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1040ez Form For 2012

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1040ez Form For 2012

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

1040ez form for 2012 Publication 4492 - Main Contents Table of Contents DefinitionsHurricane Katrina Disaster Area Katrina Covered Disaster Area Gulf Opportunity (GO) Zone (Core Disaster Area) Hurricane Rita Disaster Area (Rita Covered Disaster Area) Rita GO Zone Hurricane Wilma Disaster Area Wilma Covered Disaster Area Wilma GO Zone Extended Tax Deadlines Charitable Giving IncentivesTemporary Suspension of Limits on Charitable Contributions Standard Mileage Rate for Charitable Use of Vehicles Mileage Reimbursements to Charitable Volunteers Charitable Deduction for Contributions of Food Inventory Charitable Deduction for Contributions of Book Inventories to Public Schools Casualty and Theft LossesTime limit for making election. 1040ez form for 2012 Replacement Period for Nonrecognition of Gain Net Operating Losses IRAs and Other Retirement PlansDefinitions Taxation of Qualified Hurricane Distributions Repayment of Qualified Hurricane Distributions Repayment of Qualified Distributions for the Purchase or Construction of a Main Home Loans From Qualified Plans Additional Tax Relief for IndividualsEarned Income Credit and Child Tax Credit Additional Exemption for Housing Individuals Displaced by Hurricane Katrina Education Credits Recapture of Federal Mortgage Subsidy Exclusion of Certain Cancellations of Indebtedness by Reason of Hurricane Katrina Tax Relief for Temporary Relocation Additional Tax Relief for BusinessesSpecial Depreciation Allowance Increased Section 179 Deduction Work Opportunity Credit Employee Retention Credit Hurricane Katrina Housing Credit Reforestation Costs Demolition and Clean-up Costs Increase in Rehabilitation Tax Credit Request for Copy or Transcript of Tax Return How To Get Tax Help Definitions The following definitions are used throughout this publication. 1040ez form for 2012 Hurricane Katrina Disaster Area The Hurricane Katrina disaster area covers the area for which the President declared a major disaster before September 14, 2005, because of Hurricane Katrina. 1040ez form for 2012 The Hurricane Katrina disaster area covers the entire states of Alabama, Florida, Louisiana, and Mississippi. 1040ez form for 2012 Katrina Covered Disaster Area A portion of the Hurricane Katrina disaster area has been designated by the IRS as a covered disaster area. 1040ez form for 2012 The Katrina covered disaster area covers the following areas in four states. 1040ez form for 2012 Alabama. 1040ez form for 2012   The counties of Baldwin, Bibb, Choctaw, Clarke, Colbert, Cullman, Greene, Hale, Jefferson, Lamar, Lauderdale, Marengo, Marion, Mobile, Monroe, Perry, Pickens, Sumter, Tuscaloosa, Washington, Wilcox, and Winston. 1040ez form for 2012 Florida. 1040ez form for 2012   The counties of Bay, Broward, Collier, Escambia, Franklin, Gulf, Miami-Dade, Monroe, Okaloosa, Santa Rosa, and Walton. 1040ez form for 2012 Louisiana. 1040ez form for 2012   All parishes. 1040ez form for 2012 Mississippi. 1040ez form for 2012   All counties. 1040ez form for 2012 Gulf Opportunity (GO) Zone (Core Disaster Area) The GO Zone (also called the core disaster area) covers the portion of the Hurricane Katrina disaster area determined by the Federal Emergency Management Agency (FEMA) to be eligible for either individual only or both individual and public assistance from the Federal Government. 1040ez form for 2012 The GO Zone covers the following areas in three states. 1040ez form for 2012 Alabama. 1040ez form for 2012   The counties of Baldwin, Choctaw, Clarke, Greene, Hale, Marengo, Mobile, Pickens, Sumter, Tuscaloosa, and Washington. 1040ez form for 2012 Louisiana. 1040ez form for 2012   The parishes of Acadia, Ascension, Assumption, Calcasieu, Cameron, East Baton Rouge, East Feliciana, Iberia, Iberville, Jefferson, Jefferson Davis, Lafayette, Lafourche, Livingston, Orleans, Plaquemines, Pointe Coupee, St. 1040ez form for 2012 Bernard, St. 1040ez form for 2012 Charles, St. 1040ez form for 2012 Helena, St. 1040ez form for 2012 James, St. 1040ez form for 2012 John the Baptist, St. 1040ez form for 2012 Martin, St. 1040ez form for 2012 Mary, St. 1040ez form for 2012 Tammany, Tangipahoa, Terrebonne, Vermilion, Washington, West Baton Rouge, and West Feliciana. 1040ez form for 2012 Mississippi. 1040ez form for 2012   The counties of Adams, Amite, Attala, Choctaw, Claiborne, Clarke, Copiah, Covington, Forrest, Franklin, George, Greene, Hancock, Harrison, Hinds, Holmes, Humphreys, Jackson, Jasper, Jefferson, Jefferson Davis, Jones, Kemper, Lamar, Lauderdale, Lawrence, Leake, Lincoln, Lowndes, Madison, Marion, Neshoba, Newton, Noxubee, Oktibbeha, Pearl River, Perry, Pike, Rankin, Scott, Simpson, Smith, Stone, Walthall, Warren, Wayne, Wilkinson, Winston, and Yazoo. 1040ez form for 2012 Hurricane Rita Disaster Area (Rita Covered Disaster Area) The Hurricane Rita disaster area (also designated by the IRS as the Rita covered disaster area) covers the area for which the President declared a major disaster before October 6, 2005, because of Hurricane Rita. 1040ez form for 2012 This area covers the entire states of Louisiana and Texas. 1040ez form for 2012 Rita GO Zone The Rita GO Zone covers the portion of the Hurricane Rita disaster area determined by FEMA to be eligible for either individual only or both individual and public assistance from the Federal Government. 1040ez form for 2012 The Rita GO Zone covers the following areas in two states. 1040ez form for 2012 Louisiana. 1040ez form for 2012   The parishes of Acadia, Allen, Ascension, Beauregard, Calcasieu, Cameron, Evangeline, Iberia, Jefferson, Jefferson Davis, Lafayette, Lafourche, Livingston, Plaquemines, Sabine, St. 1040ez form for 2012 Landry, St. 1040ez form for 2012 Martin, St. 1040ez form for 2012 Mary, St. 1040ez form for 2012 Tammany, Terrebonne, Vermilion, Vernon, and West Baton Rouge. 1040ez form for 2012 Texas. 1040ez form for 2012   The counties of Angelina, Brazoria, Chambers, Fort Bend, Galveston, Hardin, Harris, Jasper, Jefferson, Liberty, Montgomery, Nacogdoches, Newton, Orange, Polk, Sabine, San Augustine, San Jacinto, Shelby, Trinity, Tyler, and Walker. 1040ez form for 2012 Hurricane Wilma Disaster Area The Hurricane Wilma disaster area covers the area for which the President declared a major disaster before November 14, 2005, because of Hurricane Wilma. 1040ez form for 2012 The Hurricane Wilma disaster area covers the entire state of Florida. 1040ez form for 2012 Wilma Covered Disaster Area A portion of the Hurricane Wilma disaster area has been designated by the IRS as a covered disaster area. 1040ez form for 2012 The Wilma covered disaster area covers the following counties. 1040ez form for 2012 Florida. 1040ez form for 2012   Brevard, Broward, Charlotte, Collier, DeSoto, Glades, Hardee, Hendry, Highlands, Indian River, Lee, Martin, Miami-Dade, Monroe, Okeechobee, Osceola, Palm Beach, Polk, St. 1040ez form for 2012 Lucie, and Sarasota. 1040ez form for 2012 Wilma GO Zone The Wilma GO Zone covers the portion of the Hurricane Wilma disaster area determined by FEMA to be eligible for either individual only or both individual and public assistance from the Federal Government. 1040ez form for 2012 The Wilma GO Zone covers the following counties. 1040ez form for 2012 Florida. 1040ez form for 2012   Brevard, Broward, Collier, Glades, Hendry, Indian River, Lee, Martin, Miami-Dade, Monroe, Okeechobee, Palm Beach, and St. 1040ez form for 2012 Lucie. 1040ez form for 2012 Extended Tax Deadlines The IRS has extended deadlines that apply to filing returns, paying taxes, and performing certain other time-sensitive acts for certain taxpayers affected by Hurricane Katrina, Rita, or Wilma, until February 28, 2006. 1040ez form for 2012 The extension applies to deadlines (either an original or extended due date) that occur during the following periods. 1040ez form for 2012 After August 28, 2005 (August 23, 2005, for Florida affected taxpayers), and before February 28, 2006, for taxpayers affected by Hurricane Katrina. 1040ez form for 2012 After September 22, 2005, and before February 28, 2006, for taxpayers affected by Hurricane Rita. 1040ez form for 2012 After October 22, 2005, and before February 28, 2006, for taxpayers affected by Hurricane Wilma. 1040ez form for 2012 Affected taxpayer. 1040ez form for 2012   The following taxpayers are eligible for the extension. 1040ez form for 2012 Any individual whose main home is located in a covered disaster area. 1040ez form for 2012 Any business entity or sole proprietor whose principal place of business is located in a covered disaster area. 1040ez form for 2012 Any individual, business entity, or sole proprietor whose records needed to meet a postponed deadline are maintained or whose tax professional's office is in a covered disaster area. 1040ez form for 2012 The main home or principal place of business does not have to be located in the covered area. 1040ez form for 2012 Any individual visiting a county or parish in the Hurricane Katrina or Hurricane Rita covered disaster area that was injured or killed (and the estate of an individual killed) as a result of the hurricane or its aftermath. 1040ez form for 2012 Any estate or trust whose tax records needed to meet a filing or payment deadline are maintained in a covered disaster area. 1040ez form for 2012 Generally, any individual who is a worker assisting in the relief activities in a covered disaster area. 1040ez form for 2012 However, a relief worker assisting in the Wilma covered disaster area is not an affected taxpayer unless the worker is affiliated with a recognized government or philanthropic organization assisting in the relief activities. 1040ez form for 2012 The spouse of an affected taxpayer, solely with regard to a joint income tax return with that taxpayer. 1040ez form for 2012   To ensure correct processing, affected taxpayers should write the assigned disaster designation (for example, “Hurricane Katrina”) in red ink at the top of any forms or documents filed with the IRS. 1040ez form for 2012 Affected taxpayers can also identify themselves to the IRS or ask hurricane-related questions by calling the special IRS disaster hotline at 1-866-562-5227. 1040ez form for 2012 Acts extended. 1040ez form for 2012   Deadlines for performing the following acts are extended. 1040ez form for 2012 Filing any return of income, estate, gift, generation-skipping transfer, excise, or employment tax. 1040ez form for 2012 Paying any income, estate, gift, generation-skipping transfer, excise, or employment tax. 1040ez form for 2012 This includes making estimated tax payments. 1040ez form for 2012 Making certain contributions, distributions, recharacterizing contributions, or making a rollover to or from a qualified retirement plan. 1040ez form for 2012 Filing certain petitions with the Tax Court. 1040ez form for 2012 Filing a claim for credit or refund of any tax. 1040ez form for 2012 Bringing suit upon a claim for credit or refund. 1040ez form for 2012 Certain other acts described in Revenue Procedure 2005-27. 1040ez form for 2012 You can find Revenue Procedure 2005-27 on page 1050 of Internal Revenue Bulletin 2005-20 at www. 1040ez form for 2012 irs. 1040ez form for 2012 gov/pub/irs-irbs/irb05-20. 1040ez form for 2012 pdf. 1040ez form for 2012 Forgiveness of interest and penalties. 1040ez form for 2012   The IRS may forgive the interest and penalties on any underpaid income, estate, gift, employment, or excise tax for the length of any extension. 1040ez form for 2012 Charitable Giving Incentives Temporary Suspension of Limits on Charitable Contributions Individuals. 1040ez form for 2012   Qualified contributions are not subject to the overall limit on itemized deductions or the 50% adjusted gross income (AGI) limit. 1040ez form for 2012 A qualified contribution is a charitable contribution paid in cash or by check after August 27, 2005, and before January 1, 2006, to a 50% limit organization (other than certain private foundations described in section 509(a)(3)) if you make an election to have the 50% limit not apply to these contributions. 1040ez form for 2012   Your deduction for qualified contributions is limited to your AGI minus your deduction for all other charitable contributions. 1040ez form for 2012 You can carry over any contributions you are not able to deduct for 2005 because of this limit. 1040ez form for 2012 In 2006, treat the carryover of your unused qualified contributions as a carryover of contributions subject to the 50% limit. 1040ez form for 2012 Exception. 1040ez form for 2012   Qualified contributions do not include a contribution to a segregated fund or account for which you (or any person you appoint or designate) have or expect to have advisory privileges with respect to distributions or investments based on your contribution. 1040ez form for 2012 Corporations. 1040ez form for 2012   A corporation may elect to deduct qualified cash contributions without regard to the 10% taxable income limit if the contributions were made after August 27, 2005, and before January 1, 2006, to a qualified charitable organization (other than certain private foundations described in section 509(a)(3)), for Hurricane Katrina, Rita, or Wilma relief efforts. 1040ez form for 2012 The corporation's deduction for these qualified contributions is limited to 100% of taxable income (as modified for the 10% limit) minus the corporation's deduction for all other charitable contributions. 1040ez form for 2012 Any qualified contributions over this limit can be carried over to the next 5 years, subject to the 10% limit. 1040ez form for 2012 Partners and shareholders. 1040ez form for 2012   Each partner in a partnership and each shareholder in an S corporation makes a separate election to have the appropriate limit not apply. 1040ez form for 2012 More information. 1040ez form for 2012   For more information, see Publication 526 or Publication 542, Corporations. 1040ez form for 2012 Publication 526 includes a worksheet you can use to figure your deduction if any limits apply to your charitable contributions. 1040ez form for 2012 Standard Mileage Rate for Charitable Use of Vehicles The following are special standard mileage rates in effect in 2005 and 2006 for the cost of operating your automobile for providing charitable services solely related to Hurricane Katrina. 1040ez form for 2012 29 cents per mile for the period August 25 through August 31, 2005. 1040ez form for 2012 34 cents per mile for the period September 1 through December 31, 2005. 1040ez form for 2012 32 cents per mile for the period January 1 through December 31, 2006. 1040ez form for 2012 Mileage Reimbursements to Charitable Volunteers You can exclude from income amounts you receive as mileage reimbursements for the use of a private passenger automobile for the benefit of a qualified charitable organization in providing relief related to Hurricane Katrina during the period beginning on August 25, 2005, and ending on December 31, 2006. 1040ez form for 2012 You cannot claim a deduction or credit for amounts you receive as a mileage reimbursement. 1040ez form for 2012 You must keep records of miles driven, time, place (or use), and purpose of the mileage. 1040ez form for 2012 The amount you can exclude from income cannot exceed the standard business mileage rate (shown below) for expenses incurred during the following periods. 1040ez form for 2012 40. 1040ez form for 2012 5 cents per mile for the period August 25 through August 31, 2005. 1040ez form for 2012 48. 1040ez form for 2012 5 cents per mile for the period September 1 through December 31, 2005. 1040ez form for 2012 44. 1040ez form for 2012 5 cents per mile for the period January 1 through December 31, 2006. 1040ez form for 2012 Charitable Deduction for Contributions of Food Inventory Any taxpayer engaged in a trade or business is eligible to claim a deduction for a contribution of “apparently wholesome food” inventory to a qualified charitable organization described in section 501(c)(3) (except for private nonoperating foundations) after August 27, 2005, and before January 1, 2006. 1040ez form for 2012 “Apparently wholesome food” is food that meets all quality and labeling standards imposed by federal, state, and local laws and regulations even though the food may not be readily marketable due to appearance, age, freshness, grade, size, surplus, or other conditions. 1040ez form for 2012 The deduction is equal to the lesser of: The basis of the donated food plus one-half of the gain that would have been realized if the donated food had been sold at fair market value on the date of the donation, or Two times the basis of the donated food. 1040ez form for 2012 The taxpayer must receive written certification from the donee stating: The donated food is related to the purpose or function of the donee's basis for exemption under section 501(c)(3) and is to be used solely for the care of the ill, the needy, or infants; and The food was not given in exchange for money, other property, or services. 1040ez form for 2012 For a taxpayer other than a C corporation, the deduction is limited to 10% of the taxpayer's total net income from all trades or businesses from which the food contributions were made (figured without regard to the deduction for charitable contributions). 1040ez form for 2012 For example, if a taxpayer is a sole proprietor, a shareholder in an S corporation, and a partner in a partnership, and each made a contribution of apparently wholesome food inventory, the taxpayer's deduction is limited to 10% of the taxpayer's total net income from the sole proprietorship, S corporation, and partnership (figured without regard to the deduction for charitable contributions). 1040ez form for 2012 Charitable Deduction for Contributions of Book Inventories to Public Schools A corporation (other than an S corporation) may be allowed a charitable deduction for a qualified book contribution made after August 27, 2005, and before January 1, 2006, to a public school that: Provides elementary or secondary education (kindergarten through grade 12), and Normally maintains a regular faculty and curriculum and has a regular enrolled body of pupils or students in attendance at the place where its educational activities are regularly carried on. 1040ez form for 2012 . 1040ez form for 2012 The deduction is equal to the lesser of: The basis of the donated books plus one-half of the gain that would have been realized if the donated books had been sold at fair market value on the date of the donation, or Two times the basis of the donated books. 1040ez form for 2012 The corporation must receive written certification from the school stating that the donated books are suitable for the organization's educational programs and will be used for such programs. 1040ez form for 2012 Casualty and Theft Losses The following paragraphs explain changes to casualty and theft losses that were caused by Hurricane Katrina, Rita, or Wilma. 1040ez form for 2012 For more information, see Publication 547. 1040ez form for 2012 Limits on personal casualty or theft losses caused by Hurricane Katrina, Rita, or Wilma. 1040ez form for 2012   The following losses to personal use property are not subject to the $100 or 10% of adjusted gross income limits. 1040ez form for 2012 Losses that arose in the Hurricane Katrina disaster area after August 24, 2005, and that were caused by Hurricane Katrina. 1040ez form for 2012 Losses that arose in the Hurricane Rita disaster area after September 22, 2005, and that were caused by Hurricane Rita. 1040ez form for 2012 Losses that arose in the Hurricane Wilma disaster area after October 22, 2005, and that were caused by Hurricane Wilma. 1040ez form for 2012 Qualifying losses include losses from flooding or other casualty, and from theft, that arose in the hurricane disaster area and that were caused by the hurricane. 1040ez form for 2012 Special instructions for individuals who elect to claim a Hurricane Katrina, Rita, or Wilma casualty or theft loss for 2004. 1040ez form for 2012   Casualty and theft losses are generally deductible only in the year the casualty occurred or theft was discovered. 1040ez form for 2012 However, Hurricane Katrina, Rita, and Wilma are Presidentially declared disasters. 1040ez form for 2012 Therefore, you can elect to deduct losses from these hurricanes on your tax return for the previous year. 1040ez form for 2012 If you make this election, use the following additional instructions to complete your forms. 1040ez form for 2012   Individuals filing or amending their 2004 tax return whose only casualty or theft losses to personal use property claimed on that return were caused by Hurricane Katrina, Rita, or Wilma should write “Hurricane Katrina,” “Hurricane Rita,” or “Hurricane Wilma” at the top of Form 1040 or 1040X. 1040ez form for 2012 They must also complete and attach the 2004 Form 4684 and write “Hurricane Katrina,”“Hurricane Rita,” or “Hurricane Wilma” on the dotted line next to line 11 and enter -0- on lines 11 and 17. 1040ez form for 2012   Individuals filing or amending their 2004 tax return who also have casualty or theft losses to personal use property not related to Hurricane Katrina, Rita, or Wilma should disregard the caution directing taxpayers to use only one Form 4684, located above line 13, and complete lines 13 through 18 on two Forms 4684. 1040ez form for 2012 The Form 1040 or 1040X and the first Form 4684 should be prepared as explained above for Hurricane Katrina, Rita, or Wilma losses only. 1040ez form for 2012 The second Form 4684 should be prepared in the normal manner for all gains and non-Hurricane Katrina, Rita or Wilma losses. 1040ez form for 2012 If both Forms 4684 have a loss on line 18, they should carry the combined losses from that line to Schedule A (Form 1040), line 19. 1040ez form for 2012 If there is a gain on line 15 of the second Form 4684, disregard the instruction to enter it on Schedule D (Form 1040), and instead enter on Schedule A (Form 1040), line 19, the excess of the loss from the first Form 4684 over the gain on line 15 of the second Form 4684. 1040ez form for 2012 , Time limit for making election. 1040ez form for 2012   You must make this election to claim your casualty or theft loss in 2004 by the later of the following dates. 1040ez form for 2012 The due date (without extensions) for filing your 2005 income tax return. 1040ez form for 2012 The due date (with extensions) for filing your 2004 income tax return. 1040ez form for 2012 Example. 1040ez form for 2012 If you are a calendar year individual taxpayer, you have until April 17, 2006, to amend your 2004 tax return to claim a casualty or theft loss that occurred during 2005. 1040ez form for 2012 Replacement Period for Nonrecognition of Gain Generally, an involuntary conversion occurs when property is damaged, destroyed, stolen, seized, requisitioned, or condemned, and you receive other property or money in payment, such as insurance or a condemnation award. 1040ez form for 2012 Generally, you do not have to report a gain (if any) if you replace the property within 2 years (4 years for a main home in a Presidentially declared disaster area). 1040ez form for 2012 However, for property that was involuntarily converted after August 24, 2005, as a result of Hurricane Katrina, a 5-year replacement period applies if substantially all of the use of the replacement property is in the Hurricane Katrina disaster area. 1040ez form for 2012 For more information, see the Instructions for Form 4684. 1040ez form for 2012 Net Operating Losses Qualified GO Zone loss. 1040ez form for 2012   Generally, you can carry a net operating loss (NOL) back to the 2 tax years before the NOL year. 1040ez form for 2012 However, the portion of an NOL that is a qualified GO Zone loss can be carried back to the 5 tax years before the NOL year. 1040ez form for 2012 In addition, the 90% limit on the alternative tax NOL deduction (ATNOLD) does not apply to such portion of the ATNOLD. 1040ez form for 2012   A qualified GO Zone loss is the smaller of: The excess of the NOL for the year over the specified liability loss for the year to which a 10-year carryback applies, or The total of the following deductions (to the extent they are taken into account in computing the NOL for the tax year): Qualified GO Zone casualty loss (as defined below), Moving expenses paid or incurred after August 27, 2005, and before January 1, 2008, for the employment of an individual whose main home was in the GO Zone before August 28, 2005, who was unable to remain in that home because of Hurricane Katrina, and whose main job location (after the move) is in the GO Zone, Temporary housing expenses paid or incurred after August 27, 2005, and before January 1, 2008, to house employees of the taxpayer whose main job location is in the GO Zone, Depreciation or amortization allowable for any qualified GO Zone property (even if you elected not to claim the special GO Zone depreciation allowance for such property) for the year placed in service, and Repair expenses (including expenses for the removal of debris) paid or incurred after August 27, 2005, and before January 1, 2008, for any damage from Hurricane Katrina to property located in the GO Zone. 1040ez form for 2012 Qualified GO Zone casualty loss. 1040ez form for 2012   A qualified GO Zone casualty loss is any deductible section 1231 loss of property located in the GO Zone if the loss was caused by Hurricane Katrina. 1040ez form for 2012 For this purpose, the amount of the loss is reduced by any recognized gain from an involuntary conversion caused by Hurricane Katrina of property located in the GO Zone. 1040ez form for 2012 Any such loss taken into account in figuring your qualified GO Zone loss is not eligible for the election to be treated as having occurred in the previous tax year. 1040ez form for 2012 5-year NOL carryback of certain timber losses. 1040ez form for 2012   Generally, you can carry the portion of an NOL due to income and deductions attributable to a farming business back to the 5 tax years before the NOL year. 1040ez form for 2012 You can treat income and deductions attributable to qualified timber property as attributable to a farming business if any portion of the property is located in the GO Zone, Rita GO Zone, or Wilma GO Zone, and the income and deductions are allocable to the part of your tax year which is after the applicable date below. 1040ez form for 2012 August 27, 2005, if any portion of the property is located in the GO Zone. 1040ez form for 2012 September 22, 2005, if any portion of the property is located in the Rita GO Zone (but not in the GO Zone). 1040ez form for 2012 October 22, 2005, if any portion of the property is located in the Wilma GO Zone (but not in the GO Zone or the RITA GO Zone). 1040ez form for 2012   These rules will not apply after 2006. 1040ez form for 2012   However, these rules apply only to a timber producer who: Held qualified timber property (defined in Publication 535, Business Expenses) on the applicable date below: August 28, 2005, if any portion of the property is located in the GO Zone, September 23, 2005, if any portion of the property is located in the Rita GO Zone (but not in the GO Zone), or October 23, 2005, if any portion of the property is located in the Wilma GO Zone (but not in the GO Zone or the Rita GO Zone); Is not a corporation with stock publicly traded on an established securities market; Is not a real estate investment trust; and Did not hold more than 500 acres of qualified timber property on the applicable date above. 1040ez form for 2012 More information. 1040ez form for 2012   For more information on NOLs, see Publication 536 or Publication 542, Corporations. 1040ez form for 2012 IRAs and Other Retirement Plans New rules provide for tax-favored withdrawals, repayments, and loans from certain retirement plans for taxpayers who suffered economic losses as a result of Hurricane Katrina, Rita, or Wilma. 1040ez form for 2012 Definitions Qualified hurricane distribution. 1040ez form for 2012   A qualified hurricane distribution is any distribution you received from an eligible retirement plan if all of the following apply. 1040ez form for 2012 The distribution was made: After August 24, 2005, and before January 1, 2007, for Hurricane Katrina; After September 22, 2005, and before January 1, 2007, for Hurricane Rita; or After October 22, 2005, and before January 1, 2007, for Hurricane Wilma. 1040ez form for 2012 Your main home was located in a hurricane disaster area listed below on the date shown for that area. 1040ez form for 2012 August 28, 2005, for the Hurricane Katrina disaster area. 1040ez form for 2012 September 23, 2005, for the Hurricane Rita disaster area. 1040ez form for 2012 October 23, 2005, for the Hurricane Wilma disaster area. 1040ez form for 2012 You sustained an economic loss because of Hurricane Katrina, Rita, or Wilma and your main home was in that hurricane disaster area on the date shown in (2) above for that hurricane. 1040ez form for 2012 Examples of an economic loss include, but are not limited to: Loss, damage to, or destruction of real or personal property from fire, flooding, looting, vandalism, theft, wind, or other cause; Loss related to displacement from your home; or Loss of livelihood due to temporary or permanent layoffs. 1040ez form for 2012   If (1) through (3) above apply, you can generally designate any distribution (including periodic payments and required minimum distributions) from an eligible retirement plan as a qualified hurricane distribution, regardless of whether the distribution was made on account of Hurricane Katrina, Rita, or Wilma. 1040ez form for 2012 Qualified hurricane distributions are permitted without regard to your need or the actual amount of your economic loss. 1040ez form for 2012   The total of your qualified hurricane distributions from all plans is limited to $100,000. 1040ez form for 2012 If you have distributions in excess of $100,000 from more than one type of plan, such as a 401(k) plan and an IRA, you may allocate the $100,000 limit among the plans any way you choose. 1040ez form for 2012   A reduction or offset (after August 24, 2005, for Katrina; after September 22, 2005, for Rita; or after October 22, 2005, for Wilma) of your account balance in an eligible retirement plan in order to repay a loan can also be designated as a qualified hurricane distribution. 1040ez form for 2012 Eligible retirement plan. 1040ez form for 2012   An eligible retirement plan can be any of the following. 1040ez form for 2012 A qualified pension, profit-sharing, or stock bonus plan (including a 401(k) plan). 1040ez form for 2012 A qualified annuity plan. 1040ez form for 2012 A tax-sheltered annuity contract. 1040ez form for 2012 A governmental section 457 deferred compensation plan. 1040ez form for 2012 A traditional, SEP, SIMPLE, or Roth IRA. 1040ez form for 2012 Main home. 1040ez form for 2012   Generally, your main home is the home where you live most of the time. 1040ez form for 2012 A temporary absence due to special circumstances, such as illness, education, business, military service, evacuation, or vacation, will not change your main home. 1040ez form for 2012 Taxation of Qualified Hurricane Distributions Qualified hurricane distributions are included in income in equal amounts over three years. 1040ez form for 2012 However, if you elect, you can include the entire distribution in your income in the year it was received. 1040ez form for 2012 Qualified hurricane distributions are not subject to the additional 10% tax (or the additional 25% tax for certain distributions from SIMPLE IRAs) on early distributions from qualified retirement plans (including IRAs). 1040ez form for 2012 However, any distributions you receive in excess of the $100,000 qualified hurricane distribution limit may be subject to the additional tax on early distributions. 1040ez form for 2012 For more information, see Form 8915. 1040ez form for 2012 Repayment of Qualified Hurricane Distributions If you choose, you generally can repay any portion of a qualified hurricane distribution that is eligible for tax-free rollover treatment to an eligible retirement plan. 1040ez form for 2012 Also, you can repay a qualified hurricane distribution made on account of a hardship from a retirement plan. 1040ez form for 2012 However, see Exceptions below for qualified hurricane distributions you cannot repay. 1040ez form for 2012 You have three years from the day after the date you received the distribution to make a repayment. 1040ez form for 2012 Amounts that are repaid are treated as a qualified rollover and are not included in income. 1040ez form for 2012 Also, for purposes of the one-rollover-per-year limitation for IRAs, a repayment to an IRA is not considered a qualified rollover. 1040ez form for 2012 See Form 8915 for more information on how to report repayments. 1040ez form for 2012 Exceptions. 1040ez form for 2012   You cannot repay the following types of distributions. 1040ez form for 2012 Qualified hurricane distributions received as a beneficiary (other than a surviving spouse). 1040ez form for 2012 Required minimum distributions. 1040ez form for 2012 Periodic payments (other than from an IRA) that are for: A period of 10 years or more, Your life or life expectancy, or The joint lives or joint life expectancies of you and your beneficiary. 1040ez form for 2012 Repayment of Qualified Distributions for the Purchase or Construction of a Main Home If you received a qualified distribution to purchase or construct a main home in the Hurricane Katrina, Rita, or Wilma disaster area, you can repay that distribution before March 1, 2006, to an eligible retirement plan after August 24, 2005 (Katrina); after September 22, 2005 (Rita); or after October 22, 2005 (Wilma). 1040ez form for 2012 For this purpose, an eligible retirement plan is any plan, annuity, or IRA to which a qualified rollover can be made. 1040ez form for 2012 To be a qualified distribution, the distribution must meet all of the following requirements. 1040ez form for 2012 The distribution is a hardship distribution from a 401(k) plan, a hardship distribution from a tax-sheltered annuity contract, or a qualified first-time homebuyer distribution from an IRA. 1040ez form for 2012 The distribution was received in 2005 after February 28 and before: August 29 for Hurricane Katrina; September 24 for Hurricane Rita; or October 24 for Hurricane Wilma. 1040ez form for 2012 The distribution was to be used to purchase or construct a main home in the Hurricane Katrina, Rita, or Wilma disaster area that was not purchased or constructed because of Hurricane Katrina, Rita, or Wilma. 1040ez form for 2012 Amounts that are repaid before March 1, 2006, are treated as a qualified rollover and are not included in income. 1040ez form for 2012 Also, for purposes of the one-rollover-per-year limitation for IRAs, a repayment to an IRA is not considered a qualified rollover. 1040ez form for 2012 A qualified distribution not repaid before March 1, 2006, may be taxable for 2005 and subject to the additional 10% tax (or the additional 25% tax for certain SIMPLE IRAs) on early distributions. 1040ez form for 2012 You must file Form 8915 if you received a qualified distribution that you repaid, in whole or in part, before March 1, 2006. 1040ez form for 2012 Loans From Qualified Plans The following benefits are available to qualified individuals. 1040ez form for 2012 Increases to the limits for distributions treated as loans from employer plans. 1040ez form for 2012 A 1-year suspension for payments due on plan loans. 1040ez form for 2012 Qualified individual. 1040ez form for 2012   You are a qualified individual if any of the following apply. 1040ez form for 2012 Your main home on August 28, 2005, was located in the Hurricane Katrina disaster area and you had an economic loss because of Hurricane Katrina. 1040ez form for 2012 Your main home on September 23, 2005, was located in the Hurricane Rita disaster area and you had an economic loss because of Hurricane Rita. 1040ez form for 2012 Your main home on October 23, 2005, was located in the Hurricane Wilma disaster area and you had an economic loss because of Hurricane Wilma. 1040ez form for 2012 Examples of an economic loss include, but are not limited to: Loss, damage to, or destruction of real or personal property from fire, flooding, looting, vandalism, theft, wind, or other cause; Loss related to displacement from your home; or Loss of livelihood due to temporary or permanent layoffs. 1040ez form for 2012 Limits on plan loans. 1040ez form for 2012   The $50,000 limit for distributions treated as plan loans is increased to $100,000. 1040ez form for 2012 In addition, the limit based on 50% of your vested accrued benefit is increased to 100% of that benefit. 1040ez form for 2012 The higher limits apply only to loans received during the following period. 1040ez form for 2012 If your main home was located in the Hurricane Katrina disaster area, the period began on September 24, 2005, and ends on December 31, 2006. 1040ez form for 2012 If your main home was located in the Hurricane Rita or Wilma disaster area, the period began on December 21, 2005, and ends on December 31, 2006. 1040ez form for 2012 If you are a qualified individual based on Hurricane Katrina and another hurricane, use the period based on Hurricane Katrina. 1040ez form for 2012 One-year suspension of loan payments. 1040ez form for 2012   Payments on plan loans due before 2007 may be suspended for 1 year by the plan administrator. 1040ez form for 2012 To qualify for the suspension, the due date for any loan payment must occur during the period beginning on: August 28, 2005, if your main home was located in the Hurricane Katrina disaster area. 1040ez form for 2012 September 23, 2005, if your main home was located in the Hurricane Rita disaster area. 1040ez form for 2012 October 23, 2005, if your main home was located in the Hurricane Wilma disaster area. 1040ez form for 2012 If you are a qualified individual based on more than one hurricane, use the period with the earliest beginning date. 1040ez form for 2012 Additional Tax Relief for Individuals Earned Income Credit and Child Tax Credit You can elect to use your 2004 earned income to figure your earned income credit (EIC) and additional child tax credit for 2005 if: Your 2005 earned income is less than your 2004 earned income, and At least one of the following statements is true. 1040ez form for 2012 Your main home on August 25, 2005, was in the Gulf Opportunity (GO) Zone. 1040ez form for 2012 Your main home on August 25, 2005, was in the Hurricane Katrina disaster area and you were displaced from that home because of Hurricane Katrina. 1040ez form for 2012 Your main home on September 23, 2005, was in the Rita GO Zone. 1040ez form for 2012 Your main home on September 23, 2005, was in the Hurricane Rita disaster area and you were displaced from that home because of Hurricane Rita. 1040ez form for 2012 Your main home on October 23, 2005, was in the Wilma GO Zone. 1040ez form for 2012 Your main home on October 23, 2005, was in the Hurricane Wilma disaster area and you were displaced from that home because of Hurricane Wilma. 1040ez form for 2012 Earned income. 1040ez form for 2012    For the purpose of this election, your earned income for both the EIC and the additional child tax credit is the amount of earned income used to figure your EIC, even if you did not take the EIC and even if that amount is different than your earned income for the additional child tax credit. 1040ez form for 2012 If you are claiming only the additional child tax credit, you must figure the amount of your earned income for EIC purposes to determine your eligibility to make the election and the amount of the credit. 1040ez form for 2012 Joint returns. 1040ez form for 2012   If you file a joint return, you qualify to make this election even if only one spouse meets the requirements. 1040ez form for 2012 If you make the election, your 2004 earned income is the sum of your 2004 earned income and your spouse's 2004 earned income. 1040ez form for 2012 Making the election. 1040ez form for 2012   If you make the election to use your 2004 earned income, the election applies for figuring both the EIC and the additional child tax credit. 1040ez form for 2012 However, you can make the election for the additional child tax credit even if you do not take the EIC. 1040ez form for 2012   Electing to use your 2004 earned income may increase or decrease your EIC. 1040ez form for 2012 Take the following steps to decide whether to make the election. 1040ez form for 2012 Figure your 2005 EIC using your 2004 earned income. 1040ez form for 2012 Figure your 2005 additional child tax credit using your 2004 earned income for EIC purposes. 1040ez form for 2012 Add the results of (1) and (2). 1040ez form for 2012 Figure your 2005 EIC using your 2005 earned income. 1040ez form for 2012 Figure your 2005 additional child tax credit using your 2005 earned income for additional child tax credit purposes. 1040ez form for 2012 Add the results of (4) and (5). 1040ez form for 2012 Compare the results of (3) and (6). 1040ez form for 2012 If (3) is larger than (6), it is to your benefit to make the election. 1040ez form for 2012 If (3) is equal to or smaller than (6), making the election will not help you. 1040ez form for 2012   If you elect to use your 2004 earned income and you are claiming the EIC, enter “PYEI” and the amount of your 2004 earned income on the dotted line next to line 66a of Form 1040, on the line next to line 41a of Form 1040A, or in the space to the left of line 8a of Form 1040EZ. 1040ez form for 2012   If you elect to use your 2004 earned income and you are claiming the additional child tax credit, enter your 2004 earned income for EIC purposes (even if you did not claim the EIC) on Form 8812, Additional Child Tax Credit, line 4a, and check the box on that line. 1040ez form for 2012   Because Form 8812 was released before the GO Zone legislation was enacted, the instructions refer only to individuals whose main home was in the Hurricane Katrina disaster area. 1040ez form for 2012 When completing Form 8812, line 4a, use the above rules to determine your eligibility to make the election (instead of the Form 8812 instructions). 1040ez form for 2012 Getting your 2004 tax return information. 1040ez form for 2012   If you do not have your 2004 tax records, you can get the amount of earned income used to figure your 2004 EIC by calling 1-866-562-5227. 1040ez form for 2012 You can also get this information by visiting the IRS website at www. 1040ez form for 2012 irs. 1040ez form for 2012 gov. 1040ez form for 2012   If you prefer to figure your 2004 earned income yourself, copies or transcripts of your filed and processed tax returns can help you reconstruct your tax records. 1040ez form for 2012 See Request for Copy or Transcript of Tax Return on page 16. 1040ez form for 2012 Additional Exemption for Housing Individuals Displaced by Hurricane Katrina You may be able to claim an additional exemption amount of $500 for providing housing in your main home for each individual displaced by Hurricane Katrina. 1040ez form for 2012 The additional exemption amount is claimed on new Form 8914. 1040ez form for 2012 The additional exemption amount is allowable once per taxpayer for a specific individual in 2005 or 2006, but not in both years. 1040ez form for 2012 The maximum additional exemption amount you can claim for all displaced individuals is $2,000 ($1,000 if married filing separately). 1040ez form for 2012 The additional exemption amount you claim for displaced individuals in 2005 will reduce the $2,000 maximum for 2006. 1040ez form for 2012 If two or more taxpayers share the same main home, only one taxpayer in that main home can claim the additional exemption amount for a specific displaced individual. 1040ez form for 2012 If married filing separately, only one spouse may claim the additional exemption amount for a specific displaced individual. 1040ez form for 2012 In order for you to be considered to have provided housing, you must have a legal interest in the main home (that is, own or rent the home). 1040ez form for 2012 To qualify as a displaced individual, the individual: Must have had his or her main home in the Hurricane Katrina disaster area on August 28, 2005, and he or she must have been displaced from that home. 1040ez form for 2012 If the individual's main home was located outside the core disaster area, that home must have been damaged by Hurricane Katrina or the individual must have been evacuated from that home because of Hurricane Katrina, Must have been provided housing in your main home for a period of at least 60 consecutive days ending in the tax year in which the exemption is claimed, and Cannot be your spouse or dependent. 1040ez form for 2012 You cannot claim the additional exemption amount if you received rent (or any other amount) from any source for providing the housing. 1040ez form for 2012 You are permitted to receive payments or reimbursements that do not relate to normal housing costs, including the following. 1040ez form for 2012 Food, clothing, or personal items consumed or used by the displaced individual. 1040ez form for 2012 Reimbursement for the cost of any long distance telephone calls made by the displaced individual. 1040ez form for 2012 Reimbursement for the cost of gasoline for the displaced individual's use of your vehicle. 1040ez form for 2012 However, you cannot claim the additional exemption amount if you received any reimbursement for the extra costs of heat, electricity, or water used by the displaced individual. 1040ez form for 2012 Also, you must report on Form 8914 the displaced individual's social security number or individual taxpayer identification number to claim an additional exemption amount. 1040ez form for 2012 For more information, see Form 8914. 1040ez form for 2012 Education Credits The education credits have been expanded for students attending an eligible educational institution located in the Gulf Opportunity Zone (GOZ students) for any tax year beginning in 2005 or 2006. 1040ez form for 2012 The Hope credit for a GOZ student is increased to 100% of the first $2,000 in qualified education expenses and 50% of the next $2,000 of qualified education expenses for a maximum credit of $3,000 per student. 1040ez form for 2012 The lifetime learning credit rate for a GOZ student is increased from 20% to 40%. 1040ez form for 2012 The definition of qualified education expenses for a GOZ student also has been expanded. 1040ez form for 2012 In addition to tuition and fees required for the student's enrollment or attendance at an eligible educational institution, qualified education expenses for a GOZ student include the following. 1040ez form for 2012 Books, supplies, and equipment required for enrollment or attendance at an eligible educational institution. 1040ez form for 2012 For a special needs student, expenses that are necessary for that person's enrollment or attendance at an eligible educational institution. 1040ez form for 2012 For a student who is at least a half-time student, the reasonable costs of room and board, but only to the extent that the costs are not more than the greater of the following two amounts. 1040ez form for 2012 The allowance for room and board, as determined by the eligible educational institution, that was included in the cost of attendance (for federal financial aid purposes) for a particular academic period and living arrangement of the student. 1040ez form for 2012 The actual amount charged if the student is residing in housing owned or operated by the eligible educational institution. 1040ez form for 2012 You will need to contact the eligible educational institution for qualified room and board costs. 1040ez form for 2012 For more information, see Form 8863. 1040ez form for 2012 Recapture of Federal Mortgage Subsidy Generally, if you financed your home under a federally subsidized program (loans from tax-exempt qualified mortgage bonds or loans with mortgage credit certificates), you may have to recapture all or part of the benefit you received from that program when you sell or otherwise dispose of your home. 1040ez form for 2012 However, you do not have to recapture any benefit if your mortgage loan was a qualified home improvement loan of not more than $15,000. 1040ez form for 2012 This amount is increased to $150,000 if the loan was provided before 2011 and was used to: Repair damage caused by Hurricane Katrina to a residence in the Hurricane Katrina disaster area, or Alter, repair, or improve an existing owner-occupied residence in the GO Zone, Rita GO Zone, or Wilma GO Zone. 1040ez form for 2012 Exclusion of Certain Cancellations of Indebtedness by Reason of Hurricane Katrina Generally, discharges of nonbusiness debts (such as mortgages) made after August 24, 2005, and before January 1, 2007, are excluded from income for individuals whose main home was in the Hurricane Katrina disaster area on August 25, 2005. 1040ez form for 2012 If the individual's main home was located outside the core disaster area, the individual also must have had an economic loss because of Hurricane Katrina. 1040ez form for 2012 Examples of an economic loss include, but are not limited to: Loss, damage to, or destruction of real or personal property from fire, flooding, looting, vandalism, theft, wind, or other cause; Loss related to displacement from your home; or Loss of livelihood due to temporary or permanent layoffs. 1040ez form for 2012 This relief does not apply to any debt secured by real property located outside the Hurricane Katrina disaster area. 1040ez form for 2012 You may also have to reduce certain tax attributes by the amount excluded. 1040ez form for 2012 For more information, see Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment). 1040ez form for 2012 Tax Relief for Temporary Relocation Under the Gulf Opportunity Zone Act of 2005, the IRS may adjust the internal revenue laws to ensure that taxpayers do not lose a deduction or credit or experience a change of filing status in 2005 or 2006 as a result of a temporary relocation caused by Hurricane Katrina, Rita, or Wilma. 1040ez form for 2012 However, any such adjustment must ensure that an individual is not taken into account by more than one taxpayer for the same tax benefit. 1040ez form for 2012 The IRS has exercised this authority as follows. 1040ez form for 2012 In determining whether you furnished over one-half of the cost of maintaining a household, you can exclude from total household costs any assistance received from the government or charitable organizations because you were temporarily relocated as a result of Hurricane Katrina, Rita, or Wilma. 1040ez form for 2012 In determining whether you provided more than one-half of an individual's support, you can disregard any assistance received from the government or charitable organizations because you were temporarily relocated as a result of Hurricane Katrina, Rita, or Wilma. 1040ez form for 2012 You can treat as a student an individual who enrolled in school before August 25, 2005, and who is unable to attend classes because of Hurricane Katrina, for each month of the enrollment period that individual is prevented by Hurricane Katrina from attending school as planned. 1040ez form for 2012 You can treat as a student an individual who enrolled in school before September 23, 2005, and who is unable to attend classes because of Hurricane Rita, for each month of the enrollment period that individual is prevented by Hurricane Rita from attending school as planned. 1040ez form for 2012 You can treat as a student an individual who enrolled in school before October 23, 2005, and who is unable to attend classes because of Hurricane Wilma, for each month of the enrollment period that individual is prevented by Hurricane Wilma from attending school as planned. 1040ez form for 2012 Additional Tax Relief for Businesses Special Depreciation Allowance You can take a special depreciation allowance for qualified Gulf Opportunity (GO) Zone property (as defined below) you place in service after August 27, 2005. 1040ez form for 2012 The allowance is an additional deduction of 50% of the property's depreciable basis (after any section 179 deduction and before figuring your regular depreciation deduction). 1040ez form for 2012 The special allowance applies only for the first year the property is placed in service. 1040ez form for 2012 The allowance is deductible for both the regular tax and the alternative minimum tax (AMT). 1040ez form for 2012 There is no AMT adjustment required for any depreciation figured on the remaining basis of the property. 1040ez form for 2012 You can elect not to deduct the special GO Zone depreciation allowance for qualified property. 1040ez form for 2012 If you make this election for any property, it applies to all property in the same class placed in service during the year. 1040ez form for 2012 Qualified GO Zone property. 1040ez form for 2012   Property that qualifies for the special GO Zone depreciation allowance includes the following. 1040ez form for 2012 Tangible property depreciated under the modified accelerated cost recovery system (MACRS) with a recovery period of 20 years or less. 1040ez form for 2012 Water utility property. 1040ez form for 2012 Computer software that is readily available for purchase by the general public, is subject to a nonexclusive license, and has not been substantially modified. 1040ez form for 2012 (The cost of some computer software is treated as part of the cost of hardware and is depreciated under MACRS. 1040ez form for 2012 ) Qualified leasehold improvement property. 1040ez form for 2012 Nonresidential real property and residential rental property. 1040ez form for 2012   For more information on this property, see Publication 946. 1040ez form for 2012 Other tests to be met. 1040ez form for 2012   To be qualified GO Zone property, the property must also meet all of the following tests. 1040ez form for 2012 You must have acquired the property, by purchase, after August 27, 2005, but only if no binding written contract for the acquisition was in effect before August 28, 2005. 1040ez form for 2012 The property must be placed in service before 2008 (2009 in the case of nonresidential real property and residential rental property). 1040ez form for 2012 Substantially all of the use of the property must be in the GO Zone and in the active conduct of your trade or business in the GO Zone. 1040ez form for 2012 The original use of the property in the GO Zone must begin with you after August 27, 2005. 1040ez form for 2012 Used property can be qualified GO Zone property if it has not previously been used within the GO Zone. 1040ez form for 2012 Also, additional capital expenditures you incurred after August 27, 2005, to recondition or rebuild your property meet the original use test if the original use of the property in the GO Zone began with you. 1040ez form for 2012 Excepted property. 1040ez form for 2012   Qualified GO Zone property does not include any of the following. 1040ez form for 2012 Property required to be depreciated using the Alternative Depreciation System (ADS). 1040ez form for 2012 Property any portion of which is financed with the proceeds of a tax-exempt obligation under section 103. 1040ez form for 2012 Property for which you are claiming a commercial revitalization deduction. 1040ez form for 2012 Any property used in connection with any private or commercial golf course, country club, massage parlor, hot tub facility, suntan facility, or any store, the principal business of which is the sale of alcoholic beverages for consumption off premises. 1040ez form for 2012 Any gambling or animal racing property (as defined below). 1040ez form for 2012 Property in the same class as that for which you elected not to claim the special GO Zone depreciation allowance. 1040ez form for 2012   Gambling or animal racing property is: Any equipment, furniture, software, or other property used directly in connection with gambling, the racing of animals, or the on-site viewing of such racing, and The portion of any real property (determined by square footage) that is dedicated to gambling, the racing of animals, or the on-site viewing of such racing, unless this portion is less than 100 square feet. 1040ez form for 2012 Recapture of special allowance. 1040ez form for 2012   If, in any year after the year you claim the special allowance, the property ceases to be qualified GO Zone property, you may have to recapture as ordinary income any excess benefit you received from claiming the special allowance. 1040ez form for 2012 Increased Section 179 Deduction An increased section 179 deduction is allowable for qualified section 179 Gulf Opportunity (GO) Zone property (as defined later) placed in service in the GO Zone. 1040ez form for 2012 Increased dollar limit. 1040ez form for 2012   The limit on the section 179 deduction ($105,000 for 2005, $108,000 for 2006) for qualified section 179 GO Zone property acquired after August 27, 2005, is increased by the smaller of: $100,000, or The cost of qualified section 179 GO Zone property placed in service during the year (including such property placed in service by your spouse, even if you are filing a separate return). 1040ez form for 2012   The amount for which you can make the election is reduced if the cost of all qualified section 179 GO Zone property you placed in service during the year exceeds $420,000 for 2005 ($430,000 for 2006) increased by the smaller of: $600,000, or The cost of qualified section 179 GO Zone property placed in service during the year. 1040ez form for 2012 Qualified section 179 GO Zone property. 1040ez form for 2012   Qualified section 179 GO Zone property is section 179 property that is qualified GO Zone property (explained earlier under Special Depreciation Allowance). 1040ez form for 2012 Section 179 property does not include nonresidential real property or residential rental property. 1040ez form for 2012 For more information, including the requirements that must be met for property to qualify for the section 179 deduction, see chapter 2 of Publication 946. 1040ez form for 2012 Work Opportunity Credit For the work opportunity credit, the definition of “targeted group employee” has been expanded to include a Hurricane Katrina employee. 1040ez form for 2012 Hurricane Katrina employee. 1040ez form for 2012   A Hurricane Katrina employee is: A person who, on August 28, 2005, had a main home in the core disaster area and, within a two-year period beginning on that date, is hired to perform services principally in the core disaster area; or A person who, on August 28, 2005, had a main home in the core disaster area, was displaced from that main home as a result of Hurricane Katrina, and was hired during the period beginning on August 28, 2005, and ending on December 31, 2005. 1040ez form for 2012 Qualified wages. 1040ez form for 2012   Generally, qualified wages do not include wages you paid to a targeted group employee who worked for you previously. 1040ez form for 2012 However, wages will qualify if: You paid them to an employee who is a Hurricane Katrina employee, The employee was not in your employment on August 28, 2005, and This is your first hire of the employee as a Hurricane Katrina employee after August 28, 2005. 1040ez form for 2012   For more information, see Form 5884. 1040ez form for 2012 Certification requirements. 1040ez form for 2012   An employee must provide to the employer reasonable evidence that he or she is a Hurricane Katrina employee. 1040ez form for 2012 An employer may accept a completed Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity and Welfare-to-Work Credits, as such evidence. 1040ez form for 2012 The certification requirements described in Form 8850 do not apply to a Hurricane Katrina employee. 1040ez form for 2012 Do not send any Forms 8850 that have only box 1 checked to the state employment security agency. 1040ez form for 2012 Instead, the employer should keep these Forms 8850 with the employer's other records. 1040ez form for 2012 For more information, see Form 8850 and its instructions. 1040ez form for 2012 Employee Retention Credit An eligible employer who conducted an active trade or business in the Gulf Opportunity (GO) Zone, the Rita GO Zone, or the Wilma GO Zone can claim the employee retention credit. 1040ez form for 2012 The credit is 40% of qualified wages for each eligible employee (up to a maximum of $6,000 in qualified wages per employee). 1040ez form for 2012 Generally, you must reduce your deduction for salaries and wages by the amount of this credit (before the tax liability limit). 1040ez form for 2012 Use Form 5884-A to claim the credit. 1040ez form for 2012 See the following rules and definitions for each hurricane. 1040ez form for 2012 Employers affected by Hurricane Katrina. 1040ez form for 2012   The following definitions apply to employers affected by Hurricane Katrina. 1040ez form for 2012 Eligible employer. 1040ez form for 2012   For this purpose, an eligible employer is any employer who conducted an active trade or business on August 28, 2005, in the GO Zone and whose trade or business was inoperable on any day after August 28, 2005, and before January 1, 2006, because of damage caused by Hurricane Katrina. 1040ez form for 2012 Eligible employee. 1040ez form for 2012   For this purpose, an eligible employee is an employee whose principal place of employment on August 28, 2005, with such eligible employer was in the GO Zone. 1040ez form for 2012 An employee is not an eligible employee for purposes of Hurricane Katrina if the employee is treated as an eligible employee for the work opportunity credit. 1040ez form for 2012 Employers affected by Hurricane Rita. 1040ez form for 2012   The following definitions apply to employers affected by Hurricane Rita. 1040ez form for 2012 Eligible employer. 1040ez form for 2012   For this purpose, an eligible employer is any employer who conducted an active trade or business on September 23, 2005, in the Rita GO Zone and whose trade or business was inoperable on any day after September 23, 2005, and before January 1, 2006, because of damage caused by Hurricane Rita. 1040ez form for 2012 Eligible employee. 1040ez form for 2012   For this purpose, an eligible employee is an employee whose principal place of employment on September 23, 2005, with such eligible employer was in the Rita GO Zone. 1040ez form for 2012 An employee is not an eligible employee for purposes of Hurricane Rita if the employee is treated as an eligible employee for the work opportunity credit or the Hurricane Katrina employee retention credit. 1040ez form for 2012 Employers affected by Hurricane Wilma. 1040ez form for 2012   The following definitions apply to employers affected by Hurricane Wilma. 1040ez form for 2012 Eligible employer. 1040ez form for 2012   For this purpose, an eligible employer is any employer who conducted an active trade or business on October 23, 2005, in the Wilma GO Zone and whose trade or business was inoperable on any day after October 23, 2005, and before January 1, 2006, because of damage caused by Hurricane Wilma. 1040ez form for 2012 Eligible employee. 1040ez form for 2012   For this purpose, an eligible employee is an employee whose principal place of employment on October 23, 2005, with such eligible employer was in the Wilma GO Zone. 1040ez form for 2012 An employee is not an eligible employee for purposes of Hurricane Wilma if the employee is treated as an eligible employee for the work opportunity credit or the Hurricane Katrina or Rita employee retention credit. 1040ez form for 2012 Qualified wages. 1040ez form for 2012   Qualified wages are wages you paid or incurred before January 1, 2006, (up to $6,000 per employee) for an eligible employee beginning on the date your trade or business first became inoperable at the employee's principal place of employment immediately before the applicable hurricane, and ending on the date your trade or business resumed significant operations at that place. 1040ez form for 2012 In addition, the wages must have been paid or incurred after the following date. 1040ez form for 2012 August 28, 2005, for Hurricane Katrina. 1040ez form for 2012 September 23, 2005, for Hurricane Rita. 1040ez form for 2012 October 23, 2005, for Hurricane Wilma. 1040ez form for 2012    This includes wages paid even if the employee performed no services, performed services at a place of employment other than the principal place of employment, or performed services at the principal place of employment before significant operations resumed. 1040ez form for 2012    Wages qualifying for the credit generally have the same meaning as wages subject to the Federal Unemployment Tax Act (FUTA). 1040ez form for 2012 Qualified wages also include amounts you paid for medical or hospitalization expenses in connection with sickness or accident disability. 1040ez form for 2012 Qualified wages for any employee must be reduced by the amount of any work supplementation payment you received under the Social Security Act. 1040ez form for 2012   For agricultural employees, if the work performed by any employee during more than half of any pay period qualified under FUTA as agricultural labor, that employee's wages subject to social security and Medicare taxes are qualified wages. 1040ez form for 2012 For a special rule that applies to railroad employees, see section 51(h)(1)(B). 1040ez form for 2012   Qualified wages do not include the following. 1040ez form for 2012 Wages paid to your dependent or a related individual. 1040ez form for 2012 See section 51(i)(1). 1040ez form for 2012 Wages paid to any employee during the period for which you received payment for the employee from a federally funded on-the-job training program. 1040ez form for 2012 Wages for services of replacement workers during a strike or lockout. 1040ez form for 2012   For more information, see Form 5884-A. 1040ez form for 2012 Hurricane Katrina Housing Credit An employer who conducted an active trade or business in the Gulf Opportunity (GO) Zone can claim the Hurricane Katrina housing credit. 1040ez form for 2012 The credit is equal to 30% of the value (up to $600 per month per employee) of in-kind lodging furnished to a qualified employee (and the employee's spouse or dependents) from January 1, 2006, through July 1, 2006. 1040ez form for 2012 The value of the lodging is excluded from the income of the qualified employee but is treated as wages for purposes of taxes imposed under the Federal Insurance Contributions Act (FICA) and the Federal Unemployment Tax Act (FUTA). 1040ez form for 2012 Generally, you must reduce your deduction for salaries and wages by the amount of this credit (before the tax liability limit). 1040ez form for 2012 The employer must use Form 5884-A to claim the credit. 1040ez form for 2012 A qualified employee is an individual who had a main home in the GO Zone on August 28, 2005, and who performs substantially all employment services in the GO Zone for the employer furnishing the lodging. 1040ez form for 2012 The employee cannot be your dependent or a related individual. 1040ez form for 2012 See section 51(i)(1). 1040ez form for 2012 For more information, see Form 5884-A. 1040ez form for 2012 Reforestation Costs You may be able to elect to deduct a limited amount of reforestation costs for each qualified timber property. 1040ez form for 2012 The deduction for any tax year generally is limited to $10,000 ($5,000 if married filing separately, $0 for a trust). 1040ez form for 2012 However, this limit is increased if you paid or incurred reforestation costs after the applicable date below and any portion of the qualified timber property is located in one of the following areas. 1040ez form for 2012 August 27, 2005, if any portion of the property is located in the GO Zone. 1040ez form for 2012 September 22, 2005, if any portion of the property is located in the Rita GO Zone (but not in the GO Zone). 1040ez form for 2012 October 22, 2005, if any portion of the property is located in the Wilma GO Zone. 1040ez form for 2012 The limit for each qualified timber property is increased by the smaller of: $10,000 ($5,000 if married filing separately, $0 for a trust), or The amount of reforestation costs you paid or incurred after the applicable date for the qualified timber property, any portion of which is located in the zone described above. 1040ez form for 2012 The increase in the limit applies only to costs paid or incurred before 2008. 1040ez form for 2012 However, these rules do not apply to any timber producer who: Held more than 500 acres of qualified timber property at any time during the tax year, Is a corporation with stock publicly traded on an established securities market, or Is a real estate investment trust. 1040ez form for 2012 For more information about the election to deduct reforestation costs, see chapter 8 in Publication 535, Business Expenses. 1040ez form for 2012 Demolition and Clean-up Costs You can elect to deduct 50% of any qualified GO Zone clean-up costs for the tax year in which the costs are paid or incurred, instead of capitalizing them. 1040ez form for 2012 Qualified GO Zone clean-up costs are any amounts paid or incurred after August 27, 2005, and before January 1, 2008, for the removal of debris from, or the demolition of structures on, real property located in the GO Zone that is: Held by you for use in a trade or business or for the production of income, or Inventory or other property held primarily for sale to customers in the ordinary course of your trade or business. 1040ez form for 2012 Increase in Rehabilitation Tax Credit The rehabilitation credit is increased for qualified rehabilitation expenditures paid or incurred after August 27, 2005, and before January 1, 2009, on buildings located in the GO Zone as follows. 1040ez form for 2012 For pre-1936 buildings (other than certified historic structures), the credit percentage is increased from 10% to 13%. 1040ez form for 2012 For certified historic structures, the credit percentage is increased from 20% to 26%. 1040ez form for 2012 For more information, see Form 3468, Investment Credit. 1040ez form for 2012 Request for Copy or Transcript of Tax Return Request for copy of tax return. 1040ez form for 2012   You can use Form 4506 to order a copy of your tax return. 1040ez form for 2012 Generally, there is a $39. 1040ez form for 2012 00 fee for requesting each copy of a tax return. 1040ez form for 2012 If your main home, principal place of business, or tax records are located in a Presidentially declared disaster area, the fee will be waived if the assigned disaster designation (for example, “Hurricane Katrina”) is written in red across the top of the form when filed. 1040ez form for 2012 Request for transcript of tax return. 1040ez form for 2012   You can use Form 4506-T to order a free transcript of your tax return. 1040ez form for 2012 A transcript provides most of the line entries from a tax return and usually contains the information that a third party requires. 1040ez form for 2012 You can also call 1-800-829-1040 to order a transcript. 1040ez form for 2012 How To Get Tax Help Special IRS assistance. 1040ez form for 2012   The IRS is providing special help for those affected by Hurricane Katrina, Rita, or Wilma, as well as survivors and personal representatives of the victims. 1040ez form for 2012 We have set up a special toll-free number for people who may have trouble filing or paying their taxes because they were affected by Hurricane Katrina, Rita, or Wilma, or who have other tax issues related to the hurricanes. 1040ez form for 2012 Call 1-866-562-5227 Monday through Friday In English-7 a. 1040ez form for 2012 m. 1040ez form for 2012 to 10 p. 1040ez form for 2012 m. 1040ez form for 2012 local time In Spanish-8 a. 1040ez form for 2012 m. 1040ez form for 2012 to 9:30 p. 1040ez form for 2012 m. 1040ez form for 2012 local time   The IRS website at www. 1040ez form for 2012 irs. 1040ez form for 2012 gov has notices and other tax relief information. 1040ez form for 2012 Check it periodically for any new guidance. 1040ez form for 2012 Other help from the IRS. 1040ez form for 2012   You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get more information from the IRS in several ways. 1040ez form for 2012 By selecting the method that is best for you, you will have quick and easy access to tax help. 1040ez form for 2012 Contacting your Taxpayer Advocate. 1040ez form for 2012   If you have attempted to deal with an IRS problem unsuccessfully, you should contact your Taxpayer Advocate. 1040ez form for 2012   The Taxpayer Advocate independently represents your interests and concerns within the IRS by protecting your rights and resolving problems that have not been fixed through normal channels. 1040ez form for 2012 While Taxpayer Advocates cannot change the tax law or make a technical tax decision, they can clear up problems that resulted from previous contacts and ensure that your case is given a complete and impartial review. 1040ez form for 2012   To contact your Taxpayer Advocate: Call the Taxpayer Advocate toll free at 1-877-777-4778. 1040ez form for 2012 Call, write, or fax the Taxpayer Advocate office in your area. 1040ez form for 2012 Call 1-800-829-4059 if you are a TTY/TDD user. 1040ez form for 2012 Visit www. 1040ez form for 2012 irs. 1040ez form for 2012 gov/advocate. 1040ez form for 2012   For more information, see Publication 1546, How To Get Help With Unresolved Tax Problems (now available in Chinese, Korean, Russian, and Vietnamese, in addition to English and Spanish). 1040ez form for 2012 Free tax services. 1040ez form for 2012   To find out what services are available, get Publication 910, IRS Guide to Free Tax Services. 1040ez form for 2012 It contains a list of free tax publications and an index of tax topics. 1040ez form for 2012 It also describes other free tax information services, including tax education and assistance programs and a list of TeleTax topics. 1040ez form for 2012 Internet. 1040ez form for 2012 You can access the IRS website 24 hours a day, 7 days a week, at www. 1040ez form for 2012 irs. 1040ez form for 2012 gov to: E-file your return. 1040ez form for 2012 Find out about commercial tax preparation and e-file services available free to eligible taxpayers. 1040ez form for 2012 Check the status of your refund. 1040ez form for 2012 Click on Where's My Refund. 1040ez form for 2012 Be sure to wait at least 6 weeks from the date you filed your return (3 weeks if you filed electronically). 1040ez form for 2012 Have your tax return available because you will need to know your social security number, your filing status, and the exact whole dollar amount of your refund. 1040ez form for 2012 Download forms, instructions, and publications. 1040ez form for 2012 Order IRS products online. 1040ez form for 2012 Research your tax questions online. 1040ez form for 2012 Search publications online by topic or keyword. 1040ez form for 2012 View Internal Revenue Bulletins (IRBs) published in the last few years. 1040ez form for 2012 Figure your withholdin