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Amended State Tax Form

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Amended State Tax Form

Amended state tax form Index A Absence, temporary, Temporary absences. Amended state tax form Address, change of, Reminders Aliens (see Nonresident aliens) Alimony, Alimony. Amended state tax form , Alimony, Instruments Executed Before 1985 Community income, Alimony (Community Income) Fees paid for getting, Fees for getting alimony. Amended state tax form No exemption for spouse, Alimony paid. Amended state tax form Annual exclusion, gift tax, Annual exclusion. Amended state tax form Annulment decrees Absolute decree, Ending the Marital Community Amended return required, Unmarried persons. Amended state tax form Considered unmarried, Unmarried persons. Amended state tax form Archer MSA, Archer medical savings account (MSA). Amended state tax form Assistance (see Tax help) B Basis Property received in settlement, Basis of property received. Amended state tax form Benefits paid under QDROs, Benefits paid to a child or other dependent. Amended state tax form , Benefits paid to a spouse or former spouse. Amended state tax form Birth of dependent, Death or birth. Amended state tax form C Change of address, Reminders Change of name, Reminders Change of withholding, Reminders Child custody, Custodial parent and noncustodial parent. Amended state tax form Child support Alimony, difference from, Child support. Amended state tax form Clearly associated with contingency, Clearly associated with a contingency. Amended state tax form Contingency relating to child, Contingency relating to your child. Amended state tax form Payment specifically designated as, Specifically designated as child support. Amended state tax form Child support under pre-1985 agreement, Child support under pre-1985 agreement. Amended state tax form Child tax credit, Exemptions for Dependents Children Birth of child Head of household, qualifying person to file as, Death or birth. Amended state tax form Claiming parent, when child is head of household, Special rule for parent. Amended state tax form Custody of, Custodial parent and noncustodial parent. Amended state tax form Death of child Head of household, qualifying person to file as, Death or birth. Amended state tax form Photographs of missing children, Reminders Community income, Community Income, Alimony (Community Income) Community property, Community Property, Alimony (Community Income) (see also Community income) Ending the marital community, Ending the Marital Community Laws disregarded, Certain community income not treated as community income by one spouse. Amended state tax form States, Community property states. Amended state tax form Costs of getting divorce, Costs of Getting a Divorce Fees for tax advice, Fees for tax advice. Amended state tax form Nondeductible expenses, Nondeductible expenses. Amended state tax form Custody of child, Custodial parent and noncustodial parent. Amended state tax form D Death of dependent, Death or birth. Amended state tax form Death of recipient spouse. Amended state tax form , Alimony Requirements Debts of spouse Refund applied to, Tax refund applied to spouse's debts. Amended state tax form Deductions Alimony paid, Deducting alimony paid. Amended state tax form Alimony recapture, Deducting the recapture. Amended state tax form Limits on IRAs, IRA contribution and deduction limits. Amended state tax form Marital, Marital deduction. Amended state tax form Dependents Exemption for, Exemptions for Dependents, Special Rule for Qualifying Child of More Than One Person Qualifying child, Exemptions for Dependents Qualifying child (Table 3), Table 3. Amended state tax form Overview of the Rules for Claiming an Exemption for a Dependent Qualifying relative, Exemptions for Dependents Qualifying relative (Table 3), Table 3. Amended state tax form Overview of the Rules for Claiming an Exemption for a Dependent Social security numbers, Reminders Divorce decrees Absolute decree, Ending the Marital Community Amended, Amended instrument. Amended state tax form Costs of getting, Costs of Getting a Divorce Defined for purposes of alimony, Divorce or separation instrument. Amended state tax form Invalid, Invalid decree. Amended state tax form Unmarried persons, Unmarried persons. Amended state tax form Divorced parents, Children of Divorced or Separated Parents (or Parents Who Live Apart) Child custody, Custodial parent and noncustodial parent. Amended state tax form Domestic relations orders (see Qualified domestic relations orders (QDROs)) Domicile, Community Income E Earned income, Earned income. Amended state tax form Equitable relief (see Relief from joint liability) Estimated tax, Tax Withholding and Estimated Tax Joint payments, Joint estimated tax payments. Amended state tax form Exemptions, Exemptions, Special Rule for Qualifying Child of More Than One Person Dependents, Exemptions for Dependents, Special Rule for Qualifying Child of More Than One Person Personal, Personal Exemptions Spouse, Exemption for Your Spouse F Fees for tax advice, Fees for tax advice. Amended state tax form Filing status, Filing Status, More information. Amended state tax form Head of household, Requirements. Amended state tax form Form 1040 Deducting alimony paid, Deducting alimony paid. Amended state tax form Reporting alimony received, Reporting alimony received. Amended state tax form Form 1040X Annulment, decree of, Unmarried persons. Amended state tax form Form 8332 Release of exemption to noncustodial parent, Written declaration. Amended state tax form Form 8379 Injured spouse, Injured spouse. Amended state tax form Form 8857 Innocent spouse relief, Relief from joint liability. Amended state tax form Form W-4 Withholding, Tax Withholding and Estimated Tax Form W-7 Individual taxpayer identification number (ITIN), Reminders Former spouse Defined for purposes of alimony, Spouse or former spouse. Amended state tax form Free tax services, How To Get Tax Help G Gift tax, Gift Tax on Property Settlements, Annual exclusion. Amended state tax form , Gift Tax Return H Head of household, Head of Household Health savings accounts (HSAs), Health savings account (HSA). Amended state tax form Help (see Tax help) Home owned jointly Alimony payments for, Payments for jointly-owned home. Amended state tax form Expenses for, as alimony (Table 4), Table 4. Amended state tax form Expenses for a Jointly-Owned Home Sale of, Sale of home. Amended state tax form HSAs (Health savings accounts), Health savings account (HSA). Amended state tax form I Identification number, Reminders Income, Community Income (see also Community income) Alimony received, Reporting alimony received. Amended state tax form Individual retirement arrangements (IRAs), Individual Retirement Arrangements, IRA contribution and deduction limits. Amended state tax form Individual taxpayer identification numbers (ITINs), Reminders Injured spouse, Injured spouse. Amended state tax form Innocent spouse relief, Relief from joint liability. Amended state tax form Insurance premiums, Life insurance premiums. Amended state tax form Invalid decree, Invalid decree. Amended state tax form IRAs (Individual retirement arrangements), Individual Retirement Arrangements, IRA contribution and deduction limits. Amended state tax form Itemized deductions on separate returns, Itemized deductions. Amended state tax form ITINs (Individual taxpayer identification numbers), Reminders J Joint liability Relief from, Reminders, Relief from joint liability. Amended state tax form Joint returns, Married Filing Jointly Change from separate return, Joint return after separate returns. Amended state tax form Change to separate return, Separate returns after joint return. Amended state tax form Divorced taxpayers, Divorced taxpayers. Amended state tax form Exemption for spouse, Joint return. Amended state tax form Joint and individual liability, Joint and individual liability. Amended state tax form Relief from joint liability, Relief from joint liability. Amended state tax form Signing, Signing a joint return. Amended state tax form Jointly-owned home Alimony payments for, Payments for jointly-owned home. Amended state tax form Expenses for, as alimony (Table 4), Table 4. Amended state tax form Expenses for a Jointly-Owned Home Sale of, Sale of Jointly-Owned Property, Sale of home. Amended state tax form K Kidnapped child Head of household status and, Kidnapped child. Amended state tax form L Liability for taxes (see Relief from joint liability) Life insurance premiums as alimony, Life insurance premiums. Amended state tax form M Marital community, ending, Ending the Marital Community Marital status, Marital status. Amended state tax form Married persons, Married persons. Amended state tax form Medical savings accounts (MSAs), Archer medical savings account (MSA). Amended state tax form Missing children, photographs of, Reminders More information (see Tax help) Mortgage payments as alimony, Payments for jointly-owned home. Amended state tax form MSAs (Medical savings accounts), Archer medical savings account (MSA). Amended state tax form N Name, change of, Reminders Nondeductible expenses, Nondeductible expenses. Amended state tax form Nonresident aliens Joint returns, Nonresident alien. Amended state tax form Withholding, Withholding on nonresident aliens. Amended state tax form P Parent Head of household, claim for, Special rule for parent. Amended state tax form Parents, divorced or separated, Children of Divorced or Separated Parents (or Parents Who Live Apart) Personal exemptions, Personal Exemptions Phaseout of Exemptions, Phaseout of Exemptions Property settlements, Property Settlements, Sale of home. Amended state tax form Publications (see Tax help) Q Qualified domestic relations orders (QDROs), Qualified Domestic Relations Order, Benefits paid to a child or other dependent. Amended state tax form , Benefits paid to a spouse or former spouse. Amended state tax form Qualifying child, exemption for, Exemptions for Dependents Qualifying child, exemption for (Table 3), Table 3. Amended state tax form Overview of the Rules for Claiming an Exemption for a Dependent Qualifying person, head of household, Qualifying person. Amended state tax form Table 2, Table 2. Amended state tax form Who Is a Qualifying Person Qualifying You To File as Head of Household?1 Qualifying relative, exemption for, Exemptions for Dependents Qualifying relative, exemption for (Table 3), Table 3. Amended state tax form Overview of the Rules for Claiming an Exemption for a Dependent R Recapture of alimony, Recapture of Alimony Refunds Injured spouse, community property, Injured spouse. Amended state tax form Spouse's debts, applied to, Tax refund applied to spouse's debts. Amended state tax form Release of exemption to noncustodial parent, Written declaration. Amended state tax form Revocation, Revocation of release of claim to an exemption. Amended state tax form Relief from joint liability, Reminders, Relief from joint liability. Amended state tax form Relief from separate return liability Community income, Relief from liability arising from community property law. Amended state tax form Reporting requirements Alimony received, Reporting alimony received. Amended state tax form Returns Amended return required, Unmarried persons. Amended state tax form Joint (see Joint returns) Separate (see Separate returns) Rollovers, Rollovers. Amended state tax form S Sales of jointly-owned property, Sale of Jointly-Owned Property Section 1041 election, Basis of property received. Amended state tax form Separate maintenance decrees, Unmarried persons. Amended state tax form , Divorce or separation instrument. Amended state tax form , Ending the Marital Community Separate returns, Married Filing Separately Change to or from joint return, Joint return after separate returns. Amended state tax form Community or separate income, Community or separate income. Amended state tax form Exemption for spouse, Separate return. Amended state tax form Itemized deductions, Itemized deductions. Amended state tax form Relief from liability, Relief from liability arising from community property law. Amended state tax form Separate liability, Separate liability. Amended state tax form Tax consequences, Separate returns may give you a higher tax. Amended state tax form Separated parents, Children of Divorced or Separated Parents (or Parents Who Live Apart) Separation agreements, Ending the Marital Community Defined for purposes of alimony, Divorce or separation instrument. Amended state tax form Separation of liability (see Relief from joint liability) Settlement of property (see Property settlements) Social security benefits, Social security benefits. Amended state tax form Social security numbers (SSNs) Alimony recipient's number required, Alimony Dependents, Reminders Spousal IRA, Spousal IRA. Amended state tax form Spouse Defined for purposes of alimony, Spouse or former spouse. Amended state tax form Refund applied to debts, Tax refund applied to spouse's debts. Amended state tax form Statute of limitations Amended return, Unmarried persons. Amended state tax form Injured spouse allocation, Injured spouse. Amended state tax form T Tables and figures Exemption for dependents (Table 3), Table 3. Amended state tax form Overview of the Rules for Claiming an Exemption for a Dependent Itemized deductions on separate returns (Table 1), Table 1. Amended state tax form Itemized Deductions on Separate Returns Jointly-owned home, expenses for, as alimony (Table 4), Table 4. Amended state tax form Expenses for a Jointly-Owned Home Property transferred pursuant to divorce (Table 5), Table 5. Amended state tax form Property Transferred Pursuant to Divorce Qualifying person for head of household (Table 2), Table 2. Amended state tax form Who Is a Qualifying Person Qualifying You To File as Head of Household?1 Tax advice fees, Fees for tax advice. Amended state tax form Tax help, How To Get Tax Help Tax withholding (see Withholding) Taxpayer Advocate, The Taxpayer Advocate Service is Here to Help You. Amended state tax form Taxpayer identification numbers, Reminders Third parties Alimony payments to, Payments to a third party. Amended state tax form , Payments to a third party. Amended state tax form Property settlements, transfers to, Transfers to third parties. Amended state tax form Tiebreaker rules, Tiebreaker rules. Amended state tax form TTY/TDD information, How To Get Tax Help U Underpayment of alimony, Underpayment. Amended state tax form Unmarried persons, Unmarried persons. Amended state tax form W Withholding Change of, Reminders, Tax Withholding and Estimated Tax Nonresident aliens, Withholding on nonresident aliens. Amended state tax form Worksheets Recapture of alimony (Worksheet 1), How to figure and report the recapture. Amended state tax form Prev  Up     Home   More Online Publications
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What you need to do

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Answers to Common Questions

What is the notice telling me?
This notice is another reminder that you still owe a balance on one of your tax accounts. You are getting this notice because we have not received your payment or response to previous notice(s) requesting you pay this balance.

What do I have to do?
Pay the amount due shown on the notice. Mail us your payment in the envelope we sent you. Include the bottom part of the notice to make sure we correctly credit your account.

If you can't pay the whole amount now, call us at the number printed at the top of the notice to see if you qualify for an installment agreement.

How much time do I have?
You should pay the entire balance within 10 days of the date of the notice or additional penalty and interest will be added.

What happens if I don't pay?
We may file a Notice of Federal Tax Lien that gives us legal claim to your property as security or payment for your tax debt. We will also look for other assets you may own.

Who should I contact?
If you have any questions about the notice, call us at the number printed at the top of the notice. A customer service representative will assist you.

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If you do not agree with this notice, call us immediately at the number printed at the top of the notice. We will do our best to help you.

Page Last Reviewed or Updated: 05-Mar-2014

The Amended State Tax Form

Amended state tax form 1. Amended state tax form   Tax Withholding for 2014 Table of Contents Introduction Useful Items - You may want to see: Salaries and WagesDetermining Amount of Tax Withheld Using Form W-4 Completing Form W-4 and Worksheets Getting the Right Amount of Tax Withheld Rules Your Employer Must Follow Exemption From Withholding Supplemental Wages Penalties Tips Taxable Fringe BenefitsSpecial rule. Amended state tax form Exceptions. Amended state tax form Sick Pay Pensions and AnnuitiesPeriodic Payments Nonperiodic Payments Eligible Rollover Distributions Choosing Not To Have Income Tax Withheld Gambling WinningsException. Amended state tax form Identical wagers. Amended state tax form Unemployment Compensation Federal Payments Backup WithholdingTaxpayer identification number. Amended state tax form Underreported interest or dividends. Amended state tax form Introduction This chapter discusses income tax withholding on: Salaries and wages, Tips, Taxable fringe benefits, Sick pay, Pensions and annuities, Gambling winnings, Unemployment compensation, and Certain federal payments. Amended state tax form This chapter explains in detail the rules for withholding tax from each of these types of income. Amended state tax form The discussion of salaries and wages includes an explanation of how to complete Form W-4. Amended state tax form This chapter also covers backup withholding on interest, dividends, and other payments. Amended state tax form Useful Items - You may want to see: Form (and Instructions) W-4 Employee's Withholding Allowance Certificate W-4P Withholding Certificate for Pension or Annuity Payments W-4S Request for Federal Income Tax Withholding From Sick Pay W-4V Voluntary Withholding Request See chapter 5 of this publication for information about getting these publications and forms. Amended state tax form Salaries and Wages Income tax is withheld from the pay of most employees. Amended state tax form Your pay includes your regular pay, bonuses, commissions, and vacation allowances. Amended state tax form It also includes reimbursements and other expense allowances paid under a nonaccountable plan. Amended state tax form See Supplemental Wages , later, for definitions of accountable and nonaccountable plans. Amended state tax form If your income is low enough that you will not have to pay income tax for the year, you may be exempt from withholding. Amended state tax form This is explained under Exemption From Withholding , later. Amended state tax form You can ask your employer to withhold income tax from noncash wages and other wages not subject to withholding. Amended state tax form If your employer does not agree to withhold tax, or if not enough is withheld, you may have to pay estimated tax, as discussed in chapter 2. Amended state tax form Military retirees. Amended state tax form   Military retirement pay is treated in the same manner as regular pay for income tax withholding purposes, even though it is treated as a pension or annuity for other tax purposes. Amended state tax form Household workers. Amended state tax form   If you are a household worker, you can ask your employer to withhold income tax from your pay. Amended state tax form A household worker is an employee who performs household work in a private home, local college club, or local fraternity or sorority chapter. Amended state tax form   Tax is withheld only if you want it withheld and your employer agrees to withhold it. Amended state tax form If you do not have enough income tax withheld, you may have to pay estimated tax, as discussed in chapter 2. Amended state tax form Farmworkers. Amended state tax form   Generally, income tax is withheld from your cash wages for work on a farm unless your employer both: Pays you cash wages of less than $150 during the year, and Has expenditures for agricultural labor totaling less than $2,500 during the year. Amended state tax form Differential wage payments. Amended state tax form   When employees are on leave from employment for military duty, some employers make up the difference between the military pay and civilian pay. Amended state tax form Payments to an employee who is on active duty for a period of more than 30 days will be subject to income tax withholding, but not subject to social security or Medicare taxes. Amended state tax form The wages and withholding will be reported on Form W-2, Wage and Tax Statement. Amended state tax form Determining Amount of Tax Withheld Using Form W-4 The amount of income tax your employer withholds from your regular pay depends on two things. Amended state tax form The amount you earn in each payroll period. Amended state tax form The information you give your employer on Form W-4. Amended state tax form Form W-4 includes four types of information that your employer will use to figure your withholding. Amended state tax form Whether to withhold at the single rate or at the lower married rate. Amended state tax form How many withholding allowances you claim (each allowance reduces the amount withheld). Amended state tax form Whether you want an additional amount withheld. Amended state tax form Whether you are claiming an exemption from withholding in 2014. Amended state tax form See Exemption From Withholding , later. Amended state tax form Note. Amended state tax form You must specify a filing status and a number of withholding allowances on Form W-4. Amended state tax form You cannot specify only a dollar amount of withholding. Amended state tax form New Job When you start a new job, you must fill out a Form W-4 and give it to your employer. Amended state tax form Your employer should have copies of the form. Amended state tax form If you need to change the information later, you must fill out a new form. Amended state tax form If you work only part of the year (for example, you start working after the beginning of the year), too much tax may be withheld. Amended state tax form You may be able to avoid overwithholding if your employer agrees to use the part-year method. Amended state tax form See Part-Year Method , later, for more information. Amended state tax form Employee also receiving pension income. Amended state tax form   If you receive pension or annuity income and begin a new job, you will need to file Form W-4 with your new employer. Amended state tax form However, you can choose to split your withholding allowances between your pension and job in any manner. Amended state tax form Changing Your Withholding During the year changes may occur to your marital status, exemptions, adjustments, deductions, or credits you expect to claim on your tax return. Amended state tax form When this happens, you may need to give your employer a new Form W-4 to change your withholding status or number of allowances. Amended state tax form If the changes reduce the number of allowances you are allowed to claim or changes your marital status from married to single, you must give your employer a new Form W-4 within 10 days. Amended state tax form See Marital Status (Line 3 of Form W-4) and Withholding Allowances (Line 5 of Form W-4) , later. Amended state tax form Generally, you can submit a new Form W-4 whenever you wish to change your withholding allowances for any other reason. Amended state tax form See Table 1-1 for examples of personal and financial changes you should consider. Amended state tax form Table 1-1. Amended state tax form Personal and Financial Changes Factor Examples Lifestyle change Marriage Divorce Birth or adoption of child Loss of an exemption Purchase of a new home Retirement Filing chapter 11 bankruptcy Wage income You or your spouse start or stop working, or start or stop a second job Change in the amount of taxable income not subject to withholding Interest income Dividends Capital gains Self-employment income IRA (including certain Roth  IRA) distributions Change in the amount of adjustments to income IRA deduction Student loan interest deduction Alimony expense Change in the amount of itemized deductions or tax credits Medical expenses Taxes Interest expense Gifts to charity Job expenses Dependent care expenses Education credit Child tax credit Earned income credit If you change the number of your withholding allowances, you can request that your employer withhold using the Cumulative Wage Method , explained later. Amended state tax form Checking Your Withholding After you have given your employer a Form W-4, you can check to see whether the amount of tax withheld from your pay is too much or too little. Amended state tax form If too much or too little tax is being withheld, you should give your employer a new Form W-4 to change your withholding. Amended state tax form You can get a blank Form W-4 from your employer or print the form from IRS. Amended state tax form gov. Amended state tax form You should try to have your withholding match your actual tax liability. Amended state tax form If not enough tax is withheld, you will owe tax at the end of the year and may have to pay interest and a penalty. Amended state tax form If too much tax is withheld, you will lose the use of that money until you get your refund. Amended state tax form Always check your withholding if there are personal or financial changes in your life or changes in the law that might change your tax liability. Amended state tax form See Table 1-1 for examples. Amended state tax form Note. Amended state tax form You cannot give your employer a payment to cover federal income tax withholding on salaries and wages for past pay periods or a payment for estimated tax. Amended state tax form When Should You Check Your Withholding? The earlier in the year you check your withholding, the easier it is to get the right amount of tax withheld. Amended state tax form You should check your withholding when any of the following situations occur. Amended state tax form You receive a paycheck stub (statement) covering a full pay period in 2014, showing tax withheld based on 2014 tax rates. Amended state tax form You prepare your 2013 tax return and get a: Big refund, or Balance due that is: More than you can comfortably pay, or Subject to a penalty. Amended state tax form There are changes in your life or financial situation that affect your tax liability. Amended state tax form See Table 1-1. Amended state tax form There are changes in the tax law that affect your tax liability. Amended state tax form How Do You Check Your Withholding? You can use the worksheets and tables in this publication to see if you are having the right amount of tax withheld. Amended state tax form You can also use the IRS Withholding calculator at www. Amended state tax form irs. Amended state tax form gov/individuals. Amended state tax form If you use the worksheets and tables in this publication, follow these steps. Amended state tax form Fill out Worksheet 1-5 to project your total federal income tax liability for 2014. Amended state tax form Fill out Worksheet 1-7 to project your total federal withholding for 2014 and compare that with your projected tax liability from Worksheet 1-5. Amended state tax form If you are not having enough tax withheld, line 6 of Worksheet 1-7 will show you how much more to have withheld each payday. Amended state tax form For ways to increase the amount of tax withheld, see How Do You Increase Your Withholding? If line 5 of Worksheet 1-7 shows that you are having more tax withheld than necessary, see How Do You Decrease Your Withholding, for ways to decrease the amount of tax you have withheld each payday. Amended state tax form How Do You Increase Your Withholding? There are two ways to increase your withholding. Amended state tax form You can: Decrease the number of allowances you claim on Form W-4, or Enter an additional amount that you want withheld from each paycheck on Form W-4. Amended state tax form Requesting an additional amount withheld. Amended state tax form   You can request that an additional amount be withheld from each paycheck by following these steps. Amended state tax form Complete Worksheets 1-5 and 1-7. Amended state tax form Complete a new Form W-4 if the amount on Worksheet 1-7, line 5: Is more than you want to pay with your tax return or in estimated tax payments throughout the year, or Would cause you to pay a penalty when you file your tax return for 2014. Amended state tax form Enter on your new Form W-4, the same number of withholding allowances your employer now uses for your withholding. Amended state tax form This is the number of allowances you entered on the last Form W-4 you gave your employer. Amended state tax form Enter on your new Form W-4, the amount from Worksheet 1-7, line 6. Amended state tax form Give your newly completed Form W-4 to your employer. Amended state tax form   If you have this additional amount withheld from your pay each payday, you should avoid owing a large amount at the end of the year. Amended state tax form Example. Amended state tax form Early in 2014, Steve Miller used Worksheets 1-5, 1-6, and 1-7 to project his 2014 tax liability ($4,316) and his withholding for the year ($3,516). Amended state tax form Steve's tax will be underwithheld by $800 ($4,316 − $3,516). Amended state tax form His choices are to pay this amount when he files his 2014 tax return, make estimated tax payments, or increase his withholding now. Amended state tax form Steve gets a new Form W-4 from his employer, who tells him that there are 50 paydays remaining in 2014. Amended state tax form Steve completes the new Form W-4 as before, entering the same number of withholding allowances as before, but, in addition, entering $16 ($800 ÷ 50) on the form as the additional amount to be withheld from his pay each payday. Amended state tax form He gives the completed form to his employer. Amended state tax form What if I have more than one job or my spouse also has a job?   You are more likely to need to increase your withholding if you have more than one job or if you are married filing jointly and your spouse also works. Amended state tax form If this is the case, you can increase your withholding for one or more of the jobs. Amended state tax form   You can apply the amount on Worksheet 1-7, line 5, to only one job or divide it between the jobs any way you wish. Amended state tax form For each job, determine the extra amount that you want to apply to that job and divide that amount by the number of paydays remaining in 2014 for that job. Amended state tax form This will give you the additional amount to enter on the Form W-4 you will file for that job. Amended state tax form You need to give your employer a new Form W-4 for each job for which you are changing your withholding. Amended state tax form Example. Amended state tax form Meg Green works in a store and earns $46,000 a year. Amended state tax form Her husband, John, works full-time in manufacturing and earns $68,000 a year. Amended state tax form In 2014, they will also have $184 in taxable interest and $1,000 of other taxable income. Amended state tax form They expect to file a joint income tax return. Amended state tax form Meg and John complete Worksheets 1-5, 1-6, and 1-7. Amended state tax form Line 5 of Worksheet 1-7 shows that they will owe an additional $4,459 after subtracting their withholding for the year. Amended state tax form They can divide the $4,459 any way they want. Amended state tax form They can enter an additional amount on either of their Forms W-4, or divide it between them. Amended state tax form They decide to have the additional amount withheld from John's wages, so they enter $91 ($4,459 ÷ 49 remaining paydays) on his Form W-4. Amended state tax form Both claim the same number of allowances as before. Amended state tax form How Do You Decrease Your Withholding? If your completed Worksheets 1-5 and 1-7 show that you may have more tax withheld than your projected tax liability for 2014, you may be able to decrease your withholding. Amended state tax form There are two ways to do this. Amended state tax form You can: Decrease any additional amount you are having withheld, or Increase the number of allowances you claim on Form W-4. Amended state tax form You can claim only the number of allowances to which you are entitled. Amended state tax form To see if you can decrease your withholding by increasing your allowances, see the Form W-4 instructions and the rest of this publication. Amended state tax form Increasing the number of allowances. Amended state tax form   Figure and increase the number of withholding allowances you can claim as follows. Amended state tax form On a new Form W-4, complete the Personal Allowances Worksheet. Amended state tax form If you plan to itemize deductions, claim adjustments to income, or claim tax credits, complete a new Deductions and Adjustments Worksheet. Amended state tax form If you plan to claim tax credits, see Converting Credits to Withholding Allowances, later. Amended state tax form If you meet the criteria on line H of the Form W-4 Personal Allowances Worksheet, complete a new Two-Earners/Multiple Jobs Worksheet. Amended state tax form If the number of allowances you can claim on Form W-4, is different from the number you already are claiming, give the newly completed Form W-4 to your employer. Amended state tax form Converting Credits to Withholding Allowances Table 1-2 , later, shows many of the tax credits you may be able to use to decrease your withholding. Amended state tax form The Form W-4 Personal Allowances Worksheet provides only rough adjustments for the child and dependent care credit and the child tax credit. Amended state tax form Complete Worksheet 1-8 to figure these credits more accurately and also take other credits into account. Amended state tax form Include the amount from line 12 of Worksheet 1-8 in the total on line 5 of the Deductions and Adjustments Worksheet. Amended state tax form Then complete the Deductions and Adjustments Worksheet and the rest of Form W-4. Amended state tax form If you take the child and dependent care credit into account on Worksheet 1-8, enter -0- on line F of the Personal Allowances Worksheet. Amended state tax form If you take the child tax credit into account on Worksheet 1-8, enter -0- on line G of the Personal Allowances Worksheet. Amended state tax form Example. Amended state tax form Brett and Alyssa Davis are married and expect to file a joint return for 2014. Amended state tax form Their expected taxable income from all sources is $68,000. Amended state tax form They expect to have $15,900 of itemized deductions. Amended state tax form Their projected tax credits include a child and dependent care credit of $960 and an adoption credit of $1,500. Amended state tax form The Davis' complete Worksheet 1-8, as follows, to see whether they can convert their tax credits into additional withholding allowances. Amended state tax form Line 1, expected child and dependent care credit—$960. Amended state tax form Line 9, expected adoption credit—$1,500. Amended state tax form Line 10, total estimated tax credits—$2,460. Amended state tax form Line 11. Amended state tax form Their combined total income from all sources, $68,000, falls between $42,001 and $98,000 on the table for married filing jointly or qualifying widow(er). Amended state tax form The number to the right of this range is 6. Amended state tax form 7. Amended state tax form Line 12, multiply line 10 by line 11—$16,482. Amended state tax form Then the Davis' complete the Form W-4 worksheets. Amended state tax form Because they choose to account for their child and dependent care credit on the Deductions and Adjustments Worksheet, they enter -0- on line F of the Personal Allowances Worksheet and figure a new total for line H. Amended state tax form They take the result on line 12 of Worksheet 1-8, add it to their other adjustments on line 5 of the Form W-4 Deductions and Adjustments Worksheet, and complete the Form W-4 worksheets. Amended state tax form When Will Your New Form W-4 Go Into Effect? If the change is for the current year, your employer must put your new Form W-4 into effect no later than the start of the first payroll period ending on or after the 30th day after the day on which you give your employer your revised Form W-4. Amended state tax form If the change is for next year, your new Form W-4 will not take effect until next year. Amended state tax form Retirees Returning to the Workforce When you first began receiving your pension, you told the payer how much tax to withhold, if any, by completing Form W-4P, Withholding Certificate for Pension or Annuity Payments (or similar form). Amended state tax form However, if your retirement pay is from the military or certain deferred compensation plans, you completed Form W-4 instead of Form W-4P. Amended state tax form You completed either form based on your projected income at that time. Amended state tax form Now that you are returning to the workforce, your new Form W-4 (given to your employer) and your Form W-4 or W-4P (on file with your pension plan) must work together to determine the correct amount of withholding for your new amount of income. Amended state tax form The worksheets that come with Forms W-4 and W-4P are basically the same, so you can use either set of worksheets to figure out how many withholding allowances you are entitled to claim. Amended state tax form Start off with the Personal Allowances Worksheet. Amended state tax form Then, if you will be itemizing your deductions, claiming adjustments to income, or claiming tax credits when you file your tax return, complete the Deductions and Adjustments Worksheet. Amended state tax form The third worksheet is the most important for this situation. Amended state tax form Form W-4 calls it the Two-Earners/Multiple Jobs Worksheet, Form W-4P calls it the Multiple Pensions/More-Than-One-Income Worksheet—both are the same. Amended state tax form If you have more than one source of income, in order to have enough withholding to cover the tax on your higher income, you may need to claim fewer withholding allowances or request your employer to withhold an additional amount from each paycheck. Amended state tax form Once you have figured out how many allowances you are entitled to claim, look at the income from both your pension and your new job, and how often you receive payments. Amended state tax form It is your decision how to divide up your withholding allowances between these sources of income. Amended state tax form For example, you may want to “take home” most of your weekly paycheck to use as spending money and use your monthly pension to “pay the bills. Amended state tax form ” In that case, change your Form W-4P to zero allowances and claim all that you are entitled to on your Form W-4. Amended state tax form There are a couple of ways you can get a better idea of how much tax will be withheld when claiming a certain number of allowances. Amended state tax form Use the withholding tables in Publication 15 (Circular E), Employer's Tax Guide. Amended state tax form Contact your pension provider and your employer's payroll department. Amended state tax form And remember, this is not a final decision. Amended state tax form If you do not get the correct amount of withholding with the first Forms W-4 and W-4P you submit, you should refigure your allowances (or divide them differently) using the information and worksheets in this publication, or the resources mentioned above. Amended state tax form You should go through this same process each time your life situation changes, whether it be for personal or financial reasons. Amended state tax form You may need more tax withheld, or you may need less. Amended state tax form Table 1-2. Amended state tax form Tax Credits for 2014 For more information about the . Amended state tax form . Amended state tax form . Amended state tax form See . Amended state tax form . Amended state tax form . Amended state tax form Adoption credit Form 8839 instructions Child and dependent care expenses, credit for Publication 503, Child and Dependent Care Expenses Child tax credit (including the additional child tax credit) Instructions for Form 1040 or Form 1040A Earned income credit Publication 596, Earned Income Credit Education credits Publication 970, Tax Benefits for Education Elderly or the disabled, credit for the Publication 524, Credit for the Elderly or the Disabled Foreign tax credit (except any credit that applies to wages not subject to U. Amended state tax form S. Amended state tax form income tax withholding because they are subject to income tax withholding by a foreign country) Publication 514, Foreign Tax Credit for Individuals General business credit Form 3800, General Business Credit Mortgage interest credit Publication 530, Tax Information for First-Time Homeowners Qualified electric vehicle passive activity credit Form 8834 Prior year minimum tax, credit for (if you paid alternative minimum tax in an earlier year) Form 8801 instructions Retirement savings contributions credit (saver's credit) Publication 590, Individual Retirement Arrangements (IRAs) Tax credit bonds, credit to holders of Form 8912 instructions Completing Form W-4 and Worksheets When reading the following discussion, you may find it helpful to refer to Form W-4. Amended state tax form Marital Status There is a lower withholding rate for people who qualify to check the “Married” box on line 3 of Form W-4. Amended state tax form Everyone else must have tax withheld at the higher single rate. Amended state tax form Single. Amended state tax form   You must check the “Single” box if any of the following applies. Amended state tax form You are single. Amended state tax form If you are divorced, or separated from your spouse under a court decree of separate maintenance, you are considered single. Amended state tax form You are married, but neither you nor your spouse is a citizen or resident of the United States. Amended state tax form You are married, either you or your spouse is a nonresident alien, and you have not chosen to have that person treated as a resident alien for tax purposes. Amended state tax form For more information, see Nonresident Spouse Treated as a Resident in chapter 1 of Publication 519. Amended state tax form Married. Amended state tax form   You qualify to check the “Married” box if any of the following applies. Amended state tax form You are married and neither you nor your spouse is a nonresident alien. Amended state tax form You are considered married for the whole year even if your spouse died during the year. Amended state tax form You are married and either you or your spouse is a nonresident alien who has chosen to be treated as a resident alien for tax purposes. Amended state tax form For more information, see Nonresident Spouse Treated as a Resident in chapter 1 of Publication 519. Amended state tax form You expect to be able to file your return as a qualifying widow or widower. Amended state tax form You usually can use this filing status if your spouse died within the previous 2 years and you provide more than half the cost of keeping up a home for the entire year that was the main home for you and your child whom you can claim as a dependent. Amended state tax form However, you must file a new Form W-4 showing your filing status as single by December 1 of the last year you are eligible to file as a qualifying widow or widower. Amended state tax form For more information on this filing status, see Qualifying Widow(er) With Dependent Child under Filing Status in Publication 501, Exemptions, Standard Deduction, and Filing Information. Amended state tax form Married, but withhold at higher single rate. Amended state tax form   Some married people find that they do not have enough tax withheld at the married rate. Amended state tax form This can happen, for example, when both spouses work. Amended state tax form To avoid this, you can check the “Married, but withhold at higher Single rate” box (even if you qualify for the married rate). Amended state tax form Also, you may find that more tax is withheld if you fill out the Two-Earners/Multiple Jobs Worksheet, explained later. Amended state tax form Withholding Allowances The more allowances you claim on Form W-4, the less income tax your employer will withhold. Amended state tax form You will have the most tax withheld if you claim “0” allowances. Amended state tax form The number of allowances you can claim depends on the following factors. Amended state tax form How many exemptions you can take on your tax return. Amended state tax form Whether you have income from more than one job. Amended state tax form What deductions, adjustments to income, and credits you expect to have for the year. Amended state tax form Whether you will file as head of household. Amended state tax form If you are married (filing jointly), it also depends on whether your spouse also works and claims any allowances on his or her own Form W-4. Amended state tax form Or, if married filing separately, whether or not your spouse also works. Amended state tax form Form W-4 worksheets. Amended state tax form    Form W-4 has worksheets to help you figure how many withholding allowances you can claim. Amended state tax form The worksheets are for your own records. Amended state tax form Do not give them to your employer. Amended state tax form   Complete only one set of Form W-4 worksheets, no matter how many jobs you have. Amended state tax form If you are married and will file a joint return, complete only one set of worksheets for you and your spouse, even if you both earn wages and each must give Form W-4 to your employers. Amended state tax form Complete separate sets of worksheets only if you and your spouse will file separate returns. Amended state tax form   If you are not exempt from withholding (see Exemption From Withholding , later), complete the Personal Allowances Worksheet on page 1 of the form. Amended state tax form Also, use the worksheets on page 2 of the form to adjust the number of your withholding allowances for itemized deductions and adjustments to income, and for two-earner or multiple-job situations. Amended state tax form If you want to adjust the number of your withholding allowances for certain tax credits, use the Deductions and Adjustments Worksheet on page 2 of Form W-4, even if you do not have any deductions or adjustments. Amended state tax form   Complete all worksheets that apply to your situation. Amended state tax form The worksheets will help you figure the maximum number of withholding allowances you are entitled to claim so that the amount of income tax withheld from your wages will match, as closely as possible, the amount of income tax you will owe at the end of the year. Amended state tax form Multiple jobs. Amended state tax form   If you have income from more than one job at the same time, complete only one set of Form W-4 worksheets. Amended state tax form Then split your allowances between the Forms W-4 for each job. Amended state tax form You cannot claim the same allowances with more than one employer at the same time. Amended state tax form You can claim all your allowances with one employer and none with the other(s), or divide them any other way. Amended state tax form Married individuals. Amended state tax form   If both you and your spouse are employed and expect to file a joint return, figure your withholding allowances using your combined income, adjustments, deductions, exemptions, and credits. Amended state tax form Use only one set of worksheets. Amended state tax form You can divide your total allowances any way, but you cannot claim an allowance that your spouse also claims. Amended state tax form   If you and your spouse expect to file separate returns, figure your allowances using separate worksheets based on your own individual income, adjustments, deductions, exemptions, and credits. Amended state tax form Alternative method of figuring withholding allowances. Amended state tax form   You do not have to use the Form W-4 worksheets if you use a more accurate method of figuring the number of withholding allowances. Amended state tax form   The method you use must be based on withholding schedules, the tax rate schedules, and the 2014 Estimated Tax Worksheet in chapter 2. Amended state tax form It must take into account only the items of income, adjustments to income, deductions, and tax credits that are taken into account on Form W-4. Amended state tax form   You can use the number of withholding allowances determined under an alternative method rather than the number determined using the Form W-4 worksheets. Amended state tax form You still must give your employer a Form W-4 claiming your withholding allowances. Amended state tax form Employees who are not citizens or residents. Amended state tax form   If you are neither a citizen nor a resident of the United States, you usually can claim only one withholding allowance. Amended state tax form However, this rule does not apply if you are a resident of Canada or Mexico, or if you are a U. Amended state tax form S. Amended state tax form national. Amended state tax form It also does not apply if your spouse is a U. Amended state tax form S. Amended state tax form citizen or resident and you have chosen to be treated as a resident of the United States for tax purposes. Amended state tax form Special rules apply to residents of South Korea and India. Amended state tax form For more information, see Withholding From Compensation in chapter 8 of Publication 519. Amended state tax form Personal Allowances Worksheet Use the Personal Allowances Worksheet on page 1 of Form W-4 to figure your withholding allowances based on all of the following that apply. Amended state tax form Exemptions. Amended state tax form Only one job. Amended state tax form Head of household filing status. Amended state tax form Child and dependent care credit. Amended state tax form Child tax credit. Amended state tax form Exemptions (worksheet lines A, C, and D). Amended state tax form   You can claim one withholding allowance for each exemption you expect to claim on your tax return. Amended state tax form Self. Amended state tax form   You can claim an allowance for your exemption on line A unless another person can claim an exemption for you on his or her tax return. Amended state tax form If another person is entitled to claim an exemption for you, you cannot claim an allowance for your exemption even if the other person will not claim your exemption. Amended state tax form Spouse. Amended state tax form   You can claim an allowance for your spouse's exemption on line C unless your spouse is claiming his or her own exemption or another person can claim an exemption for your spouse. Amended state tax form Do not claim this allowance if you and your spouse expect to file separate returns. Amended state tax form Dependents. Amended state tax form   You can claim one allowance on line D for each exemption you will claim for a dependent on your tax return. Amended state tax form Only one job (worksheet line B). Amended state tax form    You can claim an additional withholding allowance if any of the following apply for 2014. Amended state tax form You are single and you have only one job at a time. Amended state tax form You are married, you have only one job at a time, and your spouse does not work. Amended state tax form Your wages from a second job or your spouse's wages (or the total of both) are $1,500 or less. Amended state tax form If you qualify for this allowance, enter “1” on line B of the worksheet. Amended state tax form Head of household filing status (worksheet line E). Amended state tax form   Generally, you can file as head of household if you are unmarried and pay more than half the cost of keeping up a home that: Was the main home for all of 2014 of your parent whom you can claim as a dependent, or You lived in for more than half the year with your qualifying child or any other person you can claim as a dependent. Amended state tax form For more information, see Publication 501. Amended state tax form   If you expect to file as head of household on your 2014 tax return, enter “1” on line E of the worksheet. Amended state tax form Reduction of personal allowances. Amended state tax form   For 2014, your deduction for personal exemptions on your tax return is reduced if your adjusted gross income (AGI) is more than the AGI shown next for your filing status. Amended state tax form Personal Allowance Phaseout Threshold Single $254,200 Married filing jointly or qualifying widow(er) $305,050 Married filing separately $152,525 Head of household $279,650   If you expect your AGI to be more than the amount listed, use Worksheet 1-1 to figure your reduced number of personal allowances on lines A, C, and D of the Personal Allowances Worksheet. Amended state tax form Worksheet 1-1. Amended state tax form Personal Allowances Worksheet (Form W-4) Reduction of Personal Allowances if AGI Above Phaseout Threshold 1. Amended state tax form Enter the total amount of allowances on lines A, C, and D of the Personal Allowance Worksheet without regard to the phaseout rule 1. Amended state tax form   2. Amended state tax form Enter your expected AGI 2. Amended state tax form       3. Amended state tax form Enter $254,200 if single $305,050 if married filing jointly or qualifying widow(er) $152,525 if married filing separately $279,650 if head of household 3. Amended state tax form       4. Amended state tax form Subtract line 3 from line 2 4. Amended state tax form       5. Amended state tax form Divide line 4 by $125,000 ($62,500 if married filing separately). Amended state tax form Enter the result as a decimal 5. Amended state tax form   6. Amended state tax form Multiply line 1 by line 5. Amended state tax form If the result is not a whole number, increase it to the next higher whole number 6. Amended state tax form   7. Amended state tax form Subtract line 6 from line 1. Amended state tax form The total of the numbers you enter on A, C, and D of the Personal Allowances Worksheet can not be more than this amount 7. Amended state tax form     Child and dependent care credit (worksheet line F). Amended state tax form   Enter “1” on line F if you expect to claim a credit for at least $2,000 of qualifying child or dependent care expenses on your 2014 return. Amended state tax form Generally, qualifying expenses are those you pay for the care of your dependent who is your qualifying child under age 13 or for your spouse or dependent who is not able to care for himself or herself so that you can work or look for work. Amended state tax form For more information, see Publication 503, Child and Dependent Care Expenses. Amended state tax form   Instead of using line F, you can choose to take the credit into account on line 5 of the Deductions and Adjustments Worksheet, as explained under Tax credits , later. Amended state tax form Child tax credit (worksheet line G). Amended state tax form   If your total income will be less than $65,000 ($95,000 if married), enter “2” on line G for each eligible child. Amended state tax form Subtract “1” from that amount if you have three to six eligible children. Amended state tax form Subtract “2” from that amount if you have seven or more eligible children. Amended state tax form   If your total income will be between $65,000 and $84,000 ($95,000 and $119,000 if married), enter “1” on line G for each eligible child. Amended state tax form   An eligible child is any child: Who is your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, half brother, half sister, or a descendant of any of them (for example, your grandchild, niece, or nephew), Who will be under age 17 at the end of 2014, Who is younger than you (or your spouse if filing jointly) or permanently and totally disabled, Who will not provide over half of his or her own support for 2014, Who will not file a joint return, unless the return is filed only as a claim for refund, Who will live with you for more than half of 2014, Who is a U. Amended state tax form S. Amended state tax form citizen, U. Amended state tax form S. Amended state tax form national, or U. Amended state tax form S. Amended state tax form resident alien, and Who will be claimed as a dependent on your return. Amended state tax form If you are a U. Amended state tax form S. Amended state tax form citizen or U. Amended state tax form S. Amended state tax form national and your adopted child lived with you all year as a member of your household, that child meets the citizenship test. Amended state tax form   Also, if any other person can claim the child as an eligible child, see Qualifying child of more than one person in the 2013 instructions for Form 1040 or 1040A, line 6c. Amended state tax form   For more information about the child tax credit, see the instructions for Form 1040 or Form 1040A. Amended state tax form   Instead of using line G, you can choose to take the credit into account on line 5 of the Deductions and Adjustments Worksheet, as explained under Tax credits , later. Amended state tax form Total personal allowances (worksheet line H). Amended state tax form    Add lines A through G and enter the total on line H. Amended state tax form If you do not use either of the worksheets on the back of Form W-4, enter the number from line H on line 5 of Form W-4. Amended state tax form Deductions and Adjustments Worksheet Use the Deductions and Adjustments Worksheet on page 2 of Form W-4 if you plan to itemize your deductions, claim certain credits, or claim adjustments to the income on your 2014 tax return and you want to reduce your withholding. Amended state tax form Also, complete this worksheet when you have changes to those items to see if you need to change your withholding. Amended state tax form Use the amount of each item you reasonably can expect to show on your return. Amended state tax form However, do not use more than: The amount shown for that item on your 2013 return (or your 2012 return if you have not yet filed your 2013 return), plus Any additional amount related to a transaction or occurrence (such as payments already made, the signing of an agreement, or the sale of property) that you can prove has happened or will happen during 2013 or 2014. Amended state tax form Do not include any amount shown on your last tax return that has been disallowed by the IRS. Amended state tax form Example. Amended state tax form On June 30, 2013, you bought your first home. Amended state tax form On your 2013 tax return, you claimed itemized deductions of $6,600, the total mortgage interest and real estate tax you paid during the 6 months you owned your home. Amended state tax form Based on your mortgage payment schedule and your real estate tax assessment, you reasonably can expect to claim deductions of $13,200 for those items on your 2014 return. Amended state tax form You can use $13,200 to figure the number of your withholding allowances for itemized deductions. Amended state tax form Not itemizing deductions. Amended state tax form   If you expect to claim the standard deduction on your tax return, skip lines 1 and 2, and enter “0” on line 3 of the worksheet. Amended state tax form Itemized deductions (worksheet line 1). Amended state tax form   Enter your estimated total itemized deductions on line 1 of the worksheet. Amended state tax form   Listed below are some of the deductions you can take into account when figuring additional withholding allowances for 2014. Amended state tax form You normally claim these deductions on Schedule A of Form 1040. Amended state tax form Medical and dental expenses that are more than 10% (7. Amended state tax form 5% if either you or your spouse was born before January 2, 1950) of your 2014 AGI (defined under AGI , later). Amended state tax form State and local income or property taxes. Amended state tax form Deductible home mortgage interest. Amended state tax form Investment interest up to net investment income. Amended state tax form Charitable contributions. Amended state tax form Casualty and theft losses that are more than $100 and 10% of your AGI. Amended state tax form Fully deductible miscellaneous itemized deductions, including: Impairment-related work expenses of persons with disabilities, Federal estate tax on income in respect of a decedent, Repayment of more than $3,000 of income held under a claim of right that you included in income in an earlier year because at the time you thought you had an unrestricted right to it, Unrecovered investments in an annuity contract under which payments have ceased because of the annuitant's death, Gambling losses up to the amount of gambling winnings reported on your return, and Casualty and theft losses from  income-producing property. Amended state tax form Other miscellaneous itemized deductions that are more than 2% of your AGI, including: Unreimbursed employee business expenses, such as education expenses, work clothes and uniforms, union dues and fees, and the cost of work-related small tools and supplies, Safe deposit box rental, Tax counsel and assistance, and Certain fees paid to an IRA trustee or custodian. Amended state tax form AGI. Amended state tax form   For the purpose of estimating your itemized deductions, your AGI is your estimated total income for 2014 minus any estimated adjustments to income (discussed later) that you include on line 4 of the Deductions and Adjustments Worksheet. Amended state tax form Phaseout of itemized deductions. Amended state tax form   For 2014, your total itemized deductions may be phased out (reduced) if your AGI is more than the following thresholds. Amended state tax form    Itemized Deduction Phaseout Threshold Single $254,200 Married filing jointly or qualifying widow(er) $305,050 Married filing separately $152,525 Head of household $279,650   If you expect your AGI to be more than the amount listed, use Worksheet 1–2 to figure your reduction in itemized deductions. Amended state tax form Worksheet 1-2. Amended state tax form Deductions and Adjustments Worksheet (Form W-4)—Line 1 Phaseout of Itemized Deductions 1. Amended state tax form Enter the estimated total of your itemized deductions 1. Amended state tax form   2. Amended state tax form Enter the amount included in line 1 for medical and dental expenses, investment interest, casualty or theft losses, and gambling losses 2. Amended state tax form   3. Amended state tax form Is the amount on line 2 less than the amount on line 1? ❑ No. Amended state tax form Stop here. Amended state tax form Your deduction is not limited. Amended state tax form Enter the amount from line 1 above on line 1 of the Deductions and Adjustments Worksheet. Amended state tax form  ❑ Yes. Amended state tax form Subtract line 2 from line 1. Amended state tax form 3. Amended state tax form       4. Amended state tax form Multiply line 3 by 80% (. Amended state tax form 80) 4. Amended state tax form       5. Amended state tax form Enter your expected AGI 5. Amended state tax form       6. Amended state tax form Enter $305,050 If married filing jointly or qualifying widow(er), $279,650 if head of household, $254,200 if single, or $152,525 if married filing separately 6. Amended state tax form   7. Amended state tax form Is the amount on line 6 less than the amount on line 5? ❑ No. Amended state tax form Stop here. Amended state tax form Your deduction is not limited. Amended state tax form Enter the amount from line 1 above on line 1 of the Deductions and Adjustments Worksheet. Amended state tax form  ❑ Yes. Amended state tax form Subtract line 6 from line 5. Amended state tax form 7. Amended state tax form       8. Amended state tax form Multiply line 7 by 3% (. Amended state tax form 03) 8. Amended state tax form       9. Amended state tax form Enter the smaller of line 4 or line 8 9. Amended state tax form     10. Amended state tax form Subtract line 9 from line 1. Amended state tax form Enter the result here and on line 1 of the Deductions and Adjustments Worksheet 10. Amended state tax form     Adjustments to income (worksheet line 4). Amended state tax form   Enter your estimated total adjustments to income on line 4 of the Deductions and Adjustments Worksheet. Amended state tax form   You can take the following adjustments to income into account when figuring additional withholding allowances for 2014. Amended state tax form These adjustments appear on page 1 of your Form 1040 or 1040A. Amended state tax form Net losses from Schedules C, D, E, and F of Form 1040 and from Part II of Form 4797, line 18b. Amended state tax form Net operating loss carryovers. Amended state tax form Certain business expenses of reservists, performing artists, and fee-based government officials. Amended state tax form Health savings account or medical savings account deduction. Amended state tax form Certain moving expenses. Amended state tax form Deduction for self-employment tax. Amended state tax form Deduction for contributions to self-employed SEP, and qualified SIMPLE plans. Amended state tax form Self-employed health insurance deduction. Amended state tax form Penalty on early withdrawal of savings. Amended state tax form Alimony paid. Amended state tax form IRA deduction. Amended state tax form Student loan interest deduction. Amended state tax form Jury duty pay given to your employer. Amended state tax form Reforestation amortization and expenses. Amended state tax form Deductible expenses related to income reported on line 21 from the rental of personal property engaged in for profit. Amended state tax form Repayment of certain supplemental unemployment benefits. Amended state tax form Contributions to IRC 501(c)(18)(D) pension plans. Amended state tax form Contributions by certain chaplains to IRC 403(b) plans. Amended state tax form Attorney fees and court costs for certain unlawful discrimination claims. Amended state tax form Attorney fees and court costs for certain whistleblower awards. Amended state tax form Estimated amount of decrease in tax attributable to income averaging using Schedule J (Form 1040). Amended state tax form Tax credits (worksheet line 5). Amended state tax form   Although you can take most tax credits into account when figuring withholding allowances, the Personal Allowances Worksheet uses only the child and dependent care credit (line F) and the child tax credit (line G). Amended state tax form But you can take these credits and others into account by adding an extra amount on line 5 of the Deductions and Adjustments Worksheet. Amended state tax form   If you take the child and dependent care credit into account on line 5, do not use line F. Amended state tax form If you take the child tax credit into account on line 5, do not use line G. Amended state tax form   In addition to the child and dependent care credit and the child tax credit, you can generally take into account the following credits. Amended state tax form See the individual tax form instructions for more details. Amended state tax form Foreign tax credit, except any credit that applies to wages not subject to U. Amended state tax form S. Amended state tax form income tax withholding because they are subject to income tax withholding by a foreign country. Amended state tax form See Publication 514, Foreign Tax Credit for Individuals. Amended state tax form Credit for the elderly or the disabled. Amended state tax form See Publication 524, Credit for the Elderly or the Disabled. Amended state tax form Education credits. Amended state tax form See Publication 970, Tax Benefits for Education. Amended state tax form Retirement savings contributions credit (saver's credit). Amended state tax form See Publication 590. Amended state tax form Mortgage interest credit. Amended state tax form See Publication 530, Tax Information for Homeowners. Amended state tax form Adoption credit. Amended state tax form See the Instructions for Form 8839. Amended state tax form Credit for nonrefundable portion of prior year minimum tax if you paid alternative minimum tax in an earlier year. Amended state tax form See the Instructions for Form 8801. Amended state tax form General business credit. Amended state tax form See the Instructions for Form 3800. Amended state tax form Earned income credit. Amended state tax form See Publication 596. Amended state tax form Figuring line 5 entry. Amended state tax form   To figure the amount to add on line 5 for tax credits, multiply your estimated total credits by the appropriate number from Table 1-3 . Amended state tax form Example. Amended state tax form You are married and expect to file a joint return for 2014. Amended state tax form Your combined estimated wages are $68,000. Amended state tax form Your estimated tax credits include a child and dependent care credit of $960 and a mortgage interest credit of $1,700 (total credits = $2,660). Amended state tax form In Table 1-3, the number corresponding to your combined estimated wages ($42,001 – $98,000) is 6. Amended state tax form 7. Amended state tax form Multiply your total estimated tax credits of $2,660 by 6. Amended state tax form 7. Amended state tax form Add the result, $17,822, to the amount you otherwise would show on line 5 of the Deductions and Adjustments Worksheet and enter the total on line 5. Amended state tax form Because you choose to account for your child and dependent care credit this way, do not make an entry on line F of the Personal Allowances Worksheet. Amended state tax form Nonwage income (worksheet line 6). Amended state tax form   Enter on line 6 your estimated total nonwage income (other than tax-exempt income). Amended state tax form Nonwage income includes interest, dividends, net rental income, unemployment compensation, alimony, gambling winnings, prizes and awards, hobby income, capital gains, royalties, and partnership income. Amended state tax form   If line 6 is more than line 5, you may not have enough income tax withheld from your wages. Amended state tax form See Getting the Right Amount of Tax Withheld , later. Amended state tax form Net deductions and adjustments (worksheet line 8). Amended state tax form    If line 7 is less than $3,950, enter “0” on line 8. Amended state tax form If line 7 is $3,950 or more, divide it by $3,950, drop any fraction, and enter the result on line 8. Amended state tax form Example. Amended state tax form If line 7 is $5,200, $5,200 ÷ $3,950 = 1. Amended state tax form 32. Amended state tax form Drop the fraction (. Amended state tax form 32) and enter “1” on line 8. Amended state tax form Two-Earners/Multiple Jobs Worksheet Complete the Two-Earners/Multiple Jobs Worksheet on page 2 of Form W-4 if you have more than one job or are married and you and your spouse both work and the combined earnings from all jobs are more than $50,000 ($20,000 if married). Amended state tax form Reducing your allowances (worksheet lines 1-3). Amended state tax form   On line 1 of the worksheet, enter the number from line H of the Personal Allowances Worksheet (or line 10 of the Deductions and Adjustments Worksheet, if used). Amended state tax form Using Table 1 in the Two-Earners/Multiple Jobs Worksheet, find the number listed beside the amount of your estimated wages for the year from your lowest paying job (or if lower and you are filing jointly, your spouse's job). Amended state tax form Enter that number on line 2. Amended state tax form However, if you are married filing jointly and estimated wages from the highest paying job are $65,000 or less, do not enter more than “3. Amended state tax form ”    Table 1-3. Amended state tax form Deductions and Adjustments Worksheet (Form W-4)—Line 5 a. Amended state tax form  Married Filing Jointly or Qualifying Widow(er) If combined income from all sources is:   Multiply credits by: $0 – 42,000 10. Amended state tax form 0 $42,001 – 98,000 6. Amended state tax form 7 $98,001 – 180,000 4. Amended state tax form 0 $180,001 – 270,000 3. Amended state tax form 6 $270,001 – 440,000 3. Amended state tax form 0 $440,001 – 490,000. Amended state tax form . Amended state tax form . Amended state tax form . Amended state tax form 2. Amended state tax form 9 $490,001 and over 2. Amended state tax form 5 b. Amended state tax form  Single If combined income from all sources is:   Multiply credits by: $0 – 19,000 10. Amended state tax form 0 $19,001 – 47,000 6. Amended state tax form 7 $47,001 – 104,000 4. Amended state tax form 0 $104,001 – 205,000 3. Amended state tax form 6 $205,001 – 430,000 3. Amended state tax form 0 $430,001 and over 2. Amended state tax form 5 c. Amended state tax form  Head of Household If combined income from all sources is:   Multiply credits by: $0 – 30,000 10. Amended state tax form 0 $30,001 – 66,000 6. Amended state tax form 7 $66,001 – 150,000 4. Amended state tax form 0 $150,001 – 235,000 3. Amended state tax form 6 $235,001 – 430,000 3. Amended state tax form 0 $430,001 – 460,000 2. Amended state tax form 9 $460,001 and over 2. Amended state tax form 5 d. Amended state tax form  Married Filing Separately   If combined income from all sources is:   Multiply credits by: $0 – 21,000 10. Amended state tax form 0 $21,001 – 49,000 6. Amended state tax form 7 $49,001 – 90,000 4. Amended state tax form 0 $90,001 – 135,000 3. Amended state tax form 6 $135,001 – 220,000 3. Amended state tax form 0 $220,001 – 245,000 2. Amended state tax form 9 $245,001 and over 2. Amended state tax form 5   Subtract line 2 from line 1 and enter the result (but not less than zero) on line 3 and on Form W-4, line 5. Amended state tax form If line 1 is more than or equal to line 2, do not use the rest of the worksheet. Amended state tax form   If line 1 is less than line 2, enter “0” on Form W-4, line 5. Amended state tax form Then complete lines 4 through 9 of the worksheet to figure the additional withholding needed to avoid underwithholding. Amended state tax form Other amounts owed. Amended state tax form   If you expect to owe amounts other than income tax, such as self-employment tax, include them on line 8. Amended state tax form The total is the additional withholding needed for the year. Amended state tax form Getting the Right Amount of Tax Withheld In most situations, the tax withheld from your pay will be close to the tax you figure on your return if you follow these two rules. Amended state tax form You accurately complete all the Form W-4 worksheets that apply to you. Amended state tax form You give your employer a new Form W-4 when changes occur. Amended state tax form But because the worksheets and withholding methods do not account for all possible situations, you may not be getting the right amount withheld. Amended state tax form This is most likely to happen in the following situations. Amended state tax form You are married and both you and your spouse work. Amended state tax form You have more than one job at a time. Amended state tax form You have nonwage income, such as interest, dividends, alimony, unemployment compensation, or self-employment income. Amended state tax form You will owe additional amounts with your return, such as self-employment tax. Amended state tax form Your withholding is based on obsolete Form W-4 information for a substantial part of the year. Amended state tax form Your earnings are more than $130,000 if you are single or $180,000 if you are married. Amended state tax form You work only part of the year. Amended state tax form You change the number of your withholding allowances during the year. Amended state tax form You are subject to Additional Medicare Tax or Net Investment Income Tax. Amended state tax form If you anticipate liability for Additional Medicare Tax or Net Investment Income Tax, you may request that your employer withhold an additional amount of income tax withholding on Form W-4. Amended state tax form Part-Year Method If you work only part of the year and your employer agrees to use the part-year withholding method, less tax will be withheld from each wage payment than would be withheld if you worked all year. Amended state tax form To be eligible for the part-year method, you must meet both of the following requirements. Amended state tax form You must use the calendar year (the 12 months from January 1 through December 31) as your tax year. Amended state tax form You cannot use a fiscal year. Amended state tax form You must not expect to be employed for more than 245 days during the year. Amended state tax form To figure this limit, count all calendar days that you are employed (including weekends, vacations, and sick days) beginning with the first day you are on the job for pay and ending with your last day of work. Amended state tax form If you are temporarily laid off for 30 days or less, count those days too. Amended state tax form If you are laid off for more than 30 days, do not count those days. Amended state tax form You will not meet this requirement if you begin working before May 1 and expect to work for the rest of the year. Amended state tax form How to apply for the part-year method. Amended state tax form   You must ask your employer in writing to use this method. Amended state tax form The request must state all three of the following. Amended state tax form The date of your last day of work for any prior employer during the current calendar year. Amended state tax form That you do not expect to be employed more than 245 days during the current calendar year. Amended state tax form That you use the calendar year as your tax year. Amended state tax form Cumulative Wage Method If you change the number of your withholding allowances during the year, too much or too little tax may have been withheld for the period before you made the change. Amended state tax form You may be able to compensate for this if your employer agrees to use the cumulative wage withholding method for the rest of the year. Amended state tax form You must ask your employer in writing to use this method. Amended state tax form To be eligible, you must have been paid for the same kind of payroll period (weekly, biweekly, etc. Amended state tax form ) since the beginning of the year. Amended state tax form Aids for Figuring Your Withholding IRS Withholding Calculator. Amended state tax form   If you had too much or too little income tax withheld from your pay, the IRS provides a withholding calculator on its website. Amended state tax form Go to www. Amended state tax form irs. Amended state tax form gov/Individuals/IRS-Withholding-Calculator. Amended state tax form It can help you determine the correct amount to be withheld any time during the year. Amended state tax form Rules Your Employer Must Follow It may be helpful for you to know some of the withholding rules your employer must follow. Amended state tax form These rules can affect how to fill out your Form W-4 and how to handle problems that may arise. Amended state tax form New Form W-4. Amended state tax form   When you start a new job, your employer should give you a Form W-4 to fill out. Amended state tax form Beginning with your first payday, your employer will use the information you give on the form to figure your withholding. Amended state tax form   If you later fill out a new Form W-4, your employer can put it into effect as soon as possible. Amended state tax form The deadline for putting it into effect is the start of the first payroll period ending 30 or more days after you turn it in. Amended state tax form No Form W-4. Amended state tax form   If you do not give your employer a completed Form W-4, your employer must withhold at the highest rate, as if you were single and claimed no withholding allowances. Amended state tax form Repaying withheld tax. Amended state tax form   If you find you are having too much tax withheld because you did not claim all the withholding allowances you are entitled to, you should give your employer a new Form W-4. Amended state tax form Your employer cannot repay any of the tax previously withheld. Amended state tax form Instead, claim the full amount withheld when you file your tax return. Amended state tax form   However, if your employer has withheld more than the correct amount of tax for the Form W-4 you have in effect, you do not have to fill out a new Form W-4 to have your withholding lowered to the correct amount. Amended state tax form Your employer can repay the amount that was withheld incorrectly. Amended state tax form If you are not repaid, your Form W-2 will reflect the full amount actually withheld, which you would claim when you file your tax return. Amended state tax form IRS review of your withholding. Amended state tax form   Whether you are entitled to claim a certain number of allowances or a complete exemption from withholding is subject to review by the IRS. Amended state tax form Your employer may be required to send a copy of the Form W-4 to the IRS. Amended state tax form There is a penalty for supplying false information on Form W-4. Amended state tax form See Penalties , later. Amended state tax form   If the IRS determines that you cannot claim more than a specified number of withholding allowances or claim a complete exemption from withholding, the IRS will issue a notice of the maximum number of withholding allowances permitted (commonly referred to as a “lock-in letter”) to both you and your employer. Amended state tax form   The IRS will provide a period of time during which you can dispute the determination before your employer adjusts your withholding. Amended state tax form If you believe that you are entitled to claim complete exemption from withholding or claim more withholding allowances than the maximum number specified by the IRS in the lock-in letter, you must submit a new Form W-4 and a written statement to support your claims to the IRS. Amended state tax form Contact information (a toll-free number and an IRS office address) will be provided in the lock-in letter. Amended state tax form At the end of this period, if you have not responded or if your response is not adequate, your employer will be required to withhold based on the original lock-in letter. Amended state tax form   After the lock-in letter takes effect, your employer must withhold tax on the basis of the withholding rate (marital status) and maximum number of withholding allowances specified in that letter. Amended state tax form   If you later believe that you are entitled to claim exemption from withholding or more allowances than the IRS determined, you can complete a new Form W-4 and a written statement to support the claims made on the Form W-4 and send them directly to the IRS address shown on the lock-in letter. Amended state tax form Your employer must continue to figure your withholding on the basis of the number of allowances previously determined by the IRS until the IRS advises your employer otherwise. Amended state tax form   At any time, either before or after the lock-in letter becomes effective, you may give your employer a new Form W-4 that does not claim complete exemption from withholding and results in more income tax withheld than specified in the lock-in letter. Amended state tax form Your employer must then withhold tax based on this new Form W-4. Amended state tax form   Additional information is available at IRS. Amended state tax form gov. Amended state tax form Enter “withholding compliance questions” in the search box. Amended state tax form Exemption From Withholding If you claim exemption from withholding, your employer will not withhold federal income tax from your wages. Amended state tax form The exemption applies only to income tax, not to social security or Medicare tax. Amended state tax form You can claim exemption from withholding for 2014 only if both of the following situations apply. Amended state tax form For 2013 you had a right to a refund of all federal income tax withheld because you had no tax liability. Amended state tax form For 2014 you expect a refund of all federal income tax withheld because you expect to have no tax liability. Amended state tax form Use Figure 1-A to help you decide whether you can claim exemption from withholding. Amended state tax form Do not use Figure 1-A if you: Are 65 or older, Are blind, Will itemize deductions on your 2014 return, Will claim an exemption for a dependent on your 2014 return, or Will claim any tax credits on your 2014 return. Amended state tax form These situations are discussed later. Amended state tax form Students. Amended state tax form   If you are a student, you are not automatically exempt. Amended state tax form If you work only part time or during the summer, you may qualify for exemption from withholding. Amended state tax form Example 1. Amended state tax form You are a high school student and expect to earn $2,500 from a summer job. Amended state tax form You do not expect to have any other income during the year, and your parents will be able to claim an exemption for you on their tax return. Amended state tax form You worked last summer and had $375 federal income tax withheld from your pay. Amended state tax form The entire $375 was refunded when you filed your 2013 return. Amended state tax form Using Figure 1-A, you find that you can claim exemption from withholding. Amended state tax form Please click here for the text description of the image. Amended state tax form Figure 1-A: Exemption From Withholding on Form W-4 Example 2. Amended state tax form The facts are the same as in Example 1, except that you also have a savings account and expect to have $400 interest income during the year. Amended state tax form Using Figure 1-A, you find that you cannot claim exemption from withholding because your unearned income will be more than $350 and your total income will be more than $1,000. Amended state tax form    You may have to file a tax return, even if you are exempt from withholding. Amended state tax form See Publication 501 to see whether you must file a return. Amended state tax form    Age 65 or older or blind. Amended state tax form If you are 65 or older or blind, use Worksheet 1-3 or Worksheet 1-4, to help you decide whether you can claim exemption from withholding. Amended state tax form Do not use either worksheet if you will itemize deductions, claim exemptions for dependents, or claim tax credits on your 2014 return. Amended state tax form Instead, see Itemizing deductions or claiming exemptions or credits, next. Amended state tax form Itemizing deductions or claiming exemptions or credits. Amended state tax form   If you had no tax liability for 2013, and you will: Itemize deductions, Claim an exemption for a dependent, or Claim a tax credit, use the 2014 Estimated Tax Worksheet (also see chapter 2), to figure your 2014 expected tax liability. Amended state tax form You can claim exemption from withholding only if your total expected tax liability (line 13c of the worksheet) is zero. Amended state tax form Claiming exemption from withholding. Amended state tax form   To claim exemption, you must give your employer a Form W-4. Amended state tax form Do not complete lines 5 and 6. Amended state tax form Enter “Exempt” on line 7. Amended state tax form   If you claim exemption, but later your situation changes so that you will have to pay income tax after all, you must file a new Form W-4 within 10 days after the change. Amended state tax form If you claim exemption in 2014 but you expect to owe income tax for 2015, you must file a new Form W-4 by December 1, 2014. Amended state tax form   Your claim of exempt status may be reviewed by the IRS. Amended state tax form See IRS review of your withholding , earlier. Amended state tax form An exemption is good for only 1 year. Amended state tax form   You must give your employer a new Form W-4 by February 15 each year to continue your exemption. Amended state tax form Supplemental Wages Supplemental wages include bonuses, commissions, overtime pay, vacation allowances, certain sick pay, and expense allowances under certain plans. Amended state tax form The payer can figure withholding on supplemental wages using the same method used for your regular wages. Amended state tax form However, if these payments are identified separately from regular wages, your employer or other payer of supplemental wages can withhold income tax from these wages at a flat rate. Amended state tax form Expense allowances. Amended state tax form   Reimbursements or other expense allowances paid by your employer under a nonaccountable plan are treated as supplemental wages. Amended state tax form A nonaccountable plan is a reimbursement arrangement that does not require you to account for, or prove, your business expenses to your employer or does not require you to return your employer's payments that are more than your proven expenses. Amended state tax form   Reimbursements or other expense allowances paid under an accountable plan that are more than your proven expenses are treated as paid under a nonaccountable plan if you do not return the excess payments within a reasonable period of time. Amended state tax form Accountable plan. Amended state tax form   To be an accountable plan, your employer's reimbursement or allowance arrangement must include all three of the following rules. Amended state tax form Your expenses must have a business connection. Amended state tax form That is, you must have paid or incurred deductible expenses while performing services as an employee of your employer. Amended state tax form You must adequately account to your employer for these expenses within a reasonable period of time. Amended state tax form You must return any excess reimbursement or allowance within a reasonable period of time. Amended state tax form    An excess reimbursement or allowance is any amount you are paid that is more than the business-related expenses that you adequately accounted for to your employer. Amended state tax form   The definition of reasonable period of time depends on the facts and circumstances of your situation. Amended state tax form However, regardless of those facts and circumstances, actions that take place within the times specified in the following list will be treated as taking place within a reasonable period of time. Amended state tax form You receive an advance within 30 days of the time you have an expense. Amended state tax form You adequately account for your expenses within 60 days after they were paid or incurred. Amended state tax form You return any excess reimbursement within 120 days after the expense was paid or incurred. Amended state tax form You are given a periodic statement (at least quarterly) that asks you to either return or adequately account for outstanding advances and you comply within 120 days of the statement. Amended state tax form Nonaccountable plan. Amended state tax form   Any plan that does not meet the definition of an accountable plan is considered a nonaccountable plan. Amended state tax form For more information about accountable and nonaccountable plans, see chapter 6 of Publication 463, Travel, Entertainment, Gift, and Car Expenses. Amended state tax form Penalties You may have to pay a penalty of $500 if both of the following apply. Amended state tax form You make statements or claim withholding allowances on your Form W-4 that reduce the amount of tax withheld. Amended state tax form You have no reasonable basis for those statements or allowances at the time you prepare your Form W-4. Amended state tax form There is also a criminal penalty for willfully supplying false or fraudulent information on your Form W-4 or for willfully failing to supply information that would increase the amount withheld. Amended state tax form The penalty upon conviction can be either a fine of up to $1,000 or imprisonment for up to 1 year, or both. Amended state tax form These penalties will apply if you deliberately and knowingly falsify your Form W-4 in an attempt to reduce or eliminate the proper withholding of taxes. Amended state tax form A simple error or an honest mistake will not result in one of these penalties. Amended state tax form For example, a person who has tried to figure the number of withholding allowances correctly, but claims seven when the proper number is six, will not be charged a Form W-4 penalty. Amended state tax form However, see chapter 4 for information on the penalty for underpaying your tax. Amended state tax form Tips The tips you receive while working on your job are considered part of your pay. Amended state tax form You must include your tips on your tax return on the same line as your regular pay. Amended state tax form However, tax is not withheld directly from tip income, as it is from your regular pay. Amended state tax form Nevertheless, your employer will take into account the tips you report when figuring how much to withhold from your regular pay. Amended state tax form Reporting tips to your employer. Amended state tax form   If you receive tips of $20 or more in a month while working for any one employer, you must report to your employer the total amount of tips you receive on the job during the month. Amended state tax form The report is due by the 10th day of the following month. Amended state tax form   If you have more than one job, make a separate report to each employer. Amended state tax form Report only the tips you received while working for that employer, and only if they total $20 or more for the month. Amended state tax form How employer figures amount to withhold. Amended state tax form   The tips you report to your employer are counted as part of your income for the month you report them. Amended state tax form Your employer can figure your withholding in either of two ways. Amended state tax form By withholding at the regular rate on the sum of your pay plus your reported tips. Amended state tax form By withholding at the regular rate on your pay plus a percentage of your reported tips. Amended state tax form Not enough pay to cover taxes. Amended state tax form   If your regular pay is not enough for your employer to withhold all the tax (including income tax and social security and Medicare taxes (or the equivalent railroad retirement tax)) due on your pay plus your tips, you can give your employer money to cover the shortage. Amended state tax form   If you do not give your employer money to cover the shortage, your employer first withholds as much Medicare tax and social security or railroad retirement tax as possible, up to the proper amount, and then withholds income tax up to the full amount of your pay. Amended state tax form If not enough tax is withheld, you may have to pay estimated tax. Amended state tax form When you file your return, you also may have to pay any Medicare and social security tax or railroad retirement tax your employer could not withhold. Amended state tax form Tips not reported to your employer. Amended state tax form   On your tax return, you must report all the tips you receive during the year, even tips you do not report to your employer (this includes the value of any noncash tips you received, such as tickets, passes, or other items of value). Amended state tax form Make sure you are having enough tax withheld, or are paying enough estimated tax (see chapter 2), to cover all your tip income. Amended state tax form Allocated tips. Amended state tax form   If you work in a large food or beverage establishment, your employer may have to report an allocated amount of tips on your Form W-2. Amended state tax form   Your employer should not withhold income tax, Medicare tax, and social security or railroad retirement tax on the allocated amount. Amended state tax form Withholding is based only on your pay plus your reported tips. Amended state tax form Your employer should refund to you any incorrectly withheld tax. Amended state tax form More information. Amended state tax form   For more information on the reporting and withholding rules for tip income and on tip allocation, see Publi