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State Tax Returns

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State Tax Returns

State tax returns 13. State tax returns   Basis of Property Table of Contents Introduction Useful Items - You may want to see: Cost BasisReal Property Adjusted BasisIncreases to Basis Decreases to Basis Basis Other Than CostProperty Received for Services Taxable Exchanges Involuntary Conversions Nontaxable Exchanges Property Transferred From a Spouse Property Received as a Gift Inherited Property Property Changed From Personal to Business or Rental Use Stocks and Bonds Introduction This chapter discusses how to figure your basis in property. State tax returns It is divided into the following sections. State tax returns Cost basis. State tax returns Adjusted basis. State tax returns Basis other than cost. State tax returns Your basis is the amount of your investment in property for tax purposes. State tax returns Use the basis to figure gain or loss on the sale, exchange, or other disposition of property. State tax returns Also use it to figure deductions for depreciation, amortization, depletion, and casualty losses. State tax returns If you use property for both business or investment purposes and for personal purposes, you must allocate the basis based on the use. State tax returns Only the basis allocated to the business or investment use of the property can be depreciated. State tax returns Your original basis in property is adjusted (increased or decreased) by certain events. State tax returns For example, if you make improvements to the property, increase your basis. State tax returns If you take deductions for depreciation or casualty losses, or claim certain credits, reduce your basis. State tax returns Keep accurate records of all items that affect the basis of your property. State tax returns For more information on keeping records, see chapter 1. State tax returns Useful Items - You may want to see: Publication 15-B Employer's Tax Guide to Fringe Benefits 525 Taxable and Nontaxable Income 535 Business Expenses 537 Installment Sales 544 Sales and Other Dispositions of Assets 550 Investment Income and Expenses 551 Basis of Assets 946 How To Depreciate Property Cost Basis The basis of property you buy is usually its cost. State tax returns The cost is the amount you pay in cash, debt obligations, other property, or services. State tax returns Your cost also includes amounts you pay for the following items: Sales tax, Freight, Installation and testing, Excise taxes, Legal and accounting fees (when they must be capitalized), Revenue stamps, Recording fees, and Real estate taxes (if you assume liability for the seller). State tax returns In addition, the basis of real estate and business assets may include other items. State tax returns Loans with low or no interest. State tax returns    If you buy property on a time-payment plan that charges little or no interest, the basis of your property is your stated purchase price minus any amount considered to be unstated interest. State tax returns You generally have unstated interest if your interest rate is less than the applicable federal rate. State tax returns   For more information, see Unstated Interest and Original Issue Discount (OID) in Publication 537. State tax returns Real Property Real property, also called real estate, is land and generally anything built on, growing on, or attached to land. State tax returns If you buy real property, certain fees and other expenses you pay are part of your cost basis in the property. State tax returns Lump sum purchase. State tax returns   If you buy buildings and the land on which they stand for a lump sum, allocate the cost basis among the land and the buildings. State tax returns Allocate the cost basis according to the respective fair market values (FMVs) of the land and buildings at the time of purchase. State tax returns Figure the basis of each asset by multiplying the lump sum by a fraction. State tax returns The numerator is the FMV of that asset and the denominator is the FMV of the whole property at the time of purchase. State tax returns    If you are not certain of the FMVs of the land and buildings, you can allocate the basis according to their assessed values for real estate tax purposes. State tax returns Fair market value (FMV). State tax returns   FMV is the price at which the property would change hands between a willing buyer and a willing seller, neither having to buy or sell, and both having reasonable knowledge of all the necessary facts. State tax returns Sales of similar property on or about the same date may be helpful in figuring the FMV of the property. State tax returns Assumption of mortgage. State tax returns   If you buy property and assume (or buy the property subject to) an existing mortgage on the property, your basis includes the amount you pay for the property plus the amount to be paid on the mortgage. State tax returns Settlement costs. State tax returns   Your basis includes the settlement fees and closing costs you paid for buying the property. State tax returns (A fee for buying property is a cost that must be paid even if you buy the property for cash. State tax returns ) Do not include fees and costs for getting a loan on the property in your basis. State tax returns   The following are some of the settlement fees or closing costs you can include in the basis of your property. State tax returns Abstract fees (abstract of title fees). State tax returns Charges for installing utility services. State tax returns Legal fees (including fees for the title search and preparation of the sales contract and deed). State tax returns Recording fees. State tax returns Survey fees. State tax returns Transfer taxes. State tax returns Owner's title insurance. State tax returns Any amounts the seller owes that you agree to pay, such as back taxes or interest, recording or mortgage fees, charges for improvements or repairs, and sales commissions. State tax returns   Settlement costs do not include amounts placed in escrow for the future payment of items such as taxes and insurance. State tax returns   The following are some of the settlement fees and closing costs you cannot include in the basis of property. State tax returns Casualty insurance premiums. State tax returns Rent for occupancy of the property before closing. State tax returns Charges for utilities or other services related to occupancy of the property before closing. State tax returns Charges connected with getting a loan, such as points (discount points, loan origination fees), mortgage insurance premiums, loan assumption fees, cost of a credit report, and fees for an appraisal required by a lender. State tax returns Fees for refinancing a mortgage. State tax returns Real estate taxes. State tax returns   If you pay real estate taxes the seller owed on real property you bought, and the seller did not reimburse you, treat those taxes as part of your basis. State tax returns You cannot deduct them as an expense. State tax returns    If you reimburse the seller for taxes the seller paid for you, you can usually deduct that amount as an expense in the year of purchase. State tax returns Do not include that amount in the basis of your property. State tax returns If you did not reimburse the seller, you must reduce your basis by the amount of those taxes. State tax returns Points. State tax returns   If you pay points to get a loan (including a mortgage, second mortgage, line of credit, or a home equity loan), do not add the points to the basis of the related property. State tax returns Generally, you deduct the points over the term of the loan. State tax returns For more information on how to deduct points, see chapter 23. State tax returns Points on home mortgage. State tax returns   Special rules may apply to points you and the seller pay when you get a mortgage to buy your main home. State tax returns If certain requirements are met, you can deduct the points in full for the year in which they are paid. State tax returns Reduce the basis of your home by any seller-paid points. State tax returns Adjusted Basis Before figuring gain or loss on a sale, exchange, or other disposition of property or figuring allowable depreciation, depletion, or amortization, you must usually make certain adjustments (increases and decreases) to the cost basis or basis other than cost (discussed later) of the property. State tax returns The result is the adjusted basis. State tax returns Increases to Basis Increase the basis of any property by all items properly added to a capital account. State tax returns Examples of items that increase basis are shown in Table 13-1. State tax returns These include the items discussed below. State tax returns Improvements. State tax returns   Add to your basis in property the cost of improvements having a useful life of more than 1 year, that increase the value of the property, lengthen its life, or adapt it to a different use. State tax returns For example, improvements include putting a recreation room in your unfinished basement, adding another bathroom or bedroom, putting up a fence, putting in new plumbing or wiring, installing a new roof, or paving your driveway. State tax returns Assessments for local improvements. State tax returns   Add to the basis of property assessments for improvements such as streets and sidewalks if they increase the value of the property assessed. State tax returns Do not deduct them as taxes. State tax returns However, you can deduct as taxes assessments for maintenance or repairs, or for meeting interest charges related to the improvements. State tax returns Example. State tax returns Your city changes the street in front of your store into an enclosed pedestrian mall and assesses you and other affected property owners for the cost of the conversion. State tax returns Add the assessment to your property's basis. State tax returns In this example, the assessment is a depreciable asset. State tax returns Decreases to Basis Decrease the basis of any property by all items that represent a return of capital for the period during which you held the property. State tax returns Examples of items that decrease basis are shown in Table 13-1. State tax returns These include the items discussed below. State tax returns Table 13-1. State tax returns Examples of Adjustments to Basis Increases to Basis Decreases to Basis • Capital improvements: • Exclusion from income of   Putting an addition on your home subsidies for energy conservation   Replacing an entire roof measures   Paving your driveway     Installing central air conditioning • Casualty or theft loss deductions   Rewiring your home and insurance reimbursements       • Assessments for local improvements:     Water connections     Extending utility service lines to the property • Postponed gain from the sale of a home   Sidewalks • Alternative motor vehicle credit  (Form 8910)   Roads       • Alternative fuel vehicle refueling     property credit (Form 8911)           • Residential energy credits (Form 5695)       • Casualty losses: • Depreciation and section 179 deduction   Restoring damaged property     • Nontaxable corporate distributions • Legal fees:     Cost of defending and perfecting a title • Certain canceled debt excluded from   Fees for getting a reduction of an assessment income     • Zoning costs • Easements           • Adoption tax benefits Casualty and theft losses. State tax returns   If you have a casualty or theft loss, decrease the basis in your property by any insurance proceeds or other reimbursement and by any deductible loss not covered by insurance. State tax returns    You must increase your basis in the property by the amount you spend on repairs that restore the property to its pre-casualty condition. State tax returns   For more information on casualty and theft losses, see chapter 25. State tax returns Depreciation and section 179 deduction. State tax returns   Decrease the basis of your qualifying business property by any section 179 deduction you take and the depreciation you deducted, or could have deducted (including any special depreciation allowance), on your tax returns under the method of depreciation you selected. State tax returns   For more information about depreciation and the section 179 deduction, see Publication 946 and the Instructions for Form 4562. State tax returns Example. State tax returns You owned a duplex used as rental property that cost you $40,000, of which $35,000 was allocated to the building and $5,000 to the land. State tax returns You added an improvement to the duplex that cost $10,000. State tax returns In February last year, the duplex was damaged by fire. State tax returns Up to that time, you had been allowed depreciation of $23,000. State tax returns You sold some salvaged material for $1,300 and collected $19,700 from your insurance company. State tax returns You deducted a casualty loss of $1,000 on your income tax return for last year. State tax returns You spent $19,000 of the insurance proceeds for restoration of the duplex, which was completed this year. State tax returns You must use the duplex's adjusted basis after the restoration to determine depreciation for the rest of the property's recovery period. State tax returns Figure the adjusted basis of the duplex as follows: Original cost of duplex $35,000 Addition to duplex 10,000 Total cost of duplex $45,000 Minus: Depreciation 23,000 Adjusted basis before casualty $22,000 Minus: Insurance proceeds $19,700     Deducted casualty loss 1,000     Salvage proceeds 1,300 22,000 Adjusted basis after casualty $-0- Add: Cost of restoring duplex 19,000 Adjusted basis after restoration $19,000 Note. State tax returns Your basis in the land is its original cost of $5,000. State tax returns Easements. State tax returns   The amount you receive for granting an easement is generally considered to be proceeds from the sale of an interest in real property. State tax returns It reduces the basis of the affected part of the property. State tax returns If the amount received is more than the basis of the part of the property affected by the easement, reduce your basis in that part to zero and treat the excess as a recognized gain. State tax returns   If the gain is on a capital asset, see chapter 16 for information about how to report it. State tax returns If the gain is on property used in a trade or business, see Publication 544 for information about how to report it. State tax returns Exclusion of subsidies for energy conservation measures. State tax returns   You can exclude from gross income any subsidy you received from a public utility company for the purchase or installation of an energy conservation measure for a dwelling unit. State tax returns Reduce the basis of the property for which you received the subsidy by the excluded amount. State tax returns For more information about this subsidy, see chapter 12. State tax returns Postponed gain from sale of home. State tax returns    If you postponed gain from the sale of your main home under rules in effect before May 7, 1997, you must reduce the basis of the home you acquired as a replacement by the amount of the postponed gain. State tax returns For more information on the rules for the sale of a home, see chapter 15. State tax returns Basis Other Than Cost There are many times when you cannot use cost as basis. State tax returns In these cases, the fair market value or the adjusted basis of the property can be used. State tax returns Fair market value (FMV) and adjusted basis were discussed earlier. State tax returns Property Received for Services If you receive property for your services, include the FMV of the property in income. State tax returns The amount you include in income becomes your basis. State tax returns If the services were performed for a price agreed on beforehand, it will be accepted as the FMV of the property if there is no evidence to the contrary. State tax returns Restricted property. State tax returns   If you receive property for your services and the property is subject to certain restrictions, your basis in the property is its FMV when it becomes substantially vested. State tax returns However, this rule does not apply if you make an election to include in income the FMV of the property at the time it is transferred to you, less any amount you paid for it. State tax returns Property is substantially vested when it is transferable or when it is not subject to a substantial risk of forfeiture (you do not have a good chance of losing it). State tax returns For more information, see Restricted Property in Publication 525. State tax returns Bargain purchases. State tax returns   A bargain purchase is a purchase of an item for less than its FMV. State tax returns If, as compensation for services, you buy goods or other property at less than FMV, include the difference between the purchase price and the property's FMV in your income. State tax returns Your basis in the property is its FMV (your purchase price plus the amount you include in income). State tax returns   If the difference between your purchase price and the FMV is a qualified employee discount, do not include the difference in income. State tax returns However, your basis in the property is still its FMV. State tax returns See Employee Discounts in Publication 15-B. State tax returns Taxable Exchanges A taxable exchange is one in which the gain is taxable or the loss is deductible. State tax returns A taxable gain or deductible loss also is known as a recognized gain or loss. State tax returns If you receive property in exchange for other property in a taxable exchange, the basis of the property you receive is usually its FMV at the time of the exchange. State tax returns Involuntary Conversions If you receive replacement property as a result of an involuntary conversion, such as a casualty, theft, or condemnation, figure the basis of the replacement property using the basis of the converted property. State tax returns Similar or related property. State tax returns   If you receive replacement property similar or related in service or use to the converted property, the replacement property's basis is the same as the converted property's basis on the date of the conversion, with the following adjustments. State tax returns Decrease the basis by the following. State tax returns Any loss you recognize on the involuntary conversion. State tax returns Any money you receive that you do not spend on similar property. State tax returns Increase the basis by the following. State tax returns Any gain you recognize on the involuntary conversion. State tax returns Any cost of acquiring the replacement property. State tax returns Money or property not similar or related. State tax returns    If you receive money or property not similar or related in service or use to the converted property, and you buy replacement property similar or related in service or use to the converted property, the basis of the replacement property is its cost decreased by the gain not recognized on the conversion. State tax returns Example. State tax returns The state condemned your property. State tax returns The adjusted basis of the property was $26,000 and the state paid you $31,000 for it. State tax returns You realized a gain of $5,000 ($31,000 − $26,000). State tax returns You bought replacement property similar in use to the converted property for $29,000. State tax returns You recognize a gain of $2,000 ($31,000 − $29,000), the unspent part of the payment from the state. State tax returns Your unrecognized gain is $3,000, the difference between the $5,000 realized gain and the $2,000 recognized gain. State tax returns The basis of the replacement property is figured as follows: Cost of replacement property $29,000 Minus: Gain not recognized 3,000 Basis of replacement property $26,000 Allocating the basis. State tax returns   If you buy more than one piece of replacement property, allocate your basis among the properties based on their respective costs. State tax returns Basis for depreciation. State tax returns   Special rules apply in determining and depreciating the basis of MACRS property acquired in an involuntary conversion. State tax returns For information, see What Is the Basis of Your Depreciable Property? in chapter 1 of Publication 946. State tax returns Nontaxable Exchanges A nontaxable exchange is an exchange in which you are not taxed on any gain and you cannot deduct any loss. State tax returns If you receive property in a nontaxable exchange, its basis is generally the same as the basis of the property you transferred. State tax returns See Nontaxable Trades in chapter 14. State tax returns Like-Kind Exchanges The exchange of property for the same kind of property is the most common type of nontaxable exchange. State tax returns To qualify as a like-kind exchange, the property traded and the property received must be both of the following. State tax returns Qualifying property. State tax returns Like-kind property. State tax returns The basis of the property you receive is generally the same as the adjusted basis of the property you gave up. State tax returns If you trade property in a like-kind exchange and also pay money, the basis of the property received is the adjusted basis of the property you gave up increased by the money you paid. State tax returns Qualifying property. State tax returns   In a like-kind exchange, you must hold for investment or for productive use in your trade or business both the property you give up and the property you receive. State tax returns Like-kind property. State tax returns   There must be an exchange of like-kind property. State tax returns Like-kind properties are properties of the same nature or character, even if they differ in grade or quality. State tax returns The exchange of real estate for real estate and personal property for similar personal property are exchanges of like-kind property. State tax returns Example. State tax returns You trade in an old truck used in your business with an adjusted basis of $1,700 for a new one costing $6,800. State tax returns The dealer allows you $2,000 on the old truck, and you pay $4,800. State tax returns This is a like-kind exchange. State tax returns The basis of the new truck is $6,500 (the adjusted basis of the old one, $1,700, plus the amount you paid, $4,800). State tax returns If you sell your old truck to a third party for $2,000 instead of trading it in and then buy a new one from the dealer, you have a taxable gain of $300 on the sale (the $2,000 sale price minus the $1,700 adjusted basis). State tax returns The basis of the new truck is the price you pay the dealer. State tax returns Partially nontaxable exchanges. State tax returns   A partially nontaxable exchange is an exchange in which you receive unlike property or money in addition to like-kind property. State tax returns The basis of the property you receive is the same as the adjusted basis of the property you gave up, with the following adjustments. State tax returns Decrease the basis by the following amounts. State tax returns Any money you receive. State tax returns Any loss you recognize on the exchange. State tax returns Increase the basis by the following amounts. State tax returns Any additional costs you incur. State tax returns Any gain you recognize on the exchange. State tax returns If the other party to the exchange assumes your liabilities, treat the debt assumption as money you received in the exchange. State tax returns Allocation of basis. State tax returns   If you receive like-kind and unlike properties in the exchange, allocate the basis first to the unlike property, other than money, up to its FMV on the date of the exchange. State tax returns The rest is the basis of the like-kind property. State tax returns More information. State tax returns   See Like-Kind Exchanges in chapter 1 of Publication 544 for more information. State tax returns Basis for depreciation. State tax returns   Special rules apply in determining and depreciating the basis of MACRS property acquired in a like-kind exchange. State tax returns For information, see What Is the Basis of Your Depreciable Property? in chapter 1 of Publication 946. State tax returns Property Transferred From a Spouse The basis of property transferred to you or transferred in trust for your benefit by your spouse is the same as your spouse's adjusted basis. State tax returns The same rule applies to a transfer by your former spouse that is incident to divorce. State tax returns However, for property transferred in trust, adjust your basis for any gain recognized by your spouse or former spouse if the liabilities assumed, plus the liabilities to which the property is subject, are more than the adjusted basis of the property transferred. State tax returns If the property transferred to you is a series E, series EE, or series I U. State tax returns S. State tax returns savings bond, the transferor must include in income the interest accrued to the date of transfer. State tax returns Your basis in the bond immediately after the transfer is equal to the transferor's basis increased by the interest income includible in the transferor's income. State tax returns For more information on these bonds, see chapter 7. State tax returns At the time of the transfer, the transferor must give you the records needed to determine the adjusted basis and holding period of the property as of the date of the transfer. State tax returns For more information about the transfer of property from a spouse, see chapter 14. State tax returns Property Received as a Gift To figure the basis of property you receive as a gift, you must know its adjusted basis to the donor just before it was given to you, its FMV at the time it was given to you, and any gift tax paid on it. State tax returns FMV less than donor's adjusted basis. State tax returns   If the FMV of the property at the time of the gift is less than the donor's adjusted basis, your basis depends on whether you have a gain or a loss when you dispose of the property. State tax returns Your basis for figuring gain is the same as the donor's adjusted basis plus or minus any required adjustments to basis while you held the property. State tax returns Your basis for figuring loss is its FMV when you received the gift plus or minus any required adjustments to basis while you held the property. State tax returns See Adjusted Basis , earlier. State tax returns Example. State tax returns You received an acre of land as a gift. State tax returns At the time of the gift, the land had an FMV of $8,000. State tax returns The donor's adjusted basis was $10,000. State tax returns After you received the property, no events occurred to increase or decrease your basis. State tax returns If you later sell the property for $12,000, you will have a $2,000 gain because you must use the donor's adjusted basis at the time of the gift ($10,000) as your basis to figure gain. State tax returns If you sell the property for $7,000, you will have a $1,000 loss because you must use the FMV at the time of the gift ($8,000) as your basis to figure loss. State tax returns If the sales price is between $8,000 and $10,000, you have neither gain nor loss. State tax returns Business property. State tax returns   If you hold the gift as business property, your basis for figuring any depreciation, depletion, or amortization deductions is the same as the donor's adjusted basis plus or minus any required adjustments to basis while you hold the property. State tax returns FMV equal to or greater than donor's adjusted basis. State tax returns   If the FMV of the property is equal to or greater than the donor's adjusted basis, your basis is the donor's adjusted basis at the time you received the gift. State tax returns Increase your basis by all or part of any gift tax paid, depending on the date of the gift, explained later. State tax returns   Also, for figuring gain or loss from a sale or other disposition or for figuring depreciation, depletion, or amortization deductions on business property, you must increase or decrease your basis (the donor's adjusted basis) by any required adjustments to basis while you held the property. State tax returns See Adjusted Basis , earlier. State tax returns   If you received a gift during the tax year, increase your basis in the gift (the donor's adjusted basis) by the part of the gift tax paid on it due to the net increase in value of the gift. State tax returns Figure the increase by multiplying the gift tax paid by a fraction. State tax returns The numerator of the fraction is the net increase in value of the gift and the denominator is the amount of the gift. State tax returns   The net increase in value of the gift is the FMV of the gift minus the donor's adjusted basis. State tax returns The amount of the gift is its value for gift tax purposes after reduction by any annual exclusion and marital or charitable deduction that applies to the gift. State tax returns Example. State tax returns In 2013, you received a gift of property from your mother that had an FMV of $50,000. State tax returns Her adjusted basis was $20,000. State tax returns The amount of the gift for gift tax purposes was $36,000 ($50,000 minus the $14,000 annual exclusion). State tax returns She paid a gift tax of $7,320 on the property. State tax returns Your basis is $26,076, figured as follows: Fair market value $50,000 Minus: Adjusted basis −20,000 Net increase in value $30,000     Gift tax paid $7,320 Multiplied by ($30,000 ÷ $36,000) × . State tax returns 83 Gift tax due to net increase in value $6,076 Adjusted basis of property to your mother +20,000 Your basis in the property $26,076 Note. State tax returns If you received a gift before 1977, your basis in the gift (the donor's adjusted basis) includes any gift tax paid on it. State tax returns However, your basis cannot exceed the FMV of the gift at the time it was given to you. State tax returns Inherited Property Your basis in property you inherited from a decedent, who died before January 1, 2010, or after December 31, 2010, is generally one of the following: The FMV of the property at the date of the decedent's death. State tax returns The FMV on the alternate valuation date if the personal representative for the estate elects to use alternate valuation. State tax returns The value under the special-use valuation method for real property used in farming or a closely held business if elected for estate tax purposes. State tax returns The decedent's adjusted basis in land to the extent of the value excluded from the decedent's taxable estate as a qualified conservation easement. State tax returns If a federal estate tax return does not have to be filed, your basis in the inherited property is its appraised value at the date of death for state inheritance or transmission taxes. State tax returns For more information, see the instructions to Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return. State tax returns Property inherited from a decedent who died in 2010. State tax returns   If you inherited property from a decedent who died in 2010, special rules may apply. State tax returns For more information, see Publication 4895, Tax Treatment of Property Acquired From a Decedent Dying in 2010. State tax returns Community property. State tax returns   In community property states (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin), husband and wife are each usually considered to own half the community property. State tax returns When either spouse dies, the total value of the community property, even the part belonging to the surviving spouse, generally becomes the basis of the entire property. State tax returns For this rule to apply, at least half the value of the community property interest must be includible in the decedent's gross estate, whether or not the estate must file a return. State tax returns Example. State tax returns You and your spouse owned community property that had a basis of $80,000. State tax returns When your spouse died, half the FMV of the community interest was includible in your spouse's estate. State tax returns The FMV of the community interest was $100,000. State tax returns The basis of your half of the property after the death of your spouse is $50,000 (half of the $100,000 FMV). State tax returns The basis of the other half to your spouse's heirs is also $50,000. State tax returns For more information about community property, see Publication 555, Community Property. State tax returns Property Changed From Personal to Business or Rental Use If you hold property for personal use and then change it to business use or use it to produce rent, you can begin to depreciate the property at the time of the change. State tax returns To do so, you must figure its basis for depreciation at the time of the change. State tax returns An example of changing property held for personal use to business or rental use would be renting out your former personal residence. State tax returns Basis for depreciation. State tax returns   The basis for depreciation is the lesser of the following amounts. State tax returns The FMV of the property on the date of the change. State tax returns Your adjusted basis on the date of the change. State tax returns Example. State tax returns Several years ago, you paid $160,000 to have your house built on a lot that cost $25,000. State tax returns You paid $20,000 for permanent improvements to the house and claimed a $2,000 casualty loss deduction for damage to the house before changing the property to rental use last year. State tax returns Because land is not depreciable, you include only the cost of the house when figuring the basis for depreciation. State tax returns Your adjusted basis in the house when you changed its use was $178,000 ($160,000 + $20,000 − $2,000). State tax returns On the same date, your property had an FMV of $180,000, of which $15,000 was for the land and $165,000 was for the house. State tax returns The basis for figuring depreciation on the house is its FMV on the date of the change ($165,000) because it is less than your adjusted basis ($178,000). State tax returns Sale of property. State tax returns   If you later sell or dispose of property changed to business or rental use, the basis you use will depend on whether you are figuring gain or loss. State tax returns Gain. State tax returns   The basis for figuring a gain is your adjusted basis in the property when you sell the property. State tax returns Example. State tax returns Assume the same facts as in the previous example except that you sell the property at a gain after being allowed depreciation deductions of $37,500. State tax returns Your adjusted basis for figuring gain is $165,500 ($178,000 + $25,000 (land) − $37,500). State tax returns Loss. State tax returns   Figure the basis for a loss starting with the smaller of your adjusted basis or the FMV of the property at the time of the change to business or rental use. State tax returns Then make adjustments (increases and decreases) for the period after the change in the property's use, as discussed earlier under Adjusted Basis . State tax returns Example. State tax returns Assume the same facts as in the previous example, except that you sell the property at a loss after being allowed depreciation deductions of $37,500. State tax returns In this case, you would start with the FMV on the date of the change to rental use ($180,000), because it is less than the adjusted basis of $203,000 ($178,000 + $25,000 (land)) on that date. State tax returns Reduce that amount ($180,000) by the depreciation deductions ($37,500). State tax returns The basis for loss is $142,500 ($180,000 − $37,500). State tax returns Stocks and Bonds The basis of stocks or bonds you buy generally is the purchase price plus any costs of purchase, such as commissions and recording or transfer fees. State tax returns If you get stocks or bonds other than by purchase, your basis is usually determined by the FMV or the previous owner's adjusted basis, as discussed earlier. State tax returns You must adjust the basis of stocks for certain events that occur after purchase. State tax returns For example, if you receive additional stock from nontaxable stock dividends or stock splits, reduce your basis for each share of stock by dividing the adjusted basis of the old stock by the number of shares of old and new stock. State tax returns This rule applies only when the additional stock received is identical to the stock held. State tax returns Also reduce your basis when you receive nontaxable distributions. State tax returns They are a return of capital. State tax returns Example. State tax returns In 2011 you bought 100 shares of XYZ stock for $1,000 or $10 a share. State tax returns In 2012 you bought 100 shares of XYZ stock for $1,600 or $16 a share. State tax returns In 2013 XYZ declared a 2-for-1 stock split. State tax returns You now have 200 shares of stock with a basis of $5 a share and 200 shares with a basis of $8 a share. State tax returns Other basis. State tax returns   There are other ways to figure the basis of stocks or bonds depending on how you acquired them. State tax returns For detailed information, see Stocks and Bonds under Basis of Investment Property in chapter 4 of Publication 550. State tax returns Identifying stocks or bonds sold. State tax returns   If you can adequately identify the shares of stock or the bonds you sold, their basis is the cost or other basis of the particular shares of stocks or bonds. State tax returns If you buy and sell securities at various times in varying quantities and you cannot adequately identify the shares you sell, the basis of the securities you sell is the basis of the securities you acquired first. State tax returns For more information about identifying securities you sell, see Stocks and Bonds under Basis of Investment Property in chapter 4 of Publication 550. State tax returns Mutual fund shares. State tax returns   If you sell mutual fund shares you acquired at various times and prices and left on deposit in an account kept by a custodian or agent, you can elect to use an average basis. State tax returns For more information, see Publication 550. State tax returns Bond premium. State tax returns   If you buy a taxable bond at a premium and elect to amortize the premium, reduce the basis of the bond by the amortized premium you deduct each year. State tax returns See Bond Premium Amortization in chapter 3 of Publication 550 for more information. State tax returns Although you cannot deduct the premium on a tax-exempt bond, you must amortize the premium each year and reduce your basis in the bond by the amortized amount. State tax returns Original issue discount (OID) on debt instruments. State tax returns   You must increase your basis in an OID debt instrument by the OID you include in income for that instrument. State tax returns See Original Issue Discount (OID) in chapter 7 and Publication 1212, Guide To Original Issue Discount (OID) Instruments. State tax returns Tax-exempt obligations. State tax returns    OID on tax-exempt obligations is generally not taxable. State tax returns However, when you dispose of a tax-exempt obligation issued after September 3, 1982, and acquired after March 1, 1984, you must accrue OID on the obligation to determine its adjusted basis. State tax returns The accrued OID is added to the basis of the obligation to determine your gain or loss. State tax returns See chapter 4 of Publication 550. State tax returns Prev  Up  Next   Home   More Online Publications
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The State Tax Returns

State tax returns Publication 926 - Main Content Table of Contents Do You Have a Household Employee? Can Your Employee Legally Work in the United States? Do You Need To Pay Employment Taxes?Social Security and Medicare Taxes Federal Unemployment (FUTA) Tax Do You Need To Withhold Federal Income Tax? What Do You Need To Know About the Earned Income Credit? How Do You Make Tax Payments? What Forms Must You File?Employee who leaves during the year. State tax returns Filing options when no return is required. State tax returns What Records Must You Keep? Can You Claim a Credit for Child and Dependent Care Expenses? How Can You Correct Schedule H?Adjust the overpayment. State tax returns Claim for refund process. State tax returns How To Get Tax HelpLow Income Taxpayer Clinics Do You Have a Household Employee? You have a household employee if you hired someone to do household work and that worker is your employee. State tax returns The worker is your employee if you can control not only what work is done, but how it is done. State tax returns If the worker is your employee, it does not matter whether the work is full time or part time or that you hired the worker through an agency or from a list provided by an agency or association. State tax returns It also does not matter whether you pay the worker on an hourly, daily, or weekly basis, or by the job. State tax returns Example. State tax returns You pay Betty Shore to babysit your child and do light housework 4 days a week in your home. State tax returns Betty follows your specific instructions about household and child care duties. State tax returns You provide the household equipment and supplies that Betty needs to do her work. State tax returns Betty is your household employee. State tax returns Household work. State tax returns   Household work is work done in or around your home. State tax returns Some examples of workers who do household work are: Babysitters, Caretakers, House cleaning workers, Domestic workers, Drivers, Health aides, Housekeepers, Maids, Nannies, Private nurses, and Yard workers. State tax returns Workers who are not your employees. State tax returns   If only the worker can control how the work is done, the worker is not your employee but is self-employed. State tax returns A self-employed worker usually provides his or her own tools and offers services to the general public in an independent business. State tax returns   A worker who performs child care services for you in his or her home generally is not your employee. State tax returns   If an agency provides the worker and controls what work is done and how it is done, the worker is not your employee. State tax returns Example. State tax returns You made an agreement with John Peters to care for your lawn. State tax returns John runs a lawn care business and offers his services to the general public. State tax returns He provides his own tools and supplies, and he hires and pays any helpers he needs. State tax returns Neither John nor his helpers are your household employees. State tax returns More information. State tax returns   More information about who is an employee is in Publication 15-A, Employer's Supplemental Tax Guide. State tax returns Can Your Employee Legally Work in the United States? It is unlawful for you knowingly to hire or continue to employ an alien who cannot legally work in the United States. State tax returns When you hire a household employee to work for you on a regular basis, you and the employee must complete the U. State tax returns S. State tax returns Citizenship and Immigration Services (USCIS) Form I-9, Employment Eligibility Verification. State tax returns No later than the first day of work, the employee must complete the employee section of the form by providing certain required information and attesting to his or her current work eligibility status in the United States. State tax returns You must complete the employer section by examining documents presented by the employee as evidence of his or her identity and employment eligibility. State tax returns Acceptable documents to establish identity and employment eligibility are listed on Form I-9. State tax returns You should keep the completed Form I-9 in your own records. State tax returns Do not submit it to the IRS, the USCIS, or any other government or other entity. State tax returns The form must be kept available for review upon notice by an authorized U. State tax returns S. State tax returns Government official. State tax returns Two copies of Form I-9 are contained in the Handbook for Employers (Form M-274) published by the USCIS. State tax returns Call the USCIS at 1-800-870-3676 to order the Handbook for Employers; or you may download the handbook at www. State tax returns uscis. State tax returns gov. State tax returns If you have questions about the employment eligibility verification process or other immigration-related employment matters, contact the USCIS Office of Business Liaison at 1-800-357-2099. State tax returns You also can visit the USCIS website at www. State tax returns uscis. State tax returns gov to get Form I-9. State tax returns For more information, see Employee's Social Security Number (SSN) in Publication 15 (Circular E), Employer's Tax Guide. State tax returns Do You Need To Pay Employment Taxes? If you have a household employee, you may need to withhold and pay social security and Medicare taxes, pay federal unemployment tax, or both. State tax returns To find out, read Table 1. State tax returns You do not need to withhold federal income tax from your household employee's wages. State tax returns But if your employee asks you to withhold it, you can. State tax returns See Do You Need To Withhold Federal Income Tax, later. State tax returns If you need to pay social security, Medicare, or federal unemployment tax or choose to withhold federal income tax, read Table 2 for an overview of what you may need to do. State tax returns If you do not need to pay social security, Medicare, or federal unemployment tax and do not choose to withhold federal income tax, read State employment taxes, next. State tax returns The rest of this publication does not apply to you. State tax returns State employment taxes. State tax returns   You should contact your state unemployment tax agency to find out whether you need to pay state unemployment tax for your household employee. State tax returns For a list of state unemployment tax agencies, visit the U. State tax returns S. State tax returns Department of Labor's website at www. State tax returns workforcesecurity. State tax returns doleta. State tax returns gov/unemploy/agencies. State tax returns asp. State tax returns You should also determine if you need to pay or collect other state employment taxes or carry workers' compensation insurance. State tax returns    Table 1. State tax returns Do You Need To Pay Employment Taxes? IF you . State tax returns . State tax returns . State tax returns THEN you need to . State tax returns . State tax returns . State tax returns A– Pay cash wages of $1,900 or more in 2014 to any one household employee. State tax returns Withhold and pay social security and Medicare taxes. State tax returns The taxes are 15. State tax returns 3%1 of cash wages. State tax returns Your employee's share is 7. State tax returns 65%1. State tax returns   (You can choose to pay it yourself and not withhold it. State tax returns ) Your share is 7. State tax returns 65%. State tax returns   Do not count wages you pay to— Your spouse, Your child under the age of 21, Your parent (see Wages not counted, later, for an exception), or Any employee under the age of 18 at any time in 2014 (see Wages not counted, later, for an exception). State tax returns B– Pay total cash wages of $1,000 or more in any calendar quarter of 2013 or 2014 to household employees. State tax returns Pay federal unemployment tax. State tax returns The tax is 6% of cash wages. State tax returns Wages over $7,000 a year per employee are not taxed. State tax returns You also may owe state unemployment tax. State tax returns   Do not count wages you pay to— Your spouse, Your child under the age of 21, or Your parent. State tax returns 1In addition to withholding Medicare tax at 1. State tax returns 45%, you must withhold a 0. State tax returns 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. State tax returns You are required to begin withholding Additional Medicare Tax in the pay period in which you pay wages in excess of $200,000 to an employee and continue to withhold it each pay period until the end of the calendar year. State tax returns Additional Medicare Tax is only imposed on the employee. State tax returns There is no employer share of Additional Medicare Tax. State tax returns All wages that are subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 withholding threshold. State tax returns Note. State tax returns If neither A nor B above applies, you do not need to pay any federal employment taxes. State tax returns But you may still need to pay state employment taxes. State tax returns Table 2. State tax returns Household Employer's Checklist You may need to do the following things when you have a household employee. State tax returns   When you hire a household employee: □ Find out if the person can legally work in the United States. State tax returns  □ Find out if you need to pay state taxes. State tax returns When you pay your household employee: □ Withhold social security and Medicare taxes. State tax returns  □ Withhold federal income tax. State tax returns  □ Decide how you will make tax payments. State tax returns  □ Keep records. State tax returns By February 2, 2015: □ Get an employer identification number (EIN). State tax returns  □ Give your employee Copies B, C, and 2 of Form W-2, Wage and Tax Statement. State tax returns By March 2, 2015 (March 31, 2015, if you file Form W-2 electronically): □ Send Copy A of Form W-2 to the Social Security Administration (SSA). State tax returns By April 15, 2015: □ File Schedule H (Form 1040), Household Employment Taxes, with your 2014 federal income tax return (Form 1040, 1040NR, 1040-SS, or Form 1041). State tax returns  If you do not have to file a return, file Schedule H by itself. State tax returns Social Security and Medicare Taxes The social security tax pays for old-age, survivors, and disability benefits for workers and their families. State tax returns The Medicare tax pays for hospital insurance. State tax returns Both you and your household employee may owe social security and Medicare taxes. State tax returns Your share is 7. State tax returns 65% (6. State tax returns 2% for social security tax and 1. State tax returns 45% for Medicare tax) of the employee's social security and Medicare wages. State tax returns Your employee's share is also 7. State tax returns 65% (6. State tax returns 2% for social security tax and 1. State tax returns 45% for Medicare tax). State tax returns In addition to withholding Medicare tax at 1. State tax returns 45%, you must withhold a 0. State tax returns 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. State tax returns You are required to begin withholding Additional Medicare Tax in the pay period in which you pay wages in excess of $200,000 to an employee and continue to withhold it each pay period until the end of the calendar year. State tax returns Additional Medicare Tax is only imposed on the employee. State tax returns There is no employer share of Additional Medicare Tax. State tax returns All wages that are subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 withholding threshold. State tax returns For more information on Additional Medicare Tax, visit IRS. State tax returns gov and enter “Additional Medicare Tax” in the search box. State tax returns Generally, you can use Table 3 to figure the amount of social security and Medicare taxes to withhold from each wage payment. State tax returns You are responsible for payment of your employee's share of the taxes as well as your own. State tax returns You can either withhold your employee's share from the employee's wages or pay it from your own funds. State tax returns If you decide to pay the employee's share from your own funds, see Not withholding the employee's share, later. State tax returns Pay the taxes as discussed under How Do You Make Tax Payments, later. State tax returns Also, see What Forms Must You File, later. State tax returns Social security and Medicare wages. State tax returns   You figure social security and Medicare taxes on the social security and Medicare wages you pay your employee. State tax returns   If you pay your household employee cash wages of $1,900 or more in 2014, all cash wages you pay to that employee in 2014 (regardless of when the wages were earned) up to $117,000 are social security wages and all cash wages are Medicare wages. State tax returns However, any noncash wages you pay do not count as social security and Medicare wages. State tax returns   If you pay the employee less than $1,900 in cash wages in 2014, none of the wages you pay the employee are social security or Medicare wages and neither you nor your employee will owe social security or Medicare tax on those wages. State tax returns Cash wages. State tax returns   Cash wages include wages you pay by check, money order, etc. State tax returns Cash wages do not include the value of food, lodging, clothing, and other noncash items you give your household employee. State tax returns However, cash you give your employee in place of these items is included in cash wages. State tax returns State disability payments treated as wages. State tax returns   Certain state disability plan payments that your household employee may receive are treated as social security and Medicare wages. State tax returns For more information about these payments, see the Instructions for Schedule H (Form 1040) and the notice issued by the state. State tax returns Wages not counted. State tax returns   Do not count wages you pay to any of the following individuals as social security or Medicare wages, even if these wages are $1,900 or more during the year. State tax returns Your spouse. State tax returns Your child who is under the age of 21. State tax returns Your parent. State tax returns Exception: Count these wages if both the following conditions apply. State tax returns Your parent cares for your child who is either of the following. State tax returns Under the age of 18, or Has a physical or mental condition that requires the personal care of an adult for at least 4 continuous weeks in the calendar quarter services were performed. State tax returns Your marital status is one of the following. State tax returns You are divorced and have not remarried, You are a widow or widower, or You are living with a spouse whose physical or mental condition prevents him or her from caring for your child for at least 4 continuous weeks in the calendar quarter services were performed. State tax returns An employee who is under the age of 18 at any time during the year. State tax returns Exception: Count these wages if providing household services is the employee's principal occupation. State tax returns If the employee is a student, providing household services is not considered to be his or her principal occupation. State tax returns Also, if your employee's cash wages reach $117,000 (maximum wages subject to social security tax) in 2014, do not count any wages you pay that employee during the rest of the year as social security wages to figure social security tax. State tax returns Continue to count the employee's cash wages as Medicare wages to figure Medicare tax. State tax returns If you provide your employee transit passes to commute to your home, do not count the value of the transit passes (up to $130 per month for 2014) as wages. State tax returns A transit pass includes any pass, token, fare card, voucher, or similar item entitling a person to ride on mass transit, such as a bus or train. State tax returns If you provide your employee parking at or near your home or at or near a location from which your employee commutes to your home, do not count the value of parking (up to $250 per month for 2014) as wages. State tax returns If you reimburse your employee for transit passes or parking, you may be able to exclude the reimbursement amounts. State tax returns See Publication 15-B, Employer's Tax Guide to Fringe Benefits, for special requirements for this exclusion. State tax returns Withholding the employee's share. State tax returns   You should withhold the employee's share of social security and Medicare taxes if you expect to pay your household employee cash wages of $1,900 or more in 2014. State tax returns However, if you prefer to pay the employee's share yourself, see Not withholding the employee's share, later. State tax returns   You can withhold the employee's share of the taxes even if you are not sure your employee's cash wages will be $1,900 or more in 2014. State tax returns If you withhold the taxes but then actually pay the employee less than $1,900 in cash wages for the year, you should repay the employee. State tax returns   Withhold 7. State tax returns 65% (6. State tax returns 2% for social security tax and 1. State tax returns 45% for Medicare tax) from each payment of social security and Medicare wages. State tax returns Generally, you can use Table 3 to figure the proper amount to withhold. State tax returns You will pay the amount withheld to the IRS with your share of the taxes. State tax returns Do not withhold any social security tax after your employee's social security wages for the year reach $117,000. State tax returns Table 3. State tax returns Employee Social Security (6. State tax returns 2%) and Medicare (1. State tax returns 45%1) Tax Withholding Table (See Publication 15 (Circular E) for income tax withholding tables. State tax returns ) Use this table to figure the amount of social security and Medicare taxes to withhold from each wage payment. State tax returns For example, on a wage payment of $180, the employee social security tax is $11. State tax returns 16 ($6. State tax returns 20 tax on $100 plus $4. State tax returns 96 on $80 wages). State tax returns The employee Medicare tax is $2. State tax returns 61 ($1. State tax returns 45 tax on $100 plus $1. State tax returns 16 on $80 wages). 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State tax returns 70 1. State tax returns 33 43. State tax returns 00 . State tax returns 2. State tax returns 67 . State tax returns 62 93. State tax returns 00 . State tax returns 5. State tax returns 77 1. State tax returns 35 44. State tax returns 00 . State tax returns 2. State tax returns 73 . State tax returns 64 94. State tax returns 00 . State tax returns 5. State tax returns 83 1. State tax returns 36 45. State tax returns 00 . State tax returns 2. State tax returns 79 . State tax returns 65 95. State tax returns 00 . State tax returns 5. State tax returns 89 1. State tax returns 38 46. State tax returns 00 . State tax returns 2. State tax returns 85 . State tax returns 67 96. State tax returns 00 . State tax returns 5. State tax returns 95 1. State tax returns 39 47. State tax returns 00 . State tax returns 2. State tax returns 91 . State tax returns 68 97. State tax returns 00 . State tax returns 6. State tax returns 01 1. State tax returns 41 48. State tax returns 00 . State tax returns 2. State tax returns 98 . State tax returns 70 98. State tax returns 00 . State tax returns 6. State tax returns 08 1. State tax returns 42 49. State tax returns 00 . State tax returns 3. State tax returns 04 . State tax returns 71 99. State tax returns 00 . State tax returns 6. State tax returns 14 1. State tax returns 44 50. State tax returns 00 . State tax returns 3. State tax returns 10 . State tax returns 73 100. State tax returns 00 . State tax returns 6. State tax returns 20 1. State tax returns 45 1In addition to withholding Medicare tax at 1. State tax returns 45%, you must withhold a 0. State tax returns 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. State tax returns You are required to begin withholding Additional Medicare Tax in the pay period in which you pay wages in excess of $200,000 to an employee and continue to withhold it each pay period until the end of the calendar year. State tax returns Additional Medicare Tax is only imposed on the employee. State tax returns There is no employer share of Additional Medicare Tax. State tax returns All wages that are subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 withholding threshold. State tax returns   If you make an error by withholding too little, you should withhold additional taxes from a later payment. State tax returns If you withhold too much, you should repay the employee. State tax returns    In addition to withholding Medicare tax at 1. State tax returns 45%, you must withhold a 0. State tax returns 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. State tax returns You are required to begin withholding Additional Medicare Tax in the pay period in which you pay wages in excess of $200,000 to an employee and continue to withhold it each pay period until the end of the calendar year. State tax returns Additional Medicare Tax is only imposed on the employee. State tax returns There is no employer share of Additional Medicare Tax. State tax returns All wages that are subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 withholding threshold. State tax returns For more information on Additional Medicare Tax, visit IRS. State tax returns gov and enter “Additional Medicare Tax” in the search box. State tax returns Example. State tax returns On February 13, 2014, Mary Brown hired Jane R. State tax returns Oak (who is an unrelated individual over age 18) to care for her child and agreed to pay cash wages of $50 every Friday. State tax returns Jane worked for the remainder of the year (a total of 46 weeks). State tax returns Mary did not give Jane a Form W-4 to request federal or state tax withholding. State tax returns The following is the information Mary will need to complete Schedule H, Form W-2, and Form W-3. State tax returns See the completed examples of Form W-2 and Form W-3 for 2014 at the end of this publication. State tax returns Total cash wages paid to Jane $2,300. State tax returns 00 ($50 x 46 weeks)       Jane's share of:     Social security tax $142. State tax returns 60 ($2,300 x 6. State tax returns 2% (. State tax returns 062))         Medicare tax $33. State tax returns 35       ($2,300 x 1. State tax returns 45% (. State tax returns 0145)) Mary's share of:     Social security tax $142. State tax returns 60  ($2,300 x 6. State tax returns 2% (. State tax returns 062))           Medicare tax $33. State tax returns 35  ($2,300 x 1. State tax returns 45% (. State tax returns 0145)) Amount reported on Form W-2 and Form W-3:   Box 1:Wages, tips $2,300. State tax returns 00   Box 4: Social security tax withheld 142. State tax returns 60   Box 6: Medicare tax withheld 33. State tax returns 35 For information on withholding and reporting federal income taxes, see Publication 15 (Circular E). State tax returns Not withholding the employee's share. State tax returns   If you prefer to pay your employee's social security and Medicare taxes from your own funds, do not withhold them from your employee's wages. State tax returns The social security and Medicare taxes you pay to cover your employee's share must be included in the employee's wages for income tax purposes. State tax returns However, they are not counted as social security and Medicare wages or as federal unemployment (FUTA) wages. State tax returns Example. State tax returns In 2014 you hire a household employee (who is an unrelated individual over age 18) to care for your child and agree to pay cash wages of $100 every Friday. State tax returns You expect to pay your employee $1,900 or more for the year. State tax returns You decide to pay your employee's share of social security and Medicare taxes from your own funds. State tax returns You pay your employee $100 every Friday without withholding any social security or Medicare taxes. State tax returns For social security and Medicare tax purposes, your employee's wages each payday are $100. State tax returns For each wage payment, you will pay $15. State tax returns 30 when you pay the taxes. State tax returns This is $7. State tax returns 65 ($6. State tax returns 20 for social security tax + $1. State tax returns 45 for Medicare tax) to cover your employee's share plus $7. State tax returns 65 ($6. State tax returns 20 for social security tax + $1. State tax returns 45 for Medicare tax) for your share. State tax returns For income tax purposes, your employee's wages each payday are $107. State tax returns 65 ($100 + the $7. State tax returns 65 you will pay to cover your employee's share of social security and Medicare taxes). State tax returns Federal Unemployment (FUTA) Tax The federal unemployment tax is part of the federal and state program under the Federal Unemployment Tax Act (FUTA) that pays unemployment compensation to workers who lose their jobs. State tax returns Like most employers, you may owe both the federal unemployment tax (the FUTA tax) and a state unemployment tax. State tax returns Or, you may owe only the FUTA tax or only the state unemployment tax. State tax returns To find out whether you will owe state unemployment tax, contact your state's unemployment tax agency. State tax returns For a list of state unemployment tax agencies, visit the U. State tax returns S. State tax returns Department of Labor's website at www. State tax returns workforcesecurity. State tax returns doleta. State tax returns gov/unemploy/agencies. State tax returns asp. State tax returns You should also find out if you need to pay or collect other state employment taxes or carry workers' compensation insurance. State tax returns The FUTA tax is 6. State tax returns 0% of your employee's FUTA wages. State tax returns However, you may be able to take a credit of up to 5. State tax returns 4% against the FUTA tax, resulting in a net tax rate of 0. State tax returns 6%. State tax returns Your credit for 2014 is limited unless you pay all the required contributions for 2014 to your state unemployment fund by April 15, 2015. State tax returns The credit you can take for any contributions for 2014 that you pay after April 15, 2015, is limited to 90% of the credit that would have been allowable if the contributions were paid by April 15, 2015. State tax returns (If you did not pay all the required contributions for 2013 by April 15, 2014, see Credit for 2013, later. State tax returns ) Note. State tax returns   If a due date falls on a Saturday, Sunday, or legal holiday, payments are considered timely if made by the next business day. State tax returns The term “legal holiday” means any legal holiday in the District of Columbia. State tax returns Pay the tax as discussed under How Do You Make Tax Payments, later. State tax returns Also, see What Forms Must You File, later. State tax returns Note. State tax returns   The 5. State tax returns 4% credit is reduced for wages paid in a credit reduction state. State tax returns See the Instructions for Schedule H (Form 1040). State tax returns Do not withhold the FUTA tax from your employee's wages. State tax returns You must pay it from your own funds. State tax returns FUTA wages. State tax returns   Figure the FUTA tax on the FUTA wages you pay. State tax returns If you pay cash wages to all of your household employees totaling $1,000 or more in any calendar quarter of 2013 or 2014, the first $7,000 of cash wages you pay to each household employee in 2014 is FUTA wages. State tax returns (A calendar quarter is January through March, April through June, July through September, or October through December. State tax returns ) If your employee's cash wages reach $7,000 during the year, do not figure the FUTA tax on any wages you pay that employee during the rest of the year. State tax returns For an explanation of cash wages, see the discussion on Social security and Medicare wages under Social Security and Medicare Taxes, earlier. State tax returns Wages not counted. State tax returns   Do not count wages you pay to any of the following individuals as FUTA wages. State tax returns Your spouse. State tax returns Your child who is under the age of 21. State tax returns Your parent. State tax returns Credit for 2013. State tax returns   The credit you can take for any state unemployment fund contributions for 2013 that you pay after April 15, 2014, is limited to 90% of the credit that would have been allowable if the contributions were paid on or before April 15, 2014. State tax returns Use Worksheet A to figure the credit for late contributions if you paid any state contributions after the due date for filing  Form 1040. State tax returns Worksheet A. State tax returns Worksheet for Credit for Late Contributions 1. State tax returns Enter the amount from Schedule H, line 22   2. State tax returns Enter the amount from Schedule H, line 19   3. State tax returns Subtract line 2 from line 1. State tax returns If zero or less, enter -0-   4. State tax returns Enter total contributions paid to the state(s) after the Form 1040 due date   5. State tax returns Enter the smaller of line 3 or line 4   6. State tax returns Multiply line 5 by . State tax returns 90 (90%)   7. State tax returns Add lines 2 and 6   8. State tax returns Enter the smaller of the amount on line 1 or line 7 here and on Schedule H, line 23   Do You Need To Withhold Federal Income Tax? You are not required to withhold federal income tax from wages you pay a household employee. State tax returns You should withhold federal income tax only if your household employee asks you to withhold it and you agree. State tax returns The employee must give you a completed Form W-4, Employee's Withholding Allowance Certificate. State tax returns If you and your employee have agreed to withholding, either of you may end the agreement by letting the other know in writing. State tax returns If you agree to withhold federal income tax, you are responsible for paying it to the IRS. State tax returns Pay the tax as discussed under How Do You Make Tax Payments, later. State tax returns Also, see What Forms Must You File, later. State tax returns Use the income tax withholding tables in Publication 15 (Circular E) to find out how much to withhold. State tax returns Figure federal income tax withholding on wages before you deduct any amounts for other withheld taxes. State tax returns Withhold federal income tax from each payment of wages based on the filing status and exemptions shown on your employee's Form W-4. State tax returns Publication 15 (Circular E) contains detailed instructions. State tax returns Wages. State tax returns   Figure federal income tax withholding on both cash and noncash wages you pay. State tax returns Measure wages you pay in any form other than cash by the fair market value of the noncash item. State tax returns   Do not count as wages any of the following items. State tax returns Meals provided to your employee at your home for your convenience. State tax returns Lodging provided to your employee at your home for your convenience and as a condition of employment. State tax returns Up to $130 per month for 2014 for transit passes you give your employee (or for any cash reimbursement you make for the amount your employee pays for transit passes used to commute to your home if you qualify for this exclusion). State tax returns A transit pass includes any pass, token, fare card, voucher, or similar item entitling a person to ride on mass transit, such as a bus or train. State tax returns See Publication 15-B for special requirements for this exclusion. State tax returns Up to $250 per month for 2014 for the value of parking you provide your employee or for any cash reimbursement you make for the amount your employee pays and substantiates for parking at or near your home or at or near a location from which your employee commutes to your home. State tax returns   See Publication 15 (Circular E) for more information on cash and noncash wages. State tax returns Paying tax without withholding. State tax returns   Any income tax you pay for your employee without withholding it from the employee's wages must be included in the employee's wages for federal income tax purposes. State tax returns It also must be included in social security and Medicare wages and in federal unemployment (FUTA) wages. State tax returns What Do You Need To Know About the Earned Income Credit? Certain workers can take the earned income credit (EIC) on their federal income tax return. State tax returns This credit reduces their tax or allows them to receive a payment from the IRS. State tax returns You also may have to give your employee a notice about the EIC. State tax returns Notice about the EIC. State tax returns   Copy B of the 2014 Form W-2 has a statement about the EIC on the back. State tax returns If you give your employee that copy by February 2, 2015 (as discussed under Form W-2 under What Forms Must You File, later), you do not have to give the employee any other notice about the EIC. State tax returns   If you do not give your employee Copy B of the Form W-2, your notice about the EIC can be any of the following items. State tax returns A substitute Form W-2 with the same EIC information on the back of the employee's copy that is on Copy B of the Form W-2. State tax returns Notice 797, Possible Federal Tax Refund Due to the Earned Income Credit (EIC). State tax returns Your own written statement with the same wording as in Notice 797. State tax returns If a substitute Form W-2 is given on time but does not have the required EIC information, you must notify the employee within one week of the date the substitute Form W-2 is given. State tax returns If Form W-2 is required but is not given on time, you must give the employee Notice 797 or your written statement about the 2014 EIC by February 2, 2015. State tax returns If Form W-2 is not required, you must notify the employee by February 7, 2015. State tax returns   You must give your household employee a notice about the EIC if you agree to withhold federal income tax from the employee's wages (as discussed earlier under Do You Need To Withhold Federal Income Tax?) and the income tax withholding tables show that no tax should be withheld. State tax returns Even if not required, you are encouraged to give the employee a notice about the EIC if his or her 2014 wages are less than $46,997 ($52,427 if married filing jointly). State tax returns How Do You Make Tax Payments? When you file your 2014 federal income tax return in 2015, attach Schedule H (Form 1040) to your Form 1040, 1040NR, 1040-SS, or 1041. State tax returns Use Schedule H to figure your total household employment taxes (social security, Medicare, FUTA, and withheld federal income taxes). State tax returns Add these household employment taxes to your income tax. State tax returns Pay the amount due by April 15, 2015. State tax returns For more information about using Schedule H, see Schedule H under What Forms Must You File, later. State tax returns You can avoid owing tax with your return if you pay enough tax during the year to cover your household employment taxes, as well as your income tax. State tax returns You can pay the additional tax in any of the following ways. State tax returns Ask your employer to withhold more federal income tax from your wages in 2014. State tax returns Ask the payer of your pension or annuity to withhold more federal income tax from your benefits. State tax returns Make estimated tax payments for 2014 to the IRS. State tax returns Increase your payments if you already make estimated tax payments. State tax returns You may be subject to the estimated tax underpayment penalty if you did not pay enough income and household employment taxes during the year. State tax returns (See Publication 505, Tax Withholding and Estimated Tax, for information about the underpayment penalty. State tax returns ) However, you will not be subject to the penalty if both of the following situations apply to you. State tax returns You will not have federal income tax withheld from wages, pensions, or any other payments you receive. State tax returns Your income taxes, excluding your household employment taxes, would not be enough to require payment of estimated taxes. State tax returns Asking for more federal income tax withholding. State tax returns   If you are employed and want more federal income tax withheld from your wages to cover your household employment taxes, give your employer a new Form W-4. State tax returns Complete it as before, but show the additional amount you want withheld from each paycheck on line 6. State tax returns   If you receive a pension or annuity and want more federal income tax withheld to cover household employment taxes, give the payer a new Form W-4P, Withholding Certificate for Pension or Annuity Payments (or a similar form provided by the payer). State tax returns Complete it as before, but show the additional amount you want withheld from each benefit payment on line 3. State tax returns   See Publication 505 to make sure you will have the right amount withheld. State tax returns It will help you compare your total expected withholding for 2014 with the combined income tax and employment taxes that you can expect to figure on your 2014 tax return. State tax returns Paying estimated tax. State tax returns   If you want to make estimated tax payments to cover household employment taxes, get Form 1040-ES, Estimated Tax for Individuals. State tax returns You can use its payment vouchers to make your payments by check or money order. State tax returns You may be able to pay by Electronic Funds Withdrawal (EFW) or credit card. State tax returns For details, see the form instructions and visit IRS. State tax returns gov. State tax returns    You can pay all the employment taxes at once or you can pay them in installments. State tax returns If you have already made estimated tax payments for 2014, you can increase your remaining payments to cover the employment taxes. State tax returns Estimated tax payments for 2014 are due April 15, June 16, and September 15, 2014, and January 15, 2015. State tax returns Payment option for business employers. State tax returns   If you own a business as a sole proprietor or your home is on a farm operated for profit, you can choose either of two ways to pay your 2014 household employment taxes. State tax returns You can pay them with your federal income tax as previously described, or you can include them with your federal employment tax deposits or other payments for your business or farm employees. State tax returns For information on depositing employment taxes, see Publication 15 (Circular E). State tax returns   If you pay your household employment taxes with your business or farm employment taxes, you must report your household employment taxes with those other employment taxes on Form 941, Employer's QUARTERLY Federal Tax Return, Form 944, Employer's ANNUAL Federal Tax Return, or Form 943, Employer's Annual Federal Tax Return for Agricultural Employees, and on Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return. State tax returns See Business employment tax returns, later. State tax returns    The deduction that can be taken on Schedules C and F (Form 1040) for wages and employment taxes applies only to wages and taxes paid for business and farm employees. State tax returns You cannot deduct the wages and employment taxes paid for your household employees on your Schedule C or F. State tax returns More information. State tax returns   For more information about paying taxes through federal income tax withholding and estimated tax payments, and figuring the estimated tax penalty, see Publication 505. State tax returns What Forms Must You File? You must file certain forms to report your household employee's wages and the federal employment taxes for the employee if you pay any of the following wages to the employee. State tax returns Social security and Medicare wages. State tax returns FUTA wages. State tax returns Wages from which you withhold federal income tax. State tax returns For information on ordering employment tax forms, see How To Get Tax Help, later. State tax returns Employer identification number (EIN). State tax returns   You must include your employer identification number (EIN) on the forms you file for your household employee. State tax returns An EIN is a nine-digit number issued by the IRS. State tax returns It is not the same as a social security number. State tax returns    You ordinarily will have an EIN if you previously paid taxes for employees, either as a household employer or as a sole proprietor of a business you own. State tax returns If you already have an EIN, use that number. State tax returns   If you do not have an EIN, you may apply for one online. State tax returns Go to IRS. State tax returns gov and click on the Apply for an EIN Online link under Tools. State tax returns 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. State tax returns Form W-2. State tax returns   File a separate 2014 Form W-2, for each household employee to whom you pay either of the following wages during the year. State tax returns Social security and Medicare wages of $1,900 or more. State tax returns Wages from which you withhold federal income tax. State tax returns You must complete Form W-2 and give Copies B, C, and 2 to your employee by February 2, 2015. State tax returns You must send Copy A of Form W-2 with Form W-3, Transmittal of Wage and Tax Statements, to the SSA by March 2, 2015 (March 31, 2015, if you file your Form W-2 electronically). State tax returns Electronic filing is available to all employers and is free, fast, secure, and offers a later filing deadline. State tax returns Visit the SSA's Employer W-2 Filing Instructions & Information website at www. State tax returns socialsecurity. State tax returns gov/employer for guidelines on filing electronically. State tax returns Employee who leaves during the year. State tax returns   If an employee stops working for you before the end of 2014, you can file Form W-2 and provide copies to your employee immediately after you make your final payment of wages. State tax returns You do not need to wait until 2015. State tax returns If the employee asks you for Form W-2, give it to him or her within 30 days after the request or the last wage payment, whichever is later. State tax returns Schedule H. State tax returns   Use Schedule H to report household employment taxes if you pay any of the following wages to the employee. State tax returns Social security and Medicare wages of $1,900 or more. State tax returns FUTA wages. State tax returns Wages from which you withhold federal income tax. State tax returns File Schedule H with your 2014 federal income tax return by April 15, 2015. State tax returns If you get an extension to file your return, the extension also will apply to your Schedule H. State tax returns Filing options when no return is required. State tax returns   If you are not required to file a 2014 tax return, you have the following two options. State tax returns You can file Schedule H by itself. State tax returns See the Schedule H instructions for details. State tax returns If, besides your household employee, you have other employees for whom you report employment taxes on Form 941, Form 944, or Form 943 and on Form 940, you can include your taxes for your household employee on those forms. State tax returns See Business employment tax returns, next. State tax returns   Employers having the options listed above include certain tax-exempt organizations that do not have to file a tax return, such as churches that pay a household worker to take care of a minister's home. State tax returns Business employment tax returns. State tax returns   Do not use Schedule H if you choose to pay the employment taxes for your household employee with business or farm employment taxes. State tax returns (See Payment option for business employers, earlier. State tax returns ) Instead, include the social security, Medicare, and withheld federal income taxes for the employee on the Form 941 or Form 944 you file for your business or on the Form 943 you file for your farm. State tax returns Include the FUTA tax for the employee on your Form 940. State tax returns   If you report the employment taxes for your household employee on Form 941, Form 944, or Form 943, file Form W-2 for that employee with the Forms W-2 and Form W-3 for your business or farm employees. State tax returns   For information on filing Form 941 or Form 944, see Publication 15 (Circular E). State tax returns For information on filing Form 943, see Publication 51 (Circular A), Agricultural Employer's Tax Guide. State tax returns Both of these publications also provide information about filing Form 940. State tax returns What Records Must You Keep? Keep your copies of Schedule H or other employment tax forms you file and related Forms W-2, W-3, and W-4. State tax returns You must also keep records to support the information you enter on the forms you file. State tax returns If you must file Form W-2, you will need to keep a record of your employee's name, address, and social security number. State tax returns Wage and tax records. State tax returns   On each payday, you should record the date and amounts of all the following items. State tax returns Your employee's cash and noncash wages. State tax returns Any employee social security tax you withhold or agree to pay for your employee. State tax returns Any employee Medicare tax you withhold or agree to pay for your employee. State tax returns Any federal income tax you withhold. State tax returns Any state employment taxes you withhold. State tax returns Employee's social security number. State tax returns   You must keep a record of your employee's name and social security number exactly as they appear on his or her social security card if you pay the employee either of the following. State tax returns Social security and Medicare wages of $1,900 or more. State tax returns Wages from which you withhold federal income tax. State tax returns You must ask for your employee's social security number no later than the first day on which you pay the wages. State tax returns You may wish to ask for it when you hire your employee. State tax returns You should ask your employee to show you his or her social security card. State tax returns The employee may show the card if it is available. State tax returns You may, but are not required to, photocopy the card if the employee provides it. State tax returns   An employee who does not have a social security number must apply for one on Form SS-5, Application for a Social Security Card. State tax returns An employee who has lost his or her social security card or whose name is not correctly shown on the card may apply for a replacement card. State tax returns    Employees can get Form SS-5 from any Social Security Administration office or by calling 1-800-772-1213. State tax returns    You also can download Form SS-5 from the Social Security Administration website at  www. State tax returns socialsecurity. State tax returns gov/online/ss-5. State tax returns pdf. State tax returns How long to keep records. State tax returns   Keep your employment tax records for at least 4 years after the due date of the return on which you report the taxes or the date the taxes were paid, whichever is later. State tax returns Can You Claim a Credit for Child and Dependent Care Expenses? If your household employee cares for your dependent who is under age 13 or for your spouse or dependent who is not capable of self-care, you may be able to take an income tax credit against some of your expenses. State tax returns To qualify, you must pay these expenses so you can work or look for work. State tax returns If you can take the credit, you can include in your qualifying expenses your share of the federal and state employment taxes you pay, as well as the employee's wages. State tax returns For information about the credit, see Publication 503, Child and Dependent Care Expenses. State tax returns How Can You Correct Schedule H? If you discover that you made an error on a Schedule H (or Anexo H-PR), the forms used to correct the error depend on whether the Schedule H was attached to another form or whether it was filed by itself. State tax returns Schedule H attached to another form. State tax returns    If you discover an error on a Schedule H that you previously filed with Form 1040, Form 1040NR, or Form 1040-SS, file Form 1040X, Amended U. State tax returns S. State tax returns Individual Income Tax Return, and attach a corrected Schedule H. State tax returns If you filed Formulario 1040-PR, file a Form 1040X and attach a corrected Anexo H-PR. State tax returns If you discover an error on a Schedule H that you previously filed with Form 1041, U. State tax returns S. State tax returns Income Tax Return for Estates and Trusts, file an “amended” Form 1041 and attach a corrected Schedule H. State tax returns You discovered (that is, ascertained) the error when you had enough information to be able to correct the error. State tax returns Write “CORRECTED” (or “CORREGIDO”) and the date you discovered the error in the top margin of your corrected Schedule H (or Anexo H-PR), in dark, bold letters. State tax returns In addition, explain the reason for your correction and the date the error was discovered in Part III of Form 1040X or in a statement attached to the amended Form 1041. State tax returns Schedule H filed by itself. State tax returns   If you discover an error on a Schedule H (or Anexo H-PR) that you filed as a stand-alone return, file another stand-alone Schedule H with the corrected information. State tax returns You discovered (that is, ascertained) the error when you had enough information to be able to correct the error. State tax returns Write “CORRECTED” (or “CORREGIDO”) and the date you discovered the error in the top margin of your corrected Schedule H (or Anexo H-PR), in dark, bold letters. State tax returns In addition, explain the reason for your correction and the date the error was discovered in a statement attached to the corrected Schedule H. State tax returns If you have an overpayment, also write “ADJUSTED” (or “CORREGIDO”) or “REFUND” (or “REEMBOLSO”) in the top margin, depending on whether you want to adjust your overpayment or claim a refund. State tax returns (See Overpayment of tax, later. State tax returns ) When to file. State tax returns   File a corrected Schedule H when you discover an error on a previously filed Schedule H. State tax returns If you are correcting an underpayment, file a corrected Schedule H no later than the due date of your next tax return (generally, April 15 of the following calendar year) after you discover the error. State tax returns If you are correcting an overpayment, file a corrected Schedule H within the refund period of limitations (generally 3 years from the date your original form was filed or within 2 years from the date you paid the tax, whichever is later). State tax returns Underpayment of tax. State tax returns   You must pay any underpayment of social security and Medicare taxes by the time you file the corrected Schedule H. State tax returns Generally, by filing on time and paying by the time you file the return, you will not be charged interest (and will not be subject to failure-to-pay or estimated tax penalties) on the balance due. State tax returns However, underreported FUTA taxes will be subject to interest. State tax returns Overpayment of tax. State tax returns    You may either adjust or claim a refund of an overpayment of social security and Medicare taxes on a previously filed Schedule H. State tax returns However, if you are correcting an overpayment and are filing the corrected Schedule H within 90 days of the expiration of the period of limitations, you can only claim a refund of the overpayment. State tax returns Adjust the overpayment. State tax returns   If the corrected Schedule H is filed with a Form 1040X or an amended Form 1041, adjust your return by indicating on line 22 of the Form 1040X or on line 29a of the Form 1041 that you would like the overpayment applied to your estimated taxes on Form 1040, Form 1040NR, Form 1040-PR, Form 1040-SS, or Form 1041 for the year in which you are filing the corrected Schedule H. State tax returns If the corrected Schedule H is filed as a stand-alone return, adjust your return by writing “ADJUSTED” (or “CORREGIDO”) in the top margin (in dark, bold letters). State tax returns If you adjust your return, you will not receive interest on your overpayment. State tax returns If the corrected Schedule H will be filed within 90 days of the expiration of the refund period of limitations, you may not adjust the return and must claim a refund for the overpayment. State tax returns You may not adjust your return to correct overpayments of FUTA tax. State tax returns Claim for refund process. State tax returns   If the corrected Schedule H is filed with a Form 1040X or an amended Form 1041, claim a refund by indicating that you would like the overpayment refunded to you on line 21 of the Form 1040X or line 29b of the Form 1041. State tax returns If the corrected Schedule H is filed as a stand-alone return, claim a refund by writing “REFUND” (or “REEMBOLSO”) in the top margin (in dark, bold letters). State tax returns You will receive interest on any overpayment refunded, unless the overpayment is for FUTA tax because you were entitled to increased credits for state contributions. State tax returns Required repayment or consent. State tax returns   If you previously overreported social security and Medicare taxes, you may adjust your overpayment only after you have repaid or reimbursed your employees in the amount of the overcollection of employee tax. State tax returns You reimburse your employees by applying the overwithheld amount against taxes to be withheld on future wages. State tax returns You may claim a refund for the overpayment only after you have repaid or reimbursed your employees in the amount of the overcollection or you have obtained consents from your employees to file the claim for refund for the employee tax. State tax returns Include a statement that you repaid or reimbursed your employees, or obtained their written consents in the case of a claim for refund, in Part III of Form 1040X or in a statement attached to the amended Form 1041 or the stand-alone corrected Schedule H. State tax returns Filing required Forms W-2 or Forms W-2c. State tax returns   Whether you previously underreported tax or overreported tax, you will generally be required to file Form W-2, or their territorial equivalents (if none was previously filed), or Form W-2c, Corrected Wage and Tax Statement, to reflect the changes reported on your corrected Schedule H. State tax returns Additional Medicare Tax. State tax returns   Generally, you may not correct an error in Additional Medicare Tax withholding for wages paid to employees in a prior year unless it is an administrative error. State tax returns An administrative error occurs if the amount you entered on Schedule H is not the amount you actually withheld. State tax returns For example, if the Additional Medicare Tax actually withheld was incorrectly reported on Schedule H due to a mathematical or transposition error, this would be an administrative error. State tax returns   Any underwithheld Additional Medicare Tax must be recovered from employees on or before the last day of the calendar year in which the underwithholding occurred. State tax returns Any excess Additional Medicare Tax withholding must be repaid or reimbursed to employees before the end of the calendar year in which it was withheld. State tax returns Additional information. State tax returns   For more information about correcting errors on a previously filed Schedule H, see page 4 of Form 944-X, Form 944-X: Which process should you use? (substitute “Schedule H” for “Form 944-X”) and the Instructions for Form 944-X (or Formulario 944-X (PR)). State tax returns Also, visit IRS. State tax returns gov. State tax returns How To Get Tax Help Whether it's help with a tax issue, preparing your tax return or a need for a free publication or form, get the help you need the way you want it: online, use a smart phone, call or walk in to an IRS office or volunteer site near you. State tax returns Free help with your tax return. State tax returns   You can get free help preparing your return nationwide from IRS-certified volunteers. State tax returns The Volunteer Income Tax Assistance (VITA) program helps low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers. State tax returns The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. State tax returns Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. State tax returns In addition, some VITA and TCE sites provide taxpayers the opportunity to prepare their own return with help from an IRS-certified volunteer. State tax returns To find the nearest VITA or TCE site, you can use the VITA Locator Tool on IRS. State tax returns gov, download the IRS2Go app, or call 1-800-906-9887. State tax returns   As part of the TCE program, AARP offers the Tax-Aide counseling program. State tax returns To find the nearest AARP Tax-Aide site, visit AARP's website at www. State tax returns aarp. State tax returns org/money/taxaide or call 1-888-227-7669. State tax returns For more information on these programs, go to IRS. State tax returns gov and enter “VITA” in the search box. State tax returns Internet. State tax returns    IRS. State tax returns gov and IRS2Go are ready when you are —24 hours a day, 7 days a week. State tax returns Download the free IRS2Go app from the iTunes app store or from Google Play. State tax returns Use it to check your refund status, order transcripts of your tax returns or tax account, watch the IRS YouTube channel, get IRS news as soon as it's released to the public, subscribe to filing season updates or daily tax tips, and follow the IRS Twitter news feed, @IRSnews, to get the latest federal tax news, including information about tax law changes and important IRS programs. State tax returns Check the status of your 2013 refund with the Where's My Refund? application on IRS. State tax returns gov or download the IRS2Go app and select the Refund Status option. State tax returns The IRS issues more than 9 out of 10 refunds in less than 21 days. State tax returns Using these applications, you can start checking on the status of your return within 24 hours after we receive your e-filed return or 4 weeks after you mail a paper return. State tax returns You will also be given a personalized refund date as soon as the IRS processes your tax return and approves your refund. State tax returns The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. State tax returns Use the Interactive Tax Assistant (ITA) to research your tax questions. State tax returns No need to wait on the phone or stand in line. State tax returns The ITA is available 24 hours a day, 7 days a week, and provides you with a variety of tax information related to general filing topics, deductions, credits, and income. State tax returns When you reach the response screen, you can print the entire interview and the final response for your records. State tax returns New subject areas are added on a regular basis. State tax returns  Answers not provided through ITA may be found in Tax Trails, one of the Tax Topics on IRS. State tax returns gov which contain general individual and business tax information or by searching the IRS Tax Map, which includes an international subject index. State tax returns You can use the IRS Tax Map, to search publications and instructions by topic or keyword. State tax returns The IRS Tax Map integrates forms and publications into one research tool and provides single-point access to tax law information by subject. State tax returns When the user searches the IRS Tax Map, they will be provided with links to related content in existing IRS publications, forms and instructions, questions and answers, and Tax Topics. State tax returns Coming this filing season, you can immediately view and print for free all 5 types of individual federal tax transcripts (tax returns, tax account, record of account, wage and income statement, and certification of non-filing) using Get Transcript. State tax returns You can also ask the IRS to mail a return or an account transcript to you. State tax returns Only the mail option is available by choosing the Tax Records option on the IRS2Go app by selecting Mail Transcript on IRS. State tax returns gov or by calling 1-800-908-9946. State tax returns Tax return and tax account transcripts are generally available for the current year and the past three years. State tax returns Determine if you are eligible for the EITC and estimate the amount of the credit with the Earned Income Tax Credit (EITC) Assistant. State tax returns Visit Understanding Your IRS Notice or Letter to get answers to questions about a notice or letter you received from the IRS. State tax returns If you received the First Time Homebuyer Credit, you can use the First Time Homebuyer Credit Account Look-up tool for information on your repayments and account balance. State tax returns Check the status of your amended return using Where's My Amended Return? Go to IRS. State tax returns gov and enter Where's My Amended Return? in the search box. State tax returns You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. State tax returns It can take up to 3 weeks from the date you mailed it to show up in our system. State tax returns Make a payment using one of several safe and convenient electronic payment options available on IRS. State tax returns gov. State tax returns Select the Payment tab on the front page of IRS. State tax returns gov for more information. State tax returns Determine if you are eligible and apply for an online payment agreement, if you owe more tax than you can pay today. State tax returns Figure your income tax withholding with the IRS Withholding Calculator on IRS. State tax returns gov. State tax returns Use it if you've had too much or too little withheld, your personal situation has changed, you're starting a new job or you just want to see if you're having the right amount withheld. State tax returns Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. State tax returns gov. State tax returns Request an Electronic Filing PIN by going to IRS. State tax returns gov and entering Electronic Filing PIN in the search box. State tax returns Download forms, instructions and publications, including accessible versions for people with disabilities. State tax returns Locate the nearest Taxpayer Assistance Center (TAC) using the Office Locator tool on IRS. State tax returns gov, or choose the Contact Us option on the IRS2Go app and search Local Offices. State tax returns An employee can answer questions about your tax account or help you set up a payment plan. State tax returns Before you visit, check the Office Locator on IRS. State tax returns gov, or Local Offices under Contact Us on IRS2Go to confirm the address, phone number, days and hours of operation, and the services provided. State tax returns If you have a special need, such as a disability, you can request an appointment. State tax returns Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. State tax returns Apply for an Employer Identification Number (EIN). State tax returns Go to IRS. State tax returns gov and enter Apply for an EIN in the search box. State tax returns Read the Internal Revenue Code, regulations, or other official guidance. State tax returns Read Internal Revenue Bulletins. State tax returns Sign up to receive local and national tax news and more by email. State tax returns Just click on “subscriptions” above the search box on IRS. State tax returns gov and choose from a variety of options. State tax returns Phone. State tax returns    You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. State tax returns Download the free IRS2Go app from the iTunes app store or from Google Play. State tax returns Call to locate the nearest volunteer help site, 1-800-906-9887 or you can use the VITA Locator Tool on IRS. State tax returns gov, or download the IRS2Go app. State tax returns Low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. State tax returns The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. State tax returns Most VITA and TCE sites offer free electronic filing. State tax returns Some VITA and TCE sites provide IRS-certified volunteers who can help prepare your tax return. State tax returns Through the TCE program, AARP offers the Tax-Aide counseling program; call 1-888-227-7669 to find the nearest Tax-Aide location. State tax returns Call the automated Where's My Refund? information hotline to check the status of your 2013 refund 24 hours a day, 7 days a week at 1-800-829-1954. State tax returns If you e-file, you can start checking on the status of your return within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. State tax returns The IRS issues more than 9 out of 10 refunds in less than 21 days. State tax returns Where's My Refund? will give you a personalized refund date as soon as the IRS processes your tax return and approves your refund. State tax returns Before you call this automated hotline, have your 2013 tax return handy so you can enter your social security number, your filing status, and the exact whole dollar amount of your refund. State tax returns The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. State tax returns Note, the above information is for our automated hotline. State tax returns Our live phone and walk-in assistors can research the status of your refund only if it's been 21 days or more since you filed electronically or more than 6 weeks since you mailed your paper return. State tax returns Call the Amended Return Hotline, 1-866-464-2050, to check the status of your amended return. State tax returns You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. State tax returns It can take up to 3 weeks from the date you mailed it to show up in our system. State tax returns Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, publications, and prior-year forms and instructions (limited to 5 years). State tax returns You should receive your order within 10 business days. State tax returns Call TeleTax, 1-800-829-4477, to listen to pre-recorded messages covering general and business tax information. State tax returns If, between January and April 15, you still have questions about the Form 1040, 1040A, or 1040EZ (like filing requirements, dependents, credits, Schedule D, pensions and IRAs or self-employment taxes), call 1-800-829-1040. State tax returns Call using TTY/TDD equipment, 1-800-829-4059 to ask tax questions or order forms and publications. State tax returns The TTY/TDD telephone number is for people who are deaf, hard of hearing, or have a speech disability. State tax returns These individuals can also contact the IRS through relay services such as the Federal Relay Service. State tax returns Walk-in. State tax returns   You can find a selection of forms, publications and services — in-person. State tax returns Products. State tax returns You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. State tax returns Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. State tax returns Services. State tax returns You can walk in to your local TAC for face-to-face tax help. State tax returns An employee can answer questions about your tax account or help you set up a payment plan. State tax returns Before visiting, use the Office Locator tool on IRS. State tax returns gov, or choose the Contact Us option on the IRS2Go app and search Local Offices for days and hours of operation, and services provided. State tax returns Mail. State tax returns   You can send your order for forms, instructions, and publications to the address below. State tax returns You should receive a response within 10 business days after your request is received. State tax returns Internal Revenue Service 1201 N. State tax returns Mitsubishi Motorway Bloomington, IL 61705-6613    The Taxpayer Advocate Service Is Here to Help You. State tax returns The Taxpayer Advocate Service (TAS) is your voice at the IRS. State tax returns Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. State tax returns   What can TAS do for you? We can offer you free help with IRS problems that you can't resolve on your own. State tax returns We know this process can be confusing, but the worst thing you can do is nothing at all! TAS can help if you can't resolve your tax problem and: Your problem is causing financial difficulties for you, your family, or your business. State tax returns You face (or your business is facing) an immediate threat of adverse action. State tax returns You've tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised. State tax returns   If you qualify for our help, you'll be assigned to one advocate who'll be with you at every turn and will do everything possible to resolve your problem. State tax returns Here's why we can help: TAS is an independent organization within the IRS. State tax returns Our advocates know how to work with the IRS. State tax returns Our services are free and tailored to meet your needs. State tax returns We have offices in every state, the District of Columbia, and Puerto Rico. State tax returns   How can you reach us? If you think TAS can help you, call your local advocate, whose number is in your local directory and at Taxpayer Advocate, or call us toll-free at 1-877-777-4778. State tax returns   How else does TAS help taxpayers?  TAS also works to resolve large-scale, systemic problems that affect many taxpayers. State tax returns If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System. State tax returns Low Income Taxpayer Clinics Low Income Taxpayer Clinics (LITCs) serve individuals whose income is below a certain level and need to resolve tax problems such as audits, appeals and tax collection disputes. State tax returns Some clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. State tax returns Visit Taxpayer Advocate or see IRS Publication 4134, Low Income Taxpayer Clinic List. State tax returns Sample W-2 Form This image is too large to be displayed in the current screen. State tax returns Please click the link to view the image. State tax returns Webtitle: Form W-2 Wage and Tax Statement and Form W-3 Transmitttal of Wage and Tax Statemtents Prev  Up  Next   Home   More Online Publications