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Tax Planning Us 2007 Taxes

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Tax Planning Us 2007 Taxes

Tax planning us 2007 taxes 6. Tax planning us 2007 taxes   Tip Income Table of Contents Introduction Useful Items - You may want to see: Keeping a Daily Tip RecordElectronic tip record. Tax planning us 2007 taxes Reporting Tips to Your EmployerElectronic tip statement. Tax planning us 2007 taxes Final report. Tax planning us 2007 taxes Reporting Tips on Your Tax Return Allocated Tips Introduction This chapter is for employees who receive tips. Tax planning us 2007 taxes All tips you receive are income and are subject to federal income tax. Tax planning us 2007 taxes You must include in gross income all tips you receive directly, charged tips paid to you by your employer, and your share of any tips you receive under a tip-splitting or tip-pooling arrangement. Tax planning us 2007 taxes The value of noncash tips, such as tickets, passes, or other items of value, is also income and subject to tax. Tax planning us 2007 taxes Reporting your tip income correctly is not difficult. Tax planning us 2007 taxes You must do three things. Tax planning us 2007 taxes Keep a daily tip record. Tax planning us 2007 taxes Report tips to your employer. Tax planning us 2007 taxes Report all your tips on your income tax return. Tax planning us 2007 taxes  This chapter will explain these three things and show you what to do on your tax return if you have not done the first two. Tax planning us 2007 taxes This chapter will also show you how to treat allocated tips. Tax planning us 2007 taxes For information on special tip programs and agreements, see Publication 531. Tax planning us 2007 taxes Useful Items - You may want to see: Publication 531 Reporting Tip Income 1244 Employee's Daily Record of Tips and Report to Employer Form (and Instructions) 4137 Social Security and Medicare Tax on Unreported Tip Income 4070 Employee's Report of Tips to Employer Keeping a Daily Tip Record Why keep a daily tip record. Tax planning us 2007 taxes   You must keep a daily tip record so you can: Report your tips accurately to your employer, Report your tips accurately on your tax return, and Prove your tip income if your return is ever questioned. Tax planning us 2007 taxes How to keep a daily tip record. Tax planning us 2007 taxes   There are two ways to keep a daily tip record. Tax planning us 2007 taxes You can either: Write information about your tips in a tip diary, or Keep copies of documents that show your tips, such as restaurant bills and credit or debit card charge slips. Tax planning us 2007 taxes You should keep your daily tip record with your tax or other personal records. Tax planning us 2007 taxes You must keep your records for as long as they are important for administration of the federal tax law. Tax planning us 2007 taxes For information on how long to keep records, see How long to keep records in chapter 1. Tax planning us 2007 taxes    If you keep a tip diary, you can use Form 4070A, Employee's Daily Record of Tips. Tax planning us 2007 taxes To get Form 4070A, ask the Internal Revenue Service (IRS) or your employer for Publication 1244. Tax planning us 2007 taxes Also, Publication 1244 is available online at www. Tax planning us 2007 taxes irs. Tax planning us 2007 taxes gov/pub/irs-pdf/p1244. Tax planning us 2007 taxes pdf. Tax planning us 2007 taxes Publication 1244 includes a 1-year supply of Form 4070A. Tax planning us 2007 taxes Each day, write in the information asked for on the form. Tax planning us 2007 taxes   In addition to the information asked for on Form 4070A, you also need to keep a record of the date and value of any noncash tips you get, such as tickets, passes, or other items of value. Tax planning us 2007 taxes Although you do not report these tips to your employer, you must report them on your tax return. Tax planning us 2007 taxes   If you do not use Form 4070A, start your records by writing your name, your employer's name, and the name of the business (if it is different from your employer's name). Tax planning us 2007 taxes Then, each workday, write the date and the following information. Tax planning us 2007 taxes Cash tips you get directly from customers or from other employees. Tax planning us 2007 taxes Tips from credit and debit card charge customers that your employer pays you. Tax planning us 2007 taxes The value of any noncash tips you get, such as tickets, passes, or other items of value. Tax planning us 2007 taxes The amount of tips you paid out to other employees through tip pools or tip splitting, or other arrangements, and the names of the employees to whom you paid the tips. Tax planning us 2007 taxes Electronic tip record. Tax planning us 2007 taxes   You can use an electronic system provided by your employer to record your daily tips. Tax planning us 2007 taxes If you do, you must receive and keep a paper copy of this record. Tax planning us 2007 taxes Service charges. Tax planning us 2007 taxes    Do not write in your tip diary the amount of any service charge that your employer adds to a customer's bill and then pays to you and treats as wages. Tax planning us 2007 taxes This is part of your wages, not a tip. Tax planning us 2007 taxes See examples below. Tax planning us 2007 taxes Example 1. Tax planning us 2007 taxes Good Food Restaurant adds an 18% charge to the bill for parties of 6 or more customers. Tax planning us 2007 taxes Jane’s bill for food and beverages for her party of 8 includes an amount on the tip line equal to 18% of the charges for food and beverages, and the total includes this amount. Tax planning us 2007 taxes Because Jane did not have an unrestricted right to determine the amount on the “tip line,” the 18% charge is considered a service charge. Tax planning us 2007 taxes Do not include the 18% charge in your tip diary. Tax planning us 2007 taxes Service charges that are paid to you are considered wages, not tips. Tax planning us 2007 taxes Example 2. Tax planning us 2007 taxes Good Food Restaurant also includes sample calculations of tip amounts at the bottom of its bills for food and beverages provided to customers. Tax planning us 2007 taxes David’s bill includes a blank “tip line,” with sample tip calculations of 15%, 18%, and 20% of his charges for food and beverages at the bottom of the bill beneath the signature line. Tax planning us 2007 taxes Because David is free to enter any amount on the “tip line” or leave it blank, any amount he includes is considered a tip. Tax planning us 2007 taxes Be sure to include this amount in your tip diary. Tax planning us 2007 taxes Reporting Tips to Your Employer Why report tips to your employer. Tax planning us 2007 taxes   You must report tips to your employer so that: Your employer can withhold federal income tax and social security, Medicare, Additional Medicare, or railroad retirement taxes, Your employer can report the correct amount of your earnings to the Social Security Administration or Railroad Retirement Board (which affects your benefits when you retire or if you become disabled, or your family's benefits if you die), and You can avoid the penalty for not reporting tips to your employer (explained later). Tax planning us 2007 taxes What tips to report. Tax planning us 2007 taxes   Report to your employer only cash, check, and debit and credit card tips you receive. Tax planning us 2007 taxes   If your total tips for any 1 month from any one job are less than $20, do not report the tips for that month to that employer. Tax planning us 2007 taxes   If you participate in a tip-splitting or tip-pooling arrangement, report only the tips you receive and retain. Tax planning us 2007 taxes Do not report to your employer any portion of the tips you receive that you pass on to other employees. Tax planning us 2007 taxes However, you must report tips you receive from other employees. Tax planning us 2007 taxes    Do not report the value of any noncash tips, such as tickets or passes, to your employer. Tax planning us 2007 taxes You do not pay social security, Medicare, Additional Medicare or railroad retirement taxes on these tips. Tax planning us 2007 taxes How to report. Tax planning us 2007 taxes    If your employer does not give you any other way to report tips, you can use Form 4070. Tax planning us 2007 taxes Fill in the information asked for on the form, sign and date the form, and give it to your employer. Tax planning us 2007 taxes To get a 1-year supply of the form, ask the IRS or your employer for Publication 1244. Tax planning us 2007 taxes   If you do not use Form 4070, give your employer a statement with the following information. Tax planning us 2007 taxes Your name, address, and social security number. Tax planning us 2007 taxes Your employer's name, address, and business name (if it is different from your employer's name). Tax planning us 2007 taxes The month (or the dates of any shorter period) in which you received tips. Tax planning us 2007 taxes The total tips required to be reported for that period. Tax planning us 2007 taxes You must sign and date the statement. Tax planning us 2007 taxes Be sure to keep a copy with your tax or other personal records. Tax planning us 2007 taxes   Your employer may require you to report your tips more than once a month. Tax planning us 2007 taxes However, the statement cannot cover a period of more than 1 calendar month. Tax planning us 2007 taxes Electronic tip statement. Tax planning us 2007 taxes   Your employer can have you furnish your tip statements electronically. Tax planning us 2007 taxes When to report. Tax planning us 2007 taxes   Give your report for each month to your employer by the 10th of the next month. Tax planning us 2007 taxes If the 10th falls on a Saturday, Sunday, or legal holiday, give your employer the report by the next day that is not a Saturday, Sunday, or legal holiday. Tax planning us 2007 taxes Example. Tax planning us 2007 taxes You must report your tips received in September 2014 by October 10, 2014. Tax planning us 2007 taxes Final report. Tax planning us 2007 taxes   If your employment ends during the month, you can report your tips when your employment ends. Tax planning us 2007 taxes Penalty for not reporting tips. Tax planning us 2007 taxes   If you do not report tips to your employer as required, you may be subject to a penalty equal to 50% of the social security, Medicare, and Additional Medicare taxes or railroad retirement tax you owe on the unreported tips. Tax planning us 2007 taxes (For information about these taxes, see Reporting social security, Medicare, Additional Medicare, or railroad retirement taxes on tips not reported to your employer under Reporting Tips on Your Tax Return, later. Tax planning us 2007 taxes ) The penalty amount is in addition to the taxes you owe. Tax planning us 2007 taxes   You can avoid this penalty if you can show reasonable cause for not reporting the tips to your employer. Tax planning us 2007 taxes To do so, attach a statement to your return explaining why you did not report them. Tax planning us 2007 taxes Giving your employer money for taxes. Tax planning us 2007 taxes   Your regular pay may not be enough for your employer to withhold all the taxes you owe on your regular pay plus your reported tips. Tax planning us 2007 taxes If this happens, you can give your employer money until the close of the calendar year to pay the rest of the taxes. Tax planning us 2007 taxes   If you do not give your employer enough money, your employer will apply your regular pay and any money you give in the following order. Tax planning us 2007 taxes All taxes on your regular pay. Tax planning us 2007 taxes Social security, Medicare, and Additional Medicare taxes or railroad retirement taxes on your reported tips. Tax planning us 2007 taxes Federal, state, and local income taxes on your reported tips. Tax planning us 2007 taxes    Any taxes that remain unpaid can be collected by your employer from your next paycheck. Tax planning us 2007 taxes If withholding taxes remain uncollected at the end of the year, you may be subject to a penalty for underpayment of estimated taxes. Tax planning us 2007 taxes See Publication 505, Tax Withholding and Estimated Tax, for more information. Tax planning us 2007 taxes    Uncollected taxes. Tax planning us 2007 taxes You must report on your tax return any social security and Medicare taxes or railroad retirement tax that remained uncollected at the end of 2013. Tax planning us 2007 taxes These uncollected taxes will be shown on your 2013 Form W-2. Tax planning us 2007 taxes See Reporting uncollected social security, Medicare, or railroad retirement taxes on tips reported to your employer under Reporting Tips on Your Tax Return, later. Tax planning us 2007 taxes Reporting Tips on Your Tax Return How to report tips. Tax planning us 2007 taxes    Report your tips with your wages on Form 1040, line 7; Form 1040A, line 7; or Form 1040EZ, line 1. Tax planning us 2007 taxes What tips to report. Tax planning us 2007 taxes   You must report all tips you received in 2013 on your tax return, including both cash tips and noncash tips. Tax planning us 2007 taxes Any tips you reported to your employer for 2013 are included in the wages shown in box 1 of your Form W-2. Tax planning us 2007 taxes Add to the amount in box 1 only the tips you did not report to your employer. Tax planning us 2007 taxes    If you received $20 or more in cash and charge tips in a month and did not report all of those tips to your employer, see Reporting social security, Medicare, Additional Medicare, or railroad retirement taxes on tips not reported to your employer, later. Tax planning us 2007 taxes    If you did not keep a daily tip record as required and an amount is shown in box 8 of your Form W-2, see Allocated Tips, later. Tax planning us 2007 taxes   If you kept a daily tip record and reported tips to your employer as required under the rules explained earlier, add the following tips to the amount in box 1 of your Form W-2. Tax planning us 2007 taxes Cash and charge tips you received that totaled less than $20 for any month. Tax planning us 2007 taxes The value of noncash tips, such as tickets, passes, or other items of value. Tax planning us 2007 taxes Example. Tax planning us 2007 taxes Ben Smith began working at the Blue Ocean Restaurant (his only employer in 2013) on June 30 and received $10,000 in wages during the year. Tax planning us 2007 taxes Ben kept a daily tip record showing that his tips for June were $18 and his tips for the rest of the year totaled $7,000. Tax planning us 2007 taxes He was not required to report his June tips to his employer, but he reported all of the rest of his tips to his employer as required. Tax planning us 2007 taxes Ben's Form W-2 from Blue Ocean Restaurant shows $17,000 ($10,000 wages plus $7,000 reported tips) in box 1. Tax planning us 2007 taxes He adds the $18 unreported tips to that amount and reports $17,018 as wages on his tax return. Tax planning us 2007 taxes Reporting social security, Medicare, Additional Medicare, or railroad retirement taxes on tips not reported to your employer. Tax planning us 2007 taxes    If you received $20 or more in cash and charge tips in a month from any one job and did not report all of those tips to your employer, you must report the social security, Medicare, and Additional Medicare taxes on the unreported tips as additional tax on your return. Tax planning us 2007 taxes To report these taxes, you must file a return even if you would not otherwise have to file. Tax planning us 2007 taxes You must use Form 1040. Tax planning us 2007 taxes (You cannot file Form 1040EZ or Form 1040A. Tax planning us 2007 taxes )    Use Form 4137 to figure social security and Medicare taxes. Tax planning us 2007 taxes Enter the tax on your return as instructed, and attach the completed Form 4137 to your return. Tax planning us 2007 taxes Use Form 8959 to figure Additional Medicare Tax. Tax planning us 2007 taxes    If you are subject to the Railroad Retirement Tax Act, you cannot use Form 4137 to pay railroad retirement tax on unreported tips. Tax planning us 2007 taxes To get railroad retirement credit, you must report tips to your employer. Tax planning us 2007 taxes Reporting uncollected social security, Medicare, or railroad retirement taxes on tips reported to your employer. Tax planning us 2007 taxes   You may have uncollected taxes if your regular pay was not enough for your employer to withhold all the taxes you owe and you did not give your employer enough money to pay the rest of the taxes. Tax planning us 2007 taxes For more information, see Giving your employer money for taxes , under Reporting Tips to Your Employer, earlier. Tax planning us 2007 taxes   If your employer could not collect all the social security and Medicare taxes or railroad retirement tax you owe on tips reported for 2013, the uncollected taxes will be shown in box 12 of your Form W-2 (codes A and B). Tax planning us 2007 taxes You must report these amounts as additional tax on your return. Tax planning us 2007 taxes Unlike the uncollected portion of the regular (1. Tax planning us 2007 taxes 45%) Medicare tax, the uncollected Additional Medicare Tax is not reported in box 12 of Form W-2 with code B. Tax planning us 2007 taxes    To report these uncollected taxes, you must file a return even if you would not otherwise have to file. Tax planning us 2007 taxes You must report these taxes on Form 1040, line 60. Tax planning us 2007 taxes See the instructions for Form 1040, line 60. Tax planning us 2007 taxes (You cannot file Form 1040EZ or Form 1040A. Tax planning us 2007 taxes ) Allocated Tips If your employer allocated tips to you, they are shown separately in box 8 of your Form W-2. Tax planning us 2007 taxes They are not included in box 1 with your wages and reported tips. Tax planning us 2007 taxes If box 8 is blank, this discussion does not apply to you. Tax planning us 2007 taxes What are allocated tips. Tax planning us 2007 taxes   These are tips that your employer assigned to you in addition to the tips you reported to your employer for the year. Tax planning us 2007 taxes Your employer will have done this only if: You worked in an establishment (restaurant, cocktail lounge, or similar business) that must allocate tips to employees, and The tips you reported to your employer were less than your share of 8% of food and drink sales. Tax planning us 2007 taxes No income, social security, Medicare, Additional Medicare or railroad retirement taxes are withheld on allocated tips. Tax planning us 2007 taxes How were your allocated tips figured. Tax planning us 2007 taxes   The tips allocated to you are your share of an amount figured by subtracting the reported tips of all employees from 8% (or an approved lower rate) of food and drink sales (other than carryout sales and sales with a service charge of 10% or more). Tax planning us 2007 taxes Your share of that amount was figured using either a method provided by an employer-employee agreement or a method provided by IRS regulations based on employees' sales or hours worked. Tax planning us 2007 taxes For information about the exact allocation method used, ask your employer. Tax planning us 2007 taxes Must you report your allocated tips on your tax return. Tax planning us 2007 taxes   You must report all tips you received in 2013 on your tax return, including both cash tips and noncash tips. Tax planning us 2007 taxes Any tips you reported to your employer for 2013 are included in the wages shown in box 1 of your Form W-2. Tax planning us 2007 taxes Add to the amount in box 1 only the tips you did not report to your employer. Tax planning us 2007 taxes This should include any allocated tips shown in box 8 on your Form(s) W-2, unless you have adequate records to show that you received less tips in the year than the allocated figures. Tax planning us 2007 taxes   See What tips to report under Reporting Tips on Your Tax Return, and Keeping a Daily Tip Record , earlier. Tax planning us 2007 taxes How to report allocated tips. Tax planning us 2007 taxes   Report the amount in box 1 and the allocated tips in box 8 of your Form(s) W-2 as wages on Form 1040, line 7; Form 1040NR, line 8; or Form 1040NR-EZ, line 3. Tax planning us 2007 taxes (You cannot file Form 1040A or Form 1040EZ when you have allocated tips. Tax planning us 2007 taxes )    Because social security, Medicare, and Additional Medicare taxes were not withheld from the allocated tips, you must report those taxes as additional tax on your return. Tax planning us 2007 taxes Complete Form 4137, and include the allocated tips on line 1 of the form. Tax planning us 2007 taxes See Reporting social security, Medicare, Additional Medicare, or railroad retirement taxes on tips not reported to your employer under Reporting Tips on Your Tax Return, earlier. 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The Tax Planning Us 2007 Taxes

Tax planning us 2007 taxes Publication 584SP - Introductory Material Table of Contents Qué Hay de Nuevo Introduction Qué Hay de Nuevo Acontecimientos futuros. Tax planning us 2007 taxes  El IRS ha diseñado una página en el Internet, www. Tax planning us 2007 taxes irs. Tax planning us 2007 taxes gov/pub584sp, que incluye información sobre la Publicación 584(SP). Tax planning us 2007 taxes Toda información sobre desarrollos futuros que afecten la Publicación 584(SP) (como legislación aprobada después de que la publicación haya sido publicada) será anunciada en esta página. Tax planning us 2007 taxes Introduction Este registro se ha creado para ayudarlo a determinar la cantidad de una pérdida ocasionada por un desastre, hecho fortuito o robo que esté relacionada con propiedad de uso personal. Tax planning us 2007 taxes Contiene anexos para ayudarlo a calcular el valor de la pérdida de su residencia principal, de toda propiedad contenida dentro de la misma y de sus vehículos motorizados. Tax planning us 2007 taxes Sin embargo, estos anexos sólo son para su información. Tax planning us 2007 taxes Tiene que completar el Formulario 4684, Casualties and Thefts (Hechos Fortuitos y Robos), en inglés, para declarar su pérdida. Tax planning us 2007 taxes Prev  Up  Next   Home   More Online Publications