EZ filers. Irs income tax forms 2011    If you file Form 1040EZ, the exemption amount is combined with the standard deduction and entered on line 5. Irs income tax forms 2011 Form 1040A filers. Irs income tax forms 2011    If you file Form 1040A, complete lines 6a through 6d. Irs income tax forms 2011 The total number of exemptions you can claim is the total in the box on line 6d. Irs income tax forms 2011 Also complete line 26. Irs income tax forms 2011 Form 1040 filers. Irs income tax forms 2011    If you file Form 1040, complete lines 6a through 6d. Irs income tax forms 2011 The total number of exemptions you can claim is the total in the box on line 6d. Irs income tax forms 2011 Also complete line 42. Irs income tax forms 2011 If your adjusted gross income is more than $150,000, see Phaseout of Exemptions , later. Irs income tax forms 2011 U. Irs income tax forms 2011 S. Irs income tax forms 2011 citizen or resident alien. Irs income tax forms 2011    If you are a U. Irs income tax forms 2011 S. Irs income tax forms 2011 citizen, U. Irs income tax forms 2011 S. Irs income tax forms 2011 resident alien, U. Irs income tax forms 2011 S. Irs income tax forms 2011 national (defined later) or a resident of Canada or Mexico, you may qualify for any of the exemptions discussed here. Irs income tax forms 2011 Nonresident aliens. Irs income tax forms 2011    Generally, if you are a nonresident alien (other than a resident of Canada or Mexico, or certain residents of India or Korea), you can qualify for only one personal exemption for yourself. Irs income tax forms 2011 You cannot claim exemptions for a spouse or dependents. Irs income tax forms 2011   These restrictions do not apply if you are a nonresident alien married to a U. Irs income tax forms 2011 S. Irs income tax forms 2011 citizen or resident alien and have chosen to be treated as a resident of the United States. Irs income tax forms 2011 More information. Irs income tax forms 2011    For more information on exemptions if you are a nonresident alien, see chapter 5 in Publication 519. Irs income tax forms 2011 Dual-status taxpayers. Irs income tax forms 2011    If you have been both a nonresident alien and a resident alien in the same tax year, you should see Publication 519 for information on determining your exemptions. Irs income tax forms 2011 Personal Exemptions You are generally allowed one exemption for yourself. Irs income tax forms 2011 If you are married, you may be allowed one exemption for your spouse. Irs income tax forms 2011 These are called personal exemptions. Irs income tax forms 2011 Your Own Exemption You can take one exemption for yourself unless you can be claimed as a dependent by another taxpayer. Irs income tax forms 2011 If another taxpayer is entitled to claim you as a dependent, you cannot take an exemption for yourself even if the other taxpayer does not actually claim you as a dependent. Irs income tax forms 2011 Your Spouse's Exemption Your spouse is never considered your dependent. Irs income tax forms 2011 Joint return. Irs income tax forms 2011    On a joint return, you can claim one exemption for yourself and one for your spouse. Irs income tax forms 2011 Separate return. Irs income tax forms 2011    If you file a separate return, you can claim an exemption for your spouse only if your spouse had no gross income, is not filing a return, and was not the dependent of another taxpayer. Irs income tax forms 2011 This is true even if the other taxpayer does not actually claim your spouse as a dependent. Irs income tax forms 2011 You can claim an exemption for your spouse even if he or she is a nonresident alien; in that case, your spouse must have no gross income for U. Irs income tax forms 2011 S. Irs income tax forms 2011 tax purposes and satisfy the other conditions listed above. Irs income tax forms 2011 Head of household. Irs income tax forms 2011    If you qualify for head of household filing status because you are considered unmarried, you can claim an exemption for your spouse if the conditions described in the preceding paragraph are satisfied. Irs income tax forms 2011   To claim the exemption for your spouse, check the box on line 6b of Form 1040 or Form 1040A and enter the name of your spouse in the space to the right of the box. Irs income tax forms 2011 Enter the SSN or ITIN of your spouse in the space provided at the top of Form 1040 or Form 1040A. Irs income tax forms 2011 Death of spouse. Irs income tax forms 2011    If your spouse died during the year and you file a joint return for yourself and your deceased spouse, you generally can claim your spouse's exemption under the rules just explained in Joint return . Irs income tax forms 2011 If you file a separate return for the year, you may be able to claim your spouse's exemption under the rules just described in Separate return . Irs income tax forms 2011   If you remarried during the year, you cannot take an exemption for your deceased spouse. Irs income tax forms 2011   If you are a surviving spouse without gross income and you remarry in the year your spouse died, you can be claimed as an exemption on both the final separate return of your deceased spouse and the separate return of your new spouse for that year. Irs income tax forms 2011 If you file a joint return with your new spouse, you can be claimed as an exemption only on that return. Irs income tax forms 2011 Divorced or separated spouse. Irs income tax forms 2011    If you obtained a final decree of divorce or separate maintenance during the year, you cannot take your former spouse's exemption. Irs income tax forms 2011 This rule applies even if you provided all of your former spouse's support. Irs income tax forms 2011 Exemptions for Dependents You are allowed one exemption for each person you can claim as a dependent. Irs income tax forms 2011 You can claim an exemption for a dependent even if your dependent files a return. Irs income tax forms 2011 The term “dependent” means: A qualifying child, or A qualifying relative. Irs income tax forms 2011 The terms “ qualifying child ” and “ qualifying relative ” are defined later. Irs income tax forms 2011 You can claim an exemption for a qualifying child or qualifying relative only if these three tests are met. Irs income tax forms 2011 Dependent taxpayer test. Irs income tax forms 2011 Joint return test. Irs income tax forms 2011 Citizen or resident test. Irs income tax forms 2011 These three tests are explained in detail later. Irs income tax forms 2011 All the requirements for claiming an exemption for a dependent are summarized in Table 5. Irs income tax forms 2011 Table 5. Irs income tax forms 2011 Overview of the Rules for Claiming an Exemption for a Dependent This table is only an overview of the rules. Irs income tax forms 2011 For details, see the rest of this publication. Irs income tax forms 2011 You cannot claim any dependents if you, or your spouse if filing jointly, could be claimed as a dependent by another taxpayer. Irs income tax forms 2011   You cannot claim a married person who files a joint return as a dependent unless that joint return is filed only to claim a refund of withheld income tax or estimated tax paid. Irs income tax forms 2011   You cannot claim a person as a dependent unless that person is a U. Irs income tax forms 2011 S. Irs income tax forms 2011 citizen, U. Irs income tax forms 2011 S. Irs income tax forms 2011 resident alien, U. Irs income tax forms 2011 S. Irs income tax forms 2011 national, or a resident of Canada or Mexico. Irs income tax forms 2011 1  You cannot claim a person as a dependent unless that person is your qualifying child or qualifying relative. Irs income tax forms 2011   Tests To Be a Qualifying Child Tests To Be a Qualifying Relative The child must be your son, daughter, stepchild, foster child, brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them. Irs income tax forms 2011   The child must be (a) under age 19 at the end of the year and younger than you (or your spouse if filing jointly), (b) under age 24 at the end of the year, a student, and younger than you (or your spouse if filing jointly), or (c) any age if permanently and totally disabled. Irs income tax forms 2011   The child must have lived with you for more than half of the year. Irs income tax forms 2011 2  The child must not have provided more than half of his or her own support for the year. Irs income tax forms 2011   The child is not filing a joint return for the year (unless that joint return is filed only to claim a refund of withheld income tax or estimated tax paid). Irs income tax forms 2011  If the child meets the rules to be a qualifying child of more than one person, only one person can actually treat the child as a qualifying child. Irs income tax forms 2011 See the Special Rule for Qualifying Child of More Than One Person described later to find out which person is the person entitled to claim the child as a qualifying child. Irs income tax forms 2011 The person cannot be your qualifying child or the qualifying child of any other taxpayer. Irs income tax forms 2011   The person either (a) must be related to you in one of the ways listed under Relatives who do not have to live with you , or (b) must live with you all year as a member of your household2 (and your relationship must not violate local law). Irs income tax forms 2011   The person's gross income for the year must be less than $3,900. Irs income tax forms 2011 3  You must provide more than half of the person's total support for the year. Irs income tax forms 2011 4  1 There is an exception for certain adopted children. Irs income tax forms 2011 2 There are exceptions for temporary absences, children who were born or died during the year, children of divorced or separated parents (or parents who live apart), and kidnapped children. Irs income tax forms 2011 3 There is an exception if the person is disabled and has income from a sheltered workshop. Irs income tax forms 2011 4 There are exceptions for multiple support agreements, children of divorced or separated parents (or parents who live apart), and kidnapped children. Irs income tax forms 2011 Dependent not allowed a personal exemption. Irs income tax forms 2011 If you can claim an exemption for your dependent, the dependent cannot claim his or her own personal exemption on his or her own tax return. Irs income tax forms 2011 This is true even if you do not claim the dependent's exemption on your return. Irs income tax forms 2011 It is also true if the dependent's exemption on your return is reduced or eliminated under the phaseout rule described under Phaseout of Exemptions, later. Irs income tax forms 2011 Housekeepers, maids, or servants. Irs income tax forms 2011    If these people work for you, you cannot claim exemptions for them. Irs income tax forms 2011 Child tax credit. Irs income tax forms 2011    You may be entitled to a child tax credit for each qualifying child who was under age 17 at the end of the year if you claimed an exemption for that child. Irs income tax forms 2011 For more information, see the instructions for the tax form you file (Form 1040 or 1040A). Irs income tax forms 2011 Dependent Taxpayer Test If you can be claimed as a dependent by another person, you cannot claim anyone else as a dependent. Irs income tax forms 2011 Even if you have a qualifying child or qualifying relative, you cannot claim that person as a dependent. Irs income tax forms 2011 If you are filing a joint return and your spouse can be claimed as a dependent by someone else, you and your spouse cannot claim any dependents on your joint return. Irs income tax forms 2011 Joint Return Test You generally cannot claim a married person as a dependent if he or she files a joint return. Irs income tax forms 2011 Exception. Irs income tax forms 2011    You can claim an exemption for a person who files a joint return if that person and his or her spouse file the joint return only to claim a refund of income tax withheld or estimated tax paid. Irs income tax forms 2011 Example 1—child files joint return. Irs income tax forms 2011 You supported your 18-year-old daughter, and she lived with you all year while her husband was in the Armed Forces. Irs income tax forms 2011 He earned $25,000 for the year. Irs income tax forms 2011 The couple files a joint return. Irs income tax forms 2011 You cannot take an exemption for your daughter. Irs income tax forms 2011 Example 2—child files joint return only as claim for refund of withheld tax. Irs income tax forms 2011 Your 18-year-old son and his 17-year-old wife had $800 of wages from part-time jobs and no other income. Irs income tax forms 2011 Neither is required to file a tax return. Irs income tax forms 2011 They do not have a child. Irs income tax forms 2011 Taxes were taken out of their pay so they file a joint return only to get a refund of the withheld taxes. Irs income tax forms 2011 The exception to the joint return test applies, so you are not disqualified from claiming an exemption for each of them just because they file a joint return. Irs income tax forms 2011 You can claim exemptions for each of them if all the other tests to do so are met. Irs income tax forms 2011 Example 3—child files joint return to claim American opportunity credit. Irs income tax forms 2011 The facts are the same as in Example 2 except no taxes were taken out of your son's pay. Irs income tax forms 2011 He and his wife are not required to file a tax return. Irs income tax forms 2011 However, they file a joint return to claim an American opportunity credit of $124 and get a refund of that amount. Irs income tax forms 2011 Because claiming the American opportunity credit is their reason for filing the return, they are not filing it only to get a refund of income