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Amend Tax Return 2012

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Amend Tax Return 2012

Amend tax return 2012 Index A Alien Resident, Resident alien. Amend tax return 2012 American Institute in Taiwan, U. Amend tax return 2012 S. Amend tax return 2012 employees of, American Institute in Taiwan. Amend tax return 2012 American Samoa, possession exclusion, American Samoa, Guam, and the Commonwealth of the Northern Mariana Islands Apprentices, treaty benefits for, Common Benefits Assistance (see Tax help) B Binational social security agreements, Bilateral Social Security (Totalization) Agreements Blocked income, Blocked Income Bona fide residence test Defined, Bona Fide Residence Test First year, Bona fide resident for part of a year. Amend tax return 2012 Last year, Bona fide resident for part of a year. Amend tax return 2012 Meeting the requirements, Publication 54 - Additional Material Qualifying for, Bona fide residence. Amend tax return 2012 , Reassignment. Amend tax return 2012 Treaty provisions, Special agreements and treaties. Amend tax return 2012 Voting by absentee ballot, Effect of voting by absentee ballot. Amend tax return 2012 Waiver of time requirements, Waiver of Time Requirements, U. Amend tax return 2012 S. Amend tax return 2012 Travel Restrictions C Camps, foreign, Foreign camps. Amend tax return 2012 Carryover of housing deduction, Carryover. Amend tax return 2012 Change of address, Reminders Choosing the exclusion, Choosing the Exclusion, When You Can Choose the Exclusion Clergy, self-employment tax on, Members of the Clergy Community income, Community income. Amend tax return 2012 Competent authority assistance, Competent Authority Assistance Contributions To foreign charitable organizations, Contributions to Foreign Charitable Organizations To IRAs, Contributions to Individual Retirement Arrangements Conventions, income tax, Purpose of Tax Treaties Credit Earned income, Earned income credit. Amend tax return 2012 , Earned income credit. Amend tax return 2012 Foreign tax, Foreign tax credit. Amend tax return 2012 , Taxes of Foreign Countries and U. Amend tax return 2012 S. Amend tax return 2012 Possessions, Deduction for Other Foreign Taxes, Common Benefits Related to excluded income, Items Related to Excluded Income Currency Foreign, Foreign Currency D Deductions Contributions to foreign charitable organizations, Contributions to Foreign Charitable Organizations Foreign taxes, Taxes of Foreign Countries and U. Amend tax return 2012 S. Amend tax return 2012 Possessions, Deduction for Other Foreign Taxes, Common Benefits, Publication 54 - Additional Material Housing, foreign, Foreign Housing Deduction IRA contributions, Contributions to Individual Retirement Arrangements Moving expenses, Moving Expenses, Forms To File Related to excluded income, Items Related to Excluded Income Reporting, How To Report Deductions Dependents Exemption for, Exemptions, Publication 54 - Additional Material Individual taxpayer identification number (ITIN), Social security number. Amend tax return 2012 Social security number, Social security number. Amend tax return 2012 Deposit of foreign currency with disbursing officer, Deposit of foreign currency with disbursing officer. Amend tax return 2012 E Earned income Foreign, Foreign Earned Income, Foreign camps. Amend tax return 2012 , Publication 54 - Additional Material Source of, Source of Earned Income Types of, Earned and Unearned Income, Storage expense reimbursements. Amend tax return 2012 Earned income credit, Earned income credit. Amend tax return 2012 , Earned income credit. Amend tax return 2012 Employer-provided amounts, Employer-provided amounts. Amend tax return 2012 Estimated tax, Estimated Tax Exclusion Foreign earned income, Foreign Earned Income Exclusion, When You Can Choose the Exclusion Housing, Foreign Housing Exclusion, Choosing the exclusion. Amend tax return 2012 Meals and lodging, Exclusion of Meals and Lodging U. Amend tax return 2012 S. Amend tax return 2012 possessions, American Samoa, Guam, and the Commonwealth of the Northern Mariana Islands Exemptions Dependents, Exemptions, Publication 54 - Additional Material Spouse, Exemptions, Publication 54 - Additional Material Extensions Filing income tax return, Extensions, Return filed before test is met. Amend tax return 2012 Meeting bona fide residence or physical presence test, Extension of time to meet tests. Amend tax return 2012 F Fellowships, Scholarships and fellowships. Amend tax return 2012 Figuring estimated tax on nonconvertible foreign income, Figuring estimated tax on nonconvertible foreign currency. Amend tax return 2012 Figuring U. Amend tax return 2012 S. Amend tax return 2012 income tax, Figuring actual tax. Amend tax return 2012 Filing information Estimated tax, Estimated Tax Filing requirements, Filing Requirements Nonresident spouse treated as resident, Nonresident Alien Spouse Treated as a Resident, Foreign earned income exclusion. Amend tax return 2012 Filing requirements By filing status, Filing Requirements Foreign currency, Foreign Currency When to file and pay, When To File and Pay, Return filed before test is met. Amend tax return 2012 , Publication 54 - Additional Material Where to file, Where To File, Publication 54 - Additional Material Foreign Camps, Foreign camps. Amend tax return 2012 Country, defined, Foreign Country Currency, Foreign Currency Earned income, Foreign Earned Income, Foreign camps. Amend tax return 2012 , Publication 54 - Additional Material Household, second, Second foreign household. Amend tax return 2012 Foreign currency, deposit with disbursing officer, Deposit of foreign currency with disbursing officer. Amend tax return 2012 Foreign earned income Defined, Foreign Earned Income, More information. Amend tax return 2012 U. Amend tax return 2012 S. Amend tax return 2012 Government employees, U. Amend tax return 2012 S. Amend tax return 2012 Government Employees, More information. Amend tax return 2012 Foreign earned income exclusion Choosing, Choosing the Exclusion, When You Can Choose the Exclusion Defined, Foreign Earned Income Exclusion Earned income credit, Earned income credit. Amend tax return 2012 Foreign tax credit, Foreign tax credit or deduction. Amend tax return 2012 Income received after year earned, Paid in year following work. Amend tax return 2012 , Example. Amend tax return 2012 Limit, Limit on Excludable Amount, Physical presence test. Amend tax return 2012 , Publication 54 - Additional Material Maximum exclusion, Limit on Excludable Amount, Physical presence test. Amend tax return 2012 Part-year exclusion, Part-year exclusion. Amend tax return 2012 Physical presence test, maximum exclusion, Physical presence test. Amend tax return 2012 Requirements, Who Qualifies for the Exclusions and the Deduction?, Foreign camps. Amend tax return 2012 Revoking choice, Revoking the Exclusion Foreign housing exclusion Earned income credit, Earned income credit. Amend tax return 2012 Foreign tax credit, Foreign tax credit or deduction. Amend tax return 2012 Foreign housing exclusion/deduction Carryover of deduction, Carryover. Amend tax return 2012 Deduction, figuring, Foreign Housing Deduction Exclusion, figuring, Foreign Housing Exclusion, Choosing the exclusion. Amend tax return 2012 Housing amount, Housing Amount Housing expenses, Housing expenses. Amend tax return 2012 Married couples, Married Couples Requirements, Who Qualifies for the Exclusions and the Deduction?, Foreign camps. Amend tax return 2012 Second foreign household, Second foreign household. Amend tax return 2012 Foreign tax credit Earned income exclusion, Foreign tax credit or deduction. Amend tax return 2012 , Foreign tax credit or deduction. Amend tax return 2012 Foreign taxes Credit for, Foreign tax credit. Amend tax return 2012 , Taxes of Foreign Countries and U. Amend tax return 2012 S. Amend tax return 2012 Possessions, Deduction for Other Foreign Taxes, Common Benefits Deduction for, Taxes of Foreign Countries and U. Amend tax return 2012 S. Amend tax return 2012 Possessions, Deduction for Other Foreign Taxes, Common Benefits, Publication 54 - Additional Material Paid on excluded income, Foreign taxes paid on excluded income. Amend tax return 2012 Form 1040-ES, Estimated Tax 1040X, Return filed before test is met. Amend tax return 2012 , How To Make the Choice 1116, Credit for Foreign Income Taxes 2032, Foreign affiliate. Amend tax return 2012 2350, How to get an extension. Amend tax return 2012 2555, Choosing the Exclusion, Form 2555 and Form 2555-EZ, Form 2555 2555-EZ, Choosing the Exclusion, Form 2555 and Form 2555-EZ, Form 2555 3115, Blocked Income 3903, Forms To File 4361, Members of the Clergy 4563, American Samoa. Amend tax return 2012 4868, Automatic 6-month extension. Amend tax return 2012 673, Statement. Amend tax return 2012 8689, Non-USVI resident with USVI income. Amend tax return 2012 8822, Reminders W-4, Foreign tax credit. Amend tax return 2012 Free tax services, Free help with your tax return. Amend tax return 2012 Frequently asked questions (FAQs), Publication 54 - Additional Material Fulbright grant, Fulbright Grant, Publication 54 - Additional Material G General tax questions, Publication 54 - Additional Material Green card test, Resident alien. Amend tax return 2012 Guam Possession exclusion, American Samoa, Guam, and the Commonwealth of the Northern Mariana Islands Residents of, Resident of Guam. Amend tax return 2012 Where to file, Resident of Guam. Amend tax return 2012 H Help (see Tax help) Housing Amount, Housing Amount, Self-employed and employer-provided amounts. Amend tax return 2012 Deduction, Foreign Housing Exclusion and Deduction, Foreign Housing Deduction Exclusion, Foreign Housing Exclusion and Deduction, Choosing the exclusion. Amend tax return 2012 Expenses, Housing expenses. Amend tax return 2012 I Income Apprentices, treaty benefits for, Common Benefits Artist, Income of an artist. Amend tax return 2012 Blocked, Blocked Income Community, Community income. Amend tax return 2012 Corporation, Income from a corporation. Amend tax return 2012 Earned, Foreign Earned Income, Foreign camps. Amend tax return 2012 , Publication 54 - Additional Material Employer's property or facilities, use of, Use of employer's property or facilities. Amend tax return 2012 Investment, treaty benefits for, Common Benefits Partnership, Income from a sole proprietorship or partnership. Amend tax return 2012 Pensions and annuities, Pensions and annuities. Amend tax return 2012 , Common Benefits Personal service, treaty benefits for, Common Benefits Professional fees, Professional fees. Amend tax return 2012 Professors, treaty benefits for, Common Benefits Railroad retirement benefits, Publication 54 - Additional Material Reimbursement of employee expenses, Reimbursement of employee expenses. Amend tax return 2012 Reimbursement of moving expenses, Reimbursement of moving expenses. Amend tax return 2012 Rental, Rental income. Amend tax return 2012 Royalties, Royalties. Amend tax return 2012 Social security benefits, Publication 54 - Additional Material Sole proprietorship, Income from a sole proprietorship or partnership. Amend tax return 2012 Source of, Source of Earned Income Stock options, Stock options. Amend tax return 2012 Students, treaty benefits for, Common Benefits Teachers, treaty benefits for, Common Benefits Trainees, treaty benefits for, Common Benefits Unearned, Earned and Unearned Income Indefinite assignment, Temporary or Indefinite Assignment Individual retirement arrangements (IRAs), Contributions to Individual Retirement Arrangements Individual taxpayer identification number (ITIN), Social security number. Amend tax return 2012 Investment income, treaty benefits for, Common Benefits IRAs, Contributions to Individual Retirement Arrangements L Limit on Foreign housing deduction, Limit Housing expenses, Limit on housing expenses. Amend tax return 2012 Income exclusion, Limit on Excludable Amount, Physical presence test. Amend tax return 2012 Lodging, exclusion of, Exclusion of Meals and Lodging M Married couples, Married Couples Meals and lodging, exclusion of, Exclusion of Meals and Lodging Moving Allocating expenses, Allocation of Moving Expenses Deducting expenses, Moving Expenses, Forms To File Reimbursement of expenses, Reimbursement of moving expenses. Amend tax return 2012 N Nonresident spouse Social security number, Social Security Number (SSN) Treated as resident, Nonresident Alien Spouse Treated as a Resident, Foreign earned income exclusion. Amend tax return 2012 Northern Mariana Islands Possession exclusion, American Samoa, Guam, and the Commonwealth of the Northern Mariana Islands Residents of, Resident of the Commonwealth of the Northern Mariana Islands. Amend tax return 2012 Where to file, Resident of the Commonwealth of the Northern Mariana Islands. Amend tax return 2012 P Part-year exclusion, Part-year exclusion. Amend tax return 2012 Pay for personal services, Earned income. Amend tax return 2012 , Common Benefits Paying U. Amend tax return 2012 S. Amend tax return 2012 tax in foreign currency, Paying U. Amend tax return 2012 S. Amend tax return 2012 tax in foreign currency. Amend tax return 2012 Payment of tax, When To File and Pay Penalties and interest, Publication 54 - Additional Material Pensions and annuities Income from, Pensions and annuities. Amend tax return 2012 , Common Benefits Withholding from, Withholding from pension payments. Amend tax return 2012 Physical presence test 12-month period, How to figure the 12-month period. Amend tax return 2012 Defined, Physical Presence Test Maximum exclusion, Physical presence test. Amend tax return 2012 Meeting the requirements, Publication 54 - Additional Material Waiver of time requirements, Waiver of Time Requirements, U. Amend tax return 2012 S. Amend tax return 2012 Travel Restrictions Professors, treaty benefits for, Common Benefits Publications (see Tax help) Puerto Rico Possession exclusion, Puerto Rico and U. Amend tax return 2012 S. Amend tax return 2012 Virgin Islands Residents of, Puerto Rico. Amend tax return 2012 Q Questions and answers, Publication 54 - Additional Material R Railroad retirement benefits, Publication 54 - Additional Material Reimbursement Accountable plan, Accountable plan. Amend tax return 2012 Employee expenses, Reimbursement of employee expenses. Amend tax return 2012 Moving expenses, Reimbursement of moving expenses. Amend tax return 2012 Resident alien defined, Resident alien. Amend tax return 2012 Revoking choice to exclude, Revoking the Exclusion S Scholarship and fellowship grants, Publication 54 - Additional Material Scholarships, Scholarships and fellowships. Amend tax return 2012 Second foreign household, Second foreign household. Amend tax return 2012 , Married Couples Self-employment tax Clergy, Members of the Clergy Exemption from, Exemption From Social Security and Medicare Taxes How to pay, Publication 54 - Additional Material Who must pay, Who Must Pay Self-Employment Tax? Social security and Medicare taxes, Social Security and Medicare Taxes Social security benefits, Publication 54 - Additional Material Social security number Dependents, Social security number. Amend tax return 2012 Nonresident spouse, Social Security Number (SSN) Source of earned income, Source of Earned Income Spouse, exemption for, Exemptions, Publication 54 - Additional Material Students, treaty benefits for, Common Benefits Substantial presence test, Resident alien. Amend tax return 2012 T Taiwan, American Institute in, American Institute in Taiwan. Amend tax return 2012 Tax help, How To Get Tax Help Tax home, Tax Home in Foreign Country, Temporary or Indefinite Assignment Tax treaties Benefits of, Common Benefits, More information on treaties. Amend tax return 2012 Competent authority assistance, Competent Authority Assistance Determining residence, Special agreements and treaties. Amend tax return 2012 Obtaining copies of, Obtaining Copies of Tax Treaties Purpose of, Purpose of Tax Treaties Teachers, treaty benefits for, Common Benefits Temporary assignment, expenses, Temporary or Indefinite Assignment Totalization agreements, Bilateral Social Security (Totalization) Agreements Trainees, treaty benefits for, Common Benefits Travel restrictions, U. Amend tax return 2012 S. Amend tax return 2012 Travel Restrictions Treaties (see Tax treaties) TTY/TDD information, How To Get Tax Help U U. Amend tax return 2012 S. Amend tax return 2012 Government employees, U. Amend tax return 2012 S. Amend tax return 2012 Government Employees, More information. Amend tax return 2012 U. Amend tax return 2012 S. Amend tax return 2012 Virgin Islands Possession exclusion, Puerto Rico and U. Amend tax return 2012 S. Amend tax return 2012 Virgin Islands V Virgin Islands Nonresidents of, Non-USVI resident with USVI income. Amend tax return 2012 Residents of, Resident of U. Amend tax return 2012 S. Amend tax return 2012 Virgin Islands (USVI). Amend tax return 2012 Where to file, Resident of U. Amend tax return 2012 S. Amend tax return 2012 Virgin Islands (USVI). Amend tax return 2012 W Waiver of time requirements, Waiver of Time Requirements, U. Amend tax return 2012 S. Amend tax return 2012 Travel Restrictions When to file and pay, When To File and Pay, Return filed before test is met. Amend tax return 2012 , Publication 54 - Additional Material Where to file Claiming exclusion/deduction, Where To File Commonwealth of the Northern Mariana Islands residents, Resident of the Commonwealth of the Northern Mariana Islands. Amend tax return 2012 Guam residents, Resident of Guam. Amend tax return 2012 No legal residence in U. Amend tax return 2012 S. Amend tax return 2012 , Where To File Virgin Islands residents, nonresidents, Resident of U. Amend tax return 2012 S. Amend tax return 2012 Virgin Islands (USVI). Amend tax return 2012 Withholding Income tax, Income Tax Withholding , Publication 54 - Additional Material Pension payments, Withholding from pension payments. Amend tax return 2012 Prev  Up     Home   More Online Publications
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The Amend Tax Return 2012

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