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2011 1040ez Online

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2011 1040ez Online

2011 1040ez online Publication 51 - Main Content Table of Contents 1. 2011 1040ez online Taxpayer Identification NumbersWhen you receive your EIN. 2011 1040ez online Registering for SSNVS. 2011 1040ez online 2. 2011 1040ez online Who Are Employees?Crew Leaders Business Owned and Operated by Spouses 3. 2011 1040ez online Wages and Other Compensation 4. 2011 1040ez online Social Security and Medicare TaxesThe $150 Test or the $2,500 Test Social Security and Medicare Tax Withholding 5. 2011 1040ez online Federal Income Tax WithholdingImplementation of lock-in letter. 2011 1040ez online Seasonal employees and employees not currently performing services. 2011 1040ez online Termination and re-hire of employees. 2011 1040ez online How To Figure Federal Income Tax Withholding 6. 2011 1040ez online Required Notice to Employees About Earned Income Credit (EIC) 7. 2011 1040ez online Depositing TaxesWhen To Deposit How To Deposit Deposit Penalties Employers of Both Farm and Nonfarm Workers 8. 2011 1040ez online Form 943 9. 2011 1040ez online Reporting Adjustments on Form 943Current Year Adjustments Prior Year Adjustments 10. 2011 1040ez online Federal Unemployment (FUTA) Tax 11. 2011 1040ez online Reconciling Wage Reporting Forms 13. 2011 1040ez online Federal Income Tax Withholding MethodsWage Bracket Method Percentage Method Alternative Methods of Federal Income Tax Withholding How To Get Tax Help 1. 2011 1040ez online Taxpayer Identification Numbers If you are required to withhold any federal income, social security, or Medicare taxes, you will need an employer identification number (EIN) for yourself. 2011 1040ez online Also, you will need the SSN of each employee and the name of each employee as shown on the employee's social security card. 2011 1040ez online Employer identification number (EIN). 2011 1040ez online   An employer identification number (EIN) is a nine-digit number that the IRS issues. 2011 1040ez online The digits are arranged as follows: 00-0000000. 2011 1040ez online It is used to identify the tax accounts of employers and certain others who have no employees. 2011 1040ez online Use your EIN on all of the items that you send to the IRS and SSA. 2011 1040ez online   If you do not have an EIN, you may apply for one online. 2011 1040ez online Visit IRS. 2011 1040ez online gov and click on the Apply for an EIN Online link under Tools. 2011 1040ez online 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. 2011 1040ez online Do not use a SSN in place of an EIN. 2011 1040ez online   If you do not have an EIN by the time a return is due, write “Applied For” and the date you applied for it in the space shown for the number. 2011 1040ez online If you took over another employer's business, do not use that employer's EIN. 2011 1040ez online   You should have only one EIN. 2011 1040ez online If you have more than one, and are not sure which one to use, call the toll-free Business and Specialty Tax Line at 1-800-829-4933 or 1-800-829-4059 (TDD/TTY for persons who are deaf, hard of hearing, or have a speech disability). 2011 1040ez online Provide the EINs that you have, the name and address to which each number was assigned, and the address of your principal place of business. 2011 1040ez online The IRS will tell you which EIN to use. 2011 1040ez online   For more information, see Publication 1635 or Publication 583. 2011 1040ez online When you receive your EIN. 2011 1040ez online   If you are a new employer that indicated a federal tax obligation when requesting an EIN, you will be pre-enrolled in the Electronic Federal Tax Payment System (EFTPS). 2011 1040ez online You will receive information in your Employer Identification Number (EIN) Package about Express Enrollment and an additional mailing containing your EFTPS personal identification number (PIN) and instructions for activating your PIN. 2011 1040ez online Call the toll-free number located in your “How to Activate Your Enrollment” brochure to activate your enrollment and begin making your employment tax deposits. 2011 1040ez online If you outsource any of your payroll and related tax duties to a third party payer, such as a payroll service provider or reporting agent, be sure to tell them about your EFTPS enrollment. 2011 1040ez online Social security number (SSN). 2011 1040ez online   An employee's social security number (SSN) consists of nine digits arranged as follows: 000-00-0000. 2011 1040ez online You must obtain each employee's name and SSN as shown on the employee's social security card because you must enter them on Form W-2. 2011 1040ez online Do not accept a social security card that says “Not valid for employment. 2011 1040ez online ” A social security number issued with this legend does not permit employment. 2011 1040ez online You may, but are not required to, photocopy the social security card if the employee provides it. 2011 1040ez online If you do not show the employee's correct name and SSN on Form W-2, you may owe a penalty unless you have reasonable cause. 2011 1040ez online See Publication 1586, Reasonable Cause Regulations & Requirements for Missing and Incorrect Name/TINs. 2011 1040ez online Applying for a social security card. 2011 1040ez online   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 to SSA. 2011 1040ez online You can get Form SS-5 at SSA offices, by calling 1-800-772-1213 or 1-800-325-0778 (TTY), or from the SSA website at www. 2011 1040ez online socialsecurity. 2011 1040ez online gov/online/ss-5. 2011 1040ez online html. 2011 1040ez online The employee must complete and sign Form SS-5; it cannot be filed by the employer. 2011 1040ez online 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. 2011 1040ez online Applying for a social security number. 2011 1040ez online   If you file Form W-2 on paper and your employee has applied for an SSN but does not have one when you must file Form W-2, enter “Applied For” on the form. 2011 1040ez online If you are filing electronically, enter all zeros (000-00-0000) in the social security number field. 2011 1040ez online 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. 2011 1040ez online Furnish Copies B, C, and 2 of Form W-2c to the employee. 2011 1040ez online Up to 25 Forms W-2c per Form W-3c, Transmittal of Corrected Wage and Tax Statements, may be filed per session over the Internet, with no limit on the number of sessions. 2011 1040ez online For more information, visit SSA's Employer W-2 Filing Instructions & Information webpage at www. 2011 1040ez online socialsecurity. 2011 1040ez online gov/employer. 2011 1040ez online Advise your employee to correct the SSN on his or her original Form W-2. 2011 1040ez online Correctly record the employee's name and SSN. 2011 1040ez online   Record the name and number of each employee as they are shown on the employee's social security card. 2011 1040ez online 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. 2011 1040ez online 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. 2011 1040ez online   If the SSA issues the employee a replacement card after a name change, or a new card with a different social security number after a change in alien work status, file a Form W-2c to correct the name/SSN reported on the most recently filed Form W-2. 2011 1040ez online It is not necessary to correct other years if the previous name and SSN were used for years before the most recent Form W-2. 2011 1040ez online IRS individual taxpayer identification numbers (ITINs) for aliens. 2011 1040ez online   Do not accept an ITIN in place of an SSN for employee identification or for work. 2011 1040ez online An ITIN is issued for use by resident and nonresident aliens who need identification for tax purposes, but who are not eligible for U. 2011 1040ez online S. 2011 1040ez online employment. 2011 1040ez online The ITIN is a nine-digit number formatted like an SSN (for example, NNN-NN-NNNN). 2011 1040ez online However, it begins with the number “9” and has either a “7” or “8” as the fourth digit (for example, 9NN-7N-NNNN or 9NN-8N-NNNN). 2011 1040ez online    An individual with an ITIN who later becomes eligible to work in the United States must obtain an SSN. 2011 1040ez online 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 in this section. 2011 1040ez online Do not use an ITIN in place of an SSN on Form W-2. 2011 1040ez online Verification of social security numbers. 2011 1040ez online   Employers and authorized reporting agents can use the Social Security Number Verification Service (SSNVS) to instantly verify up to 10 employee names and SSNs (per screen) at a time, or submit an electronic file of up to 250,000 names and SSNs and usually receive results the next business day. 2011 1040ez online Visit www. 2011 1040ez online socialsecurity. 2011 1040ez online gov/employer/ssnv. 2011 1040ez online htm for more information. 2011 1040ez online Registering for SSNVS. 2011 1040ez online   You must register online and receive authorization from your employer to use SSNVS. 2011 1040ez online To register, visit SSA's website at www. 2011 1040ez online socialsecurity. 2011 1040ez online gov/employer and click on the Business Services Online link. 2011 1040ez online Follow the registration instructions to obtain a user identification (ID) and password. 2011 1040ez online You will need to provide the following information about yourself and your company. 2011 1040ez online Name. 2011 1040ez online SSN. 2011 1040ez online Date of birth. 2011 1040ez online Type of employer. 2011 1040ez online EIN. 2011 1040ez online Company name, address, and telephone number. 2011 1040ez online Email address. 2011 1040ez online When you have completed the online registration process, SSA will mail a one-time activation code to your employer. 2011 1040ez online You must enter the activation code online to use SSNVS. 2011 1040ez online 2. 2011 1040ez online Who Are Employees? Generally, employees are defined either under common law or under statutes for certain situations. 2011 1040ez online See Publication 15-A for details on statutory employees and nonemployees. 2011 1040ez online Employee status under common law. 2011 1040ez online   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. 2011 1040ez online This is so even when you give the employee freedom of action. 2011 1040ez online What matters is that you have the right to control the details of how the services are performed. 2011 1040ez online See Publication 15-A for more information on how to determine whether an individual providing services is an independent contractor or an employee. 2011 1040ez online If an employer-employee relationship exists, it does not matter what it is called. 2011 1040ez online The employee may be called an agent or independent contractor. 2011 1040ez online It also does not matter how payments are measured or paid, what they are called, or if the employee works full or part time. 2011 1040ez online You are responsible for withholding and paying employment taxes for your employees. 2011 1040ez online You are also required to file employment tax returns. 2011 1040ez online These requirements do not apply to amounts that you pay to independent contractors. 2011 1040ez online The rules discussed in this publication apply only to workers who are your employees. 2011 1040ez online In general, you are an employer of farmworkers if your employees: Raise or harvest agricultural or horticultural products on your farm (including the raising and feeding of livestock); Work in connection with the operation, management, conservation, improvement, or maintenance of your farm and its tools and equipment; Provide services relating to salvaging timber, or clearing land of brush and other debris, left by a hurricane (also known as hurricane labor); Handle, process, or package any agricultural or horticultural commodity if you produced over half of the commodity (for a group of up to 20 unincorporated operators, all of the commodity); or Do work for you related to cotton ginning, turpentine, gum resin products, or the operation and maintenance of irrigation facilities. 2011 1040ez online For this purpose, the term “farm” includes stock, dairy, poultry, fruit, fur-bearing animal, and truck farms, as well as plantations, ranches, nurseries, ranges, greenhouses or other similar structures used primarily for the raising of agricultural or horticultural commodities, and orchards. 2011 1040ez online Farmwork does not include reselling activities that do not involve any substantial activity of raising agricultural or horticultural commodities, such as a retail store or a greenhouse used primarily for display or storage. 2011 1040ez online The table in section 12, How Do Employment Taxes Apply to Farmwork , distinguishes between farm and nonfarm activities, and also addresses rules that apply in special situations. 2011 1040ez online Crew Leaders If you are a crew leader, you are an employer of farmworkers. 2011 1040ez online A crew leader is a person who furnishes and pays (either on his or her own behalf or on behalf of the farm operator) workers to do farmwork for the farm operator. 2011 1040ez online If there is no written agreement between you and the farm operator stating that you are his or her employee and if you pay the workers (either for yourself or for the farm operator), then you are a crew leader. 2011 1040ez online For FUTA tax rules, see section 10. 2011 1040ez online Business Owned and Operated by Spouses If you and your spouse jointly own and operate a farm or nonfarm business and share in the profits and losses, you are partners in a partnership, whether or not you have a formal partnership agreement. 2011 1040ez online See Publication 541, Partnerships, for more details. 2011 1040ez online The partnership is considered the employer of any employees, and is liable for any employment taxes due on wages paid to its employees. 2011 1040ez online Exception—Qualified joint venture. 2011 1040ez online   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. 2011 1040ez online 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). 2011 1040ez online   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. 2011 1040ez online Each spouse must also file a separate Schedule SE to pay self-employment taxes, as applicable. 2011 1040ez online   Spouses using the qualified joint venture rules are treated as sole proprietors for federal tax purposes and generally do not need an EIN. 2011 1040ez online 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. 2011 1040ez online Generally, filing as a qualified joint venture will not increase the spouses' total tax owed on the joint income tax return. 2011 1040ez online 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. 2011 1040ez online    Note. 2011 1040ez online If your spouse is your employee, not your partner, you must pay social security and Medicare taxes for him or her. 2011 1040ez online   For more information on qualified joint ventures, visit IRS. 2011 1040ez online gov and enter “qualified joint venture” in the search box. 2011 1040ez online Exception—Community income. 2011 1040ez online   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. 2011 1040ez online S. 2011 1040ez online possession, you can treat the business either as a sole proprietorship (of the spouse who carried on the business) or a partnership. 2011 1040ez online You may still make an election to be taxed as a qualified joint venture instead of a partnership. 2011 1040ez online See Exception—Qualified joint venture , earlier in this section. 2011 1040ez online 3. 2011 1040ez online Wages and Other Compensation Cash wages that you pay to employees for farmwork are generally subject to social security tax and Medicare tax. 2011 1040ez online You may also be required to withhold, deposit, and report Additional Medicare Tax. 2011 1040ez online See section 4 for more information. 2011 1040ez online If the wages are subject to social security and Medicare taxes, they are also subject to federal income tax withholding. 2011 1040ez online You may also be liable for FUTA tax, which is not withheld by you or paid by the employee. 2011 1040ez online FUTA tax is discussed in section 10. 2011 1040ez online Cash wages include checks, money orders, etc. 2011 1040ez online Do not count as cash wages the value of food, lodging, and other noncash items. 2011 1040ez online For more information on what payments are considered taxable wages, see Publication 15 (Circular E). 2011 1040ez online Commodity wages. 2011 1040ez online   Commodity wages are not cash and are not subject to social security and Medicare taxes or federal income tax withholding. 2011 1040ez online However, noncash payments, including commodity wages, are treated as cash wages (see above) if the substance of the transaction is a cash payment. 2011 1040ez online These noncash payments are subject to social security and Medicare taxes and federal income tax withholding. 2011 1040ez online Other compensation. 2011 1040ez online   Publications 15-A and 15-B discuss other forms of compensation that may be taxable. 2011 1040ez online Family members. 2011 1040ez online   Generally, the wages that you pay to family members who are your employees are subject to social security and Medicare taxes, federal income tax withholding, and FUTA tax. 2011 1040ez online However, certain exemptions may apply for your child, spouse, or parent. 2011 1040ez online See the table, How Do Employment Taxes Apply to Farmwork , in section 12. 2011 1040ez online Household employees. 2011 1040ez online   The wages of an employee who performs household services, such as a maid, babysitter, gardener, or cook, in your home are not subject to social security and Medicare taxes if you pay that employee cash wages of less than $1,900 in 2014. 2011 1040ez online   Social security and Medicare taxes do not apply to cash wages for housework in your private home if it was done by your spouse or your child under age 21. 2011 1040ez online Nor do the taxes apply to housework done by your parent unless: You have a child living in your home who is under age 18 or has a physical or mental condition that requires care by an adult for at least 4 continuous weeks in a calendar quarter, and You are a widow or widower, or divorced and not remarried, or have a spouse in the home who, because of a physical or mental condition, cannot care for your child for at least 4 continuous weeks in the quarter. 2011 1040ez online   For more information, see Publication 926, Household Employer's Tax Guide. 2011 1040ez online    Wages for household work may not be a deductible farm expense. 2011 1040ez online See Publication 225, Farmer's Tax Guide. 2011 1040ez online Share farmers. 2011 1040ez online   You do not have to withhold or pay social security and Medicare taxes on amounts paid to share farmers under share-farming arrangements. 2011 1040ez online Compensation paid to H-2A visa holders. 2011 1040ez online   Report compensation of $600 or more paid to foreign agricultural workers who entered the country on H-2A visas in box 1 of Form W-2 but do not report it as social security wages (box 3) or Medicare wages (box 5) on Form W-2 because compensation paid to H-2A workers for agricultural labor performed in connection with this visa is not subject to social security and Medicare taxes. 2011 1040ez online On Form W-2, do not check box 13 (Statutory employee), as H-2A workers are not statutory employees. 2011 1040ez online   An employer is not required to withhold federal income tax from compensation it pays an H-2A worker for agricultural labor performed in connection with this visa unless the worker asks for withholding and the employer agrees. 2011 1040ez online In that case, the worker must give the employer a completed Form W-4. 2011 1040ez online Federal income tax withheld should be reported in box 2 of Form W-2. 2011 1040ez online These reporting rules apply when the H-2A worker provides his or her taxpayer identification number (TIN) to the employer. 2011 1040ez online For rules relating to backup withholding and reporting when the H-2A worker does not provide a TIN, see the Instructions for Form 1099-MISC and the Instructions for Form 945. 2011 1040ez online 4. 2011 1040ez online Social Security and Medicare Taxes Generally, you must withhold social security and Medicare taxes on all cash wage payments that you make to your employees. 2011 1040ez online You may also be required to withhold Additional Medicare Tax. 2011 1040ez online For more information, see Additional Medicare Tax withholding , later. 2011 1040ez online The $150 Test or the $2,500 Test All cash wages that you pay to an employee during the year for farmwork are subject to social security and Medicare taxes and federal income tax withholding if either of the two tests below is met. 2011 1040ez online You pay cash wages to an employee of $150 or more in a year for farmwork (count all cash wages paid on a time, piecework, or other basis). 2011 1040ez online The $150 test applies separately to each farmworker that you employ. 2011 1040ez online If you employ a family of workers, each member is treated separately. 2011 1040ez online Do not count wages paid by other employers. 2011 1040ez online The total that you pay for farmwork (cash and noncash) to all your employees is $2,500 or more during the year. 2011 1040ez online Exceptions. 2011 1040ez online   The $150 and $2,500 tests do not apply to wages that you pay to a farmworker who receives less than $150 in annual cash wages and the wages are not subject to social security and Medicare taxes, or federal income tax withholding, even if you pay $2,500 or more in that year to all of your farmworkers if the farmworker: Is employed in agriculture as a hand-harvest laborer, Is paid piece rates in an operation that is usually paid on a piece-rate basis in the region of employment, Commutes daily from his or her permanent home to the farm, and Had been employed in agriculture less than 13 weeks in the preceding calendar year. 2011 1040ez online   Amounts that you pay to these seasonal farmworkers, however, count toward the $2,500-or-more test to determine whether wages that you pay to other farmworkers are subject to social security and Medicare taxes. 2011 1040ez online Social Security and Medicare Tax Withholding The social security tax rate is 6. 2011 1040ez online 2%, for both the employee and employer, on the first $117,000 paid to each employee. 2011 1040ez online You must withhold at this rate from each employee and pay a matching amount. 2011 1040ez online The Medicare tax rate is 1. 2011 1040ez online 45% each for the employee and employer on all wages. 2011 1040ez online You must withhold at this rate from each employee and pay a matching amount. 2011 1040ez online There is no wage base limit for Medicare tax; all covered wages are subject to Medicare tax. 2011 1040ez online Social security and Medicare taxes apply to most payments of sick pay, including payments made by third parties such as insurance companies. 2011 1040ez online For details, see Publication 15-A. 2011 1040ez online Additional Medicare Tax withholding. 2011 1040ez online   In addition to withholding Medicare tax at 1. 2011 1040ez online 45%, you must withhold a 0. 2011 1040ez online 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. 2011 1040ez online You are required to begin withholding Additional Medicare Tax in the pay period in which you pay wages in excess of $200,000 to an employee and continue to withhold it each pay period until the end of the calendar year. 2011 1040ez online Additional Medicare Tax is only imposed on the employee. 2011 1040ez online There is no employer share of Additional Medicare Tax. 2011 1040ez online All wages that are subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 withholding threshold. 2011 1040ez online   For more information on what wages are subject to Medicare tax, see the chart, Special Rules for Various Types of Services and Payments, in section 15 of Publication 15 (Circular E). 2011 1040ez online For more information on Additional Medicare Tax, visit IRS. 2011 1040ez online gov and enter “Additional Medicare Tax” in the search box. 2011 1040ez online Employee share paid by employer. 2011 1040ez online   If you would rather pay a household or agricultural employee's share of the social security and Medicare taxes without withholding them from his or her wages, you may do so. 2011 1040ez online If you do not withhold the taxes, however, you must still pay them. 2011 1040ez online Any employee social security and Medicare taxes that you pay is additional income to the employee. 2011 1040ez online Include it in box 1 of the employee's Form W-2, but do not count it as social security and Medicare wages and do not include it in boxes 3 and 5. 2011 1040ez online Also, do not count the additional income as wages for FUTA tax purposes. 2011 1040ez online Different rules apply to employer payments of social security and Medicare taxes for non-household and non-agricultural employees. 2011 1040ez online See section 7 of Publication 15-A. 2011 1040ez online Withholding social security and Medicare taxes on nonresident alien employees. 2011 1040ez online   In general, if you pay wages to nonresident alien employees, you must withhold social security and Medicare taxes as you would for a U. 2011 1040ez online S. 2011 1040ez online citizen or resident alien. 2011 1040ez online However, see Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities, for exceptions to this general rule. 2011 1040ez online Also see Compensation paid to H-2A visa holders in section 3. 2011 1040ez online Religious exemption. 2011 1040ez online    An exemption from social security and Medicare taxes is available to members of a recognized religious sect opposed to public insurance. 2011 1040ez online This exemption is available only if both the employee and the employer are members of the sect. 2011 1040ez online   For more information, see Publication 517, Social Security and Other Information for Members of the Clergy and Religious Workers. 2011 1040ez online 5. 2011 1040ez online Federal Income Tax Withholding Farmers and crew leaders must withhold federal income tax from the wages of farmworkers if the wages are subject to social security and Medicare taxes. 2011 1040ez online The amount to withhold is figured on gross wages before taking out social security and Medicare taxes, union dues, insurance, etc. 2011 1040ez online You may use one of several methods to determine the amount of federal income tax withholding. 2011 1040ez online They are discussed in section 13. 2011 1040ez online Form W-4. 2011 1040ez online   To know how much federal income tax to withhold from employees' wages, you should have a Form W-4 on file for each employee. 2011 1040ez online 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. 2011 1040ez online Advise your employees to use the IRS Withholding Calculator on the IRS website at www. 2011 1040ez online irs. 2011 1040ez online gov/individuals for help in determining how many withholding allowances to claim on their Form W-4. 2011 1040ez online   Ask each new employee to give you a signed Form W-4 when starting work. 2011 1040ez online Make the form effective with the first wage payment. 2011 1040ez online If a new employee does not give you a completed Form W-4, withhold tax as if he or she is single, with no withholding allowances. 2011 1040ez online Forms in Spanish. 2011 1040ez online   You can provide Formulario W-4(SP) in place of Form W-4 to your Spanish-speaking employees. 2011 1040ez online For more information, see Publicación 17(SP). 2011 1040ez online Effective date of Form W-4. 2011 1040ez online   A Form W-4 remains in effect until the employee gives you a new one. 2011 1040ez online When you receive a new Form W-4, do not adjust withholding for pay periods before the effective date of the new form. 2011 1040ez online Do not adjust withholding retroactively. 2011 1040ez online If an employee gives you a replacement 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. 2011 1040ez online 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. 2011 1040ez online A Form W-4 that makes a change for the next calendar year will not take effect in the current calendar year. 2011 1040ez online Completing Form W-4. 2011 1040ez online   The amount of federal income tax withholding is based on marital status and withholding allowances. 2011 1040ez online Your employees may not base their withholding amounts on a fixed dollar amount or percentage. 2011 1040ez online However, the 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. 2011 1040ez online   Employees may claim fewer withholding allowances than they are entitled to claim. 2011 1040ez online They may do this to ensure that they have enough withholding or to offset other sources of taxable income that are not subject to withholding. 2011 1040ez online   See Publication 505, Tax Withholding and Estimated Tax, for more information about completing Form W-4. 2011 1040ez online Along with Form W-4, you may wish to order Publication 505 for use by your employees. 2011 1040ez online    Do not accept any withholding or estimated tax payments from your employees in addition to withholding based on their Form W-4. 2011 1040ez online If an employee wants additional withholding, he or she 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. 2011 1040ez online Exemption from federal income tax withholding. 2011 1040ez online   Generally, an employee may claim exemption from federal income tax withholding because he or she had no federal income tax liability last year and expects none this year. 2011 1040ez online See the Form W-4 instructions for more information. 2011 1040ez online However, the wages are still subject to social security and Medicare taxes. 2011 1040ez online   A Form W-4 claiming exemption from withholding is effective when it is filed with the employer and only for that calendar year. 2011 1040ez online 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. 2011 1040ez online If the employee does not give you a new Form W-4 by February 15, withhold tax based on the last valid Form W-4 you have for the employee that did not claim an exemption from withholding or, if one does not exist, withhold as if he or she is single with zero withholding allowances. 2011 1040ez online If the employee provides a new Form W-4 claiming an exemption from withholding on February 16 or later, you may apply the exemption to future wages, but do not refund taxes withheld while the exempt status was not in place. 2011 1040ez online Withholding income taxes on the wages of nonresident alien employees. 2011 1040ez online   In general, you must withhold federal income taxes on the wages of nonresident alien employees. 2011 1040ez online However, see Publication 515 for exceptions to this general rule. 2011 1040ez online Also see Compensation paid to H-2A visa workers in section 3. 2011 1040ez online Withholding adjustment for nonresident alien employees. 2011 1040ez online   A special procedure applies for figuring the amount of income tax to withhold from wages of nonresident alien employees performing services within the United States for wages paid in 2014. 2011 1040ez online This procedure requires a special chart to be used with the withholding tables to determine the amount to withhold from the wages of the nonresident alien employee. 2011 1040ez online See Withholding adjustment for nonresident alien employees in section 9 of Publication 15 (Circular E). 2011 1040ez online Nonresident alien employee's Form W-4. 2011 1040ez online   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 Korea, 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. 2011 1040ez online   If you maintain an electronic Form W-4 system, you should provide a field for nonresident alien employees to enter nonresident alien status in lieu of writing “Nonresident Alien” or “NRA” above the dotted line on line 6. 2011 1040ez online    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. 2011 1040ez online Form 8233. 2011 1040ez online   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. 2011 1040ez online See Publication 515 for details. 2011 1040ez online IRS review of requested Forms W-4. 2011 1040ez online   When requested by the IRS, you must make original Forms W-4 available for inspection by an IRS employee. 2011 1040ez online You may also be directed to send certain Forms W-4 to the IRS. 2011 1040ez online 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. 2011 1040ez online 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. 2011 1040ez online The IRS may also require you to submit copies of Form W-4 to the IRS as directed by a revenue procedure or notice published in the Internal Revenue Bulletin. 2011 1040ez online When we refer to Form W-4, the same rules apply to Formulario W-4(SP), its Spanish translation. 2011 1040ez online   After submitting a copy of the 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). 2011 1040ez online However, if the IRS later notifies you in writing that the employee is not entitled to claim a complete exemption from withholding or more than the maximum number of withholding allowances specified by the IRS in the written notice, withhold federal income tax based on the effective date, marital status, and maximum number of withholding allowances specified in the notice (commonly referred to as a “lock-in letter”). 2011 1040ez online Initial lock-in letter. 2011 1040ez online   The IRS uses information reported on Form W-2 to identify employees with withholding compliance problems. 2011 1040ez online In some cases, where a serious under-withholding problem is found to exist for a particular employee, the IRS may issue a lock-in letter to the employer specifying the maximum number of withholding allowances and marital status permitted for a specific employee. 2011 1040ez online You will also receive a copy for the employee that identifies the maximum number of withholding allowances permitted and the process by which the employee can provide additional information to the IRS for purposes of determining the appropriate number of withholding allowances. 2011 1040ez online If the employee is employed by you as of the date of the notice, you must furnish the employee copy to the employee within 10 business days of receipt. 2011 1040ez online You may follow any reasonable business practice to furnish the employee copy to the employee. 2011 1040ez online Implementation of lock-in letter. 2011 1040ez online   When you receive the notice specifying the maximum number of withholding allowances and marital status permitted, you may not withhold immediately on the basis of the notice. 2011 1040ez online You must begin withholding tax on the basis of the notice for any wages paid after the date specified in the notice. 2011 1040ez online The delay between your receipt of the notice and the date to begin the withholding on the basis of the notice permits the employee to contact the IRS. 2011 1040ez online Seasonal employees and employees not currently performing services. 2011 1040ez online   If you receive a notice for an employee who is not currently performing services for you, you are still required to furnish the employee copy to the employee and withhold based on the notice if any of the following apply. 2011 1040ez online You are paying wages for the employee's prior services and the wages are subject to income tax withholding on or after the date specified in the notice. 2011 1040ez online You reasonably expect the employee to resume services within 12 months of the date of the notice. 2011 1040ez online The employee is on a bona fide leave of absence that does not exceed 12 months or the employee has a right to reemployment after the leave of absence. 2011 1040ez online Termination and re-hire of employees. 2011 1040ez online   If you are required to furnish and withhold based on the notice and the employment relationship is terminated after the date of the notice, you must continue to withhold based on the notice if you continue to pay any wages subject to income tax withholding. 2011 1040ez online You must also withhold based on the notice or modification notice (explained next) if the employee resumes the employment relationship with you within 12 months after the termination of the employment relationship. 2011 1040ez online Modification notice. 2011 1040ez online   After issuing the notice specifying the maximum number of withholding allowances and marital status permitted, the IRS may issue a subsequent notice (modification notice) that modifies the original notice. 2011 1040ez online The modification notice may change the marital status and/or the number of withholding allowances permitted. 2011 1040ez online You must withhold federal income tax based on the effective date specified in the modification notice. 2011 1040ez online New Form W-4 after IRS notice. 2011 1040ez online   After the IRS issues a notice or modification notice, if the employee provides you with a new Form W-4 claiming complete exemption from withholding or claims a marital status, a number of withholding allowances, and any additional withholding that results in less withholding than would result under the IRS notice or modification notice, you must disregard the new Form W-4. 2011 1040ez online You are required to withhold on the basis of the notice or modification notice unless the IRS subsequently notifies you to withhold based on the new Form W-4. 2011 1040ez online If the employee wants to put a new Form W-4 into effect that results in less withholding than required, the employee must contact the IRS. 2011 1040ez online   If, after you receive an IRS notice or modification notice, your employee provides you with a new Form W-4 that does not claim exemption from federal income tax withholding and claims a marital status, a number of withholding allowances, and any additional withholding that results in more withholding than would result under the notice or modification notice, you must withhold tax on the basis of that new Form W-4. 2011 1040ez online Otherwise, disregard any subsequent Forms W-4 provided by the employee and withhold based on the IRS notice or modification notice. 2011 1040ez online Substitute Forms W-4. 2011 1040ez online   You are encouraged to have your employees use the official version of Form W-4 to claim withholding allowances or exemption from withholding. 2011 1040ez online Call the IRS at 1-800-TAX-FORM (1-800-829-3676) or visit IRS. 2011 1040ez online gov to obtain copies of Form W-4. 2011 1040ez online   You may use a substitute version of Form W-4 to meet your business needs. 2011 1040ez online However, your substitute Form W-4 must contain language that is identical to the official Form W-4 and your form must meet all current IRS rules for substitute forms. 2011 1040ez online At the time that you provide your substitute form to the employee, you must provide him or her with all tables, instructions, and worksheets from the current Form W-4. 2011 1040ez online   You cannot accept a substitute Form W-4 developed by an employee, and the employee submitting such form will be treated as failing to furnish a Form W-4. 2011 1040ez online However, continue to use any valid Forms W-4 developed by your employees that you accepted before October 11, 2007. 2011 1040ez online Invalid Forms W-4. 2011 1040ez online   Any unauthorized change or addition to Form W-4 makes it invalid. 2011 1040ez online This includes taking out any language by which the employee certifies that the form is correct. 2011 1040ez online A Form W-4 is also invalid if, by the date an employee gives it to you, he or she indicates in any way that it is false. 2011 1040ez online An employee who submits a false Form W-4 may be subject to a $500 penalty. 2011 1040ez online You may treat a Form W-4 as invalid if the employee wrote “exempt” on line 7 and also entered a number on line 5 or an amount on line 6. 2011 1040ez online   When you get an invalid Form W-4, do not use it to figure federal income tax withholding. 2011 1040ez online Tell the employee that it is invalid and ask for another one. 2011 1040ez online If the employee does not give you a valid one, withhold taxes as if the employee was single and claiming no withholding allowances. 2011 1040ez online However, if you have an earlier Form W-4 for this worker that is valid, withhold as you did before. 2011 1040ez online   For additional information about these rules, see Treasury Decision 9337, 2007-35 I. 2011 1040ez online R. 2011 1040ez online B. 2011 1040ez online 455, available at www. 2011 1040ez online irs. 2011 1040ez online gov/irb/2007-35_IRB/ar10. 2011 1040ez online html. 2011 1040ez online Amounts exempt from levy on wages, salary, and other income. 2011 1040ez online   If you receive a Notice of Levy on Wages, Salary, and Other Income—Forms 668-W(ACS), 668-W(c)(DO), or 668-W(ICS), you must withhold amounts as described in the instructions for these forms. 2011 1040ez online Publication 1494, Tables for Figuring Amount Exempt From Levy on Wages, Salary, and Other Income—Forms 668-W(ACS), 668-W(c)(DO), and 668-W(ICS), shows the exempt amount. 2011 1040ez online If a levy issued in a prior year is still in effect and the taxpayer submits a new Statement of Exemptions and Filing Status, use the current year Publication 1494 to compute the exempt amount. 2011 1040ez online How To Figure Federal Income Tax Withholding There are several ways to figure federal income tax withholding. 2011 1040ez online Wage bracket tables. 2011 1040ez online See section 13 for directions on how to use the tables. 2011 1040ez online Percentage method. 2011 1040ez online See section 13 for directions on how to use the percentage method. 2011 1040ez online Alternative formula tables for percentage method withholding. 2011 1040ez online See Publication 15-A. 2011 1040ez online Wage bracket percentage method withholding tables. 2011 1040ez online See Publication 15-A. 2011 1040ez online Other alternative methods. 2011 1040ez online See Publication 15-A. 2011 1040ez online Employers with automated payroll systems will find the two alternative formula tables and the two alternative wage bracket percentage method tables in Publication 15-A useful. 2011 1040ez online If an employee wants additional federal tax withheld, have the employee show the extra amount on Form W-4. 2011 1040ez online Supplemental wages. 2011 1040ez online   Supplemental wages are wage payments to an employee that are not regular wages. 2011 1040ez online They include, but are not limited to, bonuses, commissions, overtime pay, accumulated sick leave, severance pay, awards, prizes, back pay and retroactive pay increases for current employees, and payments for nondeductible moving expenses. 2011 1040ez online Other payments subject to the supplemental wage rules include taxable fringe benefits and expense allowances paid under a nonaccountable plan. 2011 1040ez online   If you pay supplemental wages with regular wages but do not specify the amount of each, withhold federal income tax as if the total was a single payment for a regular payroll period. 2011 1040ez online   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 federal income tax from your employee's regular wages. 2011 1040ez online If you withheld federal 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. 2011 1040ez online Withhold a flat 25% (no other percentage allowed). 2011 1040ez online If the supplemental wages are paid concurrently with regular wages, add the supplemental wages to the concurrently paid regular wages. 2011 1040ez online 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. 2011 1040ez online Figure the income tax withholding as if the total of the regular wages and supplemental wages is a single payment. 2011 1040ez online Subtract the tax withheld from the regular wages. 2011 1040ez online Withhold the remaining tax from the supplemental wages. 2011 1040ez online 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 previous supplemental wage payments, and withhold the remaining tax from the current payment of supplemental wages. 2011 1040ez online If you did not withhold federal income tax from the employee's regular wages in the current or immediately preceding calendar year, use method 1-b above. 2011 1040ez online This would occur, for example, when the value of the employee's withholding allowances claimed on Form W-4 is more than the wages. 2011 1040ez online    Separate rules apply to any supplemental wages exceeding $1 million that you pay to an individual during the year. 2011 1040ez online See section 7 in Publication 15 (Circular E) for details. 2011 1040ez online   Regardless of the method that you use to withhold federal income tax on supplemental wages, they are generally subject to social security, Medicare, and FUTA taxes. 2011 1040ez online 6. 2011 1040ez online Required Notice to Employees About Earned Income Credit (EIC) You must notify employees who have no federal income tax withheld that they may be able to claim a tax refund because of the EIC. 2011 1040ez online Although you do not have to notify employees who claim exemption from withholding on Form W-4 about the EIC, you are encouraged to notify any employees whose wages for 2013 were less than $46,227 ($51,567 if married filing jointly) that they may be eligible to claim the credit for 2013. 2011 1040ez online This is because eligible employees may get a refund of the amount of EIC that is more than the tax that they owe. 2011 1040ez online You will meet the notification requirement if you issue to the employee Form W-2 with the EIC notice on the back of Copy B, or a substitute Form W-2 with the same statement. 2011 1040ez online You may also meet the requirement by providing Notice 797, Possible Federal Tax Refund Due to the Earned Income Credit (EIC), or your own statement that contains the same wording. 2011 1040ez online If a substitute Form W-2 is given to the employee on time but does not have the required statement, you must notify the employee within 1 week of the date that the substitute Form W-2 is given. 2011 1040ez online If Form W-2 is required but is not given on time, you must give the employee Notice 797 or your written statement by the date that Form W-2 is required to be given. 2011 1040ez online If Form W-2 is not required, you must notify the employee by February 7, 2014. 2011 1040ez online 7. 2011 1040ez online Depositing Taxes Generally, you must deposit both the employer and employee shares of social security and Medicare taxes and federal income tax withheld. 2011 1040ez online You must use electronic funds transfer to make all federal tax deposits. 2011 1040ez online See How To Deposit , later in this section. 2011 1040ez online The credit against employment taxes for COBRA premium assistance payments is treated as a deposit of taxes on the first day of your return period. 2011 1040ez online For more information, see COBRA premium assistance credit under Introduction. 2011 1040ez online Payment with return. 2011 1040ez online   You may make payments with Forms 943 or 945 instead of depositing if one of the following applies. 2011 1040ez online You report less than a $2,500 tax liability for the year (Form 943, line 11; Form 945, line 3) and you pay in full with a return that is filed on time. 2011 1040ez online However, if you are unsure that you will report less than $2,500, deposit under the rules explained in this section so that you will not be subject to failure-to-deposit penalties. 2011 1040ez online You are a monthly schedule depositor and make a payment in accordance with the Accuracy of Deposits Rule discussed later in this section. 2011 1040ez online This payment may be $2,500 or more. 2011 1040ez online Only monthly schedule depositors, defined later, are allowed to make an Accuracy of Deposits Rule payment with the return. 2011 1040ez online Semiweekly schedule depositors must timely deposit the amount. 2011 1040ez online See Accuracy of Deposits Rule and How To Deposit, later in this section. 2011 1040ez online When To Deposit If you employ both farm and nonfarm workers, do not combine the taxes reportable on Forms 941 or 944 with Form 943 to decide whether to make a deposit. 2011 1040ez online See Employers of Both Farm and Nonfarm Workers, later in this section. 2011 1040ez online The rules for determining when to deposit Form 943 taxes are discussed below. 2011 1040ez online See section 10 for the separate rules that apply to FUTA tax. 2011 1040ez online Under these rules, you are classified as either a monthly schedule depositor or a semiweekly schedule depositor. 2011 1040ez online The terms “monthly schedule depositor” and “semiweekly schedule depositor” do not refer to how often your business pays its employees or how often you are required to make deposits. 2011 1040ez online The terms identify which set of rules you must follow when you incur a tax liability (for example, when you have a payday). 2011 1040ez online The deposit schedule that you must use for a calendar year is determined from the tax liability reported on your Form 943, line 9, for the lookback period, discussed next. 2011 1040ez online If you reported $50,000 or less of Form 943 taxes for the lookback period, you are a monthly schedule depositor. 2011 1040ez online If you reported more than $50,000 of Form 943 taxes for the lookback period, you are a semiweekly schedule depositor. 2011 1040ez online Lookback period. 2011 1040ez online   The lookback period is the second calendar year preceding the current calendar year. 2011 1040ez online For example, the lookback period for 2014 is 2012. 2011 1040ez online Example of deposit schedule based on lookback period. 2011 1040ez online Rose Co. 2011 1040ez online reported taxes on Form 943 as follows. 2011 1040ez online 2012 — $48,000 2013 — $60,000 Rose Co. 2011 1040ez online is a monthly schedule depositor for 2014 because its taxes for the lookback period ($48,000 for calendar year 2012) were not more than $50,000. 2011 1040ez online However, for 2015, Rose Co. 2011 1040ez online is a semiweekly schedule depositor because the total taxes before adjustment for its lookback period ($60,000 for calendar year 2013) exceeded $50,000. 2011 1040ez online Adjustments to lookback period taxes. 2011 1040ez online   To determine your taxes for the lookback period, use only the tax that you reported on the original return (Form 943, line 9). 2011 1040ez online Do not include adjustments shown on Form 943-X, Adjusted Employer's Annual Federal Tax Return for Agricultural Employees or Claim for Refund. 2011 1040ez online Example of adjustments. 2011 1040ez online An employer originally reported total tax of $45,000 for the lookback period in 2012. 2011 1040ez online The employer discovered during March 2014 that the tax reported for the lookback period was understated by $10,000 and corrected this error by filing Form 943-X. 2011 1040ez online The total tax reported in the lookback period is still $45,000. 2011 1040ez online The $10,000 adjustment is also not treated as part of the 2014 taxes. 2011 1040ez online Deposit period. 2011 1040ez online   The term “deposit period” refers to the period during which tax liabilities are accumulated for each required deposit due date. 2011 1040ez online For monthly schedule depositors, the deposit period is a calendar month. 2011 1040ez online The deposit periods for semiweekly schedule depositors are Wednesday through Friday and Saturday through Tuesday. 2011 1040ez online Monthly Deposit Schedule If the tax liability reported on Form 943, line 9, for the lookback period is $50,000 or less, you are a monthly schedule depositor for the current year. 2011 1040ez online You must deposit Form 943 taxes on payments made during a calendar month by the 15th day of the following month. 2011 1040ez online Monthly schedule example. 2011 1040ez online   Red Co. 2011 1040ez online is a seasonal employer and a monthly schedule depositor. 2011 1040ez online It pays wages each Friday. 2011 1040ez online It paid wages during August 2014, but did not pay any wages during September. 2011 1040ez online Red Co. 2011 1040ez online must deposit the combined tax liabilities for the August paydays by September 15. 2011 1040ez online Red Co. 2011 1040ez online does not have a deposit requirement for September (that is, due by October 15, 2014) because no wages were paid in September; therefore, it did not have a tax liability for September. 2011 1040ez online New employers. 2011 1040ez online   For agricultural employers, your tax liability for any year in the lookback period before the date you started or acquired your business is considered to be zero. 2011 1040ez online Therefore, you are a monthly schedule depositor for the first and second calendar years of your agricultural business (but see the $100,000 Next-Day Deposit Rule , later in this section). 2011 1040ez online Semiweekly Deposit Schedule You are a semiweekly schedule depositor for a calendar year if the tax liability on Form 943, line 9, during your lookback period was more than $50,000. 2011 1040ez online Under the semiweekly deposit schedule, deposit Form 943 taxes for payments made on Wednesday, Thursday, and/or Friday by the following Wednesday. 2011 1040ez online Deposit amounts accumulated for payments made on Saturday, Sunday, Monday, and/or Tuesday by the following Friday. 2011 1040ez online Semiweekly depositors are not required to deposit twice a week if their payments were in the same semiweekly period unless the $100,000 Next-Day Deposit Rule (discussed later in this section) applies. 2011 1040ez online For example, if you made a payment on both Wednesday and Friday and incurred taxes of $10,000 for each pay date, deposit the $20,000 by the following Wednesday. 2011 1040ez online If you made no additional payments on Saturday through Tuesday, no deposit is due on Friday. 2011 1040ez online Semiweekly schedule depositors must complete Form 943-A, Agricultural Employer's Record of Federal Tax Liability, and submit it with Form 943. 2011 1040ez online Semiweekly Deposit Schedule IF the payday falls on a. 2011 1040ez online . 2011 1040ez online . 2011 1040ez online THEN deposit taxes by the following. 2011 1040ez online . 2011 1040ez online . 2011 1040ez online Wednesday, Thursday, and/or Friday Wednesday Saturday, Sunday, Monday, and/or Tuesday Friday Semiweekly schedule example. 2011 1040ez online   Green, Inc. 2011 1040ez online , is a semiweekly schedule depositor and pays wages once each month on the last Friday of the month. 2011 1040ez online Green, Inc. 2011 1040ez online , will deposit only once a month, but the deposit will be made under the semiweekly deposit schedule as follows. 2011 1040ez online Green, Inc. 2011 1040ez online 's tax liability for the April 25, 2014 (Friday), wage payment must be deposited by April 30, 2014 (Wednesday). 2011 1040ez online Semiweekly deposit period spanning two quarters. 2011 1040ez online   If you have more than one pay date during a semiweekly period and the pay dates fall in different calendar quarters, you will need to make separate deposits for the separate liabilities. 2011 1040ez online For example, if you have a pay date on Monday, March 31, 2014 (first quarter), and another pay date on Tuesday, April 1, 2014 (second quarter), two separate deposits will be required even though the pay dates fall within the same semiweekly period. 2011 1040ez online Both deposits will be due Friday, April 4, 2014 (3 business days from the end of the semiweekly deposit period). 2011 1040ez online Deposits on Business Days Only If a deposit is required to be made on a day that is not a business day, the deposit is considered timely if it is made by the close of the next business day. 2011 1040ez online A business day is any day other than a Saturday, Sunday, or legal holiday. 2011 1040ez online For example, if a deposit is required to be made on Friday and Friday is a legal holiday, the deposit is considered timely if it is made by the following Monday (if Monday is a business day). 2011 1040ez online Semiweekly schedule depositors   will always have 3 business days to make a deposit. 2011 1040ez online That is, if any of the 3 weekdays after the end of a semiweekly period is a legal holiday, you will have an additional day for each day that is a legal holiday to make the deposit. 2011 1040ez online For example, if a semiweekly schedule depositor accumulated taxes on Friday and the following Monday is a legal holiday, the deposit normally due on Wednesday may be made on Thursday (this allows 3 business days to make the deposit). 2011 1040ez online Legal holiday. 2011 1040ez online   The term “legal holiday” means any legal holiday in the District of Columbia. 2011 1040ez online Legal holidays for 2014 are listed below. 2011 1040ez online January 1— New Year's Day January 20— Birthday of Martin Luther King, Jr. 2011 1040ez online February 17— Washington's Birthday April 16— District of Columbia Emancipation Day May 26— Memorial Day July 4— Independence Day September 1— Labor Day October 13— Columbus Day November 11— Veterans' Day November 27— Thanksgiving Day December 25— Christmas Day $100,000 Next-Day Deposit Rule If you accumulate $100,000 or more of Form 943 taxes (that is, taxes reported on Form 943, line 11) on any day during a deposit period, you must deposit the tax by the close of the next business day, whether you are a monthly or a semiweekly schedule depositor. 2011 1040ez online For purposes of the $100,000 rule, do not continue accumulating a tax liability after the end of a deposit period. 2011 1040ez online For example, if a semiweekly schedule depositor has accumulated a liability of $95,000 on a Tuesday (of a Saturday-through-Tuesday deposit period) and accumulated a $10,000 liability on Wednesday, the $100,000 next-day deposit rule does not apply because the $10,000 is accumulated in the next deposit period. 2011 1040ez online Thus, $95,000 must be deposited by Friday and $10,000 must be deposited by the following Wednesday. 2011 1040ez online However, once you accumulate at least $100,000 in a deposit period, stop accumulating at the end of that day and begin to accumulate anew on the next day. 2011 1040ez online For example, Fir Co. 2011 1040ez online is a semiweekly schedule depositor. 2011 1040ez online On Monday, Fir Co. 2011 1040ez online accumulates taxes of $110,000 and must deposit this amount on Tuesday, the next business day. 2011 1040ez online On Tuesday, Fir Co. 2011 1040ez online accumulates additional taxes of $30,000. 2011 1040ez online Because the $30,000 is not added to the previous $110,000 and is less than $100,000, Fir Co. 2011 1040ez online does not have to deposit the $30,000 until Friday (following the semiweekly deposit schedule). 2011 1040ez online If you are a monthly schedule depositor and you accumulate a $100,000 tax liability on any day, you become a semiweekly schedule depositor on the next day and remain so for at least the rest of the calendar year and for the following calendar year. 2011 1040ez online Example of the $100,000 next-day deposit rule. 2011 1040ez online   Elm, Inc. 2011 1040ez online , started its business on May 1, 2014. 2011 1040ez online Because Elm, Inc. 2011 1040ez online , is a new employer, the taxes for its lookback period are considered to be zero; therefore, Elm, Inc. 2011 1040ez online , is a monthly schedule depositor. 2011 1040ez online On May 8, Elm, Inc. 2011 1040ez online , paid wages for the first time and accumulated taxes of $50,000. 2011 1040ez online On May 9 (Friday), Elm, Inc. 2011 1040ez online , paid wages and accumulated taxes of $60,000, for a total of $110,000. 2011 1040ez online Because Elm, Inc. 2011 1040ez online , accumulated $110,000 on May 9, it must deposit $110,000 by May 12 (Monday), the next business day. 2011 1040ez online Elm, Inc. 2011 1040ez online , became a semiweekly schedule depositor on May 10. 2011 1040ez online It will be a semiweekly schedule depositor for the remainder of 2014 and for 2015. 2011 1040ez online Accuracy of Deposits Rule You are required to deposit 100% of your tax liability on or before the deposit due date. 2011 1040ez online However, penalties will not be applied for depositing less than 100% if both of the following conditions are met. 2011 1040ez online Any deposit shortfall does not exceed the greater of $100 or 2% of the amount of taxes otherwise required to be deposited. 2011 1040ez online The deposit shortfall is paid or deposited by the shortfall makeup date as described below. 2011 1040ez online Makeup Date for Deposit Shortfall:    Monthly Schedule Depositor—Deposit the shortfall or pay it with your return by the due date of your Form 943. 2011 1040ez online You may pay the shortfall with your Form 943 even if the amount is $2,500 or more. 2011 1040ez online Semiweekly Schedule Depositor—Deposit by the earlier of (a) the first Wednesday or Friday (whichever comes first) that falls on or after the 15th of the month following the month in which the shortfall occurred, or (b) the due date for Form 943. 2011 1040ez online For example, if a semiweekly schedule depositor has a deposit shortfall during February 2014, the shortfall makeup date is March 19, 2014 (Wednesday). 2011 1040ez online How To Deposit You must deposit employment taxes by electronic funds transfer. 2011 1040ez online See Payment with return , earlier in this section, for exceptions explaining when taxes may be paid with the tax return instead of being deposited. 2011 1040ez online Electronic deposit requirement. 2011 1040ez online   You must use electronic funds transfer to make all federal tax deposits (such as deposits of employment tax, excise tax, and corporate income tax). 2011 1040ez online Generally, electronic funds transfers are made using the Electronic Federal Tax Payment System (EFTPS). 2011 1040ez online If you do not want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make electronic deposits on your behalf. 2011 1040ez online   EFTPS is a free service provided by the Department of Treasury. 2011 1040ez online To get more information or to enroll in EFTPS, call 1-800-555-4477 (business), 1-800-316-6541 (individual), or 1-800-733-4829 (TDD). 2011 1040ez online You can also visit the EFTPS website at www. 2011 1040ez online eftps. 2011 1040ez online gov. 2011 1040ez online Additional information about EFTPS is also available in Publication 966. 2011 1040ez online New employers that have a federal tax obligation will be pre-enrolled in EFTPS. 2011 1040ez online Call the toll-free number located in your Employer Identification Number (EIN) Package to activate your enrollment and begin making your tax deposit payments. 2011 1040ez online See When you receive your EIN in section 1 for more information. 2011 1040ez online Deposit record. 2011 1040ez online   For your records, an Electronic Funds Transfer (EFT) Trace Number will be provided with each successful payment. 2011 1040ez online The number can be used as a receipt or to trace the payment. 2011 1040ez online Depositing on time. 2011 1040ez online   For deposits made by EFTPS to be on time, you must initiate the deposit by 8 p. 2011 1040ez online m. 2011 1040ez online Eastern time the day before the date a deposit is due. 2011 1040ez online If you use a third party to make a deposit on your behalf, they may have different cutoff times. 2011 1040ez online Same-day payment option. 2011 1040ez online   If you fail to initiate a deposit transaction on EFTPS by 8 p. 2011 1040ez online m. 2011 1040ez online Eastern time the day before the date a deposit is due, you can still make your deposit on time by using the Federal Tax Application (FTA). 2011 1040ez online To use the same-day payment method, you will need to make arrangements with your financial institution ahead of time. 2011 1040ez online Please check with your financial institution regarding availability, deadlines, and costs. 2011 1040ez online Your financial institution may charge you a fee for payments made this way. 2011 1040ez online To learn more about the information you will need to provide to your financial institution to make a same-day wire payment, visit www. 2011 1040ez online eftps. 2011 1040ez online gov to download the Same-Day Payment Worksheet. 2011 1040ez online Deposit Penalties Penalties may apply if you do not make required deposits on time or if you make deposits for less than the required amount. 2011 1040ez online The penalties do not apply if any failure to make a proper and timely deposit was due to reasonable cause and not to willful neglect. 2011 1040ez online IRS may also waive deposit penalties if you inadvertently fail to deposit in the first quarter that a deposit is due, or the first quarter during which your frequency of deposits changed, if you timely filed your employment tax return. 2011 1040ez online For amounts not properly deposited or not deposited on time, the penalty rates are shown next. 2011 1040ez online Penalty Charged for. 2011 1040ez online . 2011 1040ez online . 2011 1040ez online 2% Deposits made 1 to 5 days late. 2011 1040ez online 5% Deposits made 6 to 15 days late. 2011 1040ez online 10% Deposits made 16 or more days late. 2011 1040ez online Also applies to amounts paid within 10 days of the date of the first notice the IRS sent asking for the tax due. 2011 1040ez online 10% Amounts (that should have been deposited) paid directly to the IRS or paid with your tax return. 2011 1040ez online See Payment with return , earlier in this section, for exceptions. 2011 1040ez online 15% Amounts still unpaid more than 10 days after the date of the first notice that the IRS sent asking for the tax due or the day on which you received notice and demand for immediate payment, whichever is earlier. 2011 1040ez online Late deposit penalty amounts are determined using calendar days, starting from the due date of the liability. 2011 1040ez online Order in which deposits are applied. 2011 1040ez online   Deposits generally are applied to the most recent tax liability within the year. 2011 1040ez online If you receive a failure-to-deposit penalty notice, you may designate how your deposits are to be applied in order to minimize the amount of the penalty, if you do so within 90 days of the date of the notice. 2011 1040ez online Follow the instructions on the penalty notice that you received. 2011 1040ez online For examples on how the IRS will apply deposits and more information on designating deposits, see Revenue Procedure 2001-58. 2011 1040ez online You can find Revenue Procedure 2001-58 on page 579 of Internal Revenue Bulletin 2001-50 at www. 2011 1040ez online irs. 2011 1040ez online gov/pub/irs-irbs/irb01-50. 2011 1040ez online pdf. 2011 1040ez online Example. 2011 1040ez online Cedar, Inc. 2011 1040ez online , is required to make a deposit of $1,000 on July 15 and $1,500 on August 15. 2011 1040ez online It does not make the deposit on July 15. 2011 1040ez online On August 15, Cedar, Inc. 2011 1040ez online , deposits $2,000. 2011 1040ez online Under the deposits rule, which applies deposits to the most recent tax liability, $1,500 of the deposit is applied to the August 15 deposit and the remaining $500 is applied to the July deposit. 2011 1040ez online Accordingly, $500 of the July 15 liability remains undeposited. 2011 1040ez online The penalty on this underdeposit will apply as explained above. 2011 1040ez online Trust fund recovery penalty. 2011 1040ez online   If federal income, social security, or Medicare taxes that must be withheld are not withheld or are not deposited or paid to the United States Treasury, the trust fund recovery penalty may apply. 2011 1040ez online The penalty is the full amount of the unpaid trust fund tax. 2011 1040ez online This penalty may apply to you if these unpaid taxes cannot be immediately collected from the employer or business. 2011 1040ez online   The trust fund recovery penalty may be imposed on all persons who are determined by the IRS to be responsible for collecting, accounting for, and paying over these taxes, and who acted willfully in not doing so. 2011 1040ez online   A responsible person can be an officer or employee of a corporation, a partner or employee of a partnership, an accountant, a volunteer director/trustee, or an employee of a sole proprietorship. 2011 1040ez online A responsible person also may include one who signs checks for the business or otherwise has authority to cause the spending of business funds. 2011 1040ez online    Willfully means voluntarily, consciously, and intentionally. 2011 1040ez online A responsible person acts willfully if the person knows that the required actions of collecting, accounting for or paying over trust fund taxes are not taking place, or recklessly disregards obvious and known risks to the government's right to receive trust fund taxes. 2011 1040ez online “Average” failure-to-deposit penalty. 2011 1040ez online   IRS may assess an “averaged” failure-to-deposit penalty of 2% to 10% if you are a monthly schedule depositor and did not properly complete Form 943, line 17, when your tax liability shown on Form 943, line 11, was $2,500 or more. 2011 1040ez online IRS may also assess this penalty of 2% to 10% if you are a semiweekly schedule depositor and your tax liability shown on Form 943, line 11, was $2,500 or more and you did any of the following. 2011 1040ez online Completed Form 943, line 17, instead of Form 943-A. 2011 1040ez online Failed to attach a properly completed Form 943-A. 2011 1040ez online Completed Form 943-A incorrectly, for example, by entering tax deposits instead of tax liabilities in the numbered spaces. 2011 1040ez online   IRS figures the penalty by allocating your tax liability on Form 943, line 11, equally throughout the tax period. 2011 1040ez online Your deposits and payments may not be counted as timely because IRS does not know the actual dates of your tax liabilities. 2011 1040ez online   You can avoid the penalty by reviewing your return before filing it. 2011 1040ez online Follow these steps before filing your Form 943. 2011 1040ez online If you are a monthly schedule depositor, report your tax liabilities (not your deposits) in the monthly entry spaces on Form 943, line 17. 2011 1040ez online If you are a semiweekly schedule depositor, report your tax liabilities (not your deposits) on Form 943-A in the lines that represent the dates you paid your employees. 2011 1040ez online Verify that your total liability shown on Form 943, line 17, or Form 943-A, line M, equals your tax liability shown on Form 943, line 11. 2011 1040ez online Do not show negative amounts on Form 943, line 17, or Form 943-A. 2011 1040ez online For prior period errors discovered after December 31, 2008, do not adjust your tax liabilities reported on Form 943, line 17, or on Form 943-A. 2011 1040ez online Employers of Both Farm and Nonfarm Workers If you employ both farm and nonfarm workers, you must treat employment taxes for the farmworkers (Form 943 taxes) separately from employment taxes for the nonfarm workers (Form 941 and 944 taxes). 2011 1040ez online Form 943 taxes and Form 941/944 taxes are not combined for purposes of applying any of the deposit schedule rules. 2011 1040ez online If a deposit is due, deposi
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Department of Housing and Urban Development (HUD)

The Department of Housing and Urban Development administers programs that provide housing and community development assistance. The Department also works to ensure fair and equal housing opportunity for all.

The 2011 1040ez Online

2011 1040ez online Internal Revenue Bulletin:  2012-14  April 2, 2012  Rev. 2011 1040ez online Proc. 2011 1040ez online 2012-23 Table of Contents SECTION 1. 2011 1040ez online PURPOSE SECTION 2. 2011 1040ez online BACKGROUND SECTION 3. 2011 1040ez online SCOPE SECTION 4. 2011 1040ez online APPLICATION. 2011 1040ez online 01 Limitations on Depreciation Deductions for Certain Automobiles. 2011 1040ez online . 2011 1040ez online 02 Inclusions in Income of Lessees of Passenger Automobiles. 2011 1040ez online SECTION 5. 2011 1040ez online EFFECTIVE DATE SECTION 6. 2011 1040ez online DRAFTING INFORMATION SECTION 1. 2011 1040ez online PURPOSE This revenue procedure provides: (1) limitations on depreciation deductions for owners of passenger automobiles first placed in service by the taxpayer during calendar year 2012, including separate tables of limitations on depreciation deductions for trucks and vans; and (2) the amounts that must be included in income by lessees of passenger automobiles first leased by the taxpayer during calendar year 2012, including a separate table of inclusion amounts for lessees of trucks and vans. 2011 1040ez online The tables detailing these depreciation limitations and lessee inclusion amounts reflect the automobile price inflation adjustments required by § 280F(d)(7) of the Internal Revenue Code. 2011 1040ez online SECTION 2. 2011 1040ez online BACKGROUND . 2011 1040ez online 01 For owners of passenger automobiles, § 280F(a) imposes dollar limitations on the depreciation deduction for the year the taxpayer places the passenger automobile in service and for each succeeding year. 2011 1040ez online For passenger automobiles placed in service after 1988, § 280F(d)(7) requires the Internal Revenue Service to increase the amounts allowable as depreciation deductions by a price inflation adjustment amount. 2011 1040ez online The method of calculating this price inflation amount for trucks and vans placed in service in or after calendar year 2003 uses a different CPI “automobile component” (the “new trucks” component) than that used in the price inflation amount calculation for other passenger automobiles (the “new cars” component), resulting in somewhat higher depreciation deductions for trucks and vans. 2011 1040ez online This change reflects the higher rate of price inflation for trucks and vans since 1988. 2011 1040ez online . 2011 1040ez online 02 Section 401(a) of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, Pub. 2011 1040ez online L. 2011 1040ez online No. 2011 1040ez online 111-312, 124 Stat. 2011 1040ez online 3296 (Dec. 2011 1040ez online 17, 2010) (the “Act”) extended the 50 percent additional first year depreciation deduction under § 168(k) to qualified property acquired by the taxpayer after December 31, 2007, and before January 1, 2013, if no written binding contract for the acquisition of the property existed before January 1, 2008, and if the taxpayer places the property in service generally before January 1, 2013. 2011 1040ez online Section 168(k)(2)(F)(i) increases the first year depreciation allowed under § 280F(a)(1)(A)(i) by $8,000 for passenger automobiles to which the additional first year depreciation deduction under § 168(k) (hereinafter, referred to as “§ 168(k) additional first year depreciation deduction”) applies. 2011 1040ez online . 2011 1040ez online 03 Section 168(k)(2)(D)(i) provides that the § 168(k) additional first year depreciation deduction does not apply to any property required to be depreciated under the alternative depreciation system of § 168(g), including property described in § 280F(b)(1). 2011 1040ez online Section 168(k)(2)(D)(iii) permits a taxpayer to elect out of the § 168(k) additional first year depreciation deduction for any class of property. 2011 1040ez online Section 168(k)(4), as amended by the Act, permits a corporation to elect to increase the alternative minimum tax (“AMT”) credit limitation under § 53(c), instead of claiming the § 168(k) additional first year depreciation deduction for all eligible qualified property placed in service after December 31, 2010, that is round 2 extension property (as defined in § 168(k)(4)(I)(iv)). 2011 1040ez online Accordingly, this revenue procedure provides tables for passenger automobiles for which the § 168(k) additional first year depreciation deduction applies. 2011 1040ez online This revenue procedure also provides tables for passenger automobiles for which the § 168(k) additional first year depreciation deduction does not apply, either because taxpayer (1) purchased the passenger automobile used; (2) did not use the passenger automobile during 2012 more than 50 percent for business purposes; (3) elected out of the § 168(k) additional first year depreciation deduction pursuant to § 168(k)(2)(D)(iii); or (4) elected to increase the § 53 AMT credit limitation in lieu of claiming § 168(k) additional first year depreciation. 2011 1040ez online . 2011 1040ez online 04 Section 280F(c) requires a reduction in the deduction allowed to the lessee of a leased passenger automobile. 2011 1040ez online The reduction must be substantially equivalent to the limitations on the depreciation deductions imposed on owners of passenger automobiles. 2011 1040ez online Under § 1. 2011 1040ez online 280F-7(a) of the Income Tax Regulations, this reduction requires a lessee to include in gross income an amount determined by applying a formula to the amount obtained from a table. 2011 1040ez online One table applies to lessees of trucks and vans and another table applies to all other passenger automobiles. 2011 1040ez online Each table shows inclusion amounts for a range of fair market values for each taxable year after the passenger automobile is first leased. 2011 1040ez online SECTION 3. 2011 1040ez online SCOPE . 2011 1040ez online 01 The limitations on depreciation deductions in section 4. 2011 1040ez online 01(2) of this revenue procedure apply to passenger automobiles (other than leased passenger automobiles) that are placed in service by the taxpayer in calendar year 2012, and continue to apply for each taxable year that the passenger automobile remains in service. 2011 1040ez online . 2011 1040ez online 02 The tables in section 4. 2011 1040ez online 02 of this revenue procedure apply to leased passenger automobiles for which the lease term begins during calendar year 2012. 2011 1040ez online Lessees of these passenger automobiles must use these tables to determine the inclusion amount for each taxable year during which the passenger automobile is leased. 2011 1040ez online See Rev. 2011 1040ez online Proc. 2011 1040ez online 2007-30, 2007-1 C. 2011 1040ez online B. 2011 1040ez online 1104, for passenger automobiles first leased during calendar year 2007; Rev. 2011 1040ez online Proc. 2011 1040ez online 2008-22, 2008-1 C. 2011 1040ez online B. 2011 1040ez online 658, for passenger automobiles first leased during calendar year 2008; Rev. 2011 1040ez online Proc. 2011 1040ez online 2009-24, 2009-17 I. 2011 1040ez online R. 2011 1040ez online B. 2011 1040ez online 885, for passenger automobiles first leased during calendar year 2009; Rev. 2011 1040ez online Proc. 2011 1040ez online 2010-18, 2010-9 I. 2011 1040ez online R. 2011 1040ez online B. 2011 1040ez online 427, as amplified and modified by section 4. 2011 1040ez online 03 of Rev. 2011 1040ez online Proc. 2011 1040ez online 2011-21, 2011-12 I. 2011 1040ez online R. 2011 1040ez online B. 2011 1040ez online 560, for passenger automobiles first leased during calendar year 2010; and Rev. 2011 1040ez online Proc. 2011 1040ez online 2011-21, for passenger automobiles first leased during calendar year 2011. 2011 1040ez online SECTION 4. 2011 1040ez online APPLICATION . 2011 1040ez online 01 Limitations on Depreciation Deductions for Certain Automobiles. 2011 1040ez online (1) Amount of the inflation adjustment. 2011 1040ez online (a) Passenger automobiles (other than trucks or vans). 2011 1040ez online Under § 280F(d)(7)(B)(i), the automobile price inflation adjustment for any calendar year is the percentage (if any) by which the CPI automobile component for October of the preceding calendar year exceeds the CPI automobile component for October 1987. 2011 1040ez online Section 280F(d)(7)(B)(ii) defines the term “CPI automobile component” as the automobile component of the Consumer Price Index for all Urban Consumers published by the Department of Labor. 2011 1040ez online The new car component of the CPI was 115. 2011 1040ez online 2 for October 1987 and 143. 2011 1040ez online 419 for October 2011. 2011 1040ez online The October 2011 index exceeded the October 1987 index by 28. 2011 1040ez online 219. 2011 1040ez online Therefore, the automobile price inflation adjustment for 2012 for passenger automobiles (other than trucks and vans) is 24. 2011 1040ez online 5 percent (28. 2011 1040ez online 219/115. 2011 1040ez online 2 x 100%). 2011 1040ez online The dollar limitations in § 280F(a) are multiplied by a factor of 0. 2011 1040ez online 245, and the resulting increases, after rounding to the nearest $100, are added to the 1988 limitations to give the depreciation limitations applicable to passenger automobiles (other than trucks and vans) for calendar year 2012. 2011 1040ez online This adjustment applies to all passenger automobiles (other than trucks and vans) that are first placed in service in calendar year 2012. 2011 1040ez online (b) Trucks and vans. 2011 1040ez online To determine the dollar limitations for trucks and vans first placed in service during calendar year 2012, the Service uses the new truck component of the CPI instead of the new car component. 2011 1040ez online The new truck component of the CPI was 112. 2011 1040ez online 4 for October 1987 and 146. 2011 1040ez online 607 for October 2011. 2011 1040ez online The October 2011 index exceeded the October 1987 index by 34. 2011 1040ez online 207. 2011 1040ez online Therefore, the automobile price inflation adjustment for 2012 for trucks and vans is 30. 2011 1040ez online 43 percent (34. 2011 1040ez online 207/112. 2011 1040ez online 4 x 100%). 2011 1040ez online The dollar limitations in § 280F(a) are multiplied by a factor of 0. 2011 1040ez online 3043, and the resulting increases, after rounding to the nearest $100, are added to the 1988 limitations to give the depreciation limitations for trucks and vans. 2011 1040ez online This adjustment applies to all trucks and vans that are first placed in service in calendar year 2012. 2011 1040ez online (2) Amount of the limitation. 2011 1040ez online Tables 1 through 4 contain the dollar amount of the depreciation limitation for each taxable year for passenger automobiles a taxpayer places in service in calendar year 2012. 2011 1040ez online Use Table 1 for a passenger automobile (other than a truck or van), and Table 2 for a truck or van, placed in service in calendar year 2012 for which the § 168(k) additional first year depreciation deduction applies. 2011 1040ez online Use Table 3 for a passenger automobile (other than a truck or van), and Table 4 for a truck or van, placed in service in calendar year 2012 for which the § 168(k) additional first year depreciation deduction does not apply. 2011 1040ez online REV. 2011 1040ez online PROC. 2011 1040ez online 2012-23 TABLE 1 DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) PLACED IN SERVICE IN CALENDAR YEAR 2012 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES Tax Year Amount 1st Tax Year $11,160 2nd Tax Year $5,100 3rd Tax Year $3,050 Each Succeeding Year $1,875 REV. 2011 1040ez online PROC. 2011 1040ez online 2012-23 TABLE 2 DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS PLACED IN SERVICE IN CALENDAR YEAR 2012 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES Tax Year Amount 1st Tax Year $11,360 2nd Tax Year $5,300 3rd Tax Year $3,150 Each Succeeding Year $1,875 REV. 2011 1040ez online PROC. 2011 1040ez online 2012-23 TABLE 3 DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) PLACED IN SERVICE IN CALENDAR YEAR 2012 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION DOES NOT APPLY Tax Year Amount 1st Tax Year $3,160 2nd Tax Year $5,100 3rd Tax Year $3,050 Each Succeeding Year $1,875 REV. 2011 1040ez online PROC. 2011 1040ez online 2012-23 TABLE 4 DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS PLACED IN SERVICE IN CALENDAR YEAR 2012 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION DOES NOT APPLY Tax Year Amount 1st Tax Year $3,360 2nd Tax Year $5,300 3rd Tax Year $3,150 Each Succeeding Year $1,875 . 2011 1040ez online 02 Inclusions in Income of Lessees of Passenger Automobiles. 2011 1040ez online A taxpayer must follow the procedures in § 1. 2011 1040ez online 280F-7(a) for determining the inclusion amounts for passenger automobiles first leased in calendar year 2012. 2011 1040ez online In applying these procedures, lessees of passenger automobiles other than trucks and vans should use Table 5 of this revenue procedure, while lessees of trucks and vans should use Table 6 of this revenue procedure. 2011 1040ez online REV. 2011 1040ez online PROC. 2011 1040ez online 2012-23 TABLE 5 DOLLAR AMOUNTS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2012 Fair Market Value of Passenger Automobile Tax Year During Lease Over Not Over 1st 2nd 3rd 4th 5th & Later $18,500 $19,000 2 4 5 6 8 19,000 19,500 2 4 7 7 9 19,500 20,000 2 5 8 8 10 20,000 20,500 3 5 9 10 11 20,500 21,000 3 6 9 12 12 21,000 21,500 3 7 10 12 14 21,500 22,000 3 8 11 13 16 22,000 23,000 4 8 13 15 17 23,000 24,000 4 10 15 17 20 24,000 25,000 5 11 17 19 23 25,000 26,000 6 12 19 21 26 26,000 27,000 6 14 20 24 28 27,000 28,000 7 15 22 26 31 28,000 29,000 7 16 25 28 33 29,000 30,000 8 18 25 32 35 30,000 31,000 9 19 27 34 38 31,000 32,000 9 20 30 36 41 32,000 33,000 10 21 32 38 43 33,000 34,000 10 23 33 41 46 34,000 35,000 11 24 35 43 49 35,000 36,000 12 25 37 45 52 36,000 37,000 12 27 39 47 54 37,000 38,000 13 28 41 49 57 38,000 39,000 13 29 43 52 59 39,000 40,000 14 30 45 54 62 40,000 41,000 14 32 47 56 65 41,000 42,000 15 33 49 58 68 42,000 43,000 16 34 51 61 70 43,000 44,000 16 36 52 63 73 44,000 45,000 17 37 54 66 75 45,000 46,000 17 38 57 67 78 46,000 47,000 18 39 59 70 80 47,000 48,000 19 40 61 72 83 48,000 49,000 19 42 62 75 86 49,000 50,000 20 43 64 77 89 50,000 51,000 20 45 66 79 91 51,000 52,000 21 46 68 81 94 52,000 53,000 21 47 70 84 96 53,000 54,000 22 48 72 86 99 54,000 55,000 23 49 74 88 102 55,000 56,000 23 51 76 90 104 56,000 57,000 24 52 78 92 107 57,000 58,000 24 54 79 95 110 58,000 59,000 25 55 81 97 113 59,000 60,000 26 56 83 100 115 60,000 62,000 26 58 86 103 119 62,000 64,000 28 60 90 108 124 64,000 66,000 29 63 94 112 129 66,000 68,000 30 66 97 117 135 68,000 70,000 31 68 102 121 140 70,000 72,000 32 71 105 126 145 72,000 74,000 33 74 109 130 151 74,000 76,000 35 76 113 135 156 76,000 78,000 36 78 117 140 161 78,000 80,000 37 81 120 145 166 80,000 85,000 39 86 127 152 176 85,000 90,000 42 92 137 163 189 90,000 95,000 45 98 147 175 202 95,000 100,000 48 105 155 187 215 100,000 110,000 52 115 170 203 235 110,000 120,000 58 127 189 227 262 120,000 130,000 64 140 208 250 288 130,000 140,000 70 153 227 272 315 140,000 150,000 75 166 246 296 340 150,000 160,000 81 179 265 318 368 160,000 170,000 87 192 284 341 394 170,000 180,000 93 204 304 364 420 180,000 190,000 99 217 323 387 446 190,000 200,000 105 230 342 409 473 200,000 210,000 111 243 361 432 499 210,000 220,000 116 256 380 455 526 220,000 230,000 122 269 399 478 552 230,000 240,000 128 282 418 501 578 240,000 and up 134 294 437 524 605 REV. 2011 1040ez online PROC. 2011 1040ez online 2012-23 TABLE 6 DOLLAR AMOUNTS FOR TRUCKS AND VANS WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2012 Fair Market Value of Truck or Van Tax Year During Lease Over Not Over 1st 2nd 3rd 4th 5th & Later $19,000 $19,500 1 4 5 6 7 19,500 20,000 2 4 6 7 9 20,000 20,500 2 5 7 8 10 20,500 21,000 2 5 8 10 11 21,000 21,500 3 6 9 10 13 21,500 22,000 3 6 10 12 14 22,000 23,000 3 8 11 14 15 23,000 24,000 4 9 13 16 18 24,000 25,000 4 10 15 19 21 25,000 26,000 5 11 17 21 24 26,000 27,000 6 12 19 23 26 27,000 28,000 6 14 21 25 29 28,000 29,000 7 15 23 27 32 29,000 30,000 7 17 24 30 34 30,000 31,000 8 18 26 32 37 31,000 32,000 9 19 28 34 40 32,000 33,000 9 20 31 36 42 33,000 34,000 10 21 33 39 44 34,000 35,000 10 23 34 41 48 35,000 36,000 11 24 36 44 50 36,000 37,000 12 25 38 46 53 37,000 38,000 12 27 40 48 55 38,000 39,000 13 28 42 50 58 39,000 40,000 13 29 44 53 60 40,000 41,000 14 31 45 55 63 41,000 42,000 14 32 48 57 66 42,000 43,000 15 33 50 59 69 43,000 44,000 16 34 52 61 72 44,000 45,000 16 36 53 64 74 45,000 46,000 17 37 55 66 77 46,000 47,000 17 38 58 68 79 47,000 48,000 18 40 59 70 82 48,000 49,000 19 41 61 73 84 49,000 50,000 19 42 63 75 87 50,000 51,000 20 43 65 78 89 51,000 52,000 20 45 66 80 93 52,000 53,000 21 46 68 83 95 53,000 54,000 21 48 70 84 98 54,000 55,000 22 49 72 87 100 55,000 56,000 23 50 74 89 103 56,000 57,000 23 51 76 92 105 57,000 58,000 24 52 78 94 108 58,000 59,000 24 54 80 96 111 59,000 60,000 25 55 82 98 114 60,000 62,000 26 57 85 101 118 62,000 64,000 27 60 88 106 123 64,000 66,000 28 62 93 110 128 66,000 68,000 29 65 96 115 134 68,000 70,000 30 67 100 120 139 70,000 72,000 32 70 103 125 144 72,000 74,000 33 72 108 129 149 74,000 76,000 34 75 111 134 155 76,000 78,000 35 78 115 138 160 78,000 80,000 36 80 119 143 165 80,000 85,000 38 85 125 151 175 85,000 90,000 41 91 135 163 187 90,000 95,000 44 98 144 174 201 95,000 100,000 47 104 154 185 214 100,000 110,000 52 113 169 202 234 110,000 120,000 57 127 187 225 261 120,000 130,000 63 139 207 248 287 130,000 140,000 69 152 226 271 313 140,000 150,000 75 165 245 294 339 150,000 160,000 81 178 264 316 366 160,000 170,000 87 190 283 340 392 170,000 180,000 92 204 302 362 419 180,000 190,000 98 216 322 385 445 190,000 200,000 104 229 340 409 471 200,000 210,000 110 242 359 431 498 210,000 220,000 116 255 378 454 524 220,000 230,000 122 267 398 477 551 230,000 240,000 127 281 416 500 577 240,000 and up 133 294 435 523 603 SECTION 5. 2011 1040ez online EFFECTIVE DATE This revenue procedure applies to passenger automobiles that a taxpayer first places in service or first leases during calendar year 2012. 2011 1040ez online SECTION 6. 2011 1040ez online DRAFTING INFORMATION The principal author of this revenue procedure is Bernard P. 2011 1040ez online Harvey of the Office of Associate Chief Counsel (Income Tax & Accounting). 2011 1040ez online For further information regarding this revenue procedure, contact Mr. 2011 1040ez online Harvey at (202) 622-4930 (not a toll-free call). 2011 1040ez online Prev  Up  Next   Home   More Internal Revenue Bulletins