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Irs Amendments

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Irs Amendments

Irs amendments Publication 525 - Main Content Table of Contents Employee CompensationBabysitting. Irs amendments Miscellaneous Compensation Fringe Benefits Retirement Plan Contributions Stock Options Restricted Property Special Rules for Certain EmployeesClergy Members of Religious Orders Foreign Employer Military Volunteers Business and Investment IncomeRents From Personal Property Royalties Partnership Income S Corporation Income Sickness and Injury BenefitsDisability Pensions Long-Term Care Insurance Contracts Workers' Compensation Other Sickness and Injury Benefits Miscellaneous IncomeBartering Canceled Debts Host or Hostess Life Insurance Proceeds Recoveries Survivor Benefits Unemployment Benefits Welfare and Other Public Assistance Benefits Other Income RepaymentsMethod 1. Irs amendments Method 2. Irs amendments How To Get Tax HelpLow Income Taxpayer Clinics Employee Compensation In most cases, you must include in gross income everything you receive in payment for personal services. Irs amendments In addition to wages, salaries, commissions, fees, and tips, this includes other forms of compensation such as fringe benefits and stock options. Irs amendments You should receive a Form W-2 from your employer or former employer showing the pay you received for your services. Irs amendments Include all your pay on line 7 of Form 1040 or Form 1040A or on line 1 of Form 1040EZ, even if you do not receive Form W-2, or you receive a Form W-2 that does not include all pay that should be included on the Form W-2. Irs amendments If you performed services, other than as an independent contractor, and your employer did not withhold social security and Medicare taxes from your pay, you must file Form 8919, Uncollected Social Security and Medicare Tax on Wages, with your Form 1040. Irs amendments These wages must be included on line 7 of Form 1040. Irs amendments See Form 8919 for more information. Irs amendments Childcare providers. Irs amendments   If you provide childcare, either in the child's home or in your home or other place of business, the pay you receive must be included in your income. Irs amendments If you are not an employee, you are probably self-employed and must include payments for your services on Schedule C (Form 1040), Profit or Loss From Business, or Schedule C-EZ (Form 1040), Net Profit From Business. Irs amendments You generally are not an employee unless you are subject to the will and control of the person who employs you as to what you are to do and how you are to do it. Irs amendments Babysitting. Irs amendments   If you babysit for relatives or neighborhood children, whether on a regular basis or only periodically, the rules for childcare providers apply to you. Irs amendments Bankruptcy. Irs amendments   If you filed for bankruptcy under Chapter 11 of the Bankruptcy Code, you must allocate your wages and withheld income tax. Irs amendments Your W-2 will show your total wages and withheld income tax for the year. Irs amendments On your tax return, you report the wages and withheld income tax for the period before you filed for bankruptcy. Irs amendments Your bankruptcy estate reports the wages and withheld income tax for the period after you filed for bankruptcy. Irs amendments If you receive other information returns (such as Form 1099-DIV, Dividends and Distributions, or 1099-INT, Interest Income) that report gross income to you, rather than to the bankruptcy estate, you must allocate that income. Irs amendments   The only exception is for purposes of figuring your self-employment tax, if you are self-employed. Irs amendments For that purpose, you must take into account all your self-employment income for the year from services performed both before and after the beginning of the case. Irs amendments   You must file a statement with your income tax return stating you filed a Chapter 11 bankruptcy case. Irs amendments The statement must show the allocation and describe the method used to make the allocation. Irs amendments For a sample of this statement and other information, see Notice 2006-83, 2006-40 I. Irs amendments R. Irs amendments B. Irs amendments 596, available at www. Irs amendments irs. Irs amendments gov/irb/2006-40_IRB/ar12. Irs amendments html. Irs amendments Miscellaneous Compensation This section discusses many types of employee compensation. Irs amendments The subjects are arranged in alphabetical order. Irs amendments Advance commissions and other earnings. Irs amendments   If you receive advance commissions or other amounts for services to be performed in the future and you are a cash-method taxpayer, you must include these amounts in your income in the year you receive them. Irs amendments    If you repay unearned commissions or other amounts in the same year you receive them, reduce the amount included in your income by the repayment. Irs amendments If you repay them in a later tax year, you can deduct the repayment as an itemized deduction on your Schedule A (Form 1040), Itemized Deductions, or you may be able to take a credit for that year. Irs amendments See Repayments , later. Irs amendments Allowances and reimbursements. Irs amendments    If you receive travel, transportation, or other business expense allowances or reimbursements from your employer, see Publication 463, Travel, Entertainment, Gift, and Car Expenses. Irs amendments If you are reimbursed for moving expenses, see Publication 521, Moving Expenses. Irs amendments Back pay awards. Irs amendments   Include in income amounts you are awarded in a settlement or judgment for back pay. Irs amendments These include payments made to you for damages, unpaid life insurance premiums, and unpaid health insurance premiums. Irs amendments They should be reported to you by your employer on Form W-2. Irs amendments Bonuses and awards. Irs amendments    Bonuses or awards you receive for outstanding work are included in your income and should be shown on your Form W-2. Irs amendments These include prizes such as vacation trips for meeting sales goals. Irs amendments If the prize or award you receive is goods or services, you must include the fair market value of the goods or services in your income. Irs amendments However, if your employer merely promises to pay you a bonus or award at some future time, it is not taxable until you receive it or it is made available to you. Irs amendments Employee achievement award. Irs amendments   If you receive tangible personal property (other than cash, a gift certificate, or an equivalent item) as an award for length of service or safety achievement, you generally can exclude its value from your income. Irs amendments However, the amount you can exclude is limited to your employer's cost and cannot be more than $1,600 ($400 for awards that are not qualified plan awards) for all such awards you receive during the year. Irs amendments Your employer can tell you whether your award is a qualified plan award. Irs amendments Your employer must make the award as part of a meaningful presentation, under conditions and circumstances that do not create a significant likelihood of it being disguised pay. Irs amendments   However, the exclusion does not apply to the following awards. Irs amendments A length-of-service award if you received it for less than 5 years of service or if you received another length-of-service award during the year or the previous 4 years. Irs amendments A safety achievement award if you are a manager, administrator, clerical employee, or other professional employee or if more than 10% of eligible employees previously received safety achievement awards during the year. Irs amendments Example. Irs amendments Ben Green received three employee achievement awards during the year: a nonqualified plan award of a watch valued at $250, and two qualified plan awards of a stereo valued at $1,000 and a set of golf clubs valued at $500. Irs amendments Assuming that the requirements for qualified plan awards are otherwise satisfied, each award by itself would be excluded from income. Irs amendments However, because the $1,750 total value of the awards is more than $1,600, Ben must include $150 ($1,750 − $1,600) in his income. Irs amendments Differential wage payments. Irs amendments   This is any payment made by an employer to an individual for any period during which the individual is, for a period of more than 30 days, an active duty member of the uniformed services and represents all or a portion of the wages the individual would have received from the employer for that period. Irs amendments These payments are treated as wages and are subject to income tax withholding, but not FICA or FUTA taxes. Irs amendments The payments are reported as wages on Form W-2. Irs amendments Government cost-of-living allowances. Irs amendments   Most payments received by U. Irs amendments S. Irs amendments Government civilian employees for working abroad are taxable. Irs amendments However, certain cost-of-living allowances are tax free. Irs amendments Publication 516, U. Irs amendments S. Irs amendments Government Civilian Employees Stationed Abroad, explains the tax treatment of allowances, differentials, and other special pay you receive for employment abroad. Irs amendments Nonqualified deferred compensation plans. Irs amendments   Your employer will report to you the total amount of deferrals for the year under a nonqualified deferred compensation plan. Irs amendments This amount is shown on Form W-2, box 12, using code Y. Irs amendments This amount is not included in your income. Irs amendments   However, if at any time during the tax year, the plan fails to meet certain requirements, or is not operated under those requirements, all amounts deferred under the plan for the tax year and all preceding tax years are included in your income for the current year. Irs amendments This amount is included in your wages shown on Form W-2, box 1. Irs amendments It is also shown on Form W-2, box 12, using code Z. Irs amendments Nonqualified deferred compensation plans of nonqualified entities. Irs amendments   In most cases, any compensation deferred under a nonqualified deferred compensation plan of a nonqualified entity is included in gross income when there is no substantial risk of forfeiture of the rights to such compensation. Irs amendments For this purpose, a nonqualified entity is: A foreign corporation unless substantially all of its income is: Effectively connected with the conduct of a trade or business in the United States, or Subject to a comprehensive foreign income tax. Irs amendments A partnership unless substantially all of its income is allocated to persons other than: Foreign persons for whom the income is not subject to a comprehensive foreign income tax, and Tax-exempt organizations. Irs amendments Note received for services. Irs amendments   If your employer gives you a secured note as payment for your services, you must include the fair market value (usually the discount value) of the note in your income for the year you receive it. Irs amendments When you later receive payments on the note, a proportionate part of each payment is the recovery of the fair market value that you previously included in your income. Irs amendments Do not include that part again in your income. Irs amendments Include the rest of the payment in your income in the year of payment. Irs amendments   If your employer gives you a nonnegotiable unsecured note as payment for your services, payments on the note that are credited toward the principal amount of the note are compensation income when you receive them. Irs amendments Severance pay. Irs amendments   You must include in income amounts you receive as severance pay and any payment for the cancellation of your employment contract. Irs amendments Accrued leave payment. Irs amendments   If you are a federal employee and receive a lump-sum payment for accrued annual leave when you retire or resign, this amount will be included as wages on your Form W-2. Irs amendments   If you resign from one agency and are reemployed by another agency, you may have to repay part of your lump-sum annual leave payment to the second agency. Irs amendments You can reduce gross wages by the amount you repaid in the same tax year in which you received it. Irs amendments Attach to your tax return a copy of the receipt or statement given to you by the agency you repaid to explain the difference between the wages on your return and the wages on your Forms W-2. Irs amendments Outplacement services. Irs amendments   If you choose to accept a reduced amount of severance pay so that you can receive outplacement services (such as training in résumé writing and interview techniques), you must include the unreduced amount of the severance pay in income. Irs amendments    However, you can deduct the value of these outplacement services (up to the difference between the severance pay included in income and the amount actually received) as a miscellaneous deduction (subject to the 2%-of-adjusted-gross-income (AGI) limit) on Schedule A (Form 1040). Irs amendments Sick pay. Irs amendments   Pay you receive from your employer while you are sick or injured is part of your salary or wages. Irs amendments In addition, you must include in your income sick pay benefits received from any of the following payers. Irs amendments A welfare fund. Irs amendments A state sickness or disability fund. Irs amendments An association of employers or employees. Irs amendments An insurance company, if your employer paid for the plan. Irs amendments However, if you paid the premiums on an accident or health insurance policy, the benefits you receive under the policy are not taxable. Irs amendments For more information, see Other Sickness and Injury Benefits under Sickness and Injury Benefits, later. Irs amendments Social security and Medicare taxes paid by employer. Irs amendments   If you and your employer have an agreement that your employer pays your social security and Medicare taxes without deducting them from your gross wages, you must report the amount of tax paid for you as taxable wages on your tax return. Irs amendments The payment is also treated as wages for figuring your social security and Medicare taxes and your social security and Medicare benefits. Irs amendments However, these payments are not treated as social security and Medicare wages if you are a household worker or a farm worker. Irs amendments Stock appreciation rights. Irs amendments   Do not include a stock appreciation right granted by your employer in income until you exercise (use) the right. Irs amendments When you use the right, you are entitled to a cash payment equal to the fair market value of the corporation's stock on the date of use minus the fair market value on the date the right was granted. Irs amendments You include the cash payment in income in the year you use the right. Irs amendments Fringe Benefits Fringe benefits received in connection with the performance of your services are included in your income as compensation unless you pay fair market value for them or they are specifically excluded by law. Irs amendments Abstaining from the performance of services (for example, under a covenant not to compete) is treated as the performance of services for purposes of these rules. Irs amendments See Valuation of Fringe Benefits , later in this discussion, for information on how to determine the amount to include in income. Irs amendments Recipient of fringe benefit. Irs amendments   You are the recipient of a fringe benefit if you perform the services for which the fringe benefit is provided. Irs amendments You are considered to be the recipient even if it is given to another person, such as a member of your family. Irs amendments An example is a car your employer gives to your spouse for services you perform. Irs amendments The car is considered to have been provided to you and not to your spouse. Irs amendments   You do not have to be an employee of the provider to be a recipient of a fringe benefit. Irs amendments If you are a partner, director, or independent contractor, you also can be the recipient of a fringe benefit. Irs amendments Provider of benefit. Irs amendments   Your employer or another person for whom you perform services is the provider of a fringe benefit regardless of whether that person actually provides the fringe benefit to you. Irs amendments The provider can be a client or customer of an independent contractor. Irs amendments Accounting period. Irs amendments   You must use the same accounting period your employer uses to report your taxable noncash fringe benefits. Irs amendments Your employer has the option to report taxable noncash fringe benefits by using either of the following rules. Irs amendments The general rule: benefits are reported for a full calendar year (January 1–December 31). Irs amendments The special accounting period rule: benefits provided during the last 2 months of the calendar year (or any shorter period) are treated as paid during the following calendar year. Irs amendments For example, each year your employer reports the value of benefits provided during the last 2 months of the prior year and the first 10 months of the current year. Irs amendments Your employer does not have to use the same accounting period for each fringe benefit, but must use the same period for all employees who receive a particular benefit. Irs amendments   You must use the same accounting period that you use to report the benefit to claim an employee business deduction (for use of a car, for example). Irs amendments Form W-2. Irs amendments   Your employer must include all taxable fringe benefits in box 1 of Form W-2 as wages, tips and other compensation and, if applicable, in boxes 3 and 5 as social security and Medicare wages. Irs amendments Although not required, your employer may include the total value of fringe benefits in box 14 (or on a separate statement). Irs amendments However, if your employer provided you with a vehicle and included 100% of its annual lease value in your income, the employer must separately report this value to you in box 14 (or on a separate statement). Irs amendments Accident or Health Plan In most cases, the value of accident or health plan coverage provided to you by your employer is not included in your income. Irs amendments Benefits you receive from the plan may be taxable, as explained, later, under Sickness and Injury Benefits . Irs amendments For information on the items covered in this section, other than Long-term care coverage , see Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans. Irs amendments Long-term care coverage. Irs amendments   Contributions by your employer to provide coverage for long-term care services generally are not included in your income. Irs amendments However, contributions made through a flexible spending or similar arrangement (such as a cafeteria plan) must be included in your income. Irs amendments This amount will be reported as wages in box 1 of your Form W-2. Irs amendments Archer MSA contributions. Irs amendments    Contributions by your employer to your Archer MSA generally are not included in your income. Irs amendments Their total will be reported in box 12 of Form W-2, with code R. Irs amendments You must report this amount on Form 8853, Archer MSAs and Long-Term Care Insurance Contracts. Irs amendments File the form with your return. Irs amendments Health flexible spending arrangement (health FSA). Irs amendments   If your employer provides a health FSA that qualifies as an accident or health plan, the amount of your salary reduction, and reimbursements of your medical care expenses, in most cases, are not included in your income. Irs amendments   Health FSAs are subject to a $2,500 limit on salary reduction contributions for plan years beginning after 2012. Irs amendments The $2,500 limit is subject to an inflation adjustment for plan years beginning after 2013. Irs amendments For more information, see Notice 2012-40, 2012-26 I. Irs amendments R. Irs amendments B. Irs amendments 1046, available at www. Irs amendments irs. Irs amendments gov/irb/2012-26 IRB/ar09. Irs amendments html. Irs amendments Health reimbursement arrangement (HRA). Irs amendments   If your employer provides an HRA that qualifies as an accident or health plan, coverage and reimbursements of your medical care expenses generally are not included in your income. Irs amendments Health savings accounts (HSA). Irs amendments   If you are an eligible individual, you and any other person, including your employer or a family member, can make contributions to your HSA. Irs amendments Contributions, other than employer contributions, are deductible on your return whether or not you itemize deductions. Irs amendments Contributions made by your employer are not included in your income. Irs amendments Distributions from your HSA that are used to pay qualified medical expenses are not included in your income. Irs amendments Distributions not used for qualified medical expenses are included in your income. Irs amendments See Publication 969 for the requirements of an HSA. Irs amendments   Contributions by a partnership to a bona fide partner's HSA are not contributions by an employer. Irs amendments The contributions are treated as a distribution of money and are not included in the partner's gross income. Irs amendments Contributions by a partnership to a partner's HSA for services rendered are treated as guaranteed payments that are includible in the partner's gross income. Irs amendments In both situations, the partner can deduct the contribution made to the partner's HSA. Irs amendments   Contributions by an S corporation to a 2% shareholder-employee's HSA for services rendered are treated as guaranteed payments and are includible in the shareholder-employee's gross income. Irs amendments The shareholder-employee can deduct the contribution made to the shareholder-employee's HSA. Irs amendments Qualified HSA funding distribution. Irs amendments   You can make a one-time distribution from your individual retirement account (IRA) to an HSA and you generally will not include any of the distribution in your income. Irs amendments See Publication 590, Individual Retirement Arrangements (IRAs), for the requirements for these qualified HSA funding distributions. Irs amendments Failure to maintain eligibility. Irs amendments   If your HSA received qualified HSA distributions from a health FSA or HRA (discussed earlier) or a qualified HSA funding distribution, you must be an eligible individual for HSA purposes for the period beginning with the month in which the qualified distribution was made and ending on the last day of the 12th month following that month. Irs amendments If you fail to be an eligible individual during this period, other than because of death or disability, you must include the distribution in your income for the tax year in which you become ineligible. Irs amendments This income is also subject to an additional 10% tax. Irs amendments Adoption Assistance You may be able to exclude from your income amounts paid or expenses incurred by your employer for qualified adoption expenses in connection with your adoption of an eligible child. Irs amendments See Instructions for Form 8839, Qualified Adoption Expenses, for more information. Irs amendments Adoption benefits are reported by your employer in box 12 of Form W-2 with code T. Irs amendments They also are included as social security and Medicare wages in boxes 3 and 5. Irs amendments However, they are not included as wages in box 1. Irs amendments To determine the taxable and nontaxable amounts, you must complete Part III of Form 8839. Irs amendments File the form with your return. Irs amendments Athletic Facilities If your employer provides you with the free or low-cost use of an employer-operated gym or other athletic club on your employer's premises, the value is not included in your compensation. Irs amendments The gym must be used primarily by employees, their spouses, and their dependent children. Irs amendments If your employer pays for a fitness program provided to you at an off-site resort hotel or athletic club, the value of the program is included in your compensation. Irs amendments De Minimis (Minimal) Benefits If your employer provides you with a product or service and the cost of it is so small that it would be unreasonable for the employer to account for it, the value is not included in your income. Irs amendments In most cases, the value of benefits such as discounts at company cafeterias, cab fares home when working overtime, and company picnics are not included in your income. Irs amendments Also see Employee Discounts , later. Irs amendments Holiday gifts. Irs amendments   If your employer gives you a turkey, ham, or other item of nominal value at Christmas or other holidays, do not include the value of the gift in your income. Irs amendments However, if your employer gives you cash, a gift certificate, or a similar item that you can easily exchange for cash, you include the value of that gift as extra salary or wages regardless of the amount involved. Irs amendments Dependent Care Benefits If your employer provides dependent care benefits under a qualified plan, you may be able to exclude these benefits from your income. Irs amendments Dependent care benefits include: Amounts your employer pays directly to either you or your care provider for the care of your qualifying person while you work, and The fair market value of care in a daycare facility provided or sponsored by your employer. Irs amendments The amount you can exclude is limited to the lesser of: The total amount of dependent care benefits you received during the year, The total amount of qualified expenses you incurred during the year, Your earned income, Your spouse's earned income, or $5,000 ($2,500 if married filing separately). Irs amendments Your employer must show the total amount of dependent care benefits provided to you during the year under a qualified plan in box 10 of your Form W-2. Irs amendments Your employer also will include any dependent care benefits over $5,000 in your wages shown in box 1 of your Form W-2. Irs amendments To claim the exclusion, you must complete Part III of Form 2441, Child and Dependent Care Expenses. Irs amendments See the Instructions for Form 2441 for more information. Irs amendments Educational Assistance You can exclude from your income up to $5,250 of qualified employer-provided educational assistance. Irs amendments For more information, see Publication 970. Irs amendments Employee Discounts If your employer sells you property or services at a discount, you may be able to exclude the amount of the discount from your income. Irs amendments The exclusion applies to discounts on property or services offered to customers in the ordinary course of the line of business in which you work. Irs amendments However, it does not apply to discounts on real property or property commonly held for investment (such as stocks or bonds). Irs amendments The exclusion is limited to the price charged nonemployee customers multiplied by the following percentage. Irs amendments For a discount on property, your employer's gross profit percentage (gross profit divided by gross sales) on all property sold during the employer's previous tax year. Irs amendments (Ask your employer for this percentage. Irs amendments ) For a discount on services, 20%. Irs amendments Financial Counseling Fees Financial counseling fees paid for you by your employer are included in your income and must be reported as part of wages. Irs amendments If the fees are for tax or investment counseling, they can be deducted on Schedule A (Form 1040) as a miscellaneous deduction (subject to the 2%-of-AGI limit). Irs amendments Qualified retirement planning services paid for you by your employer may be excluded from your income. Irs amendments For more information, see Retirement Planning Services , later. Irs amendments Group-Term Life Insurance In most cases, the cost of up to $50,000 of group-term life insurance coverage provided to you by your employer (or former employer) is not included in your income. Irs amendments However, you must include in income the cost of employer-provided insurance that is more than the cost of $50,000 of coverage reduced by any amount you pay toward the purchase of the insurance. Irs amendments For exceptions to this rule, see Entire cost excluded , and Entire cost taxed , later. Irs amendments If your employer provided more than $50,000 of coverage, the amount included in your income is reported as part of your wages in box 1 of your Form W-2. Irs amendments Also, it is shown separately in box 12 with code C. Irs amendments Group-term life insurance. Irs amendments   This insurance is term life insurance protection (insurance for a fixed period of time) that: Provides a general death benefit, Is provided to a group of employees, Is provided under a policy carried by the employer, and Provides an amount of insurance to each employee based on a formula that prevents individual selection. Irs amendments Permanent benefits. Irs amendments   If your group-term life insurance policy includes permanent benefits, such as a paid-up or cash surrender value, you must include in your income, as wages, the cost of the permanent benefits minus the amount you pay for them. Irs amendments Your employer should be able to tell you the amount to include in your income. Irs amendments Accidental death benefits. Irs amendments   Insurance that provides accidental or other death benefits but does not provide general death benefits (travel insurance, for example) is not group-term life insurance. Irs amendments Former employer. Irs amendments   If your former employer provided more than $50,000 of group-term life insurance coverage during the year, the amount included in your income is reported as wages in box 1 of Form W-2. Irs amendments Also, it is shown separately in box 12 with code C. Irs amendments Box 12 also will show the amount of uncollected social security and Medicare taxes on the excess coverage, with codes M and N. Irs amendments You must pay these taxes with your income tax return. Irs amendments Include them on line 60, Form 1040, and follow the instructions forline 60. Irs amendments For more information, see the Instructions for Form 1040. Irs amendments Two or more employers. Irs amendments   Your exclusion for employer-provided group-term life insurance coverage cannot exceed the cost of $50,000 of coverage, whether the insurance is provided by a single employer or multiple employers. Irs amendments If two or more employers provide insurance coverage that totals more than $50,000, the amounts reported as wages on your Forms W-2 will not be correct. Irs amendments You must figure how much to include in your income. Irs amendments Reduce the amount you figure by any amount reported with code C in box 12 of your Forms W-2, add the result to the wages reported in box 1, and report the total on your return. Irs amendments Figuring the taxable cost. Irs amendments    Use the following worksheet to figure the amount to include in your income. Irs amendments   If you pay any part of the cost of the insurance, your entire payment reduces, dollar for dollar, the amount you otherwise would include in your income. Irs amendments However, you cannot reduce the amount to include in your income by: Payments for coverage in a different tax year, Payments for coverage through a cafeteria plan, unless the payments are after-tax contributions, or Payments for coverage not taxed to you because of the exceptions discussed later under Entire cost excluded . Irs amendments Worksheet 1. Irs amendments Figuring the Cost of Group-Term Life Insurance To Include in Income 1. Irs amendments Enter the total amount of your insurance coverage from your employer(s) 1. Irs amendments   2. Irs amendments Limit on exclusion for employer-provided group-term life insurance coverage 2. Irs amendments 50,000 3. Irs amendments Subtract line 2 from line 1 3. Irs amendments   4. Irs amendments Divide line 3 by $1,000. Irs amendments Figure to the nearest tenth 4. Irs amendments   5. Irs amendments Go to Table 1. Irs amendments Using your age on the last day of the tax year, find your age group in the left column, and enter the cost from the column on the right for your age group 5. Irs amendments   6. Irs amendments Multiply line 4 by line 5 6. Irs amendments     7. Irs amendments Enter the number of full months of coverage at this cost 7. Irs amendments   8. Irs amendments Multiply line 6 by line 7 8. Irs amendments   9. Irs amendments Enter the premiums you paid per month 9. Irs amendments       10. Irs amendments Enter the number of months you paid the  premiums 10. Irs amendments       11. Irs amendments Multiply line 9 by line 10. Irs amendments 11. Irs amendments   12. Irs amendments Subtract line 11 from line 8. Irs amendments Include this amount in your income as wages 12. Irs amendments   Table 1. Irs amendments Cost of $1,000 of Group-Term Life Insurance for One Month   Age Cost     Under 25 $ . Irs amendments 05     25 through 29 . Irs amendments 06     30 through 34 . Irs amendments 08     35 through 39 . Irs amendments 09     40 through 44 . Irs amendments 10     45 through 49 . Irs amendments 15     50 through 54 . Irs amendments 23     55 through 59 . Irs amendments 43     60 through 64 . Irs amendments 66     65 through 69 1. Irs amendments 27     70 and older 2. Irs amendments 06   Example. Irs amendments You are 51 years old and work for employers A and B. Irs amendments Both employers provide group-term life insurance coverage for you for the entire year. Irs amendments Your coverage is $35,000 with employer A and $45,000 with employer B. Irs amendments You pay premiums of $4. Irs amendments 15 a month under the employer B group plan. Irs amendments You figure the amount to include in your income as follows. Irs amendments   Worksheet 1. Irs amendments Figuring the Cost of Group-Term Life Insurance To Include in Income—Illustrated 1. Irs amendments Enter the total amount of your insurance coverage from your employer(s) 1. Irs amendments 80,000 2. Irs amendments Limit on exclusion for employer-provided group-term life insurance coverage 2. Irs amendments 50,000 3. Irs amendments Subtract line 2 from line 1 3. Irs amendments 30,000 4. Irs amendments Divide line 3 by $1,000. Irs amendments Figure to the nearest tenth 4. Irs amendments 30. Irs amendments 0 5. Irs amendments Go to Table 1. Irs amendments Using your age on the last day of the tax year, find your age group in the left column, and enter the cost from the column on the right for your age group 5. Irs amendments . Irs amendments 23 6. Irs amendments Multiply line 4 by line 5 6. Irs amendments 6. Irs amendments 90 7. Irs amendments Enter the number of full months of coverage at this cost. Irs amendments 7. Irs amendments 12 8. Irs amendments Multiply line 6 by line 7 8. Irs amendments 82. Irs amendments 80 9. Irs amendments Enter the premiums you paid per month 9. Irs amendments 4. Irs amendments 15     10. Irs amendments Enter the number of months you paid the premiums 10. Irs amendments 12     11. Irs amendments Multiply line 9 by line 10. Irs amendments 11. Irs amendments 49. Irs amendments 80 12. Irs amendments Subtract line 11 from line 8. Irs amendments Include this amount in your income as wages 12. Irs amendments 33. Irs amendments 00 The total amount to include in income for the cost of excess group-term life insurance is $33. Irs amendments Neither employer provided over $50,000 insurance coverage, so the wages shown on your Forms W-2 do not include any part of that $33. Irs amendments You must add it to the wages shown on your Forms W-2 and include the total on your return. Irs amendments Entire cost excluded. Irs amendments   You are not taxed on the cost of group-term life insurance if any of the following circumstances apply. Irs amendments You are permanently and totally disabled and have ended your employment. Irs amendments Your employer is the beneficiary of the policy for the entire period the insurance is in force during the tax year. Irs amendments A charitable organization to which contributions are deductible is the only beneficiary of the policy for the entire period the insurance is in force during the tax year. Irs amendments (You are not entitled to a deduction for a charitable contribution for naming a charitable organization as the beneficiary of your policy. Irs amendments ) The plan existed on January 1, 1984, and: You retired before January 2, 1984, and were covered by the plan when you retired, or You reached age 55 before January 2, 1984, and were employed by the employer or its predecessor in 1983. Irs amendments Entire cost taxed. Irs amendments   You are taxed on the entire cost of group-term life insurance if either of the following circumstances apply. Irs amendments The insurance is provided by your employer through a qualified employees' trust, such as a pension trust or a qualified annuity plan. Irs amendments You are a key employee and your employer's plan discriminates in favor of key employees. Irs amendments Meals and Lodging You do not include in your income the value of meals and lodging provided to you and your family by your employer at no charge if the following conditions are met. Irs amendments The meals are: Furnished on the business premises of your employer, and Furnished for the convenience of your employer. Irs amendments The lodging is: Furnished on the business premises of your employer, Furnished for the convenience of your employer, and A condition of your employment. Irs amendments (You must accept it in order to be able to properly perform your duties. Irs amendments ) You also do not include in your income the value of meals or meal money that qualifies as a de minimis fringe benefit. Irs amendments See De Minimis (Minimal) Benefits , earlier. Irs amendments Faculty lodging. Irs amendments   If you are an employee of an educational institution or an academic health center and you are provided with lodging that does not meet the three conditions given earlier, you still may not have to include the value of the lodging in income. Irs amendments However, the lodging must be qualified campus lodging, and you must pay an adequate rent. Irs amendments Academic health center. Irs amendments   This is an organization that meets the following conditions. Irs amendments Its principal purpose or function is to provide medical or hospital care or medical education or research. Irs amendments It receives payments for graduate medical education under the Social Security Act. Irs amendments One of its principal purposes or functions is to provide and teach basic and clinical medical science and research using its own faculty. Irs amendments Qualified campus lodging. Irs amendments   Qualified campus lodging is lodging furnished to you, your spouse, or one of your dependents by, or on behalf of, the institution or center for use as a home. Irs amendments The lodging must be located on or near a campus of the educational institution or academic health center. Irs amendments Adequate rent. Irs amendments   The amount of rent you pay for the year for qualified campus lodging is considered adequate if it is at least equal to the lesser of: 5% of the appraised value of the lodging, or The average of rentals paid by individuals (other than employees or students) for comparable lodging held for rent by the educational institution. Irs amendments If the amount you pay is less than the lesser of these amounts, you must include the difference in your income. Irs amendments   The lodging must be appraised by an independent appraiser and the appraisal must be reviewed on an annual basis. Irs amendments Example. Irs amendments Carl Johnson, a sociology professor for State University, rents a home from the university that is qualified campus lodging. Irs amendments The house is appraised at $200,000. Irs amendments The average rent paid for comparable university lodging by persons other than employees or students is $14,000 a year. Irs amendments Carl pays an annual rent of $11,000. Irs amendments Carl does not include in his income any rental value because the rent he pays equals at least 5% of the appraised value of the house (5% × $200,000 = $10,000). Irs amendments If Carl paid annual rent of only $8,000, he would have to include $2,000 in his income ($10,000 − $8,000). Irs amendments Moving Expense Reimbursements In most cases, if your employer pays for your moving expenses (either directly or indirectly) and the expenses would have been deductible if you paid them yourself, the value is not included in your income. Irs amendments See Publication 521 for more information. Irs amendments No-Additional-Cost Services The value of services you receive from your employer for free, at cost, or for a reduced price is not included in your income if your employer: Offers the same service for sale to customers in the ordinary course of the line of business in which you work, and Does not have a substantial additional cost (including any sales income given up) to provide you with the service (regardless of what you paid for the service). Irs amendments In most cases, no-additional-cost services are excess capacity services, such as airline, bus, or train tickets, hotel rooms, and telephone services. Irs amendments Example. Irs amendments You are employed as a flight attendant for a company that owns both an airline and a hotel chain. Irs amendments Your employer allows you to take personal flights (if there is an unoccupied seat) and stay in any one of their hotels (if there is an unoccupied room) at no cost to you. Irs amendments The value of the personal flight is not included in your income. Irs amendments However, the value of the hotel room is included in your income because you do not work in the hotel business. Irs amendments Retirement Planning Services If your employer has a qualified retirement plan, qualified retirement planning services provided to you (and your spouse) by your employer are not included in your income. Irs amendments Qualified services include retirement planning advice, information about your employer's retirement plan, and information about how the plan may fit into your overall individual retirement income plan. Irs amendments You cannot exclude the value of any tax preparation, accounting, legal, or brokerage services provided by your employer. Irs amendments Also, see Financial Counseling Fees , earlier. Irs amendments Transportation If your employer provides you with a qualified transportation fringe benefit, it can be excluded from your income, up to certain limits. Irs amendments A qualified transportation fringe benefit is: Transportation in a commuter highway vehicle (such as a van) between your home and work place, A transit pass, Qualified parking, or Qualified bicycle commuting reimbursement. Irs amendments Cash reimbursement by your employer for these expenses under a bona fide reimbursement arrangement is also excludable. Irs amendments However, cash reimbursement for a transit pass is excludable only if a voucher or similar item that can be exchanged only for a transit pass is not readily available for direct distribution to you. Irs amendments Exclusion limit. Irs amendments   The exclusion for commuter vehicle transportation and transit pass fringe benefits cannot be more than $245 a month. Irs amendments   The exclusion for the qualified parking fringe benefit cannot be more than $245 a month. Irs amendments   The exclusion for qualified bicycle commuting in a calendar year is $20 multiplied by the number of qualified bicycle commuting months that year. Irs amendments   If the benefits have a value that is more than these limits, the excess must be included in your income. Irs amendments You are not entitled to these exclusions if the reimbursements are made under a compensation reduction agreement. Irs amendments Commuter highway vehicle. Irs amendments   This is a highway vehicle that seats at least six adults (not including the driver). Irs amendments At least 80% of the vehicle's mileage must reasonably be expected to be: For transporting employees between their homes and work place, and On trips during which employees occupy at least half of the vehicle's adult seating capacity (not including the driver). Irs amendments Transit pass. Irs amendments   This is any pass, token, farecard, voucher, or similar item entitling a person to ride mass transit (whether public or private) free or at a reduced rate or to ride in a commuter highway vehicle operated by a person in the business of transporting persons for compensation. Irs amendments Qualified parking. Irs amendments   This is parking provided to an employee at or near the employer's place of business. Irs amendments It also includes parking provided on or near a location from which the employee commutes to work by mass transit, in a commuter highway vehicle, or by carpool. Irs amendments It does not include parking at or near the employee's home. Irs amendments Qualified bicycle commuting. Irs amendments   This is reimbursement based on the number of qualified bicycle commuting months for the year. Irs amendments A qualified bicycle commuting month is any month you use the bicycle regularly for a substantial portion of the travel between your home and place of employment and you do not receive any of the other qualified transportation fringe benefits. Irs amendments The reimbursement can be for expenses you incurred during the year for the purchase of a bicycle and bicycle improvements, repair, and storage. Irs amendments Tuition Reduction You can exclude a qualified tuition reduction from your income. Irs amendments This is the amount of a reduction in tuition: For education (below graduate level) furnished by an educational institution to an employee, former employee who retired or became disabled, or his or her spouse and dependent children. Irs amendments For education furnished to a graduate student at an educational institution if the graduate student is engaged in teaching or research activities for that institution. Irs amendments Representing payment for teaching, research, or other services if you receive the amount under the National Health Service Corps Scholarship Program or the Armed Forces Health Professions Scholarship and Financial Assistance program. Irs amendments For more information, see Publication 970. Irs amendments Working Condition Benefits If your employer provides you with a product or service and the cost of it would have been allowable as a business or depreciation deduction if you paid for it yourself, the cost is not included in your income. Irs amendments Example. Irs amendments You work as an engineer and your employer provides you with a subscription to an engineering trade magazine. Irs amendments The cost of the subscription is not included in your income because the cost would have been allowable to you as a business deduction if you had paid for the subscription yourself. Irs amendments Valuation of Fringe Benefits If a fringe benefit is included in your income, the amount included is generally its value determined under the general valuation rule or under the special valuation rules. Irs amendments For an exception, see Group-Term Life Insurance , earlier. Irs amendments General valuation rule. Irs amendments   You must include in your income the amount by which the fair market value of the fringe benefit is more than the sum of: The amount, if any, you paid for the benefit, plus The amount, if any, specifically excluded from your income by law. Irs amendments If you pay fair market value for a fringe benefit, no amount is included in your income. Irs amendments Fair market value. Irs amendments   The fair market value of a fringe benefit is determined by all the facts and circumstances. Irs amendments It is the amount you would have to pay a third party to buy or lease the benefit. Irs amendments This is determined without regard to: Your perceived value of the benefit, or The amount your employer paid for the benefit. Irs amendments Employer-provided vehicles. Irs amendments   If your employer provides a car (or other highway motor vehicle) to you, your personal use of the car is usually a taxable noncash fringe benefit. Irs amendments   Under the general valuation rules, the value of an employer-provided vehicle is the amount you would have to pay a third party to lease the same or a similar vehicle on the same or comparable terms in the same geographic area where you use the vehicle. Irs amendments An example of a comparable lease term is the amount of time the vehicle is available for your use, such as a 1-year period. Irs amendments The value cannot be determined by multiplying a cents-per-mile rate times the number of miles driven unless you prove the vehicle could have been leased on a cents-per-mile basis. Irs amendments Flights on employer-provided aircraft. Irs amendments   Under the general valuation rules, if your flight on an employer-provided piloted aircraft is primarily personal and you control the use of the aircraft for the flight, the value is the amount it would cost to charter the flight from a third party. Irs amendments   If there is more than one employee on the flight, the cost to charter the aircraft must be divided among those employees. Irs amendments The division must be based on all the facts, including which employee or employees control the use of the aircraft. Irs amendments Special valuation rules. Irs amendments   You generally can use a special valuation rule for a fringe benefit only if your employer uses the rule. Irs amendments If your employer uses a special valuation rule, you cannot use a different special rule to value that benefit. Irs amendments You always can use the general valuation rule discussed earlier, based on facts and circumstances, even if your employer uses a special rule. Irs amendments   If you and your employer use a special valuation rule, you must include in your income the amount your employer determines under the special rule minus the sum of: Any amount you repaid your employer, plus Any amount specifically excluded from income by law. Irs amendments The special valuation rules are the following. Irs amendments The automobile lease rule. Irs amendments The vehicle cents-per-mile rule. Irs amendments The commuting rule. Irs amendments The unsafe conditions commuting rule. Irs amendments The employer-operated eating-facility rule. Irs amendments   For more information on these rules, see Publication 15-B, Employer's Tax Guide to Fringe Benefits. Irs amendments    For information on the non-commercial flight and commercial flight valuation rules, see sections 1. Irs amendments 61-21(g) and 1. Irs amendments 61-21(h) of the regulations. Irs amendments Retirement Plan Contributions Your employer's contributions to a qualified retirement plan for you are not included in income at the time contributed. Irs amendments (Your employer can tell you whether your retirement plan is qualified. Irs amendments ) However, the cost of life insurance coverage included in the plan may have to be included. Irs amendments See Group-Term Life Insurance , earlier, under Fringe Benefits. Irs amendments If your employer pays into a nonqualified plan for you, you generally must include the contributions in your income as wages for the tax year in which the contributions are made. Irs amendments However, if your interest in the plan is not transferable or is subject to a substantial risk of forfeiture (you have a good chance of losing it) at the time of the contribution, you do not have to include the value of your interest in your income until it is transferable or is no longer subject to a substantial risk of forfeiture. Irs amendments For information on distributions from retirement plans, see Publication 575 (or Publication 721, Tax Guide to U. Irs amendments S. Irs amendments Civil Service Retirement Benefits, if you are a federal employee or retiree). Irs amendments Elective Deferrals If you are covered by certain kinds of retirement plans, you can choose to have part of your compensation contributed by your employer to a retirement fund, rather than have it paid to you. Irs amendments The amount you set aside (called an elective deferral) is treated as an employer contribution to a qualified plan. Irs amendments An elective deferral, other than a designated Roth contribution (discussed later), is not included in wages subject to income tax at the time contributed. Irs amendments However, it is included in wages subject to social security and Medicare taxes. Irs amendments Elective deferrals include elective contributions to the following retirement plans. Irs amendments Cash or deferred arrangements (section 401(k) plans). Irs amendments The Thrift Savings Plan for federal employees. Irs amendments Salary reduction simplified employee pension plans (SARSEP). Irs amendments Savings incentive match plans for employees (SIMPLE plans). Irs amendments Tax-sheltered annuity plans (403(b) plans). Irs amendments Section 501(c)(18)(D) plans. Irs amendments (But see Reporting by employer , later. Irs amendments ) Section 457 plans. Irs amendments Qualified automatic contribution arrangements. Irs amendments   Under a qualified automatic contribution arrangement, your employer can treat you as having elected to have a part of your compensation contributed to a section 401(k) plan. Irs amendments You are to receive written notice of your rights and obligations under the qualified automatic contribution arrangement. Irs amendments The notice must explain: Your rights to elect not to have elective contributions made, or to have contributions made at a different percentage, and How contributions made will be invested in the absence of any investment decision by you. Irs amendments   You must be given a reasonable period of time after receipt of the notice and before the first elective contribution is made to make an election with respect to the contributions. Irs amendments Overall limit on deferrals. Irs amendments   For 2013, in most cases, you should not have deferred more than a total of $17,500 of contributions to the plans listed in (1) through (3), earlier. Irs amendments The specific plan limits for the plans listed in (4) through (7), earlier, are discussed later. Irs amendments Amounts deferred under specific plan limits are part of the overall limit on deferrals. Irs amendments   Your employer or plan administrator should apply the proper annual limit when figuring your plan contributions. Irs amendments However, you are responsible for monitoring the total you defer to ensure that the deferrals are not more than the overall limit. Irs amendments Catch-up contributions. Irs amendments   You may be allowed catch-up contributions (additional elective deferrals) if you are age 50 or older by the end of your tax year. Irs amendments For more information about catch-up contributions to 403(b) plans, see chapter 6 of Publication 571, Tax Sheltered Annuity Plans. Irs amendments   For more information about additional elective deferrals to: SEPs (SARSEPs), see Salary Reduction Simplified Employee Pension in chapter 2 of Publication 560, Retirement Plans for Small Business. Irs amendments SIMPLE plans, see How Much Can Be Contributed on Your Behalf? in chapter 3 of Publication 590. Irs amendments Section 457 plans, see Limit for deferrals under section 457 plans , later. Irs amendments Limit for deferrals under SIMPLE plans. Irs amendments   If you are a participant in a SIMPLE plan, you generally should not have deferred more than $12,000 in 2013. Irs amendments Amounts you defer under a SIMPLE plan count toward the overall limit ($17,500 for 2013) and may affect the amount you can defer under other elective deferral plans. Irs amendments Limit for tax-sheltered annuities. Irs amendments   If you are a participant in a tax-sheltered annuity plan (403(b) plan), the limit on elective deferrals for 2013 generally is $17,500. Irs amendments However, if you have at least 15 years of service with a public school system, a hospital, a home health service agency, a health and welfare service agency, a church, or a convention or association of churches (or associated organization), the limit on elective deferrals is increased by the least of the following amounts. Irs amendments $3,000, $15,000, reduced by the sum of: The additional pre-tax elective deferrals made in earlier years because of this rule, plus The aggregate amount of designated Roth contributions permitted for prior tax years because of this rule, or $5,000 times the number of your years of service for the organization, minus the total elective deferrals made by your employer on your behalf for earlier years. Irs amendments   If you qualify for the 15-year rule, your elective deferrals under this limit can be as high as $20,500 for 2013. Irs amendments   For more information, see Publication 571. Irs amendments Limit for deferral under section 501(c)(18) plans. Irs amendments   If you are a participant in a section 501(c)(18) plan (a trust created before June 25, 1959, funded only by employee contributions), you should have deferred no more than the lesser of $7,000 or 25% of your compensation. Irs amendments Amounts you defer under a section 501(c)(18) plan count toward the overall limit ($17,500 in 2013) and may affect the amount you can defer under other elective deferral plans. Irs amendments Limit for deferrals under section 457 plans. Irs amendments   If you are a participant in a section 457 plan (a deferred compensation plan for employees of state or local governments or tax-exempt organizations), you should have deferred no more than the lesser of your includible compensation or $17,500 in 2013. Irs amendments However, if you are within 3 years of normal retirement age, you may be allowed an increased limit if the plan allows it. Irs amendments See Increased limit , later. Irs amendments Includible compensation. Irs amendments   This is the pay you received for the year from the employer who maintained the section 457 plan. Irs amendments In most cases, it includes all the following payments. Irs amendments Wages and salaries. Irs amendments Fees for professional services. Irs amendments The value of any employer-provided qualified transportation fringe benefit (defined under Transportation , earlier) that is not included in your income. Irs amendments Other amounts received (cash or noncash) for personal services you performed, including, but not limited to, the following items. Irs amendments Commissions and tips. Irs amendments Fringe benefits. Irs amendments Bonuses. Irs amendments Employer contributions (elective deferrals) to: The section 457 plan. Irs amendments Qualified cash or deferred arrangements (section 401(k) plans) that are not included in your income. Irs amendments A salary reduction simplified employee pension (SARSEP). Irs amendments A tax-sheltered annuity (section 403(b) plan). Irs amendments A savings incentive match plan for employees (SIMPLE plan). Irs amendments A section 125 cafeteria plan. Irs amendments   Instead of using the amounts listed earlier to determine your includible compensation, your employer can use any of the following amounts. Irs amendments Your wages as defined for income tax withholding purposes. Irs amendments Your wages as reported in box 1 of Form W-2. Irs amendments Your wages that are subject to social security withholding (including elective deferrals). Irs amendments Increased limit. Irs amendments   During any, or all, of the last 3 years ending before you reach normal retirement age under the plan, your plan may provide that your limit is the lesser of: Twice the annual limit ($35,000 for 2013), or The basic annual limit plus the amount of the basic limit not used in prior years (only allowed if not using age 50 or over catch-up contributions). Irs amendments Catch-up contributions. Irs amendments   You generally can have additional elective deferrals made to your governmental section 457 plan if: You reached age 50 by the end of the year, and No other elective deferrals can be made for you to the plan for the year because of limits or restrictions. Irs amendments If you qualify, your limit can be the lesser of your includible compensation or $17,500, plus $5,500. Irs amendments However, if you are within 3 years of retirement age and your plan provides the increased limit, discussed earlier, that limit may be higher. Irs amendments Designated Roth contributions. Irs amendments   Employers with section 401(k) and section 403(b) plans can create qualified Roth contribution programs so that you may elect to have part or all of your elective deferrals to the plan designated as after-tax Roth contributions. Irs amendments Designated Roth contributions are treated as elective deferrals, except that they are included in income. Irs amendments Your retirement plan must maintain separate accounts and recordkeeping for the designated Roth contributions. Irs amendments   Qualified distributions from a Roth plan are not included in income. Irs amendments In most cases, a distribution made before the end of the 5-tax-year period beginning with the first tax year for which you made a designated Roth contribution to the plan is not a qualified distribution. Irs amendments Reporting by employer. Irs amendments   Your employer generally should not include elective deferrals in your wages in box 1 of Form W-2. Irs amendments Instead, your employer should mark the Retirement plan checkbox in box 13 and show the total amount deferred in box 12. Irs amendments Section 501(c)(18)(D) contributions. Irs amendments   Wages shown in box 1 of your Form W-2 should not have been reduced for contributions you made to a section 501(c)(18)(D) retirement plan. Irs amendments The amount you contributed should be identified with code “H” in box 12. Irs amendments You may deduct the amount deferred subject to the limits that apply. Irs amendments Include your deduction in the total on Form 1040, line 36. Irs amendments Enter the amount and “501(c)(18)(D)” on the dotted line next to line 36. Irs amendments Designated Roth contributions. Irs amendments    These contributions are elective deferrals but are included in your wages in box 1 of Form W-2. Irs amendments Designated Roth contributions to a section 401(k) plan are reported using code AA in box 12, or, for section 403(b) plans, code BB in box 12. Irs amendments Excess deferrals. Irs amendments   If your deferrals exceed the limit, you must notify your plan by the date required by the plan. Irs amendments If the plan permits, the excess amount will be distributed to you. Irs amendments If you participate in more than one plan, you can have the excess paid out of any of the plans that permit these distributions. Irs amendments You must notify each plan by the date required by that plan of the amount to be paid from that particular plan. Irs amendments The plan then must pay you the amount of the excess, along with any income earned on that amount, by April 15 of the following year. Irs amendments   You must include the excess deferral in your income for the year of the deferral unless you have an excess deferral of a designated Roth contribution. Irs amendments File Form 1040 to add the excess deferral amount to your wages on line 7. Irs amendments Do not use Form 1040A or Form 1040EZ to report excess deferral amounts. Irs amendments Excess not distributed. Irs amendments   If you do not take out the excess amount, you cannot include it in the cost of the contract even though you included it in your income. Irs amendments Therefore, you are taxed twice on the excess deferral left in the plan—once when you contribute it, and again when you receive it as a distribution. Irs amendments Excess distributed to you. Irs amendments   If you take out the excess after the year of the deferral and you receive the corrective distribution by April 15 of the following year, do not include it in income again in the year you receive it. Irs amendments If you receive it later, you must include it in income in both the year of the deferral and the year you receive it. Irs amendments Any income on the excess deferral taken out is taxable in the tax year in which you take it out. Irs amendments If you take out part of the excess deferral and the income on it, allocate the distribution proportionately between the excess deferral and the income. Irs amendments    You should receive a Form 1099-R for the year in which the excess deferral is distributed to you. Irs amendments Use the following rules to report a corrective distribution shown on Form 1099-R for 2013. Irs amendments If the distribution was for a 2013 excess deferral, your Form 1099-R should have the code “8” in box 7. Irs amendments Add the excess deferral amount to your wages on your 2013 tax return. Irs amendments If the distribution was for a 2013 excess deferral to a designated Roth account, your Form 1099-R should have code “B” in box 7. Irs amendments Do not add this amount to your wages on your 2013 return. Irs amendments If the distribution was for a 2012 excess deferral, your Form 1099-R should have the code “P” in box 7. Irs amendments If you did not add the excess deferral amount to your wages on your 2012 tax return, you must file an amended return on Form 1040X, Amended U. Irs amendments S. Irs amendments Individual Income Tax Return. Irs amendments If you did not receive the distribution by April 15, 2013, you also must add it to your wages on your 2013 tax return. Irs amendments If the distribution was for the income earned on an excess deferral, your Form 1099-R should have the code “8” in box 7. Irs amendments Add the income amount to your wages on your 2013 income tax return, regardless of when the excess deferral was made. Irs amendments Report a loss on a corrective distribution of an excess deferral in the year the excess amount (reduced by the loss) is distributed to you. Irs amendments Include the loss as a negative amount on Form 1040, line 21 and identify it as “Loss on Excess Deferral Distribution. Irs amendments ”    Even though a corrective distribution of excess deferrals is reported on Form 1099-R, it is not otherwise treated as a distribution from the plan. Irs amendments It cannot be rolled over into another plan, and it is not subject to the additional tax on early distributions. Irs amendments Excess Contributions If you are a highly compensated employee, the total of your elective deferrals and other contributions made for you for any year under a section 401(k) plan or SARSEP can be, as a percentage of pay, no more than 125% of the average deferral percentage (ADP) of all eligible non-highly compensated employees. Irs amendments If the total contributed to the plan is more than the amount allowed under the ADP test, the excess contributions must be either distributed to you or recharacterized as after-tax employee contributions by treating them as distributed to you and then contributed by you to the plan. Irs amendments You must include the excess contributions in your income as wages on Form 1040, line 7. Irs amendments You cannot use Form 1040A or Form 1040EZ to report excess contribution amounts. Irs amendments If you receive a corrective distribution of excess contributions (and allocable income), it is included in your income in the year of the distribution. Irs amendments The allocable income is the amount of gain or loss through the end of the plan year for which the contribution was made that is allocable to the excess contributions. Irs amendments You should receive a Form 1099-R for the year the excess contributions are distributed to you. Irs amendments Add the distribution to your wages for that year. Irs amendments Even though a corrective distribution of excess contributions is reported on Form 1099-R, it is not otherwise treated as a distribution from the plan. Irs amendments It cannot be rolled over into another plan, and it is not subject to the additional tax on early distributions. Irs amendments Excess Annual Additions The amount contributed in 2013 to a defined contribution plan is generally limited to the lesser of 100% of your compensation or $51,000. Irs amendments Under certain circumstances, contributions that exceed these limits (excess annual additions) may be corrected by a distribution of your elective deferrals or a return of your after-tax contributions and earnings from these contributions. Irs amendments A corrective payment of excess annual additions consisting of elective deferrals or earnings from your after-tax contributions is fully taxable in the year paid. Irs amendments A corrective payment consisting of your after-tax contributions is not taxable. Irs amendments If you received a corrective payment of excess annual additions, you should receive a separate Form 1099-R for the year of the payment with the code “E” in box 7. Irs amendments Report the total payment shown in box 1 of Form 1099-R on line 16a of Form 1040 or line 12a of Form 1040A. Irs amendments Report the taxable amount shown in box 2a of Form 1099-R on line 16b of Form 1040 or line 12b of Form 1040A. Irs amendments Even though a corrective distribution of excess annual additions is reported on Form 1099-R, it is not otherwise treated as a distribution from the plan. Irs amendments It cannot be rolled over into another plan, and it is not subject to the additional tax on early distributions. Irs amendments Stock Options If you receive an option to buy or sell stock or other property as payment for your services, you may have income when you receive the option (the grant), when you exercise the option (use it to buy or sell the stock or other property), or when you sell or otherwise dispose of the option or property acquired through exercise of the option. Irs amendments The timing, type, and amount of income inclusion depend on whether you receive a nonstatutory stock option or a statutory stock option. Irs amendments Your employer can tell you which kind of option you hold. Irs amendments Nonstatutory Stock Options Grant of option. Irs amendments   If you are granted a nonstatutory stock option, you may have income when you receive the option. Irs amendments The amount of income to include and the time to include it depend on whether the fair market value of the option can be readily determined. Irs amendments The fair market value of an option can be readily determined if it is actively traded on an established market. Irs amendments    The fair market value of an option that is not traded on an established market can be readily determined only if all of the following conditions exist. Irs amendments You can transfer the option. Irs amendments You can exercise the option immediately in full. Irs amendments The option or the property subject to the option is not subject to any condition or restriction (other than a condition to secure payment of the purchase price) that has a significant effect on the fair market value of the option. Irs amendments The fair market value of the option privilege can be readily determined. Irs amendments The option privilege for an option to buy is the opportunity to benefit during the option's exercise period from any increase in the value of property subject to the option without risking any capital. Irs amendments For example, if during the exercise period the fair market value of stock subject to an option is greater than the option's exercise price, a profit may be realized by exercising the option and immediately selling the stock at its higher value. Irs amendments The option privilege for an option to sell is the opportunity to benefit during the exercise period from a decrease in the value of the property subject to the option. Irs amendments If you or a member of your family is an officer, director, or more-than-10% owner of an expatriated corporation, you may owe an excise tax on the value of nonstatutory options and other stock-based compensation from that corporation. Irs amendments For more information on the excise tax, see Internal Revenue Code section 4985. Irs amendments Option with readily determinable value. Irs amendments   If you receive a nonstatutory stock option that has a readily determinable fair market value at the time it is granted to you, the option is treated like other property received as compensation. Irs amendments See Restricted Property , later, for rules on how much income to include and when to include it. Irs amendments However, the rule described in that discussion for choosing to include the value of property in your income for the year of the transfer does not apply to a nonstatutory option. Irs amendments Option without readily determinable value. Irs amendments   If the fair market value of the option is not readily determinable at the time it is granted to you (even if it is determined later), you do not have income until you exercise or transfer the option. Irs amendments    Exercise or transfer of option. Irs amendments   When you exercise a nonstatutory stock option, the amount to include in your income depends on whether the option had a readily determinable value. Irs amendments Option with readily determinable value. Irs amendments   When you exercise a nonstatutory stock option that had a readily determinable value at the time the option was granted, you do not have to include any amount in income. Irs amendments Option without readily determinable value. Irs amendments   When you exercise a nonstatutory stock option that did not have a readily determinable value at the time the option was granted, the restricted prope
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The Irs Amendments

Irs amendments Publication 1544 - Main Content Table of Contents Why Report These Payments? Who Must File Form 8300?What Payments Must Be Reported? What Is Cash? Taxpayer Identification Number (TIN) What Is a Related Transaction? What About Suspicious Transactions? When, Where, and What To File Examples Penalties How To Get Tax HelpLow Income Taxpayer Clinics (LITCs). Irs amendments Why Report These Payments? Drug dealers and smugglers often use large cash payments to “launder” money from illegal activities. Irs amendments Laundering means converting “dirty” or illegally-gained money to “clean” money. Irs amendments The government can often trace this laundered money through the payments you report. Irs amendments Laws passed by Congress require you to report these payments. Irs amendments Your compliance with these laws provides valuable information that can stop those who evade taxes and those who profit from the drug trade and other criminal activities. Irs amendments The USA PATRIOT Act of 2001 increased the scope of these laws to help trace funds used for terrorism. Irs amendments Who Must File Form 8300? Generally, any person in a trade or business who receives more than $10,000 in cash in a single transaction or in related transactions must file Form 8300. Irs amendments For example, you may have to file Form 8300 if you are a dealer in jewelry, furniture, boats, aircraft, or automobiles; a pawnbroker; an attorney; a real estate broker; an insurance company; or a travel agency. Irs amendments Special rules for clerks of federal or state courts are discussed later under Bail received by court clerks. Irs amendments However, you do not have to file Form 8300 if the transaction is not related to your trade or business. Irs amendments For example, if you own a jewelry store and sell your personal automobile for more than $10,000 in cash, you would not submit a Form 8300 for that transaction. Irs amendments Transaction defined. Irs amendments    A “transaction” occurs when: Goods, services, or property are sold; Property is rented; Cash is exchanged for other cash; A contribution is made to a trust or escrow account; A loan is made or repaid; or Cash is converted to a negotiable instrument, such as a check or a bond. Irs amendments Person defined. Irs amendments   A “person” includes an individual, a company, a corporation, a partnership, an association, a trust, or an estate. Irs amendments   Exempt organizations, including employee plans, are also “persons. Irs amendments ” However, exempt organizations do not have to file Form 8300 for a more-than-$10,000 charitable cash contribution they receive since it is not received in the course of a trade or business. Irs amendments Foreign transactions. Irs amendments   You do not have to file Form 8300 if the entire transaction (including the receipt of cash) takes place outside of: The 50 states, The District of Columbia, Puerto Rico, or A possession or territory of the United States. Irs amendments However, you must file Form 8300 if any part of the transaction (including the receipt of cash) occurs in Puerto Rico or a possession or territory of the United States and you are subject to the Internal Revenue Code. Irs amendments Bail received by court clerks. Irs amendments   Any clerk of a federal or state court who receives more than $10,000 in cash as bail for an individual charged with any of the following criminal offenses must file Form 8300: Any federal offense involving a controlled substance, Racketeering, Money laundering, and Any state offense substantially similar to (1), (2), or (3) above. Irs amendments For more information about the rules that apply to court clerks, see Section 1. Irs amendments 6050I-2 of the Income Tax Regulations. Irs amendments What Payments Must Be Reported? You must file Form 8300 to report cash paid to you if it is: Over $10,000, Received as: One lump sum of over $10,000, Installment payments that cause the total cash received within 1 year of the initial payment to total more than $10,000, or Other previously unreportable payments that cause the total cash received within a 12-month period to total more than $10,000, Received in the course of your trade or business, Received from the same buyer (or agent), and Received in a single transaction or in related transactions (defined later). Irs amendments What Is Cash? Cash is: The coins and currency of the United States (and any other country), and A cashier's check, bank draft, traveler's check, or money order you receive, if it has a face amount of $10,000 or less and you receive it in: A designated reporting transaction (defined later), or Any transaction in which you know the payer is trying to avoid the reporting of the transaction on Form 8300. Irs amendments Cash may include a cashier's check even if it is called a “treasurer's check” or “bank check. Irs amendments ” Cash does not include a check drawn on an individual's personal account. Irs amendments A cashier's check, bank draft, traveler's check, or money order with a face amount of more than $10,000 is not treated as cash. Irs amendments These items are not defined as cash and you do not have to file Form 8300 when you receive them because, if they were bought with currency, the bank or other financial institution that issued them must file a report on FinCEN Form 104. Irs amendments Example 1. Irs amendments You are a coin dealer. Irs amendments Bob Green buys gold coins from you for $13,200. Irs amendments He pays for them with $6,200 in U. Irs amendments S. Irs amendments currency and a cashier's check having a face amount of $7,000. Irs amendments The cashier's check is treated as cash. Irs amendments You have received more than $10,000 cash and must file Form 8300 for this transaction. Irs amendments Example 2. Irs amendments You are a retail jeweler. Irs amendments Mary North buys an item of jewelry from you for $12,000. Irs amendments She pays for it with a personal check payable to you in the amount of $9,600 and traveler's checks totaling $2,400. Irs amendments Because the personal check is not treated as cash, you have not received more than $10,000 cash in the transaction. Irs amendments You do not have to file Form 8300. Irs amendments Example 3. Irs amendments You are a boat dealer. Irs amendments Emily Jones buys a boat from you for $16,500. Irs amendments She pays for it with a cashier's check payable to you in the amount of $16,500. Irs amendments The cashier's check is not treated as cash because its face amount is more than $10,000. Irs amendments You do not have to file Form 8300 for this transaction. Irs amendments Designated Reporting Transaction A designated reporting transaction is the retail sale of any of the following: A consumer durable, such as an automobile or boat. Irs amendments A consumer durable is property, other than land or buildings, that: Is suitable for personal use, Can reasonably be expected to last at least 1 year under ordinary use, Has a sales price of more than $10,000, and Can be seen or touched (tangible property). Irs amendments For example, a $20,000 car is a consumer durable, but a $20,000 dump truck or factory machine is not. Irs amendments The car is a consumer durable even if you sell it to a buyer who will use it in a business. Irs amendments A collectible (for example, a work of art, rug, antique, metal, gem, stamp, or coin). Irs amendments Travel or entertainment, if the total sales price of all items sold for the same trip or entertainment event in one transaction (or related transactions) is more than $10,000. Irs amendments To figure the total sales price of all items sold for a trip or entertainment event, you include the sales price of items such as airfare, hotel rooms, and admission tickets. Irs amendments Example. Irs amendments You are a travel agent. Irs amendments Ed Johnson asks you to charter a passenger airplane to take a group to a sports event in another city. Irs amendments He also asks you to book hotel rooms and admission tickets for the group. Irs amendments In payment, he gives you two money orders, each for $6,000. Irs amendments You have received more than $10,000 cash in this designated reporting transaction. Irs amendments You must file Form 8300. Irs amendments Retail sale. Irs amendments   The term “retail sale” means any sale made in the course of a trade or business that consists mainly of making sales to ultimate consumers. Irs amendments   Thus, if your business consists mainly of making sales to ultimate consumers, all sales you make in the course of that business are retail sales. Irs amendments This includes any sales of items that will be resold. Irs amendments Broker or intermediary. Irs amendments   A designated reporting transaction includes the retail sale of items (1), (2), or (3) of the preceding list, even if the funds are received by a broker or other intermediary, rather than directly by the seller. Irs amendments Exceptions to Definition of Cash A cashier's check, bank draft, traveler's check, or money order you received in a designated reporting transaction is not treated as cash if one of the following exceptions applies. Irs amendments Exception for certain bank loans. Irs amendments   A cashier's check, bank draft, traveler's check, or money order is not treated as cash if it is the proceeds from a bank loan. Irs amendments As proof that it is from a bank loan, you may rely on a copy of the loan document, a written statement or lien instruction from the bank, or similar proof. Irs amendments Example. Irs amendments You are a car dealer. Irs amendments Mandy White buys a new car from you for $11,500. Irs amendments She pays you with $2,000 of U. Irs amendments S. Irs amendments currency and a cashier's check for $9,500 payable to you and her. Irs amendments You can tell that the cashier's check is the proceeds of a bank loan because it includes instructions to you to have a lien put on the car as security for the loan. Irs amendments For this reason, the cashier's check is not treated as cash. Irs amendments You do not have to file Form 8300 for the transaction. Irs amendments Exception for certain installment sales. Irs amendments   A cashier's check, bank draft, traveler's check, or money order is not treated as cash if it is received in payment on a promissory note or an installment sales contract (including a lease that is considered a sale for federal tax purposes). Irs amendments However, this exception applies only if: You use similar notes or contracts in other sales to ultimate consumers in the ordinary course of your trade or business, and The total payments for the sale that you receive on or before the 60th day after the sale are 50% or less of the purchase price. Irs amendments Exception for certain down payment plans. Irs amendments   A cashier's check, bank draft, traveler's check, or money order is not treated as cash if you received it in payment for a consumer durable or collectible, and all three of the following statements are true. Irs amendments You receive it under a payment plan requiring: One or more down payments, and Payment of the rest of the purchase price by the date of sale. Irs amendments You receive it more than 60 days before the date of sale. Irs amendments You use payment plans with the same or substantially similar terms when selling to ultimate consumers in the ordinary course of your trade or business. Irs amendments Exception for travel and entertainment. Irs amendments   A cashier's check, bank draft, traveler's check, or money order received for travel or entertainment is not treated as cash if all three of the following statements are true. Irs amendments You receive it under a payment plan requiring: One or more down payments, and Payment of the rest of the purchase price by the earliest date that any travel or entertainment item (such as airfare) is furnished for the trip or entertainment event. Irs amendments You receive it more than 60 days before the date on which the final payment is due. Irs amendments You use payment plans with the same or substantially similar terms when selling to ultimate consumers in the ordinary course of your trade or business. Irs amendments Taxpayer Identification Number (TIN) You must furnish the correct TIN of the person or persons from whom you receive the cash. Irs amendments If the transaction is conducted on the behalf of another person or persons, you must furnish the TIN of that person or persons. Irs amendments If you do not know a person's TIN, you have to ask for it. Irs amendments You may be subject to penalties for an incorrect or missing TIN. Irs amendments There are three types of TINs. Irs amendments The TIN for an individual, including a sole proprietor, is the individual's social security number (SSN). Irs amendments The TIN for a nonresident alien individual who needs a TIN but is not eligible to get an SSN is an IRS individual taxpayer identification number (ITIN). Irs amendments An ITIN has nine digits, similar to an SSN. Irs amendments The TIN for other persons, including corporations, partnerships, and estates, is the employer identification number (EIN). Irs amendments Exception. Irs amendments   You are not required to provide the TIN of a person who is a nonresident alien individual or a foreign organization if that person or foreign organization: Does not have income effectively connected with the conduct of a U. Irs amendments S. Irs amendments trade or business; Does not have an office or place of business, or a fiscal or paying agent in the United States; Does not file a federal tax return; Does not furnish a withholding certificate described in §1. Irs amendments 1441-1(e)(2) or (3) or 1. Irs amendments 1441-5(c)(2)(iv) or (3)(iii) to the extent required under 1. Irs amendments 1441-1(e)(4)(vii); Does not have to furnish a TIN on any return, statement, or other document as required by the income tax regulations under section 897 or 1445; or In the case of a nonresident alien individual, the individual has not chosen to file a joint federal income tax return with a spouse who is a U. Irs amendments S. Irs amendments citizen or resident. Irs amendments What Is a Related Transaction? Any transactions between a buyer (or an agent of the buyer) and a seller that occur within a 24-hour period are related transactions. Irs amendments If you receive over $10,000 in cash during two or more transactions with one buyer in a 24-hour period, you must treat the transactions as one transaction and report the payments on Form 8300. Irs amendments For example, if you sell two products for $6,000 each to the same customer in 1 day and the customer pays you in cash, these are related transactions. Irs amendments Because they total $12,000 (more than $10,000), you must file Form 8300. Irs amendments More than 24 hours between transactions. Irs amendments   Transactions are related even if they are more than 24 hours apart if you know, or have reason to know, that each is one of a series of connected transactions. Irs amendments   For example, you are a travel agent. Irs amendments A client pays you $8,000 in cash for a trip. Irs amendments Two days later, the same client pays you $3,000 more in cash to include another person on the trip. Irs amendments These are related transactions, and you must file Form 8300 to report them. Irs amendments What About Suspicious Transactions? If you receive $10,000 or less in cash, you may voluntarily file Form 8300 if the transaction appears to be suspicious. Irs amendments A transaction is suspicious if it appears that a person is trying to cause you not to file Form 8300 or is trying to cause you to file a false or incomplete Form 8300, or if there is a sign of possible illegal activity. Irs amendments If you are suspicious, you are encouraged to call the local IRS Criminal Investigation Division as soon as possible. Irs amendments Or, you can call the FinCEN Financial Institution Hotline toll free at 1-866-556-3974. Irs amendments When, Where, and What To File The amount you receive and when you receive it determine when you must file. Irs amendments Generally, you must file Form 8300 within 15 days after receiving a payment. Irs amendments If the Form 8300 due date (the 15th or last day you can timely file the form) falls on a Saturday, Sunday, or legal holiday, it is delayed until the next day that is not a Saturday, Sunday, or legal holiday. Irs amendments More than one payment. Irs amendments   In some transactions, the buyer may arrange to pay you in cash installment payments. Irs amendments If the first payment is more than $10,000, you must file Form 8300 within 15 days. Irs amendments If the first payment is not more than $10,000, you must add the first payment and any later payments made within 1 year of the first payment. Irs amendments When the total cash payments are more than $10,000, you must file Form 8300 within 15 days. Irs amendments   After you file Form 8300, you must start a new count of cash payments received from that buyer. Irs amendments If you receive more than $10,000 in additional cash payments from that buyer within a 12-month period, you must file another Form 8300. Irs amendments You must file the form within 15 days of the payment that causes the additional payments to total more than $10,000. Irs amendments   If you are already required to file Form 8300 and you receive additional payments within the 15 days before you must file, you can report all the payments on one form. Irs amendments Example. Irs amendments On January 10, you receive a cash payment of $11,000. Irs amendments You receive additional cash payments on the same transaction of $4,000 on February 15, $5,000 on March 20, and $6,000 on May 12. Irs amendments By January 25, you must file a Form 8300 for the $11,000 payment. Irs amendments By May 27, you must file an additional Form 8300 for the additional payments that total $15,000. Irs amendments Amending a Report?   If you are amending a report, check box 1a at the top of Form 8300. Irs amendments Complete the form in its entirety (Parts I-IV) and include the amended information. Irs amendments Do not attach a copy of the original report. Irs amendments Where to file. Irs amendments   Mail the form to the address given in the Form 8300 instructions. Irs amendments Required statement to buyer. Irs amendments   You must give a written or electronic statement to each person named on any Form 8300 you must file. Irs amendments You can give the statement electronically only if the recipient agrees to receive it in that format. Irs amendments The statement must show the name and address of your business, the name and phone number of a contact person, and the total amount of reportable cash you received from the person during the year. Irs amendments It must state that you are also reporting this information to the IRS. Irs amendments   You must send this statement to the buyer by January 31 of the year after the year in which you received the cash that caused you to file the form. Irs amendments    You must keep a copy of every Form 8300 you file for 5 years. Irs amendments Examples Example 1. Irs amendments Pat Brown is the sales manager for Small Town Cars. Irs amendments On January 6, 2009, Jane Smith buys a new car from Pat and pays $18,000 in cash. Irs amendments Pat asks for identification from Jane to get the necessary information to complete Form 8300. Irs amendments A filled-in form is shown in this publication. Irs amendments Pat must mail the form to the address shown in the form's instructions by January 21, 2009. Irs amendments He must also send a statement to Jane by January 31, 2010. Irs amendments Example 2. Irs amendments Using the same facts given in Example 1, suppose Jane had arranged to make cash payments of $6,000 each on January 6, February 6, and March 6. Irs amendments Pat would have to file a Form 8300 by February 26 (17 days after receiving total cash payments within 1 year over $10,000 because February 21, 2009, is a Saturday). Irs amendments Pat would not have to report the remaining $6,000 cash payment because it is not more than $10,000. Irs amendments However, he could report it if he felt it was a suspicious transaction. Irs amendments Penalties There are civil penalties for failure to: File a correct Form 8300 by the date it is due, and Provide the required statement to those named in the Form 8300. Irs amendments If you intentionally disregard the requirement to file a correct Form 8300 by the date it is due, the penalty is the greater of: $25,000, or The amount of cash you received and were required to report (up to $100,000). Irs amendments There are criminal penalties for: Willful failure to file Form 8300, Willfully filing a false or fraudulent Form 8300, Stopping or trying to stop Form 8300 from being filed, and Setting up, helping to set up, or trying to set up a transaction in a way that would make it seem unnecessary to file Form 8300. Irs amendments If you willfully fail to file Form 8300, you can be fined up to $250,000 for individuals ($500,000 for corporations) or sentenced to up to 5 years in prison, or both. Irs amendments These dollar amounts are based on Section 3571 of Title 18 of the U. Irs amendments S. Irs amendments Code. Irs amendments The penalties for failure to file may also apply to any person (including a payer) who attempts to interfere with or prevent the seller (or business) from filing a correct Form 8300. Irs amendments This includes any attempt to structure the transaction in a way that would make it seem unnecessary to file Form 8300. Irs amendments Structuring means breaking up a large cash transaction into small cash transactions. Irs amendments How To Get Tax Help You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get information from the IRS in several ways. Irs amendments By selecting the method that is best for you, you will have quick and easy access to tax help. Irs amendments Free help with your return. Irs amendments   Free help in preparing your return is available nationwide from IRS-certified volunteers. Irs amendments The Volunteer Income Tax Assistance (VITA) program is designed to help low-moderate income taxpayers and the Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 and older with their tax returns. Irs amendments Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. Irs amendments To find the nearest VITA or TCE site, visit IRS. Irs amendments gov or call 1-800-906-9887 or 1-800-829-1040. Irs amendments   As part of the TCE program, AARP offers the Tax-Aide counseling program. Irs amendments To find the nearest AARP Tax-Aide site, call 1-888-227-7669 or visit AARP's website at www. Irs amendments aarp. Irs amendments org/money/taxaide. Irs amendments   For more information on these programs, go to IRS. Irs amendments gov and enter keyword “VITA” in the upper right-hand corner. Irs amendments Internet. Irs amendments You can access the IRS website at IRS. Irs amendments gov 24 hours a day, 7 days a week to: Check the status of your 2011 refund. Irs amendments Go to IRS. Irs amendments gov and click on Where's My Refund. Irs amendments Wait at least 72 hours after the IRS acknowledges receipt of your e-filed return, or 3 to 4 weeks after mailing a paper return. Irs amendments If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). Irs amendments Have your 2011 tax return available so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Irs amendments E-file your return. Irs amendments Find out about commercial tax preparation and e-file services available free to eligible taxpayers. Irs amendments Download forms, including talking tax forms, instructions, and publications. Irs amendments Order IRS products online. Irs amendments Research your tax questions online. Irs amendments Search publications online by topic or keyword. Irs amendments Use the online Internal Revenue Code, regulations, or other official guidance. Irs amendments View Internal Revenue Bulletins (IRBs) published in the last few years. Irs amendments Figure your withholding allowances using the withholding calculator online at  www. Irs amendments irs. Irs amendments gov/individuals. Irs amendments Determine if Form 6251 must be filed by using our Alternative Minimum Tax (AMT) Assistant available online at  www. Irs amendments irs. Irs amendments gov/individuals. Irs amendments Sign up to receive local and national tax news by email. Irs amendments Get information on starting and operating a small business. Irs amendments Phone. Irs amendments Many services are available by phone. Irs amendments   Ordering forms, instructions, and publications. Irs amendments Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, and publications, and prior-year forms and instructions. Irs amendments You should receive your order within 10 days. Irs amendments Asking tax questions. Irs amendments Call the IRS with your tax questions at 1-800-829-1040. Irs amendments Solving problems. Irs amendments You can get face-to-face help solving tax problems every business day in IRS Taxpayer Assistance Centers. Irs amendments An employee can explain IRS letters, request adjustments to your account, or help you set up a payment plan. Irs amendments Call your local Taxpayer Assistance Center for an appointment. Irs amendments To find the number, go to www. Irs amendments irs. Irs amendments gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. Irs amendments TTY/TDD equipment. Irs amendments If you have access to TTY/TDD equipment, call 1-800-829-4059 to ask tax questions or to order forms and publications. Irs amendments TeleTax topics. Irs amendments Call 1-800-829-4477 to listen to pre-recorded messages covering various tax topics. Irs amendments Refund information. Irs amendments You can check the status of your refund on the new IRS phone app. Irs amendments Download the free IRS2Go app by visiting the iTunes app store or the Android Marketplace. Irs amendments IRS2Go is a new way to provide you with information and tools. Irs amendments To check the status of your refund by phone, call 1-800-829-4477 (automated refund information 24 hours a day, 7 days a week). Irs amendments Wait at least 72 hours after the IRS acknowledges receipt of your e-filed return, or 3 to 4 weeks after mailing a paper return. Irs amendments If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). Irs amendments Have your 2011 tax return available so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Irs amendments If you check the status of your refund and are not given the date it will be issued, please wait until the next week before checking back. Irs amendments Other refund information. Irs amendments To check the status of a prior-year refund or amended return refund, call 1-800-829-1040. Irs amendments Evaluating the quality of our telephone services. Irs amendments To ensure IRS representatives give accurate, courteous, and professional answers, we use several methods to evaluate the quality of our telephone services. Irs amendments One method is for a second IRS representative to listen in on or record random telephone calls. Irs amendments Another is to ask some callers to complete a short survey at the end of the call. Irs amendments Walk-in. Irs amendments Many products and services are available on a walk-in basis. Irs amendments   Products. Irs amendments You can walk in to many post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Irs amendments Some IRS offices, libraries, grocery stores, copy centers, city and county government offices, credit unions, and office supply stores have a collection of products available to print from a CD or photocopy from reproducible proofs. Irs amendments Also, some IRS offices and libraries have the Internal Revenue Code, regulations, Internal Revenue Bulletins, and Cumulative Bulletins available for research purposes. Irs amendments Services. Irs amendments You can walk in to your local Taxpayer Assistance Center every business day for personal, face-to-face tax help. Irs amendments An employee can explain IRS letters, request adjustments to your tax account, or help you set up a payment plan. Irs amendments If you need to resolve a tax problem, have questions about how the tax law applies to your individual tax return, or you are more comfortable talking with someone in person, visit your local Taxpayer Assistance Center where you can spread out your records and talk with an IRS representative face-to-face. Irs amendments No appointment is necessary—just walk in. Irs amendments If you prefer, you can call your local Center and leave a message requesting an appointment to resolve a tax account issue. Irs amendments A representative will call you back within 2 business days to schedule an in-person appointment at your convenience. Irs amendments If you have an ongoing, complex tax account problem or a special need, such as a disability, an appointment can be requested. Irs amendments All other issues will be handled without an appointment. Irs amendments To find the number of your local office, go to www. Irs amendments irs. Irs amendments gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. Irs amendments Mail. Irs amendments You can send your order for forms, instructions, and publications to the address below. Irs amendments You should receive a response within 10 days after your request is received. Irs amendments  Internal Revenue Service 1201 N. Irs amendments Mitsubishi Motorway Bloomington, IL 61705-6613 Taxpayer Advocate Service. Irs amendments   The Taxpayer Advocate Service (TAS) is your voice at the IRS. Irs amendments Our job is to ensure that every taxpayer is treated fairly, and that you know and understand your rights. Irs amendments We offer free help to guide you through the often-confusing process of resolving tax problems that you haven’t been able to solve on your own. Irs amendments Remember, the worst thing you can do is nothing at all. Irs amendments   TAS can help if you can’t resolve your problem with the IRS and: Your problem is causing financial difficulties for you, your family, or your business. Irs amendments You face (or your business is facing) an immediate threat of adverse action. Irs amendments You have tried repeatedly to contact the IRS but no one has responded, or the IRS has not responded to you by the date promised. Irs amendments   If you qualify for our help, we’ll do everything we can to get your problem resolved. Irs amendments You will be assigned to one advocate who will be with you at every turn. Irs amendments We have offices in every state, the District of Columbia, and Puerto Rico. Irs amendments Although TAS is independent within the IRS, our advocates know how to work with the IRS to get your problems resolved. Irs amendments And our services are always free. Irs amendments   As a taxpayer, you have rights that the IRS must abide by in its dealings with you. Irs amendments Our tax toolkit at www. Irs amendments TaxpayerAdvocate. Irs amendments irs. Irs amendments gov can help you understand these rights. Irs amendments   If you think TAS might be able to help you, call your local advocate, whose number is in your phone book and on our website at www. Irs amendments irs. Irs amendments gov/advocate. Irs amendments You can also call our toll-free number at 1-877-777-4778. Irs amendments   TAS also handles large-scale or systemic problems that affect many taxpayers. Irs amendments If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System at www. Irs amendments irs. Irs amendments gov/advocate. Irs amendments Low Income Taxpayer Clinics (LITCs). Irs amendments   Low Income Taxpayer Clinics (LITCs) are independent from the IRS. Irs amendments Some clinics serve individuals whose income is below a certain level and who need to resolve a tax problem. Irs amendments These clinics provide professional representation before the IRS or in court on audits, appeals, tax collection disputes, and other issues for free or for a small fee. Irs amendments Some clinics can provide information about taxpayer rights and responsibilities in many different languages for individuals who speak English as a second language. Irs amendments For more information and to find a clinic near you, see the LITC page on www. Irs amendments irs. Irs amendments gov/advocate or IRS Publication 4134, Low Income Taxpayer Clinic List. Irs amendments This publication is also available by calling 1-800-829-3676 or at your local IRS office. Irs amendments Free tax services. Irs amendments   Publication 910, IRS Guide to Free Tax Services, is your guide to IRS services and resources. Irs amendments Learn about free tax information from the IRS, including publications, services, and education and assistance programs. Irs amendments The publication also has an index of over 100 TeleTax topics (recorded tax information) you can listen to on the telephone. Irs amendments The majority of the information and services listed in this publication are available to you free of charge. Irs amendments If there is a fee associated with a resource or service, it is listed in the publication. Irs amendments   Accessible versions of IRS published products are available on request in a variety of alternative formats for people with disabilities. Irs amendments DVD for tax products. Irs amendments You can order Publication 1796, IRS Tax Products DVD, and obtain: Current-year forms, instructions, and publications. Irs amendments Prior-year forms, instructions, and publications. Irs amendments Tax Map: an electronic research tool and finding aid. Irs amendments Tax law frequently asked questions. Irs amendments Tax Topics from the IRS telephone response system. Irs amendments Internal Revenue Code—Title 26 of the U. Irs amendments S. Irs amendments Code. Irs amendments Links to other Internet based Tax Research Materials. Irs amendments Fill-in, print, and save features for most tax forms. Irs amendments Internal Revenue Bulletins. Irs amendments Toll-free and email technical support. Irs amendments Two releases during the year. Irs amendments  – The first release will ship the beginning of January. Irs amendments  – The final release will ship the beginning of March. Irs amendments Purchase the DVD from National Technical Information Service (NTIS) at www. Irs amendments irs. Irs amendments gov/cdorders for $30 (no handling fee) or call 1-877-233-6767 toll free to buy the DVD for $30 (plus a $6 handling fee). Irs amendments This image is too large to be displayed in the current screen. Irs amendments Please click the link to view the image. Irs amendments Fill-in Form 8300 Prev  Up  Next   Home   More Online Publications