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I Need To File My 2012 Federal Taxes

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I Need To File My 2012 Federal Taxes

I need to file my 2012 federal taxes 2. I need to file my 2012 federal taxes   Foreclosures and Repossessions Table of Contents Amount realized and ordinary income on a recourse debt. I need to file my 2012 federal taxes Amount realized on a nonrecourse debt. I need to file my 2012 federal taxes If you do not make payments you owe on a loan secured by property, the lender may foreclose on the loan or repossess the property. I need to file my 2012 federal taxes The foreclosure or repossession is treated as a sale from which you may realize gain or loss. I need to file my 2012 federal taxes This is true even if you voluntarily return the property to the lender. I need to file my 2012 federal taxes If the outstanding loan balance was more than the FMV of the property and the lender cancels all or part of the remaining loan balance, you also may realize ordinary income from the cancellation of debt. I need to file my 2012 federal taxes You must report this income on your return unless certain exceptions or exclusions apply. I need to file my 2012 federal taxes See chapter 1 for more details. I need to file my 2012 federal taxes Borrower's gain or loss. I need to file my 2012 federal taxes    You figure and report gain or loss from a foreclosure or repossession in the same way as gain or loss from a sale. I need to file my 2012 federal taxes The gain is the difference between the amount realized and your adjusted basis in the transferred property (amount realized minus adjusted basis). I need to file my 2012 federal taxes The loss is the difference between your adjusted basis in the transferred property and the amount realized (adjusted basis minus amount realized). I need to file my 2012 federal taxes For more information on figuring gain or loss from the sale of property, see Gain or Loss From Sales and Exchanges in Publication 544. I need to file my 2012 federal taxes You can use Table 1-1 to figure your ordinary income from the cancellation of debt and your gain or loss from a foreclosure or repossession. I need to file my 2012 federal taxes Amount realized and ordinary income on a recourse debt. I need to file my 2012 federal taxes    If you are personally liable for the debt, the amount realized on the foreclosure or repossession includes the smaller of: The outstanding debt immediately before the transfer reduced by any amount for which you remain personally liable immediately after the transfer, or The FMV of the transferred property. I need to file my 2012 federal taxes The amount realized also includes any proceeds you received from the foreclosure sale. I need to file my 2012 federal taxes If the FMV of the transferred property is less than the total outstanding debt immediately before the transfer reduced by any amount for which you remain personally liable immediately after the transfer, the difference is ordinary income from the cancellation of debt. I need to file my 2012 federal taxes You must report this income on your return unless certain exceptions or exclusions apply. I need to file my 2012 federal taxes See chapter 1 for more details. I need to file my 2012 federal taxes       Example 1. I need to file my 2012 federal taxes Tara bought a new car for $15,000. I need to file my 2012 federal taxes She made a $2,000 downpayment and borrowed the remaining $13,000 from the dealer's credit company. I need to file my 2012 federal taxes Tara is personally liable for the loan (recourse debt) and the car is pledged as security for the loan. I need to file my 2012 federal taxes On August 1, 2013, the credit company repossessed the car because Tara had stopped making loan payments. I need to file my 2012 federal taxes The balance due after taking into account the payments Tara made was $10,000. I need to file my 2012 federal taxes The FMV of the car when it was repossessed was $9,000. I need to file my 2012 federal taxes On November 15, 2013, the credit company forgave the remaining $1,000 balance on the loan due to insufficient assets. I need to file my 2012 federal taxes In this case, the amount Tara realizes is $9,000. I need to file my 2012 federal taxes This is the smaller of: The $10,000 outstanding debt immediately before the repossession reduced by the $1,000 for which she remains personally liable immediately after the repossession ($10,000 − $1,000 = $9,000), or The $9,000 FMV of the car. I need to file my 2012 federal taxes Tara figures her gain or loss on the repossession by comparing the $9,000 amount realized with her $15,000 adjusted basis. I need to file my 2012 federal taxes She has a $6,000 nondeductible loss. I need to file my 2012 federal taxes After the cancellation of the remaining balance on the loan in November, Tara also has ordinary income from cancellation of debt in the amount of $1,000 (the remaining balance on the $10,000 loan after the $9,000 amount satisfied by the FMV of the repossessed car). I need to file my 2012 federal taxes Tara must report this $1,000 on her return unless one of the exceptions or exclusions described in chapter 1 applies. I need to file my 2012 federal taxes Example 2. I need to file my 2012 federal taxes Lili paid $200,000 for her home. I need to file my 2012 federal taxes She made a $15,000 downpayment and borrowed the remaining $185,000 from a bank. I need to file my 2012 federal taxes Lili is personally liable for the mortgage loan and the house secures the loan. I need to file my 2012 federal taxes In 2013, the bank foreclosed on the mortgage because Lili stopped making payments. I need to file my 2012 federal taxes When the bank foreclosed the mortgage, the balance due was $180,000, the FMV of the house was $170,000, and Lili's adjusted basis was $175,000 due to a casualty loss she had deducted. I need to file my 2012 federal taxes At the time of the foreclosure, the bank forgave $2,000 of the $10,000 debt in excess of the FMV ($180,000 minus $170,000). I need to file my 2012 federal taxes She remained personally liable for the $8,000 balance. I need to file my 2012 federal taxes In this case, Lili has ordinary income from the cancellation of debt in the amount of $2,000. I need to file my 2012 federal taxes The $2,000 income from the cancellation of debt is figured by subtracting the $170,000 FMV of the house from the $172,000 difference between her total outstanding debt immediately before the transfer of property and the amount for which she remains personally liable immediately after the transfer ($180,000 minus $8,000). I need to file my 2012 federal taxes She is able to exclude the $2,000 of canceled debt from her income under the qualified principal residence indebtedness rules discussed earlier. I need to file my 2012 federal taxes Lili must also determine her gain or loss from the foreclosure. I need to file my 2012 federal taxes In this case, the amount that she realizes is $170,000. I need to file my 2012 federal taxes This is the smaller of: (a) the $180,000 outstanding debt immediately before the transfer reduced by the $8,000 for which she remains personally liable immediately after the transfer ($180,000 − $8,000 = $172,000) or (b) the $170,000 FMV of the house. I need to file my 2012 federal taxes Lili figures her gain or loss on the foreclosure by comparing the $170,000 amount realized with her $175,000 adjusted basis. I need to file my 2012 federal taxes She has a $5,000 nondeductible loss. I need to file my 2012 federal taxes Table 1-1. I need to file my 2012 federal taxes Worksheet for Foreclosures and Repossessions Part 1. I need to file my 2012 federal taxes Complete Part 1 only if you were personally liable for the debt (even if none of the debt was canceled). I need to file my 2012 federal taxes Otherwise, go to Part 2. I need to file my 2012 federal taxes 1. I need to file my 2012 federal taxes Enter the amount of outstanding debt immediately before the transfer of property reduced by any amount for which you remain personally liable immediately after the transfer of property   2. I need to file my 2012 federal taxes Enter the fair market value of the transferred property   3. I need to file my 2012 federal taxes Ordinary income from the cancellation of debt upon foreclosure or repossession. I need to file my 2012 federal taxes * Subtract line 2 from line 1. I need to file my 2012 federal taxes If less than zero, enter zero. I need to file my 2012 federal taxes Next, go to Part 2   Part 2. I need to file my 2012 federal taxes Gain or loss from foreclosure or repossession. I need to file my 2012 federal taxes   4. I need to file my 2012 federal taxes Enter the smaller of line 1 or line 2. I need to file my 2012 federal taxes If you did not complete Part 1 (because you were not personally liable for the debt), enter the amount of outstanding debt immediately before the transfer of property   5. I need to file my 2012 federal taxes Enter any proceeds you received from the foreclosure sale   6. I need to file my 2012 federal taxes Add line 4 and line 5   7. I need to file my 2012 federal taxes Enter the adjusted basis of the transferred property   8. I need to file my 2012 federal taxes Gain or loss from foreclosure or repossession. I need to file my 2012 federal taxes Subtract line 7 from line 6   * The income may not be taxable. I need to file my 2012 federal taxes See chapter 1 for more details. I need to file my 2012 federal taxes Amount realized on a nonrecourse debt. I need to file my 2012 federal taxes    If you are not personally liable for repaying the debt secured by the transferred property, the amount you realize includes the full amount of the outstanding debt immediately before the transfer. I need to file my 2012 federal taxes This is true even if the FMV of the property is less than the outstanding debt immediately before the transfer. I need to file my 2012 federal taxes Example 1. I need to file my 2012 federal taxes Tara bought a new car for $15,000. I need to file my 2012 federal taxes She made a $2,000 downpayment and borrowed the remaining $13,000 from the dealer's credit company. I need to file my 2012 federal taxes Tara is not personally liable for the loan (nonrecourse), but pledged the new car as security for the loan. I need to file my 2012 federal taxes On August 1, 2013, the credit company repossessed the car because Tara had stopped making loan payments. I need to file my 2012 federal taxes The balance due after taking into account the payments Tara made was $10,000. I need to file my 2012 federal taxes The FMV of the car when it was repossessed was $9,000. I need to file my 2012 federal taxes The amount Tara realized on the repossession is $10,000. I need to file my 2012 federal taxes That is the outstanding amount of debt immediately before the repossession, even though the FMV of the car is less than $10,000. I need to file my 2012 federal taxes Tara figures her gain or loss on the repossession by comparing the $10,000 amount realized with her $15,000 adjusted basis. I need to file my 2012 federal taxes Tara has a $5,000 nondeductible loss. I need to file my 2012 federal taxes Example 2. I need to file my 2012 federal taxes Lili paid $200,000 for her home. I need to file my 2012 federal taxes She made a $15,000 downpayment and borrowed the remaining $185,000 from a bank. I need to file my 2012 federal taxes She is not personally liable for the loan, but grants the bank a mortgage. I need to file my 2012 federal taxes The bank foreclosed on the mortgage because Lili stopped making payments. I need to file my 2012 federal taxes When the bank foreclosed on the mortgage, the balance due was $180,000, the FMV of the house was $170,000, and Lili's adjusted basis was $175,000 due to a casualty loss she had deducted. I need to file my 2012 federal taxes The amount Lili realized on the foreclosure is $180,000, the outstanding debt immediately before the foreclosure. I need to file my 2012 federal taxes She figures her gain or loss by comparing the $180,000 amount realized with her $175,000 adjusted basis. I need to file my 2012 federal taxes Lili has a $5,000 realized gain. I need to file my 2012 federal taxes See Publication 523 to figure and report any taxable amount. I need to file my 2012 federal taxes Forms 1099-A and 1099-C. I need to file my 2012 federal taxes    A lender who acquires an interest in your property in a foreclosure or repossession should send you Form 1099-A, Acquisition or Abandonment of Secured Property, showing information you need to figure your gain or loss. I need to file my 2012 federal taxes However, if the lender also cancels part of your debt and must file Form 1099-C, the lender can include the information about the foreclosure or repossession on that form instead of on Form 1099-A. I need to file my 2012 federal taxes The lender must file Form 1099-C and send you a copy if the amount of debt canceled is $600 or more and the lender is a financial institution, credit union, federal government agency, or any organization that has a significant trade or business of lending money. I need to file my 2012 federal taxes For foreclosures or repossessions occurring in 2013, these forms should be sent to you by January 31, 2014. 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Japan 2011 Earthquake/Tsunami – U.S. Government Information


In the United States

Environmental Monitoring

The EPA has its radiation air monitoring (RadNet) data, frequently asked questions, and other resources on http://www.epa.gov/japan2011/. Here you can:

Food Safety

The U.S. Food and Drug Administration (FDA) has deemed that based on current information, there is no risk to the U.S. food supply.

In response to the ongoing situation in Japan, the EPA has taken steps to increase the level of nationwide monitoring of milk, precipitation, drinking water, and other potential exposure routes.

  • EPA conducts radiological monitoring of milk under its RADNET program
  • The U.S. Food and Drug Administration has jurisdiction over the safety, labeling and identity of milk and milk products in interstate commerce.
  • States have jurisdiction over those facilities located within their territory.

Results from a screening sample taken March 25 from Spokane, WA detected 0.8 pCi/L of iodine-131, which is more than 5,000 times lower than the Derived Intervention Level set by the U.S. Food and Drug Administration.

  • These types of findings are to be expected in the coming days and are far below levels of public health concern, including for infants and children.
  • Iodine-131 has a very short half-life of approximately eight days, and the level detected in milk and milk products is therefore expected to drop relatively quickly.

Radiation is all around us in our daily lives, and these findings are a miniscule amount compared to what people experience every day. For example, people are exposed to low levels of radiation on round trip cross country flights, watching television, and even from construction materials.

  • The U.S. Food and Drug Administration has jurisdiction over 80 percent of the food supply, including seafood, dairy, and produce. The U.S. Department of Agriculture regulates meat, poultry, and processed egg products, while FDA regulates all other food products.
  • The U.S. Department of Agriculture has stated that Japan has not exported any beef products to the United States for nearly a year.
  • The U.S. Department of Agriculture has stated that Japan is not currently eligible to export any poultry or processed egg products to the U.S.
  • The U.S. Food and Drug Administration and Customs and Border Protection carefully screen all food products for unsafe substances, including radiological material at Ports of Entry.
  • Learn more about keeping food safe during an emergency.

Potassium Iodide (KI)

The Centers for Disease Control (CDC) does not recommend that people in the United States take potassium iodide supplements (also called KI) in response to the damaged nuclear reactors in Japan.

  • Only take KI on the advice of emergency management officials, public health officials, or your doctor.
  • There are health risks associated with taking KI.

Food, Mail, Ships, and Cargo from Japan

The U.S. Customs and Border Protection (CBP) is monitoring developments in Japan carefully and uses several types of radiation detection equipment in air and sea ports, mail facilities, and elsewhere to ensure safety.

  • CBP and the U.S. Food and Drug Administration carefully screen all food products for unsafe substances, including radiological material, at Ports of Entry.
  • All inbound travelers, baggage, and cargo are screened for radiological materials.
  • CBP employs radiation monitors at international mail facilities.

American Citizens in Japan

American Embassy in Japan

All U.S. citizens in Japan should continue to carefully monitor the situation and follow the guidance of the U.S. and Japanese governments.

Authorized Departures

The U.S. government has authorized the voluntary departure from Japan of eligible family members of U.S. government personnel assigned to the U.S. Embassy in Tokyo, the U.S. Consulate in Nagoya, the Foreign Service Institute Field School in Yokohama, and U.S. Forces Japan.

Evacuations

Travel to and from Japan

Disaster Preparedness

The tragic events in Japan remind us that disasters can strike at any time. The best way to make sure your family is taken care of when disaster strikes is to be prepared.

Additional Information

  • Earthquake in Japan – See facts from the U.S. Geological Survey about the 9.0 earthquake.
  • Earthquake Preparedness and Response – The U.S. Centers for Disease Control and Prevention provides helpful tips on how to prepare for an earthquake and what to do during a quake.
  • Earthquakes, Flooding, and Radiation – The National Institutes of Health provides information and resources about natural disasters and their effects.
  • Tsunami Health Effects – The U.S. Centers for Disease Control and Prevention describes the immediate, secondary, and long-term health effects of a tsunami.
  • Tsunami Preparedness – The Federal Emergency Management Agency explains what a tsunami is and provides guidance on what to do during a tsunami watch or warning.
  • Radiation – Read about the assistance and expertise that the U.S. Department of Energy is providing to Japanese response and recovery efforts.

The I Need To File My 2012 Federal Taxes

I need to file my 2012 federal taxes Publication 15-B - Main Content Table of Contents 1. I need to file my 2012 federal taxes Fringe Benefit OverviewAre Fringe Benefits Taxable? Cafeteria Plans Simple Cafeteria Plans 2. I need to file my 2012 federal taxes Fringe Benefit Exclusion RulesAccident and Health Benefits Achievement Awards Adoption Assistance Athletic Facilities De Minimis (Minimal) Benefits Dependent Care Assistance Educational Assistance Employee Discounts Employee Stock Options Employer-Provided Cell Phones Group-Term Life Insurance Coverage Health Savings Accounts Lodging on Your Business Premises Meals Moving Expense Reimbursements No-Additional-Cost Services Retirement Planning Services Transportation (Commuting) Benefits Tuition Reduction Working Condition Benefits 3. I need to file my 2012 federal taxes Fringe Benefit Valuation RulesGeneral Valuation Rule Cents-Per-Mile Rule Commuting Rule Lease Value Rule Unsafe Conditions Commuting Rule 4. I need to file my 2012 federal taxes Rules for Withholding, Depositing, and ReportingTransfer of property. I need to file my 2012 federal taxes Amount of deposit. I need to file my 2012 federal taxes Limitation. I need to file my 2012 federal taxes Conformity rules. I need to file my 2012 federal taxes Election not to withhold income tax. I need to file my 2012 federal taxes How To Get Tax Help 1. I need to file my 2012 federal taxes Fringe Benefit Overview A fringe benefit is a form of pay for the performance of services. I need to file my 2012 federal taxes For example, you provide an employee with a fringe benefit when you allow the employee to use a business vehicle to commute to and from work. I need to file my 2012 federal taxes Performance of services. I need to file my 2012 federal taxes   A person who performs services for you does not have to be your employee. I need to file my 2012 federal taxes A person may perform services for you as an independent contractor, partner, or director. I need to file my 2012 federal taxes Also, for fringe benefit purposes, treat a person who agrees not to perform services (such as under a covenant not to compete) as performing services. I need to file my 2012 federal taxes Provider of benefit. I need to file my 2012 federal taxes   You are the provider of a fringe benefit if it is provided for services performed for you. I need to file my 2012 federal taxes You are considered the provider of a fringe benefit even if a third party, such as your client or customer, provides the benefit to your employee for services the employee performs for you. I need to file my 2012 federal taxes For example, if, in exchange for goods or services, your customer provides day care services as a fringe benefit to your employees for services they provide for you as their employer, then you are the provider of this fringe benefit even though the customer is actually providing the day care. I need to file my 2012 federal taxes Recipient of benefit. I need to file my 2012 federal taxes   The person who performs services for you is considered the recipient of a fringe benefit provided for those services. I need to file my 2012 federal taxes That person may be considered the recipient even if the benefit is provided to someone who did not perform services for you. I need to file my 2012 federal taxes For example, your employee may be the recipient of a fringe benefit you provide to a member of the employee's family. I need to file my 2012 federal taxes Are Fringe Benefits Taxable? Any fringe benefit you provide is taxable and must be included in the recipient's pay unless the law specifically excludes it. I need to file my 2012 federal taxes Section 2 discusses the exclusions that apply to certain fringe benefits. I need to file my 2012 federal taxes Any benefit not excluded under the rules discussed in section 2 is taxable. I need to file my 2012 federal taxes Including taxable benefits in pay. I need to file my 2012 federal taxes   You must include in a recipient's pay the amount by which the value of a fringe benefit is more than the sum of the following amounts. I need to file my 2012 federal taxes Any amount the law excludes from pay. I need to file my 2012 federal taxes Any amount the recipient paid for the benefit. I need to file my 2012 federal taxes The rules used to determine the value of a fringe benefit are discussed in section 3. I need to file my 2012 federal taxes   If the recipient of a taxable fringe benefit is your employee, the benefit is subject to employment taxes and must be reported on Form W-2, Wage and Tax Statement. I need to file my 2012 federal taxes However, you can use special rules to withhold, deposit, and report the employment taxes. I need to file my 2012 federal taxes These rules are discussed in section 4. I need to file my 2012 federal taxes   If the recipient of a taxable fringe benefit is not your employee, the benefit is not subject to employment taxes. I need to file my 2012 federal taxes However, you may have to report the benefit on one of the following information returns. I need to file my 2012 federal taxes If the recipient receives the benefit as: Use: An independent contractor Form 1099-MISC, Miscellaneous Income A partner Schedule K-1 (Form 1065), Partner's Share of Income, Deductions, Credits, etc. I need to file my 2012 federal taxes For more information, see the instructions for the forms listed above. I need to file my 2012 federal taxes Cafeteria Plans A cafeteria plan, including a flexible spending arrangement, is a written plan that allows your employees to choose between receiving cash or taxable benefits instead of certain qualified benefits for which the law provides an exclusion from wages. I need to file my 2012 federal taxes If an employee chooses to receive a qualified benefit under the plan, the fact that the employee could have received cash or a taxable benefit instead will not make the qualified benefit taxable. I need to file my 2012 federal taxes Generally, a cafeteria plan does not include any plan that offers a benefit that defers pay. I need to file my 2012 federal taxes However, a cafeteria plan can include a qualified 401(k) plan as a benefit. I need to file my 2012 federal taxes Also, certain life insurance plans maintained by educational institutions can be offered as a benefit even though they defer pay. I need to file my 2012 federal taxes Qualified benefits. I need to file my 2012 federal taxes   A cafeteria plan can include the following benefits discussed in section 2. I need to file my 2012 federal taxes Accident and health benefits (but not Archer medical savings accounts (Archer MSAs) or long-term care insurance). I need to file my 2012 federal taxes Adoption assistance. I need to file my 2012 federal taxes Dependent care assistance. I need to file my 2012 federal taxes Group-term life insurance coverage (including costs that cannot be excluded from wages). I need to file my 2012 federal taxes Health savings accounts (HSAs). I need to file my 2012 federal taxes Distributions from an HSA may be used to pay eligible long-term care insurance premiums or qualified long-term care services. I need to file my 2012 federal taxes Benefits not allowed. I need to file my 2012 federal taxes   A cafeteria plan cannot include the following benefits discussed in section 2. I need to file my 2012 federal taxes Archer MSAs. I need to file my 2012 federal taxes See Accident and Health Benefits in section 2. I need to file my 2012 federal taxes Athletic facilities. I need to file my 2012 federal taxes De minimis (minimal) benefits. I need to file my 2012 federal taxes Educational assistance. I need to file my 2012 federal taxes Employee discounts. I need to file my 2012 federal taxes Employer-provided cell phones. I need to file my 2012 federal taxes Lodging on your business premises. I need to file my 2012 federal taxes Meals. I need to file my 2012 federal taxes Moving expense reimbursements. I need to file my 2012 federal taxes No-additional-cost services. I need to file my 2012 federal taxes Transportation (commuting) benefits. I need to file my 2012 federal taxes Tuition reduction. I need to file my 2012 federal taxes Working condition benefits. I need to file my 2012 federal taxes It also cannot include scholarships or fellowships (discussed in Publication 970, Tax Benefits for Education). I need to file my 2012 federal taxes $2,500 limit on a health flexible spending arrangement (FSA). I need to file my 2012 federal taxes   For plan years beginning after December 31, 2012, a cafeteria plan may not allow an employee to request salary reduction contributions for a health FSA in excess of $2,500. I need to file my 2012 federal taxes For plan years beginning after December 31, 2013, the limit is unchanged at $2,500. I need to file my 2012 federal taxes   A cafeteria plan offering a health FSA must be amended to specify the $2,500 limit (or any lower limit set by the employer). I need to file my 2012 federal taxes While cafeteria plans generally must be amended on a prospective basis, an amendment that is adopted on or before December 31, 2014, may be made effective retroactively, provided that in operation the cafeteria plan meets the limit for plan years beginning after December 31, 2012. I need to file my 2012 federal taxes A cafeteria plan that does not limit health FSA contributions to the dollar limit is not a cafeteria plan and all benefits offered under the plan are includible in the employee's gross income. I need to file my 2012 federal taxes   For more information, see Notice 2012-40, 2012-26 I. I need to file my 2012 federal taxes R. I need to file my 2012 federal taxes B. I need to file my 2012 federal taxes 1046, available at www. I need to file my 2012 federal taxes irs. I need to file my 2012 federal taxes gov/irb/2012-26_IRB/ar09. I need to file my 2012 federal taxes html. I need to file my 2012 federal taxes Employee. I need to file my 2012 federal taxes   For these plans, treat the following individuals as employees. I need to file my 2012 federal taxes A current common-law employee. I need to file my 2012 federal taxes See section 2 in Publication 15 (Circular E) for more information. I need to file my 2012 federal taxes A full-time life insurance agent who is a current statutory employee. I need to file my 2012 federal taxes A leased employee who has provided services to you on a substantially full-time basis for at least a year if the services are performed under your primary direction or control. I need to file my 2012 federal taxes Exception for S corporation shareholders. I need to file my 2012 federal taxes   Do not treat a 2% shareholder of an S corporation as an employee of the corporation for this purpose. I need to file my 2012 federal taxes A 2% shareholder for this purpose is someone who directly or indirectly owns (at any time during the year) more than 2% of the corporation's stock or stock with more than 2% of the voting power. I need to file my 2012 federal taxes Treat a 2% shareholder as you would a partner in a partnership for fringe benefit purposes, but do not treat the benefit as a reduction in distributions to the 2% shareholder. I need to file my 2012 federal taxes Plans that favor highly compensated employees. I need to file my 2012 federal taxes   If your plan favors highly compensated employees as to eligibility to participate, contributions, or benefits, you must include in their wages the value of taxable benefits they could have selected. I need to file my 2012 federal taxes A plan you maintain under a collective bargaining agreement does not favor highly compensated employees. I need to file my 2012 federal taxes   A highly compensated employee for this purpose is any of the following employees. I need to file my 2012 federal taxes An officer. I need to file my 2012 federal taxes A shareholder who owns more than 5% of the voting power or value of all classes of the employer's stock. I need to file my 2012 federal taxes An employee who is highly compensated based on the facts and circumstances. I need to file my 2012 federal taxes A spouse or dependent of a person described in (1), (2), or (3). I need to file my 2012 federal taxes Plans that favor key employees. I need to file my 2012 federal taxes   If your plan favors key employees, you must include in their wages the value of taxable benefits they could have selected. I need to file my 2012 federal taxes A plan favors key employees if more than 25% of the total of the nontaxable benefits you provide for all employees under the plan go to key employees. I need to file my 2012 federal taxes However, a plan you maintain under a collective bargaining agreement does not favor key employees. I need to file my 2012 federal taxes   A key employee during 2014 is generally an employee who is either of the following. I need to file my 2012 federal taxes An officer having annual pay of more than $170,000. I need to file my 2012 federal taxes An employee who for 2014 is either of the following. I need to file my 2012 federal taxes A 5% owner of your business. I need to file my 2012 federal taxes A 1% owner of your business whose annual pay was more than $150,000. I need to file my 2012 federal taxes Simple Cafeteria Plans Eligible employers meeting contribution requirements and eligibility and participation requirements can establish a simple cafeteria plan. I need to file my 2012 federal taxes Simple cafeteria plans are treated as meeting the nondiscrimination requirements of a cafeteria plan and certain benefits under a cafeteria plan. I need to file my 2012 federal taxes Eligible employer. I need to file my 2012 federal taxes   You are an eligible employer if you employ an average of 100 or fewer employees during either of the 2 preceding years. I need to file my 2012 federal taxes If your business was not in existence throughout the preceding year, you are eligible if you reasonably expect to employ an average of 100 or fewer employees in the current year. I need to file my 2012 federal taxes If you establish a simple cafeteria plan in a year that you employ an average of 100 or fewer employees, you are considered an eligible employer for any subsequent year as long as you do not employ an average of 200 or more employees in a subsequent year. I need to file my 2012 federal taxes Eligibility and participation requirements. I need to file my 2012 federal taxes   These requirements are met if all employees who had at least 1,000 hours of service for the preceding plan year are eligible to participate and each employee eligible to participate in the plan may elect any benefit available under the plan. I need to file my 2012 federal taxes You may elect to exclude from the plan employees who: Are under age 21 before the close of the plan year, Have less than 1 year of service with you as of any day during the plan year, Are covered under a collective bargaining agreement, or Are nonresident aliens working outside the United States whose income did not come from a U. I need to file my 2012 federal taxes S. I need to file my 2012 federal taxes source. I need to file my 2012 federal taxes Contribution requirements. I need to file my 2012 federal taxes   You must make a contribution to provide qualified benefits on behalf of each qualified employee in an amount equal to: A uniform percentage (not less than 2%) of the employee’s compensation for the plan year, or An amount which is at least 6% of the employee’s compensation for the plan year or twice the amount of the salary reduction contributions of each qualified employee, whichever is less. I need to file my 2012 federal taxes If the contribution requirements are met using option (2), the rate of contribution to any salary reduction contribution of a highly compensated or key employee can not be greater than the rate of contribution to any other employee. I need to file my 2012 federal taxes More information. I need to file my 2012 federal taxes   For more information about cafeteria plans, see section 125 of the Internal Revenue Code and its regulations. I need to file my 2012 federal taxes 2. I need to file my 2012 federal taxes Fringe Benefit Exclusion Rules This section discusses the exclusion rules that apply to fringe benefits. I need to file my 2012 federal taxes These rules exclude all or part of the value of certain benefits from the recipient's pay. I need to file my 2012 federal taxes The excluded benefits are not subject to federal income tax withholding. I need to file my 2012 federal taxes Also, in most cases, they are not subject to social security, Medicare, or federal unemployment (FUTA) tax and are not reported on Form W-2. I need to file my 2012 federal taxes This section discusses the exclusion rules for the following fringe benefits. I need to file my 2012 federal taxes Accident and health benefits. I need to file my 2012 federal taxes Achievement awards. I need to file my 2012 federal taxes Adoption assistance. I need to file my 2012 federal taxes Athletic facilities. I need to file my 2012 federal taxes De minimis (minimal) benefits. I need to file my 2012 federal taxes Dependent care assistance. I need to file my 2012 federal taxes Educational assistance. I need to file my 2012 federal taxes Employee discounts. I need to file my 2012 federal taxes Employee stock options. I need to file my 2012 federal taxes Employer-provided cell phones. I need to file my 2012 federal taxes Group-term life insurance coverage. I need to file my 2012 federal taxes Health savings accounts (HSAs). I need to file my 2012 federal taxes Lodging on your business premises. I need to file my 2012 federal taxes Meals. I need to file my 2012 federal taxes Moving expense reimbursements. I need to file my 2012 federal taxes No-additional-cost services. I need to file my 2012 federal taxes Retirement planning services. I need to file my 2012 federal taxes Transportation (commuting) benefits. I need to file my 2012 federal taxes Tuition reduction. I need to file my 2012 federal taxes Working condition benefits. I need to file my 2012 federal taxes See Table 2-1, later, for an overview of the employment tax treatment of these benefits. I need to file my 2012 federal taxes Table 2-1. I need to file my 2012 federal taxes Special Rules for Various Types of Fringe Benefits (For more information, see the full discussion in this section. I need to file my 2012 federal taxes ) Treatment Under Employment Taxes Type of Fringe Benefit Income Tax Withholding Social Security and Medicare (including Additional Medicare Tax when wages are paid in excess of $200,000) Federal Unemployment (FUTA) Accident and health benefits Exempt1,2, except for long-term care benefits provided through a flexible spending or similar arrangement. I need to file my 2012 federal taxes Exempt, except for certain payments to S corporation employees who are 2% shareholders. I need to file my 2012 federal taxes Exempt Achievement awards Exempt1 up to $1,600 for qualified plan awards ($400 for nonqualified awards). I need to file my 2012 federal taxes Adoption assistance Exempt1,3 Taxable Taxable Athletic facilities Exempt if substantially all use during the calendar year is by employees, their spouses, and their dependent children and the facility is operated by the employer on premises owned or leased by the employer. I need to file my 2012 federal taxes De minimis (minimal) benefits Exempt Exempt Exempt Dependent care assistance Exempt3 up to certain limits, $5,000 ($2,500 for married employee filing separate return). I need to file my 2012 federal taxes Educational assistance Exempt up to $5,250 of benefits each year. I need to file my 2012 federal taxes (See Educational Assistance , later in this section. I need to file my 2012 federal taxes ) Employee discounts Exempt3 up to certain limits. I need to file my 2012 federal taxes (See Employee Discounts , later in this section. I need to file my 2012 federal taxes ) Employee stock options See Employee Stock Options , later in this section. I need to file my 2012 federal taxes Employer-provided cell phones Exempt if provided primarily for noncompensatory business purposes. I need to file my 2012 federal taxes Group-term life insurance coverage Exempt Exempt1,4, 7 up to cost of $50,000 of coverage. I need to file my 2012 federal taxes (Special rules apply to former employees. I need to file my 2012 federal taxes ) Exempt Health savings accounts (HSAs) Exempt for qualified individuals up to the HSA contribution limits. I need to file my 2012 federal taxes (See Health Savings Accounts , later in this section. I need to file my 2012 federal taxes ) Lodging on your business premises Exempt1 if furnished for your convenience as a condition of employment. I need to file my 2012 federal taxes Meals Exempt if furnished on your business premises for your convenience. I need to file my 2012 federal taxes Exempt if de minimis. I need to file my 2012 federal taxes Moving expense reimbursements Exempt1 if expenses would be deductible if the employee had paid them. I need to file my 2012 federal taxes No-additional-cost services Exempt3 Exempt3 Exempt3 Retirement planning services Exempt5 Exempt5 Exempt5 Transportation (commuting) benefits Exempt1 up to certain limits if for rides in a commuter highway vehicle and/or transit passes ($130), qualified parking ($250), or qualified bicycle commuting reimbursement6 ($20). I need to file my 2012 federal taxes (See Transportation (Commuting) Benefits , later in this section. I need to file my 2012 federal taxes ) Exempt if de minimis. I need to file my 2012 federal taxes Tuition reduction Exempt3 if for undergraduate education (or graduate education if the employee performs teaching or research activities). I need to file my 2012 federal taxes Working condition benefits Exempt Exempt Exempt 1 Exemption does not apply to S corporation employees who are 2% shareholders. I need to file my 2012 federal taxes 2 Exemption does not apply to certain highly compensated employees under a self-insured plan that favors those employees. I need to file my 2012 federal taxes 3 Exemption does not apply to certain highly compensated employees under a program that favors those employees. I need to file my 2012 federal taxes 4 Exemption does not apply to certain key employees under a plan that favors those employees. I need to file my 2012 federal taxes 5 Exemption does not apply to services for tax preparation, accounting, legal, or brokerage services. I need to file my 2012 federal taxes 6 If the employee receives a qualified bicycle commuting reimbursement in a qualified bicycle commuting month, the employee cannot receive commuter highway vehicle, transit pass, or qualified parking benefits in that same month. I need to file my 2012 federal taxes 7 You must include in your employee's wages the cost of group-term life insurance beyond $50,000 worth of coverage, reduced by the amount the employee paid toward the insurance. I need to file my 2012 federal taxes Report it as wages in boxes 1, 3, and 5 of the employee's Form W-2. I need to file my 2012 federal taxes Also, show it in box 12 with code “C. I need to file my 2012 federal taxes ” The amount is subject to social security and Medicare taxes, and you may, at your option, withhold federal income tax. I need to file my 2012 federal taxes Accident and Health Benefits This exclusion applies to contributions you make to an accident or health plan for an employee, including the following. I need to file my 2012 federal taxes Contributions to the cost of accident or health insurance including qualified long-term care insurance. I need to file my 2012 federal taxes Contributions to a separate trust or fund that directly or through insurance provides accident or health benefits. I need to file my 2012 federal taxes Contributions to Archer MSAs or health savings accounts (discussed in Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans). I need to file my 2012 federal taxes This exclusion also applies to payments you directly or indirectly make to an employee under an accident or health plan for employees that are either of the following. I need to file my 2012 federal taxes Payments or reimbursements of medical expenses. I need to file my 2012 federal taxes Payments for specific injuries or illnesses (such as the loss of the use of an arm or leg). I need to file my 2012 federal taxes The payments must be figured without regard to any period of absence from work. I need to file my 2012 federal taxes Accident or health plan. I need to file my 2012 federal taxes   This is an arrangement that provides benefits for your employees, their spouses, their dependents, and their children (under age 27) in the event of personal injury or sickness. I need to file my 2012 federal taxes The plan may be insured or noninsured and does not need to be in writing. I need to file my 2012 federal taxes Employee. I need to file my 2012 federal taxes   For this exclusion, treat the following individuals as employees. I need to file my 2012 federal taxes A current common-law employee. I need to file my 2012 federal taxes A full-time life insurance agent who is a current statutory employee. I need to file my 2012 federal taxes A retired employee. I need to file my 2012 federal taxes A former employee you maintain coverage for based on the employment relationship. I need to file my 2012 federal taxes A widow or widower of an individual who died while an employee. I need to file my 2012 federal taxes A widow or widower of a retired employee. I need to file my 2012 federal taxes For the exclusion of contributions to an accident or health plan, a leased employee who has provided services to you on a substantially full-time basis for at least a year if the services are performed under your primary direction or control. I need to file my 2012 federal taxes Special rule for certain government plans. I need to file my 2012 federal taxes   For certain government accident and health plans, payments to a deceased plan participant's beneficiary may qualify for the exclusion from gross income if the other requirements for exclusion are met. I need to file my 2012 federal taxes See section 105(j) for details. I need to file my 2012 federal taxes Exception for S corporation shareholders. I need to file my 2012 federal taxes   Do not treat a 2% shareholder of an S corporation as an employee of the corporation for this purpose. I need to file my 2012 federal taxes A 2% shareholder is someone who directly or indirectly owns (at any time during the year) more than 2% of the corporation's stock or stock with more than 2% of the voting power. I need to file my 2012 federal taxes Treat a 2% shareholder as you would a partner in a partnership for fringe benefit purposes, but do not treat the benefit as a reduction in distributions to the 2% shareholder. I need to file my 2012 federal taxes Exclusion from wages. I need to file my 2012 federal taxes   You can generally exclude the value of accident or health benefits you provide to an employee from the employee's wages. I need to file my 2012 federal taxes Exception for certain long-term care benefits. I need to file my 2012 federal taxes   You cannot exclude contributions to the cost of long-term care insurance from an employee's wages subject to federal income tax withholding if the coverage is provided through a flexible spending or similar arrangement. I need to file my 2012 federal taxes This is a benefit program that reimburses specified expenses up to a maximum amount that is reasonably available to the employee and is less than five times the total cost of the insurance. I need to file my 2012 federal taxes However, you can exclude these contributions from the employee's wages subject to social security, Medicare, and federal unemployment (FUTA) taxes. I need to file my 2012 federal taxes S corporation shareholders. I need to file my 2012 federal taxes   Because you cannot treat a 2% shareholder of an S corporation as an employee for this exclusion, you must include the value of accident or health benefits you provide to the employee in the employee's wages subject to federal income tax withholding. I need to file my 2012 federal taxes However, you can exclude the value of these benefits (other than payments for specific injuries or illnesses) from the employee's wages subject to social security, Medicare, and FUTA taxes. I need to file my 2012 federal taxes Exception for highly compensated employees. I need to file my 2012 federal taxes   If your plan is a self-insured medical reimbursement plan that favors highly compensated employees, you must include all or part of the amounts you pay to these employees in their wages subject to federal income tax withholding. I need to file my 2012 federal taxes However, you can exclude these amounts (other than payments for specific injuries or illnesses) from the employee's wages subject to social security, Medicare, and FUTA taxes. I need to file my 2012 federal taxes   A self-insured plan is a plan that reimburses your employees for medical expenses not covered by an accident or health insurance policy. I need to file my 2012 federal taxes   A highly compensated employee for this exception is any of the following individuals. I need to file my 2012 federal taxes One of the five highest paid officers. I need to file my 2012 federal taxes An employee who owns (directly or indirectly) more than 10% in value of the employer's stock. I need to file my 2012 federal taxes An employee who is among the highest paid 25% of all employees (other than those who can be excluded from the plan). I need to file my 2012 federal taxes   For more information on this exception, see section 105(h) of the Internal Revenue Code and its regulations. I need to file my 2012 federal taxes COBRA premiums. I need to file my 2012 federal taxes   The exclusion for accident and health benefits applies to amounts you pay to maintain medical coverage for a current or former employee under the Combined Omnibus Budget Reconciliation Act of 1986 (COBRA). I need to file my 2012 federal taxes The exclusion applies regardless of the length of employment, whether you directly pay the premiums or reimburse the former employee for premiums paid, and whether the employee's separation is permanent or temporary. I need to file my 2012 federal taxes Achievement Awards This exclusion applies to the value of any tangible personal property you give to an employee as an award for either length of service or safety achievement. I need to file my 2012 federal taxes The exclusion does not apply to awards of cash, cash equivalents, gift certificates, or other intangible property such as vacations, meals, lodging, tickets to theater or sporting events, stocks, bonds, and other securities. I need to file my 2012 federal taxes The award must meet the requirements for employee achievement awards discussed in chapter 2 of Publication 535, Business Expenses. I need to file my 2012 federal taxes Employee. I need to file my 2012 federal taxes   For this exclusion, treat the following individuals as employees. I need to file my 2012 federal taxes A current employee. I need to file my 2012 federal taxes A former common-law employee you maintain coverage for in consideration of or based on an agreement relating to prior service as an employee. I need to file my 2012 federal taxes A leased employee who has provided services to you on a substantially full-time basis for at least a year if the services are performed under your primary direction or control. I need to file my 2012 federal taxes Exception for S corporation shareholders. I need to file my 2012 federal taxes   Do not treat a 2% shareholder of an S corporation as an employee of the corporation for this purpose. I need to file my 2012 federal taxes A 2% shareholder is someone who directly or indirectly owns (at any time during the year) more than 2% of the corporation's stock or stock with more than 2% of the voting power. I need to file my 2012 federal taxes Treat a 2% shareholder as you would a partner in a partnership for fringe benefit purposes, but do not treat the benefit as a reduction in distributions to the 2% shareholder. I need to file my 2012 federal taxes Exclusion from wages. I need to file my 2012 federal taxes   You can generally exclude the value of achievement awards you give to an employee from the employee's wages if their cost is not more than the amount you can deduct as a business expense for the year. I need to file my 2012 federal taxes The excludable annual amount is $1,600 ($400 for awards that are not “qualified plan awards”). I need to file my 2012 federal taxes See chapter 2 of Publication 535 for more information about the limit on deductions for employee achievement awards. I need to file my 2012 federal taxes    To determine for 2014 whether an achievement award is a “qualified plan award” under the deduction rules described in Publication 535, treat any employee who received more than $115,000 in pay for 2013 as a highly compensated employee. I need to file my 2012 federal taxes   If the cost of awards given to an employee is more than your allowable deduction, include in the employee's wages the larger of the following amounts. I need to file my 2012 federal taxes The part of the cost that is more than your allowable deduction (up to the value of the awards). I need to file my 2012 federal taxes The amount by which the value of the awards exceeds your allowable deduction. I need to file my 2012 federal taxes Exclude the remaining value of the awards from the employee's wages. I need to file my 2012 federal taxes Adoption Assistance An adoption assistance program is a separate written plan of an employer that meets all of the following requirements. I need to file my 2012 federal taxes It benefits employees who qualify under rules set up by you, which do not favor highly compensated employees or their dependents. I need to file my 2012 federal taxes To determine whether your plan meets this test, do not consider employees excluded from your plan who are covered by a collective bargaining agreement, if there is evidence that adoption assistance was a subject of good-faith bargaining. I need to file my 2012 federal taxes It does not pay more than 5% of its payments during the year for shareholders or owners (or their spouses or dependents). I need to file my 2012 federal taxes A shareholder or owner is someone who owns (on any day of the year) more than 5% of the stock or of the capital or profits interest of your business. I need to file my 2012 federal taxes You give reasonable notice of the plan to eligible employees. I need to file my 2012 federal taxes Employees provide reasonable substantiation that payments or reimbursements are for qualifying expenses. I need to file my 2012 federal taxes For this exclusion, a highly compensated employee for 2014 is an employee who meets either of the following tests. I need to file my 2012 federal taxes The employee was a 5% owner at any time during the year or the preceding year. I need to file my 2012 federal taxes The employee received more than $115,000 in pay for the preceding year. I need to file my 2012 federal taxes You can choose to ignore test (2) if the employee was not also in the top 20% of employees when ranked by pay for the preceding year. I need to file my 2012 federal taxes You must exclude all payments or reimbursements you make under an adoption assistance program for an employee's qualified adoption expenses from the employee's wages subject to federal income tax withholding. I need to file my 2012 federal taxes However, you cannot exclude these payments from wages subject to social security, Medicare, and federal unemployment (FUTA) taxes. I need to file my 2012 federal taxes For more information, see the Instructions for Form 8839, Qualified Adoption Expenses. I need to file my 2012 federal taxes You must report all qualifying adoption expenses you paid or reimbursed under your adoption assistance program for each employee for the year in box 12 of the employee's Form W-2. I need to file my 2012 federal taxes Use code “T” to identify this amount. I need to file my 2012 federal taxes Exception for S corporation shareholders. I need to file my 2012 federal taxes   For this exclusion, do not treat a 2% shareholder of an S corporation as an employee of the corporation. I need to file my 2012 federal taxes A 2% shareholder is someone who directly or indirectly owns (at any time during the year) more than 2% of the corporation's stock or stock with more than 2% of the voting power. I need to file my 2012 federal taxes Treat a 2% shareholder as you would a partner in a partnership for fringe benefit purposes, including using the benefit as a reduction in distributions to the 2% shareholder. I need to file my 2012 federal taxes Athletic Facilities You can exclude the value of an employee's use of an on-premises gym or other athletic facility you operate from an employee's wages if substantially all use of the facility during the calendar year is by your employees, their spouses, and their dependent children. I need to file my 2012 federal taxes For this purpose, an employee's dependent child is a child or stepchild who is the employee's dependent or who, if both parents are deceased, has not attained the age of 25. I need to file my 2012 federal taxes On-premises facility. I need to file my 2012 federal taxes   The athletic facility must be located on premises you own or lease. I need to file my 2012 federal taxes It does not have to be located on your business premises. I need to file my 2012 federal taxes However, the exclusion does not apply to an athletic facility for residential use, such as athletic facilities that are part of a resort. I need to file my 2012 federal taxes Employee. I need to file my 2012 federal taxes   For this exclusion, treat the following individuals as employees. I need to file my 2012 federal taxes A current employee. I need to file my 2012 federal taxes A former employee who retired or left on disability. I need to file my 2012 federal taxes A widow or widower of an individual who died while an employee. I need to file my 2012 federal taxes A widow or widower of a former employee who retired or left on disability. I need to file my 2012 federal taxes A leased employee who has provided services to you on a substantially full-time basis for at least a year if the services are performed under your primary direction or control. I need to file my 2012 federal taxes A partner who performs services for a partnership. I need to file my 2012 federal taxes De Minimis (Minimal) Benefits You can exclude the value of a de minimis benefit you provide to an employee from the employee's wages. I need to file my 2012 federal taxes A de minimis benefit is any property or service you provide to an employee that has so little value (taking into account how frequently you provide similar benefits to your employees) that accounting for it would be unreasonable or administratively impracticable. I need to file my 2012 federal taxes Cash and cash equivalent fringe benefits (for example, use of gift card, charge card, or credit card), no matter how little, are never excludable as a de minimis benefit, except for occasional meal money or transportation fare. I need to file my 2012 federal taxes Examples of de minimis benefits include the following. I need to file my 2012 federal taxes Personal use of an employer-provided cell phone provided primarily for noncompensatory business purposes. I need to file my 2012 federal taxes See Employer-Provided Cell Phones , later in this section, for details. I need to file my 2012 federal taxes Occasional personal use of a company copying machine if you sufficiently control its use so that at least 85% of its use is for business purposes. I need to file my 2012 federal taxes Holiday gifts, other than cash, with a low fair market value. I need to file my 2012 federal taxes Group-term life insurance payable on the death of an employee's spouse or dependent if the face amount is not more than $2,000. I need to file my 2012 federal taxes Meals. I need to file my 2012 federal taxes See Meals , later in this section, for details. I need to file my 2012 federal taxes Occasional parties or picnics for employees and their guests. I need to file my 2012 federal taxes Occasional tickets for theater or sporting events. I need to file my 2012 federal taxes Transportation fare. I need to file my 2012 federal taxes See Transportation (Commuting) Benefits , later in this section, for details. I need to file my 2012 federal taxes Employee. I need to file my 2012 federal taxes   For this exclusion, treat any recipient of a de minimis benefit as an employee. I need to file my 2012 federal taxes Dependent Care Assistance This exclusion applies to household and dependent care services you directly or indirectly pay for or provide to an employee under a dependent care assistance program that covers only your employees. I need to file my 2012 federal taxes The services must be for a qualifying person's care and must be provided to allow the employee to work. I need to file my 2012 federal taxes These requirements are basically the same as the tests the employee would have to meet to claim the dependent care credit if the employee paid for the services. I need to file my 2012 federal taxes For more information, see Qualifying Person Test and Work-Related Expense Test in Publication 503, Child and Dependent Care Expenses. I need to file my 2012 federal taxes Employee. I need to file my 2012 federal taxes   For this exclusion, treat the following individuals as employees. I need to file my 2012 federal taxes A current employee. I need to file my 2012 federal taxes A leased employee who has provided services to you on a substantially full-time basis for at least a year if the services are performed under your primary direction or control. I need to file my 2012 federal taxes Yourself (if you are a sole proprietor). I need to file my 2012 federal taxes A partner who performs services for a partnership. I need to file my 2012 federal taxes Exclusion from wages. I need to file my 2012 federal taxes   You can exclude the value of benefits you provide to an employee under a dependent care assistance program from the employee's wages if you reasonably believe that the employee can exclude the benefits from gross income. I need to file my 2012 federal taxes   An employee can generally exclude from gross income up to $5,000 of benefits received under a dependent care assistance program each year. I need to file my 2012 federal taxes This limit is reduced to $2,500 for married employees filing separate returns. I need to file my 2012 federal taxes   However, the exclusion cannot be more than the smaller of the earned income of either the employee or employee's spouse. I need to file my 2012 federal taxes Special rules apply to determine the earned income of a spouse who is either a student or not able to care for himself or herself. I need to file my 2012 federal taxes For more information on the earned income limit, see Publication 503. I need to file my 2012 federal taxes Exception for highly compensated employees. I need to file my 2012 federal taxes   You cannot exclude dependent care assistance from the wages of a highly compensated employee unless the benefits provided under the program do not favor highly compensated employees and the program meets the requirements described in section 129(d) of the Internal Revenue Code. I need to file my 2012 federal taxes   For this exclusion, a highly compensated employee for 2014 is an employee who meets either of the following tests. I need to file my 2012 federal taxes The employee was a 5% owner at any time during the year or the preceding year. I need to file my 2012 federal taxes The employee received more than $115,000 in pay for the preceding year. I need to file my 2012 federal taxes You can choose to ignore test (2) if the employee was not also in the top 20% of employees when ranked by pay for the preceding year. I need to file my 2012 federal taxes Form W-2. I need to file my 2012 federal taxes   Report the value of all dependent care assistance you provide to an employee under a dependent care assistance program in box 10 of the employee's Form W-2. I need to file my 2012 federal taxes Include any amounts you cannot exclude from the employee's wages in boxes 1, 3, and 5. I need to file my 2012 federal taxes Report both the nontaxable portion of assistance (up to $5,000) and any assistance above the amount that is non-taxable to the employee. I need to file my 2012 federal taxes Example. I need to file my 2012 federal taxes   Company A provides a dependent care assistance flexible spending arrangement to its employees through a cafeteria plan. I need to file my 2012 federal taxes In addition, it provides occasional on-site dependent care to its employees at no cost. I need to file my 2012 federal taxes Emily, an employee of company A, had $4,500 deducted from her pay for the dependent care flexible spending arrangement. I need to file my 2012 federal taxes In addition, Emily used the on-site dependent care several times. I need to file my 2012 federal taxes The fair market value of the on-site care was $700. I need to file my 2012 federal taxes Emily's Form W-2 should report $5,200 of dependent care assistance in box 10 ($4,500 flexible spending arrangement plus $700 on-site dependent care). I need to file my 2012 federal taxes Boxes 1, 3, and 5 should include $200 (the amount in excess of the nontaxable assistance), and applicable taxes should be withheld on that amount. I need to file my 2012 federal taxes Educational Assistance This exclusion applies to educational assistance you provide to employees under an educational assistance program. I need to file my 2012 federal taxes The exclusion also applies to graduate level courses. I need to file my 2012 federal taxes Educational assistance means amounts you pay or incur for your employees' education expenses. I need to file my 2012 federal taxes These expenses generally include the cost of books, equipment, fees, supplies, and tuition. I need to file my 2012 federal taxes However, these expenses do not include the cost of a course or other education involving sports, games, or hobbies, unless the education: Has a reasonable relationship to your business, or Is required as part of a degree program. I need to file my 2012 federal taxes Education expenses do not include the cost of tools or supplies (other than textbooks) your employee is allowed to keep at the end of the course. I need to file my 2012 federal taxes Nor do they include the cost of lodging, meals, or transportation. I need to file my 2012 federal taxes Educational assistance program. I need to file my 2012 federal taxes   An educational assistance program is a separate written plan that provides educational assistance only to your employees. I need to file my 2012 federal taxes The program qualifies only if all of the following tests are met. I need to file my 2012 federal taxes The program benefits employees who qualify under rules set up by you that do not favor highly compensated employees. I need to file my 2012 federal taxes To determine whether your program meets this test, do not consider employees excluded from your program who are covered by a collective bargaining agreement if there is evidence that educational assistance was a subject of good-faith bargaining. I need to file my 2012 federal taxes The program does not provide more than 5% of its benefits during the year for shareholders or owners. I need to file my 2012 federal taxes A shareholder or owner is someone who owns (on any day of the year) more than 5% of the stock or of the capital or profits interest of your business. I need to file my 2012 federal taxes The program does not allow employees to choose to receive cash or other benefits that must be included in gross income instead of educational assistance. I need to file my 2012 federal taxes You give reasonable notice of the program to eligible employees. I need to file my 2012 federal taxes Your program can cover former employees if their employment is the reason for the coverage. I need to file my 2012 federal taxes   For this exclusion, a highly compensated employee for 2014 is an employee who meets either of the following tests. I need to file my 2012 federal taxes The employee was a 5% owner at any time during the year or the preceding year. I need to file my 2012 federal taxes The employee received more than $115,000 in pay for the preceding year. I need to file my 2012 federal taxes You can choose to ignore test (2) if the employee was not also in the top 20% of employees when ranked by pay for the preceding year. I need to file my 2012 federal taxes Employee. I need to file my 2012 federal taxes   For this exclusion, treat the following individuals as employees. I need to file my 2012 federal taxes A current employee. I need to file my 2012 federal taxes A former employee who retired, left on disability, or was laid off. I need to file my 2012 federal taxes A leased employee who has provided services to you on a substantially full-time basis for at least a year if the services are performed under your primary direction or control. I need to file my 2012 federal taxes Yourself (if you are a sole proprietor). I need to file my 2012 federal taxes A partner who performs services for a partnership. I need to file my 2012 federal taxes Exclusion from wages. I need to file my 2012 federal taxes   You can exclude up to $5,250 of educational assistance you provide to an employee under an educational assistance program from the employee's wages each year. I need to file my 2012 federal taxes Assistance over $5,250. I need to file my 2012 federal taxes   If you do not have an educational assistance plan, or you provide an employee with assistance exceeding $5,250, you must include the value of these benefits as wages, unless the benefits are working condition benefits. I need to file my 2012 federal taxes Working condition benefits may be excluded from wages. I need to file my 2012 federal taxes Property or a service provided is a working condition benefit to the extent that if the employee paid for it, the amount paid would have been deductible as a business or depreciation expense. I need to file my 2012 federal taxes See Working Condition Benefits , later, in this section. I need to file my 2012 federal taxes Employee Discounts This exclusion applies to a price reduction you give an employee on property or services you offer to customers in the ordinary course of the line of business in which the employee performs substantial services. I need to file my 2012 federal taxes However, it does not apply to discounts on real property or discounts on personal property of a kind commonly held for investment (such as stocks or bonds). I need to file my 2012 federal taxes Employee. I need to file my 2012 federal taxes   For this exclusion, treat the following individuals as employees. I need to file my 2012 federal taxes A current employee. I need to file my 2012 federal taxes A former employee who retired or left on disability. I need to file my 2012 federal taxes A widow or widower of an individual who died while an employee. I need to file my 2012 federal taxes A widow or widower of an employee who retired or left on disability. I need to file my 2012 federal taxes A leased employee who has provided services to you on a substantially full-time basis for at least a year if the services are performed under your primary direction or control. I need to file my 2012 federal taxes A partner who performs services for a partnership. I need to file my 2012 federal taxes Exclusion from wages. I need to file my 2012 federal taxes   You can generally exclude the value of an employee discount you provide an employee from the employee's wages, up to the following limits. I need to file my 2012 federal taxes For a discount on services, 20% of the price you charge nonemployee customers for the service. I need to file my 2012 federal taxes For a discount on merchandise or other property, your gross profit percentage times the price you charge nonemployee customers for the property. I need to file my 2012 federal taxes   Determine your gross profit percentage in the line of business based on all property you offer to customers (including employee customers) and your experience during the tax year immediately before the tax year in which the discount is available. I need to file my 2012 federal taxes To figure your gross profit percentage, subtract the total cost of the property from the total sales price of the property and divide the result by the total sales price of the property. I need to file my 2012 federal taxes Exception for highly compensated employees. I need to file my 2012 federal taxes   You cannot exclude from the wages of a highly compensated employee any part of the value of a discount that is not available on the same terms to one of the following groups. I need to file my 2012 federal taxes All of your employees. I need to file my 2012 federal taxes A group of employees defined under a reasonable classification you set up that does not favor highly compensated employees. I need to file my 2012 federal taxes   For this exclusion, a highly compensated employee for 2014 is an employee who meets either of the following tests. I need to file my 2012 federal taxes The employee was a 5% owner at any time during the year or the preceding year. I need to file my 2012 federal taxes The employee received more than $115,000 in pay for the preceding year. I need to file my 2012 federal taxes You can choose to ignore test (2) if the employee was not also in the top 20% of employees when ranked by pay for the preceding year. I need to file my 2012 federal taxes Employee Stock Options There are three kinds of stock options—incentive stock options, employee stock purchase plan options, and nonstatutory (nonqualified) stock options. I need to file my 2012 federal taxes Wages for social security, Medicare, and federal unemployment (FUTA) taxes do not include remuneration resulting from the exercise, after October 22, 2004, of an incentive stock option or under an employee stock purchase plan option, or from any disposition of stock acquired by exercising such an option. I need to file my 2012 federal taxes The IRS will not apply these taxes to an exercise before October 23, 2004, of an incentive stock option or an employee stock purchase plan option or to a disposition of stock acquired by such exercise. I need to file my 2012 federal taxes Additionally, federal income tax withholding is not required on the income resulting from a disqualifying disposition of stock acquired by the exercise after October 22, 2004, of an incentive stock option or under an employee stock purchase plan option, or on income equal to the discount portion of stock acquired by the exercise, after October 22, 2004, of an employee stock purchase plan option resulting from any disposition of the stock. I need to file my 2012 federal taxes The IRS will not apply federal income tax withholding upon the disposition of stock acquired by the exercise, before October 23, 2004, of an incentive stock option or an employee stock purchase plan option. I need to file my 2012 federal taxes However, the employer must report as income in box 1 of Form W-2, (a) the discount portion of stock acquired by the exercise of an employee stock purchase plan option upon disposition of the stock, and (b) the spread (between the exercise price and the fair market value of the stock at the time of exercise) upon a disqualifying disposition of stock acquired by the exercise of an incentive stock option or an employee stock purchase plan option. I need to file my 2012 federal taxes An employer must report the excess of the fair market value of stock received upon exercise of a nonstatutory stock option over the amount paid for the stock option on Form W-2 in boxes 1, 3 (up to the social security wage base), 5, and in box 12 using the code “V. I need to file my 2012 federal taxes ” See Regulations section 1. I need to file my 2012 federal taxes 83-7. I need to file my 2012 federal taxes An employee who transfers his or her interest in nonstatutory stock options to the employee's former spouse incident to a divorce is not required to include an amount in gross income upon the transfer. I need to file my 2012 federal taxes The former spouse, rather than the employee, is required to include an amount in gross income when the former spouse exercises the stock options. I need to file my 2012 federal taxes See Revenue Ruling 2002-22 and Revenue Ruling 2004-60 for details. I need to file my 2012 federal taxes You can find Revenue Ruling 2002-22 on page 849 of Internal Revenue Bulletin 2002-19 at www. I need to file my 2012 federal taxes irs. I need to file my 2012 federal taxes gov/pub/irs-irbs/irb02-19. I need to file my 2012 federal taxes pdf. I need to file my 2012 federal taxes See Revenue Ruling 2004-60, 2004-24 I. I need to file my 2012 federal taxes R. I need to file my 2012 federal taxes B. I need to file my 2012 federal taxes 1051, available at www. I need to file my 2012 federal taxes irs. I need to file my 2012 federal taxes gov/irb/2004-24_IRB/ar13. I need to file my 2012 federal taxes html. I need to file my 2012 federal taxes For more information about employee stock options, see sections 421, 422, and 423 of the Internal Revenue Code and their related regulations. I need to file my 2012 federal taxes Employer-Provided Cell Phones The value of an employer-provided cell phone, provided primarily for noncompensatory business reasons, is excludable from an employee's income as a working condition fringe benefit. I need to file my 2012 federal taxes Personal use of an employer-provided cell phone, provided primarily for noncompensatory business reasons, is excludable from an employee's income as a de minimis fringe benefit. I need to file my 2012 federal taxes For the rules relating to these types of benefits, see De Minimis (Minimal) Benefits , earlier in this section, and Working Condition Benefits , later in this section. I need to file my 2012 federal taxes Noncompensatory business purposes. I need to file my 2012 federal taxes   You provide a cell phone primarily for noncompensatory business purposes if there are substantial business reasons for providing the cell phone. I need to file my 2012 federal taxes Examples of substantial business reasons include the employer's: Need to contact the employee at all times for work-related emergencies, Requirement that the employee be available to speak with clients at times when the employee is away from the office, and Need to speak with clients located in other time zones at times outside the employee's normal workday. I need to file my 2012 federal taxes Cell phones provided to promote goodwill, boost morale, or attract prospective employees. I need to file my 2012 federal taxes   You cannot exclude from an employee's wages the value of a cell phone provided to promote goodwill of an employee, to attract a prospective employee, or as a means of providing additional compensation to an employee. I need to file my 2012 federal taxes Additional information. I need to file my 2012 federal taxes   For additional information on the tax treatment of employer-provided cell phones, see Notice 2011-72, 2011-38 I. I need to file my 2012 federal taxes R. I need to file my 2012 federal taxes B. I need to file my 2012 federal taxes 407, available at  www. I need to file my 2012 federal taxes irs. I need to file my 2012 federal taxes gov/irb/2011-38_IRB/ar07. I need to file my 2012 federal taxes html. I need to file my 2012 federal taxes Group-Term Life Insurance Coverage This exclusion applies to life insurance coverage that meets all the following conditions. I need to file my 2012 federal taxes It provides a general death benefit that is not included in income. I need to file my 2012 federal taxes You provide it to a group of employees. I need to file my 2012 federal taxes See The 10-employee rule , later. I need to file my 2012 federal taxes It provides an amount of insurance to each employee based on a formula that prevents individual selection. I need to file my 2012 federal taxes This formula must use factors such as the employee's age, years of service, pay, or position. I need to file my 2012 federal taxes You provide it under a policy you directly or indirectly carry. I need to file my 2012 federal taxes Even if you do not pay any of the policy's cost, you are considered to carry it if you arrange for payment of its cost by your employees and charge at least one employee less than, and at least one other employee more than, the cost of his or her insurance. I need to file my 2012 federal taxes Determine the cost of the insurance, for this purpose, as explained under Coverage over the limit , later. I need to file my 2012 federal taxes Group-term life insurance does not include the following insurance. I need to file my 2012 federal taxes Insurance that does not provide general death benefits, such as travel insurance or a policy providing only accidental death benefits. I need to file my 2012 federal taxes Life insurance on the life of your employee's spouse or dependent. I need to file my 2012 federal taxes However, you may be able to exclude the cost of this insurance from the employee's wages as a de minimis benefit. I need to file my 2012 federal taxes See De Minimis (Minimal) Benefits , earlier in this section. I need to file my 2012 federal taxes Insurance provided under a policy that provides a permanent benefit (an economic value that extends beyond 1 policy year, such as paid-up or cash surrender value), unless certain requirements are met. I need to file my 2012 federal taxes See Regulations section 1. I need to file my 2012 federal taxes 79-1 for details. I need to file my 2012 federal taxes Employee. I need to file my 2012 federal taxes   For this exclusion, treat the following individuals as employees. I need to file my 2012 federal taxes A current common-law employee. I need to file my 2012 federal taxes A full-time life insurance agent who is a current statutory employee. I need to file my 2012 federal taxes An individual who was formerly your employee under (1) or (2). I need to file my 2012 federal taxes A leased employee who has provided services to you on a substantially full-time basis for at least a year if the services are performed under your primary direction and control. I need to file my 2012 federal taxes Exception for S corporation shareholders. I need to file my 2012 federal taxes   Do not treat a 2% shareholder of an S corporation as an employee of the corporation for this purpose. I need to file my 2012 federal taxes A 2% shareholder is someone who directly or indirectly owns (at any time during the year) more than 2% of the corporation's stock or stock with more than 2% of the voting power. I need to file my 2012 federal taxes Treat a 2% shareholder as you would a partner in a partnership for fringe benefit purposes, but do not treat the benefit as a reduction in distributions to the 2% shareholder. I need to file my 2012 federal taxes The 10-employee rule. I need to file my 2012 federal taxes   Generally, life insurance is not group-term life insurance unless you provide it to at least 10 full-time employees at some time during the year. I need to file my 2012 federal taxes   For this rule, count employees who choose not to receive the insurance unless, to receive it, they must contribute to the cost of benefits other than the group-term life insurance. I need to file my 2012 federal taxes For example, count an employee who could receive insurance by paying part of the cost, even if that employee chooses not to receive it. I need to file my 2012 federal taxes However, do not count an employee who must pay part or all of the cost of permanent benefits to get insurance, unless that employee chooses to receive it. I need to file my 2012 federal taxes A permanent benefit is an economic value extending beyond one policy year (for example, a paid-up or cash-surrender value) that is provided under a life insurance policy. I need to file my 2012 federal taxes Exceptions. I need to file my 2012 federal taxes   Even if you do not meet the 10-employee rule, two exceptions allow you to treat insurance as group-term life insurance. I need to file my 2012 federal taxes   Under the first exception, you do not have to meet the 10-employee rule if all the following conditions are met. I need to file my 2012 federal taxes If evidence that the employee is insurable is required, it is limited to a medical questionnaire (completed by the employee) that does not require a physical. I need to file my 2012 federal taxes You provide the insurance to all your full-time employees or, if the insurer requires the evidence mentioned in (1), to all full-time employees who provide evidence the insurer accepts. I need to file my 2012 federal taxes You figure the coverage based on either a uniform percentage of pay or the insurer's coverage brackets that meet certain requirements. I need to file my 2012 federal taxes See Regulations section 1. I need to file my 2012 federal taxes 79-1 for details. I need to file my 2012 federal taxes   Under the second exception, you do not have to meet the 10-employee rule if all the following conditions are met. I need to file my 2012 federal taxes You provide the insurance under a common plan covering your employees and the employees of at least one other employer who is not related to you. I need to file my 2012 federal taxes The insurance is restricted to, but mandatory for, all your employees who belong to, or are represented by, an organization (such as a union) that carries on substantial activities besides obtaining insurance. I need to file my 2012 federal taxes Evidence of whether an employee is insurable does not affect an employee's eligibility for insurance or the amount of insurance that employee gets. I need to file my 2012 federal taxes   To apply either exception, do not consider employees who were denied insurance for any of the following reasons. I need to file my 2012 federal taxes They were 65 or older. I need to file my 2012 federal taxes They customarily work 20 hours or less a week or 5 months or less in a calendar year. I need to file my 2012 federal taxes They have not been employed for the waiting period given in the policy. I need to file my 2012 federal taxes This waiting period cannot be more than 6 months. I need to file my 2012 federal taxes Exclusion from wages. I need to file my 2012 federal taxes   You can generally exclude the cost of up to $50,000 of group-term life insurance from the wages of an insured employee. I need to file my 2012 federal taxes You can exclude the same amount from the employee's wages when figuring social security and Medicare taxes. I need to file my 2012 federal taxes In addition, you do not have to withhold federal income tax or pay FUTA tax on any group-term life insurance you provide to an employee. I need to file my 2012 federal taxes Coverage over the limit. I need to file my 2012 federal taxes   You must include in your employee's wages the cost of group-term life insurance beyond $50,000 worth of coverage, reduced by the amount the employee paid toward the insurance. I need to file my 2012 federal taxes Report it as wages in boxes 1, 3, and 5 of the employee's Form W-2. I need to file my 2012 federal taxes Also, show it in box 12 with code “C. I need to file my 2012 federal taxes ” The amount is subject to social security and Medicare taxes, and you may, at your option, withhold federal income tax. I need to file my 2012 federal taxes   Figure the monthly cost of the insurance to include in the employee's wages by multiplying the number of thousands of dollars of all insurance coverage over $50,000 (figured to the nearest $100) by the cost shown in Table 2-2. I need to file my 2012 federal taxes For all coverage provided within the calendar year, use the employee's age on the last day of the employee's tax year. I need to file my 2012 federal taxes You must prorate the cost from the table if less than a full month of coverage is involved. I need to file my 2012 federal taxes Table 2-2. I need to file my 2012 federal taxes Cost Per $1,000 of Protection For 1 Month Age Cost Under 25 $ . I need to file my 2012 federal taxes 05 25 through 29 . I need to file my 2012 federal taxes 06 30 through 34 . I need to file my 2012 federal taxes 08 35 through 39 . I need to file my 2012 federal taxes 09 40 through 44 . I need to file my 2012 federal taxes 10 45 through 49 . I need to file my 2012 federal taxes 15 50 through 54 . I need to file my 2012 federal taxes 23 55 through 59 . I need to file my 2012 federal taxes 43 60 through 64 . I need to file my 2012 federal taxes 66 65 through 69 1. I need to file my 2012 federal taxes 27 70 and older 2. I need to file my 2012 federal taxes 06 You figure the total cost to include in the employee's wages by multiplying the monthly cost by the number of full months' coverage at that cost. I need to file my 2012 federal taxes Example. I need to file my 2012 federal taxes Tom's employer provides him with group-term life insurance coverage of $200,000. I need to file my 2012 federal taxes Tom is 45 years old, is not a key employee, and pays $100 per year toward the cost of the insurance. I need to file my 2012 federal taxes Tom's employer must include $170 in his wages. I need to file my 2012 federal taxes The $200,000 of insurance coverage is reduced by $50,000. I need to file my 2012 federal taxes The yearly cost of $150,000 of coverage is $270 ($. I need to file my 2012 federal taxes 15 x 150 x 12), and is reduced by the $100 Tom pays for the insurance. I need to file my 2012 federal taxes The employer includes $170 in boxes 1, 3, and 5 of Tom's Form W-2. I need to file my 2012 federal taxes The employer also enters $170 in box 12 with code “C. I need to file my 2012 federal taxes ” Coverage for dependents. I need to file my 2012 federal taxes   Group-term life insurance coverage paid by the employer for the spouse or dependents of an employee may be excludable from income as a de minimis fringe benefit if the face amount is not more than $2,000. I need to file my 2012 federal taxes If the face amount is greater than $2,000, the entire cost of the dependent coverage must be included in income unless the amount over $2,000 is purchased with employee contributions on an after-tax basis. I need to file my 2012 federal taxes The cost of the insurance is determined by using Table 2-2. I need to file my 2012 federal taxes Former employees. I need to file my 2012 federal taxes   When group-term life insurance over $50,000 is provided to an employee (including retirees) after his or her termination, the employee share of social security and Medicare taxes on that period of coverage is paid by the former employee with his or her tax return and is not collected by the employer. I need to file my 2012 federal taxes You are not required to collect those taxes. I need to file my 2012 federal taxes Use the table above to determine the amount of social security and Medicare taxes owed by the former employee for coverage provided after separation from service. I need to file my 2012 federal taxes Report those uncollected amounts separately in box 12 of Form W-2 using codes “M” and “N. I need to file my 2012 federal taxes ” See the General Instructions for Forms W-2 and W-3 and the Instructions for Form 941. I need to file my 2012 federal taxes Exception for key employees. I need to file my 2012 federal taxes   Generally, if your group-term life insurance plan favors key employees as to participation or benefits, you must include the entire cost of the insurance in your key employees' wages. I need to file my 2012 federal taxes This exception generally does not apply to church plans. I need to file my 2012 federal taxes When figuring social security and Medicare taxes, you must also include the entire cost in the employees' wages. I need to file my 2012 federal taxes Include the cost in boxes 1, 3, and 5 of Form W-2. I need to file my 2012 federal taxes However, you do not have to withhold federal income tax or pay FUTA tax on the cost of any group-term life insurance you provide to an employee. I need to file my 2012 federal taxes   For this purpose, the cost of the insurance is the greater of the following amounts. I need to file my 2012 federal taxes The premiums you pay for the employee's insurance. I need to file my 2012 federal taxes See Regulations section 1. I need to file my 2012 federal taxes 79-4T(Q&A 6) for more information. I need to file my 2012 federal taxes The cost you figure using Table 2-2. I need to file my 2012 federal taxes   For this exclusion, a key employee during 2014 is an employee or former employee who is one of the following individuals. I need to file my 2012 federal taxes See section 416(i) of the Internal Revenue Code for more information. I need to file my 2012 federal taxes An officer having annual pay of more than $170,000. I need to file my 2012 federal taxes An individual who for 2014 was either of the following. I need to file my 2012 federal taxes A 5% owner of your business. I need to file my 2012 federal taxes A 1% owner of your business whose annual pay was more than $150,000. I need to file my 2012 federal taxes   A former employee who was a key employee upon retirement or separation from service is also a key employee. I need to file my 2012 federal taxes   Your plan does not favor key employees as to participation if at least one of the following is true. I need to file my 2012 federal taxes It benefits at least 70% of your employees. I need to file my 2012 federal taxes At least 85% of the participating employees are not key employees. I need to file my 2012 federal taxes It benefits employees who qualify under a set of rules you set up that do not favor key employees. I need to file my 2012 federal taxes   Your plan meets this participation test if it is part of a cafeteria plan (discussed in section 1) and it meets the participation test for those plans. I need to file my 2012 federal taxes   When applying this test, do not consider employees who: Have not completed 3 years of service, Are part-time or seasonal, Are nonresident aliens who receive no U. I need to file my 2012 federal taxes S. I need to file my 2012 federal taxes source earned income from you, or Are not included in the plan but are in a unit of employees covered by a collective bargaining agreement, if the benefits provided under the plan were the subject of good-faith bargaining between you and employee representatives. I need to file my 2012 federal taxes   Your plan does not favor key employees as to benefits if all benefits available to participating key employees are also available to all other participating employees. I need to file my 2012 federal taxes Your plan does not favor key employees just because the amount of insurance you provide to your employees is uniformly related to their pay. I need to file my 2012 federal taxes S corporation shareholders. I need to file my 2012 federal taxes   Because you cannot treat a 2% shareholder of an S corporation as an employee for this exclusion, you must include the cost of all group-term life insurance coverage you provide the 2% shareholder in his or her wages. I need to file my 2012 federal taxes When figuring social security and Medicare taxes, you must also include the cost of this coverage in the 2% shareholder's wages. I need to file my 2012 federal taxes Include the cost in boxes 1, 3, and 5 of Form W-2. I need to file my 2012 federal taxes However, you do not have to withhold federal income tax or pay federal unemployment tax on the cost of any group-term life insurance coverage you provide to the 2% shareholder. I need to file my 2012 federal taxes Health Savings Accounts A Health Savings Account (HSA) is an account owned by a qualified individual who is generally your employee or former employee. I need to file my 2012 federal taxes Any contributions that you make to an HSA become the employee's property and cannot be withdrawn by you. I need to file my 2012 federal taxes Contributions to the account are used to pay current or future medical expenses of the account owner, his or her spouse, and any qualified dependent. I need to file my 2012 federal taxes The medical expenses must not be reimbursable by insurance or other sources and their payment from HSA funds (distribution) will not give rise to a medical expense deduction on the individual's federal income tax return. I need to file my 2012 federal taxes For more information about HSAs, visit the Department of Treasury's website at www. I need to file my 2012 federal taxes treasury. I need to file my 2012 federal taxes gov and enter “HSA” in the search box. I need to file my 2012 federal taxes Eligibility. I need to file my 2012 federal taxes   A qualified individual must be covered by a High Deductible Health Plan (HDHP) and not be covered by other health insurance except for permitted insurance listed under section 223(c)(3) or insurance for accidents, disability, dental care, vision care, or long-term care. I need to file my 2012 federal taxes For calendar year 2014, a qualifying HDHP must have a deductible of at least $1,250 for self-only coverage or $2,500 for family coverage and must limit annual out-of-pocket expenses of the beneficiary to $6,350 for self-only coverage and $12,700 for family coverage. I need to file my 2012 federal taxes   There are no income limits that restrict an individual's eligibility to contribute to an HSA nor is there a requirement that the account owner have earned income to make a contribution. I need to file my 2012 federal taxes Exceptions. I need to file my 2012 federal taxes   An individual is not a qualified individual if he or she can be claimed as a dependent on another person's tax return. I need to file my 2012 federal taxes Also, an employee's participation in a health flexible spending arrangement (FSA) or health reimbursement arrangement (HRA) generally disqualifies the individual (and employer) from making contributions to his or her HSA. I need to file my 2012 federal taxes However, an individual may qualify to participate in an HSA if he or she is participating in only a limited-purpose FSA or HRA or a post-deductible FSA. I need to file my 2012 federal taxes For more information, see Other employee health plans in Publication 969. I need to file my 2012 federal taxes Employer contributions. I need to file my 2012 federal taxes   Up to specified dollar limits, cash contributions to the HSA of a qualified individual (determined monthly) are exempt from federal income tax withholding, social security tax, Medicare tax, and FUTA tax. I need to file my 2012 federal taxes For 2014, you can contribute up to $3,300 for self-only coverage or $6,550 for family coverage to a qualified individual's HSA. I need to file my 2012 federal taxes   The contribution amounts listed above are increased by $1,000 for a qualified individual who is age 55 or older at any time during the year. I need to file my 2012 federal taxes For two qualified individuals who are married to each other and who each are age 55 or older at any time during the year, each spouse's contribution limit is increased by $1,000 provided each spouse has a separate HSA. I need to file my 2012 federal taxes No contributions can be made to an individual's HSA after he or she becomes enrolled in Medicare Part A or Part B. I need to file my 2012 federal taxes Nondiscrimination rules. I need to file my 2012 federal taxes    Your contribution amount to an employee's HSA must be comparable for all employees who have comparable coverage during the same period. I need to file my 2012 federal taxes Otherwise, there will be an excise tax equal to 35% of the amount you contributed to all employees' HSAs. I need to file my 2012 federal taxes   For guidance on employer comparable contributions to HSAs under section 4980G in instances where an employee has not established an HSA by December 31 and in instances where an employer accelerates contributions for the calendar year for employees who have incurred qualified medical expenses, see Regulations section 54. I need to file my 2012 federal taxes 4980G-4. I need to file my 2012 federal taxes Exception. I need to file my 2012 federal taxes   The Tax Relief and Health Care Act of 2006 allows employers to make larger HSA contributions for a nonhighly compensated employee than for a highly compensated employee. I need to file my 2012 federal taxes A highly compensated employee for 2014 is an employee who meets either of the following tests. I need to file my 2012 federal taxes The employee was a 5% owner at any time during the year or the preceding year. I need to file my 2012 federal taxes The employee received more than $115,000 in pay for the preceding year. I need to file my 2012 federal taxes You can choose to ignore test (2) if the employee was not also in the top 20% of employees when ranked by pay for the preceding year. I need to file my 2012 federal taxes Partnerships and S corporations. I need to file my 2012 federal taxes   Partners and 2% shareholders of an S corporation are not eligible for salary reduction (pre-tax) contributions to an HSA. I need to file my 2012 federal taxes Employer contributions to the HSA of a bona fide partner or 2% shareholder are treated as distributions or guaranteed payments as determined by the facts and circumstances. I need to file my 2012 federal taxes Cafeteria plans. I need to file my 2012 federal taxes   You may contribute to an employee's HSA using a cafeteria plan and your contributions are not subject to the statutory comparability rules. I need to file my 2012 federal taxes However, cafeteria plan nondiscrimination rules still apply. I need to file my 2012 federal taxes For example, contributions under a cafeteria plan to employee HSAs cannot be greater for higher-paid employees than they are for lower-paid employees. I need to file my 2012 federal taxes Contributions that favor lower-paid employees are not prohibited. I need to file my 2012 federal taxes Reporting requirements. I need to file my 2012 federal taxes   You must report your contributions to an employee's HSA in box 12 of Form W-2 using code “W. I need to file my 2012 federal taxes ” The trustee or custodian of the HSA, generally a bank or insurance company, reports distributions from the HSA using Form 1099-SA, Distributions From an HSA, Archer MSA, or Medicare Advantage MSA. I need to file my 2012 federal taxes Lodging on Your Business Premises You can exclude the value of lodging you furnish to an employee from the employee's wages if it meets the following tests. I need to file my 2012 federal taxes It is furnished on your business premises. I need to file my 2012 federal taxes It is furnished for your convenience. I need to file my 2012 federal taxes The employee must accept it as a condition of employment. I need to file my 2012 federal taxes Different tests may apply to lodging furnished by educational institutions. I need to file my 2012 federal taxes See section 119(d) of the Internal Revenue Code for details. I need to file my 2012 federal taxes The exclusion does not apply if you allow your employee to choose to receive additional pay instead of lodging. I need to file my 2012 federal taxes On your business premises. I need to file my 2012 federal taxes   For this exclusion, your business premises is generally your employee's place of work. I need to file my 2012 federal taxes For special rules that apply to lodging furnished in a camp located in a foreign country, see section 119(c) of the Internal Revenue Code and its regulations. I need to file my 2012 federal taxes For your convenience. I need to file my 2012 federal taxes   Whether or not you furnish lodging for your convenience as an employer depends on all the facts and circumstances. I need to file my 2012 federal taxes You furnish the lodging to your employee for your convenience if you do this for a substantial business reason other than to provide the employee with additional pay. I need to file my 2012 federal taxes This is true even if a law or an employment contract provides that the lodging is furnished as pay. I need to file my 2012 federal taxes However, a written statement that the lodging is furnished for your convenience is not sufficient. I need to file my 2012 federal taxes Condition of employment. I need to file my 2012 federal taxes   Lodging meets this test if you require your employees to accept the lodging because they need to live on your business premises to be able to properly perform their duties. I need to file my 2012 federal taxes Examples include employees who must be available at all times and employees who could not perform their required duties without being furnished the lodging. I need to file my 2012 federal taxes   It does not matter whether you must furnish the lodging as pay under the terms of an employment contract or a law fixing the terms of employment. I need to file my 2012 federal taxes Example. I need to file my 2012 federal taxes A hospital gives Joan, an employee of the hospital, the choice of living at the hospital free of charge or living elsewhere and receiving a cash allowance in addition to her regular salary. I need to file my 2012 federal taxes If Joan chooses to live at the hospital, the hospital cannot exclude the value of the lodging from her wages because she is not required to live at the hospital to properly perform the duties of her employment. I need to file my 2012 federal taxes S corporation shareholders. I need to file my 2012 federal taxes   For this exclusion, do not treat a 2% shareholder of an S corporation as an employee of the corporation. I need to file my 2012 federal taxes A 2% shareholder is someone who directly or indirectly owns (at any time during the year) more than 2% of the corporation's stock or stock with more than 2% of the voting power. I need to file my 2012 federal taxes Treat a 2% shareholder as you would a partner in a partnership for fringe benefit purposes, but do not treat the benefit as a reduction in distributions to the 2% shareholder. I need to file my 2012 federal taxes Meals This section discusses the exclusion rules that apply to de minimis meals and meals on your business premises. I need to file my 2012 federal taxes De Minimis Meals You can exclude any occasional meal or meal money you provide to an employee if it has so little value (taking into account how frequently you provide meals to your employees) that accounting for it would be unreasonable or administratively impracticable. I need to file my 2012 federal taxes The exclusion applies, for example, to the following items. I need to file my 2012 federal taxes Coffee, doughnuts, or soft drinks. I need to file my 2012 federal taxes Occasional meals or meal money provided to enable an employee to work overtime. I need to file my 2012 federal taxes However, the exclusion does not apply to meal money figured on the basis of hours worked. I need to file my 2012 federal taxes Occasional parties or picnics for employees and their guests. I need to file my 2012 federal taxes This exclusion also applies to meals you provide at an employer-operated eating facility for employees if the annual revenue from the facility equals or exceeds the direct costs of the facility. I need to file my 2012 federal taxes For this purpose, your revenue from providing a meal is considered equal to the facility's direct operating costs to provide that meal if its value can be excluded from an employee's wages as explained under Meals on Your Business Premises , later. I need to file my 2012 federal taxes If food or beverages you furnish to employees qualify as a de minimis benefit, you can deduct their full cost. I need to file my 2012 federal taxes The 50% limit on deductions for the cost of meals does not apply. I need to file my 2012 federal taxes The deduction limit on meals is discussed in chapter 2 of Publication 535. I need to file my 2012 federal taxes Employee. I need to file my 2012 federal taxes   For this exclusion, treat any recipient of a de minimis meal as