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Irs Tax Forms For 2011

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Irs Tax Forms For 2011

Irs tax forms for 2011 Publication 15 - Main Content Table of Contents 1. Irs tax forms for 2011 Employer Identification Number (EIN) 2. Irs tax forms for 2011 Who Are Employees?Relief provisions. Irs tax forms for 2011 Business Owned and Operated by Spouses 3. Irs tax forms for 2011 Family Employees 4. Irs tax forms for 2011 Employee's Social Security Number (SSN)Registering for SSNVS. Irs tax forms for 2011 5. Irs tax forms for 2011 Wages and Other CompensationAccountable plan. Irs tax forms for 2011 Nonaccountable plan. Irs tax forms for 2011 Per diem or other fixed allowance. Irs tax forms for 2011 50% test. Irs tax forms for 2011 Health Savings Accounts and medical savings accounts. Irs tax forms for 2011 Nontaxable fringe benefits. Irs tax forms for 2011 When fringe benefits are treated as paid. Irs tax forms for 2011 Valuation of fringe benefits. Irs tax forms for 2011 Withholding on fringe benefits. Irs tax forms for 2011 Depositing taxes on fringe benefits. Irs tax forms for 2011 6. Irs tax forms for 2011 TipsOrdering rule. Irs tax forms for 2011 7. Irs tax forms for 2011 Supplemental Wages 8. Irs tax forms for 2011 Payroll Period 9. Irs tax forms for 2011 Withholding From Employees' WagesIncome Tax Withholding Social Security and Medicare Taxes Part-Time Workers 10. Irs tax forms for 2011 Required Notice to Employees About the Earned Income Credit (EIC) 11. Irs tax forms for 2011 Depositing TaxesWhen To Deposit How To Deposit Deposit Penalties 12. Irs tax forms for 2011 Filing Form 941 or Form 944 13. Irs tax forms for 2011 Reporting Adjustments to Form 941 or Form 944Current Period Adjustments Prior Period Adjustments Wage Repayments 14. Irs tax forms for 2011 Federal Unemployment (FUTA) TaxSuccessor employer. Irs tax forms for 2011 Household employees. Irs tax forms for 2011 When to deposit. Irs tax forms for 2011 Household employees. Irs tax forms for 2011 Electronic filing by reporting agents. Irs tax forms for 2011 16. Irs tax forms for 2011 How To Use the Income Tax Withholding TablesWage Bracket Method Percentage Method Alternative Methods of Income Tax Withholding How To Get Tax Help 1. Irs tax forms for 2011 Employer Identification Number (EIN) If you are required to report employment taxes or give tax statements to employees or annuitants, you need an EIN. Irs tax forms for 2011 The EIN is a nine-digit number the IRS issues. Irs tax forms for 2011 The digits are arranged as follows: 00-0000000. Irs tax forms for 2011 It is used to identify the tax accounts of employers and certain others who have no employees. Irs tax forms for 2011 Use your EIN on all of the items you send to the IRS and SSA. Irs tax forms for 2011 For more information, see Publication 1635, Employer Identification Number: Understanding Your EIN. Irs tax forms for 2011 If you do not have an EIN, you may apply for one online. Irs tax forms for 2011 Go to the IRS. Irs tax forms for 2011 gov and click on the Apply for an EIN Online link under Tools. Irs tax forms for 2011 You may also apply for an EIN by calling 1-800-829-4933, or you can fax or mail Form SS-4, Application for Employer Identification Number, to the IRS. Irs tax forms for 2011 Do not use an SSN in place of an EIN. Irs tax forms for 2011 You should have only one EIN. Irs tax forms for 2011 If you have more than one and are not sure which one to use, call 1-800-829-4933 or 1-800-829-4059 (TDD/TTY for persons who are deaf, hard of hearing, or have a speech disability). Irs tax forms for 2011 Give the numbers you have, the name and address to which each was assigned, and the address of your main place of business. Irs tax forms for 2011 The IRS will tell you which number to use. Irs tax forms for 2011 If you took over another employer's business (see Successor employer in section 9), do not use that employer's EIN. Irs tax forms for 2011 If you have applied for an EIN but do not have your EIN by the time a return is due, file a paper return and write “Applied For” and the date you applied for it in the space shown for the number. Irs tax forms for 2011 2. Irs tax forms for 2011 Who Are Employees? Generally, employees are defined either under common law or under statutes for certain situations. Irs tax forms for 2011 See Publication 15-A for details on statutory employees and nonemployees. Irs tax forms for 2011 Employee status under common law. Irs tax forms for 2011   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 forms for 2011 This is so even when you give the employee freedom of action. Irs tax forms for 2011 What matters is that you have the right to control the details of how the services are performed. Irs tax forms for 2011 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 forms for 2011   Generally, people in business for themselves are not employees. Irs tax forms for 2011 For example, doctors, lawyers, veterinarians, and others in an independent trade in which they offer their services to the public are usually not employees. Irs tax forms for 2011 However, if the business is incorporated, corporate officers who work in the business are employees of the corporation. Irs tax forms for 2011   If an employer-employee relationship exists, it does not matter what it is called. Irs tax forms for 2011 The employee may be called an agent or independent contractor. Irs tax forms for 2011 It also does not matter how payments are measured or paid, what they are called, or if the employee works full or part time. Irs tax forms for 2011 Statutory employees. Irs tax forms for 2011   If someone who works for you is not an employee under the common law rules discussed earlier, do not withhold federal income tax from his or her pay, unless backup withholding applies. Irs tax forms for 2011 Although the following persons may not be common law employees, they are considered employees by statute for social security, Medicare, and FUTA tax purposes under certain conditions. Irs tax forms for 2011 An agent (or commission) driver who delivers food, beverages (other than milk), laundry, or dry cleaning for someone else. Irs tax forms for 2011 A full-time life insurance salesperson who sells primarily for one company. Irs tax forms for 2011 A homeworker who works by guidelines of the person for whom the work is done, with materials furnished by and returned to that person or to someone that person designates. Irs tax forms for 2011 A traveling or city salesperson (other than an agent-driver or commission-driver) who works full time (except for sideline sales activities) for one firm or person getting orders from customers. Irs tax forms for 2011 The orders must be for merchandise for resale or supplies for use in the customer's business. Irs tax forms for 2011 The customers must be retailers, wholesalers, contractors, or operators of hotels, restaurants, or other businesses dealing with food or lodging. Irs tax forms for 2011    Statutory nonemployees. Irs tax forms for 2011   Direct sellers, qualified real estate agents, and certain companion sitters are, by law, considered nonemployees. Irs tax forms for 2011 They are generally treated as self-employed for all federal tax purposes, including income and employment taxes. Irs tax forms for 2011 H-2A agricultural workers. Irs tax forms for 2011   On Form W-2, do not check box 13 (Statutory employee), as H-2A workers are not statutory employees. Irs tax forms for 2011 Treating employees as nonemployees. Irs tax forms for 2011   You will generally be liable for social security and Medicare taxes and withheld income tax if you do not deduct and withhold these taxes because you treated an employee as a nonemployee. Irs tax forms for 2011 You may be able to calculate your liability using special section 3509 rates for the employee share of social security and Medicare taxes and the federal income tax withholding. Irs tax forms for 2011 The applicable rates depend on whether you filed required Forms 1099. Irs tax forms for 2011 You cannot recover the employee share of social security, or Medicare tax, or income tax withholding from the employee if the tax is paid under section 3509. Irs tax forms for 2011 You are liable for the income tax withholding regardless of whether the employee paid income tax on the wages. Irs tax forms for 2011 You continue to owe the full employer share of social security and Medicare taxes. Irs tax forms for 2011 The employee remains liable for the employee share of social security and Medicare taxes. Irs tax forms for 2011 See Internal Revenue Code section 3509 for details. Irs tax forms for 2011 Also see the Instructions for Form 941-X. Irs tax forms for 2011   Section 3509 rates are not available if you intentionally disregard the requirement to withhold taxes from the employee or if you withheld income taxes but not social security or Medicare taxes. Irs tax forms for 2011 Section 3509 is not available for reclassifying statutory employees. Irs tax forms for 2011 See Statutory employees , earlier in this section. Irs tax forms for 2011   If the employer issued required information returns, the section 3509 rates are: For social security taxes; employer rate of 6. Irs tax forms for 2011 2% plus 20% of the employee rate (see the Instructions for Form 941-X). Irs tax forms for 2011 For Medicare taxes; employer rate of 1. Irs tax forms for 2011 45% plus 20% of the employee rate of 1. Irs tax forms for 2011 45%, for a total rate of 1. Irs tax forms for 2011 74% of wages. Irs tax forms for 2011 For Additional Medicare Tax; 0. Irs tax forms for 2011 18% (20% of the employee rate of 0. Irs tax forms for 2011 9%) of wages subject to Additional Medicare Tax. Irs tax forms for 2011 For income tax withholding, the rate is 1. Irs tax forms for 2011 5% of wages. Irs tax forms for 2011   If the employer did not issue required information returns, the section 3509 rates are: For social security taxes; employer rate of 6. Irs tax forms for 2011 2% plus 40% of the employee rate (see the Instructions for Form 941-X). Irs tax forms for 2011 For Medicare taxes; employer rate of 1. Irs tax forms for 2011 45% plus 40% of the employee rate of 1. Irs tax forms for 2011 45%, for a total rate of 2. Irs tax forms for 2011 03% of wages. Irs tax forms for 2011 For Additional Medicare Tax; 0. Irs tax forms for 2011 36% (40% of the employee rate of 0. Irs tax forms for 2011 9%) of wages subject to Additional Medicare Tax. Irs tax forms for 2011 For income tax withholding, the rate is 3. Irs tax forms for 2011 0% of wages. Irs tax forms for 2011 Relief provisions. Irs tax forms for 2011   If you have a reasonable basis for not treating a worker as an employee, you may be relieved from having to pay employment taxes for that worker. Irs tax forms for 2011 To get this relief, you must file all required federal tax returns, including information returns, on a basis consistent with your treatment of the worker. Irs tax forms for 2011 You (or your predecessor) must not have treated any worker holding a substantially similar position as an employee for any periods beginning after 1977. Irs tax forms for 2011 See Publication 1976, Do You Qualify for Relief Under Section 530. Irs tax forms for 2011 IRS help. Irs tax forms for 2011   If you want the IRS to determine whether a worker is an employee, file Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding. Irs tax forms for 2011 Voluntary Classification Settlement Program (VCSP). Irs tax forms for 2011   Employers who are currently treating their workers (or a class or group of workers) as independent contractors or other nonemployees and want to voluntarily reclassify their workers as employees for future tax periods may be eligible to participate in the VCSP if certain requirements are met. Irs tax forms for 2011 To apply, use Form 8952, Application for Voluntary Classification Settlement Program (VCSP). Irs tax forms for 2011 For more information visit IRS. Irs tax forms for 2011 gov and enter “VCSP” in the search box. Irs tax forms for 2011 Business Owned and Operated by Spouses If you and your spouse jointly own and operate a business and share in the profits and losses, you are partners in a partnership, whether or not you have a formal partnership agreement. Irs tax forms for 2011 See Publication 541, Partnerships, for more details. Irs tax forms for 2011 The partnership is considered the employer of any employees, and is liable for any employment taxes due on wages paid to its employees. Irs tax forms for 2011 Exception—Qualified joint venture. Irs tax forms for 2011   For tax years beginning after December 31, 2006, the Small Business and Work Opportunity Tax Act of 2007 (Public Law 110-28) provides that a “qualified joint venture,” whose only members are spouses filing a joint income tax return, can elect not to be treated as a partnership for federal tax purposes. Irs tax forms for 2011 A qualified joint venture conducts a trade or business where: The only members of the joint venture are spouses who file a joint income tax return, Both spouses materially participate (see Material participation in the Instructions for Schedule C (Form 1040), line G) in the trade or business (mere joint ownership of property is not enough), Both spouses elect to not be treated as a partnership, and The business is co-owned by both spouses and is not held in the name of a state law entity such as a partnership or limited liability company (LLC). Irs tax forms for 2011   To make the election, all items of income, gain, loss, deduction, and credit must be divided between the spouses, in accordance with each spouse's interest in the venture, and reported on separate Schedules C or F as sole proprietors. Irs tax forms for 2011 Each spouse must also file a separate Schedule SE to pay self-employment taxes, as applicable. Irs tax forms for 2011   Spouses using the qualified joint venture rules are treated as sole proprietors for federal tax purposes and generally do not need an EIN. Irs tax forms for 2011 If employment taxes are owed by the qualified joint venture, either spouse may report and pay the employment taxes due on the wages paid to the employees using the EIN of that spouse's sole proprietorship. Irs tax forms for 2011 Generally, filing as a qualified joint venture will not increase the spouses' total tax owed on the joint income tax return. Irs tax forms for 2011 However, it gives each spouse credit for social security earnings on which retirement benefits are based and for Medicare coverage without filing a partnership return. Irs tax forms for 2011    Note. Irs tax forms for 2011 If your spouse is your employee, not your partner, see One spouse employed by another in section 3. Irs tax forms for 2011   For more information on qualified joint ventures, visit IRS. Irs tax forms for 2011 gov and enter “qualified joint venture” in the search box. Irs tax forms for 2011 Exception—Community income. Irs tax forms for 2011   If you and your spouse wholly own an unincorporated business as community property under the community property laws of a state, foreign country, or U. Irs tax forms for 2011 S. Irs tax forms for 2011 possession, you can treat the business either as a sole proprietorship (of the spouse who carried on the business) or a partnership. Irs tax forms for 2011 You may still make an election to be taxed as a qualified joint venture instead of a partnership. Irs tax forms for 2011 See Exception—Qualified joint venture , earlier. Irs tax forms for 2011 3. Irs tax forms for 2011 Family Employees Child employed by parents. Irs tax forms for 2011   Payments for the services of a child under age 18 who works for his or her parent in a trade or business are not subject to social security and Medicare taxes if the trade or business is a sole proprietorship or a partnership in which each partner is a parent of the child. Irs tax forms for 2011 If these payments are for work other than in a trade or business, such as domestic work in the parent's private home, they are not subject to social security and Medicare taxes until the child reaches age 21. Irs tax forms for 2011 However, see Covered services of a child or spouse , later in this section. Irs tax forms for 2011 Payments for the services of a child under age 21 who works for his or her parent, whether or not in a trade or business, are not subject to FUTA tax. Irs tax forms for 2011 Payments for the services of a child of any age who works for his or her parent are generally subject to income tax withholding unless the payments are for domestic work in the parent's home, or unless the payments are for work other than in a trade or business and are less than $50 in the quarter or the child is not regularly employed to do such work. Irs tax forms for 2011 One spouse employed by another. Irs tax forms for 2011   The wages for the services of an individual who works for his or her spouse in a trade or business are subject to income tax withholding and social security and Medicare taxes, but not to FUTA tax. Irs tax forms for 2011 However, the payments for services of one spouse employed by another in other than a trade or business, such as domestic service in a private home, are not subject to social security, Medicare, and FUTA taxes. Irs tax forms for 2011 Covered services of a child or spouse. Irs tax forms for 2011   The wages for the services of a child or spouse are subject to income tax withholding as well as social security, Medicare, and FUTA taxes if he or she works for: A corporation, even if it is controlled by the child's parent or the individual's spouse; A partnership, even if the child's parent is a partner, unless each partner is a parent of the child; A partnership, even if the individual's spouse is a partner; or An estate, even if it is the estate of a deceased parent. Irs tax forms for 2011 Parent employed by son or daughter. Irs tax forms for 2011   When the employer is a son or daughter employing his or her parent the following rules apply. Irs tax forms for 2011 Payments for the services of a parent in the son’s or daughter’s (the employer’s) trade or business are subject to income tax withholding and social security and Medicare taxes. Irs tax forms for 2011 Payments for the services of a parent not in the son’s or daughter’s (the employer’s) trade or business are generally not subject to social security and Medicare taxes. Irs tax forms for 2011    Social security and Medicare taxes do apply to payments made to a parent for domestic services if all of the following apply: The parent is employed by his or her son or daughter; The son or daughter (the employer) has a child or stepchild living in the home; The son or daughter (the employer) is a widow or widower, divorced, or living with a spouse who, because of a mental or physical condition, cannot care for the child or stepchild for at least 4 continuous weeks in a calendar quarter; and The child or stepchild is either under age 18 or requires the personal care of an adult for at least 4 continuous weeks in a calendar quarter due to a mental or physical condition. Irs tax forms for 2011   Payments made to a parent employed by his or her child are not subject to FUTA tax, regardless of the type of services provided. Irs tax forms for 2011 4. Irs tax forms for 2011 Employee's Social Security Number (SSN) You are required to get each employee's name and SSN and to enter them on Form W-2. Irs tax forms for 2011 This requirement also applies to resident and nonresident alien employees. Irs tax forms for 2011 You should ask your employee to show you his or her social security card. Irs tax forms for 2011 The employee may show the card if it is available. Irs tax forms for 2011 Do not accept a social security card that says “Not valid for employment. Irs tax forms for 2011 ” A social security number issued with this legend does not permit employment. Irs tax forms for 2011 You may, but are not required to, photocopy the social security card if the employee provides it. Irs tax forms for 2011 If you do not provide the correct employee name and SSN on Form W-2, you may owe a penalty unless you have reasonable cause. Irs tax forms for 2011 See Publication 1586, Reasonable Cause Regulations & Requirements for Missing and Incorrect Name/TINs, for information on the requirement to solicit the employee's SSN. Irs tax forms for 2011 Applying for a social security card. Irs tax forms for 2011   Any employee who is legally eligible to work in the United States and does not have a social security card can get one by completing Form SS-5, Application for a Social Security Card, and submitting the necessary documentation. Irs tax forms for 2011 You can get Form SS-5 at SSA offices, by calling 1-800-772-1213, or from the SSA website at www. Irs tax forms for 2011 socialsecurity. Irs tax forms for 2011 gov/online/ss-5. Irs tax forms for 2011 html. Irs tax forms for 2011 The employee must complete and sign Form SS-5; it cannot be filed by the employer. Irs tax forms for 2011 You may be asked to supply a letter to accompany Form SS-5 if the employee has exceeded his or her yearly or lifetime limit for the number of replacement cards allowed. Irs tax forms for 2011 Applying for a social security number. Irs tax forms for 2011   If you file Form W-2 on paper and your employee applied for an SSN but does not have one when you must file Form W-2, enter “Applied For” on the form. Irs tax forms for 2011 If you are filing electronically, enter all zeros (000-00-000) in the social security number field. Irs tax forms for 2011 When the employee receives the SSN, file Copy A of Form W-2c, Corrected Wage and Tax Statement, with the SSA to show the employee's SSN. Irs tax forms for 2011 Furnish copies B, C, and 2 of Form W-2c to the employee. Irs tax forms for 2011 Up to 25 Forms W-2c for each Form W-3c, Transmittal of Corrected Wage and Tax Statements, may now be filed per session over the Internet, with no limit on the number of sessions. Irs tax forms for 2011 For more information, visit the SSA's Employer W-2 Filing Instructions & Information webpage at www. Irs tax forms for 2011 socialsecurity. Irs tax forms for 2011 gov/employer. Irs tax forms for 2011 Advise your employee to correct the SSN on his or her original Form W-2. Irs tax forms for 2011 Correctly record the employee's name and SSN. Irs tax forms for 2011   Record the name and number of each employee as they are shown on the employee's social security card. Irs tax forms for 2011 If the employee's name is not correct as shown on the card (for example, because of marriage or divorce), the employee should request a corrected card from the SSA. Irs tax forms for 2011 Continue to report the employee's wages under the old name until the employee shows you an updated social security card with the new name. Irs tax forms for 2011 If the SSA issues the employee a replacement card after a name change, or a new card with a different social security number after a change in alien work status, file a Form W-2c to correct the name/SSN reported for the most recently filed Form W-2. Irs tax forms for 2011 It is not necessary to correct other years if the previous name and number were used for years before the most recent Form W-2. Irs tax forms for 2011 IRS individual taxpayer identification numbers (ITINs) for aliens. Irs tax forms for 2011   Do not accept an ITIN in place of an SSN for employee identification or for work. Irs tax forms for 2011 An ITIN is only available to resident and nonresident aliens who are not eligible for U. Irs tax forms for 2011 S. Irs tax forms for 2011 employment and need identification for other tax purposes. Irs tax forms for 2011 You can identify an ITIN because it is a nine-digit number, beginning with the number “9” with either a “7” or “8” as the fourth digit and is formatted like an SSN (for example, 9NN-7N-NNNN). Irs tax forms for 2011    An individual with an ITIN who later becomes eligible to work in the United States must obtain an SSN. Irs tax forms for 2011 If the individual is currently eligible to work in the United States, instruct the individual to apply for an SSN and follow the instructions under Applying for a social security number, earlier. Irs tax forms for 2011 Do not use an ITIN in place of an SSN on Form W-2. Irs tax forms for 2011 Verification of social security numbers. Irs tax forms for 2011   Employers and authorized reporting agents can use the Social Security Number Verification Service (SSNVS) to instantly verify up to 10 names and SSNs (per screen) at a time, or submit an electronic file of up to 250,000 names and SSNs and usually receive the results the next business day. Irs tax forms for 2011 Visit www. Irs tax forms for 2011 socialsecurity. Irs tax forms for 2011 gov/employer/ssnv. Irs tax forms for 2011 htm for more information. Irs tax forms for 2011 Registering for SSNVS. Irs tax forms for 2011   You must register online and receive authorization from your employer to use SSNVS. Irs tax forms for 2011 To register, visit SSA's website at www. Irs tax forms for 2011 ssa. Irs tax forms for 2011 gov/employer and click on the Business Services Online link. Irs tax forms for 2011 Follow the registration instructions to obtain a user identification (ID) and password. Irs tax forms for 2011 You will need to provide the following information about yourself and your company. Irs tax forms for 2011 Name. Irs tax forms for 2011 SSN. Irs tax forms for 2011 Date of birth. Irs tax forms for 2011 Type of employer. Irs tax forms for 2011 EIN. Irs tax forms for 2011 Company name, address, and telephone number. Irs tax forms for 2011 Email address. Irs tax forms for 2011   When you have completed the online registration process, SSA will mail a one-time activation code to your employer. Irs tax forms for 2011 You must enter the activation code online to use SSNVS. Irs tax forms for 2011 5. Irs tax forms for 2011 Wages and Other Compensation Wages subject to federal employment taxes generally include all pay you give to an employee for services performed. Irs tax forms for 2011 The pay may be in cash or in other forms. Irs tax forms for 2011 It includes salaries, vacation allowances, bonuses, commissions, and fringe benefits. Irs tax forms for 2011 It does not matter how you measure or make the payments. Irs tax forms for 2011 Amounts an employer pays as a bonus for signing or ratifying a contract in connection with the establishment of an employer-employee relationship and an amount paid to an employee for cancellation of an employment contract and relinquishment of contract rights are wages subject to social security, Medicare, and FUTA taxes and income tax withholding. Irs tax forms for 2011 Also, compensation paid to a former employee for services performed while still employed is wages subject to employment taxes. Irs tax forms for 2011 More information. Irs tax forms for 2011   See section 6 for a discussion of tips and section 7 for a discussion of supplemental wages. Irs tax forms for 2011 Also, see section 15 for exceptions to the general rules for wages. Irs tax forms for 2011 Publication 15-A provides additional information on wages, including nonqualified deferred compensation, and other compensation. Irs tax forms for 2011 Publication 15-B provides information on other forms of compensation, including: Accident and health benefits, Achievement awards, Adoption assistance, Athletic facilities, De minimis (minimal) benefits, Dependent care assistance, Educational assistance, Employee discounts, Employee stock options, Employer-provided cell phones, Group-term life insurance coverage, Health Savings Accounts, Lodging on your business premises, Meals, Moving expense reimbursements, No-additional-cost services, Retirement planning services, Transportation (commuting) benefits, Tuition reduction, and Working condition benefits. Irs tax forms for 2011 Employee business expense reimbursements. Irs tax forms for 2011   A reimbursement or allowance arrangement is a system by which you pay the advances, reimbursements, and charges for your employees' business expenses. Irs tax forms for 2011 How you report a reimbursement or allowance amount depends on whether you have an accountable or a nonaccountable plan. Irs tax forms for 2011 If a single payment includes both wages and an expense reimbursement, you must specify the amount of the reimbursement. Irs tax forms for 2011   These rules apply to all ordinary and necessary employee business expenses that would otherwise qualify for a deduction by the employee. Irs tax forms for 2011 Accountable plan. Irs tax forms for 2011   To be an accountable plan, your reimbursement or allowance arrangement must require your employees to meet all three of the following rules. Irs tax forms for 2011 They must have paid or incurred deductible expenses while performing services as your employees. Irs tax forms for 2011 The reimbursement or advance must be paid for the expense and must not be an amount that would have otherwise been paid by the employee. Irs tax forms for 2011 They must substantiate these expenses to you within a reasonable period of time. Irs tax forms for 2011 They must return any amounts in excess of substantiated expenses within a reasonable period of time. Irs tax forms for 2011   Amounts paid under an accountable plan are not wages and are not subject to income, social security, Medicare, and FUTA taxes. Irs tax forms for 2011   If the expenses covered by this arrangement are not substantiated (or amounts in excess of substantiated expenses are not returned within a reasonable period of time), the amount paid under the arrangement in excess of the substantiated expenses is treated as paid under a nonaccountable plan. Irs tax forms for 2011 This amount is subject to income, social security, Medicare, and FUTA taxes for the first payroll period following the end of the reasonable period of time. Irs tax forms for 2011   A reasonable period of time depends on the facts and circumstances. Irs tax forms for 2011 Generally, it is considered reasonable if your employees receive their advance within 30 days of the time they incur the expenses, adequately account for the expenses within 60 days after the expenses were paid or incurred, and return any amounts in excess of expenses within 120 days after the expenses were paid or incurred. Irs tax forms for 2011 Also, it is considered reasonable if you give your employees a periodic statement (at least quarterly) that asks them to either return or adequately account for outstanding amounts and they do so within 120 days. Irs tax forms for 2011 Nonaccountable plan. Irs tax forms for 2011   Payments to your employee for travel and other necessary expenses of your business under a nonaccountable plan are wages and are treated as supplemental wages and subject to income, social security, Medicare, and FUTA taxes. Irs tax forms for 2011 Your payments are treated as paid under a nonaccountable plan if: Your employee is not required to or does not substantiate timely those expenses to you with receipts or other documentation, You advance an amount to your employee for business expenses and your employee is not required to or does not return timely any amount he or she does not use for business expenses, You advance or pay an amount to your employee regardless of whether you reasonably expect the employee to have business expenses related to your business, or You pay an amount as a reimbursement you would have otherwise paid as wages. Irs tax forms for 2011   See section 7 for more information on supplemental wages. Irs tax forms for 2011 Per diem or other fixed allowance. Irs tax forms for 2011   You may reimburse your employees by travel days, miles, or some other fixed allowance under the applicable revenue procedure. Irs tax forms for 2011 In these cases, your employee is considered to have accounted to you if your reimbursement does not exceed rates established by the Federal Government. Irs tax forms for 2011 The 2013 standard mileage rate for auto expenses was 56. Irs tax forms for 2011 5 cents per mile. Irs tax forms for 2011 The rate for 2014 is 56 cents per mile. Irs tax forms for 2011   The government per diem rates for meals and lodging in the continental United States are listed in Publication 1542, Per Diem Rates. Irs tax forms for 2011 Other than the amount of these expenses, your employees' business expenses must be substantiated (for example, the business purpose of the travel or the number of business miles driven). Irs tax forms for 2011   If the per diem or allowance paid exceeds the amounts substantiated, you must report the excess amount as wages. Irs tax forms for 2011 This excess amount is subject to income tax withholding and payment of social security, Medicare, and FUTA taxes. Irs tax forms for 2011 Show the amount equal to the substantiated amount (for example, the nontaxable portion) in box 12 of Form W-2 using code “L. Irs tax forms for 2011 ” Wages not paid in money. Irs tax forms for 2011   If in the course of your trade or business you pay your employees in a medium that is neither cash nor a readily negotiable instrument, such as a check, you are said to pay them “in kind. Irs tax forms for 2011 ” Payments in kind may be in the form of goods, lodging, food, clothing, or services. Irs tax forms for 2011 Generally, the fair market value of such payments at the time they are provided is subject to federal income tax withholding and social security, Medicare, and FUTA taxes. Irs tax forms for 2011   However, noncash payments for household work, agricultural labor, and service not in the employer's trade or business are exempt from social security, Medicare, and FUTA taxes. Irs tax forms for 2011 Withhold income tax on these payments only if you and the employee agree to do so. Irs tax forms for 2011 Nonetheless, noncash payments for agricultural labor, such as commodity wages, are treated as cash payments subject to employment taxes if the substance of the transaction is a cash payment. Irs tax forms for 2011 Moving expenses. Irs tax forms for 2011   Reimbursed and employer-paid qualified moving expenses (those that would otherwise be deductible by the employee) paid under an accountable plan are not includible in an employee's income unless you have knowledge the employee deducted the expenses in a prior year. Irs tax forms for 2011 Reimbursed and employer-paid nonqualified moving expenses are includible in income and are subject to employment taxes and income tax withholding. Irs tax forms for 2011 For more information on moving expenses, see Publication 521, Moving Expenses. Irs tax forms for 2011 Meals and lodging. Irs tax forms for 2011   The value of meals is not taxable income and is not subject to income tax withholding and social security, Medicare, and FUTA taxes if the meals are furnished for the employer's convenience and on the employer's premises. Irs tax forms for 2011 The value of lodging is not subject to income tax withholding and social security, Medicare, and FUTA taxes if the lodging is furnished for the employer's convenience, on the employer's premises, and as a condition of employment. Irs tax forms for 2011    “For the convenience of the employer” means you have a substantial business reason for providing the meals and lodging other than to provide additional compensation to the employee. Irs tax forms for 2011 For example, meals you provide at the place of work so that an employee is available for emergencies during his or her lunch period are generally considered to be for your convenience. Irs tax forms for 2011   However, whether meals or lodging are provided for the convenience of the employer depends on all of the facts and circumstances. Irs tax forms for 2011 A written statement that the meals or lodging are for your convenience is not sufficient. Irs tax forms for 2011 50% test. Irs tax forms for 2011   If over 50% of the employees who are provided meals on an employer's business premises receive these meals for the convenience of the employer, all meals provided on the premises are treated as furnished for the convenience of the employer. Irs tax forms for 2011 If this 50% test is met, the value of the meals is excludable from income for all employees and is not subject to federal income tax withholding or employment taxes. Irs tax forms for 2011 For more information, see Publication 15-B. Irs tax forms for 2011 Health insurance plans. Irs tax forms for 2011   If you pay the cost of an accident or health insurance plan for your employees, including an employee's spouse and dependents, your payments are not wages and are not subject to social security, Medicare, and FUTA taxes, or federal income tax withholding. Irs tax forms for 2011 Generally, this exclusion also applies to qualified long-term care insurance contracts. Irs tax forms for 2011 However, for income tax withholding, the value of health insurance benefits must be included in the wages of S corporation employees who own more than 2% of the S corporation (2% shareholders). Irs tax forms for 2011 For social security, Medicare, and FUTA taxes, the health insurance benefits are excluded from the wages only for employees and their dependents or for a class or classes of employees and their dependents. Irs tax forms for 2011 See Announcement 92-16 for more information. Irs tax forms for 2011 You can find Announcement 92-16 on page 53 of Internal Revenue Bulletin 1992-5. Irs tax forms for 2011 Health Savings Accounts and medical savings accounts. Irs tax forms for 2011   Your contributions to an employee's Health Savings Account (HSA) or Archer medical savings account (MSA) are not subject to social security, Medicare, or FUTA taxes, or federal income tax withholding if it is reasonable to believe at the time of payment of the contributions they will be excludable from the income of the employee. Irs tax forms for 2011 To the extent it is not reasonable to believe they will be excludable, your contributions are subject to these taxes. Irs tax forms for 2011 Employee contributions to their HSAs or MSAs through a payroll deduction plan must be included in wages and are subject to social security, Medicare, and FUTA taxes and income tax withholding. Irs tax forms for 2011 However, HSA contributions made under a salary reduction arrangement in a section 125 cafeteria plan are not wages and are not subject to employment taxes or withholding. Irs tax forms for 2011 For more information, see the Instructions for Form 8889, Health Savings Accounts (HSAs). Irs tax forms for 2011 Medical care reimbursements. Irs tax forms for 2011   Generally, medical care reimbursements paid for an employee under an employer's self-insured medical reimbursement plan are not wages and are not subject to social security, Medicare, and FUTA taxes, or income tax withholding. Irs tax forms for 2011 See Publication 15-B for an exception for highly compensated employees. Irs tax forms for 2011 Differential wage payments. Irs tax forms for 2011   Differential wage payments are any payments made by an employer to an individual for a period during which the individual is performing service in the uniformed services while on active duty for a period of more than 30 days and represent all or a portion of the wages the individual would have received from the employer if the individual were performing services for the employer. Irs tax forms for 2011   Differential wage payments are wages for income tax withholding, but are not subject to social security, Medicare, or FUTA taxes. Irs tax forms for 2011 Employers should report differential wage payments in box 1 of Form W-2. Irs tax forms for 2011 For more information about the tax treatment of differential wage payments, visit IRS. Irs tax forms for 2011 gov and enter “employees in a combat zone” in the search box. Irs tax forms for 2011 Fringe benefits. Irs tax forms for 2011   You generally must include fringe benefits in an employee's gross income (but see Nontaxable fringe benefits next). Irs tax forms for 2011 The benefits are subject to income tax withholding and employment taxes. Irs tax forms for 2011 Fringe benefits include cars you provide, flights on aircraft you provide, free or discounted commercial flights, vacations, discounts on property or services, memberships in country clubs or other social clubs, and tickets to entertainment or sporting events. Irs tax forms for 2011 In general, the amount you must include is the amount by which the fair market value of the benefits is more than the sum of what the employee paid for it plus any amount the law excludes. Irs tax forms for 2011 There are other special rules you and your employees may use to value certain fringe benefits. Irs tax forms for 2011 See Publication 15-B for more information. Irs tax forms for 2011 Nontaxable fringe benefits. Irs tax forms for 2011   Some fringe benefits are not taxable (or are minimally taxable) if certain conditions are met. Irs tax forms for 2011 See Publication 15-B for details. Irs tax forms for 2011 The following are some examples of nontaxable fringe benefits. Irs tax forms for 2011 Services provided to your employees at no additional cost to you. Irs tax forms for 2011 Qualified employee discounts. Irs tax forms for 2011 Working condition fringes that are property or services the employee could deduct as a business expense if he or she had paid for it. Irs tax forms for 2011 Examples include a company car for business use and subscriptions to business magazines. Irs tax forms for 2011 Certain minimal value fringes (including an occasional cab ride when an employee must work overtime and meals you provide at eating places you run for your employees if the meals are not furnished at below cost). Irs tax forms for 2011 Qualified transportation fringes subject to specified conditions and dollar limitations (including transportation in a commuter highway vehicle, any transit pass, and qualified parking). Irs tax forms for 2011 Qualified moving expense reimbursement. Irs tax forms for 2011 See Moving expenses , earlier in this section, for details. Irs tax forms for 2011 The use of on-premises athletic facilities, if substantially all of the use is by employees, their spouses, and their dependent children. Irs tax forms for 2011 Qualified tuition reduction an educational organization provides to its employees for education. Irs tax forms for 2011 For more information, see Publication 970, Tax Benefits for Education. Irs tax forms for 2011 Employer-provided cell phones provided primarily for a noncompensatory business reason. Irs tax forms for 2011   However, do not exclude the following fringe benefits from the income of highly compensated employees unless the benefit is available to other employees on a nondiscriminatory basis. Irs tax forms for 2011 No-additional-cost services. Irs tax forms for 2011 Qualified employee discounts. Irs tax forms for 2011 Meals provided at an employer operated eating facility. Irs tax forms for 2011 Reduced tuition for education. Irs tax forms for 2011  For more information, including the definition of a highly compensated employee, see Publication 15-B. Irs tax forms for 2011 When fringe benefits are treated as paid. Irs tax forms for 2011   You may choose to treat certain noncash fringe benefits as paid by the pay period, by the quarter, or on any other basis you choose as long as you treat the benefits as paid at least once a year. Irs tax forms for 2011 You do not have to make a formal choice of payment dates or notify the IRS of the dates you choose. Irs tax forms for 2011 You do not have to make this choice for all employees. Irs tax forms for 2011 You may change methods as often as you like, as long as you treat all benefits provided in a calendar year as paid by December 31 of the calendar year. Irs tax forms for 2011 See Publication 15-B for more information, including a discussion of the special accounting rule for fringe benefits provided during November and December. Irs tax forms for 2011 Valuation of fringe benefits. Irs tax forms for 2011   Generally, you must determine the value of fringe benefits no later than January 31 of the next year. Irs tax forms for 2011 Before January 31, you may reasonably estimate the value of the fringe benefits for purposes of withholding and depositing on time. Irs tax forms for 2011 Withholding on fringe benefits. Irs tax forms for 2011   You may add the value of fringe benefits to regular wages for a payroll period and figure withholding taxes on the total, or you may withhold federal income tax on the value of the fringe benefits at the optional flat 25% supplemental wage rate. Irs tax forms for 2011 However, see Withholding on supplemental wages when an employee receives more than $1 million of supplemental wages during the calendar year in section 7. Irs tax forms for 2011   You may choose not to withhold income tax on the value of an employee's personal use of a vehicle you provide. Irs tax forms for 2011 You must, however, withhold social security and Medicare taxes on the use of the vehicle. Irs tax forms for 2011 See Publication 15-B for more information on this election. Irs tax forms for 2011 Depositing taxes on fringe benefits. Irs tax forms for 2011   Once you choose when fringe benefits are paid, you must deposit taxes in the same deposit period you treat the fringe benefits as paid. Irs tax forms for 2011 To avoid a penalty, deposit the taxes following the general deposit rules for that deposit period. Irs tax forms for 2011   If you determine by January 31 you overestimated the value of a fringe benefit at the time you withheld and deposited for it, you may claim a refund for the overpayment or have it applied to your next employment tax return. Irs tax forms for 2011 See Valuation of fringe benefits , earlier. Irs tax forms for 2011 If you underestimated the value and deposited too little, you may be subject to a failure-to-deposit penalty. Irs tax forms for 2011 See section 11 for information on deposit penalties. Irs tax forms for 2011   If you deposited the required amount of taxes but withheld a lesser amount from the employee, you can recover from the employee the social security, Medicare, or income taxes you deposited on his or her behalf, and included in the employee's Form W-2. Irs tax forms for 2011 However, you must recover the income taxes before April 1 of the following year. Irs tax forms for 2011 Sick pay. Irs tax forms for 2011   In general, sick pay is any amount you pay under a plan to an employee who is unable to work because of sickness or injury. Irs tax forms for 2011 These amounts are sometimes paid by a third party, such as an insurance company or an employees' trust. Irs tax forms for 2011 In either case, these payments are subject to social security, Medicare, and FUTA taxes. Irs tax forms for 2011 Sick pay becomes exempt from these taxes after the end of 6 calendar months after the calendar month the employee last worked for the employer. Irs tax forms for 2011 The payments are always subject to federal income tax. Irs tax forms for 2011 See Publication 15-A for more information. Irs tax forms for 2011 6. Irs tax forms for 2011 Tips Tips your employee receives from customers are generally subject to withholding. Irs tax forms for 2011 Your employee must report cash tips to you by the 10th of the month after the month the tips are received. Irs tax forms for 2011 The report should include tips you paid over to the employee for charge customers, tips the employee received directly from customers, and tips received from other employees under any tip-sharing arrangement. Irs tax forms for 2011 Both directly and indirectly tipped employees must report tips to you. Irs tax forms for 2011 No report is required for months when tips are less than $20. Irs tax forms for 2011 Your employee reports the tips on Form 4070, Employee's Report of Tips to Employer, or on a similar statement. Irs tax forms for 2011 The statement must be signed by the employee and must include: The employee's name, address, and SSN, Your name and address, The month or period the report covers, and The total of tips received during the month or period. Irs tax forms for 2011 Both Forms 4070 and 4070-A, Employee's Daily Record of Tips, are included in Publication 1244, Employee's Daily Record of Tips and Report to Employer. Irs tax forms for 2011 You are permitted to establish a system for electronic tip reporting by employees. Irs tax forms for 2011 See Regulations section 31. Irs tax forms for 2011 6053-1(d). Irs tax forms for 2011 Collecting taxes on tips. Irs tax forms for 2011   You must collect income tax, employee social security tax, and employee Medicare tax on the employee's tips. Irs tax forms for 2011 The withholding rules for withholding an employee's share of Medicare tax on tips also apply to withholding the Additional Medicare Tax once wages and tips exceed $200,000 in the calendar year. Irs tax forms for 2011 If an employee reports to you in writing $20 or more of tips in a month, the tips are also subject to FUTA tax. Irs tax forms for 2011   You can collect these taxes from the employee's wages or from other funds he or she makes available. Irs tax forms for 2011 See Tips treated as supplemental wages in section 7 for more information. Irs tax forms for 2011 Stop collecting the employee social security tax when his or her wages and tips for tax year 2014 reach $117,000; collect the income and employee Medicare taxes for the whole year on all wages and tips. Irs tax forms for 2011 You are responsible for the employer social security tax on wages and tips until the wages (including tips) reach the limit. Irs tax forms for 2011 You are responsible for the employer Medicare tax for the whole year on all wages and tips. Irs tax forms for 2011 File Form 941 or Form 944 to report withholding and employment taxes on tips. Irs tax forms for 2011 Ordering rule. Irs tax forms for 2011   If, by the 10th of the month after the month for which you received an employee's report on tips, you do not have enough employee funds available to deduct the employee tax, you no longer have to collect it. Irs tax forms for 2011 If there are not enough funds available, withhold taxes in the following order. Irs tax forms for 2011 Withhold on regular wages and other compensation. Irs tax forms for 2011 Withhold social security and Medicare taxes on tips. Irs tax forms for 2011 Withhold income tax on tips. Irs tax forms for 2011 Reporting tips. Irs tax forms for 2011   Report tips and any collected and uncollected social security and Medicare taxes on Form W-2 and on Form 941, lines 5b, 5c, and 5d (Form 944, lines 4b, 4c, and 4d). Irs tax forms for 2011 Report an adjustment on Form 941, line 9 (Form 944, line 6), for the uncollected social security and Medicare taxes. Irs tax forms for 2011 Enter the amount of uncollected social security tax and Medicare tax on Form W-2, box 12, with codes “A” and “B. Irs tax forms for 2011 ” Do not include any uncollected Additional Medicare Tax in box 12 of Form W-2. Irs tax forms for 2011 See section 13 and the General Instructions for Forms W-2 and W-3. Irs tax forms for 2011   Revenue Ruling 2012-18 provides guidance for employers regarding social security and Medicare taxes imposed on tips, including information on the reporting of the employer share of social security and Medicare taxes under section 3121(q), the difference between tips and service charges, and the section 45B credit. Irs tax forms for 2011 See Revenue Ruling 2012-18, 2012-26 I. Irs tax forms for 2011 R. Irs tax forms for 2011 B. Irs tax forms for 2011 1032, available at www. Irs tax forms for 2011 irs. Irs tax forms for 2011 gov/irb/2012-26_IRB/ar07. Irs tax forms for 2011 html. Irs tax forms for 2011 Allocated tips. Irs tax forms for 2011   If you operate a large food or beverage establishment, you must report allocated tips under certain circumstances. Irs tax forms for 2011 However, do not withhold income, social security, or Medicare taxes on allocated tips. Irs tax forms for 2011   A large food or beverage establishment is one that provides food or beverages for consumption on the premises, where tipping is customary, and where there were normally more than 10 employees on a typical business day during the preceding year. Irs tax forms for 2011   The tips may be allocated by one of three methods—hours worked, gross receipts, or good faith agreement. Irs tax forms for 2011 For information about these allocation methods, including the requirement to file Forms 8027 electronically if 250 or more forms are filed, see the Instructions for Form 8027. Irs tax forms for 2011 For information on filing Form 8027 electronically with the IRS, see Publication 1239. Irs tax forms for 2011 Tip Rate Determination and Education Program. Irs tax forms for 2011   Employers may participate in the Tip Rate Determination and Education Program. Irs tax forms for 2011 The program primarily consists of two voluntary agreements developed to improve tip income reporting by helping taxpayers to understand and meet their tip reporting responsibilities. Irs tax forms for 2011 The two agreements are the Tip Rate Determination Agreement (TRDA) and the Tip Reporting Alternative Commitment (TRAC). Irs tax forms for 2011 A tip agreement, the Gaming Industry Tip Compliance Agreement (GITCA), is available for the gaming (casino) industry. Irs tax forms for 2011 To get more information about TRDA and TRAC agreements, see Publication 3144, Tips on Tips. Irs tax forms for 2011 Additionally, visit IRS. Irs tax forms for 2011 gov and enter “MSU tips” in the search box to get more information about GITCA, TRDA, or TRAC agreements. Irs tax forms for 2011 7. Irs tax forms for 2011 Supplemental Wages Supplemental wages are wage payments to an employee that are not regular wages. Irs tax forms for 2011 They include, but are not limited to, bonuses, commissions, overtime pay, payments for accumulated sick leave, severance pay, awards, prizes, back pay, retroactive pay increases, and payments for nondeductible moving expenses. Irs tax forms for 2011 Other payments subject to the supplemental wage rules include taxable fringe benefits and expense allowances paid under a nonaccountable plan. Irs tax forms for 2011 How you withhold on supplemental wages depends on whether the supplemental payment is identified as a separate payment from regular wages. Irs tax forms for 2011 See Regulations section 31. Irs tax forms for 2011 3402(g)-1 for additional guidance for wages paid after January 1, 2007. Irs tax forms for 2011 Also see Revenue Ruling 2008-29, 2008-24 I. Irs tax forms for 2011 R. Irs tax forms for 2011 B. Irs tax forms for 2011 1149, available at www. Irs tax forms for 2011 irs. Irs tax forms for 2011 gov/irb/2008-24_IRB/ar08. Irs tax forms for 2011 html. Irs tax forms for 2011 Withholding on supplemental wages when an employee receives more than $1 million of supplemental wages from you during the calendar year. Irs tax forms for 2011   Special rules apply to the extent supplemental wages paid to any one employee during the calendar year exceed $1 million. Irs tax forms for 2011 If a supplemental wage payment, together with other supplemental wage payments made to the employee during the calendar year, exceeds $1 million, the excess is subject to withholding at 39. Irs tax forms for 2011 6% (or the highest rate of income tax for the year). Irs tax forms for 2011 Withhold using the 39. Irs tax forms for 2011 6% rate without regard to the employee's Form W-4. Irs tax forms for 2011 In determining supplemental wages paid to the employee during the year, include payments from all businesses under common control. Irs tax forms for 2011 For more information, see Treasury Decision 9276, 2006-37 I. Irs tax forms for 2011 R. Irs tax forms for 2011 B. Irs tax forms for 2011 423, available at www. Irs tax forms for 2011 irs. Irs tax forms for 2011 gov/irb/2006-37_IRB/ar09. Irs tax forms for 2011 html. Irs tax forms for 2011 Withholding on supplemental wage payments to an employee who does not receive $1 million of supplemental wages during the calendar year. Irs tax forms for 2011   If the supplemental wages paid to the employee during the calendar year are less than or equal to $1 million, the following rules apply in determining the amount of income tax to be withheld. Irs tax forms for 2011 Supplemental wages combined with regular wages. Irs tax forms for 2011   If you pay supplemental wages with regular wages but do not specify the amount of each, withhold federal income tax as if the total were a single payment for a regular payroll period. Irs tax forms for 2011 Supplemental wages identified separately from regular wages. Irs tax forms for 2011   If you pay supplemental wages separately (or combine them in a single payment and specify the amount of each), the federal income tax withholding method depends partly on whether you withhold income tax from your employee's regular wages. Irs tax forms for 2011 If you withheld income tax from an employee's regular wages in the current or immediately preceding calendar year, you can use one of the following methods for the supplemental wages. Irs tax forms for 2011 Withhold a flat 25% (no other percentage allowed). Irs tax forms for 2011 If the supplemental wages are paid concurrently with regular wages, add the supplemental wages to the concurrently paid regular wages. Irs tax forms for 2011 If there are no concurrently paid regular wages, add the supplemental wages to alternatively, either the regular wages paid or to be paid for the current payroll period or the regular wages paid for the preceding payroll period. Irs tax forms for 2011 Figure the income tax withholding as if the total of the regular wages and supplemental wages is a single payment. Irs tax forms for 2011 Subtract the tax withheld from the regular wages. Irs tax forms for 2011 Withhold the remaining tax from the supplemental wages. Irs tax forms for 2011 If there were other payments of supplemental wages paid during the payroll period made before the current payment of supplemental wages, aggregate all the payments of supplemental wages paid during the payroll period with the regular wages paid during the payroll period, calculate the tax on the total, subtract the tax already withheld from the regular wages and the previous supplemental wage payments, and withhold the remaining tax. Irs tax forms for 2011 If you did not withhold income tax from the employee's regular wages in the current or immediately preceding calendar year, use method 1-b. Irs tax forms for 2011 This would occur, for example, when the value of the employee's withholding allowances claimed on Form W-4 is more than the wages. Irs tax forms for 2011 Regardless of the method you use to withhold income tax on supplemental wages, they are subject to social security, Medicare, and FUTA taxes. Irs tax forms for 2011 Example 1. Irs tax forms for 2011 You pay John Peters a base salary on the 1st of each month. Irs tax forms for 2011 He is single and claims one withholding allowance. Irs tax forms for 2011 In January he is paid $1,000. Irs tax forms for 2011 Using the wage bracket tables, you withhold $50 from this amount. Irs tax forms for 2011 In February, he receives salary of $1,000 plus a commission of $2,000, which you combine with regular wages and do not separately identify. Irs tax forms for 2011 You figure the withholding based on the total of $3,000. Irs tax forms for 2011 The correct withholding from the tables is $338. Irs tax forms for 2011 Example 2. Irs tax forms for 2011 You pay Sharon Warren a base salary on the 1st of each month. Irs tax forms for 2011 She is single and claims one allowance. Irs tax forms for 2011 Her May 1 pay is $2,000. Irs tax forms for 2011 Using the wage bracket tables, you withhold $188. Irs tax forms for 2011 On May 14 she receives a bonus of $1,000. Irs tax forms for 2011 Electing to use supplemental wage withholding method 1-b, you: Add the bonus amount to the amount of wages from the most recent base salary pay date (May 1) ($2,000 + $1,000 = $3,000). Irs tax forms for 2011 Determine the amount of withholding on the combined $3,000 amount to be $338 using the wage bracket tables. Irs tax forms for 2011 Subtract the amount withheld from wages on the most recent base salary pay date (May 1) from the combined withholding amount ($338 – $188 = $150). Irs tax forms for 2011 Withhold $150 from the bonus payment. Irs tax forms for 2011 Example 3. Irs tax forms for 2011 The facts are the same as in Example 2, except you elect to use the flat rate method of withholding on the bonus. Irs tax forms for 2011 You withhold 25% of $1,000, or $250, from Sharon's bonus payment. Irs tax forms for 2011 Example 4. Irs tax forms for 2011 The facts are the same as in Example 2, except you elect to pay Sharon a second bonus of $2,000 on May 28. Irs tax forms for 2011 Using supplemental wage withholding method 1-b, you: Add the first and second bonus amounts to the amount of wages from the most recent base salary pay date (May 1) ($2,000 + $1,000 + $2,000 = $5,000). Irs tax forms for 2011 Determine the amount of withholding on the combined $5,000 amount to be $781 using the wage bracket tables. Irs tax forms for 2011 Subtract the amounts withheld from wages on the most recent base salary pay date (May 1) and the amounts withheld from the first bonus payment from the combined withholding amount ($781 – $188 – $150 = $443). Irs tax forms for 2011 Withhold $443 from the second bonus payment. Irs tax forms for 2011 Tips treated as supplemental wages. Irs tax forms for 2011   Withhold income tax on tips from wages earned by the employee or from other funds the employee makes available. Irs tax forms for 2011 If an employee receives regular wages and reports tips, figure income tax withholding as if the tips were supplemental wages. Irs tax forms for 2011 If you have not withheld income tax from the regular wages, add the tips to the regular wages. Irs tax forms for 2011 Then withhold income tax on the total. Irs tax forms for 2011 If you withheld income tax from the regular wages, you can withhold on the tips by method 1-a or 1-b discussed earlier in this section under Supplemental wages identified separately from regular wages. Irs tax forms for 2011 Vacation pay. Irs tax forms for 2011   Vacation pay is subject to withholding as if it were a regular wage payment. Irs tax forms for 2011 When vacation pay is in addition to regular wages for the vacation period, treat it as a supplemental wage payment. Irs tax forms for 2011 If the vacation pay is for a time longer than your usual payroll period, spread it over the pay periods for which you pay it. Irs tax forms for 2011 8. Irs tax forms for 2011 Payroll Period Your payroll period is a period of service for which you usually pay wages. Irs tax forms for 2011 When you have a regular payroll period, withhold income tax for that time period even if your employee does not work the full period. Irs tax forms for 2011 No regular payroll period. Irs tax forms for 2011   When you do not have a regular payroll period, withhold the tax as if you paid wages for a daily or miscellaneous payroll period. Irs tax forms for 2011 Figure the number of days (including Sundays and holidays) in the period covered by the wage payment. Irs tax forms for 2011 If the wages are unrelated to a specific length of time (for example, commissions paid on completion of a sale), count back the number of days from the payment period to the latest of: The last wage payment made during the same calendar year, The date employment began, if during the same calendar year, or January 1 of the same year. Irs tax forms for 2011 Employee paid for period less than 1 week. Irs tax forms for 2011   When you pay an employee for a period of less than one week, and the employee signs a statement under penalties of perjury indicating he or she is not working for any other employer during the same week for wages subject to withholding, figure withholding based on a weekly payroll period. Irs tax forms for 2011 If the employee later begins to work for another employer for wages subject to withholding, the employee must notify you within 10 days. Irs tax forms for 2011 You then figure withholding based on the daily or miscellaneous period. Irs tax forms for 2011 9. Irs tax forms for 2011 Withholding From Employees' Wages Income Tax Withholding Using Form W-4 to figure withholding. Irs tax forms for 2011   To know how much federal income tax to withhold from employees' wages, you should have a Form W-4 on file for each employee. Irs tax forms for 2011 Encourage your employees to file an updated Form W-4 for 2014, especially if they owed taxes or received a large refund when filing their 2013 tax return. Irs tax forms for 2011 Advise your employees to use the IRS Withholding Calculator on the IRS website at www. Irs tax forms for 2011 irs. Irs tax forms for 2011 gov/individuals for help in determining how many withholding allowances to claim on their Forms W-4. Irs tax forms for 2011   Ask all new employees to give you a signed Form W-4 when they start work. Irs tax forms for 2011 Make the form effective with the first wage payment. Irs tax forms for 2011 If a new employee does not give you a completed Form W-4, withhold income tax as if he or she is single, with no withholding allowances. Irs tax forms for 2011 Form in Spanish. Irs tax forms for 2011   You can provide Formulario W-4(SP), Certificado de Exención de Retenciones del Empleado, in place of Form W-4, to your Spanish-speaking employees. Irs tax forms for 2011 For more information, see Publicación 17(SP), El Impuesto Federal sobre los Ingresos (Para Personas Físicas). Irs tax forms for 2011 The rules discussed in this section that apply to Form W-4 also apply to Formulario W-4(SP). Irs tax forms for 2011 Electronic system to receive Form W-4. Irs tax forms for 2011   You may establish a system to electronically receive Forms W-4 from your employees. Irs tax forms for 2011 See Regulations section 31. Irs tax forms for 2011 3402(f)(5)-1(c) for more information. Irs tax forms for 2011 Effective date of Form W-4. Irs tax forms for 2011   A Form W-4 remains in effect until the employee gives you a new one. Irs tax forms for 2011 When you receive a new Form W-4 from an employee, do not adjust withholding for pay periods before the effective date of the new form. Irs tax forms for 2011 If an employee gives you a Form W-4 that replaces an existing Form W-4, begin withholding no later than the start of the first payroll period ending on or after the 30th day from the date when you received the replacement Form W-4. Irs tax forms for 2011 For exceptions, see Exemption from federal income tax withholding , IRS review of requested Forms W-4 , and Invalid Forms W-4 , later in this section. Irs tax forms for 2011 A Form W-4 that makes a change for the next calendar year will not take effect in the current calendar year. Irs tax forms for 2011 Successor employer. Irs tax forms for 2011   If you are a successor employer (see Successor employer , later in this section), secure new Forms W-4 from the transferred employees unless the “Alternative Procedure” in section 5 of Revenue Procedure 2004-53 applies. Irs tax forms for 2011 See Revenue Procedure 2004-53, 2004-34 I. Irs tax forms for 2011 R. Irs tax forms for 2011 B. Irs tax forms for 2011 320, available at www. Irs tax forms for 2011 irs. Irs tax forms for 2011 gov/irb/2004-34_IRB/ar13. Irs tax forms for 2011 html. Irs tax forms for 2011 Completing Form W-4. Irs tax forms for 2011   The amount of any federal income tax withholding must be based on marital status and withholding allowances. Irs tax forms for 2011 Your employees may not base their withholding amounts on a fixed dollar amount or percentage. Irs tax forms for 2011 However, an employee may specify a dollar amount to be withheld in addition to the amount of withholding based on filing status and withholding allowances claimed on Form W-4. Irs tax forms for 2011 Employees may claim fewer withholding allowances than they are entitled to claim. Irs tax forms for 2011 They may wish to claim fewer allowances to ensure they have enough withholding or to offset the tax on other sources of taxable income not subject to withholding. Irs tax forms for 2011 See Publication 505, Tax Withholding and Estimated Tax, for more information about completing Form W-4. Irs tax forms for 2011 Along with Form W-4, you may wish to order Publication 505 for use by your employees. Irs tax forms for 2011 Do not accept any withholding or estimated tax payments from your employees in addition to withholding based on their Form W-4. Irs tax forms for 2011 If they require additional withholding, they should submit a new Form W-4 and, if necessary, pay estimated tax by filing Form 1040-ES, Estimated Tax for Individuals, or by using the Electronic Federal Tax Payment System (EFTPS) to make estimated tax payments. Irs tax forms for 2011 Exemption from federal income tax withholding. Irs tax forms for 2011   Generally, an employee may claim exemption from federal income tax withholding because he or she had no income tax liability last year and expects none this year. Irs tax forms for 2011 See the Form W-4 instructions for more information. Irs tax forms for 2011 However, the wages are still subject to social security and Medicare taxes. Irs tax forms for 2011 See also Invalid Forms W-4 , later in this section. Irs tax forms for 2011   A Form W-4 claiming exemption from withholding is effective when it is filed with the employer and only for that calendar year. Irs tax forms for 2011 To continue to be exempt from withholding in the next calendar year, an employee must give you a new Form W-4 by February 15. Irs tax forms for 2011 If the employee does not give you a new Form W-4 by February 15, begin withholding based on the last Form W-4 for the employee that did not claim an exemption from withholding or, if one was not filed, then withhold tax as if he or she is single with zero withholding allowances. Irs tax forms for 2011 If the employee provides a new Form W-4 claiming exemption from withholding on February 16 or later, you may apply it to future wages but do not refund any taxes already withheld. Irs tax forms for 2011 Withholding income taxes on the wages of nonresident alien employees. Irs tax forms for 2011   In general, you must withhold federal income taxes on the wages of nonresident alien employees. Irs tax forms for 2011 However, see Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities, for exceptions to this general rule. Irs tax forms for 2011 Also see section 3 of Publication 51 (Circular A), Agricultural Employer's Tax Guide, for guidance on H-2A visa workers. Irs tax forms for 2011 Withholding adjustment for nonresident alien employees. Irs tax forms for 2011   For 2014, apply the procedure discussed next to figure the amount of income tax to withhold from the wages of nonresident alien employees performing services within the United States. Irs tax forms for 2011 Nonresident alien students from India and business apprentices from India are not subject to this procedure. Irs tax forms for 2011 Instructions. Irs tax forms for 2011   To figure how much income tax to withhold from the wages paid to a nonresident alien employee performing services in the United States, use the following steps. Irs tax forms for 2011 Step 1. Irs tax forms for 2011   Add to the wages paid to the nonresident alien employee for the payroll period the amount shown in the chart below for the applicable payroll period. Irs tax forms for 2011    Amount to Add to Nonresident Alien Employee's Wages for Calculating Income Tax Withholding Only   Payroll Period Add Additional     Weekly $ 43. Irs tax forms for 2011 30     Biweekly 86. Irs tax forms for 2011 50     Semimonthly 93. Irs tax forms for 2011 80     Monthly 187. Irs tax forms for 2011 50     Quarterly 562. Irs tax forms for 2011 50     Semiannually 1,125. Irs tax forms for 2011 00     Annually 2,250. Irs tax forms for 2011 00     Daily or Miscellaneous (each day of the payroll period) 8. Irs tax forms for 2011 70   Step 2. Irs tax forms for 2011   Use the amount figured in Step 1 and the number of withholding allowances claimed (generally limited to one allowance) to figure income tax withholding. Irs tax forms for 2011 Determine the value of withholding allowances by multiplying the number of withholding allowances claimed by the appropriate amount from Table 5. Irs tax forms for 2011 Percentage Method—2014 Amount for One Withholding Allowance shown on page 41. Irs tax forms for 2011 If you are using the Percentage Method Tables for Income Tax Withholding, provided on pages 43–44, reduce the amount figured in Step 1 by the value of withholding allowances and use that reduced amount to figure the income tax withholding. Irs tax forms for 2011 If you are using the Wage Bracket Method for Income Tax Withholding, provided on pages 45–64, use the amount figured in Step 1 and the number of withholding allowances to figure income tax withholding. Irs tax forms for 2011 The amounts from the chart above are added to wages solely for calculating income tax withholding on the wages of the nonresident alien employee. Irs tax forms for 2011 The amounts from the chart should not be included in any box on the employee's Form W-2 and do not increase the income tax liability of the employee. Irs tax forms for 2011 Also, the amounts from the chart do not increase the social security tax or Medicare tax liability of the employer or the employee, or the FUTA tax liability of the employer. Irs tax forms for 2011 This procedure only applies to nonresident alien employees who have wages subject to income tax withholding. Irs tax forms for 2011 Example. Irs tax forms for 2011 An employer using the percentage method of withholding pays wages of $500 for a biweekly payroll period to a married nonresident alien employee. Irs tax forms for 2011 The nonresident alien has properly completed Form W-4, entering marital status as “single” with one withholding allowance and indicating status as a nonresident alien on Form W-4, line 6 (see Nonresident alien employee's Form W-4 , later in this section). Irs tax forms for 2011 The employer determines the wages to be used in the withholding tables by adding to the $500 amount of wages paid the amount of $86. Irs tax forms for 2011 50 from the chart under Step 1 ($586. Irs tax forms for 2011 50 total). Irs tax forms for 2011 The employer then applies the applicable tables to determine the income tax withholding for nonresident aliens (see Step 2 ). Irs tax forms for 2011 Reminder: If you use the Percentage Method Tables for Income Tax Withholding, reduce the amount figured in Step 1 by the value of withholding allowances and use that reduced amount to figure income tax withholding. Irs tax forms for 2011 The $86. Irs tax forms for 2011 50 added to wages for calculating income tax withholding is not reported on Form W-2, and does not increase the income tax liability of the employee. Irs tax forms for 2011 Also, the $86. Irs tax forms for 2011 50 added to wages does not affect the social security tax or Medicare tax liability of the employer or the employee, or the FUTA tax liability of the employer. Irs tax forms for 2011 Supplemental wage payment. Irs tax forms for 2011   This procedure for determining the amount of income tax withholding does not apply to a supplemental wage payment (see section 7) if the 39. Irs tax forms for 2011 6% mandatory flat rate withholding applies or if the 25% optional flat rate withholding is being used to calculate income tax withholding on the supplemental wage payment. Irs tax forms for 2011 Nonresident alien employee's Form W-4. Irs tax forms for 2011   When completing Forms W-4, nonresident aliens are required to: Not claim exemption from income tax withholding, Request withholding as if they are single, regardless of their actual marital status, Claim only one allowance (if the nonresident alien is a resident of Canada, Mexico, or South Korea, or a student or business apprentice from India, he or she may claim more than one allowance), and Write “Nonresident Alien” or “NRA” above the dotted line on line 6 of Form W-4. Irs tax forms for 2011   If you maintain an electronic Form W-4 system, you should provide a field for nonresident aliens to enter nonresident alien status in lieu of writing “Nonresident Alien” or “NRA” above the dotted line on line 6. Irs tax forms for 2011 A nonresident alien employee may request additional withholding at his or her option for other purposes, although such additions should not be necessary for withholding to cover federal income tax liability related to employment. Irs tax forms for 2011 Form 8233. Irs tax forms for 2011   If a nonresident alien employee claims a tax treaty exemption from withholding, the employee must submit Form 8233, Exemption From Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual, with respect to the income exempt under the treaty, instead of Form W-4. Irs tax forms for 2011 See Publication 515 for details. Irs tax forms for 2011 IRS review of requested Forms W-4. Irs tax forms for 2011   When requested by the IRS, you must make original Forms W-4 available for inspection by an IRS employee. Irs tax forms for 2011 You may also be directed to send certain Forms W-4 to the IRS. Irs tax forms for 2011 You may receive a notice from the IRS requiring you to submit a copy of Form W-4 for one or more of your named employees. Irs tax forms for 2011 Send the requested copy or copies of Form W-4 to the IRS at the address provided and in the manner directed by the notice. Irs tax forms for 2011 The IRS may also require you to submit copies of Form W-4 to the IRS as directed by Treasury Decision 9337, 2007-35 I. Irs tax forms for 2011 R. Irs tax forms for 2011 B. Irs tax forms for 2011 455, which is available at www. Irs tax forms for 2011 irs. Irs tax forms for 2011 gov/irb/2007-35_IRB/ar10. Irs tax forms for 2011 html. Irs tax forms for 2011 When we refer to Form W-4, the same rules apply to Formulario W-4(SP), its Spanish translation. Irs tax forms for 2011 After submitting a copy of a requested Form W-4 to the IRS, continue to withhold federal income tax based on that Form W-4 if it is valid (see Invalid Forms W-4 , later in this section). Irs tax forms for 2011 However, if the IRS later notifies you in writing the employee is not entitled to claim exemption from withholding or a claimed number of withholding allowances, withhold federal income tax based on the effective date, marital status, and maximum number of withholding allowances specified in the IRS notice (commonly referred to as a "lock-in letter
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The Irs Tax Forms For 2011

Irs tax forms for 2011 5. Irs tax forms for 2011   Credits Table of Contents Credit for the Elderly or the DisabledCan You Take the Credit? Figuring the Credit Child and Dependent Care Credit Earned Income Credit (EIC)Do You Qualify for the Earned Income Credit (EIC)? Figuring the EIC This chapter briefly discusses the credit for the elderly or disabled, the child and dependent care credit, and the earned income credit. Irs tax forms for 2011 You may be able to reduce your federal income tax by claiming one or more of these credits. Irs tax forms for 2011 Credit for the Elderly or the Disabled This section explains who qualifies for the credit for the elderly or the disabled and how to figure this credit. Irs tax forms for 2011 For more information, see Publication 524, Credit for the Elderly or the Disabled. Irs tax forms for 2011 You can take the credit only if you file Form 1040 or Form 1040A. Irs tax forms for 2011 You cannot take the credit if you file Form 1040EZ or Form 1040NR. Irs tax forms for 2011 Can You Take the Credit? You can take the credit for the elderly or the disabled if you meet both of the following requirements. Irs tax forms for 2011 You are a qualified individual. Irs tax forms for 2011 Your income is not more than certain limits. Irs tax forms for 2011  You can use Figure 5-A and Figure 5-B as guides to see if you are eligible for the credit. Irs tax forms for 2011   Qualified Individual You are a qualified individual for this credit if you are a U. Irs tax forms for 2011 S. Irs tax forms for 2011 citizen or resident alien, and either of the following applies. Irs tax forms for 2011 You were age 65 or older at the end of 2013. Irs tax forms for 2011 You were under age 65 at the end of 2013 and all three of the following statements are true. Irs tax forms for 2011 You retired on permanent and total disability (explained later). Irs tax forms for 2011 You received taxable disability income for 2013. Irs tax forms for 2011 On January 1, 2013, you had not reached mandatory retirement age (defined later under Disability income ). Irs tax forms for 2011 Age 65. Irs tax forms for 2011 You are considered to be age 65 on the day before your 65th birthday. Irs tax forms for 2011 Therefore, you are considered to be age 65 at the end of 2013 if you were born before January 2, 1949. Irs tax forms for 2011 Figure 5-A. Irs tax forms for 2011 Are You a Qualified Individual? This image is too large to be displayed in the current screen. Irs tax forms for 2011 Please click the link to view the image. Irs tax forms for 2011 Figure 5-A, Are you a qualified individual? U. Irs tax forms for 2011 S. Irs tax forms for 2011 citizen or resident alien. Irs tax forms for 2011   You must be a U. Irs tax forms for 2011 S. Irs tax forms for 2011 citizen or resident alien (or be treated as a resident alien) to take the credit. Irs tax forms for 2011 Generally, you cannot take the credit if you were a nonresident alien at any time during the tax year. Irs tax forms for 2011 Exceptions. Irs tax forms for 2011   You may be able to take the credit if you are a nonresident alien who is married to a U. Irs tax forms for 2011 S. Irs tax forms for 2011 citizen or resident alien at the end of the tax year and you and your spouse choose to treat you as a U. Irs tax forms for 2011 S. Irs tax forms for 2011 resident alien. Irs tax forms for 2011 If you make that choice, both you and your spouse are taxed on your worldwide income. Irs tax forms for 2011   If you were a nonresident alien at the beginning of the year and a resident alien at the end of the year, and you were married to a U. Irs tax forms for 2011 S. Irs tax forms for 2011 citizen or resident alien at the end of the year, you may be able to choose to be treated as a U. Irs tax forms for 2011 S. Irs tax forms for 2011 resident alien for the entire year. Irs tax forms for 2011 In that case, you may be allowed to take the credit. Irs tax forms for 2011   For information on these choices, see chapter 1 of Publication 519, U. Irs tax forms for 2011 S. Irs tax forms for 2011 Tax Guide for Aliens. Irs tax forms for 2011 Married persons. Irs tax forms for 2011   Generally, if you are married at the end of the tax year, you and your spouse must file a joint return to take the credit. Irs tax forms for 2011 However, if you and your spouse did not live in the same household at any time during the tax year, you can file either a joint return or separate returns and still take the credit. Irs tax forms for 2011 Head of household. Irs tax forms for 2011   You can file as head of household and qualify to take the credit even if your spouse lived with you during the first 6 months of the year if you meet certain tests. Irs tax forms for 2011 See Publication 524 and Publication 501. Irs tax forms for 2011 Under age 65. Irs tax forms for 2011   If you are under age 65 at the end of 2013, you can qualify for the credit only if you are retired on permanent and total disability and have taxable disability income (discussed later under Disability income ). Irs tax forms for 2011 You are considered to be under age 65 at the end of 2013 if you were born after January 1, 1949. Irs tax forms for 2011 You are retired on permanent and total disability if: You were permanently and totally disabled when you retired, and You retired on disability before the end of the tax year. Irs tax forms for 2011   Even if you do not retire formally, you may be considered retired on disability when you have stopped working because of your disability. Irs tax forms for 2011 If you retired on disability before 1977 and were not permanently and totally disabled at the time, you can qualify for the credit if you were permanently and totally disabled on January 1, 1976, or January 1, 1977. Irs tax forms for 2011 Permanent and total disability. Irs tax forms for 2011   You are permanently and totally disabled if you cannot engage in any substantial gainful activity because of your physical or mental condition. Irs tax forms for 2011 A physician must certify that the condition has lasted or can be expected to last continuously for 12 months or more, or that the condition can be expected to result in death. Irs tax forms for 2011 See Physician's statement , later. Irs tax forms for 2011 Substantial gainful activity. Irs tax forms for 2011   Substantial gainful activity is the performance of significant duties over a reasonable period of time while working for pay or profit, or in work generally done for pay or profit. Irs tax forms for 2011   Full-time work (or part-time work done at the employer's convenience) in a competitive work situation for at least the minimum wage conclusively shows that you are able to engage in substantial gainful activity. Irs tax forms for 2011   Substantial gainful activity is not work you do to take care of yourself or your home. Irs tax forms for 2011 It is not unpaid work on hobbies, institutional therapy or training, school attendance, clubs, social programs, and similar activities. Irs tax forms for 2011 However, doing this kind of work may show that you are able to engage in substantial gainful activity. Irs tax forms for 2011    Figure 5-B. Irs tax forms for 2011 Income Limits IF your filing status is. Irs tax forms for 2011 . Irs tax forms for 2011 . Irs tax forms for 2011 THEN even if you qualify (see Figure 5-A), you CANNOT take the credit if: Your adjusted gross income (AGI)* is equal to or more than. Irs tax forms for 2011 . Irs tax forms for 2011 . Irs tax forms for 2011 OR the total of your nontaxable social security and other nontaxable pension(s), annuities, or disability income is equal to or more than. Irs tax forms for 2011 . Irs tax forms for 2011 . Irs tax forms for 2011 single, head of household, or qualifying widow(er) with dependent child $17,500 $5,000 married filing jointly and only one spouse qualifies in Figure 5-A $20,000 $5,000 married filing jointly and both spouses qualify in Figure 5-A $25,000 $7,500 married filing separately and you lived apart from your spouse for all of 2013 $12,500 $3,750 *AGI is the amount on Form 1040A, line 22, or Form 1040, line 38      The fact that you have not worked for some time is not, of itself, conclusive evidence that you cannot engage in substantial gainful activity. Irs tax forms for 2011 Physician's statement. Irs tax forms for 2011   If you are under age 65, you must have your physician complete a statement certifying that you were permanently and totally disabled on the date you retired. Irs tax forms for 2011   You do not have to file this statement with your tax return, but you must keep it for your records. Irs tax forms for 2011 The Instructions for Schedule R (Form 1040A or 1040) include a statement your physician can complete and that you can keep for your records. Irs tax forms for 2011 Veterans. Irs tax forms for 2011   If the Department of Veterans Affairs (VA) certifies that you are permanently and totally disabled, you can substitute VA Form 21-0172, Certification of Permanent and Total Disability, for the physician's statement you are required to keep. Irs tax forms for 2011 VA Form 21-0172 must be signed by a person authorized by the VA to do so. Irs tax forms for 2011 You can get this form from your local VA regional office. Irs tax forms for 2011 Physician's statement obtained in earlier year. Irs tax forms for 2011   If you got a physician's statement in an earlier year and, due to your continued disabled condition, you were unable to engage in any substantial gainful activity during 2013, you may not need to get another physician's statement for 2013. Irs tax forms for 2011 For a detailed explanation of the conditions you must meet, see the instructions for Schedule R (Form 1040A or 1040), Part II. Irs tax forms for 2011 If you meet the required conditions, you must check the box on Schedule R (Form 1040A or 1040), Part II, line 2. Irs tax forms for 2011   If you checked Schedule R (Form 1040A or 1040), Part I, box 4, 5, or 6, print in the space above the box in Part II, line 2, the first name(s) of the spouse(s) for whom the box is checked. Irs tax forms for 2011 Disability income. Irs tax forms for 2011   If you are under age 65, you must also have taxable disability income to qualify for the credit. Irs tax forms for 2011   Disability income must meet the following two requirements. Irs tax forms for 2011 It must be paid under your employer's accident or health plan or pension plan. Irs tax forms for 2011 It must be included in your income as wages (or payments in lieu of wages) for the time you are absent from work because of permanent and total disability. Irs tax forms for 2011 Payments that are not disability income. Irs tax forms for 2011   Any payment you receive from a plan that does not provide for disability retirement is not disability income. Irs tax forms for 2011 Any lump-sum payment for accrued annual leave that you receive when you retire on disability is a salary payment and is not disability income. Irs tax forms for 2011   For purposes of the credit for the elderly or the disabled, disability income does not include amounts you receive after you reach mandatory retirement age. Irs tax forms for 2011 Mandatory retirement age is the age set by your employer at which you would have had to retire had you not become disabled. Irs tax forms for 2011 Figuring the Credit You can figure the credit yourself, or the IRS will figure it for you. Irs tax forms for 2011 Figuring the credit yourself. Irs tax forms for 2011   If you figure the credit yourself, fill out the front of Schedule R (Form 1040A or 1040). Irs tax forms for 2011 Next, fill out Schedule R (Form 1040A or 1040), Part III. Irs tax forms for 2011 Credit figured for you. Irs tax forms for 2011   If you can take the credit and you want the IRS to figure the credit for you, see Publication 524 or the Instructions for Schedule R (Form 1040A or 1040). Irs tax forms for 2011 If you want the IRS to figure your tax, see chapter 30 of Publication 17, Your Federal Income Tax. Irs tax forms for 2011 Child and Dependent Care Credit You may be able to claim this credit if you pay someone to care for your dependent who is under age 13 or for your spouse or dependent who is not able to care for himself or herself. Irs tax forms for 2011 The credit can be up to 35% of your expenses. Irs tax forms for 2011 To qualify, you must pay these expenses so you can work or look for work. Irs tax forms for 2011 If you claim this credit, you must include on your return the name and taxpayer identification number (generally the social security number) of each qualifying person for whom care is provided. Irs tax forms for 2011 If the correct information is not shown, the credit may be reduced or disallowed. Irs tax forms for 2011 You also must show on your return the name, address, and the taxpayer identification number of the person(s) or organization(s) that provided the care. Irs tax forms for 2011 For more information, see Publication 503, Child and Dependent Care Expenses. Irs tax forms for 2011 Earned Income Credit (EIC) The earned income credit (EIC) is a refundable tax credit for certain people who work and have earned income under $51,567. Irs tax forms for 2011 The EIC is available to persons with or without a qualifying child. Irs tax forms for 2011 Credit has no effect on certain welfare benefits. Irs tax forms for 2011   Any refund you receive because of the EIC cannot be counted as income when determining whether you or anyone else is eligible for benefits or assistance, or how much you or anyone else can receive, under any federal program or under any state or local program financed in whole or in part with federal funds. Irs tax forms for 2011 These programs include the following. Irs tax forms for 2011 Medicaid and supplemental security income (SSI). Irs tax forms for 2011 Supplemental Nutrition Assistance Program (food stamps). Irs tax forms for 2011 Low-income housing. Irs tax forms for 2011 Temporary Assistance for Needy Families (TANF). Irs tax forms for 2011  In addition, when determining eligibility, the refund cannot be counted as a resource for at least 12 months after you receive it. Irs tax forms for 2011 Check with your local benefit coordinator to find out if your refund will affect your benefits. Irs tax forms for 2011 Do You Qualify for the Earned Income Credit (EIC)? Use Table 5-1 as an initial guide to the rules you must meet in order to qualify for the EIC. Irs tax forms for 2011 The specific rules you must meet depend on whether you have a qualifying child. Irs tax forms for 2011 If you have a qualifying child, the rules in Parts A, B, and D apply to you. Irs tax forms for 2011 If you do not have a qualifying child, the rules in Parts A, C, and D apply to you. Irs tax forms for 2011  If, after reading all the rules in each part that applies to you, you think you may qualify for the credit, see Publication 596, Earned Income Credit, for more details about the EIC. Irs tax forms for 2011 You can also find information about the EIC in the instructions for Form 1040 (line 64a), Form 1040A (line 38a), or Form 1040EZ (line 8a). Irs tax forms for 2011 The sections that follow provide additional information for some of the rules. Irs tax forms for 2011 Adjusted gross income (AGI). Irs tax forms for 2011   Under Rule 1, you cannot claim the EIC unless your AGI is less than the applicable limit shown in Part A of Table 5-1. Irs tax forms for 2011 Your AGI is the amount on line 37 (Form 1040), line 21 (Form 1040A), or line 4 (Form 1040EZ). Irs tax forms for 2011 Table 5-1. Irs tax forms for 2011 Earned Income Credit (EIC) in a Nutshell First, you must meet all the rules in this column. Irs tax forms for 2011 Second, you must meet all the rules in one of these columns, whichever applies. Irs tax forms for 2011 Third, you must meet the rule in this column. Irs tax forms for 2011 Part A. Irs tax forms for 2011  Rules for Everyone Part B. Irs tax forms for 2011  Rules If You Have a Qualifying Child Part C. Irs tax forms for 2011  Rules If You Do Not Have a Qualifying Child Part D. Irs tax forms for 2011  Figuring and Claiming the EIC 1. Irs tax forms for 2011 Your adjusted gross income (AGI) must be less than: •$46,227 ($51,567 for married filing jointly) if you have three or more qualifying children, •$43,038 ($48,378 for married filing jointly) if you have two qualifying children, •$37,870 ($43,210 for married filing jointly) if you have one qualifying child, or  •$14,340 ($19,680 for married filing jointly) if you do not have a qualifying child. Irs tax forms for 2011 2. Irs tax forms for 2011 You must have a valid social security number. Irs tax forms for 2011  3. Irs tax forms for 2011 Your filing status cannot be “Married filing separately. Irs tax forms for 2011 ” 4. Irs tax forms for 2011 You must be a U. Irs tax forms for 2011 S. Irs tax forms for 2011 citizen or resident alien all year. Irs tax forms for 2011  5. Irs tax forms for 2011 You cannot file Form 2555 or Form 2555-EZ (relating to foreign earned income). Irs tax forms for 2011  6. Irs tax forms for 2011 Your investment income must be $3,300 or less. Irs tax forms for 2011  7. Irs tax forms for 2011 You must have earned income. Irs tax forms for 2011 8. Irs tax forms for 2011 Your child must meet the relationship, age, residency, and joint return tests. Irs tax forms for 2011  9. Irs tax forms for 2011 Your qualifying child cannot be used by more than one person to claim the EIC. Irs tax forms for 2011  10. Irs tax forms for 2011 You generally cannot be a qualifying child of another person. Irs tax forms for 2011 11. Irs tax forms for 2011 You must be at least age 25 but under age 65. Irs tax forms for 2011  12. Irs tax forms for 2011 You cannot be the dependent of another person. Irs tax forms for 2011  13. Irs tax forms for 2011 You generally cannot be a qualifying child of another person. Irs tax forms for 2011  14. Irs tax forms for 2011 You must have lived in the United States more than half of the year. Irs tax forms for 2011 15. Irs tax forms for 2011 Your earned income must be less than: •$46,227 ($51,567 for married filing jointly) if you have three or more qualifying children, •$43,038 ($48,378 for married filing jointly) if you have two qualifying children, •$37,870 ($43,210 for married filing jointly) if you have one qualifying child, or •$14,340 ($19,680 for married filing jointly) if you do not have a qualifying child. Irs tax forms for 2011 Social security number. Irs tax forms for 2011   Under Rule 2, you (and your spouse if you are married filing jointly) must have a valid social security number (SSN) issued by the Social Security Administration (SSA). Irs tax forms for 2011 Any qualifying child listed on Schedule EIC also must have a valid SSN. Irs tax forms for 2011 (See Qualifying child , later, if you have a qualifying child. Irs tax forms for 2011 )   If your social security card (or your spouse's if you are married filing jointly) says “Not valid for employment” and your SSN was issued so that you (or your spouse) could get a federally funded benefit, you cannot get the EIC. Irs tax forms for 2011 An example of a federally funded benefit is Medicaid. Irs tax forms for 2011 Investment income. Irs tax forms for 2011   Under Rule 6, you cannot claim the EIC unless your investment income is $3,300 or less. Irs tax forms for 2011 If your investment income is more than $3,300, you cannot claim the credit. Irs tax forms for 2011 For most people, investment income is the total of the following amounts. Irs tax forms for 2011 Taxable interest (line 8a of Form 1040 or 1040A). Irs tax forms for 2011 Tax-exempt interest (line 8b of Form 1040 or 1040A). Irs tax forms for 2011 Dividend income (line 9a of Form 1040 or 1040A). Irs tax forms for 2011 Capital gain net income (line 13 of Form 1040, if more than zero, or line 10 of Form 1040A). Irs tax forms for 2011  If you file Form 1040EZ, your investment income is the total of the amount of line 2 and the amount of any tax-exempt interest you wrote to the right of the words “Form 1040EZ” on line 2. Irs tax forms for 2011   For more information about investment income, see Publication 596, Earned Income Credit. Irs tax forms for 2011 Earned income. Irs tax forms for 2011   Under Rule 7, you must have earned income to claim the EIC. Irs tax forms for 2011 Under Rule 15, you cannot claim the EIC unless your earned income is less than the applicable limit shown in Table 5-1, Part D. Irs tax forms for 2011 Earned income includes all of the following types of income. Irs tax forms for 2011 Wages, salaries, tips, and other taxable employee pay. Irs tax forms for 2011 Employee pay is earned income only if it is taxable. Irs tax forms for 2011 Nontaxable employee pay, such as certain dependent care benefits and adoption benefits, is not earned income. Irs tax forms for 2011 But there is an exception for nontaxable combat pay, which you can choose to include in earned income. Irs tax forms for 2011 Net earnings from self-employment. Irs tax forms for 2011 Gross income received as a statutory employee. Irs tax forms for 2011 Gross income defined. Irs tax forms for 2011   Gross income means all income you received in the form of money, goods, property, and services that is not exempt from tax, including any income from sources outside the United States or from the sale of your main home (even if you can exclude part or all of it). Irs tax forms for 2011 Do not include any social security benefits unless (a) you are married filing a separate tax return and you lived with your spouse at any time in 2013, or (b) one-half of your social security benefits plus your other gross income and any tax-exempt interest is more than $25,000 ($32,000 if married filing jointly). Irs tax forms for 2011 If (a) or (b) applies, see the instructions for Form 1040, lines 20a and 20b to figure the taxable part of social security benefits you must include in gross income. Irs tax forms for 2011 Self-employed persons. Irs tax forms for 2011   If you are self-employed and your net earnings are $400 or more, be sure to correctly fill out Schedule SE (Form 1040), Self-Employment Tax, and pay the proper amount of self-employment tax. Irs tax forms for 2011 If you do not, you may not get all the credit to which you are entitled. Irs tax forms for 2011 Disability benefits. Irs tax forms for 2011   If you retired on disability, taxable benefits you receive under your employer's disability retirement plan are considered earned income until you reach minimum retirement age. Irs tax forms for 2011 Minimum retirement age generally is the earliest age at which you could have received a pension or annuity if you were not disabled. Irs tax forms for 2011 Beginning on the day after you reach minimum retirement age, payments you receive are taxable as a pension and are not considered earned income. Irs tax forms for 2011   Payments you received from a disability insurance policy that you paid the premiums for are not earned income. Irs tax forms for 2011 It does not matter whether you have reached minimum retirement age. Irs tax forms for 2011 If this policy is through your employer, the amount may be shown in box 12 of your Form W-2 with code J. Irs tax forms for 2011 Income that is not earned income. Irs tax forms for 2011   Examples of items that are not earned income under Rule 7 include interest and dividends, pensions and annuities, social security and railroad retirement benefits (including disability benefits — except for payments covered under Disability benefits earlier), alimony and child support, welfare benefits, workers' compensation benefits, unemployment compensation (insurance), nontaxable foster care payments, and veterans' benefits, including VA rehabilitation payments. Irs tax forms for 2011 Do not include any of these items in your earned income. Irs tax forms for 2011 Workfare payments. Irs tax forms for 2011   Nontaxable workfare payments are not earned income for the EIC. Irs tax forms for 2011 These are cash payments certain people receive from a state or local agency that administers public assistance programs funded under the federal Temporary Assistance for Needy Families (TANF) program in return for certain work activities such as (1) work experience activities (including remodeling or repairing public housing) if sufficient private sector employment is not available, or (2) community service program activities. Irs tax forms for 2011 Qualifying child. Irs tax forms for 2011   Under Rule 8, your child is a qualifying child if your child meets four tests. Irs tax forms for 2011 The four tests are: Relationship, Age, Residency, and Joint return. Irs tax forms for 2011   The four tests are illustrated in Figure 5-C. Irs tax forms for 2011 See Publication 596 for more information about each test. Irs tax forms for 2011 Figure 5-C. Irs tax forms for 2011 Tests for Qualifying Child A qualifying child for the EIC is a child who is your. Irs tax forms for 2011 . Irs tax forms for 2011 . Irs tax forms for 2011 Son, daughter, stepchild, foster child,  or a descendant of any of them (for example, your grandchild) OR Brother, sister, half brother, half sister, stepbrother,  stepsister, or a descendant of any of them (for example, your  niece or nephew) was . Irs tax forms for 2011 . Irs tax forms for 2011 . Irs tax forms for 2011 Under age 19 at the end of 2013 and younger than you (or your spouse if filing jointly) OR Under age 24 at the end of 2013, a student, and younger than you (or your spouse if filing jointly) OR Permanently and totally disabled at any time during the year, regardless of age who. Irs tax forms for 2011 . Irs tax forms for 2011 . Irs tax forms for 2011 Is not filing a joint return for 2013  (or is filing a joint return for 2013 only as a claim for refund of income tax withheld or estimated tax paid) who. Irs tax forms for 2011 . Irs tax forms for 2011 . Irs tax forms for 2011 Lived with you in the United States for more than half of 2013. Irs tax forms for 2011  If the child did not live with you for the required time, see Publication 596 for more information. Irs tax forms for 2011 Figuring the EIC To figure the amount of your credit, you have two choices. Irs tax forms for 2011 Have the IRS figure the EIC for you. Irs tax forms for 2011 If you want to do this, see IRS Will Figure the EIC for You in Publication 596. Irs tax forms for 2011 Figure the EIC yourself. Irs tax forms for 2011 If you want to do this, see How To Figure the EIC Yourself in Publication 596. Irs tax forms for 2011 Prev  Up  Next   Home   More Online Publications