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H&r block taxes online 12. H&r block taxes online   How To Get More Information Table of Contents Internal Revenue ServiceLow Income Taxpayer Clinics (LITCs) Small Business Administration Other Federal Agencies This section describes the help the IRS and other federal agencies offer to taxpayers who operate their own businesses. H&r block taxes online Internal Revenue Service Whether it's help with a tax issue, preparing your tax return or a need for a free publication or form, get the help you need the way you want it: online, use a smart phone, call or walk in to an IRS office or volunteer site near you. H&r block taxes online Free help with your return. H&r block taxes online   You can get free help preparing your return nationwide from IRS-certified volunteers. H&r block taxes online The Volunteer Income Tax Assistance (VITA) program helps low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers. H&r block taxes online The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. H&r block taxes online Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. H&r block taxes online In addition, some VITA and TCE sites provide taxpayers the opportunity to prepare their own return with help from an IRS-certified volunteer. H&r block taxes online To find the nearest VITA or TCE site, you can use the VITA Locator Tool on IRS. H&r block taxes online gov, download the IRS2Go app, or call 1-800-906-9887. H&r block taxes online   As part of the TCE program, AARP offers the Tax-Aide counseling program. H&r block taxes online To find the nearest AARP Tax-Aide site, visit AARP's website at www. H&r block taxes online aarp. H&r block taxes online org/money/taxaide or call 1-888-227-7669. H&r block taxes online For more information on these programs, go to IRS. H&r block taxes online gov and enter “VITA” in the search box. H&r block taxes online Internet. H&r block taxes online    IRS. H&r block taxes online gov and IRS2Go are ready when you are —24 hours a day, 7 days a week. H&r block taxes online Download the free IRS2Go app from the iTunes app store or from Google Play. H&r block taxes online Use it to check your refund status, order transcripts of your tax returns or tax account, watch the IRS YouTube channel, get IRS news as soon as it's released to the public, subscribe to filing season updates or daily tax tips, and follow the IRS Twitter news feed, @IRSnews, to get the latest federal tax news, including information about tax law changes and important IRS programs. H&r block taxes online Check the status of your 2013 refund with the Where's My Refund? application on IRS. H&r block taxes online gov or download the IRS2Go app and select the Refund Status option. H&r block taxes online The IRS issues more than 9 out of 10 refunds in less than 21 days. H&r block taxes online Using these applications, you can start checking on the status of your return within 24 hours after we receive your e-filed return or 4 weeks after you mail a paper return. H&r block taxes online You will also be given a personalized refund date as soon as the IRS processes your tax return and approves your refund. H&r block taxes online The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. H&r block taxes online Use the Interactive Tax Assistant (ITA) to research your tax questions. H&r block taxes online No need to wait on the phone or stand in line. H&r block taxes online The ITA is available 24 hours a day, 7 days a week, and provides you with a variety of tax information related to general filing topics, deductions, credits, and income. H&r block taxes online When you reach the response screen, you can print the entire interview and the final response for your records. H&r block taxes online New subject areas are added on a regular basis. H&r block taxes online  Answers not provided through ITA may be found in Tax Trails, one of the Tax Topics on IRS. H&r block taxes online gov which contain general individual and business tax information or by searching the IRS Tax Map, which includes an international subject index. H&r block taxes online You can use the IRS Tax Map, to search publications and instructions by topic or keyword. H&r block taxes online The IRS Tax Map integrates forms and publications into one research tool and provides single-point access to tax law information by subject. H&r block taxes online When the user searches the IRS Tax Map, they will be provided with links to related content in existing IRS publications, forms and instructions, questions and answers, and Tax Topics. H&r block taxes online Coming this filing season, you can immediately view and print for free all 5 types of individual federal tax transcripts (tax returns, tax account, record of account, wage and income statement, and certification of non-filing) using Get Transcript. H&r block taxes online You can also ask the IRS to mail a return or an account transcript to you. H&r block taxes online Only the mail option is available by choosing the Tax Records option on the IRS2Go app by selecting Mail Transcript on IRS. H&r block taxes online gov or by calling 1-800-908-9946. H&r block taxes online Tax return and tax account transcripts are generally available for the current year and the past three years. H&r block taxes online Determine if you are eligible for the EITC and estimate the amount of the credit with the Earned Income Tax Credit (EITC) Assistant. H&r block taxes online Visit Understanding Your IRS Notice or Letter to get answers to questions about a notice or letter you received from the IRS. H&r block taxes online If you received the First Time Homebuyer Credit, you can use the First Time Homebuyer Credit Account Look-up tool for information on your repayments and account balance. H&r block taxes online Check the status of your amended return using Where's My Amended Return? Go to IRS. H&r block taxes online gov and enter Where's My Amended Return? in the search box. H&r block taxes online You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. H&r block taxes online It can take up to 3 weeks from the date you mailed it to show up in our system. H&r block taxes online Make a payment using one of several safe and convenient electronic payment options available on IRS. H&r block taxes online gov. H&r block taxes online Select the Payment tab on the front page of IRS. H&r block taxes online gov for more information. H&r block taxes online Determine if you are eligible and apply for an online payment agreement, if you owe more tax than you can pay today. H&r block taxes online Figure your income tax withholding with the IRS Withholding Calculator on IRS. H&r block taxes online gov. H&r block taxes online Use it if you've had too much or too little withheld, your personal situation has changed, you're starting a new job or you just want to see if you're having the right amount withheld. H&r block taxes online Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. H&r block taxes online gov. H&r block taxes online Request an Electronic Filing PIN by going to IRS. H&r block taxes online gov and entering Electronic Filing PIN in the search box. H&r block taxes online Download forms, instructions and publications, including accessible versions for people with disabilities. H&r block taxes online Locate the nearest Taxpayer Assistance Center (TAC) using the Office Locator tool on IRS. H&r block taxes online gov, or choose the Contact Us option on the IRS2Go app and search Local Offices. H&r block taxes online An employee can answer questions about your tax account or help you set up a payment plan. H&r block taxes online Before you visit, check the Office Locator on IRS. H&r block taxes online gov, or Local Offices under Contact Us on IRS2Go to confirm the address, phone number, days and hours of operation, and the services provided. H&r block taxes online If you have a special need, such as a disability, you can request an appointment. H&r block taxes online Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. H&r block taxes online Apply for an Employer Identification Number (EIN). H&r block taxes online Go to IRS. H&r block taxes online gov and enter Apply for an EIN in the search box. H&r block taxes online Read the Internal Revenue Code, regulations, or other official guidance. H&r block taxes online Read Internal Revenue Bulletins. H&r block taxes online Sign up to receive local and national tax news and more by email. H&r block taxes online Just click on “subscriptions” above the search box on IRS. H&r block taxes online gov and choose from a variety of options. H&r block taxes online    Phone. H&r block taxes online You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. H&r block taxes online Download the free IRS2Go app from the iTunes app store or from Google Play. H&r block taxes online Call to locate the nearest volunteer help site, 1-800-906-9887 or you can use the VITA Locator Tool on IRS. H&r block taxes online gov, or download the IRS2Go app. H&r block taxes online Low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. H&r block taxes online The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. H&r block taxes online Most VITA and TCE sites offer free electronic filing. H&r block taxes online Some VITA and TCE sites provide IRS-certified volunteers who can help prepare your tax return. H&r block taxes online Through the TCE program, AARP offers the Tax-Aide counseling program; call 1-888-227-7669 to find the nearest Tax-Aide location. H&r block taxes online Call the automated Where's My Refund? information hotline to check the status of your 2013 refund 24 hours a day, 7 days a week at 1-800-829-1954. H&r block taxes online If you e-file, you can start checking on the status of your return within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. H&r block taxes online The IRS issues more than 9 out of 10 refunds in less than 21 days. H&r block taxes online Where's My Refund? will give you a personalized refund date as soon as the IRS processes your tax return and approves your refund. H&r block taxes online Before you call this automated hotline, have your 2013 tax return handy so you can enter your social security number, your filing status, and the exact whole dollar amount of your refund. H&r block taxes online The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. H&r block taxes online Note, the above information is for our automated hotline. H&r block taxes online Our live phone and walk-in assistors can research the status of your refund only if it's been 21 days or more since you filed electronically or more than 6 weeks since you mailed your paper return. H&r block taxes online Call the Amended Return Hotline, 1-866-464-2050, to check the status of your amended return. H&r block taxes online You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. H&r block taxes online It can take up to 3 weeks from the date you mailed it to show up in our system. H&r block taxes online Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, publications, and prior-year forms and instructions (limited to 5 years). H&r block taxes online You should receive your order within 10 business days. H&r block taxes online Call TeleTax, 1-800-829-4477, to listen to pre-recorded messages covering general and business tax information. H&r block taxes online If, between January and April 15, you still have questions about the Form 1040, 1040A, or 1040EZ (like filing requirements, dependents, credits, Schedule D, pensions and IRAs or self-employment taxes), call 1-800-829-1040. H&r block taxes online Call using TTY/TDD equipment, 1-800-829-4059 to ask tax questions or order forms and publications. H&r block taxes online The TTY/TDD telephone number is for people who are deaf, hard of hearing, or have a speech disability. H&r block taxes online These individuals can also contact the IRS through relay services such as the Federal Relay Service. H&r block taxes online    Walk-in. H&r block taxes online You can find a selection of forms, publications and services — in-person. H&r block taxes online Products. H&r block taxes online You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. H&r block taxes online Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. H&r block taxes online Services. H&r block taxes online You can walk in to your local TAC for face-to-face tax help. H&r block taxes online An employee can answer questions about your tax account or help you set up a payment plan. H&r block taxes online Before visiting, use the Office Locator tool on IRS. H&r block taxes online gov, or choose the Contact Us option on the IRS2Go app and search Local Offices for days and hours of operation, and services provided. H&r block taxes online    Mail. H&r block taxes online You can send your order for forms, instructions, and publications to the address below. H&r block taxes online You should receive a response within 10 business days after your request is received. H&r block taxes online  Internal Revenue Service 1201 N. H&r block taxes online Mitsubishi Motorway Bloomington, IL 61705-6613    The Taxpayer Advocate Service Is Here to Help You. H&r block taxes online The Taxpayer Advocate Service (TAS) is your voice at the IRS. H&r block taxes online Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. H&r block taxes online   What can TAS do for you? We can offer you free help with IRS problems that you can't resolve on your own. H&r block taxes online We know this process can be confusing, but the worst thing you can do is nothing at all! TAS can help if you can't resolve your tax problem and: Your problem is causing financial difficulties for you, your family, or your business. H&r block taxes online You face (or your business is facing) an immediate threat of adverse action. H&r block taxes online You've tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised. H&r block taxes online   If you qualify for our help, you'll be assigned to one advocate who'll be with you at every turn and will do everything possible to resolve your problem. H&r block taxes online Here's why we can help: TAS is an independent organization within the IRS. H&r block taxes online Our advocates know how to work with the IRS. H&r block taxes online Our services are free and tailored to meet your needs. H&r block taxes online We have offices in every state, the District of Columbia, and Puerto Rico. H&r block taxes online   How can you reach us? If you think TAS can help you, call your local advocate, whose number is in your local directory and at Taxpayer Advocate, or call us toll-free at 1-877-777-4778. H&r block taxes online   How else does TAS help taxpayers?  TAS also works to resolve large-scale, systemic problems that affect many taxpayers. H&r block taxes online If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System. H&r block taxes online Low Income Taxpayer Clinics (LITCs) Low Income Taxpayer Clinics (LITCs) serve individuals whose income is below a certain level and need to resolve tax problems such as audits, appeals and tax collection disputes. H&r block taxes online Some clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. H&r block taxes online Visit Taxpayer Advocate or see IRS Publication 4134, Low Income Taxpayer Clinic List. H&r block taxes online Small Business Administration The Small Business Administration (SBA) offers training and educational programs, counseling services, financial programs, and contract assistance for small business owners. H&r block taxes online The SBA also has publications and videos on a variety of business topics. H&r block taxes online The following briefly describes assistance provided by the SBA. H&r block taxes online Small Business Development Centers (SBDCs). H&r block taxes online   SBDCs provide counseling, training, and technical services to current and prospective small business owners who cannot afford the services of a private consultant. H&r block taxes online Help is available when beginning, improving, or expanding a small business. H&r block taxes online Business Information Centers (BICs). H&r block taxes online   BICs offer a small business reference library, management video tapes, and computer technology to help plan a business. H&r block taxes online BICs also offer one-on-one assistance. H&r block taxes online Individuals who are in business or are interested in starting a business can use BICs as often as they wish at no charge. H&r block taxes online Service Corps of Retired Executives (SCORE). H&r block taxes online   SCORE provides small business counseling and training to current and prospective small business owners. H&r block taxes online SCORE is made up of current and former business people who offer their expertise and knowledge to help people start, manage, and expand a small business. H&r block taxes online SCORE also offers a variety of small business workshops. H&r block taxes online Internet. H&r block taxes online    You can visit the SBA website at www. H&r block taxes online sba. H&r block taxes online gov. H&r block taxes online While visiting the SBA website, you can find a variety of information of interest to small business owners. H&r block taxes online Phone. H&r block taxes online    Call the SBA Answer Desk at 1-800-U-ASK-SBA (1-800-827-5722) for general information about programs available to assist small business owners. H&r block taxes online Walk-in. H&r block taxes online   You can walk in to a Small Business Development Center or Business Information Center to request assistance with your small business. H&r block taxes online To find the location nearest you, visit the SBA website or call the SBA Answer Desk. H&r block taxes online Other Federal Agencies Other federal agencies also publish publications and pamphlets to assist small businesses. H&r block taxes online Most of these are available from the Superintendent of Documents at the Government Printing Office. H&r block taxes online You can get information and order these publications and pamphlets in several ways. H&r block taxes online Internet. H&r block taxes online   You can visit the GPO website at  www. H&r block taxes online access. H&r block taxes online gpo. H&r block taxes online gov. H&r block taxes online Mail. H&r block taxes online   Write to the GPO at the following address. H&r block taxes online  Superintendent of Documents U. H&r block taxes online S. H&r block taxes online Government Printing Office P. H&r block taxes online O. H&r block taxes online Box 979050 St. H&r block taxes online Louis, MO 63917-9000 Phone. H&r block taxes online   Call the GPO toll-free at 1-866-512-1800 or at 202-512-1800 from the Washington, DC, area. H&r block taxes online Prev  Up  Next   Home   More Online Publications
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Foreign Electronic Payments

International taxpayers who do not have a U.S. bank account may follow the instructions below to transfer funds from their foreign bank account directly to the Internal Revenue Service for payment of their individual or business tax liabilities.

Caution: Although this method of payment is available to anyone with a foreign bank account (which includes many types of financial institutions), it can be costly.  Please consider other options, including paying by credit card, to avoid the high cost of international wire transfer.  For more information on how to use the Electronic Federal Tax Payment System (EFTPS) or other U.S. based payment methods, please visit the Make a Payment site.

Note: Payments of U.S. tax must be remitted to the U.S. Internal Revenue Service (IRS) in U.S. dollars.

International Wire Transfer
In order to complete an international wire transfer through your foreign bank, you will need to complete the Same-Day Taxpayer Payment Worksheet (PDF 265KB) with the proper Tax Type Code and tax period (year and/or quarter) so that the funds will be properly applied to your IRS tax liability.  After you have completed the worksheet, take it to your bank to request international wiring.

Your foreign bank must have a banking relationship with a U.S. bank, although the U.S. bank does not have to be an affiliate or otherwise related to the foreign bank.  Small local banks may not be able to affect an international wire transfer but most large banks can.  If your bank is able to transfer money to the U.S., it will ask you to complete an application for international wiring.  You will need the Routing Transit Number (RTN), also known as the American Banking Association (ABA), number for the “Destination Bank”, sometimes referred to by banks as “Beneficiary’s Bank”.

To complete a wire transfer you will need the following information:

  • A completed Same-Day Taxpayer Worksheet
  • IRS account number – 20092900IRS (optional)
  • IRS account RTN/ABA Number – 091036164 US TREAS SINGLE TX

Note - Please complete the Same Day Taxpayer Worksheet PRIOR to going to your bank.  The information from the worksheet will be needed to complete the wiring application required by the bank.

The financial institution may charge you a fee for the wiring service.  If your foreign bank needs assistance, they may contact the Federal Tax Payment Service Customer Service at 314-425-1810 (Not toll free).  If you have questions regarding international wiring, please contact your local office internationally for assistance.

For more information on electronic payment options, download the Publication 966, Electronic Choices to Pay All Your Federal Taxes (PDF 796 KB).

 

Foreign Electronic Payments – Tax Type Code

Tax Type Codes for Individuals:

Form Number Form Name & Type of Payment 5-Digit Tax Type Code

1040

US Individual Income Tax Return  

Payment for amended return

10400

Extension filed

10402

Advance payment of deficiency

10404

Estimated tax payment

10406

Subsequent Payment (on return or IRS Notice)

10407

 

Tax Type Codes for Businesses:

Form Number Form Name (Type of Payment) 5-Digit Tax Type Code
720

Quarterly Excise Tax Return

Deposit

 

72005

Payment due on return or IRS notice

72007

940

Employer’s Annual Unemployment Tax (FUTA)

Deposit

 

09405

Payment due on return or IRS notice

09407

941

Employer’s Quarterly Employment Tax (FICA)

Deposit

 

94105

Payment due on return or IRS notice

94107

Deficiency assessed by IRS

94104

944

Employer’s Annual Employment Tax

Deposit

 

94405

Payment due on return or IRS notice

94407

945

Withheld Federal Income Tax

Deposit

 

09455

Payment due on return or IRS notice

09457

990T

Exempt Organization Business Income Tax

Deposit

 

99046

Payment with return or IRS notice

99047

Payment due on extension

99042

1041

Fiduciary Income Tax Return

Payment due on return or IRS notice

 

10417

Estimated return payment

10416

Payment on extension

10412

1042

Annual Withholding Tax Return for U.S. Source Income for 
Foreign Persons

Deposit


 

10425

Payment due on return or IRS Notice

10427

1120

US Corporate Income Tax

Deposit

 

11206

Payment due on return or IRS Notice

11207

Payment due on extension

11202

Amended return

11200

2290 Heavy Vehicle Use Tax

22907

8804 Annual Return of Partnership Withholding Tax (Section 1446)

88047

8489 Civil Penalty

84894

 

References/Related Topics

Page Last Reviewed or Updated: 24-Oct-2013

The H&r Block Taxes Online

H&r block taxes online Publication 957 - Main Content Table of Contents 1. H&r block taxes online What is Back Pay?Reporting Back Pay Back Pay Under a Statute Nonstatutory Back Pay Format for Report to the SSA Questions 2. H&r block taxes online Special Wage PaymentsReporting Special Wage Payments Reporting Nonstatutory (Nonqualified) Stock Options as Special Wage Payments Nonqualified Deferred Compensation and Section 457 Plans Additional Reporting Examples for Nonqualified Deferred Compensation (NQDC) PlansSpecial rule for box 11 of Form W-2 (distributions and deferral in the same year). H&r block taxes online 1. H&r block taxes online What is Back Pay? Back pay is pay received in a tax year(s) for actual or deemed employment in an earlier tax year(s). H&r block taxes online For social security coverage and benefit purposes, all back pay, whether or not under a statute, is wages if it is payment for covered employment. H&r block taxes online Damages for personal injury, interest, penalties, and legal fees included with back pay awards are not wages. H&r block taxes online Report all back pay. H&r block taxes online However, the tax year(s) for which back pay is credited as wages for social security purposes is different if it is awarded under a statute. H&r block taxes online See Back Pay Under a Statute , later, for more information. H&r block taxes online Reporting Back Pay The Internal Revenue Service (IRS) and the SSA consider back pay awards to be wages. H&r block taxes online However, for income tax purposes, the IRS treats all back pay as wages in the year paid. H&r block taxes online Employers should use Form W-2, Wage and Tax Statement, or electronic wage reports to report back pay as wages in the year they actually pay the employee. H&r block taxes online The SSA no longer accepts reports on tapes, cartridges, and diskettes. H&r block taxes online Example. H&r block taxes online In 2012, Terry Morris earned wages of $50,000. H&r block taxes online In the same year, she received $100,000 in settlement of a back pay case against her employer that covered the periods January 2007 through December 2011. H&r block taxes online Her employer properly reflected social security wages of $110,100 and Medicare wages of $150,000 on her 2012 Form W-2. H&r block taxes online However, if an employer did not include back pay wages on a previously filed Form W-2, magnetic media, or electronically filed wage report, the employer should prepare a wage correction report, Form W-2c, Corrected Wage and Tax Statement, or electronically filed report, to add the back pay award to the wages previously reported. H&r block taxes online Example. H&r block taxes online If, in the above example, Terry Morris' employer had prepared her 2012 Form W-2 reporting social security and Medicare wages of only $50,000 each, the employer would have to correct that report. H&r block taxes online A Form W-2c correcting the 2012 Form W-2 would show previously reported social security and Medicare wages of $50,000 and the correct amount of $110,100 for social security wages and $150,000 for Medicare wages. H&r block taxes online SSA treatment of back pay under a statute. H&r block taxes online   Under the law, the SSA credits back pay awarded under a statute to an individual's earnings record in the period(s) the wages should have been paid. H&r block taxes online This is important because wages not credited to the proper year may result in lower social security benefits or failure to meet the requirements for benefits. H&r block taxes online   However, back pay under statute payments will remain posted to the employee's social security earnings record in the year reported on Form W-2 (or Form W-2c) unless the employer or employee notifies the SSA (in a separate, special report) of the back pay under a statute payment. H&r block taxes online Then, the SSA can allocate the statutory back pay to the appropriate periods. H&r block taxes online   If a back pay award is not made under a statute, the SSA credits back pay as wages in the year paid. H&r block taxes online    If employers do notify the SSA of this payment, they should prepare a special report (with the information noted below) and send it to: Social Security Administration Attn: CPS Back Pay Staff 7-B-15 SWT 1500 Woodlawn Drive Baltimore, MD 21241-0001 Be sure to send this special report to the above address because the SSA handles it separately from other reports. H&r block taxes online    If you paid the back pay award in the same tax year to which it applies, report the wages on that year's Form W-2. H&r block taxes online No further action is necessary. H&r block taxes online Example. H&r block taxes online In 2012, Judy Wilson received a salary of $30,000 and a back pay under statute award of $2,000 for the period January through June 2012. H&r block taxes online Her employer properly reported wages of $32,000 for social security and Medicare on her 2012 Form W-2. H&r block taxes online No further action is necessary. H&r block taxes online Information the SSA needs to properly credit back pay under a statute (special report). H&r block taxes online   After you complete the special report, you or the employee should send it to the SSA when or after you submit the Form W-2 (on paper or electronically) to the SSA for the year you pay the statutory back pay to the employee. H&r block taxes online There is no statute of limitations on the filing of the special report to enable the SSA to allocate the wages. H&r block taxes online The special report must include the following information. H&r block taxes online The employer's name, address, and employer identification number (EIN). H&r block taxes online A signed statement citing the federal or state statute under which the payment was made. H&r block taxes online If the statute is not identified, the SSA will assume the payment was not under a statute and will not allocate to earlier period(s). H&r block taxes online The name and telephone number of a person to contact. H&r block taxes online The SSA may have additional questions concerning the back pay case or the individual employee's information. H&r block taxes online A list of employees receiving the payment and the following information for each employee: The tax year you paid and reported the back pay. H&r block taxes online The employee's social security number (SSN). H&r block taxes online The employee's name (as shown on his or her social security card). H&r block taxes online The amount of the back pay award excluding any amounts specifically designated otherwise, for example, damages for personal injury, interest, penalties, and legal fees. H&r block taxes online The period(s) the back pay award covers (beginning and ending dates—month and year). H&r block taxes online The other wages paid subject to social security and/or Medicare taxes and reported in the same year as the back pay award (if none, show zero)*. H&r block taxes online Do not include the back pay award shown in that wage report. H&r block taxes online If you originally submitted the report under an establishment number, show that number and the amount of money that is to remain under that establishment number. H&r block taxes online The amount to allocate to each reporting period*. H&r block taxes online This includes any amount you want allocated (if applicable) to the tax year of the award payment. H&r block taxes online If you do not give the SSA specific amounts to allocate, the SSA does the allocation by dividing the back pay award by the number of months or years covered by the award. H&r block taxes online *Note. H&r block taxes online   For periods before January 1, 1978 (before January 1, 1981, for state and local government employers covered by a Section 218 agreement), show the wage amounts for each calendar quarter ending March 31, June 30, September 30, and December 31. H&r block taxes online For all tax years, show and identify the social security and/or Medicare Qualified Government Employment (MQGE) wages (where applicable) separately. H&r block taxes online MQGE is applicable to federal employees beginning in 1983, and for certain state and local government employees beginning in 1986. H&r block taxes online For tax years 1991 and later, list the social security and Medicare wages separately. H&r block taxes online If you originally reported the individual's wages under an establishment or payroll record unit number, show the amount of wages to remain in the award year for that number and furnish that number to the SSA along with the EIN. H&r block taxes online Back Pay Under a Statute Back pay awarded under a statute is a payment by an employer following an award, determination, or agreement approved or sanctioned by a court or government agency responsible for enforcing a federal or state statute that protects an employee's right to employment or wages. H&r block taxes online Examples of pertinent statutes include: Age Discrimination in Employment Act, Americans with Disabilities Act, Equal Pay Act, Fair Labor Standards Act, National Labor Relations Act, State minimum wage laws, and State statutes that protect rights to employment and wages. H&r block taxes online Payments based on laws that have a similar effect to those listed above also may qualify as payments made under a statute. H&r block taxes online Back pay awards, under some of the statutes listed above, may be compensation for personal injury and not pay for employment. H&r block taxes online Such awards are not wages for social security coverage purposes. H&r block taxes online If a court-approved or sanctioned settlement agreement states that the agreement is not an admission of discrimination, liability, or act of wrongdoing, the statement does not change the nature of a back pay award. H&r block taxes online The payments made in such a settlement may still be back pay and wages under the rules discussed here. H&r block taxes online Nonstatutory Back Pay A payment for back wages negotiated between an employer and employee without an award, determination, or agreement approved or sanctioned by a court or government agency, the payment is not made under a statute. H&r block taxes online Delayed wage payments and retroactive pay increases resulting from union negotiation or payments under local ordinances or regulations are back pay and are wages. H&r block taxes online However, they are not payments made under a statute. H&r block taxes online If you are uncertain whether the back pay award was under a qualified statute, you may need to contact your personnel department or legal counsel or the attorney who filed the suit. H&r block taxes online Format for Report to the SSA Use the format shown in Table 1, later, to send the SSA the information needed to properly credit back pay under a statute. H&r block taxes online In a cover letter, include: Name and address of the employer, Statute under which you paid the back pay, Name and telephone number of the employer contact, and Signature of the reporting official. H&r block taxes online Under certain circumstances, back pay may be a special wage payment and excluded from wages counted under the social security earnings test. H&r block taxes online If you pay back pay to an employee age 61 or older, report it to the SSA in accordance with this section. H&r block taxes online Read Special Wage Payments, later, for additional reporting instructions. H&r block taxes online Questions If you have questions concerning back pay under a statute, call the SSA at 1-800-772-6270. H&r block taxes online Exception. H&r block taxes online   If you are a state or local government employer who was covered by an agreement under Section 218 of the Social Security Act before January 1, 1987, and you paid a back pay award before January 1, 1987, which you did not report to the SSA, contact your state Social Security Administrator's office. H&r block taxes online Table 1. H&r block taxes online Format for Report (Under Covering Letter) to Request SSA to Allocate Back Pay Under Statute Wages Employer's EIN: xx-xxxxxxx Tax Year in Which Award Payment Was Paid: 2012 (1) SSN and Employee Name (2)1 Award Amount and Period(s) (3)2,3 Other Soc. H&r block taxes online Sec. H&r block taxes online /Med. H&r block taxes online Wages Paid In Award Year (4)3 Allocation     Soc. H&r block taxes online Sec. H&r block taxes online Med. H&r block taxes online /MQGE Year Soc. H&r block taxes online Sec. H&r block taxes online Med. H&r block taxes online /MQGE xxx-xx-xxxx HELEN T. H&r block taxes online SMITH $100,000 1/2009 - 12/2012 $40,000 $40,000 2009 2010 2011 2012 $20,000 25,000 27,000 28,000 $20,000 25,000 27,000 28,000 xxx-xx-xxxx SAM W. H&r block taxes online EVANS 30,000 7/89-12/91 -0- -0- 1989 1990 1991   6,000 12,000 12,000 xxx-xx-xxxx ROLAND S. H&r block taxes online ADAMS 15,000 7/80-12/81 -0- -0- 9/80 12/80 1981 3,500 3,500 8,000   1Exclude amounts specifically designated as damages, penalties, etc. H&r block taxes online  2Exclude the amount of back pay, if any, included in that amount. H&r block taxes online  3For periods before January 1, 1978 (and for state and local government (Section 218) employers before January 1, 1981), show the wage amounts by calendar quarters. H&r block taxes online The social security and/or Medicare Qualified Government Employment (MQGE) wages (where applicable) must be shown separately FOR ALL YEARS. H&r block taxes online (Wages subject ONLY to MQGE would be shown in the Medicare/MQGE column; no wages would be shown in the Soc. H&r block taxes online Sec. H&r block taxes online column. H&r block taxes online ) For tax years 1991 and later, the social security and Medicare wages must be listed separately. H&r block taxes online Explanation of examples. H&r block taxes online Helen T. H&r block taxes online Smith–The back pay award, excluding interest, was $100,000 for the periods 1/2009-12/2012. H&r block taxes online In 2012, this employee was also paid $40,000 in other wages. H&r block taxes online (Her Form W-2 for 2012 reported $110,100 for social security and $140,000 for Medicare. H&r block taxes online The SSA allocation will result in adjusted posted wages of $68,000 for social security and $68,000 for Medicare for 2012. H&r block taxes online ) Sam W. H&r block taxes online Evans–The back pay award was $30,000 for the periods 7/89-12/91. H&r block taxes online This employee was hired in 1989 and was subject to MQGE only. H&r block taxes online He was no longer employed by this governmental employer in 2012. H&r block taxes online (His Form W-2 for 2012 reported $30,000 for social security and $30,000 for Medicare. H&r block taxes online After the SSA allocation, he will not have any net posted wages for 2012. H&r block taxes online ) Roland S. H&r block taxes online Adams–The back pay award was $15,000 for the periods 7/80-12/81. H&r block taxes online He was no longer employed by this state and local government (Section 218) employer in 2012. H&r block taxes online (His Form W-2 for 2012 reported $15,000 for social security and $15,000 for Medicare; after the SSA allocation, he will not have any net posted wages for 2012. H&r block taxes online ) If the state Social Security Administrator's office needs more information, they can contact the SSA at the following address:   Social Security Administration Office of Income Security Programs Office of Earnings and Program Integrity Policy 6401 Security Boulevard 2506 OPS Baltimore, MD 21235 2. H&r block taxes online Special Wage Payments A special wage payment (SWP) is an amount paid by an employer to an employee (or former employee) for services performed in a prior year. H&r block taxes online Employers should report to the SSA special wage payments made to employees and former employees who are recipients of social security retirement benefits. H&r block taxes online Special wage payments made to a retired employee receiving social security or to an employee who continues to work while receiving social security benefits may reduce the benefits the individual receives if not reported to the SSA. H&r block taxes online Special wage payments may include (but are not limited to): Accumulated sick and vacation pay, Back pay, Bonuses, Deferred compensation, Payments because of retirement, Sales commissions, Severance pay, and Stock options. H&r block taxes online Note. H&r block taxes online Payments made after retirement that are part of the normal payroll cycle should not be routinely reported as special wage payments. H&r block taxes online Earnings Test. H&r block taxes online   Benefits paid to a social security beneficiary under full retirement age may be reduced if the beneficiary continues to work. H&r block taxes online The SSA uses the information in boxes 1, 3, and 5 of Form W-2 to determine the beneficiary's current year earnings. H&r block taxes online Special wage payments, which are for services performed in a prior year, will increase the current year earnings on Form W-2, which also may result in a reduction in the beneficiary's benefits. H&r block taxes online If a benefit is reduced because of a special wage payment, the beneficiary must get documentation from the employer before the SSA can restore the deducted portion. H&r block taxes online Therefore, employer reports of special wage payments help prevent incorrect benefit reductions. H&r block taxes online Reporting Special Wage Payments Employers must report special wage payments for income tax purposes and social security and Medicare taxes in the year received. H&r block taxes online Report income, social security, and/or Medicare taxes for special wage payments on Form W-2. H&r block taxes online See Nonqualified Deferred Compensation and Section 457 Plans, later, for reporting nonqualified deferred compensation plan deferrals and payments on Form W-2. H&r block taxes online In addition, report to the SSA special wage payments made during the reporting year to retired employees and employees who continue to work while receiving social security benefits. H&r block taxes online Submit reports after the close of the tax year. H&r block taxes online To avoid delays in processing, submit reports in time to reach the SSA by April 1. H&r block taxes online Use one of the following reporting methods. H&r block taxes online Electronic reporting. H&r block taxes online   Special wage payment files can be sent electronically by logging onto Business Services Online (BSO) via the socialsecurity. H&r block taxes online gov website. H&r block taxes online BSO enables organizations and authorized individuals to conduct business with and submit confidential information to the Social Security Administration. H&r block taxes online You must register to use this website. H&r block taxes online The web address is www. H&r block taxes online socialsecurity. H&r block taxes online gov/bso/bsowelcome. H&r block taxes online htm. H&r block taxes online   Use the specifications and record layout shown in  Table 2, later. H&r block taxes online Only one file at a time may be submitted. H&r block taxes online If your file is large (>10MB), or you have a slow internet connection, the transmission will be faster if the file is zipped. H&r block taxes online A zipped file contains a file that has been compressed to reduce its file size. H&r block taxes online WinZip and PKZIP are examples of acceptable compression packages. H&r block taxes online   Electronic submissions not meeting the specifications in Table 2 will be rejected. H&r block taxes online Paper listing. H&r block taxes online   A paper listing can be used to report special wage payments to several employees. H&r block taxes online Use the format shown in Table 3, later. H&r block taxes online Submit paper listings to the local SSA office nearest your place of business. H&r block taxes online Visit www. H&r block taxes online socialsecurity. H&r block taxes online gov/locator to find a Social Security office near you. H&r block taxes online Form SSA-131. H&r block taxes online   Use Form SSA-131 to report special wage payments made to an employee. H&r block taxes online Also use this form to report nonqualified deferred compensation and section 457 plan deferrals and payments that could not be reported in box 11 of Form W-2. H&r block taxes online    This image is too large to be displayed in the current screen. H&r block taxes online Please click the link to view the image. H&r block taxes online Publication 957 Reporting Back Pay to the Social Security Administration Instructions for Form SSA–131   EMPLOYER INSTRUCTIONS FOR COMPLETING SPECIAL WAGE PAYMENT FORM 1. H&r block taxes online Provide the EIN that was used or will be used to report the employee's wages on the Form W-2. H&r block taxes online 2. H&r block taxes online Enter the date the employee retired. H&r block taxes online Enter “Not Retired” if the employee has not retired. H&r block taxes online 3. H&r block taxes online Enter the date that the employee last performed services; was not expected to return to work; and was not subject to recall to render additional services. H&r block taxes online This date should be the same as or earlier than the date in item “2”. H&r block taxes online Enter “Not Retired” if the employee has not retired. H&r block taxes online 4. H&r block taxes online Enter the wages that were paid to the employee in the tax year that were for services that were performed in years prior to the tax year or that were paid on account of retirement. H&r block taxes online  Examples (not all inclusive) of payments to be included: Payments in lieu of vacation that were earned in a year prior to the tax year. H&r block taxes online Accumulated sick payments which were paid in a lump sum based on “retirement” as the sole condition of payment. H&r block taxes online Accumulated sick payments paid at or after the date in item 3, which were earned in a year prior to the tax year. H&r block taxes online Payments “on account of retirement”–dismissal, severance or termination pay paid because of retirement. H&r block taxes online Bonuses which are paid pursuant to a prior contract, agreement or promise causing the employee to expect such payments regularly; or announced to induce the employee to work more steadily, rapidly or efficiently or to remain with the employer. H&r block taxes online Stock Options. H&r block taxes online   Do not include in item “4” payments: For annual, sick, holiday, or vacation pay if used (absence from work) prior to the date of retirement (earlier of items “2” or “3”). H&r block taxes online That were reported or will be reported under “Nonqualified Plans” on the Form W-2. H&r block taxes online That were deducted from the employee's wages and paid to a deferred compensation plan (e. H&r block taxes online g. H&r block taxes online , 401k). H&r block taxes online Employees health and dental plan benefits (non-covered/non-taxable for Social Security Wages). H&r block taxes online Bonuses earned and paid in the tax year. H&r block taxes online 5. H&r block taxes online Check whether payments listed in item 4 will be made for years after the tax year. H&r block taxes online If yes, please show the amounts and years in which these will be paid, if known. H&r block taxes online 6. H&r block taxes online Nonqualified deferred compensation and section 457 plans only. H&r block taxes online If you were unable to report nonqualified deferred compensation or section 457 plan payments and deferrals (contributions) on Form W-2 because both payments and deferrals occurred during the year, show the amount of wages earned by the employee during the tax year. H&r block taxes online Generally, the wages earned will be the compensation reported in block 1 of Form W-2 less payments from a nonqualified deferred compensation (or 457) plan, but including any amounts deferred under the plan during the tax year (See IRS Publication 957). H&r block taxes online Paperwork/Privacy Act Notice: This report is authorized by regulation 20 CFR 404. H&r block taxes online 702. H&r block taxes online The information that you provide will be used in making a determination regarding the amount of Social Security benefits payable to the above named individual. H&r block taxes online While your response is voluntary, if you do not respond we may not be able to make a correct determination regarding the amount of Social Security benefits payable to the above named individual for the year in question. H&r block taxes online We may also use the information you give us when we match records by computer. H&r block taxes online Matching programs compare our records with those of other Federal, State, or local government agencies. H&r block taxes online Many agencies may use matching programs to find or prove that a person qualifies for benefits paid by the Federal Government. H&r block taxes online The law allows us to do this even if you do not agree to it. H&r block taxes online Explanations about these and other reasons why information you provide us may be used or given out are available in Social Security Offices. H&r block taxes online If you want to learn more about this, contact any Social Security Office. H&r block taxes online The Paperwork Reduction Act: This information collection meets the clearance requirements of 44 U. H&r block taxes online S. H&r block taxes online C. H&r block taxes online §3507, as amended by Section 2 of the Paperwork Reduction Act of 1995. H&r block taxes online You are not required to answer these questions unless we display a valid Office of Management and Budget control number. H&r block taxes online We estimate that it will take you about 20 minutes to read the instructions, gather the necessary facts, and answer the questions. H&r block taxes online Form SSA-131 (8-2001) EF (06-2002)   Submit Form SSA-131 to the SSA office nearest your place of business. H&r block taxes online Or, the employee can submit it to the SSA office handling the claim. H&r block taxes online You or the employee must submit this form before the SSA can exclude the special wage payments for purposes of the earnings test. H&r block taxes online If reporting on more than one employee, complete a separate Form SSA-131 for each employee or use the paper listing format (except for reporting nonqualified and section 457 plan deferrals and payments) in Table 3. H&r block taxes online Do not report payments from nonqualified deferred compensation or section 457 plans that were reported in box 11 of Form W-2. H&r block taxes online Use Form SSA-131 if deferrals to and payments from nonqualified or section 457 plans occurred during the tax year. H&r block taxes online Reporting Nonstatutory (Nonqualified) Stock Options as Special Wage Payments A nonstatutory (nonqualified) option to purchase stock which is exercised in a year after the year in which the option was earned is a special wage payment. H&r block taxes online It should not count for the social security earnings test. H&r block taxes online Nonstatutory (nonqualified) options exercised as special wage payments by retired employees or employees who continue to work while receiving social security benefits should be reported by employers using the above reporting methods. H&r block taxes online Nonqualified Deferred Compensation and Section 457 Plans A nonqualified deferred compensation plan is a plan or arrangement established and maintained by an employer for one or more of its employees that provides for the deferral of compensation, but does not meet the requirements for a tax-qualified deferred compensation plan. H&r block taxes online For social security and Medicare purposes, deferred compensation plans for employees of state and local governments (section 457 plans) are treated the same as nonqualified plans. H&r block taxes online Nonqualified and section 457 plans are reported differently than other special wage payments. H&r block taxes online See Reporting Amounts Deferred to Nonqualified and Section 457 Plans below for specific instructions. H&r block taxes online Reporting Amounts Deferred to Nonqualified and Section 457 Plans Generally, when the related services are performed, nonqualified deferred compensation is subject to social security and Medicare tax when deferred. H&r block taxes online However, if nonqualified and section 457 plans contain provisions that delay the employee's right to receive payments from the plan, a period of substantial risk of forfeiture exists. H&r block taxes online The plans' deferrals, or contributions, are not subject to social security and Medicare taxes until the period of substantial risk of forfeiture ends. H&r block taxes online No risk of forfeiture. H&r block taxes online   If there is no risk of forfeiture, report wage amounts deferred to a nonqualified deferred compensation or section 457 plan in box 3 (up to the wage base maximum) and/or box 5 of Form W-2. H&r block taxes online Example. H&r block taxes online Company X's nonqualified deferred compensation plan allows the deferral of up to $20,000 of employee salaries each year. H&r block taxes online The plan has no risk of forfeiture. H&r block taxes online In 2012, Employee A defers $20,000 to the plan from a total salary of $200,000. H&r block taxes online Form W-2 Completion Amount Box 1 $200,000 Box 3* 110,100 Box 5 200,000 *Wage base maximum for tax year 2012 Risk of forfeiture lapses before retirement. H&r block taxes online   If the substantial risk of forfeiture lapses before the employee retires, report all past contributions to the plan (or the value of the plan), including accumulated earned interest, in box 3 (up to the wage base maximum) and/or box 5 of Form W-2. H&r block taxes online The accumulated deferrals are reported along with any other social security and Medicare wages earned during the year. H&r block taxes online   Report in box 11 of Form W-2 the amount of deferrals, including any accumulated interest, that became taxable for social security and Medicare taxes during the year (but were for prior year services) because the deferred amounts were no longer subject to a substantial risk of forfeiture. H&r block taxes online If the employee continues working, future deferrals are social security and Medicare wages when they are earned. H&r block taxes online    Do not include in box 11 deferrals that are included in boxes 3 and/or 5 and that are for current year services. H&r block taxes online Risk of forfeiture lapses at retirement. H&r block taxes online   When an employee's right to a payment is contingent upon working until retirement, report all past contributions to the plan (or the value of the plan), including accumulated earned interest, as social security and/or Medicare wages in the year of retirement. H&r block taxes online Add the amount to other wages paid in that year, and enter in box 3 (up to the wage base maximum) and/or box 5 of Form W-2. H&r block taxes online   Report in box 11 of Form W-2 the amount of deferrals, including any accumulated interest, that became taxable for social security and Medicare taxes during the year (but were for prior year services) because the deferred amounts were no longer subject to a substantial risk of forfeiture. H&r block taxes online    Do not include in box 11 deferrals that are included in boxes 3 and/or 5 and that are for current year services. H&r block taxes online Example—risk of forfeiture. H&r block taxes online At the end of the risk-of-forfeiture period for Company Y's nonqualified deferred compensation plan, Employee B's accumulated deferrals, plus interest earned by the plan, are $120,000, not including B's $20,000 deferral for this year. H&r block taxes online B's wages, including this year's deferred amount, are $80,000. H&r block taxes online Form W-2 Completion Amount Box 1 $60,000 Box 3* 110,100 Box 5 200,000 Box 11 120,000 *Wage base maximum for tax year 2012 Reporting Payments From Nonqualified and Nongovernmental Section 457 Plans When an employee or former employee retires and begins receiving payments (distributions) from a nonqualified or nongovernmental section 457 plan, report the payments in boxes 1 and 11 of Form W-2. H&r block taxes online Report payments (distributions) from a governmental section 457 plan on Form 1099-R, Distributions from Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. H&r block taxes online Example. H&r block taxes online Employee D retired from the XYZ company and began receiving social security benefits. H&r block taxes online XYZ paid D a $12,000 bonus upon retirement for sales made in a prior year, and D received $25,000 in payments from XYZ's nonqualified deferred compensation plan. H&r block taxes online In addition, D agreed to continue performing services for XYZ, but on a part-time basis for wages of $15,000 per year. H&r block taxes online D made no deferrals to the nonqualified plan this year. H&r block taxes online Form W-2 Completion Amount Box 1 $52,000 Box 3 27,000 Box 5 27,000 Box 11 25,000 Report the $12,000 bonus to the SSA using electronic reporting, a paper listing, or Form SSA-131. H&r block taxes online For more information, see Reporting Special Wage Payments , earlier. H&r block taxes online Reporting Payments and Deferrals in the Same Year Do not complete box 11 when payments (distributions) are made from a nonqualified plan and deferrals are reported in boxes 3 and/or 5 of Form W-2 (including current year deferrals). H&r block taxes online Report to the SSA on Form SSA-131 the total amount the employee earned during the tax year. H&r block taxes online Normally, the amount earned is the amount reported in box 1 of Form W-2 less payments from a nonqualified or section 457 plan, but including any amounts deferred under the plan during the tax year. H&r block taxes online See Form SSA-131 and its instructions, earlier. H&r block taxes online Example. H&r block taxes online Employee K retired this year from Company XYZ and began receiving social security benefits. H&r block taxes online During the year he earned wages of $50,000 and deferred $35,000 of the wages into the company's nonqualified deferred compensation plan. H&r block taxes online K also received $75,000 in payments from the company's nonqualified plan. H&r block taxes online Form W-2 Completion Amount Special Wage Payment $75,000 Wages 50,000 Minus: deferral 35,000 Total reported in Box 1 $90,000     Wages including deferral reported in  Boxes 3 and 5 $50,000     Leave Box 11 blank. H&r block taxes online File Form SSA-131 -0-     Form SSA-131 Completion Amount from Box 1 of Form W-2 $90,000 Minus: payments from a nonqualified plan 75,000 Plus: amounts deferred into the plan during the year 35,000 Total wages earned for purposes of Form SSA-131 (item 6) $50,000 Additional Reporting Examples for Nonqualified Deferred Compensation (NQDC) Plans It is not necessary to show amounts deferred during the year under an NQDC plan subject to section 409A. H&r block taxes online If you report section 409A deferrals, show the amount in box 12 of Form W-2 using code Y. H&r block taxes online For more information, see Notice 2008-115, 2008-52 I. H&r block taxes online R. H&r block taxes online B. H&r block taxes online 1367, available at www. H&r block taxes online irs. H&r block taxes online gov/irb/2008-52_IRB/ar10. H&r block taxes online html. H&r block taxes online Special reporting rules apply when an NQDC plan is not compliant with section 409A (when there has been a “plan failure”). H&r block taxes online Income included under section 409A from an NQDC plan is reported in box 1 and box 12 of Form W-2 using code Z. H&r block taxes online See Notice 2008-115. H&r block taxes online The following examples use small dollar amounts for illustrative purposes. H&r block taxes online However, the amount reported in box 3 of Form W-2 is always limited by the social security earnings wage base (for example, $110,100 for 2012). H&r block taxes online The term “vested” in the following examples means that the amount deferred is not subject to a substantial risk of forfeiture. H&r block taxes online Conversely, the term “not vested” means that the amount deferred is subject to a substantial risk of forfeiture. H&r block taxes online The examples assume that the NQDC plan is in compliance with section 409A, and that amounts deferred under the plan are not includible in gross income as they are deferred. H&r block taxes online For purposes of the examples, it is assumed that the regular pay of the employee is remuneration for employment and wages for employment tax purposes except to the extent the deferral of a portion of the regular pay results in a reduction in wages. H&r block taxes online Example 1: Deferral that is immediately vested (no substantial risk of forfeiture) with no distributions and no vesting of prior-year deferrals. H&r block taxes online For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into her employer’s NQDC plan. H&r block taxes online The deferral of $20 was vested upon deferral and there was an employer match of $10 under the plan, which was also vested. H&r block taxes online Regular pay = $200; Deferral, vested = $20; Employer match, vested = $10. H&r block taxes online Form W-2 Completion Amount Box 1 ($200 Regular pay minus $20 vested deferral) $180 Box 3 ($200 Regular pay plus $10 Employer match, vested) 210 Box 5 ($200 Regular pay plus $10 Employer match, vested) 210 Box 11 -0- Example 2: Deferral with delayed vesting (substantial risk of forfeiture) of employee and employer portions (no distributions and no vesting of prior-year deferrals). H&r block taxes online For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into the employer’s nonqualified deferred compensation plan. H&r block taxes online The deferral of $20 was not vested upon deferral, and there was an employer match of $10 under the plan, which was also not vested. H&r block taxes online Regular pay = $200; Deferral, not vested = $20; Employer match, not vested = $10. H&r block taxes online Form W-2 Completion Amount Box 1 ($200 Regular pay minus $20 Deferral, not vested) $180 Box 3 ($200 Regular pay minus $20 Deferral, not vested) 180 Box 5 ($200 Regular pay minus $20 Deferral, not vested) 180 Box 11 -0- Example 3: Deferral that is immediately vested with prior-year deferrals and investment earnings on the prior-year deferrals that are now vesting (no distributions). H&r block taxes online For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into the employer’s nonqualified deferred compensation plan. H&r block taxes online The deferral of $20 was vested upon deferral. H&r block taxes online During the year, $100 of prior-year deferrals and $15 of investment earnings on the $100 of prior-year deferrals became vested. H&r block taxes online Regular pay = $200; Deferral, vested = $20; Vesting of prior-year deferrals = $100; Vesting of investment earnings on $100 of prior-year deferral = $15. H&r block taxes online Form W-2 Completion Amount Box 1 ($200 Regular pay minus $20 Deferral, vested) $180 Box 3 ($200 Regular pay plus $100 vested prior-year deferral plus $15 earnings on deferral) 315 Box 5 ($200 Regular pay plus $100 vested prior-year deferral plus $15 vested investment earnings on prior year deferral) 315 Box 11 ($100 vested prior-year deferral plus $15 earnings) 115 Example 4: No deferrals but there are distributions (no vesting of prior-year deferrals). H&r block taxes online For the year, the employee’s regular pay was $100, and the employee deferred no pay into the employer’s NQDC plan. H&r block taxes online There was no vesting of prior-year deferrals under the plan. H&r block taxes online During the year, there were total distributions of $50 from the plan to the employee. H&r block taxes online Regular pay = $100; Distribution = $50. H&r block taxes online Form W-2 Completion Amount Box 1 ($100 Regular pay plus $50 Distribution) $150 Box 3 ($100 Regular pay ) 100 Box 5 ($100 Regular pay) 100 Box 11 ($50 Distribution) 50 Special rule for box 11 of Form W-2 (distributions and deferral in the same year). H&r block taxes online   If, in the same year, there are NQDC distributions and there are deferrals that are reportable in boxes 3 and/or 5 (current or prior-year deferrals) of Form W-2, do not complete box 11. H&r block taxes online Instead, report on Form SSA-131 the total amount the employee earned during the year. H&r block taxes online * Submit the SSA-131 to the nearest SSA office or give it to the employee. H&r block taxes online   *Generally, the amount earned by the employee during the tax year for purposes of item 6 of Form SSA-131 is the amount reported in box 1 of Form W-2 plus current-year deferrals that are vested (employee and employer portions) less distributions. H&r block taxes online Do not consider prior-year deferrals that are vesting in the current year. H&r block taxes online If there was a plan failure, the box 1 amount in this calculation should be as if there were no plan failure. H&r block taxes online Example 5: Deferral that is immediately vested and there are distributions (no vesting of prior-year deferrals). H&r block taxes online For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into the employer’s NQDC plan. H&r block taxes online There was also an employer match of $10. H&r block taxes online The deferral and employer match were vested upon deferral. H&r block taxes online There was no vesting of prior-year deferrals under the plan. H&r block taxes online During the year, there were total distributions of $50 from the plan to the employee. H&r block taxes online Regular pay = $200; Deferral, vested = $20; Employer match, vested = $10; Distribution = $50. H&r block taxes online Form W-2 Completion Amount Box 1 ($50 Special Wage Payment (Distribution) plus $200 Regular pay minus $20 Deferral, vested) $230 Boxes 3 and 5 ($200 Regular pay plus $10 vested employer match) 210 Leave Box 11 blank. H&r block taxes online File Form SSA-131 -0-     Form SSA-131 Completion Item 6 - amount of wages earned by the employee during the tax year ($230 from Box 1 of Form W-2 minus $50 Distribution plus $30 vested current year employee deferral and employer match) $210 Example 6: Deferral with delayed vesting and there are distributions (no vesting of prior-year deferrals). H&r block taxes online For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into the employer’s NQDC plan. H&r block taxes online The deferral was not vested upon deferral. H&r block taxes online There was no vesting of prior-year deferrals under the plan. H&r block taxes online During the year, there were total distributions of $50 from the plan to the employee. H&r block taxes online Regular pay = $200; Deferral, not vested = $20; Distribution = $50. H&r block taxes online Form W-2 Completion Amount Box 1 ($50 Special Wage Payment (Distribution) plus $200 Regular pay minus $20 Deferral, not vested) $230 Boxes 3 and 5 ($200 Regular pay minus $20 deferral that is not vested) 180 Box 11 ($50 Distribution). H&r block taxes online 50 Example 7: Deferral that is immediately vested and there are distributions (also vesting of prior-year deferrals and earnings on those prior-year deferrals). H&r block taxes online For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into the employer’s NQDC plan. H&r block taxes online The deferral was vested upon deferral. H&r block taxes online There was vesting of $100 of prior-year deferrals and $15 of earnings on the $100 prior-year deferral under the plan. H&r block taxes online During the year, there were total distributions of $50 from the plan to the employee. H&r block taxes online Regular pay = $200; Deferral, vested = $20; Distribution = $50; Vesting of prior-year deferrals ($100) and earnings on those prior-year deferrals ($15) = $115. H&r block taxes online Form W-2 Completion Amount Box 1 ($50 Special Wage Payment (Distribution) plus $200 Regular pay minus $20 vested deferral $230 Boxes 3 and 5 ($200 Regular pay Plus $115 vested prior deferral (with vested earnings on the deferral)) 315 Leave Box 11 blank. H&r block taxes online File Form SSA-131 -0-     Form SSA-131 Completion Item 6, amount of wages earned by the employee during the tax year ($230 from Box 1 of Form W-2 minus $50 Distribution plus $20 vested current year deferral) $200 Example 8: Deferral with delayed vesting and there are distributions (vesting of prior-year deferrals, including employer matches, and earnings on those deferrals). H&r block taxes online For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into the employer’s NQDC plan. H&r block taxes online The deferral was not vested upon deferral. H&r block taxes online There was also vesting of prior-year deferrals and employer matches and earnings on these amounts under the plan ($115). H&r block taxes online During the year, there were total distributions of $50 from the plan to the employee. H&r block taxes online Regular pay = $200; Deferral, not vested = $20; Distribution = $50; Vesting of prior-year deferrals and employer match = $100 plus earnings on that $100 of $15. H&r block taxes online Form W-2 Completion Amount Box 1 ($50 Special Wage Payment (Distribution) plus $200 regular pay minus $20 Deferral, not vested) $230 Boxes 3 and 5 ($200 Regular pay plus $115 vested prior-year deferral and prior year employer match and earning on the prior year amounts minus $20 deferral that is not vested) 295 Leave Box 11 blank. H&r block taxes online File Form SSA-131 -0-     Form SSA-131 Completion Item 6 ($230 Amount from Box 1 of Form W-2 minus $50 Distribution) $180 Table 2. H&r block taxes online Specifications for Electronic Reporting of Special Wage Payments Record Position  Field Size   Description Start End 1 3 3 Record Type—must include only the capital letters “SWP” 4 12 9 SSN—must be numeric and may not be all zeros 13 27 15 Last Name—all capitals and no punctuation; may have blanks on right only 28 38 11 First Name—all capitals and no punctuation; may have blanks on right only 39 39 1 Middle Initial—must be either a capital letter or blank 40 48 9 EIN—must be numeric and may not be all zeros 49 59 11 Payment—must be numeric; may not be all zeros; last two digits on right are assumed to be cents; no period or dollar sign 60 63 4 Payment Year—must be only a four-digit year 64 66 3 SSA Office Code—must be numeric and may be all zeros 67 67 1 Payment Type Code—must be the capital letter “T” 68 117 50 Filler  The record format is a fixed length of 117. H&r block taxes online  The file format is ASCII. H&r block taxes online  Submit only one file at a time. H&r block taxes online   Table 3. H&r block taxes online Sample—Paper Listing for Reporting Special Wage Payments to Several Employees Report of Special Wage PaymentsTax Year: Page of A. H&r block taxes online Employer Name: EIN:   Address: Contact Name:     Phone: ( )   . H&r block taxes online 1) B. H&r block taxes online Employee Name: (Last) (First) (MI)   C. H&r block taxes online SSN: D. H&r block taxes online SWP:$ E. H&r block taxes online Type: Other: 2) B. H&r block taxes online Employee Name: (Last) (First) (MI)   C. H&r block taxes online SSN: D. H&r block taxes online SWP:$ E. H&r block taxes online Type: Other: 3) B. H&r block taxes online Employee Name: (Last) (First) (MI)   C. H&r block taxes online SSN: D. H&r block taxes online SWP:$ E. H&r block taxes online Type: Other: 4) B. H&r block taxes online Employee Name: (Last) (First) (MI)   C. H&r block taxes online SSN: D. H&r block taxes online SWP:$ E. H&r block taxes online Type: Other: 5) B. H&r block taxes online Employee Name: (Last) (First) (MI)   C. H&r block taxes online SSN: D. H&r block taxes online SWP:$ E. H&r block taxes online Type: Other:     INSTRUCTIONS:   Enter tax year and page number. H&r block taxes online   A. H&r block taxes online Employer name, employer identification number (EIN), address, the name of a contact person, and a phone number where the contact person can be reached during normal business hours. H&r block taxes online   B. H&r block taxes online Employee's name. H&r block taxes online   C. H&r block taxes online Employee's social security number (SSN). H&r block taxes online   D. H&r block taxes online Total amount of special wage payments made to the employee. H&r block taxes online   E. H&r block taxes online Type of special wage payment from the following list: (1) Vacation Pay, (2) Sick Pay, (3) Severance Pay,  (4) Bonus, (5) Deferred Compensation, (6) Stock Options, and (7) Other—Please explain. H&r block taxes online   Do not use a paper listing for nonqualified deferred compensation and section 457 plan deferrals and payments that could not be reported in block 11 of Form W-2. H&r block taxes online (Get Form SSA-131. H&r block taxes online )                 Prev  Up  Next   Home   More Online Publications