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

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

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

3. E-File for FREE

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

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

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

Military

How To File An Amended Return For 20121040x TaxState Tax Forms 20121040ez Electronic FilingFile 2011 Taxes FreeAmended Tax1040 Ez 2011Free Online Tax FilingCan I Efile My 2011 Tax Return1040nr Tax ReturnHow To File 2010 Tax ReturnAmend My ReturnFile Income Tax 2014Free Fillable State Tax FormsIrs Income Tax Forms 20112014 1040ez Tax Form2012 Irs Tax Forms 1040aHow Much Does H And R Block Charge For TaxesHow To File A 1040 Ez1040x Tax Amendment FormHow Long Does An Amended Tax Return TakeAmendment Form For Taxes1040ez Income Tax FormFederal Tax Forms 1040ezHow To File An Amended Return For 2011Irs 1040 Ez Form 2012Tax Act 2010 DownloadUsafFree Income Tax Preparation2011 Tax Return Form 1040Form 1040ez 2010Amend 2009 TaxesHow To File State And Federal Taxes For FreeMyfreetaxes 2014Irs Tax Forms 2011 DownloadNeed To Amend 2012 Tax ReturnFreestatetaxact.comIrs Form 1040Www.irs.govform1040xIncome Tax Amendment Form

Military

Military Publication 80 - Main Content Table of Contents Introduction 1. Military Employer Identification Number (EIN) 2. Military Who Are Employees?Tests. Military Business Owned and Operated by Spouses Farm Crew Leaders 3. Military Employee's Social Security Number (SSN)Registering for SSNVS. Military 4. Military Wages and Other CompensationFringe Benefits 5. Military TipsOrdering rule. Military 6. Military Social Security and Medicare Taxes for FarmworkersThe $150 Test or the $2,500 Test 7. Military How To Figure Social Security and Medicare TaxesHousehold and agricultural employers. Military 8. Military Depositing TaxesPayment with Return When To Deposit How To Deposit Deposit Penalties 9. Military Employer's ReturnsReporting Adjustments to Form 941-SS, 944-SS, 944, or 943 Current Period Adjustments Prior Period Adjustments 10. Military Wage and Tax StatementsWaiver. Military 11. Military Federal Unemployment (FUTA) Tax—U. Military S. Military Virgin Islands Employers Only How To Get Tax Help Introduction This publication is for employers whose principal place of business is in the U. Military S. Military Virgin Islands, Guam, American Samoa, or the Commonwealth of the Northern Mariana Islands, or who have employees who are subject to income tax withholding for any of these jurisdictions. Military Employers and employees in these areas are generally subject to social security and Medicare taxes under the Federal Insurance Contributions Act (FICA). Military See section 6 and section 7 for more information. Military This publication summarizes employer responsibilities to collect, pay, and report these taxes. Military Whenever the term “United States” is used in this publication, it includes U. Military S. Military Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands. Military This publication also provides employers in the U. Military S. Military Virgin Islands with a summary of their responsibilities in connection with the tax under the Federal Unemployment Tax Act, known as FUTA tax. Military See section 11 for more information. Military Except as shown in the table in section 12, social security, Medicare, and FUTA taxes apply to every employer who pays taxable wages to employees or who has employees who report tips. Military This publication does not include information relating to the self-employment tax (for social security and Medicare of self-employed persons). Military See Publication 570, Tax Guide for Individuals With Income From U. Military S. Military Possessions, if you need this information. Military This publication also does not include information relating to income tax withholding. Military In U. Military S. Military Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands, contact your local tax department for information about income tax withholding. Military See Publication 15 (Circular E), for information on U. Military S. Military federal income tax withholding. Military Comments and suggestions. Military   We welcome your comments about this publication and your suggestions for future editions. Military   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. Military NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Military Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Military    You can also send us comments from www. Military irs. Military gov/formspubs. Military Click on More Information and then click on Comment on Tax Forms and Publications. Military   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax forms, instructions, and publications. Military 1. Military Employer Identification Number (EIN) An employer identification number (EIN) is a nine-digit number that the IRS issues. Military Its format is 00-0000000. Military It is used to identify the tax accounts of employers and certain other organizations and entities that have no employees. Military Use your EIN on all of the items that you send to the IRS and SSA for your business. Military If you do not have an EIN, you may apply for one online. Military Go to IRS. Military gov and click on the Apply for an EIN Online link under Tools. Military You may also apply for an EIN by calling 1-800-829-4933, (U. Military S. Military Virgin Islands only) or 267-941-1099 (toll call), or you can fax or mail Form SS-4, Application for Employer Identification Number, to the IRS. Military Do not use a social security number (SSN) in place of an EIN. Military If you do not have an EIN by the time a return is due, file a paper return and enter “Applied For” and the date that you applied for it in the space shown for the number. Military If you took over another employer's business, do not use that employer's EIN. Military You should have only one EIN. Military If you have more than one, write to the IRS office where you file your returns using the “without a payment” address in the Instructions for Form 941-SS, Instructions for Form 944, or Instructions for Form 943. Military Or call the IRS Business & Specialty Tax Line at 1-800-829-4933 (U. Military S. Military Virgin Islands only) or 267-941-1000 (toll call). Military Persons who are deaf, hard of hearing, or have a speech disability (TDD/TTY users) in the U. Military S. Military Virgin Islands may call 1-800-829-4059. Military The IRS will tell you which EIN to use. Military For more information, see Publication 1635, Employer Identification Number: Understanding Your EIN, or Publication 583, Starting a Business and Keeping Records. Military 2. Military Who Are Employees? Generally, employees are defined either under common law or under special statutes for certain situations. Military See Publication 15-A, Employer's Supplemental Tax Guide, for details on statutory employees and nonemployees. Military Employee status under common law. Military   Generally, a worker who performs services for you is your employee if you can control what will be done and how it will be done. Military This is so even when you give the employee freedom of action. Military What matters is that you have the right to control the details of how the services are performed. Military See Publication 15-A for more information on how to determine whether an individual providing services is an independent contractor or an employee. Military    Generally, people in business for themselves are not employees. Military For example, doctors, lawyers, veterinarians, and others in an independent trade in which they offer their services to the public are usually not employees. Military However, if the business is incorporated, corporate officers who work in the business are employees of the corporation. Military   If an employer-employee relationship exists, it does not matter what it is called. Military The employee may be called an agent or independent contractor. Military It also does not matter how payments are measured or paid, what they are called, or if the employee works full or part time. Military Statutory employees. Military   There are also some special definitions of employees for social security, Medicare, and FUTA taxes. Military   While the following persons may not be common law employees, they are considered employees for social security and Medicare purposes if the conditions under Tests , discussed later, are met. Military a. Military   An agent (or commission) driver who delivers food or beverages (other than milk) or picks up and delivers laundry or dry cleaning for someone else. Military b. Military   A full-time life insurance salesperson who sells primarily for one company. Military c. Military   A homeworker who works by the 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. Military d. Military   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. Military The orders must be for merchandise for resale or supplies for use in the customer's business. Military The customers must be retailers, wholesalers, contractors, or operators of hotels, restaurants, or other businesses dealing with food or lodging. Military Tests. Military   Withhold social security and Medicare taxes from statutory employees' wages if all three of the following tests apply. Military The service contract states or implies that almost all of the services are to be performed personally by them. Military They have little or no investment in the equipment and property used to perform the services (other than an investment in transportation facilities). Military The services are performed on a continuing basis for the same payer. Military Persons in a or d, earlier, are also employees for FUTA tax purposes if tests 1 through 3 are met (U. Military S. Military Virgin Islands only). Military   Publication 15-A gives examples of the employer-employee relationship. Military Statutory nonemployees. Military   Certain direct sellers, qualified real estate agents, and certain companion sitters are, by law, considered nonemployees. Military They are generally treated as self-employed for employment tax purposes. Military See Publication 15-A for details. Military H-2A agricultural workers. Military   On Form W-2, do not check box 13 (Statutory employee) as H-2A workers are not statutory employees. Military Treating employees as nonemployees. Military   If you incorrectly treated an employee as a nonemployee and did not withhold social security and Medicare taxes, you will be liable for the taxes. Military See Treating employees as nonemployees in section 2 of Publication 15 (Circular E), for details on Internal Revenue Code section 3509, which may apply. Military IRS help. Military   If you want the IRS to determine if a worker is an employee, file Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding. Military Voluntary Classification Settlement Program (VCSP). Military   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. Military To apply, use Form 8952, Application for Voluntary Classification Settlement Program (VCSP). Military For more information, visit IRS. Military gov and enter “VCSP” in the search box. Military 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. Military See Publication 541, Partnerships, for more details. Military The partnership is considered the employer of any employees, and is liable for any employment taxes due on wages paid to its employees. Military Exception—Qualified Joint Venture. Military   If you and your spouse materially participate as the only members of a jointly owned and operated business, and you file a joint Form 1040, U. Military S. Military Individual Income Tax Return, or joint Form 1040-SS, U. Military S. Military Self-Employment Tax Return—U. Military S. Military Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, or Puerto Rico, you can make a joint election to be taxed as a qualified joint venture instead of a partnership. Military See the Instructions for Schedule C (Form 1040) or the Instructions for Form 1040-SS. Military Spouses electing qualified joint venture status are treated as sole proprietors for federal tax purposes. Military Either of the sole proprietor spouses may report and pay the employment taxes due on wages paid to the employees, using the EIN of that spouse’s sole proprietorship. Military For more information on qualified joint ventures, visit IRS. Military gov and enter “qualified joint venture” in the search box. Military Farm Crew Leaders You are an employer of farmworkers if you are a crew leader. Military A crew leader is a person who furnishes and pays (either on his or her own behalf or on behalf of the farm operator) workers to do farmwork for the farm operator. Military If there is no written agreement between you and the farm operator stating that you are his or her employee, and if you pay the workers (either for yourself or for the farm operator), then you are a crew leader. Military 3. Military Employee's Social Security Number (SSN) An employee's social security number (SSN) consists of nine digits separated as follows: 000-00-0000. Military You must get each employee's name and SSN and enter them on Form W-2AS, W-2CM, W-2GU, or W-2VI. Military If you do not report the employee's correct name and SSN, you may owe a penalty unless you have reasonable cause. Military See Publication 1586, Reasonable Cause Regulations and Requirements for Missing and Incorrect Name/TINs, for information on the requirement to solicit the employee's SSN. Military Employee's social security card. Military   You should ask the employee to show you his or her social security card. Military The employee may show the card if it is available. Military Do not accept a social security card that says “Not valid for employment. Military ” A social security number issued with this legend does not permit employment. Military You may, but you are not required to, photocopy the social security card if the employee provides it. Military If an employee does not have a social security card or needs a new one, the employee should apply for one on Form SS-5 and submit the necessary documentation. Military The employee must complete and sign Form SS-5; it cannot be filed by the employer. Military 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. Military If your employee has applied for an SSN but has not received the card before you must file your Form W-2 reports, and you are filing your reports on paper, enter “Applied For” in box d. Military Enter all zeroes in the SSN field if filing electronically. Military When the employee receives the SSN, file Copy A of Form W-2c with SSA to show the employee's SSN. Military Correctly record the employee's name and SSN. Military   Record the name and number of each employee as they appear on his or her social security card. Military If the 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. Military Continue to use the old name until the employee shows you the replacement social security card with the corrected name. Military   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 on the most recently filed Form W-2AS, W-2CM, W-2GU, or W-2VI. Military It is not necessary to correct other years if the previous name and SSN were used for years before the most recent Form W-2. Military Where to get and file social security number application forms. Military    U. Military S. Military Virgin Islands—U. Military S. Military Social Security Administration, 8000 Nisky Center, First Floor, Suite 2, St. Military Thomas, VI 00802. Military  Guam—U. Military S. Military Social Security Administration, 655 Harmon Loop Road, Suite 300, Dededo, GU 96929. Military  American Samoa—U. Military S. Military Social Security Administration, Pago Plaza, Suite 117, Pago Pago, AS 96799. Military  Commonwealth of the Northern Mariana Islands—U. Military S. Military Social Security Administration, MH Building, Suite 201, Saipan, MP 96950. Military Verification of social security numbers. Military   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. Military Visit www. Military socialsecurity. Military gov/employer/ssnv. Military htm for more information. Military Registering for SSNVS. Military   You must register online and receive authorization from your employer to use SSNVS. Military To register, visit SSA's website at www. Military ssa. Military gov/employer and click on the Business Services Online link. Military Follow the registration instructions to obtain a user identification (ID) and password. Military You will need to provide the following information about yourself and your company. Military Name. Military SSN. Military Date of birth. Military Type of employer. Military EIN. Military Company name, address, and telephone number. Military Email address. Military   When you have completed the online registration process, SSA will mail a one-time activation code to your employer. Military You must enter the activation code online to use SSNVS. Military 4. Military Wages and Other Compensation Generally, all wages are subject to social security and Medicare tax (and FUTA tax for U. Military S. Military Virgin Islands employers). Military However, wages subject to social security tax and FUTA tax are limited by a wage base amount that you pay to each employee for the year. Military The wage base for social security tax is $117,000 for 2014. Military After you pay $117,000 to an employee in 2014, including tips, do not withhold social security tax on any amount that you later pay to the employee for the year. Military The wage base for FUTA tax is $7,000 for 2014. Military All wages are subject to Medicare tax. Military The wages may be in cash or in other forms, such as an automobile for personal use. Military Wages include salaries, vacation allowances, bonuses, commissions, and fringe benefits. Military It does not matter how payments are measured or paid. Military See the table in section 12 for exceptions to social security, Medicare, and FUTA taxes on wages. Military See section 5 and section 6 for a discussion of how the rules apply to tips and farmworkers. Military Social security and Medicare taxes apply to most payments of sick pay, including payments by third parties such as insurance companies. Military Special rules apply to the reporting of third-party sick pay. Military For details, see Publication 15-A. Military Determine the value of noncash pay (such as goods, lodging, and meals) by its fair market value. Military However, see Fringe Benefits , later in this section. Military Except for farmworkers and household employees, this kind of pay may be subject to social security, Medicare, and FUTA taxes. Military Back pay, including retroactive wage increases (but not amounts paid as liquidated damages), is taxed as ordinary wages in the year paid. Military For information on reporting back pay to the Social Security Administration, see Publication 957, Reporting Back Pay and Special Wage Payments to the Social Security Administration. Military Travel and business expenses. Military   Payments to your employee for travel and other necessary expenses of your business generally are included in taxable wages if (a) your employee is not required to or does not substantiate timely those expenses to you with receipts or other documentation, or (b) you advance an amount to your employee for business expenses and your employee is not required to or does not return timely any amount that he or she does not substantiate. Military Sick pay. Military   In general, sick pay is any amount that you pay, under a plan that you take part in, to an employee because of sickness or injury. Military These amounts are sometimes paid by a third party, such as an insurance company. Military In either case, these payments are subject to social security and Medicare taxes (and FUTA tax for U. Military S. Military Virgin Islands employers). Military 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. Military Publication 15-A explains the employment tax rules that apply to sick pay, disability benefits, and similar payments to employees. Military Fringe Benefits Generally, fringe benefits are includible in the gross income of an employee and are subject to employment taxes. Military Examples of fringe benefits include the use of an automobile, aircraft flights that you provide, free or discounted commercial airline flights, vacations, discounts on property or services, memberships in country clubs or other social clubs, and tickets to entertainment or sporting events. Military In general, the amount included in the employee's income is the excess of the fair market value of the benefit over the sum of any amount paid for it by the employee and any amount excluded by law. Military For more information, see Publication 15-B, Employer's Tax Guide to Fringe Benefits. Military When fringe benefits are treated as paid. Military   You can choose to treat certain noncash fringe benefits (including personal use of an automobile provided by you) as paid by the pay period, quarter, or on any other basis that you choose, but they must be treated as paid at least annually. Military You do not have to make a formal choice of payment dates or notify the IRS. Military You do not have to use the same basis for all employees. Military You may change methods as often as you like, as long as all benefits provided in a calendar year are treated as paid no later than December 31 of the calendar year. Military However, see Special accounting rule for fringe benefits provided during November and December , later in this section. Military   You can treat the value of a single taxable noncash fringe benefit as paid on one or more dates in the same calendar year, even if the employee gets the entire benefit at one time. Military However, once you elect the payment dates, you must report the taxes on your return in the same tax period in which you treated them as paid. Military This election does not apply to a fringe benefit where real property or investment personal property is transferred. Military Withholding social security and Medicare taxes on fringe benefits. Military   You add the value of fringe benefits to regular wages for a payroll period and figure social security and Medicare taxes on the total. Military   If you withhold less than the required amount of social security and Medicare taxes from the employee in a calendar year but report and pay the proper amount, you may recover the taxes from the employee. Military Depositing taxes on fringe benefits. Military   Once you choose payment dates for taxable noncash fringe benefits, you must deposit taxes in the same deposit period that you treat the fringe benefits as paid. Military You may make a reasonable estimate of the value of the fringe benefits. Military In general, the value of taxable noncash fringe benefits provided in a calendar year must be determined by January 31 of the following year. Military   You may claim a refund of overpayments or elect to have any overpayment applied to the next employment tax return. Military If deposits are underpaid, see Deposit Penalties in section 8. Military Valuation of vehicles provided to employees. Military    If you provide a vehicle to your employees, you may either determine the actual value of the benefit for the entire calendar year, taking into account the business use of the vehicle, or consider the entire use for the calendar year as personal and include 100% of the value of the vehicle in the employee's income. Military For reporting information to employees, see the box 14 instructions in the General Instructions for Forms W-2 and W-3. Military Special accounting rule for fringe benefits provided during November and December. Military   You may choose to treat the value of taxable noncash fringe benefits provided during November and December as paid in the next year. Military However, this applies only to those benefits that you actually provided during November and December, not to those you merely treated as paid during those months. Military   If you use this rule, you must notify each affected employee between the time of the employee's last paycheck of the calendar year and at or near the time that you give the employee Form W-2AS, W-2CM, W-2GU, or W-2VI. Military If you use the special accounting rule, your employee must also use it for the same period that you use it. Military You cannot use this rule for a fringe benefit of real property or tangible or intangible real property of a kind normally held for investment that is transferred to your employee. Military 5. Military Tips Tips that your employee receives from customers are generally subject to social security and Medicare withholding. Military Your employee must report cash tips to you by the 10th of the month after the month that the tips are received. Military 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. Military Both directly and indirectly tipped employees must report tips to you. Military The report should not include tips that the employee paid out to other employees. Military No report is required for months when tips are less than $20. Military Your employees report tips on Form 4070, Employee's Report of Tips to Employer, or on a similar statement. Military They may also use Form 4070A, Employee's Daily Record of Tips, to keep a record of their tips. Military Both forms are included in Publication 1244, Employee's Daily Record of Tips and Report to Employer, available at IRS. Military gov. Military 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 that the report covers, and The total tips received during the month or period. Military You are permitted to establish a system for electronic tip reporting by employees. Military See Regulations section 31. Military 6053-1(d). Military Collecting taxes on tips. Military   You must collect the employee social security and Medicare taxes on the employee's tips. Military You can also collect these taxes from the employee's wages or from other funds that he or she makes available. Military Stop collecting the employee social security tax when his or her total wages and tips for 2014 reach $117,000. Military Collect the employee Medicare tax for the whole year on all wages and tips. Military   You are responsible for the employer social security tax on wages and tips until the wages (including tips) reach the wage base limit. Military You are responsible for the employer Medicare tax for the whole year on all wages and tips. Military File Form 941-SS (or Form 944) to report withholding and employer taxes on tips. Military 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. Military Ordering rule. Military   If, by the 10th of the month after the month you received an employee's report on tips, you do not have enough employee funds available to deduct the employee social security and Medicare tax on tips, you no longer have to collect it and are not liable for it. Military Reporting tips. Military   Report tips and any collected and uncollected social security in boxes 1, 5, 7, and 12 on Forms W-2AS, W-2CM, W-2GU, or W-2VI and on Form 941-SS, lines 5b, 5c, and 5d (Form 944, lines 4b, 4c, and 4d). Military Do not include any uncollected Additional Medicare Tax in box 12 of Form W-2. Military Report an adjustment on Form 941-SS, line 9 (Form 944, line 6), for the uncollected social security and Medicare taxes. Military The table in section 12 shows how tips are treated for FUTA tax purposes. Military   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. Military See Revenue Ruling 2012-18, 2012-26 I. Military R. Military B. Military 1032, available at www. Military irs. Military gov/irb/2012-26_IRB/ar07. Military html. Military 6. Military Social Security and Medicare Taxes for Farmworkers The tests described below apply only to services that are defined as agricultural labor (farmwork). Military In general, you are an employer of farmworkers if your employees: Raise or harvest agricultural or horticultural products on your farm (including the raising and feeding of livestock); Work in connection with the operation, management, conservation, improvement, or maintenance of your farm and its tools and equipment; Provide services relating to salvaging timber, or clearing land of brush and other debris, left by a hurricane (also known as hurricane labor); Handle, process, or package any agricultural or horticultural commodity if you produced over half of the commodity (for a group of up to 20 unincorporated operators, all of the commodity); or Do work for you related to cotton ginning, turpentine, gum resin products, or the operation and maintenance of irrigation facilities. Military For this purpose, the term “farm” includes stock, dairy, poultry, fruit, fur-bearing animal, and truck farms, as well as plantations, ranches, nurseries, ranges, greenhouses or other similar structures used primarily for the raising of agricultural or horticultural commodities, and orchards. Military Farmwork does not include reselling activities that do not involve any substantial activity of raising agricultural or horticultural commodities, such as a retail store or a greenhouse used primarily for display or storage. Military A “share farmer” working for you is not your employee. Military However, the share farmer may be subject to self-employment tax. Military In general, share farming is an arrangement in which certain commodity products are shared between the farmer and the owner (or tenant) of the land. Military For details, see Regulations section 31. Military 3121(b)(16)-1. Military The $150 Test or the $2,500 Test All cash wages that you pay to any employee for farmwork are subject to social security and Medicare taxes if either of the following two tests is met. Military You pay cash wages to the employee of $150 or more in a year (count all cash wages paid on a time, piecework, or other basis) for farmwork. Military The $150 test applies separately to each farmworker that you employ. Military If you employ a family of workers, each member is treated separately. Military Do not count wages paid by other employers. Military The total that you pay for farmwork (cash and noncash) to all of your employees is $2,500 or more during the year. Military Exceptions. Military   The $150 and $2,500 tests do not apply to wages that you pay to a farmworker who receives less than $150 in annual cash wages and the wages are not subject to social security and Medicare taxes even if you pay $2,500 or more in that year to all of your farmworkers if the farmworker: Is employed in agriculture as a hand-harvest laborer, Is paid piece rates in an operation that is usually paid on a piece-rate basis in the region of employment, Commutes daily from his or her home to the farm, and Had been employed in agriculture less than 13 weeks in the preceding calendar year. Military   Amounts that you pay to these seasonal farmworkers, however, count toward the $2,500-or-more test to determine whether wages that you pay to other farmworkers are subject to social security and Medicare taxes. Military 7. Military How To Figure Social Security and Medicare Taxes The tax rate for social security is 6. Military 2% (amount withheld) each for the employer and employee (12. Military 4% total). Military The social security wage base limit is $117,000. Military The tax rate for Medicare is 1. Military 45% (amount withheld) each for the employee and employer (2. Military 9% total). Military There is no wage base limit for Medicare tax; all covered wages are subject to Medicare tax. Military Multiply each wage payment by these percentages to figure the tax to withhold from employees. Military Employers report both the employee and employer shares on Forms 941-SS, 944, or Form 943 (farm employment). Military See section 5 for information on tips. Military Additional Medicare Tax withholding. Military   In addition to withholding Medicare tax at 1. Military 45%, you must withhold a 0. Military 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. Military You are required to begin withholding Additional Medicare Tax in the pay period in which you pay wages in excess of $200,000 to an employee and continue to withhold it each pay period until the end of the calendar year. Military Additional Medicare Tax is only imposed on the employee. Military There is no employer share of Additional Medicare Tax. Military All wages that are subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 withholding threshold. Military   For more information on what wages are subject to Medicare tax, see the chart Special Rules for Various Types of Employment and Payments in section 12. Military For more information on Additional Medicare Tax, visit IRS. Military gov and enter “Additional Medicare Tax” in the search box. Military Deducting the tax. Military   Deduct the employee tax from each wage payment. Military If you are not sure that the wages that you pay to a farmworker during the year will be taxable, you may either deduct the tax when you make the payments or wait until the $2,500 test or the $150 test explained in section 6 has been met. Military Employee's portion of taxes paid by employer. Military   If you pay your employee's social security and Medicare taxes without deducting them from the employee's pay, you must include the amount of the payments in the employee's wages for social security and Medicare taxes. Military This increase in the employee's wage payment for your payment of the employee's social security and Medicare taxes is also subject to employee social security and Medicare taxes. Military This again increases the amount of the additional taxes that you must pay. Military Household and agricultural employers. Military   This discussion does not apply to household and agricultural employers. Military If you pay a household or agricultural employee's social security and Medicare taxes, these payments must be included in the employee's wages. Military However, this wage increase due to the tax payments is not subject to social security or Medicare taxes as discussed in this section. Military See Publication 15-A for details. Military Sick pay payments. Military   Social security and Medicare taxes apply to most payments of sick pay, including payments made by third parties such as insurance companies. Military For details on third-party payers of sick pay, see Publication 15-A. Military 8. Military Depositing Taxes You must deposit social security and Medicare taxes if your tax liability (Form 941-SS, line 10; Form 944, line 7; or Form 943, line 11) is $2,500 or more for the tax return period. Military You must make the deposit by electronic funds transfer. Military For more information about electronic funds transfers, see How To Deposit , later in this section. Military Payment with Return $2,500 rule. Military   Instead of making deposits during the current quarter, you can pay your total Form 941-SS tax liability when you timely file Form 941-SS if: Your total Form 941-SS tax liability for either the current quarter or the preceding quarter is less than $2,500 and You do not incur a $100,000 next-day deposit obligation during the current quarter. Military   If you are not sure your total liability for the current quarter will be less than $2,500, (and your liability for the preceding quarter was not less than $2,500), make deposits using the semiweekly or monthly rules so you won't be subject to failure to deposit penalties. Military Employers who have been notified to file Form 944 can pay their tax liability due for the fourth quarter with Form 944, if their fourth quarter tax liability is less than $2,500. Military Employers must have deposited any tax liability due for the first, second, and third quarters, according to the deposit rules, in order to avoid failure-to-deposit penalties for deposits due during those quarters. Military Only monthly schedule depositors are allowed to make an Accuracy of Deposits Rule payment with the return. Military Semiweekly schedule depositors must timely deposit the amount. Military See Accuracy of Deposits Rule and How To Deposit, later in this section. Military When To Deposit Under the rules discussed below, the only difference between farm and nonfarm workers' employment tax deposit rules is the lookback period. Military Therefore, farm and nonfarm workers are discussed together except where noted. Military Depending on your total taxes reported during a lookback period (discussed later), you are either a monthly schedule depositor or a semiweekly schedule depositor. Military The terms “monthly schedule depositor” and “semiweekly schedule depositor” do not refer to how often you pay your employees or how often you are required to make deposits. Military The terms identify which set of rules that you must follow when a tax liability arises (for example, when you have a payday). Military You will need to determine your deposit schedule for a calendar year based on the total employment taxes reported on Forms 941-SS, line 10; Form 944, line 7; or Form 943, line 9, for your lookback period (defined below). Military If you filed both Forms 941-SS and 941 during the lookback period, combine the tax liabilities for these returns for purposes of determining your deposit schedule. Military Determine your deposit schedule for Form 943 separately from Forms 941-SS and 941. Military Lookback period for employers of nonfarm workers. Military   The lookback period for Form 941-SS (or Form 941) consists of four quarters beginning July 1 of the second preceding year and ending June 30 of the prior year. Military These four quarters are your lookback period even if you did not report any taxes for any of the quarters. Military For 2014, the lookback period is July 1, 2012, through June 30, 2013. Military    Table 1. Military Lookback Period for Calendar Year 2014 Lookback Period July 1, 2012 Oct. Military 1, 2012 Jan. Military 1, 2013 Apr. Military 1, 2013 through through through through Sep. Military 30, 2012 Dec. Military 31, 2012 Mar. Military 31, 2013 June 30, 2013    The lookback period for Form 944 is the second calendar year preceding the current calendar year. Military For example, the lookback period for calendar year 2014 is calendar year 2012. Military In addition, for employers who filed Form 944 for 2012 or for 2013 and will file Form 941-SS (or Form 941) for 2014, the lookback period for 2014 is the second calendar year preceding the current calendar year, that is, 2012. Military Lookback period for employers of farmworkers. Military   The lookback period for Form 943 is the second calendar year preceding the current calendar year. Military The lookback period for calendar year 2014 is calendar year 2012. Military Adjustments to lookback period taxes. Military   To determine your taxes for the lookback period, use only the tax that you reported on the original returns (Forms 941-SS, 943, or 944). Military Do not include any adjustments shown on Form 941-X, 943-X, or 944-X. Military Example. Military   An employer originally reported total taxes of $45,000 for the lookback period. Military The employer discovered during January 2014 that the tax reported during the lookback period was understated by $10,000 and corrected this error by filing Form 941-X. Military The employer is a monthly schedule depositor for 2014 because the lookback period tax liabilities are based on the amounts originally reported, and they were $50,000 or less. Military Deposit Period The term “deposit period” refers to the period during which tax liabilities are accumulated for each required deposit due date. Military For monthly schedule depositors, the deposit period is a calendar month. Military The deposit periods for semiweekly schedule depositors are Wednesday through Friday and Saturday through Tuesday. Military Monthly Deposit Schedule If your total tax reported for the lookback period is $50,000 or less, you are a monthly schedule depositor for the current year. Military You must deposit taxes on wage payments made during a calendar month by the 15th day of the following month. Military New employers. Military   Your tax liability for any quarter in the lookback period before the date you started or acquired your business is considered to be zero. Military Therefore, you are a monthly schedule depositor for the first calendar year of your business (but see the $100,000 Next-Day Deposit Rule , later in this section). Military Semiweekly Deposit Schedule If your total tax reported for the lookback period is more than $50,000, you are a semiweekly schedule depositor for the current year. Military If you are a semiweekly schedule depositor, you must deposit on Wednesday and/or Friday, depending on what day of the week that you make wage payments, as follows. Military Deposit taxes on wage payments made on Wednesday, Thursday, and/or Friday by the following Wednesday. Military Deposit taxes on wage payments made on Saturday, Sunday, Monday, and/or Tuesday by the following Friday. Military Semiweekly depositors are generally not required to deposit twice a week if their payments were in the same semiweekly period unless the $100,000 Next-Day Deposit Rule , discussed later in this section, applies. Military For example, if you made a payment on both Wednesday and Friday and incurred taxes of $10,000 for each pay date, deposit the $20,000 on the following Wednesday. Military If you made no additional payments on Saturday through Tuesday, no deposit is due on Friday. Military Semiweekly deposit period spanning two quarters. Military   If you have more than one pay date during a semiweekly period and the pay dates fall in different calendar quarters, you will need to make separate deposits for the separate liabilities. Military Example. Military   If you have a pay date on Monday, March 31, 2014 (first quarter), and another pay date on Tuesday, April 1, 2014 (second quarter), two separate deposits will be required even though the pay dates fall within the same semiweekly period. Military Both deposits will be due on Friday, April 4, 2014 (3 business days from the end of the semiweekly deposit period). Military Examples of Monthly and Semiweekly Schedules Employers of nonfarm workers. Military   Rose Co. Military reported Form 941-SS taxes as follows: 2013 Lookback Period 3rd Quarter 2011 $12,000 4th Quarter 2011 12,000 1st Quarter 2012 12,000 2nd Quarter 2012 12,000   $48,000 2014 Lookback Period 3rd Quarter 2012 $12,000 4th Quarter 2012 12,000 1st Quarter 2013 12,000 2nd Quarter 2013 15,000   $51,000 Rose Co. Military is a monthly schedule depositor for 2013 because its taxes for the four quarters in its lookback period ($48,000 for the 3rd quarter of 2011 through the 2nd quarter of 2012) were not more than $50,000. Military However, for 2014, Rose Co. Military is a semiweekly schedule depositor because the total taxes for the four quarters in its lookback period ($51,000 for the 3rd quarter of 2012 through the 2nd quarter of 2013) exceeded $50,000. Military Employers of farmworkers. Military   Red Co. Military reported taxes on its 2012 Form 943, line 9, of $48,000. Military On its 2013 Form 943, line 11, it reported taxes of $60,000. Military   Red Co. Military is a monthly schedule depositor for 2014 because its taxes for its lookback period ($48,000 for calendar year 2012) were not more than $50,000. Military However, for 2015, Red Co. Military is a semiweekly schedule depositor because the total taxes for its lookback period ($60,000 for calendar year 2013) exceeded $50,000. Military New agricultural employers. Military   New agricultural employers filing Form 943 are monthly schedule depositors for the first and second calendar years of their business because their taxes for the lookback period (2 years) are considered to be zero. Military However, see the $100,000 Next-Day Deposit Rule , later in this section. Military Deposits on Business Days Only If a deposit due date falls on a day that is not a business day, the deposit is considered timely if it is made by the close of the next business day. Military A business day is any day other than a Saturday, Sunday, or legal holiday. Military For example, if a deposit is required to be made on Friday, but Friday is a legal holiday, the deposit is considered timely if it is made by the following Monday (if Monday is a business day). Military Semiweekly schedule depositors have at least 3 business days to make a deposit. Military If any of the 3 weekdays after the end of a semiweekly period is a legal holiday, you will have an additional day for each day that is a legal holiday to make the required deposit. Military For example, if a semiweekly schedule depositor accumulated taxes for payments made on Friday and the following Monday is a legal holiday, the deposit normally due on Wednesday may be made on Thursday (this allows 3 business days to make the deposit). Military Legal holiday. Military   The term “legal holiday” means any legal holiday in the District of Columbia. Military Legal holidays for 2014 are listed below. Military January 1—New Year's Day January 20—Birthday of Martin Luther King, Jr. Military February 17—Washington's Birthday April 16—District of Columbia Emancipation Day May 26—Memorial Day July 4—Independence Day September 1—Labor Day October 13—Columbus Day November 11—Veterans Day November 27—Thanksgiving Day December 25—Christmas Day Application of Monthly and Semiweekly Schedules The following examples illustrate the procedure for determining the deposit date under the two different deposit schedules. Military Monthly schedule example. Military   Spruce Co. Military is a monthly schedule depositor with seasonal employees. Military It paid wages each Friday during August but did not pay any wages during September. Military Under the monthly deposit schedule, Spruce Co. Military must deposit the combined tax liabilities for the four August paydays by September 15. Military Spruce Co. Military does not have a deposit requirement for September (due by October 15) because no wages were paid and, therefore, it did not have a tax liability for September. Military Semiweekly schedule example. Military   Green, Inc. Military is a semiweekly schedule depositor and pays wages once each month on the last Friday of the month. Military Although Green, Inc. Military , has a semiweekly deposit schedule, it will deposit just once a month because it pays wages only once a month. Military The deposit, however, will be made under the semiweekly deposit schedule as follows: Green, Inc. Military ’s tax liability for the April 25, 2014 (Friday), payday must be deposited by April 30, 2014 (Wednesday). Military Under the semiweekly deposit schedule, liabilities for wages paid on Wednesday through Friday must be deposited by the following Wednesday. Military $100,000 Next-Day Deposit Rule If you accumulate taxes of $100,000 or more on any day during a deposit period, you must deposit by the close of the next business day, whether you are a monthly or a semiweekly schedule depositor. Military For purposes of the $100,000 rule, do not continue accumulating taxes after the end of a deposit period. Military For example, if a semiweekly schedule depositor has accumulated taxes of $95,000 on Tuesday and $10,000 on Wednesday, the $100,000 next-day deposit rule does not apply because the $10,000 is accumulated in the next deposit period. Military Thus, $95,000 must be deposited by Friday and $10,000 must be deposited by the following Wednesday. Military However, once you accumulate at least $100,000 in a deposit period, stop accumulating at the end of that day and begin to accumulate anew on the next day. Military For example, Fir Co. Military is a semiweekly schedule depositor. Military On Monday, Fir Co. Military accumulates taxes of $110,000 and must deposit on Tuesday, the next business day. Military On Tuesday, Fir Co. Military accumulates additional taxes of $30,000. Military Because the $30,000 is not added to the previous $110,000 and is less than $100,000, Fir Co. Military does not have to deposit the $30,000 until Friday (following the semiweekly deposit schedule). Military If you are a monthly schedule depositor and you accumulate a $100,000 tax liability on any day during a month, you become a semiweekly schedule depositor on the next day and remain so for the remainder of the calendar year and for the following calendar year. Military Example. Military   Elm, Inc. Military started its business on May 1, 2014. Military On May 8, it paid wages for the first time and accumulated a tax liability of $40,000. Military On Friday, May 9, Elm, Inc. Military paid wages and accumulated a liability of $60,000, making its accumulated Form 941-SS tax liability total $100,000. Military Elm, Inc. Military must deposit $100,000 by Monday, May 12, the next business day. Military Because this was the first year of its business, the tax liability for its lookback period is considered to be zero, and it would be a monthly schedule depositor based on the lookback rules. Military However, because Elm, Inc. Military accumulated $100,000 on May 9, it became a semiweekly schedule depositor on May 10. Military It will be a semiweekly schedule depositor for the remainder of 2014 and for 2015. Military Accuracy of Deposits Rule You are required to deposit 100% of your tax liability on or before the deposit due date. Military However, penalties will not be applied for depositing less than 100% if both of the following conditions are met. Military Any deposit shortfall does not exceed the greater of $100 or 2% of the amount of taxes otherwise required to be deposited, and The deposit shortfall is paid or deposited by the shortfall makeup date as described below. Military Makeup date for deposit shortfall: Monthly schedule depositor. Military Deposit or pay the shortfall by the due date of your Form 941-SS, 944, or 943 for the period in which the shortfall occurred. Military You may pay the shortfall with your return even if the amount is $2,500 or more. Military Semiweekly schedule depositor. Military Deposit by the earlier of: The first Wednesday or Friday (whichever comes first) that comes on or after the 15th of the month following the month in which the shortfall occurred, or The return due date for the period in which the shortfall occurred. Military For example, if a semiweekly schedule depositor filing Form 941-SS has a deposit shortfall during July 2014, the shortfall makeup date is August 15, 2014 (Friday). Military However, if the shortfall occurred on the required April 2 (Wednesday), deposit date for a March 28 (Friday) pay date, the return due date for the March 28 pay date (April 30) would come before the May 16 (Friday) shortfall makeup date. Military In this case, the shortfall must be deposited by April 30, 2014. Military Employers of Both Farm and Nonfarm Workers If you employ both farm and nonfarm workers, you must treat employment taxes for the farmworkers (Form 943 taxes) separately from employment taxes for the nonfarm workers (Form 941-SS or 944 taxes). Military Form 943 taxes and Form 941-SS (or Form 944) taxes are not combined for purposes of applying any of the deposit rules. Military If a deposit is due, deposit the Form 941-SS (or Form 944) taxes and Form 943 taxes separately, as discussed next. Military How To Deposit You must deposit employment taxes by electronic funds transfer. Military See Payment with Return , earlier in this section, for exceptions explaining when taxes may be paid with the tax return instead of being deposited. Military Electronic deposit requirement. Military   You must use electronic funds transfer to make all federal tax deposits (such as deposits of employment tax, excise tax, and corporate income tax). Military Generally, electronic fund transfers are made using the Electronic Federal Tax Payment System (EFTPS). Military If you do not want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make electronic deposits on your behalf. Military   EFTPS is a free service provided by the Department of the Treasury. Military To get more information or to enroll in EFTPS, call 1-800-555-4477 (U. Military S. Military Virgin Islands only) or 303-967-5916 (toll call). Military You can also visit the EFTPS website at www. Military eftps. Military gov. Military Additional information about EFTPS is also available in Publication 966. Military When you receive your EIN. Military   If you are a new employer that indicated a federal tax obligation when requesting an EIN, you will be pre-enrolled in EFTPS. Military You will receive information about Express Enrollment in your Employer Identification Number (EIN) Package and an additional mailing containing your EFTPS personal identification number (PIN) and instructions for activating your PIN. Military Follow the steps in your “How to Activate Your Enrollment” brochure to activate your enrollment and begin making your payroll tax deposits. Military If you outsource any of your payroll and related tax duties to a third party payer, such as a payroll service provider or reporting agent, be sure to tell them about your EFTPS enrollment. Military Deposit record. Military   For your records, an Electronic Funds Transfer (EFT) Trace Number will be provided with each successful payment. Military The number can be used as a receipt or to trace the payment. Military Depositing on time. Military   For deposits made by EFTPS to be on time, you must initiate the deposit by 8 p. Military m. Military Eastern time the day before the date the deposit is due. Military If you use a third party to make deposits on your behalf, they may have different cutoff times. Military Same-day payment option. Military   If you fail to initiate a deposit transaction on EFTPS by 8 p. Military m. Military Eastern time the day before the date a deposit is due, you can still make your deposit on time by using the Federal Tax Application (FTA). Military To use the same-day payment method, you will need to make arrangements with your financial institution ahead of time. Military Please check with your financial institution regarding availability, deadlines, and costs. Military Your financial institution may charge you a fee for payments made this way. Military To learn more about the information you will need to provide your financial institution to make a same-day wire payment, please visit www. Military eftps. Military gov to download the Same-Day Payment Worksheet. Military How to claim credit for overpayments. Military   If you deposited more than the right amount of taxes for a tax period, you can choose on Form 941-SS, 941, 944, or 943 for that tax period to have the overpayment refunded or applied as a credit to your next return. Military Do not ask EFTPS to request a refund from the IRS for you. Military Deposit Penalties Penalties may apply if you do not make required deposits on time or if you make deposits of less than the required amount. Military The penalties do not apply if any failure to make a proper and timely deposit was due to reasonable cause and not to willful neglect. Military The IRS may also waive penalties if you inadvertently fail to deposit in the first quarter that a deposit is due, or the first quarter during which your frequency of deposits changed, if you timely filed your employment tax return. Military For amounts not properly or timely deposited, the penalty rates are as follows. Military 2% - Deposits made 1 to 5 days late. Military 5% - Deposits made 6 to 15 days late. Military 10% - Deposits made 16 or more days late. Military Also applies to amounts paid within 10 days of the date of the first notice that the IRS sent asking for the tax due. Military 10% - Amounts (that should have been deposited) paid directly to the IRS or paid with your tax return (but see Payment with Return , earlier in this section, for exceptions). Military 15% - Amounts still unpaid more than 10 days after the date of the first notice that the IRS sent asking for the tax due or the day on which you received notice and demand for immediate payment, whichever is earlier. Military Late deposit penalty amounts are determined using calendar days, starting from the due date of the liability. Military Special rule for former Form 944 filers. Military    If you filed Form 944 for the prior year and must file Forms 941-SS for the current year because your employment tax liability for the prior year exceeded the Form 944 eligibility requirement ($1,000 or less), the failure-to-deposit penalty will not apply to a late deposit of employment taxes for the first month of the current year if the taxes are deposited in full by March 15 of the current year. Military Order in which deposits are applied. Military   Deposits generally are applied to the most recent tax liability within the return period (quarter or year). Military However, if you receive a failure-to-deposit penalty notice, you may designate how your payment is to be applied in order to minimize the amount of the penalty, if you do so within 90 days of the date of the notice. Military Follow the instructions on the penalty notice that you received. Military For more information on designating deposits, see Revenue Procedure 2001-58. Military You can find Revenue Procedure 2001-58 on page 579 of Internal Revenue Bulletin 2001-50 at www. Military irs. Military gov/pub/irs-irbs/irb01-50. Military pdf. Military Example. Military Cedar, Inc. Military is required to make a deposit of $1,000 on July 15 and $1,500 on August 15. Military It does not make the deposit on July 15. Military On August 15, Cedar, Inc. Military deposits $2,000. Military Under the deposits rule, which applies deposits to the most recent tax liability, $1,500 of the deposit is applied to the August 15 deposit and the remaining $500 is applied to the July deposit. Military Accordingly, $500 of the July 15 liability remains undeposited. Military The penalty on this underdeposit will apply as explained earlier. Military Trust fund recovery penalty. Military   If federal income, social security, or Medicare taxes that must be withheld are not withheld or are not deposited or paid to the United States Treasury, the trust fund recovery penalty may apply. Military The penalty is the full amount of the unpaid trust fund tax. Military This penalty may apply to you if these unpaid taxes cannot be immediately collected from the employer or business. Military   The trust fund recovery penalty may be imposed on all persons who are determined by the IRS to be responsible for collecting, accounting for, and paying over these taxes, and who acted willfully in not doing so. Military   A responsible person can be an officer or employee of a corporation, a partner or employee of a partnership, an accountant, a volunteer director/trustee, or an employee of a sole proprietorship, or any other person or entity that is responsible for collecting, accounting for, and paying over trust fund taxes. Military A responsible person also may include one who signs checks for the business or otherwise has authority to cause the spending of business funds. Military    Willfully means voluntarily, consciously, and intentionally. Military A responsible person acts willfully if the person knows the required actions of collecting, accounting for or paying over trust fund taxes are not taking place, or recklessly disregards obvious and known risks to the government's right to receive trust fund taxes. Military “Averaged” failure-to-deposit penalty. Military   The IRS may assess an “averaged” failure-to-deposit (FTD) penalty of 2% to 10% if you are a monthly schedule depositor and did not properly complete Form 941-SS, line 14, when your tax liability shown on Form 941-SS, line 10, was $2,500 or more. Military IRS may also assess this penalty of 2% to 10% if you are a semiweekly schedule depositor and your tax liability shown on Form 941-SS, line 10, was $2,500 or more and you did any of the following. Military Completed Form 941-SS, line 14, instead of Schedule B (Form 941). Military Failed to attach a properly completed Schedule B (Form 941). Military Completed Schedule B (Form 941) incorrectly, for example, by entering tax deposits instead of tax liabilities in the numbered spaces. Military   The IRS figures the penalty by allocating your total tax liability shown on Form 941-SS, line 10, equally throughout the tax period. Military Your deposits and payments may not be counted as timely because IRS does not know the actual dates of your tax liabilities. Military   You can avoid the penalty by reviewing your return before filing it. Military Follow these steps before filing your Form 941-SS. Military If you are a monthly schedule depositor, report your tax liabilities (not your deposits) in the monthly entry spaces on Form 941-SS, line 14. Military If you are a semiweekly schedule depositor, report your tax liabilities (not your deposits) on Schedule B (Form 941) in the lines that represent the dates you paid your employees. Military Verify that your total liability shown on Form 941-SS, line 14, or the bottom of Schedule B (Form 941) equals your tax liability shown on Form 941-SS,  line 10. Military Do not show negative amounts on Form 941-SS, line 14, or Schedule B (Form 941). Military For prior period errors, do not adjust your tax liabilities reported on your current Form 941-SS, line 14, or on Schedule B (Form 941). Military Instead, file an adjusted return (Form 941-X (if you are adjusting a previously filed Form 941-SS) or Form 944-X (if you are adjusting a previously filed Form 944-SS or 944)) if you are also adjusting your tax liability. Military If you are only adjusting your deposits in response to a failure-to-deposit penalty notice, see the Instructions for Schedule B (Form 941) (if you previously filed Form 941-SS) or the Instructions for Form 944-X (if you previously filed Form 944-SS or 944). Military If you filed Form 944 for 2013 and line 7 was $2,500 or more, you were required to complete Form 944, lines 13a–13m, or attach Form 945-A, Annual Record of Federal Tax Liability. Military If you failed to complete lines 13a–13m, or failed to attach Form 945-A, whichever was required, IRS may assess an “averaged” failure-to-deposit (FTD) penalty. Military 9. Military Employer's Returns General instructions. Military   File Forms 941-SS (or Form 944) for nonfarm workers and Form 943 for farmworkers. Military (U. Military S. Military Virgin Islands employers may be required to file Form 940 for the combined wages of nonfarm workers and farmworkers. Military ) Employers with employees subject to U. Military S. Military income tax withholding. Military   If you have both employees who are subject to U. Military S. Military income tax withholding and employees who are not subject to U. Military S. Military income tax withholding, you must file only Form 941 (or Form 944) and include all your employees’ wages on that form. Military Nonfarm employers. Military   File Form 941-SS for the calendar quarter in which you first pay wages for nonfarm workers and for each quarter thereafter unless you are a seasonal employer or file a final return. Military Due dates for each quarter of the calendar year are as follows. Military Quarter Due Jan. Military , Feb. Military , Mar. Military Apr. Military 30 Apr. Military , May, June July 31 July, Aug. Military , Sept. Military Oct. Military 31 Oct. Military , Nov. Military , Dec. Military Jan. Military 31   However, if you deposited all taxes when due for the quarter, you have 10 additional days from the due dates to file the return. Military If the due date for filing your return falls on a Saturday, Sunday, or legal holiday, you may file on the next business day. Military   If you closed your business or stopped paying wages and do not have to file returns in the future, check the box on line 15 of your final Form 941-SS and show the date final wages were paid. Military Form 944. Military   If IRS notified you to file Form 944, file your 2013 Form 944 by January 31, 2014, or by February 10, 2014 (if you deposited all taxes when due). Military Household employers reporting social security and Medicare taxes. Military   If you are a sole proprietor and file Forms 941-SS (or Form 944) for business employees, you may include taxes for household employees on your Forms 941-SS (or Form 944). Military Otherwise, report social security and Medicare taxes for household employees on Schedule H (Form 1040), Household Employment Taxes. Military See Publication 926, Household Employer's Tax Guide, for more information. Military Employers of farmworkers. Military   Every employer of farmworkers must file a Form 943 for each calendar year beginning with the first year the employer pays $2,500 or more for farmwork or employs a farmworker who meets the $150 test described in section 6. Military   File a Form 943 each year for all taxable wages paid for farmwork. Military You may report household workers in a private home on a farm operated for profit on Form 943. Military Do not report wages for farmworkers on Form 941-SS or 944. Military   Send Form 943 to the IRS by January 31 of the following year. Military Send it with payment of any taxes due that you are not required to deposit. Military If you deposited all taxes when due, you have 10 additional days to file. Military Penalties. Military   For each whole or part month that a return is not filed when required (disregarding any extensions of the filing deadline), there is a failure-to-file penalty of 5% of the unpaid tax due with that return. Military The maximum penalty is generally 25% of the tax due. Military Also, for each whole or part month that the tax is paid late (disregarding any extensions of the payment deadline), there is a failure-to-pay penalty of 0. Military 5% per month of the amount of tax. Military For individual filers only, the failure-to-pay penalty is reduced from 0. Military 5% per month to 0. Military 25% per month if an installment agreement is in effect. Military You must have filed your return on or before the due date of the return to qualify for the reduced penalty. Military The maximum amount of the failure-to-pay penalty is also 25% of the tax due. Military If both penalties apply in any month, the failure-to-file penalty is reduced by the amount of the failure-to-pay penalty. Military The penalties will not be charged if you have a reasonable cause for failing to file or pay. Military If you receive a penalty notice, you can provide an explanation of why you believe reasonable cause exists. Military Reporting Adjustments to Form 941-SS, 944-SS, 944, or 943 Current Period Adjustments Make current period adjustments for fractions of cents, sick pay, tips, and group-term life insurance on your Form 941-SS, 944, or 943. Military See the Instructions for Form 941-SS, Instructions for Form 944, or Instructions for Form 943 for information on how to report these adjustments. Military Prior Period Adjustments Forms for prior period adjustments. Military   Use Form 941-X or Form 944-X to make a correction after you discover an error on a previously filed Form 941 or Form 944. Military There are also Forms 943-X, 945-X, and CT-1X to report corrections on the corresponding returns. Military Form 941-X and Form 944-X also replace Form 843, Claim for Refund and Request for Abatement, for employers to request a refund or abatement of overreported employment taxes. Military Continue to use Form 843 when requesting a refund or abatement of assessed interest or penalties. Military See Revenue Ruling 2009-39, 2009-52 I. Military R. Military B. Military 951, for examples of how the interest-free adjustment and claim for refund rules apply in 10 different situations. Military You can find Revenue Ruling 2009-39, at www. Military irs. Military gov/irb/2009-52_IRB/ar14. Military html. Military Background. Military   Treasury Decision 9405 changed the process for making interest-free adjustments to employment taxes reported on Forms 941-SS, 943, 944-SS, and 944, and for filing a claim for refund of employment taxes. Military Treasury Decision 9405, 2008-32 I. Military R. Military B. Military 293, is available at www. Military irs. Military gov/irb/2008-32_IRB/ar13. Military html. Military You will use the adjustment process if you underreported employment taxes and are making a payment, or if you overreported employment taxes and will be applying the credit to the Form 941-SS, 943, or 944 period during which you file Forms 941-X, 943-X, or 944-X, respectively. Military You will use the claim process if you overreported employment taxes and are requesting a refund or abatement of the overreported amount. Military We use the terms “correct” and “corrections” to include interest-free adjustments under sections 6205 and 6413, and claims for refund and abatement under sections 6402, 6414, and 6404 of the Internal Revenue Code. Military Correcting employment taxes. Military   When you discover an error on a previously filed Form 941-SS, 943, 944-SS, or 944, you must: Correct that error using Form 941-X, Form 943-X, or Form 944-X, File a separate Form 941-X, Form 943-X, or Form 944-X for
Print - Click this link to Print this page

Deductions

How Much is My Standard Deduction?
Determine the maximum Standard Deduction you can claim.

Can I Deduct My Charitable Contributions?
Determine who may deduct charitable contributions.

Can I Deduct My Mortgage Related Expenses?
Determine who can deduct mortgage interest, points or mortgage insurance premiums

Can I Claim My Expenses as Miscellaneous Itemized Deductions on Schedule A (Form 1040)?
Determine if miscellaneous expenses are deductible on Schedule A (Form 1040)

Do I Need To Claim My Gambling Winnings and Can I Deduct My Gambling Losses?
Determine who will need to claim gambling winnings and deduct gamling losses.

Can I Deduct My Medical and Dental Expenses?
Determine if you can deduct medical and dental expenses.

Can I Deduct My Moving Expenses?
Determine who may claim moving expenses.

Can I Claim a Deduction For Student Loan Interest?
Determine if you are eligible to deduct the interest that you paid on a student loan.

Page Last Reviewed or Updated: 14-Feb-2014

The Military

Military 5. Military   Figuring Your Tax Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Tax Year Identification NumberF-1 and M-1 visa holders. Military J-1 visa holders. Military Filing StatusResident Aliens Nonresident Aliens Reporting Your Income DeductionsResident Aliens Nonresident Aliens ExemptionsResident Aliens Nonresident Aliens Itemized DeductionsResident Aliens Nonresident Aliens Tax Credits and PaymentsResident Aliens Nonresident Aliens Bona Fide Residents of American Samoa or Puerto Rico Introduction After you have determined your alien status, the source of your income, and if and how that income is taxed in the United States, your next step is to figure your tax. Military The information in this chapter is not as comprehensive for resident aliens as it is for nonresident aliens. Military Resident aliens should get publications, forms, and instructions for U. Military S. Military citizens, because the information for filing returns for resident aliens is generally the same as for U. Military S. Military citizens. Military If you are both a nonresident alien and a resident alien in the same tax year, see chapter 6 for a discussion of dual-status aliens. Military Topics - This chapter discusses: Identification numbers, Filing status, Deductions, Exemptions, Tax credits and payments, and Special rules for bona fide residents of American Samoa and Puerto Rico. Military Useful Items - You may want to see: Publication 463 Travel, Entertainment, Gift, and Car Expenses 501 Exemptions, Standard Deduction, and Filing Information 521 Moving Expenses 526 Charitable Contributions 535 Business Expenses 597 Information on the United States–Canada Income Tax Treaty Form (and Instructions) W-7 Application for IRS Individual Taxpayer Identification Number 1040 U. Military S. Military Individual Income Tax Return 1040NR U. Military S. Military Nonresident Alien Income Tax Return 1040NR-EZ U. Military S. Military Income Tax Return for Certain Nonresident Aliens With No Dependents 2106 Employee Business Expenses 2106-EZ Unreimbursed Employee Business Expenses 3903 Moving Expenses 4563 Exclusion of Income for Bona Fide Residents of American Samoa 8959 Additional Medicare Tax See chapter 12 for information about getting these publications and forms. Military Tax Year You must figure your income and file a tax return on the basis of an annual accounting period called a tax year. Military If you have not previously established a fiscal tax year, your tax year is the calendar year. Military A calendar year is 12 consecutive months ending on December 31. Military If you have previously established a regular fiscal year (12 consecutive months ending on the last day of a month other than December or a 52–53 week year) and are considered to be a U. Military S. Military resident for any calendar year, you will be treated as a U. Military S. Military resident for any part of your fiscal year that falls within that calendar year. Military Identification Number A taxpayer identification number must be furnished on returns, statements, and other tax-related documents. Military For an individual, this is a social security number (SSN). Military If you do not have and are not eligible to get an SSN, you must apply for an individual taxpayer identification number (ITIN). Military An employer identification number (EIN) is required if you are engaged in a trade or business as a sole proprietor and have employees or a qualified retirement plan. Military You must furnish a taxpayer identification number if you are: An alien who has income effectively connected with the conduct of a U. Military S. Military trade or business at any time during the year, An alien who has a U. Military S. Military office or place of business at any time during the year, A nonresident alien spouse treated as a resident, as discussed in chapter 1, or Any other alien who files a tax return, an amended return, or a refund claim (but not information returns). Military Social security number (SSN). Military   Generally, you can get an SSN if you have been lawfully admitted to the United States for permanent residence or under other immigration categories that authorize U. Military S. Military employment. Military   To apply for this number, get Form SS-5, Application for a Social Security Card, from your local Social Security Administration (SSA) office or call the SSA at 1-800-772-1213. Military You can also download Form SS-5 from the SSA's website at www. Military socialsecurity. Military gov/ssnumber/ss5. Military htm. Military You must visit an SSA office in person and submit your Form SS-5 along with original documentation showing your age, identity, immigration status, and authority to work in the United States. Military Generally, you will receive your card about 2 weeks after the SSA has all of the necessary information. Military F-1 and M-1 visa holders. Military    If you are an F-1 or M-1 student, you must also show your Form I-20. Military For more information, see SSA Publication 05-10181, International Students and Social Security Numbers, available online at www. Military socialsecurity. Military gov/pubs/10181. Military html. Military J-1 visa holders. Military   If you are a J-1 exchange visitor, you will also need to show your Form DS-2019. Military For more information, see SSA Publication 05-10107, Foreign Workers and Social Security Numbers, available online at www. Military socialsecurity. Military gov/pubs/10107. Military html. Military Individual taxpayer identification number (ITIN). Military   If you do not have and are not eligible to get an SSN, you must apply for an ITIN. Military For details on how to do so, see Form W-7 and its instructions. Military Allow 6 to 10 weeks for the IRS to notify you of your ITIN. Military If you already have an ITIN, enter it wherever an SSN is required on your tax return. Military   An ITIN is for tax use only. Military It does not entitle you to social security benefits or change your employment or immigration status under U. Military S. Military law. Military   In addition to those aliens who are required to furnish a taxpayer identification number and are not eligible for an SSN, a Form W-7 must be filed for: Alien individuals who are claimed as dependents and are not eligible for an SSN, and Alien spouses who are claimed as exemptions and are not eligible for an SSN. Military Employer identification number (EIN). Military   An individual may use an SSN (or ITIN) for individual taxes and an EIN for business taxes. Military To apply for an EIN, file Form SS-4, Application for Employer Identification Number, with the IRS. Military Filing Status The amount of your tax depends on your filing status. Military Your filing status is important in determining whether you can take certain deductions and credits. Military The rules for determining your filing status are different for resident aliens and nonresident aliens. Military Resident Aliens Resident aliens can use the same filing statuses available to U. Military S. Military citizens. Military See your form instructions or Publication 501 for more information on filing status. Military Married filing jointly. Military   Generally, you can file as married filing jointly only if both you and your spouse were resident aliens for the entire tax year, or if you make one of the choices discussed in chapter 1 to treat your spouse as a resident alien for the entire tax year. Military Qualifying widow(er). Military   If your spouse died in 2011 or 2012, you did not remarry before the end of 2013, and you have a dependent child living with you, you may qualify to file as a qualifying widow(er) and use the joint return tax rates. Military This applies only if you could have filed a joint return with your spouse for the year your spouse died. Military Head of household. Military   You can qualify as head of household if you are unmarried or considered unmarried on the last day of the year and you pay more than half the cost of keeping up a home for you and a qualifying person. Military You must be a resident alien for the entire tax year. Military   You are considered unmarried for this purpose if your spouse was a nonresident alien at any time during the year and you do not make one of the choices discussed in chapter 1 to treat your spouse as a resident alien for the entire tax year. Military Note. Military   Even if you are considered unmarried for head of household purposes because you are married to a nonresident alien, you may still be considered married for purposes of the earned income credit. Military In that case, you will not be entitled to the credit. Military See Publication 596 for more information. Military Nonresident Aliens If you are a nonresident alien filing Form 1040NR, you may be able to use one of the filing statuses discussed later. Military If you are filing Form 1040NR-EZ, you can only claim “Single nonresident alien” or “Married nonresident alien” as your filing status. Military Married nonresident alien. Military   Married nonresident aliens who are not married to U. Military S. Military citizens or residents generally must use the Tax Table column or the Tax Computation Worksheet for married filing separate returns when determining the tax on income effectively connected with a U. Military S. Military trade or business. Military Exceptions. Military   Married nonresident aliens normally cannot use the Tax Table column or the Tax Computation Worksheet for single individuals. Military However, you may be able to file as single if you lived apart from your spouse during the last 6 months of the year and you are a married resident of Canada, Mexico, South Korea, or are a married U. Military S. Military national. Military See the instructions for Form 1040NR or Form 1040NR-EZ to see if you qualify. Military U. Military S. Military national is defined later in this section under Qualifying widow(er) . Military   A nonresident alien generally cannot file as married filing jointly. Military However, a nonresident alien who is married to a U. Military S. Military citizen or resident can choose to be treated as a resident and file a joint return on Form 1040, Form 1040A, or Form 1040EZ. Military For information on these choices, see chapter 1. Military If you do not make the choice to file jointly, file Form 1040NR or Form 1040NR-EZ and use the Tax Table column or the Tax Computation Worksheet for married individuals filing separately. Military Qualifying widow(er). Military   You may be eligible to file as a qualifying widow(er) and use the joint return tax rates if all of the following conditions apply. Military You were a resident of Canada, Mexico, or South Korea, or a U. Military S. Military national (defined later). Military Your spouse died in 2011 or 2012 and you did not remarry before the end of 2013. Military You have a dependent child living with you. Military See the instructions for Form 1040NR for the rules for filing as a qualifying widow(er) with a dependent child. Military   A U. Military S. Military national is an individual who, although not a U. Military S. Military citizen, owes his or her allegiance to the United States. Military U. Military S. Military nationals include American Samoans and Northern Mariana Islanders who chose to become U. Military S. Military nationals instead of U. Military S. Military citizens. Military Head of household. Military   You cannot file as head of household if you are a nonresident alien at any time during the tax year. Military However, if you are married, your spouse can qualify as a head of household if: Your spouse is a resident alien or U. Military S. Military citizen for the entire tax year, You do not choose to be treated as a resident alien, and Your spouse meets the other requirements for this filing status, as discussed earlier under Resident Aliens . Military Note. Military   Even if your spouse is considered unmarried for head of household purposes because you are a nonresident alien, your spouse may still be considered married for purposes of the earned income credit. Military In that case, your spouse will not be entitled to the credit. Military See Publication 596 for more information. Military Estates and trusts. Military   A nonresident alien estate or trust using Form 1040NR must use Tax Rate Schedule W in the Form 1040NR instructions when determining the tax on income effectively connected with a U. Military S. Military trade or business. Military Special rules for aliens from certain U. Military S. Military possessions. Military   A nonresident alien who is a bona fide resident of American Samoa or Puerto Rico for the entire tax year and who is temporarily working in the United States should read Bona Fide Residents of American Samoa or Puerto Rico, at the end of this chapter, for information about special rules. Military Reporting Your Income You must report each item of income that is taxable according to the rules in chapters 2, 3, and 4. Military For resident aliens, this includes income from sources both within and outside the United States. Military For nonresident aliens, this includes both income that is effectively connected with a trade or business in the United States (subject to graduated tax rates) and income from U. Military S. Military sources that is not effectively connected (subject to a flat 30% tax rate or lower tax treaty rate). Military Deductions Resident and nonresident aliens can claim similar deductions on their U. Military S. Military tax returns. Military However, nonresident aliens generally can claim only deductions related to income that is effectively connected with their U. Military S. Military trade or business. Military Resident Aliens You can claim the same deductions allowed to U. Military S. Military citizens if you are a resident alien for the entire tax year. Military While the discussion that follows contains some of the same general rules and guidelines that apply to you, it is specifically directed toward nonresident aliens. Military You should get Form 1040 and instructions for more information on how to claim your allowable deductions. Military Nonresident Aliens You can claim deductions to figure your effectively connected taxable income. Military You generally cannot claim deductions related to income that is not connected with your U. Military S. Military business activities. Military Except for personal exemptions, and certain itemized deductions, discussed later, you can claim deductions only to the extent they are connected with your effectively connected income. Military Ordinary and necessary business expenses. Military   You can deduct all ordinary and necessary expenses in the operation of your U. Military S. Military trade or business to the extent they relate to income effectively connected with that trade or business. Military The deduction for travel expenses while in the United States is discussed under Itemized Deductions, later. Military For information about other business expenses, see Publication 535. Military Losses. Military   You can deduct losses resulting from transactions that you entered into for profit and that you were not reimbursed for by insurance, etc. Military to the extent that they relate to income that is effectively connected with a trade or business in the United States. Military Educator expenses. Military   If you were an eligible educator in 2013, you can deduct as an adjustment to income up to $250 in unreimbursed qualified expenses you paid or incurred during 2013 for books, supplies (other than nonathletic supplies for courses of instruction in health or physical education), computer equipment, and other equipment and materials used in the classroom. Military For more information, see your tax form instructions. Military Individual retirement arrangement (IRA). Military   If you made contributions to a traditional IRA for 2013, you may be able to take an IRA deduction. Military But you must have taxable compensation effectively connected with a U. Military S. Military trade or business to do so. Military A Form 5498 should be sent to you by May 31, 2014, that shows all contributions to your traditional IRA for 2013. Military If you were covered by a retirement plan (qualified pension, profit-sharing (including 401(k)), annuity, SEP, SIMPLE, etc. Military ) at work or through self-employment, your IRA deduction may be reduced or eliminated. Military But you can still make contributions to a traditional IRA even if you cannot deduct them. Military If you made nondeductible contributions to a traditional IRA for 2013, you must report them on Form 8606, Nondeductible IRAs. Military   For more information, see Publication 590, Individual Retirement Arrangements (IRAs). Military Moving expenses. Military   If you are a nonresident alien temporarily in the United States earning taxable income for performing personal services, you can deduct moving expenses to the United States if you meet both of the following tests. Military You are a full-time employee for at least 39 weeks during the 12 months right after you move, or if you are self-employed, you work full time for at least 39 weeks during the first 12 months and 78 weeks during the first 24 months right after you move. Military Your new job location is at least 50 miles farther (by the shortest commonly traveled route) from your former home than your former job location was. Military If you had no former job location, the new job location must be at least 50 miles from your former home. Military   You cannot deduct the moving expense you have when returning to your home abroad or moving to a foreign job site. Military   Figure your deductible moving expenses to the United States on Form 3903, and deduct them on line 26 of Form 1040NR. Military   For more information on the moving expense deduction, see Publication 521. Military Reimbursements. Military   If your employer reimbursed you for allowable moving expenses under an accountable plan, your employer should have excluded these reimbursements from your income. Military You can only deduct allowable moving expenses that were not reimbursed by your employer or that were reimbursed but the reimbursement was included in your income. Military For more information, see Publication 521. Military Moving expense or travel expense. Military   If you deduct moving expenses to the United States, you cannot also deduct travel expenses (discussed later under Itemized Deductions) while temporarily away from your tax home in a foreign country. Military Moving expenses are based on a change in your principal place of business while travel expenses are based on your temporary absence from your principal place of business. Military Self-employed SEP, SIMPLE, and qualified retirement plans. Military   If you are self-employed, you may be able to deduct contributions to a SEP, SIMPLE, or qualified retirement plan that provides retirement benefits for yourself and your common-law employees, if any. Military To make deductible contributions for yourself, you must have net earnings from self-employment that are effectively connected with your U. Military S. Military trade or business. Military   Get Publication 560, Retirement Plans for Small Business (SEP, SIMPLE, and Qualified Plans), for further information. Military Penalty on early withdrawal of savings. Military   You must include in income all effectively connected interest income you receive or that is credited to your account during the year. Military Do not reduce it by any penalty you must pay on an early withdrawal from a time savings account. Military However, if the interest income is effectively connected with your U. Military S. Military trade or business during the year, you can deduct on line 30 of Form 1040NR the amount of the early withdrawal penalty that the banking institution charged. Military Student loan interest expense. Military   If you paid interest on a student loan in 2013, you may be able to deduct up to $2,500 of the interest you paid. Military Generally, you can claim the deduction if all the following requirements are met. Military Your filing status is any filing status except married filing separately. Military Your modified adjusted gross income is less than $75,000. Military No one else is claiming an exemption for you on his or her 2013 tax return. Military You paid interest on a loan taken out only to pay tuition and other qualified higher education expenses for yourself, your spouse, someone who was your dependent when the loan was taken out, or someone you could have claimed as a dependent for the year the loan was taken out except that: The person filed a joint return, The person had gross income that was equal to or more than the exemption amount for that year ($3,900 for 2013), or You could be claimed as a dependent on someone else's return. Military The loan is not from a related person or a person who borrowed the proceeds under a qualified employer plan or a contract purchased under such a plan. Military The education expenses were paid or incurred within a reasonable period of time before or after the loan was taken out. Military The person for whom the expenses were paid or incurred was an eligible student. Military Use the worksheet in the Form 1040NR or Form 1040NR-EZ instructions to figure the deduction. Military For more information, see Publication 970, Tax Benefits for Education. Military Exemptions Resident aliens can claim personal exemptions and exemptions for dependents in the same way as U. Military S. Military citizens. Military However, nonresident aliens generally can claim only a personal exemption for themselves on their U. Military S. Military tax return. Military Resident Aliens You can claim personal exemptions and exemptions for dependents according to the dependency rules for U. Military S. Military citizens. Military You can claim an exemption for your spouse on a separate return if your spouse had no gross income for U. Military S. Military tax purposes and was not the dependent of another taxpayer. Military You can claim this exemption even if your spouse has not been a resident alien for a full tax year or is an alien who has not come to the United States. Military You can claim an exemption for each person who qualifies as a dependent according to the rules for U. Military S. Military citizens. Military The dependent must be a citizen or national (defined earlier) of the United States or be a resident of the United States, Canada, or Mexico for some part of the calendar year in which your tax year begins. Military Get Publication 501 for more information. Military Your spouse and each dependent for whom you claim an exemption must have either an SSN or an ITIN. Military See Identification Number, earlier. Military Nonresident Aliens Generally, if you are a nonresident alien engaged in a trade or business in the United States, you can claim only one personal exemption ($3,900 for 2013). Military You may be able to claim an exemption for a spouse and a dependent if you are described in any of the following discussions. Military Your spouse and each dependent for whom you claim an exemption must have either an SSN or an ITIN. Military See Identification Number, earlier. Military Residents of Mexico or Canada or U. Military S. Military nationals. Military   If you are a resident of Mexico or Canada or a national of the United States (defined earlier), you can also claim a personal exemption for your spouse if your spouse had no gross income for U. Military S. Military tax purposes and cannot be claimed as the dependent on another U. Military S. Military taxpayer's return. Military In addition, you can claim exemptions for your dependents who meet certain tests. Military Residents of Mexico, Canada, or nationals of the United States must use the same rules as U. Military S. Military citizens to determine who is a dependent and for which dependents exemptions can be claimed. Military See Publication 501 for these rules. Military For purposes of these rules, dependents who are U. Military S. Military nationals meet the citizenship test discussed in Publication 501. Military Residents of South Korea. Military   Nonresident aliens who are residents of South Korea may be able to claim exemptions for a spouse and children. Military The income tax treaty with South Korea imposes two additional requirements on South Korean residents: The spouse and all children claimed must live with the alien in the United States at some time during the tax year, and The additional deduction for the exemptions must be prorated based on the ratio of the alien's U. Military S. Military source gross income effectively connected with a U. Military S. Military trade or business for the tax year to the alien's entire income from all sources during the tax year. Military Example. Military Mr. Military Park, a nonresident alien who is a resident of South Korea, lives temporarily in the United States with his wife and two children. Military During the tax year he receives U. Military S. Military compensation of $18,000. Military He also receives $6,000 of income from sources outside the United States that is not effectively connected with his U. Military S. Military trade or business. Military Thus, his total income for the year is $24,000. Military Mr. Military Park meets all requirements for claiming exemptions for his spouse and two children. Military The additional deduction for 2013 is $8,775 figured as follows: $18,000 $24,000 × $11,700* = $8,775               *3 × $3,900 = $11,700   Students and business apprentices from India. Military   Students and business apprentices who are eligible for the benefits of Article 21(2) of the United States–India Income Tax Treaty may be able to claim exemptions for their spouse and dependents. Military   You can claim an exemption for your spouse if he or she had no gross income during the year and cannot be claimed as a dependent on another U. Military S. Military taxpayer's return. Military   You can claim exemptions for each of your dependents not admitted to the United States on “F-2,” “J-2,” or “M-2” visas if they meet the same rules that apply to U. Military S. Military citizens. Military See Publication 501 for these rules. Military   List your spouse and dependents on line 7c of Form 1040NR. Military Enter the total on the appropriate line to the right of line 7c. Military Itemized Deductions Nonresident aliens can claim some of the same itemized deductions that resident aliens can claim. Military However, nonresident aliens can claim itemized deductions only if they have income effectively connected with their U. Military S. Military trade or business. Military Resident Aliens You can claim the same itemized deductions as U. Military S. Military citizens, using Schedule A of Form 1040. Military These deductions include certain medical and dental expenses, state and local income taxes, real estate taxes, interest you paid on a home mortgage, charitable contributions, casualty and theft losses, and miscellaneous deductions. Military If you do not itemize your deductions, you can claim the standard deduction for your particular filing status. Military For further information, see Form 1040 and instructions. Military Nonresident Aliens You can deduct certain itemized deductions if you receive income effectively connected with your U. Military S. Military trade or business. Military These deductions include state and local income taxes, charitable contributions to U. Military S. Military organizations, casualty and theft losses, and miscellaneous deductions. Military Use Schedule A of Form 1040NR to claim itemized deductions. Military If you are filing Form 1040NR-EZ, you can only claim a deduction for state or local income taxes. Military If you are claiming any other itemized deduction, you must file Form 1040NR. Military Standard deduction. Military   Nonresident aliens cannot claim the standard deduction. Military However, see Students and business apprentices from India , next. Military Students and business apprentices from India. Military   A special rule applies to students and business apprentices who are eligible for the benefits of Article 21(2) of the United States–India Income Tax Treaty. Military You can claim the standard deduction provided you do not claim itemized deductions. Military   Use Worksheet 5-1 to figure your standard deduction. Military If you are married and your spouse files a return and itemizes deductions, you cannot take the standard deduction. Military State and local income taxes. Military   You can deduct state and local income taxes you paid on income that is effectively connected with a trade or business in the United States. Military If you received a refund or rebate in 2013 of taxes you paid in an earlier year, do not reduce your deduction by that amount. Military Instead, you must include the refund or rebate in income if you deducted the taxes in the earlier year and the deduction reduced your tax. Military See Recoveries in Publication 525 for details on how to figure the amount to include in income. Military Charitable contributions. Military   You can deduct your charitable contributions or gifts to qualified organizations subject to certain limits. Military Qualified organizations include organizations that are religious, charitable, educational, scientific, or literary in nature, or that work to prevent cruelty to children or animals. Military Certain organizations that promote national or international amateur sports competition are also qualified organizations. Military Foreign organizations. Military   Contributions made directly to a foreign organization are not deductible. Military However, you can deduct contributions to a U. Military S. Military organization that transfers funds to a charitable foreign organization if the U. Military S. Military organization controls the use of the funds or if the foreign organization is only an administrative arm of the U. Military S. Military organization. Military   For more information about organizations that qualify to receive charitable contributions, see Publication 526, Charitable Contributions. Military Worksheet 5-1. Military 2013 Standard Deduction Worksheet for Students and Business Apprentices From India Caution. Military If you are married filing a separate return and your spouse itemizes deductions, do not complete this worksheet. Military You cannot take the standard deduction even if you were born before January 2, 1949, or are blind. Military 1 Enter the amount shown below for your filing status. Military           Single or married filing separately—$6,100 Qualifying widow(er)—$12,200 1. Military           2 Can you be claimed as a dependent on someone else's U. Military S. Military income tax return?  No. Military Enter the amount from line 1 on line 4. Military Skip line 3 and go to line 5. Military   Yes. Military Go to line 3. Military         3 Is your earned income* more than $650?           Yes. Military Add $350 to your earned income. Military Enter the total. Military           No. Military Enter $1,000 3. Military       4 Enter the smaller of line 1 or line 3 4. Military   5 If born before January 2, 1949, OR blind, enter $1,200 ($1,500 if single). Military If born before January 2, 1949, AND blind, enter $2,400 ($3,000 if single). Military Otherwise, enter -0- 5. Military   6 Add lines 4 and 5. Military Enter the total here and on Form 1040NR, line 38 (or Form 1040NR-EZ, line 11). Military Print “Standard Deduction Allowed Under U. Military S. Military –India Income Tax Treaty” in the space to the left of these lines. Military This is your standard deduction for 2013. Military 6. Military   *Earned income includes wages, salaries, tips, professional fees, and other compensation received for personal services you performed. Military It also includes any amount received as a scholarship that you must include in your income. Military Generally, your earned income is the total of the amount(s) you reported on Form 1040NR, lines 8,12,13, and 19, minus amounts on lines 27 and 31 (or Form 1040NR-EZ, lines 3 and 5, minus any amount on line 8). Military Contributions from which you benefit. Military   If you receive a benefit as a result of making a contribution to a qualified organization, you can deduct only the amount of your contribution that is more than the value of the benefit you receive. Military   If you pay more than the fair market value to a qualified organization for merchandise, goods, or services, the amount you pay that is more than the value of the item can be a charitable contribution. Military For the excess amount to qualify, you must pay it with the intent to make a charitable contribution. Military Cash contributions. Military   You cannot deduct a cash contribution, regardless of the amount, unless you keep as a record of the contribution a bank record (such as a canceled check, a bank copy of a canceled check, or a bank statement containing the name of the charity, the date, and the amount) or a written record from the charity. Military The written record must include the name of the charity, date of the contribution, and the amount of the contribution. Military   You may deduct a cash contribution of $250 or more only if you have a written statement from the charitable organization showing: The amount of any money contributed, Whether the organization gave you any goods or services in return for your contribution, and A description and estimate of the value of any goods or services described in (2). Military If you received only intangible religious benefits, the organization must state this, but it does not have to describe or value the benefit. Military Noncash contributions. Military   For contributions not made in cash, the records you must keep depend on the amount of your deduction. Military See Publication 526 for details. Military For example, if you make a noncash contribution and the amount of your deduction is more than $500, you must complete and attach to your tax return Form 8283, Noncash Charitable Contributions. Military If you deduct more than $500 for a contribution of a motor vehicle, boat, or airplane, you must also attach a statement from the charitable organization to your return. Military If your total deduction is over $5,000, you also may have to get appraisals of the values of the property. Military If the donated property is valued at more than $5,000, you must obtain a qualified appraisal. Military You generally must attach to your tax return an appraisal of any property if your deduction for the property is more than $500,000. Military See Form 8283 and its instructions for details. Military Contributions of appreciated property. Military   If you contribute property to a qualified organization, the amount of your charitable contribution is generally the fair market value of the property at the time of the contribution. Military However, if you contribute property with a fair market value that is more than your basis in it, you may have to reduce the fair market value by the amount of appreciation (increase in value) when you figure your deduction. Military Your basis in the property is generally what you paid for it. Military If you need more information about basis, get Publication 551, Basis of Assets. Military   Different rules apply to figuring your deduction, depending on whether the property is: Ordinary income property, or Capital gain property. Military For information about these rules, see Publication 526. Military Limit. Military   The amount you can deduct in a tax year is limited in the same way it is for a citizen or resident of the United States. Military For a discussion of limits on charitable contributions and other information, get Publication 526. Military Casualty and theft losses. Military   You can deduct your loss from fire, storm, shipwreck, or other casualty, or theft of property even though your property is not connected with a U. Military S. Military trade or business. Military The property can be personal use property or income-producing property not connected with a U. Military S. Military trade or business. Military The property must be located in the United States at the time of the casualty or theft. Military You can deduct theft losses only in the year in which you discover the loss. Military   The amount of the loss is the fair market value of the property immediately before the casualty or theft less its fair market value immediately after the casualty or theft (but not more than its cost or adjusted basis) less any insurance or other reimbursement. Military The fair market value of property immediately after a theft is considered zero, because you no longer have the property. Military   If your property is covered by insurance, you should file a timely insurance claim for reimbursement. Military If you do not, you cannot deduct this loss as a casualty or theft loss. Military   Figure your deductible casualty and theft losses on Form 4684, Casualties and Thefts. Military Losses from personal use property. Military    You cannot deduct the first $100 of each casualty or theft loss to property held for personal use. Military You can deduct only the total of these losses for the year (reduced by the $100 limit) that is more than 10% of your adjusted gross income (line 37, Form 1040NR) for the year. Military Losses from income-producing property. Military   These losses are not subject to the limitations that apply to personal use property. Military Use Section B of Form 4684 to figure your deduction for these losses. Military Job expenses and other miscellaneous deductions. Military   You can deduct job expenses, such as allowable unreimbursed travel expenses (discussed next), and other miscellaneous deductions. Military Generally, the allowable deductions must be related to effectively connected income. Military Deductible expenses include: Union dues, Safety equipment and small tools needed for your job, Dues to professional organizations, Subscriptions to professional journals, Tax return preparation fees, and Casualty and theft losses of property used in performing services as an employee (employee property). Military   Most miscellaneous itemized deductions are deductible only if they are more than 2% of your adjusted gross income (line 37, Form 1040NR). Military For more information on miscellaneous deductions, see the instructions for Form 1040NR. Military Travel expenses. Military   You may be able to deduct your ordinary and necessary travel expenses while you are temporarily performing personal services in the United States. Military Generally, a temporary assignment in a single location is one that is realistically expected to last (and does in fact last) for one year or less. Military You must be able to show you were present in the United States on an activity that required your temporary absence from your regular place of work. Military   For example, if you have established a “tax home” through regular employment in a foreign country, and intend to return to similar employment in the same country at the end of your temporary stay in the United States, you can deduct reasonable travel expenses you paid. Military You cannot deduct travel expenses for other members of your family or party. Military Deductible travel expenses. Military   If you qualify, you can deduct your expenses for: Transportation—airfare, local transportation, including train, bus, etc. Military , Lodging—rent paid, utilities (do not include telephone), hotel or motel room expenses, and Meal expenses—actual expenses allowed if you keep records of the amounts, or, if you do not wish to keep detailed records, you are generally allowed a standard meal allowance amount depending on the date and area of your travel. Military You generally can deduct only 50% of unreimbursed meal expenses. Military The standard meal allowance rates for high-cost areas are available at www. Military gsa. Military gov/perdiem. Military The rates for other areas are in Publication 463. Military   Use Form 2106 or 2106-EZ to figure your allowable expenses that you claim on line 7 of Schedule A (Form 1040NR). Military Expenses allocable to U. Military S. Military tax-exempt income. Military   You cannot deduct an expense, or part of an expense, that is allocable to U. Military S. Military tax-exempt income, including income exempt by tax treaty. Military Example. Military Irina Oak, a citizen of Poland, resided in the United States for part of the year to acquire business experience from a U. Military S. Military company. Military During her stay in the United States, she received a salary of $8,000 from her Polish employer. Military She received no other U. Military S. Military source income. Military She spent $3,000 on travel expenses, of which $1,000 were for meals. Military None of these expenses were reimbursed. Military Under the tax treaty with Poland, $5,000 of her salary is exempt from U. Military S. Military income tax. Military In filling out Form 2106-EZ, she must reduce her deductible meal expenses by half ($500). Military She must reduce the remaining $2,500 of travel expenses by 62. Military 5% ($1,563) because 62. Military 5% ($5,000 ÷ $8,000) of her salary is exempt from tax. Military She enters the remaining total of $937 on line 7 of Schedule A (Form 1040NR). Military She completes the remaining lines according to the instructions for Schedule A. Military More information. Military   For more information about deductible expenses, reimbursements, and recordkeeping, get Publication 463. Military Tax Credits and Payments This discussion covers tax credits and payments for resident aliens, followed by a discussion of the credits and payments for nonresident aliens. Military Resident Aliens Resident aliens generally claim tax credits and report tax payments, including withholding, using the same rules that apply to U. Military S. Military citizens. Military The following items are some of the credits you may be able to claim. Military Foreign tax credit. Military   You can claim a credit, subject to certain limits, for income tax you paid or accrued to a foreign country on foreign source income. Military You cannot claim a credit for taxes paid or accrued on excluded foreign earned income. Military To claim a credit for income taxes paid or accrued to a foreign country, you generally will file Form 1116, Foreign Tax Credit (Individual, Estate, or Trust), with your Form 1040. Military   For more information, get Publication 514, Foreign Tax Credit for Individuals. Military Child and dependent care credit. Military   You may be able to take this credit if you pay someone to care for your qualifying child who is under age 13, or your disabled dependent or disabled spouse, so that you can work or look for work. Military Generally, you must be able to claim an exemption for your dependent. Military   For more information, get Publication 503, Child and Dependent Care Expenses, and Form 2441, Child and Dependent Care Expenses. Military Credit for the elderly or the disabled. Military   You may qualify for this credit if you are 65 or older or if you retired on permanent and total disability. Military For more information on this credit, get Publication 524, Credit for the Elderly or the Disabled, and Schedule R (Form 1040A or 1040). Military Education credits. Military   You may qualify for these credits if you paid qualified education expenses for yourself, your spouse, or your dependent. Military There are two education credits: the American Opportunity Credit and the lifetime learning credit. Military You cannot claim these credits if you are married filing separately. Military Use Form 8863, Education Credits (American Opportunity and Lifetime Learning Credits), to figure the credit. Military For more information, see Publication 970. Military Retirement savings contributions credit. Military   You may qualify for this credit (also known as the saver's credit) if you made eligible contributions to an employer-sponsored retirement plan or to an individual retirement arrangement (IRA) in 2013. Military You cannot claim this credit if: You were born after January 1, 1996, You were a full-time student, Your exemption is claimed by someone else on his or her 2013 tax return, or Your adjusted gross income is more than: $59,000, if your filing status is married filing jointly, $44,250, if your filing status is head of household, or $29,500, if your filing status is single, married filing separately, or qualifying widow(er). Military Use Form 8880, Credit for Qualified Retirement Savings Contributions, to figure the credit. Military For more information, see Publication 590. Military Child tax credit. Military   You may be able to take this credit if you have a qualifying child. Military   A qualifying child for purposes of the child tax credit is a child who: Was under age 17 at the end of 2013. Military Is your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, half brother, half sister, or a descendant of any of them (for example, your grandchild, niece, or nephew). Military Is a U. Military S. Military citizen, a U. Military S. Military national, or a resident alien. Military Did not provide over half of his or her own support for 2013. Military Lived with you more than half of 2013. Military Temporary absences, such as for school, vacation, or medical care, count as time lived in the home. Military Is claimed as a dependent on your return. Military An adopted child is always treated as your own child. Military An adopted child includes a child lawfully placed with you for legal adoption. Military   See your form instructions for additional details. Military Adoption credit. Military   You may qualify to take a tax credit of up to $12,970 for qualifying expenses paid to adopt an eligible child. Military This amount may be allowed for the adoption of a child with special needs regardless of whether you have qualifying expenses. Military To claim the adoption credit, file Form 8839, Qualified Adoption Expenses, with your Form 1040. Military Earned income credit. Military   You may qualify for an earned income credit of up to $3,250 if a child lived with you in the United States and your earned income and adjusted gross income were each less than $37,870 ($43,210 if married filing jointly). Military If two children lived with you in the United States and your earned income and adjusted gross income were each less than $43,038 ($48,378 if married filing jointly), your credit could be as much as $5,372. Military If three or more children lived with you in the United States and your earned income and adjusted gross income were each less than $46,227 ($51,567 if married filing jointly), your credit could be as much as $6,044. Military If you do not have a qualifying child and your earned income and adjusted gross income were each less than $14,340 ($19,680 if married filing jointly), your credit could be as much as $487. Military You cannot claim the earned income credit if your filing status is married filing separately. Military    You and your spouse (if filing a joint return) and any qualifying child must have valid SSNs to claim this credit. Military You cannot claim the credit using an ITIN. Military If a social security card has a legend that says Not Valid for Employment and the number was issued so that you (or your spouse or your qualifying child) could receive a federally funded benefit, you cannot claim the earned income credit. Military An example of a federally funded benefit is Medicaid. Military If a card has this legend and the individual's immigration status has changed so that the individual is now a U. Military S. Military citizen or lawful permanent resident, ask the SSA to issue a new social security card without the legend. Military Other information. Military   There are other eligibility rules that are not discussed here. Military For more information, get Publication 596, Earned Income Credit. Military Nonresident Aliens You can claim some of the same credits that resident aliens can claim. Military You can also report certain taxes you paid, are considered to have paid, or that were withheld from your income. Military Credits Credits are allowed only if you receive effectively connected income. Military You may be able to claim some of the following credits. Military Foreign tax credit. Military   If you receive foreign source income that is effectively connected with a trade or business in the United States, you can claim a credit for any income taxes paid or accrued to any foreign country or U. Military S. Military possession on that income. Military   If you do not have foreign source income effectively connected with a U. Military S. Military trade or business, you cannot claim credits against your U. Military S. Military tax for taxes paid or accrued to a foreign country or U. Military S. Military possession. Military   You cannot take any credit for taxes imposed by a foreign country or U. Military S. Military possession on your U. Military S. Military source income if those taxes were imposed only because you are a citizen or resident of the foreign country or possession. Military   If you claim a foreign tax credit, you generally will have to attach to your return a Form 1116. Military See Publication 514 for more information. Military Child and dependent care credit. Military   You may qualify for this credit if you pay someone to care for your qualifying child who is under age 13, or your disabled dependent or disabled spouse, so that you can work or look for work. Military Generally, you must be able to claim an exemption for your dependent. Military   Married nonresident aliens can claim the credit only if they choose to file a joint return with a U. Military S. Military citizen or resident spouse as discussed in chapter 1, or if they qualify as certain married individuals living apart (see Joint Return Test in Publication 503). Military   The amount of your child and dependent care expense that qualifies for the credit in any tax year cannot be more than your earned income from the United States for that tax year. Military Earned income generally means wages, salaries, and professional fees for personal services performed. Military   For more information, get Publication 503. Military Education credits. Military   If you are a nonresident alien for any part of the year, you generally cannot claim the education credits. Military However, if you are married and choose to file a joint return with a U. Military S. Military citizen or resident spouse as discussed in chapter 1, you may be eligible for these credits. Military Retirement savings contributions credit. Military   You may qualify for this credit (also known as the saver's credit) if you made eligible contributions to an employer-sponsored retirement plan or to an individual retirement arrangement (IRA) in 2013. Military You cannot claim this credit if: You were born after January 1, 1996, You were a full-time student, Your exemption is claimed by someone else on his or her 2013 tax return, or Your adjusted gross income is more than $29,500. Military Use Form 8880 to figure the credit. Military For more information, see Publication 590. Military Child tax credit. Military   You may be able to take this credit if you have a qualifying child. Military   A qualifying child for purposes of the child tax credit is a child who: Was under age 17 at the end of 2013. Military Is your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, half brother, half sister, or a descendant of any of them (for example, your grandchild, niece, or nephew). Military Is a U. Military S. Military citizen, a U. Military S. Military national, or a resident alien. Military Did not provide over half of his or her own support for 2013. Military Lived with you more than half of 2013. Military Temporary absences, such as for school, vacation, or medical care, count as time lived in the home. Military Is claimed as a dependent on your return. Military An adopted child is always treated as your own child. Military An adopted child includes a child lawfully placed with you for legal adoption. Military   See your form instructions for additional details. Military Adoption credit. Military   You may qualify to take a tax credit of up to $12,970 for qualifying expenses paid to adopt an eligible child. Military This amount may be allowed for the adoption of a child with special needs regardless of whether you have qualifying expenses. Military To claim the adoption credit, file Form 8839 with your Form 1040NR. Military   Married nonresident aliens can claim the credit only if they choose to file a joint return with a U. Military S. Military citizen or resident spouse as discussed in chapter 1, or if they qualify as certain married individuals living apart (see Married Persons Not Filing Jointly in the Form 8839 instructions). Military Credit for prior year minimum tax. Military   If you paid alternative minimum tax in a prior year, get Form 8801, Credit for Prior Year Minimum Tax—Individuals, Estates, and Trusts, to see if you qualify for this credit. Military Earned income credit. Military   If you are a nonresident alien for any part of the tax year, you generally cannot get the earned income credit. Military However, if you are married and choose to file a joint return with a U. Military S. Military citizen or resident spouse as discussed in chapter 1, you may be eligible for the credit. Military    You, your spouse, and any qualifying child must have valid SSNs to claim this credit. Military You cannot claim the credit using an ITIN. Military If a social security card has a legend that says Not Valid for Employment and the number was issued so that you (or your spouse or your qualifying child) could receive a federally funded benefit, you cannot claim the earned income credit. Military An example of a federally funded benefit is Medicaid. Military If a card has this legend and the individual's immigration status has changed so that the individual is now a U. Military S. Military citizen or lawful permanent resident, ask the SSA to issue a new social security card without the legend. Military   See Publication 596 for more information on the credit. Military Tax Withheld You can claim the tax withheld during the year as a payment against your U. Military S. Military tax. Military You claim it on line 61 of Form 1040NR or on line 18 of Form 1040NR-EZ. Military The tax withheld reduces any tax you owe with Form 1040NR or Form 1040NR-EZ. Military Withholding from wages. Military   Any federal income tax withheld from your wages during the tax year while you were a nonresident alien is allowed as a payment against your U. Military S. Military income tax liability for the same year. Military You can claim the income tax withheld whether or not you were engaged in a trade or business in the United States during the year, and whether or not the wages (or any other income) were connected with a trade or business in the United States. Military Excess social security tax withheld. Military   If you have two or more employers, you may be able to claim a credit against your U. Military S. Military income tax liability for social security tax withheld in excess of the maximum required. Military See Social Security and Medicare Taxes in chapter 8 for more information. Military Additional Medicare Tax. Military   Your employer is responsible for withholding the 0. Military 9% Additional Medicare Tax on Medicare wages or RRTA compensation it pays to you in excess of $200,000 in 2013. Military If you do not owe Additional Medicare Tax, you can claim a credit for any withheld Additional Medicare Tax against the total tax liability shown on your tax return by filing Form 8959. Military Tax paid on undistributed long-term capital gains. Military   If you are a shareholder in a mutual fund (or other regulated investment company) or real estate investment trust, you can claim a credit for your share of any taxes paid by the company on its undistributed long-term capital gains. Military You will receive information on Form 2439, Notice to Shareholder of Undistributed Long-Term Capital Gains, which you must attach to your return. Military Tax withheld at the source. Military   You can claim as a payment any tax withheld at the source on investment and other fixed or determinable annual or periodic income paid to you. Military Fixed or determinable income includes interest, dividend, rental, and royalty income that you do not claim to be effectively connected income. Military Wage or salary payments can be fixed or determinable income to you, but usually are subject to withholding as discussed above. Military Taxes on fixed or determinable income are withheld at a 30% rate or at a lower treaty rate. Military Tax withheld on partnership income. Military   If you are a foreign partner in a partnership, the partnership will withhold tax on your share of effectively connected taxable income from the partnership. Military The partnership will give you a statement on Form 8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax, showing the tax withheld. Military A partnership that is publicly traded may withhold on your actual distributions of effectively connected income. Military In this case, the partnership will give you a statement on Form 1042-S. Military Claim the tax withheld as a payment on line 61b or 61d of Form 1040NR, as appropriate. Military Claiming tax withheld on your return. Military   When you fill out your tax return, take extra care to enter the correct amount of any tax withheld shown on your information documents. Military The following table lists some of the more common information documents and shows where to find the amount of tax withheld. Military Form number Location  of tax  withheld RRB-1042S Box 12 SSA-1042S Box 9 W-2 Box 2 W-2c Box 2 1042-S Box 9 8805 Line 10 8288-A Box 2 Bona Fide Residents of American Samoa or Puerto Rico If you are a nonresident alien who is a bona fide resident of American Samoa or Puerto Rico for the entire tax year, you generally are taxed the same as resident aliens. Military You should file Form 1040 and report all income from sources both in and outside the United States. Military However, you can exclude the income discussed in the following paragraphs. Military For tax purposes other than reporting income, however, you will be treated as a nonresident alien. Military For example, you are not allowed the standard deduction, you cannot file a joint return, and you are not allowed a deduction for a dependent unless that person is a citizen or national of the United States. Military There are also limits on what deductions and credits are allowed. Military See Nonresident Aliens under Deductions , Itemized Deductions , and Tax Credits and Payments in this chapter. Military Residents of Puerto Rico. Military   If you are a bona fide resident of Puerto Rico for the entire year, you can exclude from gross income all income from sources in Puerto Rico (other than amounts for services performed as an employee of the United States or any of its agencies). Military   If you report income on a calendar year basis and you do not have wages subject to withholding, file your return and pay your tax by June 15. Military You must also make your first payment of estimated tax by June 15. Military You cannot file a joint income tax return or make joint payments of estimated tax. Military However, if you are married to a U. Military S. Military citizen or resident, see Nonresident Spouse Treated as a Resident in chapter 1. Military   If you earn wages subject to withholding, your U. Military S. Military income tax return is due by April 15. Military Your first payment of estimated tax is also due by April 15. Military For information on withholding and estimated tax, see chapter 8 . Military Residents of American Samoa. Military   If you are a bona fide resident of American Samoa for the entire year, you can exclude from gross income all income from sources in American Samoa (other than amounts for services performed as an employee of the U. Military S. Military government or any of its agencies). Military An employee of the American Samoan government is not considered an employee of the U. Military S. Military government or any of its agencies for purposes of the exclusion. Military For more information about this exclusion, get Form 4563 and Publication 570, Tax Guide for Individuals With Income From U. Military S. Military Possessions. Military Prev  Up  Next   Home   More Online Publications