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I Need To File A 2011 Tax Return

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I Need To File A 2011 Tax Return

I need to file a 2011 tax return 12. I need to file a 2011 tax return   Self-Employment Tax Table of Contents What's New for 2013 What's New for 2014 Introduction Topics - This chapter discusses: Useful Items - You may want to see: Why Pay Self-Employment Tax? How To Pay Self-Employment TaxReplacing a lost social security card. I need to file a 2011 tax return Name change. I need to file a 2011 tax return Penalty for underpayment of estimated tax. I need to file a 2011 tax return Who Must Pay Self-Employment Tax?Limited partner. I need to file a 2011 tax return Community property. I need to file a 2011 tax return Figuring Self-Employment EarningsLandlord Participation in Farming Methods for Figuring Net EarningsRegular Method Farm Optional Method Nonfarm Optional Method Using Both Optional Methods Reporting Self-Employment Tax What's New for 2013 Tax rates. I need to file a 2011 tax return  For tax years beginning in 2013, the social security part of the self-employment tax increases from 10. I need to file a 2011 tax return 4% to 12. I need to file a 2011 tax return 4%. I need to file a 2011 tax return The Medicare part of the tax remains at 2. I need to file a 2011 tax return 9%. I need to file a 2011 tax return As a result, the self-employment tax is increased from 13. I need to file a 2011 tax return 3% to 15. I need to file a 2011 tax return 3%. I need to file a 2011 tax return Additional Medicare Tax. I need to file a 2011 tax return . I need to file a 2011 tax return  For tax years beginning in 2013, a 0. I need to file a 2011 tax return 9% Additional Medicare Tax applies to your Medicare wages, Railroad Retirement Tax Act (RRTA) compensation, and self-employment income above a threshold amount. I need to file a 2011 tax return Use Form 8959, Additional Medicare Tax, to figure this tax. I need to file a 2011 tax return For more information, see the Instructions for Form 8959. I need to file a 2011 tax return Maximum net earnings. I need to file a 2011 tax return  The maximum net self-employment earnings subject to the social security part (12. I need to file a 2011 tax return 4%) of the self-employment tax increased to $113,700 for 2013. I need to file a 2011 tax return There is no maximum limit on earnings subject to the Medicare part (2. I need to file a 2011 tax return 9%). I need to file a 2011 tax return What's New for 2014 Maximum net earnings. I need to file a 2011 tax return  The maximum net self-employment earnings subject to the social security part of the self-employment tax for 2014 will be discussed in the 2013 Publication 334. I need to file a 2011 tax return Introduction Self-employment tax (SE tax) is a social security and Medicare tax primarily for individuals who work for themselves. I need to file a 2011 tax return It is similar to the social security and Medicare taxes withheld from the pay of most wage earners. I need to file a 2011 tax return You usually have to pay SE tax if you are self-employed. I need to file a 2011 tax return You are usually self-employed if you operate your own farm on land you either own or rent. I need to file a 2011 tax return You have to figure SE tax on Schedule SE (Form 1040). I need to file a 2011 tax return Farmers who have employees may have to pay the employer's share of social security and Medicare taxes, as well. I need to file a 2011 tax return See chapter 13 for information on employment taxes. I need to file a 2011 tax return Self-employment tax rate. I need to file a 2011 tax return   For tax years beginning in 2013, the self-employment tax rate is 15. I need to file a 2011 tax return 3%. I need to file a 2011 tax return The rate consists of two parts: 12. I need to file a 2011 tax return 4% for social security (old-age, survivors, and disability insurance) and 2. I need to file a 2011 tax return 9% for Medicare (hospital insurance). I need to file a 2011 tax return Topics - This chapter discusses: Why pay self-employment tax How to pay self-employment tax Who must pay self-employment tax Figuring self-employment earnings Landlord participation in farming Methods for figuring net earnings Reporting self-employment tax Useful Items - You may want to see: Publication 541 Partnerships Form (and Instructions) 1040 U. I need to file a 2011 tax return S. I need to file a 2011 tax return Individual Income Tax Return Sch F (Form 1040) Profit or Loss From Farming Sch SE (Form 1040) Self-Employment Tax 1065 U. I need to file a 2011 tax return S. I need to file a 2011 tax return Return of Partnership Income Sch K-1 (Form 1065) Partner's Share of Income, Deductions, Credits, etc. I need to file a 2011 tax return See chapter 16 for information about getting publications and forms. I need to file a 2011 tax return Why Pay Self-Employment Tax? Social security benefits are available to self-employed persons just as they are to wage earners. I need to file a 2011 tax return Your payments of SE tax contribute to your coverage under the social security system. I need to file a 2011 tax return Social security coverage provides you with retirement benefits, disability benefits, survivor benefits, and hospital insurance (Medicare) benefits. I need to file a 2011 tax return How to become insured under social security. I need to file a 2011 tax return   You must be insured under the social security system before you begin receiving social security benefits. I need to file a 2011 tax return You are insured if you have the required number of credits (also called quarters of coverage). I need to file a 2011 tax return Earning credits in 2013. I need to file a 2011 tax return   You can earn a maximum of four credits per year. I need to file a 2011 tax return For 2013, you earn one credit for each $1,160 of combined wages and self-employment earnings subject to social security tax. I need to file a 2011 tax return You need $4,640 ($1,160 × 4) of combined wages and self-employment earnings subject to social security tax to earn four credits in 2013. I need to file a 2011 tax return It does not matter whether the income is earned in 1 quarter or is spread over 2 or more quarters. I need to file a 2011 tax return For an explanation of the number of credits you must have to be insured and the benefits available to you and your family under the social security program, consult your nearest Social Security Administration (SSA) office or visit the SSA website at www. I need to file a 2011 tax return socialsecurity. I need to file a 2011 tax return gov. I need to file a 2011 tax return Making false statements to get or to increase social security benefits may subject you to penalties. I need to file a 2011 tax return The Social Security Administration (SSA) time limit for posting self-employment earnings. I need to file a 2011 tax return   Generally, the SSA will give you credit only for self-employment earnings reported on a tax return filed within 3 years, 3 months, and 15 days after the tax year you earned the income. I need to file a 2011 tax return    If you file your tax return or report a change in your self-employment earnings after the SSA time limit for posting self-employment earnings, the SSA may change its records, but only to remove or reduce the amount. I need to file a 2011 tax return The SSA will not change its records to increase your self-employment earnings after the SSA time limit listed above. I need to file a 2011 tax return How To Pay Self-Employment Tax To pay SE tax, you must have a social security number (SSN) or an individual taxpayer identification number (ITIN). I need to file a 2011 tax return This section explains how to: Obtain an SSN or ITIN, and Pay your SE tax using estimated tax. I need to file a 2011 tax return An ITIN does not entitle you to social security benefits. I need to file a 2011 tax return Obtaining an ITIN does not change your immigration or employment status under U. I need to file a 2011 tax return S. I need to file a 2011 tax return law. I need to file a 2011 tax return Obtaining a social security number. I need to file a 2011 tax return   If you have never had an SSN, apply for one using Form SS-5, Application for a Social Security Card. I need to file a 2011 tax return The application is also available in Spanish. I need to file a 2011 tax return You can get this form at any Social Security office or by calling 1-800-772-1213. I need to file a 2011 tax return    You can also download Form SS-5 from the Social Security Administration website at  www. I need to file a 2011 tax return socialsecurity. I need to file a 2011 tax return gov. I need to file a 2011 tax return   If you have a social security number from the time you were an employee, you must use that number. I need to file a 2011 tax return Do not apply for a new one. I need to file a 2011 tax return Replacing a lost social security card. I need to file a 2011 tax return   If you have a number but lost your card, file Form SS-5. I need to file a 2011 tax return You will get a new card showing your original number, not a new number. I need to file a 2011 tax return Name change. I need to file a 2011 tax return   If your name has changed since you received your social security card, complete Form SS-5 to report a name change. I need to file a 2011 tax return Obtaining an individual taxpayer identification number. I need to file a 2011 tax return   The IRS will issue you an ITIN, for tax use only, if you are a nonresident or resident alien and you do not have, and are not eligible to get, an SSN. I need to file a 2011 tax return To apply for an ITIN, file Form W-7, Application for IRS Individual Taxpayer Identification Number. I need to file a 2011 tax return You can get this form by calling 1-800-829-3676. I need to file a 2011 tax return For more information on ITINs, see Publication 1915, Understanding Your IRS Individual Taxpayer Identification Number. I need to file a 2011 tax return Form W-7 and Publication 1915 are also available in Spanish. I need to file a 2011 tax return    You can also download Form W-7 from the IRS website at IRS. I need to file a 2011 tax return gov. I need to file a 2011 tax return Paying estimated tax. I need to file a 2011 tax return   Estimated tax is the method used to pay tax (including SE tax) on income not subject to withholding. I need to file a 2011 tax return You generally have to make estimated tax payments if you expect to owe tax, including SE tax, of $1,000 or more when you file your return. I need to file a 2011 tax return Use Form 1040-ES, Estimated Tax for Individuals, to figure and pay the tax. I need to file a 2011 tax return   However, if at least two-thirds of your gross income for 2013 or 2014 was from farming and you file your 2014 Form 1040 and pay all the tax due by March 2, 2015, you do not have to pay any estimated tax. I need to file a 2011 tax return For more information about estimated tax for farmers, see chapter 15. I need to file a 2011 tax return Penalty for underpayment of estimated tax. I need to file a 2011 tax return   You may have to pay a penalty if you do not pay enough estimated tax by its due date. I need to file a 2011 tax return Who Must Pay Self-Employment Tax? You must pay SE tax and file Schedule SE (Form 1040) if your net earnings from self-employment were $400 or more. I need to file a 2011 tax return The SE tax rules apply no matter how old you are and even if you are already receiving social security or Medicare benefits. I need to file a 2011 tax return Aliens. I need to file a 2011 tax return   Generally, resident aliens must pay self-employment tax under the same rules that apply to U. I need to file a 2011 tax return S. I need to file a 2011 tax return citizens. I need to file a 2011 tax return Nonresident aliens are not subject to self-employment tax. I need to file a 2011 tax return However, residents of the Virgin Islands, Puerto Rico, Guam, the Commonwealth of the Northern Mariana Islands, or American Samoa are subject to self-employment tax, as they are considered U. I need to file a 2011 tax return S. I need to file a 2011 tax return residents for self-employment tax purposes. I need to file a 2011 tax return For more information on aliens, see Publication 519, U. I need to file a 2011 tax return S. I need to file a 2011 tax return Tax Guide for Aliens. I need to file a 2011 tax return Are you self-employed?   You are self-employed if you carry on a trade or business (such as running a farm) as a sole proprietor, an independent contractor, a member of a partnership, or are otherwise in business for yourself. I need to file a 2011 tax return A trade or business is generally an activity carried on for a livelihood or in good faith to make a profit. I need to file a 2011 tax return Share farmer. I need to file a 2011 tax return   You are a self-employed farmer under an income-sharing arrangement if both the following apply. I need to file a 2011 tax return You produce a crop or raise livestock on land belonging to another person. I need to file a 2011 tax return Your share of the crop or livestock, or the proceeds from their sale, depends on the amount produced. I need to file a 2011 tax return Your net farm profit or loss from the income-sharing arrangement is reported on Schedule F (Form 1040) and included in your self-employment earnings. I need to file a 2011 tax return   If you produce a crop or livestock on land belonging to another person and are to receive a specified rate of pay, a fixed sum of money, or a fixed quantity of the crop or livestock, and not a share of the crop or livestock or their proceeds, you may be either self-employed or an employee of the landowner. I need to file a 2011 tax return This will depend on whether the landowner has the right to direct or control your performance of services. I need to file a 2011 tax return Example. I need to file a 2011 tax return A share farmer produces a crop on land owned by another person on a 50-50 crop-share basis. I need to file a 2011 tax return Under the terms of their agreement, the share farmer furnishes the labor and half the cost of seed and fertilizer. I need to file a 2011 tax return The landowner furnishes the machinery and equipment used to produce and harvest the crop, and half the cost of seed and fertilizer. I need to file a 2011 tax return The share farmer is provided a house in which to live. I need to file a 2011 tax return The landowner and the share farmer decide on a cropping plan. I need to file a 2011 tax return The share farmer is a self-employed farmer for purposes of the agreement to produce the crops, and the share farmer's part of the profit or loss from the crops is reported on Schedule F (Form 1040) and included in self-employment earnings. I need to file a 2011 tax return The tax treatment of the landowner is discussed later under Landlord Participation in Farming. I need to file a 2011 tax return Contract farming. I need to file a 2011 tax return   Under typical contract farming arrangements, the grower receives a fixed payment per unit of crops or finished livestock delivered to the processor or packing company. I need to file a 2011 tax return Since the grower typically furnishes labor and bears some production risk, the payments are reported on Schedule F and are therefore subject to self-employment tax. I need to file a 2011 tax return 4-H Club or FFA project. I need to file a 2011 tax return   If an individual participates in a 4-H Club or Future Farmers of America (FFA) project, any net income received from sales or prizes related to the project may be subject to income tax. I need to file a 2011 tax return Report the net income as “Other income” on line 21 of Form 1040. I need to file a 2011 tax return If necessary, attach a statement showing the gross income and expenses. I need to file a 2011 tax return The net income may not be subject to SE tax if the project is primarily for educational purposes and not for profit, and is completed by the individual under the rules and economic restrictions of the sponsoring 4-H or FFA organization. I need to file a 2011 tax return Such a project is generally not considered a trade or business. I need to file a 2011 tax return Partners in a partnership. I need to file a 2011 tax return   Generally, you are self-employed if you are a member of a partnership that carries on a trade or business. I need to file a 2011 tax return Limited partner. I need to file a 2011 tax return   If you are a limited partner, your partnership income is generally not subject to SE tax. I need to file a 2011 tax return However, guaranteed payments you receive for services you perform for the partnership are subject to SE tax and should be reported to you in box 14 of your Schedule K-1 (Form 1065). I need to file a 2011 tax return Business Owned and Operated by Spouses. I need to file a 2011 tax return   If you and your spouse jointly own and operate a farm as an unincorporated business and share in the profits and losses, you are partners in a partnership whether or not you have a formal partnership agreement. I need to file a 2011 tax return You must file Form 1065, instead of Schedule F, unless you make a joint election to be treated as a qualified joint venture. I need to file a 2011 tax return Making this election will allow you to avoid the complexity of Form 1065 but still give each spouse credit for social security earnings on which retirement benefits are based. I need to file a 2011 tax return Qualified joint venture. I need to file a 2011 tax return   If you and your spouse each materially participate as the only members of a jointly owned and operated farm, and you file a joint tax return for the tax year, you can make a joint election to be treated as a qualified joint venture instead of a partnership for the tax year. I need to file a 2011 tax return For an explanation of “material participation,” see the instructions for Schedule C, line G, and the instructions for Schedule F, line E. I need to file a 2011 tax return   To make this election, you must divide all items of income, gain, loss, deduction, and credit attributable to the business between you and your spouse in accordance with your respective interests in the venture. I need to file a 2011 tax return Each of you must file a separate Schedule F and a separate Schedule SE. I need to file a 2011 tax return For more information, see Qualified Joint Venture in the Instructions for Schedule SE (Form 1040). I need to file a 2011 tax return Spouse employee. I need to file a 2011 tax return   If your spouse is your employee, not your partner, you must withhold and pay social security and Medicare taxes for him or her. I need to file a 2011 tax return For more information about employment taxes, see chapter 13. I need to file a 2011 tax return Community property. I need to file a 2011 tax return   If you are a partner and your distributive share of any income or loss from a trade or business carried on by the partnership is community property, treat your share as your self-employment earnings. I need to file a 2011 tax return Do not treat any of your share as self-employment earnings of your spouse. I need to file a 2011 tax return Figuring Self-Employment Earnings Farmer. I need to file a 2011 tax return   If you are self-employed as a farmer, use Schedule F (Form 1040) to figure your self-employment earnings. I need to file a 2011 tax return Partnership income or loss. I need to file a 2011 tax return   If you are a member of a partnership that carries on a trade or business, the partnership should report your self-employment earnings in box 14, code A, of your Schedule K-1 (Form 1065). I need to file a 2011 tax return Box 14 of Schedule K-1 may also provide amounts for gross farming or fishing income (code B) and gross nonfarm income (code C). I need to file a 2011 tax return Use these amounts if you use the farm or nonfarm optional method to figure net earnings from self-employment (see Methods for Figuring Net Earnings , later). I need to file a 2011 tax return   If you are a general partner, you may need to reduce these reported earnings by amounts you claim as a section 179 deduction, unreimbursed partnership expenses, or depletion on oil and gas properties. I need to file a 2011 tax return   If the amount reported is a loss, include only the deductible amount when you figure your total self-employment earnings. I need to file a 2011 tax return   For more information, see the Partner's Instructions for Schedule K-1 (Form 1065). I need to file a 2011 tax return   For general information on partnerships, see Publication 541. I need to file a 2011 tax return More than one business. I need to file a 2011 tax return   If you have self-employment earnings from more than one trade, business, or profession, you generally must combine the net profit or loss from each to determine your total self-employment earnings. I need to file a 2011 tax return A loss from one business reduces your profit from another business. I need to file a 2011 tax return However, do not combine earnings from farm and nonfarm businesses if you are using one of the optional methods (discussed later) to figure net earnings. I need to file a 2011 tax return Community property. I need to file a 2011 tax return   If any of the income from a farm or business, other than a partnership, is community property under state law, it is included in the self-employment earnings of the spouse carrying on the trade or business. I need to file a 2011 tax return Lost income payments. I need to file a 2011 tax return   Lost income payments received from insurance or other sources for reducing or stopping farming activities are included in self-employment earnings. I need to file a 2011 tax return These include USDA payments to compensate for lost income resulting from reductions in tobacco quotas and allotments. I need to file a 2011 tax return Even if you are not farming when you receive the payment, it is included in self-employment earnings if it relates to your farm business (even though it is temporarily inactive). I need to file a 2011 tax return A connection exists if it is clear the payment would not have been made but for your conduct of your farm business. I need to file a 2011 tax return Gain or loss. I need to file a 2011 tax return   A gain or loss from the disposition of property that is neither stock in trade nor held primarily for sale to customers is not included in self-employment earnings. I need to file a 2011 tax return It does not matter whether the disposition is a sale, exchange, or involuntary conversion. I need to file a 2011 tax return For example, gains or losses from the disposition of the following types of property are not included in self-employment earnings. I need to file a 2011 tax return Investment property. I need to file a 2011 tax return Depreciable property or other fixed assets used in your trade or business. I need to file a 2011 tax return Livestock held for draft, breeding, sport, or dairy purposes, and not held primarily for sale, regardless of how long the livestock was held, or whether it was raised or purchased. I need to file a 2011 tax return Unharvested standing crops sold with land held more than 1 year. I need to file a 2011 tax return Timber, coal, or iron ore held for more than 1 year if an economic interest was retained, such as a right to receive coal royalties. I need to file a 2011 tax return   A gain or loss from the cutting of timber is not included in self-employment earnings if the cutting is treated as a sale or exchange. I need to file a 2011 tax return For more information on electing to treat the cutting of timber as a sale or exchange, see Timber in chapter 8. I need to file a 2011 tax return Wages and salaries. I need to file a 2011 tax return   Wages and salaries received for services performed as an employee and covered by social security or railroad retirement are not included in self-employment earnings. I need to file a 2011 tax return   Wages paid in kind to you for agricultural labor, such as commodity wages, are not included in self-employment earnings. I need to file a 2011 tax return Retired partner. I need to file a 2011 tax return   Retirement income received by a partner from his or her partnership under a written plan is not included in self-employment earnings if all the following apply. I need to file a 2011 tax return The retired partner performs no services for the partnership during the year. I need to file a 2011 tax return The retired partner is owed only the retirement payments. I need to file a 2011 tax return The retired partner's share (if any) of the partnership capital was fully paid to the retired partner. I need to file a 2011 tax return The payments to the retired partner are lifelong periodic payments. I need to file a 2011 tax return Conservation Reserve Program (CRP) payments. I need to file a 2011 tax return   Under the Conservation Reserve Program (CRP), if you own or operate highly erodible or other specified cropland, you may enter into a longterm contract with the USDA, agreeing to convert to a less intensive use of that cropland. I need to file a 2011 tax return You must include the annual rental payments and any onetime incentive payment you receive under the program on Schedule F, lines 4a and 4b. I need to file a 2011 tax return Cost share payments you receive may qualify for the costsharing exclusion. I need to file a 2011 tax return See Cost-Sharing Exclusion (Improvements), above. I need to file a 2011 tax return CRP payments are reported to you on Form 1099G. I need to file a 2011 tax return Individuals who are receiving Social Security retirement or disability benefits may exclude CRP payments when calculating self-employment tax. I need to file a 2011 tax return See the instructions for Schedule SE (Form 1040). I need to file a 2011 tax return Self-employed health insurance deduction. I need to file a 2011 tax return   You cannot deduct the self-employed health insurance deduction you report on Form 1040, line 29, from self-employment earnings on Schedule SE (Form 1040). I need to file a 2011 tax return Landlord Participation in Farming As a general rule, income and deductions from rentals and from personal property leased with real estate are not included in determining self-employment earnings. I need to file a 2011 tax return However, income and deductions from farm rentals, including government commodity program payments received by a landowner who rents land, are included if the rental arrangement provides that the landowner will, and does, materially participate in the production or management of production of the farm products on the land. I need to file a 2011 tax return Crop shares. I need to file a 2011 tax return   Rent paid in the form of crop shares is included in self-employment earnings for the year you sell, exchange, give away, or use the crop shares if you meet one of the four material participation tests (discussed next) at the time the crop shares are produced. I need to file a 2011 tax return Feeding such crop shares to livestock is considered using them. I need to file a 2011 tax return Your gross income for figuring your self-employment earnings includes the fair market value of the crop shares when they are used as feed. I need to file a 2011 tax return Material participation for landlords. I need to file a 2011 tax return   You materially participate if you have an arrangement with your tenant for your participation and you meet one or more of the following tests. I need to file a 2011 tax return You do at least three of the following. I need to file a 2011 tax return Pay, using cash or credit, at least half the direct costs of producing the crop or livestock. I need to file a 2011 tax return Furnish at least half the tools, equipment, and livestock used in the production activities. I need to file a 2011 tax return Advise or consult with your tenant. I need to file a 2011 tax return Inspect the production activities periodically. I need to file a 2011 tax return You regularly and frequently make, or take an important part in making, management decisions substantially contributing to or affecting the success of the enterprise. I need to file a 2011 tax return You work 100 hours or more spread over a period of 5 weeks or more in activities connected with agricultural production. I need to file a 2011 tax return You do things that, considered in their totality, show you are materially and significantly involved in the production of the farm commodities. I need to file a 2011 tax return These tests may be used as general guides for determining whether you are a material participant. I need to file a 2011 tax return Example. I need to file a 2011 tax return Drew Houston agrees to produce a crop on J. I need to file a 2011 tax return Clarke's cotton farm, with each receiving half the proceeds. I need to file a 2011 tax return Clarke advises Houston when to plant, spray, and pick the cotton. I need to file a 2011 tax return During the growing season, Clarke inspects the crop every few days to determine whether Houston is properly taking care of the crop. I need to file a 2011 tax return Houston furnishes all labor needed to grow and harvest the crop. I need to file a 2011 tax return The management decisions made by Clarke in connection with the care of the cotton crop and his regular inspection of the crop establish that he participates to a material degree in the cotton production operations. I need to file a 2011 tax return The income Clarke receives from his cotton farm is included in his self-employment earnings. I need to file a 2011 tax return Methods for Figuring Net Earnings There are three ways to figure your net earnings from self-employment. I need to file a 2011 tax return The regular method. I need to file a 2011 tax return The farm optional method. I need to file a 2011 tax return The nonfarm optional method. I need to file a 2011 tax return You must use the regular method unless you are eligible to use one or both of the optional methods. I need to file a 2011 tax return See Figure 12-1 , shown later. I need to file a 2011 tax return Figure 12-1. I need to file a 2011 tax return Can I Use the Optional Methods? Please click here for the text description of the image. I need to file a 2011 tax return Figure 12–1. I need to file a 2011 tax return Can I Use the Optional Methods? Why use an optional method?   You may want to use the optional methods (discussed later) when you have a loss or a small net profit and any one of the following applies. I need to file a 2011 tax return You want to receive credit for social security benefit coverage. I need to file a 2011 tax return You incurred child or dependent care expenses for which you could claim a credit. I need to file a 2011 tax return (An optional method may increase your earned income, which could increase your credit. I need to file a 2011 tax return ) You are entitled to the earned income credit. I need to file a 2011 tax return (An optional method may increase your earned income, which could increase your credit. I need to file a 2011 tax return ) You are entitled to the additional child tax credit. I need to file a 2011 tax return (An optional method may increase your earned income, which could increase your credit. I need to file a 2011 tax return ) Effects of using an optional method. I need to file a 2011 tax return   Using an optional method could increase your SE tax. I need to file a 2011 tax return Paying more SE tax may result in you getting higher social security disability or retirement benefits. I need to file a 2011 tax return   If you use either or both optional methods, you must figure and pay the SE tax due under these methods even if you would have had a smaller SE tax or no SE tax using the regular method. I need to file a 2011 tax return   The optional methods may be used only to figure your SE tax. I need to file a 2011 tax return To figure your income tax, include your actual self-employment earnings in gross income, regardless of which method you use to determine SE tax. I need to file a 2011 tax return Regular Method Multiply your total self-employment earnings by 92. I need to file a 2011 tax return 35% (. I need to file a 2011 tax return 9235) to get your net earnings under the regular method. I need to file a 2011 tax return See Short Schedule SE, line 4, or Long Schedule SE, line 4a. I need to file a 2011 tax return Net earnings figured using the regular method are also called “actual net earnings. I need to file a 2011 tax return ” Farm Optional Method Use the farm optional method only for self-employment earnings from a farming business. I need to file a 2011 tax return You can use this method if you meet either of the following tests. I need to file a 2011 tax return Your gross farm income is $6,960 or less. I need to file a 2011 tax return Your net farm profits are less than $5,024. I need to file a 2011 tax return Gross farm income. I need to file a 2011 tax return   Your gross farm income is the total of the amounts from: Schedule F (Form 1040), line 9, and Schedule K-1 (Form 1065), box 14, code B (from farm partnerships). I need to file a 2011 tax return Net farm profits. I need to file a 2011 tax return   Net farm profits generally are the total of the amounts from: Schedule F (Form 1040), line 34, and Schedule K-1 (Form 1065), box 14, code A (from farm partnerships). I need to file a 2011 tax return However, you may need to adjust the amount reported on Schedule K-1 if you are a general partner or if it is a loss. I need to file a 2011 tax return For more information, see Partnership income or loss , earlier. I need to file a 2011 tax return Figuring farm net earnings. I need to file a 2011 tax return   If you meet either of the two tests explained above, use Table 12-1. I need to file a 2011 tax return Figuring Farm Net Earnings , to figure your net earnings from self-employment under the farm optional method. I need to file a 2011 tax return Table 12-1. I need to file a 2011 tax return Figuring Farm Net Earnings IF your gross farm income  is. I need to file a 2011 tax return . I need to file a 2011 tax return . I need to file a 2011 tax return THEN your net earnings are equal to. I need to file a 2011 tax return . I need to file a 2011 tax return . I need to file a 2011 tax return $6,960 or less Two-thirds of your gross farm income. I need to file a 2011 tax return More than $6,960 $4,640 Optional method can reduce or eliminate SE tax. I need to file a 2011 tax return   If your gross farm income is $6,960 or less and your farm net earnings figured under the farm optional method are less than your actual net earnings, you can use the farm optional method to reduce or eliminate your SE tax. I need to file a 2011 tax return Your actual net earnings are your net earnings figured using the regular method, explained earlier. I need to file a 2011 tax return Example. I need to file a 2011 tax return Your gross farm income is $540 and your net farm profit is $460. I need to file a 2011 tax return Consequently, your net earnings figured under the farm optional method are $360 (2/3 of $540) and your actual net earnings are $425 (92. I need to file a 2011 tax return 35% of $460). I need to file a 2011 tax return You owe no SE tax if you use the optional method because your net earnings under the farm optional method are less than $400. I need to file a 2011 tax return Nonfarm Optional Method This is an optional method available for determining net earnings from nonfarm self-employment, much like the farm optional method. I need to file a 2011 tax return If you are also engaged in a nonfarm business, you may be able to use this method to figure your nonfarm net earnings. I need to file a 2011 tax return You can use this method even if you do not use the farm optional method for determining your farm net earnings and even if you have a net loss from your nonfarm business. I need to file a 2011 tax return For more information about the nonfarm optional method, see Publication 334. I need to file a 2011 tax return You cannot combine farm and nonfarm self-employment earnings to figure your net earnings under either of the optional methods. I need to file a 2011 tax return Using Both Optional Methods If you use both optional methods, you must add the net earnings figured under each method to arrive at your total net earnings from self-employment. I need to file a 2011 tax return You can report less than your total actual farm and nonfarm net earnings but not less than actual nonfarm net earnings. I need to file a 2011 tax return If you use both optional methods, you can report no more than $4,640 as your combined net earnings from self-employment. I need to file a 2011 tax return Reporting Self-Employment Tax Use Schedule SE (Form 1040) to figure and report your SE tax. I need to file a 2011 tax return Then, enter the SE tax on line 56 of Form 1040 and attach Schedule SE to Form 1040. I need to file a 2011 tax return Most taxpayers can use Section A–Short Schedule SE to figure their SE tax. I need to file a 2011 tax return However, certain taxpayers must use Section B–Long Schedule SE. I need to file a 2011 tax return Use the chart on page 1 of Schedule SE to find out which one to use. I need to file a 2011 tax return If you have to pay SE tax, you must file Form 1040 (with Schedule SE attached) even if you do not otherwise have to file a federal income tax return. I need to file a 2011 tax return Deduction for employer-equivalent portion of self-employment tax. I need to file a 2011 tax return   You can deduct the employer-equivalent portion of your SE tax in figuring your adjusted gross income. I need to file a 2011 tax return This deduction only affects your income tax. I need to file a 2011 tax return It does not affect either your net earnings from self-employment or your SE tax. I need to file a 2011 tax return   To deduct the tax, enter on Form 1040, line 27, the amount shown on Section A, Line 6, or Section B, line 13, Deduction for employer-equivalent portion of self-employment tax, of the Schedule SE. I need to file a 2011 tax return Joint return. I need to file a 2011 tax return   Even if you file a joint return, you cannot file a joint Schedule SE. I need to file a 2011 tax return This is true whether one spouse or both spouses have self-employment earnings. I need to file a 2011 tax return Your spouse is not considered self-employed just because you are. I need to file a 2011 tax return If both of you have self-employment earnings, each of you must complete a separate Schedule SE. I need to file a 2011 tax return However, if one spouse uses the Short Schedule SE and the other spouse has to use the Long Schedule SE, both can use the same form. I need to file a 2011 tax return Attach both schedules to the joint return. I need to file a 2011 tax return If you and your spouse operate a business as a partnership, see Business Owned and Operated by Spouses and Qualified joint venture , earlier, under Who Must Pay Self-Employment Tax . I need to file a 2011 tax return Prev  Up  Next   Home   More Online Publications
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Understanding your CP71A Notice

You received this notice to remind you of the amount you owe in tax, penalty and interest.

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Page Last Reviewed or Updated: 06-Mar-2014

The I Need To File A 2011 Tax Return

I need to file a 2011 tax return 2. I need to file a 2011 tax return   Employees' Pay Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Tests for Deducting PayTest 1—Reasonableness Test 2—For Services Performed Kinds of PayAwards Bonuses Education Expenses Fringe Benefits Loans or Advances Property Reimbursements for Business Expenses Sick and Vacation Pay Introduction You can generally deduct the amount you pay your employees for the services they perform. I need to file a 2011 tax return The pay may be in cash, property, or services. I need to file a 2011 tax return It may include wages, salaries, bonuses, commissions, or other non-cash compensation such as vacation allowances and fringe benefits. I need to file a 2011 tax return For information about deducting employment taxes, see chapter 5. I need to file a 2011 tax return You can claim employment credits, such as the following, if you hire individuals who meet certain requirements. I need to file a 2011 tax return Empowerment zone employment credit (Form 8844). I need to file a 2011 tax return Indian employment credit (Form 8845). I need to file a 2011 tax return Work opportunity credit (Form 5884). I need to file a 2011 tax return Credit for employer differential wage payments (Form 8932). I need to file a 2011 tax return Reduce your deduction for employee wages by the amount of employment credits you claim. I need to file a 2011 tax return For more information about these credits, see the form on which the credit is claimed. I need to file a 2011 tax return Topics - This chapter discusses: Tests for deducting pay Kinds of pay Useful Items - You may want to see: Publication 15 (Circular E), Employer's Tax Guide 15-A Employer's Supplemental Tax Guide 15-B Employer's Tax Guide to Fringe Benefits See chapter 12 for information about getting publications and forms. I need to file a 2011 tax return Tests for Deducting Pay To be deductible, your employees' pay must be an ordinary and necessary business expense and you must pay or incur it. I need to file a 2011 tax return These and other requirements that apply to all business expenses are explained in chapter 1. I need to file a 2011 tax return In addition, the pay must meet both of the following tests. I need to file a 2011 tax return Test 1. I need to file a 2011 tax return It must be reasonable. I need to file a 2011 tax return Test 2. I need to file a 2011 tax return It must be for services performed. I need to file a 2011 tax return The form or method of figuring the pay does not affect its deductibility. I need to file a 2011 tax return For example, bonuses and commissions based on sales or earnings, and paid under an agreement made before the services were performed, are both deductible. I need to file a 2011 tax return Test 1—Reasonableness You must be able to prove that the pay is reasonable. I need to file a 2011 tax return Whether the pay is reasonable depends on the circumstances that existed when you contracted for the services, not those that exist when reasonableness is questioned. I need to file a 2011 tax return If the pay is excessive, the excess pay is disallowed as a deduction. I need to file a 2011 tax return Factors to consider. I need to file a 2011 tax return   Determine the reasonableness of pay by the facts and circumstances. I need to file a 2011 tax return Generally, reasonable pay is the amount that a similar business would pay for the same or similar services. I need to file a 2011 tax return   To determine if pay is reasonable, also consider the following items and any other pertinent facts. I need to file a 2011 tax return The duties performed by the employee. I need to file a 2011 tax return The volume of business handled. I need to file a 2011 tax return The character and amount of responsibility. I need to file a 2011 tax return The complexities of your business. I need to file a 2011 tax return The amount of time required. I need to file a 2011 tax return The cost of living in the locality. I need to file a 2011 tax return The ability and achievements of the individual employee performing the service. I need to file a 2011 tax return The pay compared with the gross and net income of the business, as well as with distributions to shareholders if the business is a corporation. I need to file a 2011 tax return Your policy regarding pay for all your employees. I need to file a 2011 tax return The history of pay for each employee. I need to file a 2011 tax return Test 2—For Services Performed You must be able to prove the payment was made for services actually performed. I need to file a 2011 tax return Employee-shareholder salaries. I need to file a 2011 tax return   If a corporation pays an employee who is also a shareholder a salary that is unreasonably high considering the services actually performed, the excessive part of the salary may be treated as a constructive dividend to the employee-shareholder. I need to file a 2011 tax return The excessive part of the salary would not be allowed as a salary deduction by the corporation. I need to file a 2011 tax return For more information on corporate distributions to shareholders, see Publication 542, Corporations. I need to file a 2011 tax return Kinds of Pay Some of the ways you may provide pay to your employees in addition to regular wages or salaries are discussed next. I need to file a 2011 tax return For specialized and detailed information on employees' pay and the employment tax treatment of employees' pay, see Publications 15, 15-A, and 15-B. I need to file a 2011 tax return Awards You can generally deduct amounts you pay to your employees as awards, whether paid in cash or property. I need to file a 2011 tax return If you give property to an employee as an employee achievement award, your deduction may be limited. I need to file a 2011 tax return Achievement awards. I need to file a 2011 tax return   An achievement award is an item of tangible personal property that meets all the following requirements. I need to file a 2011 tax return It is given to an employee for length of service or safety achievement. I need to file a 2011 tax return It is awarded as part of a meaningful presentation. I need to file a 2011 tax return It is awarded under conditions and circumstances that do not create a significant likelihood of disguised pay. I need to file a 2011 tax return Length-of-service award. I need to file a 2011 tax return    An award will qualify as a length-of-service award only if either of the following applies. I need to file a 2011 tax return The employee receives the award after his or her first 5 years of employment. I need to file a 2011 tax return The employee did not receive another length-of-service award (other than one of very small value) during the same year or in any of the prior 4 years. I need to file a 2011 tax return Safety achievement award. I need to file a 2011 tax return    An award for safety achievement will qualify as an achievement award unless one of the following applies. I need to file a 2011 tax return It is given to a manager, administrator, clerical employee, or other professional employee. I need to file a 2011 tax return During the tax year, more than 10% of your employees, excluding those listed in (1), have already received a safety achievement award (other than one of very small value). I need to file a 2011 tax return Deduction limit. I need to file a 2011 tax return   Your deduction for the cost of employee achievement awards given to any one employee during the tax year is limited to the following. I need to file a 2011 tax return $400 for awards that are not qualified plan awards. I need to file a 2011 tax return $1,600 for all awards, whether or not qualified plan awards. I need to file a 2011 tax return   A qualified plan award is an achievement award given as part of an established written plan or program that does not favor highly compensated employees as to eligibility or benefits. I need to file a 2011 tax return   A highly compensated employee is an employee who meets either of the following tests. I need to file a 2011 tax return The employee was a 5% owner at any time during the year or the preceding year. I need to file a 2011 tax return The employee received more than $115,000 in pay for the preceding year. I need to file a 2011 tax return You can choose to ignore test (2) if the employee was not also in the top 20% of employees ranked by pay for the preceding year. I need to file a 2011 tax return   An award is not a qualified plan award if the average cost of all the employee achievement awards given during the tax year (that would be qualified plan awards except for this limit) is more than $400. I need to file a 2011 tax return To figure this average cost, ignore awards of nominal value. I need to file a 2011 tax return Deduct achievement awards as a nonwage business expense on your return or business schedule. I need to file a 2011 tax return You may not owe employment taxes on the value of some achievement awards you provide to an employee. I need to file a 2011 tax return See Publication 15-B. I need to file a 2011 tax return Bonuses You can generally deduct a bonus paid to an employee if you intended the bonus as additional pay for services, not as a gift, and the services were performed. I need to file a 2011 tax return However, the total bonuses, salaries, and other pay must be reasonable for the services performed. I need to file a 2011 tax return If the bonus is paid in property, see Property , later. I need to file a 2011 tax return Gifts of nominal value. I need to file a 2011 tax return    If, to promote employee goodwill, you distribute food or merchandise of nominal value to your employees at holidays, you can deduct the cost of these items as a nonwage business expense. I need to file a 2011 tax return Your deduction for de minimis gifts of food or drink are not subject to the 50% deduction limit that generally applies to meals. I need to file a 2011 tax return For more information on this deduction limit, see Meals and lodging , later. I need to file a 2011 tax return Education Expenses If you pay or reimburse education expenses for an employee, you can deduct the payments if they are part of a qualified educational assistance program. I need to file a 2011 tax return Deduct them on the “Employee benefit programs” or other appropriate line of your tax return. I need to file a 2011 tax return For information on educational assistance programs, see Educational Assistance in section 2 of Publication 15-B. I need to file a 2011 tax return Fringe Benefits A fringe benefit is a form of pay for the performance of services. I need to file a 2011 tax return You can generally deduct the cost of fringe benefits. I need to file a 2011 tax return You may be able to exclude all or part of the value of some fringe benefits from your employees' pay. I need to file a 2011 tax return You also may not owe employment taxes on the value of the fringe benefits. I need to file a 2011 tax return See Table 2-1, Special Rules for Various Types of Fringe Benefits, in Publication 15-B for details. I need to file a 2011 tax return Your deduction for the cost of fringe benefits for activities generally considered entertainment, amusement, or recreation, or for a facility used in connection with such an activity (for example, a company aircraft) for certain officers, directors, and more-than-10% shareholders is limited. I need to file a 2011 tax return Certain fringe benefits are discussed next. I need to file a 2011 tax return See Publication 15-B for more details on these and other fringe benefits. I need to file a 2011 tax return Meals and lodging. I need to file a 2011 tax return   You can usually deduct the cost of furnishing meals and lodging to your employees. I need to file a 2011 tax return Deduct the cost in whatever category the expense falls. I need to file a 2011 tax return For example, if you operate a restaurant, deduct the cost of the meals you furnish to employees as part of the cost of goods sold. I need to file a 2011 tax return If you operate a nursing home, motel, or rental property, deduct the cost of furnishing lodging to an employee as expenses for utilities, linen service, salaries, depreciation, etc. I need to file a 2011 tax return Deduction limit on meals. I need to file a 2011 tax return   You can generally deduct only 50% of the cost of furnishing meals to your employees. I need to file a 2011 tax return However, you can deduct the full cost of the following meals. I need to file a 2011 tax return Meals whose value you include in an employee's wages. I need to file a 2011 tax return Meals that qualify as a de minimis fringe benefit as discussed in section 2 of Publication 15-B. I need to file a 2011 tax return This generally includes meals you furnish to employees at your place of business if more than half of these employees are provided the meals for your convenience. I need to file a 2011 tax return Meals you furnish to your employees at the work site when you operate a restaurant or catering service. I need to file a 2011 tax return Meals you furnish to your employees as part of the expense of providing recreational or social activities, such as a company picnic. I need to file a 2011 tax return Meals you are required by federal law to furnish to crew members of certain commercial vessels (or would be required to furnish if the vessels were operated at sea). I need to file a 2011 tax return This does not include meals you furnish on vessels primarily providing luxury water transportation. I need to file a 2011 tax return Meals you furnish on an oil or gas platform or drilling rig located offshore or in Alaska. I need to file a 2011 tax return This includes meals you furnish at a support camp that is near and integral to an oil or gas drilling rig located in Alaska. I need to file a 2011 tax return Employee benefit programs. I need to file a 2011 tax return   Employee benefit programs include the following. I need to file a 2011 tax return Accident and health plans. I need to file a 2011 tax return Adoption assistance. I need to file a 2011 tax return Cafeteria plans. I need to file a 2011 tax return Dependent care assistance. I need to file a 2011 tax return Education assistance. I need to file a 2011 tax return Life insurance coverage. I need to file a 2011 tax return Welfare benefit funds. I need to file a 2011 tax return   You can generally deduct amounts you spend on employee benefit programs on the applicable line of your tax return. I need to file a 2011 tax return For example, if you provide dependent care by operating a dependent care facility for your employees, deduct your costs in whatever categories they fall (utilities, salaries, etc. I need to file a 2011 tax return ). I need to file a 2011 tax return Life insurance coverage. I need to file a 2011 tax return   You cannot deduct the cost of life insurance coverage for you, an employee, or any person with a financial interest in your business, if you are directly or indirectly the beneficiary of the policy. I need to file a 2011 tax return See Regulations section 1. I need to file a 2011 tax return 264-1 for more information. I need to file a 2011 tax return Welfare benefit funds. I need to file a 2011 tax return   A welfare benefit fund is a funded plan (or a funded arrangement having the effect of a plan) that provides welfare benefits to your employees, independent contractors, or their beneficiaries. I need to file a 2011 tax return Welfare benefits are any benefits other than deferred compensation or transfers of restricted property. I need to file a 2011 tax return   Your deduction for contributions to a welfare benefit fund is limited to the fund's qualified cost for the tax year. I need to file a 2011 tax return If your contributions to the fund are more than its qualified cost, carry the excess over to the next tax year. I need to file a 2011 tax return   Generally, the fund's “qualified cost” is the total of the following amounts, reduced by the after-tax income of the fund. I need to file a 2011 tax return The cost you would have been able to deduct using the cash method of accounting if you had paid for the benefits directly. I need to file a 2011 tax return The contributions added to a reserve account that are needed to fund claims incurred but not paid as of the end of the year. I need to file a 2011 tax return These claims can be for supplemental unemployment benefits, severance pay, or disability, medical, or life insurance benefits. I need to file a 2011 tax return   For more information, see sections 419(c) and 419A of the Internal Revenue Code and the related regulations. I need to file a 2011 tax return Loans or Advances You generally can deduct as wages an advance you make to an employee for services performed if you do not expect the employee to repay the advance. I need to file a 2011 tax return However, if the employee performs no services, treat the amount you advanced as a loan. I need to file a 2011 tax return If the employee does not repay the loan, treat it as income to the employee. I need to file a 2011 tax return Below-market interest rate loans. I need to file a 2011 tax return   On certain loans you make to an employee or shareholder, you are treated as having received interest income and as having paid compensation or dividends equal to that interest. I need to file a 2011 tax return See Below-Market Loans in chapter 4. I need to file a 2011 tax return Property If you transfer property (including your company's stock) to an employee as payment for services, you can generally deduct it as wages. I need to file a 2011 tax return The amount you can deduct is the property's fair market value on the date of the transfer less any amount the employee paid for the property. I need to file a 2011 tax return You can claim the deduction only for the tax year in which your employee includes the property's value in income. I need to file a 2011 tax return Your employee is deemed to have included the value in income if you report it on Form W-2, Wage and Tax Statement, in a timely manner. I need to file a 2011 tax return You treat the deductible amount as received in exchange for the property, and you must recognize any gain or loss realized on the transfer, unless it is the company's stock transferred as payment for services. I need to file a 2011 tax return Your gain or loss is the difference between the fair market value of the property and its adjusted basis on the date of transfer. I need to file a 2011 tax return These rules also apply to property transferred to an independent contractor for services, generally reported on Form 1099-MISC, Miscellaneous Income. I need to file a 2011 tax return Restricted property. I need to file a 2011 tax return   If the property you transfer for services is subject to restrictions that affect its value, you generally cannot deduct it and do not report gain or loss until it is substantially vested in the recipient. I need to file a 2011 tax return However, if the recipient pays for the property, you must report any gain at the time of the transfer up to the amount paid. I need to file a 2011 tax return    “Substantially vested” means the property is not subject to a substantial risk of forfeiture. I need to file a 2011 tax return This means that the recipient is not likely to have to give up his or her rights in the property in the future. I need to file a 2011 tax return Reimbursements for Business Expenses You can generally deduct the amount you pay or reimburse employees for business expenses incurred for your business. I need to file a 2011 tax return However, your deduction may be limited. I need to file a 2011 tax return If you make the payment under an accountable plan, deduct it in the category of the expense paid. I need to file a 2011 tax return For example, if you pay an employee for travel expenses incurred on your behalf, deduct this payment as a travel expense. I need to file a 2011 tax return If you make the payment under a nonaccountable plan, deduct it as wages and include it in the employee's Form W-2. I need to file a 2011 tax return See Reimbursement of Travel, Meals, and Entertainment in chapter 11 for more information about deducting reimbursements and an explanation of accountable and nonaccountable plans. I need to file a 2011 tax return Sick and Vacation Pay Sick pay. I need to file a 2011 tax return   You can deduct amounts you pay to your employees for sickness and injury, including lump-sum amounts, as wages. I need to file a 2011 tax return However, your deduction is limited to amounts not compensated by insurance or other means. I need to file a 2011 tax return Vacation pay. I need to file a 2011 tax return   Vacation pay is an employee benefit. I need to file a 2011 tax return It includes amounts paid for unused vacation leave. I need to file a 2011 tax return You can deduct vacation pay only in the tax year in which the employee actually receives it. I need to file a 2011 tax return This rule applies regardless of whether you use the cash or accrual method of accounting. I need to file a 2011 tax return Prev  Up  Next   Home   More Online Publications