File your Taxes for Free!
  • Get your maximum refund*
  • 100% accurate calculations guaranteed*

TurboTax Federal Free Edition - File Taxes Online

Don't let filing your taxes get you down! We'll help make it as easy as possible. With e-file and direct deposit, there's no faster way to get your refund!

Approved TurboTax Affiliate Site. TurboTax and TurboTax Online, among others, are registered trademarks and/or service marks of Intuit Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.


© 2012 - 2018 All rights reserved.

This is an Approved TurboTax Affiliate site. TurboTax and TurboTax Online, among other are registered trademarks and/or service marks of Intuit, Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.
When discussing "Free e-file", note that state e-file is an additional fee. E-file fees do not apply to New York state returns. Prices are subject to change without notice. E-file and get your refund faster
*If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
*Maximum Refund Guarantee - or Your Money Back: If you get a larger refund or smaller tax due from another tax preparation method, we'll refund the applicable TurboTax federal and/or state purchase price paid. TurboTax Federal Free Edition customers are entitled to payment of $14.99 and a refund of your state purchase price paid. Claims must be submitted within sixty (60) days of your TurboTax filing date and no later than 6/15/14. E-file, Audit Defense, Professional Review, Refund Transfer and technical support fees are excluded. This guarantee cannot be combined with the TurboTax Satisfaction (Easy) Guarantee. *We're so confident your return will be done right, we guarantee it. Accurate calculations guaranteed. If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
https://turbotax.intuit.com/corp/guarantees.jsp

Free H&r Block Military

File 2012 Taxes Tax PreparerFederal Income Tax ExtensionHow To Amend A 2010 Tax ReturnHow To File A Tax Return For 20121040 Es Tax FormsQuicktaxWhen Can I File An Amended Tax Return For 2013File 2012 Tax Return OnlineHow To Do 2012 Tax Return1040ez State Tax FormFree Federal And State Tax Preparation10ezHr Block Free Tax FilingCan You File A 1040x OnlineFree State Tax E FileState Income Tax Return1040 Ez Online FilingState Tax Filing1040ez1040aFree Military Tax FilingHow To File 2010 Tax ReturnHow To File 2009 Taxes In 20131040ez Form InstructionsMy Free Taxes.comWhat If I Did Not File 2011 TaxesMypay DfasFiling Late Taxes For 2012Do Students Need To File TaxesForm 1040ez 2012 InstructionsAarp Tax Help LocationsWhere Do I Get 2012 Tax Forms1040x Filing2012 Tax Amendment FormFree Taxes OnlineAmend My 2012 Tax ReturnFile My 2011 Taxes Free1040 Form2012 Schedule A Tax FormFile 2011 Taxes Free Online

Free H&r Block Military

Free h&r block military Publication 3920 - Main Contents Table of Contents Tax ForgivenessYears Eligible for Tax Forgiveness Amount of Tax Forgiven Refund of Taxes Paid How To Claim Tax Forgiveness Payments to SurvivorsSeptember 11th Victim Compensation Fund of 2001 Qualified Disaster Relief Payments Disability Payments Death Benefits Canceled Debt Payments to Survivors of Public Safety Officers Postponed Tax DeadlinesCovered area. Free h&r block military Disaster Area Losses Estate Tax Reduction Structured Settlement Factoring Transactions Illustrated Worksheets B and C Additional Worksheets How To Get Tax Help Tax Forgiveness The IRS will forgive the federal income tax liabilities of decedents who died as a result of the Oklahoma City attack, September 11 attacks, and anthrax attacks. Free h&r block military Income tax is forgiven for these decedents whether they were killed in an attack or in rescue or recovery operations. Free h&r block military Any forgiven tax liability owed to the IRS will not have to be paid. Free h&r block military Any forgiven tax liability that has already been paid will be refunded. Free h&r block military (See Refund of Taxes Paid, later. Free h&r block military ) To determine the amount of tax to be forgiven, read Years Eligible for Tax Forgiveness first. Free h&r block military Then read Amount of Tax Forgiven. Free h&r block military Decedents whose total forgiven tax liability for all eligible years is less than $10,000 are entitled to $10,000 minimum relief. Free h&r block military Even decedents who were not required to file tax returns for the eligible tax years are entitled to $10,000 minimum relief. Free h&r block military See Minimum Amount of Relief later under Amount of Tax Forgiven. Free h&r block military Years Eligible for Tax Forgiveness The following paragraphs explain which years are eligible for tax forgiveness. Free h&r block military Oklahoma City attack. Free h&r block military   For those who died from this attack, income tax is forgiven for 1994 and all later years up to and including the year of death. Free h&r block military Example 1. Free h&r block military A man was killed in the bombing of the federal building in Oklahoma City on April 19, 1995. Free h&r block military His income tax is forgiven for 1994 and 1995. Free h&r block military Example 2. Free h&r block military A woman was wounded while walking outside the federal building in Oklahoma City on April 19, 1995. Free h&r block military She subsequently died of her wounds in 1996. Free h&r block military Her income tax is forgiven for 1994, 1995, and 1996. Free h&r block military September 11 attacks and anthrax attacks. Free h&r block military   For those who die from these attacks, income tax is forgiven for 2000 and all later years up to and including the year of death. Free h&r block military Example 1. Free h&r block military A Pentagon employee died in the September 11 attack. Free h&r block military Her income tax is forgiven for 2000 and 2001. Free h&r block military Example 2. Free h&r block military A visitor to the World Trade Center died in 2002 of wounds he sustained in the September 11 attack. Free h&r block military His income tax liability is forgiven for 2000, 2001, and 2002. Free h&r block military Amount of Tax Forgiven The IRS will forgive the decedent's income tax liability for all years eligible for tax forgiveness. Free h&r block military On a joint return, only the decedent's part of the joint income tax liability is eligible for forgiveness. Free h&r block military To figure the tax to be forgiven, use the following worksheets. Free h&r block military Use Worksheet A for any eligible year the decedent filed a return as single, married filing separately, head of household, or qualifying widow(er). Free h&r block military Use Worksheet B for any eligible year the decedent filed a joint return. Free h&r block military See the illustrated Worksheet B near the end of this publication. Free h&r block military Do not complete Worksheet A or B if the decedent was not required to file tax returns for the eligible tax years. Free h&r block military Instead, complete Worksheet C and file a return for the decedent's last tax year. Free h&r block military See Minimum Amount of Relief, later. Free h&r block military If you need assistance, call the IRS at 1–866–562–5227 Monday through Friday during the following times. Free h&r block military In English–7 a. Free h&r block military m. Free h&r block military to 10 p. Free h&r block military m. Free h&r block military local time. Free h&r block military In Spanish–8 a. Free h&r block military m. Free h&r block military to 9:30 p. Free h&r block military m. Free h&r block military local time. Free h&r block military Both spouses died. Free h&r block military   If both spouses died as a result of a terrorist attack and they filed a joint return for an eligible tax year, fill out Worksheet B for each spouse for that year. Free h&r block military Do this to determine if each spouse qualifies for the minimum relief of $10,000 (discussed later under Minimum Amount of Relief). Free h&r block military If you are certain that neither spouse's total forgiven tax liability for all eligible years is less than $10,000, skip Worksheet B. Free h&r block military However, attach a computation of the forgiven tax liability to the final income tax return or amended tax return for each eligible year. Free h&r block military The forgiven tax liability is the total tax shown on the joint return minus the taxes listed in the instructions for line 4 of Worksheet B. Free h&r block military Residents of community property states. Free h&r block military   If the decedent was domiciled in a community property state and the spouse reported half the community income on a separate return, the surviving spouse can get a refund of taxes paid on his or her share of the decedent's income for the eligible years. Free h&r block military Also, all of the decedent's income taxes paid for the eligible years will be refunded to either the executor or administrator of the estate, or to the surviving spouse if there is no legal representative. Free h&r block military Worksheet B. Free h&r block military Figuring the Tax To Be Forgiven (For Decedents Who Filed a Joint Return)       (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for forgiveness. Free h&r block military 1       2 Enter the decedent's taxable income. Free h&r block military Figure taxable income as if a separate return had been filed. Free h&r block military See the instructions. Free h&r block military 2       3 Enter the decedent's total tax. Free h&r block military See the instructions. Free h&r block military 3       4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. Free h&r block military See the instructions. Free h&r block military 4       5 Subtract line 4 from line 3. Free h&r block military 5       6 Enter the surviving spouse's taxable income. Free h&r block military Figure taxable income as if a separate return had been filed. Free h&r block military See the instructions. Free h&r block military 6       7 Enter the surviving spouse's total tax. Free h&r block military See the instructions. Free h&r block military 7       8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. Free h&r block military 8       9 Subtract line 8 from line 7. Free h&r block military 9       10 Add lines 5 and 9. Free h&r block military 10       11 Enter the total tax from the joint return. Free h&r block military See Table 1 on page 5 for the line number for years before 2002. Free h&r block military 11       12 Add lines 4 and 8. Free h&r block military 12       13 Subtract line 12 from line 11. Free h&r block military 13       14 Divide line 5 by line 10. Free h&r block military Enter the result as a decimal. Free h&r block military 14       15 Tax to be forgiven. Free h&r block military Multiply line 13 by line 14 and enter the result. Free h&r block military 15       Note. Free h&r block military If the total of columns (A), (B), and (C) of line 15 (including any amounts shown on line 5 of Worksheet A) is less than $10,000, also complete Worksheet C. Free h&r block military Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Free h&r block military If filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of line 10 as a decrease in tax. Free h&r block military The IRS will determine the amount to be refunded. Free h&r block military Worksheet B. Free h&r block military Figuring the Tax To Be Forgiven (For Decedents Who Filed a Joint Return)       (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for forgiveness. Free h&r block military 1       2 Enter the decedent's taxable income. Free h&r block military Figure taxable income as if a separate return had been filed. Free h&r block military See the instructions. Free h&r block military 2       3 Enter the decedent's total tax. Free h&r block military See the instructions. Free h&r block military 3       4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. Free h&r block military See the instructions. Free h&r block military 4       5 Subtract line 4 from line 3. Free h&r block military 5       6 Enter the surviving spouse's taxable income. Free h&r block military Figure taxable income as if a separate return had been filed. Free h&r block military See the instructions. Free h&r block military 6       7 Enter the surviving spouse's total tax. Free h&r block military See the instructions. Free h&r block military 7       8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. Free h&r block military 8       9 Subtract line 8 from line 7. Free h&r block military 9       10 Add lines 5 and 9. Free h&r block military 10       11 Enter the total tax from the joint return. Free h&r block military See Table 1 on page 5 for the line number for years before 2002. Free h&r block military 11       12 Add lines 4 and 8. Free h&r block military 12       13 Subtract line 12 from line 11. Free h&r block military 13       14 Divide line 5 by line 10. Free h&r block military Enter the result as a decimal. Free h&r block military 14       15 Tax to be forgiven. Free h&r block military Multiply line 13 by line 14 and enter the result. Free h&r block military 15       Note. Free h&r block military If the total of columns (A), (B), and (C) of line 15 (including any amounts shown on line 5 of Worksheet A) is less than $10,000, also complete Worksheet C. Free h&r block military Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Free h&r block military If filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of line 10 as a decrease in tax. Free h&r block military The IRS will determine the amount to be refunded. Free h&r block military Instructions for Worksheet B Table 1. Free h&r block military Total Tax Line on Decedent's Return Note: Use this table to find the total tax line on the decedent's income tax return. Free h&r block military * Form 1994 1995 1996 2000 2001 1040 Line 53 Line 54 Line 51 Line 57 Line 58 1040A Line 27 Line 28 Line 28 Line 35 File Form 1040 1040EZ Line 9 Line 10 Line 10 Line 10 TeleFile Tax Record ** Line E Line J Line K 1040NR Line 51 Line 52 Line 49 Line 54 Line 54 1040NR–EZ N/A Line 17 Line 17 Line 18 File Form 1040NR * Line numbers for the 2002 forms were not available when this publication went to print. Free h&r block military ** File Form 4506 to get a transcript of the decedent's account. Free h&r block military Table 1. Free h&r block military Total Tax Line on Decedent's Return Note: Use this table to find the total tax line on the decedent's income tax return. Free h&r block military * Form 1994 1995 1996 2000 2001 1040 Line 53 Line 54 Line 51 Line 57 Line 58 1040A Line 27 Line 28 Line 28 Line 35 File Form 1040 1040EZ Line 9 Line 10 Line 10 Line 10 TeleFile Tax Record ** Line E Line J Line K 1040NR Line 51 Line 52 Line 49 Line 54 Line 54 1040NR–EZ N/A Line 17 Line 17 Line 18 File Form 1040NR * Line numbers for the 2002 forms were not available when this publication went to print. Free h&r block military ** File Form 4506 to get a transcript of the decedent's account. Free h&r block military Lines 2 and 6. Free h&r block military   Allocate income and deductions in the same manner they would have been allocated if the spouses had filed separate returns. Free h&r block military   Allocate wages and salaries to the spouse who performed the services and received the Form W-2. Free h&r block military Business and investment income (including capital gains) are generally allocated to the spouse who owned the business or investment that produced the income. Free h&r block military Income from a jointly owned business or investment should be allocated equally between the spouses unless there is evidence that shows a different allocation is appropriate. Free h&r block military   Allocate business deductions to the owner of the business. Free h&r block military Allocate personal deductions (such as itemized deductions for mortgage interest and taxes) equally between the spouses unless there is evidence that shows a different allocation is appropriate. Free h&r block military Lines 3 and 7. Free h&r block military   Figure the total tax as if a separate return had been filed. Free h&r block military The total tax is the tax that would have been entered on the tax return line shown in Table 1 if a separate return had been filed. Free h&r block military When figuring the tax using the Tax Table or Tax Rate Schedule, use the “Married filing separately” column in the Tax Table or Tax Rate Schedule Y-2. Free h&r block military   When figuring the total tax, allocate credits and other taxes, if any, in the same manner as they would have been allocated if the spouses had filed separate returns. Free h&r block military If a credit would not have been allowed on a separate return, allocate the credit shown on the joint return between the spouses. Free h&r block military Examples of credits generally not allowed on a separate return are the child and dependent care credit, credit for the elderly, adoption credit, education credits, and earned income credit. Free h&r block military Line 4. Free h&r block military   Enter the total, if any, of the following taxes. Free h&r block military Self-employment tax. Free h&r block military Social security and Medicare tax on tip income not reported to employer. Free h&r block military Tax on excess contributions to IRAs, Coverdell education savings accounts (formerly Ed IRAs), or Archer MSAs (formerly medical savings accounts). Free h&r block military Tax on excess accumulation in qualified retirement plans. Free h&r block military Household employment taxes. Free h&r block military Uncollected social security and Medicare or RRTA tax on tips or group-term life insurance. Free h&r block military Tax on golden parachute payments. Free h&r block military Minimum Amount of Relief The minimum amount of relief is $10,000. Free h&r block military If the decedent's total forgiven tax liability for all eligible years is less than $10,000, the difference between $10,000 and the total forgiven tax liability for those years will be treated as a tax payment for the decedent's last tax year. Free h&r block military The IRS will refund the difference as explained under Refund of Taxes Paid. Free h&r block military Use Worksheet C to figure the additional tax payment. Free h&r block military But first complete Worksheet A or B, unless the decedent was not required to file tax returns for the eligible tax years. Free h&r block military Example 1. Free h&r block military An individual who died in the September 11 attacks had an income tax liability of $-0- for 2000 and $6,400 for 2001. Free h&r block military The $6,400 is eligible for forgiveness. Free h&r block military The IRS will forgive $6,400 and treat the difference between $10,000 and $6,400 ($3,600) as a tax payment for 2001. Free h&r block military Example 2. Free h&r block military A child who died in the September 11 attacks had no (-0-) income tax liability for 2000 or 2001. Free h&r block military The IRS will treat $10,000 as a tax payment for 2001. Free h&r block military Income received after date of death. Free h&r block military   Generally, income of the decedent received after the date of death must be reported on Form 1041 if the estate has gross income for the tax year of $600 or more. Free h&r block military Examples are the final paycheck or dividends on stock owned by the decedent. Free h&r block military However, this income is exempt from income tax and is not included on Form 1041 if it is received: After the date of the decedent's death, and Before the end of the decedent's tax year (determined without regard to death). Free h&r block military Nonqualifying income. Free h&r block military   The following income is not exempt from tax. Free h&r block military The tax on it is not eligible for forgiveness. Free h&r block military Deferred compensation that would have been payable if the death had occurred because of an event other than these attacks. Free h&r block military Amounts that would not have been payable but for an action taken after September 11, 2001. Free h&r block military The following are examples of nonqualifying income. Free h&r block military Amounts payable from a qualified retirement plan or IRA to the beneficiary or estate of the decedent. Free h&r block military Amounts payable only as death or survivor's benefits from pre-existing arrangements that would have been paid if the death had occurred for another reason. Free h&r block military Income received as a result of adjustments made by the decedent's employer to a plan or arrangement to accelerate the vesting of restricted property or the payment of nonqualified deferred compensation after the date of the attack. Free h&r block military Interest on savings bonds cashed by the beneficiary of the decedent. Free h&r block military If you are responsible for the estate of a decedent, see Publication 559. Free h&r block military Publication 559 discusses how to complete and file federal income tax returns and explains your responsibility to pay any taxes due. Free h&r block military Instructions for lines 2–9 of Worksheet C. Free h&r block military   The tax that would have been payable on the exempt income (discussed earlier) must be considered when determining whether a decedent is entitled to the $10,000 minimum relief. Free h&r block military To figure the tax that would have been payable, you can use lines 2 through 9 of Worksheet C. Free h&r block military Or, if special requirements are met, you can use the alternative computation instead. Free h&r block military See Alternative computation, later. Free h&r block military   You have to use lines 2–9 (or the alternative computation) to figure the tax that would have been payable even if Form 1041 was not required to be filed. Free h&r block military Use Form 1041 to figure what the taxable income would be without including the exempt income. Free h&r block military Then enter that taxable income (even if a negative number) on line 2 of Worksheet C (or line 1 of Worksheet D, Alternative Computation of Tax on Exempt Income (Line 9 of Worksheet C)). Free h&r block military Alternative computation. Free h&r block military   Instead of using lines 2–8 of Worksheet C to figure the tax on exempt income (line 9 of Worksheet C), you may be able to use Worksheet D. Free h&r block military You can use Worksheet D to figure the tax on the exempt income payable by the estate and its beneficiaries only if both of the following requirements are met. Free h&r block military The estate claimed an income distribution deduction on line 18 (Form 1041). Free h&r block military Each beneficiary submits the information necessary to refigure the income tax payable on the exempt income received from the decedent's estate. Free h&r block military If requirement (2) is met but requirement (1) is not, you can still use Worksheet D if: Form 1041 was not required because exempt income was received, and The estate would have claimed an income distribution deduction if the exempt income were taxable. Free h&r block military If you use this alternative computation, skip lines 2–8 of Worksheet C and enter the amount from line 8 of Worksheet D on line 9 of Worksheet C. Free h&r block military Complete the rest of Worksheet C to determine the additional payment allowed. Free h&r block military Worksheet C. Free h&r block military Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum relief of $10,000. Free h&r block military Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. Free h&r block military 1 Minimum relief amount. Free h&r block military Note: Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. Free h&r block military 1 $10,000 2 Enter the taxable income from line 22 (Form 1041) 2       3 Enter the distribution deduction from line 18 (Form 1041) . Free h&r block military 3       4 Add lines 2 and 3. Free h&r block military 4       5 Enter exempt income received after death minus expenses allocable to exempt income. Free h&r block military (See Income received after date of death on page 5. Free h&r block military ) 5       6 Add lines 4 and 5. Free h&r block military 6       7 Figure the tax on line 6 using Schedule G (Form 1041). Free h&r block military 7       8 Figure the tax on line 4 using Schedule G (Form 1041). Free h&r block military 8       9 Tax on exempt income. Free h&r block military Subtract line 8 from line 7. Free h&r block military 9       10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. Free h&r block military If the decedent was not required to file tax returns for the eligible tax years, enter -0-. Free h&r block military 10       11 Add lines 9 and 10. Free h&r block military 11   12 Additional payment allowed. Free h&r block military If line 11 is $10,000 or more, enter -0- and stop here. Free h&r block military No additional amount is allowed as a tax payment. Free h&r block military Otherwise, subtract line 11 from line 1 and enter the result. Free h&r block military 12   Note. Free h&r block military The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). Free h&r block military Attach the computation of the additional payment allowed or a copy of this worksheet to the original or amended income tax return for the decedent's last tax year. Free h&r block military If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. Free h&r block military Write "Sec. Free h&r block military 692(d)(2) Payment" and the amount to the right of the entry space. Free h&r block military Also indicate whether a Form 1041 is being filed for the decedent's estate. Free h&r block military If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). Free h&r block military Write “Sec. Free h&r block military 692(d)(2) Payment” on the dotted line to the left of the entry space. Free h&r block military Worksheet C. Free h&r block military Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum relief of $10,000. Free h&r block military Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. Free h&r block military 1 Minimum relief amount. Free h&r block military Note: Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. Free h&r block military 1 $10,000 2 Enter the taxable income from line 22 (Form 1041) 2       3 Enter the distribution deduction from line 18 (Form 1041) . Free h&r block military 3       4 Add lines 2 and 3. Free h&r block military 4       5 Enter exempt income received after death minus expenses allocable to exempt income. Free h&r block military (See Income received after date of death on page 5. Free h&r block military ) 5       6 Add lines 4 and 5. Free h&r block military 6       7 Figure the tax on line 6 using Schedule G (Form 1041). Free h&r block military 7       8 Figure the tax on line 4 using Schedule G (Form 1041). Free h&r block military 8       9 Tax on exempt income. Free h&r block military Subtract line 8 from line 7. Free h&r block military 9       10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. Free h&r block military If the decedent was not required to file tax returns for the eligible tax years, enter -0-. Free h&r block military 10       11 Add lines 9 and 10. Free h&r block military 11   12 Additional payment allowed. Free h&r block military If line 11 is $10,000 or more, enter -0- and stop here. Free h&r block military No additional amount is allowed as a tax payment. Free h&r block military Otherwise, subtract line 11 from line 1 and enter the result. Free h&r block military 12   Note. Free h&r block military The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). Free h&r block military Attach the computation of the additional payment allowed or a copy of this worksheet to the original or amended income tax return for the decedent's last tax year. Free h&r block military If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. Free h&r block military Write "Sec. Free h&r block military 692(d)(2) Payment" and the amount to the right of the entry space. Free h&r block military Also indicate whether a Form 1041 is being filed for the decedent's estate. Free h&r block military If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). Free h&r block military Write “Sec. Free h&r block military 692(d)(2) Payment” on the dotted line to the left of the entry space. Free h&r block military Worksheet D. Free h&r block military Alternative Computation of Tax on Exempt Income (Line 9 of Worksheet C) 1 Enter the taxable income from line 22 (Form 1041) 1   2 Enter exempt income received after death minus expenses allocable to exempt income. Free h&r block military (See Income received after date of death on page 5. Free h&r block military ) 2   3 Add lines 1 and 2 3   4 Figure the tax on line 3 using Schedule G (Form 1041). Free h&r block military 4   5 Figure the tax on line 1 using Schedule G (Form 1041). Free h&r block military 5   6 Estate's tax on exempt income. Free h&r block military Subtract line 5 from line 4 6   7 Beneficiaries' tax on exempt income. Free h&r block military Figure the total tax that would have been payable by all beneficiaries. Free h&r block military Do this by including in each beneficiary's gross income the exempt income received from the decedent's estate and refiguring the income tax. Free h&r block military Add the amounts by which each beneficiary's income tax is increased. Free h&r block military 7   8 Add lines 6 and 7. Free h&r block military Enter this amount on line 9 of Worksheet C. Free h&r block military 8   Worksheet D. Free h&r block military Alternative Computation of Tax on Exempt Income (Line 9 of Worksheet C) 1 Enter the taxable income from line 22 (Form 1041) 1   2 Enter exempt income received after death minus expenses allocable to exempt income. Free h&r block military (See Income received after date of death on page 5. Free h&r block military ) 2   3 Add lines 1 and 2 3   4 Figure the tax on line 3 using Schedule G (Form 1041). Free h&r block military 4   5 Figure the tax on line 1 using Schedule G (Form 1041). Free h&r block military 5   6 Estate's tax on exempt income. Free h&r block military Subtract line 5 from line 4 6   7 Beneficiaries' tax on exempt income. Free h&r block military Figure the total tax that would have been payable by all beneficiaries. Free h&r block military Do this by including in each beneficiary's gross income the exempt income received from the decedent's estate and refiguring the income tax. Free h&r block military Add the amounts by which each beneficiary's income tax is increased. Free h&r block military 7   8 Add lines 6 and 7. Free h&r block military Enter this amount on line 9 of Worksheet C. Free h&r block military 8   Refund of Taxes Paid The IRS will refund the following forgiven income tax liabilities. Free h&r block military Income tax liabilities that have been paid. Free h&r block military Income tax liabilities treated as paid because the total tax liability for all years eligible for tax forgiveness is less than $10,000. Free h&r block military See Minimum Amount of Relief, earlier. Free h&r block military Example 1. Free h&r block military A man who died in the September 11 attacks had an income tax liability of $7,500 for 2000 and $6,500 for 2001. Free h&r block military The total, $14,000, is eligible for tax forgiveness. Free h&r block military However, he paid only $13,000 of that amount. Free h&r block military The IRS will refund the $13,000 paid. Free h&r block military Example 2. Free h&r block military A child who died in the September 11 attacks had no income tax liability for 2000 or 2001. Free h&r block military The child qualifies for the minimum relief of $10,000. Free h&r block military The $10,000 is treated as a tax payment for 2001 and will be refunded. Free h&r block military Period for filing a claim for credit or refund. Free h&r block military   To obtain a tax refund on a previously filed income tax return, file an amended return (Form 1040X or an amended Form 1041) within 3 years from the time the return was filed or 2 years from the time the tax was paid, whichever is later. Free h&r block military For example, you have until April 15, 2004, to file an amended return on a 2000 Form 1040, 1040A, or 1040EZ that was filed by April 16, 2001, and for which the tax was paid when due. Free h&r block military To obtain a refund on a return that has not been filed, file the return within 3 years of the original due date of the return. Free h&r block military Extension of time for victims of Oklahoma City attack. Free h&r block military   The period described above has been extended for victims of the Oklahoma City attack. Free h&r block military Survivors and personal representatives of these victims have until January 22, 2003, to file an original or amended return. Free h&r block military How To Claim Tax Forgiveness Use the following procedures to claim income tax forgiveness. Free h&r block military Which Form To Use The form you use depends on whether an income tax return for the eligible year was already filed for the decedent. Free h&r block military Return required but not yet filed. Free h&r block military   File Form 1040 if the decedent was a U. Free h&r block military S. Free h&r block military citizen or resident. Free h&r block military File Form 1040NR if the decedent was a nonresident alien. Free h&r block military A nonresident alien is someone who is not a U. Free h&r block military S. Free h&r block military citizen or resident. Free h&r block military Return required and already filed. Free h&r block military   File a separate Form 1040X for each year you are claiming tax relief. Free h&r block military Return not required and not filed. Free h&r block military   File Form 1040 only for the year of death if the decedent was a U. Free h&r block military S. Free h&r block military citizen or resident. Free h&r block military File Form 1040NR if the decedent was a nonresident alien. Free h&r block military Return not required but already filed. Free h&r block military   File Form 1040X only for the year of death. Free h&r block military How to complete the returns. Free h&r block military   Fill out Form 1040 or 1040NR according to its instructions but do not reduce the decedent's tax liability by any taxes that will be forgiven. Free h&r block military Attach to each return a computation of the income tax to be forgiven or a copy of Worksheet A or B. Free h&r block military If filing Form 1040 or Form 1040NR, also attach any Forms W–2. Free h&r block military If the total forgiven tax liability for all eligible years is less than $10,000, attach to the decedent's final return a computation of the additional tax payment allowed or a copy of Worksheet C. Free h&r block military Also, please write one of the following across the top of page 1 of each return. Free h&r block military KITA—Oklahoma City KITA—9/11 KITA—Anthrax “KITA” means “killed in terrorist attack. Free h&r block military ” Need a copy of a previously filed return?   You will find it easier to prepare Form 1040X if you have a copy of the decedent's previously filed tax return. Free h&r block military If you need a copy, use Form 4506. Free h&r block military The IRS will provide a free copy of the tax return if you write “DISASTER” in the top margin of Form 4506. Free h&r block military Attach Letters Testamentary or other evidence to establish that you are authorized to act for the decedent's estate. Free h&r block military Send Form 4506 to the address shown in the form instructions. Free h&r block military Taxpayer identification number. Free h&r block military   A taxpayer identification number must be furnished on the decedent's returns. Free h&r block military This is usually the decedent's social security number (SSN). Free h&r block military However, a nonresident alien who is not eligible to get an SSN should have an individual taxpayer identification number (ITIN). Free h&r block military If the decedent was a nonresident alien, had neither an SSN nor an ITIN, and was not required to file a U. Free h&r block military S. Free h&r block military income tax return for any tax year, do not apply for an ITIN. Free h&r block military You may claim a refund by filing Form 1040NR without an SSN or ITIN. Free h&r block military Necessary Documents Please attach the following documents to the return or amended return. Free h&r block military Proof of death. Free h&r block military   Attach a copy of the death certificate. Free h&r block military If the Department of Defense issued DD Form 1300, Report of Casualty, you can attach that form instead of the death certificate. Free h&r block military Form 1310. Free h&r block military   You must send Form 1310 with all returns and claims for refund, unless either of the following applies. Free h&r block military You are a surviving spouse filing an original or amended joint return with the decedent. Free h&r block military You are a personal representative filing an original Form 1040 or Form 1040NR for the decedent and a court certificate showing your appointment is attached to the return. Free h&r block military A personal representative is an executor or administrator of a decedent's estate, as certified or appointed by the court. Free h&r block military A copy of the decedent's will cannot be accepted as evidence that you are the personal representative. Free h&r block military      If you have proof of death but do not have enough tax information to file a timely claim for a refund, file Form 1040X with Form 1310. Free h&r block military Include a statement saying an amended return will be filed as soon as the necessary tax information is available. Free h&r block military Where To File The IRS has set up a special office for processing returns and claims for tax forgiveness. Free h&r block military Use one of the addresses shown below. Free h&r block military Where you file the returns or claims depends on whether you use the U. Free h&r block military S. Free h&r block military Postal Service or a private delivery service. Free h&r block military Please do not send these returns or claims to any of the addresses shown in the tax form instructions. Free h&r block military U. Free h&r block military S. Free h&r block military Postal Service. Free h&r block military   If you use the U. Free h&r block military S. Free h&r block military Postal Service, file these returns and claims at the following address. Free h&r block military Internal Revenue Service P. Free h&r block military O. Free h&r block military Box 4053 Woburn, MA 01888 Private delivery service. Free h&r block military   Private delivery services cannot deliver items to P. Free h&r block military O. Free h&r block military boxes. Free h&r block military If you use a private delivery service, file these returns and claims at the following address. Free h&r block military Internal Revenue Service Stop 661 310 Lowell St. Free h&r block military Andover, MA 01810 Designated private delivery services. Free h&r block military   You can use the following private delivery services to file these returns and claims. Free h&r block military Airborne Express (Airborne): Overnight Air Express Service, Next Afternoon Service, and Second Day Service. Free h&r block military DHL Worldwide Express (DHL): DHL “Same Day” Service, and DHL USA Overnight. Free h&r block military Federal Express (FedEx): FedEx Priority Overnight, FedEx Standard Overnight, and FedEx 2Day. Free h&r block military United Parcel Service (UPS): UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A. Free h&r block military M. Free h&r block military , UPS Worldwide Express Plus, and UPS Worldwide Express. Free h&r block military The private delivery service can tell you how to get written proof of the mailing date. Free h&r block military Payments to Survivors The following section discusses the tax treatment of certain amounts received by survivors. Free h&r block military September 11th Victim Compensation Fund of 2001 Payments from the September 11th Victim Compensation Fund of 2001 are not included in income. Free h&r block military Qualified Disaster Relief Payments Qualified disaster relief payments are not included in income. Free h&r block military These payments are not subject to income tax, self-employment tax, or employment taxes (social security, Medicare, and federal unemployment taxes). Free h&r block military No withholding applies to these payments. Free h&r block military Qualified disaster relief payments include payments you receive (regardless of the source) after September 10, 2001, for the following expenses. Free h&r block military Reasonable and necessary personal, family, living, or funeral expenses incurred as a result of a terrorist attack. Free h&r block military Reasonable and necessary expenses incurred for the repair or rehabilitation of a personal residence due to a terrorist attack. Free h&r block military (A personal residence can be a rented residence or one you own. Free h&r block military ) Reasonable and necessary expenses incurred for the repair or replacement of the contents of a personal residence due to a terrorist attack. Free h&r block military Qualified disaster relief payments also include the following. Free h&r block military Payments made by common carriers (for example, American Airlines and United Airlines regarding the September 11 attacks) because of death or physical injury incurred as a result of a terrorist attack. Free h&r block military Amounts paid by a federal, state, or local government in connection with a terrorist attack to those affected by the attack. Free h&r block military Qualified disaster relief payments do not include: Insurance or other reimbursements for expenses, or Income replacement payments, such as payments of lost wages, lost business income, or unemployment compensation. Free h&r block military Disability Payments For tax years ending after September 10, 2001, disability payments for injuries incurred as a direct result of a terrorist attack directed against the United States (or its allies), whether outside or within the United States, are not included in income. Free h&r block military Death Benefits Payments received by an individual or the estate of a decedent from the employer of an employee who died as a result of the Oklahoma City or September 11 terrorist attacks, or as a result of the anthrax attacks, are not included in income. Free h&r block military Only the amount that exceeds the benefits that would have been payable if the death had occurred for a reason other than a terrorist or anthrax attack is excludable. Free h&r block military However, the exclusion does apply to incidental death benefits paid under a qualified retirement plan even if these amounts would have been payable if the death had occurred for a reason other than a terrorist or anthrax attack. Free h&r block military If you included death benefits in income on a previously filed return and they are now excludable under the above rule, file Form 1040X to amend that return. Free h&r block military For information on the period for filing Form 1040X, see Period for filing claim for credit or refund earlier under Refund of Taxes Paid. Free h&r block military If that period has expired, you are granted an extension. Free h&r block military You have until January 22, 2003, to file Form 1040X to exclude the death benefits. Free h&r block military On top of page 1 of Form 1040X, write “Extension of Limitations Under PL 107–134, sec. Free h&r block military 102(b)(2). Free h&r block military ” Canceled Debt Canceled debt is not included in your income (or the income of the estate) if: You (or the estate) were liable, or became liable, for the debt of a decedent, and The debt was canceled after September 10, 2001, and before January 1, 2002, because the decedent died as a result of the September 11 attacks or anthrax attacks. Free h&r block military The lender is not required to report the canceled debt on Form 1099–C, Cancellation of Debt. Free h&r block military Payments to Survivors of Public Safety Officers If you are a survivor of a public safety officer who died in the line of duty, certain amounts you receive are not included in income. Free h&r block military Bureau of Justice Assistance payments. Free h&r block military   If you are a surviving dependent of a public safety officer (law enforcement officer or firefighter) who died in the line of duty, do not include in your income the death benefit paid to you by the Bureau of Justice Assistance. Free h&r block military Government plan annuity. Free h&r block military   If you receive a survivor annuity as the child or spouse (or former spouse) of a public safety officer who was killed in the line of duty, you generally do not have to include it in income. Free h&r block military This exclusion applies to the amount of the annuity based on the officer's service as a public safety officer. Free h&r block military For this purpose, the term public safety officer includes police and law enforcement officers, firefighters, and rescue squad and ambulance crews. Free h&r block military More information. Free h&r block military   For more information, see Publication 559. Free h&r block military Postponed Tax Deadlines The IRS may postpone for up to 1 year certain tax deadlines of taxpayers who are affected by a terrorist attack. Free h&r block military The tax deadlines the IRS may postpone include those for filing income and employment tax returns, paying income and employment taxes, and making contributions to a traditional IRA or Roth IRA. Free h&r block military If any tax deadline is postponed, the IRS will publicize the postponement in the affected area and publish a news release, revenue ruling, revenue procedure, notice, announcement, or other guidance in the Internal Revenue Bulletin (IRB). Free h&r block military Affected taxpayers. Free h&r block military   If the IRS postpones a tax deadline, the following taxpayers are eligible for the postponement. Free h&r block military Any individual whose main home is located in a covered area (defined later). Free h&r block military Any business entity or sole proprietor whose principal place of business is located in a covered area. Free h&r block military Any individual, business entity, or sole proprietor whose records needed to meet a postponed deadline are maintained in a covered area. Free h&r block military The main home or principal place of business does not have to be located in the covered area. Free h&r block military Any estate or trust whose tax records necessary to meet a postponed tax deadline are maintained in a covered area. Free h&r block military Any individual who is a relief worker affiliated with a recognized government or philanthropic organization and who is assisting in a covered area. Free h&r block military The spouse on a joint return with a taxpayer who is eligible for postponements. Free h&r block military Any other person determined by the IRS to be affected by a terrorist attack. Free h&r block military Covered area. Free h&r block military   This is an area in which a terrorist attack took place and in which the IRS has decided to postpone tax deadlines for up to 1 year. Free h&r block military Abatement of interest. Free h&r block military   The IRS may abate (forgive) the interest on any underpaid income tax for the length of any postponement. Free h&r block military Disaster Area Losses If your property was damaged or destroyed as a result of the September 11 attacks, you can choose to deduct your disaster loss on your 2000 return (or amended return) rather than on your 2001 return. Free h&r block military You must make this choice to deduct your loss on your 2000 return by the later of the following dates. Free h&r block military The due date (without extensions) for filing your 2001 income tax return (April 15, 2002, if you are a calendar year taxpayer). Free h&r block military The due date (with extensions) for the 2000 return. Free h&r block military For more information about disaster area losses, see Publication 547. Free h&r block military Estate Tax Reduction The federal estate tax is reduced for taxable estates of individuals who died as a result of the Oklahoma City attack, the September 11 attacks, and the anthrax attacks. Free h&r block military The estate tax is computed using a new rate schedule on page 25 of the November 2001 revision of the instructions for Form 706. Free h&r block military The estate tax is reduced by credits against the estate tax, including the unified credit and the state death tax credit. Free h&r block military These credits may reduce or eliminate the estate tax due. Free h&r block military A special rule extends until January 22, 2003, the period of time allowed to file a claim for a refund of estate taxes that have been paid. Free h&r block military Recovery from the September 11th Victim Compensation Fund. Free h&r block military   The value of claims for a decedent's pain and suffering is normally included in the gross estate. Free h&r block military However, if the estate chooses to seek recovery from this fund, the IRS has determined that, in view of the unique circumstances of this situation and the high likelihood that such claims will be valued at a nominal or zero amount, the claims will be valued at zero for estate tax purposes. Free h&r block military Thus, there are no federal estate tax consequences if an estate or beneficiary receives a recovery from this fund. Free h&r block military Which estates must file a return. Free h&r block military   For decedents dying in 2001, Form 706 must be filed by the executor for the estate of every U. Free h&r block military S. Free h&r block military citizen or resident whose gross estate, plus adjusted taxable gifts and specific exemption, is more than $675,000. Free h&r block military Form 706 must be filed within 9 months after the date of decedent's death unless you receive an extension of time to file. Free h&r block military Use Form 4768, Application for Extension of Time To File a Return and/or Pay U. Free h&r block military S. Free h&r block military Estate (and Generation-Skipping Transfer) Taxes, to apply for an extension. Free h&r block military Where to file. Free h&r block military   Returns on which the new rate schedule is used should be sent to the following address, which was not available when Form 706 went to print. Free h&r block military Internal Revenue Service E & G Department/Stop 824T 201 W. Free h&r block military Rivercenter Blvd. Free h&r block military Covington, KY 41011 More information. Free h&r block military   For more information on the federal estate tax, see the instructions for Form 706. Free h&r block military Structured Settlement Factoring Transactions A person who acquires payment rights in a structured settlement arrangement after February 21, 2002, may be subject to a 40% excise tax unless the transfer of the payment rights was approved in advance in a qualified order. Free h&r block military The excise tax is figured on the excess of the undiscounted amount of the payments being acquired over the total amount actually paid to acquire them. Free h&r block military However, this tax will not apply to transactions entered into from February 22, 2002, to July 1, 2002, if certain requirements are met. Free h&r block military For information about these requirements, see Internal Revenue Code section 5891. Free h&r block military Worksheet B Illustrated. Free h&r block military Figuring the Tax To Be Forgiven (For Decedents Who Filed a Joint Return)       (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for forgiveness. Free h&r block military 1 2000 2001   2 Enter the decedent's taxable income. Free h&r block military Figure taxable income as if a separate return had been filed. Free h&r block military See the instructions. Free h&r block military 2 $17,259 $14,295   3 Enter the decedent's total tax. Free h&r block military See the instructions. Free h&r block military 3 6,123 5,250   4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. Free h&r block military See the instructions. Free h&r block military 4 3,532 3,109   5 Subtract line 4 from line 3. Free h&r block military 5 2,591 2,141   6 Enter the surviving spouse's taxable income. Free h&r block military Figure taxable income as if a separate return had been filed. Free h&r block military See the instructions for line 2. Free h&r block military 6 29,025 29,850   7 Enter the surviving spouse's total tax. Free h&r block military See the instructions. Free h&r block military 7 5,277 5,391   8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. Free h&r block military 8 0 0   9 Subtract line 8 from line 7. Free h&r block military 9 5,277 5,391   10 Add lines 5 and 9. Free h&r block military 10 7,868 7,532   11 Enter the total tax from the joint return. Free h&r block military See Table 1 on page 5 for the line number for years before 2002. Free h&r block military 11 10,789 9,728   12 Add lines 4 and 8. Free h&r block military 12 3,532 3,109   13 Subtract line 12 from line 11. Free h&r block military 13 7,257 6,619   14 Divide line 5 by line 10. Free h&r block military Enter the result as a decimal. Free h&r block military 14 . Free h&r block military 329 . Free h&r block military 284   15 Tax to be forgiven. Free h&r block military Multiply line 13 by line 14 and enter the result. Free h&r block military 15 $2,388 $1,880   Note. Free h&r block military If the total of columns (A), (B), and (C) of line 15 (including any amounts shown on line 5 of Worksheet A) is less than $10,000, also complete Worksheet C. Free h&r block military Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Free h&r block military If filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of line 10 as a decrease in tax. Free h&r block military The IRS will determine the amount to be refunded. Free h&r block military Worksheet B Illustrated. Free h&r block military Figuring the Tax To Be Forgiven (For Decedents Who Filed a Joint Return)       (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for forgiveness. Free h&r block military 1 2000 2001   2 Enter the decedent's taxable income. Free h&r block military Figure taxable income as if a separate return had been filed. Free h&r block military See the instructions. Free h&r block military 2 $17,259 $14,295   3 Enter the decedent's total tax. Free h&r block military See the instructions. Free h&r block military 3 6,123 5,250   4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. Free h&r block military See the instructions. Free h&r block military 4 3,532 3,109   5 Subtract line 4 from line 3. Free h&r block military 5 2,591 2,141   6 Enter the surviving spouse's taxable income. Free h&r block military Figure taxable income as if a separate return had been filed. Free h&r block military See the instructions for line 2. Free h&r block military 6 29,025 29,850   7 Enter the surviving spouse's total tax. Free h&r block military See the instructions. Free h&r block military 7 5,277 5,391   8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. Free h&r block military 8 0 0   9 Subtract line 8 from line 7. Free h&r block military 9 5,277 5,391   10 Add lines 5 and 9. Free h&r block military 10 7,868 7,532   11 Enter the total tax from the joint return. Free h&r block military See Table 1 on page 5 for the line number for years before 2002. Free h&r block military 11 10,789 9,728   12 Add lines 4 and 8. Free h&r block military 12 3,532 3,109   13 Subtract line 12 from line 11. Free h&r block military 13 7,257 6,619   14 Divide line 5 by line 10. Free h&r block military Enter the result as a decimal. Free h&r block military 14 . Free h&r block military 329 . Free h&r block military 284   15 Tax to be forgiven. Free h&r block military Multiply line 13 by line 14 and enter the result. Free h&r block military 15 $2,388 $1,880   Note. Free h&r block military If the total of columns (A), (B), and (C) of line 15 (including any amounts shown on line 5 of Worksheet A) is less than $10,000, also complete Worksheet C. Free h&r block military Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Free h&r block military If filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of line 10 as a decrease in tax. Free h&r block military The IRS will determine the amount to be refunded. Free h&r block military Illustrated Worksheets B and C A wife lost her husband in the September 11 attack on the World Trade Center. Free h&r block military They filed a joint return for 2000 and the wife chose to file a joint return as a surviving spouse for 2001. Free h&r block military The returns for 2000 and 2001 showed the following income, deductions, and tax liabilities. Free h&r block military After the husband died, his estate received income of $4,000. Free h&r block military Of that amount, $1,000 is net profit from Schedule C received before the end of 2001. Free h&r block military This net profit is exempt from income tax as explained earlier under Income received after date of death. Free h&r block military The wife files Form 1041 because the gross income of the estate for the tax year ($3,000) is $600 or more. Free h&r block military To determine how much of the husband's tax liability for 2000 and 2001 is to be forgiven, the wife completes Worksheet B. Free h&r block military She also completes Worksheet C because the forgiven tax liabilities for 2000 and 2001 (line 15 of Worksheet B) total less than $10,000. Free h&r block military To claim tax relief for 2000, the wife files Form 1040X and attaches a copy of Worksheet B. Free h&r block military To claim tax relief for 2001, she files Form 1040 and attaches copies of Worksheets B and C. Free h&r block military   2000 2001 Wages (wife) $35,000 $36,000 Net profit from Schedule C, Profit or Loss From Business (husband) 25,000 22,000 Interest income (joint account) 1,000 1,100 Deduction for ½ of self-employment tax (husband) (1,766) (1,555) Standard deduction (7,350) (7,600) Personal exemptions (2) (5,600) (5,800) Taxable income $46,284 $44,145 Joint income tax liability $7,257 $6,619 Plus: Self-employment tax (husband) 3,532 3,109 Total tax liability $10,789 $9,728   2000 2001 Wages (wife) $35,000 $36,000 Net profit from Schedule C, Profit or Loss From Business (husband) 25,000 22,000 Interest income (joint account) 1,000 1,100 Deduction for ½ of self-employment tax (husband) (1,766) (1,555) Standard deduction (7,350) (7,600) Personal exemptions (2) (5,600) (5,800) Taxable income $46,284 $44,145 Joint income tax liability $7,257 $6,619 Plus: Self-employment tax (husband) 3,532 3,109 Total tax liability $10,789 $9,728 Worksheet C Illustrated. Free h&r block military Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum relief of $10,000. Free h&r block military Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. Free h&r block military 1 Minimum relief amount. Free h&r block military Note: Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. Free h&r block military 1 $10,000 2 Enter the taxable income from line 22 (Form 1041) 2 2,400     3 Enter the distribution deduction from line 18 (Form 1041) . Free h&r block military 3 0     4 Add lines 2 and 3. Free h&r block military 4 2,400     5 Enter exempt income received after death minus expenses allocable to exempt income. Free h&r block military (See Income received after date of death on page 5. Free h&r block military ) 5 1,000     6 Add lines 4 and 5. Free h&r block military 6 3,400     7 Figure the tax on line 6 using Schedule G (Form 1041). Free h&r block military 7 710     8 Figure the tax on line 4 using Schedule G (Form 1041). Free h&r block military 8 435     9 Tax on exempt income. Free h&r block military Subtract line 8 from line 7. Free h&r block military 9 275     10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. Free h&r block military If the decedent was not required to file tax returns for the eligible tax years, enter -0-. Free h&r block military 10 4,268     11 Add lines 9 and 10. Free h&r block military 11 $4,543 12 Additional payment allowed. Free h&r block military If line 11 is $10,000 or more, enter -0- and stop here. Free h&r block military No additional amount is allowed as a tax payment. Free h&r block military Otherwise, subtract line 11 from line 1 and enter the result. Free h&r block military 12 $5,457 Note. Free h&r block military The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). Free h&r block military Attach the computation of the additional payment allowed or a copy of this worksheet to the original or amended income tax return for the decedent's last tax year. Free h&r block military If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. Free h&r block military Write "Sec. Free h&r block military 692(d)(2) Payment" and the amount to the right of the entry space. Free h&r block military Also indicate whether a Form 1041 is being filed for the decedent's estate. Free h&r block military If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). Free h&r block military Write “Sec. Free h&r block military 692(d)(2) Payment” on the dotted line to the left of the entry space. Free h&r block military Worksheet C Illustrated. Free h&r block military Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum relief of $10,000. Free h&r block military Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. Free h&r block military 1 Minimum relief amount. Free h&r block military Note: Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. Free h&r block military 1 $10,000 2 Enter the taxable income from line 22 (Form 1041) 2 2,400     3 Enter the distribution deduction from line 18 (Form 1041) . Free h&r block military 3 0     4 Add lines 2 and 3. Free h&r block military 4 2,400     5 Enter exempt income received after death minus expenses allocable to exempt income. Free h&r block military (See Income received after date of death on page 5. Free h&r block military ) 5 1,000     6 Add lines 4 and 5. Free h&r block military 6 3,400     7 Figure the tax on line 6 using Schedule G (Form 1041). Free h&r block military 7 710     8 Figure the tax on line 4 using Schedule G (Form 1041). Free h&r block military 8 435     9 Tax on exempt income. Free h&r block military Subtract line 8 from line 7. Free h&r block military 9 275     10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. Free h&r block military If the decedent was not required to file tax returns for the eligible tax years, enter -0-. Free h&r block military 10 4,268     11 Add lines 9 and 10. Free h&r block military 11 $4,543 12 Additional payment allowed. Free h&r block military If line 11 is $10,000 or more, enter -0- and stop here. Free h&r block military No additional amount is allowed as a tax payment. Free h&r block military Otherwise, subtract line 11 from line 1 and enter the result. Free h&r block military 12 $5,457 Note. Free h&r block military The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). Free h&r block military Attach the computation of the additional payment allowed or a copy of this worksheet to the original or amended income tax return for the decedent's last tax year. Free h&r block military If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. Free h&r block military Write "Sec. Free h&r block military 692(d)(2) Payment" and the amount to the right of the entry space. Free h&r block military Also indicate whether a Form 1041 is being filed for the decedent's estate. Free h&r block military If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). Free h&r block military Write “Sec. Free h&r block military 692(d)(2) Payment” on the dotted line to the left of the entry space. Free h&r block military Additional Worksheets The following additional worksheets are provided for your convenience. Free h&r block military Worksheet A. Free h&r block military Figuring the Tax To Be Forgiven (For Decedents Who Filed a Return as Single, Married Filing Separately, Head of Household, or Qualifying Widow(er))         (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for tax forgiveness. Free h&r block military 1       2 Enter the total tax from the decedent's income tax return. Free h&r block military See Table 1 on page 5 for the line number for years before 2002. Free h&r block military 2       3 Enter the following taxes, if any, shown on the decedent's income tax return. Free h&r block military (These taxes are not eligible for forgiveness. Free h&r block military )           a Self-employment tax. Free h&r block military 3a         b Social security and Medicare tax on tip income not reported to employer. Free h&r block military 3b         c Tax on excess contributions to IRAs, Coverdell education savings accounts (formerly Ed IRAs), or Archer MSAs (formerly medical savings accounts). Free h&r block military 3c         d Tax on excess accumulation in qualified retirement plans. Free h&r block military 3d         e Household employment taxes. Free h&r block military 3e         f Uncollected social security and Medicare or RRTA tax on tips or group-term life insurance. Free h&r block military 3f         g Tax on golden parachute payments. Free h&r block military 3g       4 Add lines 3a through 3g. Free h&r block military 4       5 Tax to be forgiven. Free h&r block military Subtract line 4 from line 2. Free h&r block military 5       Note. Free h&r block military If the total of columns (A), (B), and (C) of line 5 (including any amounts shown on line 15 of Worksheet B) is less than $10,000, also complete Worksheet C. Free h&r block military Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Free h&r block military If filing Form 1040X for an eligible year, enter the amount from line 5 above on Form 1040X in column B of line 10 as a decrease in tax. Free h&r block military The IRS will determine the amount to be refunded. Free h&r block military Worksheet A. Free h&r block military Figuring the Tax To Be Forgiven (For Decedents Who Filed a Return as Single, Married Filing Separately, Head of Household, or Qualifying Widow(er))         (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for tax forgiveness. Free h&r block military 1       2 Enter the total tax from the decedent's income tax return. Free h&r block military See Table 1 on page 5 for the line number for years before 2002. Free h&r block military 2       3 Enter the following taxes, if any, shown on the decedent's income tax return. Free h&r block military (These taxes are not eligible for forgiveness. Free h&r block military )           a Self-employment tax. Free h&r block military 3a         b Social security and Medicare tax on tip income not reported to employer. Free h&r block military 3b         c Tax on excess contributions to IRAs, Coverdell education savings accounts (formerly Ed IRAs), or Archer MSAs (formerly medical savings accounts). Free h&r block military 3c         d Tax on excess accumulation in qualified retirement plans. Free h&r block military 3d         e Household employment taxes. Free h&r block military 3e         f Uncollected social security and Medicare or RRTA tax on tips or group-term life insurance. Free h&r block military 3f         g Tax on golden parachute payments. Free h&r block military 3g       4 Add lines 3a through 3g. Free h&r block military 4       5 Tax to be forgiven. Free h&r block military Subtract line 4 from line 2. Free h&r block military 5       Note. Free h&r block military If the total of columns (A), (B), and (C) of line 5 (including any amounts shown on line 15 of Worksheet B) is less than $10,000, also complete Worksheet C. Free h&r block military Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Free h&r block military If filing Form 1040X for an eligible year, enter the amount from line 5 above on Form 1040X in column B of line 10 as a decrease in tax. Free h&r block military The IRS will determine the amount to be refunded. Free h&r block military Worksheet B. Free h&r block military Figuring the Tax To Be Forgiven (For Decedents Who Filed a Joint Return)       (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for forgiveness. Free h&r block military 1       2 Enter the decedent's taxable income. Free h&r block military Figure taxable income as if a separate return had been filed. Free h&r block military See the instructions. Free h&r block military 2       3 Enter the decedent's total tax. Free h&r block military See the instructions. Free h&r block military 3       4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. Free h&r block military See the instructions. Free h&r block military 4       5 Subtract line 4 from line 3. Free h&r block military 5       6 Enter the surviving spouse's taxable income. Free h&r block military Figure taxable income as if a separate return had been filed. Free h&r block military See the instructions. Free h&r block military 6       7 Enter the surviving spouse's total tax. Free h&r block military See the instructions. Free h&r block military 7       8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. Free h&r block military 8       9 Subtract line 8 from line 7. Free h&r block military 9       10 Add lines 5 and 9. Free h&r block military 10       11 Enter the total tax from the joint return. Free h&r block military See Table 1 on page 5 for the line number for years before 2002. Free h&r block military 11       12 Add lines 4 and 8. Free h&r block military 12       13 Subtract line 12 from line 11. Free h&r block military 13       14 Divide line 5 by line 10. Free h&r block military Enter the result as a decimal. Free h&r block military 14       15 Tax to be forgiven. Free h&r block military Multiply line 13 by line 14 and enter the result. Free h&r block military 15       Note. Free h&r block military If the total of columns (A), (B), and (C) of line 15 (including any amounts shown on line 5 of Worksheet A) is less than $10,000, also complete Worksheet C. Free h&r block military Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Free h&r block military If filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of line 10 as a decrease in tax. Free h&r block military The IRS will determine the amount to be refunded. Free h&r block military Worksheet B. Free h&r block military Figuring the Tax To Be Forgiven (For Decedents Who Filed a Joint Return)       (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for forgiveness. Free h&r block military 1       2 Enter the decedent's taxable income. Free h&r block military Figure taxable income as if a separate return had been filed. Free h&r block military See the instructions. Free h&r block military 2       3 Enter the decedent's total tax. Free h&r block military See the instructions. Free h&r block military 3       4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. Free h&r block military See the instructions. Free h&r block military 4       5 Subtract line 4 from line 3. Free h&r block military 5       6 Enter the surviving spouse's taxable income. Free h&r block military Figure taxable income as if a separate return had been filed. Free h&r block military See the instructions. Free h&r block military 6       7 Enter the surviving spouse's total tax. Free h&r block military See the instructions. Free h&r block military 7       8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. Free h&r block military 8       9 Subtract line 8 from line 7. Free h&r block military 9       10 Add lines 5 and 9. Free h&r block military 10       11 Enter the total tax from the joint return. Free h&r block military See Table 1 on page 5 for the line number for years before 2002. Free h&r block military 11       12 Add lines 4 and 8. Free h&r block military 12       13 Subtract line 12 from line 11. Free h&r block military 13       14 Divide line 5 by line 10. Free h&r block military Enter the result as a decimal. Free h&r block military 14       15 Tax to be forgiven. Free h&r block military Multiply line 13 by line 14 and enter the result. Free h&r block military 15       Note. Free h&r block military If the total of columns (A), (B), and (C) of line 15 (including any amounts shown on line 5 of Worksheet A) is less than $10,000, also complete Worksheet C. Free h&r block military Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Free h&r block military If filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of line 10 as a decrease in tax. Free h&r block military The IRS will determine the amount to be refunded. Free h&r block military Worksheet C. Free h&r block military Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum tax forgiveness of $10,000. Free h&r block military Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. Free h&r block military 1 Minimum tax forgiveness. Free h&r block military Note. Free h&r block military Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. Free h&r block military 1 $10,000 2 Enter the taxable income from line 22 (Form 1041) 2       3 Enter the distribution deduction from line 18 (Form 1041) . Free h&r block military 3       4 Add lines 2 and 3. Free h&r block military 4       5 Enter exempt income received after death minus expenses allocable to exempt income. Free h&r block military (See Income received after date of death on page 5. Free h&r block military ) 5       6 Add lines 4 and 5. Free h&r block military 6       7 Figure the tax on line 6 using Schedule G (Form 1041). Free h&r block military 7       8 Figure the tax on line 4 using Schedule G (Form 1041). Free h&r block military 8       9 Tax on exempt income. Free h&r block military Subtract line 8 from line 7. Free h&r block military 9       10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. Free h&r block military If the decedent was not required to file tax returns for the eligible tax years, enter -0-. Free h&r block military 10       11 Add lines 9 and 10. Free h&r block military 11   12 Additional payment allowed. Free h&r block military If line 11 is $10,000 or more, enter -0- and stop here. Free h&r block military No additional amount is allowed as a tax payment. Free h&r block military Otherwise, subtract line 11 from line 1 and enter the result. Free h&r block military 12   Note. Free h&r block military The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). Free h&r block military Attach the computation of the additional payment allowed or a copy of this worksheet to the original or amended income tax return for the decedent's last tax year. Free h&r block military If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. Free h&r block military Write "Sec. Free h&r block military 692(d)(2) Payment" and the amount to the right of the entry space. Free h&r block military Also indicate whether a Form 1041 is being filed for the decedent's estate. Free h&r block military If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). Free h&r block military Write “Sec. Free h&r block military 692(d)(2) Payment” on the dotted line to the left of the entry space. Free h&r block military Worksheet C. Free h&r block military Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum tax forgiveness of $10,000. Free h&r block military Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. Free h&r block military 1 Minimum tax forgiveness. Free h&r block military Note. Free h&r block military Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. Free h&r block military 1 $10,000 2 Enter the taxable income from line 22 (Form 1041) 2       3 Enter the distribution deduction from line 18 (Form 1041) . Free h&r block military 3       4 Add lines 2 and 3. Free h&r block military 4       5 Enter exempt income received after death minus expenses allocable to exempt income. Free h&r block military (See Income received after date of death on page 5. Free h&r block military ) 5       6 Add lines 4 and 5. Free h&r block military 6       7 Figure the tax on line 6 using Schedule G (Form 1041). Free h&r block military 7       8 Figure the tax on line 4 using Schedule G (Form 1041). Free h&r block military 8       9 Tax on exempt income. Free h&r block military Subtract line 8 from line 7. Free h&r block military 9       10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. Free h&r block military If the decedent was not required to file tax returns for the eligible tax years, enter -0-. Free h&r block military 10       11 Add lines 9 and 10. Free h&r block military 11   12 Additional payment allowed. Free h&r block military If line 11 is $10,000 or more, enter -0- and stop here. Free h&r block military No additional amount is allowed as a tax payment. Free h&r block military Otherwise, subtract line 11 from line 1 and enter the result. Free h&r block military 12   Note. Free h&r block military The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). Free h&r block military Attach the computation of the additional payment allowed or a copy of this worksheet to the original or amended income tax return for the decedent's last tax year. Free h&r block military If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. Free h&r block military Write "Sec. Free h&r block military 692(d)(2) Payment" and the amount to the right of the entry space. Free h&r block military Also indicate whether a Form 1041 is being filed for the decedent's estate. Free h&r block military If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). Free h&r block military Write “Sec. Free h&r block military 692(d)(2) Payment” on the dotted line to the left of the entry space. Free h&r block military How To Get Tax Help Special IRS assistance. Free h&r block military   The IRS is providing special help for those affected by the terrorist attacks, as well as survivors and personal representatives of the victims. Free h&r block military We have set up a special toll-free number for people who may have trouble filing or paying their taxes because they were affected by the terrorist attacks, or who have other tax issues related to the attacks. Free h&r block military Call 1–866–562–5227 Monday through Friday In English–7 a. Free h&r block military m. Free h&r block military to 10 p. Free h&r block military m. Free h&r block military local time In Spanish–8 a. Free h&r block military m. Free h&r block military to 9:30 p. Free h&r block military m. Free h&r block military local time   The IRS web site at www. Free h&r block military irs. Free h&r block military gov has notices and other tax relief information. Free h&r block military Check it periodically for any new guidance or to see if Congress has enacted new legislation. Free h&r block military   Business taxpayers affected by the attacks can e-mail their questions to corp. Free h&r block military disaster. Free h&r block military relief@irs. Free h&r block military gov. Free h&r block military   For current information on Presidentially declared disaster areas, check the Federal Emergency Management Agency Web site at www. Free h&r block military fema. Free h&r block military gov. Free h&r block military Other help from the IRS. Free h&r block military   You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get more information from the IRS in several ways. Free h&r block military By selecting the method that is best for you, you will have quick and easy access to tax help. Free h&r block military Contacting your Taxpayer Advocate. Free h&r block military   If you have attempted to deal with an IRS problem unsuccessfully, you should contact your Taxpayer Advocate. Free h&r block military   The Taxpayer Advocate represents your interests and concerns within the IRS by protecting your rights and resolving problems that have not been fixed through normal channels. Free h&r block military While Taxpayer Advocates cannot change the tax law or make a technical tax decision, they can clear up problems that resulted from previous contacts and ensure that your case is given a complete and impartial review. Free h&r block military   To contact your Taxpayer Advocate: Call the Taxpayer Advocate at 1–877–777–4778. Free h&r block military Call the IRS at 1–800–829–1040. Free h&r block military Call, write, or fax the Taxpayer Advocate office in your area. Free h&r block military Call 1–800–829–4059 if you are a TTY/TDD user. Free h&r block military   For more information, see Publication 1546, The Taxpayer Advocate Service of the IRS. Free h&r block military Free tax services. Free h&r block military   To find out what services are available, get Publication 910, Guide to Free Tax Services. Free h&r block military It contains a list of free tax publications and an index of tax topics. Free h&r block military It also describes other free tax information services, including tax education and assistance programs and a list of TeleTax topics. Free h&r block military Personal computer. Free h&r block military With your personal computer and modem, you can access the IRS on the Internet at www. Free h&r block military irs. Free h&r block military gov. Free h&r block military While visiting our web site, you can: Find answers to questions you may have. Free h&r block military Download forms and publications or search for forms and pub
Español

Court of Federal Claims

The U.S. Court of Federal Claims has jurisdiction over claims seeking money judgments against the United States. Appeals are to the U.S. Court of Appeals for the Federal Circuit.

Contact the Agency or Department

Website: Court of Federal Claims

Contact In-Person: Directions and Hours

Address: 717 Madison Place, NW
Washington, DC 20005-1806

Phone Number: (202) 357-6400

The Free H&r Block Military

Free h&r block military 13. Free h&r block military   Employment Taxes Table of Contents What's New for 2013 What's New for 2014 Reminders Important Dates for 2014 Introduction Topics - This chapter discusses: Useful Items - You may want to see: Farm Employment Family Employees Crew Leaders Social Security and Medicare TaxesReligious exemption. Free h&r block military Wage limit. Free h&r block military Federal Income Tax WithholdingNew Form W-4 for 2014. Free h&r block military Required Notice to Employees About Earned Income Credit (EIC) Reporting and Paying Social Security, Medicare, and Withheld Federal Income TaxesElectronic deposit requirement. Free h&r block military Federal Unemployment (FUTA) TaxReporting and Paying FUTA Tax What's New for 2013 Social security and Medicare tax for 2013. Free h&r block military  The employee tax rate for social security is 6. Free h&r block military 2%. Free h&r block military Previously, the employee tax rate for social security was 4. Free h&r block military 2%. Free h&r block military The employer tax rate for social security remains unchanged at 6. Free h&r block military 2%. Free h&r block military The social security wage base limit is $113,700. Free h&r block military The Medicare tax rate is 1. Free h&r block military 45% each for the employee and employer, unchanged from 2012. Free h&r block military There is no wage base limit for Medicare tax. Free h&r block military Additional Medicare Tax. Free h&r block military  In addition to withholding Medicare tax at 1. Free h&r block military 45%, you must withhold a 0. Free h&r block military 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. Free h&r block military You are required to begin withholding Additional Medicare Tax in the pay period in which you pay wages in excess of $200,000 to an employee and continue to withhold it each pay period until the end of the calendar year. Free h&r block military Additional Medicare Tax is only imposed on the employee. Free h&r block military There is no employer share of Additional Medicare Tax. Free h&r block military All wages that are subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 threshold. Free h&r block military For more information on what wages are subject to Medicare tax, see the chart, Special Rules for Various Types of Services and Payments, in section 15 of Publication 15 (Circular E), Employer's Tax Guide. Free h&r block military For more information on Additional Medicare Tax, visit IRS. Free h&r block military gov and enter “Additional Medicare Tax” in the search box. Free h&r block military Leave-based donation programs to aid victims of Hurricane Sandy. Free h&r block military  Under these programs, employees may donate their vacation, sick, or personal leave in exchange for employer cash payments made before January 1, 2014, to qualified tax-exempt organizations providing relief for the victims of Hurricane Sandy. Free h&r block military The donated leave will not be included in the income or wages of the employee. Free h&r block military The employer may deduct the cash payments as business expenses or charitable contributions. Free h&r block military For more information, see Notice 2012-69, 2012-51 I. Free h&r block military R. Free h&r block military B. Free h&r block military 712, available at www. Free h&r block military irs. Free h&r block military gov/irb/2012-51_IRB/ar09. Free h&r block military html. Free h&r block military Work opportunity tax credit for qualified tax-exempt organizations hiring qualified veterans extended. Free h&r block military  The work opportunity tax credit is now available for eligible unemployed veterans who begin work before January 1, 2014. Free h&r block military Previously, the credit was available for unemployed veterans who began work on or after November 22, 2011, and before January 1, 2013. Free h&r block military Qualified tax-exempt organizations that hire eligible unemployed veterans can claim the work opportunity tax credit against their payroll tax liability using Form 5884-C, Work Opportunity Credit for Qualified Tax-Exempt Organizations Hiring Qualified Veterans. Free h&r block military For more information, visit IRS. Free h&r block military gov and enter “work opportunity credit” in the search box. Free h&r block military What's New for 2014 Social security and Medicare tax for 2014. Free h&r block military  The employee and employer tax rates for social security and the maximum amount of wages subject to social security tax for 2014 will be discussed in Publication 51 (Circular A), Agricultural Employer's Tax Guide (For use in 2014). Free h&r block military The Medicare tax rate for 2014 will also be discussed in Publication 51 (Circular A) (For use in 2014). Free h&r block military There is no limit on the amount of wages subject to Medicare tax. Free h&r block military Reminders Additional employment tax information for farmers. Free h&r block military  See Publication 51 (Circular A) for more detailed guidance on employment taxes. Free h&r block military For the latest information about employment tax developments impacting farmers, go to www. Free h&r block military irs. Free h&r block military gov/pub51. Free h&r block military Correcting a previously filed Form 943. Free h&r block military  If you discover an error on a previously filed Form 943, Employer's Annual Federal Tax Return for Agricultural Employees, make the correction using Form 943-X, Adjusted Employer's Annual Federal Tax Return for Agricultural Employees or Claim for Refund. Free h&r block military Form 943-X is filed separately from Form 943. Free h&r block military For more information on correcting Form 943, see the Instructions for Form 943-X. Free h&r block military Federal tax deposits must be made by electronic funds transfer. Free h&r block military  You must use electronic funds transfer to make all federal tax deposits. Free h&r block military Generally, electronic funds transfers are made using the Electronic Federal Tax Payment System (EFTPS). Free h&r block military If you do not want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make electronic deposits on your behalf. Free h&r block military Also, you may arrange for your financial institution to initiate a same-day wire payment on your behalf. Free h&r block military EFTPS is a free service provided by the Department of Treasury. Free h&r block military Services provided by your tax professional, financial institution, payroll service, or other third party may have a fee. Free h&r block military For more information on making federal tax deposits, see section 7 of Publication 51 (Circular A). Free h&r block military To get more information about EFTPS or to enroll in EFTPS, visit www. Free h&r block military eftps. Free h&r block military gov or call 1-800-555-4477 or 1-800-733-4829 (TDD). Free h&r block military Additional information about EFTPS is also available in Publication 966, Electronic Federal Tax Payment System: A Guide To Getting Started. Free h&r block military Important Dates for 2014 You should take the action indicated by the dates listed. Free h&r block military See By February 15 and On February 16 for Form W-4, Employee's Withholding Allowance Certificate, information. Free h&r block military Due dates for deposits of withheld federal income taxes, social security taxes, and Medicare taxes are not listed here. Free h&r block military For these dates, see Publication 509, Tax Calendars (For use in 2014). Free h&r block military Note. Free h&r block military  If any date shown below for filing a return, furnishing a form, or depositing taxes falls on a Saturday, Sunday, or legal holiday, the due date is the next business day. Free h&r block military A statewide legal holiday delays a filing or furnishing due date only if the IRS office where you are required to file a return or furnish a form is located in that state. Free h&r block military For any due date, you will meet the “file” or “furnish” date requirement if the envelope containing the tax return or form is properly addressed, contains sufficient postage, and is postmarked by the U. Free h&r block military S. Free h&r block military Postal Service by the due date, or sent by an IRS-designated delivery service by the due date. Free h&r block military See Private delivery services in Publication 51 (Circular A). Free h&r block military Federal tax deposits can only be made by electronic funds transfer and are governed by legal holidays in the District of Columbia. Free h&r block military Statewide holidays no longer apply. Free h&r block military For a list of legal holidays that delay the due date of a federal tax deposit, see section 7 of Publication 51 (Circular A). Free h&r block military Fiscal year taxpayers. Free h&r block military  The due dates listed below apply whether you use a calendar or a fiscal year. Free h&r block military By January 31. Free h&r block military   File Form 943 with the IRS. Free h&r block military If you deposited all Form 943 taxes when due, you have 10 additional days to file. Free h&r block military Furnish each employee with a completed Form W-2, Wage and Tax Statement. Free h&r block military Furnish each recipient to whom you paid $600 or more in nonemployee compensation with a completed Form 1099 (for example, Form 1099-MISC). Free h&r block military File Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return, with the IRS. Free h&r block military If you deposited all the FUTA tax when due, you have 10 additional days to file. Free h&r block military File Form 945, Annual Return of Withheld Federal Income Tax, with the IRS to report any nonpayroll income tax withheld during 2013. Free h&r block military If you deposited all Form 945 taxes when due, you have 10 additional days to file. Free h&r block military By February 15. Free h&r block military  Ask for a new Form W-4 or Formulario W-4(SP), Certificado de Exención de Retenciones del Empleado, from each employee who claimed exemption from federal income tax withholding last year. Free h&r block military On February 16. Free h&r block military  Any Form W-4 claiming exemption from withholding for the previous year has now expired. Free h&r block military Begin withholding for any employee who previously claimed exemption from withholding but has not given you a new Form W-4 for the current year. Free h&r block military If the employee does not give you a new Form W-4, withhold taxes based on the last valid Form W-4 you have for the employee that does not claim exemption from withholding or, if one does not exist, as if he or she is single with zero withholding allowances. Free h&r block military If the employee furnishes a new Form W-4 claiming exemption from withholding after February 15, you may apply the exemption to future wages, but do not refund taxes withheld while the exempt status was not in place. Free h&r block military By February 28. Free h&r block military   File paper Forms 1099 and 1096. Free h&r block military File Copy A of all paper Forms 1099 with Form 1096, Annual Summary and Transmittal of U. Free h&r block military S. Free h&r block military Information Returns, with the IRS. Free h&r block military For electronically filed returns, see By March 31 below. Free h&r block military File paper Forms W-2 and W-3. Free h&r block military File Copy A of all paper Forms W-2 with Form W-3, Transmittal of Wage and Tax Statements, with the Social Security Administration (SSA). Free h&r block military For electronically filed returns, see By March 31 below. Free h&r block military By March 31. Free h&r block military   File electronic Forms W-2 and 1099. Free h&r block military File electronic Forms W-2 with the SSA and Forms 1099 with the IRS. Free h&r block military For more information on reporting Form W-2 information to the SSA electronically, visit the SSA's Employer W-2 Filing Instructions & Information webpage at www. Free h&r block military socialsecurity. Free h&r block military gov/employer. Free h&r block military For information on filing information returns electronically with the IRS, see Publication 1220, Specifications for Filing Forms 1097, 1098, 1099, 3921, 3922, 5498, 8935, and W-2G Electronically. Free h&r block military By April 30, July 31, October 31, and January 31. Free h&r block military   Deposit FUTA taxes. Free h&r block military Deposit FUTA tax due if it is more than $500. Free h&r block military Before December 1. Free h&r block military  Remind employees to submit a new Form W-4 if their withholding allowances have changed or will change for the next year. Free h&r block military Introduction You are generally required to withhold federal income tax from the wages of your employees. Free h&r block military You may also be subject to social security and Medicare taxes under the Federal Insurance Contributions Act (FICA) and federal unemployment tax under the Federal Unemployment Tax Act (FUTA). Free h&r block military You must also withhold Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. Free h&r block military This chapter includes information about these taxes. Free h&r block military You must also pay self-employment tax on your net earnings from farming. Free h&r block military See chapter 12 for information on self-employment tax. Free h&r block military Topics - This chapter discusses: Farm employment, Family employees, Crew leaders, Social security and Medicare taxes, Additional Medicare Tax withholding, Federal income tax withholding, Reporting and paying social security, Medicare, and withheld federal income taxes, and FUTA tax. Free h&r block military 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 51 (Circular A), Agricultural Employer's Tax Guide 926 Household Employer's Tax Guide Form (and Instructions) W-2 Wage and Tax Statement W-4 Employee's Withholding Allowance Certificate W-9 Request for Taxpayer Identification Number and Certification 940 Employer's Annual Federal Unemployment (FUTA) Tax Return 943 Employer's Annual Federal Tax Return for Agricultural Employees 943-X Adjusted Employer's Annual Federal Tax Return for Agricultural Employees or Claim for Refund See chapter 16 for information about getting publications and forms. Free h&r block military Farm Employment In general, you are an employer of farmworkers if your employees do any of the following types of work. Free h&r block military Raising or harvesting agricultural or horticultural products on a farm, including raising and feeding of livestock. Free h&r block military Operating, managing, conserving, improving, or maintaining your farm and its tools and equipment. Free h&r block military Services performed in salvaging timber, or clearing land of brush and other debris, left by a hurricane (also known as hurricane labor). Free h&r block military Handling, processing, or packaging any agricultural or horticultural commodity if you produced more than half of the commodity (for a group of up to 20 unincorporated operators, all of the commodity). Free h&r block military Work related to cotton ginning, turpentine, gum resin products, or the operation and maintenance of irrigation facilities. Free h&r block military For more information, see Publication 51 (Circular A). Free h&r block military Generally, a worker who performs services for you is your employee if you have the right to control what will be done and how it will be done. Free h&r block military This is so even when you give the employee freedom of action. Free h&r block military What matters is that you have the right to control the details of how the services are performed. Free h&r block military You are responsible for withholding and paying employment taxes for your employees. Free h&r block military You are also required to file employment tax returns. Free h&r block military These requirements do not apply to amounts that you pay to independent contractors. Free h&r block military See Publication 15-A for more information on how to determine whether an individual providing services is an independent contractor or an employee. Free h&r block military If you employ a family of workers, each worker subject to your control (not just the head of the family) is an employee. Free h&r block military Special rules apply to crew leaders. Free h&r block military See Crew Leaders , later. Free h&r block military Employer identification number (EIN). Free h&r block military   If you have employees, you must have an EIN. Free h&r block military If you do not have an EIN, you may apply for one online. Free h&r block military Go to IRS. Free h&r block military gov and click on the Apply for an EIN Online link under Tools. Free h&r block military You may also apply for an EIN by calling 1-800-829-4933 or 1-800-829-4059 (TDD/TTY for persons who are deaf, hard of hearing, or have a speech disability). Free h&r block military The hours of operation for both numbers are Monday–Friday form 7:00 a. Free h&r block military m. Free h&r block military –7:00 p. Free h&r block military m. Free h&r block military local time (Alaska and Hawaii follow Pacific time). Free h&r block military You can also fax or mail Form SS-4, Application for Employer Identification Number, to the IRS. Free h&r block military Employee's social security number (SSN). Free h&r block military   An employee who does not have an SSN should submit Form SS-5, Application for a Social Security Card, to the Social Security Administration (SSA). Free h&r block military Form SS-5 is available from any SSA office or by calling 1-800-772-1213 (operates 24 hours per day). Free h&r block military It is also available from the SSA's website at www. Free h&r block military socialsecurity. Free h&r block military gov. Free h&r block military   The employee must furnish evidence of age, identity, and U. Free h&r block military S. Free h&r block military citizenship or lawful immigration status permitting employment with the Form SS-5. Free h&r block military An employee who is age 18 or older must appear in person with this evidence at an SSA office. Free h&r block military Form I-9. Free h&r block military    You must verify that each new employee is legally eligible to work in the United States. Free h&r block military This includes completing the Form I-9, Employment Eligibility Verification. Free h&r block military Form I-9 is available from the U. Free h&r block military S. Free h&r block military Citizenship and Immigration Services (USCIS) offices or by calling the Bureau of Citizenship and Immigration Services Forms Request Line at 1-800-870-3676. Free h&r block military Form I-9 is also available from the USCIS website at www. Free h&r block military uscis. Free h&r block military gov. Free h&r block military You can also contact the USCIS at 1-800-375-5283 for more information. Free h&r block military New hire reporting. Free h&r block military   You are required to report any new employee to a designated state new hire registry. Free h&r block military Many states accept a copy of Form W-4 with employer information added. Free h&r block military Visit the Office of Child Support Enforcement website at www. Free h&r block military acf. Free h&r block military hhs. Free h&r block military gov/programs/cse/newhire for more information. Free h&r block military Family Employees Generally, the wages you pay to family members who are your employees are subject to employment taxes. Free h&r block military However, certain exemptions may apply to wages paid to your child, spouse, or parent. Free h&r block military Exemptions for your child. Free h&r block military   Payments for the services of your child under age 18 who works for you in your trade or business (including a farm) are not subject to social security and Medicare taxes. Free h&r block military However, see Nonexempt services of a child or spouse , later. Free h&r block military Payments for the services of your child under age 21 employed by you in other than a trade or business, such as payments for household services in your home, are also not subject to social security or Medicare taxes. Free h&r block military Payments for the services of your child under age 21 employed by you, whether or not in your trade or business, are not subject to FUTA tax. Free h&r block military Although not subject to social security, Medicare, or FUTA tax, the child's wages still may be subject to federal income tax withholding. Free h&r block military Exemptions for your spouse. Free h&r block military   Payments for the services of your spouse who works for you in your trade or business are subject to federal income tax withholding and social security and Medicare taxes, but not FUTA tax. Free h&r block military   Payments for the services of your spouse employed by you in other than a trade or business, such as payments for household services in your home, are not subject to social security, Medicare, or FUTA taxes. Free h&r block military Nonexempt services of a child or spouse. Free h&r block military   Payments for the services of your child or spouse are subject to federal income tax withholding as well as social security, Medicare, and FUTA taxes if he or she works for any of the following entities. Free h&r block military A corporation, even if it is controlled by you. Free h&r block military A partnership, even if you are a partner. Free h&r block military This does not apply to wages paid to your child if each partner is a parent of the child. Free h&r block military An estate or trust, even if it is the estate of a deceased parent. Free h&r block military In these situations, the child or spouse is considered to work for the corporation, partnership, or estate, not you. Free h&r block military Exemptions for your parent. Free h&r block military   Payments for the services of your parent employed by you in your trade or business are subject to federal income tax withholding and social security and Medicare taxes. Free h&r block military Social security and Medicare taxes do not apply to wages paid to your parent for services not in your trade or business, but they do apply to payments for household services in your home if both the following conditions are satisfied. Free h&r block military You have a child living in your home who is under age 18 or has a physical or mental condition that requires care by an adult for at least 4 continuous weeks in a calendar quarter. Free h&r block military You are a widow or widower; or divorced and not remarried; or have a spouse in the home who, because of a physical or mental condition, cannot care for your child for at least 4 continuous weeks in the quarter. Free h&r block military   Wages you pay to your parent are not subject to FUTA tax, regardless of the type of services provided. Free h&r block military Qualified joint venture. Free h&r block military   If spouses elect to be treated as a qualified joint venture instead of a partnership, either spouse may report and pay the employment taxes due on the wages paid to employees using the EIN of that spouse's sole proprietorship. Free h&r block military For more information about qualified joint ventures, see chapter 12. Free h&r block military Crew Leaders If farmworkers are provided by a crew leader, the crew leader may be the employer of the workers. Free h&r block military Social security and Medicare taxes. Free h&r block military   For social security and Medicare tax purposes, the crew leader is the employer of the workers if both of the following requirements are met. Free h&r block military The crew leader pays (either on his or her own behalf or on behalf of the farmer) the workers for their farm labor. Free h&r block military The crew leader has not entered into a written agreement with the farmer under which the crew leader is designated as an employee of the farmer. Free h&r block military Federal income tax withholding. Free h&r block military   If the crew leader is the employer for social security and Medicare tax purposes, the crew leader is the employer for federal income tax withholding purposes. Free h&r block military Federal unemployment (FUTA) tax. Free h&r block military   For FUTA tax purposes, the crew leader is the employer of the workers if, in addition to the earlier requirements, either of the following requirements are met. Free h&r block military The crew leader is registered under the Migrant and Seasonal Agricultural Worker Protection Act. Free h&r block military Substantially all crew members operate or maintain mechanized equipment provided by the crew leader as part of the service to the farmer. Free h&r block military   The farmer is the employer of workers furnished by a crew leader in all other situations. Free h&r block military In addition, the farmer is the employer of workers furnished by a registered crew leader if the workers are the employees of the farmer under the common-law test. Free h&r block military For example, some farmers employ individuals to recruit farmworkers exclusively for them. Free h&r block military Although these individuals may be required to register under the Migrant and Seasonal Agricultural Worker Protection Act, the workers are employed directly by the farmer. Free h&r block military The farmer is the employer in these cases. Free h&r block military For information about common-law employees, see section 1 of Publication 15-A. Free h&r block military For information about crew leaders, see the Department of Labor website at www. Free h&r block military dol. Free h&r block military gov/whd/regs/compliance/whdfs49. Free h&r block military htm. Free h&r block military Social Security and Medicare Taxes All cash wages you pay to an employee during the year for farmwork are subject to social security and Medicare taxes if you meet either of the following tests. Free h&r block military You pay the employee $150 or more in cash wages (count all wages paid on a time, piecework, or other basis) during the year for farmwork (the $150 test). Free h&r block military The $150 test applies separately to each farmworker that you employ. Free h&r block military If you employ a family of workers, each member is treated separately. Free h&r block military Do not count wages paid by other employers. Free h&r block military You pay cash and noncash wages of $2,500 or more during the year to all your employees for farmwork (the $2,500 test). Free h&r block military If the $2,500 test for the group is not met, the $150 test for an employee still applies. Free h&r block military Exceptions. Free h&r block military   Annual cash wages of less than $150 you pay to a seasonal farmworker are not subject to social security and Medicare taxes, even if you pay $2,500 or more to all your farmworkers. Free h&r block military However, these wages count toward the $2,500 test for determining whether other farmworkers' wages are subject to social security and Medicare taxes. Free h&r block military   A seasonal farmworker is a worker who: Works as a hand-harvest laborer, Is paid piece rates in an operation usually paid on this basis in the region of employment, Commutes daily from his or her permanent home to the farm, and Worked in agriculture less than 13 weeks in the preceding calendar year. Free h&r block military   See Family Employees , earlier, for certain exemptions from social security and Medicare taxes that apply to your child, spouse, and parent. Free h&r block military Religious exemption. Free h&r block military   An exemption from social security and Medicare taxes is available to members of a recognized religious group or division opposed to public insurance. Free h&r block military This exemption is available only if both the employee and the employer are members of the group or division. Free h&r block military   For more information, see Publication 517, Social Security and Other Information for Members of the Clergy and Religious Workers. Free h&r block military Cash wages. Free h&r block military   Only cash wages paid to farmworkers are subject to social security and Medicare taxes. Free h&r block military Cash wages include checks, money orders, and any kind of money or cash. Free h&r block military   Only cash wages subject to social security and Medicare taxes are credited to your employees for social security benefit purposes. Free h&r block military Payments not subject to these taxes, such as commodity wages, do not contribute to your employees' social security coverage. Free h&r block military For information about social security benefits, contact the SSA at 1-800-772-1213 or online at www. Free h&r block military socialsecurity. Free h&r block military gov. Free h&r block military Noncash wages. Free h&r block military    Noncash wages include food, lodging, clothing, transportation passes, and other goods and services. Free h&r block military Noncash wages paid to farmworkers, including commodity wages, are not subject to social security and Medicare taxes. Free h&r block military However, they are subject to these taxes if the substance of the transaction is a cash payment. Free h&r block military For information on lodging provided as a condition of employment, see Publication 15-B. Free h&r block military   Report the value of noncash wages in box 1 of Form W-2 together with cash wages. Free h&r block military Do not show noncash wages in box 3 or in box 5, (unless the substance of the transaction is a cash payment). Free h&r block military Tax rates and social security wage limit. Free h&r block military   For 2013, the employer and the employee will pay the following taxes. Free h&r block military The employer and employee each pay 6. Free h&r block military 2% of cash wages for social security tax (old-age, survivors, and disability insurance). Free h&r block military The employer and employee each pay 1. Free h&r block military 45% of cash wages for Medicare tax (hospital insurance). Free h&r block military The employee pays 0. Free h&r block military 9% of cash wages in excess of $200,000 for Additional Medicare Tax. Free h&r block military Wage limit. Free h&r block military   The limit on wages subject to the social security tax for 2013 is $113,700. Free h&r block military There is no limit on wages subject to the Medicare tax. Free h&r block military All covered wages are subject to the Medicare tax. Free h&r block military Additionally, all wages in excess of $200,000 are subject to Additional Medicare Tax withholding. Free h&r block military Paying employee's share. Free h&r block military   If you would rather pay the employee's share of social security and Medicare taxes without deducting it from his or her wages, you may do so. Free h&r block military It is additional income to the employee. Free h&r block military You must include it in box 1 of the employee's Form W-2, but do not count it as social security and Medicare wages (boxes 3 and 5 on Form W-2) or as wages for federal unemployment (FUTA) tax purposes. Free h&r block military Example. Free h&r block military Jane operates a small family fruit farm. Free h&r block military She employs day laborers in the picking season to enable her to timely get her crop to market. Free h&r block military She does not deduct the employees' share of social security and Medicare taxes from their pay; instead, she pays it on their behalf. Free h&r block military When her accountant, Susan, prepares the employees' Forms W-2, she adds each employee's share of social security and Medicare taxes paid by Jane to the employee's wage income (box 1 of Form W-2), but does not include it in box 3 (social security wages) or box 5 (Medicare wages and tips). Free h&r block military For 2013, Jane paid Mary $1,000 during the year. Free h&r block military Susan enters $1,076. Free h&r block military 50 in box 1 of Mary's Form W-2 ($1,000 wages plus $76. Free h&r block military 50 social security and Medicare taxes paid for Mary). Free h&r block military She enters $1,000 in boxes 3 and 5 of Mary's Form W-2. Free h&r block military Additional Medicare Tax. Free h&r block military   In addition to withholding Medicare tax at 1. Free h&r block military 45%, you must withhold a 0. Free h&r block military 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. Free h&r block military You are required to begin withholding Additional Medicare Tax in the pay period in which you pay wages in excess of $200,000 to an employee and continue to withhold it each pay period until the end of the calendar year. Free h&r block military Additional Medicare Tax is only imposed on the employee. Free h&r block military There is no employer share of Additional Medicare Tax. Free h&r block military All wages that are subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 threshold. Free h&r block military   For more information on what wages are subject to Medicare tax, see the chart, Special Rules for Various Types of Services and Payments, in section 15 of Publication 15 (Circular E). Free h&r block military For more information on Additional Medicare Tax, visit IRS. Free h&r block military gov and enter “Additional Medicare Tax” in the search box. Free h&r block military Federal Income Tax Withholding If the cash wages you pay to farmworkers are subject to social security and Medicare taxes, they are also subject to federal income tax withholding. Free h&r block military Although noncash wages are subject to federal income tax, withhold income tax only if you and the employee agree to do so. Free h&r block military The amount to withhold is figured on gross wages without taking out social security and Medicare taxes, union dues, insurance, etc. Free h&r block military Form W-4. Free h&r block military   Generally, the amount of federal income tax you withhold is based on the employee's marital status and withholding allowances claimed on the employee's Form W-4. Free h&r block military In general, an employee can claim withholding allowances on Form W-4 equal to the number of exemptions the employee will be entitled to claim on his or her tax return. Free h&r block military An employee may also be able to claim a special withholding allowance and allowances for estimated deductions and credits. Free h&r block military   Do not withhold federal income tax from the wages of an employee who, by filing Form W-4, certifies that he or she had no federal income tax liability last year and anticipates no liability for the current year. Free h&r block military   You should give each new employee a Form W-4 as soon as you hire the employee. Free h&r block military For Spanish-speaking employees, you may use Formulario W-4(SP) which is the Spanish translation of Form W-4. Free h&r block military Have the employee complete and return the form to you before the first payday. Free h&r block military If the employee does not return the completed form, you must withhold federal income tax as if the employee is single and claims no withholding allowances. Free h&r block military New Form W-4 for 2014. Free h&r block military   You should make the 2014 Form W-4 available to your employees and encourage them to check their income tax withholding for 2014. Free h&r block military Those employees who owed a large amount of tax or received a large refund for 2013 may want to submit a new Form W-4. Free h&r block military You cannot accept substitute Forms W-4 developed by employees. Free h&r block military How to figure withholding. Free h&r block military   You can use one of several methods to determine the amount to withhold. Free h&r block military The methods are described in Publication 51 (Circular A), which contains tables showing the correct amount of federal income tax you should withhold. Free h&r block military Publication 51 (Circular A) also contains additional information about federal income tax withholding. Free h&r block military Nonemployee compensation. Free h&r block military   Generally, you do not have to withhold federal income tax on payments for services to individuals who are not your employees. Free h&r block military However, you may be required to report these payments on Form 1099-MISC, Miscellaneous Income, and to withhold under the backup withholding rules. Free h&r block military For more information, see the Instructions for Form 1099-MISC. Free h&r block military Required Notice to Employees About Earned Income Credit (EIC) You must provide notification about EIC to each employee who worked for you at any time during the year and from whom you did not withhold any federal income tax. Free h&r block military However, you do not have to notify employees who claim exemption from federal income tax withholding on Form W-4. Free h&r block military You meet the notification requirement by giving each employee any of the following. Free h&r block military Form W-2, which contains EIC notification on the back of Copy B. Free h&r block military A substitute Form W-2 with the exact EIC wording shown on the back of copy B of Form W-2. Free h&r block military Notice 797, Possible Federal Tax Refund Due to the Earned Income Credit (EIC). Free h&r block military Your own written statement with the exact wording of Notice 797. Free h&r block military For more information, see Publication 51 (Circular A). Free h&r block military Reporting and Paying Social Security, Medicare, and Withheld Federal Income Taxes You must withhold federal income, social security, and Medicare taxes required to be withheld from the salaries and wages of your employees. Free h&r block military You are liable for the payment of these taxes to the federal government whether or not you collect them from your employees. Free h&r block military If, for example, you withhold less than the correct tax from an employee's wages, you are still liable for the full amount. Free h&r block military You must also pay the employer's share of social security and Medicare taxes. Free h&r block military There is no employer share of Additional Medicare Tax. Free h&r block military Form 943. Free h&r block military   Report withheld federal income tax, social security tax, and Medicare tax on Form 943. Free h&r block military Your 2013 Form 943 is due by January 31, 2014 (or February 10, 2014, if you made deposits on time in full payment of the taxes due for the year). Free h&r block military Deposits. Free h&r block military   Generally, you must deposit both the employer and employee shares of social security and Medicare taxes and federal income tax withheld during the year. Free h&r block military However, you may make payments with Form 943 instead of depositing them if you accumulate less than a $2,500 tax liability (“Total taxes after adjustments” line on Form 943) during the year and you pay in full with a timely filed return. Free h&r block military   For more information on deposit rules, see Publication 51 (Circular A). Free h&r block military Electronic deposit requirement. Free h&r block military   You must use electronic funds transfer to make all federal tax deposits. Free h&r block military Generally, electronic funds transfers are made using EFTPS. Free h&r block military If you do not want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make electronic deposits on your behalf. Free h&r block military Also, you may arrange for your financial institution to initiate a same-day wire payment on your behalf. Free h&r block military EFTPS is a free service provided by the Department of Treasury. Free h&r block military Services provided by your tax professional, financial institution, payroll service, or other third party may have a fee. Free h&r block military   For more information on making federal tax deposits, see section 7 of Publication 51 (Circular A). Free h&r block military To get more information about EFTPS or to enroll in EFTPS, visit www. Free h&r block military eftps. Free h&r block military gov or call 1-800-555-4477 or 1-800-733-4829 (TDD). Free h&r block military Additional information about EFTPS is also available in Publication 966. Free h&r block military Form W-2. Free h&r block military   By January 31, you must furnish each employee a Form W-2 showing total wages for the previous year and total federal income tax, social security tax, and Medicare tax withheld. Free h&r block military However, if an employee stops working for you and requests the form earlier, you must give it to the employee within 30 days of the later of the following dates. Free h&r block military The date the employee requests the form. Free h&r block military The date you make your final payment of wages to the employee. Free h&r block military Compensation paid to H-2A visa holders. Free h&r block military   Report compensation of $600 or more paid to foreign agricultural workers who entered the country on H-2A visas in box 1 of Form W-2. Free h&r block military Compensation paid to H-2A workers for agricultural labor performed in connection with this visa is not subject to social security and Medicare taxes, and therefore should not be reported as wages subject to social security tax (line 2), Medicare tax (line 4), or Additional Medicare Tax (line 6) on Form 943, and should not be reported as social security wages (box 3) or Medicare wages (box 5) on Form W-2. Free h&r block military   An employer is not required to withhold federal income tax from compensation it pays to an H-2A worker for agricultural labor performed in connection with this visa unless the worker asks for withholding and the employer agrees. Free h&r block military In this case, the worker must give the employer a completed Form W-4. Free h&r block military Federal income tax withheld should be reported on Form 943, line 8, and in box 2 of Form W-2. Free h&r block military   These reporting rules apply when the H-2A worker provides his or her taxpayer identification number (TIN) to the employer. Free h&r block military For the rules relating to backup withholding and reporting when the H-2A worker does not provide a TIN, see the Instructions for Form 1099-MISC and the Instructions for Form 945. Free h&r block military Trust fund recovery penalty. Free h&r block military   If you are responsible for withholding, accounting for, depositing, or paying federal withholding taxes and willfully fail to do so, you can be held liable for a penalty equal to the withheld tax not paid. Free h&r block military A responsible person can be an officer of a corporation, a partner, a sole proprietor, or an employee of any form of business. Free h&r block military A trustee or agent with authority over the funds of the business can also be held responsible for the penalty. Free h&r block military   Willfully means voluntarily, consciously, and intentionally. Free h&r block military Paying other expenses of the business instead of the taxes due is acting willfully. Free h&r block military Consequences of treating an employee as an independent contractor. Free h&r block military   If you classify an employee as an independent contractor and you have no reasonable basis for doing so, you may be held liable for employment taxes for that worker. Free h&r block military See Publication 15-A for more information. Free h&r block military Federal Unemployment (FUTA) Tax You must pay FUTA tax if you meet either of the following tests. Free h&r block military You paid cash wages of $20,000 or more to farmworkers in any calendar quarter during the current or preceding calendar year. Free h&r block military You employed 10 or more farmworkers for some part of at least 1 day during any 20 or more different calendar weeks during the current or preceding calendar year. Free h&r block military These rules do not apply to exempt services of your spouse, your parents, or your children under age 21. Free h&r block military See Family Employees , earlier. Free h&r block military Alien farmworkers. Free h&r block military   Wages paid to aliens admitted on a temporary basis to the United States to perform farmwork (also known as “H-2A visa workers”) are exempt from FUTA tax. Free h&r block military However, include your employment of these workers and the wages you paid them to determine whether you meet either of the above tests. Free h&r block military Commodity wages. Free h&r block military   Payments in kind for farm labor are not cash wages. Free h&r block military Do not count them to figure whether you are subject to FUTA tax or to figure how much tax you owe. Free h&r block military Tax rate and credit. Free h&r block military   The gross FUTA tax rate is 6. Free h&r block military 0% of the first $7,000 cash wages you pay to each employee during the year. Free h&r block military However, you are given a credit of up to 5. Free h&r block military 4% of the first $7,000 cash wages you pay to each employee for the state unemployment tax you pay. Free h&r block military If your state tax rate (experience rate) is less than 5. Free h&r block military 4%, you may still be allowed the full 5. Free h&r block military 4% credit. Free h&r block military   If you do not pay the state tax, you cannot take the credit. Free h&r block military If you are exempt from state unemployment tax for any reason, the full 6. Free h&r block military 0% rate applies. Free h&r block military See the Instructions for Form 940 for additional information. Free h&r block military More information. Free h&r block military   For more information on FUTA tax, see Publication 51 (Circular A). Free h&r block military Reporting and Paying FUTA Tax The FUTA tax is imposed on you as the employer. Free h&r block military It must not be collected or deducted from the wages of your employees. Free h&r block military Form 940. Free h&r block military   Report FUTA tax on Form 940. Free h&r block military The 2013 Form 940 is due January 31, 2014 (or February 10, 2014, if you timely deposited the full amount of your 2013 FUTA tax). Free h&r block military Deposits. Free h&r block military   If at the end of any calendar quarter you owe, but have not yet deposited, more than $500 in FUTA tax for the year, you must make a deposit by the end of the following month. Free h&r block military If the undeposited tax is $500 or less at the end of a quarter, you do not have to deposit it. Free h&r block military You can add it to the tax for the next quarter. Free h&r block military If the total undeposited tax is more than $500 at the end of the next quarter, a deposit will be required. Free h&r block military If the total undeposited tax at the end of the 4th quarter is $500 or less, you can either make a deposit or pay it with your return by the January 31, 2014, due date. Free h&r block military Electronic deposit requirement. Free h&r block military   You must use electronic funds transfer to make all federal tax deposits. Free h&r block military Generally, electronic funds transfers are made using EFTPS. Free h&r block military If you do not want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make electronic deposits on your behalf. Free h&r block military Also, you may arrange for your financial institution to initiate a same-day wire payment on your behalf. Free h&r block military EFTPS is a free service provided by the Department of Treasury. Free h&r block military Services provided by your tax professional, financial institution, payroll service, or other third party may have a fee. Free h&r block military   For more information on making federal tax deposits, see section 7 of Publication 51 (Circular A). Free h&r block military To get more information about EFTPS or to enroll in EFTPS, visit www. Free h&r block military eftps. Free h&r block military gov or call 1-800-555-4477 or 1-800-733-4829 (TDD). Free h&r block military Additional information about EFTPS is also available in Publication 966. Free h&r block military Prev  Up  Next   Home   More Online Publications