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Free Ez Form

Free ez form 6. Free ez form   How To Get Tax Help Table of Contents Low Income Taxpayer Clinics Whether it's help with a tax issue, preparing your tax return or a need for a free publication or form, get the help you need the way you want it: online, use a smart phone, call or walk in to an IRS office or volunteer site near you. Free ez form Free help with your tax return. Free ez form   You can get free help preparing your return nationwide from IRS-certified volunteers. Free ez form The Volunteer Income Tax Assistance (VITA) program helps low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers. Free ez form The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Free ez form Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. Free ez form In addition, some VITA and TCE sites provide taxpayers the opportunity to prepare their own return with help from an IRS-certified volunteer. Free ez form To find the nearest VITA or TCE site, you can use the VITA Locator Tool on IRS. Free ez form gov, download the IRS2Go app, or call 1-800-906-9887. Free ez form   As part of the TCE program, AARP offers the Tax-Aide counseling program. Free ez form To find the nearest AARP Tax-Aide site, visit AARP's website at www. Free ez form aarp. Free ez form org/money/taxaide or call 1-888-227-7669. Free ez form For more information on these programs, go to IRS. Free ez form gov and enter “VITA” in the search box. Free ez form Internet. Free ez form    IRS. Free ez form gov and IRS2Go are ready when you are —24 hours a day, 7 days a week. Free ez form Download the free IRS2Go app from the iTunes app store or from Google Play. Free ez form Use it to check your refund status, order transcripts of your tax returns or tax account, watch the IRS YouTube channel, get IRS news as soon as it's released to the public, subscribe to filing season updates or daily tax tips, and follow the IRS Twitter news feed, @IRSnews, to get the latest federal tax news, including information about tax law changes and important IRS programs. Free ez form Check the status of your 2013 refund with the Where's My Refund? application on IRS. Free ez form gov or download the IRS2Go app and select the Refund Status option. Free ez form The IRS issues more than 9 out of 10 refunds in less than 21 days. Free ez form Using these applications, you can start checking on the status of your return within 24 hours after we receive your e-filed return or 4 weeks after you mail a paper return. Free ez form You will also be given a personalized refund date as soon as the IRS processes your tax return and approves your refund. Free ez form The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Free ez form Use the Interactive Tax Assistant (ITA) to research your tax questions. Free ez form No need to wait on the phone or stand in line. Free ez form The ITA is available 24 hours a day, 7 days a week, and provides you with a variety of tax information related to general filing topics, deductions, credits, and income. Free ez form When you reach the response screen, you can print the entire interview and the final response for your records. Free ez form New subject areas are added on a regular basis. Free ez form  Answers not provided through ITA may be found in Tax Trails, one of the Tax Topics on IRS. Free ez form gov which contain general individual and business tax information or by searching the IRS Tax Map, which includes an international subject index. Free ez form You can use the IRS Tax Map, to search publications and instructions by topic or keyword. Free ez form The IRS Tax Map integrates forms and publications into one research tool and provides single-point access to tax law information by subject. Free ez form When the user searches the IRS Tax Map, they will be provided with links to related content in existing IRS publications, forms and instructions, questions and answers, and Tax Topics. Free ez form Coming this filing season, you can immediately view and print for free all 5 types of individual federal tax transcripts (tax returns, tax account, record of account, wage and income statement, and certification of non-filing) using Get Transcript. Free ez form You can also ask the IRS to mail a return or an account transcript to you. Free ez form Only the mail option is available by choosing the Tax Records option on the IRS2Go app by selecting Mail Transcript on IRS. Free ez form gov or by calling 1-800-908-9946. Free ez form Tax return and tax account transcripts are generally available for the current year and the past three years. Free ez form Determine if you are eligible for the EITC and estimate the amount of the credit with the Earned Income Tax Credit (EITC) Assistant. Free ez form Visit Understanding Your IRS Notice or Letter to get answers to questions about a notice or letter you received from the IRS. Free ez form If you received the First Time Homebuyer Credit, you can use the First Time Homebuyer Credit Account Look-up tool for information on your repayments and account balance. Free ez form Check the status of your amended return using Where's My Amended Return? Go to IRS. Free ez form gov and enter Where's My Amended Return? in the search box. Free ez form You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. Free ez form It can take up to 3 weeks from the date you mailed it to show up in our system. Free ez form Make a payment using one of several safe and convenient electronic payment options available on IRS. Free ez form gov. Free ez form Select the Payment tab on the front page of IRS. Free ez form gov for more information. Free ez form Determine if you are eligible and apply for an online payment agreement, if you owe more tax than you can pay today. Free ez form Figure your income tax withholding with the IRS Withholding Calculator on IRS. Free ez form gov. Free ez form Use it if you've had too much or too little withheld, your personal situation has changed, you're starting a new job or you just want to see if you're having the right amount withheld. Free ez form Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. Free ez form gov. Free ez form Request an Electronic Filing PIN by going to IRS. Free ez form gov and entering Electronic Filing PIN in the search box. Free ez form Download forms, instructions and publications, including accessible versions for people with disabilities. Free ez form Locate the nearest Taxpayer Assistance Center (TAC) using the Office Locator tool on IRS. Free ez form gov, or choose the Contact Us option on the IRS2Go app and search Local Offices. Free ez form An employee can answer questions about your tax account or help you set up a payment plan. Free ez form Before you visit, check the Office Locator on IRS. Free ez form gov, or Local Offices under Contact Us on IRS2Go to confirm the address, phone number, days and hours of operation, and the services provided. Free ez form If you have a special need, such as a disability, you can request an appointment. Free ez form Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. Free ez form Apply for an Employer Identification Number (EIN). Free ez form Go to IRS. Free ez form gov and enter Apply for an EIN in the search box. Free ez form Read the Internal Revenue Code, regulations, or other official guidance. Free ez form Read Internal Revenue Bulletins. Free ez form Sign up to receive local and national tax news and more by email. Free ez form Just click on “subscriptions” above the search box on IRS. Free ez form gov and choose from a variety of options. Free ez form Phone. Free ez form    You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. Free ez form Download the free IRS2Go app from the iTunes app store or from Google Play. Free ez form Call to locate the nearest volunteer help site, 1-800-906-9887 or you can use the VITA Locator Tool on IRS. Free ez form gov, or download the IRS2Go app. Free ez form Low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. Free ez form The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Free ez form Most VITA and TCE sites offer free electronic filing. Free ez form Some VITA and TCE sites provide IRS-certified volunteers who can help prepare your tax return. Free ez form Through the TCE program, AARP offers the Tax-Aide counseling program; call 1-888-227-7669 to find the nearest Tax-Aide location. Free ez form Call the automated Where's My Refund? information hotline to check the status of your 2013 refund 24 hours a day, 7 days a week at 1-800-829-1954. Free ez form If you e-file, you can start checking on the status of your return within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. Free ez form The IRS issues more than 9 out of 10 refunds in less than 21 days. Free ez form Where's My Refund? will give you a personalized refund date as soon as the IRS processes your tax return and approves your refund. Free ez form Before you call this automated hotline, have your 2013 tax return handy so you can enter your social security number, your filing status, and the exact whole dollar amount of your refund. Free ez form The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Free ez form Note, the above information is for our automated hotline. Free ez form Our live phone and walk-in assistors can research the status of your refund only if it's been 21 days or more since you filed electronically or more than 6 weeks since you mailed your paper return. Free ez form Call the Amended Return Hotline, 1-866-464-2050, to check the status of your amended return. Free ez form You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. Free ez form It can take up to 3 weeks from the date you mailed it to show up in our system. Free ez form Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, publications, and prior-year forms and instructions (limited to 5 years). Free ez form You should receive your order within 10 business days. Free ez form Call TeleTax, 1-800-829-4477, to listen to pre-recorded messages covering general and business tax information. Free ez form If, between January and April 15, you still have questions about the Form 1040, 1040A, or 1040EZ (like filing requirements, dependents, credits, Schedule D, pensions and IRAs or self-employment taxes), call 1-800-829-1040. Free ez form Call using TTY/TDD equipment, 1-800-829-4059 to ask tax questions or order forms and publications. Free ez form The TTY/TDD telephone number is for people who are deaf, hard of hearing, or have a speech disability. Free ez form These individuals can also contact the IRS through relay services such as the Federal Relay Service. Free ez form Walk-in. Free ez form   You can find a selection of forms, publications and services — in-person. Free ez form Products. Free ez form You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Free ez form Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. Free ez form Services. Free ez form You can walk in to your local TAC for face-to-face tax help. Free ez form An employee can answer questions about your tax account or help you set up a payment plan. Free ez form Before visiting, use the Office Locator tool on IRS. Free ez form gov, or choose the Contact Us option on the IRS2Go app and search Local Offices for days and hours of operation, and services provided. Free ez form Mail. Free ez form   You can send your order for forms, instructions, and publications to the address below. Free ez form You should receive a response within 10 business days after your request is received. Free ez form Internal Revenue Service 1201 N. Free ez form Mitsubishi Motorway Bloomington, IL 61705-6613    The Taxpayer Advocate Service Is Here to Help You. Free ez form The Taxpayer Advocate Service (TAS) is your voice at the IRS. Free ez form Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. Free ez form   What can TAS do for you? We can offer you free help with IRS problems that you can't resolve on your own. Free ez form We know this process can be confusing, but the worst thing you can do is nothing at all! TAS can help if you can't resolve your tax problem and: Your problem is causing financial difficulties for you, your family, or your business. Free ez form You face (or your business is facing) an immediate threat of adverse action. Free ez form You've tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised. Free ez form   If you qualify for our help, you'll be assigned to one advocate who'll be with you at every turn and will do everything possible to resolve your problem. Free ez form Here's why we can help: TAS is an independent organization within the IRS. Free ez form Our advocates know how to work with the IRS. Free ez form Our services are free and tailored to meet your needs. Free ez form We have offices in every state, the District of Columbia, and Puerto Rico. Free ez form   How can you reach us? If you think TAS can help you, call your local advocate, whose number is in your local directory and at Taxpayer Advocate, or call us toll-free at 1-877-777-4778. Free ez form   How else does TAS help taxpayers?  TAS also works to resolve large-scale, systemic problems that affect many taxpayers. Free ez form If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System. Free ez form Low Income Taxpayer Clinics Low Income Taxpayer Clinics (LITCs) serve individuals whose income is below a certain level and need to resolve tax problems such as audits, appeals and tax collection disputes. Free ez form Some clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. Free ez form Visit Taxpayer Advocate or see IRS Publication 4134, Low Income Taxpayer Clinic List. Free ez form Prev  Up  Next   Home   More Online Publications
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Understanding your CP504B Notice

You have an unpaid amount due on your account. If you do not pay the amount due immediately, the
IRS will seize (levy) certain property or rights to property and apply it to pay the
amount you owe.

Printable samples of this notice (PDF)

Tax publications you may find useful

How to get help

Calling the 1-800 number listed on the top right corner of your notice is the fastest way to get your questions answered.

You can also authorize someone (such as an accountant) to contact the IRS on your behalf using this Power of Attorney and Declaration of Representative (Form 2848).

Or you may qualify for help from a Low Income Taxpayer Clinic.
 


What you need to do

  • Read your notice carefully — it explains your due date, amount due, and payment options.
  • Make your payment by your due date. Go to the payments page to find out more about your payment options.

You may want to...


Answers to Common Questions

What is the notice telling me?
This notice is telling you that we intend to issue a levy against certain property or rights to property because you still have a balance due on one of your tax accounts. You must pay this amount immediately to avoid this. It is also telling you that we will begin searching for other assets on which to issue a levy. We may also file a Federal Tax Lien, if we have not already done so.

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

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

How much time do I have?
You should pay your balance due by the due date shown on your notice.

What happens if I don't pay or contact the IRS?
If you don't pay the amount due, we may send you a notice giving you a right to a hearing before the IRS Office of Appeals if you have not already received such a notice. We may then seize ("levy") your property or rights to property. Property includes:

  • Wages, real estate commissions, and other income
  • Bank accounts
  • Business assets
  • Personal assets (including your car and home)
  • Social Security benefits

This is your notice of intent to levy as required by Internal Revenue Code section 6331(d).

If you don't pay the amount due or call us to make payment arrangements, we can file a Notice of Federal Tax Lien on your property at any time, if we haven’t already done so.

If the lien is in place, you may find it difficult to sell or borrow against your property. The tax lien would also appear on your credit report ― which may harm your credit rating ― and your creditors would also be publicly notified that the IRS has priority to seize your property.

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

What if I don't agree or have already taken corrective action?
If you do not agree with this notice, contact us immediately at the number printed at the top of the notice. We will do our best to help you. If you have already paid this liability or arranged to pay it with an installment agreement, you should still call us at the number printed at the top of the notice to make sure your account reflects this.

Page Last Reviewed or Updated: 05-Mar-2014

The Free Ez Form

Free ez form 2. Free ez form   Employees' Pay Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Tests for Deducting PayTest 1—Reasonableness Test 2—For Services Performed Kinds of PayAwards Bonuses Education Expenses Fringe Benefits Loans or Advances Property Reimbursements for Business Expenses Sick and Vacation Pay Introduction You can generally deduct the amount you pay your employees for the services they perform. Free ez form The pay may be in cash, property, or services. Free ez form It may include wages, salaries, bonuses, commissions, or other non-cash compensation such as vacation allowances and fringe benefits. Free ez form For information about deducting employment taxes, see chapter 5. Free ez form You can claim employment credits, such as the following, if you hire individuals who meet certain requirements. Free ez form Empowerment zone employment credit (Form 8844). Free ez form Indian employment credit (Form 8845). Free ez form Work opportunity credit (Form 5884). Free ez form Credit for employer differential wage payments (Form 8932). Free ez form Reduce your deduction for employee wages by the amount of employment credits you claim. Free ez form For more information about these credits, see the form on which the credit is claimed. Free ez form Topics - This chapter discusses: Tests for deducting pay Kinds of pay Useful Items - You may want to see: Publication 15 (Circular E), Employer's Tax Guide 15-A Employer's Supplemental Tax Guide 15-B Employer's Tax Guide to Fringe Benefits See chapter 12 for information about getting publications and forms. Free ez form Tests for Deducting Pay To be deductible, your employees' pay must be an ordinary and necessary business expense and you must pay or incur it. Free ez form These and other requirements that apply to all business expenses are explained in chapter 1. Free ez form In addition, the pay must meet both of the following tests. Free ez form Test 1. Free ez form It must be reasonable. Free ez form Test 2. Free ez form It must be for services performed. Free ez form The form or method of figuring the pay does not affect its deductibility. Free ez form For example, bonuses and commissions based on sales or earnings, and paid under an agreement made before the services were performed, are both deductible. Free ez form Test 1—Reasonableness You must be able to prove that the pay is reasonable. Free ez form Whether the pay is reasonable depends on the circumstances that existed when you contracted for the services, not those that exist when reasonableness is questioned. Free ez form If the pay is excessive, the excess pay is disallowed as a deduction. Free ez form Factors to consider. Free ez form   Determine the reasonableness of pay by the facts and circumstances. Free ez form Generally, reasonable pay is the amount that a similar business would pay for the same or similar services. Free ez form   To determine if pay is reasonable, also consider the following items and any other pertinent facts. Free ez form The duties performed by the employee. Free ez form The volume of business handled. Free ez form The character and amount of responsibility. Free ez form The complexities of your business. Free ez form The amount of time required. Free ez form The cost of living in the locality. Free ez form The ability and achievements of the individual employee performing the service. Free ez form The pay compared with the gross and net income of the business, as well as with distributions to shareholders if the business is a corporation. Free ez form Your policy regarding pay for all your employees. Free ez form The history of pay for each employee. Free ez form Test 2—For Services Performed You must be able to prove the payment was made for services actually performed. Free ez form Employee-shareholder salaries. Free ez form   If a corporation pays an employee who is also a shareholder a salary that is unreasonably high considering the services actually performed, the excessive part of the salary may be treated as a constructive dividend to the employee-shareholder. Free ez form The excessive part of the salary would not be allowed as a salary deduction by the corporation. Free ez form For more information on corporate distributions to shareholders, see Publication 542, Corporations. Free ez form Kinds of Pay Some of the ways you may provide pay to your employees in addition to regular wages or salaries are discussed next. Free ez form For specialized and detailed information on employees' pay and the employment tax treatment of employees' pay, see Publications 15, 15-A, and 15-B. Free ez form Awards You can generally deduct amounts you pay to your employees as awards, whether paid in cash or property. Free ez form If you give property to an employee as an employee achievement award, your deduction may be limited. Free ez form Achievement awards. Free ez form   An achievement award is an item of tangible personal property that meets all the following requirements. Free ez form It is given to an employee for length of service or safety achievement. Free ez form It is awarded as part of a meaningful presentation. Free ez form It is awarded under conditions and circumstances that do not create a significant likelihood of disguised pay. Free ez form Length-of-service award. Free ez form    An award will qualify as a length-of-service award only if either of the following applies. Free ez form The employee receives the award after his or her first 5 years of employment. Free ez form The employee did not receive another length-of-service award (other than one of very small value) during the same year or in any of the prior 4 years. Free ez form Safety achievement award. Free ez form    An award for safety achievement will qualify as an achievement award unless one of the following applies. Free ez form It is given to a manager, administrator, clerical employee, or other professional employee. Free ez form During the tax year, more than 10% of your employees, excluding those listed in (1), have already received a safety achievement award (other than one of very small value). Free ez form Deduction limit. Free ez form   Your deduction for the cost of employee achievement awards given to any one employee during the tax year is limited to the following. Free ez form $400 for awards that are not qualified plan awards. Free ez form $1,600 for all awards, whether or not qualified plan awards. Free ez form   A qualified plan award is an achievement award given as part of an established written plan or program that does not favor highly compensated employees as to eligibility or benefits. Free ez form   A highly compensated employee is an employee who meets either of the following tests. Free ez form The employee was a 5% owner at any time during the year or the preceding year. Free ez form The employee received more than $115,000 in pay for the preceding year. Free ez form You can choose to ignore test (2) if the employee was not also in the top 20% of employees ranked by pay for the preceding year. Free ez form   An award is not a qualified plan award if the average cost of all the employee achievement awards given during the tax year (that would be qualified plan awards except for this limit) is more than $400. Free ez form To figure this average cost, ignore awards of nominal value. Free ez form Deduct achievement awards as a nonwage business expense on your return or business schedule. Free ez form You may not owe employment taxes on the value of some achievement awards you provide to an employee. Free ez form See Publication 15-B. Free ez form Bonuses You can generally deduct a bonus paid to an employee if you intended the bonus as additional pay for services, not as a gift, and the services were performed. Free ez form However, the total bonuses, salaries, and other pay must be reasonable for the services performed. Free ez form If the bonus is paid in property, see Property , later. Free ez form Gifts of nominal value. Free ez form    If, to promote employee goodwill, you distribute food or merchandise of nominal value to your employees at holidays, you can deduct the cost of these items as a nonwage business expense. Free ez form Your deduction for de minimis gifts of food or drink are not subject to the 50% deduction limit that generally applies to meals. Free ez form For more information on this deduction limit, see Meals and lodging , later. Free ez form Education Expenses If you pay or reimburse education expenses for an employee, you can deduct the payments if they are part of a qualified educational assistance program. Free ez form Deduct them on the “Employee benefit programs” or other appropriate line of your tax return. Free ez form For information on educational assistance programs, see Educational Assistance in section 2 of Publication 15-B. Free ez form Fringe Benefits A fringe benefit is a form of pay for the performance of services. Free ez form You can generally deduct the cost of fringe benefits. Free ez form You may be able to exclude all or part of the value of some fringe benefits from your employees' pay. Free ez form You also may not owe employment taxes on the value of the fringe benefits. Free ez form See Table 2-1, Special Rules for Various Types of Fringe Benefits, in Publication 15-B for details. Free ez form Your deduction for the cost of fringe benefits for activities generally considered entertainment, amusement, or recreation, or for a facility used in connection with such an activity (for example, a company aircraft) for certain officers, directors, and more-than-10% shareholders is limited. Free ez form Certain fringe benefits are discussed next. Free ez form See Publication 15-B for more details on these and other fringe benefits. Free ez form Meals and lodging. Free ez form   You can usually deduct the cost of furnishing meals and lodging to your employees. Free ez form Deduct the cost in whatever category the expense falls. Free ez form For example, if you operate a restaurant, deduct the cost of the meals you furnish to employees as part of the cost of goods sold. Free ez form If you operate a nursing home, motel, or rental property, deduct the cost of furnishing lodging to an employee as expenses for utilities, linen service, salaries, depreciation, etc. Free ez form Deduction limit on meals. Free ez form   You can generally deduct only 50% of the cost of furnishing meals to your employees. Free ez form However, you can deduct the full cost of the following meals. Free ez form Meals whose value you include in an employee's wages. Free ez form Meals that qualify as a de minimis fringe benefit as discussed in section 2 of Publication 15-B. Free ez form This generally includes meals you furnish to employees at your place of business if more than half of these employees are provided the meals for your convenience. Free ez form Meals you furnish to your employees at the work site when you operate a restaurant or catering service. Free ez form Meals you furnish to your employees as part of the expense of providing recreational or social activities, such as a company picnic. Free ez form Meals you are required by federal law to furnish to crew members of certain commercial vessels (or would be required to furnish if the vessels were operated at sea). Free ez form This does not include meals you furnish on vessels primarily providing luxury water transportation. Free ez form Meals you furnish on an oil or gas platform or drilling rig located offshore or in Alaska. Free ez form This includes meals you furnish at a support camp that is near and integral to an oil or gas drilling rig located in Alaska. Free ez form Employee benefit programs. Free ez form   Employee benefit programs include the following. Free ez form Accident and health plans. Free ez form Adoption assistance. Free ez form Cafeteria plans. Free ez form Dependent care assistance. Free ez form Education assistance. Free ez form Life insurance coverage. Free ez form Welfare benefit funds. Free ez form   You can generally deduct amounts you spend on employee benefit programs on the applicable line of your tax return. Free ez form For example, if you provide dependent care by operating a dependent care facility for your employees, deduct your costs in whatever categories they fall (utilities, salaries, etc. Free ez form ). Free ez form Life insurance coverage. Free ez form   You cannot deduct the cost of life insurance coverage for you, an employee, or any person with a financial interest in your business, if you are directly or indirectly the beneficiary of the policy. Free ez form See Regulations section 1. Free ez form 264-1 for more information. Free ez form Welfare benefit funds. Free ez form   A welfare benefit fund is a funded plan (or a funded arrangement having the effect of a plan) that provides welfare benefits to your employees, independent contractors, or their beneficiaries. Free ez form Welfare benefits are any benefits other than deferred compensation or transfers of restricted property. Free ez form   Your deduction for contributions to a welfare benefit fund is limited to the fund's qualified cost for the tax year. Free ez form If your contributions to the fund are more than its qualified cost, carry the excess over to the next tax year. Free ez form   Generally, the fund's “qualified cost” is the total of the following amounts, reduced by the after-tax income of the fund. Free ez form The cost you would have been able to deduct using the cash method of accounting if you had paid for the benefits directly. Free ez form The contributions added to a reserve account that are needed to fund claims incurred but not paid as of the end of the year. Free ez form These claims can be for supplemental unemployment benefits, severance pay, or disability, medical, or life insurance benefits. Free ez form   For more information, see sections 419(c) and 419A of the Internal Revenue Code and the related regulations. Free ez form Loans or Advances You generally can deduct as wages an advance you make to an employee for services performed if you do not expect the employee to repay the advance. Free ez form However, if the employee performs no services, treat the amount you advanced as a loan. Free ez form If the employee does not repay the loan, treat it as income to the employee. Free ez form Below-market interest rate loans. Free ez form   On certain loans you make to an employee or shareholder, you are treated as having received interest income and as having paid compensation or dividends equal to that interest. Free ez form See Below-Market Loans in chapter 4. Free ez form Property If you transfer property (including your company's stock) to an employee as payment for services, you can generally deduct it as wages. Free ez form The amount you can deduct is the property's fair market value on the date of the transfer less any amount the employee paid for the property. Free ez form You can claim the deduction only for the tax year in which your employee includes the property's value in income. Free ez form Your employee is deemed to have included the value in income if you report it on Form W-2, Wage and Tax Statement, in a timely manner. Free ez form You treat the deductible amount as received in exchange for the property, and you must recognize any gain or loss realized on the transfer, unless it is the company's stock transferred as payment for services. Free ez form Your gain or loss is the difference between the fair market value of the property and its adjusted basis on the date of transfer. Free ez form These rules also apply to property transferred to an independent contractor for services, generally reported on Form 1099-MISC, Miscellaneous Income. Free ez form Restricted property. Free ez form   If the property you transfer for services is subject to restrictions that affect its value, you generally cannot deduct it and do not report gain or loss until it is substantially vested in the recipient. Free ez form However, if the recipient pays for the property, you must report any gain at the time of the transfer up to the amount paid. Free ez form    “Substantially vested” means the property is not subject to a substantial risk of forfeiture. Free ez form This means that the recipient is not likely to have to give up his or her rights in the property in the future. Free ez form Reimbursements for Business Expenses You can generally deduct the amount you pay or reimburse employees for business expenses incurred for your business. Free ez form However, your deduction may be limited. Free ez form If you make the payment under an accountable plan, deduct it in the category of the expense paid. Free ez form For example, if you pay an employee for travel expenses incurred on your behalf, deduct this payment as a travel expense. Free ez form If you make the payment under a nonaccountable plan, deduct it as wages and include it in the employee's Form W-2. Free ez form See Reimbursement of Travel, Meals, and Entertainment in chapter 11 for more information about deducting reimbursements and an explanation of accountable and nonaccountable plans. Free ez form Sick and Vacation Pay Sick pay. Free ez form   You can deduct amounts you pay to your employees for sickness and injury, including lump-sum amounts, as wages. Free ez form However, your deduction is limited to amounts not compensated by insurance or other means. Free ez form Vacation pay. Free ez form   Vacation pay is an employee benefit. Free ez form It includes amounts paid for unused vacation leave. Free ez form You can deduct vacation pay only in the tax year in which the employee actually receives it. Free ez form This rule applies regardless of whether you use the cash or accrual method of accounting. Free ez form Prev  Up  Next   Home   More Online Publications