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Student Tax

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Student Tax

Student tax 5. Student tax   How To Get Tax Help Table of Contents Whether it's help with a tax issue, preparing your tax return or a need for a free publication or form, get the help you need the way you want it: online, use a smart phone, call or walk in to an IRS office or volunteer site near you. Student tax You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get information from the IRS in several ways. Student tax By selecting the method that is best for you, you will have quick and easy access to tax help. Student tax Free help with your tax return. Student tax   You can get free help preparing your return nationwide from IRS-certified volunteers. Student tax The Volunteer Income Tax Assistance (VITA) program helps low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers. Student tax The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Student tax Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. Student tax In addition, some VITA and TCE sites provide taxpayers the opportunity to prepare their own return with help from an IRS-certified volunteer. Student tax To find the nearest VITA or TCE site, you can use the VITA Locator Tool on IRS. Student tax gov, download the IRS2Go app, or call 1-800-906-9887. Student tax   As part of the TCE program, AARP offers the Tax-Aide counseling program. Student tax To find the nearest AARP Tax-Aide site, visit AARP's website at www. Student tax aarp. Student tax org/money/taxaide or call 1-888-227-7669. Student tax For more information on these programs, go to IRS. Student tax gov and enter “VITA” in the search box. Student tax Internet. Student tax    IRS. Student tax gov and IRS2Go are ready when you are —24 hours a day, 7 days a week. Student tax Download the free IRS2Go app from the iTunes app store or from Google Play. Student tax Use it to check your refund status, order transcripts of your tax returns or tax account, watch the IRS YouTube channel, get IRS news as soon as it's released to the public, subscribe to filing season updates or daily tax tips, and follow the IRS Twitter news feed, @IRSnews, to get the latest federal tax news, including information about tax law changes and important IRS programs. Student tax Check the status of your 2013 refund with the Where's My Refund? application on IRS. Student tax gov or download the IRS2Go app and select the Refund Status option. Student tax The IRS issues more than 9 out of 10 refunds in less than 21 days. Student tax Using these applications, you can start checking on the status of your return within 24 hours after we receive your e-filed return or 4 weeks after you mail a paper return. Student tax You will also be given a personalized refund date as soon as the IRS processes your tax return and approves your refund. Student tax The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Student tax Use the Interactive Tax Assistant (ITA) to research your tax questions. Student tax No need to wait on the phone or stand in line. Student tax The ITA is available 24 hours a day, 7 days a week, and provides you with a variety of tax information related to general filing topics, deductions, credits, and income. Student tax When you reach the response screen, you can print the entire interview and the final response for your records. Student tax New subject areas are added on a regular basis. Student tax  Answers not provided through ITA may be found in Tax Trails, one of the Tax Topics on IRS. Student tax gov which contain general individual and business tax information or by searching the IRS Tax Map, which includes an international subject index. Student tax You can use the IRS Tax Map, to search publications and instructions by topic or keyword. Student tax The IRS Tax Map integrates forms and publications into one research tool and provides single-point access to tax law information by subject. Student tax When the user searches the IRS Tax Map, they will be provided with links to related content in existing IRS publications, forms and instructions, questions and answers, and Tax Topics. Student tax Coming this filing season, you can immediately view and print for free all 5 types of individual federal tax transcripts (tax returns, tax account, record of account, wage and income statement, and certification of non-filing) using Get Transcript. Student tax You can also ask the IRS to mail a return or an account transcript to you. Student tax Only the mail option is available by choosing the Tax Records option on the IRS2Go app by selecting Mail Transcript on IRS. Student tax gov or by calling 1-800-908-9946. Student tax Tax return and tax account transcripts are generally available for the current year and the past three years. Student tax Determine if you are eligible for the EITC and estimate the amount of the credit with the Earned Income Tax Credit (EITC) Assistant. Student tax Visit Understanding Your IRS Notice or Letter to get answers to questions about a notice or letter you received from the IRS. Student tax If you received the First Time Homebuyer Credit, you can use the First Time Homebuyer Credit Account Look-up tool for information on your repayments and account balance. Student tax Check the status of your amended return using Where's My Amended Return? Go to IRS. Student tax gov and enter Where's My Amended Return? in the search box. Student tax You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. Student tax It can take up to 3 weeks from the date you mailed it to show up in our system. Student tax Make a payment using one of several safe and convenient electronic payment options available on IRS. Student tax gov. Student tax Select the Payment tab on the front page of IRS. Student tax gov for more information. Student tax Determine if you are eligible and apply for an online payment agreement, if you owe more tax than you can pay today. Student tax Figure your income tax withholding with the IRS Withholding Calculator on IRS. Student tax gov. Student tax Use it if you've had too much or too little withheld, your personal situation has changed, you're starting a new job or you just want to see if you're having the right amount withheld. Student tax Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. Student tax gov. Student tax Request an Electronic Filing PIN by going to IRS. Student tax gov and entering Electronic Filing PIN in the search box. Student tax Download forms, instructions and publications, including accessible versions for people with disabilities. Student tax Locate the nearest Taxpayer Assistance Center (TAC) using the Office Locator tool on IRS. Student tax gov, or choose the Contact Us option on the IRS2Go app and search Local Offices. Student tax An employee can answer questions about your tax account or help you set up a payment plan. Student tax Before you visit, check the Office Locator on IRS. Student tax gov, or Local Offices under Contact Us on IRS2Go to confirm the address, phone number, days and hours of operation, and the services provided. Student tax If you have a special need, such as a disability, you can request an appointment. Student tax Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. Student tax Apply for an Employer Identification Number (EIN). Student tax Go to IRS. Student tax gov and enter Apply for an EIN in the search box. Student tax Read the Internal Revenue Code, regulations, or other official guidance. Student tax Read Internal Revenue Bulletins. Student tax Sign up to receive local and national tax news and more by email. Student tax Just click on “subscriptions” above the search box on IRS. Student tax gov and choose from a variety of options. Student tax Phone. Student tax    You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. Student tax Download the free IRS2Go app from the iTunes app store or from Google Play. Student tax Call to locate the nearest volunteer help site, 1-800-906-9887 or you can use the VITA Locator Tool on IRS. Student tax gov, or download the IRS2Go app. Student tax Low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. Student tax The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Student tax Most VITA and TCE sites offer free electronic filing. Student tax Some VITA and TCE sites provide IRS-certified volunteers who can help prepare your tax return. Student tax Through the TCE program, AARP offers the Tax-Aide counseling program; call 1-888-227-7669 to find the nearest Tax-Aide location. Student tax Call the automated Where's My Refund? information hotline to check the status of your 2013 refund 24 hours a day, 7 days a week at 1-800-829-1954. Student tax If you e-file, you can start checking on the status of your return within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. Student tax The IRS issues more than 9 out of 10 refunds in less than 21 days. Student tax Where's My Refund? will give you a personalized refund date as soon as the IRS processes your tax return and approves your refund. Student tax Before you call this automated hotline, have your 2013 tax return handy so you can enter your social security number, your filing status, and the exact whole dollar amount of your refund. Student tax The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Student tax Note, the above information is for our automated hotline. Student tax Our live phone and walk-in assistors can research the status of your refund only if it's been 21 days or more since you filed electronically or more than 6 weeks since you mailed your paper return. Student tax Call the Amended Return Hotline, 1-866-464-2050, to check the status of your amended return. Student tax You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. Student tax It can take up to 3 weeks from the date you mailed it to show up in our system. Student tax Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, publications, and prior-year forms and instructions (limited to 5 years). Student tax You should receive your order within 10 business days. Student tax Call TeleTax, 1-800-829-4477, to listen to pre-recorded messages covering general and business tax information. Student tax If, between January and April 15, you still have questions about the Form 1040, 1040A, or 1040EZ (like filing requirements, dependents, credits, Schedule D, pensions and IRAs or self-employment taxes), call 1-800-829-1040. Student tax Call using TTY/TDD equipment, 1-800-829-4059 to ask tax questions or order forms and publications. Student tax The TTY/TDD telephone number is for people who are deaf, hard of hearing, or have a speech disability. Student tax These individuals can also contact the IRS through relay services such as the Federal Relay Service. Student tax Mail. Student tax   You can send your order for forms, instructions, and publications to the address below. Student tax You should receive a response within 10 business days after your request is received. Student tax Internal Revenue Service 1201 N. Student tax Mitsubishi Motorway Bloomington, IL 61705-6613    The Taxpayer Advocate Service Is Here to Help You. Student tax The Taxpayer Advocate Service (TAS) is your voice at the IRS. Student tax Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. Student tax   What can TAS do for you? We can offer you free help with IRS problems that you can't resolve on your own. Student tax We know this process can be confusing, but the worst thing you can do is nothing at all! TAS can help if you can't resolve your tax problem and: Your problem is causing financial difficulties for you, your family, or your business. Student tax You face (or your business is facing) an immediate threat of adverse action. Student tax You've tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised. Student tax   If you qualify for our help, you'll be assigned to one advocate who'll be with you at every turn and will do everything possible to resolve your problem. Student tax Here's why we can help: TAS is an independent organization within the IRS. Student tax Our advocates know how to work with the IRS. Student tax Our services are free and tailored to meet your needs. Student tax We have offices in every state, the District of Columbia, and Puerto Rico. Student tax   How can you reach us? If you think TAS can help you, call your local advocate, whose number is in your local directory and at www. Student tax irs. Student tax gov/Advocate, or call us toll-free at 1-877-777-4778. Student tax   How else does TAS help taxpayers?  TAS also works to resolve large-scale, systemic problems that affect many taxpayers. Student tax If you know of one of these broad issues, please report it to us through our Systemic Advisory Management System at www. Student tax irs. Student tax gov/Advocate/Systemic-Advocacy-Management-System-SAMS. Student tax Low Income Taxpayer Clinics. Student tax    Low Income Taxpayer Clinics (LITCs) serve individuals whose income is below a certain level and need to resolve tax problems such as audits, appeals and tax collection disputes. Student tax Some clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. Student tax Visit www. Student tax irs. Student tax gov/Advocate or see IRS Publication 4134, Low Income Taxpayer Clinic List. Student tax Prev  Up  Next   Home   More Online Publications
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The CPSC protects the public from unreasonable risks of serious injury or death from thousands of types of consumer products under its jurisdiction, including products that pose a fire, electrical, chemical, or mechanical hazard or can injure children.

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The Student Tax

Student tax 12. Student tax   Self-Employment Tax Table of Contents What's New for 2013 What's New for 2014 Introduction Topics - This chapter discusses: Useful Items - You may want to see: Why Pay Self-Employment Tax? How To Pay Self-Employment TaxReplacing a lost social security card. Student tax Name change. Student tax Penalty for underpayment of estimated tax. Student tax Who Must Pay Self-Employment Tax?Limited partner. Student tax Community property. Student tax Figuring Self-Employment EarningsLandlord Participation in Farming Methods for Figuring Net EarningsRegular Method Farm Optional Method Nonfarm Optional Method Using Both Optional Methods Reporting Self-Employment Tax What's New for 2013 Tax rates. Student tax  For tax years beginning in 2013, the social security part of the self-employment tax increases from 10. Student tax 4% to 12. Student tax 4%. Student tax The Medicare part of the tax remains at 2. Student tax 9%. Student tax As a result, the self-employment tax is increased from 13. Student tax 3% to 15. Student tax 3%. Student tax Additional Medicare Tax. Student tax . Student tax  For tax years beginning in 2013, a 0. Student tax 9% Additional Medicare Tax applies to your Medicare wages, Railroad Retirement Tax Act (RRTA) compensation, and self-employment income above a threshold amount. Student tax Use Form 8959, Additional Medicare Tax, to figure this tax. Student tax For more information, see the Instructions for Form 8959. Student tax Maximum net earnings. Student tax  The maximum net self-employment earnings subject to the social security part (12. Student tax 4%) of the self-employment tax increased to $113,700 for 2013. Student tax There is no maximum limit on earnings subject to the Medicare part (2. Student tax 9%). Student tax What's New for 2014 Maximum net earnings. Student tax  The maximum net self-employment earnings subject to the social security part of the self-employment tax for 2014 will be discussed in the 2013 Publication 334. Student tax Introduction Self-employment tax (SE tax) is a social security and Medicare tax primarily for individuals who work for themselves. Student tax It is similar to the social security and Medicare taxes withheld from the pay of most wage earners. Student tax You usually have to pay SE tax if you are self-employed. Student tax You are usually self-employed if you operate your own farm on land you either own or rent. Student tax You have to figure SE tax on Schedule SE (Form 1040). Student tax Farmers who have employees may have to pay the employer's share of social security and Medicare taxes, as well. Student tax See chapter 13 for information on employment taxes. Student tax Self-employment tax rate. Student tax   For tax years beginning in 2013, the self-employment tax rate is 15. Student tax 3%. Student tax The rate consists of two parts: 12. Student tax 4% for social security (old-age, survivors, and disability insurance) and 2. Student tax 9% for Medicare (hospital insurance). Student tax Topics - This chapter discusses: Why pay self-employment tax How to pay self-employment tax Who must pay self-employment tax Figuring self-employment earnings Landlord participation in farming Methods for figuring net earnings Reporting self-employment tax Useful Items - You may want to see: Publication 541 Partnerships Form (and Instructions) 1040 U. Student tax S. Student tax Individual Income Tax Return Sch F (Form 1040) Profit or Loss From Farming Sch SE (Form 1040) Self-Employment Tax 1065 U. Student tax S. Student tax Return of Partnership Income Sch K-1 (Form 1065) Partner's Share of Income, Deductions, Credits, etc. Student tax See chapter 16 for information about getting publications and forms. Student tax Why Pay Self-Employment Tax? Social security benefits are available to self-employed persons just as they are to wage earners. Student tax Your payments of SE tax contribute to your coverage under the social security system. Student tax Social security coverage provides you with retirement benefits, disability benefits, survivor benefits, and hospital insurance (Medicare) benefits. Student tax How to become insured under social security. Student tax   You must be insured under the social security system before you begin receiving social security benefits. Student tax You are insured if you have the required number of credits (also called quarters of coverage). Student tax Earning credits in 2013. Student tax   You can earn a maximum of four credits per year. Student tax For 2013, you earn one credit for each $1,160 of combined wages and self-employment earnings subject to social security tax. Student tax You need $4,640 ($1,160 × 4) of combined wages and self-employment earnings subject to social security tax to earn four credits in 2013. Student tax It does not matter whether the income is earned in 1 quarter or is spread over 2 or more quarters. Student tax For an explanation of the number of credits you must have to be insured and the benefits available to you and your family under the social security program, consult your nearest Social Security Administration (SSA) office or visit the SSA website at www. Student tax socialsecurity. Student tax gov. Student tax Making false statements to get or to increase social security benefits may subject you to penalties. Student tax The Social Security Administration (SSA) time limit for posting self-employment earnings. Student tax   Generally, the SSA will give you credit only for self-employment earnings reported on a tax return filed within 3 years, 3 months, and 15 days after the tax year you earned the income. Student tax    If you file your tax return or report a change in your self-employment earnings after the SSA time limit for posting self-employment earnings, the SSA may change its records, but only to remove or reduce the amount. Student tax The SSA will not change its records to increase your self-employment earnings after the SSA time limit listed above. Student tax How To Pay Self-Employment Tax To pay SE tax, you must have a social security number (SSN) or an individual taxpayer identification number (ITIN). Student tax This section explains how to: Obtain an SSN or ITIN, and Pay your SE tax using estimated tax. Student tax An ITIN does not entitle you to social security benefits. Student tax Obtaining an ITIN does not change your immigration or employment status under U. Student tax S. Student tax law. Student tax Obtaining a social security number. Student tax   If you have never had an SSN, apply for one using Form SS-5, Application for a Social Security Card. Student tax The application is also available in Spanish. Student tax You can get this form at any Social Security office or by calling 1-800-772-1213. Student tax    You can also download Form SS-5 from the Social Security Administration website at  www. Student tax socialsecurity. Student tax gov. Student tax   If you have a social security number from the time you were an employee, you must use that number. Student tax Do not apply for a new one. Student tax Replacing a lost social security card. Student tax   If you have a number but lost your card, file Form SS-5. Student tax You will get a new card showing your original number, not a new number. Student tax Name change. Student tax   If your name has changed since you received your social security card, complete Form SS-5 to report a name change. Student tax Obtaining an individual taxpayer identification number. Student tax   The IRS will issue you an ITIN, for tax use only, if you are a nonresident or resident alien and you do not have, and are not eligible to get, an SSN. Student tax To apply for an ITIN, file Form W-7, Application for IRS Individual Taxpayer Identification Number. Student tax You can get this form by calling 1-800-829-3676. Student tax For more information on ITINs, see Publication 1915, Understanding Your IRS Individual Taxpayer Identification Number. Student tax Form W-7 and Publication 1915 are also available in Spanish. Student tax    You can also download Form W-7 from the IRS website at IRS. Student tax gov. Student tax Paying estimated tax. Student tax   Estimated tax is the method used to pay tax (including SE tax) on income not subject to withholding. Student tax You generally have to make estimated tax payments if you expect to owe tax, including SE tax, of $1,000 or more when you file your return. Student tax Use Form 1040-ES, Estimated Tax for Individuals, to figure and pay the tax. Student tax   However, if at least two-thirds of your gross income for 2013 or 2014 was from farming and you file your 2014 Form 1040 and pay all the tax due by March 2, 2015, you do not have to pay any estimated tax. Student tax For more information about estimated tax for farmers, see chapter 15. Student tax Penalty for underpayment of estimated tax. Student tax   You may have to pay a penalty if you do not pay enough estimated tax by its due date. Student tax Who Must Pay Self-Employment Tax? You must pay SE tax and file Schedule SE (Form 1040) if your net earnings from self-employment were $400 or more. Student tax The SE tax rules apply no matter how old you are and even if you are already receiving social security or Medicare benefits. Student tax Aliens. Student tax   Generally, resident aliens must pay self-employment tax under the same rules that apply to U. Student tax S. Student tax citizens. Student tax Nonresident aliens are not subject to self-employment tax. Student tax However, residents of the Virgin Islands, Puerto Rico, Guam, the Commonwealth of the Northern Mariana Islands, or American Samoa are subject to self-employment tax, as they are considered U. Student tax S. Student tax residents for self-employment tax purposes. Student tax For more information on aliens, see Publication 519, U. Student tax S. Student tax Tax Guide for Aliens. Student tax Are you self-employed?   You are self-employed if you carry on a trade or business (such as running a farm) as a sole proprietor, an independent contractor, a member of a partnership, or are otherwise in business for yourself. Student tax A trade or business is generally an activity carried on for a livelihood or in good faith to make a profit. Student tax Share farmer. Student tax   You are a self-employed farmer under an income-sharing arrangement if both the following apply. Student tax You produce a crop or raise livestock on land belonging to another person. Student tax Your share of the crop or livestock, or the proceeds from their sale, depends on the amount produced. Student tax Your net farm profit or loss from the income-sharing arrangement is reported on Schedule F (Form 1040) and included in your self-employment earnings. Student tax   If you produce a crop or livestock on land belonging to another person and are to receive a specified rate of pay, a fixed sum of money, or a fixed quantity of the crop or livestock, and not a share of the crop or livestock or their proceeds, you may be either self-employed or an employee of the landowner. Student tax This will depend on whether the landowner has the right to direct or control your performance of services. Student tax Example. Student tax A share farmer produces a crop on land owned by another person on a 50-50 crop-share basis. Student tax Under the terms of their agreement, the share farmer furnishes the labor and half the cost of seed and fertilizer. Student tax The landowner furnishes the machinery and equipment used to produce and harvest the crop, and half the cost of seed and fertilizer. Student tax The share farmer is provided a house in which to live. Student tax The landowner and the share farmer decide on a cropping plan. Student tax The share farmer is a self-employed farmer for purposes of the agreement to produce the crops, and the share farmer's part of the profit or loss from the crops is reported on Schedule F (Form 1040) and included in self-employment earnings. Student tax The tax treatment of the landowner is discussed later under Landlord Participation in Farming. Student tax Contract farming. Student tax   Under typical contract farming arrangements, the grower receives a fixed payment per unit of crops or finished livestock delivered to the processor or packing company. Student tax Since the grower typically furnishes labor and bears some production risk, the payments are reported on Schedule F and are therefore subject to self-employment tax. Student tax 4-H Club or FFA project. Student tax   If an individual participates in a 4-H Club or Future Farmers of America (FFA) project, any net income received from sales or prizes related to the project may be subject to income tax. Student tax Report the net income as “Other income” on line 21 of Form 1040. Student tax If necessary, attach a statement showing the gross income and expenses. Student tax The net income may not be subject to SE tax if the project is primarily for educational purposes and not for profit, and is completed by the individual under the rules and economic restrictions of the sponsoring 4-H or FFA organization. Student tax Such a project is generally not considered a trade or business. Student tax Partners in a partnership. Student tax   Generally, you are self-employed if you are a member of a partnership that carries on a trade or business. Student tax Limited partner. Student tax   If you are a limited partner, your partnership income is generally not subject to SE tax. Student tax However, guaranteed payments you receive for services you perform for the partnership are subject to SE tax and should be reported to you in box 14 of your Schedule K-1 (Form 1065). Student tax Business Owned and Operated by Spouses. Student tax   If you and your spouse jointly own and operate a farm as an unincorporated business and share in the profits and losses, you are partners in a partnership whether or not you have a formal partnership agreement. Student tax You must file Form 1065, instead of Schedule F, unless you make a joint election to be treated as a qualified joint venture. Student tax Making this election will allow you to avoid the complexity of Form 1065 but still give each spouse credit for social security earnings on which retirement benefits are based. Student tax Qualified joint venture. Student tax   If you and your spouse each materially participate as the only members of a jointly owned and operated farm, and you file a joint tax return for the tax year, you can make a joint election to be treated as a qualified joint venture instead of a partnership for the tax year. Student tax For an explanation of “material participation,” see the instructions for Schedule C, line G, and the instructions for Schedule F, line E. Student tax   To make this election, you must divide all items of income, gain, loss, deduction, and credit attributable to the business between you and your spouse in accordance with your respective interests in the venture. Student tax Each of you must file a separate Schedule F and a separate Schedule SE. Student tax For more information, see Qualified Joint Venture in the Instructions for Schedule SE (Form 1040). Student tax Spouse employee. Student tax   If your spouse is your employee, not your partner, you must withhold and pay social security and Medicare taxes for him or her. Student tax For more information about employment taxes, see chapter 13. Student tax Community property. Student tax   If you are a partner and your distributive share of any income or loss from a trade or business carried on by the partnership is community property, treat your share as your self-employment earnings. Student tax Do not treat any of your share as self-employment earnings of your spouse. Student tax Figuring Self-Employment Earnings Farmer. Student tax   If you are self-employed as a farmer, use Schedule F (Form 1040) to figure your self-employment earnings. Student tax Partnership income or loss. Student tax   If you are a member of a partnership that carries on a trade or business, the partnership should report your self-employment earnings in box 14, code A, of your Schedule K-1 (Form 1065). Student tax Box 14 of Schedule K-1 may also provide amounts for gross farming or fishing income (code B) and gross nonfarm income (code C). Student tax Use these amounts if you use the farm or nonfarm optional method to figure net earnings from self-employment (see Methods for Figuring Net Earnings , later). Student tax   If you are a general partner, you may need to reduce these reported earnings by amounts you claim as a section 179 deduction, unreimbursed partnership expenses, or depletion on oil and gas properties. Student tax   If the amount reported is a loss, include only the deductible amount when you figure your total self-employment earnings. Student tax   For more information, see the Partner's Instructions for Schedule K-1 (Form 1065). Student tax   For general information on partnerships, see Publication 541. Student tax More than one business. Student tax   If you have self-employment earnings from more than one trade, business, or profession, you generally must combine the net profit or loss from each to determine your total self-employment earnings. Student tax A loss from one business reduces your profit from another business. Student tax However, do not combine earnings from farm and nonfarm businesses if you are using one of the optional methods (discussed later) to figure net earnings. Student tax Community property. Student tax   If any of the income from a farm or business, other than a partnership, is community property under state law, it is included in the self-employment earnings of the spouse carrying on the trade or business. Student tax Lost income payments. Student tax   Lost income payments received from insurance or other sources for reducing or stopping farming activities are included in self-employment earnings. Student tax These include USDA payments to compensate for lost income resulting from reductions in tobacco quotas and allotments. Student tax Even if you are not farming when you receive the payment, it is included in self-employment earnings if it relates to your farm business (even though it is temporarily inactive). Student tax A connection exists if it is clear the payment would not have been made but for your conduct of your farm business. Student tax Gain or loss. Student tax   A gain or loss from the disposition of property that is neither stock in trade nor held primarily for sale to customers is not included in self-employment earnings. Student tax It does not matter whether the disposition is a sale, exchange, or involuntary conversion. Student tax For example, gains or losses from the disposition of the following types of property are not included in self-employment earnings. Student tax Investment property. Student tax Depreciable property or other fixed assets used in your trade or business. Student tax Livestock held for draft, breeding, sport, or dairy purposes, and not held primarily for sale, regardless of how long the livestock was held, or whether it was raised or purchased. Student tax Unharvested standing crops sold with land held more than 1 year. Student tax Timber, coal, or iron ore held for more than 1 year if an economic interest was retained, such as a right to receive coal royalties. Student tax   A gain or loss from the cutting of timber is not included in self-employment earnings if the cutting is treated as a sale or exchange. Student tax For more information on electing to treat the cutting of timber as a sale or exchange, see Timber in chapter 8. Student tax Wages and salaries. Student tax   Wages and salaries received for services performed as an employee and covered by social security or railroad retirement are not included in self-employment earnings. Student tax   Wages paid in kind to you for agricultural labor, such as commodity wages, are not included in self-employment earnings. Student tax Retired partner. Student tax   Retirement income received by a partner from his or her partnership under a written plan is not included in self-employment earnings if all the following apply. Student tax The retired partner performs no services for the partnership during the year. Student tax The retired partner is owed only the retirement payments. Student tax The retired partner's share (if any) of the partnership capital was fully paid to the retired partner. Student tax The payments to the retired partner are lifelong periodic payments. Student tax Conservation Reserve Program (CRP) payments. Student tax   Under the Conservation Reserve Program (CRP), if you own or operate highly erodible or other specified cropland, you may enter into a longterm contract with the USDA, agreeing to convert to a less intensive use of that cropland. Student tax You must include the annual rental payments and any onetime incentive payment you receive under the program on Schedule F, lines 4a and 4b. Student tax Cost share payments you receive may qualify for the costsharing exclusion. Student tax See Cost-Sharing Exclusion (Improvements), above. Student tax CRP payments are reported to you on Form 1099G. Student tax Individuals who are receiving Social Security retirement or disability benefits may exclude CRP payments when calculating self-employment tax. Student tax See the instructions for Schedule SE (Form 1040). Student tax Self-employed health insurance deduction. Student tax   You cannot deduct the self-employed health insurance deduction you report on Form 1040, line 29, from self-employment earnings on Schedule SE (Form 1040). Student tax Landlord Participation in Farming As a general rule, income and deductions from rentals and from personal property leased with real estate are not included in determining self-employment earnings. Student tax However, income and deductions from farm rentals, including government commodity program payments received by a landowner who rents land, are included if the rental arrangement provides that the landowner will, and does, materially participate in the production or management of production of the farm products on the land. Student tax Crop shares. Student tax   Rent paid in the form of crop shares is included in self-employment earnings for the year you sell, exchange, give away, or use the crop shares if you meet one of the four material participation tests (discussed next) at the time the crop shares are produced. Student tax Feeding such crop shares to livestock is considered using them. Student tax Your gross income for figuring your self-employment earnings includes the fair market value of the crop shares when they are used as feed. Student tax Material participation for landlords. Student tax   You materially participate if you have an arrangement with your tenant for your participation and you meet one or more of the following tests. Student tax You do at least three of the following. Student tax Pay, using cash or credit, at least half the direct costs of producing the crop or livestock. Student tax Furnish at least half the tools, equipment, and livestock used in the production activities. Student tax Advise or consult with your tenant. Student tax Inspect the production activities periodically. Student tax You regularly and frequently make, or take an important part in making, management decisions substantially contributing to or affecting the success of the enterprise. Student tax You work 100 hours or more spread over a period of 5 weeks or more in activities connected with agricultural production. Student tax You do things that, considered in their totality, show you are materially and significantly involved in the production of the farm commodities. Student tax These tests may be used as general guides for determining whether you are a material participant. Student tax Example. Student tax Drew Houston agrees to produce a crop on J. Student tax Clarke's cotton farm, with each receiving half the proceeds. Student tax Clarke advises Houston when to plant, spray, and pick the cotton. Student tax During the growing season, Clarke inspects the crop every few days to determine whether Houston is properly taking care of the crop. Student tax Houston furnishes all labor needed to grow and harvest the crop. Student tax The management decisions made by Clarke in connection with the care of the cotton crop and his regular inspection of the crop establish that he participates to a material degree in the cotton production operations. Student tax The income Clarke receives from his cotton farm is included in his self-employment earnings. Student tax Methods for Figuring Net Earnings There are three ways to figure your net earnings from self-employment. Student tax The regular method. Student tax The farm optional method. Student tax The nonfarm optional method. Student tax You must use the regular method unless you are eligible to use one or both of the optional methods. Student tax See Figure 12-1 , shown later. Student tax Figure 12-1. Student tax Can I Use the Optional Methods? Please click here for the text description of the image. Student tax Figure 12–1. Student tax Can I Use the Optional Methods? Why use an optional method?   You may want to use the optional methods (discussed later) when you have a loss or a small net profit and any one of the following applies. Student tax You want to receive credit for social security benefit coverage. Student tax You incurred child or dependent care expenses for which you could claim a credit. Student tax (An optional method may increase your earned income, which could increase your credit. Student tax ) You are entitled to the earned income credit. Student tax (An optional method may increase your earned income, which could increase your credit. Student tax ) You are entitled to the additional child tax credit. Student tax (An optional method may increase your earned income, which could increase your credit. Student tax ) Effects of using an optional method. Student tax   Using an optional method could increase your SE tax. Student tax Paying more SE tax may result in you getting higher social security disability or retirement benefits. Student tax   If you use either or both optional methods, you must figure and pay the SE tax due under these methods even if you would have had a smaller SE tax or no SE tax using the regular method. Student tax   The optional methods may be used only to figure your SE tax. Student tax To figure your income tax, include your actual self-employment earnings in gross income, regardless of which method you use to determine SE tax. Student tax Regular Method Multiply your total self-employment earnings by 92. Student tax 35% (. Student tax 9235) to get your net earnings under the regular method. Student tax See Short Schedule SE, line 4, or Long Schedule SE, line 4a. Student tax Net earnings figured using the regular method are also called “actual net earnings. Student tax ” Farm Optional Method Use the farm optional method only for self-employment earnings from a farming business. Student tax You can use this method if you meet either of the following tests. Student tax Your gross farm income is $6,960 or less. Student tax Your net farm profits are less than $5,024. Student tax Gross farm income. Student tax   Your gross farm income is the total of the amounts from: Schedule F (Form 1040), line 9, and Schedule K-1 (Form 1065), box 14, code B (from farm partnerships). Student tax Net farm profits. Student tax   Net farm profits generally are the total of the amounts from: Schedule F (Form 1040), line 34, and Schedule K-1 (Form 1065), box 14, code A (from farm partnerships). Student tax However, you may need to adjust the amount reported on Schedule K-1 if you are a general partner or if it is a loss. Student tax For more information, see Partnership income or loss , earlier. Student tax Figuring farm net earnings. Student tax   If you meet either of the two tests explained above, use Table 12-1. Student tax Figuring Farm Net Earnings , to figure your net earnings from self-employment under the farm optional method. Student tax Table 12-1. Student tax Figuring Farm Net Earnings IF your gross farm income  is. Student tax . Student tax . Student tax THEN your net earnings are equal to. Student tax . Student tax . Student tax $6,960 or less Two-thirds of your gross farm income. Student tax More than $6,960 $4,640 Optional method can reduce or eliminate SE tax. Student tax   If your gross farm income is $6,960 or less and your farm net earnings figured under the farm optional method are less than your actual net earnings, you can use the farm optional method to reduce or eliminate your SE tax. Student tax Your actual net earnings are your net earnings figured using the regular method, explained earlier. Student tax Example. Student tax Your gross farm income is $540 and your net farm profit is $460. Student tax Consequently, your net earnings figured under the farm optional method are $360 (2/3 of $540) and your actual net earnings are $425 (92. Student tax 35% of $460). Student tax You owe no SE tax if you use the optional method because your net earnings under the farm optional method are less than $400. Student tax Nonfarm Optional Method This is an optional method available for determining net earnings from nonfarm self-employment, much like the farm optional method. Student tax If you are also engaged in a nonfarm business, you may be able to use this method to figure your nonfarm net earnings. Student tax You can use this method even if you do not use the farm optional method for determining your farm net earnings and even if you have a net loss from your nonfarm business. Student tax For more information about the nonfarm optional method, see Publication 334. Student tax You cannot combine farm and nonfarm self-employment earnings to figure your net earnings under either of the optional methods. Student tax Using Both Optional Methods If you use both optional methods, you must add the net earnings figured under each method to arrive at your total net earnings from self-employment. Student tax You can report less than your total actual farm and nonfarm net earnings but not less than actual nonfarm net earnings. Student tax If you use both optional methods, you can report no more than $4,640 as your combined net earnings from self-employment. Student tax Reporting Self-Employment Tax Use Schedule SE (Form 1040) to figure and report your SE tax. Student tax Then, enter the SE tax on line 56 of Form 1040 and attach Schedule SE to Form 1040. Student tax Most taxpayers can use Section A–Short Schedule SE to figure their SE tax. Student tax However, certain taxpayers must use Section B–Long Schedule SE. Student tax Use the chart on page 1 of Schedule SE to find out which one to use. Student tax If you have to pay SE tax, you must file Form 1040 (with Schedule SE attached) even if you do not otherwise have to file a federal income tax return. Student tax Deduction for employer-equivalent portion of self-employment tax. Student tax   You can deduct the employer-equivalent portion of your SE tax in figuring your adjusted gross income. Student tax This deduction only affects your income tax. Student tax It does not affect either your net earnings from self-employment or your SE tax. Student tax   To deduct the tax, enter on Form 1040, line 27, the amount shown on Section A, Line 6, or Section B, line 13, Deduction for employer-equivalent portion of self-employment tax, of the Schedule SE. Student tax Joint return. Student tax   Even if you file a joint return, you cannot file a joint Schedule SE. Student tax This is true whether one spouse or both spouses have self-employment earnings. Student tax Your spouse is not considered self-employed just because you are. Student tax If both of you have self-employment earnings, each of you must complete a separate Schedule SE. Student tax However, if one spouse uses the Short Schedule SE and the other spouse has to use the Long Schedule SE, both can use the same form. Student tax Attach both schedules to the joint return. Student tax If you and your spouse operate a business as a partnership, see Business Owned and Operated by Spouses and Qualified joint venture , earlier, under Who Must Pay Self-Employment Tax . Student tax Prev  Up  Next   Home   More Online Publications