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Download 2010 Tax Forms

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Download 2010 Tax Forms

Download 2010 tax forms 5. Download 2010 tax forms   Business Income Table of Contents Introduction Kinds of IncomeBartering for Property or Services Real Estate Rents Personal Property Rents Interest and Dividend Income Canceled Debt Other Income Items That Are Not IncomeAmount you can exclude. Download 2010 tax forms Short-term lease. Download 2010 tax forms Retail space. Download 2010 tax forms Qualified long-term real property. Download 2010 tax forms Guidelines for Selected Occupations Accounting for Your Income Introduction This chapter primarily explains business income and how to account for it on your tax return, what items are not considered income, and gives guidelines for selected occupations. Download 2010 tax forms If there is a connection between any income you receive and your business, the income is business income. Download 2010 tax forms A connection exists if it is clear that the payment of income would not have been made if you did not have the business. Download 2010 tax forms You can have business income even if you are not involved in the activity on a regular full-time basis. Download 2010 tax forms Income from work you do on the side in addition to your regular job can be business income. Download 2010 tax forms You report most business income, such as income from selling your products or services, on Schedule C or C-EZ. Download 2010 tax forms But you report the income from the sale of business assets, such as land and office buildings, on other forms instead of Schedule C or C-EZ. Download 2010 tax forms For information on selling business assets, see chapter 3. Download 2010 tax forms Nonemployee compensation. Download 2010 tax forms Business income includes amounts you received in your business that were properly shown on Forms 1099-MISC. Download 2010 tax forms This includes amounts reported as nonemployee compensation in box 7 of the form. Download 2010 tax forms You can find more information in the instructions on the back of the Form 1099-MISC you received. Download 2010 tax forms Kinds of Income You must report on your tax return all income you receive from your business unless it is excluded by law. Download 2010 tax forms In most cases, your business income will be in the form of cash, checks, and credit card charges. Download 2010 tax forms But business income can be in other forms, such as property or services. Download 2010 tax forms These and other types of income are explained next. Download 2010 tax forms If you are a U. Download 2010 tax forms S. Download 2010 tax forms citizen who has business income from sources outside the United States (foreign income), you must report that income on your tax return unless it is exempt from tax under U. Download 2010 tax forms S. Download 2010 tax forms law. Download 2010 tax forms If you live outside the United States, you may be able to exclude part or all of your foreign-source business income. Download 2010 tax forms For details, see Publication 54, Tax Guide for U. Download 2010 tax forms S. Download 2010 tax forms Citizens and Resident Aliens Abroad. Download 2010 tax forms Bartering for Property or Services Bartering is an exchange of property or services. Download 2010 tax forms You must include in your gross receipts, at the time received, the fair market value of property or services you receive in exchange for something else. Download 2010 tax forms If you exchange services with another person and you both have agreed ahead of time on the value of the services, that value will be accepted as the fair market value unless the value can be shown to be otherwise. Download 2010 tax forms Example 1. Download 2010 tax forms You are a self-employed lawyer. Download 2010 tax forms You perform legal services for a client, a small corporation. Download 2010 tax forms In payment for your services, you receive shares of stock in the corporation. Download 2010 tax forms You must include the fair market value of the shares in income. Download 2010 tax forms Example 2. Download 2010 tax forms You are an artist and create a work of art to compensate your landlord for the rent-free use of your apartment. Download 2010 tax forms You must include the fair rental value of the apartment in your gross receipts. Download 2010 tax forms Your landlord must include the fair market value of the work of art in his or her rental income. Download 2010 tax forms Example 3. Download 2010 tax forms You are a self-employed accountant. Download 2010 tax forms Both you and a house painter are members of a barter club, an organization that each year gives its members a directory of members and the services each member provides. Download 2010 tax forms Members get in touch with other members directly and bargain for the value of the services to be performed. Download 2010 tax forms In return for accounting services you provided for the house painter's business, the house painter painted your home. Download 2010 tax forms You must include in gross receipts the fair market value of the services you received from the house painter. Download 2010 tax forms The house painter must include the fair market value of your accounting services in his or her gross receipts. Download 2010 tax forms Example 4. Download 2010 tax forms You are a member of a barter club that uses credit units to credit or debit members' accounts for goods or services provided or received. Download 2010 tax forms As soon as units are credited to your account, you can use them to buy goods or services or sell or transfer the units to other members. Download 2010 tax forms You must include the value of credit units you received in your gross receipts for the tax year in which the units are credited to your account. Download 2010 tax forms The dollar value of units received for services by an employee of the club, who can use the units in the same manner as other members, must be included in the employee's gross income for the tax year in which received. Download 2010 tax forms It is wages subject to social security and Medicare taxes (FICA), federal unemployment taxes (FUTA), and income tax withholding. Download 2010 tax forms See Publication 15 (Circular E), Employer's Tax Guide. Download 2010 tax forms Example 5. Download 2010 tax forms You operate a plumbing business and use the cash method of accounting. Download 2010 tax forms You join a barter club and agree to provide plumbing services to any member for a specified number of hours. Download 2010 tax forms Each member has access to a directory that lists the members of the club and the services available. Download 2010 tax forms Members contact each other directly and request services to be performed. Download 2010 tax forms You are not required to provide services unless requested by another member, but you can use as many of the offered services as you wish without paying a fee. Download 2010 tax forms You must include the fair market value of any services you receive from club members in your gross receipts when you receive them even if you have not provided any services to club members. Download 2010 tax forms Information returns. Download 2010 tax forms   If you are involved in a bartering transaction, you may have to file either of the following forms. Download 2010 tax forms Form 1099-B, Proceeds From Broker and Barter Exchange Transactions. Download 2010 tax forms Form 1099-MISC, Miscellaneous Income. Download 2010 tax forms For information about these forms, see the General Instructions for Certain Information Returns. Download 2010 tax forms Real Estate Rents If you are a real estate dealer who receives income from renting real property or an owner of a hotel, motel, etc. Download 2010 tax forms , who provides services (maid services, etc. Download 2010 tax forms ) for guests, report the rental income and expenses on Schedule C or C-EZ. Download 2010 tax forms If you are not a real estate dealer or the kind of owner described in the preceding sentence, report the rental income and expenses on Schedule E. Download 2010 tax forms For more information, see Publication 527, Residential Rental Property (Including Rental of Vacation Homes). Download 2010 tax forms Real estate dealer. Download 2010 tax forms   You are a real estate dealer if you are engaged in the business of selling real estate to customers with the purpose of making a profit from those sales. Download 2010 tax forms Rent you receive from real estate held for sale to customers is subject to SE tax. Download 2010 tax forms However, rent you receive from real estate held for speculation or investment is not subject to SE tax. Download 2010 tax forms Trailer park owner. Download 2010 tax forms   Rental income from a trailer park is subject to SE tax if you are a self-employed trailer park owner who provides trailer lots and facilities and substantial services for the convenience of your tenants. Download 2010 tax forms    You generally are considered to provide substantial services for tenants if they are primarily for the tenants' convenience and normally are not provided to maintain the lots in a condition for occupancy. Download 2010 tax forms Services are substantial if the compensation for the services makes up a material part of the tenants' rental payments. Download 2010 tax forms   Examples of services that are not normally provided for the tenants' convenience include supervising and maintaining a recreational hall provided by the park, distributing a monthly newsletter to tenants, operating a laundry facility, and helping tenants buy or sell their trailers. Download 2010 tax forms   Examples of services that are normally provided to maintain the lots in a condition for tenant occupancy include city sewerage, electrical connections, and roadways. Download 2010 tax forms Hotels, boarding houses, and apartments. Download 2010 tax forms   Rental income you receive for the use or occupancy of hotels, boarding houses, or apartment houses is subject to SE tax if you provide services for the occupants. Download 2010 tax forms   Generally, you are considered to provide services for the occupants if the services are primarily for their convenience and are not services normally provided with the rental of rooms for occupancy only. Download 2010 tax forms An example of a service that is not normally provided for the convenience of the occupants is maid service. Download 2010 tax forms However, providing heat and light, cleaning stairways and lobbies, and collecting trash are services normally provided for the occupants' convenience. Download 2010 tax forms Prepaid rent. Download 2010 tax forms   Advance payments received under a lease that does not put any restriction on their use or enjoyment are income in the year you receive them. Download 2010 tax forms This is true no matter what accounting method or period you use. Download 2010 tax forms Lease bonus. Download 2010 tax forms   A bonus you receive from a lessee for granting a lease is an addition to the rent. Download 2010 tax forms Include it in your gross receipts in the year received. Download 2010 tax forms Lease cancellation payments. Download 2010 tax forms   Report payments you receive from your lessee for canceling a lease in your gross receipts in the year received. Download 2010 tax forms Payments to third parties. Download 2010 tax forms   If your lessee makes payments to someone else under an agreement to pay your debts or obligations, include the payments in your gross receipts when the lessee makes the payments. Download 2010 tax forms A common example of this kind of income is a lessee's payment of your property taxes on leased real property. Download 2010 tax forms Settlement payments. Download 2010 tax forms   Payments you receive in settlement of a lessee's obligation to restore the leased property to its original condition are income in the amount that the payments exceed the adjusted basis of the leasehold improvements destroyed, damaged, removed, or disconnected by the lessee. Download 2010 tax forms Personal Property Rents If you are in the business of renting personal property (equipment, vehicles, formal wear, etc. Download 2010 tax forms ), include the rental amount you receive in your gross receipts on Schedule C or C-EZ. Download 2010 tax forms Prepaid rent and other payments described in the preceding Real Estate Rents discussion can also be received for renting personal property. Download 2010 tax forms If you receive any of those payments, include them in your gross receipts as explained in that discussion. Download 2010 tax forms Interest and Dividend Income Interest and dividends may be considered business income. Download 2010 tax forms Interest. Download 2010 tax forms   Interest received on notes receivable that you have accepted in the ordinary course of business is business income. Download 2010 tax forms Interest received on loans is business income if you are in the business of lending money. Download 2010 tax forms Uncollectible loans. Download 2010 tax forms   If a loan payable to you becomes uncollectible during the tax year and you use an accrual method of accounting, you must include in gross income interest accrued up to the time the loan became uncollectible. Download 2010 tax forms If the accrued interest later becomes uncollectible, you may be able to take a bad debt deduction. Download 2010 tax forms See Bad Debts in chapter 8. Download 2010 tax forms Unstated interest. Download 2010 tax forms   If little or no interest is charged on an installment sale, you may have to treat a part of each payment as unstated interest. Download 2010 tax forms See Unstated Interest and Original Issue Discount (OID) in Publication 537, Installment Sales. Download 2010 tax forms Dividends. Download 2010 tax forms   Generally, dividends are business income to dealers in securities. Download 2010 tax forms For most sole proprietors and statutory employees, however, dividends are nonbusiness income. Download 2010 tax forms If you hold stock as a personal investment separately from your business activity, the dividends from the stock are nonbusiness income. Download 2010 tax forms   If you receive dividends from business insurance premiums you deducted in an earlier year, you must report all or part of the dividend as business income on your return. Download 2010 tax forms To find out how much you have to report, see   Recovery of items previously deducted under Other Income, later. Download 2010 tax forms Canceled Debt The following explains the general rule for including canceled debt in income and the exceptions to the general rule. Download 2010 tax forms General Rule Generally, if your debt is canceled or forgiven, other than as a gift or bequest to you, you must include the canceled amount in your gross income for tax purposes. Download 2010 tax forms Report the canceled amount on line 6 of Schedule C if you incurred the debt in your business. Download 2010 tax forms If the debt is a nonbusiness debt, report the canceled amount on line 21 of Form 1040. Download 2010 tax forms Exceptions The following discussion covers some exceptions to the general rule for canceled debt. Download 2010 tax forms Price reduced after purchase. Download 2010 tax forms   If you owe a debt to the seller for property you bought and the seller reduces the amount you owe, you generally do not have income from the reduction. Download 2010 tax forms Unless you are bankrupt or insolvent, treat the amount of the reduction as a purchase price adjustment and reduce your basis in the property. Download 2010 tax forms Deductible debt. Download 2010 tax forms   You do not realize income from a canceled debt to the extent the payment of the debt would have led to a deduction. Download 2010 tax forms Example. Download 2010 tax forms You get accounting services for your business on credit. Download 2010 tax forms Later, you have trouble paying your business debts, but you are not bankrupt or insolvent. Download 2010 tax forms Your accountant forgives part of the amount you owe for the accounting services. Download 2010 tax forms How you treat the canceled debt depends on your method of accounting. Download 2010 tax forms Cash method — You do not include the canceled debt in income because payment of the debt would have been deductible as a business expense. Download 2010 tax forms Accrual method — You include the canceled debt in income because the expense was deductible when you incurred the debt. Download 2010 tax forms   For information on the cash and accrual methods of accounting, see chapter 2. Download 2010 tax forms Exclusions Do not include canceled debt in income in the following situations. Download 2010 tax forms However, you may be required to file Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness. Download 2010 tax forms For more information, see Form 982. Download 2010 tax forms The cancellation takes place in a bankruptcy case under title 11 of the U. Download 2010 tax forms S. Download 2010 tax forms Code (relating to bankruptcy). Download 2010 tax forms See Publication 908, Bankruptcy Tax Guide. Download 2010 tax forms The cancellation takes place when you are insolvent. Download 2010 tax forms You can exclude the canceled debt to the extent you are insolvent. Download 2010 tax forms See Publication 908. Download 2010 tax forms The canceled debt is a qualified farm debt owed to a qualified person. Download 2010 tax forms See chapter 3 in Publication 225, Farmer's Tax Guide. Download 2010 tax forms The canceled debt is a qualified real property business debt. Download 2010 tax forms This situation is explained later. Download 2010 tax forms The canceled debt is qualified principal residence indebtedness which is discharged after 2006. Download 2010 tax forms See Form 982. Download 2010 tax forms If a canceled debt is excluded from income because it takes place in a bankruptcy case, the exclusions in situations 2 through 5 do not apply. Download 2010 tax forms If it takes place when you are insolvent, the exclusions in situations 3 and 4 do not apply to the extent you are insolvent. Download 2010 tax forms Debt. Download 2010 tax forms   For purposes of this discussion, debt includes any debt for which you are liable or which attaches to property you hold. Download 2010 tax forms Qualified real property business debt. Download 2010 tax forms   You can elect to exclude (up to certain limits) the cancellation of qualified real property business debt. Download 2010 tax forms If you make the election, you must reduce the basis of your depreciable real property by the amount excluded. Download 2010 tax forms Make this reduction at the beginning of your tax year following the tax year in which the cancellation occurs. Download 2010 tax forms However, if you dispose of the property before that time, you must reduce its basis immediately before the disposition. Download 2010 tax forms Cancellation of qualified real property business debt. Download 2010 tax forms   Qualified real property business debt is debt (other than qualified farm debt) that meets all the following conditions. Download 2010 tax forms It was incurred or assumed in connection with real property used in a trade or business. Download 2010 tax forms It was secured by such real property. Download 2010 tax forms It was incurred or assumed at either of the following times. Download 2010 tax forms Before January 1, 1993. Download 2010 tax forms After December 31, 1992, if incurred or assumed to acquire, construct, or substantially improve the real property. Download 2010 tax forms It is debt to which you choose to apply these rules. Download 2010 tax forms   Qualified real property business debt includes refinancing of debt described in (3) earlier, but only to the extent it does not exceed the debt being refinanced. Download 2010 tax forms   You cannot exclude more than either of the following amounts. Download 2010 tax forms The excess (if any) of: The outstanding principal of qualified real property business debt (immediately before the cancellation), over The fair market value (immediately before the cancellation) of the business real property that is security for the debt, reduced by the outstanding principal amount of any other qualified real property business debt secured by this property immediately before the cancellation. Download 2010 tax forms The total adjusted bases of depreciable real property held by you immediately before the cancellation. Download 2010 tax forms These adjusted bases are determined after any basis reduction due to a cancellation in bankruptcy, insolvency, or of qualified farm debt. Download 2010 tax forms Do not take into account depreciable real property acquired in contemplation of the cancellation. Download 2010 tax forms Election. Download 2010 tax forms   To make this election, complete Form 982 and attach it to your income tax return for the tax year in which the cancellation occurs. Download 2010 tax forms You must file your return by the due date (including extensions). Download 2010 tax forms If you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of the return (excluding extensions). Download 2010 tax forms For more information, see When To File in the form instructions. Download 2010 tax forms Other Income The following discussion explains how to treat other types of business income you may receive. Download 2010 tax forms Restricted property. Download 2010 tax forms   Restricted property is property that has certain restrictions that affect its value. Download 2010 tax forms If you receive restricted stock or other property for services performed, the fair market value of the property in excess of your cost is included in your income on Schedule C or C-EZ when the restriction is lifted. Download 2010 tax forms However, you can choose to be taxed in the year you receive the property. Download 2010 tax forms For more information on including restricted property in income, see Publication 525, Taxable and Nontaxable Income. Download 2010 tax forms Gains and losses. Download 2010 tax forms   Do not report on Schedule C or C-EZ a gain or loss from the disposition of property that is neither stock in trade nor held primarily for sale to customers. Download 2010 tax forms Instead, you must report these gains and losses on other forms. Download 2010 tax forms For more information, see chapter 3. Download 2010 tax forms Promissory notes. Download 2010 tax forms   Report promissory notes and other evidences of debt issued to you in a sale or exchange of property that is stock in trade or held primarily for sale to customers on Schedule C or C-EZ. Download 2010 tax forms In general, you report them at their stated principal amount (minus any unstated interest) when you receive them. Download 2010 tax forms Lost income payments. Download 2010 tax forms   If you reduce or stop your business activities, report on Schedule C or C-EZ any payment you receive for the lost income of your business from insurance or other sources. Download 2010 tax forms Report it on Schedule C or C-EZ even if your business is inactive when you receive the payment. Download 2010 tax forms Damages. Download 2010 tax forms   You must include in gross income compensation you receive during the tax year as a result of any of the following injuries connected with your business. Download 2010 tax forms Patent infringement. Download 2010 tax forms Breach of contract or fiduciary duty. Download 2010 tax forms Antitrust injury. Download 2010 tax forms Economic injury. Download 2010 tax forms   You may be entitled to a deduction against the income if it compensates you for actual economic injury. Download 2010 tax forms Your deduction is the smaller of the following amounts. Download 2010 tax forms The amount you receive or accrue for damages in the tax year reduced by the amount you pay or incur in the tax year to recover that amount. Download 2010 tax forms Your loss from the injury that you have not yet deducted. Download 2010 tax forms Punitive damages. Download 2010 tax forms   You must also include punitive damages in income. Download 2010 tax forms Kickbacks. Download 2010 tax forms   If you receive any kickbacks, include them in your income on Schedule C or C-EZ. Download 2010 tax forms However, do not include them if you properly treat them as a reduction of a related expense item, a capital expenditure, or cost of goods sold. Download 2010 tax forms Recovery of items previously deducted. Download 2010 tax forms   If you recover a bad debt or any other item deducted in a previous year, include the recovery in income on Schedule C or C-EZ. Download 2010 tax forms However, if all or part of the deduction in earlier years did not reduce your tax, you can exclude the part that did not reduce your tax. Download 2010 tax forms If you exclude part of the recovery from income, you must include with your return a computation showing how you figured the exclusion. Download 2010 tax forms Example. Download 2010 tax forms Joe Smith, a sole proprietor, had gross income of $8,000, a bad debt deduction of $300, and other allowable deductions of $7,700. Download 2010 tax forms He also had 2 personal exemptions for a total of $7,800. Download 2010 tax forms He would not pay income tax even if he did not deduct the bad debt. Download 2010 tax forms Therefore, he will not report as income any part of the $300 he may recover in any future year. Download 2010 tax forms Exception for depreciation. Download 2010 tax forms   This rule does not apply to depreciation. Download 2010 tax forms You recover depreciation using the rules explained next. Download 2010 tax forms Recapture of depreciation. Download 2010 tax forms   In the following situations, you have to recapture the depreciation deduction. Download 2010 tax forms This means you include in income part or all of the depreciation you deducted in previous years. Download 2010 tax forms Listed property. Download 2010 tax forms   If your business use of listed property (explained in chapter 8 under Depreciation ) falls to 50% or less in a tax year after the tax year you placed the property in service, you may have to recapture part of the depreciation deduction. Download 2010 tax forms You do this by including in income on Schedule C part of the depreciation you deducted in previous years. Download 2010 tax forms Use Part IV of Form 4797, Sales of Business Property, to figure the amount to include on Schedule C. Download 2010 tax forms For more information, see What is the Business-Use Requirement? in chapter 5 of Publication 946, How To Depreciate Property. Download 2010 tax forms That chapter explains how to determine whether property is used more than 50% in your business. Download 2010 tax forms Section 179 property. Download 2010 tax forms   If you take a section 179 deduction (explained in chapter 8 under Depreciation ) for an asset and before the end of the asset's recovery period the percentage of business use drops to 50% or less, you must recapture part of the section 179 deduction. Download 2010 tax forms You do this by including in income on Schedule C part of the deduction you took. Download 2010 tax forms Use Part IV of Form 4797 to figure the amount to include on Schedule C. Download 2010 tax forms See chapter 2 in Publication 946 to find out when you recapture the deduction. Download 2010 tax forms Sale or exchange of depreciable property. Download 2010 tax forms   If you sell or exchange depreciable property at a gain, you may have to treat all or part of the gain due to depreciation as ordinary income. Download 2010 tax forms You figure the income due to depreciation recapture in Part III of Form 4797. Download 2010 tax forms For more information, see chapter 4 in Publication 544, Sales and Other Dispositions of Assets. Download 2010 tax forms Items That Are Not Income In some cases the property or money you receive is not income. Download 2010 tax forms Appreciation. Download 2010 tax forms   Increases in value of your property are not income until you realize the increases through a sale or other taxable disposition. Download 2010 tax forms Consignments. Download 2010 tax forms   Consignments of merchandise to others to sell for you are not sales. Download 2010 tax forms The title of merchandise remains with you, the consignor, even after the consignee possesses the merchandise. Download 2010 tax forms Therefore, if you ship goods on consignment, you have no profit or loss until the consignee sells the merchandise. Download 2010 tax forms Merchandise you have shipped out on consignment is included in your inventory until it is sold. Download 2010 tax forms   Do not include merchandise you receive on consignment in your inventory. Download 2010 tax forms Include your profit or commission on merchandise consigned to you in your income when you sell the merchandise or when you receive your profit or commission, depending upon the method of accounting you use. Download 2010 tax forms Construction allowances. Download 2010 tax forms   If you enter into a lease after August 5, 1997, you can exclude from income the construction allowance you receive (in cash or as a rent reduction) from your landlord if you receive it under both the following conditions. Download 2010 tax forms Under a short-term lease of retail space. Download 2010 tax forms For the purpose of constructing or improving qualified long-term real property for use in your business at that retail space. Download 2010 tax forms Amount you can exclude. Download 2010 tax forms   You can exclude the construction allowance to the extent it does not exceed the amount you spent for construction or improvements. Download 2010 tax forms Short-term lease. Download 2010 tax forms   A short-term lease is a lease (or other agreement for occupancy or use) of retail space for 15 years or less. Download 2010 tax forms The following rules apply in determining whether the lease is for 15 years or less. Download 2010 tax forms Take into account options to renew when figuring whether the lease is for 15 years or less. Download 2010 tax forms But do not take into account any option to renew at fair market value determined at the time of renewal. Download 2010 tax forms Two or more successive leases that are part of the same transaction (or a series of related transactions) for the same or substantially similar retail space are treated as one lease. Download 2010 tax forms Retail space. Download 2010 tax forms   Retail space is real property leased, occupied, or otherwise used by you as a tenant in your business of selling tangible personal property or services to the general public. Download 2010 tax forms Qualified long-term real property. Download 2010 tax forms   Qualified long-term real property is nonresidential real property that is part of, or otherwise present at, your retail space and that reverts to the landlord when the lease ends. Download 2010 tax forms Exchange of like-kind property. Download 2010 tax forms   If you exchange your business property or property you hold for investment solely for property of a like kind to be used in your business or to be held for investment, no gain or loss is recognized. Download 2010 tax forms This means that the gain is not taxable and the loss is not deductible. Download 2010 tax forms A common type of nontaxable exchange is the trade-in of a business automobile for another business automobile. Download 2010 tax forms For more information, see Form 8824. Download 2010 tax forms Leasehold improvements. Download 2010 tax forms   If a tenant erects buildings or makes improvements to your property, the increase in the value of the property due to the improvements is not income to you. Download 2010 tax forms However, if the facts indicate that the improvements are a payment of rent to you, then the increase in value would be income. Download 2010 tax forms Loans. Download 2010 tax forms   Money borrowed through a bona fide loan is not income. Download 2010 tax forms Sales tax. Download 2010 tax forms   State and local sales taxes imposed on the buyer, which you were required to collect and pay over to state or local governments, are not income. Download 2010 tax forms Guidelines for Selected Occupations This section provides information to determine whether your earnings should be reported on Schedule C (Form 1040) or C-EZ (Form 1040). Download 2010 tax forms Direct seller. Download 2010 tax forms   You must report all income you receive as a direct seller on Schedule C or C-EZ. Download 2010 tax forms This includes any of the following. Download 2010 tax forms Income from sales—payments you receive from customers for products they buy from you. Download 2010 tax forms Commissions, bonuses, or percentages you receive for sales and the sales of others who work under you. Download 2010 tax forms Prizes, awards, and gifts you receive from your selling business. Download 2010 tax forms You must report this income regardless of whether it is reported to you on an information return. Download 2010 tax forms   You are a direct seller if you meet all the following conditions. Download 2010 tax forms You are engaged in one of the following trades or businesses. Download 2010 tax forms Selling or soliciting the sale of consumer products either in a home or other place that is not a permanent retail establishment, or to any buyer on a buy-sell basis or a deposit-commission basis for resale in a home or other place of business that is not a permanent retail establishment. Download 2010 tax forms Delivering or distributing newspapers or shopping news (including any services directly related to that trade or business). Download 2010 tax forms Substantially all your pay (whether paid in cash or not) for services described above is directly related to sales or other output (including performance of services) rather than to the number of hours worked. Download 2010 tax forms Your services are performed under a written contract between you and the person for whom you perform the services, and the contract provides that you will not be treated as an employee for federal tax purposes. Download 2010 tax forms Executor or administrator. Download 2010 tax forms   If you administer a deceased person's estate, your fees are reported on Schedule C or C-EZ if you are one of the following: A professional fiduciary. Download 2010 tax forms A nonprofessional fiduciary (personal representative) and both of the following apply. Download 2010 tax forms The estate includes an active trade or business in which you actively participate. Download 2010 tax forms Your fees are related to the operation of that trade or business. Download 2010 tax forms A nonprofessional fiduciary of a single estate that requires extensive managerial activities on your part for a long period of time, provided these activities are enough to be considered a trade or business. Download 2010 tax forms    If the fees do not meet the above requirements, report them on line 21 of Form 1040. Download 2010 tax forms Fishing crew member. Download 2010 tax forms    If you are a member of the crew that catches fish or other water life, your earnings are reported on Schedule C or C-EZ if you meet all the requirements shown in chapter 10 under Fishing crew member . Download 2010 tax forms Insurance agent, former. Download 2010 tax forms   Termination payments you receive as a former self-employed insurance agent from an insurance company because of services you performed for that company are not reported on Schedule C or C-EZ if all the following conditions are met. Download 2010 tax forms You received payments after your agreement to perform services for the company ended. Download 2010 tax forms You did not perform any services for the company after your service agreement ended and before the end of the year in which you received the payment. Download 2010 tax forms You entered into a covenant not to compete against the company for at least a 1-year period beginning on the date your service agreement ended. Download 2010 tax forms The amount of the payments depended primarily on policies sold by you or credited to your account during the last year of your service agreement or the extent to which those policies remain in force for some period after your service agreement ended, or both. Download 2010 tax forms The amount of the payment did not depend to any extent on length of service or overall earnings from services performed for the company (regardless of whether eligibility for the payments depended on length of service). Download 2010 tax forms Insurance agent, retired. Download 2010 tax forms   Income paid by an insurance company to a retired self-employed insurance agent based on a percentage of commissions received before retirement is reported on Schedule C or C-EZ. Download 2010 tax forms Also, renewal commissions and deferred commissions for sales made before retirement are generally reported on Schedule C or C-EZ. Download 2010 tax forms   However, renewal commissions paid to the survivor of an insurance agent are not reported on Schedule C or C-EZ. Download 2010 tax forms Newspaper carrier or distributor. Download 2010 tax forms   You are a direct seller and your earnings are reported on Schedule C or C-EZ if all the following conditions apply. Download 2010 tax forms You are in the business of delivering or distributing newspapers or shopping news (including directly related services such as soliciting customers and collecting receipts). Download 2010 tax forms Substantially all your pay for these services directly relates to your sales or other output rather than to the number of hours you work. Download 2010 tax forms You perform the services under a written contract that says you will not be treated as an employee for federal tax purposes. Download 2010 tax forms   This rule applies whether or not you hire others to help you make deliveries. Download 2010 tax forms It also applies whether you buy the papers from the publisher or are paid based on the number of papers you deliver. Download 2010 tax forms Newspaper or magazine vendor. Download 2010 tax forms   If you are 18 or older and you sell newspapers or magazines, your earnings are reported on Schedule C or C-EZ if all the following conditions apply. Download 2010 tax forms You sell newspapers or magazines to ultimate consumers. Download 2010 tax forms You sell them at a fixed price. Download 2010 tax forms Your earnings are based on the difference between the sales price and your cost of goods sold. Download 2010 tax forms   This rule applies whether or not you are guaranteed a minimum amount of earnings. Download 2010 tax forms It also applies whether or not you receive credit for unsold newspapers or magazines you return to your supplier. Download 2010 tax forms Notary public. Download 2010 tax forms   Fees you receive for services you perform as a notary public are reported on Schedule C or C-EZ. Download 2010 tax forms These payments are not subject to self-employment tax (see the instructions for Schedule SE (Form 1040)). Download 2010 tax forms Public official. Download 2010 tax forms   Public officials generally do not report what they earn for serving in public office on Schedule C or C-EZ. Download 2010 tax forms This rule applies to payments received by an elected tax collector from state funds on the basis of a fixed percentage of the taxes collected. Download 2010 tax forms Public office includes any elective or appointive office of the United States or its possessions, the District of Columbia, a state or its political subdivisions, or a wholly owned instrumentality of any of these. Download 2010 tax forms   Public officials of state or local governments report their fees on Schedule C or C-EZ if they are paid solely on a fee basis and if their services are eligible for, but not covered by, social security under a federal-state agreement. Download 2010 tax forms Real estate agent or direct seller. Download 2010 tax forms   If you are a licensed real estate agent or a direct seller, your earnings are reported on Schedule C or C-EZ if both the following apply. Download 2010 tax forms Substantially all your pay for services as a real estate agent or direct seller directly relates to your sales or other output rather than to the number of hours you work. Download 2010 tax forms You perform the services under a written contract that says you will not be treated as an employee for federal tax purposes. Download 2010 tax forms Securities dealer. Download 2010 tax forms   If you are a dealer in options or commodities, your gains and losses from dealing or trading in section 1256 contracts (regulated futures contracts, foreign currency contracts, nonequity options, dealer equity options, and dealer securities futures contracts) or property related to those contracts (such as stock used to hedge options) are reported on Schedule C or C-EZ. Download 2010 tax forms For more information, see sections 1256 and 1402(i). Download 2010 tax forms Securities trader. Download 2010 tax forms   You are a trader in securities if you are engaged in the business of buying and selling securities for your own account. Download 2010 tax forms As a trader in securities, your gain or loss from the disposition of securities is not reported on Schedule C or C-EZ. Download 2010 tax forms However, see Securities dealer , earlier, for an exception that applies to section 1256 contracts. Download 2010 tax forms For more information about securities traders, see Publication 550, Investment Income and Expenses. Download 2010 tax forms Accounting for Your Income Accounting for your income for income tax purposes differs at times from accounting for financial purposes. Download 2010 tax forms This section discusses some of the more common differences that may affect business transactions. Download 2010 tax forms Figure your business income on the basis of a tax year and according to your regular method of accounting (see chapter 2). Download 2010 tax forms If the sale of a product is an income-producing factor in your business, you usually have to use inventories to clearly show your income. Download 2010 tax forms Dealers in real estate are not allowed to use inventories. Download 2010 tax forms For more information on inventories, see chapter 2. Download 2010 tax forms Income paid to a third party. Download 2010 tax forms   All income you earn is taxable to you. Download 2010 tax forms You cannot avoid tax by having the income paid to a third party. Download 2010 tax forms Example. Download 2010 tax forms You rent out your property and the rental agreement directs the lessee to pay the rent to your son. Download 2010 tax forms The amount paid to your son is gross income to you. Download 2010 tax forms Cash discounts. Download 2010 tax forms   These are amounts the seller permits you to deduct from the invoice price for prompt payment. Download 2010 tax forms For income tax purposes, you can use either of the following two methods to account for cash discounts. Download 2010 tax forms Deduct the cash discount from purchases (see Line 36, Purchases Less Cost of Items Withdrawn for Personal Use in chapter 6). Download 2010 tax forms Credit the cash discount to a discount income account. Download 2010 tax forms You must use the chosen method every year for all your purchase discounts. Download 2010 tax forms   If you use the second method, the credit balance in the account at the end of your tax year is business income. Download 2010 tax forms Under this method, you do not reduce the cost of goods sold by the cash discounts you received. Download 2010 tax forms When valuing your closing inventory, you cannot reduce the invoice price of merchandise on hand at the close of the tax year by the average or estimated discounts received on the merchandise. Download 2010 tax forms Trade discounts. Download 2010 tax forms   These are reductions from list or catalog prices and usually are not written into the invoice or charged to the customer. Download 2010 tax forms Do not enter these discounts on your books of account. Download 2010 tax forms Instead, use only the net amount as the cost of the merchandise purchased. Download 2010 tax forms For more information, see Trade discounts in chapter 6. Download 2010 tax forms Payment placed in escrow. Download 2010 tax forms   If the buyer of your property places part or all of the purchase price in escrow, you do not include any part of it in gross sales until you actually or constructively receive it. Download 2010 tax forms However, upon completion of the terms of the contract and the escrow agreement, you will have taxable income, even if you do not accept the money until the next year. Download 2010 tax forms Sales returns and allowances. Download 2010 tax forms   Credits you allow customers for returned merchandise and any other allowances you make on sales are deductions from gross sales in figuring net sales. Download 2010 tax forms Advance payments. Download 2010 tax forms   Special rules dealing with an accrual method of accounting for payments received in advance are discussed in chapter 2 under Accrual Method. Download 2010 tax forms Insurance proceeds. Download 2010 tax forms   If you receive insurance or another type of reimbursement for a casualty or theft loss, you must subtract it from the loss when you figure your deduction. Download 2010 tax forms You cannot deduct the reimbursed part of a casualty or theft loss. Download 2010 tax forms   For information on casualty or theft losses, see Publication 547, Casualties, Disasters, and Thefts. Download 2010 tax forms Prev  Up  Next   Home   More Online Publications
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Understanding Your CP255 Notice

We need information to complete the termination of your private foundation status.


What you need to do

  • Complete Form 8940, Request for Miscellaneous Determination Under Section 507, 509(a), 4940, 4942, 4945, and 6033 of the Internal Revenue Code.
  • Return the completed form to us by the date indicated in your notice.

You may want to

Review the termination procedures for Private Foundations in Publication 4779, Facts about Terminating or Merging Your Exempt Organization.


Answers to Common Questions

Which organizations must file a Form 990-PF?
Form 990-PF must be filed by:

  • Exempt private foundations (section 6033(a), (b), and (c))
  • Taxable private foundations (section 6033(d))
  • Organizations that agree to private foundation status and their applications for exempt status are pending on the due date for filing
  • Organizations that made an election under section 41(e)(6)
  • Foundations that are making a section 507 termination
  • Section 4947(a)(1) nonexempt charitable trusts treated as private foundations (section 6033(d))

When is Form 990-PF due?
Form 990-PF is due by the 15th day of the 5th month following the close of the foundation's accounting period. For a calendar year taxpayer, Form 990-PF is due on May 15 of the following year. If any due date falls on a Saturday, Sunday, or legal holiday, the foundation can file the return on the next business day.

Can I get help over the phone?
If you have questions or need help completing the form, please call 1-877-829-5500. Personal assistance is available Monday through Friday, 7 a.m. to 7 p.m. CT.

Where can I go for more information about tax-exempt organizations?
For more information on tax-exempt organizations see Tax Information for Charities & Other Non-Profits or Tax Information for Private Foundations.


Tips for next year

Review the tax-exempt organization resources at Form 990 Resources and Tools for Exempt Organizations.


Understanding your notice

Your notice may look different from the sample because the information contained in your notice is tailored to your situation.

Notice CP255, Page 1

Page Last Reviewed or Updated: 09-Dec-2013

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 Download 2010 Tax Forms

Download 2010 tax forms Publication 517 - Main Content Table of Contents Social Security CoverageCoverage of Members of the Clergy Coverage of Religious Workers (Church Employees) U. Download 2010 tax forms S. Download 2010 tax forms Citizens and Resident and Nonresident Aliens Ministerial ServicesMinisters Members of Religious Orders Christian Science Practitioners and Readers Exemption From Self-Employment (SE) TaxMembers of the Clergy Members of Recognized Religious Sects Self-Employment Tax: Figuring Net EarningsRegular Method Nonfarm Optional Method Income Tax: Income and ExpensesIncome Items Expense Items Income Tax Withholding and Estimated Tax Filing Your Return Retirement Savings ArrangementsDeducting contributions to tax-sheltered annuity plans. Download 2010 tax forms Full-time student. Download 2010 tax forms Adjusted gross income. Download 2010 tax forms More information. Download 2010 tax forms Earned Income Credit Comprehensive ExampleForm W-2 From Church Form W-2 From College Schedule C-EZ (Form 1040) Form 2106-EZ Schedule A (Form 1040) Schedule SE (Form 1040) Form 1040 Attachment 1 Attachment 2 How To Get Tax HelpLow Income Taxpayer Clinics Social Security Coverage This section gives information about which system (SECA or FICA) is used to collect social security and Medicare taxes from members of the clergy (ministers, members of a religious order, and Christian Science practitioners and readers) and religious workers (church employees). Download 2010 tax forms Coverage of Members of the Clergy The services you perform in the exercise of your ministry, of the duties required by your religious order, or of your profession as a Christian Science practitioner or reader are covered by social security and Medicare under SECA. Download 2010 tax forms Your earnings for these ministerial services (defined later) are subject to self-employment (SE) tax unless one of the following applies. Download 2010 tax forms You are a member of a religious order who has taken a vow of poverty. Download 2010 tax forms You ask the Internal Revenue Service (IRS) for an exemption from SE tax for your services and the IRS approves your request. Download 2010 tax forms See Exemption From Self-Employment (SE) Tax , later. Download 2010 tax forms You are subject only to the social security laws of a foreign country under the provisions of a social security agreement between the United States and that country. Download 2010 tax forms For more information, see Bilateral Social Security (Totalization) Agreements in Publication 54. Download 2010 tax forms Your earnings that are not from ministerial services may be subject to social security tax under FICA or SECA according to the rules that apply to taxpayers in general. Download 2010 tax forms See Ministerial Services , later. Download 2010 tax forms Ministers If you are a minister of a church, your earnings for the services you perform in your capacity as a minister are subject to SE tax, even if you perform these services as an employee of that church. Download 2010 tax forms However, you can request that the IRS grant you an exemption, as discussed under Exemption From Self-Employment (SE) Tax , later. Download 2010 tax forms For the specific services covered, see Ministerial Services , later. Download 2010 tax forms Ministers defined. Download 2010 tax forms   Ministers are individuals who are duly ordained, commissioned, or licensed by a religious body constituting a church or church denomination. Download 2010 tax forms Ministers have the authority to conduct religious worship, perform sacerdotal functions, and administer ordinances or sacraments according to the prescribed tenets and practices of that church or denomination. Download 2010 tax forms   If a church or denomination ordains some ministers and licenses or commissions others, anyone licensed or commissioned must be able to perform substantially all the religious functions of an ordained minister to be treated as a minister for social security purposes. Download 2010 tax forms Employment status for other tax purposes. Download 2010 tax forms   Even though all of your income from performing ministerial services is subject to self-employment tax for social security tax purposes, you may be an employee for income tax or retirement plan purposes in performing those same services. Download 2010 tax forms For income tax or retirement plan purposes, your income earned as an employee will be considered wages. Download 2010 tax forms Common-law employee. Download 2010 tax forms   Under common-law rules, you are considered either an employee or a self-employed person. Download 2010 tax forms Generally, you are an employee if you perform services for someone who has the legal right to control both what you do and how you do it, even if you have considerable discretion and freedom of action. Download 2010 tax forms For more information about the common-law rules, see Publication 15-A, Employer's Supplemental Tax Guide. Download 2010 tax forms   If a congregation employs you and pays you a salary, you are generally a common-law employee and income from the exercise of your ministry is wages for income tax purposes. Download 2010 tax forms However, amounts received directly from members of the congregation, such as fees for performing marriages, baptisms, or other personal services, are not wages; such amounts are self-employment income for both income tax purposes and social security tax purposes. Download 2010 tax forms Example. Download 2010 tax forms A church hires and pays you a salary to perform ministerial services subject to its control. Download 2010 tax forms Under the common-law rules, you are an employee of the church while performing those services. Download 2010 tax forms Form SS-8. Download 2010 tax forms   If you are not certain whether you are an employee or a self-employed person, you can get a determination from the IRS by filing Form SS-8. Download 2010 tax forms Members of Religious Orders If you are a member of a religious order who has not taken a vow of poverty, your earnings for ministerial services you perform as a member of the order are subject to SE tax. Download 2010 tax forms See Ministerial Services , later. Download 2010 tax forms However, you can request that the IRS grant you an exemption as discussed under Exemption From Self-Employment (SE) Tax , later. Download 2010 tax forms Vow of poverty. Download 2010 tax forms   If you are a member of a religious order and have taken a vow of poverty, you are already exempt from paying SE tax on your earnings for ministerial services you perform as an agent of your church or its agencies. Download 2010 tax forms You do not need to request a separate exemption. Download 2010 tax forms For income tax purposes, the earnings are tax free to you. Download 2010 tax forms Your earnings are considered the income of the religious order. Download 2010 tax forms Services covered under FICA at the election of the order. Download 2010 tax forms   However, even if you have taken a vow of poverty, the services you perform for your church or its agencies may be covered under social security. Download 2010 tax forms Your services are covered if your order, or an autonomous subdivision of the order, elects social security coverage for its current and future vow-of-poverty members. Download 2010 tax forms   The order or subdivision elects coverage by filing Form SS-16. Download 2010 tax forms The election may cover certain vow-of-poverty members for a retroactive period of up to 20 calendar quarters before the quarter in which it files the certificate. Download 2010 tax forms If the election is made, the order or subdivision pays both the employer's and employee's share of the tax. Download 2010 tax forms You do not pay any of the FICA tax. Download 2010 tax forms Services performed outside the order. Download 2010 tax forms   Even if you are a member of a religious order who has taken a vow of poverty and the order requires you to turn over amounts you earn, your earnings are subject to federal income tax and either SE tax or FICA tax (including estimated tax payments and/or withholding) if you: Are self-employed or an employee of an organization outside your religious community, and Perform work not required by, or done on behalf of, the order. Download 2010 tax forms   In these cases, your income from self-employment or as an employee of that outside organization is taxable to you directly. Download 2010 tax forms You may, however, be able to take a charitable deduction for the amount you turn over to the order. Download 2010 tax forms See Publication 526, Charitable Contributions. Download 2010 tax forms Rulings. Download 2010 tax forms   Organizations and individuals may request rulings from the IRS on whether they are religious orders, or members of a religious order, respectively, for FICA tax, SE tax, and federal income tax withholding purposes. Download 2010 tax forms To request a ruling, follow the procedures in Revenue Procedure 2014-1, 2014-1 I. Download 2010 tax forms R. Download 2010 tax forms B. Download 2010 tax forms 1, available at www. Download 2010 tax forms irs. Download 2010 tax forms gov/irb/2014-1_IRB/ar05. Download 2010 tax forms html. Download 2010 tax forms Christian Science Practitioners and Readers Generally, your earnings from services you perform in your profession as a Christian Science practitioner or reader are subject to SE tax. Download 2010 tax forms However, you can request an exemption as discussed under Exemption From Self-Employment (SE) Tax , later. Download 2010 tax forms Practitioners. Download 2010 tax forms   Christian Science practitioners are members in good standing of the Mother Church, The First Church of Christ, Scientist, in Boston, Massachusetts, who practice healing according to the teachings of Christian Science. Download 2010 tax forms State law specifically exempts Christian Science practitioners from licensing requirements. Download 2010 tax forms   Some Christian Science practitioners also are Christian Science teachers or lecturers. Download 2010 tax forms Income from teaching or lecturing is considered the same as income from their work as practitioners. Download 2010 tax forms Readers. Download 2010 tax forms   For tax purposes, Christian Science readers are considered the same as ordained, commissioned, or licensed ministers. Download 2010 tax forms Coverage of Religious Workers (Church Employees) If you are a religious worker (a church employee) and are not in one of the classes already discussed, your wages are generally subject to social security and Medicare tax under FICA, not SECA. Download 2010 tax forms Some exceptions are discussed next. Download 2010 tax forms Election by Church To Exclude Its Employees From FICA Coverage Churches and qualified church-controlled organizations (church organizations) that are opposed for religious reasons to the payment of social security and Medicare taxes can elect to exclude their employees from FICA coverage. Download 2010 tax forms If your employer makes this election, it does not pay the employer's portion of the FICA taxes or withhold from your pay your portion of the FICA taxes. Download 2010 tax forms Instead, your wages are subject to SECA and you must pay SE tax on your wages if they exceed $108. Download 2010 tax forms 28 during the tax year. Download 2010 tax forms However, you can request an exemption from SE tax if you are a member of a recognized religious sect, as discussed below. Download 2010 tax forms Churches and church organizations make this election by filing two copies of Form 8274. Download 2010 tax forms For more information about making this election, see Form 8274. Download 2010 tax forms Election by Certain Church Employees Who Are Opposed to Social Security and Medicare You may be able to choose to be exempt from social security and Medicare taxes, including the SE tax, if you are a member of a recognized religious sect or division and work for a church (or church-controlled nonprofit division) that does not pay the employer's part of the social security tax on wages. Download 2010 tax forms This exemption does not apply to your service, if any, as a minister of a church or as a member of a religious order. Download 2010 tax forms Make this choice by filing Form 4029. Download 2010 tax forms See Requesting Exemption—Form 4029 , later, under Members of Recognized Religious Sects. Download 2010 tax forms U. Download 2010 tax forms S. Download 2010 tax forms Citizens and Resident and Nonresident Aliens To be covered under the SE tax provisions (SECA), individuals generally must be citizens or resident aliens of the United States. Download 2010 tax forms Nonresident aliens are not covered under SECA unless a social security agreement in effect between the United States and the foreign country determines that you are covered under the U. Download 2010 tax forms S. Download 2010 tax forms social security system. Download 2010 tax forms To determine your alien status, see Publication 519, U. Download 2010 tax forms S. Download 2010 tax forms Tax Guide for Aliens. Download 2010 tax forms Residents of Puerto Rico, the U. Download 2010 tax forms S. Download 2010 tax forms Virgin Islands, Guam, the CNMI, and American Samoa. Download 2010 tax forms   If you are a resident of one of these U. Download 2010 tax forms S. Download 2010 tax forms possessions but not a U. Download 2010 tax forms S. Download 2010 tax forms citizen, for SE tax purposes you are treated the same as a citizen or resident alien of the United States. Download 2010 tax forms For information on figuring the tax, see Self-Employment Tax: Figuring Net Earnings , later. Download 2010 tax forms Ministerial Services Ministerial services, in general, are the services you perform in the exercise of your ministry, in the exercise of your duties as required by your religious order, or in the exercise of your profession as a Christian Science practitioner or reader. Download 2010 tax forms Income you receive for performing ministerial services is subject to SE tax unless you have an exemption as explained later. Download 2010 tax forms Even if you have an exemption, only the income you receive for performing ministerial services is exempt. Download 2010 tax forms The exemption does not apply to any other income. Download 2010 tax forms The following discussions provide more detailed information on ministerial services of ministers, members of a religious order, and Christian Science practitioners and readers. Download 2010 tax forms Ministers Most services you perform as a minister, priest, rabbi, etc. Download 2010 tax forms , are ministerial services. Download 2010 tax forms These services include: Performing sacerdotal functions, Conducting religious worship, and Controlling, conducting, and maintaining religious organizations (including the religious boards, societies, and other integral agencies of such organizations) that are under the authority of a religious body that is a church or denomination. Download 2010 tax forms You are considered to control, conduct, and maintain a religious organization if you direct, manage, or promote the organization's activities. Download 2010 tax forms A religious organization is under the authority of a religious body that is a church or denomination if it is organized for and dedicated to carrying out the principles of a faith according to the requirements governing the creation of institutions of the faith. Download 2010 tax forms Services for nonreligious organizations. Download 2010 tax forms   Your services for a nonreligious organization are ministerial services if the services are assigned or designated by your church. Download 2010 tax forms Assigned or designated services qualify even if they do not involve performing sacerdotal functions or conducting religious worship. Download 2010 tax forms   If your services are not assigned or designated by your church, they are ministerial services only if they involve performing sacerdotal functions or conducting religious worship. Download 2010 tax forms Services that are not part of your ministry. Download 2010 tax forms   Income from services you perform as an employee that are not ministerial services is subject to social security and Medicare tax withholding under FICA (not SECA) under the rules that apply to employees in general. Download 2010 tax forms The following are not ministerial services. Download 2010 tax forms Services you perform for nonreligious organizations other than the services stated above. Download 2010 tax forms Services you perform as a duly ordained, commissioned, or licensed minister of a church as an employee of the United States, the District of Columbia, a foreign government, or any of their political subdivisions. Download 2010 tax forms These services are not ministerial services even if you are performing sacerdotal functions or conducting religious worship. Download 2010 tax forms (For example, if you perform services as a chaplain in the Armed Forces of the United States, those services are not ministerial services. Download 2010 tax forms ) Services you perform in a government-owned and operated hospital. Download 2010 tax forms (These services are considered performed by a government employee, not by a minister as part of the ministry. Download 2010 tax forms ) However, services that you perform at a church-related hospital or health and welfare institution, or a private nonprofit hospital, are considered to be part of the ministry and are considered ministerial services. Download 2010 tax forms Books or articles. Download 2010 tax forms   Writing religious books or articles is considered to be in the exercise of your ministry and is considered a ministerial service. Download 2010 tax forms   This rule also applies to members of religious orders and to Christian Science practitioners and readers. Download 2010 tax forms Members of Religious Orders Services you perform as a member of a religious order in the exercise of duties required by the order are ministerial services. Download 2010 tax forms The services are considered ministerial because you perform them as an agent of the order. Download 2010 tax forms For example, if the order directs you to perform services for another agency of the supervising church or an associated institution, you are considered to perform the services as an agent of the order. Download 2010 tax forms However, if the order directs you to work outside the order, this employment will not be considered a duty required by the order unless: Your services are the kind that are ordinarily performed by members of the order, and Your services are part of the duties that must be exercised for, or on behalf of, the religious order as its agent. Download 2010 tax forms Effect of employee status. Download 2010 tax forms   Ordinarily, if your services are not considered directed or required of you by the order, you and the outside party for whom you work are considered employee and employer. Download 2010 tax forms In this case, your earnings from the services are taxed under the rules that apply to employees in general, not under the rules for services provided as agent for the order. Download 2010 tax forms This result is true even if you have taken a vow of poverty. Download 2010 tax forms Example. Download 2010 tax forms Pat Brown and Chris Green are members of a religious order and have taken vows of poverty. Download 2010 tax forms They renounce all claims to their earnings. Download 2010 tax forms The earnings belong to the order. Download 2010 tax forms Pat is a licensed attorney. Download 2010 tax forms The superiors of the order instructed her to get a job with a law firm. Download 2010 tax forms Pat joined a law firm as an employee and, as she requested, the firm made the salary payments directly to the order. Download 2010 tax forms Chris is a secretary. Download 2010 tax forms The superiors of the order instructed him to accept a job with the business office of the church that supervises the order. Download 2010 tax forms Chris took the job and gave all his earnings to the order. Download 2010 tax forms Pat's services are not duties required by the order. Download 2010 tax forms Her earnings are subject to social security and Medicare tax under FICA and to federal income tax. Download 2010 tax forms Chris' services are duties required by the order. Download 2010 tax forms He is acting as an agent of the order and not as an employee of a third party. Download 2010 tax forms He does not include the earnings in gross income, and they are not subject to income tax withholding or to social security and Medicare tax under FICA or SECA. Download 2010 tax forms Christian Science Practitioners and Readers Services you perform as a Christian Science practitioner or reader in the exercise of your profession are ministerial services. Download 2010 tax forms Amounts you receive for performing these services are generally subject to SE tax. Download 2010 tax forms You may request an exemption from SE tax, discussed next, which applies only to those services. Download 2010 tax forms Exemption From Self-Employment (SE) Tax You can request an exemption from SE tax if you are a member of the clergy (minister, member of a religious order, or Christian Science practitioner or reader) or a member of a recognized religious sect. Download 2010 tax forms Generally, members of religious orders who have taken a vow of poverty are already exempt from paying SE tax, as discussed earlier under Members of Religious Orders under Social Security Coverage. Download 2010 tax forms They do not have to request the exemption. Download 2010 tax forms Who cannot be exempt. Download 2010 tax forms   You cannot be exempt from SE tax if you made one of the following elections to be covered under social security. Download 2010 tax forms These elections are irrevocable. Download 2010 tax forms You elected to be covered under social security by filing Form 2031, Revocation of Exemption From Self-Employment Tax for Use by Ministers, Members of Religious Orders, and Christian Science Practitioners, for your 1986, 1987, 2000, or 2001 tax year. Download 2010 tax forms You elected before 1968 to be covered under social security for your ministerial services. Download 2010 tax forms Requesting exemption. Download 2010 tax forms    Table 2, earlier, briefly summarizes the procedure for requesting exemption from the SE tax. Download 2010 tax forms More detailed explanations follow. Download 2010 tax forms If you are a minister, member of a religious order, or Christian Science practitioner, an approved exemption only applies to earnings you receive for ministerial services, discussed earlier. Download 2010 tax forms It does not apply to any other self-employment income. Download 2010 tax forms Table 2. Download 2010 tax forms The Self-Employment Tax Exemption Application and Approval Process   Who Can Apply Members of the Clergy Members of Recognized  Religious Sects How File Form 4361 File Form 4029 When File by the due date (including extensions) of your income tax return for the second tax year in which you had at least $400 of net earnings from self-employment (at least part from ministerial services) File anytime Approval If approved, you will receive an approved copy of Form 4361 If approved, you will receive an approved copy of Form 4029 Effective Date For all tax years after 1967 in which you have at least $400 of net earnings from self-employment For all tax years beginning with the first year you meet the eligibility requirements discussed later Members of the Clergy To claim the exemption from SE tax, you must meet all of the following conditions. Download 2010 tax forms You file Form 4361, described below under Requesting Exemption—Form 4361 . Download 2010 tax forms You are conscientiously opposed to public insurance because of your individual religious considerations (not because of your general conscience), or you are opposed because of the principles of your religious denomination. Download 2010 tax forms You file for other than economic reasons. Download 2010 tax forms You inform the ordaining, commissioning, or licensing body of your church or order that you are opposed to public insurance if you are a minister or a member of a religious order (other than a vow-of-poverty member). Download 2010 tax forms This requirement does not apply to Christian Science practitioners or readers. Download 2010 tax forms You establish that the organization that ordained, commissioned, or licensed you, or your religious order, is a tax-exempt religious organization. Download 2010 tax forms You establish that the organization is a church or a convention or association of churches. Download 2010 tax forms You did not make an election discussed earlier under Who cannot be exempt . Download 2010 tax forms You sign and return the statement the IRS mails to you to certify that you are requesting an exemption based on the grounds listed on the statement. Download 2010 tax forms Requesting Exemption—Form 4361 To request exemption from SE tax, file Form 4361 in triplicate (original and two copies) with the IRS. Download 2010 tax forms The IRS will return to you a copy of the Form 4361 that you filed indicating whether it has approved your exemption. Download 2010 tax forms If it is approved, keep the approved copy of Form 4361 in your permanent records. Download 2010 tax forms When to file. Download 2010 tax forms   File Form 4361 by the date your income tax return is due, including extensions, for the second tax year in which both of the following are true. Download 2010 tax forms You have net earnings from self-employment of at least $400. Download 2010 tax forms Any part of those net earnings was from ministerial services you performed as a: Minister, Member of a religious order, or Christian Science practitioner or reader. Download 2010 tax forms The 2 years do not have to be consecutive tax years. Download 2010 tax forms    The approval process can take some time, so you should file Form 4361 as soon as possible. Download 2010 tax forms Example 1. Download 2010 tax forms Rev. Download 2010 tax forms Lawrence Jaeger, a clergyman ordained in 2013, has net self-employment earnings as a minister of $450 in 2013 and $500 in 2014. Download 2010 tax forms He must file his application for exemption by the due date, including extensions, for his 2014 income tax return. Download 2010 tax forms However, if Rev. Download 2010 tax forms Jaeger does not receive IRS approval for an exemption by April 15, 2015, his SE tax for 2014 is due by that date. Download 2010 tax forms Example 2. Download 2010 tax forms Rev. Download 2010 tax forms Louise Wolfe has only $300 in net self-employment earnings as a minister in 2013, but earned more than $400 in 2012 and expects to earn more than $400 in 2014. Download 2010 tax forms She must file her application for exemption by the due date, including extensions, for her 2014 income tax return. Download 2010 tax forms However, if she does not receive IRS approval for an exemption by April 15, 2015, her SE tax for 2014 is due by that date. Download 2010 tax forms Example 3. Download 2010 tax forms In 2011, Rev. Download 2010 tax forms David Moss was ordained a minister and had $700 in net self-employment earnings as a minister. Download 2010 tax forms In 2012, he received $1,000 as a minister, but his related expenses were over $1,000. Download 2010 tax forms Therefore, he had no net self-employment earnings as a minister in 2012. Download 2010 tax forms Also in 2012, he opened a book store and had $8,000 in net self-employment earnings from the store. Download 2010 tax forms In 2013, he had net self-employment earnings of $1,500 as a minister and $10,000 net self-employment earnings from the store. Download 2010 tax forms Rev. Download 2010 tax forms Moss had net earnings from self-employment in 2011 and 2013 that were $400 or more each year, and part of the self-employment earnings in each of those years was for his services as a minister. Download 2010 tax forms Thus, he must file his application for exemption by the due date, including extensions, for his 2013 income tax return. Download 2010 tax forms Death of individual. Download 2010 tax forms   The right to file an application for exemption ends with an individual's death. Download 2010 tax forms A surviving spouse, executor, or administrator cannot file an exemption application for a deceased clergy member. Download 2010 tax forms Effective date of exemption. Download 2010 tax forms   An approved exemption is effective for all tax years after 1967 in which you have $400 or more of net earnings from self-employment and any part of those earnings is for services as a member of the clergy. Download 2010 tax forms Once the exemption is approved, it is irrevocable. Download 2010 tax forms Example. Download 2010 tax forms Rev. Download 2010 tax forms Trudy Austin, ordained in 2010, had $400 or more in net self-employment earnings as a minister in both 2010 and 2013. Download 2010 tax forms She files an application for exemption on February 20, 2014. Download 2010 tax forms If an exemption is granted, it is effective for 2010 and the following years. Download 2010 tax forms Refunds of SE tax. Download 2010 tax forms   If, after receiving an approved Form 4361, you find that you overpaid SE tax, you can file a claim for refund on Form 1040X. Download 2010 tax forms Generally, for a refund, you must file Form 1040X within 3 years from the date you filed the return or within 2 years from the date you paid the tax, whichever is later. Download 2010 tax forms A return you filed, or tax you paid, before the due date is considered to have been filed or paid on the due date. Download 2010 tax forms   If you file a claim after the 3-year period but within 2 years from the time you paid the tax, the credit or refund will not be more than the tax you paid within the 2 years immediately before you file the claim. Download 2010 tax forms Members of Recognized Religious Sects If you are a member of a recognized religious sect, or a division of a recognized religious sect, you can apply for an exemption from payment of social security and Medicare taxes on both your self-employment income and the wages you earn from an employer who also has an exemption. Download 2010 tax forms Exception. Download 2010 tax forms   If you received social security benefits or payments, or anyone else received these benefits or payments based on your wages or self-employment income, you cannot apply. Download 2010 tax forms However, if you pay your benefits back, you may be considered for exemption. Download 2010 tax forms Contact your local Social Security Administration office to find out the amount you must pay back. Download 2010 tax forms Eligibility requirements. Download 2010 tax forms   To claim this exemption from SE tax, all the following requirements must be met. Download 2010 tax forms You must file Form 4029, discussed later under Requesting Exemption—Form 4029 . Download 2010 tax forms As a follower of the established teachings of the sect or division, you must be conscientiously opposed to accepting benefits of any private or public insurance that makes payments for death, disability, old age, retirement, or medical care, or provides services for medical care. Download 2010 tax forms You must waive all rights to receive any social security payment or benefit and agree that no benefits or payments will be made to anyone else based on your wages and self-employment income. Download 2010 tax forms The Commissioner of Social Security must determine that: Your sect or division has the established teachings as described in (2) above, It is the practice, and has been for a substantial period of time, for members of the sect or division to provide for their dependent members in a manner that is reasonable in view of the members' general level of living, and The sect or division has existed at all times since December 31, 1950. Download 2010 tax forms Requesting Exemption—Form 4029 To request the exemption, file Form 4029 in triplicate (original and two copies) with the Social Security Administration at the address shown on the form. Download 2010 tax forms The sect or division must complete part of the form. Download 2010 tax forms The IRS will return to you a copy of the Form 4029 that you filed indicating whether it has approved your exemption. Download 2010 tax forms If it is approved, keep the approved copy of Form 4029 in your permanent records. Download 2010 tax forms When to file. Download 2010 tax forms   You can file Form 4029 at any time. Download 2010 tax forms   If you have an approved exemption from SE tax and for some reason that approved exemption ended, you must file a new Form 4029 if you subsequently meet the eligibility requirements, discussed earlier. Download 2010 tax forms See Effective date of exemption next for information on when the newly approved exemption would become effective. Download 2010 tax forms    If you have a previously approved exemption from SE tax and you change membership to another recognized religious sect, without any change to your eligibility requirements, then you do not need to file a new Form 4029. Download 2010 tax forms Effective date of exemption. Download 2010 tax forms   An approved exemption from SE tax generally is effective for all tax years beginning with the first year you meet the eligibility requirements discussed earlier. Download 2010 tax forms (For example, if you meet the eligibility requirements in 2011, you file Form 4029 in 2012, and the IRS approves your exemption in 2013, your exemption is effective for tax year 2011 and all later years. Download 2010 tax forms )   The exemption will end if you fail to meet the eligibility requirements or if the Commissioner of Social Security determines that the sect or division fails to meet them. Download 2010 tax forms You must notify the IRS within 60 days if you are no longer a member of the religious group, or if you no longer follow the established teachings of this group. Download 2010 tax forms The exemption will end for the tax year where you or your sect/division first fails to meet the eligibility requirements. Download 2010 tax forms Refunds of SE tax paid. Download 2010 tax forms    To get a refund of any SE tax you paid while the exemption was in effect, file Form 1040X. Download 2010 tax forms For information on filing this form, see Refunds of SE tax under Requesting Exemption—Form 4361, earlier. Download 2010 tax forms Exemption From FICA Taxes Generally, under FICA, the employer and the employee each pay half of the social security and Medicare tax. Download 2010 tax forms Both the employee and the employer, if they meet the eligibility requirements discussed earlier, can apply to be exempt from their share of FICA taxes on wages paid by the employer to the employee. Download 2010 tax forms A partnership in which each partner holds a religious exemption from social security and Medicare is an employer for this purpose. 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Download 2010 tax forms   If both you and your employee have received approved Forms 4029, do not include these exempt wages on the following forms. Download 2010 tax forms Instead, follow the instructions given below. Download 2010 tax forms Form 941, Employer's QUARTERLY Federal Tax Return: check the box on line 4 and enter “Form 4029” in the empty space below the check box. Download 2010 tax forms Form 943, Employer's Annual Federal Tax Return for Agricultural Employees: enter “Form 4029” on the dotted line next to the lines 2 and 4 entry spaces. Download 2010 tax forms Form 944, Employer's ANNUAL Federal Tax Return: check the box on line 3 and enter “Form 4029” in the empty space below the check box. Download 2010 tax forms Effective date. Download 2010 tax forms   An approved exemption from FICA becomes effective on the first day of the first calendar quarter after the quarter in which you file Form 4029. Download 2010 tax forms The exemption will end on the last day of the calendar quarter before the quarter in which the employer, employee, sect, or division fails to meet the requirements. Download 2010 tax forms Self-Employment Tax: Figuring Net Earnings There are two methods for figuring your net earnings from self-employment as a member of the clergy or a religious worker. Download 2010 tax forms Regular method. Download 2010 tax forms Nonfarm optional method. Download 2010 tax forms You may find Worksheets 1 through 4 helpful in figuring your net earnings from self-employment. Download 2010 tax forms Blank worksheets are in the back of this publication, after the Comprehensive Example. Download 2010 tax forms Regular Method Most people use the regular method. Download 2010 tax forms Under this method, figure your net earnings from self-employment by totaling your gross income for services you performed as a minister, a member of a religious order who has not taken a vow of poverty, or a Christian Science practitioner or reader. Download 2010 tax forms Then, subtract your allowable business deductions and multiply the difference by 92. Download 2010 tax forms 35% (. Download 2010 tax forms 9235). Download 2010 tax forms Use Schedule SE (Form 1040) to figure your net earnings and SE tax. Download 2010 tax forms If you are an employee of a church that elected to exclude you from FICA coverage, figure net earnings by multiplying your church wages shown on Form W-2 by 92. Download 2010 tax forms 35% (. Download 2010 tax forms 9235). Download 2010 tax forms Do not reduce your wages by any business deductions when making this computation. Download 2010 tax forms Use Schedule SE (Form 1040), Section B, to figure your net earnings and SE tax. Download 2010 tax forms If you have an approved exemption, or you are automatically exempt, do not include the income or deductions from ministerial services in figuring your net earnings from self-employment. Download 2010 tax forms Amounts included in gross income. Download 2010 tax forms   To figure your net earnings from self-employment (on Schedule SE (Form 1040)), include in gross income: Salaries and fees for your ministerial services (discussed earlier), Offerings you receive for marriages, baptisms, funerals, masses, etc. Download 2010 tax forms , The value of meals and lodging provided to you, your spouse, and your dependents for your employer's convenience, The fair rental value of a parsonage provided to you (including the cost of utilities that are furnished) and the rental allowance (including an amount for payment of utilities) paid to you, and Any amount a church pays toward your income tax or SE tax, other than withholding the amount from your salary. Download 2010 tax forms This amount is also subject to income tax. Download 2010 tax forms   For the income tax treatment of items (2) and (4), see Income Tax: Income and Expenses , later. Download 2010 tax forms Example. Download 2010 tax forms Pastor Roger Adams receives an annual salary of $39,000 as a full-time minister. Download 2010 tax forms The $39,000 includes $5,000 that is designated as a rental allowance to pay utilities. Download 2010 tax forms His church owns a parsonage that has a fair rental value of $12,000 per year. Download 2010 tax forms The church gives Pastor Adams the use of the parsonage. Download 2010 tax forms He is not exempt from SE tax. Download 2010 tax forms He must include $51,000 ($39,000 plus $12,000) when figuring his net earnings for SE tax purposes. Download 2010 tax forms The results would be the same if, instead of the use of the parsonage and receipt of the rental allowance for utilities, Pastor Adams had received an annual salary of $51,000 of which $17,000 ($5,000 plus $12,000) per year was designated as a rental allowance. Download 2010 tax forms Overseas duty. Download 2010 tax forms   Your net earnings from self-employment are determined without any foreign earned income exclusion or the foreign housing exclusion or deduction if you are a U. Download 2010 tax forms S. Download 2010 tax forms citizen or resident alien serving abroad and living in a foreign country. Download 2010 tax forms   For information on excluding foreign earned income or the foreign housing amount, see Publication 54. Download 2010 tax forms Example. Download 2010 tax forms Diane Jones was the minister of a U. Download 2010 tax forms S. Download 2010 tax forms church in Mexico. Download 2010 tax forms She earned $35,000 in that position and was able to exclude it all for income tax purposes under the foreign earned income exclusion. Download 2010 tax forms The United States does not have a social security agreement with Mexico, so Mrs. Download 2010 tax forms Jones is subject to U. Download 2010 tax forms S. Download 2010 tax forms SE tax and must include $35,000 when figuring net earnings from self-employment. Download 2010 tax forms Specified U. Download 2010 tax forms S. Download 2010 tax forms possessions. Download 2010 tax forms    The exclusion from gross income for amounts derived from American Samoa or Puerto Rico does not apply in computing net earnings from self-employment. Download 2010 tax forms Also see Residents of Puerto Rico, the U. Download 2010 tax forms S. Download 2010 tax forms Virgin Islands, Guam, the CNMI, and American Samoa , earlier, under U. Download 2010 tax forms S. Download 2010 tax forms Citizens and Resident and Nonresident Aliens. Download 2010 tax forms Amounts not included in gross income. Download 2010 tax forms   Do not include the following amounts in gross income when figuring your net earnings from self-employment. Download 2010 tax forms Offerings that others made to the church. Download 2010 tax forms Contributions by your church to a tax-sheltered annuity plan set up for you, including any salary reduction contributions (elective deferrals) that are not included in your gross income. Download 2010 tax forms Pension payments or retirement allowances you receive for your past ministerial services. Download 2010 tax forms The rental value of a parsonage or a parsonage allowance provided to you after you retire. Download 2010 tax forms Allowable deductions. Download 2010 tax forms   When figuring your net earnings from self-employment, deduct all your expenses related to your ministerial services performed as a self-employed person. Download 2010 tax forms These are ministerial expenses you incurred while working other than as a common-law employee of the church. Download 2010 tax forms They include expenses incurred in performing marriages and baptisms, and in delivering speeches. Download 2010 tax forms Deduct these expenses on Schedule C or C-EZ (Form 1040), and carry the net amount to line 2 of Schedule SE (Form 1040), Section A or B. Download 2010 tax forms   Wages earned as a common-law employee (explained earlier) of a church are generally subject to self-employment tax unless an exemption is requested, as discussed earlier under Exemption From Self-Employment (SE) Tax . Download 2010 tax forms Subtract any allowable expenses (including unreimbursed employee business expenses) from those wages, include the net amount on line 2 of Schedule SE (Form 1040), Section A or B, and attach an explanation. Download 2010 tax forms Do not complete Schedule C or C-EZ (Form 1040). Download 2010 tax forms However, for income tax purposes, the expenses are allowed only as an itemized deduction on Schedule A (Form 1040) to the extent they exceed 2% of adjusted gross income. Download 2010 tax forms Employee reimbursement arrangements. Download 2010 tax forms   If you received an advance, allowance, or reimbursement for your employee expenses, how you report this amount and your employee expenses depends on whether your employer reimbursed you under an accountable plan or a nonaccountable plan. Download 2010 tax forms Ask your employer if you are not sure if it reimburses you using an accountable or a nonaccountable plan. Download 2010 tax forms Accountable plans. Download 2010 tax forms   To be an accountable plan, your employer's reimbursement arrangement must include all three of the following rules. Download 2010 tax forms Your expenses must have a business connection—that is, you must have paid or incurred deductible expenses while performing services as an employee of your employer. Download 2010 tax forms You must adequately account to your employer for these expenses within a reasonable period of time. Download 2010 tax forms You must return any excess reimbursement or allowance within a reasonable period of time. Download 2010 tax forms   The reimbursement is not reported on your Form W-2. Download 2010 tax forms Generally, if your expenses equal your reimbursement, you have no deduction. Download 2010 tax forms If your expenses are more than your reimbursement, you can deduct your excess expenses for SE tax and income tax purposes. Download 2010 tax forms Nonaccountable plan. Download 2010 tax forms   A nonaccountable plan is a reimbursement arrangement that does not meet all three of the rules listed under Accountable plans above. Download 2010 tax forms In addition, even if your employer has an accountable plan, the following payments will be treated as being paid under a nonaccountable plan. Download 2010 tax forms Excess reimbursements you fail to return to your employer. Download 2010 tax forms Reimbursement of nondeductible expenses related to your employer's business. Download 2010 tax forms   Your employer will combine any reimbursement paid to you under a nonaccountable plan with your wages, salary, or other compensation and report the combined total in box 1 of your Form W-2. Download 2010 tax forms Since reimbursements under a nonaccountable plan are included in your gross income, you can deduct your related expenses (for SE tax and income tax purposes) regardless of whether they are more than, less than, or equal to your reimbursement. Download 2010 tax forms   For more information on accountable and nonaccountable plans, see Publication 463, Travel, Entertainment, Gift, and Car Expenses. Download 2010 tax forms Married Couple Missionary Team If both spouses are duly ordained, commissioned, or licensed ministers of a church and have an agreement that each will perform specific services for which they are paid jointly or separately, they must divide the self-employment income according to the agreement. Download 2010 tax forms If the agreement is with one spouse only and the other spouse is not paid for any specific duties, amounts received for their services are included only in the self-employment income of the spouse having the agreement. Download 2010 tax forms Earnings Subject to SE Tax For 2013, the maximum net earnings from self-employment subject to social security (old age, survivors, and disability insurance) tax is $113,700 minus any wages and tips you earned that were subject to social security tax. Download 2010 tax forms The tax rate for the social security part is 12. Download 2010 tax forms 4%. Download 2010 tax forms In addition, all of your net earnings are subject to the Medicare (hospital insurance) part of the SE tax. Download 2010 tax forms This tax rate is 2. Download 2010 tax forms 9%. Download 2010 tax forms The combined self-employment tax rate is 15. Download 2010 tax forms 3%. Download 2010 tax forms Additional Medicare Tax. Download 2010 tax forms   Beginning in 2013, a 0. Download 2010 tax forms 9% Additional Medicare Tax applies to Medicare wages, railroad retirement (RRTA) compensation, and self-employment income that are more than: $125,000 if married filing separately, $250,000 if married filing jointly, or $200,000 for any other filing status. Download 2010 tax forms Medicare wages and self-employment income are combined to determine if income exceeds the threshold. Download 2010 tax forms A self-employment loss is not considered for purposes of this tax. Download 2010 tax forms RRTA compensation is separately compared to the threshold. Download 2010 tax forms For more information, see Form 8959, Additional Medicare Tax, and its separate instructions. Download 2010 tax forms Nonfarm Optional Method You may be able to use the nonfarm optional method for figuring your net earnings from self-employment. Download 2010 tax forms In general, the nonfarm optional method is intended to permit continued coverage for social security and Medicare purposes when your income for the tax year is low. Download 2010 tax forms You may use the nonfarm optional method if you meet all the following tests. Download 2010 tax forms You are self-employed on a regular basis. Download 2010 tax forms You meet this test if your actual net earnings from self-employment were $400 or more in at least 2 of the 3 tax years before the one for which you use this method. Download 2010 tax forms The net earnings can be from either farm or nonfarm earnings or both. Download 2010 tax forms You have used this method less than 5 prior years. Download 2010 tax forms (There is a 5-year lifetime limit. Download 2010 tax forms ) The years do not have to be consecutive. Download 2010 tax forms Your net nonfarm profits were: Less than $5,024, and Less than 72. Download 2010 tax forms 189% of your gross nonfarm income. Download 2010 tax forms If you meet all three tests, use Table 3 to figure your net earnings from self-employment under the nonfarm optional method. Download 2010 tax forms Table 3. Download 2010 tax forms Figuring Nonfarm Net Earnings IF your gross nonfarm income is . Download 2010 tax forms . Download 2010 tax forms . Download 2010 tax forms THEN your net earnings are equal to . Download 2010 tax forms . Download 2010 tax forms . Download 2010 tax forms $6,960 or less Two-thirds of your gross nonfarm income. Download 2010 tax forms More than $6,960 $4,640. Download 2010 tax forms Actual net earnings. Download 2010 tax forms   Multiply your total earnings subject to SE tax by 92. Download 2010 tax forms 35% (. Download 2010 tax forms 9235) to get actual net earnings. Download 2010 tax forms Actual net earnings are equivalent to net earnings under the “Regular Method. Download 2010 tax forms ” More information. Download 2010 tax forms   For more information on the nonfarm optional method, see Publication 334, Tax Guide for Small Business, and the Schedule SE (Form 1040) instructions. Download 2010 tax forms Income Tax: Income and Expenses Some income and expense items are treated the same for both income tax and SE tax purposes and some are treated differently. Download 2010 tax forms Note. Download 2010 tax forms For purposes of this section, references to members of the clergy are only to ministers or members of a religious order. Download 2010 tax forms Income Items The tax treatment of offerings and fees, outside earnings, rental allowances, rental value of a parsonage, earnings of members of religious orders, and foreign earned income is discussed here. Download 2010 tax forms Offerings and Fees If you are a member of the clergy, you must include in your income offerings and fees you receive for marriages, baptisms, funerals, masses, etc. Download 2010 tax forms , in addition to your salary. Download 2010 tax forms If the offering is made to the religious institution, it is not taxable to you. Download 2010 tax forms Outside Earnings If you are a member of a religious organization and you give your outside earnings to the organization, you still must include the earnings in your income. Download 2010 tax forms However, you may be entitled to a charitable contribution deduction for the amount paid to the organization. Download 2010 tax forms For more information, see Publication 526. Download 2010 tax forms Exclusion of Rental Allowance and Fair Rental Value of a Parsonage Ordained, commissioned, or licensed ministers of the gospel may be able to exclude from income tax the rental allowance or fair rental value of a parsonage that is provided to them as pay for their services. Download 2010 tax forms Services include: Ministerial services, discussed earlier, Administrative duties and teaching at theological seminaries, and The ordinary duties of a minister performed as an employee of the United States (other than as a chaplain in the Armed Forces), a state, possession, political subdivision, or the District of Columbia. Download 2010 tax forms This exclusion applies only for income tax purposes. Download 2010 tax forms It does not apply for SE tax purposes, as discussed earlier under Amounts included in gross income under Self-Employment Tax: Figuring Net Earnings. Download 2010 tax forms Designation requirement. Download 2010 tax forms   The church or organization that employs you must officially designate the payment as a housing allowance before it makes the payment. Download 2010 tax forms It must designate a definite amount. Download 2010 tax forms It cannot determine the amount of the housing allowance at a later date. Download 2010 tax forms If the church or organization does not officially designate a definite amount as a housing allowance, you must include your total salary in your income. Download 2010 tax forms   If you are employed and paid by a local congregation, a resolution by a national church agency of your denomination does not effectively designate a housing allowance for you. Download 2010 tax forms The local congregation must officially designate the part of your salary that is a housing allowance. Download 2010 tax forms However, a resolution of a national church agency can designate your housing allowance if you are directly employed by the national agency. Download 2010 tax forms Rental allowances. Download 2010 tax forms   If you receive in your salary an amount officially designated as a rental allowance (including an amount to pay utility costs), you can exclude the allowance from your gross income if: You use the amount to provide or rent a home, and The amount is not more than reasonable pay for your services. Download 2010 tax forms   The amount you exclude cannot be more than the fair rental value of the home, including furnishings, plus the cost of utilities. Download 2010 tax forms Fair rental value of parsonage. Download 2010 tax forms   You can exclude from gross income the fair rental value of a house or parsonage, including utilities, furnished to you as part of your earnings. Download 2010 tax forms However, the exclusion cannot be more than the reasonable pay for your services. Download 2010 tax forms If you pay for the utilities, you can exclude any allowance designated for utility costs, up to your actual cost. Download 2010 tax forms Example. Download 2010 tax forms Rev. Download 2010 tax forms Joanna Baker is a full-time minister. Download 2010 tax forms The church allows her to use a parsonage that has an annual fair rental value of $24,000. Download 2010 tax forms The church pays her an annual salary of $67,000, of which $7,500 is designated for utility costs. Download 2010 tax forms Her actual utility costs during the year were $7,000. Download 2010 tax forms For income tax purposes, Rev. Download 2010 tax forms Baker excludes $31,000 from gross income ($24,000 fair rental value of the parsonage plus $7,000 from the allowance for utility costs). Download 2010 tax forms She will report $60,000 ($59,500 salary plus $500 of unused utility allowance). Download 2010 tax forms Her income for SE tax purposes, however, is $91,000 ($67,000 salary + $24,000 fair rental value of the parsonage). Download 2010 tax forms Home ownership. Download 2010 tax forms   If you own your home and you receive as part of your salary a housing or rental allowance, you may exclude from gross income the smallest of: The amount actually used to provide a home, The amount officially designated as a rental allowance, or The fair rental value of the home, including furnishings, utilities, garage, etc. Download 2010 tax forms Excess rental allowance. Download 2010 tax forms   You must include in gross income the amount of any rental allowance that is more than the smallest of: Your reasonable salary, The fair rental value of the home plus utilities, or The amount actually used to provide a home. Download 2010 tax forms   Include in the total on Form 1040, line 7. Download 2010 tax forms On the dotted line next to line 7, enter “Excess allowance” and the amount. Download 2010 tax forms You may deduct the home mortgage interest and real estate taxes paid on your home even though you pay all or part of those expenses with funds you get through a tax-free rental or parsonage allowance. Download 2010 tax forms However, you can only deduct these expenses as itemized deductions on Schedule A (Form 1040). Download 2010 tax forms Retired ministers. Download 2010 tax forms   If you are a retired minister, you can exclude from your gross income the rental value of a home (plus utilities) furnished to you by your church as a part of your pay for past services, or the part of your pension that was designated as a rental allowance. Download 2010 tax forms However, a minister's surviving spouse cannot exclude the rental value unless the rental value is for ministerial services he or she performs or performed. Download 2010 tax forms Teachers or administrators. Download 2010 tax forms   If you are a minister employed as a teacher or administrator by a church school, college, or university, you are performing ministerial services for purposes of the housing exclusion. Download 2010 tax forms However, if you perform services as a teacher or administrator on the faculty of a nonchurch college, you cannot exclude from your income a housing allowance or the value of a home that the college provides to you. Download 2010 tax forms    If you live in faculty lodging as an employee of an educational institution or academic health center, all or part of the value of that lodging may be nontaxable under a different rule. Download 2010 tax forms In Publication 525, see Faculty lodging in the discussion on meals and lodging under Fringe Benefits. Download 2010 tax forms   If you serve as a minister of music or minister of education, or serve in an administrative or other function of your religious organization, but are not authorized to perform substantially all of the religious duties of an ordained minister in your church (even if you are commissioned as a minister of the gospel), the housing exclusion does not apply to you. Download 2010 tax forms Theological students. Download 2010 tax forms   If you are a theological student serving a required internship as a part-time or assistant pastor, you cannot exclude a parsonage or rental allowance from your income unless you are ordained, commissioned, or licensed as a minister. Download 2010 tax forms Traveling evangelists. Download 2010 tax forms   You can exclude a designated rental allowance from out-of-town churches if you meet all of the following requirements. Download 2010 tax forms You are an ordained minister. Download 2010 tax forms You perform ministerial services at churches located away from your community. Download 2010 tax forms You actually use the rental allowance to maintain your permanent home. Download 2010 tax forms Cantors. Download 2010 tax forms   If you have a bona fide commission and your congregation employs you on a full-time basis to perform substantially all the religious functions of the Jewish faith, you can exclude a rental allowance from your gross income. Download 2010 tax forms Earnings—Members of Religious Orders Your earnings may be exempt from both income tax and SE tax if you are a member of a religious order who: Has taken a vow of poverty, Receives earnings for services performed as an agent of the order and in the exercise of duties required by the order, and Renounces the earnings and gives them to the order. Download 2010 tax forms See Members of Religious Orders , earlier, under Social Security Coverage. Download 2010 tax forms Foreign Earned Income Certain income may be exempt from income tax if you work in a foreign country or in a specified U. Download 2010 tax forms S. Download 2010 tax forms possession. Download 2010 tax forms Publication 54 discusses the foreign earned income exclusion. Download 2010 tax forms Publication 570, Tax Guide for Individuals With Income From U. Download 2010 tax forms S. Download 2010 tax forms Possessions, covers the rules for taxpayers with income from U. Download 2010 tax forms S. Download 2010 tax forms possessions. Download 2010 tax forms You can get these free publications from the Internal Revenue Service at IRS. Download 2010 tax forms gov or from most U. Download 2010 tax forms S. Download 2010 tax forms Embassies or consulates. Download 2010 tax forms Expense Items The tax treatment of ministerial trade or business expenses, expenses allocable to tax-free income, and health insurance costs is discussed here. 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Download 2010 tax forms Expenses Allocable to Tax-Free Income If you receive a rental or parsonage allowance that is exempt from income tax (tax free), you must allocate a portion of the expenses of operating your ministry to that tax-free income. Download 2010 tax forms You cannot deduct the portion of your expenses that you allocate to your tax-free rental or parsonage allowance. Download 2010 tax forms Exception. Download 2010 tax forms   This rule does not apply to your deductions for home mortgage interest or real estate taxes on your home. Download 2010 tax forms Figuring the allocation. Download 2010 tax forms   Figure the portion of your otherwise deductible expenses that you cannot deduct (because you must allocate that portion to tax-free income) by multiplying the expenses by the following fraction:      Tax-free rental or parsonage allowance     All income (taxable and tax free) earned from your ministry           When figuring the allocation, include the income and expenses related to the ministerial duties you perform both as an employee and as a self-employed person. Download 2010 tax forms    Reduce your otherwise deductible expenses only in figuring your income tax, not your SE tax. Download 2010 tax forms Example. Download 2010 tax forms Rev. Download 2010 tax forms Charles Ashford received $40,000 in earnings for ministerial services consisting of a $28,000 salary for ministerial services performed as an employee, $2,000 for weddings and baptisms performed as a self-employed person, and a $10,000 tax-free parsonage allowance. Download 2010 tax forms He incurred $4,000 of unreimbursed expenses connected with his earnings for ministerial services. Download 2010 tax forms $3,500 of the $4,000 is for employee expenses related to his ministerial salary, and $500 is related to the weddings and baptisms he performed as a self-employed person. Download 2010 tax forms Rev. Download 2010 tax forms Ashford figures the nondeductible (tax-free) portion of expenses related to his ministerial salary as follows: ($10,000 ÷ $40,000) x $3,500 = $875   Rev. Download 2010 tax forms Ashford figures the nondeductible (tax-free) portion of expenses related to his wedding and baptism income as follows: ($10,000 ÷ $40,000) x $500 = $125 Required statement. Download 2010 tax forms   If you receive a tax-free rental or parsonage allowance and have ministerial expenses, attach a statement to your tax return. Download 2010 tax forms The statement must contain all of the following information. Download 2010 tax forms A list of each item of taxable ministerial income by source (such as wages, salary, weddings, baptisms, etc. Download 2010 tax forms ) plus the amount. Download 2010 tax forms A list of each item of tax-free ministerial income by source (parsonage allowance) plus the amount. Download 2010 tax forms A list of each item of otherwise deductible ministerial expenses plus the amount. Download 2010 tax forms How you figured the nondeductible part of your otherwise deductible expenses. Download 2010 tax forms A statement that the other deductions claimed on your tax return are not allocable to your tax-free income. Download 2010 tax forms   See the attachments prepared for the Comprehensive Example , later. Download 2010 tax forms Following the example, you will find blank worksheets for your own use. Download 2010 tax forms Health Insurance Costs of Self-Employed Ministers If you are self-employed, you may be able to deduct the amount you paid in 2013 for medical and dental insurance and qualified long-term care insurance for you, your spouse, and your dependents. Download 2010 tax forms If you qualify, you can take this deduction as an adjustment to income on Form 1040, line 29. Download 2010 tax forms See the Instructions for Form 1040 to figure your deduction. Download 2010 tax forms The following special rules apply to the self-employed health insurance deduction. Download 2010 tax forms You cannot take a medical expense deduction on Schedule A (Form 1040) for any expenses you claim for purposes of the self-employed health insurance deduction. Download 2010 tax forms You cannot take the deduction for any month you are eligible to participate in a subsidized plan of your (or your spouse's) employer. Download 2010 tax forms The deduction cannot exceed your net earnings from the business under which the insurance plan is established. Download 2010 tax forms Your net earnings under this rule do not include the income you earned as a common-law employee (discussed earlier) of a church. Download 2010 tax forms More information. Download 2010 tax forms   For more information about the self-employed health insurance deduction, see chapter 6 in Publication 535. Download 2010 tax forms Deduction for SE Tax You can deduct one-half of your SE tax in figuring adjusted gross income. Download 2010 tax forms This is an income tax deduction only, on Form 1040, line 27. Download 2010 tax forms Do not claim this deduction in figuring net earnings from self-employment subject to SE tax. Download 2010 tax forms Income Tax Withholding and Estimated Tax The federal income tax is a pay-as-you-go tax. Download 2010 tax forms You must pay the tax as you earn or receive income during the year. Download 2010 tax forms An employee usually has income tax withheld from his or her wages or salary. Download 2010 tax forms However, your salary is not subject to federal income tax withholding if both of the following conditions apply. Download 2010 tax forms You are a duly ordained, commissioned, or licensed minister, a member of a religious order (who has not taken a vow of poverty), or a Christian Science practitioner or reader. Download 2010 tax forms Your salary is for ministerial services (see Ministerial Services , earlier). Download 2010 tax forms If your salary is not subject to withholding, or if you do not pay enough tax through withholding, you may need to make estimated tax payments to avoid penalties for not paying enough tax as you earn your income. Download 2010 tax forms You generally must make estimated tax payments if you expect to owe taxes, including SE tax, of $1,000 or more, when you file your return. Download 2010 tax forms Determine your estimated tax by using the worksheets in Publication 505, Tax Withholding and Estimated Tax. Download 2010 tax forms Pay the entire estimated tax for 2014 or the first installment by April 15, 2014. Download 2010 tax forms See Form 1040-ES for the different payment methods. Download 2010 tax forms The April 15 date applies whether or not your tax home and your abode are outside the United States and Puerto Rico. Download 2010 tax forms For more information, see chapter 2 of Publication 505. Download 2010 tax forms If you perform your services as a common-law employee of the church and your salary is not subject to income tax withholding, you can enter into a voluntary withholding agreement with the church to cover any income and SE tax that may be due. Download 2010 tax forms Filing Your Return You must file an income tax return for 2013 if your gross income was at least the amount shown in the third column of Table 4 above. Download 2010 tax forms Table 4. Download 2010 tax forms 2013 Filing Requirements for Most Taxpayers IF your filing status is . Download 2010 tax forms . Download 2010 tax forms . Download 2010 tax forms AND at the end of 2013 you were* . Download 2010 tax forms . Download 2010 tax forms . Download 2010 tax forms THEN file a return if your gross income** was at least . Download 2010 tax forms . Download 2010 tax forms . Download 2010 tax forms single under age 65 65 or older   $10,000 $11,500   married filing jointly*** under 65 (both spouses) 65 or older (one spouse) 65 or older (both spouses)   $20,000  $21,200  $22,400   married filing separately any age   $3,900   head of household under 65 65 or older   $12,850 $14,350   qualifying widow(er) with dependent child under 65 65 or older   $16,100  $17,300   * If you were born on January 1, 1949, you are considered to be age 65 at the end of 2013. Download 2010 tax forms ** Gross income means all income you received in the form of money, goods, property, and services that is not exempt from tax, including any income from sources outside the United States or from the sale of your main home (even if you can exclude part or all of it). Download 2010 tax forms Do not include any social security benefits unless (a) you are married filing a separate return and you lived with your spouse at any time in 2013, or (b) one-half of your social security benefits plus your other gross income and any tax-exempt interest is more than $25,000 ($32,000 if married filing jointly). Download 2010 tax forms If (a) or (b) applies, see the instructions for Form 1040, lines 20a and 20b, to figure the taxable part of social security benefits you must include in gross income. Download 2010 tax forms Gross income includes gains, but not losses, reported on Form 8949 or Schedule D (Form 1040). Download 2010 tax forms Gross income from a business means, for example, the amount on Schedule C (Form 1040), line 7, or Schedule F (Form 1040), line 9. Download 2010 tax forms But, in figuring gross income, do not reduce your income by any losses, including any loss on Schedule C (Form 1040), line 7, or Schedule F (Form 1040), line 9. Download 2010 tax forms *** If you did not live with your spouse at the end of 2013 (or on the date your spouse died) and your gross income was at least $3,900, you must file a return regardless of your age. Download 2010 tax forms Additional requirements. Download 2010 tax forms   Even if your income was less than the amount shown in Table 4, you must file an income tax return on Form 1040, and attach a completed Schedule SE (Form 1040), if:    You are not exempt from SE tax, and you have net earnings from self-employment (discussed earlier under Self-Employment Tax: Figuring Net Earnings ) of $400 or more in the tax year, You are exempt from SE tax on earnings from ministerial services and you have $400 or more of other net earnings subject to SE tax, or You had wages of $108. Download 2010 tax forms 28 or more from an electing church or church-controlled organization (see Coverage of Religious Workers (Church Employees) , earlier, under Social Security Coverage). Download 2010 tax forms Self-employment tax. Download 2010 tax forms   If you are liable for SE tax, you must file Schedule SE (Form 1040) with your return. Download 2010 tax forms   If you filed Form 4361 and did not receive approval from the IRS, you must pay SE tax on your ministerial earnings, as explained earlier. Download 2010 tax forms You should report ministerial earnings and expenses from nonemployee ministerial services on Schedule C or C-EZ (Form 1040). Download 2010 tax forms You should then carry the net amount over to line 2 of Schedule SE (Form 1040), Section A or B. Download 2010 tax forms However, if you were a duly ordained minister who was an employee of a church and you must pay SE tax on the wages you earned for those services, do not report those wages on Schedule C or C-EZ (Form 1040). Download 2010 tax forms Instead, report those wages less any allowable expenses (including any unreimbursed employee business expenses), on line 2 of Schedule SE (Form 1040), Section A or B, and attach an explanation. Download 2010 tax forms Note. Download 2010 tax forms For income tax purposes, the unreimbursed employee business expenses that you incurred as an employee of the church and subtracted from your wages on line 2 of Schedule SE (Form 1040) are allowed only as an itemized deduction on Schedule A (Form 1040) if they exceed 2% of your adjusted gross income. Download 2010 tax forms You cannot deduct these expenses on Schedule C or C-EZ (Form 1040) as a trade or business expense. Download 2010 tax forms Exemption from SE tax. Download 2010 tax forms   If you filed Form 4361 and received IRS approval not to be taxed on your ministerial earnings, and you do not have any other income subject to SE tax, do not file Schedule SE (Form 1040). Download 2010 tax forms Instead, enter “Exempt—Form 4361” on the dotted line next to Form 1040, line 56. Download 2010 tax forms However, if you had net earnings from another trade or business of $400 or more subject to SE tax, see line A at the top of Schedule SE (Form 1040), Section B. Download 2010 tax forms    If you filed Form 4029 and received IRS approval not to be taxed on those earnings, and you do not have any other income subject to SE tax, do not file Schedule SE (Form 1040). Download 2010 tax forms Instead, enter “Exempt—Form 4029” on the dotted line next to Form 1040, line 56. Download 2010 tax forms More information. Download 2010 tax forms   For more information on filing your return, including when and where to file it, see the Instructions for Form 1040. Download 2010 tax forms Retirement Savings Arrangements Retirement savings arrangements are plans that offer you a tax-favored way to save for your retirement. Download 2010 tax forms You generally can deduct your contributions to the plan. Download 2010 tax forms Your contributions and the earnings on them are not taxed until they are distributed. Download 2010 tax forms Retirement plans for the self-employed. Download 2010 tax forms   To set up one of the following plans you must be self-employed. Download 2010 tax forms SEP (simplified employee pension) plan. Download 2010 tax forms SIMPLE (savings incentive match plan for employees) plan. Download 2010 tax forms Qualified retirement plan (also called a Keogh or H. Download 2010 tax forms R. Download 2010 tax forms 10 plan). Download 2010 tax forms   The common-law rules determine whether you are an employee or a self-employed person for purposes of setting up a retirement plan. Download 2010 tax forms See Employment status for other tax purposes under Coverage of Members of the Clergy, earlier. Download 2010 tax forms This result is true even if your compensation for ministerial services (defined earlier) is subject to SE tax. Download 2010 tax forms   For example, if a congregation pays you a salary for performing ministerial services and you are subject to the congregation's control, you generally are a common-law employee. Download 2010 tax forms You are not a self-employed person for purposes of setting up a retirement plan. Download 2010 tax forms This result is true even if your salary is subject to SE tax. Download 2010 tax forms   On the other hand, amounts received directly from members of the congregation, such as fees for performing marriages, baptisms, or other personal services that you report on Schedule C or C-EZ (Form 1040), are earnings from self-employment for all tax purposes. Download 2010 tax forms   For more information on establishing a SEP, SIMPLE, or qualified retirement plan, see Publication 560, Retirement Plans for Small Business (SEP, SIMPLE, and Qualified Plans). Download 2010 tax forms Individual retirement arrangements (IRAs). Download 2010 tax forms   The traditional IRA and the Roth IRA are two individual retirement arrangements you can use to save money for your retirement. Download 2010 tax forms Generally, your maximum contribution for 2013 to either of these plans (or to a combination of the two) is the smaller of your taxable compensation or $5,500 ($6,500 if you are age 50 or older). Download 2010 tax forms   However, your maximum contribution to a Roth IRA will be further reduced or eliminated if your adjusted gross income is above a certain amount. Download 2010 tax forms You cannot deduct Roth IRA contributions, but if you satisfy certain requirements, all earnings in the Roth IRA are tax free and neither your nondeductible contributions nor any earnings on them are taxable when distributed. Download 2010 tax forms   If you contribute to a traditional IRA, your contribution may be deductible. Download 2010 tax forms However, your deduction may be reduced or eliminated if you or your spouse is covered by an employer retirement plan (including, but not limited to, a SEP, SIMPLE, or qualified retirement plan). Download 2010 tax forms   For more information on IRAs, see Publication 590. Download 2010 tax forms Tax-sheltered annuity plans. Download 2010 tax forms   Church employees, members of religious orders, and duly ordained, commissioned, or licensed ministers working as ministers or chaplains can participate in tax-sheltered annuity (403(b)) plans. Download 2010 tax forms For more