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

TurboTax Federal Free Edition - File Taxes Online

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

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


© 2012 - 2018 All rights reserved.

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

Last Day To File Taxes 2013

1040ez Instructions 2011Blank Printable 1040ez FormFederal And State Taxes FreeIrs Free Tax FilingOnline Tax Filing 1040nrIrs Tax 1040ezDownload 1040ezTurbo TaxTurbo Tax Free File2013 1040ez Form InstructionsHow Do I Amend A Tax ReturnAmend My Taxes Free OnlineHow To File 2010 Taxes Online For FreeFree State Tax DownloadsHrblock OnlineIrs Tax Forms 2012Free Federal Tax Filing 2012Filing Amended Tax Return OnlineFiling Late Tax ReturnsMyfreetaxes Com RochestercashTurbo Tax 1040ezTax Tips For 2012Free Ez TaxMontana State Tax Form 2011Free E File 2013 Taxes10401040 Ez OnlineMypay Dfas Mil LoginIrs 1040ez 2011 Form1040ez Instructions 2012Www Irs Gov Form1040xFree E File Tax ExtensionTax Act 2011 ReturnInstructions For Form 1040xHr Block 20111040aEz1040 FormState Income Tax Return FormsIrs Form 1040x 2010File 2011 Tax Returns

Last Day To File Taxes 2013

Last day to file taxes 2013 7. Last day to file taxes 2013   Coverdell Education Savings Account (ESA) Table of Contents Introduction What Is a Coverdell ESAQualified Education Expenses ContributionsContribution Limits Additional Tax on Excess Contributions Rollovers and Other TransfersRollovers Changing the Designated Beneficiary Transfer Because of Divorce DistributionsTax-Free Distributions Taxable Distributions When Assets Must Be Distributed Introduction If your modified adjusted gross income (MAGI) is less than $110,000 ($220,000 if filing a joint return), you may be able to establish a Coverdell ESA to finance the qualified education expenses of a designated beneficiary. Last day to file taxes 2013 For most taxpayers, MAGI is the adjusted gross income as figured on their federal income tax return. Last day to file taxes 2013 There is no limit on the number of separate Coverdell ESAs that can be established for a designated beneficiary. Last day to file taxes 2013 However, total contributions for the beneficiary in any year cannot be more than $2,000, no matter how many accounts have been established. Last day to file taxes 2013 See Contributions , later. Last day to file taxes 2013 This benefit applies not only to higher education expenses, but also to elementary and secondary education expenses. Last day to file taxes 2013 What is the tax benefit of the Coverdell ESA. Last day to file taxes 2013   Contributions to a Coverdell ESA are not deductible, but amounts deposited in the account grow tax free until distributed. Last day to file taxes 2013   If, for a year, distributions from an account are not more than a designated beneficiary's qualified education expenses at an eligible educational institution, the beneficiary will not owe tax on the distributions. Last day to file taxes 2013 See Tax-Free Distributions , later. Last day to file taxes 2013    Table 7-1 summarizes the main features of the Coverdell ESA. Last day to file taxes 2013 Table 7-1. Last day to file taxes 2013 Coverdell ESA at a Glance Do not rely on this table alone. Last day to file taxes 2013 It provides only general highlights. Last day to file taxes 2013 See the text for definitions of terms in bold type and for more complete explanations. Last day to file taxes 2013 Question Answer What is a Coverdell ESA? A savings account that is set up to pay the qualified education expenses of a designated beneficiary. Last day to file taxes 2013 Where can it be established? It can be opened in the United States at any bank or other IRS-approved entity that offers Coverdell ESAs. Last day to file taxes 2013 Who can have a Coverdell ESA? Any beneficiary who is under age 18 or is a special needs beneficiary. Last day to file taxes 2013 Who can contribute to a Coverdell ESA? Generally, any individual (including the beneficiary) whose modified adjusted gross income for the year is less than $110,000 ($220,000 in the case of a joint return). Last day to file taxes 2013 Are distributions tax free? Yes, if the distributions are not more than the beneficiary's adjusted qualified education expenses for the year. Last day to file taxes 2013 What Is a Coverdell ESA A Coverdell ESA is a trust or custodial account created or organized in the United States only for the purpose of paying the qualified education expenses of the Designated beneficiary (defined later) of the account. Last day to file taxes 2013 When the account is established, the designated beneficiary must be under age 18 or a special needs beneficiary. Last day to file taxes 2013 To be treated as a Coverdell ESA, the account must be designated as a Coverdell ESA when it is created. Last day to file taxes 2013 The document creating and governing the account must be in writing and must satisfy the following requirements. Last day to file taxes 2013 The trustee or custodian must be a bank or an entity approved by the IRS. Last day to file taxes 2013 The document must provide that the trustee or custodian can only accept a contribution that meets all of the following conditions. Last day to file taxes 2013 The contribution is in cash. Last day to file taxes 2013 The contribution is made before the beneficiary reaches age 18, unless the beneficiary is a special needs beneficiary. Last day to file taxes 2013 The contribution would not result in total contributions for the year (not including rollover contributions) being more than $2,000. Last day to file taxes 2013 Money in the account cannot be invested in life insurance contracts. Last day to file taxes 2013 Money in the account cannot be combined with other property except in a common trust fund or common investment fund. Last day to file taxes 2013 The balance in the account generally must be distributed within 30 days after the earlier of the following events. Last day to file taxes 2013 The beneficiary reaches age 30, unless the beneficiary is a special needs beneficiary. Last day to file taxes 2013 The beneficiary's death. Last day to file taxes 2013 Qualified Education Expenses Generally, these are expenses required for the enrollment or attendance of the designated beneficiary at an eligible educational institution. Last day to file taxes 2013 For purposes of Coverdell ESAs, the expenses can be either qualified higher education expenses or qualified elementary and secondary education expenses. Last day to file taxes 2013 Designated beneficiary. Last day to file taxes 2013   This is the individual named in the document creating the trust or custodial account to receive the benefit of the funds in the account. Last day to file taxes 2013 Contributions to a qualified tuition program (QTP). Last day to file taxes 2013   A contribution to a QTP is a qualified education expense if the contribution is on behalf of the designated beneficiary of the Coverdell ESA. Last day to file taxes 2013 In the case of a change in beneficiary, this is a qualified expense only if the new beneficiary is a family member of that designated beneficiary. Last day to file taxes 2013 See chapter 8, Qualified Tuition Program . Last day to file taxes 2013 Eligible Educational Institution For purposes of Coverdell ESAs, an eligible educational institution can be either an eligible postsecondary school or an eligible elementary or secondary school. Last day to file taxes 2013 Eligible postsecondary school. Last day to file taxes 2013   This is any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the U. Last day to file taxes 2013 S. Last day to file taxes 2013 Department of Education. Last day to file taxes 2013 It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. Last day to file taxes 2013 The educational institution should be able to tell you if it is an eligible educational institution. Last day to file taxes 2013   Certain educational institutions located outside the United States also participate in the U. Last day to file taxes 2013 S. Last day to file taxes 2013 Department of Education's Federal Student Aid (FSA) programs. Last day to file taxes 2013 Eligible elementary or secondary school. Last day to file taxes 2013   This is any public, private, or religious school that provides elementary or secondary education (kindergarten through grade 12), as determined under state law. Last day to file taxes 2013 Qualified Higher Education Expenses These are expenses related to enrollment or attendance at an eligible postsecondary school. Last day to file taxes 2013 As shown in the following list, to be qualified, some of the expenses must be required by the school and some must be incurred by students who are enrolled at least half-time. Last day to file taxes 2013 The following expenses must be required for enrollment or attendance of a designated beneficiary at an eligible postsecondary school. Last day to file taxes 2013 Tuition and fees. Last day to file taxes 2013 Books, supplies, and equipment. Last day to file taxes 2013 Expenses for special needs services needed by a special needs beneficiary must be incurred in connection with enrollment or attendance at an eligible postsecondary school. Last day to file taxes 2013 Expenses for room and board must be incurred by students who are enrolled at least half-time (defined below). Last day to file taxes 2013 The expense for room and board qualifies only to the extent that it is not more than the greater of the following two amounts. Last day to file taxes 2013 The allowance for room and board, as determined by the school, that was included in the cost of attendance (for federal financial aid purposes) for a particular academic period and living arrangement of the student. Last day to file taxes 2013 The actual amount charged if the student is residing in housing owned or operated by the school. Last day to file taxes 2013 Half-time student. Last day to file taxes 2013   A student is enrolled “at least half-time” if he or she is enrolled for at least half the full-time academic work load for the course of study the student is pursuing, as determined under the standards of the school where the student is enrolled. Last day to file taxes 2013 Qualified Elementary and Secondary Education Expenses These are expenses related to enrollment or attendance at an eligible elementary or secondary school. Last day to file taxes 2013 As shown in the following list, to be qualified, some of the expenses must be required or provided by the school. Last day to file taxes 2013 There are special rules for computer-related expenses. Last day to file taxes 2013 The following expenses must be incurred by a designated beneficiary in connection with enrollment or attendance at an eligible elementary or secondary school. Last day to file taxes 2013 Tuition and fees. Last day to file taxes 2013 Books, supplies, and equipment. Last day to file taxes 2013 Academic tutoring. Last day to file taxes 2013 Special needs services for a special needs beneficiary. Last day to file taxes 2013 The following expenses must be required or provided by an eligible elementary or secondary school in connection with attendance or enrollment at the school. Last day to file taxes 2013 Room and board. Last day to file taxes 2013 Uniforms. Last day to file taxes 2013 Transportation. Last day to file taxes 2013 Supplementary items and services (including extended day programs). Last day to file taxes 2013 The purchase of computer technology, equipment, or Internet access and related services is a qualified elementary and secondary education expense if it is to be used by the beneficiary and the beneficiary's family during any of the years the beneficiary is in elementary or secondary school. Last day to file taxes 2013 (This does not include expenses for computer software designed for sports, games, or hobbies unless the software is predominantly educational in nature. Last day to file taxes 2013 ) Contributions Any individual (including the designated beneficiary) can contribute to a Coverdell ESA if the individual's MAGI (defined later under Contribution Limits ) for the year is less than $110,000. Last day to file taxes 2013 For individuals filing joint returns, that amount is $220,000. Last day to file taxes 2013 Organizations, such as corporations and trusts, can also contribute to Coverdell ESAs. Last day to file taxes 2013 There is no requirement that an organization's income be below a certain level. Last day to file taxes 2013 Contributions must meet all of the following requirements. Last day to file taxes 2013 They must be in cash. Last day to file taxes 2013 They cannot be made after the beneficiary reaches age 18, unless the beneficiary is a special needs beneficiary. Last day to file taxes 2013 They must be made by the due date of the contributor's tax return (not including extensions). Last day to file taxes 2013 Contributions can be made to one or several Coverdell ESAs for the same designated beneficiary provided that the total contributions are not more than the contribution limits (defined later) for a year. Last day to file taxes 2013 Contributions can be made, without penalty, to both a Coverdell ESA and a QTP in the same year for the same beneficiary. Last day to file taxes 2013 Table 7-2 summarizes many of the features of contributing to a Coverdell ESA. Last day to file taxes 2013 When contributions considered made. Last day to file taxes 2013   Contributions made to a Coverdell ESA for the preceding tax year are considered to have been made on the last day of the preceding year. Last day to file taxes 2013 They must be made by the due date (not including extensions) for filing your return for the preceding year. Last day to file taxes 2013   For example, if you make a contribution to a Coverdell ESA in February 2014, and you designate it as a contribution for 2013, you are considered to have made that contribution on December 31, 2013. Last day to file taxes 2013 Contribution Limits There are two yearly limits: One on the total amount that can be contributed for each designated beneficiary in any year, and One on the amount that any individual can contribute for any one designated beneficiary for a year. Last day to file taxes 2013 Limit for each designated beneficiary. Last day to file taxes 2013   For 2013, the total of all contributions to all Coverdell ESAs set up for the benefit of any one designated beneficiary cannot be more than $2,000. Last day to file taxes 2013 This includes contributions (other than rollovers) to all the beneficiary's Coverdell ESAs from all sources. Last day to file taxes 2013 Rollovers are discussed under Rollovers and Other Transfers , later. Last day to file taxes 2013 Example. Last day to file taxes 2013 When Maria Luna was born in 2012, three separate Coverdell ESAs were set up for her, one by her parents, one by her grandfather, and one by her aunt. Last day to file taxes 2013 In 2013, the total of all contributions to Maria's three Coverdell ESAs cannot be more than $2,000. Last day to file taxes 2013 For example, if her grandfather contributed $2,000 to one of her Coverdell ESAs, no one else could contribute to any of her three accounts. Last day to file taxes 2013 Or, if her parents contributed $1,000 and her aunt $600, her grandfather or someone else could contribute no more than $400. Last day to file taxes 2013 These contributions could be put into any of Maria's Coverdell ESA accounts. Last day to file taxes 2013 Limit for each contributor. Last day to file taxes 2013   Generally, you can contribute up to $2,000 for each designated beneficiary for 2013. Last day to file taxes 2013 This is the most you can contribute for the benefit of any one beneficiary for the year, regardless of the number of Coverdell ESAs set up for the beneficiary. Last day to file taxes 2013 Example. Last day to file taxes 2013 The facts are the same as in the previous example except that Maria Luna's older brother, Edgar, also has a Coverdell ESA. Last day to file taxes 2013 If their grandfather contributed $2,000 to Maria's Coverdell ESA in 2013, he could also contribute $2,000 to Edgar's Coverdell ESA. Last day to file taxes 2013 Reduced limit. Last day to file taxes 2013   Your contribution limit may be reduced. Last day to file taxes 2013 If your MAGI (defined on this page) is between $95,000 and $110,000 (between $190,000 and $220,000 if filing a joint return), the $2,000 limit for each designated beneficiary is gradually reduced (see Figuring the limit , later). Last day to file taxes 2013 If your MAGI is $110,000 or more ($220,000 or more if filing a joint return), you cannot contribute to anyone's Coverdell ESA. Last day to file taxes 2013 Table 7-2. Last day to file taxes 2013 Coverdell ESA Contributions at a Glance Do not rely on this table alone. Last day to file taxes 2013 It provides only general highlights. Last day to file taxes 2013 See the text for more complete explanations. Last day to file taxes 2013 Question Answer Are contributions deductible? No. Last day to file taxes 2013 What is the annual contribution limit per designated beneficiary? $2,000 for each designated beneficiary. Last day to file taxes 2013 What if more than one Coverdell ESA has been opened for the same designated beneficiary? The annual contribution limit is $2,000 for each beneficiary, no matter how many Coverdell ESAs are set up for that beneficiary. Last day to file taxes 2013 What if more than one individual makes contributions for the same designated beneficiary? The annual contribution limit is $2,000 per beneficiary, no matter how many individuals contribute. Last day to file taxes 2013 Can contributions other than cash be made to a Coverdell ESA? No. Last day to file taxes 2013 When must contributions stop? No contributions can be made to a beneficiary's Coverdell ESA after he or she reaches age 18, unless the beneficiary is a special needs beneficiary. Last day to file taxes 2013 Modified adjusted gross income (MAGI). Last day to file taxes 2013   For most taxpayers, MAGI is adjusted gross income (AGI) as figured on their federal income tax return. Last day to file taxes 2013 MAGI when using Form 1040A. Last day to file taxes 2013   If you file Form 1040A, your MAGI is the AGI on line 22 of that form. Last day to file taxes 2013 MAGI when using Form 1040. Last day to file taxes 2013   If you file Form 1040, your MAGI is the AGI on line 38 of that form, modified by adding back any: Foreign earned income exclusion, Foreign housing exclusion, Foreign housing deduction, Exclusion of income by bona fide residents of American Samoa, and Exclusion of income by bona fide residents of Puerto Rico. Last day to file taxes 2013 MAGI when using Form 1040NR. Last day to file taxes 2013   If you file Form 1040NR, your MAGI is the AGI on line 36 of that form. Last day to file taxes 2013 MAGI when using Form 1040NR-EZ. Last day to file taxes 2013   If you file Form 1040NR-EZ, your MAGI is the AGI on line 10 of that form. Last day to file taxes 2013   If you have any of these adjustments, you can use Worksheet 7-1. Last day to file taxes 2013 MAGI for a Coverdell ESA , later, to figure your MAGI for Form 1040. Last day to file taxes 2013 Worksheet 7-1. Last day to file taxes 2013 MAGI for a Coverdell ESA 1. Last day to file taxes 2013 Enter your adjusted gross income  (Form 1040, line 38)   1. Last day to file taxes 2013   2. Last day to file taxes 2013 Enter your foreign earned income exclusion and/or housing exclusion (Form 2555, line 45, or Form 2555-EZ, line 18)   2. Last day to file taxes 2013       3. Last day to file taxes 2013 Enter your foreign housing deduction (Form 2555, line 50)   3. Last day to file taxes 2013         4. Last day to file taxes 2013 Enter the amount of income from Puerto Rico you are excluding   4. Last day to file taxes 2013       5. Last day to file taxes 2013 Enter the amount of income from American Samoa you are excluding (Form 4563, line 15)   5. Last day to file taxes 2013       6. Last day to file taxes 2013 Add lines 2, 3, 4, and 5   6. Last day to file taxes 2013   7. Last day to file taxes 2013 Add lines 1 and 6. Last day to file taxes 2013 This is your  modified adjusted gross income   7. Last day to file taxes 2013   Figuring the limit. Last day to file taxes 2013    To figure the limit on the amount you can contribute for each designated beneficiary, multiply $2,000 by a fraction. Last day to file taxes 2013 The numerator (top number) is your MAGI minus $95,000 ($190,000 if filing a joint return). Last day to file taxes 2013 The denominator (bottom number) is $15,000 ($30,000 if filing a joint return). Last day to file taxes 2013 Subtract the result from $2,000. Last day to file taxes 2013 This is the amount you can contribute for each beneficiary. Last day to file taxes 2013 You can use Worksheet 7-2. Last day to file taxes 2013 Coverdell ESA Contribution Limit to figure the limit on contributions. Last day to file taxes 2013    Worksheet 7-2. Last day to file taxes 2013 Coverdell ESA Contribution Limit 1. Last day to file taxes 2013 Maximum contribution   1. Last day to file taxes 2013 $2,000 2. Last day to file taxes 2013 Enter your modified adjusted gross income (MAGI) for purposes of figuring the contribution limit to a Coverdell ESA (see definition or Worksheet 7-1, earlier)   2. Last day to file taxes 2013   3. Last day to file taxes 2013 Enter $190,000 if married filing jointly; $95,000 for all other filers   3. Last day to file taxes 2013   4. Last day to file taxes 2013 Subtract line 3 from line 2. Last day to file taxes 2013 If zero or less, enter -0- on line 4, skip lines 5 through 7, and enter $2,000 on line 8   4. Last day to file taxes 2013   5. Last day to file taxes 2013 Enter $30,000 if married filing jointly; $15,000 for all other filers   5. Last day to file taxes 2013     Note. Last day to file taxes 2013 If the amount on line 4 is greater than or equal to the amount on line 5, stop here. Last day to file taxes 2013 You are not allowed to contribute to a Coverdell ESA for 2013. Last day to file taxes 2013       6. Last day to file taxes 2013 Divide line 4 by line 5 and enter the result as a decimal (rounded to at least 3 places)   6. Last day to file taxes 2013 . Last day to file taxes 2013 7. Last day to file taxes 2013 Multiply line 1 by line 6   7. Last day to file taxes 2013   8. Last day to file taxes 2013 Subtract line 7 from line 1   8. Last day to file taxes 2013   Note: The total Coverdell ESA contributions from all sources for the designated beneficiary during the tax year may not exceed $2,000. Last day to file taxes 2013 Example. Last day to file taxes 2013 Paul, who is single, had a MAGI of $96,500 for 2013. Last day to file taxes 2013 Paul can contribute up to $1,800 in 2013 for each beneficiary, as shown in the illustrated Worksheet 7-2, Coverdell ESA Contribution Limit–Illustrated. Last day to file taxes 2013 Worksheet 7-2. Last day to file taxes 2013 Coverdell ESA Contribution Limit—Illustrated 1. Last day to file taxes 2013 Maximum contribution   1. Last day to file taxes 2013 $2,000 2. Last day to file taxes 2013 Enter your modified adjusted gross  income (MAGI) for purposes of figuring the contribution limit to a Coverdell ESA (see definition or Worksheet 7-1, earlier)   2. Last day to file taxes 2013 96,500 3. Last day to file taxes 2013 Enter $190,000 if married filing jointly; $95,000 for all other filers   3. Last day to file taxes 2013 95,000 4. Last day to file taxes 2013 Subtract line 3 from line 2. Last day to file taxes 2013 If zero or less, enter -0- on line 4, skip lines 5 through 7, and enter $2,000 on line 8   4. Last day to file taxes 2013 1,500 5. Last day to file taxes 2013 Enter $30,000 if married filing jointly; $15,000 for all other filers   5. Last day to file taxes 2013 15,000   Note. Last day to file taxes 2013 If the amount on line 4 is greater than or equal to the amount on line 5,  stop here. Last day to file taxes 2013 You are not allowed to  contribute to a Coverdell ESA for 2013. Last day to file taxes 2013       6. Last day to file taxes 2013 Divide line 4 by line 5 and enter the result as a decimal (rounded to at least 3 places)   6. Last day to file taxes 2013 . Last day to file taxes 2013 100 7. Last day to file taxes 2013 Multiply line 1 by line 6   7. Last day to file taxes 2013 200 8. Last day to file taxes 2013 Subtract line 7 from line 1   8. Last day to file taxes 2013 1,800 Note: The total Coverdell ESA contributions from all sources for the designated beneficiary during the tax year may not exceed $2,000. Last day to file taxes 2013 Additional Tax on Excess Contributions The beneficiary must pay a 6% excise tax each year on excess contributions that are in a Coverdell ESA at the end of the year. Last day to file taxes 2013 Excess contributions are the total of the following two amounts. Last day to file taxes 2013 Contributions to any designated beneficiary's Coverdell ESA for the year that are more than $2,000 (or, if less, the total of each contributor's limit for the year, as discussed earlier). Last day to file taxes 2013 Excess contributions for the preceding year, reduced by the total of the following two amounts: Distributions (other than those rolled over as discussed later) during the year, and The contribution limit for the current year minus the amount contributed for the current year. Last day to file taxes 2013 Exceptions. Last day to file taxes 2013   The excise tax does not apply if excess contributions made during 2013 (and any earnings on them) are distributed before the first day of the sixth month of the following tax year (June 1, 2014, for a calendar year taxpayer). Last day to file taxes 2013   However, you must include the distributed earnings in gross income for the year in which the excess contribution was made. Last day to file taxes 2013 You should receive Form 1099-Q, Payments From Qualified Education Programs, from each institution from which excess contributions were distributed. Last day to file taxes 2013 Box 2 of that form will show the amount of earnings on your excess contributions. Last day to file taxes 2013 Code “2” or “3” entered in the blank box below boxes 5 and 6 indicate the year in which the earnings are taxable. Last day to file taxes 2013 See Instructions for Recipient on the back of copy B of your Form 1099-Q. Last day to file taxes 2013 Enter the amount of earnings on line 21 of Form 1040 (or Form 1040NR) for the applicable tax year. Last day to file taxes 2013 For more information, see Taxable Distributions , later. Last day to file taxes 2013   The excise tax does not apply to any rollover contribution. Last day to file taxes 2013 Note. Last day to file taxes 2013 Contributions made in one year for the preceding tax year are considered to have been made on the last day of the preceding year. Last day to file taxes 2013 Example. Last day to file taxes 2013 In 2012, Greta's parents and grandparents contributed a total of $2,300 to Greta's Coverdell ESA— an excess contribution of $300. Last day to file taxes 2013 Because Greta did not withdraw the excess before June 1, 2013, she had to pay an additional tax of $18 (6% × $300) when she filed her 2012 tax return. Last day to file taxes 2013 In 2013, excess contributions of $500 were made to Greta's account, however, she withdrew $250 from that account to use for qualified education expenses. Last day to file taxes 2013 Using the steps shown earlier under Additional Tax on Excess Contributions , Greta figures the excess contribution in her account at the end of 2013 as follows. Last day to file taxes 2013 (1)   $500 excess contributions made in 2013     + (2)   $300 excess contributions in ESA at end of 2012     − (2a)   $250 distribution during 2013         $550 excess at end of 2013   × 6%=$33           If Greta limits 2014 contributions to $1,450 ($2,000 maximum allowed − $550 excess contributions from 2013), she will not owe any additional tax in 2014 for excess contributions. Last day to file taxes 2013 Figuring and reporting the additional tax. Last day to file taxes 2013   You figure this excise tax in Part V of Form 5329. Last day to file taxes 2013 Report the additional tax on Form 1040, line 58 (or Form 1040NR, line 56). Last day to file taxes 2013 Rollovers and Other Transfers Assets can be rolled over from one Coverdell ESA to another or the designated beneficiary can be changed. Last day to file taxes 2013 The beneficiary's interest can be transferred to a spouse or former spouse because of divorce. Last day to file taxes 2013 Rollovers Any amount distributed from a Coverdell ESA is not taxable if it is rolled over to another Coverdell ESA for the benefit of the same beneficiary or a member of the beneficiary's family (including the beneficiary's spouse) who is under age 30. Last day to file taxes 2013 This age limitation does not apply if the new beneficiary is a special needs beneficiary. Last day to file taxes 2013 An amount is rolled over if it is paid to another Coverdell ESA within 60 days after the date of the distribution. Last day to file taxes 2013 Do not report qualifying rollovers (those that meet the above criteria) anywhere on Form 1040 or 1040NR. Last day to file taxes 2013 These are not taxable distributions. Last day to file taxes 2013 Members of the beneficiary's family. Last day to file taxes 2013   For these purposes, the beneficiary's family includes the beneficiary's spouse and the following other relatives of the beneficiary. Last day to file taxes 2013 Son, daughter, stepchild, foster child, adopted child, or a descendant of any of them. Last day to file taxes 2013 Brother, sister, stepbrother, or stepsister. Last day to file taxes 2013 Father or mother or ancestor of either. Last day to file taxes 2013 Stepfather or stepmother. Last day to file taxes 2013 Son or daughter of a brother or sister. Last day to file taxes 2013 Brother or sister of father or mother. Last day to file taxes 2013 Son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law. Last day to file taxes 2013 The spouse of any individual listed above. Last day to file taxes 2013 First cousin. Last day to file taxes 2013 Example. Last day to file taxes 2013 When Aaron graduated from college last year he had $5,000 left in his Coverdell ESA. Last day to file taxes 2013 He wanted to give this money to his younger sister, who was still in high school. Last day to file taxes 2013 In order to avoid paying tax on the distribution of the amount remaining in his account, Aaron contributed the same amount to his sister's Coverdell ESA within 60 days of the distribution. Last day to file taxes 2013 Only one rollover per Coverdell ESA is allowed during the 12-month period ending on the date of the payment or distribution. Last day to file taxes 2013 This rule does not apply to the rollover of a military death gratuity or payment from Servicemembers' Group Life Insurance (SGLI). Last day to file taxes 2013 Military death gratuity. Last day to file taxes 2013   If you received a military death gratuity or a payment from Servicemembers' Group Life Insurance (SGLI), you may roll over all or part of the amount received to one or more Coverdell ESAs for the benefit of members of the beneficiary's family (see Members of the beneficiary's family , earlier). Last day to file taxes 2013 Such payments are made to an eligible survivor upon the death of a member of the armed forces. Last day to file taxes 2013 The contribution to a Coverdell ESA from survivor benefits received cannot be made later than 1 year after the date on which you receive the gratuity or SGLI payment. Last day to file taxes 2013   This rollover contribution is not subject to (but is in addition to) the contribution limits discussed earlier under Contribution Limits . Last day to file taxes 2013 The amount you roll over cannot exceed the total survivor benefits you received, reduced by contributions from these benefits to a Roth IRA or other Coverdell ESAs. Last day to file taxes 2013   The amount contributed from the survivor benefits is treated as part of your basis (cost) in the Coverdell ESA, and will not be taxed when distributed. Last day to file taxes 2013 See Distributions , later. Last day to file taxes 2013 The limit of one rollover per Coverdell ESA during a 12-month period does not apply to a military death gratuity or SGLI payment. Last day to file taxes 2013 Changing the Designated Beneficiary The designated beneficiary can be changed. Last day to file taxes 2013 See Members of the beneficiary's family , earlier. Last day to file taxes 2013 There are no tax consequences if, at the time of the change, the new beneficiary is under age 30 or is a special needs beneficiary. Last day to file taxes 2013 Example. Last day to file taxes 2013 Assume the same situation for Aaron as in the last example (see Rollovers , earlier). Last day to file taxes 2013 Instead of closing his Coverdell ESA and paying the distribution into his sister's Coverdell ESA, Aaron could have instructed the trustee of his account to simply change the name of the beneficiary on his account to that of his sister. Last day to file taxes 2013 Transfer Because of Divorce If a spouse or former spouse receives a Coverdell ESA under a divorce or separation instrument, it is not a taxable transfer. Last day to file taxes 2013 After the transfer, the spouse or former spouse treats the Coverdell ESA as his or her own. Last day to file taxes 2013 Example. Last day to file taxes 2013 In their divorce settlement, Peg received her ex-husband's Coverdell ESA. Last day to file taxes 2013 In this process, the account was transferred into her name. Last day to file taxes 2013 Peg now treats the funds in this Coverdell ESA as if she were the original owner. Last day to file taxes 2013 Distributions The designated beneficiary of a Coverdell ESA can take a distribution at any time. Last day to file taxes 2013 Whether the distributions are tax free depends, in part, on whether the distributions are equal to or less than the amount of Adjusted qualified education expenses (defined later) that the beneficiary has in the same tax year. Last day to file taxes 2013 See Table 7-3, Coverdell ESA Distributions at a Glance, for highlights. Last day to file taxes 2013 Table 7-3. Last day to file taxes 2013 Coverdell ESA Distributions at a Glance Do not rely on this table alone. Last day to file taxes 2013 It provides only general highlights. Last day to file taxes 2013 See the text for definitions of terms in bold type and for more complete explanations. Last day to file taxes 2013 Question Answer Is a distribution from a Coverdell ESA to pay for a designated beneficiary's qualified education expenses tax free? Generally, yes, to the extent the amount of the distribution is not more than the designated beneficiary's adjusted qualified education expenses. Last day to file taxes 2013 After the designated beneficiary completes his or her education at an eligible educational institution, can amounts remaining in the Coverdell ESA be distributed? Yes. Last day to file taxes 2013 Amounts must be distributed when the designated beneficiary reaches age 30, unless he or she is a special needs beneficiary. Last day to file taxes 2013 Also, certain transfers to members of the beneficiary's family are permitted. Last day to file taxes 2013 Does the designated beneficiary need to be enrolled for a minimum number of courses to take a tax-free distribution? No. Last day to file taxes 2013 Adjusted qualified education expenses. Last day to file taxes 2013   To determine if total distributions for the year are more than the amount of qualified education expenses, reduce total qualified education expenses by any tax-free educational assistance. Last day to file taxes 2013 Tax-free educational assistance includes: The tax-free part of scholarships and fellowships (see Tax-Free Scholarships and Fellowships in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Veterans' educational assistance (see Veterans' Benefits in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Pell grants (see Pell Grants and Other Title IV Need-Based Education Grants in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Employer-provided educational assistance (see chapter 11, Employer-Provided Educational Assistance ), and Any other nontaxable (tax-free) payments (other than gifts or inheritances) received as educational assistance. Last day to file taxes 2013 The amount you get by subtracting tax-free educational assistance from your total qualified education expenses is your adjusted qualified education expenses. Last day to file taxes 2013 Tax-Free Distributions Generally, distributions are tax free if they are not more than the beneficiary's adjusted qualified education expenses for the year. Last day to file taxes 2013 Do not report tax-free distributions (including qualifying rollovers) on your tax return. Last day to file taxes 2013 Taxable Distributions A portion of the distributions is generally taxable to the beneficiary if the total distributions are more than the beneficiary's adjusted qualified education expenses for the year. Last day to file taxes 2013 Excess distribution. Last day to file taxes 2013   This is the part of the total distribution that is more than the beneficiary's adjusted qualified education expenses for the year. Last day to file taxes 2013 Earnings and basis. Last day to file taxes 2013   You will receive a Form 1099-Q for each of the Coverdell ESAs from which money was distributed in 2013. Last day to file taxes 2013 The amount of your gross distribution will be shown in box 1. Last day to file taxes 2013 For 2013, instead of dividing the gross distribution between your earnings (box 2) and your basis (already-taxed amount) (box 3), the payer or trustee may report the fair market value (account balance) of the Coverdell ESA as of December 31, 2013. Last day to file taxes 2013 This will be shown in the blank box below boxes 5 and 6. Last day to file taxes 2013   The amount contributed from survivor benefits (see Military death gratuity , earlier) is treated as part of your basis and will not be taxed when distributed. Last day to file taxes 2013 Figuring the Taxable Portion of a Distribution The taxable portion is the amount of the excess distribution that represents earnings that have accumulated tax free in the account. Last day to file taxes 2013 Figure the taxable portion for 2013 as shown in the following steps. Last day to file taxes 2013 Multiply the total amount distributed by a fraction. Last day to file taxes 2013 The numerator is the basis (contributions not previously distributed) at the end of 2012 plus total contributions for 2013 and the denominator is the value (balance) of the account at the end of 2013 plus the amount distributed during 2013. Last day to file taxes 2013 Subtract the amount figured in (1) from the total amount distributed during 2013. Last day to file taxes 2013 The result is the amount of earnings included in the distribution(s). Last day to file taxes 2013 Multiply the amount of earnings figured in (2) by a fraction. Last day to file taxes 2013 The numerator is the adjusted qualified education expenses paid during 2013 and the denominator is the total amount distributed during 2013. Last day to file taxes 2013 Subtract the amount figured in (3) from the amount figured in (2). Last day to file taxes 2013 The result is the amount the beneficiary must include in income. Last day to file taxes 2013 The taxable amount must be reported on Form 1040 or Form 1040NR, line 21. Last day to file taxes 2013 Example. Last day to file taxes 2013 You received an $850 distribution from your Coverdell ESA, to which $1,500 had been contributed before 2013. Last day to file taxes 2013 There were no contributions in 2013. Last day to file taxes 2013 This is your first distribution from the account, so your basis in the account on December 31, 2012, was $1,500. Last day to file taxes 2013 The value (balance) of your account on December 31, 2013, was $950. Last day to file taxes 2013 You had $700 of adjusted qualified education expenses (AQEE) for the year. Last day to file taxes 2013 Using the steps in Figuring the Taxable Portion of a Distribution , earlier, figure the taxable portion of your distribution as follows. Last day to file taxes 2013   1. Last day to file taxes 2013 $850 (distribution) × $1,500 basis + $0 contributions  $950 value + $850 distribution       =$708 (basis portion of distribution)     2. Last day to file taxes 2013 $850 (distribution)−$708 (basis portion of distribution)     =$142 (earnings included in distribution)   3. Last day to file taxes 2013 $142 (earnings) × $700 AQEE  $850 distribution           =$117 (tax-free earnings)     4. Last day to file taxes 2013 $142 (earnings)−$117 (tax-free earnings)=$25 (taxable earnings)                 You must include $25 in income as distributed earnings not used for qualified education expenses. Last day to file taxes 2013 Report this amount on Form 1040, line 21, listing the type and amount of income on the dotted line. Last day to file taxes 2013 Worksheet 7-3, Coverdell ESA–Taxable Distributions and Basis , at the end of this chapter, can help you figure your adjusted qualified education expenses, how much of your distribution must be included in income, and the remaining basis in your Coverdell ESA(s). Last day to file taxes 2013 Coordination With American Opportunity and Lifetime Learning Credits The American opportunity or lifetime learning credit can be claimed in the same year the beneficiary takes a tax-free distribution from a Coverdell ESA, as long as the same expenses are not used for both benefits. Last day to file taxes 2013 This means the beneficiary must reduce qualified higher education expenses by tax-free educational assistance, and then further reduce them by any expenses taken into account in determining an American opportunity or lifetime learning credit. Last day to file taxes 2013 Example. Last day to file taxes 2013 Derek Green had $5,800 of qualified higher education expenses for 2013, his first year in college. Last day to file taxes 2013 He paid his college expenses from the following sources. Last day to file taxes 2013     Partial tuition scholarship (tax free) $1,500     Coverdell ESA distribution 1,000     Gift from parents 2,100     Earnings from part-time job 1,200           Of his $5,800 of qualified higher education expenses, $4,000 was tuition and related expenses that also qualified for an American opportunity credit. Last day to file taxes 2013 Derek's parents claimed a $2,500 American opportunity credit (based on $4,000 expenses) on their tax return. Last day to file taxes 2013 Before Derek can determine the taxable portion of his Coverdell ESA distribution, he must reduce his total qualified higher education expenses. Last day to file taxes 2013     Total qualified higher education expenses $5,800     Minus: Tax-free educational assistance −1,500     Minus: Expenses taken into account in  figuring American opportunity credit − 4,000     Equals: Adjusted qualified higher education  expenses (AQHEE) $ 300           Since the adjusted qualified higher education expenses ($300) are less than the Coverdell ESA distribution ($1,000), part of the distribution will be taxable. Last day to file taxes 2013 The balance in Derek's account was $1,800 on December 31, 2013. Last day to file taxes 2013 Prior to 2013, $2,100 had been contributed to this account. Last day to file taxes 2013 Contributions for 2013 totaled $400. Last day to file taxes 2013 Using the four steps outlined earlier, Derek figures the taxable portion of his distribution as shown below. Last day to file taxes 2013   1. Last day to file taxes 2013 $1,000 (distribution) × $2,100 basis + $400 contributions  $1,800 value + $1,000 distribution           =$893 (basis portion of distribution)     2. Last day to file taxes 2013 $1,000 (distribution)−$893 (basis portion of distribution)     = $107 (earnings included in distribution)   3. Last day to file taxes 2013 $107 (earnings) × $300 AQHEE  $1,000 distribution       =$32 (tax-free earnings)     4. Last day to file taxes 2013 $107 (earnings)−$32 (tax-free earnings)=$75 (taxable earnings)                 Derek must include $75 in income (Form 1040, line 21). Last day to file taxes 2013 This is the amount of distributed earnings not used for adjusted qualified higher education expenses. Last day to file taxes 2013 Coordination With Qualified Tuition Program (QTP) Distributions If a designated beneficiary receives distributions from both a Coverdell ESA and a QTP in the same year, and the total distribution is more than the beneficiary's adjusted qualified higher education expenses, those expenses must be allocated between the distribution from the Coverdell ESA and the distribution from the QTP before figuring how much of each distribution is taxable. Last day to file taxes 2013 The following two examples illustrate possible allocations. Last day to file taxes 2013 Example 1. Last day to file taxes 2013 In 2013, Beatrice graduated from high school and began her first semester of college. Last day to file taxes 2013 That year, she had $1,000 of qualified elementary and secondary education expenses (QESEE) for high school and $3,000 of qualified higher education expenses (QHEE) for college. Last day to file taxes 2013 To pay these expenses, Beatrice withdrew $800 from her Coverdell ESA and $4,200 from her QTP. Last day to file taxes 2013 No one claimed Beatrice as a dependent, nor was she eligible for an education credit. Last day to file taxes 2013 She did not receive any tax-free educational assistance in 2013. Last day to file taxes 2013 Beatrice must allocate her total qualified education expenses between the two distributions. Last day to file taxes 2013 Beatrice knows that tax-free treatment will be available if she applies her $800 Coverdell ESA distribution toward her $1,000 of qualified education expenses for high school. Last day to file taxes 2013 The qualified expenses are greater than the distribution, making the $800 Coverdell ESA distribution tax free. Last day to file taxes 2013 Next, Beatrice matches her $4,200 QTP distribution to her $3,000 of QHEE, and finds she has an excess QTP distribution of $1,200 ($4,200 QTP − $3,000 QHEE). Last day to file taxes 2013 She cannot use the extra $200 of high school expenses (from (1) above) against the QTP distribution because those expenses do not qualify a QTP for tax-free treatment. Last day to file taxes 2013 Finally, Beatrice figures the taxable and tax-free portions of her QTP distribution based on her $3,000 of QHEE. Last day to file taxes 2013 (See Figuring the Taxable Portion of a Distribution in chapter 8, Qualified Tuition Program for more information. Last day to file taxes 2013 ) Example 2. Last day to file taxes 2013 Assume the same facts as in Example 1 , except that Beatrice withdrew $1,800 from her Coverdell ESA and $3,200 from her QTP. Last day to file taxes 2013 In this case, she allocates her qualified education expenses as follows. Last day to file taxes 2013 Using the same reasoning as in Example 1, Beatrice matches $1,000 of her Coverdell ESA distribution to her $1,000 of QESEE—she has $800 of her distribution remaining. Last day to file taxes 2013 Because higher education expenses can also qualify a Coverdell ESA distribution for tax-free treatment, Beatrice allocates her $3,000 of QHEE between the remaining $800 Coverdell ESA and the $3,200 QTP distributions ($4,000 total). Last day to file taxes 2013   $3,000 QHEE × $800 ESA distribution  $4,000 total distribution = $600 QHEE (ESA)     $3,000 QHEE × $3,200 QTP distribution  $4,000 total distribution = $2,400 QHEE (QTP)   Beatrice then figures the taxable part of her: Coverdell ESA distribution based on qualified education expenses of $1,600 ($1,000 QESEE + $600 QHEE). Last day to file taxes 2013 See Figuring the Taxable Portion of a Distribution , earlier, in this chapter. Last day to file taxes 2013   QTP distribution based on her $2,400 of QHEE (see Figuring the Taxable Portion of a Distribution in chapter 8, Qualified Tuition Program). Last day to file taxes 2013 The above examples show two types of allocation between distributions from a Coverdell ESA and a QTP. Last day to file taxes 2013 However, you do not have to allocate your expenses in the same way. Last day to file taxes 2013 You can use any reasonable method. Last day to file taxes 2013 Losses on Coverdell ESA Investments If you have a loss on your investment in a Coverdell ESA, you may be able to deduct the loss on your income tax return. Last day to file taxes 2013 You can deduct the loss only when all amounts from that account have been distributed and the total distributions are less than your unrecovered basis. Last day to file taxes 2013 Your basis is the total amount of contributions to that Coverdell ESA. Last day to file taxes 2013 You claim the loss as a miscellaneous itemized deduction on Schedule A (Form 1040), line 23 (Schedule A (Form 1040NR), line 9), subject to the 2%-of-adjusted-gross-income limit. Last day to file taxes 2013 If you have distributions from more than one Coverdell ESA account during a year, you must combine the information (amount of distribution, basis, etc. Last day to file taxes 2013 ) from all such accounts in order to determine your taxable earnings for the year. Last day to file taxes 2013 By doing this, the loss from one ESA account reduces the distributed earnings (if any) from any other ESA account. Last day to file taxes 2013 For examples of the calculation, see Losses on QTP Investments in chapter 8, Qualified Tuition Program. Last day to file taxes 2013 Additional Tax on Taxable Distributions Generally, if you receive a taxable distribution, you also must pay a 10% additional tax on the amount included in income. Last day to file taxes 2013 Exceptions. Last day to file taxes 2013   The 10% additional tax does not apply to distributions: Paid to a beneficiary (or to the estate of the designated beneficiary) on or after the death of the designated beneficiary. Last day to file taxes 2013 Made because the designated beneficiary is disabled. Last day to file taxes 2013 A person is considered to be disabled if he or she shows proof that he or she cannot do any substantial gainful activity because of his or her physical or mental condition. Last day to file taxes 2013 A physician must determine that his or her condition can be expected to result in death or to be of long-continued and indefinite duration. Last day to file taxes 2013 Included in income because the designated beneficiary received: A tax-free scholarship or fellowship (see Tax-Free Scholarships and Fellowships in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Veterans' educational assistance (see Veterans' Benefits in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Employer-provided educational assistance (see chapter 11, Employer-Provided Educational Assistance ), or Any other nontaxable (tax-free) payments (other than gifts or inheritances) received as educational assistance. Last day to file taxes 2013 Made on account of the attendance of the designated beneficiary at a U. Last day to file taxes 2013 S. Last day to file taxes 2013 military academy (such as the USMA at West Point). Last day to file taxes 2013 This exception applies only to the extent that the amount of the distribution does not exceed the costs of advanced education (as defined in section 2005(d)(3) of title 10 of the U. Last day to file taxes 2013 S. Last day to file taxes 2013 Code) attributable to such attendance. Last day to file taxes 2013 Included in income only because the qualified education expenses were taken into account in determining the American opportunity or lifetime learning credit (see Coordination With American Opportunity and Lifetime Learning Credits , earlier). Last day to file taxes 2013 Made before June 1, 2014, of an excess 2013 contribution (and any earnings on it). Last day to file taxes 2013 The distributed earnings must be included in gross income for the year in which the excess contribution was made. Last day to file taxes 2013 Exception (3) applies only to the extent the distribution is not more than the scholarship, allowance, or payment. Last day to file taxes 2013 Figuring the additional tax. Last day to file taxes 2013    Use Part II of Form 5329, to figure any additional tax. Last day to file taxes 2013 Report the amount on Form 1040, line 58, or Form 1040NR, line 56. Last day to file taxes 2013 When Assets Must Be Distributed Any assets remaining in a Coverdell ESA must be distributed when either one of the following two events occurs. Last day to file taxes 2013 The designated beneficiary reaches age 30. Last day to file taxes 2013 In this case, the remaining assets must be distributed within 30 days after the beneficiary reaches age 30. Last day to file taxes 2013 However, this rule does not apply if the beneficiary is a special needs beneficiary. Last day to file taxes 2013 The designated beneficiary dies before reaching age 30. Last day to file taxes 2013 In this case, the remaining assets must generally be distributed within 30 days after the date of death. Last day to file taxes 2013 Exception for Transfer to Surviving Spouse or Family Member If a Coverdell ESA is transferred to a surviving spouse or other family member as the result of the death of the designated beneficiary, the Coverdell ESA retains its status. Last day to file taxes 2013 (“Family member” was defined earlier under Rollovers . Last day to file taxes 2013 ) This means the spouse or other family member can treat the Coverdell ESA as his or her own and does not need to withdraw the assets until he or she reaches age 30. Last day to file taxes 2013 This age limitation does not apply if the new beneficiary is a special needs beneficiary. Last day to file taxes 2013 There are no tax consequences as a result of the transfer. Last day to file taxes 2013 How To Figure the Taxable Earnings When a total distribution is made because the designated beneficiary either reached age 30 or died, the earnings that accumulated tax free in the account must be included in taxable income. Last day to file taxes 2013 You determine these earnings as shown in the following two steps. Last day to file taxes 2013 Multiply the amount distributed by a fraction. Last day to file taxes 2013 The numerator is the basis (contributions not previously distributed) at the end of 2012 plus total contributions for 2013 and the denominator is the balance in the account at the end of 2013 plus the amount distributed during 2013. Last day to file taxes 2013 Subtract the amount figured in (1) from the total amount distributed during 2013. Last day to file taxes 2013 The result is the amount of earnings included in the distribution. Last day to file taxes 2013 For an example, see steps (1) and (2) of the Example under Figuring the Taxable Portion of a Distribution, earlier. Last day to file taxes 2013 The beneficiary or other person receiving the distribution must report this amount on Form 1040, line 21, or Form 1040NR, line 21, listing the type and amount of income on the dotted line. Last day to file taxes 2013 Worksheet 7-3 Instructions. Last day to file taxes 2013 Coverdell ESA—Taxable Distributions and Basis Line G. Last day to file taxes 2013 Enter the total distributions received from all Coverdell ESAs during 2013. Last day to file taxes 2013 Do not include amounts rolled over to another ESA within 60 days (only one rollover is allowed during any 12-month period). Last day to file taxes 2013 Also, do not include excess contributions that were distributed with the related earnings (or less any loss) before the first day of the sixth month of the tax year following the year for which the contributions were made. Last day to file taxes 2013 Line 2. Last day to file taxes 2013 Your basis (amount already taxed) in this Coverdell ESA as of December 31, 2012, is the total of:   •All contributions to this Coverdell ESA before 2013 •Minus the tax-free portion of any distributions from this Coverdell ESA before 2013. Last day to file taxes 2013   If your last distribution from this Coverdell ESA was before 2013, you must start with the basis in your account as of the end of the last year in which you took a distribution. Last day to file taxes 2013 For years before 2002, you can find that amount on the last line of the worksheet in the Instructions for Form 8606, Nondeductible IRAs, that you completed for that year. Last day to file taxes 2013 For years after 2001, you can find that amount by using the ending basis from the worksheet in Publication 970 for that year. Last day to file taxes 2013 You can determine your basis in this Coverdell ESA as of December 31, 2012, by adding to the basis as of the end of that year any contributions made to that account after the year of the distribution and before 2013. Last day to file taxes 2013 Line 4. Last day to file taxes 2013 Enter the total distributions received from this Coverdell ESA in 2013. Last day to file taxes 2013 Do not include amounts rolled over to another Coverdell ESA within 60 days (only one rollover is allowed during any 12-month period). Last day to file taxes 2013   Also, do not include excess contributions that were distributed with the related earnings (or less any loss) before the first day of the sixth month of the tax year following the year of the contributions. Last day to file taxes 2013 Line 7. Last day to file taxes 2013 Enter the total value of this Coverdell ESA as of December 31, 2013, plus any outstanding rollovers contributed to the account after 2012, but before the end of the 60-day rollover period. Last day to file taxes 2013 A statement should be sent to you by January 31, 2014, for this Coverdell ESA showing the value on December 31, 2013. Last day to file taxes 2013   A rollover is a tax-free withdrawal from one Coverdell ESA that is contributed to another Coverdell ESA. Last day to file taxes 2013 An outstanding rollover is any amount withdrawn within 60 days before the end of 2013 (November 2 through December 31) that was rolled over after December 31, 2013, but within the 60-day rollover period. Last day to file taxes 2013 Worksheet 7-3. Last day to file taxes 2013 Coverdell ESA—Taxable Distributions and Basis How to complete this worksheet. Last day to file taxes 2013 • • • Complete Part I, lines A through H, on only one worksheet. Last day to file taxes 2013  Complete a separate Part II, lines 1 through 15, for each of your Coverdell ESAs. Last day to file taxes 2013  Complete Part III, the Summary (line 16), on only one worksheet. Last day to file taxes 2013 Part I. Last day to file taxes 2013 Qualified Education Expenses (Complete for total expenses)       A. Last day to file taxes 2013 Enter your total qualified education expenses for 2013   A. Last day to file taxes 2013   B. Last day to file taxes 2013 Enter those qualified education expenses paid for with tax-free educational assistance (for example, tax-free scholarships, veterans' educational benefits, Pell grants, employer-provided educational assistance)   B. Last day to file taxes 2013         C. Last day to file taxes 2013 Enter those qualified higher education expenses deducted on Schedule C or C-EZ (Form 1040). Last day to file taxes 2013 Schedule F (Form 1040), or as a miscellaneous itemized deduction on Schedule A (Form 1040 or 1040NR)   C. Last day to file taxes 2013         D. Last day to file taxes 2013 Enter those qualified higher education expenses on which  an American opportunity or lifetime learning credit was based   D. Last day to file taxes 2013         E. Last day to file taxes 2013 Add lines B, C, and D   D. Last day to file taxes 2013   F. Last day to file taxes 2013 Subtract line E from line A. Last day to file taxes 2013 This is your adjusted qualified education expense for 2013   E. Last day to file taxes 2013   G. Last day to file taxes 2013 Enter your total distributions from all Coverdell ESAs during 2013. Last day to file taxes 2013 Do not include rollovers  or the return of excess contributions (see instructions)   F. Last day to file taxes 2013   H. Last day to file taxes 2013 Divide line F by line G. Last day to file taxes 2013 Enter the result as a decimal (rounded to at least 3 places). Last day to file taxes 2013 If the  result is 1. Last day to file taxes 2013 000 or more, enter 1. Last day to file taxes 2013 000   G. Last day to file taxes 2013 . Last day to file taxes 2013 Part II. Last day to file taxes 2013 Taxable Distributions and Basis (Complete separately for each account) 1. Last day to file taxes 2013 Enter the amount contributed to this Coverdell ESA for 2013, including contributions made for 2013 from January 1, 2014, through April 15, 2014. Last day to file taxes 2013 Do not include rollovers or the return of excess contributions   1. Last day to file taxes 2013   2. Last day to file taxes 2013 Enter your basis in this Coverdell ESA as of December 31, 2012 (see instructions)   2. Last day to file taxes 2013   3. Last day to file taxes 2013 Add lines 1 and 2   3. Last day to file taxes 2013   4. Last day to file taxes 2013 Enter the total distributions from this Coverdell ESA during 2013. Last day to file taxes 2013 Do not include rollovers  or the return of excess contributions (see instructions)   4. Last day to file taxes 2013   5. Last day to file taxes 2013 Multiply line 4 by line H. Last day to file taxes 2013 This is the amount of adjusted qualified  education expense attributable to this Coverdell ESA   5. Last day to file taxes 2013         6. Last day to file taxes 2013 Subtract line 5 from line 4   6. Last day to file taxes 2013         7. Last day to file taxes 2013 Enter the total value of this Coverdell ESA as of December 31, 2013,  plus any outstanding rollovers (see instructions)   7. Last day to file taxes 2013         8. Last day to file taxes 2013 Add lines 4 and 7   8. Last day to file taxes 2013         9. Last day to file taxes 2013 Divide line 3 by line 8. Last day to file taxes 2013 Enter the result as a decimal (rounded to  at least 3 places). Last day to file taxes 2013 If the result is 1. Last day to file taxes 2013 000 or more, enter 1. Last day to file taxes 2013 000   9. Last day to file taxes 2013 . Last day to file taxes 2013       10. Last day to file taxes 2013 Multiply line 4 by line 9. Last day to file taxes 2013 This is the amount of basis allocated to your  distributions, and is tax free   10. Last day to file taxes 2013     Note. Last day to file taxes 2013 If line 6 is zero, skip lines 11 through 13, enter -0- on line 14, and go to line 15. Last day to file taxes 2013       11. Last day to file taxes 2013 Subtract line 10 from line 4   11. Last day to file taxes 2013   12. Last day to file taxes 2013 Divide line 5 by line 4. Last day to file taxes 2013 Enter the result as a decimal (rounded to  at least 3 places). Last day to file taxes 2013 If the result is 1. Last day to file taxes 2013 000 or more, enter 1. Last day to file taxes 2013 000   12. Last day to file taxes 2013 . Last day to file taxes 2013       13. Last day to file taxes 2013 Multiply line 11 by line 12. Last day to file taxes 2013 This is the amount of qualified education  expenses allocated to your distributions, and is tax free   13. Last day to file taxes 2013   14. Last day to file taxes 2013 Subtract line 13 from line 11. Last day to file taxes 2013 This is the portion of the distributions from this  Coverdell ESA in 2013 that you must include in income   14. Last day to file taxes 2013   15. Last day to file taxes 2013 Subtract line 10 from line 3. Last day to file taxes 2013 This is your basis in this Coverdell ESA as of December 31, 2013   15. Last day to file taxes 2013   Part III. Last day to file taxes 2013 Summary (Complete only once)       16. Last day to file taxes 2013 Taxable amount. Last day to file taxes 2013 Add together all amounts on line 14 for all your Coverdell ESAs. Last day to file taxes 2013 Enter here  and include on Form 1040, line 21, or Form 1040NR, line 21, listing the type and amount of income on the dotted line   16. Last day to file taxes 2013   Prev  Up  Next   Home   More Online Publications
Print - Click this link to Print this page

Procurement Small Business Program Office

Our Purpose:

The Internal Revenue Service (IRS) Small Business Program Office was established to (1) assist small, HUBZone small, small disadvantaged, women-owned small, veteran-owned small, and service disabled veteran-owned small businesses, to develop, grow, and ensure their long-term success; (2) continually foster an environment where small, HUBZone small, small disadvantaged, women-owned small, veteran-owned small, and service disabled veteran-owned small businesses can compete successfully for a fair share of IRS's procurements on their own merits; and (3) assist large businesses to increase subcontracting opportunities for small, HUBZone small, small disadvantaged, women-owned small, veteran-owned small, and service disabled veteran-owned small businesses.

The IRS small business goals for FY 2014 are as follows:

 

IRS FY 2014 SMALL BUSINESS GOALS

Small Business (SB)

35.07%

Small Disadvantaged Business (SDB)

5.0%

Woman-Owned Small Business (WOSB)

5.0%

HUBZone Small Business (HUBZone)

3.0%

Service-Disabled Veteran-Owned Small Business (SDVOSB)

3.0%

Veteran-Owned Small Business (VOSB)

No Goal



 

IRS FY 2014 SUB-CONTRACTING GOALS

Small Business (SB)

35%

Small Disadvantaged Business (SDB)

5.0%

Woman-Owned Small Business (WOSB)

5.0%

HUBZone Small Business (HUBZone)

3.0%

Service-Disabled Veteran-Owned Small Business (SDVOSB)

3.0%


 

Points of Contact:

Please Note: This office does not have the expertise to answer tax questions. Please search the website under the Search Function for answers to tax questions or call the toll-free tax assistance line at 1-800-829-1040 for individual tax questions and 1-800-829-4933 for business tax questions. The IRS has no loan program. The IRS does have a small E-Grants Program for Low Income Taxpayer Clinics and Tax Counseling for Elderly (TCE) services. For further information on financing your business, please visit the Small Business Administrations (SBA's) web site.

 

For Small Business Concerns: Prior to contacting the Small Business Program Office, please review the information contained in this section as well as the Treasury Forecast of Procurement Opportunities to determine if the IRS actually purchases the products/services you are interested in selling to the IRS. Upon completion of the review, please feel free to contact the Small Business Program Office for further assistance in doing business with the IRS.

LaTonya Richardson - Small Business Specialist
Mary McKinzie - Procurement Analyst
Phone: 240-613-8600
Fax:  240-613-8552
Email: IRS Small Business Program

 


Office of Procurement - The Office of Procurement organization is located in Oxon Hill, Maryland, and handles nationwide IRS procurements, requirements for the Martinsburg, WV and Detroit, MI Computing Centers, and all local requirements for the IRS headquarters offices in the Washington, DC metropolitan area. In addition, there are four area procurement offices located in New York, NY, Atlanta, GA, Dallas, TX and Oakland, CA.

Purchase Card Program (Micropurchases) - The Internal Revenue Service currently spends approximately $4 million per month through individual purchase card transactions. Approximately 4,300 IRS field employees use the purchase cards to make purchases up to $3,000. These purchases, made throughout all IRS offices within the United States, cover a myriad of services, supplies, and equipment.

8(a) At-a-Glance Listing - The IRS' 8(a) At-A-Glance Listing contains information on the approximately 500 8(a) firms who are actively marketing the IRS at any given time. The listing contains each 8(a) firm's company name, address, phone number, graduation date, and a brief description of the products and/or services offered. The listing was developed to assist procurement and program personnel in selecting 8(a) firms for IRS contract opportunities. The listing is updated periodically to add new 8(a) firms and to delete graduated 8(a) firms.

HUBZone At-a-Glance Listing- The IRS’ HUBZone At-a-Glance Listing contains information on the HUBZone firms who are actively marketing the IRS. The listing contains each HUBZone firm’s company name, address, phone number, and a brief description of the products and/or services offered. The listing was developed to assist procurement and program personnel in selecting HUBZone firms for IRS contract opportunities. The listing is updated periodically to add new HUBZone firms.

Service Disabled Veteran-Owned Small Business (SDVOSB) At-a-Glance Listing- The IRS’ SDVOSB At-a-Glance Listing contains information on the SDVOSB firms who are actively marketing the IRS. The listing contains each SDVOSB firm’s company name, address, phone number, and a brief description of the products and/or services offered. The listing was developed to assist procurement and program personnel in selecting SDVOSB firms for IRS contract opportunities. The listing is updated periodically to add new SDVOSB firms.

Women Owned Small Business At-a-Glance Listing- The IRS' Women Owned Small Business At-a-Glance Listing contains information on the Women Owned Small Business (WOSB) firms who are actively marketing the IRS.  The listing contains each WOSB firm's company name, address, phone number, and a brief description of the products and/or services offered.  The listing was developed to assist procurement and program personnel in selecting WOSB firms for IRS contract opportunities.  The listing is updated periodically to add new WOSB firms.  

Freedom of Information Act (FOIA)- provides public access to agency records unless protected from disclosure by one of the FOIA’s nine exemptions or three exclusions.

Outreach Information - The Small Business Program Office is available to meet with small, (8a), HUBZone small, small disadvantaged, women-owned small, veteran-owned small, and service disabled veteran-owned small businesses to discuss a company's capabilities provide information on future procurement opportunities, and give advice on procurement questions. Individual appointments are available by phone or in person by calling 240-613-8600 or by sending an e-mail to AWSS.SBRO@IRS.GOV  .

The Small Business Program Office periodically hosts small business outreach events to target 8(a), HUBZone, Service Disabled Veteran Owned and Women Owned Small Businesses. Notice of the events are posted on Federal Business Opportunities when scheduled and are posted on our Internet page under Outreach Events.

Forecast of Procurement Opportunities - The IRS Forecast of Procurement Opportunities is available under the Treasury Web Site. There are two sections to the IRS Forecast: existing contracts, and new opportunities. The existing contracts section contains a list of active IRS contracts including NAICS code, contract description, dollar value, final year of contract, procurement contact and phone number, contract number, and contractor name. The new opportunities section contains a list of future contract opportunities including NAICS code, project description, dollar value (estimated), quarter and fiscal year of release date of the RFP, set-aside information, procurement contact and phone number.

Bidders List Information - In order to receive an award from any Treasury bureau, it is now required that your company register in the System for Award Management (SAM) database. The SAM serves as the primary Government repository for contractor information required for the conduct of business with the Government. 

Links to Other Small Business Sites

Success Stories - In Fiscal Year 2012, the IRS awarded approximately $656 Million Dollars in contracts to small business concerns. There are many success stories regarding small business concerns who provide much needed products and services to the IRS.

 


Questions about the Procurement information on this site, please contact the webmaster.
Contact the Office of Procurement for other Procurement related questions.

Page Last Reviewed or Updated: 04-Feb-2014

The Last Day To File Taxes 2013

Last day to file taxes 2013 Publication 15 - Main Content Table of Contents 1. Last day to file taxes 2013 Employer Identification Number (EIN) 2. Last day to file taxes 2013 Who Are Employees?Relief provisions. Last day to file taxes 2013 Business Owned and Operated by Spouses 3. Last day to file taxes 2013 Family Employees 4. Last day to file taxes 2013 Employee's Social Security Number (SSN)Registering for SSNVS. Last day to file taxes 2013 5. Last day to file taxes 2013 Wages and Other CompensationAccountable plan. Last day to file taxes 2013 Nonaccountable plan. Last day to file taxes 2013 Per diem or other fixed allowance. Last day to file taxes 2013 50% test. Last day to file taxes 2013 Health Savings Accounts and medical savings accounts. Last day to file taxes 2013 Nontaxable fringe benefits. Last day to file taxes 2013 When fringe benefits are treated as paid. Last day to file taxes 2013 Valuation of fringe benefits. Last day to file taxes 2013 Withholding on fringe benefits. Last day to file taxes 2013 Depositing taxes on fringe benefits. Last day to file taxes 2013 6. Last day to file taxes 2013 TipsOrdering rule. Last day to file taxes 2013 7. Last day to file taxes 2013 Supplemental Wages 8. Last day to file taxes 2013 Payroll Period 9. Last day to file taxes 2013 Withholding From Employees' WagesIncome Tax Withholding Social Security and Medicare Taxes Part-Time Workers 10. Last day to file taxes 2013 Required Notice to Employees About the Earned Income Credit (EIC) 11. Last day to file taxes 2013 Depositing TaxesWhen To Deposit How To Deposit Deposit Penalties 12. Last day to file taxes 2013 Filing Form 941 or Form 944 13. Last day to file taxes 2013 Reporting Adjustments to Form 941 or Form 944Current Period Adjustments Prior Period Adjustments Wage Repayments 14. Last day to file taxes 2013 Federal Unemployment (FUTA) TaxSuccessor employer. Last day to file taxes 2013 Household employees. Last day to file taxes 2013 When to deposit. Last day to file taxes 2013 Household employees. Last day to file taxes 2013 Electronic filing by reporting agents. Last day to file taxes 2013 16. Last day to file taxes 2013 How To Use the Income Tax Withholding TablesWage Bracket Method Percentage Method Alternative Methods of Income Tax Withholding How To Get Tax Help 1. Last day to file taxes 2013 Employer Identification Number (EIN) If you are required to report employment taxes or give tax statements to employees or annuitants, you need an EIN. Last day to file taxes 2013 The EIN is a nine-digit number the IRS issues. Last day to file taxes 2013 The digits are arranged as follows: 00-0000000. Last day to file taxes 2013 It is used to identify the tax accounts of employers and certain others who have no employees. Last day to file taxes 2013 Use your EIN on all of the items you send to the IRS and SSA. Last day to file taxes 2013 For more information, see Publication 1635, Employer Identification Number: Understanding Your EIN. Last day to file taxes 2013 If you do not have an EIN, you may apply for one online. Last day to file taxes 2013 Go to the IRS. Last day to file taxes 2013 gov and click on the Apply for an EIN Online link under Tools. Last day to file taxes 2013 You may also apply for an EIN by calling 1-800-829-4933, or you can fax or mail Form SS-4, Application for Employer Identification Number, to the IRS. Last day to file taxes 2013 Do not use an SSN in place of an EIN. Last day to file taxes 2013 You should have only one EIN. Last day to file taxes 2013 If you have more than one and are not sure which one to use, call 1-800-829-4933 or 1-800-829-4059 (TDD/TTY for persons who are deaf, hard of hearing, or have a speech disability). Last day to file taxes 2013 Give the numbers you have, the name and address to which each was assigned, and the address of your main place of business. Last day to file taxes 2013 The IRS will tell you which number to use. Last day to file taxes 2013 If you took over another employer's business (see Successor employer in section 9), do not use that employer's EIN. Last day to file taxes 2013 If you have applied for an EIN but do not have your EIN by the time a return is due, file a paper return and write “Applied For” and the date you applied for it in the space shown for the number. Last day to file taxes 2013 2. Last day to file taxes 2013 Who Are Employees? Generally, employees are defined either under common law or under statutes for certain situations. Last day to file taxes 2013 See Publication 15-A for details on statutory employees and nonemployees. Last day to file taxes 2013 Employee status under common law. Last day to file taxes 2013   Generally, a worker who performs services for you is your employee if you have the right to control what will be done and how it will be done. Last day to file taxes 2013 This is so even when you give the employee freedom of action. Last day to file taxes 2013 What matters is that you have the right to control the details of how the services are performed. Last day to file taxes 2013 See Publication 15-A for more information on how to determine whether an individual providing services is an independent contractor or an employee. Last day to file taxes 2013   Generally, people in business for themselves are not employees. Last day to file taxes 2013 For example, doctors, lawyers, veterinarians, and others in an independent trade in which they offer their services to the public are usually not employees. Last day to file taxes 2013 However, if the business is incorporated, corporate officers who work in the business are employees of the corporation. Last day to file taxes 2013   If an employer-employee relationship exists, it does not matter what it is called. Last day to file taxes 2013 The employee may be called an agent or independent contractor. Last day to file taxes 2013 It also does not matter how payments are measured or paid, what they are called, or if the employee works full or part time. Last day to file taxes 2013 Statutory employees. Last day to file taxes 2013   If someone who works for you is not an employee under the common law rules discussed earlier, do not withhold federal income tax from his or her pay, unless backup withholding applies. Last day to file taxes 2013 Although the following persons may not be common law employees, they are considered employees by statute for social security, Medicare, and FUTA tax purposes under certain conditions. Last day to file taxes 2013 An agent (or commission) driver who delivers food, beverages (other than milk), laundry, or dry cleaning for someone else. Last day to file taxes 2013 A full-time life insurance salesperson who sells primarily for one company. Last day to file taxes 2013 A homeworker who works by guidelines of the person for whom the work is done, with materials furnished by and returned to that person or to someone that person designates. Last day to file taxes 2013 A traveling or city salesperson (other than an agent-driver or commission-driver) who works full time (except for sideline sales activities) for one firm or person getting orders from customers. Last day to file taxes 2013 The orders must be for merchandise for resale or supplies for use in the customer's business. Last day to file taxes 2013 The customers must be retailers, wholesalers, contractors, or operators of hotels, restaurants, or other businesses dealing with food or lodging. Last day to file taxes 2013    Statutory nonemployees. Last day to file taxes 2013   Direct sellers, qualified real estate agents, and certain companion sitters are, by law, considered nonemployees. Last day to file taxes 2013 They are generally treated as self-employed for all federal tax purposes, including income and employment taxes. Last day to file taxes 2013 H-2A agricultural workers. Last day to file taxes 2013   On Form W-2, do not check box 13 (Statutory employee), as H-2A workers are not statutory employees. Last day to file taxes 2013 Treating employees as nonemployees. Last day to file taxes 2013   You will generally be liable for social security and Medicare taxes and withheld income tax if you do not deduct and withhold these taxes because you treated an employee as a nonemployee. Last day to file taxes 2013 You may be able to calculate your liability using special section 3509 rates for the employee share of social security and Medicare taxes and the federal income tax withholding. Last day to file taxes 2013 The applicable rates depend on whether you filed required Forms 1099. Last day to file taxes 2013 You cannot recover the employee share of social security, or Medicare tax, or income tax withholding from the employee if the tax is paid under section 3509. Last day to file taxes 2013 You are liable for the income tax withholding regardless of whether the employee paid income tax on the wages. Last day to file taxes 2013 You continue to owe the full employer share of social security and Medicare taxes. Last day to file taxes 2013 The employee remains liable for the employee share of social security and Medicare taxes. Last day to file taxes 2013 See Internal Revenue Code section 3509 for details. Last day to file taxes 2013 Also see the Instructions for Form 941-X. Last day to file taxes 2013   Section 3509 rates are not available if you intentionally disregard the requirement to withhold taxes from the employee or if you withheld income taxes but not social security or Medicare taxes. Last day to file taxes 2013 Section 3509 is not available for reclassifying statutory employees. Last day to file taxes 2013 See Statutory employees , earlier in this section. Last day to file taxes 2013   If the employer issued required information returns, the section 3509 rates are: For social security taxes; employer rate of 6. Last day to file taxes 2013 2% plus 20% of the employee rate (see the Instructions for Form 941-X). Last day to file taxes 2013 For Medicare taxes; employer rate of 1. Last day to file taxes 2013 45% plus 20% of the employee rate of 1. Last day to file taxes 2013 45%, for a total rate of 1. Last day to file taxes 2013 74% of wages. Last day to file taxes 2013 For Additional Medicare Tax; 0. Last day to file taxes 2013 18% (20% of the employee rate of 0. Last day to file taxes 2013 9%) of wages subject to Additional Medicare Tax. Last day to file taxes 2013 For income tax withholding, the rate is 1. Last day to file taxes 2013 5% of wages. Last day to file taxes 2013   If the employer did not issue required information returns, the section 3509 rates are: For social security taxes; employer rate of 6. Last day to file taxes 2013 2% plus 40% of the employee rate (see the Instructions for Form 941-X). Last day to file taxes 2013 For Medicare taxes; employer rate of 1. Last day to file taxes 2013 45% plus 40% of the employee rate of 1. Last day to file taxes 2013 45%, for a total rate of 2. Last day to file taxes 2013 03% of wages. Last day to file taxes 2013 For Additional Medicare Tax; 0. Last day to file taxes 2013 36% (40% of the employee rate of 0. Last day to file taxes 2013 9%) of wages subject to Additional Medicare Tax. Last day to file taxes 2013 For income tax withholding, the rate is 3. Last day to file taxes 2013 0% of wages. Last day to file taxes 2013 Relief provisions. Last day to file taxes 2013   If you have a reasonable basis for not treating a worker as an employee, you may be relieved from having to pay employment taxes for that worker. Last day to file taxes 2013 To get this relief, you must file all required federal tax returns, including information returns, on a basis consistent with your treatment of the worker. Last day to file taxes 2013 You (or your predecessor) must not have treated any worker holding a substantially similar position as an employee for any periods beginning after 1977. Last day to file taxes 2013 See Publication 1976, Do You Qualify for Relief Under Section 530. Last day to file taxes 2013 IRS help. Last day to file taxes 2013   If you want the IRS to determine whether a worker is an employee, file Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding. Last day to file taxes 2013 Voluntary Classification Settlement Program (VCSP). Last day to file taxes 2013   Employers who are currently treating their workers (or a class or group of workers) as independent contractors or other nonemployees and want to voluntarily reclassify their workers as employees for future tax periods may be eligible to participate in the VCSP if certain requirements are met. Last day to file taxes 2013 To apply, use Form 8952, Application for Voluntary Classification Settlement Program (VCSP). Last day to file taxes 2013 For more information visit IRS. Last day to file taxes 2013 gov and enter “VCSP” in the search box. Last day to file taxes 2013 Business Owned and Operated by Spouses If you and your spouse jointly own and operate a business and share in the profits and losses, you are partners in a partnership, whether or not you have a formal partnership agreement. Last day to file taxes 2013 See Publication 541, Partnerships, for more details. Last day to file taxes 2013 The partnership is considered the employer of any employees, and is liable for any employment taxes due on wages paid to its employees. Last day to file taxes 2013 Exception—Qualified joint venture. Last day to file taxes 2013   For tax years beginning after December 31, 2006, the Small Business and Work Opportunity Tax Act of 2007 (Public Law 110-28) provides that a “qualified joint venture,” whose only members are spouses filing a joint income tax return, can elect not to be treated as a partnership for federal tax purposes. Last day to file taxes 2013 A qualified joint venture conducts a trade or business where: The only members of the joint venture are spouses who file a joint income tax return, Both spouses materially participate (see Material participation in the Instructions for Schedule C (Form 1040), line G) in the trade or business (mere joint ownership of property is not enough), Both spouses elect to not be treated as a partnership, and The business is co-owned by both spouses and is not held in the name of a state law entity such as a partnership or limited liability company (LLC). Last day to file taxes 2013   To make the election, all items of income, gain, loss, deduction, and credit must be divided between the spouses, in accordance with each spouse's interest in the venture, and reported on separate Schedules C or F as sole proprietors. Last day to file taxes 2013 Each spouse must also file a separate Schedule SE to pay self-employment taxes, as applicable. Last day to file taxes 2013   Spouses using the qualified joint venture rules are treated as sole proprietors for federal tax purposes and generally do not need an EIN. Last day to file taxes 2013 If employment taxes are owed by the qualified joint venture, either spouse may report and pay the employment taxes due on the wages paid to the employees using the EIN of that spouse's sole proprietorship. Last day to file taxes 2013 Generally, filing as a qualified joint venture will not increase the spouses' total tax owed on the joint income tax return. Last day to file taxes 2013 However, it gives each spouse credit for social security earnings on which retirement benefits are based and for Medicare coverage without filing a partnership return. Last day to file taxes 2013    Note. Last day to file taxes 2013 If your spouse is your employee, not your partner, see One spouse employed by another in section 3. Last day to file taxes 2013   For more information on qualified joint ventures, visit IRS. Last day to file taxes 2013 gov and enter “qualified joint venture” in the search box. Last day to file taxes 2013 Exception—Community income. Last day to file taxes 2013   If you and your spouse wholly own an unincorporated business as community property under the community property laws of a state, foreign country, or U. Last day to file taxes 2013 S. Last day to file taxes 2013 possession, you can treat the business either as a sole proprietorship (of the spouse who carried on the business) or a partnership. Last day to file taxes 2013 You may still make an election to be taxed as a qualified joint venture instead of a partnership. Last day to file taxes 2013 See Exception—Qualified joint venture , earlier. Last day to file taxes 2013 3. Last day to file taxes 2013 Family Employees Child employed by parents. Last day to file taxes 2013   Payments for the services of a child under age 18 who works for his or her parent in a trade or business are not subject to social security and Medicare taxes if the trade or business is a sole proprietorship or a partnership in which each partner is a parent of the child. Last day to file taxes 2013 If these payments are for work other than in a trade or business, such as domestic work in the parent's private home, they are not subject to social security and Medicare taxes until the child reaches age 21. Last day to file taxes 2013 However, see Covered services of a child or spouse , later in this section. Last day to file taxes 2013 Payments for the services of a child under age 21 who works for his or her parent, whether or not in a trade or business, are not subject to FUTA tax. Last day to file taxes 2013 Payments for the services of a child of any age who works for his or her parent are generally subject to income tax withholding unless the payments are for domestic work in the parent's home, or unless the payments are for work other than in a trade or business and are less than $50 in the quarter or the child is not regularly employed to do such work. Last day to file taxes 2013 One spouse employed by another. Last day to file taxes 2013   The wages for the services of an individual who works for his or her spouse in a trade or business are subject to income tax withholding and social security and Medicare taxes, but not to FUTA tax. Last day to file taxes 2013 However, the payments for services of one spouse employed by another in other than a trade or business, such as domestic service in a private home, are not subject to social security, Medicare, and FUTA taxes. Last day to file taxes 2013 Covered services of a child or spouse. Last day to file taxes 2013   The wages for the services of a child or spouse are subject to income tax withholding as well as social security, Medicare, and FUTA taxes if he or she works for: A corporation, even if it is controlled by the child's parent or the individual's spouse; A partnership, even if the child's parent is a partner, unless each partner is a parent of the child; A partnership, even if the individual's spouse is a partner; or An estate, even if it is the estate of a deceased parent. Last day to file taxes 2013 Parent employed by son or daughter. Last day to file taxes 2013   When the employer is a son or daughter employing his or her parent the following rules apply. Last day to file taxes 2013 Payments for the services of a parent in the son’s or daughter’s (the employer’s) trade or business are subject to income tax withholding and social security and Medicare taxes. Last day to file taxes 2013 Payments for the services of a parent not in the son’s or daughter’s (the employer’s) trade or business are generally not subject to social security and Medicare taxes. Last day to file taxes 2013    Social security and Medicare taxes do apply to payments made to a parent for domestic services if all of the following apply: The parent is employed by his or her son or daughter; The son or daughter (the employer) has a child or stepchild living in the home; The son or daughter (the employer) is a widow or widower, divorced, or living with a spouse who, because of a mental or physical condition, cannot care for the child or stepchild for at least 4 continuous weeks in a calendar quarter; and The child or stepchild is either under age 18 or requires the personal care of an adult for at least 4 continuous weeks in a calendar quarter due to a mental or physical condition. Last day to file taxes 2013   Payments made to a parent employed by his or her child are not subject to FUTA tax, regardless of the type of services provided. Last day to file taxes 2013 4. Last day to file taxes 2013 Employee's Social Security Number (SSN) You are required to get each employee's name and SSN and to enter them on Form W-2. Last day to file taxes 2013 This requirement also applies to resident and nonresident alien employees. Last day to file taxes 2013 You should ask your employee to show you his or her social security card. Last day to file taxes 2013 The employee may show the card if it is available. Last day to file taxes 2013 Do not accept a social security card that says “Not valid for employment. Last day to file taxes 2013 ” A social security number issued with this legend does not permit employment. Last day to file taxes 2013 You may, but are not required to, photocopy the social security card if the employee provides it. Last day to file taxes 2013 If you do not provide the correct employee name and SSN on Form W-2, you may owe a penalty unless you have reasonable cause. Last day to file taxes 2013 See Publication 1586, Reasonable Cause Regulations & Requirements for Missing and Incorrect Name/TINs, for information on the requirement to solicit the employee's SSN. Last day to file taxes 2013 Applying for a social security card. Last day to file taxes 2013   Any employee who is legally eligible to work in the United States and does not have a social security card can get one by completing Form SS-5, Application for a Social Security Card, and submitting the necessary documentation. Last day to file taxes 2013 You can get Form SS-5 at SSA offices, by calling 1-800-772-1213, or from the SSA website at www. Last day to file taxes 2013 socialsecurity. Last day to file taxes 2013 gov/online/ss-5. Last day to file taxes 2013 html. Last day to file taxes 2013 The employee must complete and sign Form SS-5; it cannot be filed by the employer. Last day to file taxes 2013 You may be asked to supply a letter to accompany Form SS-5 if the employee has exceeded his or her yearly or lifetime limit for the number of replacement cards allowed. Last day to file taxes 2013 Applying for a social security number. Last day to file taxes 2013   If you file Form W-2 on paper and your employee applied for an SSN but does not have one when you must file Form W-2, enter “Applied For” on the form. Last day to file taxes 2013 If you are filing electronically, enter all zeros (000-00-000) in the social security number field. Last day to file taxes 2013 When the employee receives the SSN, file Copy A of Form W-2c, Corrected Wage and Tax Statement, with the SSA to show the employee's SSN. Last day to file taxes 2013 Furnish copies B, C, and 2 of Form W-2c to the employee. Last day to file taxes 2013 Up to 25 Forms W-2c for each Form W-3c, Transmittal of Corrected Wage and Tax Statements, may now be filed per session over the Internet, with no limit on the number of sessions. Last day to file taxes 2013 For more information, visit the SSA's Employer W-2 Filing Instructions & Information webpage at www. Last day to file taxes 2013 socialsecurity. Last day to file taxes 2013 gov/employer. Last day to file taxes 2013 Advise your employee to correct the SSN on his or her original Form W-2. Last day to file taxes 2013 Correctly record the employee's name and SSN. Last day to file taxes 2013   Record the name and number of each employee as they are shown on the employee's social security card. Last day to file taxes 2013 If the employee's name is not correct as shown on the card (for example, because of marriage or divorce), the employee should request a corrected card from the SSA. Last day to file taxes 2013 Continue to report the employee's wages under the old name until the employee shows you an updated social security card with the new name. Last day to file taxes 2013 If the SSA issues the employee a replacement card after a name change, or a new card with a different social security number after a change in alien work status, file a Form W-2c to correct the name/SSN reported for the most recently filed Form W-2. Last day to file taxes 2013 It is not necessary to correct other years if the previous name and number were used for years before the most recent Form W-2. Last day to file taxes 2013 IRS individual taxpayer identification numbers (ITINs) for aliens. Last day to file taxes 2013   Do not accept an ITIN in place of an SSN for employee identification or for work. Last day to file taxes 2013 An ITIN is only available to resident and nonresident aliens who are not eligible for U. Last day to file taxes 2013 S. Last day to file taxes 2013 employment and need identification for other tax purposes. Last day to file taxes 2013 You can identify an ITIN because it is a nine-digit number, beginning with the number “9” with either a “7” or “8” as the fourth digit and is formatted like an SSN (for example, 9NN-7N-NNNN). Last day to file taxes 2013    An individual with an ITIN who later becomes eligible to work in the United States must obtain an SSN. Last day to file taxes 2013 If the individual is currently eligible to work in the United States, instruct the individual to apply for an SSN and follow the instructions under Applying for a social security number, earlier. Last day to file taxes 2013 Do not use an ITIN in place of an SSN on Form W-2. Last day to file taxes 2013 Verification of social security numbers. Last day to file taxes 2013   Employers and authorized reporting agents can use the Social Security Number Verification Service (SSNVS) to instantly verify up to 10 names and SSNs (per screen) at a time, or submit an electronic file of up to 250,000 names and SSNs and usually receive the results the next business day. Last day to file taxes 2013 Visit www. Last day to file taxes 2013 socialsecurity. Last day to file taxes 2013 gov/employer/ssnv. Last day to file taxes 2013 htm for more information. Last day to file taxes 2013 Registering for SSNVS. Last day to file taxes 2013   You must register online and receive authorization from your employer to use SSNVS. Last day to file taxes 2013 To register, visit SSA's website at www. Last day to file taxes 2013 ssa. Last day to file taxes 2013 gov/employer and click on the Business Services Online link. Last day to file taxes 2013 Follow the registration instructions to obtain a user identification (ID) and password. Last day to file taxes 2013 You will need to provide the following information about yourself and your company. Last day to file taxes 2013 Name. Last day to file taxes 2013 SSN. Last day to file taxes 2013 Date of birth. Last day to file taxes 2013 Type of employer. Last day to file taxes 2013 EIN. Last day to file taxes 2013 Company name, address, and telephone number. Last day to file taxes 2013 Email address. Last day to file taxes 2013   When you have completed the online registration process, SSA will mail a one-time activation code to your employer. Last day to file taxes 2013 You must enter the activation code online to use SSNVS. Last day to file taxes 2013 5. Last day to file taxes 2013 Wages and Other Compensation Wages subject to federal employment taxes generally include all pay you give to an employee for services performed. Last day to file taxes 2013 The pay may be in cash or in other forms. Last day to file taxes 2013 It includes salaries, vacation allowances, bonuses, commissions, and fringe benefits. Last day to file taxes 2013 It does not matter how you measure or make the payments. Last day to file taxes 2013 Amounts an employer pays as a bonus for signing or ratifying a contract in connection with the establishment of an employer-employee relationship and an amount paid to an employee for cancellation of an employment contract and relinquishment of contract rights are wages subject to social security, Medicare, and FUTA taxes and income tax withholding. Last day to file taxes 2013 Also, compensation paid to a former employee for services performed while still employed is wages subject to employment taxes. Last day to file taxes 2013 More information. Last day to file taxes 2013   See section 6 for a discussion of tips and section 7 for a discussion of supplemental wages. Last day to file taxes 2013 Also, see section 15 for exceptions to the general rules for wages. Last day to file taxes 2013 Publication 15-A provides additional information on wages, including nonqualified deferred compensation, and other compensation. Last day to file taxes 2013 Publication 15-B provides information on other forms of compensation, including: Accident and health benefits, Achievement awards, Adoption assistance, Athletic facilities, De minimis (minimal) benefits, Dependent care assistance, Educational assistance, Employee discounts, Employee stock options, Employer-provided cell phones, Group-term life insurance coverage, Health Savings Accounts, Lodging on your business premises, Meals, Moving expense reimbursements, No-additional-cost services, Retirement planning services, Transportation (commuting) benefits, Tuition reduction, and Working condition benefits. Last day to file taxes 2013 Employee business expense reimbursements. Last day to file taxes 2013   A reimbursement or allowance arrangement is a system by which you pay the advances, reimbursements, and charges for your employees' business expenses. Last day to file taxes 2013 How you report a reimbursement or allowance amount depends on whether you have an accountable or a nonaccountable plan. Last day to file taxes 2013 If a single payment includes both wages and an expense reimbursement, you must specify the amount of the reimbursement. Last day to file taxes 2013   These rules apply to all ordinary and necessary employee business expenses that would otherwise qualify for a deduction by the employee. Last day to file taxes 2013 Accountable plan. Last day to file taxes 2013   To be an accountable plan, your reimbursement or allowance arrangement must require your employees to meet all three of the following rules. Last day to file taxes 2013 They must have paid or incurred deductible expenses while performing services as your employees. Last day to file taxes 2013 The reimbursement or advance must be paid for the expense and must not be an amount that would have otherwise been paid by the employee. Last day to file taxes 2013 They must substantiate these expenses to you within a reasonable period of time. Last day to file taxes 2013 They must return any amounts in excess of substantiated expenses within a reasonable period of time. Last day to file taxes 2013   Amounts paid under an accountable plan are not wages and are not subject to income, social security, Medicare, and FUTA taxes. Last day to file taxes 2013   If the expenses covered by this arrangement are not substantiated (or amounts in excess of substantiated expenses are not returned within a reasonable period of time), the amount paid under the arrangement in excess of the substantiated expenses is treated as paid under a nonaccountable plan. Last day to file taxes 2013 This amount is subject to income, social security, Medicare, and FUTA taxes for the first payroll period following the end of the reasonable period of time. Last day to file taxes 2013   A reasonable period of time depends on the facts and circumstances. Last day to file taxes 2013 Generally, it is considered reasonable if your employees receive their advance within 30 days of the time they incur the expenses, adequately account for the expenses within 60 days after the expenses were paid or incurred, and return any amounts in excess of expenses within 120 days after the expenses were paid or incurred. Last day to file taxes 2013 Also, it is considered reasonable if you give your employees a periodic statement (at least quarterly) that asks them to either return or adequately account for outstanding amounts and they do so within 120 days. Last day to file taxes 2013 Nonaccountable plan. Last day to file taxes 2013   Payments to your employee for travel and other necessary expenses of your business under a nonaccountable plan are wages and are treated as supplemental wages and subject to income, social security, Medicare, and FUTA taxes. Last day to file taxes 2013 Your payments are treated as paid under a nonaccountable plan if: Your employee is not required to or does not substantiate timely those expenses to you with receipts or other documentation, You advance an amount to your employee for business expenses and your employee is not required to or does not return timely any amount he or she does not use for business expenses, You advance or pay an amount to your employee regardless of whether you reasonably expect the employee to have business expenses related to your business, or You pay an amount as a reimbursement you would have otherwise paid as wages. Last day to file taxes 2013   See section 7 for more information on supplemental wages. Last day to file taxes 2013 Per diem or other fixed allowance. Last day to file taxes 2013   You may reimburse your employees by travel days, miles, or some other fixed allowance under the applicable revenue procedure. Last day to file taxes 2013 In these cases, your employee is considered to have accounted to you if your reimbursement does not exceed rates established by the Federal Government. Last day to file taxes 2013 The 2013 standard mileage rate for auto expenses was 56. Last day to file taxes 2013 5 cents per mile. Last day to file taxes 2013 The rate for 2014 is 56 cents per mile. Last day to file taxes 2013   The government per diem rates for meals and lodging in the continental United States are listed in Publication 1542, Per Diem Rates. Last day to file taxes 2013 Other than the amount of these expenses, your employees' business expenses must be substantiated (for example, the business purpose of the travel or the number of business miles driven). Last day to file taxes 2013   If the per diem or allowance paid exceeds the amounts substantiated, you must report the excess amount as wages. Last day to file taxes 2013 This excess amount is subject to income tax withholding and payment of social security, Medicare, and FUTA taxes. Last day to file taxes 2013 Show the amount equal to the substantiated amount (for example, the nontaxable portion) in box 12 of Form W-2 using code “L. Last day to file taxes 2013 ” Wages not paid in money. Last day to file taxes 2013   If in the course of your trade or business you pay your employees in a medium that is neither cash nor a readily negotiable instrument, such as a check, you are said to pay them “in kind. Last day to file taxes 2013 ” Payments in kind may be in the form of goods, lodging, food, clothing, or services. Last day to file taxes 2013 Generally, the fair market value of such payments at the time they are provided is subject to federal income tax withholding and social security, Medicare, and FUTA taxes. Last day to file taxes 2013   However, noncash payments for household work, agricultural labor, and service not in the employer's trade or business are exempt from social security, Medicare, and FUTA taxes. Last day to file taxes 2013 Withhold income tax on these payments only if you and the employee agree to do so. Last day to file taxes 2013 Nonetheless, noncash payments for agricultural labor, such as commodity wages, are treated as cash payments subject to employment taxes if the substance of the transaction is a cash payment. Last day to file taxes 2013 Moving expenses. Last day to file taxes 2013   Reimbursed and employer-paid qualified moving expenses (those that would otherwise be deductible by the employee) paid under an accountable plan are not includible in an employee's income unless you have knowledge the employee deducted the expenses in a prior year. Last day to file taxes 2013 Reimbursed and employer-paid nonqualified moving expenses are includible in income and are subject to employment taxes and income tax withholding. Last day to file taxes 2013 For more information on moving expenses, see Publication 521, Moving Expenses. Last day to file taxes 2013 Meals and lodging. Last day to file taxes 2013   The value of meals is not taxable income and is not subject to income tax withholding and social security, Medicare, and FUTA taxes if the meals are furnished for the employer's convenience and on the employer's premises. Last day to file taxes 2013 The value of lodging is not subject to income tax withholding and social security, Medicare, and FUTA taxes if the lodging is furnished for the employer's convenience, on the employer's premises, and as a condition of employment. Last day to file taxes 2013    “For the convenience of the employer” means you have a substantial business reason for providing the meals and lodging other than to provide additional compensation to the employee. Last day to file taxes 2013 For example, meals you provide at the place of work so that an employee is available for emergencies during his or her lunch period are generally considered to be for your convenience. Last day to file taxes 2013   However, whether meals or lodging are provided for the convenience of the employer depends on all of the facts and circumstances. Last day to file taxes 2013 A written statement that the meals or lodging are for your convenience is not sufficient. Last day to file taxes 2013 50% test. Last day to file taxes 2013   If over 50% of the employees who are provided meals on an employer's business premises receive these meals for the convenience of the employer, all meals provided on the premises are treated as furnished for the convenience of the employer. Last day to file taxes 2013 If this 50% test is met, the value of the meals is excludable from income for all employees and is not subject to federal income tax withholding or employment taxes. Last day to file taxes 2013 For more information, see Publication 15-B. Last day to file taxes 2013 Health insurance plans. Last day to file taxes 2013   If you pay the cost of an accident or health insurance plan for your employees, including an employee's spouse and dependents, your payments are not wages and are not subject to social security, Medicare, and FUTA taxes, or federal income tax withholding. Last day to file taxes 2013 Generally, this exclusion also applies to qualified long-term care insurance contracts. Last day to file taxes 2013 However, for income tax withholding, the value of health insurance benefits must be included in the wages of S corporation employees who own more than 2% of the S corporation (2% shareholders). Last day to file taxes 2013 For social security, Medicare, and FUTA taxes, the health insurance benefits are excluded from the wages only for employees and their dependents or for a class or classes of employees and their dependents. Last day to file taxes 2013 See Announcement 92-16 for more information. Last day to file taxes 2013 You can find Announcement 92-16 on page 53 of Internal Revenue Bulletin 1992-5. Last day to file taxes 2013 Health Savings Accounts and medical savings accounts. Last day to file taxes 2013   Your contributions to an employee's Health Savings Account (HSA) or Archer medical savings account (MSA) are not subject to social security, Medicare, or FUTA taxes, or federal income tax withholding if it is reasonable to believe at the time of payment of the contributions they will be excludable from the income of the employee. Last day to file taxes 2013 To the extent it is not reasonable to believe they will be excludable, your contributions are subject to these taxes. Last day to file taxes 2013 Employee contributions to their HSAs or MSAs through a payroll deduction plan must be included in wages and are subject to social security, Medicare, and FUTA taxes and income tax withholding. Last day to file taxes 2013 However, HSA contributions made under a salary reduction arrangement in a section 125 cafeteria plan are not wages and are not subject to employment taxes or withholding. Last day to file taxes 2013 For more information, see the Instructions for Form 8889, Health Savings Accounts (HSAs). Last day to file taxes 2013 Medical care reimbursements. Last day to file taxes 2013   Generally, medical care reimbursements paid for an employee under an employer's self-insured medical reimbursement plan are not wages and are not subject to social security, Medicare, and FUTA taxes, or income tax withholding. Last day to file taxes 2013 See Publication 15-B for an exception for highly compensated employees. Last day to file taxes 2013 Differential wage payments. Last day to file taxes 2013   Differential wage payments are any payments made by an employer to an individual for a period during which the individual is performing service in the uniformed services while on active duty for a period of more than 30 days and represent all or a portion of the wages the individual would have received from the employer if the individual were performing services for the employer. Last day to file taxes 2013   Differential wage payments are wages for income tax withholding, but are not subject to social security, Medicare, or FUTA taxes. Last day to file taxes 2013 Employers should report differential wage payments in box 1 of Form W-2. Last day to file taxes 2013 For more information about the tax treatment of differential wage payments, visit IRS. Last day to file taxes 2013 gov and enter “employees in a combat zone” in the search box. Last day to file taxes 2013 Fringe benefits. Last day to file taxes 2013   You generally must include fringe benefits in an employee's gross income (but see Nontaxable fringe benefits next). Last day to file taxes 2013 The benefits are subject to income tax withholding and employment taxes. Last day to file taxes 2013 Fringe benefits include cars you provide, flights on aircraft you provide, free or discounted commercial flights, vacations, discounts on property or services, memberships in country clubs or other social clubs, and tickets to entertainment or sporting events. Last day to file taxes 2013 In general, the amount you must include is the amount by which the fair market value of the benefits is more than the sum of what the employee paid for it plus any amount the law excludes. Last day to file taxes 2013 There are other special rules you and your employees may use to value certain fringe benefits. Last day to file taxes 2013 See Publication 15-B for more information. Last day to file taxes 2013 Nontaxable fringe benefits. Last day to file taxes 2013   Some fringe benefits are not taxable (or are minimally taxable) if certain conditions are met. Last day to file taxes 2013 See Publication 15-B for details. Last day to file taxes 2013 The following are some examples of nontaxable fringe benefits. Last day to file taxes 2013 Services provided to your employees at no additional cost to you. Last day to file taxes 2013 Qualified employee discounts. Last day to file taxes 2013 Working condition fringes that are property or services the employee could deduct as a business expense if he or she had paid for it. Last day to file taxes 2013 Examples include a company car for business use and subscriptions to business magazines. Last day to file taxes 2013 Certain minimal value fringes (including an occasional cab ride when an employee must work overtime and meals you provide at eating places you run for your employees if the meals are not furnished at below cost). Last day to file taxes 2013 Qualified transportation fringes subject to specified conditions and dollar limitations (including transportation in a commuter highway vehicle, any transit pass, and qualified parking). Last day to file taxes 2013 Qualified moving expense reimbursement. Last day to file taxes 2013 See Moving expenses , earlier in this section, for details. Last day to file taxes 2013 The use of on-premises athletic facilities, if substantially all of the use is by employees, their spouses, and their dependent children. Last day to file taxes 2013 Qualified tuition reduction an educational organization provides to its employees for education. Last day to file taxes 2013 For more information, see Publication 970, Tax Benefits for Education. Last day to file taxes 2013 Employer-provided cell phones provided primarily for a noncompensatory business reason. Last day to file taxes 2013   However, do not exclude the following fringe benefits from the income of highly compensated employees unless the benefit is available to other employees on a nondiscriminatory basis. Last day to file taxes 2013 No-additional-cost services. Last day to file taxes 2013 Qualified employee discounts. Last day to file taxes 2013 Meals provided at an employer operated eating facility. Last day to file taxes 2013 Reduced tuition for education. Last day to file taxes 2013  For more information, including the definition of a highly compensated employee, see Publication 15-B. Last day to file taxes 2013 When fringe benefits are treated as paid. Last day to file taxes 2013   You may choose to treat certain noncash fringe benefits as paid by the pay period, by the quarter, or on any other basis you choose as long as you treat the benefits as paid at least once a year. Last day to file taxes 2013 You do not have to make a formal choice of payment dates or notify the IRS of the dates you choose. Last day to file taxes 2013 You do not have to make this choice for all employees. Last day to file taxes 2013 You may change methods as often as you like, as long as you treat all benefits provided in a calendar year as paid by December 31 of the calendar year. Last day to file taxes 2013 See Publication 15-B for more information, including a discussion of the special accounting rule for fringe benefits provided during November and December. Last day to file taxes 2013 Valuation of fringe benefits. Last day to file taxes 2013   Generally, you must determine the value of fringe benefits no later than January 31 of the next year. Last day to file taxes 2013 Before January 31, you may reasonably estimate the value of the fringe benefits for purposes of withholding and depositing on time. Last day to file taxes 2013 Withholding on fringe benefits. Last day to file taxes 2013   You may add the value of fringe benefits to regular wages for a payroll period and figure withholding taxes on the total, or you may withhold federal income tax on the value of the fringe benefits at the optional flat 25% supplemental wage rate. Last day to file taxes 2013 However, see Withholding on supplemental wages when an employee receives more than $1 million of supplemental wages during the calendar year in section 7. Last day to file taxes 2013   You may choose not to withhold income tax on the value of an employee's personal use of a vehicle you provide. Last day to file taxes 2013 You must, however, withhold social security and Medicare taxes on the use of the vehicle. Last day to file taxes 2013 See Publication 15-B for more information on this election. Last day to file taxes 2013 Depositing taxes on fringe benefits. Last day to file taxes 2013   Once you choose when fringe benefits are paid, you must deposit taxes in the same deposit period you treat the fringe benefits as paid. Last day to file taxes 2013 To avoid a penalty, deposit the taxes following the general deposit rules for that deposit period. Last day to file taxes 2013   If you determine by January 31 you overestimated the value of a fringe benefit at the time you withheld and deposited for it, you may claim a refund for the overpayment or have it applied to your next employment tax return. Last day to file taxes 2013 See Valuation of fringe benefits , earlier. Last day to file taxes 2013 If you underestimated the value and deposited too little, you may be subject to a failure-to-deposit penalty. Last day to file taxes 2013 See section 11 for information on deposit penalties. Last day to file taxes 2013   If you deposited the required amount of taxes but withheld a lesser amount from the employee, you can recover from the employee the social security, Medicare, or income taxes you deposited on his or her behalf, and included in the employee's Form W-2. Last day to file taxes 2013 However, you must recover the income taxes before April 1 of the following year. Last day to file taxes 2013 Sick pay. Last day to file taxes 2013   In general, sick pay is any amount you pay under a plan to an employee who is unable to work because of sickness or injury. Last day to file taxes 2013 These amounts are sometimes paid by a third party, such as an insurance company or an employees' trust. Last day to file taxes 2013 In either case, these payments are subject to social security, Medicare, and FUTA taxes. Last day to file taxes 2013 Sick pay becomes exempt from these taxes after the end of 6 calendar months after the calendar month the employee last worked for the employer. Last day to file taxes 2013 The payments are always subject to federal income tax. Last day to file taxes 2013 See Publication 15-A for more information. Last day to file taxes 2013 6. Last day to file taxes 2013 Tips Tips your employee receives from customers are generally subject to withholding. Last day to file taxes 2013 Your employee must report cash tips to you by the 10th of the month after the month the tips are received. Last day to file taxes 2013 The report should include tips you paid over to the employee for charge customers, tips the employee received directly from customers, and tips received from other employees under any tip-sharing arrangement. Last day to file taxes 2013 Both directly and indirectly tipped employees must report tips to you. Last day to file taxes 2013 No report is required for months when tips are less than $20. Last day to file taxes 2013 Your employee reports the tips on Form 4070, Employee's Report of Tips to Employer, or on a similar statement. Last day to file taxes 2013 The statement must be signed by the employee and must include: The employee's name, address, and SSN, Your name and address, The month or period the report covers, and The total of tips received during the month or period. Last day to file taxes 2013 Both Forms 4070 and 4070-A, Employee's Daily Record of Tips, are included in Publication 1244, Employee's Daily Record of Tips and Report to Employer. Last day to file taxes 2013 You are permitted to establish a system for electronic tip reporting by employees. Last day to file taxes 2013 See Regulations section 31. Last day to file taxes 2013 6053-1(d). Last day to file taxes 2013 Collecting taxes on tips. Last day to file taxes 2013   You must collect income tax, employee social security tax, and employee Medicare tax on the employee's tips. Last day to file taxes 2013 The withholding rules for withholding an employee's share of Medicare tax on tips also apply to withholding the Additional Medicare Tax once wages and tips exceed $200,000 in the calendar year. Last day to file taxes 2013 If an employee reports to you in writing $20 or more of tips in a month, the tips are also subject to FUTA tax. Last day to file taxes 2013   You can collect these taxes from the employee's wages or from other funds he or she makes available. Last day to file taxes 2013 See Tips treated as supplemental wages in section 7 for more information. Last day to file taxes 2013 Stop collecting the employee social security tax when his or her wages and tips for tax year 2014 reach $117,000; collect the income and employee Medicare taxes for the whole year on all wages and tips. Last day to file taxes 2013 You are responsible for the employer social security tax on wages and tips until the wages (including tips) reach the limit. Last day to file taxes 2013 You are responsible for the employer Medicare tax for the whole year on all wages and tips. Last day to file taxes 2013 File Form 941 or Form 944 to report withholding and employment taxes on tips. Last day to file taxes 2013 Ordering rule. Last day to file taxes 2013   If, by the 10th of the month after the month for which you received an employee's report on tips, you do not have enough employee funds available to deduct the employee tax, you no longer have to collect it. Last day to file taxes 2013 If there are not enough funds available, withhold taxes in the following order. Last day to file taxes 2013 Withhold on regular wages and other compensation. Last day to file taxes 2013 Withhold social security and Medicare taxes on tips. Last day to file taxes 2013 Withhold income tax on tips. Last day to file taxes 2013 Reporting tips. Last day to file taxes 2013   Report tips and any collected and uncollected social security and Medicare taxes on Form W-2 and on Form 941, lines 5b, 5c, and 5d (Form 944, lines 4b, 4c, and 4d). Last day to file taxes 2013 Report an adjustment on Form 941, line 9 (Form 944, line 6), for the uncollected social security and Medicare taxes. Last day to file taxes 2013 Enter the amount of uncollected social security tax and Medicare tax on Form W-2, box 12, with codes “A” and “B. Last day to file taxes 2013 ” Do not include any uncollected Additional Medicare Tax in box 12 of Form W-2. Last day to file taxes 2013 See section 13 and the General Instructions for Forms W-2 and W-3. Last day to file taxes 2013   Revenue Ruling 2012-18 provides guidance for employers regarding social security and Medicare taxes imposed on tips, including information on the reporting of the employer share of social security and Medicare taxes under section 3121(q), the difference between tips and service charges, and the section 45B credit. Last day to file taxes 2013 See Revenue Ruling 2012-18, 2012-26 I. Last day to file taxes 2013 R. Last day to file taxes 2013 B. Last day to file taxes 2013 1032, available at www. Last day to file taxes 2013 irs. Last day to file taxes 2013 gov/irb/2012-26_IRB/ar07. Last day to file taxes 2013 html. Last day to file taxes 2013 Allocated tips. Last day to file taxes 2013   If you operate a large food or beverage establishment, you must report allocated tips under certain circumstances. Last day to file taxes 2013 However, do not withhold income, social security, or Medicare taxes on allocated tips. Last day to file taxes 2013   A large food or beverage establishment is one that provides food or beverages for consumption on the premises, where tipping is customary, and where there were normally more than 10 employees on a typical business day during the preceding year. Last day to file taxes 2013   The tips may be allocated by one of three methods—hours worked, gross receipts, or good faith agreement. Last day to file taxes 2013 For information about these allocation methods, including the requirement to file Forms 8027 electronically if 250 or more forms are filed, see the Instructions for Form 8027. Last day to file taxes 2013 For information on filing Form 8027 electronically with the IRS, see Publication 1239. Last day to file taxes 2013 Tip Rate Determination and Education Program. Last day to file taxes 2013   Employers may participate in the Tip Rate Determination and Education Program. Last day to file taxes 2013 The program primarily consists of two voluntary agreements developed to improve tip income reporting by helping taxpayers to understand and meet their tip reporting responsibilities. Last day to file taxes 2013 The two agreements are the Tip Rate Determination Agreement (TRDA) and the Tip Reporting Alternative Commitment (TRAC). Last day to file taxes 2013 A tip agreement, the Gaming Industry Tip Compliance Agreement (GITCA), is available for the gaming (casino) industry. Last day to file taxes 2013 To get more information about TRDA and TRAC agreements, see Publication 3144, Tips on Tips. Last day to file taxes 2013 Additionally, visit IRS. Last day to file taxes 2013 gov and enter “MSU tips” in the search box to get more information about GITCA, TRDA, or TRAC agreements. Last day to file taxes 2013 7. Last day to file taxes 2013 Supplemental Wages Supplemental wages are wage payments to an employee that are not regular wages. Last day to file taxes 2013 They include, but are not limited to, bonuses, commissions, overtime pay, payments for accumulated sick leave, severance pay, awards, prizes, back pay, retroactive pay increases, and payments for nondeductible moving expenses. Last day to file taxes 2013 Other payments subject to the supplemental wage rules include taxable fringe benefits and expense allowances paid under a nonaccountable plan. Last day to file taxes 2013 How you withhold on supplemental wages depends on whether the supplemental payment is identified as a separate payment from regular wages. Last day to file taxes 2013 See Regulations section 31. Last day to file taxes 2013 3402(g)-1 for additional guidance for wages paid after January 1, 2007. Last day to file taxes 2013 Also see Revenue Ruling 2008-29, 2008-24 I. Last day to file taxes 2013 R. Last day to file taxes 2013 B. Last day to file taxes 2013 1149, available at www. Last day to file taxes 2013 irs. Last day to file taxes 2013 gov/irb/2008-24_IRB/ar08. Last day to file taxes 2013 html. Last day to file taxes 2013 Withholding on supplemental wages when an employee receives more than $1 million of supplemental wages from you during the calendar year. Last day to file taxes 2013   Special rules apply to the extent supplemental wages paid to any one employee during the calendar year exceed $1 million. Last day to file taxes 2013 If a supplemental wage payment, together with other supplemental wage payments made to the employee during the calendar year, exceeds $1 million, the excess is subject to withholding at 39. Last day to file taxes 2013 6% (or the highest rate of income tax for the year). Last day to file taxes 2013 Withhold using the 39. Last day to file taxes 2013 6% rate without regard to the employee's Form W-4. Last day to file taxes 2013 In determining supplemental wages paid to the employee during the year, include payments from all businesses under common control. Last day to file taxes 2013 For more information, see Treasury Decision 9276, 2006-37 I. Last day to file taxes 2013 R. Last day to file taxes 2013 B. Last day to file taxes 2013 423, available at www. Last day to file taxes 2013 irs. Last day to file taxes 2013 gov/irb/2006-37_IRB/ar09. Last day to file taxes 2013 html. Last day to file taxes 2013 Withholding on supplemental wage payments to an employee who does not receive $1 million of supplemental wages during the calendar year. Last day to file taxes 2013   If the supplemental wages paid to the employee during the calendar year are less than or equal to $1 million, the following rules apply in determining the amount of income tax to be withheld. Last day to file taxes 2013 Supplemental wages combined with regular wages. Last day to file taxes 2013   If you pay supplemental wages with regular wages but do not specify the amount of each, withhold federal income tax as if the total were a single payment for a regular payroll period. Last day to file taxes 2013 Supplemental wages identified separately from regular wages. Last day to file taxes 2013   If you pay supplemental wages separately (or combine them in a single payment and specify the amount of each), the federal income tax withholding method depends partly on whether you withhold income tax from your employee's regular wages. Last day to file taxes 2013 If you withheld income tax from an employee's regular wages in the current or immediately preceding calendar year, you can use one of the following methods for the supplemental wages. Last day to file taxes 2013 Withhold a flat 25% (no other percentage allowed). Last day to file taxes 2013 If the supplemental wages are paid concurrently with regular wages, add the supplemental wages to the concurrently paid regular wages. Last day to file taxes 2013 If there are no concurrently paid regular wages, add the supplemental wages to alternatively, either the regular wages paid or to be paid for the current payroll period or the regular wages paid for the preceding payroll period. Last day to file taxes 2013 Figure the income tax withholding as if the total of the regular wages and supplemental wages is a single payment. Last day to file taxes 2013 Subtract the tax withheld from the regular wages. Last day to file taxes 2013 Withhold the remaining tax from the supplemental wages. Last day to file taxes 2013 If there were other payments of supplemental wages paid during the payroll period made before the current payment of supplemental wages, aggregate all the payments of supplemental wages paid during the payroll period with the regular wages paid during the payroll period, calculate the tax on the total, subtract the tax already withheld from the regular wages and the previous supplemental wage payments, and withhold the remaining tax. Last day to file taxes 2013 If you did not withhold income tax from the employee's regular wages in the current or immediately preceding calendar year, use method 1-b. Last day to file taxes 2013 This would occur, for example, when the value of the employee's withholding allowances claimed on Form W-4 is more than the wages. Last day to file taxes 2013 Regardless of the method you use to withhold income tax on supplemental wages, they are subject to social security, Medicare, and FUTA taxes. Last day to file taxes 2013 Example 1. Last day to file taxes 2013 You pay John Peters a base salary on the 1st of each month. Last day to file taxes 2013 He is single and claims one withholding allowance. Last day to file taxes 2013 In January he is paid $1,000. Last day to file taxes 2013 Using the wage bracket tables, you withhold $50 from this amount. Last day to file taxes 2013 In February, he receives salary of $1,000 plus a commission of $2,000, which you combine with regular wages and do not separately identify. Last day to file taxes 2013 You figure the withholding based on the total of $3,000. Last day to file taxes 2013 The correct withholding from the tables is $338. Last day to file taxes 2013 Example 2. Last day to file taxes 2013 You pay Sharon Warren a base salary on the 1st of each month. Last day to file taxes 2013 She is single and claims one allowance. Last day to file taxes 2013 Her May 1 pay is $2,000. Last day to file taxes 2013 Using the wage bracket tables, you withhold $188. Last day to file taxes 2013 On May 14 she receives a bonus of $1,000. Last day to file taxes 2013 Electing to use supplemental wage withholding method 1-b, you: Add the bonus amount to the amount of wages from the most recent base salary pay date (May 1) ($2,000 + $1,000 = $3,000). Last day to file taxes 2013 Determine the amount of withholding on the combined $3,000 amount to be $338 using the wage bracket tables. Last day to file taxes 2013 Subtract the amount withheld from wages on the most recent base salary pay date (May 1) from the combined withholding amount ($338 – $188 = $150). Last day to file taxes 2013 Withhold $150 from the bonus payment. Last day to file taxes 2013 Example 3. Last day to file taxes 2013 The facts are the same as in Example 2, except you elect to use the flat rate method of withholding on the bonus. Last day to file taxes 2013 You withhold 25% of $1,000, or $250, from Sharon's bonus payment. Last day to file taxes 2013 Example 4. Last day to file taxes 2013 The facts are the same as in Example 2, except you elect to pay Sharon a second bonus of $2,000 on May 28. Last day to file taxes 2013 Using supplemental wage withholding method 1-b, you: Add the first and second bonus amounts to the amount of wages from the most recent base salary pay date (May 1) ($2,000 + $1,000 + $2,000 = $5,000). Last day to file taxes 2013 Determine the amount of withholding on the combined $5,000 amount to be $781 using the wage bracket tables. Last day to file taxes 2013 Subtract the amounts withheld from wages on the most recent base salary pay date (May 1) and the amounts withheld from the first bonus payment from the combined withholding amount ($781 – $188 – $150 = $443). Last day to file taxes 2013 Withhold $443 from the second bonus payment. Last day to file taxes 2013 Tips treated as supplemental wages. Last day to file taxes 2013   Withhold income tax on tips from wages earned by the employee or from other funds the employee makes available. Last day to file taxes 2013 If an employee receives regular wages and reports tips, figure income tax withholding as if the tips were supplemental wages. Last day to file taxes 2013 If you have not withheld income tax from the regular wages, add the tips to the regular wages. Last day to file taxes 2013 Then withhold income tax on the total. Last day to file taxes 2013 If you withheld income tax from the regular wages, you can withhold on the tips by method 1-a or 1-b discussed earlier in this section under Supplemental wages identified separately from regular wages. Last day to file taxes 2013 Vacation pay. Last day to file taxes 2013   Vacation pay is subject to withholding as if it were a regular wage payment. Last day to file taxes 2013 When vacation pay is in addition to regular wages for the vacation period, treat it as a supplemental wage payment. Last day to file taxes 2013 If the vacation pay is for a time longer than your usual payroll period, spread it over the pay periods for which you pay it. Last day to file taxes 2013 8. Last day to file taxes 2013 Payroll Period Your payroll period is a period of service for which you usually pay wages. Last day to file taxes 2013 When you have a regular payroll period, withhold income tax for that time period even if your employee does not work the full period. Last day to file taxes 2013 No regular payroll period. Last day to file taxes 2013   When you do not have a regular payroll period, withhold the tax as if you paid wages for a daily or miscellaneous payroll period. Last day to file taxes 2013 Figure the number of days (including Sundays and holidays) in the period covered by the wage payment. Last day to file taxes 2013 If the wages are unrelated to a specific length of time (for example, commissions paid on completion of a sale), count back the number of days from the payment period to the latest of: The last wage payment made during the same calendar year, The date employment began, if during the same calendar year, or January 1 of the same year. Last day to file taxes 2013 Employee paid for period less than 1 week. Last day to file taxes 2013   When you pay an employee for a period of less than one week, and the employee signs a statement under penalties of perjury indicating he or she is not working for any other employer during the same week for wages subject to withholding, figure withholding based on a weekly payroll period. Last day to file taxes 2013 If the employee later begins to work for another employer for wages subject to withholding, the employee must notify you within 10 days. Last day to file taxes 2013 You then figure withholding based on the daily or miscellaneous period. Last day to file taxes 2013 9. Last day to file taxes 2013 Withholding From Employees' Wages Income Tax Withholding Using Form W-4 to figure withholding. Last day to file taxes 2013   To know how much federal income tax to withhold from employees' wages, you should have a Form W-4 on file for each employee. Last day to file taxes 2013 Encourage your employees to file an updated Form W-4 for 2014, especially if they owed taxes or received a large refund when filing their 2013 tax return. Last day to file taxes 2013 Advise your employees to use the IRS Withholding Calculator on the IRS website at www. Last day to file taxes 2013 irs. Last day to file taxes 2013 gov/individuals for help in determining how many withholding allowances to claim on their Forms W-4. Last day to file taxes 2013   Ask all new employees to give you a signed Form W-4 when they start work. Last day to file taxes 2013 Make the form effective with the first wage payment. Last day to file taxes 2013 If a new employee does not give you a completed Form W-4, withhold income tax as if he or she is single, with no withholding allowances. Last day to file taxes 2013 Form in Spanish. Last day to file taxes 2013   You can provide Formulario W-4(SP), Certificado de Exención de Retenciones del Empleado, in place of Form W-4, to your Spanish-speaking employees. Last day to file taxes 2013 For more information, see Publicación 17(SP), El Impuesto Federal sobre los Ingresos (Para Personas Físicas). Last day to file taxes 2013 The rules discussed in this section that apply to Form W-4 also apply to Formulario W-4(SP). Last day to file taxes 2013 Electronic system to receive Form W-4. Last day to file taxes 2013   You may establish a system to electronically receive Forms W-4 from your employees. Last day to file taxes 2013 See Regulations section 31. Last day to file taxes 2013 3402(f)(5)-1(c) for more information. Last day to file taxes 2013 Effective date of Form W-4. Last day to file taxes 2013   A Form W-4 remains in effect until the employee gives you a new one. Last day to file taxes 2013 When you receive a new Form W-4 from an employee, do not adjust withholding for pay periods before the effective date of the new form. Last day to file taxes 2013 If an employee gives you a Form W-4 that replaces an existing Form W-4, begin withholding no later than the start of the first payroll period ending on or after the 30th day from the date when you received the replacement Form W-4. Last day to file taxes 2013 For exceptions, see Exemption from federal income tax withholding , IRS review of requested Forms W-4 , and Invalid Forms W-4 , later in this section. Last day to file taxes 2013 A Form W-4 that makes a change for the next calendar year will not take effect in the current calendar year. Last day to file taxes 2013 Successor employer. Last day to file taxes 2013   If you are a successor employer (see Successor employer , later in this section), secure new Forms W-4 from the transferred employees unless the “Alternative Procedure” in section 5 of Revenue Procedure 2004-53 applies. Last day to file taxes 2013 See Revenue Procedure 2004-53, 2004-34 I. Last day to file taxes 2013 R. Last day to file taxes 2013 B. Last day to file taxes 2013 320, available at www. Last day to file taxes 2013 irs. Last day to file taxes 2013 gov/irb/2004-34_IRB/ar13. Last day to file taxes 2013 html. Last day to file taxes 2013 Completing Form W-4. Last day to file taxes 2013   The amount of any federal income tax withholding must be based on marital status and withholding allowances. Last day to file taxes 2013 Your employees may not base their withholding amounts on a fixed dollar amount or percentage. Last day to file taxes 2013 However, an employee may specify a dollar amount to be withheld in addition to the amount of withholding based on filing status and withholding allowances claimed on Form W-4. Last day to file taxes 2013 Employees may claim fewer withholding allowances than they are entitled to claim. Last day to file taxes 2013 They may wish to claim fewer allowances to ensure they have enough withholding or to offset the tax on other sources of taxable income not subject to withholding. Last day to file taxes 2013 See Publication 505, Tax Withholding and Estimated Tax, for more information about completing Form W-4. Last day to file taxes 2013 Along with Form W-4, you may wish to order Publication 505 for use by your employees. Last day to file taxes 2013 Do not accept any withholding or estimated tax payments from your employees in addition to withholding based on their Form W-4. Last day to file taxes 2013 If they require additional withholding, they should submit a new Form W-4 and, if necessary, pay estimated tax by filing Form 1040-ES, Estimated Tax for Individuals, or by using the Electronic Federal Tax Payment System (EFTPS) to make estimated tax payments. Last day to file taxes 2013 Exemption from federal income tax withholding. Last day to file taxes 2013   Generally, an employee may claim exemption from federal income tax withholding because he or she had no income tax liability last year and expects none this year. Last day to file taxes 2013 See the Form W-4 instructions for more information. Last day to file taxes 2013 However, the wages are still subject to social security and Medicare taxes. Last day to file taxes 2013 See also Invalid Forms W-4 , later in this section. Last day to file taxes 2013   A Form W-4 claiming exemption from withholding is effective when it is filed with the employer and only for that calendar year. Last day to file taxes 2013 To continue to be exempt from withholding in the next calendar year, an employee must give you a new Form W-4 by February 15. Last day to file taxes 2013 If the employee does not give you a new Form W-4 by February 15, begin withholding based on the last Form W-4 for the employee that did not claim an exemption from withholding or, if one was not filed, then withhold tax as if he or she is single with zero withholding allowances. Last day to file taxes 2013 If the employee provides a new Form W-4 claiming exemption from withholding on February 16 or later, you may apply it to future wages but do not refund any taxes already withheld. Last day to file taxes 2013 Withholding income taxes on the wages of nonresident alien employees. Last day to file taxes 2013   In general, you must withhold federal income taxes on the wages of nonresident alien employees. Last day to file taxes 2013 However, see Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities, for exceptions to this general rule. Last day to file taxes 2013 Also see section 3 of Publication 51 (Circular A), Agricultural Employer's Tax Guide, for guidance on H-2A visa workers. Last day to file taxes 2013 Withholding adjustment for nonresident alien employees. Last day to file taxes 2013   For 2014, apply the procedure discussed next to figure the amount of income tax to withhold from the wages of nonresident alien employees performing services within the United States. Last day to file taxes 2013 Nonresident alien students from India and business apprentices from India are not subject to this procedure. Last day to file taxes 2013 Instructions. Last day to file taxes 2013   To figure how much income tax to withhold from the wages paid to a nonresident alien employee performing services in the United States, use the following steps. Last day to file taxes 2013 Step 1. Last day to file taxes 2013   Add to the wages paid to the nonresident alien employee for the payroll period the amount shown in the chart below for the applicable payroll period. Last day to file taxes 2013    Amount to Add to Nonresident Alien Employee's Wages for Calculating Income Tax Withholding Only   Payroll Period Add Additional     Weekly $ 43. Last day to file taxes 2013 30     Biweekly 86. Last day to file taxes 2013 50     Semimonthly 93. Last day to file taxes 2013 80     Monthly 187. Last day to file taxes 2013 50     Quarterly 562. Last day to file taxes 2013 50     Semiannually 1,125. Last day to file taxes 2013 00     Annually 2,250. Last day to file taxes 2013 00     Daily or Miscellaneous (each day of the payroll period) 8. Last day to file taxes 2013 70   Step 2. Last day to file taxes 2013   Use the amount figured in Step 1 and the number of withholding allowances claimed (generally limited to one allowance) to figure income tax withholding. Last day to file taxes 2013 Determine the value of withholding allowances by multiplying the number of withholding allowances claimed by the appropriate amount from Table 5. Last day to file taxes 2013 Percentage Method—2014 Amount for One Withholding Allowance shown on page 41. Last day to file taxes 2013 If you are using the Percentage Method Tables for Income Tax Withholding, provided on pages 43–44, reduce the amount figured in Step 1 by the value of withholding allowances and use that reduced amount to figure the income tax withholding. Last day to file taxes 2013 If you are using the Wage Bracket Method for Income Tax Withholding, provided on pages 45–64, use the amount figured in Step 1 and the number of withholding allowances to figure income tax withholding. Last day to file taxes 2013 The amounts from the chart above are added to wages solely for calculating income tax withholding on the wages of the nonresident alien employee. Last day to file taxes 2013 The amounts from the chart should not be included in any box on the employee's Form W-2 and do not increase the income tax liability of the employee. Last day to file taxes 2013 Also, the amounts from the chart do not increase the social security tax or Medicare tax liability of the employer or the employee, or the FUTA tax liability of the employer. Last day to file taxes 2013 This procedure only applies to nonresident alien employees who have wages subject to income tax withholding. Last day to file taxes 2013 Example. Last day to file taxes 2013 An employer using the percentage method of withholding pays wages of $500 for a biweekly payroll period to a married nonresident alien employee. Last day to file taxes 2013 The nonresident alien has properly completed Form W-4, entering marital status as “single” with one withholding allowance and indicating status as a nonresident alien on Form W-4, line 6 (see Nonresident alien employee's Form W-4 , later in this section). Last day to file taxes 2013 The employer determines the wages to be used in the withholding tables by adding to the $500 amount of wages paid the amount of $86. Last day to file taxes 2013 50 from the chart under Step 1 ($586. Last day to file taxes 2013 50 total). Last day to file taxes 2013 The employer then applies the applicable tables to determine the income tax withholding for nonresident aliens (see Step 2 ). Last day to file taxes 2013 Reminder: If you use the Percentage Method Tables for Income Tax Withholding, reduce the amount figured in Step 1 by the value of withholding allowances and use that reduced amount to figure income tax withholding. Last day to file taxes 2013 The $86. Last day to file taxes 2013 50 added to wages for calculating income tax withholding is not reported on Form W-2, and does not increase the income tax liability of the employee. Last day to file taxes 2013 Also, the $86. Last day to file taxes 2013 50 added to wages does not affect the social security tax or Medicare tax liability of the employer or the employee, or the FUTA tax liability of the employer. Last day to file taxes 2013 Supplemental wage payment. Last day to file taxes 2013   This procedure for determining the amount of income tax withholding does not apply to a supplemental wage payment (see section 7) if the 39. Last day to file taxes 2013 6% mandatory flat rate withholding applies or if the 25% optional flat rate withholding is being used to calculate income tax withholding on the supplemental wage payment. Last day to file taxes 2013 Nonresident alien employee's Form W-4. Last day to file taxes 2013   When completing Forms W-4, nonresident aliens are required to: Not claim exemption from income tax withholding, Request withholding as if they are single, regardless of their actual marital status, Claim only one allowance (if the nonresident alien is a resident of Canada, Mexico, or South Korea, or a student or business apprentice from India, he or she may claim more than one allowance), and Write “Nonresident Alien” or “NRA” above the dotted line on line 6 of Form W-4. Last day to file taxes 2013   If you maintain an electronic Form W-4 system, you should provide a field for nonresident aliens to enter nonresident alien status in lieu of writing “Nonresident Alien” or “NRA” above the dotted line on line 6. Last day to file taxes 2013 A nonresident alien employee may request additional withholding at his or her option for other purposes, although such additions should not be necessary for withholding to cover federal income tax liability related to employment. Last day to file taxes 2013 Form 8233. Last day to file taxes 2013   If a nonresident alien employee claims a tax treaty exemption from withholding, the employee must submit Form 8233, Exemption From Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual, with respect to the income exempt under the treaty, instead of Form W-4. Last day to file taxes 2013 See Publication 515 for details. Last day to file taxes 2013 IRS review of requested Forms W-4. Last day to file taxes 2013   When requested by the IRS, you must make original Forms W-4 available for inspection by an IRS employee. Last day to file taxes 2013 You may also be directed to send certain Forms W-4 to the IRS. Last day to file taxes 2013 You may receive a notice from the IRS requiring you to submit a copy of Form W-4 for one or more of your named employees. Last day to file taxes 2013 Send the requested copy or copies of Form W-4 to the IRS at the address provided and in the manner directed by the notice. Last day to file taxes 2013 The IRS may also require you to submit copies of Form W-4 to the IRS as directed by Treasury Decision 9337, 2007-35 I. Last day to file taxes 2013 R. Last day to file taxes 2013 B. Last day to file taxes 2013 455, which is available at www. Last day to file taxes 2013 irs. Last day to file taxes 2013 gov/irb/2007-35_IRB/ar10. Last day to file taxes 2013 html. Last day to file taxes 2013 When we refer to Form W-4, the same rules apply to Formulario W-4(SP), its Spanish translation. Last day to file taxes 2013 After submitting a copy of a requested Form W-4 to the IRS, continue to withhold federal income tax based on that Form W-4 if it is valid (see Invalid Forms W-4 , later in this section). Last day to file taxes 2013 However, if the IRS later notifies you in writing the employee is not entitled to claim exemption from withholding or a claimed number of withholding allowances, withhold federal income tax based on the effective date, marital status, and maximum number of withholding allowances specified in the IRS notice (commonly referred to as a "lock-in letter