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Do I File 2008 Tax Return

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Do I File 2008 Tax Return

Do i file 2008 tax return 4. Do i file 2008 tax return   Tax Withholding and Estimated Tax Table of Contents What's New for 2014 Reminders Introduction Useful Items - You may want to see: Tax Withholding for 2014Salaries and Wages Tips Taxable Fringe Benefits Sick Pay Pensions and Annuities Gambling Winnings Unemployment Compensation Federal Payments Backup Withholding Estimated Tax for 2014Who Does Not Have To Pay Estimated Tax Who Must Pay Estimated Tax How To Figure Estimated Tax When To Pay Estimated Tax How To Figure Each Payment How To Pay Estimated Tax Credit for Withholding and Estimated Tax for 2013Withholding Estimated Tax Underpayment Penalty for 2013 What's New for 2014 Tax law changes for 2014. Do i file 2008 tax return  When you figure how much income tax you want withheld from your pay and when you figure your estimated tax, consider tax law changes effective in 2014. Do i file 2008 tax return For more information, see Publication 505. Do i file 2008 tax return Reminders Estimated tax safe harbor for higher income taxpayers. Do i file 2008 tax return  If your 2013 adjusted gross income was more than $150,000 ($75,000 if you are married filing a separate return), you must pay the smaller of 90% of your expected tax for 2014 or 110% of the tax shown on your 2013 return to avoid an estimated tax penalty. Do i file 2008 tax return Introduction This chapter discusses how to pay your tax as you earn or receive income during the year. Do i file 2008 tax return In general, the federal income tax is a pay-as-you-go tax. Do i file 2008 tax return There are two ways to pay as you go. Do i file 2008 tax return Withholding. Do i file 2008 tax return If you are an employee, your employer probably withholds income tax from your pay. Do i file 2008 tax return Tax also may be withheld from certain other income, such as pensions, bonuses, commissions, and gambling winnings. Do i file 2008 tax return The amount withheld is paid to the IRS in your name. Do i file 2008 tax return Estimated tax. Do i file 2008 tax return If you do not pay your tax through withholding, or do not pay enough tax that way, you may have to pay estimated tax. Do i file 2008 tax return People who are in business for themselves generally will have to pay their tax this way. Do i file 2008 tax return Also, you may have to pay estimated tax if you receive income such as dividends, interest, capital gains, rent, and royalties. Do i file 2008 tax return Estimated tax is used to pay not only income tax, but self-employment tax and alternative minimum tax as well. Do i file 2008 tax return This chapter explains these methods. Do i file 2008 tax return In addition, it also explains the following. Do i file 2008 tax return Credit for withholding and estimated tax. Do i file 2008 tax return When you file your 2013 income tax return, take credit for all the income tax withheld from your salary, wages, pensions, etc. Do i file 2008 tax return , and for the estimated tax you paid for 2013. Do i file 2008 tax return Also take credit for any excess social security or railroad retirement tax withheld (discussed in chapter 37). Do i file 2008 tax return Underpayment penalty. Do i file 2008 tax return If you did not pay enough tax during the year, either through withholding or by making estimated tax payments, you may have to pay a penalty. Do i file 2008 tax return In most cases, the IRS can figure this penalty for you. Do i file 2008 tax return See Underpayment Penalty for 2013 at the end of this chapter. Do i file 2008 tax return Useful Items - You may want to see: Publication 505 Tax Withholding and Estimated Tax Form (and Instructions) W-4 Employee's Withholding Allowance Certificate W-4P Withholding Certificate for Pension or Annuity Payments W-4S Request for Federal Income Tax Withholding From Sick Pay W-4V Voluntary Withholding Request 1040-ES Estimated Tax for Individuals 2210 Underpayment of Estimated Tax by Individuals, Estates, and Trusts 2210-F Underpayment of Estimated Tax by Farmers and Fishermen Tax Withholding for 2014 This section discusses income tax withholding on: Salaries and wages, Tips, Taxable fringe benefits, Sick pay, Pensions and annuities, Gambling winnings, Unemployment compensation, and Certain federal payments. Do i file 2008 tax return This section explains the rules for withholding tax from each of these types of income. Do i file 2008 tax return This section also covers backup withholding on interest, dividends, and other payments. Do i file 2008 tax return Salaries and Wages Income tax is withheld from the pay of most employees. Do i file 2008 tax return Your pay includes your regular pay, bonuses, commissions, and vacation allowances. Do i file 2008 tax return It also includes reimbursements and other expense allowances paid under a nonaccountable plan. Do i file 2008 tax return See Supplemental Wages , later, for more information about reimbursements and allowances paid under a nonaccountable plan. Do i file 2008 tax return If your income is low enough that you will not have to pay income tax for the year, you may be exempt from withholding. Do i file 2008 tax return This is explained under Exemption From Withholding , later. Do i file 2008 tax return You can ask your employer to withhold income tax from noncash wages and other wages not subject to withholding. Do i file 2008 tax return If your employer does not agree to withhold tax, or if not enough is withheld, you may have to pay estimated tax, as discussed later under Estimated Tax for 2014 . Do i file 2008 tax return Military retirees. Do i file 2008 tax return   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. Do i file 2008 tax return Household workers. Do i file 2008 tax return   If you are a household worker, you can ask your employer to withhold income tax from your pay. Do i file 2008 tax return A household worker is an employee who performs household work in a private home, local college club, or local fraternity or sorority chapter. Do i file 2008 tax return   Tax is withheld only if you want it withheld and your employer agrees to withhold it. Do i file 2008 tax return If you do not have enough income tax withheld, you may have to pay estimated tax, as discussed later under Estimated Tax for 2014 . Do i file 2008 tax return Farmworkers. Do i file 2008 tax return   Generally, income tax is withheld from your cash wages for work on a farm unless your employer does both of these: Pays you cash wages of less than $150 during the year, and Has expenditures for agricultural labor totaling less than $2,500 during the year. Do i file 2008 tax return Differential wage payments. Do i file 2008 tax return    When employees are on leave from employment for military duty, some employers make up the difference between the military pay and civilian pay. Do i file 2008 tax return 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. Do i file 2008 tax return The wages and withholding will be reported on Form W-2, Wage and Tax Statement. Do i file 2008 tax return   The credit employers can claim for differential wages paid to activated military reservists is scheduled to expire for wages paid after December 31, 2013. Do i file 2008 tax return 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. Do i file 2008 tax return The amount you earn in each payroll period. Do i file 2008 tax return The information you give your employer on Form W-4. Do i file 2008 tax return Form W-4 includes four types of information that your employer will use to figure your withholding. Do i file 2008 tax return Whether to withhold at the single rate or at the lower married rate. Do i file 2008 tax return How many withholding allowances you claim (each allowance reduces the amount withheld). Do i file 2008 tax return Whether you want an additional amount withheld. Do i file 2008 tax return Whether you are claiming an exemption from withholding in 2014. Do i file 2008 tax return See Exemption From Withholding , later. Do i file 2008 tax return Note. Do i file 2008 tax return You must specify a filing status and a number of withholding allowances on Form W-4. Do i file 2008 tax return You cannot specify only a dollar amount of withholding. Do i file 2008 tax return New Job When you start a new job, you must fill out Form W-4 and give it to your employer. Do i file 2008 tax return Your employer should have copies of the form. Do i file 2008 tax return If you need to change the information later, you must fill out a new form. Do i file 2008 tax return 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. Do i file 2008 tax return You may be able to avoid overwithholding if your employer agrees to use the part-year method. Do i file 2008 tax return See Part-Year Method in chapter 1 of Publication 505 for more information. Do i file 2008 tax return Employee also receiving pension income. Do i file 2008 tax return   If you receive pension or annuity income and begin a new job, you will need to file Form W-4 with your new employer. Do i file 2008 tax return However, you can choose to split your withholding allowances between your pension and job in any manner. Do i file 2008 tax return 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. Do i file 2008 tax return When this happens, you may need to give your employer a new Form W-4 to change your withholding status or your number of allowances. Do i file 2008 tax return If the changes reduce the number of allowances you are claiming or changes your marital status from married to single, you must give your employer a new Form W-4 within 10 days. Do i file 2008 tax return Generally, you can submit a new Form W-4 whenever you wish to change the number of your withholding allowances for any other reason. Do i file 2008 tax return Changing your withholding for 2015. Do i file 2008 tax return   If events in 2014 will decrease the number of your withholding allowances for 2015, you must give your employer a new Form W-4 by December 1, 2014. Do i file 2008 tax return If the event occurs in December 2014, submit a new Form W-4 within 10 days. Do i file 2008 tax return Checking Your Withholding After you have given your employer a Form W-4, you can check to see whether the amount of tax withheld from your pay is too little or too much. Do i file 2008 tax return If too much or too little tax is being withheld, you should give your employer a new Form W-4 to change your withholding. Do i file 2008 tax return You should try to have your withholding match your actual tax liability. Do i file 2008 tax return 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. Do i file 2008 tax return If too much tax is withheld, you will lose the use of that money until you get your refund. Do i file 2008 tax return 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. Do i file 2008 tax return Note. Do i file 2008 tax return You cannot give your employer a payment to cover withholding on salaries and wages for past pay periods or a payment for estimated tax. Do i file 2008 tax return Completing Form W-4 and Worksheets Form W-4 has worksheets to help you figure how many withholding allowances you can claim. Do i file 2008 tax return The worksheets are for your own records. Do i file 2008 tax return Do not give them to your employer. Do i file 2008 tax return Multiple jobs. Do i file 2008 tax return   If you have income from more than one job at the same time, complete only one set of Form W-4 worksheets. Do i file 2008 tax return Then split your allowances between the Forms W-4 for each job. Do i file 2008 tax return You cannot claim the same allowances with more than one employer at the same time. Do i file 2008 tax return You can claim all your allowances with one employer and none with the other(s), or divide them any other way. Do i file 2008 tax return Married individuals. Do i file 2008 tax return   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. Do i file 2008 tax return Use only one set of worksheets. Do i file 2008 tax return You can divide your total allowances any way, but you cannot claim an allowance that your spouse also claims. Do i file 2008 tax return   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. Do i file 2008 tax return Alternative method of figuring withholding allowances. Do i file 2008 tax return   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. Do i file 2008 tax return For more information, see Alternative method of figuring withholding allowances under Completing Form W-4 and Worksheets in Publication 505, chapter 1. Do i file 2008 tax return Personal Allowances Worksheet. Do i file 2008 tax return   Use the Personal Allowances Worksheet on Form W-4 to figure your withholding allowances based on exemptions and any special allowances that apply. Do i file 2008 tax return Deduction and Adjustments Worksheet. Do i file 2008 tax return   Use the Deduction and Adjustments Worksheet on Form W-4 if you plan to itemize your deductions, claim certain credits, or claim adjustments to the income on your 2014 tax return and you want to reduce your withholding. Do i file 2008 tax return Also, complete this worksheet when you have changes to these items to see if you need to change your withholding. Do i file 2008 tax return Two-Earners/Multiple Jobs Worksheet. Do i file 2008 tax return   You may need to complete the Two-Earners/Multiple Jobs Worksheet on Form W-4 if you have more than one job, a working spouse, or are also receiving a pension. Do i file 2008 tax return Also, on this worksheet you can add any additional withholding necessary to cover any amount you expect to owe other than income tax, such as self-employment tax. Do i file 2008 tax return 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. Do i file 2008 tax return You accurately complete all the Form W-4 worksheets that apply to you. Do i file 2008 tax return You give your employer a new Form W-4 when changes occur. Do i file 2008 tax return But because the worksheets and withholding methods do not account for all possible situations, you may not be getting the right amount withheld. Do i file 2008 tax return This is most likely to happen in the following situations. Do i file 2008 tax return You are married and both you and your spouse work. Do i file 2008 tax return You have more than one job at a time. Do i file 2008 tax return You have nonwage income, such as interest, dividends, alimony, unemployment compensation, or self-employment income. Do i file 2008 tax return You will owe additional amounts with your return, such as self-employment tax. Do i file 2008 tax return Your withholding is based on obsolete Form W-4 information for a substantial part of the year. Do i file 2008 tax return Your earnings are more than the amount shown under Check your withholding in the instructions at the top of page 1 of Form W-4. Do i file 2008 tax return You work only part of the year. Do i file 2008 tax return You change the number of your withholding allowances during the year. Do i file 2008 tax return Cumulative wage method. Do i file 2008 tax return   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. Do i file 2008 tax return 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. Do i file 2008 tax return You must ask your employer in writing to use this method. Do i file 2008 tax return   To be eligible, you must have been paid for the same kind of payroll period (weekly, biweekly, etc. Do i file 2008 tax return ) since the beginning of the year. Do i file 2008 tax return Publication 505 To make sure you are getting the right amount of tax withheld, get Publication 505. Do i file 2008 tax return It will help you compare the total tax to be withheld during the year with the tax you can expect to figure on your return. Do i file 2008 tax return It also will help you determine how much, if any, additional withholding is needed each payday to avoid owing tax when you file your return. Do i file 2008 tax return If you do not have enough tax withheld, you may have to pay estimated tax, as explained under Estimated Tax for 2014 , later. Do i file 2008 tax return You can use the IRS Withholding Calculator at www. Do i file 2008 tax return irs. Do i file 2008 tax return gov/Individuals, instead of Publication 505 or the worksheets included with Form W-4, to determine whether you need to have your withholding increased or decreased. Do i file 2008 tax return Rules Your Employer Must Follow It may be helpful for you to know some of the withholding rules your employer must follow. Do i file 2008 tax return These rules can affect how to fill out your Form W-4 and how to handle problems that may arise. Do i file 2008 tax return New Form W-4. Do i file 2008 tax return   When you start a new job, your employer should have you complete a Form W-4. Do i file 2008 tax return Beginning with your first payday, your employer will use the information you give on the form to figure your withholding. Do i file 2008 tax return   If you later fill out a new Form W-4, your employer can put it into effect as soon as possible. Do i file 2008 tax return 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. Do i file 2008 tax return No Form W-4. Do i file 2008 tax return   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. Do i file 2008 tax return Repaying withheld tax. Do i file 2008 tax return   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. Do i file 2008 tax return Your employer cannot repay any of the tax previously withheld. Do i file 2008 tax return Instead, claim the full amount withheld when you file your tax return. Do i file 2008 tax return   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. Do i file 2008 tax return Your employer can repay the amount that was withheld incorrectly. Do i file 2008 tax return 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. Do i file 2008 tax return Exemption From Withholding If you claim exemption from withholding, your employer will not withhold federal income tax from your wages. Do i file 2008 tax return The exemption applies only to income tax, not to social security or Medicare tax. Do i file 2008 tax return You can claim exemption from withholding for 2014 only if both of the following situations apply. Do i file 2008 tax return For 2013 you had a right to a refund of all federal income tax withheld because you had no tax liability. Do i file 2008 tax return For 2014 you expect a refund of all federal income tax withheld because you expect to have no tax liability. Do i file 2008 tax return Students. Do i file 2008 tax return   If you are a student, you are not automatically exempt. Do i file 2008 tax return See chapter 1 to find out if you must file a return. Do i file 2008 tax return If you work only part time or only during the summer, you may qualify for exemption from withholding. Do i file 2008 tax return Age 65 or older or blind. Do i file 2008 tax return   If you are 65 or older or blind, use Worksheet 1-3 or 1-4 in chapter 1 of Publication 505, to help you decide if you qualify for exemption from withholding. Do i file 2008 tax return Do not use either worksheet if you will itemize deductions, claim exemptions for dependents, or claim tax credits on your 2014 return. Do i file 2008 tax return Instead, see Itemizing deductions or claiming exemptions or credits in chapter 1 of Publication 505. Do i file 2008 tax return Claiming exemption from withholding. Do i file 2008 tax return   To claim exemption, you must give your employer a Form W-4. Do i file 2008 tax return Do not complete lines 5 and 6. Do i file 2008 tax return Enter “Exempt” on line 7. Do i file 2008 tax return   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. Do i file 2008 tax return 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. Do i file 2008 tax return   Your claim of exempt status may be reviewed by the IRS. Do i file 2008 tax return An exemption is good for only 1 year. Do i file 2008 tax return   You must give your employer a new Form W-4 by February 15 each year to continue your exemption. Do i file 2008 tax return Supplemental Wages Supplemental wages include bonuses, commissions, overtime pay, vacation allowances, certain sick pay, and expense allowances under certain plans. Do i file 2008 tax return The payer can figure withholding on supplemental wages using the same method used for your regular wages. Do i file 2008 tax return However, if these payments are identified separately from your regular wages, your employer or other payer of supplemental wages can withhold income tax from these wages at a flat rate. Do i file 2008 tax return Expense allowances. Do i file 2008 tax return   Reimbursements or other expense allowances paid by your employer under a nonaccountable plan are treated as supplemental wages. Do i file 2008 tax return   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. Do i file 2008 tax return   For more information about accountable and nonaccountable expense allowance plans, see Reimbursements in chapter 26. Do i file 2008 tax return Penalties You may have to pay a penalty of $500 if both of the following apply. Do i file 2008 tax return You make statements or claim withholding allowances on your Form W-4 that reduce the amount of tax withheld. Do i file 2008 tax return You have no reasonable basis for those statements or allowances at the time you prepare your Form W-4. Do i file 2008 tax return 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. Do i file 2008 tax return The penalty upon conviction can be either a fine of up to $1,000 or imprisonment for up to 1 year, or both. Do i file 2008 tax return 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. Do i file 2008 tax return A simple error or an honest mistake will not result in one of these penalties. Do i file 2008 tax return For example, a person who has tried to figure the number of withholding allowances correctly, but claims seven when the proper number is six, will not be charged a W-4 penalty. Do i file 2008 tax return Tips The tips you receive while working on your job are considered part of your pay. Do i file 2008 tax return You must include your tips on your tax return on the same line as your regular pay. Do i file 2008 tax return However, tax is not withheld directly from tip income, as it is from your regular pay. Do i file 2008 tax return Nevertheless, your employer will take into account the tips you report when figuring how much to withhold from your regular pay. Do i file 2008 tax return See chapter 6 for information on reporting your tips to your employer. Do i file 2008 tax return For more information on the withholding rules for tip income, see Publication 531, Reporting Tip Income. Do i file 2008 tax return How employer figures amount to withhold. Do i file 2008 tax return   The tips you report to your employer are counted as part of your income for the month you report them. Do i file 2008 tax return Your employer can figure your withholding in either of two ways. Do i file 2008 tax return By withholding at the regular rate on the sum of your pay plus your reported tips. Do i file 2008 tax return By withholding at the regular rate on your pay plus a percentage of your reported tips. Do i file 2008 tax return Not enough pay to cover taxes. Do i file 2008 tax return   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. Do i file 2008 tax return See Giving your employer money for taxes in chapter 6. Do i file 2008 tax return Allocated tips. Do i file 2008 tax return   Your employer should not withhold income tax, Medicare tax, social security tax, or railroad retirement tax on any allocated tips. Do i file 2008 tax return Withholding is based only on your pay plus your reported tips. Do i file 2008 tax return Your employer should refund to you any incorrectly withheld tax. Do i file 2008 tax return See Allocated Tips in chapter 6 for more information. Do i file 2008 tax return Taxable Fringe Benefits The value of certain noncash fringe benefits you receive from your employer is considered part of your pay. Do i file 2008 tax return Your employer generally must withhold income tax on these benefits from your regular pay. Do i file 2008 tax return For information on fringe benefits, see Fringe Benefits under Employee Compensation in chapter 5. Do i file 2008 tax return Although the value of your personal use of an employer-provided car, truck, or other highway motor vehicle is taxable, your employer can choose not to withhold income tax on that amount. Do i file 2008 tax return Your employer must notify you if this choice is made. Do i file 2008 tax return For more information on withholding on taxable fringe benefits, see chapter 1 of Publication 505. Do i file 2008 tax return Sick Pay Sick pay is a payment to you to replace your regular wages while you are temporarily absent from work due to sickness or personal injury. Do i file 2008 tax return To qualify as sick pay, it must be paid under a plan to which your employer is a party. Do i file 2008 tax return If you receive sick pay from your employer or an agent of your employer, income tax must be withheld. Do i file 2008 tax return An agent who does not pay regular wages to you may choose to withhold income tax at a flat rate. Do i file 2008 tax return However, if you receive sick pay from a third party who is not acting as an agent of your employer, income tax will be withheld only if you choose to have it withheld. Do i file 2008 tax return See Form W-4S , later. Do i file 2008 tax return If you receive payments under a plan in which your employer does not participate (such as an accident or health plan where you paid all the premiums), the payments are not sick pay and usually are not taxable. Do i file 2008 tax return Union agreements. Do i file 2008 tax return   If you receive sick pay under a collective bargaining agreement between your union and your employer, the agreement may determine the amount of income tax withholding. Do i file 2008 tax return See your union representative or your employer for more information. Do i file 2008 tax return Form W-4S. Do i file 2008 tax return   If you choose to have income tax withheld from sick pay paid by a third party, such as an insurance company, you must fill out Form W-4S. Do i file 2008 tax return Its instructions contain a worksheet you can use to figure the amount you want withheld. Do i file 2008 tax return They also explain restrictions that may apply. Do i file 2008 tax return   Give the completed form to the payer of your sick pay. Do i file 2008 tax return The payer must withhold according to your directions on the form. Do i file 2008 tax return Estimated tax. Do i file 2008 tax return   If you do not request withholding on Form W-4S, or if you do not have enough tax withheld, you may have to make estimated tax payments. Do i file 2008 tax return If you do not pay enough tax, either through estimated tax or withholding, or a combination of both, you may have to pay a penalty. Do i file 2008 tax return See Underpayment Penalty for 2013 at the end of this chapter. Do i file 2008 tax return Pensions and Annuities Income tax usually will be withheld from your pension or annuity distributions unless you choose not to have it withheld. Do i file 2008 tax return This rule applies to distributions from: A traditional individual retirement arrangement (IRA); A life insurance company under an endowment, annuity, or life insurance contract; A pension, annuity, or profit-sharing plan; A stock bonus plan; and Any other plan that defers the time you receive compensation. Do i file 2008 tax return The amount withheld depends on whether you receive payments spread out over more than 1 year (periodic payments), within 1 year (nonperiodic payments), or as an eligible rollover distribution (ERD). Do i file 2008 tax return Income tax withholding from an ERD is mandatory. Do i file 2008 tax return More information. Do i file 2008 tax return   For more information on taxation of annuities and distributions (including ERDs) from qualified retirement plans, see chapter 10. Do i file 2008 tax return For information on IRAs, see chapter 17. Do i file 2008 tax return For more information on withholding on pensions and annuities, including a discussion of Form W-4P, see Pensions and Annuities in chapter 1 of Publication 505. Do i file 2008 tax return Gambling Winnings Income tax is withheld at a flat 25% rate from certain kinds of gambling winnings. Do i file 2008 tax return Gambling winnings of more than $5,000 from the following sources are subject to income tax withholding. Do i file 2008 tax return Any sweepstakes; wagering pool, including payments made to winners of poker tournaments; or lottery. Do i file 2008 tax return Any other wager, if the proceeds are at least 300 times the amount of the bet. Do i file 2008 tax return It does not matter whether your winnings are paid in cash, in property, or as an annuity. Do i file 2008 tax return Winnings not paid in cash are taken into account at their fair market value. Do i file 2008 tax return Exception. Do i file 2008 tax return   Gambling winnings from bingo, keno, and slot machines generally are not subject to income tax withholding. Do i file 2008 tax return However, you may need to provide the payer with a social security number to avoid withholding. Do i file 2008 tax return See Backup withholding on gambling winnings in chapter 1 of Publication 505. Do i file 2008 tax return If you receive gambling winnings not subject to withholding, you may need to pay estimated tax. Do i file 2008 tax return See Estimated Tax for 2014 , later. Do i file 2008 tax return If you do not pay enough tax, either through withholding or estimated tax, or a combination of both, you may have to pay a penalty. Do i file 2008 tax return See Underpayment Penalty for 2013 at the end of this chapter. Do i file 2008 tax return Form W-2G. Do i file 2008 tax return   If a payer withholds income tax from your gambling winnings, you should receive a Form W-2G, Certain Gambling Winnings, showing the amount you won and the amount withheld. Do i file 2008 tax return Report the tax withheld on line 62 of Form 1040. Do i file 2008 tax return Unemployment Compensation You can choose to have income tax withheld from unemployment compensation. Do i file 2008 tax return To make this choice, fill out Form W-4V (or a similar form provided by the payer) and give it to the payer. Do i file 2008 tax return All unemployment compensation is taxable. Do i file 2008 tax return So, if you do not have income tax withheld, you may have to pay estimated tax. Do i file 2008 tax return See Estimated Tax for 2014 , later. Do i file 2008 tax return If you do not pay enough tax, either through withholding or estimated tax, or a combination of both, you may have to pay a penalty. Do i file 2008 tax return For information, see Underpayment Penalty for 2013 at the end of this chapter. Do i file 2008 tax return Federal Payments You can choose to have income tax withheld from certain federal payments you receive. Do i file 2008 tax return These payments are: Social security benefits, Tier 1 railroad retirement benefits, Commodity credit corporation loans you choose to include in your gross income, Payments under the Agricultural Act of 1949 (7 U. Do i file 2008 tax return S. Do i file 2008 tax return C. Do i file 2008 tax return 1421 et. Do i file 2008 tax return seq. Do i file 2008 tax return ), as amended, or title II of the Disaster Assistance Act of 1988, that are treated as insurance proceeds and that you receive because: Your crops were destroyed or damaged by drought, flood, or any other natural disaster, or You were unable to plant crops because of a natural disaster described in (a), and Any other payment under Federal law as determined by the Secretary. Do i file 2008 tax return To make this choice, fill out Form W-4V (or a similar form provided by the payer) and give it to the payer. Do i file 2008 tax return If you do not choose to have income tax withheld, you may have to pay estimated tax. Do i file 2008 tax return See Estimated Tax for 2014 , later. Do i file 2008 tax return If you do not pay enough tax, either through withholding or estimated tax, or a combination of both, you may have to pay a penalty. Do i file 2008 tax return For information, see Underpayment Penalty for 2013 at the end of this chapter. Do i file 2008 tax return More information. Do i file 2008 tax return   For more information about the tax treatment of social security and railroad retirement benefits, see chapter 11. Do i file 2008 tax return Get Publication 225, Farmer's Tax Guide, for information about the tax treatment of commodity credit corporation loans or crop disaster payments. Do i file 2008 tax return Backup Withholding Banks or other businesses that pay you certain kinds of income must file an information return (Form 1099) with the IRS. Do i file 2008 tax return The information return shows how much you were paid during the year. Do i file 2008 tax return It also includes your name and taxpayer identification number (TIN). Do i file 2008 tax return TINs are explained in chapter 1 under Social Security Number (SSN) . Do i file 2008 tax return These payments generally are not subject to withholding. Do i file 2008 tax return However, “backup” withholding is required in certain situations. Do i file 2008 tax return Backup withholding can apply to most kinds of payments that are reported on Form 1099. Do i file 2008 tax return The payer must withhold at a flat 28% rate in the following situations. Do i file 2008 tax return You do not give the payer your TIN in the required manner. Do i file 2008 tax return The IRS notifies the payer that the TIN you gave is incorrect. Do i file 2008 tax return You are required, but fail, to certify that you are not subject to backup withholding. Do i file 2008 tax return The IRS notifies the payer to start withholding on interest or dividends because you have underreported interest or dividends on your income tax return. Do i file 2008 tax return The IRS will do this only after it has mailed you four notices over at least a 210-day period. Do i file 2008 tax return See Backup Withholding in chapter 1 of Publication 505 for more information. Do i file 2008 tax return Penalties. Do i file 2008 tax return   There are civil and criminal penalties for giving false information to avoid backup withholding. Do i file 2008 tax return The civil penalty is $500. Do i file 2008 tax return The criminal penalty, upon conviction, is a fine of up to $1,000 or imprisonment of up to 1 year, or both. Do i file 2008 tax return Estimated Tax for 2014 Estimated tax is the method used to pay tax on income that is not subject to withholding. Do i file 2008 tax return This includes income from self-employment, interest, dividends, alimony, rent, gains from the sale of assets, prizes, and awards. Do i file 2008 tax return You also may have to pay estimated tax if the amount of income tax being withheld from your salary, pension, or other income is not enough. Do i file 2008 tax return Estimated tax is used to pay both income tax and self-employment tax, as well as other taxes and amounts reported on your tax return. Do i file 2008 tax return If you do not pay enough tax, either through withholding or estimated tax, or a combination of both, you may have to pay a penalty. Do i file 2008 tax return If you do not pay enough by the due date of each payment period (see When To Pay Estimated Tax , later), you may be charged a penalty even if you are due a refund when you file your tax return. Do i file 2008 tax return For information on when the penalty applies, see Underpayment Penalty for 2013 at the end of this chapter. Do i file 2008 tax return Who Does Not Have To Pay Estimated Tax If you receive salaries or wages, you can avoid having to pay estimated tax by asking your employer to take more tax out of your earnings. Do i file 2008 tax return To do this, give a new Form W-4 to your employer. Do i file 2008 tax return See chapter 1 of Publication 505. Do i file 2008 tax return Estimated tax not required. Do i file 2008 tax return   You do not have to pay estimated tax for 2014 if you meet all three of the following conditions. Do i file 2008 tax return You had no tax liability for 2013. Do i file 2008 tax return You were a U. Do i file 2008 tax return S. Do i file 2008 tax return citizen or resident alien for the whole year. Do i file 2008 tax return Your 2013 tax year covered a 12-month period. Do i file 2008 tax return   You had no tax liability for 2013 if your total tax was zero or you did not have to file an income tax return. Do i file 2008 tax return For the definition of “total tax” for 2013, see Publication 505, chapter 2. Do i file 2008 tax return Who Must Pay Estimated Tax If you owe additional tax for 2013, you may have to pay estimated tax for 2014. Do i file 2008 tax return You can use the following general rule as a guide during the year to see if you will have enough withholding, or if you should increase your withholding or make estimated tax payments. Do i file 2008 tax return General rule. Do i file 2008 tax return   In most cases, you must pay estimated tax for 2014 if both of the following apply. Do i file 2008 tax return You expect to owe at least $1,000 in tax for 2014, after subtracting your withholding and refundable credits. Do i file 2008 tax return You expect your withholding plus your refundable credits to be less than the smaller of: 90% of the tax to be shown on your 2014 tax return, or 100% of the tax shown on your 2013 tax return (but see Special rules for farmers, fishermen, and higher income taxpayers, later). Do i file 2008 tax return Your 2013 tax return must cover all 12 months. Do i file 2008 tax return    If the result from using the general rule above suggests that you will not have enough withholding, complete the 2014 Estimated Tax Worksheet in Publication 505 for a more accurate calculation. Do i file 2008 tax return Special rules for farmers, fishermen, and higher income taxpayers. Do i file 2008 tax return   If at least two-thirds of your gross income for tax year 2013 or 2014 is from farming or fishing, substitute 662/3% for 90% in (2a) under the General rule, earlier. Do i file 2008 tax return If your AGI for 2013 was more than $150,000 ($75,000 if your filing status for 2014 is married filing a separate return), substitute 110% for 100% in (2b) under General rule , earlier. Do i file 2008 tax return See Figure 4-A and Publication 505, chapter 2 for more information. Do i file 2008 tax return Figure 4-A. Do i file 2008 tax return Do You Have To Pay Estimated Tax? Please click here for the text description of the image. Do i file 2008 tax return Figure 4-A Do You Have To Pay Estimated Tax? Aliens. Do i file 2008 tax return   Resident and nonresident aliens also may have to pay estimated tax. Do i file 2008 tax return Resident aliens should follow the rules in this chapter unless noted otherwise. Do i file 2008 tax return Nonresident aliens should get Form 1040-ES (NR), U. Do i file 2008 tax return S. Do i file 2008 tax return Estimated Tax for Nonresident Alien Individuals. Do i file 2008 tax return   You are an alien if you are not a citizen or national of the United States. Do i file 2008 tax return You are a resident alien if you either have a green card or meet the substantial presence test. Do i file 2008 tax return For more information about the substantial presence test, see Publication 519, U. Do i file 2008 tax return S. Do i file 2008 tax return Tax Guide for Aliens. Do i file 2008 tax return Married taxpayers. Do i file 2008 tax return   If you qualify to make joint estimated tax payments, apply the rules discussed here to your joint estimated income. Do i file 2008 tax return   You and your spouse can make joint estimated tax payments even if you are not living together. Do i file 2008 tax return   However, you and your spouse cannot make joint estimated tax payments if:  You are legally separated under a decree of divorce or separate maintenance, You and your spouse have different tax years, or Either spouse is a nonresident alien (unless that spouse elected to be treated as a resident alien for tax purposes (see chapter 1 of Publication 519)). Do i file 2008 tax return   If you do not qualify to make joint estimated tax payments, apply these rules to your separate estimated income. Do i file 2008 tax return Making joint or separate estimated tax payments will not affect your choice of filing a joint tax return or separate returns for 2014. Do i file 2008 tax return 2013 separate returns and 2014 joint return. Do i file 2008 tax return   If you plan to file a joint return with your spouse for 2014, but you filed separate returns for 2013, your 2013 tax is the total of the tax shown on your separate returns. Do i file 2008 tax return You filed a separate return if you filed as single, head of household, or married filing separately. Do i file 2008 tax return 2013 joint return and 2014 separate returns. Do i file 2008 tax return   If you plan to file a separate return for 2014 but you filed a joint return for 2013, your 2013 tax is your share of the tax on the joint return. Do i file 2008 tax return You file a separate return if you file as single, head of household, or married filing separately. Do i file 2008 tax return   To figure your share of the tax on the joint return, first figure the tax both you and your spouse would have paid had you filed separate returns for 2013 using the same filing status as for 2014. Do i file 2008 tax return Then multiply the tax on the joint return by the following fraction. Do i file 2008 tax return     The tax you would have paid had you filed a separate return   The total tax you and your spouse would have paid had you filed separate returns Example. Do i file 2008 tax return Joe and Heather filed a joint return for 2013 showing taxable income of $48,500 and a tax of $6,386. Do i file 2008 tax return Of the $48,500 taxable income, $40,100 was Joe's and the rest was Heather's. Do i file 2008 tax return For 2014, they plan to file married filing separately. Do i file 2008 tax return Joe figures his share of the tax on the 2013 joint return as follows. Do i file 2008 tax return   Tax on $40,100 based on a separate return $5,960     Tax on $8,400 based on a separate return 843     Total $6,803     Joe's percentage of total ($5,960 ÷ $6,803) 87. Do i file 2008 tax return 6%     Joe's share of tax on joint return  ($6,386 × 87. Do i file 2008 tax return 6%) $5,594   How To Figure Estimated Tax To figure your estimated tax, you must figure your expected adjusted gross income (AGI), taxable income, taxes, deductions, and credits for the year. Do i file 2008 tax return When figuring your 2014 estimated tax, it may be helpful to use your income, deductions, and credits for 2013 as a starting point. Do i file 2008 tax return Use your 2013 federal tax return as a guide. Do i file 2008 tax return You can use Form 1040-ES and Publication 505 to figure your estimated tax. Do i file 2008 tax return Nonresident aliens use Form 1040-ES (NR) and Publication 505 to figure estimated tax (see chapter 8 of Publication 519 for more information). Do i file 2008 tax return You must make adjustments both for changes in your own situation and for recent changes in the tax law. Do i file 2008 tax return For a discussion of these changes, visit IRS. Do i file 2008 tax return gov. Do i file 2008 tax return For more complete information on how to figure your estimated tax for 2014, see chapter 2 of Publication 505. Do i file 2008 tax return When To Pay Estimated Tax For estimated tax purposes, the tax year is divided into four payment periods. Do i file 2008 tax return Each period has a specific payment due date. Do i file 2008 tax return If you do not pay enough tax by the due date of each payment period, you may be charged a penalty even if you are due a refund when you file your income tax return. Do i file 2008 tax return The payment periods and due dates for estimated tax payments are shown next. Do i file 2008 tax return   For the period: Due date:*     Jan. Do i file 2008 tax return 1 – March 31 April 15     April 1 – May 31 June 16     June 1 – August 31 Sept. Do i file 2008 tax return 15     Sept. Do i file 2008 tax return 1– Dec. Do i file 2008 tax return 31 Jan. Do i file 2008 tax return 15, next year     *See Saturday, Sunday, holiday rule and January payment . Do i file 2008 tax return Saturday, Sunday, holiday rule. Do i file 2008 tax return   If the due date for an estimated tax payment falls on a Saturday, Sunday, or legal holiday, the payment will be on time if you make it on the next day that is not a Saturday, Sunday, or legal holiday. Do i file 2008 tax return January payment. Do i file 2008 tax return   If you file your 2014 Form 1040 or Form 1040A by January 31, 2015, and pay the rest of the tax you owe, you do not need to make the payment due on January 15, 2015. Do i file 2008 tax return Fiscal year taxpayers. Do i file 2008 tax return   If your tax year does not start on January 1, see the Form 1040-ES instructions for your payment due dates. Do i file 2008 tax return When To Start You do not have to make estimated tax payments until you have income on which you will owe income tax. Do i file 2008 tax return If you have income subject to estimated tax during the first payment period, you must make your first payment by the due date for the first payment period. Do i file 2008 tax return You can pay all your estimated tax at that time, or you can pay it in installments. Do i file 2008 tax return If you choose to pay in installments, make your first payment by the due date for the first payment period. Do i file 2008 tax return Make your remaining installment payments by the due dates for the later periods. Do i file 2008 tax return No income subject to estimated tax during first period. Do i file 2008 tax return    If you do not have income subject to estimated tax until a later payment period, you must make your first payment by the due date for that period. Do i file 2008 tax return You can pay your entire estimated tax by the due date for that period or you can pay it in installments by the due date for that period and the due dates for the remaining periods. Do i file 2008 tax return The following chart shows when to make installment payments. Do i file 2008 tax return If you first have income on which you must pay estimated tax: Make a payment  by:* Make later installments by:* Before April 1 April 15 June 16 Sept. Do i file 2008 tax return 15 Jan. Do i file 2008 tax return 15 next year April 1–May 31 June 16 Sept. Do i file 2008 tax return 15 Jan. Do i file 2008 tax return 15 next year June 1–Aug. Do i file 2008 tax return 31 Sept. Do i file 2008 tax return 15 Jan. Do i file 2008 tax return 15 next year After Aug. Do i file 2008 tax return 31 Jan. Do i file 2008 tax return 15 next year (None) *See Saturday, Sunday, holiday rule and January payment . Do i file 2008 tax return How much to pay to avoid a penalty. Do i file 2008 tax return   To determine how much you should pay by each payment due date, see How To Figure Each Payment, next. Do i file 2008 tax return How To Figure Each Payment You should pay enough estimated tax by the due date of each payment period to avoid a penalty for that period. Do i file 2008 tax return You can figure your required payment for each period by using either the regular installment method or the annualized income installment method. Do i file 2008 tax return These methods are described in chapter 2 of Publication 505. Do i file 2008 tax return If you do not pay enough during each payment period, you may be charged a penalty even if you are due a refund when you file your tax return. Do i file 2008 tax return If the earlier discussion of No income subject to estimated tax during first period or the later discussion of Change in estimated tax applies to you, you may benefit from reading Annualized Income Installment Method in chapter 2 of Publication 505 for information on how to avoid a penalty. Do i file 2008 tax return Underpayment penalty. Do i file 2008 tax return   Under the regular installment method, if your estimated tax payment for any period is less than one-fourth of your estimated tax, you may be charged a penalty for underpayment of estimated tax for that period when you file your tax return. Do i file 2008 tax return Under the annualized income installment method, your estimated tax payments vary with your income, but the amount required must be paid each period. Do i file 2008 tax return See chapter 4 of Publication 505 for more information. Do i file 2008 tax return Change in estimated tax. Do i file 2008 tax return   After you make an estimated tax payment, changes in your income, adjustments, deductions, credits, or exemptions may make it necessary for you to refigure your estimated tax. Do i file 2008 tax return Pay the unpaid balance of your amended estimated tax by the next payment due date after the change or in installments by that date and the due dates for the remaining payment periods. Do i file 2008 tax return Estimated Tax Payments Not Required You do not have to pay estimated tax if your withholding in each payment period is at least as much as: One-fourth of your required annual payment, or Your required annualized income installment for that period. Do i file 2008 tax return You also do not have to pay estimated tax if you will pay enough through withholding to keep the amount you owe with your return under $1,000. Do i file 2008 tax return How To Pay Estimated Tax There are several ways to pay estimated tax. Do i file 2008 tax return Credit an overpayment on your 2013 return to your 2014 estimated tax. Do i file 2008 tax return Pay by direct transfer from your bank account, or pay by credit or debit card using a pay-by-phone system or the Internet. Do i file 2008 tax return Send in your payment (check or money order) with a payment voucher from Form 1040-ES. Do i file 2008 tax return Credit an Overpayment If you show an overpayment of tax after completing your Form 1040 or Form 1040A for 2013, you can apply part or all of it to your estimated tax for 2014. Do i file 2008 tax return On line 75 of Form 1040, or line 44 of Form 1040A, enter the amount you want credited to your estimated tax rather than refunded. Do i file 2008 tax return Take the amount you have credited into account when figuring your estimated tax payments. Do i file 2008 tax return You cannot have any of the amount you credited to your estimated tax refunded to you until you file your tax return for the following year. Do i file 2008 tax return You also cannot use that overpayment in any other way. Do i file 2008 tax return Pay Online Paying online is convenient and secure and helps make sure we get your payments on time. Do i file 2008 tax return You can pay using either of the following electronic payment methods. Do i file 2008 tax return Direct transfer from your bank account. Do i file 2008 tax return Credit or debit card. Do i file 2008 tax return To pay your taxes online or for more information, go to www. Do i file 2008 tax return irs. Do i file 2008 tax return gov/e-pay. Do i file 2008 tax return Pay by Phone Paying by phone is another safe and secure method of paying electronically. Do i file 2008 tax return Use one of the following methods. Do i file 2008 tax return Direct transfer from your bank account. Do i file 2008 tax return Credit or debit card. Do i file 2008 tax return To pay by direct transfer from your bank account, call 1-800-555-4477 (English), 1-800-244-4829 (Espanol). Do i file 2008 tax return People who are deaf, hard of hearing, or have a speech disability and who have access to TTY/TDD can call 1-800-733-4829. Do i file 2008 tax return To pay using a credit or debit card, you can call one of the following service providers. Do i file 2008 tax return There is a convenience fee charged by these providers that varies by provider, card type, and payment amount. Do i file 2008 tax return WorldPay 1-888-9-PAY-TAXTM(1-888-972-9829) www. Do i file 2008 tax return payUSAtax. Do i file 2008 tax return com Official Payments Corporation 1-888-UPAY-TAXTM (1-888-872-9829) www. Do i file 2008 tax return officialpayments. Do i file 2008 tax return com Link2Gov Corporation 1-888-PAY-1040TM (1-888-729-1040) www. Do i file 2008 tax return PAY1040. Do i file 2008 tax return com For the latest details on how to pay by phone, go to www. Do i file 2008 tax return irs. Do i file 2008 tax return gov/e-pay. Do i file 2008 tax return Pay by Check or Money Order Using the Estimated Tax Payment Voucher Each payment of estimated tax by check or money order must be accompanied by a payment voucher from Form 1040-ES. Do i file 2008 tax return During 2013, if you: made at least one estimated tax payment but not by electronic means, did not use software or a paid preparer to prepare or file your return,  then you should receive a copy of the 2014 Form 1040-ES/V. Do i file 2008 tax return The enclosed payment vouchers will be preprinted with your name, address, and social security number. Do i file 2008 tax return Using the preprinted vouchers will speed processing, reduce the chance of error, and help save processing costs. Do i file 2008 tax return Use the window envelopes that came with your Form 1040-ES package. Do i file 2008 tax return If you use your own envelopes, make sure you mail your payment vouchers to the address shown in the Form 1040-ES instructions for the place where you live. Do i file 2008 tax return Note. Do i file 2008 tax return These criteria can change without notice. Do i file 2008 tax return If you do not receive a Form 1040-ES/V package and you are required to make an estimated tax payment, you should go to www. Do i file 2008 tax return irs. Do i file 2008 tax return gov and print a copy of Form 1040-ES which includes four blank payment vouchers. Do i file 2008 tax return Complete one of these and make your payment timely to avoid penalties for paying late. Do i file 2008 tax return Do not use the address shown in the Form 1040 or Form 1040A instructions for your estimated tax payments. Do i file 2008 tax return If you did not pay estimated tax last year, you can order Form 1040-ES from the IRS (see inside back cover of this publication) or download it from IRS. Do i file 2008 tax return gov. Do i file 2008 tax return Follow the instructions to make sure you use the vouchers correctly. Do i file 2008 tax return Joint estimated tax payments. Do i file 2008 tax return   If you file a joint return and are making joint estimated tax payments, enter the names and social security numbers on the payment voucher in the same order as they will appear on the joint return. Do i file 2008 tax return Change of address. Do i file 2008 tax return   You must notify the IRS if you are making estimated tax payments and you changed your address during the year. Do i file 2008 tax return Complete Form 8822, Change of Address, and mail it to the address shown in the instructions for that form. Do i file 2008 tax return Credit for Withholding and Estimated Tax for 2013 When you file your 2013 income tax return, take credit for all the income tax and excess social security or railroad retirement tax withheld from your salary, wages, pensions, etc. Do i file 2008 tax return Also take credit for the estimated tax you paid for 2013. Do i file 2008 tax return These credits are subtracted from your total tax. Do i file 2008 tax return Because these credits are refundable, you should file a return and claim these credits, even if you do not owe tax. Do i file 2008 tax return Two or more employers. Do i file 2008 tax return   If you had two or more employers in 2013 and were paid wages of more than $113,700, too much social security or tier 1 railroad retirement tax may have been withheld from your pay. Do i file 2008 tax return You may be able to claim the excess as a credit against your income tax when you file your return. Do i file 2008 tax return See Credit for Excess Social Security Tax or Railroad Retirement Tax Withheld in chapter 37. Do i file 2008 tax return Withholding If you had income tax withheld during 2013, you should be sent a statement by January 31, 2014, showing your income and the tax withheld. Do i file 2008 tax return Depending on the source of your income, you should receive: Form W-2, Wage and Tax Statement, Form W-2G, Certain Gambling Winnings, or A form in the 1099 series. Do i file 2008 tax return Forms W-2 and W-2G. Do i file 2008 tax return   If you file a paper return, always file Form W-2 with your income tax return. Do i file 2008 tax return File Form W-2G with your return only if it shows any federal income tax withheld from your winnings. Do i file 2008 tax return   You should get at least two copies of each form. Do i file 2008 tax return If you file a paper return, attach one copy to the front of your federal income tax return. Do i file 2008 tax return Keep one copy for your records. Do i file 2008 tax return You also should receive copies to file with your state and local returns. Do i file 2008 tax return Form W-2 Your employer is required to provide or send Form W-2 to you no later than January 31, 2014. Do i file 2008 tax return You should receive a separate Form W-2 from each employer you worked for. Do i file 2008 tax return If you stopped working before the end of 2013, your employer could have given you your Form W-2 at any time after you stopped working. Do i file 2008 tax return However, your employer must provide or send it to you by January 31, 2014. Do i file 2008 tax return If you ask for the form, your employer must send it to you within 30 days after receiving your written request or within 30 days after your final wage payment, whichever is later. Do i file 2008 tax return If you have not received your Form W-2 by January 31, you should ask your employer for it. Do i file 2008 tax return If you do not receive it by February 15, call the IRS. Do i file 2008 tax return Form W-2 shows your total pay and other compensation and the income tax, social security tax, and Medicare tax that was withheld during the year. Do i file 2008 tax return Include the federal income tax withheld (as shown in box 2 of Form W-2) on: Line 62 if you file Form 1040, Line 36 if you file Form 1040A, or Line 7 if you file Form 1040EZ. Do i file 2008 tax return In addition, Form W-2 is used to report any taxable sick pay you received and any income tax withheld from your sick pay. Do i file 2008 tax return Form W-2G If you had gambling winnings in 2013, the payer may have withheld income tax. Do i file 2008 tax return If tax was withheld, the payer will give you a Form W-2G showing the amount you won and the amount of tax withheld. Do i file 2008 tax return Report the amounts you won on line 21 of Form 1040. Do i file 2008 tax return Take credit for the tax withheld on line 62 of Form 1040. Do i file 2008 tax return If you had gambling winnings, you must use Form 1040; you cannot use Form 1040A or Form 1040EZ. Do i file 2008 tax return The 1099 Series Most forms in the 1099 series are not filed with your return. Do i file 2008 tax return These forms should be furnished to you by January 31, 2014 (or, for Forms 1099-B, 1099-S, and certain Forms 1099-MISC, by February 15, 2014). Do i file 2008 tax return Unless instructed to file any of these forms with your return, keep them for your records. Do i file 2008 tax return There are several different forms in this series, including: Form 1099-B, Proceeds From Broker and Barter Exchange Transactions; Form 1099-DIV, Dividends and Distributions; Form 1099-G, Certain Government Payments; Form 1099-INT, Interest Income; Form 1099-K, Payment Card and Third Party Network Transactions; Form 1099-MISC, Miscellaneous Income; Form 1099-OID, Original Issue Discount; Form 1099-PATR, Taxable Distributions Received from Cooperatives; Form 1099-Q, Payments From Qualified Education Programs; Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. Do i file 2008 tax return ; Form 1099-S, Proceeds From Real Estate Transactions; Form RRB-1099, Payments by the Railroad Retirement Board. Do i file 2008 tax return If you received the types of income reported on some forms in the 1099 series, you may not be able to use Form 1040A or Form 1040EZ. Do i file 2008 tax return See the instructions to these forms for details. Do i file 2008 tax return Form 1099-R. Do i file 2008 tax return   Attach Form 1099-R to your paper return if box 4 shows federal income tax withheld. Do i file 2008 tax return Include the amount withheld in the total on line 62 of Form 1040 or line 36 of Form 1040A. Do i file 2008 tax return You cannot use Form 1040EZ if you received payments reported on Form 1099-R. Do i file 2008 tax return Backup withholding. Do i file 2008 tax return   If you were subject to backup withholding on income you received during 2013, include the amount withheld, as shown on your Form 1099, in the total on line 62 of Form 1040, line 36 of Form 1040A, or line 7 of Form 1040EZ. Do i file 2008 tax return Form Not Correct If you receive a form with incorrect information on it, you should ask the payer for a corrected form. Do i file 2008 tax return Call the telephone number or write to the address given for the payer on the form. Do i file 2008 tax return The corrected Form W-2G or Form 1099 you receive will have an “X” in the “CORRECTED” box at the top of the form. Do i file 2008 tax return A special form, Form W-2c, Corrected Wage and Tax Statement, is used to correct a Form W-2. Do i file 2008 tax return In certain situations, you will receive two forms in place of the original incorrect form. Do i file 2008 tax return This will happen when your taxpayer identification number is wrong or missing, your name and address are wrong, or you received the wrong type of form (for example, a Form 1099-DIV instead of a Form 1099-INT). Do i file 2008 tax return One new form you receive will be the same incorrect form or have the same incorrect information, but all money amounts will be zero. Do i file 2008 tax return This form will have an “X” in the “CORRECTED” box at the top of the form. Do i file 2008 tax return The second new form should have all the correct information, prepared as though it is the original (the “CORRECTED” box will not be checked). Do i file 2008 tax return Form Received After Filing If you file your return and you later receive a form for income that you did not include on your return, you should report the income and take credit for any income tax withheld by filing Form 1040X, Amended U. Do i file 2008 tax return S. Do i file 2008 tax return Individual Income Tax Return. Do i file 2008 tax return Separate Returns If you are married but file a separate return, you can take credit only for the tax withheld from your own income. Do i file 2008 tax return Do not include any amount withheld from your spouse's income. Do i file 2008 tax return However, different rules may apply if you live in a community property state. Do i file 2008 tax return Community property states are listed in chapter 2. Do i file 2008 tax return For more information on these rules, and some exceptions, see Publication 555, Community Property. Do i file 2008 tax return Fiscal Years If you file your tax return on the basis of a fiscal year (a 12-month period ending on the last day of any month except December), you must follow special rules to determine your credit for federal income tax withholding. Do i file 2008 tax return For a discussion of how to take credit for withholding on a fiscal year return, see Fiscal Years (FY) in chapter 3 of Publication 505. Do i file 2008 tax return Estimated Tax Take credit for all your estimated tax payments for 2013 on line 63 of Form 1040 or line 37 of Form 1040A. Do i file 2008 tax return Include any overpayment from 2012 that you had credited to your 2013 estimated tax. Do i file 2008 tax return You must use Form 1040 or Form 1040A if you paid estimated tax. Do i file 2008 tax return You cannot use Form 1040EZ. Do i file 2008 tax return Name changed. Do i file 2008 tax return   If you changed your name, and you made estimated tax payments using your old name, attach a brief statement to the front of your paper tax return indicating: When you made the payments, The amount of each payment, Your name when you made the payments, and Your social security number. Do i file 2008 tax return The statement should cover payments you made jointly with your spouse as well as any you made separately. Do i file 2008 tax return   Be sure to report the change to the Social Security Administration. Do i file 2008 tax return This prevents delays in processing your return and issuing any refunds. Do i file 2008 tax return Separate Returns If you and your spouse made separate estimated tax payments for 2013 and you file separate returns, you can take credit only for your own payments. Do i file 2008 tax return If you made joint estimated tax payments, you must decide how to divide the payments between your returns. Do i file 2008 tax return One of you can claim all of the estimated tax paid and the other none, or you can divide it in any other way you agree on. Do i file 2008 tax return If you cannot agree, you must divide the payments in proportion to each spouse's individual tax as shown on your separate returns for 2013. Do i file 2008 tax return Divorced Taxpayers If you made joint estimated tax payments for 2013, and you were divorced during the year, either you or your former spouse can claim all of the joint payments, or you each can claim part of them. Do i file 2008 tax return If you cannot agree on how to divide the payments, you must divide them in proportion to each spouse's individual tax as shown on your separate returns for 2013. Do i file 2008 tax return If you claim any of the joint payments on your tax return, enter your former spouse's social security number (SSN) in the space provided on the front of Form 1040 or Form 1040A. Do i file 2008 tax return If you divorced and remarried in 2013, enter your present spouse's SSN in that space and write your former spouse's SSN, followed by “DIV,” to the left of Form 1040, line 63, or Form 1040A, line 37. Do i file 2008 tax return Underpayment Penalty for 2013 If you did not pay enough tax, either through withholding or by making timely estimated tax payments, you will have an underpayment of estimated tax and you may have to pay a penalty. Do i file 2008 tax return Generally, you will not have to pay a penalty for 2013 if any of the following apply. Do i file 2008 tax return The total of your withholding and estimated tax payments was at least as much as your 2012 tax (or 110% of your 2012 tax if your AGI was more than $150,000, $75,000 if your 2013 filing status is married filing separately) and you paid all required estimated tax payments on time. Do i file 2008 tax return The tax balance due on your 2013 return is no more than 10% of your total 2013 tax, and you paid all required estimated tax payments on time. Do i file 2008 tax return Your total 2013 tax minus your withholding and refundable credits is less than $1,000. Do i file 2008 tax return You did not have a tax liability for 2012 and your 2012 tax year was 12 months, or You did not have any withholding taxes and your current year tax less any household employment taxes is less than $1,000. Do i file 2008 tax return See Publication 505, chapter 4, for a definition of “total tax” for 2012 and 2013. Do i file 2008 tax return Farmers and fishermen. Do i file 2008 tax return   Special rules apply if you are a farmer or fisherman. Do i file 2008 tax return See Farmers and Fishermen in chapter 4 of Publication 505 for more information. Do i file 2008 tax return IRS can figure the penalty for you. Do i file 2008 tax return   If you think you owe the penalty but you do not want to figure it yourself when you file your tax return, you may not have to. Do i file 2008 tax return Generally, the IRS will figure the penalty for you and send you a bill. Do i file 2008 tax return However, if you think you are able to lower or eliminate your penalty, you must complete Form 2210 or Form 2210-F and attach it to your paper return. Do i file 2008 tax return See chapter 4 of Publication 505. Do i file 2008 tax return Prev  Up  Next   Home   More Online Publications
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Understanding Your CP261 Notice

CP261 is the approval notice for Form 2553, Election by a Small Business Corporation.


What you need to do

  • Keep this S corporation approval letter (CP261 Notice), in your permanent records.
  • Timely file Form 1120S reporting income/loss for the S corporation including Schedules K-1 for all shareholders.
  • Timely file all employment tax returns.

You may want to

  • If your address changes, submit Form 8822-B, Change of Address – Business, to ensure our records remain correct.

Answers to Common Questions

Page Last Reviewed or Updated: 14-Feb-2014

Printable samples of this notice (PDF)

 

 

How to get help

  • Call the 1-800 number listed on the top right corner of your notice.
  • Authorize someone (e.g., accountant) to contact the IRS on your behalf using Form 2848.
  • See if you qualify for help from a Low Income Taxpayer Clinic.
     

The Do I File 2008 Tax Return

Do i file 2008 tax return 12. Do i file 2008 tax return   Self-Employment Tax Table of Contents What's New for 2013 What's New for 2014 Introduction Topics - This chapter discusses: Useful Items - You may want to see: Why Pay Self-Employment Tax? How To Pay Self-Employment TaxReplacing a lost social security card. Do i file 2008 tax return Name change. Do i file 2008 tax return Penalty for underpayment of estimated tax. Do i file 2008 tax return Who Must Pay Self-Employment Tax?Limited partner. Do i file 2008 tax return Community property. Do i file 2008 tax return Figuring Self-Employment EarningsLandlord Participation in Farming Methods for Figuring Net EarningsRegular Method Farm Optional Method Nonfarm Optional Method Using Both Optional Methods Reporting Self-Employment Tax What's New for 2013 Tax rates. Do i file 2008 tax return  For tax years beginning in 2013, the social security part of the self-employment tax increases from 10. Do i file 2008 tax return 4% to 12. Do i file 2008 tax return 4%. Do i file 2008 tax return The Medicare part of the tax remains at 2. Do i file 2008 tax return 9%. Do i file 2008 tax return As a result, the self-employment tax is increased from 13. Do i file 2008 tax return 3% to 15. Do i file 2008 tax return 3%. Do i file 2008 tax return Additional Medicare Tax. Do i file 2008 tax return . Do i file 2008 tax return  For tax years beginning in 2013, a 0. Do i file 2008 tax return 9% Additional Medicare Tax applies to your Medicare wages, Railroad Retirement Tax Act (RRTA) compensation, and self-employment income above a threshold amount. Do i file 2008 tax return Use Form 8959, Additional Medicare Tax, to figure this tax. Do i file 2008 tax return For more information, see the Instructions for Form 8959. Do i file 2008 tax return Maximum net earnings. Do i file 2008 tax return  The maximum net self-employment earnings subject to the social security part (12. Do i file 2008 tax return 4%) of the self-employment tax increased to $113,700 for 2013. Do i file 2008 tax return There is no maximum limit on earnings subject to the Medicare part (2. Do i file 2008 tax return 9%). Do i file 2008 tax return What's New for 2014 Maximum net earnings. Do i file 2008 tax return  The maximum net self-employment earnings subject to the social security part of the self-employment tax for 2014 will be discussed in the 2013 Publication 334. Do i file 2008 tax return Introduction Self-employment tax (SE tax) is a social security and Medicare tax primarily for individuals who work for themselves. Do i file 2008 tax return It is similar to the social security and Medicare taxes withheld from the pay of most wage earners. Do i file 2008 tax return You usually have to pay SE tax if you are self-employed. Do i file 2008 tax return You are usually self-employed if you operate your own farm on land you either own or rent. Do i file 2008 tax return You have to figure SE tax on Schedule SE (Form 1040). Do i file 2008 tax return Farmers who have employees may have to pay the employer's share of social security and Medicare taxes, as well. Do i file 2008 tax return See chapter 13 for information on employment taxes. Do i file 2008 tax return Self-employment tax rate. Do i file 2008 tax return   For tax years beginning in 2013, the self-employment tax rate is 15. Do i file 2008 tax return 3%. Do i file 2008 tax return The rate consists of two parts: 12. Do i file 2008 tax return 4% for social security (old-age, survivors, and disability insurance) and 2. Do i file 2008 tax return 9% for Medicare (hospital insurance). Do i file 2008 tax return Topics - This chapter discusses: Why pay self-employment tax How to pay self-employment tax Who must pay self-employment tax Figuring self-employment earnings Landlord participation in farming Methods for figuring net earnings Reporting self-employment tax Useful Items - You may want to see: Publication 541 Partnerships Form (and Instructions) 1040 U. Do i file 2008 tax return S. Do i file 2008 tax return Individual Income Tax Return Sch F (Form 1040) Profit or Loss From Farming Sch SE (Form 1040) Self-Employment Tax 1065 U. Do i file 2008 tax return S. Do i file 2008 tax return Return of Partnership Income Sch K-1 (Form 1065) Partner's Share of Income, Deductions, Credits, etc. Do i file 2008 tax return See chapter 16 for information about getting publications and forms. Do i file 2008 tax return Why Pay Self-Employment Tax? Social security benefits are available to self-employed persons just as they are to wage earners. Do i file 2008 tax return Your payments of SE tax contribute to your coverage under the social security system. Do i file 2008 tax return Social security coverage provides you with retirement benefits, disability benefits, survivor benefits, and hospital insurance (Medicare) benefits. Do i file 2008 tax return How to become insured under social security. Do i file 2008 tax return   You must be insured under the social security system before you begin receiving social security benefits. Do i file 2008 tax return You are insured if you have the required number of credits (also called quarters of coverage). Do i file 2008 tax return Earning credits in 2013. Do i file 2008 tax return   You can earn a maximum of four credits per year. Do i file 2008 tax return For 2013, you earn one credit for each $1,160 of combined wages and self-employment earnings subject to social security tax. Do i file 2008 tax return You need $4,640 ($1,160 × 4) of combined wages and self-employment earnings subject to social security tax to earn four credits in 2013. Do i file 2008 tax return It does not matter whether the income is earned in 1 quarter or is spread over 2 or more quarters. Do i file 2008 tax return For an explanation of the number of credits you must have to be insured and the benefits available to you and your family under the social security program, consult your nearest Social Security Administration (SSA) office or visit the SSA website at www. Do i file 2008 tax return socialsecurity. Do i file 2008 tax return gov. Do i file 2008 tax return Making false statements to get or to increase social security benefits may subject you to penalties. Do i file 2008 tax return The Social Security Administration (SSA) time limit for posting self-employment earnings. Do i file 2008 tax return   Generally, the SSA will give you credit only for self-employment earnings reported on a tax return filed within 3 years, 3 months, and 15 days after the tax year you earned the income. Do i file 2008 tax return    If you file your tax return or report a change in your self-employment earnings after the SSA time limit for posting self-employment earnings, the SSA may change its records, but only to remove or reduce the amount. Do i file 2008 tax return The SSA will not change its records to increase your self-employment earnings after the SSA time limit listed above. Do i file 2008 tax return How To Pay Self-Employment Tax To pay SE tax, you must have a social security number (SSN) or an individual taxpayer identification number (ITIN). Do i file 2008 tax return This section explains how to: Obtain an SSN or ITIN, and Pay your SE tax using estimated tax. Do i file 2008 tax return An ITIN does not entitle you to social security benefits. Do i file 2008 tax return Obtaining an ITIN does not change your immigration or employment status under U. Do i file 2008 tax return S. Do i file 2008 tax return law. Do i file 2008 tax return Obtaining a social security number. Do i file 2008 tax return   If you have never had an SSN, apply for one using Form SS-5, Application for a Social Security Card. Do i file 2008 tax return The application is also available in Spanish. Do i file 2008 tax return You can get this form at any Social Security office or by calling 1-800-772-1213. Do i file 2008 tax return    You can also download Form SS-5 from the Social Security Administration website at  www. Do i file 2008 tax return socialsecurity. Do i file 2008 tax return gov. Do i file 2008 tax return   If you have a social security number from the time you were an employee, you must use that number. Do i file 2008 tax return Do not apply for a new one. Do i file 2008 tax return Replacing a lost social security card. Do i file 2008 tax return   If you have a number but lost your card, file Form SS-5. Do i file 2008 tax return You will get a new card showing your original number, not a new number. Do i file 2008 tax return Name change. Do i file 2008 tax return   If your name has changed since you received your social security card, complete Form SS-5 to report a name change. Do i file 2008 tax return Obtaining an individual taxpayer identification number. Do i file 2008 tax return   The IRS will issue you an ITIN, for tax use only, if you are a nonresident or resident alien and you do not have, and are not eligible to get, an SSN. Do i file 2008 tax return To apply for an ITIN, file Form W-7, Application for IRS Individual Taxpayer Identification Number. Do i file 2008 tax return You can get this form by calling 1-800-829-3676. Do i file 2008 tax return For more information on ITINs, see Publication 1915, Understanding Your IRS Individual Taxpayer Identification Number. Do i file 2008 tax return Form W-7 and Publication 1915 are also available in Spanish. Do i file 2008 tax return    You can also download Form W-7 from the IRS website at IRS. Do i file 2008 tax return gov. Do i file 2008 tax return Paying estimated tax. Do i file 2008 tax return   Estimated tax is the method used to pay tax (including SE tax) on income not subject to withholding. Do i file 2008 tax return You generally have to make estimated tax payments if you expect to owe tax, including SE tax, of $1,000 or more when you file your return. Do i file 2008 tax return Use Form 1040-ES, Estimated Tax for Individuals, to figure and pay the tax. Do i file 2008 tax return   However, if at least two-thirds of your gross income for 2013 or 2014 was from farming and you file your 2014 Form 1040 and pay all the tax due by March 2, 2015, you do not have to pay any estimated tax. Do i file 2008 tax return For more information about estimated tax for farmers, see chapter 15. Do i file 2008 tax return Penalty for underpayment of estimated tax. Do i file 2008 tax return   You may have to pay a penalty if you do not pay enough estimated tax by its due date. Do i file 2008 tax return Who Must Pay Self-Employment Tax? You must pay SE tax and file Schedule SE (Form 1040) if your net earnings from self-employment were $400 or more. Do i file 2008 tax return The SE tax rules apply no matter how old you are and even if you are already receiving social security or Medicare benefits. Do i file 2008 tax return Aliens. Do i file 2008 tax return   Generally, resident aliens must pay self-employment tax under the same rules that apply to U. Do i file 2008 tax return S. Do i file 2008 tax return citizens. Do i file 2008 tax return Nonresident aliens are not subject to self-employment tax. Do i file 2008 tax return However, residents of the Virgin Islands, Puerto Rico, Guam, the Commonwealth of the Northern Mariana Islands, or American Samoa are subject to self-employment tax, as they are considered U. Do i file 2008 tax return S. Do i file 2008 tax return residents for self-employment tax purposes. Do i file 2008 tax return For more information on aliens, see Publication 519, U. Do i file 2008 tax return S. Do i file 2008 tax return Tax Guide for Aliens. Do i file 2008 tax return Are you self-employed?   You are self-employed if you carry on a trade or business (such as running a farm) as a sole proprietor, an independent contractor, a member of a partnership, or are otherwise in business for yourself. Do i file 2008 tax return A trade or business is generally an activity carried on for a livelihood or in good faith to make a profit. Do i file 2008 tax return Share farmer. Do i file 2008 tax return   You are a self-employed farmer under an income-sharing arrangement if both the following apply. Do i file 2008 tax return You produce a crop or raise livestock on land belonging to another person. Do i file 2008 tax return Your share of the crop or livestock, or the proceeds from their sale, depends on the amount produced. Do i file 2008 tax return Your net farm profit or loss from the income-sharing arrangement is reported on Schedule F (Form 1040) and included in your self-employment earnings. Do i file 2008 tax return   If you produce a crop or livestock on land belonging to another person and are to receive a specified rate of pay, a fixed sum of money, or a fixed quantity of the crop or livestock, and not a share of the crop or livestock or their proceeds, you may be either self-employed or an employee of the landowner. Do i file 2008 tax return This will depend on whether the landowner has the right to direct or control your performance of services. Do i file 2008 tax return Example. Do i file 2008 tax return A share farmer produces a crop on land owned by another person on a 50-50 crop-share basis. Do i file 2008 tax return Under the terms of their agreement, the share farmer furnishes the labor and half the cost of seed and fertilizer. Do i file 2008 tax return The landowner furnishes the machinery and equipment used to produce and harvest the crop, and half the cost of seed and fertilizer. Do i file 2008 tax return The share farmer is provided a house in which to live. Do i file 2008 tax return The landowner and the share farmer decide on a cropping plan. Do i file 2008 tax return The share farmer is a self-employed farmer for purposes of the agreement to produce the crops, and the share farmer's part of the profit or loss from the crops is reported on Schedule F (Form 1040) and included in self-employment earnings. Do i file 2008 tax return The tax treatment of the landowner is discussed later under Landlord Participation in Farming. Do i file 2008 tax return Contract farming. Do i file 2008 tax return   Under typical contract farming arrangements, the grower receives a fixed payment per unit of crops or finished livestock delivered to the processor or packing company. Do i file 2008 tax return Since the grower typically furnishes labor and bears some production risk, the payments are reported on Schedule F and are therefore subject to self-employment tax. Do i file 2008 tax return 4-H Club or FFA project. Do i file 2008 tax return   If an individual participates in a 4-H Club or Future Farmers of America (FFA) project, any net income received from sales or prizes related to the project may be subject to income tax. Do i file 2008 tax return Report the net income as “Other income” on line 21 of Form 1040. Do i file 2008 tax return If necessary, attach a statement showing the gross income and expenses. Do i file 2008 tax return The net income may not be subject to SE tax if the project is primarily for educational purposes and not for profit, and is completed by the individual under the rules and economic restrictions of the sponsoring 4-H or FFA organization. Do i file 2008 tax return Such a project is generally not considered a trade or business. Do i file 2008 tax return Partners in a partnership. Do i file 2008 tax return   Generally, you are self-employed if you are a member of a partnership that carries on a trade or business. Do i file 2008 tax return Limited partner. Do i file 2008 tax return   If you are a limited partner, your partnership income is generally not subject to SE tax. Do i file 2008 tax return However, guaranteed payments you receive for services you perform for the partnership are subject to SE tax and should be reported to you in box 14 of your Schedule K-1 (Form 1065). Do i file 2008 tax return Business Owned and Operated by Spouses. Do i file 2008 tax return   If you and your spouse jointly own and operate a farm as an unincorporated business and share in the profits and losses, you are partners in a partnership whether or not you have a formal partnership agreement. Do i file 2008 tax return You must file Form 1065, instead of Schedule F, unless you make a joint election to be treated as a qualified joint venture. Do i file 2008 tax return Making this election will allow you to avoid the complexity of Form 1065 but still give each spouse credit for social security earnings on which retirement benefits are based. Do i file 2008 tax return Qualified joint venture. Do i file 2008 tax return   If you and your spouse each materially participate as the only members of a jointly owned and operated farm, and you file a joint tax return for the tax year, you can make a joint election to be treated as a qualified joint venture instead of a partnership for the tax year. Do i file 2008 tax return For an explanation of “material participation,” see the instructions for Schedule C, line G, and the instructions for Schedule F, line E. Do i file 2008 tax return   To make this election, you must divide all items of income, gain, loss, deduction, and credit attributable to the business between you and your spouse in accordance with your respective interests in the venture. Do i file 2008 tax return Each of you must file a separate Schedule F and a separate Schedule SE. Do i file 2008 tax return For more information, see Qualified Joint Venture in the Instructions for Schedule SE (Form 1040). Do i file 2008 tax return Spouse employee. Do i file 2008 tax return   If your spouse is your employee, not your partner, you must withhold and pay social security and Medicare taxes for him or her. Do i file 2008 tax return For more information about employment taxes, see chapter 13. Do i file 2008 tax return Community property. Do i file 2008 tax return   If you are a partner and your distributive share of any income or loss from a trade or business carried on by the partnership is community property, treat your share as your self-employment earnings. Do i file 2008 tax return Do not treat any of your share as self-employment earnings of your spouse. Do i file 2008 tax return Figuring Self-Employment Earnings Farmer. Do i file 2008 tax return   If you are self-employed as a farmer, use Schedule F (Form 1040) to figure your self-employment earnings. Do i file 2008 tax return Partnership income or loss. Do i file 2008 tax return   If you are a member of a partnership that carries on a trade or business, the partnership should report your self-employment earnings in box 14, code A, of your Schedule K-1 (Form 1065). Do i file 2008 tax return Box 14 of Schedule K-1 may also provide amounts for gross farming or fishing income (code B) and gross nonfarm income (code C). Do i file 2008 tax return Use these amounts if you use the farm or nonfarm optional method to figure net earnings from self-employment (see Methods for Figuring Net Earnings , later). Do i file 2008 tax return   If you are a general partner, you may need to reduce these reported earnings by amounts you claim as a section 179 deduction, unreimbursed partnership expenses, or depletion on oil and gas properties. Do i file 2008 tax return   If the amount reported is a loss, include only the deductible amount when you figure your total self-employment earnings. Do i file 2008 tax return   For more information, see the Partner's Instructions for Schedule K-1 (Form 1065). Do i file 2008 tax return   For general information on partnerships, see Publication 541. Do i file 2008 tax return More than one business. Do i file 2008 tax return   If you have self-employment earnings from more than one trade, business, or profession, you generally must combine the net profit or loss from each to determine your total self-employment earnings. Do i file 2008 tax return A loss from one business reduces your profit from another business. Do i file 2008 tax return However, do not combine earnings from farm and nonfarm businesses if you are using one of the optional methods (discussed later) to figure net earnings. Do i file 2008 tax return Community property. Do i file 2008 tax return   If any of the income from a farm or business, other than a partnership, is community property under state law, it is included in the self-employment earnings of the spouse carrying on the trade or business. Do i file 2008 tax return Lost income payments. Do i file 2008 tax return   Lost income payments received from insurance or other sources for reducing or stopping farming activities are included in self-employment earnings. Do i file 2008 tax return These include USDA payments to compensate for lost income resulting from reductions in tobacco quotas and allotments. Do i file 2008 tax return Even if you are not farming when you receive the payment, it is included in self-employment earnings if it relates to your farm business (even though it is temporarily inactive). Do i file 2008 tax return A connection exists if it is clear the payment would not have been made but for your conduct of your farm business. Do i file 2008 tax return Gain or loss. Do i file 2008 tax return   A gain or loss from the disposition of property that is neither stock in trade nor held primarily for sale to customers is not included in self-employment earnings. Do i file 2008 tax return It does not matter whether the disposition is a sale, exchange, or involuntary conversion. Do i file 2008 tax return For example, gains or losses from the disposition of the following types of property are not included in self-employment earnings. Do i file 2008 tax return Investment property. Do i file 2008 tax return Depreciable property or other fixed assets used in your trade or business. Do i file 2008 tax return Livestock held for draft, breeding, sport, or dairy purposes, and not held primarily for sale, regardless of how long the livestock was held, or whether it was raised or purchased. Do i file 2008 tax return Unharvested standing crops sold with land held more than 1 year. Do i file 2008 tax return Timber, coal, or iron ore held for more than 1 year if an economic interest was retained, such as a right to receive coal royalties. Do i file 2008 tax return   A gain or loss from the cutting of timber is not included in self-employment earnings if the cutting is treated as a sale or exchange. Do i file 2008 tax return For more information on electing to treat the cutting of timber as a sale or exchange, see Timber in chapter 8. Do i file 2008 tax return Wages and salaries. Do i file 2008 tax return   Wages and salaries received for services performed as an employee and covered by social security or railroad retirement are not included in self-employment earnings. Do i file 2008 tax return   Wages paid in kind to you for agricultural labor, such as commodity wages, are not included in self-employment earnings. Do i file 2008 tax return Retired partner. Do i file 2008 tax return   Retirement income received by a partner from his or her partnership under a written plan is not included in self-employment earnings if all the following apply. Do i file 2008 tax return The retired partner performs no services for the partnership during the year. Do i file 2008 tax return The retired partner is owed only the retirement payments. Do i file 2008 tax return The retired partner's share (if any) of the partnership capital was fully paid to the retired partner. Do i file 2008 tax return The payments to the retired partner are lifelong periodic payments. Do i file 2008 tax return Conservation Reserve Program (CRP) payments. Do i file 2008 tax return   Under the Conservation Reserve Program (CRP), if you own or operate highly erodible or other specified cropland, you may enter into a longterm contract with the USDA, agreeing to convert to a less intensive use of that cropland. Do i file 2008 tax return You must include the annual rental payments and any onetime incentive payment you receive under the program on Schedule F, lines 4a and 4b. Do i file 2008 tax return Cost share payments you receive may qualify for the costsharing exclusion. Do i file 2008 tax return See Cost-Sharing Exclusion (Improvements), above. Do i file 2008 tax return CRP payments are reported to you on Form 1099G. Do i file 2008 tax return Individuals who are receiving Social Security retirement or disability benefits may exclude CRP payments when calculating self-employment tax. Do i file 2008 tax return See the instructions for Schedule SE (Form 1040). Do i file 2008 tax return Self-employed health insurance deduction. Do i file 2008 tax return   You cannot deduct the self-employed health insurance deduction you report on Form 1040, line 29, from self-employment earnings on Schedule SE (Form 1040). Do i file 2008 tax return Landlord Participation in Farming As a general rule, income and deductions from rentals and from personal property leased with real estate are not included in determining self-employment earnings. Do i file 2008 tax return However, income and deductions from farm rentals, including government commodity program payments received by a landowner who rents land, are included if the rental arrangement provides that the landowner will, and does, materially participate in the production or management of production of the farm products on the land. Do i file 2008 tax return Crop shares. Do i file 2008 tax return   Rent paid in the form of crop shares is included in self-employment earnings for the year you sell, exchange, give away, or use the crop shares if you meet one of the four material participation tests (discussed next) at the time the crop shares are produced. Do i file 2008 tax return Feeding such crop shares to livestock is considered using them. Do i file 2008 tax return Your gross income for figuring your self-employment earnings includes the fair market value of the crop shares when they are used as feed. Do i file 2008 tax return Material participation for landlords. Do i file 2008 tax return   You materially participate if you have an arrangement with your tenant for your participation and you meet one or more of the following tests. Do i file 2008 tax return You do at least three of the following. Do i file 2008 tax return Pay, using cash or credit, at least half the direct costs of producing the crop or livestock. Do i file 2008 tax return Furnish at least half the tools, equipment, and livestock used in the production activities. Do i file 2008 tax return Advise or consult with your tenant. Do i file 2008 tax return Inspect the production activities periodically. Do i file 2008 tax return You regularly and frequently make, or take an important part in making, management decisions substantially contributing to or affecting the success of the enterprise. Do i file 2008 tax return You work 100 hours or more spread over a period of 5 weeks or more in activities connected with agricultural production. Do i file 2008 tax return You do things that, considered in their totality, show you are materially and significantly involved in the production of the farm commodities. Do i file 2008 tax return These tests may be used as general guides for determining whether you are a material participant. Do i file 2008 tax return Example. Do i file 2008 tax return Drew Houston agrees to produce a crop on J. Do i file 2008 tax return Clarke's cotton farm, with each receiving half the proceeds. Do i file 2008 tax return Clarke advises Houston when to plant, spray, and pick the cotton. Do i file 2008 tax return During the growing season, Clarke inspects the crop every few days to determine whether Houston is properly taking care of the crop. Do i file 2008 tax return Houston furnishes all labor needed to grow and harvest the crop. Do i file 2008 tax return The management decisions made by Clarke in connection with the care of the cotton crop and his regular inspection of the crop establish that he participates to a material degree in the cotton production operations. Do i file 2008 tax return The income Clarke receives from his cotton farm is included in his self-employment earnings. Do i file 2008 tax return Methods for Figuring Net Earnings There are three ways to figure your net earnings from self-employment. Do i file 2008 tax return The regular method. Do i file 2008 tax return The farm optional method. Do i file 2008 tax return The nonfarm optional method. Do i file 2008 tax return You must use the regular method unless you are eligible to use one or both of the optional methods. Do i file 2008 tax return See Figure 12-1 , shown later. Do i file 2008 tax return Figure 12-1. Do i file 2008 tax return Can I Use the Optional Methods? Please click here for the text description of the image. Do i file 2008 tax return Figure 12–1. Do i file 2008 tax return Can I Use the Optional Methods? Why use an optional method?   You may want to use the optional methods (discussed later) when you have a loss or a small net profit and any one of the following applies. Do i file 2008 tax return You want to receive credit for social security benefit coverage. Do i file 2008 tax return You incurred child or dependent care expenses for which you could claim a credit. Do i file 2008 tax return (An optional method may increase your earned income, which could increase your credit. Do i file 2008 tax return ) You are entitled to the earned income credit. Do i file 2008 tax return (An optional method may increase your earned income, which could increase your credit. Do i file 2008 tax return ) You are entitled to the additional child tax credit. Do i file 2008 tax return (An optional method may increase your earned income, which could increase your credit. Do i file 2008 tax return ) Effects of using an optional method. Do i file 2008 tax return   Using an optional method could increase your SE tax. Do i file 2008 tax return Paying more SE tax may result in you getting higher social security disability or retirement benefits. Do i file 2008 tax return   If you use either or both optional methods, you must figure and pay the SE tax due under these methods even if you would have had a smaller SE tax or no SE tax using the regular method. Do i file 2008 tax return   The optional methods may be used only to figure your SE tax. Do i file 2008 tax return To figure your income tax, include your actual self-employment earnings in gross income, regardless of which method you use to determine SE tax. Do i file 2008 tax return Regular Method Multiply your total self-employment earnings by 92. Do i file 2008 tax return 35% (. Do i file 2008 tax return 9235) to get your net earnings under the regular method. Do i file 2008 tax return See Short Schedule SE, line 4, or Long Schedule SE, line 4a. Do i file 2008 tax return Net earnings figured using the regular method are also called “actual net earnings. Do i file 2008 tax return ” Farm Optional Method Use the farm optional method only for self-employment earnings from a farming business. Do i file 2008 tax return You can use this method if you meet either of the following tests. Do i file 2008 tax return Your gross farm income is $6,960 or less. Do i file 2008 tax return Your net farm profits are less than $5,024. Do i file 2008 tax return Gross farm income. Do i file 2008 tax return   Your gross farm income is the total of the amounts from: Schedule F (Form 1040), line 9, and Schedule K-1 (Form 1065), box 14, code B (from farm partnerships). Do i file 2008 tax return Net farm profits. Do i file 2008 tax return   Net farm profits generally are the total of the amounts from: Schedule F (Form 1040), line 34, and Schedule K-1 (Form 1065), box 14, code A (from farm partnerships). Do i file 2008 tax return However, you may need to adjust the amount reported on Schedule K-1 if you are a general partner or if it is a loss. Do i file 2008 tax return For more information, see Partnership income or loss , earlier. Do i file 2008 tax return Figuring farm net earnings. Do i file 2008 tax return   If you meet either of the two tests explained above, use Table 12-1. Do i file 2008 tax return Figuring Farm Net Earnings , to figure your net earnings from self-employment under the farm optional method. Do i file 2008 tax return Table 12-1. Do i file 2008 tax return Figuring Farm Net Earnings IF your gross farm income  is. Do i file 2008 tax return . Do i file 2008 tax return . Do i file 2008 tax return THEN your net earnings are equal to. Do i file 2008 tax return . Do i file 2008 tax return . Do i file 2008 tax return $6,960 or less Two-thirds of your gross farm income. Do i file 2008 tax return More than $6,960 $4,640 Optional method can reduce or eliminate SE tax. Do i file 2008 tax return   If your gross farm income is $6,960 or less and your farm net earnings figured under the farm optional method are less than your actual net earnings, you can use the farm optional method to reduce or eliminate your SE tax. Do i file 2008 tax return Your actual net earnings are your net earnings figured using the regular method, explained earlier. Do i file 2008 tax return Example. Do i file 2008 tax return Your gross farm income is $540 and your net farm profit is $460. Do i file 2008 tax return Consequently, your net earnings figured under the farm optional method are $360 (2/3 of $540) and your actual net earnings are $425 (92. Do i file 2008 tax return 35% of $460). Do i file 2008 tax return You owe no SE tax if you use the optional method because your net earnings under the farm optional method are less than $400. Do i file 2008 tax return Nonfarm Optional Method This is an optional method available for determining net earnings from nonfarm self-employment, much like the farm optional method. Do i file 2008 tax return If you are also engaged in a nonfarm business, you may be able to use this method to figure your nonfarm net earnings. Do i file 2008 tax return You can use this method even if you do not use the farm optional method for determining your farm net earnings and even if you have a net loss from your nonfarm business. Do i file 2008 tax return For more information about the nonfarm optional method, see Publication 334. Do i file 2008 tax return You cannot combine farm and nonfarm self-employment earnings to figure your net earnings under either of the optional methods. Do i file 2008 tax return Using Both Optional Methods If you use both optional methods, you must add the net earnings figured under each method to arrive at your total net earnings from self-employment. Do i file 2008 tax return You can report less than your total actual farm and nonfarm net earnings but not less than actual nonfarm net earnings. Do i file 2008 tax return If you use both optional methods, you can report no more than $4,640 as your combined net earnings from self-employment. Do i file 2008 tax return Reporting Self-Employment Tax Use Schedule SE (Form 1040) to figure and report your SE tax. Do i file 2008 tax return Then, enter the SE tax on line 56 of Form 1040 and attach Schedule SE to Form 1040. Do i file 2008 tax return Most taxpayers can use Section A–Short Schedule SE to figure their SE tax. Do i file 2008 tax return However, certain taxpayers must use Section B–Long Schedule SE. Do i file 2008 tax return Use the chart on page 1 of Schedule SE to find out which one to use. Do i file 2008 tax return If you have to pay SE tax, you must file Form 1040 (with Schedule SE attached) even if you do not otherwise have to file a federal income tax return. Do i file 2008 tax return Deduction for employer-equivalent portion of self-employment tax. Do i file 2008 tax return   You can deduct the employer-equivalent portion of your SE tax in figuring your adjusted gross income. Do i file 2008 tax return This deduction only affects your income tax. Do i file 2008 tax return It does not affect either your net earnings from self-employment or your SE tax. Do i file 2008 tax return   To deduct the tax, enter on Form 1040, line 27, the amount shown on Section A, Line 6, or Section B, line 13, Deduction for employer-equivalent portion of self-employment tax, of the Schedule SE. Do i file 2008 tax return Joint return. Do i file 2008 tax return   Even if you file a joint return, you cannot file a joint Schedule SE. Do i file 2008 tax return This is true whether one spouse or both spouses have self-employment earnings. Do i file 2008 tax return Your spouse is not considered self-employed just because you are. Do i file 2008 tax return If both of you have self-employment earnings, each of you must complete a separate Schedule SE. Do i file 2008 tax return However, if one spouse uses the Short Schedule SE and the other spouse has to use the Long Schedule SE, both can use the same form. Do i file 2008 tax return Attach both schedules to the joint return. Do i file 2008 tax return If you and your spouse operate a business as a partnership, see Business Owned and Operated by Spouses and Qualified joint venture , earlier, under Who Must Pay Self-Employment Tax . Do i file 2008 tax return Prev  Up  Next   Home   More Online Publications