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Taxact 2011 Free

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Taxact 2011 Free

Taxact 2011 free 1. Taxact 2011 free   Filing Information Table of Contents Topics - This chapter discusses: Useful Items - You may want to see: Filing RequirementsWhen To File and Pay Foreign Currency Does My Return Have To Be On Paper? Where To File Nonresident Alien Spouse Treated as a ResidentSocial Security Number (SSN) How To Make the Choice Suspending the Choice Ending the Choice Estimated Tax Other Forms You May Have To File Topics - This chapter discusses: Whether you have to file a return, When to file your return and pay any tax due, How to treat foreign currency, How to file electronically, Where to file your return, When you can treat your nonresident alien spouse as a resident, and When you may have to make estimated tax payments. Taxact 2011 free Useful Items - You may want to see: Publication 3 Armed Forces' Tax Guide 501 Exemptions, Standard Deduction, and Filing Information 505 Tax Withholding and Estimated Tax 519 U. Taxact 2011 free S. Taxact 2011 free Tax Guide for Aliens 970 Tax Benefits for Education Form (and Instructions) 1040-ES Estimated Tax for Individuals 1040X Amended U. Taxact 2011 free S. Taxact 2011 free Individual Income Tax Return 2350 Application for Extension of Time To File U. Taxact 2011 free S. Taxact 2011 free Income Tax Return 2555 Foreign Earned Income 2555-EZ Foreign Earned Income Exclusion 4868 Application for Automatic Extension of Time To File U. Taxact 2011 free S. Taxact 2011 free Individual Income Tax Return 8822 Change of Address See chapter 7 for information about getting these publications and forms. Taxact 2011 free Filing Requirements If you are a U. Taxact 2011 free S. Taxact 2011 free citizen or resident alien, the rules for filing income, estate, and gift tax returns and for paying estimated tax are generally the same whether you are in the United States or abroad. Taxact 2011 free Your income, filing status, and age generally determine whether you must file an income tax return. Taxact 2011 free Generally, you must file a return for 2013 if your gross income from worldwide sources is at least the amount shown for your filing status in the following table. Taxact 2011 free Filing Status*   Amount Single $10,000 65 or older $11,500 Head of household $12,850 65 or older $14,350 Qualifying widow(er) $16,100 65 or older $17,300 Married filing jointly $20,000 Not living with spouse at end of year $3,900 One spouse 65 or older $21,200 Both spouses 65 or older $22,400 Married filing separately $3,900 *If you are the dependent of another taxpayer, see the instructions for Form 1040 for more information on whether you must file a return. Taxact 2011 free Gross income. Taxact 2011 free   This includes all income you receive in the form of money, goods, property, and services that is not exempt from tax. Taxact 2011 free   For purposes of determining whether you must file a return, gross income includes any income that you can exclude as foreign earned income or as a foreign housing amount. Taxact 2011 free If you are self-employed, your gross income includes the amount on Part I, line 7 of Schedule C (Form 1040), Profit or Loss From Business, or line 1 of Schedule C-EZ (Form 1040), Net Profit From Business. Taxact 2011 free Self-employed individuals. Taxact 2011 free   If your net earnings from self-employment are $400 or more, you must file a return even if your gross income is below the amount listed for your filing status in the table shown earlier. Taxact 2011 free Net earnings from self-employment are defined in Publication 334, Tax Guide for Small Business. Taxact 2011 free 65 or older. Taxact 2011 free   You are considered to be age 65 on the day before your 65th birthday. Taxact 2011 free For example, if your 65th birthday is on January 1, 2014, you are considered 65 for 2013. Taxact 2011 free Residents of U. Taxact 2011 free S. Taxact 2011 free possessions. Taxact 2011 free   If you are (or were) a bona fide resident of a U. Taxact 2011 free S. Taxact 2011 free possession, you may be required to file Form 8898, Statement for Individuals Who Begin or End Bona Fide Residence in a U. Taxact 2011 free S. Taxact 2011 free Possession. Taxact 2011 free See the instructions for the form for more information. Taxact 2011 free When To File and Pay If you file on a calendar year basis, the due date for filing your return is April 15 of the following year. Taxact 2011 free If you file on a fiscal year basis (a year ending on the last day of any month except December), the due date is 3 months and 15 days after the close of your fiscal year. Taxact 2011 free In general, the tax shown on your return should be paid by the due date of the return, without regard to any extension of time for filing the return. Taxact 2011 free When the due date for doing any act for tax purposes—filing a return, paying taxes, etc. Taxact 2011 free — falls on a Saturday, Sunday, or legal holiday, the due date is delayed until the next business day. Taxact 2011 free A tax return delivered by the U. Taxact 2011 free S. Taxact 2011 free mail or a designated delivery service that is postmarked or dated by the delivery service on or before the due date is considered to have been filed on or before that date. Taxact 2011 free See your Form 1040 or Form 1040A instructions for a list of designated delivery services. Taxact 2011 free Foreign wire transfers. Taxact 2011 free   If you have a U. Taxact 2011 free S. Taxact 2011 free bank account, you can use: EFTPS (Electronic Federal Tax Payment System), or Federal Tax Application (same-day wire transfer). Taxact 2011 free If you do not have a U. Taxact 2011 free S. Taxact 2011 free bank account, ask if your financial institution has a U. Taxact 2011 free S. Taxact 2011 free affiliate that can help you make same-day wire transfers. Taxact 2011 free   For more information, visit www. Taxact 2011 free eftps. Taxact 2011 free gov. Taxact 2011 free Extensions You can get an extension of time to file your return. Taxact 2011 free In some circumstances, you also can get an extension of time to file and pay any tax due. Taxact 2011 free However, if you pay the tax due after the regular due date, interest will be charged from the regular due date until the date the tax is paid. Taxact 2011 free This publication discusses four extensions: an automatic 2-month extension, an automatic 6-month extension, an additional extension for taxpayers out of the country, and an extension of time to meet tests. Taxact 2011 free If you served in a combat zone or qualified hazardous duty area, see Publication 3 for a discussion of extensions of deadlines. Taxact 2011 free Automatic 2-month extension. Taxact 2011 free   You are allowed an automatic 2-month extension to file your return and pay federal income tax if you are a U. Taxact 2011 free S. Taxact 2011 free citizen or resident alien, and on the regular due date of your return: You are living outside the United States and Puerto Rico and your main place of business or post of duty is outside the United States and Puerto Rico, or You are in military or naval service on duty outside the United States and Puerto Rico. Taxact 2011 free   If you use a calendar year, the regular due date of your return is April 15. Taxact 2011 free Even if you are allowed an extension, you will have to pay interest on any tax not paid by the regular due date of your return. Taxact 2011 free Married taxpayers. Taxact 2011 free   If you file a joint return, either you or your spouse can qualify for the automatic extension. Taxact 2011 free If you and your spouse file separate returns, this automatic extension applies only to the spouse who qualifies for it. Taxact 2011 free How to get the extension. Taxact 2011 free   To use this automatic 2-month extension, you must attach a statement to your return explaining which of the two situations listed earlier qualified you for the extension. Taxact 2011 free Automatic 6-month extension. Taxact 2011 free   If you are not able to file your return by the due date, you generally can get an automatic 6-month extension of time to file (but not of time to pay). Taxact 2011 free To get this automatic extension, you must file a paper Form 4868 or use IRS e-file (electronic filing). Taxact 2011 free For more information about filing electronically, see E-file options , later. Taxact 2011 free   The form must show your properly estimated tax liability based on the information available to you. Taxact 2011 free    You may not be eligible. Taxact 2011 free You cannot use the automatic 6-month extension of time to file if: You want the IRS to figure your tax, or You are under a court order to file by the regular due date. Taxact 2011 free E-file options. Taxact 2011 free    You can use e-file to get an extension of time to file. Taxact 2011 free You can either file Form 4868 electronically or you can pay part or all of your estimate of tax due using a credit or debit card. Taxact 2011 free   First, complete Form 4868 to use as a worksheet. Taxact 2011 free If you think you may owe tax when you file your return, use Part II of the form to estimate your balance due. Taxact 2011 free    Then, do one of the following. Taxact 2011 free E-file Form 4868. Taxact 2011 free You can use a tax software package with your personal computer or a tax professional to file Form 4868 electronically. Taxact 2011 free You will need to provide certain information from your tax return for 2012. Taxact 2011 free If you wish to make a payment by electronic funds withdrawal, see the instructions for Form 4868. Taxact 2011 free If you e-file Form 4868, do not also send a paper Form 4868. Taxact 2011 free E-file and pay by credit or debit card. Taxact 2011 free You can get an extension by paying part or all of your estimate of tax due by using a credit or debit card. Taxact 2011 free You can do this by phone or over the Internet. Taxact 2011 free If you do this, you do not file Form 4868. Taxact 2011 free For more information, see the instructions for your tax return. Taxact 2011 free When to file. Taxact 2011 free   Generally, you must request the 6-month extension by the regular due date of your return. Taxact 2011 free Previous 2-month extension. Taxact 2011 free   If you cannot file your return within the automatic 2-month extension period, you generally can get an additional 4 months to file your return, for a total of 6 months. Taxact 2011 free The 2-month period and the 6-month period start at the same time. Taxact 2011 free You have to request the additional 4 months by the new due date allowed by the 2-month extension. Taxact 2011 free   The additional 4 months of time to file (unlike the original 2-month extension) is not an extension of time to pay. Taxact 2011 free You must make an accurate estimate of your tax based on the information available to you. Taxact 2011 free If you find you cannot pay the full amount due with Form 4868, you can still get the extension. Taxact 2011 free You will owe interest on the unpaid amount from the original due date of the return. Taxact 2011 free   You also may be charged a penalty for paying the tax late unless you have reasonable cause for not paying your tax when due. Taxact 2011 free Penalties for paying the tax late are assessed from the original due date of your return, unless you qualify for the automatic 2-month extension. Taxact 2011 free In that situation, penalties for paying late are assessed from the extended due date of the payment (June 15 for calendar year taxpayers). Taxact 2011 free Additional extension of time for taxpayers out of the country. Taxact 2011 free   In addition to the 6-month extension, taxpayers who are out of the country can request a discretionary 2-month additional extension of time to file their returns (to December 15 for calendar year taxpayers). Taxact 2011 free   To request this extension, you must send the Internal Revenue Service a letter explaining the reasons why you need the additional 2 months. Taxact 2011 free Send the letter by the extended due date (October 15 for calendar year taxpayers) to the following address: Department of the Treasury Internal Revenue Service Center Austin, TX 73301-0045   You will not receive any notification from the Internal Revenue Service unless your request is denied. Taxact 2011 free   The discretionary 2-month additional extension is not available to taxpayers who have an approved extension of time to file on Form 2350, discussed next. Taxact 2011 free Extension of time to meet tests. Taxact 2011 free   You generally cannot get an extension of more than 6 months. Taxact 2011 free However, if you are outside the United States and meet certain requirements, you may be able to get a longer extension. Taxact 2011 free   You can get an extension of more than 6 months to file your tax return if you need the time to meet either the bona fide residence test or the physical presence test to qualify for either the foreign earned income exclusion or the foreign housing exclusion or deduction. Taxact 2011 free The tests, the exclusions, and the deduction are explained in chapter 4. Taxact 2011 free   You should request an extension if all three of the following apply. Taxact 2011 free You are a U. Taxact 2011 free S. Taxact 2011 free citizen or resident alien. Taxact 2011 free You expect to meet either the bona fide residence test or the physical presence test, but not until after your tax return is due. Taxact 2011 free Your tax home is in a foreign country (or countries) throughout your period of bona fide residence or physical presence, whichever applies. Taxact 2011 free   If you are granted an extension, it generally will be to 30 days beyond the date on which you can reasonably expect to qualify for an exclusion or deduction under either the bona fide residence test or the physical presence test. Taxact 2011 free However, if you have moving expenses that are for services performed in 2 years, you may be granted an extension until after the end of the second year. Taxact 2011 free How to get an extension. Taxact 2011 free   To obtain an extension, file Form 2350 either by giving it to a local IRS representative or other IRS employee or by mailing it to the: Department of the Treasury Internal Revenue Service Center Austin, TX 73301-0045   You must file Form 2350 by the due date for filing your return. Taxact 2011 free Generally, if both your tax home and your abode are outside the United States and Puerto Rico on the regular due date of your return and you file on a calendar year basis, the due date for filing your return is June 15. Taxact 2011 free What if tests are not met. Taxact 2011 free   If you obtain an extension and unforeseen events make it impossible for you to meet either the bona fide residence test or the physical presence test, you should file your income tax return as soon as possible because you must pay interest on any tax due after the regular due date of the return (even though an extension was granted). Taxact 2011 free    You should make any request for an extension early, so that if it is denied you still can file your return on time. Taxact 2011 free Otherwise, if you file late and additional tax is due, you may be subject to a penalty. Taxact 2011 free Return filed before test is met. Taxact 2011 free   If you file a return before you meet the bona fide residence test or the physical presence test, you must include all income from both U. Taxact 2011 free S. Taxact 2011 free and foreign sources and pay the tax on that income. Taxact 2011 free If you later meet either of the tests, you can claim the foreign earned income exclusion, the foreign housing exclusion, or the foreign housing deduction on Form 1040X. Taxact 2011 free Foreign Currency You must express the amounts you report on your U. Taxact 2011 free S. Taxact 2011 free tax return in U. Taxact 2011 free S. Taxact 2011 free dollars. Taxact 2011 free If you receive all or part of your income or pay some or all of your expenses in foreign currency, you must translate the foreign currency into U. Taxact 2011 free S. Taxact 2011 free dollars. Taxact 2011 free How you do this depends on your functional currency. Taxact 2011 free Your functional currency generally is the U. Taxact 2011 free S. Taxact 2011 free dollar unless you are required to use the currency of a foreign country. Taxact 2011 free You must make all federal income tax determinations in your functional currency. Taxact 2011 free The U. Taxact 2011 free S. Taxact 2011 free dollar is the functional currency for all taxpayers except some qualified business units (QBUs). Taxact 2011 free A QBU is a separate and clearly identified unit of a trade or business that maintains separate books and records. Taxact 2011 free Even if you have a QBU, your functional currency is the dollar if any of the following apply. Taxact 2011 free You conduct the business in U. Taxact 2011 free S. Taxact 2011 free dollars. Taxact 2011 free The principal place of business is located in the United States. Taxact 2011 free You choose to or are required to use the U. Taxact 2011 free S. Taxact 2011 free dollar as your functional currency. Taxact 2011 free The business books and records are not kept in the currency of the economic environment in which a significant part of the business activities is conducted. Taxact 2011 free Make all income tax determinations in your functional currency. Taxact 2011 free If your functional currency is the U. Taxact 2011 free S. Taxact 2011 free dollar, you must immediately translate into U. Taxact 2011 free S. Taxact 2011 free dollars all items of income, expense, etc. Taxact 2011 free (including taxes), that you receive, pay, or accrue in a foreign currency and that will affect computation of your income tax. Taxact 2011 free Use the exchange rate prevailing when you receive, pay, or accrue the item. Taxact 2011 free If there is more than one exchange rate, use the one that most properly reflects your income. Taxact 2011 free You can generally get exchange rates from banks and U. Taxact 2011 free S. Taxact 2011 free Embassies. Taxact 2011 free If your functional currency is not the U. Taxact 2011 free S. Taxact 2011 free dollar, make all income tax determinations in your functional currency. Taxact 2011 free At the end of the year, translate the results, such as income or loss, into U. Taxact 2011 free S. Taxact 2011 free dollars to report on your income tax return. Taxact 2011 free Blocked Income You generally must report your foreign income in terms of U. Taxact 2011 free S. Taxact 2011 free dollars and, with one exception (see Fulbright Grant, later), you must pay taxes due on it in U. Taxact 2011 free S. Taxact 2011 free dollars. Taxact 2011 free If, because of restrictions in a foreign country, your income is not readily convertible into U. Taxact 2011 free S. Taxact 2011 free dollars or into other money or property that is readily convertible into U. Taxact 2011 free S. Taxact 2011 free dollars, your income is “blocked” or “deferrable” income. Taxact 2011 free You can report this income in one of two ways: Report the income and pay your federal income tax with U. Taxact 2011 free S. Taxact 2011 free dollars that you have in the United States or in some other country, or Postpone the reporting of the income until it becomes unblocked. Taxact 2011 free If you choose to postpone the reporting of the income, you must file an information return with your tax return. Taxact 2011 free For this information return, you should use another Form 1040 labeled “Report of Deferrable Foreign Income, pursuant to Rev. Taxact 2011 free Rul. Taxact 2011 free 74-351. Taxact 2011 free ” You must declare on the information return that you will include the deferrable income in your taxable income for the year that it becomes unblocked. Taxact 2011 free You also must state that you waive any right to claim that the deferrable income was includible in your income for any earlier year. Taxact 2011 free You must report your income on your information return using the foreign currency in which you received that income. Taxact 2011 free If you have blocked income from more than one foreign country, include a separate information return for each country. Taxact 2011 free Income becomes unblocked and reportable for tax purposes when it becomes convertible, or when it is converted, into U. Taxact 2011 free S. Taxact 2011 free dollars or into other money or property that is convertible into U. Taxact 2011 free S. Taxact 2011 free currency. Taxact 2011 free Also, if you use blocked income for your personal expenses or dispose of it by gift, bequest, or devise, you must treat it as unblocked and reportable. Taxact 2011 free If you have received blocked income on which you have not paid tax, you should check to see whether that income is still blocked. Taxact 2011 free If it is not, you should take immediate steps to pay tax on it, file a declaration or amended declaration of estimated tax, and include the income on your tax return for the year in which the income became unblocked. Taxact 2011 free If you choose to postpone reporting blocked income and in a later tax year you wish to begin including it in gross income although it is still blocked, you must obtain the permission of the IRS to do so. Taxact 2011 free To apply for permission, file Form 3115, Application for Change in Accounting Method. Taxact 2011 free You also must request permission from the IRS on Form 3115 if you have not chosen to defer the reporting of blocked income in the past, but now wish to begin reporting blocked income under the deferred method. Taxact 2011 free See the instructions for Form 3115 for information on changing your accounting method. Taxact 2011 free Fulbright Grant All income must be reported in U. Taxact 2011 free S. Taxact 2011 free dollars. Taxact 2011 free In most cases, the tax also must be paid in U. Taxact 2011 free S. Taxact 2011 free dollars. Taxact 2011 free If, however, at least 70% of your Fulbright grant has been paid in nonconvertible foreign currency (blocked income), you can use the currency of the host country to pay the part of the U. Taxact 2011 free S. Taxact 2011 free tax that is based on the blocked income. Taxact 2011 free Paying U. Taxact 2011 free S. Taxact 2011 free tax in foreign currency. Taxact 2011 free   To qualify for this method of payment, you must prepare a statement that shows the following information. Taxact 2011 free You were a Fulbright grantee and were paid in nonconvertible foreign currency. Taxact 2011 free The total grant you received during the year and the amount you received in nonconvertible foreign currency. Taxact 2011 free At least 70% of the grant was paid in nonconvertible foreign currency. Taxact 2011 free The statement must be certified by the U. Taxact 2011 free S. Taxact 2011 free educational foundation or commission paying the grant or other person having control of grant payments to you. Taxact 2011 free   You should prepare at least two copies of this statement. Taxact 2011 free Attach one copy to your Form 1040 and keep the other copy for identification purposes when you make a tax deposit of nonconvertible foreign currency. Taxact 2011 free Figuring actual tax. Taxact 2011 free   When you prepare your income tax return, you may owe tax or the entire liability may have been satisfied with your estimated tax payments. Taxact 2011 free If you owe tax, figure the part due to (and payable in) the nonconvertible foreign currency by using the following formula. Taxact 2011 free   Adjusted gross income that is blocked income × Total U. Taxact 2011 free S. Taxact 2011 free tax = Tax on blocked income     Total adjusted  gross income     You must attach all of the following to the return. Taxact 2011 free A copy of the certified statement discussed earlier. Taxact 2011 free A detailed statement showing the allocation of tax attributable to amounts received in foreign currency and the rates of exchange used in determining your tax liability in U. Taxact 2011 free S. Taxact 2011 free dollars. Taxact 2011 free The original deposit receipt for any balance of tax due that you paid in nonconvertible foreign currency. Taxact 2011 free Figuring estimated tax on nonconvertible foreign currency. Taxact 2011 free   If you are liable for estimated tax (discussed later), figure the amount you can pay to the IRS in nonconvertible foreign currency using the following formula. Taxact 2011 free   Adjusted gross income that is blocked income × Total estimated U. Taxact 2011 free S. Taxact 2011 free tax = Estimated tax on blocked income     Total adjusted  gross income     If you must pay your host country income tax on your grant, subtract any estimated foreign tax credit that applies to your grant from the estimated tax on the blocked income. Taxact 2011 free Deposit of foreign currency with disbursing officer. Taxact 2011 free   Once you have determined the amount of the actual tax or estimated tax that you can pay in nonconvertible foreign currency, deposit that amount with the disbursing officer of the Department of State in the foreign country in which the foundation or commission paying the grant is located. Taxact 2011 free Estimated tax installments. Taxact 2011 free   You can either deposit the full estimated tax amount before the first installment due date or make four equal payments before the installment due dates. Taxact 2011 free See Estimated Tax , later. Taxact 2011 free Deposit receipt. Taxact 2011 free   Upon accepting the foreign currency, the disbursing officer will give you a receipt in duplicate. Taxact 2011 free The original of this receipt (showing the amount of foreign currency deposited and its equivalent in U. Taxact 2011 free S. Taxact 2011 free dollars) should be attached to your Form 1040 or payment voucher from Form 1040-ES. Taxact 2011 free Keep the copy for your records. Taxact 2011 free Does My Return Have To Be On Paper? IRS e-file (electronic filing) is the fastest, easiest, and most convenient way to file your income tax return electronically. Taxact 2011 free IRS e-file offers accurate, safe, and fast alternatives to filing on paper. Taxact 2011 free IRS computers quickly and automatically check for errors or other missing information. Taxact 2011 free Even returns with a foreign address can be e-filed! How to e-file. Taxact 2011 free   There are three ways you can e-file. Taxact 2011 free Use your personal computer. Taxact 2011 free Use a volunteer. Taxact 2011 free Many programs offering free tax help can e-file your return. Taxact 2011 free Use a tax professional. Taxact 2011 free Most tax professionals can e-file your return. Taxact 2011 free These methods are explained in detail in the instructions for your tax return. Taxact 2011 free Where To File If any of the following situations apply to you, do not file your return with the service center listed for your home state. Taxact 2011 free You claim the foreign earned income exclusion. Taxact 2011 free You claim the foreign housing exclusion or deduction. Taxact 2011 free You live in a foreign country. Taxact 2011 free Instead, use one of the following special addresses. Taxact 2011 free If you are not enclosing a check or money order, file your return with the: Department of the Treasury Internal Revenue Service Center Austin, TX 73301-0215 USA If you are enclosing a check or money order, file your return with: Internal Revenue Service Center P. Taxact 2011 free O. Taxact 2011 free Box 1303 Charlotte, NC 28201-1303 USA If you do not know where your legal residence is and you do not have a principal place of business in the United States, you can file with the appropriate address listed above. Taxact 2011 free However, you should not file with the addresses listed above if you are a bona fide resident of the U. Taxact 2011 free S. Taxact 2011 free Virgin Islands, Guam, or the Commonwealth of the Northern Mariana Islands during your entire tax year. Taxact 2011 free Resident of U. Taxact 2011 free S. Taxact 2011 free Virgin Islands (USVI). Taxact 2011 free   If you are a bona fide resident of the USVI during your entire tax year, you generally are not required to file a U. Taxact 2011 free S. Taxact 2011 free return. Taxact 2011 free However, you must file a return with the USVI. Taxact 2011 free    Send your return to the:     Virgin Islands Bureau of Internal Revenue 6115 Estate Smith Bay Suite 225 St. Taxact 2011 free Thomas, Virgin Islands 00802 Non-USVI resident with USVI income. Taxact 2011 free   If you are a U. Taxact 2011 free S. Taxact 2011 free citizen or resident alien and you have income from sources in the USVI or income effectively connected with the conduct of a trade or business in the USVI, and you are not a bona fide resident of the USVI during your entire tax year, you must file identical tax returns with the United States and the USVI. Taxact 2011 free File the original return with the United States and file a signed copy of the U. Taxact 2011 free S. Taxact 2011 free return (including all attachments, forms, and schedules) with the Virgin Islands Bureau of Internal Revenue. Taxact 2011 free   You must complete Form 8689, Allocation of Individual Income Tax to the U. Taxact 2011 free S. Taxact 2011 free Virgin Islands, and attach a copy to both your U. Taxact 2011 free S. Taxact 2011 free return and your USVI return. Taxact 2011 free You should file your U. Taxact 2011 free S. Taxact 2011 free return with the address listed under Where To File. Taxact 2011 free   See Publication 570, Tax Guide for Individuals With Income From U. Taxact 2011 free S. Taxact 2011 free Possessions, for information about filing Virgin Islands returns. Taxact 2011 free Resident of Guam. Taxact 2011 free   If you are a bona fide resident of Guam during your entire tax year, you should file a return with Guam. Taxact 2011 free    Send your return to the:     Department of Revenue and Taxation Government of Guam P. Taxact 2011 free O. Taxact 2011 free Box 23607 GMF, GU 96921   However, if you have income from sources within Guam and you are a U. Taxact 2011 free S. Taxact 2011 free citizen or resident alien, but not a bona fide resident of Guam during the entire tax year, you should file a return with the United States. Taxact 2011 free Send your return to the address listed under Where To File. Taxact 2011 free   See Publication 570 for information about filing Guam returns. Taxact 2011 free Resident of the Commonwealth of the Northern Mariana Islands. Taxact 2011 free   If you are a bona fide resident of the Commonwealth of the Northern Mariana Islands (CNMI) during your entire tax year, you should file a return with the Northern Mariana Islands. Taxact 2011 free    Send your return to the:      Division of Revenue and Taxation Commonwealth of the Northern Mariana Islands P. Taxact 2011 free O. Taxact 2011 free Box 5234, CHRB Saipan, MP 96950   However, if you have income from sources within the CNMI and you are a U. Taxact 2011 free S. Taxact 2011 free citizen or resident alien, but not a bona fide resident of the CNMI during the entire tax year, you should file a return with the United States. Taxact 2011 free Send your return to the address listed under Where To File. Taxact 2011 free   See Publication 570 for information about filing Northern Mariana Islands returns. Taxact 2011 free Nonresident Alien Spouse Treated as a Resident If, at the end of your tax year, you are married and one spouse is a U. Taxact 2011 free S. Taxact 2011 free citizen or a resident alien and the other is a nonresident alien, you can choose to treat the nonresident as a U. Taxact 2011 free S. Taxact 2011 free resident. Taxact 2011 free This includes situations in which one of you is a nonresident alien at the beginning of the tax year and a resident alien at the end of the year and the other is a nonresident alien at the end of the year. Taxact 2011 free If you make this choice, the following two rules apply. Taxact 2011 free You and your spouse are treated, for income tax purposes, as residents for all tax years that the choice is in effect. Taxact 2011 free You must file a joint income tax return for the year you make the choice. Taxact 2011 free This means that neither of you can claim under any tax treaty not to be a U. Taxact 2011 free S. Taxact 2011 free resident for a tax year for which the choice is in effect. Taxact 2011 free You can file joint or separate returns in years after the year in which you make the choice. Taxact 2011 free Example 1. Taxact 2011 free Pat Smith, a U. Taxact 2011 free S. Taxact 2011 free citizen, is married to Norman, a nonresident alien. Taxact 2011 free Pat and Norman make the choice to treat Norman as a resident alien by attaching a statement to their joint return. Taxact 2011 free Pat and Norman must report their worldwide income for the year they make the choice and for all later years unless the choice is ended or suspended. Taxact 2011 free Although Pat and Norman must file a joint return for the year they make the choice, they can file either joint or separate returns for later years. Taxact 2011 free Example 2. Taxact 2011 free When Bob and Sharon Williams got married, both were nonresident aliens. Taxact 2011 free In June of last year, Bob became a resident alien and remained a resident for the rest of the year. Taxact 2011 free Bob and Sharon both choose to be treated as resident aliens by attaching a statement to their joint return for last year. Taxact 2011 free Bob and Sharon must report their worldwide income for last year and all later years unless the choice is ended or suspended. Taxact 2011 free Bob and Sharon must file a joint return for last year, but they can file either joint or separate returns for later years. Taxact 2011 free If you do not choose to treat your nonresident alien spouse as a U. Taxact 2011 free S. Taxact 2011 free resident, you may be able to use head of household filing status. Taxact 2011 free To use this status, you must pay more than half the cost of maintaining a household for certain dependents or relatives other than your nonresident alien spouse. Taxact 2011 free For more information, see Publication 501. Taxact 2011 free Social Security Number (SSN) If you choose to treat your nonresident alien spouse as a U. Taxact 2011 free S. Taxact 2011 free resident, your spouse must have either an SSN or an individual taxpayer identification number (ITIN). Taxact 2011 free To get an SSN for a nonresident alien spouse, apply at an office of the U. Taxact 2011 free S. Taxact 2011 free Social Security Administration (SSA) or U. Taxact 2011 free S. Taxact 2011 free consulate. Taxact 2011 free You must complete Form SS-5, Application for a Social Security Card, available at www. Taxact 2011 free socialsecurity. Taxact 2011 free gov or by calling 1-800-772-1213. Taxact 2011 free You must also provide original or certified copies of documents to verify that spouse's age, identity, and citizenship. Taxact 2011 free If the nonresident alien spouse is not eligible to get an SSN, he or she can file Form W-7, Application for IRS Individual Taxpayer Identification Number, with the IRS to apply for an ITIN. Taxact 2011 free How To Make the Choice Attach a statement, signed by both spouses, to your joint return for the first tax year for which the choice applies. Taxact 2011 free It should contain the following: A declaration that one spouse was a nonresident alien and the other spouse a U. Taxact 2011 free S. Taxact 2011 free citizen or resident alien on the last day of your tax year and that you choose to be treated as U. Taxact 2011 free S. Taxact 2011 free residents for the entire tax year, and The name, address, and social security number (or individual taxpayer identification number) of each spouse. Taxact 2011 free (If one spouse died, include the name and address of the person making the choice for the deceased spouse. Taxact 2011 free ) You generally make this choice when you file your joint return. Taxact 2011 free However, you also can make the choice by filing a joint amended return on Form 1040X. Taxact 2011 free Attach Form 1040, 1040A, or 1040EZ and print “Amended” across the top of the amended return. Taxact 2011 free If you make the choice with an amended return, you and your spouse also must amend any returns that you may have filed after the year for which you made the choice. Taxact 2011 free You generally must file the amended joint return within 3 years from the date you filed your original U. Taxact 2011 free S. Taxact 2011 free income tax return or 2 years from the date you paid your income tax for that year, whichever is later. Taxact 2011 free Table 1–1. Taxact 2011 free Ending the Choice To Treat Nonresident Alien Spouse as a Resident Revocation   Either spouse can revoke the choice for any tax year. Taxact 2011 free   • The revocation must be made by the due date for filing the tax return for that tax year. Taxact 2011 free   • The spouse who revokes the choice must attach a signed statement declaring that the choice is being revoked. Taxact 2011 free The statement revoking the choice must include the following:     • The name, address, and social security number (or taxpayer identification number) of each spouse. Taxact 2011 free     • The name and address of any person who is revoking the choice for a deceased spouse. Taxact 2011 free     • A list of any states, foreign countries, and possessions that have community property laws in which either spouse is domiciled or where real property is located from which either spouse receives income. Taxact 2011 free   • If the spouse revoking the choice does not have to file a return and does not file a claim for refund, send the statement to the Internal Revenue Service Center where the last joint return was filed. Taxact 2011 free Death   The death of either spouse ends the choice, beginning with the first tax year following the year in which the spouse died. Taxact 2011 free   • If the surviving spouse is a U. Taxact 2011 free S. Taxact 2011 free citizen or resident alien and is entitled to the joint tax rates as a surviving spouse, the choice will not end until the close of the last year for which these joint rates may be used. Taxact 2011 free   • If both spouses die in the same tax year, the choice ends on the first day after the close of the tax year in which the spouses died. Taxact 2011 free Divorce or  Legal separation   A divorce or legal separation ends the choice as of the beginning of the tax year in which the legal separation occurs. Taxact 2011 free Inadequate records   The Internal Revenue Service can end the choice for any tax year that either spouse has failed to keep adequate books, records, and other information necessary to determine the correct income tax liability, or to provide adequate access to those records. Taxact 2011 free Suspending the Choice The choice to be treated as a resident alien does not apply to any later tax year if neither of you is a U. Taxact 2011 free S. Taxact 2011 free citizen or resident alien at any time during the later tax year. Taxact 2011 free Example. Taxact 2011 free Dick Brown was a resident alien on December 31, 2010, and married to Judy, a nonresident alien. Taxact 2011 free They chose to treat Judy as a resident alien and filed a joint 2010 income tax return. Taxact 2011 free On January 10, 2012, Dick became a nonresident alien. Taxact 2011 free Judy had remained a nonresident alien. Taxact 2011 free Because Dick was a resident alien during part of 2012, Dick and Judy can file joint or separate returns for that year. Taxact 2011 free Neither Dick nor Judy was a resident alien at any time during 2013 and their choice is suspended for that year. Taxact 2011 free For 2013, both are treated as nonresident aliens. Taxact 2011 free If Dick becomes a resident alien again in 2014, their choice is no longer suspended and both are treated as resident aliens. Taxact 2011 free Ending the Choice Once made, the choice to be treated as a resident applies to all later years unless suspended (as explained earlier) or ended in one of the ways shown in Table 1-1. Taxact 2011 free If the choice is ended for any of the reasons listed in Table 1-1, neither spouse can make a choice in any later tax year. Taxact 2011 free Estimated Tax The requirements for determining who must pay estimated tax are the same for a U. Taxact 2011 free S. Taxact 2011 free citizen or resident abroad as for a taxpayer in the United States. Taxact 2011 free For current instructions on making estimated tax payments, see Form 1040-ES. Taxact 2011 free If you had a tax liability for 2013, you may have to pay estimated tax for 2014. Taxact 2011 free Generally, you must make estimated tax payments for 2014 if you expect to owe at least $1,000 in tax for 2014 after subtracting your withholding and credits and you expect your withholding and credits to be less than the smaller of: 90% of the tax to be shown on your 2014 tax return, or 100% of the tax shown on your 2013 tax return. Taxact 2011 free (The return must cover all 12 months. Taxact 2011 free ) If less than two-thirds of your gross income for 2013 and 2014 is from farming or fishing and your adjusted gross income for 2013 is more than $150,000 ($75,000 if you are married and file separately), substitute 110% for 100% in (2). Taxact 2011 free See Publication 505 for more information. Taxact 2011 free The first installment of estimated tax is due on April 15, 2014. Taxact 2011 free Foreign earned income exclusion. Taxact 2011 free   When figuring your estimated gross income, subtract amounts you expect to exclude under the foreign earned income exclusion and the foreign housing exclusion. Taxact 2011 free In addition, you can reduce your income by your estimated foreign housing deduction. Taxact 2011 free However, you must estimate tax on your nonexcluded income using the tax rates that will apply had you not excluded the income. Taxact 2011 free If the actual amount of the exclusion or deduction is less than you estimate, you may have to pay a penalty for underpayment of estimated tax. Taxact 2011 free   For more information about figuring your estimated tax, see Publication 505. Taxact 2011 free Other Forms You May Have To File FinCEN Form 114 (replaces Form TD F 90-22. Taxact 2011 free 1). Taxact 2011 free   Beginning October 1, 2013, Form 114, Report of Foreign Bank and Financial Accounts (FBAR), must be filed instead of Form TD F 90-22. Taxact 2011 free 1. Taxact 2011 free Form 114 is filed electronically with the Financial Crimes Enforcement Network (FinCEN). Taxact 2011 free See the filing instructions at www. Taxact 2011 free bsaefiling. Taxact 2011 free fincen. Taxact 2011 free treas. Taxact 2011 free gov/main. Taxact 2011 free html. Taxact 2011 free   You must file Form 114 if you had any financial interest in, or signature or other authority over a bank, securities, or other financial account in a foreign country. Taxact 2011 free You do not need to file the report if the assets are with a U. Taxact 2011 free S. Taxact 2011 free military banking facility operated by a financial institution or if the combined assets in the account(s) are $10,000 or less during the entire year. Taxact 2011 free   More information about the filing of Form 114 can be found in the instructions for the form. Taxact 2011 free FinCEN Form 105. Taxact 2011 free   You must file Form 105, Report of International Transportation of Currency or Monetary Instruments, if you physically transport, mail, ship, or cause to be physically transported, mailed, or shipped into or out of the United States, currency or other monetary instruments totaling more than $10,000 at one time. Taxact 2011 free Certain recipients of currency or monetary instruments also must file Form 105. Taxact 2011 free   More information about the filing of Form 105 can be found in the instructions on the back of the form. Taxact 2011 free Form 8938. Taxact 2011 free   You must file Form 8938 to report the ownership of specified foreign financial assets if the total value of those assets exceeds an applicable threshold amount (the “reporting threshold ”). Taxact 2011 free The reporting threshold varies depending on whether you live in the United States, are married, or file a joint income tax return with your spouse. Taxact 2011 free Specified foreign financial assets include any financial account maintained by a foreign financial institution and, to the extent held for investment, any stock, securities, or any other interest in a foreign entity and any financial instrument or contract with an issuer or counterparty that is not a U. Taxact 2011 free S. Taxact 2011 free person. Taxact 2011 free   You may have to pay penalties if you are required to file Form 8938 and fail to do so, or if you have an understatement of tax due to any transaction involving an undisclosed foreign financial asset. Taxact 2011 free   More information about the filing of Form 8938 can be found in the separate instructions for Form 8938. Taxact 2011 free Prev  Up  Next   Home   More Online Publications
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Individual Shared Responsibility Provision - Minimum Essential Coverage

 

The individual shared responsibility provision requires you and each member of your family to have basic health insurance coverage (also known as minimum essential coverage), qualify for an exemption from the responsibility to have minimum essential coverage, or make an individual shared responsibility payment when you file your federal income tax return. The chart shows some types of coverage that qualify as minimum essential coverage and some that do not.

The chart shows some types of coverage that qualify as minimum essential coverage and some that do not.

Coverage Type Qualifies As Minimum Essential Coverage Doesn't Qualify As Minimum Essential Coverage

Employer-sponsored coverage:

  • Employee coverage (including self-insured plans)
  • COBRA coverage
  • Retiree coverage
     

 

 

 

 

Individual health coverage:

  • Health insurance you purchase from an insurance company directly
  • Health insurance you purchase through the Health Insurance Marketplace
  • Health insurance provided through a student health plan
  • Health coverage provided through a student health plan that is self-funded by a university (only for a plan year beginning on or before December 31, 2014, unless recognized as minimum essential coverage by HHS)

 

 

 

 

 

Coverage under government-sponsored programs:

  • Medicare Part A coverage
  • Medicare Advantage plans
  • Most Medicaid coverage
  • Children’s Health Insurance Program (CHIP)
  • Most types of TRICARE coverage under chapter 55, title 10 of the United States Code
  • Comprehensive health care programs offered by the Department of Veterans Affairs
  • State high-risk health insurance pools (only for a plan year beginning on or before December 31, 2014, unless recognized as minimum essential coverage by HHS)
  • Health coverage provided to Peace Corps volunteers
  • Department of Defense Nonappropriated Fund Health Benefits Program
  • Refugee Medical Assistance

 

 

 

 

 

 

Certain coverage that may provide limited benefits:

  • Coverage consisting solely of excepted benefits, such as:
    • Stand-alone dental and vision insurance
    • Accident or disability income insurance
    • Workers' compensation insurance
  • Medicaid providing only family planning services*
  • Medicaid providing only tuberculosis-related services*
  • Medicaid providing only coverage limited to treatment of emergency medical conditions*
  • Pregnancy-related Medicaid coverage*
  • Medicaid coverage for the medically needy*
  • Section 1115 Medicaid demonstration projects*
  • Space available TRICARE coverage provided under chapter 55 of title 10 of the United States Code for individuals who are not eligible for TRICARE coverage for health services from private sector providers*
  • Line of duty TRICARE coverage provided under chapter 55 of title 10 of the United States Code*
  • AmeriCorps coverage for those serving in programs receiving AmeriCorps State and National grants
  • AfterCorps coverage purchased by returning members of the PeaceCorps

*In Notice 2014-10, the IRS announced relief from the individual shared responsibility payment for months in 2014 in which individuals are covered under one of these programs. Information will be made available later about how to claim an exemption for one of these programs on your income tax return.

 

 

 

 

 

 

Page Last Reviewed or Updated: 24-Mar-2014

The Taxact 2011 Free

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