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Irs Tax Form 1120 For 2012

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Irs Tax Form 1120 For 2012

Irs tax form 1120 for 2012 1. Irs tax form 1120 for 2012   Traditional IRAs Table of Contents What's New for 2013 What's New for 2014 Introduction Who Can Open a Traditional IRA?What Is Compensation? When Can a Traditional IRA Be Opened? How Can a Traditional IRA Be Opened?Individual Retirement Account Individual Retirement Annuity Individual Retirement Bonds Simplified Employee Pension (SEP) Employer and Employee Association Trust Accounts Required Disclosures How Much Can Be Contributed?Limit. Irs tax form 1120 for 2012 When repayment contributions can be made. Irs tax form 1120 for 2012 No deduction. Irs tax form 1120 for 2012 Reserve component. Irs tax form 1120 for 2012 Figuring your IRA deduction. Irs tax form 1120 for 2012 Reporting the repayment. Irs tax form 1120 for 2012 Example. Irs tax form 1120 for 2012 General Limit Kay Bailey Hutchison Spousal IRA Limit Filing Status Less Than Maximum Contributions More Than Maximum Contributions When Can Contributions Be Made? How Much Can You Deduct?Kay Bailey Hutchison Spousal IRA. Irs tax form 1120 for 2012 Are You Covered by an Employer Plan? Limit if Covered by Employer Plan Reporting Deductible Contributions Nondeductible Contributions Examples — Worksheet for Reduced IRA Deduction for 2013 What if You Inherit an IRA?Treating it as your own. Irs tax form 1120 for 2012 Can You Move Retirement Plan Assets?Transfers to Roth IRAs from other retirement plans. Irs tax form 1120 for 2012 Trustee-to-Trustee Transfer Rollovers Transfers Incident To Divorce Converting From Any Traditional IRA Into a Roth IRA Recharacterizations When Can You Withdraw or Use Assets?Contributions Returned Before Due Date of Return When Must You Withdraw Assets? (Required Minimum Distributions)IRA Owners IRA Beneficiaries Which Table Do You Use To Determine Your Required Minimum Distribution? What Age(s) Do You Use With the Table(s)? Miscellaneous Rules for Required Minimum Distributions Are Distributions Taxable?January 2013 QCDs treated as made in 2012. Irs tax form 1120 for 2012 2013 Reporting. Irs tax form 1120 for 2012 Additional reporting requirements if you made the election to treat a January 2013 QCD as made in 2012. Irs tax form 1120 for 2012 One-time transfer. Irs tax form 1120 for 2012 Testing period rules apply. Irs tax form 1120 for 2012 More information. Irs tax form 1120 for 2012 Distributions Fully or Partly Taxable Figuring the Nontaxable and Taxable Amounts Recognizing Losses on Traditional IRA Investments Other Special IRA Distribution Situations Reporting and Withholding Requirements for Taxable Amounts What Acts Result in Penalties or Additional Taxes?Prohibited Transactions Investment in Collectibles Excess Contributions Early Distributions Excess Accumulations (Insufficient Distributions) Reporting Additional Taxes What's New for 2013 Traditional IRA contribution and deduction limit. Irs tax form 1120 for 2012  The contribution limit to your traditional IRA for 2013 will be increased to the smaller of the following amounts: $5,500, or Your taxable compensation for the year. Irs tax form 1120 for 2012 If you were age 50 or older before 2014, the most that can be contributed to your traditional IRA for 2013 will be the smaller of the following amounts: $6,500, or Your taxable compensation for the year. Irs tax form 1120 for 2012 For more information, see How Much Can Be Contributed? in this chapter. Irs tax form 1120 for 2012 Modified AGI limit for traditional IRA contributions increased. Irs tax form 1120 for 2012  For 2013, if you were covered by a retirement plan at work, your deduction for contributions to a traditional IRA is reduced (phased out) if your modified AGI is: More than $95,000 but less than $115,000 for a married couple filing a joint return or a qualifying widow(er), More than $59,000 but less than $69,000 for a single individual or head of household, or Less than $10,000 for a married individual filing a separate return. Irs tax form 1120 for 2012 If you either lived with your spouse or file a joint return, and your spouse was covered by a retirement plan at work, but you were not, your deduction is phased out if your modified AGI is more than $178,000 but less than $188,000. Irs tax form 1120 for 2012 If your modified AGI is $188,000 or more, you cannot take a deduction for contributions to a traditional IRA. Irs tax form 1120 for 2012 See How Much Can You Deduct? in this chapter. Irs tax form 1120 for 2012 Net Investment Income Tax. Irs tax form 1120 for 2012  For purposes of the Net Investment Income Tax (NIIT), net investment income does not include distributions from a qualified retirement plan (for example, 401(a), 403(a), 403(b), 457(b) plans, and IRAs). Irs tax form 1120 for 2012 However, these distributions are taken into account when determining the modified adjusted gross income threshold. Irs tax form 1120 for 2012 Distributions from a nonqualified retirement plan are included in net investment income. Irs tax form 1120 for 2012 See Form 8960, Net Investment Income Tax—Individuals, Estates, and Trusts, and its instructions for more information. Irs tax form 1120 for 2012 What's New for 2014 Modified AGI limit for traditional IRA contributions increased. Irs tax form 1120 for 2012  For 2014, if you are covered by a retirement plan at work, your deduction for contributions to a traditional IRA is reduced (phased out) if your modified AGI is: More than $96,000 but less than $116,000 for a married couple filing a joint return or a qualifying widow(er), More than $60,000 but less than $70,000 for a single individual or head of household, or Less than $10,000 for a married individual filing a separate return. Irs tax form 1120 for 2012 If you either live with your spouse or file a joint return, and your spouse is covered by a retirement plan at work, but you are not, your deduction is phased out if your modified AGI is more than $181,000 but less than $191,000. Irs tax form 1120 for 2012 If your modified AGI is $191,000 or more, you cannot take a deduction for contributions to a traditional IRA. Irs tax form 1120 for 2012 Introduction This chapter discusses the original IRA. Irs tax form 1120 for 2012 In this publication the original IRA (sometimes called an ordinary or regular IRA) is referred to as a “traditional IRA. Irs tax form 1120 for 2012 ” A traditional IRA is any IRA that is not a Roth IRA or a SIMPLE IRA. Irs tax form 1120 for 2012 The following are two advantages of a traditional IRA: You may be able to deduct some or all of your contributions to it, depending on your circumstances. Irs tax form 1120 for 2012 Generally, amounts in your IRA, including earnings and gains, are not taxed until they are distributed. Irs tax form 1120 for 2012 Who Can Open a Traditional IRA? You can open and make contributions to a traditional IRA if: You (or, if you file a joint return, your spouse) received taxable compensation during the year, and You were not age 70½ by the end of the year. Irs tax form 1120 for 2012 You can have a traditional IRA whether or not you are covered by any other retirement plan. Irs tax form 1120 for 2012 However, you may not be able to deduct all of your contributions if you or your spouse is covered by an employer retirement plan. Irs tax form 1120 for 2012 See How Much Can You Deduct , later. Irs tax form 1120 for 2012 Both spouses have compensation. Irs tax form 1120 for 2012   If both you and your spouse have compensation and are under age 70½, each of you can open an IRA. Irs tax form 1120 for 2012 You cannot both participate in the same IRA. Irs tax form 1120 for 2012 If you file a joint return, only one of you needs to have compensation. Irs tax form 1120 for 2012 What Is Compensation? Generally, compensation is what you earn from working. Irs tax form 1120 for 2012 For a summary of what compensation does and does not include, see Table 1-1. Irs tax form 1120 for 2012 Compensation includes all of the items discussed next (even if you have more than one type). Irs tax form 1120 for 2012 Wages, salaries, etc. Irs tax form 1120 for 2012   Wages, salaries, tips, professional fees, bonuses, and other amounts you receive for providing personal services are compensation. Irs tax form 1120 for 2012 The IRS treats as compensation any amount properly shown in box 1 (Wages, tips, other compensation) of Form W-2, Wage and Tax Statement, provided that amount is reduced by any amount properly shown in box 11 (Nonqualified plans). Irs tax form 1120 for 2012 Scholarship and fellowship payments are compensation for IRA purposes only if shown in box 1 of Form W-2. Irs tax form 1120 for 2012 Commissions. Irs tax form 1120 for 2012   An amount you receive that is a percentage of profits or sales price is compensation. Irs tax form 1120 for 2012 Self-employment income. Irs tax form 1120 for 2012   If you are self-employed (a sole proprietor or a partner), compensation is the net earnings from your trade or business (provided your personal services are a material income-producing factor) reduced by the total of: The deduction for contributions made on your behalf to retirement plans, and The deduction allowed for the deductible part of your self-employment taxes. Irs tax form 1120 for 2012   Compensation includes earnings from self-employment even if they are not subject to self-employment tax because of your religious beliefs. Irs tax form 1120 for 2012 Self-employment loss. Irs tax form 1120 for 2012   If you have a net loss from self-employment, do not subtract the loss from your salaries or wages when figuring your total compensation. Irs tax form 1120 for 2012 Alimony and separate maintenance. Irs tax form 1120 for 2012   For IRA purposes, compensation includes any taxable alimony and separate maintenance payments you receive under a decree of divorce or separate maintenance. Irs tax form 1120 for 2012 Nontaxable combat pay. Irs tax form 1120 for 2012   If you were a member of the U. Irs tax form 1120 for 2012 S. Irs tax form 1120 for 2012 Armed Forces, compensation includes any nontaxable combat pay you received. Irs tax form 1120 for 2012 This amount should be reported in box 12 of your 2013 Form W-2 with code Q. Irs tax form 1120 for 2012 Table 1-1. Irs tax form 1120 for 2012 Compensation for Purposes of an IRA Includes . Irs tax form 1120 for 2012 . Irs tax form 1120 for 2012 . Irs tax form 1120 for 2012 Does not include . Irs tax form 1120 for 2012 . Irs tax form 1120 for 2012 . Irs tax form 1120 for 2012   earnings and profits from property. Irs tax form 1120 for 2012 wages, salaries, etc. Irs tax form 1120 for 2012     interest and dividend income. Irs tax form 1120 for 2012 commissions. Irs tax form 1120 for 2012     pension or annuity income. Irs tax form 1120 for 2012 self-employment income. Irs tax form 1120 for 2012     deferred compensation. Irs tax form 1120 for 2012 alimony and separate maintenance. Irs tax form 1120 for 2012     income from certain  partnerships. Irs tax form 1120 for 2012 nontaxable combat pay. Irs tax form 1120 for 2012     any amounts you exclude from income. Irs tax form 1120 for 2012     What Is Not Compensation? Compensation does not include any of the following items. Irs tax form 1120 for 2012 Earnings and profits from property, such as rental income, interest income, and dividend income. Irs tax form 1120 for 2012 Pension or annuity income. Irs tax form 1120 for 2012 Deferred compensation received (compensation payments postponed from a past year). Irs tax form 1120 for 2012 Income from a partnership for which you do not provide services that are a material income-producing factor. Irs tax form 1120 for 2012 Conservation Reserve Program (CRP) payments reported on Schedule SE (Form 1040), line 1b. Irs tax form 1120 for 2012 Any amounts (other than combat pay) you exclude from income, such as foreign earned income and housing costs. Irs tax form 1120 for 2012 When Can a Traditional IRA Be Opened? You can open a traditional IRA at any time. Irs tax form 1120 for 2012 However, the time for making contributions for any year is limited. Irs tax form 1120 for 2012 See When Can Contributions Be Made , later. Irs tax form 1120 for 2012 How Can a Traditional IRA Be Opened? You can open different kinds of IRAs with a variety of organizations. Irs tax form 1120 for 2012 You can open an IRA at a bank or other financial institution or with a mutual fund or life insurance company. Irs tax form 1120 for 2012 You can also open an IRA through your stockbroker. Irs tax form 1120 for 2012 Any IRA must meet Internal Revenue Code requirements. Irs tax form 1120 for 2012 The requirements for the various arrangements are discussed below. Irs tax form 1120 for 2012 Kinds of traditional IRAs. Irs tax form 1120 for 2012   Your traditional IRA can be an individual retirement account or annuity. Irs tax form 1120 for 2012 It can be part of either a simplified employee pension (SEP) or an employer or employee association trust account. Irs tax form 1120 for 2012 Individual Retirement Account An individual retirement account is a trust or custodial account set up in the United States for the exclusive benefit of you or your beneficiaries. Irs tax form 1120 for 2012 The account is created by a written document. Irs tax form 1120 for 2012 The document must show that the account meets all of the following requirements. Irs tax form 1120 for 2012 The trustee or custodian must be a bank, a federally insured credit union, a savings and loan association, or an entity approved by the IRS to act as trustee or custodian. Irs tax form 1120 for 2012 The trustee or custodian generally cannot accept contributions of more than the deductible amount for the year. Irs tax form 1120 for 2012 However, rollover contributions and employer contributions to a simplified employee pension (SEP) can be more than this amount. Irs tax form 1120 for 2012 Contributions, except for rollover contributions, must be in cash. Irs tax form 1120 for 2012 See Rollovers , later. Irs tax form 1120 for 2012 You must have a nonforfeitable right to the amount at all times. Irs tax form 1120 for 2012 Money in your account cannot be used to buy a life insurance policy. Irs tax form 1120 for 2012 Assets in your account cannot be combined with other property, except in a common trust fund or common investment fund. Irs tax form 1120 for 2012 You must start receiving distributions by April 1 of the year following the year in which you reach age 70½. Irs tax form 1120 for 2012 See When Must You Withdraw Assets? (Required Minimum Distributions) , later. Irs tax form 1120 for 2012 Individual Retirement Annuity You can open an individual retirement annuity by purchasing an annuity contract or an endowment contract from a life insurance company. Irs tax form 1120 for 2012 An individual retirement annuity must be issued in your name as the owner, and either you or your beneficiaries who survive you are the only ones who can receive the benefits or payments. Irs tax form 1120 for 2012 An individual retirement annuity must meet all the following requirements. Irs tax form 1120 for 2012 Your entire interest in the contract must be nonforfeitable. Irs tax form 1120 for 2012 The contract must provide that you cannot transfer any portion of it to any person other than the issuer. Irs tax form 1120 for 2012 There must be flexible premiums so that if your compensation changes, your payment can also change. Irs tax form 1120 for 2012 This provision applies to contracts issued after November 6, 1978. Irs tax form 1120 for 2012 The contract must provide that contributions cannot be more than the deductible amount for an IRA for the year, and that you must use any refunded premiums to pay for future premiums or to buy more benefits before the end of the calendar year after the year in which you receive the refund. Irs tax form 1120 for 2012 Distributions must begin by April 1 of the year following the year in which you reach age 70½. Irs tax form 1120 for 2012 See When Must You Withdraw Assets? (Required Minimum Distributions) , later. Irs tax form 1120 for 2012 Individual Retirement Bonds The sale of individual retirement bonds issued by the federal government was suspended after April 30, 1982. Irs tax form 1120 for 2012 The bonds have the following features. Irs tax form 1120 for 2012 They stop earning interest when you reach age 70½. Irs tax form 1120 for 2012 If you die, interest will stop 5 years after your death, or on the date you would have reached age 70½, whichever is earlier. Irs tax form 1120 for 2012 You cannot transfer the bonds. Irs tax form 1120 for 2012 If you cash (redeem) the bonds before the year in which you reach age 59½, you may be subject to a 10% additional tax. Irs tax form 1120 for 2012 See Age 59½ Rule under Early Distributions, later. Irs tax form 1120 for 2012 You can roll over redemption proceeds into IRAs. Irs tax form 1120 for 2012 Simplified Employee Pension (SEP) A simplified employee pension (SEP) is a written arrangement that allows your employer to make deductible contributions to a traditional IRA (a SEP IRA) set up for you to receive such contributions. Irs tax form 1120 for 2012 Generally, distributions from SEP IRAs are subject to the withdrawal and tax rules that apply to traditional IRAs. Irs tax form 1120 for 2012 See Publication 560 for more information about SEPs. Irs tax form 1120 for 2012 Employer and Employee Association Trust Accounts Your employer or your labor union or other employee association can set up a trust to provide individual retirement accounts for employees or members. Irs tax form 1120 for 2012 The requirements for individual retirement accounts apply to these traditional IRAs. Irs tax form 1120 for 2012 Required Disclosures The trustee or issuer (sometimes called the sponsor) of your traditional IRA generally must give you a disclosure statement at least 7 days before you open your IRA. Irs tax form 1120 for 2012 However, the sponsor does not have to give you the statement until the date you open (or purchase, if earlier) your IRA, provided you are given at least 7 days from that date to revoke the IRA. Irs tax form 1120 for 2012 The disclosure statement must explain certain items in plain language. Irs tax form 1120 for 2012 For example, the statement should explain when and how you can revoke the IRA, and include the name, address, and telephone number of the person to receive the notice of cancellation. Irs tax form 1120 for 2012 This explanation must appear at the beginning of the disclosure statement. Irs tax form 1120 for 2012 If you revoke your IRA within the revocation period, the sponsor must return to you the entire amount you paid. Irs tax form 1120 for 2012 The sponsor must report on the appropriate IRS forms both your contribution to the IRA (unless it was made by a trustee-to-trustee transfer) and the amount returned to you. Irs tax form 1120 for 2012 These requirements apply to all sponsors. Irs tax form 1120 for 2012 How Much Can Be Contributed? There are limits and other rules that affect the amount that can be contributed to a traditional IRA. Irs tax form 1120 for 2012 These limits and rules are explained below. Irs tax form 1120 for 2012 Community property laws. Irs tax form 1120 for 2012   Except as discussed later under Kay Bailey Hutchison Spousal IRA Limit , each spouse figures his or her limit separately, using his or her own compensation. Irs tax form 1120 for 2012 This is the rule even in states with community property laws. Irs tax form 1120 for 2012 Brokers' commissions. Irs tax form 1120 for 2012   Brokers' commissions paid in connection with your traditional IRA are subject to the contribution limit. Irs tax form 1120 for 2012 For information about whether you can deduct brokers' commissions, see Brokers' commissions , later, under How Much Can You Deduct. Irs tax form 1120 for 2012 Trustees' fees. Irs tax form 1120 for 2012   Trustees' administrative fees are not subject to the contribution limit. Irs tax form 1120 for 2012 For information about whether you can deduct trustees' fees, see Trustees' fees , later, under How Much Can You Deduct. Irs tax form 1120 for 2012 Qualified reservist repayments. Irs tax form 1120 for 2012   If you were a member of a reserve component and you were ordered or called to active duty after September 11, 2001, you may be able to contribute (repay) to an IRA amounts equal to any qualified reservist distributions (defined later under Early Distributions) you received. Irs tax form 1120 for 2012 You can make these repayment contributions even if they would cause your total contributions to the IRA to be more than the general limit on contributions. Irs tax form 1120 for 2012 To be eligible to make these repayment contributions, you must have received a qualified reservist distribution from an IRA or from a section 401(k) or 403(b) plan or a similar arrangement. Irs tax form 1120 for 2012 Limit. Irs tax form 1120 for 2012   Your qualified reservist repayments cannot be more than your qualified reservist distributions, explained under Early Distributions , later. Irs tax form 1120 for 2012 When repayment contributions can be made. Irs tax form 1120 for 2012   You cannot make these repayment contributions later than the date that is 2 years after your active duty period ends. Irs tax form 1120 for 2012 No deduction. Irs tax form 1120 for 2012   You cannot deduct qualified reservist repayments. Irs tax form 1120 for 2012 Reserve component. Irs tax form 1120 for 2012   The term “reserve component” means the: Army National Guard of the United States, Army Reserve, Naval Reserve, Marine Corps Reserve, Air National Guard of the United States, Air Force Reserve, Coast Guard Reserve, or Reserve Corps of the Public Health Service. Irs tax form 1120 for 2012 Figuring your IRA deduction. Irs tax form 1120 for 2012   The repayment of qualified reservist distributions does not affect the amount you can deduct as an IRA contribution. Irs tax form 1120 for 2012 Reporting the repayment. Irs tax form 1120 for 2012   If you repay a qualified reservist distribution, include the amount of the repayment with nondeductible contributions on line 1 of Form 8606. Irs tax form 1120 for 2012 Example. Irs tax form 1120 for 2012   In 2013, your IRA contribution limit is $5,500. Irs tax form 1120 for 2012 However, because of your filing status and AGI, the limit on the amount you can deduct is $3,500. Irs tax form 1120 for 2012 You can make a nondeductible contribution of $2,000 ($5,500 - $3,500). Irs tax form 1120 for 2012 In an earlier year you received a $3,000 qualified reservist distribution, which you would like to repay this year. Irs tax form 1120 for 2012   For 2013, you can contribute a total of $8,500 to your IRA. Irs tax form 1120 for 2012 This is made up of the maximum deductible contribution of $3,500; a nondeductible contribution of $2,000; and a $3,000 qualified reservist repayment. Irs tax form 1120 for 2012 You contribute the maximum allowable for the year. Irs tax form 1120 for 2012 Since you are making a nondeductible contribution ($2,000) and a qualified reservist repayment ($3,000), you must file Form 8606 with your return and include $5,000 ($2,000 + $3,000) on line 1 of Form 8606. Irs tax form 1120 for 2012 The qualified reservist repayment is not deductible. Irs tax form 1120 for 2012 Contributions on your behalf to a traditional IRA reduce your limit for contributions to a Roth IRA. Irs tax form 1120 for 2012 See chapter 2 for information about Roth IRAs. Irs tax form 1120 for 2012 General Limit For 2013, the most that can be contributed to your traditional IRA generally is the smaller of the following amounts: $5,500 ($6,500 if you are age 50 or older), or Your taxable compensation (defined earlier) for the year. Irs tax form 1120 for 2012 Note. Irs tax form 1120 for 2012 This limit is reduced by any contributions to a section 501(c)(18) plan (generally, a pension plan created before June 25, 1959, that is funded entirely by employee contributions). Irs tax form 1120 for 2012 This is the most that can be contributed regardless of whether the contributions are to one or more traditional IRAs or whether all or part of the contributions are nondeductible. Irs tax form 1120 for 2012 (See Nondeductible Contributions , later. Irs tax form 1120 for 2012 ) Qualified reservist repayments do not affect this limit. Irs tax form 1120 for 2012 Examples. Irs tax form 1120 for 2012 George, who is 34 years old and single, earns $24,000 in 2013. Irs tax form 1120 for 2012 His IRA contributions for 2013 are limited to $5,500. Irs tax form 1120 for 2012 Danny, an unmarried college student working part time, earns $3,500 in 2013. Irs tax form 1120 for 2012 His IRA contributions for 2013 are limited to $3,500, the amount of his compensation. Irs tax form 1120 for 2012 More than one IRA. Irs tax form 1120 for 2012   If you have more than one IRA, the limit applies to the total contributions made on your behalf to all your traditional IRAs for the year. Irs tax form 1120 for 2012 Annuity or endowment contracts. Irs tax form 1120 for 2012   If you invest in an annuity or endowment contract under an individual retirement annuity, no more than $5,500 ($6,500 if you are age 50 or older) can be contributed toward its cost for the tax year, including the cost of life insurance coverage. Irs tax form 1120 for 2012 If more than this amount is contributed, the annuity or endowment contract is disqualified. Irs tax form 1120 for 2012 Kay Bailey Hutchison Spousal IRA Limit For 2013, if you file a joint return and your taxable compensation is less than that of your spouse, the most that can be contributed for the year to your IRA is the smaller of the following two amounts: $5,500 ($6,500 if you are age 50 or older), or The total compensation includible in the gross income of both you and your spouse for the year, reduced by the following two amounts. Irs tax form 1120 for 2012 Your spouse's IRA contribution for the year to a traditional IRA. Irs tax form 1120 for 2012 Any contributions for the year to a Roth IRA on behalf of your spouse. Irs tax form 1120 for 2012 This means that the total combined contributions that can be made for the year to your IRA and your spouse's IRA can be as much as $11,000 ($12,000 if only one of you is age 50 or older or $13,000 if both of you are age 50 or older). Irs tax form 1120 for 2012 Note. Irs tax form 1120 for 2012 This traditional IRA limit is reduced by any contributions to a section 501(c)(18) plan (generally, a pension plan created before June 25, 1959, that is funded entirely by employee contributions). Irs tax form 1120 for 2012 Example. Irs tax form 1120 for 2012 Kristin, a full-time student with no taxable compensation, marries Carl during the year. Irs tax form 1120 for 2012 Neither of them was age 50 by the end of 2013. Irs tax form 1120 for 2012 For the year, Carl has taxable compensation of $30,000. Irs tax form 1120 for 2012 He plans to contribute (and deduct) $5,500 to a traditional IRA. Irs tax form 1120 for 2012 If he and Kristin file a joint return, each can contribute $5,500 to a traditional IRA. Irs tax form 1120 for 2012 This is because Kristin, who has no compensation, can add Carl's compensation, reduced by the amount of his IRA contribution ($30,000 − $5,500 = $24,500), to her own compensation (-0-) to figure her maximum contribution to a traditional IRA. Irs tax form 1120 for 2012 In her case, $5,500 is her contribution limit, because $5,500 is less than $24,500 (her compensation for purposes of figuring her contribution limit). Irs tax form 1120 for 2012 Filing Status Generally, except as discussed earlier under Kay Bailey Hutchison Spousal IRA Limit , your filing status has no effect on the amount of allowable contributions to your traditional IRA. Irs tax form 1120 for 2012 However, if during the year either you or your spouse was covered by a retirement plan at work, your deduction may be reduced or eliminated, depending on your filing status and income. Irs tax form 1120 for 2012 See How Much Can You Deduct , later. Irs tax form 1120 for 2012 Example. Irs tax form 1120 for 2012 Tom and Darcy are married and both are 53. Irs tax form 1120 for 2012 They both work and each has a traditional IRA. Irs tax form 1120 for 2012 Tom earned $3,800 and Darcy earned $48,000 in 2013. Irs tax form 1120 for 2012 Because of the Kay Bailey Hutchison Spousal IRA limit rule, even though Tom earned less than $6,500, they can contribute up to $6,500 to his IRA for 2013 if they file a joint return. Irs tax form 1120 for 2012 They can contribute up to $6,500 to Darcy's IRA. Irs tax form 1120 for 2012 If they file separate returns, the amount that can be contributed to Tom's IRA is limited by his earned income, $3,800. Irs tax form 1120 for 2012 Less Than Maximum Contributions If contributions to your traditional IRA for a year were less than the limit, you cannot contribute more after the due date of your return for that year to make up the difference. Irs tax form 1120 for 2012 Example. Irs tax form 1120 for 2012 Rafael, who is 40, earns $30,000 in 2013. Irs tax form 1120 for 2012 Although he can contribute up to $5,500 for 2013, he contributes only $3,000. Irs tax form 1120 for 2012 After April 15, 2014, Rafael cannot make up the difference between his actual contributions for 2013 ($3,000) and his 2013 limit ($5,500). Irs tax form 1120 for 2012 He cannot contribute $2,500 more than the limit for any later year. Irs tax form 1120 for 2012 More Than Maximum Contributions If contributions to your IRA for a year were more than the limit, you can apply the excess contribution in one year to a later year if the contributions for that later year are less than the maximum allowed for that year. Irs tax form 1120 for 2012 However, a penalty or additional tax may apply. Irs tax form 1120 for 2012 See Excess Contributions , later, under What Acts Result in Penalties or Additional Taxes. Irs tax form 1120 for 2012 When Can Contributions Be Made? As soon as you open your traditional IRA, contributions can be made to it through your chosen sponsor (trustee or other administrator). Irs tax form 1120 for 2012 Contributions must be in the form of money (cash, check, or money order). Irs tax form 1120 for 2012 Property cannot be contributed. Irs tax form 1120 for 2012 Although property cannot be contributed, your IRA may invest in certain property. Irs tax form 1120 for 2012 For example, your IRA may purchase shares of stock. Irs tax form 1120 for 2012 For other restrictions on the use of funds in your IRA, see Prohibited Transactions , later in this chapter. Irs tax form 1120 for 2012 You may be able to transfer or roll over certain property from one retirement plan to another. Irs tax form 1120 for 2012 See the discussion of rollovers and other transfers later in this chapter under Can You Move Retirement Plan Assets . Irs tax form 1120 for 2012 You can make a contribution to your IRA by having your income tax refund (or a portion of your refund), if any, paid directly to your traditional IRA, Roth IRA, or SEP IRA. Irs tax form 1120 for 2012 For details, see the instructions for your income tax return or Form 8888, Allocation of Refund (Including Savings Bond Purchases). Irs tax form 1120 for 2012 Contributions can be made to your traditional IRA for each year that you receive compensation and have not reached age 70½. Irs tax form 1120 for 2012 For any year in which you do not work, contributions cannot be made to your IRA unless you receive alimony, nontaxable combat pay, military differential pay, or file a joint return with a spouse who has compensation. Irs tax form 1120 for 2012 See Who Can Open a Traditional IRA , earlier. Irs tax form 1120 for 2012 Even if contributions cannot be made for the current year, the amounts contributed for years in which you did qualify can remain in your IRA. Irs tax form 1120 for 2012 Contributions can resume for any years that you qualify. Irs tax form 1120 for 2012 Contributions must be made by due date. Irs tax form 1120 for 2012   Contributions can be made to your traditional IRA for a year at any time during the year or by the due date for filing your return for that year, not including extensions. Irs tax form 1120 for 2012 For most people, this means that contributions for 2013 must be made by April 15, 2014, and contributions for 2014 must be made by April 15, 2015. Irs tax form 1120 for 2012 Age 70½ rule. Irs tax form 1120 for 2012   Contributions cannot be made to your traditional IRA for the year in which you reach age 70½ or for any later year. Irs tax form 1120 for 2012   You attain age 70½ on the date that is 6 calendar months after the 70th anniversary of your birth. Irs tax form 1120 for 2012 If you were born on or before June 30, 1943, you cannot contribute for 2013 or any later year. Irs tax form 1120 for 2012 Designating year for which contribution is made. Irs tax form 1120 for 2012   If an amount is contributed to your traditional IRA between January 1 and April 15, you should tell the sponsor which year (the current year or the previous year) the contribution is for. Irs tax form 1120 for 2012 If you do not tell the sponsor which year it is for, the sponsor can assume, and report to the IRS, that the contribution is for the current year (the year the sponsor received it). Irs tax form 1120 for 2012 Filing before a contribution is made. Irs tax form 1120 for 2012    You can file your return claiming a traditional IRA contribution before the contribution is actually made. Irs tax form 1120 for 2012 Generally, the contribution must be made by the due date of your return, not including extensions. Irs tax form 1120 for 2012 Contributions not required. Irs tax form 1120 for 2012   You do not have to contribute to your traditional IRA for every tax year, even if you can. Irs tax form 1120 for 2012 How Much Can You Deduct? Generally, you can deduct the lesser of: The contributions to your traditional IRA for the year, or The general limit (or the Kay Bailey Hutchison Spousal IRA limit, if applicable) explained earlier under How Much Can Be Contributed . Irs tax form 1120 for 2012 However, if you or your spouse was covered by an employer retirement plan, you may not be able to deduct this amount. Irs tax form 1120 for 2012 See Limit if Covered by Employer Plan , later. Irs tax form 1120 for 2012 You may be able to claim a credit for contributions to your traditional IRA. Irs tax form 1120 for 2012 For more information, see chapter 4. Irs tax form 1120 for 2012 Trustees' fees. Irs tax form 1120 for 2012   Trustees' administrative fees that are billed separately and paid in connection with your traditional IRA are not deductible as IRA contributions. Irs tax form 1120 for 2012 However, they may be deductible as a miscellaneous itemized deduction on Schedule A (Form 1040). Irs tax form 1120 for 2012 For information about miscellaneous itemized deductions, see Publication 529, Miscellaneous Deductions. Irs tax form 1120 for 2012 Brokers' commissions. Irs tax form 1120 for 2012   These commissions are part of your IRA contribution and, as such, are deductible subject to the limits. Irs tax form 1120 for 2012 Full deduction. Irs tax form 1120 for 2012   If neither you nor your spouse was covered for any part of the year by an employer retirement plan, you can take a deduction for total contributions to one or more of your traditional IRAs of up to the lesser of: $5,500 ($6,500 if you are age 50 or older), or 100% of your compensation. Irs tax form 1120 for 2012   This limit is reduced by any contributions made to a 501(c)(18) plan on your behalf. Irs tax form 1120 for 2012 Kay Bailey Hutchison Spousal IRA. Irs tax form 1120 for 2012   In the case of a married couple with unequal compensation who file a joint return, the deduction for contributions to the traditional IRA of the spouse with less compensation is limited to the lesser of: $5,500 ($6,500 if the spouse with the lower compensation is age 50 or older), or The total compensation includible in the gross income of both spouses for the year reduced by the following three amounts. Irs tax form 1120 for 2012 The IRA deduction for the year of the spouse with the greater compensation. Irs tax form 1120 for 2012 Any designated nondeductible contribution for the year made on behalf of the spouse with the greater compensation. Irs tax form 1120 for 2012 Any contributions for the year to a Roth IRA on behalf of the spouse with the greater compensation. Irs tax form 1120 for 2012   This limit is reduced by any contributions to a section 501(c)(18) plan on behalf of the spouse with the lesser compensation. Irs tax form 1120 for 2012 Note. Irs tax form 1120 for 2012 If you were divorced or legally separated (and did not remarry) before the end of the year, you cannot deduct any contributions to your spouse's IRA. Irs tax form 1120 for 2012 After a divorce or legal separation, you can deduct only the contributions to your own IRA. Irs tax form 1120 for 2012 Your deductions are subject to the rules for single individuals. Irs tax form 1120 for 2012 Covered by an employer retirement plan. Irs tax form 1120 for 2012   If you or your spouse was covered by an employer retirement plan at any time during the year for which contributions were made, your deduction may be further limited. Irs tax form 1120 for 2012 This is discussed later under Limit if Covered by Employer Plan . Irs tax form 1120 for 2012 Limits on the amount you can deduct do not affect the amount that can be contributed. Irs tax form 1120 for 2012 Are You Covered by an Employer Plan? The Form W-2 you receive from your employer has a box used to indicate whether you were covered for the year. Irs tax form 1120 for 2012 The “Retirement Plan” box should be checked if you were covered. Irs tax form 1120 for 2012 Reservists and volunteer firefighters should also see Situations in Which You Are Not Covered , later. Irs tax form 1120 for 2012 If you are not certain whether you were covered by your employer's retirement plan, you should ask your employer. Irs tax form 1120 for 2012 Federal judges. Irs tax form 1120 for 2012   For purposes of the IRA deduction, federal judges are covered by an employer plan. Irs tax form 1120 for 2012 For Which Year(s) Are You Covered? Special rules apply to determine the tax years for which you are covered by an employer plan. Irs tax form 1120 for 2012 These rules differ depending on whether the plan is a defined contribution plan or a defined benefit plan. Irs tax form 1120 for 2012 Tax year. Irs tax form 1120 for 2012   Your tax year is the annual accounting period you use to keep records and report income and expenses on your income tax return. Irs tax form 1120 for 2012 For almost all people, the tax year is the calendar year. Irs tax form 1120 for 2012 Defined contribution plan. Irs tax form 1120 for 2012   Generally, you are covered by a defined contribution plan for a tax year if amounts are contributed or allocated to your account for the plan year that ends with or within that tax year. Irs tax form 1120 for 2012 However, also see Situations in Which You Are Not Covered , later. Irs tax form 1120 for 2012   A defined contribution plan is a plan that provides for a separate account for each person covered by the plan. Irs tax form 1120 for 2012 In a defined contribution plan, the amount to be contributed to each participant's account is spelled out in the plan. Irs tax form 1120 for 2012 The level of benefits actually provided to a participant depends on the total amount contributed to that participant's account and any earnings and losses on those contributions. Irs tax form 1120 for 2012 Types of defined contribution plans include profit-sharing plans, stock bonus plans, and money purchase pension plans. Irs tax form 1120 for 2012 Example. Irs tax form 1120 for 2012 Company A has a money purchase pension plan. Irs tax form 1120 for 2012 Its plan year is from July 1 to June 30. Irs tax form 1120 for 2012 The plan provides that contributions must be allocated as of June 30. Irs tax form 1120 for 2012 Bob, an employee, leaves Company A on December 31, 2012. Irs tax form 1120 for 2012 The contribution for the plan year ending on June 30, 2013, is made February 15, 2014. Irs tax form 1120 for 2012 Because an amount is contributed to Bob's account for the plan year, Bob is covered by the plan for his 2013 tax year. Irs tax form 1120 for 2012   A special rule applies to certain plans in which it is not possible to determine if an amount will be contributed to your account for a given plan year. Irs tax form 1120 for 2012 If, for a plan year, no amounts have been allocated to your account that are attributable to employer contributions, employee contributions, or forfeitures, by the last day of the plan year, and contributions are discretionary for the plan year, you are not covered for the tax year in which the plan year ends. Irs tax form 1120 for 2012 If, after the plan year ends, the employer makes a contribution for that plan year, you are covered for the tax year in which the contribution is made. Irs tax form 1120 for 2012 Example. Irs tax form 1120 for 2012 Mickey was covered by a profit-sharing plan and left the company on December 31, 2012. Irs tax form 1120 for 2012 The plan year runs from July 1 to June 30. Irs tax form 1120 for 2012 Under the terms of the plan, employer contributions do not have to be made, but if they are made, they are contributed to the plan before the due date for filing the company's tax return. Irs tax form 1120 for 2012 Such contributions are allocated as of the last day of the plan year, and allocations are made to the accounts of individuals who have any service during the plan year. Irs tax form 1120 for 2012 As of June 30, 2013, no contributions were made that were allocated to the June 30, 2013, plan year, and no forfeitures had been allocated within the plan year. Irs tax form 1120 for 2012 In addition, as of that date, the company was not obligated to make a contribution for such plan year and it was impossible to determine whether or not a contribution would be made for the plan year. Irs tax form 1120 for 2012 On December 31, 2013, the company decided to contribute to the plan for the plan year ending June 30, 2013. Irs tax form 1120 for 2012 That contribution was made on February 15, 2014. Irs tax form 1120 for 2012 Mickey is an active participant in the plan for his 2014 tax year but not for his 2013 tax year. Irs tax form 1120 for 2012 No vested interest. Irs tax form 1120 for 2012   If an amount is allocated to your account for a plan year, you are covered by that plan even if you have no vested interest in (legal right to) the account. Irs tax form 1120 for 2012 Defined benefit plan. Irs tax form 1120 for 2012   If you are eligible to participate in your employer's defined benefit plan for the plan year that ends within your tax year, you are covered by the plan. Irs tax form 1120 for 2012 This rule applies even if you: Declined to participate in the plan, Did not make a required contribution, or Did not perform the minimum service required to accrue a benefit for the year. Irs tax form 1120 for 2012   A defined benefit plan is any plan that is not a defined contribution plan. Irs tax form 1120 for 2012 In a defined benefit plan, the level of benefits to be provided to each participant is spelled out in the plan. Irs tax form 1120 for 2012 The plan administrator figures the amount needed to provide those benefits and those amounts are contributed to the plan. Irs tax form 1120 for 2012 Defined benefit plans include pension plans and annuity plans. Irs tax form 1120 for 2012 Example. Irs tax form 1120 for 2012 Nick, an employee of Company B, is eligible to participate in Company B's defined benefit plan, which has a July 1 to June 30 plan year. Irs tax form 1120 for 2012 Nick leaves Company B on December 31, 2012. Irs tax form 1120 for 2012 Because Nick is eligible to participate in the plan for its year ending June 30, 2013, he is covered by the plan for his 2013 tax year. Irs tax form 1120 for 2012 No vested interest. Irs tax form 1120 for 2012   If you accrue a benefit for a plan year, you are covered by that plan even if you have no vested interest in (legal right to) the accrual. Irs tax form 1120 for 2012 Situations in Which You Are Not Covered Unless you are covered by another employer plan, you are not covered by an employer plan if you are in one of the situations described below. Irs tax form 1120 for 2012 Social security or railroad retirement. Irs tax form 1120 for 2012   Coverage under social security or railroad retirement is not coverage under an employer retirement plan. Irs tax form 1120 for 2012 Benefits from previous employer's plan. Irs tax form 1120 for 2012   If you receive retirement benefits from a previous employer's plan, you are not covered by that plan. Irs tax form 1120 for 2012 Reservists. Irs tax form 1120 for 2012   If the only reason you participate in a plan is because you are a member of a reserve unit of the Armed Forces, you may not be covered by the plan. Irs tax form 1120 for 2012 You are not covered by the plan if both of the following conditions are met. Irs tax form 1120 for 2012 The plan you participate in is established for its employees by: The United States, A state or political subdivision of a state, or An instrumentality of either (a) or (b) above. Irs tax form 1120 for 2012 You did not serve more than 90 days on active duty during the year (not counting duty for training). Irs tax form 1120 for 2012 Volunteer firefighters. Irs tax form 1120 for 2012   If the only reason you participate in a plan is because you are a volunteer firefighter, you may not be covered by the plan. Irs tax form 1120 for 2012 You are not covered by the plan if both of the following conditions are met. Irs tax form 1120 for 2012 The plan you participate in is established for its employees by: The United States, A state or political subdivision of a state, or An instrumentality of either (a) or (b) above. Irs tax form 1120 for 2012 Your accrued retirement benefits at the beginning of the year will not provide more than $1,800 per year at retirement. Irs tax form 1120 for 2012 Limit if Covered by Employer Plan As discussed earlier, the deduction you can take for contributions made to your traditional IRA depends on whether you or your spouse was covered for any part of the year by an employer retirement plan. Irs tax form 1120 for 2012 Your deduction is also affected by how much income you had and by your filing status. Irs tax form 1120 for 2012 Your deduction may also be affected by social security benefits you received. Irs tax form 1120 for 2012 Reduced or no deduction. Irs tax form 1120 for 2012   If either you or your spouse was covered by an employer retirement plan, you may be entitled to only a partial (reduced) deduction or no deduction at all, depending on your income and your filing status. Irs tax form 1120 for 2012   Your deduction begins to decrease (phase out) when your income rises above a certain amount and is eliminated altogether when it reaches a higher amount. Irs tax form 1120 for 2012 These amounts vary depending on your filing status. Irs tax form 1120 for 2012   To determine if your deduction is subject to the phaseout, you must determine your modified adjusted gross income (AGI) and your filing status, as explained later under Deduction Phaseout . Irs tax form 1120 for 2012 Once you have determined your modified AGI and your filing status, you can use Table 1-2 or Table 1-3 to determine if the phaseout applies. Irs tax form 1120 for 2012 Social Security Recipients Instead of using Table 1-2 or Table 1-3 and Worksheet 1-2, Figuring Your Reduced IRA Deduction for 2013, later, complete the worksheets in Appendix B of this publication if, for the year, all of the following apply. Irs tax form 1120 for 2012 You received social security benefits. Irs tax form 1120 for 2012 You received taxable compensation. Irs tax form 1120 for 2012 Contributions were made to your traditional IRA. Irs tax form 1120 for 2012 You or your spouse was covered by an employer retirement plan. Irs tax form 1120 for 2012 Use the worksheets in Appendix B to figure your IRA deduction, your nondeductible contribution, and the taxable portion, if any, of your social security benefits. Irs tax form 1120 for 2012 Appendix B includes an example with filled-in worksheets to assist you. Irs tax form 1120 for 2012 Table 1-2. Irs tax form 1120 for 2012 Effect of Modified AGI1 on Deduction if You Are Covered by a Retirement Plan at Work If you are covered by a retirement plan at work, use this table to determine if your modified AGI affects the amount of your deduction. Irs tax form 1120 for 2012 IF your filing status is . Irs tax form 1120 for 2012 . Irs tax form 1120 for 2012 . Irs tax form 1120 for 2012 AND your modified adjusted gross income (modified AGI) is . Irs tax form 1120 for 2012 . Irs tax form 1120 for 2012 . Irs tax form 1120 for 2012 THEN you can take . Irs tax form 1120 for 2012 . Irs tax form 1120 for 2012 . Irs tax form 1120 for 2012 single or head of household $59,000 or less a full deduction. Irs tax form 1120 for 2012 more than $59,000 but less than $69,000 a partial deduction. Irs tax form 1120 for 2012 $69,000 or more no deduction. Irs tax form 1120 for 2012 married filing jointly or  qualifying widow(er) $95,000 or less a full deduction. Irs tax form 1120 for 2012 more than $95,000 but less than $115,000 a partial deduction. Irs tax form 1120 for 2012 $115,000 or more no deduction. Irs tax form 1120 for 2012 married filing separately2 less than $10,000 a partial deduction. Irs tax form 1120 for 2012 $10,000 or more no deduction. Irs tax form 1120 for 2012 1 Modified AGI (adjusted gross income). Irs tax form 1120 for 2012 See Modified adjusted gross income (AGI) , later. Irs tax form 1120 for 2012  2 If you did not live with your spouse at any time during the year, your filing status is considered Single for this purpose (therefore, your IRA deduction is determined under the “Single” filing status). Irs tax form 1120 for 2012 Table 1-3. Irs tax form 1120 for 2012 Effect of Modified AGI1 on Deduction if You Are NOT Covered by a Retirement Plan at Work If you are not covered by a retirement plan at work, use this table to determine if your modified AGI affects the amount of your deduction. Irs tax form 1120 for 2012 IF your filing status is . Irs tax form 1120 for 2012 . Irs tax form 1120 for 2012 . Irs tax form 1120 for 2012 AND your modified adjusted gross income (modified AGI) is . Irs tax form 1120 for 2012 . Irs tax form 1120 for 2012 . Irs tax form 1120 for 2012 THEN you can take . Irs tax form 1120 for 2012 . Irs tax form 1120 for 2012 . Irs tax form 1120 for 2012 single, head of household, or qualifying widow(er) any amount a full deduction. Irs tax form 1120 for 2012 married filing jointly or separately with a spouse who is not covered by a plan at work any amount a full deduction. Irs tax form 1120 for 2012 married filing jointly with a spouse who is covered by a plan at work $178,000 or less a full deduction. Irs tax form 1120 for 2012 more than $178,000 but less than $188,000 a partial deduction. Irs tax form 1120 for 2012 $188,000 or more no deduction. Irs tax form 1120 for 2012 married filing separately with a spouse who is covered by a plan at work2 less than $10,000 a partial deduction. Irs tax form 1120 for 2012 $10,000 or more no deduction. Irs tax form 1120 for 2012 1 Modified AGI (adjusted gross income). Irs tax form 1120 for 2012 See Modified adjusted gross income (AGI) , later. Irs tax form 1120 for 2012  2 You are entitled to the full deduction if you did not live with your spouse at any time during the year. Irs tax form 1120 for 2012 For 2014, if you are not covered by a retirement plan at work and you are married filing jointly with a spouse who is covered by a plan at work, your deduction is phased out if your modified AGI is more than $181,000 but less than $191,000. Irs tax form 1120 for 2012 If your AGI is $191,000 or more, you cannot take a deduction for a contribution to a traditional IRA. Irs tax form 1120 for 2012 Deduction Phaseout The amount of any reduction in the limit on your IRA deduction (phaseout) depends on whether you or your spouse was covered by an employer retirement plan. Irs tax form 1120 for 2012 Covered by a retirement plan. Irs tax form 1120 for 2012   If you are covered by an employer retirement plan and you did not receive any social security retirement benefits, your IRA deduction may be reduced or eliminated depending on your filing status and modified AGI, as shown in Table 1-2. Irs tax form 1120 for 2012 For 2014, if you are covered by a retirement plan at work, your IRA deduction will not be reduced (phased out) unless your modified AGI is: More than $60,000 but less than $70,000 for a single individual (or head of household), More than $96,000 but less than $116,000 for a married couple filing a joint return (or a qualifying widow(er)), or Less than $10,000 for a married individual filing a separate return. Irs tax form 1120 for 2012 If your spouse is covered. Irs tax form 1120 for 2012   If you are not covered by an employer retirement plan, but your spouse is, and you did not receive any social security benefits, your IRA deduction may be reduced or eliminated entirely depending on your filing status and modified AGI as shown in Table 1-3. Irs tax form 1120 for 2012 Filing status. Irs tax form 1120 for 2012   Your filing status depends primarily on your marital status. Irs tax form 1120 for 2012 For this purpose, you need to know if your filing status is single or head of household, married filing jointly or qualifying widow(er), or married filing separately. Irs tax form 1120 for 2012 If you need more information on filing status, see Publication 501, Exemptions, Standard Deduction, and Filing Information. Irs tax form 1120 for 2012 Lived apart from spouse. Irs tax form 1120 for 2012   If you did not live with your spouse at any time during the year and you file a separate return, your filing status, for this purpose, is single. Irs tax form 1120 for 2012 Modified adjusted gross income (AGI). Irs tax form 1120 for 2012   You can use Worksheet 1-1 to figure your modified AGI. Irs tax form 1120 for 2012 If you made contributions to your IRA for 2013 and received a distribution from your IRA in 2013, see Both contributions for 2013 and distributions in 2013 , later. Irs tax form 1120 for 2012    Do not assume that your modified AGI is the same as your compensation. Irs tax form 1120 for 2012 Your modified AGI may include income in addition to your compensation (discussed earlier) such as interest, dividends, and income from IRA distributions. Irs tax form 1120 for 2012 Form 1040. Irs tax form 1120 for 2012   If you file Form 1040, refigure the amount on the page 1 “adjusted gross income” line without taking into account any of the following amounts. Irs tax form 1120 for 2012 IRA deduction. Irs tax form 1120 for 2012 Student loan interest deduction. Irs tax form 1120 for 2012 Tuition and fees deduction. Irs tax form 1120 for 2012 Domestic production activities deduction. Irs tax form 1120 for 2012 Foreign earned income exclusion. Irs tax form 1120 for 2012 Foreign housing exclusion or deduction. Irs tax form 1120 for 2012 Exclusion of qualified savings bond interest shown on Form 8815. Irs tax form 1120 for 2012 Exclusion of employer-provided adoption benefits shown on Form 8839. Irs tax form 1120 for 2012 This is your modified AGI. Irs tax form 1120 for 2012 Form 1040A. Irs tax form 1120 for 2012   If you file Form 1040A, refigure the amount on the page 1 “adjusted gross income” line without taking into account any of the following amounts. Irs tax form 1120 for 2012 IRA deduction. Irs tax form 1120 for 2012 Student loan interest deduction. Irs tax form 1120 for 2012 Tuition and fees deduction. Irs tax form 1120 for 2012 Exclusion of qualified savings bond interest shown on Form 8815. Irs tax form 1120 for 2012 This is your modified AGI. Irs tax form 1120 for 2012 Form 1040NR. Irs tax form 1120 for 2012   If you file Form 1040NR, refigure the amount on the page 1 “adjusted gross income” line without taking into account any of the following amounts. Irs tax form 1120 for 2012 IRA deduction. Irs tax form 1120 for 2012 Student loan interest deduction. Irs tax form 1120 for 2012 Domestic production activities deduction. Irs tax form 1120 for 2012 Exclusion of qualified savings bond interest shown on Form 8815. Irs tax form 1120 for 2012 Exclusion of employer-provided adoption benefits shown on Form 8839. Irs tax form 1120 for 2012 This is your modified AGI. Irs tax form 1120 for 2012 Income from IRA distributions. Irs tax form 1120 for 2012   If you received distributions in 2013 from one or more traditional IRAs and your traditional IRAs include only deductible contributions, the distributions are fully taxable and are included in your modified AGI. Irs tax form 1120 for 2012 Both contributions for 2013 and distributions in 2013. Irs tax form 1120 for 2012   If all three of the following apply, any IRA distributions you received in 2013 may be partly tax free and partly taxable. Irs tax form 1120 for 2012 You received distributions in 2013 from one or more traditional IRAs, You made contributions to a traditional IRA for 2013, and Some of those contributions may be nondeductible contributions. Irs tax form 1120 for 2012 (See Nondeductible Contributions and Worksheet 1-2, later. Irs tax form 1120 for 2012 ) If this is your situation, you must figure the taxable part of the traditional IRA distribution before you can figure your modified AGI. Irs tax form 1120 for 2012 To do this, you can use Worksheet 1-5, later. Irs tax form 1120 for 2012   If at least one of the above does not apply, figure your modified AGI using Worksheet 1-1, later. Irs tax form 1120 for 2012 How To Figure Your Reduced IRA Deduction If you or your spouse is covered by an employer retirement plan and you did not receive any social security benefits, you can figure your reduced IRA deduction by using Worksheet 1-2. Irs tax form 1120 for 2012 Figuring Your Reduced IRA Deduction for 2013. Irs tax form 1120 for 2012 The Instructions for Form 1040, Form 1040A, and Form 1040NR include similar worksheets that you can use instead of the worksheet in this publication. Irs tax form 1120 for 2012 If you or your spouse is covered by an employer retirement plan, and you received any social security benefits, see Social Security Recipients , earlier. Irs tax form 1120 for 2012 Note. Irs tax form 1120 for 2012 If you were married and both you and your spouse contributed to IRAs, figure your deduction and your spouse's deduction separately. Irs tax form 1120 for 2012 Worksheet 1-1. Irs tax form 1120 for 2012 Figuring Your Modified AGI Use this worksheet to figure your modified AGI for traditional IRA purposes. Irs tax form 1120 for 2012 1. Irs tax form 1120 for 2012 Enter your adjusted gross income (AGI) from Form 1040, line 38; Form 1040A, line 22; or Form 1040NR, line 37, figured without taking into account the amount from Form 1040, line 32; Form 1040A, line 17; or Form 1040NR, line 32 1. Irs tax form 1120 for 2012   2. Irs tax form 1120 for 2012 Enter any student loan interest deduction from Form 1040, line 33; Form 1040A, line 18; or Form 1040NR, line 33 2. Irs tax form 1120 for 2012   3. Irs tax form 1120 for 2012 Enter any tuition and fees deduction from Form 1040, line 34, or Form 1040A, line 19 3. Irs tax form 1120 for 2012   4. Irs tax form 1120 for 2012 Enter any domestic production activities deduction from Form 1040, line 35, or Form 1040NR, line 34 4. Irs tax form 1120 for 2012   5. Irs tax form 1120 for 2012 Enter any foreign earned income exclusion and/or housing exclusion from Form 2555, line 45, or Form 2555-EZ, line 18 5. Irs tax form 1120 for 2012   6. Irs tax form 1120 for 2012 Enter any foreign housing deduction from Form 2555, line 50 6. Irs tax form 1120 for 2012   7. Irs tax form 1120 for 2012 Enter any excludable savings bond interest from Form 8815, line 14 7. Irs tax form 1120 for 2012   8. Irs tax form 1120 for 2012 Enter any excluded employer-provided adoption benefits from Form 8839, line 28 8. Irs tax form 1120 for 2012   9. Irs tax form 1120 for 2012 Add lines 1 through 8. Irs tax form 1120 for 2012 This is your Modified AGI for traditional IRA purposes 9. Irs tax form 1120 for 2012   Reporting Deductible Contributions If you file Form 1040, enter your IRA deduction on line 32 of that form. Irs tax form 1120 for 2012 If you file Form 1040A, enter your IRA deduction on line 17 of that form. Irs tax form 1120 for 2012 If you file Form 1040NR, enter your IRA deduction on line 32 of that form. Irs tax form 1120 for 2012 You cannot deduct IRA contributions on Form 1040EZ or Form 1040NR-EZ. Irs tax form 1120 for 2012 Self-employed. Irs tax form 1120 for 2012   If you are self-employed (a sole proprietor or partner) and have a SIMPLE IRA, enter your deduction for allowable plan contributions on Form 1040, line 28. Irs tax form 1120 for 2012 If you file Form 1040NR, enter your deduction on line 28 of that form. Irs tax form 1120 for 2012 Nondeductible Contributions Although your deduction for IRA contributions may be reduced or eliminated, contributions can be made to your IRA of up to the general limit or, if it applies, the Kay Bailey Hutchison Spousal IRA limit. Irs tax form 1120 for 2012 The difference between your total permitted contributions and your IRA deduction, if any, is your nondeductible contribution. Irs tax form 1120 for 2012 Example. Irs tax form 1120 for 2012 Tony is 29 years old and single. Irs tax form 1120 for 2012 In 2013, he was covered by a retirement plan at work. Irs tax form 1120 for 2012 His salary is $62,000. Irs tax form 1120 for 2012 His modified AGI is $70,000. Irs tax form 1120 for 2012 Tony makes a $5,500 IRA contribution for 2013. Irs tax form 1120 for 2012 Because he was covered by a retirement plan and his modified AGI is above $69,000, he cannot deduct his $5,500 IRA contribution. Irs tax form 1120 for 2012 He must designate this contribution as a nondeductible contribution by reporting it on Form 8606. Irs tax form 1120 for 2012 Repayment of reservist distributions. Irs tax form 1120 for 2012   Nondeductible contributions may include repayments of qualified reservist distributions. Irs tax form 1120 for 2012 For more information, see Qualified reservist repayments under How Much Can Be Contributed, earlier. Irs tax form 1120 for 2012 Form 8606. Irs tax form 1120 for 2012   To designate contributions as nondeductible, you must file Form 8606. Irs tax form 1120 for 2012 (See the filled-in Forms 8606 in this chapter. Irs tax form 1120 for 2012 )   You do not have to designate a contribution as nondeductible until you file your tax return. Irs tax form 1120 for 2012 When you file, you can even designate otherwise deductible contributions as nondeductible contributions. Irs tax form 1120 for 2012   You must file Form 8606 to report nondeductible contributions even if you do not have to file a tax return for the year. Irs tax form 1120 for 2012    A Form 8606 is not used for the year that you make a rollover from a qualified retirement plan to a traditional IRA and the rollover includes nontaxable amounts. Irs tax form 1120 for 2012 In those situations, a Form 8606 is completed for the year you take a distribution from that IRA. Irs tax form 1120 for 2012 See Form 8606 under Distributions Fully or Partly Taxable, later. Irs tax form 1120 for 2012 Failure to report nondeductible contributions. Irs tax form 1120 for 2012   If you do not report nondeductible contributions, all of the contributions to your traditional IRA will be treated like deductible contributions when withdrawn. Irs tax form 1120 for 2012 All distributions from your IRA will be taxed unless you can show, with satisfactory evidence, that nondeductible contributions were made. Irs tax form 1120 for 2012 Penalty for overstatement. Irs tax form 1120 for 2012   If you overstate the amount of nondeductible contributions on your Form 8606 for any tax year, you must pay a penalty of $100 for each overstatement, unless it was due to reasonable cause. Irs tax form 1120 for 2012 Penalty for failure to file Form 8606. Irs tax form 1120 for 2012   You will have to pay a $50 penalty if you do not file a required Form 8606, unless you can prove that the failure was due to reasonable cause. Irs tax form 1120 for 2012 Tax on earnings on nondeductible contributions. Irs tax form 1120 for 2012   As long as contributions are within the contribution limits, none of the earnings or gains on contributions (deductible or nondeductible) will be taxed until they are distributed. Irs tax form 1120 for 2012 Cost basis. Irs tax form 1120 for 2012   You will have a cost basis in your traditional IRA if you made any nondeductible contributions. Irs tax form 1120 for 2012 Your cost basis is the sum of the nondeductible contributions to your IRA minus any withdrawals or distributions of nondeductible contributions. Irs tax form 1120 for 2012    Commonly, distributions from your traditional IRAs will include both taxable and nontaxable (cost basis) amounts. Irs tax form 1120 for 2012 See Are Distributions Taxable, later, for more information. Irs tax form 1120 for 2012 Recordkeeping. Irs tax form 1120 for 2012 There is a recordkeeping worksheet, Appendix A. Irs tax form 1120 for 2012 Summary Record of Traditional IRA(s) for 2013 , that you can use to keep a record of deductible and nondeductible IRA contributions. Irs tax form 1120 for 2012 Examples — Worksheet for Reduced IRA Deduction for 2013 The following examples illustrate the use of Worksheet 1-2, Figuring Your Reduced IRA Deduction for 2013. Irs tax form 1120 for 2012 Example 1. Irs tax form 1120 for 2012 For 2013, Tom and Betty file a joint return on Form 1040. Irs tax form 1120 for 2012 They are both 39 years old. Irs tax form 1120 for 2012 They are both employed and Tom is covered by his employer's retirement plan. Irs tax form 1120 for 2012 Tom's salary is $59,000 and Betty's is $32,555. Irs tax form 1120 for 2012 They each have a traditional IRA and their combined modified AGI, which includes $5,000 interest and dividend income, is $96,555. Irs tax form 1120 for 2012 Because their modified AGI is between $95,000 and $115,000 and Tom is covered by an employer plan, Tom is subject to the deduction phaseout discussed earlier under Limit if Covered by Employer Plan . Irs tax form 1120 for 2012 For 2013, Tom contributed $5,500 to his IRA and Betty contributed $5,500 to hers. Irs tax form 1120 for 2012 Even though they file a joint return, they must use separate worksheets to figure the IRA deduction for each of them. Irs tax form 1120 for 2012 Tom can take a deduction of only $5,080. Irs tax form 1120 for 2012 He can choose to treat the $5,080 as either deductible or nondeductible contributions. Irs tax form 1120 for 2012 He can either leave the $420 ($5,500 − $5,080) of nondeductible contributions in his IRA or withdraw them by April 15, 2014. Irs tax form 1120 for 2012 He decides to treat the $5,080 as deductible contributions and leave the $420 of nondeductible contributions in his IRA. Irs tax form 1120 for 2012 Using Worksheet 1-2, Figuring Your Reduced IRA Deduction for 2013, Tom figures his deductible and nondeductible amounts as shown on Worksheet 1-2. Irs tax form 1120 for 2012 Figuring Your Reduced IRA Deduction for 2013—Example 1 Illustrated. Irs tax form 1120 for 2012 Betty figures her IRA deduction as follows. Irs tax form 1120 for 2012 Betty can treat all or part of her contributions as either deductible or nondeductible. Irs tax form 1120 for 2012 This is because her $5,500 contribution for 2013 is not subject to the deduction phaseout discussed earlier under Limit if Covered by Employer Plan . Irs tax form 1120 for 2012 She does not need to use Worksheet 1-2, Figuring Your Reduced IRA Deduction for 2013, because their modified AGI is not within the phaseout range that applies. Irs tax form 1120 for 2012 Betty decides to treat her $5,500 IRA contributions as deductible. Irs tax form 1120 for 2012 The IRA deductions of $5,080 and $5,500 on the joint return for Tom and Betty total $10,580. Irs tax form 1120 for 2012 Example 2. Irs tax form 1120 for 2012 For 2013, Ed and Sue file a joint return on Form 1040. Irs tax form 1120 for 2012 They are both 39 years old. Irs tax form 1120 for 2012 Ed is covered by his employer's retirement plan. Irs tax form 1120 for 2012 Ed's salary is $45,000. Irs tax form 1120 for 2012 Sue had no compensation for the year and did not contribute to an IRA. Irs tax form 1120 for 2012 Sue is not covered by an employer plan. Irs tax form 1120 for 2012 Ed contributed $5,500 to his traditional IRA and $5,500 to a traditional IRA for Sue (a Kay Bailey Hutchison Spousal IRA). Irs tax form 1120 for 2012 Their combined modified AGI, which includes $2,000 interest and dividend income and a large capital gain from the sale of stock, is $180,555. Irs tax form 1120 for 2012 Because the combined modified AGI is $115,000 or more, Ed cannot deduct any of the contribution to his traditional IRA. Irs tax form 1120 for 2012 He can either leave the $5,500 of nondeductible contributions in his IRA or withdraw them by April 15, 2014. Irs tax form 1120 for 2012 Sue figures her IRA deduction as shown on Worksheet 1-2. Irs tax form 1120 for 2012 Figuring Your Reduced IRA Deduction for 2013—Example 2 Illustrated. Irs tax form 1120 for 2012 Worksheet 1-2. Irs tax form 1120 for 2012 Figuring Your Reduced IRA Deduction for 2013 (Use only if you or your spouse is covered by an employer plan and your modified AGI falls between the two amounts shown below for your coverage situation and filing status. Irs tax form 1120 for 2012 ) Note. Irs tax form 1120 for 2012 If you were married and both you and your spouse contributed to IRAs, figure your deduction and your spouse's deduction separately. Irs tax form 1120 for 2012 IF you . Irs tax form 1120 for 2012 . Irs tax form 1120 for 2012 . Irs tax form 1120 for 2012 AND your  filing status is . Irs tax form 1120 for 2012 . Irs tax form 1120 for 2012 . Irs tax form 1120 for 2012 AND your modified AGI is over . Irs tax form 1120 for 2012 . Irs tax form 1120 for 2012 . Irs tax form 1120 for 2012 THEN enter on  line 1 below . Irs tax form 1120 for 2012 . Irs tax form 1120 for 2012 . Irs tax form 1120 for 2012       are covered by an employer plan single or head of household $59,000 $69,000     married filing jointly or qualifying widow(er) $95,000 $115,000     married filing separately $0 $10,000     are not covered by an employer plan, but your spouse is covered married filing jointly $178,000 $188,000     married filing separately $0 $10,000     1. Irs tax form 1120 for 2012 Enter applicable amount from table above 1. Irs tax form 1120 for 2012   2. Irs tax form 1120 for 2012 Enter your modified AGI (that of both spouses, if married filing jointly) 2. Irs tax form 1120 for 2012     Note. Irs tax form 1120 for 2012 If line 2 is equal to or more than the amount on line 1, stop here. Irs tax form 1120 for 2012  Your IRA contributions are not deductible. Irs tax form 1120 for 2012 See Nondeductible Contributions , earlier. Irs tax form 1120 for 2012     3. Irs tax form 1120 for 2012 Subtract line 2 from line 1. Irs tax form 1120 for 2012 If line 3 is $10,000 or more ($20,000 or more if married filing jointly or qualifying widow(er) and you are covered by an employer plan), stop here. Irs tax form 1120 for 2012 You can take a full IRA deduction for contributions of up to $5,500 ($6,500 if you are age 50 or older) or 100% of your (and if married filing jointly, your spouse's) compensation, whichever is less 3. Irs tax form 1120 for 2012   4. Irs tax form 1120 for 2012 Multiply line 3 by the percentage below that applies to you. Irs tax form 1120 for 2012 If the result is not a multiple of $10, round it to the next highest multiple of $10. Irs tax form 1120 for 2012 (For example, $611. Irs tax form 1120 for 2012 40 is rounded to $620. Irs tax form 1120 for 2012 ) However, if the result is less than $200, enter $200. Irs tax form 1120 for 2012         Married filing jointly or qualifying widow(er) and you are covered by an employer plan, multiply line 3 by 27. Irs tax form 1120 for 2012 5% (. Irs tax form 1120 for 2012 275) (by 32. Irs tax form 1120 for 2012 5% (. Irs tax form 1120 for 2012 325) if you are age 50 or older). Irs tax form 1120 for 2012 All others, multiply line 3 by 55% (. Irs tax form 1120 for 2012 55) (by 65% (. Irs tax form 1120 for 2012 65) if you are age 50 or older). Irs tax form 1120 for 2012 4. Irs tax form 1120 for 2012   5. Irs tax form 1120 for 2012 Enter your compensation minus any deductions on Form 1040 or Form 1040NR, line 27 (deductible part of self-employment tax) and line 28 (self-employed SEP, SIMPLE, and qualified plans). Irs tax form 1120 for 2012 If you are filing a joint return and your compensation is less than your spouse's, include your spouse's compensation reduced by his or her traditional IRA and Roth IRA contributions for this year. Irs tax form 1120 for 2012 If you file Form 1040 or Form 1040NR, do not reduce your compensation by any losses from self-employment 5. Irs tax form 1120 for 2012   6. Irs tax form 1120 for 2012 Enter contributions made, or to be made, to your IRA for 2013, but do not enter more than $5,500 ($6,500 if you are age 50 or older). Irs tax form 1120 for 2012 If contributions are more than $5,500 ($6,500 if you are age 50 or older), see Excess Contributions , later. Irs tax form 1120 for 2012 6. Irs tax form 1120 for 2012   7. Irs tax form 1120 for 2012 IRA deduction. Irs tax form 1120 for 2012 Compare lines 4, 5, and 6. Irs tax form 1120 for 2012 Enter the smallest amount (or a smaller amount if you choose) here and on the Form 1040, 1040A, or 1040NR line for your IRA, whichever applies. Irs tax form 1120 for 2012 If line 6 is more than line 7 and you want to make a nondeductible contribution, go to line 8 7. Irs tax form 1120 for 2012   8. Irs tax form 1120 for 2012 Nondeductible contribution. Irs tax form 1120 for 2012 Subtract line 7 from line 5 or 6, whichever is smaller. Irs tax form 1120 for 2012  Enter the result here and on line 1 of your Form 8606 8. Irs tax form 1120 for 2012   Worksheet 1-2. Irs tax form 1120 for 2012 Figuring Your Reduced IRA Deduction for 2013—Example 1 Illustrated (Use only if you or your spouse is covered by an employer plan and your modified AGI falls between the two amounts shown below for your coverage situation and filing status. Irs tax form 1120 for 2012 ) Note. Irs tax form 1120 for 2012 If you were married and both you and your spouse contributed to IRAs, figure your deduction and your spouse's deduction separately. Irs tax form 1120 for 2012 IF you . Irs tax form 1120 for 2012 . Irs tax form 1120 for 2012 . Irs tax form 1120 for 2012 AND your  filing status is . Irs tax form 1120 for 2012 . Irs tax form 1120 for 2012 . Irs tax form 1120 for 2012 AND your modified AGI is over . Irs tax form 1120 for 2012 . Irs tax form 1120 for 2012 . Irs tax form 1120 for 2012 THEN enter on  line 1 below . Irs tax form 1120 for 2012 . Irs tax form 1120 for 2012 . Irs tax form 1120 for 2012       are covered by an employer plan single or head of household $59,000 $69,000     married filing jointly or qualifying widow(er) $95,000 $115,000     married filing separately $0 $10,000     are not covered by an employer plan, but your spouse is covered married filing jointly $178,000 $188,000     married filing separately $0 $10,000     1. Irs tax form 1120 for 2012 Enter applicable amount from table above 1. Irs tax form 1120 for 2012 115,000 2. Irs tax form 1120 for 2012 Enter your modified AGI (that of both spouses, if married filing jointly) 2. Irs tax form 1120 for 2012 96,555   Note. Irs tax form 1120 for 2012 If line 2 is equal to or more than the amount on line 1, stop here. Irs tax form 1120 for 2012  Your IRA contributions are not deductible. Irs tax form 1120 for 2012 See Nondeductible Contributions , earlier. Irs tax form 1120 for 2012     3. Irs tax form 1120 for 2012 Subtract line 2 from line 1. Irs tax form 1120 for 2012 If line 3 is $10,000 or more ($20,000 or more if married filing jointly or qualifying widow(er) and you are covered by an employer plan), stop here. Irs tax form 1120 for 2012 You can take a full IRA deduction for contributions of up to $5,500 ($6,500 if you are age 50 or older) or 100% of your (and if married filing jointly, your spouse's) compensation, whichever is less 3. Irs tax form 1120 for 2012 18,445 4. Irs tax form 1120 for 2012 Multiply line 3 by the percentage below that applies to you. Irs tax form 1120 for 2012 If the result is not a multiple of $10, round it to the next highest multiple of $10. Irs tax form 1120 for 2012 (For example, $611. Irs tax form 1120 for 2012 40 is rounded to $620. Irs tax form 1120 for 2012 ) However, if the result is less than $200, enter $200. Irs tax form 1120 for 2012         Married filing jointly or qualifying widow(er) and you are covered by an employer plan, multiply line 3 by 27. Irs tax form 1120 for 2012 5% (. Irs tax form 1120 for 2012 275) (by 32. Irs tax form 1120 for 2012 5% (. Irs tax form 1120 for 2012 325) if you are age 50 or older). Irs tax form 1120 for 2012 All others, multiply line 3 by 55% (. Irs tax form 1120 for 2012 55) (by 65% (. Irs tax form 1120 for 2012 65) if you are age 50 or older). Irs tax form 1120 for 2012 4. Irs tax form 1120 for 2012 5,080 5. Irs tax form 1120 for 2012 Enter your compensation minus any deductions on Form 1040 or Form 1040NR, line 27 (deductible part of self-employment tax) and line 28 (self-employed SEP, SIMPLE, and qualified plans). Irs tax form 1120 for 2012 If you are filing a joint return and your compensation is less than your spouse's, include your spouse's compensation reduced by his or her traditional IRA and Roth IRA contributions for this year. Irs tax form 1120 for 2012 If you file Form 1040 or Form 1040NR, do not reduce your compensation by any losses from self-employment 5. Irs tax form 1120 for 2012 59,000 6. Irs tax form 1120 for 2012 Enter contributions made, or to be made, to your IRA for 2013, but do not enter more than $5,500 ($6,500 if you are age 50 or older). Irs tax form 1120 for 2012 If contributions are more than $5,500 ($6,500 if you are age 50 or older), see Excess Contributions , later. Irs tax form 1120 for 2012 6. Irs tax form 1120 for 2012 5,500 7. Irs tax form 1120 for 2012 IRA deduction. Irs tax form 1120 for 2012 Compare lines 4, 5, and 6. Irs tax form 1120 for 2012 Enter the smallest amount (or a smaller amount if you choose) here and on the Form 1040, 1040A, or 1040NR line for your IRA, whichever applies. Irs tax form 1120 for 2012 If line 6 is more than line 7 and you want to make a nondeductible contribution, go to line 8 7. Irs tax form 1120 for 2012 5,080 8. Irs tax form 1120 for 2012 Nondeductible contribution. Irs tax form 1120 for 2012 Subtract line 7 from line 5 or 6, whichever is smaller. Irs tax form 1120 for 2012  Enter the result here and on line 1 of your Form 8606 8. Irs tax form 1120 for 2012 420 Worksheet 1-2. Irs tax form 1120 for 2012 Figuring Your Reduced IRA Deduction for 2013—Example 2 Illustrated (Use only if you or your spouse is covered by an employer plan and your modified AGI falls between the two amounts shown below for your coverage situation and filing status. Irs tax form 1120 for 2012 ) Note. Irs tax form 1120 for 2012 If you were married and both you and your spouse contributed to IRAs, figure your deduction and your spouse's deduction separately. Irs tax form 1120 for 2012 IF you . Irs tax form 1120 for 2012 . Irs tax form 1120 for 2012 . Irs tax form 1120 for 2012 AND your  filing status is . Irs tax form 1120 for 2012 . Irs tax form 1120 for 2012 . Irs tax form 1120 for 2012 AND your modified AGI is over . Irs tax form 1120 for 2012 . Irs tax form 1120 for 2012 . Irs tax form 1120 for 2012 THEN enter on  line 1 below . Irs tax form 1120 for 2012 . Irs tax form 1120 for 2012 . Irs tax form 1120 for 2012       are covered by an employer plan single or head of household $59,000 $69,000     married filing jointly or qualifying widow(er) $95,000 $115,000     married filing separately $0 $10,000     are not covered by an employer plan, but your spouse is covered married filing jointly $178,000 $188,000     married filing separately $0 $10,000     1. Irs tax form 1120 for 2012 Enter applicable amount from table above 1. Irs tax form 1120 for 2012 188,000 2. Irs tax form 1120 for 2012 Enter your modified AGI (that of both spouses, if married filing jointly) 2. Irs tax form 1120 for 2012 180,555   Note. Irs tax form 1120 for 2012 If line 2 is equal to or more than the amount on line 1, stop here. Irs tax form 1120 for 2012  Your IRA contributions are not deductible. Irs tax form 1120 for 2012 See Nondeductible Contributions , earlier. Irs tax form 1120 for 2012     3. Irs tax form 1120 for 2012 Subtract line 2 from line 1. Irs tax form 1120 for 2012 If line 3 is $10,000 or more ($20,000 or more if married filing jointly or qualifying widow(er) and you are covered by an employer plan), stop here. Irs tax form 1120 for 2012 You can take a full IRA deduction for contributions of up to $5,500 ($6,500 if you are age 50 or older) or 100% of your (and if married filing jointly, your spouse's) compensation, whichever is less 3. Irs tax form 1120 for 2012 7,445 4. Irs tax form 1120 for 2012 Multiply line 3 by the percentage below that applies to you. Irs tax form 1120 for 2012 If the result is not a multiple of $10, round it to the next highest multiple of $10. Irs tax form 1120 for 2012 (For example, $611. Irs tax form 1120 for 2012 40 is rounded to $620. Irs tax form 1120 for 2012 ) However, if the result is less than $200, enter $200. Irs tax form 1120 for 2012         Married filing jointly or qualifying widow(er) and you are covered by an employer plan, multiply line 3 by 27. Irs tax form 1120 for 2012 5% (. Irs tax form 1120 for 2012 275) (by 32. Irs tax form 1120 for 2012 5% (. Irs tax form 1120 for 2012 325) if you are age 50 or older). Irs tax form 1120 for 2012 All others, multiply line 3 by 55% (. Irs tax form 1120 for 2012 55) (by 65% (. Irs tax form 1120 for 2012 65) if you are age 50 or older). Irs tax form 1120 for 2012 4. Irs tax form 1120 for 2012 4,100 5. Irs tax form 1120 for 2012 Enter your compensation minus any deductions on Form 1040 or Form 1040NR, line 27 (deductible part of self-employment tax) and line 28 (self-employed SEP, SIMPLE, and qualified plans). Irs tax form 1120 for 2012 If you are filing a joint return and your compensation is less than your spouse's, include your spouse's compensation reduced by his or her traditional IRA and Roth IRA contributions for this year. Irs tax form 1120 for 2012 If you file Form 1040 or Form 1040NR, do not reduce your compensation by any losses from self-employment 5. Irs tax form 1120 for 2012 39,500 6. Irs tax form 1120 for 2012 Enter contributions made, or to be made, to your IRA for 2013, but do not enter more than $5,500 ($6,500 if you are age 50 or older). Irs tax form 1120 for 2012 If contributions are more than $5,500 ($6,500 if you are age 50 or older), see Excess Contributions , later. Irs tax form 1120 for 2012 6. Irs tax form 1120 for 2012 5,500 7. Irs tax form 1120 for 2012 IRA deduction. Irs tax form 1120 for 2012 Compare lines 4, 5, and 6. Irs tax form 1120 for 2012 Enter the smallest amount (or a smaller amount if you choose) here and on the Form 1040, 1040A, or 1040NR line for your IRA, whichever applies. Irs tax form 1120 for 2012 If line 6 is more than line 7 and you want to make a nondeductible contribution, go to line 8 7. Irs tax form 1120 for 2012 4,100 8. Irs tax form 1120 for 2012 Nondeductible contribution. Irs tax form 1120 for 2012 Subtract line 7 from line 5 or 6, whichever is smaller. Irs tax form 1120 for 2012  Enter the result here and on line 1 of your Form 8606 8. Irs tax form 1120 for 2012 1,400 What if You Inherit an IRA? If you inherit a traditional IRA, you are called a beneficiary. Irs tax form 1120 for 2012 A beneficiary can be any person or entity the owner chooses to receive the benefits of the IRA after he or she dies. Irs tax form 1120 for 2012 Beneficiaries of a traditional IRA must include in their gross income any taxable distributions they receive. Irs tax form 1120 for 2012 Inherited from spouse. Irs tax form 1120 for 2012   If you inherit a traditional IRA from your spouse, you generally have the following three choices. Irs tax form 1120 for 2012 You can: Treat it as your own IRA by designating yourself as the account owner. Irs tax form 1120 for 2012 Treat it as your own by rolling it over into your IRA, or to the extent it is taxable, into a: Qualified employer plan, Qualified employee annuity plan (section 403(a) plan), Tax-sheltered annuity plan (s
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The Irs Tax Form 1120 For 2012

Irs tax form 1120 for 2012 13. Irs tax form 1120 for 2012   Employment Taxes Table of Contents What's New for 2013 What's New for 2014 Reminders Important Dates for 2014 Introduction Topics - This chapter discusses: Useful Items - You may want to see: Farm Employment Family Employees Crew Leaders Social Security and Medicare TaxesReligious exemption. Irs tax form 1120 for 2012 Wage limit. Irs tax form 1120 for 2012 Federal Income Tax WithholdingNew Form W-4 for 2014. Irs tax form 1120 for 2012 Required Notice to Employees About Earned Income Credit (EIC) Reporting and Paying Social Security, Medicare, and Withheld Federal Income TaxesElectronic deposit requirement. Irs tax form 1120 for 2012 Federal Unemployment (FUTA) TaxReporting and Paying FUTA Tax What's New for 2013 Social security and Medicare tax for 2013. Irs tax form 1120 for 2012  The employee tax rate for social security is 6. Irs tax form 1120 for 2012 2%. Irs tax form 1120 for 2012 Previously, the employee tax rate for social security was 4. Irs tax form 1120 for 2012 2%. Irs tax form 1120 for 2012 The employer tax rate for social security remains unchanged at 6. Irs tax form 1120 for 2012 2%. Irs tax form 1120 for 2012 The social security wage base limit is $113,700. Irs tax form 1120 for 2012 The Medicare tax rate is 1. Irs tax form 1120 for 2012 45% each for the employee and employer, unchanged from 2012. Irs tax form 1120 for 2012 There is no wage base limit for Medicare tax. Irs tax form 1120 for 2012 Additional Medicare Tax. Irs tax form 1120 for 2012  In addition to withholding Medicare tax at 1. Irs tax form 1120 for 2012 45%, you must withhold a 0. Irs tax form 1120 for 2012 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. Irs tax form 1120 for 2012 You are required to begin withholding Additional Medicare Tax in the pay period in which you pay wages in excess of $200,000 to an employee and continue to withhold it each pay period until the end of the calendar year. Irs tax form 1120 for 2012 Additional Medicare Tax is only imposed on the employee. Irs tax form 1120 for 2012 There is no employer share of Additional Medicare Tax. Irs tax form 1120 for 2012 All wages that are subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 threshold. Irs tax form 1120 for 2012 For more information on what wages are subject to Medicare tax, see the chart, Special Rules for Various Types of Services and Payments, in section 15 of Publication 15 (Circular E), Employer's Tax Guide. Irs tax form 1120 for 2012 For more information on Additional Medicare Tax, visit IRS. Irs tax form 1120 for 2012 gov and enter “Additional Medicare Tax” in the search box. Irs tax form 1120 for 2012 Leave-based donation programs to aid victims of Hurricane Sandy. Irs tax form 1120 for 2012  Under these programs, employees may donate their vacation, sick, or personal leave in exchange for employer cash payments made before January 1, 2014, to qualified tax-exempt organizations providing relief for the victims of Hurricane Sandy. Irs tax form 1120 for 2012 The donated leave will not be included in the income or wages of the employee. Irs tax form 1120 for 2012 The employer may deduct the cash payments as business expenses or charitable contributions. Irs tax form 1120 for 2012 For more information, see Notice 2012-69, 2012-51 I. Irs tax form 1120 for 2012 R. Irs tax form 1120 for 2012 B. Irs tax form 1120 for 2012 712, available at www. Irs tax form 1120 for 2012 irs. Irs tax form 1120 for 2012 gov/irb/2012-51_IRB/ar09. Irs tax form 1120 for 2012 html. Irs tax form 1120 for 2012 Work opportunity tax credit for qualified tax-exempt organizations hiring qualified veterans extended. Irs tax form 1120 for 2012  The work opportunity tax credit is now available for eligible unemployed veterans who begin work before January 1, 2014. Irs tax form 1120 for 2012 Previously, the credit was available for unemployed veterans who began work on or after November 22, 2011, and before January 1, 2013. Irs tax form 1120 for 2012 Qualified tax-exempt organizations that hire eligible unemployed veterans can claim the work opportunity tax credit against their payroll tax liability using Form 5884-C, Work Opportunity Credit for Qualified Tax-Exempt Organizations Hiring Qualified Veterans. Irs tax form 1120 for 2012 For more information, visit IRS. Irs tax form 1120 for 2012 gov and enter “work opportunity credit” in the search box. Irs tax form 1120 for 2012 What's New for 2014 Social security and Medicare tax for 2014. Irs tax form 1120 for 2012  The employee and employer tax rates for social security and the maximum amount of wages subject to social security tax for 2014 will be discussed in Publication 51 (Circular A), Agricultural Employer's Tax Guide (For use in 2014). Irs tax form 1120 for 2012 The Medicare tax rate for 2014 will also be discussed in Publication 51 (Circular A) (For use in 2014). Irs tax form 1120 for 2012 There is no limit on the amount of wages subject to Medicare tax. Irs tax form 1120 for 2012 Reminders Additional employment tax information for farmers. Irs tax form 1120 for 2012  See Publication 51 (Circular A) for more detailed guidance on employment taxes. Irs tax form 1120 for 2012 For the latest information about employment tax developments impacting farmers, go to www. Irs tax form 1120 for 2012 irs. Irs tax form 1120 for 2012 gov/pub51. Irs tax form 1120 for 2012 Correcting a previously filed Form 943. Irs tax form 1120 for 2012  If you discover an error on a previously filed Form 943, Employer's Annual Federal Tax Return for Agricultural Employees, make the correction using Form 943-X, Adjusted Employer's Annual Federal Tax Return for Agricultural Employees or Claim for Refund. Irs tax form 1120 for 2012 Form 943-X is filed separately from Form 943. Irs tax form 1120 for 2012 For more information on correcting Form 943, see the Instructions for Form 943-X. Irs tax form 1120 for 2012 Federal tax deposits must be made by electronic funds transfer. Irs tax form 1120 for 2012  You must use electronic funds transfer to make all federal tax deposits. Irs tax form 1120 for 2012 Generally, electronic funds transfers are made using the Electronic Federal Tax Payment System (EFTPS). Irs tax form 1120 for 2012 If you do not want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make electronic deposits on your behalf. Irs tax form 1120 for 2012 Also, you may arrange for your financial institution to initiate a same-day wire payment on your behalf. Irs tax form 1120 for 2012 EFTPS is a free service provided by the Department of Treasury. Irs tax form 1120 for 2012 Services provided by your tax professional, financial institution, payroll service, or other third party may have a fee. Irs tax form 1120 for 2012 For more information on making federal tax deposits, see section 7 of Publication 51 (Circular A). Irs tax form 1120 for 2012 To get more information about EFTPS or to enroll in EFTPS, visit www. Irs tax form 1120 for 2012 eftps. Irs tax form 1120 for 2012 gov or call 1-800-555-4477 or 1-800-733-4829 (TDD). Irs tax form 1120 for 2012 Additional information about EFTPS is also available in Publication 966, Electronic Federal Tax Payment System: A Guide To Getting Started. Irs tax form 1120 for 2012 Important Dates for 2014 You should take the action indicated by the dates listed. Irs tax form 1120 for 2012 See By February 15 and On February 16 for Form W-4, Employee's Withholding Allowance Certificate, information. Irs tax form 1120 for 2012 Due dates for deposits of withheld federal income taxes, social security taxes, and Medicare taxes are not listed here. Irs tax form 1120 for 2012 For these dates, see Publication 509, Tax Calendars (For use in 2014). Irs tax form 1120 for 2012 Note. Irs tax form 1120 for 2012  If any date shown below for filing a return, furnishing a form, or depositing taxes falls on a Saturday, Sunday, or legal holiday, the due date is the next business day. Irs tax form 1120 for 2012 A statewide legal holiday delays a filing or furnishing due date only if the IRS office where you are required to file a return or furnish a form is located in that state. Irs tax form 1120 for 2012 For any due date, you will meet the “file” or “furnish” date requirement if the envelope containing the tax return or form is properly addressed, contains sufficient postage, and is postmarked by the U. Irs tax form 1120 for 2012 S. Irs tax form 1120 for 2012 Postal Service by the due date, or sent by an IRS-designated delivery service by the due date. Irs tax form 1120 for 2012 See Private delivery services in Publication 51 (Circular A). Irs tax form 1120 for 2012 Federal tax deposits can only be made by electronic funds transfer and are governed by legal holidays in the District of Columbia. Irs tax form 1120 for 2012 Statewide holidays no longer apply. Irs tax form 1120 for 2012 For a list of legal holidays that delay the due date of a federal tax deposit, see section 7 of Publication 51 (Circular A). Irs tax form 1120 for 2012 Fiscal year taxpayers. Irs tax form 1120 for 2012  The due dates listed below apply whether you use a calendar or a fiscal year. Irs tax form 1120 for 2012 By January 31. Irs tax form 1120 for 2012   File Form 943 with the IRS. Irs tax form 1120 for 2012 If you deposited all Form 943 taxes when due, you have 10 additional days to file. Irs tax form 1120 for 2012 Furnish each employee with a completed Form W-2, Wage and Tax Statement. Irs tax form 1120 for 2012 Furnish each recipient to whom you paid $600 or more in nonemployee compensation with a completed Form 1099 (for example, Form 1099-MISC). Irs tax form 1120 for 2012 File Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return, with the IRS. Irs tax form 1120 for 2012 If you deposited all the FUTA tax when due, you have 10 additional days to file. Irs tax form 1120 for 2012 File Form 945, Annual Return of Withheld Federal Income Tax, with the IRS to report any nonpayroll income tax withheld during 2013. Irs tax form 1120 for 2012 If you deposited all Form 945 taxes when due, you have 10 additional days to file. Irs tax form 1120 for 2012 By February 15. Irs tax form 1120 for 2012  Ask for a new Form W-4 or Formulario W-4(SP), Certificado de Exención de Retenciones del Empleado, from each employee who claimed exemption from federal income tax withholding last year. Irs tax form 1120 for 2012 On February 16. Irs tax form 1120 for 2012  Any Form W-4 claiming exemption from withholding for the previous year has now expired. Irs tax form 1120 for 2012 Begin withholding for any employee who previously claimed exemption from withholding but has not given you a new Form W-4 for the current year. Irs tax form 1120 for 2012 If the employee does not give you a new Form W-4, withhold taxes based on the last valid Form W-4 you have for the employee that does not claim exemption from withholding or, if one does not exist, as if he or she is single with zero withholding allowances. Irs tax form 1120 for 2012 If the employee furnishes a new Form W-4 claiming exemption from withholding after February 15, you may apply the exemption to future wages, but do not refund taxes withheld while the exempt status was not in place. Irs tax form 1120 for 2012 By February 28. Irs tax form 1120 for 2012   File paper Forms 1099 and 1096. Irs tax form 1120 for 2012 File Copy A of all paper Forms 1099 with Form 1096, Annual Summary and Transmittal of U. Irs tax form 1120 for 2012 S. Irs tax form 1120 for 2012 Information Returns, with the IRS. Irs tax form 1120 for 2012 For electronically filed returns, see By March 31 below. Irs tax form 1120 for 2012 File paper Forms W-2 and W-3. Irs tax form 1120 for 2012 File Copy A of all paper Forms W-2 with Form W-3, Transmittal of Wage and Tax Statements, with the Social Security Administration (SSA). Irs tax form 1120 for 2012 For electronically filed returns, see By March 31 below. Irs tax form 1120 for 2012 By March 31. Irs tax form 1120 for 2012   File electronic Forms W-2 and 1099. Irs tax form 1120 for 2012 File electronic Forms W-2 with the SSA and Forms 1099 with the IRS. Irs tax form 1120 for 2012 For more information on reporting Form W-2 information to the SSA electronically, visit the SSA's Employer W-2 Filing Instructions & Information webpage at www. Irs tax form 1120 for 2012 socialsecurity. Irs tax form 1120 for 2012 gov/employer. Irs tax form 1120 for 2012 For information on filing information returns electronically with the IRS, see Publication 1220, Specifications for Filing Forms 1097, 1098, 1099, 3921, 3922, 5498, 8935, and W-2G Electronically. Irs tax form 1120 for 2012 By April 30, July 31, October 31, and January 31. Irs tax form 1120 for 2012   Deposit FUTA taxes. Irs tax form 1120 for 2012 Deposit FUTA tax due if it is more than $500. Irs tax form 1120 for 2012 Before December 1. Irs tax form 1120 for 2012  Remind employees to submit a new Form W-4 if their withholding allowances have changed or will change for the next year. Irs tax form 1120 for 2012 Introduction You are generally required to withhold federal income tax from the wages of your employees. Irs tax form 1120 for 2012 You may also be subject to social security and Medicare taxes under the Federal Insurance Contributions Act (FICA) and federal unemployment tax under the Federal Unemployment Tax Act (FUTA). Irs tax form 1120 for 2012 You must also withhold Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. Irs tax form 1120 for 2012 This chapter includes information about these taxes. Irs tax form 1120 for 2012 You must also pay self-employment tax on your net earnings from farming. Irs tax form 1120 for 2012 See chapter 12 for information on self-employment tax. Irs tax form 1120 for 2012 Topics - This chapter discusses: Farm employment, Family employees, Crew leaders, Social security and Medicare taxes, Additional Medicare Tax withholding, Federal income tax withholding, Reporting and paying social security, Medicare, and withheld federal income taxes, and FUTA tax. Irs tax form 1120 for 2012 Useful Items - You may want to see: Publication 15 (Circular E), Employer's Tax Guide 15-A Employer's Supplemental Tax Guide 15-B Employer's Tax Guide to Fringe Benefits 51 (Circular A), Agricultural Employer's Tax Guide 926 Household Employer's Tax Guide Form (and Instructions) W-2 Wage and Tax Statement W-4 Employee's Withholding Allowance Certificate W-9 Request for Taxpayer Identification Number and Certification 940 Employer's Annual Federal Unemployment (FUTA) Tax Return 943 Employer's Annual Federal Tax Return for Agricultural Employees 943-X Adjusted Employer's Annual Federal Tax Return for Agricultural Employees or Claim for Refund See chapter 16 for information about getting publications and forms. Irs tax form 1120 for 2012 Farm Employment In general, you are an employer of farmworkers if your employees do any of the following types of work. Irs tax form 1120 for 2012 Raising or harvesting agricultural or horticultural products on a farm, including raising and feeding of livestock. Irs tax form 1120 for 2012 Operating, managing, conserving, improving, or maintaining your farm and its tools and equipment. Irs tax form 1120 for 2012 Services performed in salvaging timber, or clearing land of brush and other debris, left by a hurricane (also known as hurricane labor). Irs tax form 1120 for 2012 Handling, processing, or packaging any agricultural or horticultural commodity if you produced more than half of the commodity (for a group of up to 20 unincorporated operators, all of the commodity). Irs tax form 1120 for 2012 Work related to cotton ginning, turpentine, gum resin products, or the operation and maintenance of irrigation facilities. Irs tax form 1120 for 2012 For more information, see Publication 51 (Circular A). Irs tax form 1120 for 2012 Generally, a worker who performs services for you is your employee if you have the right to control what will be done and how it will be done. Irs tax form 1120 for 2012 This is so even when you give the employee freedom of action. Irs tax form 1120 for 2012 What matters is that you have the right to control the details of how the services are performed. Irs tax form 1120 for 2012 You are responsible for withholding and paying employment taxes for your employees. Irs tax form 1120 for 2012 You are also required to file employment tax returns. Irs tax form 1120 for 2012 These requirements do not apply to amounts that you pay to independent contractors. Irs tax form 1120 for 2012 See Publication 15-A for more information on how to determine whether an individual providing services is an independent contractor or an employee. Irs tax form 1120 for 2012 If you employ a family of workers, each worker subject to your control (not just the head of the family) is an employee. Irs tax form 1120 for 2012 Special rules apply to crew leaders. Irs tax form 1120 for 2012 See Crew Leaders , later. Irs tax form 1120 for 2012 Employer identification number (EIN). Irs tax form 1120 for 2012   If you have employees, you must have an EIN. Irs tax form 1120 for 2012 If you do not have an EIN, you may apply for one online. Irs tax form 1120 for 2012 Go to IRS. Irs tax form 1120 for 2012 gov and click on the Apply for an EIN Online link under Tools. Irs tax form 1120 for 2012 You may also apply for an EIN by calling 1-800-829-4933 or 1-800-829-4059 (TDD/TTY for persons who are deaf, hard of hearing, or have a speech disability). Irs tax form 1120 for 2012 The hours of operation for both numbers are Monday–Friday form 7:00 a. Irs tax form 1120 for 2012 m. Irs tax form 1120 for 2012 –7:00 p. Irs tax form 1120 for 2012 m. Irs tax form 1120 for 2012 local time (Alaska and Hawaii follow Pacific time). Irs tax form 1120 for 2012 You can also fax or mail Form SS-4, Application for Employer Identification Number, to the IRS. Irs tax form 1120 for 2012 Employee's social security number (SSN). Irs tax form 1120 for 2012   An employee who does not have an SSN should submit Form SS-5, Application for a Social Security Card, to the Social Security Administration (SSA). Irs tax form 1120 for 2012 Form SS-5 is available from any SSA office or by calling 1-800-772-1213 (operates 24 hours per day). Irs tax form 1120 for 2012 It is also available from the SSA's website at www. Irs tax form 1120 for 2012 socialsecurity. Irs tax form 1120 for 2012 gov. Irs tax form 1120 for 2012   The employee must furnish evidence of age, identity, and U. Irs tax form 1120 for 2012 S. Irs tax form 1120 for 2012 citizenship or lawful immigration status permitting employment with the Form SS-5. Irs tax form 1120 for 2012 An employee who is age 18 or older must appear in person with this evidence at an SSA office. Irs tax form 1120 for 2012 Form I-9. Irs tax form 1120 for 2012    You must verify that each new employee is legally eligible to work in the United States. Irs tax form 1120 for 2012 This includes completing the Form I-9, Employment Eligibility Verification. Irs tax form 1120 for 2012 Form I-9 is available from the U. Irs tax form 1120 for 2012 S. Irs tax form 1120 for 2012 Citizenship and Immigration Services (USCIS) offices or by calling the Bureau of Citizenship and Immigration Services Forms Request Line at 1-800-870-3676. Irs tax form 1120 for 2012 Form I-9 is also available from the USCIS website at www. Irs tax form 1120 for 2012 uscis. Irs tax form 1120 for 2012 gov. Irs tax form 1120 for 2012 You can also contact the USCIS at 1-800-375-5283 for more information. Irs tax form 1120 for 2012 New hire reporting. Irs tax form 1120 for 2012   You are required to report any new employee to a designated state new hire registry. Irs tax form 1120 for 2012 Many states accept a copy of Form W-4 with employer information added. Irs tax form 1120 for 2012 Visit the Office of Child Support Enforcement website at www. Irs tax form 1120 for 2012 acf. Irs tax form 1120 for 2012 hhs. Irs tax form 1120 for 2012 gov/programs/cse/newhire for more information. Irs tax form 1120 for 2012 Family Employees Generally, the wages you pay to family members who are your employees are subject to employment taxes. Irs tax form 1120 for 2012 However, certain exemptions may apply to wages paid to your child, spouse, or parent. Irs tax form 1120 for 2012 Exemptions for your child. Irs tax form 1120 for 2012   Payments for the services of your child under age 18 who works for you in your trade or business (including a farm) are not subject to social security and Medicare taxes. Irs tax form 1120 for 2012 However, see Nonexempt services of a child or spouse , later. Irs tax form 1120 for 2012 Payments for the services of your child under age 21 employed by you in other than a trade or business, such as payments for household services in your home, are also not subject to social security or Medicare taxes. Irs tax form 1120 for 2012 Payments for the services of your child under age 21 employed by you, whether or not in your trade or business, are not subject to FUTA tax. Irs tax form 1120 for 2012 Although not subject to social security, Medicare, or FUTA tax, the child's wages still may be subject to federal income tax withholding. Irs tax form 1120 for 2012 Exemptions for your spouse. Irs tax form 1120 for 2012   Payments for the services of your spouse who works for you in your trade or business are subject to federal income tax withholding and social security and Medicare taxes, but not FUTA tax. Irs tax form 1120 for 2012   Payments for the services of your spouse employed by you in other than a trade or business, such as payments for household services in your home, are not subject to social security, Medicare, or FUTA taxes. Irs tax form 1120 for 2012 Nonexempt services of a child or spouse. Irs tax form 1120 for 2012   Payments for the services of your child or spouse are subject to federal income tax withholding as well as social security, Medicare, and FUTA taxes if he or she works for any of the following entities. Irs tax form 1120 for 2012 A corporation, even if it is controlled by you. Irs tax form 1120 for 2012 A partnership, even if you are a partner. Irs tax form 1120 for 2012 This does not apply to wages paid to your child if each partner is a parent of the child. Irs tax form 1120 for 2012 An estate or trust, even if it is the estate of a deceased parent. Irs tax form 1120 for 2012 In these situations, the child or spouse is considered to work for the corporation, partnership, or estate, not you. Irs tax form 1120 for 2012 Exemptions for your parent. Irs tax form 1120 for 2012   Payments for the services of your parent employed by you in your trade or business are subject to federal income tax withholding and social security and Medicare taxes. Irs tax form 1120 for 2012 Social security and Medicare taxes do not apply to wages paid to your parent for services not in your trade or business, but they do apply to payments for household services in your home if both the following conditions are satisfied. Irs tax form 1120 for 2012 You have a child living in your home who is under age 18 or has a physical or mental condition that requires care by an adult for at least 4 continuous weeks in a calendar quarter. Irs tax form 1120 for 2012 You are a widow or widower; or divorced and not remarried; or have a spouse in the home who, because of a physical or mental condition, cannot care for your child for at least 4 continuous weeks in the quarter. Irs tax form 1120 for 2012   Wages you pay to your parent are not subject to FUTA tax, regardless of the type of services provided. Irs tax form 1120 for 2012 Qualified joint venture. Irs tax form 1120 for 2012   If spouses elect to be treated as a qualified joint venture instead of a partnership, either spouse may report and pay the employment taxes due on the wages paid to employees using the EIN of that spouse's sole proprietorship. Irs tax form 1120 for 2012 For more information about qualified joint ventures, see chapter 12. Irs tax form 1120 for 2012 Crew Leaders If farmworkers are provided by a crew leader, the crew leader may be the employer of the workers. Irs tax form 1120 for 2012 Social security and Medicare taxes. Irs tax form 1120 for 2012   For social security and Medicare tax purposes, the crew leader is the employer of the workers if both of the following requirements are met. Irs tax form 1120 for 2012 The crew leader pays (either on his or her own behalf or on behalf of the farmer) the workers for their farm labor. Irs tax form 1120 for 2012 The crew leader has not entered into a written agreement with the farmer under which the crew leader is designated as an employee of the farmer. Irs tax form 1120 for 2012 Federal income tax withholding. Irs tax form 1120 for 2012   If the crew leader is the employer for social security and Medicare tax purposes, the crew leader is the employer for federal income tax withholding purposes. Irs tax form 1120 for 2012 Federal unemployment (FUTA) tax. Irs tax form 1120 for 2012   For FUTA tax purposes, the crew leader is the employer of the workers if, in addition to the earlier requirements, either of the following requirements are met. Irs tax form 1120 for 2012 The crew leader is registered under the Migrant and Seasonal Agricultural Worker Protection Act. Irs tax form 1120 for 2012 Substantially all crew members operate or maintain mechanized equipment provided by the crew leader as part of the service to the farmer. Irs tax form 1120 for 2012   The farmer is the employer of workers furnished by a crew leader in all other situations. Irs tax form 1120 for 2012 In addition, the farmer is the employer of workers furnished by a registered crew leader if the workers are the employees of the farmer under the common-law test. Irs tax form 1120 for 2012 For example, some farmers employ individuals to recruit farmworkers exclusively for them. Irs tax form 1120 for 2012 Although these individuals may be required to register under the Migrant and Seasonal Agricultural Worker Protection Act, the workers are employed directly by the farmer. Irs tax form 1120 for 2012 The farmer is the employer in these cases. Irs tax form 1120 for 2012 For information about common-law employees, see section 1 of Publication 15-A. Irs tax form 1120 for 2012 For information about crew leaders, see the Department of Labor website at www. Irs tax form 1120 for 2012 dol. Irs tax form 1120 for 2012 gov/whd/regs/compliance/whdfs49. Irs tax form 1120 for 2012 htm. Irs tax form 1120 for 2012 Social Security and Medicare Taxes All cash wages you pay to an employee during the year for farmwork are subject to social security and Medicare taxes if you meet either of the following tests. Irs tax form 1120 for 2012 You pay the employee $150 or more in cash wages (count all wages paid on a time, piecework, or other basis) during the year for farmwork (the $150 test). Irs tax form 1120 for 2012 The $150 test applies separately to each farmworker that you employ. Irs tax form 1120 for 2012 If you employ a family of workers, each member is treated separately. Irs tax form 1120 for 2012 Do not count wages paid by other employers. Irs tax form 1120 for 2012 You pay cash and noncash wages of $2,500 or more during the year to all your employees for farmwork (the $2,500 test). Irs tax form 1120 for 2012 If the $2,500 test for the group is not met, the $150 test for an employee still applies. Irs tax form 1120 for 2012 Exceptions. Irs tax form 1120 for 2012   Annual cash wages of less than $150 you pay to a seasonal farmworker are not subject to social security and Medicare taxes, even if you pay $2,500 or more to all your farmworkers. Irs tax form 1120 for 2012 However, these wages count toward the $2,500 test for determining whether other farmworkers' wages are subject to social security and Medicare taxes. Irs tax form 1120 for 2012   A seasonal farmworker is a worker who: Works as a hand-harvest laborer, Is paid piece rates in an operation usually paid on this basis in the region of employment, Commutes daily from his or her permanent home to the farm, and Worked in agriculture less than 13 weeks in the preceding calendar year. Irs tax form 1120 for 2012   See Family Employees , earlier, for certain exemptions from social security and Medicare taxes that apply to your child, spouse, and parent. Irs tax form 1120 for 2012 Religious exemption. Irs tax form 1120 for 2012   An exemption from social security and Medicare taxes is available to members of a recognized religious group or division opposed to public insurance. Irs tax form 1120 for 2012 This exemption is available only if both the employee and the employer are members of the group or division. Irs tax form 1120 for 2012   For more information, see Publication 517, Social Security and Other Information for Members of the Clergy and Religious Workers. Irs tax form 1120 for 2012 Cash wages. Irs tax form 1120 for 2012   Only cash wages paid to farmworkers are subject to social security and Medicare taxes. Irs tax form 1120 for 2012 Cash wages include checks, money orders, and any kind of money or cash. Irs tax form 1120 for 2012   Only cash wages subject to social security and Medicare taxes are credited to your employees for social security benefit purposes. Irs tax form 1120 for 2012 Payments not subject to these taxes, such as commodity wages, do not contribute to your employees' social security coverage. Irs tax form 1120 for 2012 For information about social security benefits, contact the SSA at 1-800-772-1213 or online at www. Irs tax form 1120 for 2012 socialsecurity. Irs tax form 1120 for 2012 gov. Irs tax form 1120 for 2012 Noncash wages. Irs tax form 1120 for 2012    Noncash wages include food, lodging, clothing, transportation passes, and other goods and services. Irs tax form 1120 for 2012 Noncash wages paid to farmworkers, including commodity wages, are not subject to social security and Medicare taxes. Irs tax form 1120 for 2012 However, they are subject to these taxes if the substance of the transaction is a cash payment. Irs tax form 1120 for 2012 For information on lodging provided as a condition of employment, see Publication 15-B. Irs tax form 1120 for 2012   Report the value of noncash wages in box 1 of Form W-2 together with cash wages. Irs tax form 1120 for 2012 Do not show noncash wages in box 3 or in box 5, (unless the substance of the transaction is a cash payment). Irs tax form 1120 for 2012 Tax rates and social security wage limit. Irs tax form 1120 for 2012   For 2013, the employer and the employee will pay the following taxes. Irs tax form 1120 for 2012 The employer and employee each pay 6. Irs tax form 1120 for 2012 2% of cash wages for social security tax (old-age, survivors, and disability insurance). Irs tax form 1120 for 2012 The employer and employee each pay 1. Irs tax form 1120 for 2012 45% of cash wages for Medicare tax (hospital insurance). Irs tax form 1120 for 2012 The employee pays 0. Irs tax form 1120 for 2012 9% of cash wages in excess of $200,000 for Additional Medicare Tax. Irs tax form 1120 for 2012 Wage limit. Irs tax form 1120 for 2012   The limit on wages subject to the social security tax for 2013 is $113,700. Irs tax form 1120 for 2012 There is no limit on wages subject to the Medicare tax. Irs tax form 1120 for 2012 All covered wages are subject to the Medicare tax. Irs tax form 1120 for 2012 Additionally, all wages in excess of $200,000 are subject to Additional Medicare Tax withholding. Irs tax form 1120 for 2012 Paying employee's share. Irs tax form 1120 for 2012   If you would rather pay the employee's share of social security and Medicare taxes without deducting it from his or her wages, you may do so. Irs tax form 1120 for 2012 It is additional income to the employee. Irs tax form 1120 for 2012 You must include it in box 1 of the employee's Form W-2, but do not count it as social security and Medicare wages (boxes 3 and 5 on Form W-2) or as wages for federal unemployment (FUTA) tax purposes. Irs tax form 1120 for 2012 Example. Irs tax form 1120 for 2012 Jane operates a small family fruit farm. Irs tax form 1120 for 2012 She employs day laborers in the picking season to enable her to timely get her crop to market. Irs tax form 1120 for 2012 She does not deduct the employees' share of social security and Medicare taxes from their pay; instead, she pays it on their behalf. Irs tax form 1120 for 2012 When her accountant, Susan, prepares the employees' Forms W-2, she adds each employee's share of social security and Medicare taxes paid by Jane to the employee's wage income (box 1 of Form W-2), but does not include it in box 3 (social security wages) or box 5 (Medicare wages and tips). Irs tax form 1120 for 2012 For 2013, Jane paid Mary $1,000 during the year. Irs tax form 1120 for 2012 Susan enters $1,076. Irs tax form 1120 for 2012 50 in box 1 of Mary's Form W-2 ($1,000 wages plus $76. Irs tax form 1120 for 2012 50 social security and Medicare taxes paid for Mary). Irs tax form 1120 for 2012 She enters $1,000 in boxes 3 and 5 of Mary's Form W-2. Irs tax form 1120 for 2012 Additional Medicare Tax. Irs tax form 1120 for 2012   In addition to withholding Medicare tax at 1. Irs tax form 1120 for 2012 45%, you must withhold a 0. Irs tax form 1120 for 2012 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. Irs tax form 1120 for 2012 You are required to begin withholding Additional Medicare Tax in the pay period in which you pay wages in excess of $200,000 to an employee and continue to withhold it each pay period until the end of the calendar year. Irs tax form 1120 for 2012 Additional Medicare Tax is only imposed on the employee. Irs tax form 1120 for 2012 There is no employer share of Additional Medicare Tax. Irs tax form 1120 for 2012 All wages that are subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 threshold. Irs tax form 1120 for 2012   For more information on what wages are subject to Medicare tax, see the chart, Special Rules for Various Types of Services and Payments, in section 15 of Publication 15 (Circular E). Irs tax form 1120 for 2012 For more information on Additional Medicare Tax, visit IRS. Irs tax form 1120 for 2012 gov and enter “Additional Medicare Tax” in the search box. Irs tax form 1120 for 2012 Federal Income Tax Withholding If the cash wages you pay to farmworkers are subject to social security and Medicare taxes, they are also subject to federal income tax withholding. Irs tax form 1120 for 2012 Although noncash wages are subject to federal income tax, withhold income tax only if you and the employee agree to do so. Irs tax form 1120 for 2012 The amount to withhold is figured on gross wages without taking out social security and Medicare taxes, union dues, insurance, etc. Irs tax form 1120 for 2012 Form W-4. Irs tax form 1120 for 2012   Generally, the amount of federal income tax you withhold is based on the employee's marital status and withholding allowances claimed on the employee's Form W-4. Irs tax form 1120 for 2012 In general, an employee can claim withholding allowances on Form W-4 equal to the number of exemptions the employee will be entitled to claim on his or her tax return. Irs tax form 1120 for 2012 An employee may also be able to claim a special withholding allowance and allowances for estimated deductions and credits. Irs tax form 1120 for 2012   Do not withhold federal income tax from the wages of an employee who, by filing Form W-4, certifies that he or she had no federal income tax liability last year and anticipates no liability for the current year. Irs tax form 1120 for 2012   You should give each new employee a Form W-4 as soon as you hire the employee. Irs tax form 1120 for 2012 For Spanish-speaking employees, you may use Formulario W-4(SP) which is the Spanish translation of Form W-4. Irs tax form 1120 for 2012 Have the employee complete and return the form to you before the first payday. Irs tax form 1120 for 2012 If the employee does not return the completed form, you must withhold federal income tax as if the employee is single and claims no withholding allowances. Irs tax form 1120 for 2012 New Form W-4 for 2014. Irs tax form 1120 for 2012   You should make the 2014 Form W-4 available to your employees and encourage them to check their income tax withholding for 2014. Irs tax form 1120 for 2012 Those employees who owed a large amount of tax or received a large refund for 2013 may want to submit a new Form W-4. Irs tax form 1120 for 2012 You cannot accept substitute Forms W-4 developed by employees. Irs tax form 1120 for 2012 How to figure withholding. Irs tax form 1120 for 2012   You can use one of several methods to determine the amount to withhold. Irs tax form 1120 for 2012 The methods are described in Publication 51 (Circular A), which contains tables showing the correct amount of federal income tax you should withhold. Irs tax form 1120 for 2012 Publication 51 (Circular A) also contains additional information about federal income tax withholding. Irs tax form 1120 for 2012 Nonemployee compensation. Irs tax form 1120 for 2012   Generally, you do not have to withhold federal income tax on payments for services to individuals who are not your employees. Irs tax form 1120 for 2012 However, you may be required to report these payments on Form 1099-MISC, Miscellaneous Income, and to withhold under the backup withholding rules. Irs tax form 1120 for 2012 For more information, see the Instructions for Form 1099-MISC. Irs tax form 1120 for 2012 Required Notice to Employees About Earned Income Credit (EIC) You must provide notification about EIC to each employee who worked for you at any time during the year and from whom you did not withhold any federal income tax. Irs tax form 1120 for 2012 However, you do not have to notify employees who claim exemption from federal income tax withholding on Form W-4. Irs tax form 1120 for 2012 You meet the notification requirement by giving each employee any of the following. Irs tax form 1120 for 2012 Form W-2, which contains EIC notification on the back of Copy B. Irs tax form 1120 for 2012 A substitute Form W-2 with the exact EIC wording shown on the back of copy B of Form W-2. Irs tax form 1120 for 2012 Notice 797, Possible Federal Tax Refund Due to the Earned Income Credit (EIC). Irs tax form 1120 for 2012 Your own written statement with the exact wording of Notice 797. Irs tax form 1120 for 2012 For more information, see Publication 51 (Circular A). Irs tax form 1120 for 2012 Reporting and Paying Social Security, Medicare, and Withheld Federal Income Taxes You must withhold federal income, social security, and Medicare taxes required to be withheld from the salaries and wages of your employees. Irs tax form 1120 for 2012 You are liable for the payment of these taxes to the federal government whether or not you collect them from your employees. Irs tax form 1120 for 2012 If, for example, you withhold less than the correct tax from an employee's wages, you are still liable for the full amount. Irs tax form 1120 for 2012 You must also pay the employer's share of social security and Medicare taxes. Irs tax form 1120 for 2012 There is no employer share of Additional Medicare Tax. Irs tax form 1120 for 2012 Form 943. Irs tax form 1120 for 2012   Report withheld federal income tax, social security tax, and Medicare tax on Form 943. Irs tax form 1120 for 2012 Your 2013 Form 943 is due by January 31, 2014 (or February 10, 2014, if you made deposits on time in full payment of the taxes due for the year). Irs tax form 1120 for 2012 Deposits. Irs tax form 1120 for 2012   Generally, you must deposit both the employer and employee shares of social security and Medicare taxes and federal income tax withheld during the year. Irs tax form 1120 for 2012 However, you may make payments with Form 943 instead of depositing them if you accumulate less than a $2,500 tax liability (“Total taxes after adjustments” line on Form 943) during the year and you pay in full with a timely filed return. Irs tax form 1120 for 2012   For more information on deposit rules, see Publication 51 (Circular A). Irs tax form 1120 for 2012 Electronic deposit requirement. Irs tax form 1120 for 2012   You must use electronic funds transfer to make all federal tax deposits. Irs tax form 1120 for 2012 Generally, electronic funds transfers are made using EFTPS. Irs tax form 1120 for 2012 If you do not want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make electronic deposits on your behalf. Irs tax form 1120 for 2012 Also, you may arrange for your financial institution to initiate a same-day wire payment on your behalf. Irs tax form 1120 for 2012 EFTPS is a free service provided by the Department of Treasury. Irs tax form 1120 for 2012 Services provided by your tax professional, financial institution, payroll service, or other third party may have a fee. Irs tax form 1120 for 2012   For more information on making federal tax deposits, see section 7 of Publication 51 (Circular A). Irs tax form 1120 for 2012 To get more information about EFTPS or to enroll in EFTPS, visit www. Irs tax form 1120 for 2012 eftps. Irs tax form 1120 for 2012 gov or call 1-800-555-4477 or 1-800-733-4829 (TDD). Irs tax form 1120 for 2012 Additional information about EFTPS is also available in Publication 966. Irs tax form 1120 for 2012 Form W-2. Irs tax form 1120 for 2012   By January 31, you must furnish each employee a Form W-2 showing total wages for the previous year and total federal income tax, social security tax, and Medicare tax withheld. Irs tax form 1120 for 2012 However, if an employee stops working for you and requests the form earlier, you must give it to the employee within 30 days of the later of the following dates. Irs tax form 1120 for 2012 The date the employee requests the form. Irs tax form 1120 for 2012 The date you make your final payment of wages to the employee. Irs tax form 1120 for 2012 Compensation paid to H-2A visa holders. Irs tax form 1120 for 2012   Report compensation of $600 or more paid to foreign agricultural workers who entered the country on H-2A visas in box 1 of Form W-2. Irs tax form 1120 for 2012 Compensation paid to H-2A workers for agricultural labor performed in connection with this visa is not subject to social security and Medicare taxes, and therefore should not be reported as wages subject to social security tax (line 2), Medicare tax (line 4), or Additional Medicare Tax (line 6) on Form 943, and should not be reported as social security wages (box 3) or Medicare wages (box 5) on Form W-2. Irs tax form 1120 for 2012   An employer is not required to withhold federal income tax from compensation it pays to an H-2A worker for agricultural labor performed in connection with this visa unless the worker asks for withholding and the employer agrees. Irs tax form 1120 for 2012 In this case, the worker must give the employer a completed Form W-4. Irs tax form 1120 for 2012 Federal income tax withheld should be reported on Form 943, line 8, and in box 2 of Form W-2. Irs tax form 1120 for 2012   These reporting rules apply when the H-2A worker provides his or her taxpayer identification number (TIN) to the employer. Irs tax form 1120 for 2012 For the rules relating to backup withholding and reporting when the H-2A worker does not provide a TIN, see the Instructions for Form 1099-MISC and the Instructions for Form 945. Irs tax form 1120 for 2012 Trust fund recovery penalty. Irs tax form 1120 for 2012   If you are responsible for withholding, accounting for, depositing, or paying federal withholding taxes and willfully fail to do so, you can be held liable for a penalty equal to the withheld tax not paid. Irs tax form 1120 for 2012 A responsible person can be an officer of a corporation, a partner, a sole proprietor, or an employee of any form of business. Irs tax form 1120 for 2012 A trustee or agent with authority over the funds of the business can also be held responsible for the penalty. Irs tax form 1120 for 2012   Willfully means voluntarily, consciously, and intentionally. Irs tax form 1120 for 2012 Paying other expenses of the business instead of the taxes due is acting willfully. Irs tax form 1120 for 2012 Consequences of treating an employee as an independent contractor. Irs tax form 1120 for 2012   If you classify an employee as an independent contractor and you have no reasonable basis for doing so, you may be held liable for employment taxes for that worker. Irs tax form 1120 for 2012 See Publication 15-A for more information. Irs tax form 1120 for 2012 Federal Unemployment (FUTA) Tax You must pay FUTA tax if you meet either of the following tests. Irs tax form 1120 for 2012 You paid cash wages of $20,000 or more to farmworkers in any calendar quarter during the current or preceding calendar year. Irs tax form 1120 for 2012 You employed 10 or more farmworkers for some part of at least 1 day during any 20 or more different calendar weeks during the current or preceding calendar year. Irs tax form 1120 for 2012 These rules do not apply to exempt services of your spouse, your parents, or your children under age 21. Irs tax form 1120 for 2012 See Family Employees , earlier. Irs tax form 1120 for 2012 Alien farmworkers. Irs tax form 1120 for 2012   Wages paid to aliens admitted on a temporary basis to the United States to perform farmwork (also known as “H-2A visa workers”) are exempt from FUTA tax. Irs tax form 1120 for 2012 However, include your employment of these workers and the wages you paid them to determine whether you meet either of the above tests. Irs tax form 1120 for 2012 Commodity wages. Irs tax form 1120 for 2012   Payments in kind for farm labor are not cash wages. Irs tax form 1120 for 2012 Do not count them to figure whether you are subject to FUTA tax or to figure how much tax you owe. Irs tax form 1120 for 2012 Tax rate and credit. Irs tax form 1120 for 2012   The gross FUTA tax rate is 6. Irs tax form 1120 for 2012 0% of the first $7,000 cash wages you pay to each employee during the year. Irs tax form 1120 for 2012 However, you are given a credit of up to 5. Irs tax form 1120 for 2012 4% of the first $7,000 cash wages you pay to each employee for the state unemployment tax you pay. Irs tax form 1120 for 2012 If your state tax rate (experience rate) is less than 5. Irs tax form 1120 for 2012 4%, you may still be allowed the full 5. Irs tax form 1120 for 2012 4% credit. Irs tax form 1120 for 2012   If you do not pay the state tax, you cannot take the credit. Irs tax form 1120 for 2012 If you are exempt from state unemployment tax for any reason, the full 6. Irs tax form 1120 for 2012 0% rate applies. Irs tax form 1120 for 2012 See the Instructions for Form 940 for additional information. Irs tax form 1120 for 2012 More information. Irs tax form 1120 for 2012   For more information on FUTA tax, see Publication 51 (Circular A). Irs tax form 1120 for 2012 Reporting and Paying FUTA Tax The FUTA tax is imposed on you as the employer. Irs tax form 1120 for 2012 It must not be collected or deducted from the wages of your employees. Irs tax form 1120 for 2012 Form 940. Irs tax form 1120 for 2012   Report FUTA tax on Form 940. Irs tax form 1120 for 2012 The 2013 Form 940 is due January 31, 2014 (or February 10, 2014, if you timely deposited the full amount of your 2013 FUTA tax). Irs tax form 1120 for 2012 Deposits. Irs tax form 1120 for 2012   If at the end of any calendar quarter you owe, but have not yet deposited, more than $500 in FUTA tax for the year, you must make a deposit by the end of the following month. Irs tax form 1120 for 2012 If the undeposited tax is $500 or less at the end of a quarter, you do not have to deposit it. Irs tax form 1120 for 2012 You can add it to the tax for the next quarter. Irs tax form 1120 for 2012 If the total undeposited tax is more than $500 at the end of the next quarter, a deposit will be required. Irs tax form 1120 for 2012 If the total undeposited tax at the end of the 4th quarter is $500 or less, you can either make a deposit or pay it with your return by the January 31, 2014, due date. Irs tax form 1120 for 2012 Electronic deposit requirement. Irs tax form 1120 for 2012   You must use electronic funds transfer to make all federal tax deposits. Irs tax form 1120 for 2012 Generally, electronic funds transfers are made using EFTPS. Irs tax form 1120 for 2012 If you do not want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make electronic deposits on your behalf. Irs tax form 1120 for 2012 Also, you may arrange for your financial institution to initiate a same-day wire payment on your behalf. Irs tax form 1120 for 2012 EFTPS is a free service provided by the Department of Treasury. Irs tax form 1120 for 2012 Services provided by your tax professional, financial institution, payroll service, or other third party may have a fee. Irs tax form 1120 for 2012   For more information on making federal tax deposits, see section 7 of Publication 51 (Circular A). Irs tax form 1120 for 2012 To get more information about EFTPS or to enroll in EFTPS, visit www. Irs tax form 1120 for 2012 eftps. Irs tax form 1120 for 2012 gov or call 1-800-555-4477 or 1-800-733-4829 (TDD). Irs tax form 1120 for 2012 Additional information about EFTPS is also available in Publication 966. Irs tax form 1120 for 2012 Prev  Up  Next   Home   More Online Publications