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2012 Free Tax Filing

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2012 Free Tax Filing

2012 free tax filing 4. 2012 free tax filing   Communications and Air Transportation Taxes Table of Contents Uncollected Tax Report Communications TaxLocal-only service. 2012 free tax filing Private communication service. 2012 free tax filing Exemptions Credits or Refunds Air Transportation TaxesTransportation of Persons by Air International Air Travel Facilities Transportation of Property by Air Special Rules on Transportation Taxes Excise taxes are imposed on amounts paid for certain facilities and services. 2012 free tax filing If you receive any payment on which tax is imposed, you are required to collect the tax, file returns, and pay the tax over to the government. 2012 free tax filing If you fail to collect and pay over the taxes, you may be liable for the trust fund recovery penalty. 2012 free tax filing See chapter 14, later. 2012 free tax filing Uncollected Tax Report A separate report is required to be filed by collecting agents of communications services and air transportation taxes if the person from whom the facilities or services tax (the tax) is required to be collected (the taxpayer) refuses to pay the tax, or it is impossible for the collecting agent to collect the tax. 2012 free tax filing The report must contain the name and address of the taxpayer, the type of facility provided or service rendered, the amount paid for the facility or service (the amount on which the tax is based), and the date paid. 2012 free tax filing Regular method taxpayers. 2012 free tax filing   For regular method taxpayers, the report must be filed by the due date of the Form 720 on which the tax would have been reported. 2012 free tax filing Alternative method taxpayers. 2012 free tax filing   For alternative method taxpayers, the report must be filed by the due date of the Form 720 that includes an adjustment to the separate account for the uncollected tax. 2012 free tax filing See Alternative method in  chapter 11. 2012 free tax filing Where to file. 2012 free tax filing    Do not file the uncollected tax report with Form 720. 2012 free tax filing Instead, mail the report to: Internal Revenue Service Excise Tax Program SE:S:SP:EX MS C9-109 5000 Ellin Rd. 2012 free tax filing  Lanham, MD 20706 Communications Tax A 3% tax is imposed on amounts paid for local telephone service and teletypewriter exchange service. 2012 free tax filing Local telephone service. 2012 free tax filing   This includes access to a local telephone system and the privilege of telephonic quality communication with most people who are part of the system. 2012 free tax filing Local telephone service also includes any facility or services provided in connection with this service. 2012 free tax filing The tax applies to lease payments for certain customer premises equipment (CPE) even though the lessor does not also provide access to a local telecommunications system. 2012 free tax filing Local-only service. 2012 free tax filing   Local-only service is local telephone service as described above, provided under a plan that does not include long distance telephone service or that separately states the charge for local service on the bill to customers. 2012 free tax filing Local-only service also includes any facility or services provided in connection with this service, even though these services and facilities may also be used with long-distance service. 2012 free tax filing Private communication service. 2012 free tax filing   Private communication service is not local telephone service. 2012 free tax filing Private communication service includes accessory-type services provided in connection with a Centrex, PBX, or other similar system for dual use accessory equipment. 2012 free tax filing However, the charge for the service must be stated separately from the charge for the basic system, and the accessory must function, in whole or in part, in connection with intercommunication among the subscriber's stations. 2012 free tax filing Teletypewriter exchange service. 2012 free tax filing   This includes access from a teletypewriter or other data station to a teletypewriter exchange system and the privilege of intercommunication by that station with most persons having teletypewriter or other data stations in the same exchange system. 2012 free tax filing Figuring the tax. 2012 free tax filing   The tax is based on the sum of all charges for local telephone service included in the bill. 2012 free tax filing However, if the bill groups individual items for billing and tax purposes, the tax is based on the sum of the individual items within that group. 2012 free tax filing The tax on the remaining items not included in any group is based on the charge for each item separately. 2012 free tax filing Do not include in the tax base state or local sales or use taxes that are separately stated on the taxpayer's bill. 2012 free tax filing Exemptions Payments for certain services or payments from certain users are exempt from the communications tax. 2012 free tax filing Nontaxable service. 2012 free tax filing   Nontaxable service means bundled service and long distance service. 2012 free tax filing Nontaxable service also includes pre-paid telephone cards and pre-paid cellular service. 2012 free tax filing Bundled service. 2012 free tax filing   Bundled service is local and long distance service provided under a plan that does not separately state the charge for the local telephone service. 2012 free tax filing Bundled service includes plans that provide both local and long distance service for either a flat monthly fee or a charge that varies with the elapsed transmission time for which the service is used. 2012 free tax filing Telecommunications companies provide bundled service for both landlines and wireless (cellular) service. 2012 free tax filing If Voice over Internet Protocol service provides both local and long distance service and the charges are not separately stated, such service is bundled service. 2012 free tax filing   The method for sending or receiving a call, such as on a landline telephone, wireless (cellular), or some other method, does not affect whether a service is local-only or bundled. 2012 free tax filing Long distance service. 2012 free tax filing   Long distance service is telephonic quality communication with persons whose telephones are outside the local telephone system of the caller. 2012 free tax filing Pre-paid telephone cards (PTC). 2012 free tax filing   A PTC will be treated as bundled service unless a PTC expressly states it is for local-only service. 2012 free tax filing Generally, the person responsible for collecting the tax is the carrier who transfers the PTC to the transferee. 2012 free tax filing The transferee is the first person that is not a carrier to whom a PTC is transferred by the carrier. 2012 free tax filing The transferee is the person liable for the tax and is eligible to request a credit or refund. 2012 free tax filing For more information, see Regulations section 49. 2012 free tax filing 4251-4. 2012 free tax filing   The holder is the person that purchases a PTC to use and not to resell. 2012 free tax filing Holders are not liable for the tax and cannot request a credit or refund. 2012 free tax filing Pre-paid cellular telephones. 2012 free tax filing   Rules similar to the PTC rules described above apply to pre-paid cellular telephones. 2012 free tax filing The transferee is the person eligible to request the credit or refund. 2012 free tax filing Installation charges. 2012 free tax filing   The tax does not apply to payments received for the installation of any instrument, wire, pole, switchboard, apparatus, or equipment. 2012 free tax filing However, the tax does apply to payments for the repair or replacement of those items incidental to ordinary maintenance. 2012 free tax filing Answering services. 2012 free tax filing   The tax does not apply to amounts paid for a private line, an answering service, and a one-way paging or message service if they do not provide access to a local telephone system and the privilege of telephonic communication as part of the local telephone system. 2012 free tax filing Mobile radio telephone service. 2012 free tax filing   The tax does not apply to payments for a two-way radio service that does not provide access to a local telephone system. 2012 free tax filing Coin-operated telephones. 2012 free tax filing   The tax for local telephone service does not apply to payments made for services by inserting coins in public coin-operated telephones. 2012 free tax filing But the tax applies if the coin-operated telephone service is furnished for a guaranteed amount. 2012 free tax filing Figure the tax on the amount paid under the guarantee plus any fixed monthly or other periodic charge. 2012 free tax filing Telephone-operated security systems. 2012 free tax filing   The tax does not apply to amounts paid for telephones used only to originate calls to a limited number of telephone stations for security entry into a building. 2012 free tax filing In addition, the tax does not apply to any amounts paid for rented communication equipment used in the security system. 2012 free tax filing News services. 2012 free tax filing   The tax on teletypewriter exchange service does not apply to charges for the following news services. 2012 free tax filing Services dealing exclusively with the collection or dissemination of news for or through the public press or radio or television broadcasting. 2012 free tax filing Services used exclusively in the collection or dissemination of news by a news ticker service furnishing a general news service similar to that of the public press. 2012 free tax filing This exemption applies to payments received for messages from one member of the news media to another member (or to or from their bona fide correspondents). 2012 free tax filing For the exemption to apply, the charge for these services must be billed in writing to the person paying for the service and that person must certify in writing that the services are used for an exempt purpose. 2012 free tax filing Services not exempted. 2012 free tax filing   The tax applies to amounts paid by members of the news media for local telephone service. 2012 free tax filing International organizations and the American Red Cross. 2012 free tax filing   The tax does not apply to communication services furnished to an international organization or to the American National Red Cross. 2012 free tax filing Nonprofit hospitals. 2012 free tax filing   The tax does not apply to telephone services furnished to income tax-exempt nonprofit hospitals for their use. 2012 free tax filing Also, the tax does not apply to amounts paid by these hospitals to provide local telephone service in the homes of their personnel who must be reached during their off-duty hours. 2012 free tax filing Nonprofit educational organizations. 2012 free tax filing   The tax does not apply to payments received for services and facilities furnished to a nonprofit educational organization for its use. 2012 free tax filing A nonprofit educational organization is one that satisfies all the following requirements. 2012 free tax filing It normally maintains a regular faculty and curriculum. 2012 free tax filing It normally has a regularly enrolled body of pupils or students in attendance at the place where its educational activities are regularly carried on. 2012 free tax filing It is exempt from income tax under section 501(a). 2012 free tax filing This includes a school operated by an organization exempt under section 501(c)(3) if the school meets the above qualifications. 2012 free tax filing Qualified blood collector organizations. 2012 free tax filing   The tax does not apply to telephone services furnished to qualified blood collector organizations for their use. 2012 free tax filing A qualified blood collector organization is one that is: Described in section 501(c)(3) and exempt from tax under section 501(a), Primarily engaged in the activity of collecting human blood, Registered with the IRS, and Registered by the Food and Drug Administration to collect blood. 2012 free tax filing Federal, state, and local government. 2012 free tax filing   The tax does not apply to communication services provided to the government of the United States, the government of any state or its political subdivisions, the District of Columbia, or the United Nations. 2012 free tax filing Treat an Indian tribal government as a state for the exemption from the communications tax only if the services involve the exercise of an essential tribal government function. 2012 free tax filing Exemption certificate. 2012 free tax filing   Any form of exemption certificate will be acceptable if it includes all the information required by the Internal Revenue Code and Regulations. 2012 free tax filing See Regulations section 49. 2012 free tax filing 4253-11. 2012 free tax filing File the certificate with the provider of the communication services. 2012 free tax filing An exemption certificate is not required for nontaxable services. 2012 free tax filing   The following users that are exempt from the communications tax do not have to file an annual exemption certificate after they have filed the initial certificate to claim an exemption from the communications tax. 2012 free tax filing The American National Red Cross and other international organizations. 2012 free tax filing Nonprofit hospitals. 2012 free tax filing Nonprofit educational organizations. 2012 free tax filing Qualified blood collector organizations. 2012 free tax filing State and local governments. 2012 free tax filing   The federal government does not have to file any exemption certificate. 2012 free tax filing   All other organizations must furnish exemption certificates when required. 2012 free tax filing Credits or Refunds If tax is collected and paid over for nontaxable services, or for certain services or users exempt from the communications tax, the collector or taxpayer may claim a credit or refund if it has repaid the tax to the person from whom the tax was collected or obtained the consent of that person to the allowance of the credit or refund. 2012 free tax filing Alternatively, the person who paid the tax may claim a refund. 2012 free tax filing For more information on how to file for credits or refunds, see the Instructions for Form 720 or Form 8849. 2012 free tax filing Collectors. 2012 free tax filing   The collector may request a credit or refund if it has repaid the tax to the person from whom the tax was collected, or obtained the consent of that person to the allowance of the credit or refund. 2012 free tax filing These requirements also apply to nontaxable service refunds. 2012 free tax filing Collectors using the regular method for deposits. 2012 free tax filing   Collectors using the regular method for deposits must use Form 720X to request a credit or refund if the collector has repaid the tax to the person from whom the tax was collected, or obtained the consent of that person to the allowance of the credit or refund. 2012 free tax filing Collectors using the alternative method for deposits. 2012 free tax filing   Collectors using the alternative method for deposits must adjust their separate accounts for the credit or refund if it has repaid the tax to the person from whom the tax was collected, or obtained the consent of that person to the allowance of the credit or refund. 2012 free tax filing For more information, see the Instructions for Form 720. 2012 free tax filing Air Transportation Taxes Taxes are imposed on amounts paid for: Transportation of persons by air, Use of international air travel facilities, and Transportation of property by air. 2012 free tax filing Transportation of Persons by Air The tax on transportation of persons by air is made up of the: Percentage tax, and Domestic-segment tax. 2012 free tax filing Percentage tax. 2012 free tax filing   A tax of 7. 2012 free tax filing 5% applies to amounts paid for taxable transportation of persons by air. 2012 free tax filing Amounts paid for transportation include charges for layover or waiting time and movement of aircraft in deadhead service. 2012 free tax filing Mileage awards. 2012 free tax filing   The percentage tax may apply to an amount paid (in cash or in kind) to an air carrier (or any related person) for the right to provide mileage awards for, or other reductions in the cost of, any transportation of persons by air. 2012 free tax filing For example, this applies to mileage awards purchased by credit card companies, telephone companies, restaurants, hotels, and other businesses. 2012 free tax filing   Generally, the percentage tax does not apply to amounts paid for mileage awards where the mileage awards cannot, under any circumstances, be redeemed for air transportation that is subject to the tax. 2012 free tax filing Until regulations are issued, the following rules apply to mileage awards. 2012 free tax filing Amounts paid for mileage awards that cannot be redeemed for taxable transportation beginning and ending in the United States are not subject to the tax. 2012 free tax filing For this rule, mileage awards issued by a foreign air carrier are considered to be usable only on that foreign air carrier and thus not redeemable for taxable transportation beginning and ending in the United States. 2012 free tax filing Therefore, amounts paid to a foreign air carrier for mileage awards are not subject to the tax. 2012 free tax filing Amounts paid by an air carrier to a domestic air carrier for mileage awards that can be redeemed for taxable transportation are not subject to the tax to the extent those miles will be awarded in connection with the purchase of taxable transportation. 2012 free tax filing Amounts paid by an air carrier to a domestic air carrier for mileage awards that can be redeemed for taxable transportation are subject to the tax to the extent those miles will not be awarded in connection with the purchase of taxable transportation. 2012 free tax filing Domestic-segment tax. 2012 free tax filing   The domestic-segment tax is a flat dollar amount for each segment of taxable transportation for which an amount is paid. 2012 free tax filing However, see Rural airports, later. 2012 free tax filing A segment is a single takeoff and a single landing. 2012 free tax filing The amount of the domestic-segment tax is in the Instructions for Form 720. 2012 free tax filing Charter flights. 2012 free tax filing    If an aircraft is chartered, the domestic-segment tax for each segment of taxable transportation is figured by multiplying the tax by the number of passengers transported on the aircraft. 2012 free tax filing Rural airports. 2012 free tax filing   The domestic-segment tax does not apply to a segment to or from a rural airport. 2012 free tax filing An airport is a rural airport for a calendar year if fewer than 100,000 commercial passengers departed from the airport by air during the second preceding calendar year (the 100,000 passenger rule), and one of the following is true: The airport is not located within 75 miles of another airport from which 100,000 or more commercial passengers departed during the second preceding calendar year, The airport was receiving essential air service subsidies as of August 5, 1997, or The airport is not connected by paved roads to another airport. 2012 free tax filing   To apply the 100,000 passenger rule to any airport described in (3) above, only count commercial passengers departing from the airport by air on flight segments of at least 100 miles. 2012 free tax filing   An updated list of rural airports can be found on the Department of Transportation website at www. 2012 free tax filing dot. 2012 free tax filing gov and enter the phrase “Essential Air Service” in the search box. 2012 free tax filing Taxable transportation. 2012 free tax filing   Taxable transportation is transportation by air that meets either of the following tests. 2012 free tax filing It begins and ends either in the United States or at any place in Canada or Mexico not more than 225 miles from the nearest point on the continental United States boundary (this is the 225-mile zone). 2012 free tax filing It is directly or indirectly from one port or station in the United States to another port or station in the United States, but only if it is not a part of uninterrupted international air transportation, discussed later. 2012 free tax filing Round trip. 2012 free tax filing   A round trip is considered two separate trips. 2012 free tax filing The first trip is from the point of departure to the destination. 2012 free tax filing The second trip is the return trip from that destination. 2012 free tax filing Uninterrupted international air transportation. 2012 free tax filing   This means transportation entirely by air that does not begin and end in the United States or in the 225-mile zone if there is not more than a 12-hour scheduled interval between arrival and departure at any station in the United States. 2012 free tax filing For a special rule that applies to military personnel, see Exemptions, later. 2012 free tax filing Transportation between the continental U. 2012 free tax filing S. 2012 free tax filing and Alaska or Hawaii. 2012 free tax filing   This transportation is partially exempt from the tax on transportation of persons by air. 2012 free tax filing The tax does not apply to the part of the trip between the point at which the route of transportation leaves or enters the continental United States (or a port or station in the 225-mile zone) and the point at which it enters or leaves Hawaii or Alaska. 2012 free tax filing Leaving or entering occurs when the route of the transportation passes over either the United States border or a point 3 nautical miles (3. 2012 free tax filing 45 statute miles) from low tide on the coast line, or when it leaves a port or station in the 225-mile zone. 2012 free tax filing Therefore, this transportation is subject to the percentage tax on the part of the trip in U. 2012 free tax filing S. 2012 free tax filing airspace, the domestic-segment tax for each domestic segment, and the tax on the use of international air travel facilities, discussed later. 2012 free tax filing Transportation within Alaska or Hawaii. 2012 free tax filing   The tax on transportation of persons by air applies to the entire fare paid in the case of flights between any of the Hawaiian Islands, and between any ports or stations in the Aleutian Islands or other ports or stations elsewhere in Alaska. 2012 free tax filing The tax applies even though parts of the flights may be over international waters or over Canada, if no point on the direct line of transportation between the ports or stations is more than 225 miles from the United States (Hawaii or Alaska). 2012 free tax filing Package tours. 2012 free tax filing   The air transportation taxes apply to “complimentary” air transportation furnished solely to participants in package holiday tours. 2012 free tax filing The amount paid for these package tours includes a charge for air transportation even though it may be advertised as “free. 2012 free tax filing ” This rule also applies to the tax on the use of international air travel facilities, discussed later. 2012 free tax filing Liability for tax. 2012 free tax filing   The person paying for taxable transportation is liable for the tax and, ordinarily, the person receiving the payment collects the tax, files the returns, and pays the tax over to the government. 2012 free tax filing However, if payment is made outside the United States for a prepaid order, exchange order, or similar order, the person furnishing the initial transportation provided for under that order must collect the tax. 2012 free tax filing    A travel agency that is an independent broker and sells tours on aircraft that it charters must collect the transportation tax, file the returns, and pay the tax over to the government. 2012 free tax filing However, a travel agency that sells tours as the agent of an airline must collect the tax and remit it to the airline for the filing of returns and for the payment of the tax over to the government. 2012 free tax filing An independent third party that is not under the airline's supervision or control, but is acting on behalf of, and receiving compensation from, a passenger, is not required to collect the tax and pay it to the government. 2012 free tax filing For more information on resellers of air transportation, see Revenue Ruling 2006-52. 2012 free tax filing You can find Revenue Ruling 2006-52 on page 761 of I. 2012 free tax filing R. 2012 free tax filing B. 2012 free tax filing 2006-43 at www. 2012 free tax filing irs. 2012 free tax filing gov/pub/irs-irbs/irb06-43. 2012 free tax filing pdf. 2012 free tax filing   The fact that the aircraft does not use public or commercial airports in taking off and landing has no effect on the tax. 2012 free tax filing But see Certain helicopter uses, later. 2012 free tax filing   For taxable transportation that begins and ends in the United States, the tax applies regardless of whether the payment is made in or outside the United States. 2012 free tax filing   If the tax is not paid when payment for the transportation is made, the air carrier providing the initial segment of the transportation that begins or ends in the United States becomes liable for the tax. 2012 free tax filing Exemptions. 2012 free tax filing   The tax on transportation of persons by air does not apply in the following situations. 2012 free tax filing See also Special Rules on Transportation Taxes, later. 2012 free tax filing Military personnel on international trips. 2012 free tax filing   When traveling in uniform at their own expense, United States military personnel on authorized leave are deemed to be traveling in uninterrupted international air transportation (defined earlier) even if the scheduled interval between arrival and departure at any station in the United States is actually more than 12 hours. 2012 free tax filing However, such personnel must buy their tickets within 12 hours after landing at the first domestic airport and accept the first available accommodation of the type called for by their tickets. 2012 free tax filing The trip must begin or end outside the United States and the 225-mile zone. 2012 free tax filing Certain helicopter uses. 2012 free tax filing   The tax does not apply to air transportation by helicopter if the helicopter is used for any of the following purposes. 2012 free tax filing Transporting individuals, equipment, or supplies in the exploration for, or the development or removal of, hard minerals, oil, or gas. 2012 free tax filing Planting, cultivating, cutting, transporting, or caring for trees (including logging operations). 2012 free tax filing Providing emergency medical transportation. 2012 free tax filing   However, during a use described in items (1) or (2), the tax applies if the helicopter takes off from, or lands at, a facility eligible for assistance under the Airport and Airway Development Act of 1970, or otherwise uses services provided under section 44509 or 44913(b) or subchapter I of chapter 471 of title 49, United States Code. 2012 free tax filing For item (1), treat each flight segment as a separate flight. 2012 free tax filing Fixed-wing aircraft uses. 2012 free tax filing   The tax does not apply to air transportation by fixed-wing aircraft if the fixed-wing aircraft is used for any of the following purposes. 2012 free tax filing Planting, cultivating, cutting, transporting, or caring for trees (including logging operations). 2012 free tax filing Providing emergency medical transportation. 2012 free tax filing The aircraft must be equipped for and exclusively dedicated on that flight to acute care emergency medical services. 2012 free tax filing   However, during a use described in item (1), the tax applies if the fixed-wing aircraft takes off from, or lands at, a facility eligible for assistance under the Airport and Airway Development Act of 1970, or otherwise uses services provided under section 44509 or 44913(b) or subchapter I of chapter 471 of title 49, United States Code. 2012 free tax filing Skydiving. 2012 free tax filing   The tax does not apply to any air transportation exclusively for the purpose of skydiving. 2012 free tax filing Seaplanes. 2012 free tax filing   The tax does not apply to any air transportation by seaplane for any segment consisting of a takeoff from, and a landing on, water if the places where the takeoff and landing occur are not receiving financial assistance from the Airport and Airways Trust Fund. 2012 free tax filing Bonus tickets. 2012 free tax filing   The tax does not apply to free bonus tickets issued by an airline company to its customers who have satisfied all requirements to qualify for the bonus tickets. 2012 free tax filing However, the tax applies to amounts paid by customers for advance bonus tickets when customers have traveled insufficient mileage to fully qualify for the free advance bonus tickets. 2012 free tax filing International Air Travel Facilities A tax per person is imposed (whether in or outside the United States) for international flights that begin or end in the United States. 2012 free tax filing However, for a domestic segment that begins or ends in Alaska or Hawaii, a reduced tax per person applies only to departures. 2012 free tax filing This tax does not apply if all the transportation is subject to the percentage tax, discussed earlier. 2012 free tax filing It also doesn't apply if the surtax on fuel used in a fractional ownership program aircraft (discussed earlier) is imposed. 2012 free tax filing See the Instructions for Form 720 for the tax rates. 2012 free tax filing Transportation of Property by Air A tax of 6. 2012 free tax filing 25% is imposed on amounts paid (whether in or outside the United States) for transportation of property by air. 2012 free tax filing The fact that the aircraft may not use public or commercial airports in taking off and landing has no effect on the tax. 2012 free tax filing The tax applies only to amounts paid to a person engaged in the business of transporting property by air for hire. 2012 free tax filing The tax applies only to transportation (including layover time and movement of aircraft in deadhead service) that begins and ends in the United States. 2012 free tax filing Thus, the tax does not apply to transportation of property by air that begins or ends outside the United States. 2012 free tax filing Exemptions. 2012 free tax filing   The tax on transportation of property by air does not apply in the following situations. 2012 free tax filing See also Special Rules on Transportation Taxes, later. 2012 free tax filing Cropdusting and firefighting service. 2012 free tax filing   The tax does not apply to amounts paid for cropdusting or aerial firefighting service. 2012 free tax filing Exportation. 2012 free tax filing    The tax does not apply to payments for transportation of property by air in the course of exportation (including to United States possessions) by continuous movement, as evidenced by the execution of Form 1363, Export Exemption Certificate. 2012 free tax filing See Form 1363 for more information. 2012 free tax filing Certain helicopter and fixed-wing air ambulance uses. 2012 free tax filing   The tax does not apply to amounts paid for the use of helicopters in construction to set heating and air conditioning units on roofs of buildings, to dismantle tower cranes, and to aid in construction of power lines and ski lifts. 2012 free tax filing   The tax also does not apply to air transportation by helicopter or fixed-wing aircraft for the purpose of providing emergency medical services. 2012 free tax filing The fixed-wing aircraft must be equipped for and exclusively dedicated on that flight to acute care emergency medical services. 2012 free tax filing Skydiving. 2012 free tax filing   The tax does not apply to any air transportation exclusively for the purpose of skydiving. 2012 free tax filing Excess baggage. 2012 free tax filing    The tax does not apply to excess baggage accompanying a passenger on an aircraft operated on an established line. 2012 free tax filing Surtax on fuel used in a fractional ownership program aircraft. 2012 free tax filing   The tax does not apply if the surtax on fuel used in a fractional ownership program aircraft (discussed earlier) is imposed. 2012 free tax filing Alaska and Hawaii. 2012 free tax filing   For transportation of property to and from Alaska and Hawaii, the tax in general does not apply to the portion of the transportation that is entirely outside the continental United States (or the 225-mile zone if the aircraft departs from or arrives at an airport in the 225-mile zone). 2012 free tax filing But the tax applies to flights between ports or stations in Alaska and the Aleutian Islands, as well as between ports or stations in Hawaii. 2012 free tax filing The tax applies even though parts of the flights may be over international waters or over Canada, if no point on a line drawn from where the route of transportation leaves the United States (Alaska) to where it reenters the United States (Alaska) is more than 225 miles from the United States. 2012 free tax filing Liability for tax. 2012 free tax filing   The person paying for taxable transportation is liable for the tax and, ordinarily, the person engaged in the business of transporting property by air for hire receives the payment, collects the tax, files the returns, and pays the tax over to the government. 2012 free tax filing   If tax is not paid when a payment is made outside the United States, the person furnishing the last segment of taxable transportation collects the tax from the person to whom the property is delivered in the United States. 2012 free tax filing Special Rules on Transportation Taxes In certain circumstances, special rules apply to the taxes on transportation of persons and property by air. 2012 free tax filing Aircraft used by affiliated corporations. 2012 free tax filing   The taxes do not apply to payments received by one member of an affiliated group of corporations from another member for services furnished in connection with the use of an aircraft. 2012 free tax filing However, the aircraft must be owned or leased by a member of the affiliated group and cannot be available for hire by a nonmember of the affiliated group. 2012 free tax filing Determine whether an aircraft is available for hire by a nonmember of an affiliated group on a flight-by-flight basis. 2012 free tax filing   For this rule, an affiliated group of corporations is any group of corporations connected with a common parent corporation through 80% or more of stock ownership. 2012 free tax filing Small aircraft. 2012 free tax filing   The taxes do not apply to transportation furnished by an aircraft having a maximum certificated takeoff weight of 6,000 pounds or less. 2012 free tax filing However, the taxes do apply if the aircraft is operated on an established line. 2012 free tax filing “Operated on an established line” means the aircraft operates with some degree of regularity between definite points. 2012 free tax filing However, it does not include any time an aircraft is being operated on a flight that is solely for sightseeing. 2012 free tax filing   Consider an aircraft to be operated on an established line if it is operated on a charter basis between two cities also served by that carrier on a regularly scheduled basis. 2012 free tax filing   Also, the taxes apply if the aircraft is jet-powered, regardless of its maximum certificated takeoff weight or whether or not it is operated on an established line. 2012 free tax filing Mixed load of persons and property. 2012 free tax filing   If a single amount is paid for air transportation of persons and property, the payment must be allocated between the amount subject to the tax on transportation of persons and the amount subject to the tax on transportation of property. 2012 free tax filing The allocation must be reasonable and supported by adequate records. 2012 free tax filing Credits or refunds. 2012 free tax filing   If tax is collected and paid over for air transportation that is not taxable air transportation, the collector may claim a credit or refund if it has repaid the tax to the person from whom the tax was collected or obtained the consent of that person to the allowance of the credit or refund. 2012 free tax filing Alternatively, the person who paid the tax may claim a refund. 2012 free tax filing For information on how to file for credits or refunds, see the Instructions for Form 720 or Form 8849. 2012 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The 2012 Free Tax Filing

2012 free tax filing 4. 2012 free tax filing   Tax Withholding and Estimated Tax Table of Contents What's New for 2014 Reminders Introduction Useful Items - You may want to see: Tax Withholding for 2014Salaries and Wages Tips Taxable Fringe Benefits Sick Pay Pensions and Annuities Gambling Winnings Unemployment Compensation Federal Payments Backup Withholding Estimated Tax for 2014Who Does Not Have To Pay Estimated Tax Who Must Pay Estimated Tax How To Figure Estimated Tax When To Pay Estimated Tax How To Figure Each Payment How To Pay Estimated Tax Credit for Withholding and Estimated Tax for 2013Withholding Estimated Tax Underpayment Penalty for 2013 What's New for 2014 Tax law changes for 2014. 2012 free tax filing  When you figure how much income tax you want withheld from your pay and when you figure your estimated tax, consider tax law changes effective in 2014. 2012 free tax filing For more information, see Publication 505. 2012 free tax filing Reminders Estimated tax safe harbor for higher income taxpayers. 2012 free tax filing  If your 2013 adjusted gross income was more than $150,000 ($75,000 if you are married filing a separate return), you must pay the smaller of 90% of your expected tax for 2014 or 110% of the tax shown on your 2013 return to avoid an estimated tax penalty. 2012 free tax filing Introduction This chapter discusses how to pay your tax as you earn or receive income during the year. 2012 free tax filing In general, the federal income tax is a pay-as-you-go tax. 2012 free tax filing There are two ways to pay as you go. 2012 free tax filing Withholding. 2012 free tax filing If you are an employee, your employer probably withholds income tax from your pay. 2012 free tax filing Tax also may be withheld from certain other income, such as pensions, bonuses, commissions, and gambling winnings. 2012 free tax filing The amount withheld is paid to the IRS in your name. 2012 free tax filing Estimated tax. 2012 free tax filing If you do not pay your tax through withholding, or do not pay enough tax that way, you may have to pay estimated tax. 2012 free tax filing People who are in business for themselves generally will have to pay their tax this way. 2012 free tax filing Also, you may have to pay estimated tax if you receive income such as dividends, interest, capital gains, rent, and royalties. 2012 free tax filing Estimated tax is used to pay not only income tax, but self-employment tax and alternative minimum tax as well. 2012 free tax filing This chapter explains these methods. 2012 free tax filing In addition, it also explains the following. 2012 free tax filing Credit for withholding and estimated tax. 2012 free tax filing When you file your 2013 income tax return, take credit for all the income tax withheld from your salary, wages, pensions, etc. 2012 free tax filing , and for the estimated tax you paid for 2013. 2012 free tax filing Also take credit for any excess social security or railroad retirement tax withheld (discussed in chapter 37). 2012 free tax filing Underpayment penalty. 2012 free tax filing If you did not pay enough tax during the year, either through withholding or by making estimated tax payments, you may have to pay a penalty. 2012 free tax filing In most cases, the IRS can figure this penalty for you. 2012 free tax filing See Underpayment Penalty for 2013 at the end of this chapter. 2012 free tax filing Useful Items - You may want to see: Publication 505 Tax Withholding and Estimated Tax Form (and Instructions) W-4 Employee's Withholding Allowance Certificate W-4P Withholding Certificate for Pension or Annuity Payments W-4S Request for Federal Income Tax Withholding From Sick Pay W-4V Voluntary Withholding Request 1040-ES Estimated Tax for Individuals 2210 Underpayment of Estimated Tax by Individuals, Estates, and Trusts 2210-F Underpayment of Estimated Tax by Farmers and Fishermen Tax Withholding for 2014 This section discusses income tax withholding on: Salaries and wages, Tips, Taxable fringe benefits, Sick pay, Pensions and annuities, Gambling winnings, Unemployment compensation, and Certain federal payments. 2012 free tax filing This section explains the rules for withholding tax from each of these types of income. 2012 free tax filing This section also covers backup withholding on interest, dividends, and other payments. 2012 free tax filing Salaries and Wages Income tax is withheld from the pay of most employees. 2012 free tax filing Your pay includes your regular pay, bonuses, commissions, and vacation allowances. 2012 free tax filing It also includes reimbursements and other expense allowances paid under a nonaccountable plan. 2012 free tax filing See Supplemental Wages , later, for more information about reimbursements and allowances paid under a nonaccountable plan. 2012 free tax filing If your income is low enough that you will not have to pay income tax for the year, you may be exempt from withholding. 2012 free tax filing This is explained under Exemption From Withholding , later. 2012 free tax filing You can ask your employer to withhold income tax from noncash wages and other wages not subject to withholding. 2012 free tax filing If your employer does not agree to withhold tax, or if not enough is withheld, you may have to pay estimated tax, as discussed later under Estimated Tax for 2014 . 2012 free tax filing Military retirees. 2012 free tax filing   Military retirement pay is treated in the same manner as regular pay for income tax withholding purposes, even though it is treated as a pension or annuity for other tax purposes. 2012 free tax filing Household workers. 2012 free tax filing   If you are a household worker, you can ask your employer to withhold income tax from your pay. 2012 free tax filing A household worker is an employee who performs household work in a private home, local college club, or local fraternity or sorority chapter. 2012 free tax filing   Tax is withheld only if you want it withheld and your employer agrees to withhold it. 2012 free tax filing If you do not have enough income tax withheld, you may have to pay estimated tax, as discussed later under Estimated Tax for 2014 . 2012 free tax filing Farmworkers. 2012 free tax filing   Generally, income tax is withheld from your cash wages for work on a farm unless your employer does both of these: Pays you cash wages of less than $150 during the year, and Has expenditures for agricultural labor totaling less than $2,500 during the year. 2012 free tax filing Differential wage payments. 2012 free tax filing    When employees are on leave from employment for military duty, some employers make up the difference between the military pay and civilian pay. 2012 free tax filing Payments to an employee who is on active duty for a period of more than 30 days will be subject to income tax withholding, but not subject to social security or Medicare taxes. 2012 free tax filing The wages and withholding will be reported on Form W-2, Wage and Tax Statement. 2012 free tax filing   The credit employers can claim for differential wages paid to activated military reservists is scheduled to expire for wages paid after December 31, 2013. 2012 free tax filing Determining Amount of Tax Withheld Using Form W-4 The amount of income tax your employer withholds from your regular pay depends on two things. 2012 free tax filing The amount you earn in each payroll period. 2012 free tax filing The information you give your employer on Form W-4. 2012 free tax filing Form W-4 includes four types of information that your employer will use to figure your withholding. 2012 free tax filing Whether to withhold at the single rate or at the lower married rate. 2012 free tax filing How many withholding allowances you claim (each allowance reduces the amount withheld). 2012 free tax filing Whether you want an additional amount withheld. 2012 free tax filing Whether you are claiming an exemption from withholding in 2014. 2012 free tax filing See Exemption From Withholding , later. 2012 free tax filing Note. 2012 free tax filing You must specify a filing status and a number of withholding allowances on Form W-4. 2012 free tax filing You cannot specify only a dollar amount of withholding. 2012 free tax filing New Job When you start a new job, you must fill out Form W-4 and give it to your employer. 2012 free tax filing Your employer should have copies of the form. 2012 free tax filing If you need to change the information later, you must fill out a new form. 2012 free tax filing If you work only part of the year (for example, you start working after the beginning of the year), too much tax may be withheld. 2012 free tax filing You may be able to avoid overwithholding if your employer agrees to use the part-year method. 2012 free tax filing See Part-Year Method in chapter 1 of Publication 505 for more information. 2012 free tax filing Employee also receiving pension income. 2012 free tax filing   If you receive pension or annuity income and begin a new job, you will need to file Form W-4 with your new employer. 2012 free tax filing However, you can choose to split your withholding allowances between your pension and job in any manner. 2012 free tax filing Changing Your Withholding During the year changes may occur to your marital status, exemptions, adjustments, deductions, or credits you expect to claim on your tax return. 2012 free tax filing When this happens, you may need to give your employer a new Form W-4 to change your withholding status or your number of allowances. 2012 free tax filing If the changes reduce the number of allowances you are claiming or changes your marital status from married to single, you must give your employer a new Form W-4 within 10 days. 2012 free tax filing Generally, you can submit a new Form W-4 whenever you wish to change the number of your withholding allowances for any other reason. 2012 free tax filing Changing your withholding for 2015. 2012 free tax filing   If events in 2014 will decrease the number of your withholding allowances for 2015, you must give your employer a new Form W-4 by December 1, 2014. 2012 free tax filing If the event occurs in December 2014, submit a new Form W-4 within 10 days. 2012 free tax filing Checking Your Withholding After you have given your employer a Form W-4, you can check to see whether the amount of tax withheld from your pay is too little or too much. 2012 free tax filing If too much or too little tax is being withheld, you should give your employer a new Form W-4 to change your withholding. 2012 free tax filing You should try to have your withholding match your actual tax liability. 2012 free tax filing If not enough tax is withheld, you will owe tax at the end of the year and may have to pay interest and a penalty. 2012 free tax filing If too much tax is withheld, you will lose the use of that money until you get your refund. 2012 free tax filing Always check your withholding if there are personal or financial changes in your life or changes in the law that might change your tax liability. 2012 free tax filing Note. 2012 free tax filing You cannot give your employer a payment to cover withholding on salaries and wages for past pay periods or a payment for estimated tax. 2012 free tax filing Completing Form W-4 and Worksheets Form W-4 has worksheets to help you figure how many withholding allowances you can claim. 2012 free tax filing The worksheets are for your own records. 2012 free tax filing Do not give them to your employer. 2012 free tax filing Multiple jobs. 2012 free tax filing   If you have income from more than one job at the same time, complete only one set of Form W-4 worksheets. 2012 free tax filing Then split your allowances between the Forms W-4 for each job. 2012 free tax filing You cannot claim the same allowances with more than one employer at the same time. 2012 free tax filing You can claim all your allowances with one employer and none with the other(s), or divide them any other way. 2012 free tax filing Married individuals. 2012 free tax filing   If both you and your spouse are employed and expect to file a joint return, figure your withholding allowances using your combined income, adjustments, deductions, exemptions, and credits. 2012 free tax filing Use only one set of worksheets. 2012 free tax filing You can divide your total allowances any way, but you cannot claim an allowance that your spouse also claims. 2012 free tax filing   If you and your spouse expect to file separate returns, figure your allowances using separate worksheets based on your own individual income, adjustments, deductions, exemptions, and credits. 2012 free tax filing Alternative method of figuring withholding allowances. 2012 free tax filing   You do not have to use the Form W-4 worksheets if you use a more accurate method of figuring the number of withholding allowances. 2012 free tax filing For more information, see Alternative method of figuring withholding allowances under Completing Form W-4 and Worksheets in Publication 505, chapter 1. 2012 free tax filing Personal Allowances Worksheet. 2012 free tax filing   Use the Personal Allowances Worksheet on Form W-4 to figure your withholding allowances based on exemptions and any special allowances that apply. 2012 free tax filing Deduction and Adjustments Worksheet. 2012 free tax filing   Use the Deduction and Adjustments Worksheet on Form W-4 if you plan to itemize your deductions, claim certain credits, or claim adjustments to the income on your 2014 tax return and you want to reduce your withholding. 2012 free tax filing Also, complete this worksheet when you have changes to these items to see if you need to change your withholding. 2012 free tax filing Two-Earners/Multiple Jobs Worksheet. 2012 free tax filing   You may need to complete the Two-Earners/Multiple Jobs Worksheet on Form W-4 if you have more than one job, a working spouse, or are also receiving a pension. 2012 free tax filing Also, on this worksheet you can add any additional withholding necessary to cover any amount you expect to owe other than income tax, such as self-employment tax. 2012 free tax filing Getting the Right Amount of Tax Withheld In most situations, the tax withheld from your pay will be close to the tax you figure on your return if you follow these two rules. 2012 free tax filing You accurately complete all the Form W-4 worksheets that apply to you. 2012 free tax filing You give your employer a new Form W-4 when changes occur. 2012 free tax filing But because the worksheets and withholding methods do not account for all possible situations, you may not be getting the right amount withheld. 2012 free tax filing This is most likely to happen in the following situations. 2012 free tax filing You are married and both you and your spouse work. 2012 free tax filing You have more than one job at a time. 2012 free tax filing You have nonwage income, such as interest, dividends, alimony, unemployment compensation, or self-employment income. 2012 free tax filing You will owe additional amounts with your return, such as self-employment tax. 2012 free tax filing Your withholding is based on obsolete Form W-4 information for a substantial part of the year. 2012 free tax filing Your earnings are more than the amount shown under Check your withholding in the instructions at the top of page 1 of Form W-4. 2012 free tax filing You work only part of the year. 2012 free tax filing You change the number of your withholding allowances during the year. 2012 free tax filing Cumulative wage method. 2012 free tax filing   If you change the number of your withholding allowances during the year, too much or too little tax may have been withheld for the period before you made the change. 2012 free tax filing You may be able to compensate for this if your employer agrees to use the cumulative wage withholding method for the rest of the year. 2012 free tax filing You must ask your employer in writing to use this method. 2012 free tax filing   To be eligible, you must have been paid for the same kind of payroll period (weekly, biweekly, etc. 2012 free tax filing ) since the beginning of the year. 2012 free tax filing Publication 505 To make sure you are getting the right amount of tax withheld, get Publication 505. 2012 free tax filing It will help you compare the total tax to be withheld during the year with the tax you can expect to figure on your return. 2012 free tax filing It also will help you determine how much, if any, additional withholding is needed each payday to avoid owing tax when you file your return. 2012 free tax filing If you do not have enough tax withheld, you may have to pay estimated tax, as explained under Estimated Tax for 2014 , later. 2012 free tax filing You can use the IRS Withholding Calculator at www. 2012 free tax filing irs. 2012 free tax filing gov/Individuals, instead of Publication 505 or the worksheets included with Form W-4, to determine whether you need to have your withholding increased or decreased. 2012 free tax filing Rules Your Employer Must Follow It may be helpful for you to know some of the withholding rules your employer must follow. 2012 free tax filing These rules can affect how to fill out your Form W-4 and how to handle problems that may arise. 2012 free tax filing New Form W-4. 2012 free tax filing   When you start a new job, your employer should have you complete a Form W-4. 2012 free tax filing Beginning with your first payday, your employer will use the information you give on the form to figure your withholding. 2012 free tax filing   If you later fill out a new Form W-4, your employer can put it into effect as soon as possible. 2012 free tax filing The deadline for putting it into effect is the start of the first payroll period ending 30 or more days after you turn it in. 2012 free tax filing No Form W-4. 2012 free tax filing   If you do not give your employer a completed Form W-4, your employer must withhold at the highest rate, as if you were single and claimed no withholding allowances. 2012 free tax filing Repaying withheld tax. 2012 free tax filing   If you find you are having too much tax withheld because you did not claim all the withholding allowances you are entitled to, you should give your employer a new Form W-4. 2012 free tax filing Your employer cannot repay any of the tax previously withheld. 2012 free tax filing Instead, claim the full amount withheld when you file your tax return. 2012 free tax filing   However, if your employer has withheld more than the correct amount of tax for the Form W-4 you have in effect, you do not have to fill out a new Form W-4 to have your withholding lowered to the correct amount. 2012 free tax filing Your employer can repay the amount that was withheld incorrectly. 2012 free tax filing If you are not repaid, your Form W-2 will reflect the full amount actually withheld, which you would claim when you file your tax return. 2012 free tax filing Exemption From Withholding If you claim exemption from withholding, your employer will not withhold federal income tax from your wages. 2012 free tax filing The exemption applies only to income tax, not to social security or Medicare tax. 2012 free tax filing You can claim exemption from withholding for 2014 only if both of the following situations apply. 2012 free tax filing For 2013 you had a right to a refund of all federal income tax withheld because you had no tax liability. 2012 free tax filing For 2014 you expect a refund of all federal income tax withheld because you expect to have no tax liability. 2012 free tax filing Students. 2012 free tax filing   If you are a student, you are not automatically exempt. 2012 free tax filing See chapter 1 to find out if you must file a return. 2012 free tax filing If you work only part time or only during the summer, you may qualify for exemption from withholding. 2012 free tax filing Age 65 or older or blind. 2012 free tax filing   If you are 65 or older or blind, use Worksheet 1-3 or 1-4 in chapter 1 of Publication 505, to help you decide if you qualify for exemption from withholding. 2012 free tax filing Do not use either worksheet if you will itemize deductions, claim exemptions for dependents, or claim tax credits on your 2014 return. 2012 free tax filing Instead, see Itemizing deductions or claiming exemptions or credits in chapter 1 of Publication 505. 2012 free tax filing Claiming exemption from withholding. 2012 free tax filing   To claim exemption, you must give your employer a Form W-4. 2012 free tax filing Do not complete lines 5 and 6. 2012 free tax filing Enter “Exempt” on line 7. 2012 free tax filing   If you claim exemption, but later your situation changes so that you will have to pay income tax after all, you must file a new Form W-4 within 10 days after the change. 2012 free tax filing If you claim exemption in 2014, but you expect to owe income tax for 2015, you must file a new Form W-4 by December 1, 2014. 2012 free tax filing   Your claim of exempt status may be reviewed by the IRS. 2012 free tax filing An exemption is good for only 1 year. 2012 free tax filing   You must give your employer a new Form W-4 by February 15 each year to continue your exemption. 2012 free tax filing Supplemental Wages Supplemental wages include bonuses, commissions, overtime pay, vacation allowances, certain sick pay, and expense allowances under certain plans. 2012 free tax filing The payer can figure withholding on supplemental wages using the same method used for your regular wages. 2012 free tax filing However, if these payments are identified separately from your regular wages, your employer or other payer of supplemental wages can withhold income tax from these wages at a flat rate. 2012 free tax filing Expense allowances. 2012 free tax filing   Reimbursements or other expense allowances paid by your employer under a nonaccountable plan are treated as supplemental wages. 2012 free tax filing   Reimbursements or other expense allowances paid under an accountable plan that are more than your proven expenses are treated as paid under a nonaccountable plan if you do not return the excess payments within a reasonable period of time. 2012 free tax filing   For more information about accountable and nonaccountable expense allowance plans, see Reimbursements in chapter 26. 2012 free tax filing Penalties You may have to pay a penalty of $500 if both of the following apply. 2012 free tax filing You make statements or claim withholding allowances on your Form W-4 that reduce the amount of tax withheld. 2012 free tax filing You have no reasonable basis for those statements or allowances at the time you prepare your Form W-4. 2012 free tax filing There is also a criminal penalty for willfully supplying false or fraudulent information on your Form W-4 or for willfully failing to supply information that would increase the amount withheld. 2012 free tax filing The penalty upon conviction can be either a fine of up to $1,000 or imprisonment for up to 1 year, or both. 2012 free tax filing These penalties will apply if you deliberately and knowingly falsify your Form W-4 in an attempt to reduce or eliminate the proper withholding of taxes. 2012 free tax filing A simple error or an honest mistake will not result in one of these penalties. 2012 free tax filing For example, a person who has tried to figure the number of withholding allowances correctly, but claims seven when the proper number is six, will not be charged a W-4 penalty. 2012 free tax filing Tips The tips you receive while working on your job are considered part of your pay. 2012 free tax filing You must include your tips on your tax return on the same line as your regular pay. 2012 free tax filing However, tax is not withheld directly from tip income, as it is from your regular pay. 2012 free tax filing Nevertheless, your employer will take into account the tips you report when figuring how much to withhold from your regular pay. 2012 free tax filing See chapter 6 for information on reporting your tips to your employer. 2012 free tax filing For more information on the withholding rules for tip income, see Publication 531, Reporting Tip Income. 2012 free tax filing How employer figures amount to withhold. 2012 free tax filing   The tips you report to your employer are counted as part of your income for the month you report them. 2012 free tax filing Your employer can figure your withholding in either of two ways. 2012 free tax filing By withholding at the regular rate on the sum of your pay plus your reported tips. 2012 free tax filing By withholding at the regular rate on your pay plus a percentage of your reported tips. 2012 free tax filing Not enough pay to cover taxes. 2012 free tax filing   If your regular pay is not enough for your employer to withhold all the tax (including income tax and social security and Medicare taxes (or the equivalent railroad retirement tax)) due on your pay plus your tips, you can give your employer money to cover the shortage. 2012 free tax filing See Giving your employer money for taxes in chapter 6. 2012 free tax filing Allocated tips. 2012 free tax filing   Your employer should not withhold income tax, Medicare tax, social security tax, or railroad retirement tax on any allocated tips. 2012 free tax filing Withholding is based only on your pay plus your reported tips. 2012 free tax filing Your employer should refund to you any incorrectly withheld tax. 2012 free tax filing See Allocated Tips in chapter 6 for more information. 2012 free tax filing Taxable Fringe Benefits The value of certain noncash fringe benefits you receive from your employer is considered part of your pay. 2012 free tax filing Your employer generally must withhold income tax on these benefits from your regular pay. 2012 free tax filing For information on fringe benefits, see Fringe Benefits under Employee Compensation in chapter 5. 2012 free tax filing Although the value of your personal use of an employer-provided car, truck, or other highway motor vehicle is taxable, your employer can choose not to withhold income tax on that amount. 2012 free tax filing Your employer must notify you if this choice is made. 2012 free tax filing For more information on withholding on taxable fringe benefits, see chapter 1 of Publication 505. 2012 free tax filing Sick Pay Sick pay is a payment to you to replace your regular wages while you are temporarily absent from work due to sickness or personal injury. 2012 free tax filing To qualify as sick pay, it must be paid under a plan to which your employer is a party. 2012 free tax filing If you receive sick pay from your employer or an agent of your employer, income tax must be withheld. 2012 free tax filing An agent who does not pay regular wages to you may choose to withhold income tax at a flat rate. 2012 free tax filing However, if you receive sick pay from a third party who is not acting as an agent of your employer, income tax will be withheld only if you choose to have it withheld. 2012 free tax filing See Form W-4S , later. 2012 free tax filing If you receive payments under a plan in which your employer does not participate (such as an accident or health plan where you paid all the premiums), the payments are not sick pay and usually are not taxable. 2012 free tax filing Union agreements. 2012 free tax filing   If you receive sick pay under a collective bargaining agreement between your union and your employer, the agreement may determine the amount of income tax withholding. 2012 free tax filing See your union representative or your employer for more information. 2012 free tax filing Form W-4S. 2012 free tax filing   If you choose to have income tax withheld from sick pay paid by a third party, such as an insurance company, you must fill out Form W-4S. 2012 free tax filing Its instructions contain a worksheet you can use to figure the amount you want withheld. 2012 free tax filing They also explain restrictions that may apply. 2012 free tax filing   Give the completed form to the payer of your sick pay. 2012 free tax filing The payer must withhold according to your directions on the form. 2012 free tax filing Estimated tax. 2012 free tax filing   If you do not request withholding on Form W-4S, or if you do not have enough tax withheld, you may have to make estimated tax payments. 2012 free tax filing If you do not pay enough tax, either through estimated tax or withholding, or a combination of both, you may have to pay a penalty. 2012 free tax filing See Underpayment Penalty for 2013 at the end of this chapter. 2012 free tax filing Pensions and Annuities Income tax usually will be withheld from your pension or annuity distributions unless you choose not to have it withheld. 2012 free tax filing This rule applies to distributions from: A traditional individual retirement arrangement (IRA); A life insurance company under an endowment, annuity, or life insurance contract; A pension, annuity, or profit-sharing plan; A stock bonus plan; and Any other plan that defers the time you receive compensation. 2012 free tax filing The amount withheld depends on whether you receive payments spread out over more than 1 year (periodic payments), within 1 year (nonperiodic payments), or as an eligible rollover distribution (ERD). 2012 free tax filing Income tax withholding from an ERD is mandatory. 2012 free tax filing More information. 2012 free tax filing   For more information on taxation of annuities and distributions (including ERDs) from qualified retirement plans, see chapter 10. 2012 free tax filing For information on IRAs, see chapter 17. 2012 free tax filing For more information on withholding on pensions and annuities, including a discussion of Form W-4P, see Pensions and Annuities in chapter 1 of Publication 505. 2012 free tax filing Gambling Winnings Income tax is withheld at a flat 25% rate from certain kinds of gambling winnings. 2012 free tax filing Gambling winnings of more than $5,000 from the following sources are subject to income tax withholding. 2012 free tax filing Any sweepstakes; wagering pool, including payments made to winners of poker tournaments; or lottery. 2012 free tax filing Any other wager, if the proceeds are at least 300 times the amount of the bet. 2012 free tax filing It does not matter whether your winnings are paid in cash, in property, or as an annuity. 2012 free tax filing Winnings not paid in cash are taken into account at their fair market value. 2012 free tax filing Exception. 2012 free tax filing   Gambling winnings from bingo, keno, and slot machines generally are not subject to income tax withholding. 2012 free tax filing However, you may need to provide the payer with a social security number to avoid withholding. 2012 free tax filing See Backup withholding on gambling winnings in chapter 1 of Publication 505. 2012 free tax filing If you receive gambling winnings not subject to withholding, you may need to pay estimated tax. 2012 free tax filing See Estimated Tax for 2014 , later. 2012 free tax filing If you do not pay enough tax, either through withholding or estimated tax, or a combination of both, you may have to pay a penalty. 2012 free tax filing See Underpayment Penalty for 2013 at the end of this chapter. 2012 free tax filing Form W-2G. 2012 free tax filing   If a payer withholds income tax from your gambling winnings, you should receive a Form W-2G, Certain Gambling Winnings, showing the amount you won and the amount withheld. 2012 free tax filing Report the tax withheld on line 62 of Form 1040. 2012 free tax filing Unemployment Compensation You can choose to have income tax withheld from unemployment compensation. 2012 free tax filing To make this choice, fill out Form W-4V (or a similar form provided by the payer) and give it to the payer. 2012 free tax filing All unemployment compensation is taxable. 2012 free tax filing So, if you do not have income tax withheld, you may have to pay estimated tax. 2012 free tax filing See Estimated Tax for 2014 , later. 2012 free tax filing If you do not pay enough tax, either through withholding or estimated tax, or a combination of both, you may have to pay a penalty. 2012 free tax filing For information, see Underpayment Penalty for 2013 at the end of this chapter. 2012 free tax filing Federal Payments You can choose to have income tax withheld from certain federal payments you receive. 2012 free tax filing These payments are: Social security benefits, Tier 1 railroad retirement benefits, Commodity credit corporation loans you choose to include in your gross income, Payments under the Agricultural Act of 1949 (7 U. 2012 free tax filing S. 2012 free tax filing C. 2012 free tax filing 1421 et. 2012 free tax filing seq. 2012 free tax filing ), as amended, or title II of the Disaster Assistance Act of 1988, that are treated as insurance proceeds and that you receive because: Your crops were destroyed or damaged by drought, flood, or any other natural disaster, or You were unable to plant crops because of a natural disaster described in (a), and Any other payment under Federal law as determined by the Secretary. 2012 free tax filing To make this choice, fill out Form W-4V (or a similar form provided by the payer) and give it to the payer. 2012 free tax filing If you do not choose to have income tax withheld, you may have to pay estimated tax. 2012 free tax filing See Estimated Tax for 2014 , later. 2012 free tax filing If you do not pay enough tax, either through withholding or estimated tax, or a combination of both, you may have to pay a penalty. 2012 free tax filing For information, see Underpayment Penalty for 2013 at the end of this chapter. 2012 free tax filing More information. 2012 free tax filing   For more information about the tax treatment of social security and railroad retirement benefits, see chapter 11. 2012 free tax filing Get Publication 225, Farmer's Tax Guide, for information about the tax treatment of commodity credit corporation loans or crop disaster payments. 2012 free tax filing Backup Withholding Banks or other businesses that pay you certain kinds of income must file an information return (Form 1099) with the IRS. 2012 free tax filing The information return shows how much you were paid during the year. 2012 free tax filing It also includes your name and taxpayer identification number (TIN). 2012 free tax filing TINs are explained in chapter 1 under Social Security Number (SSN) . 2012 free tax filing These payments generally are not subject to withholding. 2012 free tax filing However, “backup” withholding is required in certain situations. 2012 free tax filing Backup withholding can apply to most kinds of payments that are reported on Form 1099. 2012 free tax filing The payer must withhold at a flat 28% rate in the following situations. 2012 free tax filing You do not give the payer your TIN in the required manner. 2012 free tax filing The IRS notifies the payer that the TIN you gave is incorrect. 2012 free tax filing You are required, but fail, to certify that you are not subject to backup withholding. 2012 free tax filing The IRS notifies the payer to start withholding on interest or dividends because you have underreported interest or dividends on your income tax return. 2012 free tax filing The IRS will do this only after it has mailed you four notices over at least a 210-day period. 2012 free tax filing See Backup Withholding in chapter 1 of Publication 505 for more information. 2012 free tax filing Penalties. 2012 free tax filing   There are civil and criminal penalties for giving false information to avoid backup withholding. 2012 free tax filing The civil penalty is $500. 2012 free tax filing The criminal penalty, upon conviction, is a fine of up to $1,000 or imprisonment of up to 1 year, or both. 2012 free tax filing Estimated Tax for 2014 Estimated tax is the method used to pay tax on income that is not subject to withholding. 2012 free tax filing This includes income from self-employment, interest, dividends, alimony, rent, gains from the sale of assets, prizes, and awards. 2012 free tax filing You also may have to pay estimated tax if the amount of income tax being withheld from your salary, pension, or other income is not enough. 2012 free tax filing Estimated tax is used to pay both income tax and self-employment tax, as well as other taxes and amounts reported on your tax return. 2012 free tax filing If you do not pay enough tax, either through withholding or estimated tax, or a combination of both, you may have to pay a penalty. 2012 free tax filing If you do not pay enough by the due date of each payment period (see When To Pay Estimated Tax , later), you may be charged a penalty even if you are due a refund when you file your tax return. 2012 free tax filing For information on when the penalty applies, see Underpayment Penalty for 2013 at the end of this chapter. 2012 free tax filing Who Does Not Have To Pay Estimated Tax If you receive salaries or wages, you can avoid having to pay estimated tax by asking your employer to take more tax out of your earnings. 2012 free tax filing To do this, give a new Form W-4 to your employer. 2012 free tax filing See chapter 1 of Publication 505. 2012 free tax filing Estimated tax not required. 2012 free tax filing   You do not have to pay estimated tax for 2014 if you meet all three of the following conditions. 2012 free tax filing You had no tax liability for 2013. 2012 free tax filing You were a U. 2012 free tax filing S. 2012 free tax filing citizen or resident alien for the whole year. 2012 free tax filing Your 2013 tax year covered a 12-month period. 2012 free tax filing   You had no tax liability for 2013 if your total tax was zero or you did not have to file an income tax return. 2012 free tax filing For the definition of “total tax” for 2013, see Publication 505, chapter 2. 2012 free tax filing Who Must Pay Estimated Tax If you owe additional tax for 2013, you may have to pay estimated tax for 2014. 2012 free tax filing You can use the following general rule as a guide during the year to see if you will have enough withholding, or if you should increase your withholding or make estimated tax payments. 2012 free tax filing General rule. 2012 free tax filing   In most cases, you must pay estimated tax for 2014 if both of the following apply. 2012 free tax filing You expect to owe at least $1,000 in tax for 2014, after subtracting your withholding and refundable credits. 2012 free tax filing You expect your withholding plus your refundable credits to be less than the smaller of: 90% of the tax to be shown on your 2014 tax return, or 100% of the tax shown on your 2013 tax return (but see Special rules for farmers, fishermen, and higher income taxpayers, later). 2012 free tax filing Your 2013 tax return must cover all 12 months. 2012 free tax filing    If the result from using the general rule above suggests that you will not have enough withholding, complete the 2014 Estimated Tax Worksheet in Publication 505 for a more accurate calculation. 2012 free tax filing Special rules for farmers, fishermen, and higher income taxpayers. 2012 free tax filing   If at least two-thirds of your gross income for tax year 2013 or 2014 is from farming or fishing, substitute 662/3% for 90% in (2a) under the General rule, earlier. 2012 free tax filing If your AGI for 2013 was more than $150,000 ($75,000 if your filing status for 2014 is married filing a separate return), substitute 110% for 100% in (2b) under General rule , earlier. 2012 free tax filing See Figure 4-A and Publication 505, chapter 2 for more information. 2012 free tax filing Figure 4-A. 2012 free tax filing Do You Have To Pay Estimated Tax? Please click here for the text description of the image. 2012 free tax filing Figure 4-A Do You Have To Pay Estimated Tax? Aliens. 2012 free tax filing   Resident and nonresident aliens also may have to pay estimated tax. 2012 free tax filing Resident aliens should follow the rules in this chapter unless noted otherwise. 2012 free tax filing Nonresident aliens should get Form 1040-ES (NR), U. 2012 free tax filing S. 2012 free tax filing Estimated Tax for Nonresident Alien Individuals. 2012 free tax filing   You are an alien if you are not a citizen or national of the United States. 2012 free tax filing You are a resident alien if you either have a green card or meet the substantial presence test. 2012 free tax filing For more information about the substantial presence test, see Publication 519, U. 2012 free tax filing S. 2012 free tax filing Tax Guide for Aliens. 2012 free tax filing Married taxpayers. 2012 free tax filing   If you qualify to make joint estimated tax payments, apply the rules discussed here to your joint estimated income. 2012 free tax filing   You and your spouse can make joint estimated tax payments even if you are not living together. 2012 free tax filing   However, you and your spouse cannot make joint estimated tax payments if:  You are legally separated under a decree of divorce or separate maintenance, You and your spouse have different tax years, or Either spouse is a nonresident alien (unless that spouse elected to be treated as a resident alien for tax purposes (see chapter 1 of Publication 519)). 2012 free tax filing   If you do not qualify to make joint estimated tax payments, apply these rules to your separate estimated income. 2012 free tax filing Making joint or separate estimated tax payments will not affect your choice of filing a joint tax return or separate returns for 2014. 2012 free tax filing 2013 separate returns and 2014 joint return. 2012 free tax filing   If you plan to file a joint return with your spouse for 2014, but you filed separate returns for 2013, your 2013 tax is the total of the tax shown on your separate returns. 2012 free tax filing You filed a separate return if you filed as single, head of household, or married filing separately. 2012 free tax filing 2013 joint return and 2014 separate returns. 2012 free tax filing   If you plan to file a separate return for 2014 but you filed a joint return for 2013, your 2013 tax is your share of the tax on the joint return. 2012 free tax filing You file a separate return if you file as single, head of household, or married filing separately. 2012 free tax filing   To figure your share of the tax on the joint return, first figure the tax both you and your spouse would have paid had you filed separate returns for 2013 using the same filing status as for 2014. 2012 free tax filing Then multiply the tax on the joint return by the following fraction. 2012 free tax filing     The tax you would have paid had you filed a separate return   The total tax you and your spouse would have paid had you filed separate returns Example. 2012 free tax filing Joe and Heather filed a joint return for 2013 showing taxable income of $48,500 and a tax of $6,386. 2012 free tax filing Of the $48,500 taxable income, $40,100 was Joe's and the rest was Heather's. 2012 free tax filing For 2014, they plan to file married filing separately. 2012 free tax filing Joe figures his share of the tax on the 2013 joint return as follows. 2012 free tax filing   Tax on $40,100 based on a separate return $5,960     Tax on $8,400 based on a separate return 843     Total $6,803     Joe's percentage of total ($5,960 ÷ $6,803) 87. 2012 free tax filing 6%     Joe's share of tax on joint return  ($6,386 × 87. 2012 free tax filing 6%) $5,594   How To Figure Estimated Tax To figure your estimated tax, you must figure your expected adjusted gross income (AGI), taxable income, taxes, deductions, and credits for the year. 2012 free tax filing When figuring your 2014 estimated tax, it may be helpful to use your income, deductions, and credits for 2013 as a starting point. 2012 free tax filing Use your 2013 federal tax return as a guide. 2012 free tax filing You can use Form 1040-ES and Publication 505 to figure your estimated tax. 2012 free tax filing Nonresident aliens use Form 1040-ES (NR) and Publication 505 to figure estimated tax (see chapter 8 of Publication 519 for more information). 2012 free tax filing You must make adjustments both for changes in your own situation and for recent changes in the tax law. 2012 free tax filing For a discussion of these changes, visit IRS. 2012 free tax filing gov. 2012 free tax filing For more complete information on how to figure your estimated tax for 2014, see chapter 2 of Publication 505. 2012 free tax filing When To Pay Estimated Tax For estimated tax purposes, the tax year is divided into four payment periods. 2012 free tax filing Each period has a specific payment due date. 2012 free tax filing If you do not pay enough tax by the due date of each payment period, you may be charged a penalty even if you are due a refund when you file your income tax return. 2012 free tax filing The payment periods and due dates for estimated tax payments are shown next. 2012 free tax filing   For the period: Due date:*     Jan. 2012 free tax filing 1 – March 31 April 15     April 1 – May 31 June 16     June 1 – August 31 Sept. 2012 free tax filing 15     Sept. 2012 free tax filing 1– Dec. 2012 free tax filing 31 Jan. 2012 free tax filing 15, next year     *See Saturday, Sunday, holiday rule and January payment . 2012 free tax filing Saturday, Sunday, holiday rule. 2012 free tax filing   If the due date for an estimated tax payment falls on a Saturday, Sunday, or legal holiday, the payment will be on time if you make it on the next day that is not a Saturday, Sunday, or legal holiday. 2012 free tax filing January payment. 2012 free tax filing   If you file your 2014 Form 1040 or Form 1040A by January 31, 2015, and pay the rest of the tax you owe, you do not need to make the payment due on January 15, 2015. 2012 free tax filing Fiscal year taxpayers. 2012 free tax filing   If your tax year does not start on January 1, see the Form 1040-ES instructions for your payment due dates. 2012 free tax filing When To Start You do not have to make estimated tax payments until you have income on which you will owe income tax. 2012 free tax filing If you have income subject to estimated tax during the first payment period, you must make your first payment by the due date for the first payment period. 2012 free tax filing You can pay all your estimated tax at that time, or you can pay it in installments. 2012 free tax filing If you choose to pay in installments, make your first payment by the due date for the first payment period. 2012 free tax filing Make your remaining installment payments by the due dates for the later periods. 2012 free tax filing No income subject to estimated tax during first period. 2012 free tax filing    If you do not have income subject to estimated tax until a later payment period, you must make your first payment by the due date for that period. 2012 free tax filing You can pay your entire estimated tax by the due date for that period or you can pay it in installments by the due date for that period and the due dates for the remaining periods. 2012 free tax filing The following chart shows when to make installment payments. 2012 free tax filing If you first have income on which you must pay estimated tax: Make a payment  by:* Make later installments by:* Before April 1 April 15 June 16 Sept. 2012 free tax filing 15 Jan. 2012 free tax filing 15 next year April 1–May 31 June 16 Sept. 2012 free tax filing 15 Jan. 2012 free tax filing 15 next year June 1–Aug. 2012 free tax filing 31 Sept. 2012 free tax filing 15 Jan. 2012 free tax filing 15 next year After Aug. 2012 free tax filing 31 Jan. 2012 free tax filing 15 next year (None) *See Saturday, Sunday, holiday rule and January payment . 2012 free tax filing How much to pay to avoid a penalty. 2012 free tax filing   To determine how much you should pay by each payment due date, see How To Figure Each Payment, next. 2012 free tax filing How To Figure Each Payment You should pay enough estimated tax by the due date of each payment period to avoid a penalty for that period. 2012 free tax filing You can figure your required payment for each period by using either the regular installment method or the annualized income installment method. 2012 free tax filing These methods are described in chapter 2 of Publication 505. 2012 free tax filing If you do not pay enough during each payment period, you may be charged a penalty even if you are due a refund when you file your tax return. 2012 free tax filing If the earlier discussion of No income subject to estimated tax during first period or the later discussion of Change in estimated tax applies to you, you may benefit from reading Annualized Income Installment Method in chapter 2 of Publication 505 for information on how to avoid a penalty. 2012 free tax filing Underpayment penalty. 2012 free tax filing   Under the regular installment method, if your estimated tax payment for any period is less than one-fourth of your estimated tax, you may be charged a penalty for underpayment of estimated tax for that period when you file your tax return. 2012 free tax filing Under the annualized income installment method, your estimated tax payments vary with your income, but the amount required must be paid each period. 2012 free tax filing See chapter 4 of Publication 505 for more information. 2012 free tax filing Change in estimated tax. 2012 free tax filing   After you make an estimated tax payment, changes in your income, adjustments, deductions, credits, or exemptions may make it necessary for you to refigure your estimated tax. 2012 free tax filing Pay the unpaid balance of your amended estimated tax by the next payment due date after the change or in installments by that date and the due dates for the remaining payment periods. 2012 free tax filing Estimated Tax Payments Not Required You do not have to pay estimated tax if your withholding in each payment period is at least as much as: One-fourth of your required annual payment, or Your required annualized income installment for that period. 2012 free tax filing You also do not have to pay estimated tax if you will pay enough through withholding to keep the amount you owe with your return under $1,000. 2012 free tax filing How To Pay Estimated Tax There are several ways to pay estimated tax. 2012 free tax filing Credit an overpayment on your 2013 return to your 2014 estimated tax. 2012 free tax filing Pay by direct transfer from your bank account, or pay by credit or debit card using a pay-by-phone system or the Internet. 2012 free tax filing Send in your payment (check or money order) with a payment voucher from Form 1040-ES. 2012 free tax filing Credit an Overpayment If you show an overpayment of tax after completing your Form 1040 or Form 1040A for 2013, you can apply part or all of it to your estimated tax for 2014. 2012 free tax filing On line 75 of Form 1040, or line 44 of Form 1040A, enter the amount you want credited to your estimated tax rather than refunded. 2012 free tax filing Take the amount you have credited into account when figuring your estimated tax payments. 2012 free tax filing You cannot have any of the amount you credited to your estimated tax refunded to you until you file your tax return for the following year. 2012 free tax filing You also cannot use that overpayment in any other way. 2012 free tax filing Pay Online Paying online is convenient and secure and helps make sure we get your payments on time. 2012 free tax filing You can pay using either of the following electronic payment methods. 2012 free tax filing Direct transfer from your bank account. 2012 free tax filing Credit or debit card. 2012 free tax filing To pay your taxes online or for more information, go to www. 2012 free tax filing irs. 2012 free tax filing gov/e-pay. 2012 free tax filing Pay by Phone Paying by phone is another safe and secure method of paying electronically. 2012 free tax filing Use one of the following methods. 2012 free tax filing Direct transfer from your bank account. 2012 free tax filing Credit or debit card. 2012 free tax filing To pay by direct transfer from your bank account, call 1-800-555-4477 (English), 1-800-244-4829 (Espanol). 2012 free tax filing People who are deaf, hard of hearing, or have a speech disability and who have access to TTY/TDD can call 1-800-733-4829. 2012 free tax filing To pay using a credit or debit card, you can call one of the following service providers. 2012 free tax filing There is a convenience fee charged by these providers that varies by provider, card type, and payment amount. 2012 free tax filing WorldPay 1-888-9-PAY-TAXTM(1-888-972-9829) www. 2012 free tax filing payUSAtax. 2012 free tax filing com Official Payments Corporation 1-888-UPAY-TAXTM (1-888-872-9829) www. 2012 free tax filing officialpayments. 2012 free tax filing com Link2Gov Corporation 1-888-PAY-1040TM (1-888-729-1040) www. 2012 free tax filing PAY1040. 2012 free tax filing com For the latest details on how to pay by phone, go to www. 2012 free tax filing irs. 2012 free tax filing gov/e-pay. 2012 free tax filing Pay by Check or Money Order Using the Estimated Tax Payment Voucher Each payment of estimated tax by check or money order must be accompanied by a payment voucher from Form 1040-ES. 2012 free tax filing During 2013, if you: made at least one estimated tax payment but not by electronic means, did not use software or a paid preparer to prepare or file your return,  then you should receive a copy of the 2014 Form 1040-ES/V. 2012 free tax filing The enclosed payment vouchers will be preprinted with your name, address, and social security number. 2012 free tax filing Using the preprinted vouchers will speed processing, reduce the chance of error, and help save processing costs. 2012 free tax filing Use the window envelopes that came with your Form 1040-ES package. 2012 free tax filing If you use your own envelopes, make sure you mail your payment vouchers to the address shown in the Form 1040-ES instructions for the place where you live. 2012 free tax filing Note. 2012 free tax filing These criteria can change without notice. 2012 free tax filing If you do not receive a Form 1040-ES/V package and you are required to make an estimated tax payment, you should go to www. 2012 free tax filing irs. 2012 free tax filing gov and print a copy of Form 1040-ES which includes four blank payment vouchers. 2012 free tax filing Complete one of these and make your payment timely to avoid penalties for paying late. 2012 free tax filing Do not use the address shown in the Form 1040 or Form 1040A instructions for your estimated tax payments. 2012 free tax filing If you did not pay estimated tax last year, you can order Form 1040-ES from the IRS (see inside back cover of this publication) or download it from IRS. 2012 free tax filing gov. 2012 free tax filing Follow the instructions to make sure you use the vouchers correctly. 2012 free tax filing Joint estimated tax payments. 2012 free tax filing   If you file a joint return and are making joint estimated tax payments, enter the names and social security numbers on the payment voucher in the same order as they will appear on the joint return. 2012 free tax filing Change of address. 2012 free tax filing   You must notify the IRS if you are making estimated tax payments and you changed your address during the year. 2012 free tax filing Complete Form 8822, Change of Address, and mail it to the address shown in the instructions for that form. 2012 free tax filing Credit for Withholding and Estimated Tax for 2013 When you file your 2013 income tax return, take credit for all the income tax and excess social security or railroad retirement tax withheld from your salary, wages, pensions, etc. 2012 free tax filing Also take credit for the estimated tax you paid for 2013. 2012 free tax filing These credits are subtracted from your total tax. 2012 free tax filing Because these credits are refundable, you should file a return and claim these credits, even if you do not owe tax. 2012 free tax filing Two or more employers. 2012 free tax filing   If you had two or more employers in 2013 and were paid wages of more than $113,700, too much social security or tier 1 railroad retirement tax may have been withheld from your pay. 2012 free tax filing You may be able to claim the excess as a credit against your income tax when you file your return. 2012 free tax filing See Credit for Excess Social Security Tax or Railroad Retirement Tax Withheld in chapter 37. 2012 free tax filing Withholding If you had income tax withheld during 2013, you should be sent a statement by January 31, 2014, showing your income and the tax withheld. 2012 free tax filing Depending on the source of your income, you should receive: Form W-2, Wage and Tax Statement, Form W-2G, Certain Gambling Winnings, or A form in the 1099 series. 2012 free tax filing Forms W-2 and W-2G. 2012 free tax filing   If you file a paper return, always file Form W-2 with your income tax return. 2012 free tax filing File Form W-2G with your return only if it shows any federal income tax withheld from your winnings. 2012 free tax filing   You should get at least two copies of each form. 2012 free tax filing If you file a paper return, attach one copy to the front of your federal income tax return. 2012 free tax filing Keep one copy for your records. 2012 free tax filing You also should receive copies to file with your state and local returns. 2012 free tax filing Form W-2 Your employer is required to provide or send Form W-2 to you no later than January 31, 2014. 2012 free tax filing You should receive a separate Form W-2 from each employer you worked for. 2012 free tax filing If you stopped working before the end of 2013, your employer could have given you your Form W-2 at any time after you stopped working. 2012 free tax filing However, your employer must provide or send it to you by January 31, 2014. 2012 free tax filing If you ask for the form, your employer must send it to you within 30 days after receiving your written request or within 30 days after your final wage payment, whichever is later. 2012 free tax filing If you have not received your Form W-2 by January 31, you should ask your employer for it. 2012 free tax filing If you do not receive it by February 15, call the IRS. 2012 free tax filing Form W-2 shows your total pay and other compensation and the income tax, social security tax, and Medicare tax that was withheld during the year. 2012 free tax filing Include the federal income tax withheld (as shown in box 2 of Form W-2) on: Line 62 if you file Form 1040, Line 36 if you file Form 1040A, or Line 7 if you file Form 1040EZ. 2012 free tax filing In addition, Form W-2 is used to report any taxable sick pay you received and any income tax withheld from your sick pay. 2012 free tax filing Form W-2G If you had gambling winnings in 2013, the payer may have withheld income tax. 2012 free tax filing If tax was withheld, the payer will give you a Form W-2G showing the amount you won and the amount of tax withheld. 2012 free tax filing Report the amounts you won on line 21 of Form 1040. 2012 free tax filing Take credit for the tax withheld on line 62 of Form 1040. 2012 free tax filing If you had gambling winnings, you must use Form 1040; you cannot use Form 1040A or Form 1040EZ. 2012 free tax filing The 1099 Series Most forms in the 1099 series are not filed with your return. 2012 free tax filing These forms should be furnished to you by January 31, 2014 (or, for Forms 1099-B, 1099-S, and certain Forms 1099-MISC, by February 15, 2014). 2012 free tax filing Unless instructed to file any of these forms with your return, keep them for your records. 2012 free tax filing There are several different forms in this series, including: Form 1099-B, Proceeds From Broker and Barter Exchange Transactions; Form 1099-DIV, Dividends and Distributions; Form 1099-G, Certain Government Payments; Form 1099-INT, Interest Income; Form 1099-K, Payment Card and Third Party Network Transactions; Form 1099-MISC, Miscellaneous Income; Form 1099-OID, Original Issue Discount; Form 1099-PATR, Taxable Distributions Received from Cooperatives; Form 1099-Q, Payments From Qualified Education Programs; Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. 2012 free tax filing ; Form 1099-S, Proceeds From Real Estate Transactions; Form RRB-1099, Payments by the Railroad Retirement Board. 2012 free tax filing If you received the types of income reported on some forms in the 1099 series, you may not be able to use Form 1040A or Form 1040EZ. 2012 free tax filing See the instructions to these forms for details. 2012 free tax filing Form 1099-R. 2012 free tax filing   Attach Form 1099-R to your paper return if box 4 shows federal income tax withheld. 2012 free tax filing Include the amount withheld in the total on line 62 of Form 1040 or line 36 of Form 1040A. 2012 free tax filing You cannot use Form 1040EZ if you received payments reported on Form 1099-R. 2012 free tax filing Backup withholding. 2012 free tax filing   If you were subject to backup withholding on income you received during 2013, include the amount withheld, as shown on your Form 1099, in the total on line 62 of Form 1040, line 36 of Form 1040A, or line 7 of Form 1040EZ. 2012 free tax filing Form Not Correct If you receive a form with incorrect information on it, you should ask the payer for a corrected form. 2012 free tax filing Call the telephone number or write to the address given for the payer on the form. 2012 free tax filing The corrected Form W-2G or Form 1099 you receive will have an “X” in the “CORRECTED” box at the top of the form. 2012 free tax filing A special form, Form W-2c, Corrected Wage and Tax Statement, is used to correct a Form W-2. 2012 free tax filing In certain situations, you will receive two forms in place of the original incorrect form. 2012 free tax filing This will happen when your taxpayer identification number is wrong or missing, your name and address are wrong, or you received the wrong type of form (for example, a Form 1099-DIV instead of a Form 1099-INT). 2012 free tax filing One new form you receive will be the same incorrect form or have the same incorrect information, but all money amounts will be zero. 2012 free tax filing This form will have an “X” in the “CORRECTED” box at the top of the form. 2012 free tax filing The second new form should have all the correct information, prepared as though it is the original (the “CORRECTED” box will not be checked). 2012 free tax filing Form Received After Filing If you file your return and you later receive a form for income that you did not include on your return, you should report the income and take credit for any income tax withheld by filing Form 1040X, Amended U. 2012 free tax filing S. 2012 free tax filing Individual Income Tax Return. 2012 free tax filing Separate Returns If you are married but file a separate return, you can take credit only for the tax withheld from your own income. 2012 free tax filing Do not include any amount withheld from your spouse's income. 2012 free tax filing However, different rules may apply if you live in a community property state. 2012 free tax filing Community property states are listed in chapter 2. 2012 free tax filing For more information on these rules, and some exceptions, see Publication 555, Community Property. 2012 free tax filing Fiscal Years If you file your tax return on the basis of a fiscal year (a 12-month period ending on the last day of any month except December), you must follow special rules to determine your credit for federal income tax withholding. 2012 free tax filing For a discussion of how to take credit for withholding on a fiscal year return, see Fiscal Years (FY) in chapter 3 of Publication 505. 2012 free tax filing Estimated Tax Take credit for all your estimated tax payments for 2013 on line 63 of Form 1040 or line 37 of Form 1040A. 2012 free tax filing Include any overpayment from 2012 that you had credited to your 2013 estimated tax. 2012 free tax filing You must use Form 1040 or Form 1040A if you paid estimated tax. 2012 free tax filing You cannot use Form 1040EZ. 2012 free tax filing Name changed. 2012 free tax filing   If you changed your name, and you made estimated tax payments using your old name, attach a brief statement to the front of your paper tax return indicating: When you made the payments, The amount of each payment, Your name when you made the payments, and Your social security number. 2012 free tax filing The statement should cover payments you made jointly with your spouse as well as any you made separately. 2012 free tax filing   Be sure to report the change to the Social Security Administration. 2012 free tax filing This prevents delays in processing your return and issuing any refunds. 2012 free tax filing Separate Returns If you and your spouse made separate estimated tax payments for 2013 and you file separate returns, you can take credit only for your own payments. 2012 free tax filing If you made joint estimated tax payments, you must decide how to divide the payments between your returns. 2012 free tax filing One of you can claim all of the estimated tax paid and the other none, or you can divide it in any other way you agree on. 2012 free tax filing If you cannot agree, you must divide the payments in proportion to each spouse's individual tax as shown on your separate returns for 2013. 2012 free tax filing Divorced Taxpayers If you made joint estimated tax payments for 2013, and you were divorced during the year, either you or your former spouse can claim all of the joint payments, or you each can claim part of them. 2012 free tax filing If you cannot agree on how to divide the payments, you must divide them in proportion to each spouse's individual tax as shown on your separate returns for 2013. 2012 free tax filing If you claim any of the joint payments on your tax return, enter your former spouse's social security number (SSN) in the space provided on the front of Form 1040 or Form 1040A. 2012 free tax filing If you divorced and remarried in 2013, enter your present spouse's SSN in that space and write your former spouse's SSN, followed by “DIV,” to the left of Form 1040, line 63, or Form 1040A, line 37. 2012 free tax filing Underpayment Penalty for 2013 If you did not pay enough tax, either through withholding or by making timely estimated tax payments, you will have an underpayment of estimated tax and you may have to pay a penalty. 2012 free tax filing Generally, you will not have to pay a penalty for 2013 if any of the following apply. 2012 free tax filing The total of your withholding and estimated tax payments was at least as much as your 2012 tax (or 110% of your 2012 tax if your AGI was more than $150,000, $75,000 if your 2013 filing status is married filing separately) and you paid all required estimated tax payments on time. 2012 free tax filing The tax balance due on your 2013 return is no more than 10% of your total 2013 tax, and you paid all required estimated tax payments on time. 2012 free tax filing Your total 2013 tax minus your withholding and refundable credits is less than $1,000. 2012 free tax filing You did not have a tax liability for 2012 and your 2012 tax year was 12 months, or You did not have any withholding taxes and your current year tax less any household employment taxes is less than $1,000. 2012 free tax filing See Publication 505, chapter 4, for a definition of “total tax” for 2012 and 2013. 2012 free tax filing Farmers and fishermen. 2012 free tax filing   Special rules apply if you are a farmer or fisherman. 2012 free tax filing See Farmers and Fishermen in chapter 4 of Publication 505 for more information. 2012 free tax filing IRS can figure the penalty for you. 2012 free tax filing   If you think you owe the penalty but you do not want to figure it yourself when you file your tax return, you may not have to. 2012 free tax filing Generally, the IRS will figure the penalty for you and send you a bill. 2012 free tax filing However, if you think you are able to lower or eliminate your penalty, you must complete Form 2210 or Form 2210-F and attach it to your paper return. 2012 free tax filing See chapter 4 of Publication 505. 2012 free tax filing Prev  Up  Next   Home   More Online Publications