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

TurboTax Federal Free Edition - File Taxes Online

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

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


© 2012 - 2018 All rights reserved.

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

Turbotax Free 1040ez

1040x Amended Tax FormMy Free Taxes1040ez FormTaxact 2012 Free Tax Return2012 1040a Tax FormFree State Filing Income TaxDownload A 1040ez Federal Tax FormIrs 1040ez1040x Amendment Form1040 EsIrs Tax Forms For 20121040expressFile State Tax For Free OnlineAmend Federal Tax ReturnWhen To File 1040x1040x FileH&r Block Tax Online2007 Tax Return Online FreeFree Federal Tax ReturnFile Free Tax ReturnHow To File Amended 2012 Tax ReturnHow To File An Amendment On My TaxesEz FormFederal Tax AmendmentFree Federal TaxesHow Do I File State TaxesI Need To File 2011 Tax Return2009 Tax Return1040x InstructionsHr Block Free Tax FileFill Out 1040x OnlineIncome Tax Form 10401040ez Forms 2013Irs Form 1040x Amended Tax ReturnFree State Tax Preparation Software1040ez Form BookletFree Irs Tax Forms 2012Federal Tax Form 1040xFree 1040ez Tax Filing1040nr Free Software

Turbotax Free 1040ez

Turbotax free 1040ez 5. Turbotax free 1040ez   Excise Taxes Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Prohibited Tax Shelter TransactionsEntity Level Tax Excess Benefit TransactionsTax on Disqualified Persons Tax on Organization Managers Excess Benefit Transaction Excess Business Holdings Taxable Distributions of Sponsoring Organizations Exception. Turbotax free 1040ez A donor advised fund does not include: Taxes on Prohibited Benefits Resulting From Donor Advised Fund Distributions Excise Taxes on Private Foundations Excise Taxes on Black Lung Benefit Trusts Excise Tax on Failure to Meet the Community Health Needs Assessment Requirements Introduction An excise tax may be imposed on certain tax-exempt organizations. Turbotax free 1040ez Topics - This chapter discusses: Prohibited tax shelter transactions Excess benefit transactions Excess business holdings Taxable distributions of sponsoring organizations Taxes on prohibited benefits distributed from donor advised funds Excise taxes on private foundations Excise taxes on 501(c)(21) black lung benefit trusts Excise Tax on Failure to Meet the Community Health Needs Assessment Requirements of Hospitals Useful Items - You may want to see: Forms (and Instructions) 4720 Return of Certain Excise Taxes Under Chapters 41 and 42 of the Internal Revenue Code See chapter 6 for more information about getting Form 4720. Turbotax free 1040ez Prohibited Tax Shelter Transactions Section 4965 imposes an excise tax on: Certain tax-exempt entities that are party to prohibited tax shelter transactions, and Any entity manager who approves or otherwise causes the entity to be a party to a prohibited tax shelter transaction and knows or has reason to know that the transaction is a prohibited tax shelter transaction. Turbotax free 1040ez  Additionally, section 6033 provides new disclosure requirements on a tax-exempt entity that is a party to a prohibited tax shelter transaction. Turbotax free 1040ez Tax-exempt entities. Turbotax free 1040ez   Tax-exempt entities that are subject to section 4965 include: Entities described in section 501(c), including but not limited to the following common types of entities: Instrumentalities of the United States described in section 501(c)(1); Churches, hospitals, museums, schools, scientific research organizations, and other charities described in section 501(c)(3); Civic leagues, social welfare organizations, and local associations of employees described in section 501(c)(4); Labor, agricultural, or horticultural organizations described in section 501(c)(5); Business leagues, chambers of commerce, trade associations, and other organizations described in section 501(c)(6); Voluntary employees' beneficiary associations (VEBAs) described in section 501(c)(9); Credit unions described in section 501(c)(14); Insurance companies described in section 501(c)(15); and Veterans' organizations described in section 501(c)(19). Turbotax free 1040ez Religious or apostolic associations or corporations described in section 501(d). Turbotax free 1040ez Entities described in section 170(c), including states, possessions of the United States, the District of Columbia, political subdivisions of states and political subdivisions of possessions of the United States (but not including the United States). Turbotax free 1040ez Indian tribal governments within the meaning of section 7701(a)(40). Turbotax free 1040ez Entity manager. Turbotax free 1040ez    An entity manager is any person with authority or responsibility similar to that exercised by an officer, director, or trustee, and, for any act, the person that has authority or responsibility with respect to the prohibited transaction. Turbotax free 1040ez Prohibited tax shelter transaction. Turbotax free 1040ez   A prohibited tax shelter transaction is any listed transaction, within the meaning of section 6707A(c)(2), and any prohibited reportable transactions. Turbotax free 1040ez A prohibited reportable transaction is a confidential transaction within the meaning of Regulations section 1. Turbotax free 1040ez 6011-4(b)(3), and a transaction with contractual protection within the meaning of Regulations section 1. Turbotax free 1040ez 6011-4(b)(4). Turbotax free 1040ez See the Instructions for Form 8886 for more information on listed transactions and prohibited reportable transactions. Turbotax free 1040ez Subsequently listed transaction. Turbotax free 1040ez   Any transaction to which the tax-exempt entity is a party and is later determined to be a listed transaction after the entity has become a party to it, is a subsequently listed transaction. Turbotax free 1040ez Entity Level Tax Section 4965(a)(1) imposes an entity level excise tax on any tax-exempt entity described in 1, 2, 3, or 4 above that becomes a party to a prohibited tax shelter transaction or is a party to a subsequently listed transaction (defined earlier). Turbotax free 1040ez The excise tax imposed on a tax-exempt entity applies to tax years in which the entity becomes a party to the prohibited tax shelter transaction and any subsequent tax years. Turbotax free 1040ez The amount of the excise tax depends on whether the tax-exempt entity knew or had reason to know that the transaction was a prohibited tax shelter transaction at the time it became a party to the transaction. Turbotax free 1040ez To figure and report the excise tax imposed on a tax-exempt entity for being a party to a prohibited tax shelter transaction, file Form 4720. Turbotax free 1040ez For more information about this excise tax, including information about how it is figured, see the Instructions for Form 4720. Turbotax free 1040ez Manager Level Tax Section 4965(a)(2) imposes an excise tax on any tax-exempt entity manager who approves or otherwise causes the entity to be a party to a prohibited tax shelter transaction and knows (or has reason to know) that the transaction is a prohibited tax shelter transaction. Turbotax free 1040ez The excise tax, in the amount of $20,000, is assessed for each approval or other act causing the organization to be a party to the prohibited tax shelter transaction. Turbotax free 1040ez To report this tax, file Form 4720. Turbotax free 1040ez Excess Benefit Transactions Excise tax on excess benefit transactions. Turbotax free 1040ez   A disqualified person who benefits from an excess benefit transaction, such as compensation, fringe benefits, or contract payments from certain section 501(c)(3), 501(c)(4), or 501(c)(29) organizations, must correct the transaction and may have to pay an excise tax under section 4958. Turbotax free 1040ez A manager of the organization may also have to pay an excise tax under section 4958. Turbotax free 1040ez These taxes are reported on Form 4720. Turbotax free 1040ez   The excise taxes are imposed if an applicable tax-exempt organization provides an excess benefit to a disqualified person and that benefit exceeds the value of the benefit received in exchange. Turbotax free 1040ez   There are three taxes under section 4958. Turbotax free 1040ez Disqualified persons are liable for the first two taxes and certain organization managers are liable for the third tax. Turbotax free 1040ez    Taxes imposed on excess benefit transactions do not apply to a transaction under a written contract that was binding on September 13, 1995, and at all times thereafter before the transaction occurred. Turbotax free 1040ez Tax on Disqualified Persons An excise tax equal to 25% of the excess benefit is imposed on each excess benefit transaction between an applicable tax-exempt organization and a disqualified person. Turbotax free 1040ez The disqualified person who benefited from the transaction is liable for the tax. Turbotax free 1040ez See definition of Disqualified person, later at Disqualified person. Turbotax free 1040ez Additional tax on the disqualified person. Turbotax free 1040ez   If the 25% tax is imposed and the excess benefit transaction is not corrected within the taxable period, an additional excise tax equal to 200% of the excess benefit is imposed on any disqualified person involved. Turbotax free 1040ez   If a disqualified person makes a payment of less than the full correction amount, the 200% tax is imposed only on the unpaid portion of the correction amount. Turbotax free 1040ez If more than one disqualified person received an excess benefit from an excess benefit transaction, all such disqualified persons are jointly and severally liable for the taxes. Turbotax free 1040ez   To avoid the 200% tax, a disqualified person must correct the excess benefit transaction during the taxable period. Turbotax free 1040ez The 200% tax is abated (refunded if collected) if the excess benefit transaction is corrected within a 90-day correction period beginning on the date a statutory notice of deficiency is issued. Turbotax free 1040ez Taxable period. Turbotax free 1040ez   The taxable period means the period beginning with the date on which the excess benefit transaction occurs and ending on the earlier of: The date a notice of deficiency was mailed to the disqualified person for the initial tax on the excess benefit transaction, or The date on which the initial tax on the excess benefit transaction for the disqualified person is assessed. Turbotax free 1040ez Tax on Organization Managers If tax is imposed on a disqualified person for any excess benefit transaction, an excise tax equal to 10% of the excess benefit is imposed on an organization manager who knowingly participated in an excess benefit transaction, unless such participation was not willful and was due to reasonable cause. Turbotax free 1040ez This tax cannot exceed $20,000 ($10,000 for transactions entered in a tax year beginning before August 18, 2006), for each transaction. Turbotax free 1040ez There is also joint and several liability for this tax. Turbotax free 1040ez A person can be liable for both the tax paid by the disqualified person and the organization manager tax for a particular excess benefit transaction. Turbotax free 1040ez Organization Manager. Turbotax free 1040ez   An organization manager is any officer, director, or trustee of an applicable tax-exempt organization, or any individual having powers or responsibilities similar to officers, directors, or trustees of the organization, regardless of title. Turbotax free 1040ez An organization manager is not considered to have participated in an excess benefit transaction where the manager has opposed the transaction in a manner consistent with the fulfillment of the manager's responsibilities to the organization. Turbotax free 1040ez For example, a director who votes against giving an excess benefit would ordinarily not be subject to the 10% tax. Turbotax free 1040ez A person participates in a transaction knowingly if the person: Has actual knowledge of sufficient facts so that, based solely upon those facts, such transaction would be an excess benefit transaction; Is aware that such a transaction under these circumstances may violate the provisions of federal tax law governing excess benefit transactions; and Negligently fails to make reasonable attempts to ascertain whether the transaction is an excess benefit transaction, or the manager is in fact aware that it is such a transaction. Turbotax free 1040ez Knowing does not mean having reason to know. Turbotax free 1040ez The organization manager ordinarily will not be considered knowing if, after full disclosure of the factual situation to an appropriate professional, the organization manager relied on the professional's reasoned written opinion on matters within the professional's expertise or if the manager relied on the fact that the requirements for the rebuttable presumption of reasonableness have been satisfied. Turbotax free 1040ez Participation by an organization manager is willful if it is voluntary, conscious, and intentional. Turbotax free 1040ez An organization manager's participation is due to reasonable cause if the manager has exercised responsibility on behalf of the organization with ordinary business care and prudence. Turbotax free 1040ez Excess Benefit Transaction An excess benefit transaction is a transaction in which an economic benefit is provided by an applicable tax-exempt organization, directly or indirectly, to or for the use of any disqualified person, and the value of the economic benefit provided by the organization exceeds the value of the consideration (including the performance of services) received for providing such benefit. Turbotax free 1040ez The excess benefit transaction rules apply to all transactions with disqualified persons, regardless of whether the amount of the benefit provided is determined in whole or in part by the revenues of one or more activities of the organization. Turbotax free 1040ez To determine whether an excess benefit transaction has occurred, all consideration and benefits exchanged between a disqualified person and the applicable tax-exempt organization, and all entities it controls, are taken into account. Turbotax free 1040ez For purposes of determining the value of economic benefits, the value of property, including the right to use property, is the fair market value. Turbotax free 1040ez Fair market value is the price at which property, or the right to use property, would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy, sell, or transfer property or the right to use property, and both having reasonable knowledge of relevant facts. Turbotax free 1040ez Donor advised fund transactions occurring after August 17, 2006. Turbotax free 1040ez   For a donor advised fund, an excess benefit transaction includes a grant, loan, compensation, or other similar payment from the fund to a: Donor or donor advisor, Family member of a donor, or donor advisor, 35% controlled entity of a donor, or donor advisor, or 35% controlled entity of a family member of a donor, or donor advisor. Turbotax free 1040ez   The excess benefit in this transaction is the amount of the grant, loan, compensation, or other similar payment. Turbotax free 1040ez For additional information, see the Instructions for Form 4720. Turbotax free 1040ez Supporting organization transactions occurring after July 25, 2006. Turbotax free 1040ez   For any supporting organization, defined in section 509(a)(3), an excess benefit transaction includes grants, loans, compensation, or other similar payment provided by the supporting organization to a: Substantial contributor, Family member of a substantial contributor, 35% controlled entity of a substantial contributor, or 35% controlled entity of a family member of a substantial contributor. Turbotax free 1040ez   Additionally, an excess benefit transaction includes any loans provided by the supporting organization to a disqualified person (other than an organization described in section 509(a)(1), (2), or (4)). Turbotax free 1040ez   The excess benefit for substantial contributors and parties related to those contributors includes the amount of the grant, loan, compensation, or other similar payment. Turbotax free 1040ez For additional information, see the Instructions for Form 4720. Turbotax free 1040ez   Excess benefit transaction rules generally do not apply to transactions between a supporting organization and its supported organization described in section 501(c)(4), (5), or (6) in furtherance of charitable purposes. Turbotax free 1040ez Date of Occurrence An excess benefit transaction occurs on the date the disqualified person receives the economic benefit from the organization for federal income tax purposes. Turbotax free 1040ez However, when a single contractual arrangement provides for a series of compensation or other payments to or for the use of a disqualified person during the disqualified person's tax year, any excess benefit transaction with respect to these payments occurs on the last day of the taxpayer's tax year. Turbotax free 1040ez In the case of benefits provided to a qualified pension, profit-sharing, or stock bonus plan, the transaction occurs on the date the benefit is vested. Turbotax free 1040ez In the case of the transfer of property subject to a substantial risk of forfeiture, or in the case of rights to future compensation or property, the transaction occurs on the date the property, or the rights to future compensation or property, is not subject to a substantial risk of forfeiture. Turbotax free 1040ez Where the disqualified person elects to include an amount in gross income in the tax year of transfer under section 83(b), the excess benefit transaction occurs on the date the disqualified person receives the economic benefit for federal income tax purposes. Turbotax free 1040ez Correcting the excess benefit. Turbotax free 1040ez   An excess benefit transaction is corrected by undoing the excess benefit to the extent possible, and by taking any additional measures necessary to place the organization in a financial position not worse than what it would have been if the disqualified person were dealing under the highest fiduciary standards. Turbotax free 1040ez   A disqualified person corrects an excess benefit by making a payment in cash or cash equivalents, excluding payment by a promissory note, equal to the correction amount to the applicable tax-exempt organization. Turbotax free 1040ez The correction amount equals the excess benefit plus the interest on the excess benefit. Turbotax free 1040ez The interest rate can be no lower than the applicable federal rate, compounded annually, for the month the transaction occurred. Turbotax free 1040ez   A disqualified person can, with the agreement of the applicable tax-exempt organization, make a payment by returning the specific property previously transferred in the excess transaction. Turbotax free 1040ez In this case, the disqualified person is treated as making a payment equal to the lesser of: The fair market value of the property on the date the property is returned to the organization, or The fair market value of the property on the date the excess benefit transaction occurred. Turbotax free 1040ez   If the payment resulting from the return of property is less than the correction amount, the disqualified person must make an additional cash payment to the organization equal to the difference. Turbotax free 1040ez   If the payment resulting from the return of the property exceeds the correction amount described above, the organization can make a cash payment to the disqualified person equal to the difference. Turbotax free 1040ez Exception. Turbotax free 1040ez   For a correction of an excess benefit transaction (discussed earlier), no amount repaid in a manner prescribed by the Secretary can be held in a donor advised fund. Turbotax free 1040ez Applicable Tax-Exempt Organization An applicable tax-exempt organization is a section 501(c)(3), 501(c)(4), or 501(c)(29) organization that is tax-exempt under section 501(a), or was such an organization at any time during a 5-year period ending on the day of the excess benefit transaction. Turbotax free 1040ez An applicable tax-exempt organization does not include: A private foundation as defined in section 509(a), A governmental entity that is: Exempt from (or not subject to) taxation without regard to section 501(a), or Not required to file an annual return, or A foreign organization, recognized by the IRS or by treaty, that receives substantially all of its support (other than gross investment income) from sources outside the United States. Turbotax free 1040ez An organization is not treated as a section 501(c)(3), 501(c)(4), or 501(c)(29) organization for any period covered by a final determination that the organization was not tax-exempt under section 501(a), but only if the determination was not based on private inurement or one or more excess benefit transactions. Turbotax free 1040ez Disqualified Person A disqualified person is: Any person (at any time during the 5-year period ending on the date of the transaction) in a position to exercise substantial influence over the affairs of the organization, A family member of an individual described in 1, and A 35% controlled entity. Turbotax free 1040ez For donor advised funds, sponsoring organizations, and certain supporting organizations occurring after August 17, 2006. Turbotax free 1040ez   The following persons will be considered disqualified persons along with certain family members and 35% controlled entities associated with them. Turbotax free 1040ez Donors of donor advised funds, Investment advisors of sponsoring organizations, and Disqualified persons of a section 509(a)(3) supporting organization that supports the applicable tax-exempt organization. Turbotax free 1040ez For certain supporting organization transactions occurring after July 25, 2006. Turbotax free 1040ez   Substantial contributors to supporting organizations will also be considered disqualified persons with respect to the supporting organizations, along with their family members and 35% controlled entities. Turbotax free 1040ez Investment advisor. Turbotax free 1040ez   Investment advisor means for any sponsoring organization, any person compensated by such organization (but not an employee of such organization) for managing the investment of, or providing investment advice for, assets maintained in donor advised funds owned by such sponsoring organization. Turbotax free 1040ez Substantial contributor. Turbotax free 1040ez   In general, a substantial contributor means any person who contributed or bequeathed an aggregate of more than $5,000 to the organization, if that amount is more than 2% of the total contributions and bequests received by the end of the organization's tax year in which the contribution or bequest is received. Turbotax free 1040ez A substantial contributor includes the grantor of a trust. Turbotax free 1040ez Family members. Turbotax free 1040ez   Family members of a disqualified person include a disqualified person's spouse, brothers or sisters (whether by whole or half-blood), spouses of brothers or sisters (whether by whole or half-blood), ancestors, children (including a legally adopted child), grandchildren, great grandchildren, and spouses of children, grandchildren, and great grandchildren (whether by whole or half-blood). Turbotax free 1040ez 35% controlled entity. Turbotax free 1040ez   A 35% controlled entity is: A corporation in which disqualified persons own more than 35% of the total combined voting power, A partnership in which such persons own more than 35% of the profits interest, or A trust or estate in which such persons own more than 35% of the beneficial interest. Turbotax free 1040ez   In determining the holdings of a business enterprise, any stock or other interest owned directly or indirectly shall apply. Turbotax free 1040ez Persons having substantial influence. Turbotax free 1040ez   Among those who are in a position to exercise substantial influence over the affairs of the organization are, for example, voting members of the governing body, and persons holding the power of: Presidents, chief executives, or chief operating officers. Turbotax free 1040ez Treasurers and chief financial officers. Turbotax free 1040ez Persons with a material financial interest in a provider-sponsored organization. Turbotax free 1040ez Persons not considered to have substantial influence. Turbotax free 1040ez   Persons who are not considered to be in a position to exercise substantial influence over the affairs of an organization include: An employee who receives benefits that total less than the highly compensated amount in section 414(q)(1)(B)(i) and who does not hold the executive or voting powers mentioned earlier in the discussion on Disqualified Person, is not a family member of a disqualified person, and is not a substantial contributor, Tax-exempt organizations described in section 501(c)(3), and Section 501(c)(4) organizations with respect to transactions engaged in with other section 501(c)(4) organizations. Turbotax free 1040ez Facts and circumstances. Turbotax free 1040ez   The determination of whether a person has substantial influence over the affairs of an organization is based on all the facts and circumstances. Turbotax free 1040ez Facts and circumstances that tend to show a person has substantial influence over the affairs of an organization include, but are not limited to, the following. Turbotax free 1040ez The person founded the organization. Turbotax free 1040ez The person is a substantial contributor to the organization under the section 507(d)(2)(A) definition, only taking into account contributions to the organization for the past 5 years. Turbotax free 1040ez The person's compensation is primarily based on revenues derived from activities of the organization that the person controls. Turbotax free 1040ez The person has or shares authority to control or determine a substantial portion of the organization's capital expenditures, operating budget, or compensation for employees. Turbotax free 1040ez The person manages a discrete segment or activity of the organization that represents a substantial portion of the activities, assets, income, or expenses of the organization, as compared to the organization as a whole. Turbotax free 1040ez The person owns a controlling interest (measured by either vote or value) in a corporation, partnership, or trust that is a disqualified person. Turbotax free 1040ez The person is a nonstock organization controlled directly or indirectly by one or more disqualified persons. Turbotax free 1040ez   Facts and circumstances tending to show that a person does not have substantial influence over the affairs of an organization include, but are not limited to, the following. Turbotax free 1040ez The person has taken a bona fide vow of poverty as an employee or agent of a religious organization or on its behalf. Turbotax free 1040ez The person is an independent contractor whose sole relationship to the organization is providing professional advice (without having decision-making authority) with respect to transactions from which the independent contractor will not economically benefit either directly or indirectly aside from customary fees received for the professional advice rendered. Turbotax free 1040ez Any preferential treatment the person receives based on the size of the person's donation is also offered to others making comparable widely solicited donations. Turbotax free 1040ez The direct supervisor of the person is not a disqualified person. Turbotax free 1040ez The person does not participate in any management decisions affecting the organization as a whole or a discrete segment of the organization that represents a substantial portion of the activities, assets, income, or expenses of the organization, as compared to the organization as a whole. Turbotax free 1040ez   In the case of multiple organizations affiliated by common control or governing documents, the determination of whether a person does or does not have substantial influence is made separately for each applicable tax-exempt organization. Turbotax free 1040ez A person may be a disqualified person with respect to transactions with more than one organization. Turbotax free 1040ez Reasonable Compensation. Turbotax free 1040ez    Reasonable compensation is the value that would ordinarily be paid for like services by like enterprises under like circumstances. Turbotax free 1040ez The section 162 standard will apply in determining the reasonableness of compensation. Turbotax free 1040ez The fact that a bonus or revenue-sharing arrangement is subject to a cap is a relevant factor in determining reasonableness of compensation. Turbotax free 1040ez   To determine the reasonableness of compensation, all items of compensation provided by an applicable tax-exempt organization in exchange for performance of services are taken into account in determining the value of compensation (except for economic benefits that are disregarded under the discussion Disregarded benefits , later). Turbotax free 1040ez Items of compensation include: All forms of cash and noncash compensation, including salary, fees, bonuses, severance payments, and deferred noncash compensation, The payment of liability insurance premiums for, or the payment or reimbursement by the organization of penalties, taxes, or certain expenses under section 4958, unless excludable from income as a de minimis fringe benefit under section 132(a)(4), All other compensatory benefits, whether or not included in gross income for income tax purposes, Taxable and nontaxable fringe benefits, except fringe benefits described in section 132, and Foregone interest on loans. Turbotax free 1040ez    Intent to treat benefits as compensation. Turbotax free 1040ez An economic benefit is not treated as consideration for the performance of services unless the organization providing the benefit clearly indicates its intent to treat the benefit as compensation when the benefit is paid. Turbotax free 1040ez   An applicable tax-exempt organization (or entity that it controls) is treated as clearly indicating its intent to provide an economic benefit as compensation for services only if the organization provides written substantiation that is contemporaneous with the transfer of the economic benefits under consideration. Turbotax free 1040ez Ways to provide contemporaneous written substantiation of its intent to provide an economic benefit as compensation include: The organization produces a signed written employment contract, The organization reports the benefit as compensation on an original Form W-2, Form 1099, or Form 990, or on an amended form filed before starting an IRS examination, or The disqualified person reports the benefit as income on the person's original Form 1040, or on an amended form filed before starting an IRS examination. Turbotax free 1040ez Exception. Turbotax free 1040ez   If the economic benefit is excluded from the disqualified person's gross income for income tax purposes, the applicable tax-exempt organization is not required to indicate its intent to provide an economic benefit as compensation for services. Turbotax free 1040ez Rebuttable presumption that a transaction is not an excess benefit transaction. Turbotax free 1040ez   Payments under a compensation arrangement are presumed to be reasonable and the transfer of property (or right to use property) is presumed to be at fair market value, if the following three conditions are met. Turbotax free 1040ez The transaction is approved in advance by an authorized body of the organization (or an entity it controls) which is composed of individuals who do not have a conflict of interest concerning the transaction. Turbotax free 1040ez Before making its determination, the authorized body obtained and relied upon appropriate data as to comparability. Turbotax free 1040ez (There is a special safe harbor for small organizations. Turbotax free 1040ez If the organization has gross receipts of less than $1 million, appropriate comparability data includes data on compensation paid by three comparable organizations in the same or similar communities for similar services. Turbotax free 1040ez ) The authorized body adequately documents the basis for its determination concurrently with making that determination. Turbotax free 1040ez The documentation should include: The terms of the approved transaction and the date approved, The members of the authorized body who were present during debate on the transaction that was approved and those who voted on it, The comparability data obtained and relied upon by the authorized body and how the data was obtained, Any actions by a member of the authorized body having conflict of interest, and Documentation of the basis of the determination before the later of the next meeting of the authorized body or 60 days after the final actions of the authorized body are taken, and approval of records as reasonable, accurate, and complete within a reasonable time thereafter. Turbotax free 1040ez Disregarded benefits. Turbotax free 1040ez   The following economic benefits are disregarded for section 4958 purposes. Turbotax free 1040ez Nontaxable fringe benefits that are excluded from income under section 132. Turbotax free 1040ez Benefits provided to a volunteer for the organization if the benefit is provided to the general public in exchange for a membership fee or contribution of $75 or less. Turbotax free 1040ez Benefits provided to a member of an organization due to the payment of a membership fee or to a donor as a result of a deductible contribution, if a significant number of disqualified persons make similar payments or contributions and are offered a similar economic benefit. Turbotax free 1040ez Benefits provided to a person solely as a member of a charitable class that the applicable tax-exempt organization intends to benefit as part of the accomplishment of its exempt purpose. Turbotax free 1040ez A transfer of an economic benefit to or for the use of a governmental unit, as defined in section 170(c)(1), if exclusively for public purposes. Turbotax free 1040ez Special Exception for Initial Contracts      Section 4958 does not apply to any fixed payment made to a person under an initial contract. Turbotax free 1040ez   A fixed payment is an amount of cash or other property specified in the contract, or determined by a fixed formula that is specified in the contract, which is to be paid or transferred in exchange for the provision of specified services or property. Turbotax free 1040ez   A fixed formula can, generally, incorporate an amount that depends upon future specified events or contingencies, as long as no one has discretion when calculating the amount of a payment or deciding whether to make a payment (such as a bonus). Turbotax free 1040ez   An initial contract is a binding written contract between an applicable tax-exempt organization and a person who was not a disqualified person immediately before entering into the contract. Turbotax free 1040ez   A binding written contract, providing it can be terminated or canceled by the applicable tax-exempt organization without the other party's consent (except as a result of substantial nonperformance) and without substantial penalty, is treated as a new contract, as of the earliest date any termination or cancellation would be effective. Turbotax free 1040ez Also, if the parties make a material change to a contract, which includes an extension or renewal of the contract (except for an extension or renewal resulting from the exercise of an option by the disqualified person), or a more than incidental change to the amount payable under the contract, it is treated as a new contract as of the effective date of the material change. Turbotax free 1040ez More information. Turbotax free 1040ez   For more information, see the Instructions to Forms 990 and 4720. Turbotax free 1040ez Excess Business Holdings Private foundations are generally not permitted to hold more than a 20% interest in an unrelated business enterprise. Turbotax free 1040ez They may be subject to an excise tax on the amount of any excess business holdings. Turbotax free 1040ez For purposes of section 4943, for tax years beginning after August 17, 2006, donor advised funds and certain supporting organizations are considered private foundations. Turbotax free 1040ez Donor advised fund. Turbotax free 1040ez   In general, a donor advised fund is a fund or account separately identified by reference to contributions of a donor or donors that is owned and controlled by a sponsoring organization and for which the donor has or expects to have advisory privileges concerning the distribution or investment of the funds. Turbotax free 1040ez Supporting organizations. Turbotax free 1040ez   Only certain supporting organizations are subject to the excess business holdings tax under section 4943. Turbotax free 1040ez These include (1) Type III supporting organizations that are not functionally integrated and (2) Type II supporting organizations that accept any gift or contribution from a person who by himself or in connection with a related party controls the supported organization that the Type II supporting organization supports. Turbotax free 1040ez Taxes. Turbotax free 1040ez   A private foundation that has excess holdings in a business enterprise may become liable for an excise tax based on the amount of holdings. Turbotax free 1040ez The initial tax is 10% (5% for tax years beginning before August 18, 2006) of the value of the excess holdings and is imposed on the last day of each tax year that ends during the taxable period. Turbotax free 1040ez The excess holdings are determined on the day during the tax year when they were the largest. Turbotax free 1040ez   A foundation that fails to correct the excess business holdings becomes liable for an additional tax of 200% of the remaining excess business holdings as of the earlier of tax assessment or mailing of a notice of deficiency. Turbotax free 1040ez   For more information on the tax on excess business holdings, see the Instructions for Form 4720. Turbotax free 1040ez Taxable Distributions of Sponsoring Organizations An excise tax is imposed on a sponsoring organization for each taxable distribution it makes from a donor advised fund. Turbotax free 1040ez An excise tax is also imposed on any fund manager of the sponsoring organization who agreed to the making of a distribution, knowing that it is a taxable distribution. Turbotax free 1040ez Taxable distribution. Turbotax free 1040ez   A taxable distribution is any distribution from a donor advised fund to any natural person or to any other person if: The distribution is for any purpose other than one specified in section 170(c)(2)(B), or The sponsoring organization maintaining the donor advised fund does not exercise expenditure responsibility with respect to the distribution in accordance with section 4945(h). Turbotax free 1040ez    However, a taxable distribution does not include a distribution from a donor advised fund to: Any organization described in section 170(b)(1)(A) (other than a disqualified supporting organization), The sponsoring organization of the donor advised fund, or Any other donor advised fund. Turbotax free 1040ez The tax on taxable distributions applies to distributions occurring in tax years beginning after August 17, 2006. Turbotax free 1040ez Sponsoring organization. Turbotax free 1040ez   A sponsoring organization is a section 170(c) organization that is neither a government organization (as referred to in section 170(c)(1) and (2)(A)) nor a private foundation. Turbotax free 1040ez Donor advised fund. Turbotax free 1040ez    A donor advised fund is a fund or account: Which is separately identified by reference to contributions of a donor or donors, Which is owned and controlled by a sponsoring organization, and For which the donor (or any person appointed or designated by the donor) has or expects to have advisory privileges concerning the distribution or investment of the funds held in the donor advised funds or accounts because of the donor's status as a donor. Turbotax free 1040ez Exception. Turbotax free 1040ez A donor advised fund does not include:    A fund or account that makes distributions only to a single identified organization or governmental entity, or Any fund or account for a person described in 3 above that gives advice about which individuals receive grants for travel, study, or similar purposes, if the following three requirements are met: The person's advisory privileges are performed exclusively by such person in their capacity as a committee member of which all the committee members are appointed by the sponsoring organization, No combination of persons with advisory privileges, described in 3 above, or persons related to those in 3 above directly or indirectly control the committee, and All grants from the fund or account are awarded on an objective and nondiscriminatory basis according to a procedure approved in advance by the board of directors of the sponsoring organization. Turbotax free 1040ez The procedure must be designed to ensure that all grants meet the requirements of section 4945(g)(1), (2), or (3). Turbotax free 1040ez Disqualified supporting organization. Turbotax free 1040ez   A disqualified supporting organization includes (1) a Type III supporting organization that is not functionally integrated and (2) any supporting organization where the donor or donor advisor (and any related parties) directly or indirectly controls a supported organization of the supporting organization. Turbotax free 1040ez Tax on sponsoring organization. Turbotax free 1040ez   A tax of 20% of the amount of each taxable distribution is imposed on the sponsoring organization. Turbotax free 1040ez Tax on fund manager. Turbotax free 1040ez   If a tax is imposed on a taxable distribution of the sponsoring organization, a tax of 5% of the distribution will be imposed on any fund manager who agreed to the distribution knowing that it was a taxable distribution. Turbotax free 1040ez Any fund manager who took part in the distribution and is liable for the tax must pay the tax. Turbotax free 1040ez The maximum amount of tax on all fund managers for any one taxable distribution is $10,000. Turbotax free 1040ez If more than one fund manager is liable for tax on a taxable distribution, all such managers are jointly and severally liable for the tax. Turbotax free 1040ez   For more information on the tax on taxable distributions of sponsoring organizations, see the Instructions for Form 4720. Turbotax free 1040ez Taxes on Prohibited Benefits Resulting From Donor Advised Fund Distributions Prohibited benefit. Turbotax free 1040ez   If any donor, donor advisor, or related party advises the sponsoring organization about making a distribution which results in a donor, donor advisor, or related party receiving (either directly or indirectly) a more than incidental benefit, then such benefit is a prohibited benefit. Turbotax free 1040ez The tax on prohibited benefits applies to distributions occurring in tax years beginning after August 17, 2006. Turbotax free 1040ez Donor advisor. Turbotax free 1040ez   A donor advisor is any person appointed or designated by a donor to advise a sponsoring organization on the distribution or investment of amounts held in the donor's fund or account. Turbotax free 1040ez Related party. Turbotax free 1040ez   A related party includes any family member or 35% controlled entity. Turbotax free 1040ez See the definition of those terms under Disqualified Person , earlier. Turbotax free 1040ez Tax on donor, donor advisor, or related person. Turbotax free 1040ez    A tax of 125% of the benefit resulting from the distribution is imposed on both the party who advised as to the distribution (which might be a donor, donor advisor, or related party) and the party who received such benefit (which might be a donor, donor advisor, or related party). Turbotax free 1040ez The advisor and the party who received the benefit are jointly and severally liable for the tax. Turbotax free 1040ez Tax on fund managers. Turbotax free 1040ez   If a tax is imposed on a prohibited benefit received by a donor, donor advisor, or related person, a tax of 10% of the amount of the prohibited benefit is imposed on any fund manager who agreed to the distribution knowing that it would confer a prohibited benefit. Turbotax free 1040ez Any fund manager who took part in the distribution and is liable for the tax must pay the tax. Turbotax free 1040ez The maximum amount of tax on all fund managers for any one taxable distribution is $10,000. Turbotax free 1040ez If more than one fund manager is liable for tax on a taxable distribution, all such managers are jointly and severally liable for the tax. Turbotax free 1040ez Exception. Turbotax free 1040ez   If a person engaged in an excess benefit transaction and received a prohibited benefit for the same transaction, the person is taxed under section 4958, and no tax is imposed under section 4967 for a prohibited benefit. Turbotax free 1040ez   For more information on taxes on prohibited benefits distributed from donor advised funds, see the Instructions for Form 4720. Turbotax free 1040ez Excise Taxes on Private Foundations There is an excise tax on the net investment income of most domestic private foundations. Turbotax free 1040ez Capital gains from appreciation are included in the tax base on private foundation net investment income. Turbotax free 1040ez This tax must be reported on Form 990-PF and must be paid annually at the time for filing that return or in quarterly estimated tax payments if the total tax for the year (section 4940 tax minus credits) is $500 or more. Turbotax free 1040ez Form 990-W is used to calculate the estimated tax. Turbotax free 1040ez In addition, there are several other rules that apply to excise taxes on private foundations. Turbotax free 1040ez These include: Restrictions on self-dealing between private foundations and their substantial contributors and other disqualified persons, Requirements that the foundation annually distribute income for charitable purposes, Limits on their holdings in any business enterprise (see Excess Business Holdings, earlier), Provisions that investments must not jeopardize the carrying out of exempt purposes, and Provisions to assure that expenditures further the organization's exempt purposes. Turbotax free 1040ez Violations of these provisions give rise to taxes and penalties against the private foundation and, in some cases, its managers, its substantial contributors, and certain related persons. Turbotax free 1040ez For more information on the excise taxes imposed on private foundations, see the Instructions for Form 4720 and the Instructions for Form 990-PF. Turbotax free 1040ez Excise Taxes on Black Lung Benefit Trusts A black lung benefit trust that makes any expenditures, payments, or investments other than those described in chapter 4 under 501(c)(21) - Black Lung Benefit Trusts must pay a tax equal to 10% of the amount of such expenditures. Turbotax free 1040ez If there are any acts of self-dealing between the trust and a disqualified person, a tax equal to 10% of the amount involved is imposed on the disqualified person. Turbotax free 1040ez Both of these excise taxes are reported on Schedule A (Form 990-BL). Turbotax free 1040ez See the Form 990-BL instructions for more information on these taxes and what has to be filed, even if the trust is excepted from filing. Turbotax free 1040ez Excise Tax on Failure to Meet the Community Health Needs Assessment Requirements For tax years beginning after March 23, 2012, new section 4959 imposes an excise tax on hospital organizations which fail to meet certain section 501(r) requirements for each of their hospital facilities. Turbotax free 1040ez These entities must meet section 501(r)(3) requirements at all times during their tax year. Turbotax free 1040ez Section 501(r)(3) requirements pertain to a hospital organization preparing a community health needs assessment (CHNA). Turbotax free 1040ez See Schedule H, Hospitals (Form 990), for details. Turbotax free 1040ez Prev  Up  Next   Home   More Online Publications

Topic 506 - Charitable Contributions

Charitable contributions are deductible only if you itemize deductions on Form 1040, Schedule A (PDF).

To be deductible, charitable contributions must be made to qualified organizations. Payments to individuals are never deductible. See Publication 526, Charitable Contributions. To determine if the organization that you have contributed to qualifies as a charitable organization for income tax deductions, review Exempt Organizations Select Check on the IRS.gov website.

If your contribution entitles you to merchandise, goods, or services, including admission to a charity ball, banquet, theatrical performance, or sporting event, you can deduct only the amount that exceeds the fair market value of the benefit received.

For a contribution of cash, check, or other monetary gift (regardless of amount), you must maintain as a record of the contribution a bank record or a written communication from the qualified organization containing the name of the organization, the date of the contribution, and the amount of the contribution. In addition to deducting your cash contributions, you generally can deduct the fair market value of any other property you donate to qualified organizations. See Publication 561, Determining the Value of Donated Property. For any contribution of $250 or more (including contributions of cash or property), you must obtain and keep in your records a contemporaneous written acknowledgment from the qualified organization indicating the amount of the cash and a description of any property contributed. The acknowledgment must say whether the organization provided any goods or services in exchange for the gift and, if so, must provide a description and a good faith estimate of the value of those goods or services. One document from the qualified organization may satisfy both the written communication requirement for monetary gifts and the contemporaneous written acknowledgment requirement for all contributions of $250 or more.

You must fill out Form 8283 (PDF), and attach it to your return, if your deduction for a noncash contribution is more than $500. If you claim a deduction for a contribution of noncash property worth $5,000 or less, you must fill out Form 8283, Section A. If you claim a deduction for a contribution of noncash property worth more than $5,000, you will need a qualified appraisal of the noncash property and must fill out Form 8283, Section B. If you claim a deduction for a contribution of noncash property worth more than $500,000, you also will need to attach the qualified appraisal to your return.

Special rules apply to donations of certain types of property such as automobiles, inventory and investments that have appreciated in value. For more information, refer to Publication 526, Charitable Contributions. For information on determining the value of your noncash contributions, refer to Publication 561, Determining the Value of Donated Property.

Page Last Reviewed or Updated: December 12, 2013

The Turbotax Free 1040ez

Turbotax free 1040ez 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. Turbotax free 1040ez Filing options when no return is required. Turbotax free 1040ez 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. Turbotax free 1040ez Claim for refund process. Turbotax free 1040ez 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. Turbotax free 1040ez The worker is your employee if you can control not only what work is done, but how it is done. Turbotax free 1040ez 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. Turbotax free 1040ez It also does not matter whether you pay the worker on an hourly, daily, or weekly basis, or by the job. Turbotax free 1040ez Example. Turbotax free 1040ez You pay Betty Shore to babysit your child and do light housework 4 days a week in your home. Turbotax free 1040ez Betty follows your specific instructions about household and child care duties. Turbotax free 1040ez You provide the household equipment and supplies that Betty needs to do her work. Turbotax free 1040ez Betty is your household employee. Turbotax free 1040ez Household work. Turbotax free 1040ez   Household work is work done in or around your home. Turbotax free 1040ez 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. Turbotax free 1040ez Workers who are not your employees. Turbotax free 1040ez   If only the worker can control how the work is done, the worker is not your employee but is self-employed. Turbotax free 1040ez A self-employed worker usually provides his or her own tools and offers services to the general public in an independent business. Turbotax free 1040ez   A worker who performs child care services for you in his or her home generally is not your employee. Turbotax free 1040ez   If an agency provides the worker and controls what work is done and how it is done, the worker is not your employee. Turbotax free 1040ez Example. Turbotax free 1040ez You made an agreement with John Peters to care for your lawn. Turbotax free 1040ez John runs a lawn care business and offers his services to the general public. Turbotax free 1040ez He provides his own tools and supplies, and he hires and pays any helpers he needs. Turbotax free 1040ez Neither John nor his helpers are your household employees. Turbotax free 1040ez More information. Turbotax free 1040ez   More information about who is an employee is in Publication 15-A, Employer's Supplemental Tax Guide. Turbotax free 1040ez 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. Turbotax free 1040ez When you hire a household employee to work for you on a regular basis, you and the employee must complete the U. Turbotax free 1040ez S. Turbotax free 1040ez Citizenship and Immigration Services (USCIS) Form I-9, Employment Eligibility Verification. Turbotax free 1040ez 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. Turbotax free 1040ez You must complete the employer section by examining documents presented by the employee as evidence of his or her identity and employment eligibility. Turbotax free 1040ez Acceptable documents to establish identity and employment eligibility are listed on Form I-9. Turbotax free 1040ez You should keep the completed Form I-9 in your own records. Turbotax free 1040ez Do not submit it to the IRS, the USCIS, or any other government or other entity. Turbotax free 1040ez The form must be kept available for review upon notice by an authorized U. Turbotax free 1040ez S. Turbotax free 1040ez Government official. Turbotax free 1040ez Two copies of Form I-9 are contained in the Handbook for Employers (Form M-274) published by the USCIS. Turbotax free 1040ez Call the USCIS at 1-800-870-3676 to order the Handbook for Employers; or you may download the handbook at www. Turbotax free 1040ez uscis. Turbotax free 1040ez gov. Turbotax free 1040ez 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. Turbotax free 1040ez You also can visit the USCIS website at www. Turbotax free 1040ez uscis. Turbotax free 1040ez gov to get Form I-9. Turbotax free 1040ez For more information, see Employee's Social Security Number (SSN) in Publication 15 (Circular E), Employer's Tax Guide. Turbotax free 1040ez 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. Turbotax free 1040ez To find out, read Table 1. Turbotax free 1040ez You do not need to withhold federal income tax from your household employee's wages. Turbotax free 1040ez But if your employee asks you to withhold it, you can. Turbotax free 1040ez See Do You Need To Withhold Federal Income Tax, later. Turbotax free 1040ez 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. Turbotax free 1040ez 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. Turbotax free 1040ez The rest of this publication does not apply to you. Turbotax free 1040ez State employment taxes. Turbotax free 1040ez   You should contact your state unemployment tax agency to find out whether you need to pay state unemployment tax for your household employee. Turbotax free 1040ez For a list of state unemployment tax agencies, visit the U. Turbotax free 1040ez S. Turbotax free 1040ez Department of Labor's website at www. Turbotax free 1040ez workforcesecurity. Turbotax free 1040ez doleta. Turbotax free 1040ez gov/unemploy/agencies. Turbotax free 1040ez asp. Turbotax free 1040ez You should also determine if you need to pay or collect other state employment taxes or carry workers' compensation insurance. Turbotax free 1040ez    Table 1. Turbotax free 1040ez Do You Need To Pay Employment Taxes? IF you . Turbotax free 1040ez . Turbotax free 1040ez . Turbotax free 1040ez THEN you need to . Turbotax free 1040ez . Turbotax free 1040ez . Turbotax free 1040ez A– Pay cash wages of $1,900 or more in 2014 to any one household employee. Turbotax free 1040ez Withhold and pay social security and Medicare taxes. Turbotax free 1040ez The taxes are 15. Turbotax free 1040ez 3%1 of cash wages. Turbotax free 1040ez Your employee's share is 7. Turbotax free 1040ez 65%1. Turbotax free 1040ez   (You can choose to pay it yourself and not withhold it. Turbotax free 1040ez ) Your share is 7. Turbotax free 1040ez 65%. Turbotax free 1040ez   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). Turbotax free 1040ez B– Pay total cash wages of $1,000 or more in any calendar quarter of 2013 or 2014 to household employees. Turbotax free 1040ez Pay federal unemployment tax. Turbotax free 1040ez The tax is 6% of cash wages. Turbotax free 1040ez Wages over $7,000 a year per employee are not taxed. Turbotax free 1040ez You also may owe state unemployment tax. Turbotax free 1040ez   Do not count wages you pay to— Your spouse, Your child under the age of 21, or Your parent. Turbotax free 1040ez 1In addition to withholding Medicare tax at 1. Turbotax free 1040ez 45%, you must withhold a 0. Turbotax free 1040ez 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. Turbotax free 1040ez 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. Turbotax free 1040ez Additional Medicare Tax is only imposed on the employee. Turbotax free 1040ez There is no employer share of Additional Medicare Tax. Turbotax free 1040ez 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. Turbotax free 1040ez Note. Turbotax free 1040ez If neither A nor B above applies, you do not need to pay any federal employment taxes. Turbotax free 1040ez But you may still need to pay state employment taxes. Turbotax free 1040ez Table 2. Turbotax free 1040ez Household Employer's Checklist You may need to do the following things when you have a household employee. Turbotax free 1040ez   When you hire a household employee: □ Find out if the person can legally work in the United States. Turbotax free 1040ez  □ Find out if you need to pay state taxes. Turbotax free 1040ez When you pay your household employee: □ Withhold social security and Medicare taxes. Turbotax free 1040ez  □ Withhold federal income tax. Turbotax free 1040ez  □ Decide how you will make tax payments. Turbotax free 1040ez  □ Keep records. Turbotax free 1040ez By February 2, 2015: □ Get an employer identification number (EIN). Turbotax free 1040ez  □ Give your employee Copies B, C, and 2 of Form W-2, Wage and Tax Statement. Turbotax free 1040ez 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). Turbotax free 1040ez 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). Turbotax free 1040ez  If you do not have to file a return, file Schedule H by itself. Turbotax free 1040ez Social Security and Medicare Taxes The social security tax pays for old-age, survivors, and disability benefits for workers and their families. Turbotax free 1040ez The Medicare tax pays for hospital insurance. Turbotax free 1040ez Both you and your household employee may owe social security and Medicare taxes. Turbotax free 1040ez Your share is 7. Turbotax free 1040ez 65% (6. Turbotax free 1040ez 2% for social security tax and 1. Turbotax free 1040ez 45% for Medicare tax) of the employee's social security and Medicare wages. Turbotax free 1040ez Your employee's share is also 7. Turbotax free 1040ez 65% (6. Turbotax free 1040ez 2% for social security tax and 1. Turbotax free 1040ez 45% for Medicare tax). Turbotax free 1040ez In addition to withholding Medicare tax at 1. Turbotax free 1040ez 45%, you must withhold a 0. Turbotax free 1040ez 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. Turbotax free 1040ez 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. Turbotax free 1040ez Additional Medicare Tax is only imposed on the employee. Turbotax free 1040ez There is no employer share of Additional Medicare Tax. Turbotax free 1040ez 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. Turbotax free 1040ez For more information on Additional Medicare Tax, visit IRS. Turbotax free 1040ez gov and enter “Additional Medicare Tax” in the search box. Turbotax free 1040ez Generally, you can use Table 3 to figure the amount of social security and Medicare taxes to withhold from each wage payment. Turbotax free 1040ez You are responsible for payment of your employee's share of the taxes as well as your own. Turbotax free 1040ez You can either withhold your employee's share from the employee's wages or pay it from your own funds. Turbotax free 1040ez If you decide to pay the employee's share from your own funds, see Not withholding the employee's share, later. Turbotax free 1040ez Pay the taxes as discussed under How Do You Make Tax Payments, later. Turbotax free 1040ez Also, see What Forms Must You File, later. Turbotax free 1040ez Social security and Medicare wages. Turbotax free 1040ez   You figure social security and Medicare taxes on the social security and Medicare wages you pay your employee. Turbotax free 1040ez   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. Turbotax free 1040ez However, any noncash wages you pay do not count as social security and Medicare wages. Turbotax free 1040ez   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. Turbotax free 1040ez Cash wages. Turbotax free 1040ez   Cash wages include wages you pay by check, money order, etc. Turbotax free 1040ez Cash wages do not include the value of food, lodging, clothing, and other noncash items you give your household employee. Turbotax free 1040ez However, cash you give your employee in place of these items is included in cash wages. Turbotax free 1040ez State disability payments treated as wages. Turbotax free 1040ez   Certain state disability plan payments that your household employee may receive are treated as social security and Medicare wages. Turbotax free 1040ez For more information about these payments, see the Instructions for Schedule H (Form 1040) and the notice issued by the state. Turbotax free 1040ez Wages not counted. Turbotax free 1040ez   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. Turbotax free 1040ez Your spouse. Turbotax free 1040ez Your child who is under the age of 21. Turbotax free 1040ez Your parent. Turbotax free 1040ez Exception: Count these wages if both the following conditions apply. Turbotax free 1040ez Your parent cares for your child who is either of the following. Turbotax free 1040ez 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. Turbotax free 1040ez Your marital status is one of the following. Turbotax free 1040ez 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. Turbotax free 1040ez An employee who is under the age of 18 at any time during the year. Turbotax free 1040ez Exception: Count these wages if providing household services is the employee's principal occupation. Turbotax free 1040ez If the employee is a student, providing household services is not considered to be his or her principal occupation. Turbotax free 1040ez 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. Turbotax free 1040ez Continue to count the employee's cash wages as Medicare wages to figure Medicare tax. Turbotax free 1040ez 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. Turbotax free 1040ez 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. Turbotax free 1040ez 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. Turbotax free 1040ez If you reimburse your employee for transit passes or parking, you may be able to exclude the reimbursement amounts. Turbotax free 1040ez See Publication 15-B, Employer's Tax Guide to Fringe Benefits, for special requirements for this exclusion. Turbotax free 1040ez Withholding the employee's share. Turbotax free 1040ez   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. Turbotax free 1040ez However, if you prefer to pay the employee's share yourself, see Not withholding the employee's share, later. Turbotax free 1040ez   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. Turbotax free 1040ez 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. Turbotax free 1040ez   Withhold 7. Turbotax free 1040ez 65% (6. Turbotax free 1040ez 2% for social security tax and 1. Turbotax free 1040ez 45% for Medicare tax) from each payment of social security and Medicare wages. Turbotax free 1040ez Generally, you can use Table 3 to figure the proper amount to withhold. Turbotax free 1040ez You will pay the amount withheld to the IRS with your share of the taxes. Turbotax free 1040ez Do not withhold any social security tax after your employee's social security wages for the year reach $117,000. Turbotax free 1040ez Table 3. Turbotax free 1040ez Employee Social Security (6. Turbotax free 1040ez 2%) and Medicare (1. Turbotax free 1040ez 45%1) Tax Withholding Table (See Publication 15 (Circular E) for income tax withholding tables. Turbotax free 1040ez ) Use this table to figure the amount of social security and Medicare taxes to withhold from each wage payment. Turbotax free 1040ez For example, on a wage payment of $180, the employee social security tax is $11. Turbotax free 1040ez 16 ($6. Turbotax free 1040ez 20 tax on $100 plus $4. Turbotax free 1040ez 96 on $80 wages). Turbotax free 1040ez The employee Medicare tax is $2. Turbotax free 1040ez 61 ($1. Turbotax free 1040ez 45 tax on $100 plus $1. Turbotax free 1040ez 16 on $80 wages). Turbotax free 1040ez If wage payment is: The social security tax to be withheld is: The Medicare tax to be withheld is: If wage payment is: The social security tax to be withheld is: The Medicare tax to be withheld is: $ 1. Turbotax free 1040ez 00 . Turbotax free 1040ez $ . Turbotax free 1040ez 06 $ . Turbotax free 1040ez 01 $ 51. Turbotax free 1040ez 00 . Turbotax free 1040ez $ 3. Turbotax free 1040ez 16 $ . Turbotax free 1040ez 74 2. Turbotax free 1040ez 00 . Turbotax free 1040ez . Turbotax free 1040ez 12 . Turbotax free 1040ez 03 52. Turbotax free 1040ez 00 . Turbotax free 1040ez 3. Turbotax free 1040ez 22 . Turbotax free 1040ez 75 3. Turbotax free 1040ez 00 . Turbotax free 1040ez . Turbotax free 1040ez 19 . Turbotax free 1040ez 04 53. Turbotax free 1040ez 00 . Turbotax free 1040ez 3. Turbotax free 1040ez 29 . Turbotax free 1040ez 77 4. Turbotax free 1040ez 00 . Turbotax free 1040ez . Turbotax free 1040ez 25 . Turbotax free 1040ez 06 54. Turbotax free 1040ez 00 . Turbotax free 1040ez 3. Turbotax free 1040ez 35 . Turbotax free 1040ez 78 5. Turbotax free 1040ez 00 . Turbotax free 1040ez . Turbotax free 1040ez 31 . Turbotax free 1040ez 07 55. Turbotax free 1040ez 00 . Turbotax free 1040ez 3. Turbotax free 1040ez 41 . Turbotax free 1040ez 80 6. Turbotax free 1040ez 00 . Turbotax free 1040ez . Turbotax free 1040ez 37 . Turbotax free 1040ez 09 56. Turbotax free 1040ez 00 . Turbotax free 1040ez 3. Turbotax free 1040ez 47 . Turbotax free 1040ez 81 7. Turbotax free 1040ez 00 . Turbotax free 1040ez . Turbotax free 1040ez 43 . Turbotax free 1040ez 10 57. Turbotax free 1040ez 00 . Turbotax free 1040ez 3. Turbotax free 1040ez 53 . Turbotax free 1040ez 83 8. Turbotax free 1040ez 00 . Turbotax free 1040ez . Turbotax free 1040ez 50 . Turbotax free 1040ez 12 58. Turbotax free 1040ez 00 . Turbotax free 1040ez 3. Turbotax free 1040ez 60 . Turbotax free 1040ez 84 9. Turbotax free 1040ez 00 . Turbotax free 1040ez . Turbotax free 1040ez 56 . Turbotax free 1040ez 13 59. Turbotax free 1040ez 00 . Turbotax free 1040ez 3. Turbotax free 1040ez 66 . Turbotax free 1040ez 86 10. Turbotax free 1040ez 00 . Turbotax free 1040ez . Turbotax free 1040ez 62 . Turbotax free 1040ez 15 60. Turbotax free 1040ez 00 . Turbotax free 1040ez 3. Turbotax free 1040ez 72 . Turbotax free 1040ez 87 11. Turbotax free 1040ez 00 . Turbotax free 1040ez . Turbotax free 1040ez 68 . Turbotax free 1040ez 16 61. Turbotax free 1040ez 00 . Turbotax free 1040ez 3. Turbotax free 1040ez 78 . Turbotax free 1040ez 88 12. Turbotax free 1040ez 00 . Turbotax free 1040ez . Turbotax free 1040ez 74 . Turbotax free 1040ez 17 62. Turbotax free 1040ez 00 . Turbotax free 1040ez 3. Turbotax free 1040ez 84 . Turbotax free 1040ez 90 13. Turbotax free 1040ez 00 . Turbotax free 1040ez . Turbotax free 1040ez 81 . Turbotax free 1040ez 19 63. Turbotax free 1040ez 00 . Turbotax free 1040ez 3. Turbotax free 1040ez 91 . Turbotax free 1040ez 91 14. Turbotax free 1040ez 00 . Turbotax free 1040ez . Turbotax free 1040ez 87 . Turbotax free 1040ez 20 64. Turbotax free 1040ez 00 . Turbotax free 1040ez 3. Turbotax free 1040ez 97 . Turbotax free 1040ez 93 15. Turbotax free 1040ez 00 . Turbotax free 1040ez . Turbotax free 1040ez 93 . Turbotax free 1040ez 22 65. Turbotax free 1040ez 00 . Turbotax free 1040ez 4. Turbotax free 1040ez 03 . Turbotax free 1040ez 94 16. Turbotax free 1040ez 00 . Turbotax free 1040ez . Turbotax free 1040ez 99 . Turbotax free 1040ez 23 66. Turbotax free 1040ez 00 . Turbotax free 1040ez 4. Turbotax free 1040ez 09 . Turbotax free 1040ez 96 17. Turbotax free 1040ez 00 . Turbotax free 1040ez 1. Turbotax free 1040ez 05 . Turbotax free 1040ez 25 67. Turbotax free 1040ez 00 . Turbotax free 1040ez 4. Turbotax free 1040ez 15 . Turbotax free 1040ez 97 18. Turbotax free 1040ez 00 . Turbotax free 1040ez 1. Turbotax free 1040ez 12 . Turbotax free 1040ez 26 68. Turbotax free 1040ez 00 . Turbotax free 1040ez 4. Turbotax free 1040ez 22 . Turbotax free 1040ez 99 19. Turbotax free 1040ez 00 . Turbotax free 1040ez 1. Turbotax free 1040ez 18 . Turbotax free 1040ez 28 69. Turbotax free 1040ez 00 . Turbotax free 1040ez 4. Turbotax free 1040ez 28 1. Turbotax free 1040ez 00 20. Turbotax free 1040ez 00 . Turbotax free 1040ez 1. Turbotax free 1040ez 24 . Turbotax free 1040ez 29 70. Turbotax free 1040ez 00 . Turbotax free 1040ez 4. Turbotax free 1040ez 34 1. Turbotax free 1040ez 02 21. Turbotax free 1040ez 00 . Turbotax free 1040ez 1. Turbotax free 1040ez 30 . Turbotax free 1040ez 30 71. Turbotax free 1040ez 00 . Turbotax free 1040ez 4. Turbotax free 1040ez 40 1. Turbotax free 1040ez 03 22. Turbotax free 1040ez 00 . Turbotax free 1040ez 1. Turbotax free 1040ez 36 . Turbotax free 1040ez 32 72. Turbotax free 1040ez 00 . Turbotax free 1040ez 4. Turbotax free 1040ez 46 1. Turbotax free 1040ez 04 23. Turbotax free 1040ez 00 . Turbotax free 1040ez 1. Turbotax free 1040ez 43 . Turbotax free 1040ez 33 73. Turbotax free 1040ez 00 . Turbotax free 1040ez 4. Turbotax free 1040ez 53 1. Turbotax free 1040ez 06 24. Turbotax free 1040ez 00 . Turbotax free 1040ez 1. Turbotax free 1040ez 49 . Turbotax free 1040ez 35 74. Turbotax free 1040ez 00 . Turbotax free 1040ez 4. Turbotax free 1040ez 59 1. Turbotax free 1040ez 07 25. Turbotax free 1040ez 00 . Turbotax free 1040ez 1. Turbotax free 1040ez 55 . Turbotax free 1040ez 36 75. Turbotax free 1040ez 00 . Turbotax free 1040ez 4. Turbotax free 1040ez 65 1. Turbotax free 1040ez 09 26. Turbotax free 1040ez 00 . Turbotax free 1040ez 1. Turbotax free 1040ez 61 . Turbotax free 1040ez 38 76. Turbotax free 1040ez 00 . Turbotax free 1040ez 4. Turbotax free 1040ez 71 1. Turbotax free 1040ez 10 27. Turbotax free 1040ez 00 . Turbotax free 1040ez 1. Turbotax free 1040ez 67 . Turbotax free 1040ez 39 77. Turbotax free 1040ez 00 . Turbotax free 1040ez 4. Turbotax free 1040ez 77 1. Turbotax free 1040ez 12 28. Turbotax free 1040ez 00 . Turbotax free 1040ez 1. Turbotax free 1040ez 74 . Turbotax free 1040ez 41 78. Turbotax free 1040ez 00 . Turbotax free 1040ez 4. Turbotax free 1040ez 84 1. Turbotax free 1040ez 13 29. Turbotax free 1040ez 00 . Turbotax free 1040ez 1. Turbotax free 1040ez 80 . Turbotax free 1040ez 42 79. Turbotax free 1040ez 00 . Turbotax free 1040ez 4. Turbotax free 1040ez 90 1. Turbotax free 1040ez 15 30. Turbotax free 1040ez 00 . Turbotax free 1040ez 1. Turbotax free 1040ez 86 . Turbotax free 1040ez 44 80. Turbotax free 1040ez 00 . Turbotax free 1040ez 4. Turbotax free 1040ez 96 1. Turbotax free 1040ez 16 31. Turbotax free 1040ez 00 . Turbotax free 1040ez 1. Turbotax free 1040ez 92 . Turbotax free 1040ez 45 81. Turbotax free 1040ez 00 . Turbotax free 1040ez 5. Turbotax free 1040ez 02 1. Turbotax free 1040ez 17 32. Turbotax free 1040ez 00 . Turbotax free 1040ez 1. Turbotax free 1040ez 98 . Turbotax free 1040ez 46 82. Turbotax free 1040ez 00 . Turbotax free 1040ez 5. Turbotax free 1040ez 08 1. Turbotax free 1040ez 19 33. Turbotax free 1040ez 00 . Turbotax free 1040ez 2. Turbotax free 1040ez 05 . Turbotax free 1040ez 48 83. Turbotax free 1040ez 00 . Turbotax free 1040ez 5. Turbotax free 1040ez 15 1. Turbotax free 1040ez 20 34. Turbotax free 1040ez 00 . Turbotax free 1040ez 2. Turbotax free 1040ez 11 . Turbotax free 1040ez 49 84. Turbotax free 1040ez 00 . Turbotax free 1040ez 5. Turbotax free 1040ez 21 1. Turbotax free 1040ez 22 35. Turbotax free 1040ez 00 . Turbotax free 1040ez 2. Turbotax free 1040ez 17 . Turbotax free 1040ez 51 85. Turbotax free 1040ez 00 . Turbotax free 1040ez 5. Turbotax free 1040ez 27 1. Turbotax free 1040ez 23 36. Turbotax free 1040ez 00 . Turbotax free 1040ez 2. Turbotax free 1040ez 23 . Turbotax free 1040ez 52 86. Turbotax free 1040ez 00 . Turbotax free 1040ez 5. Turbotax free 1040ez 33 1. Turbotax free 1040ez 25 37. Turbotax free 1040ez 00 . Turbotax free 1040ez 2. Turbotax free 1040ez 29 . Turbotax free 1040ez 54 87. Turbotax free 1040ez 00 . Turbotax free 1040ez 5. Turbotax free 1040ez 39 1. Turbotax free 1040ez 26 38. Turbotax free 1040ez 00 . Turbotax free 1040ez 2. Turbotax free 1040ez 36 . Turbotax free 1040ez 55 88. Turbotax free 1040ez 00 . Turbotax free 1040ez 5. Turbotax free 1040ez 46 1. Turbotax free 1040ez 28 39. Turbotax free 1040ez 00 . Turbotax free 1040ez 2. Turbotax free 1040ez 42 . Turbotax free 1040ez 57 89. Turbotax free 1040ez 00 . Turbotax free 1040ez 5. Turbotax free 1040ez 52 1. Turbotax free 1040ez 29 40. Turbotax free 1040ez 00 . Turbotax free 1040ez 2. Turbotax free 1040ez 48 . Turbotax free 1040ez 58 90. Turbotax free 1040ez 00 . Turbotax free 1040ez 5. Turbotax free 1040ez 58 1. Turbotax free 1040ez 31 41. Turbotax free 1040ez 00 . Turbotax free 1040ez 2. Turbotax free 1040ez 54 . Turbotax free 1040ez 59 91. Turbotax free 1040ez 00 . Turbotax free 1040ez 5. Turbotax free 1040ez 64 1. Turbotax free 1040ez 32 42. Turbotax free 1040ez 00 . Turbotax free 1040ez 2. Turbotax free 1040ez 60 . Turbotax free 1040ez 61 92. Turbotax free 1040ez 00 . Turbotax free 1040ez 5. Turbotax free 1040ez 70 1. Turbotax free 1040ez 33 43. Turbotax free 1040ez 00 . Turbotax free 1040ez 2. Turbotax free 1040ez 67 . Turbotax free 1040ez 62 93. Turbotax free 1040ez 00 . Turbotax free 1040ez 5. Turbotax free 1040ez 77 1. Turbotax free 1040ez 35 44. Turbotax free 1040ez 00 . Turbotax free 1040ez 2. Turbotax free 1040ez 73 . Turbotax free 1040ez 64 94. Turbotax free 1040ez 00 . Turbotax free 1040ez 5. Turbotax free 1040ez 83 1. Turbotax free 1040ez 36 45. Turbotax free 1040ez 00 . Turbotax free 1040ez 2. Turbotax free 1040ez 79 . Turbotax free 1040ez 65 95. Turbotax free 1040ez 00 . Turbotax free 1040ez 5. Turbotax free 1040ez 89 1. Turbotax free 1040ez 38 46. Turbotax free 1040ez 00 . Turbotax free 1040ez 2. Turbotax free 1040ez 85 . Turbotax free 1040ez 67 96. Turbotax free 1040ez 00 . Turbotax free 1040ez 5. Turbotax free 1040ez 95 1. Turbotax free 1040ez 39 47. Turbotax free 1040ez 00 . Turbotax free 1040ez 2. Turbotax free 1040ez 91 . Turbotax free 1040ez 68 97. Turbotax free 1040ez 00 . Turbotax free 1040ez 6. Turbotax free 1040ez 01 1. Turbotax free 1040ez 41 48. Turbotax free 1040ez 00 . Turbotax free 1040ez 2. Turbotax free 1040ez 98 . Turbotax free 1040ez 70 98. Turbotax free 1040ez 00 . Turbotax free 1040ez 6. Turbotax free 1040ez 08 1. Turbotax free 1040ez 42 49. Turbotax free 1040ez 00 . Turbotax free 1040ez 3. Turbotax free 1040ez 04 . Turbotax free 1040ez 71 99. Turbotax free 1040ez 00 . Turbotax free 1040ez 6. Turbotax free 1040ez 14 1. Turbotax free 1040ez 44 50. Turbotax free 1040ez 00 . Turbotax free 1040ez 3. Turbotax free 1040ez 10 . Turbotax free 1040ez 73 100. Turbotax free 1040ez 00 . Turbotax free 1040ez 6. Turbotax free 1040ez 20 1. Turbotax free 1040ez 45 1In addition to withholding Medicare tax at 1. Turbotax free 1040ez 45%, you must withhold a 0. Turbotax free 1040ez 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. Turbotax free 1040ez 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. Turbotax free 1040ez Additional Medicare Tax is only imposed on the employee. Turbotax free 1040ez There is no employer share of Additional Medicare Tax. Turbotax free 1040ez 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. Turbotax free 1040ez   If you make an error by withholding too little, you should withhold additional taxes from a later payment. Turbotax free 1040ez If you withhold too much, you should repay the employee. Turbotax free 1040ez    In addition to withholding Medicare tax at 1. Turbotax free 1040ez 45%, you must withhold a 0. Turbotax free 1040ez 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. Turbotax free 1040ez 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. Turbotax free 1040ez Additional Medicare Tax is only imposed on the employee. Turbotax free 1040ez There is no employer share of Additional Medicare Tax. Turbotax free 1040ez 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. Turbotax free 1040ez For more information on Additional Medicare Tax, visit IRS. Turbotax free 1040ez gov and enter “Additional Medicare Tax” in the search box. Turbotax free 1040ez Example. Turbotax free 1040ez On February 13, 2014, Mary Brown hired Jane R. Turbotax free 1040ez Oak (who is an unrelated individual over age 18) to care for her child and agreed to pay cash wages of $50 every Friday. Turbotax free 1040ez Jane worked for the remainder of the year (a total of 46 weeks). Turbotax free 1040ez Mary did not give Jane a Form W-4 to request federal or state tax withholding. Turbotax free 1040ez The following is the information Mary will need to complete Schedule H, Form W-2, and Form W-3. Turbotax free 1040ez See the completed examples of Form W-2 and Form W-3 for 2014 at the end of this publication. Turbotax free 1040ez Total cash wages paid to Jane $2,300. Turbotax free 1040ez 00 ($50 x 46 weeks)       Jane's share of:     Social security tax $142. Turbotax free 1040ez 60 ($2,300 x 6. Turbotax free 1040ez 2% (. Turbotax free 1040ez 062))         Medicare tax $33. Turbotax free 1040ez 35       ($2,300 x 1. Turbotax free 1040ez 45% (. Turbotax free 1040ez 0145)) Mary's share of:     Social security tax $142. Turbotax free 1040ez 60  ($2,300 x 6. Turbotax free 1040ez 2% (. Turbotax free 1040ez 062))           Medicare tax $33. Turbotax free 1040ez 35  ($2,300 x 1. Turbotax free 1040ez 45% (. Turbotax free 1040ez 0145)) Amount reported on Form W-2 and Form W-3:   Box 1:Wages, tips $2,300. Turbotax free 1040ez 00   Box 4: Social security tax withheld 142. Turbotax free 1040ez 60   Box 6: Medicare tax withheld 33. Turbotax free 1040ez 35 For information on withholding and reporting federal income taxes, see Publication 15 (Circular E). Turbotax free 1040ez Not withholding the employee's share. Turbotax free 1040ez   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. Turbotax free 1040ez 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. Turbotax free 1040ez However, they are not counted as social security and Medicare wages or as federal unemployment (FUTA) wages. Turbotax free 1040ez Example. Turbotax free 1040ez 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. Turbotax free 1040ez You expect to pay your employee $1,900 or more for the year. Turbotax free 1040ez You decide to pay your employee's share of social security and Medicare taxes from your own funds. Turbotax free 1040ez You pay your employee $100 every Friday without withholding any social security or Medicare taxes. Turbotax free 1040ez For social security and Medicare tax purposes, your employee's wages each payday are $100. Turbotax free 1040ez For each wage payment, you will pay $15. Turbotax free 1040ez 30 when you pay the taxes. Turbotax free 1040ez This is $7. Turbotax free 1040ez 65 ($6. Turbotax free 1040ez 20 for social security tax + $1. Turbotax free 1040ez 45 for Medicare tax) to cover your employee's share plus $7. Turbotax free 1040ez 65 ($6. Turbotax free 1040ez 20 for social security tax + $1. Turbotax free 1040ez 45 for Medicare tax) for your share. Turbotax free 1040ez For income tax purposes, your employee's wages each payday are $107. Turbotax free 1040ez 65 ($100 + the $7. Turbotax free 1040ez 65 you will pay to cover your employee's share of social security and Medicare taxes). Turbotax free 1040ez 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. Turbotax free 1040ez Like most employers, you may owe both the federal unemployment tax (the FUTA tax) and a state unemployment tax. Turbotax free 1040ez Or, you may owe only the FUTA tax or only the state unemployment tax. Turbotax free 1040ez To find out whether you will owe state unemployment tax, contact your state's unemployment tax agency. Turbotax free 1040ez For a list of state unemployment tax agencies, visit the U. Turbotax free 1040ez S. Turbotax free 1040ez Department of Labor's website at www. Turbotax free 1040ez workforcesecurity. Turbotax free 1040ez doleta. Turbotax free 1040ez gov/unemploy/agencies. Turbotax free 1040ez asp. Turbotax free 1040ez You should also find out if you need to pay or collect other state employment taxes or carry workers' compensation insurance. Turbotax free 1040ez The FUTA tax is 6. Turbotax free 1040ez 0% of your employee's FUTA wages. Turbotax free 1040ez However, you may be able to take a credit of up to 5. Turbotax free 1040ez 4% against the FUTA tax, resulting in a net tax rate of 0. Turbotax free 1040ez 6%. Turbotax free 1040ez Your credit for 2014 is limited unless you pay all the required contributions for 2014 to your state unemployment fund by April 15, 2015. Turbotax free 1040ez 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. Turbotax free 1040ez (If you did not pay all the required contributions for 2013 by April 15, 2014, see Credit for 2013, later. Turbotax free 1040ez ) Note. Turbotax free 1040ez   If a due date falls on a Saturday, Sunday, or legal holiday, payments are considered timely if made by the next business day. Turbotax free 1040ez The term “legal holiday” means any legal holiday in the District of Columbia. Turbotax free 1040ez Pay the tax as discussed under How Do You Make Tax Payments, later. Turbotax free 1040ez Also, see What Forms Must You File, later. Turbotax free 1040ez Note. Turbotax free 1040ez   The 5. Turbotax free 1040ez 4% credit is reduced for wages paid in a credit reduction state. Turbotax free 1040ez See the Instructions for Schedule H (Form 1040). Turbotax free 1040ez Do not withhold the FUTA tax from your employee's wages. Turbotax free 1040ez You must pay it from your own funds. Turbotax free 1040ez FUTA wages. Turbotax free 1040ez   Figure the FUTA tax on the FUTA wages you pay. Turbotax free 1040ez 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. Turbotax free 1040ez (A calendar quarter is January through March, April through June, July through September, or October through December. Turbotax free 1040ez ) 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. Turbotax free 1040ez For an explanation of cash wages, see the discussion on Social security and Medicare wages under Social Security and Medicare Taxes, earlier. Turbotax free 1040ez Wages not counted. Turbotax free 1040ez   Do not count wages you pay to any of the following individuals as FUTA wages. Turbotax free 1040ez Your spouse. Turbotax free 1040ez Your child who is under the age of 21. Turbotax free 1040ez Your parent. Turbotax free 1040ez Credit for 2013. Turbotax free 1040ez   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. Turbotax free 1040ez Use Worksheet A to figure the credit for late contributions if you paid any state contributions after the due date for filing  Form 1040. Turbotax free 1040ez Worksheet A. Turbotax free 1040ez Worksheet for Credit for Late Contributions 1. Turbotax free 1040ez Enter the amount from Schedule H, line 22   2. Turbotax free 1040ez Enter the amount from Schedule H, line 19   3. Turbotax free 1040ez Subtract line 2 from line 1. Turbotax free 1040ez If zero or less, enter -0-   4. Turbotax free 1040ez Enter total contributions paid to the state(s) after the Form 1040 due date   5. Turbotax free 1040ez Enter the smaller of line 3 or line 4   6. Turbotax free 1040ez Multiply line 5 by . Turbotax free 1040ez 90 (90%)   7. Turbotax free 1040ez Add lines 2 and 6   8. Turbotax free 1040ez 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. Turbotax free 1040ez You should withhold federal income tax only if your household employee asks you to withhold it and you agree. Turbotax free 1040ez The employee must give you a completed Form W-4, Employee's Withholding Allowance Certificate. Turbotax free 1040ez If you and your employee have agreed to withholding, either of you may end the agreement by letting the other know in writing. Turbotax free 1040ez If you agree to withhold federal income tax, you are responsible for paying it to the IRS. Turbotax free 1040ez Pay the tax as discussed under How Do You Make Tax Payments, later. Turbotax free 1040ez Also, see What Forms Must You File, later. Turbotax free 1040ez Use the income tax withholding tables in Publication 15 (Circular E) to find out how much to withhold. Turbotax free 1040ez Figure federal income tax withholding on wages before you deduct any amounts for other withheld taxes. Turbotax free 1040ez Withhold federal income tax from each payment of wages based on the filing status and exemptions shown on your employee's Form W-4. Turbotax free 1040ez Publication 15 (Circular E) contains detailed instructions. Turbotax free 1040ez Wages. Turbotax free 1040ez   Figure federal income tax withholding on both cash and noncash wages you pay. Turbotax free 1040ez Measure wages you pay in any form other than cash by the fair market value of the noncash item. Turbotax free 1040ez   Do not count as wages any of the following items. Turbotax free 1040ez Meals provided to your employee at your home for your convenience. Turbotax free 1040ez Lodging provided to your employee at your home for your convenience and as a condition of employment. Turbotax free 1040ez 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). Turbotax free 1040ez 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. Turbotax free 1040ez See Publication 15-B for special requirements for this exclusion. Turbotax free 1040ez 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. Turbotax free 1040ez   See Publication 15 (Circular E) for more information on cash and noncash wages. Turbotax free 1040ez Paying tax without withholding. Turbotax free 1040ez   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. Turbotax free 1040ez It also must be included in social security and Medicare wages and in federal unemployment (FUTA) wages. Turbotax free 1040ez 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. Turbotax free 1040ez This credit reduces their tax or allows them to receive a payment from the IRS. Turbotax free 1040ez You also may have to give your employee a notice about the EIC. Turbotax free 1040ez Notice about the EIC. Turbotax free 1040ez   Copy B of the 2014 Form W-2 has a statement about the EIC on the back. Turbotax free 1040ez 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. Turbotax free 1040ez   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. Turbotax free 1040ez 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. Turbotax free 1040ez Notice 797, Possible Federal Tax Refund Due to the Earned Income Credit (EIC). Turbotax free 1040ez Your own written statement with the same wording as in Notice 797. Turbotax free 1040ez 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. Turbotax free 1040ez 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. Turbotax free 1040ez If Form W-2 is not required, you must notify the employee by February 7, 2015. Turbotax free 1040ez   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. Turbotax free 1040ez 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). Turbotax free 1040ez 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. Turbotax free 1040ez Use Schedule H to figure your total household employment taxes (social security, Medicare, FUTA, and withheld federal income taxes). Turbotax free 1040ez Add these household employment taxes to your income tax. Turbotax free 1040ez Pay the amount due by April 15, 2015. Turbotax free 1040ez For more information about using Schedule H, see Schedule H under What Forms Must You File, later. Turbotax free 1040ez 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. Turbotax free 1040ez You can pay the additional tax in any of the following ways. Turbotax free 1040ez Ask your employer to withhold more federal income tax from your wages in 2014. Turbotax free 1040ez Ask the payer of your pension or annuity to withhold more federal income tax from your benefits. Turbotax free 1040ez Make estimated tax payments for 2014 to the IRS. Turbotax free 1040ez Increase your payments if you already make estimated tax payments. Turbotax free 1040ez You may be subject to the estimated tax underpayment penalty if you did not pay enough income and household employment taxes during the year. Turbotax free 1040ez (See Publication 505, Tax Withholding and Estimated Tax, for information about the underpayment penalty. Turbotax free 1040ez ) However, you will not be subject to the penalty if both of the following situations apply to you. Turbotax free 1040ez You will not have federal income tax withheld from wages, pensions, or any other payments you receive. Turbotax free 1040ez Your income taxes, excluding your household employment taxes, would not be enough to require payment of estimated taxes. Turbotax free 1040ez Asking for more federal income tax withholding. Turbotax free 1040ez   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. Turbotax free 1040ez Complete it as before, but show the additional amount you want withheld from each paycheck on line 6. Turbotax free 1040ez   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). Turbotax free 1040ez Complete it as before, but show the additional amount you want withheld from each benefit payment on line 3. Turbotax free 1040ez   See Publication 505 to make sure you will have the right amount withheld. Turbotax free 1040ez 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. Turbotax free 1040ez Paying estimated tax. Turbotax free 1040ez   If you want to make estimated tax payments to cover household employment taxes, get Form 1040-ES, Estimated Tax for Individuals. Turbotax free 1040ez You can use its payment vouchers to make your payments by check or money order. Turbotax free 1040ez You may be able to pay by Electronic Funds Withdrawal (EFW) or credit card. Turbotax free 1040ez For details, see the form instructions and visit IRS. Turbotax free 1040ez gov. Turbotax free 1040ez    You can pay all the employment taxes at once or you can pay them in installments. Turbotax free 1040ez If you have already made estimated tax payments for 2014, you can increase your remaining payments to cover the employment taxes. Turbotax free 1040ez Estimated tax payments for 2014 are due April 15, June 16, and September 15, 2014, and January 15, 2015. Turbotax free 1040ez Payment option for business employers. Turbotax free 1040ez   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. Turbotax free 1040ez 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. Turbotax free 1040ez For information on depositing employment taxes, see Publication 15 (Circular E). Turbotax free 1040ez   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. Turbotax free 1040ez See Business employment tax returns, later. Turbotax free 1040ez    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. Turbotax free 1040ez You cannot deduct the wages and employment taxes paid for your household employees on your Schedule C or F. Turbotax free 1040ez More information. Turbotax free 1040ez   For more information about paying taxes through federal income tax withholding and estimated tax payments, and figuring the estimated tax penalty, see Publication 505. Turbotax free 1040ez 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. Turbotax free 1040ez Social security and Medicare wages. Turbotax free 1040ez FUTA wages. Turbotax free 1040ez Wages from which you withhold federal income tax. Turbotax free 1040ez For information on ordering employment tax forms, see How To Get Tax Help, later. Turbotax free 1040ez Employer identification number (EIN). Turbotax free 1040ez   You must include your employer identification number (EIN) on the forms you file for your household employee. Turbotax free 1040ez An EIN is a nine-digit number issued by the IRS. Turbotax free 1040ez It is not the same as a social security number. Turbotax free 1040ez    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. Turbotax free 1040ez If you already have an EIN, use that number. Turbotax free 1040ez   If you do not have an EIN, you may apply for one online. Turbotax free 1040ez Go to IRS. Turbotax free 1040ez gov and click on the Apply for an EIN Online link under Tools. Turbotax free 1040ez 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. Turbotax free 1040ez Form W-2. Turbotax free 1040ez   File a separate 2014 Form W-2, for each household employee to whom you pay either of the following wages during the year. Turbotax free 1040ez Social security and Medicare wages of $1,900 or more. Turbotax free 1040ez Wages from which you withhold federal income tax. Turbotax free 1040ez You must complete Form W-2 and give Copies B, C, and 2 to your employee by February 2, 2015. Turbotax free 1040ez 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). Turbotax free 1040ez Electronic filing is available to all employers and is free, fast, secure, and offers a later filing deadline. Turbotax free 1040ez Visit the SSA's Employer W-2 Filing Instructions & Information website at www. Turbotax free 1040ez socialsecurity. Turbotax free 1040ez gov/employer for guidelines on filing electronically. Turbotax free 1040ez Employee who leaves during the year. Turbotax free 1040ez   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. Turbotax free 1040ez You do not need to wait until 2015. Turbotax free 1040ez 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. Turbotax free 1040ez Schedule H. Turbotax free 1040ez   Use Schedule H to report household employment taxes if you pay any of the following wages to the employee. Turbotax free 1040ez Social security and Medicare wages of $1,900 or more. Turbotax free 1040ez FUTA wages. Turbotax free 1040ez Wages from which you withhold federal income tax. Turbotax free 1040ez File Schedule H with your 2014 federal income tax return by April 15, 2015. Turbotax free 1040ez If you get an extension to file your return, the extension also will apply to your Schedule H. Turbotax free 1040ez Filing options when no return is required. Turbotax free 1040ez   If you are not required to file a 2014 tax return, you have the following two options. Turbotax free 1040ez You can file Schedule H by itself. Turbotax free 1040ez See the Schedule H instructions for details. Turbotax free 1040ez 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. Turbotax free 1040ez See Business employment tax returns, next. Turbotax free 1040ez   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. Turbotax free 1040ez Business employment tax returns. Turbotax free 1040ez   Do not use Schedule H if you choose to pay the employment taxes for your household employee with business or farm employment taxes. Turbotax free 1040ez (See Payment option for business employers, earlier. Turbotax free 1040ez ) 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. Turbotax free 1040ez Include the FUTA tax for the employee on your Form 940. Turbotax free 1040ez   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. Turbotax free 1040ez   For information on filing Form 941 or Form 944, see Publication 15 (Circular E). Turbotax free 1040ez For information on filing Form 943, see Publication 51 (Circular A), Agricultural Employer's Tax Guide. Turbotax free 1040ez Both of these publications also provide information about filing Form 940. Turbotax free 1040ez 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. Turbotax free 1040ez You must also keep records to support the information you enter on the forms you file. Turbotax free 1040ez If you must file Form W-2, you will need to keep a record of your employee's name, address, and social security number. Turbotax free 1040ez Wage and tax records. Turbotax free 1040ez   On each payday, you should record the date and amounts of all the following items. Turbotax free 1040ez Your employee's cash and noncash wages. Turbotax free 1040ez Any employee social security tax you withhold or agree to pay for your employee. Turbotax free 1040ez Any employee Medicare tax you withhold or agree to pay for your employee. Turbotax free 1040ez Any federal income tax you withhold. Turbotax free 1040ez Any state employment taxes you withhold. Turbotax free 1040ez Employee's social security number. Turbotax free 1040ez   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. Turbotax free 1040ez Social security and Medicare wages of $1,900 or more. Turbotax free 1040ez Wages from which you withhold federal income tax. Turbotax free 1040ez You must ask for your employee's social security number no later than the first day on which you pay the wages. Turbotax free 1040ez You may wish to ask for it when you hire your employee. Turbotax free 1040ez You should ask your employee to show you his or her social security card. Turbotax free 1040ez The employee may show the card if it is available. Turbotax free 1040ez You may, but are not required to, photocopy the card if the employee provides it. Turbotax free 1040ez   An employee who does not have a social security number must apply for one on Form SS-5, Application for a Social Security Card. Turbotax free 1040ez 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. Turbotax free 1040ez    Employees can get Form SS-5 from any Social Security Administration office or by calling 1-800-772-1213. Turbotax free 1040ez    You also can download Form SS-5 from the Social Security Administration website at  www. Turbotax free 1040ez socialsecurity. Turbotax free 1040ez gov/online/ss-5. Turbotax free 1040ez pdf. Turbotax free 1040ez How long to keep records. Turbotax free 1040ez   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. Turbotax free 1040ez 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. Turbotax free 1040ez To qualify, you must pay these expenses so you can work or look for work. Turbotax free 1040ez 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. Turbotax free 1040ez For information about the credit, see Publication 503, Child and Dependent Care Expenses. Turbotax free 1040ez 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. Turbotax free 1040ez Schedule H attached to another form. Turbotax free 1040ez    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. Turbotax free 1040ez S. Turbotax free 1040ez Individual Income Tax Return, and attach a corrected Schedule H. Turbotax free 1040ez If you filed Formulario 1040-PR, file a Form 1040X and attach a corrected Anexo H-PR. Turbotax free 1040ez If you discover an error on a Schedule H that you previously filed with Form 1041, U. Turbotax free 1040ez S. Turbotax free 1040ez Income Tax Return for Estates and Trusts, file an “amended” Form 1041 and attach a corrected Schedule H. Turbotax free 1040ez You discovered (that is, ascertained) the error when you had enough information to be able to correct the error. Turbotax free 1040ez 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. Turbotax free 1040ez 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. Turbotax free 1040ez Schedule H filed by itself. Turbotax free 1040ez   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. Turbotax free 1040ez You discovered (that is, ascertained) the error when you had enough information to be able to correct the error. Turbotax free 1040ez 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. Turbotax free 1040ez In addition, explain the reason for your correction and the date the error was discovered in a statement attached to the corrected Schedule H. Turbotax free 1040ez 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. Turbotax free 1040ez (See Overpayment of tax, later. Turbotax free 1040ez ) When to file. Turbotax free 1040ez   File a corrected Schedule H when you discover an error on a previously filed Schedule H. Turbotax free 1040ez 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. Turbotax free 1040ez 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). Turbotax free 1040ez Underpayment of tax. Turbotax free 1040ez   You must pay any underpayment of social security and Medicare taxes by the time you file the corrected Schedule H. Turbotax free 1040ez 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. Turbotax free 1040ez However, underreported FUTA taxes will be subject to interest. Turbotax free 1040ez Overpayment of tax. Turbotax free 1040ez    You may either adjust or claim a refund of an overpayment of social security and Medicare taxes on a previously filed Schedule H. Turbotax free 1040ez 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. Turbotax free 1040ez Adjust the overpayment. Turbotax free 1040ez   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. Turbotax free 1040ez 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). Turbotax free 1040ez If you adjust your return, you will not receive interest on your overpayment. Turbotax free 1040ez 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. Turbotax free 1040ez You may not adjust your return to correct overpayments of FUTA tax. Turbotax free 1040ez Claim for refund process. Turbotax free 1040ez   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. Turbotax free 1040ez 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). Turbotax free 1040ez 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. Turbotax free 1040ez Required repayment or consent. Turbotax free 1040ez   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. Turbotax free 1040ez You reimburse your employees by applying the overwithheld amount against taxes to be withheld on future wages. Turbotax free 1040ez 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. Turbotax free 1040ez 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. Turbotax free 1040ez Filing required Forms W-2 or Forms W-2c. Turbotax free 1040ez   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. Turbotax free 1040ez Additional Medicare Tax. Turbotax free 1040ez   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. Turbotax free 1040ez An administrative error occurs if the amount you entered on Schedule H is not the amount you actually withheld. Turbotax free 1040ez 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. Turbotax free 1040ez   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. Turbotax free 1040ez 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. Turbotax free 1040ez Additional information. Turbotax free 1040ez   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)). Turbotax free 1040ez Also, visit IRS. Turbotax free 1040ez gov. Turbotax free 1040ez 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. Turbotax free 1040ez Free help with your tax return. Turbotax free 1040ez   You can get free help preparing your return nationwide from IRS-certified volunteers. Turbotax free 1040ez The Volunteer Income Tax Assistance (VITA) program helps low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers. Turbotax free 1040ez The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Turbotax free 1040ez 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. Turbotax free 1040ez In addition, some VITA and TCE sites provide taxpayers the opportunity to prepare their own return with help from an IRS-certified volunteer. Turbotax free 1040ez To find the nearest VITA or TCE site, you can use the VITA Locator Tool on IRS. Turbotax free 1040ez gov, download the IRS2Go app, or call 1-800-906-9887. Turbotax free 1040ez   As part of the TCE program, AARP offers the Tax-Aide counseling program. Turbotax free 1040ez To find the nearest AARP Tax-Aide site, visit AARP's website at www. Turbotax free 1040ez aarp. Turbotax free 1040ez org/money/taxaide or call 1-888-227-7669. Turbotax free 1040ez For more information on these programs, go to IRS. Turbotax free 1040ez gov and enter “VITA” in the search box. Turbotax free 1040ez Internet. Turbotax free 1040ez    IRS. Turbotax free 1040ez gov and IRS2Go are ready when you are —24 hours a day, 7 days a week. Turbotax free 1040ez Download the free IRS2Go app from the iTunes app store or from Google Play. Turbotax free 1040ez 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. Turbotax free 1040ez Check the status of your 2013 refund with the Where's My Refund? application on IRS. Turbotax free 1040ez gov or download the IRS2Go app and select the Refund Status option. Turbotax free 1040ez The IRS issues more than 9 out of 10 refunds in less than 21 days. Turbotax free 1040ez 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. Turbotax free 1040ez You will also be given a personalized refund date as soon as the IRS processes your tax return and approves your refund. Turbotax free 1040ez The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Turbotax free 1040ez Use the Interactive Tax Assistant (ITA) to research your tax questions. Turbotax free 1040ez No need to wait on the phone or stand in line. Turbotax free 1040ez 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. Turbotax free 1040ez When you reach the response screen, you can print the entire interview and the final response for your records. Turbotax free 1040ez New subject areas are added on a regular basis. Turbotax free 1040ez  Answers not provided through ITA may be found in Tax Trails, one of the Tax Topics on IRS. Turbotax free 1040ez gov which contain general individual and business tax information or by searching the IRS Tax Map, which includes an international subject index. Turbotax free 1040ez You can use the IRS Tax Map, to search publications and instructions by topic or keyword. Turbotax free 1040ez The IRS Tax Map integrates forms and publications into one research tool and provides single-point access to tax law information by subject. Turbotax free 1040ez 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. Turbotax free 1040ez 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. Turbotax free 1040ez You can also ask the IRS to mail a return or an account transcript to you. Turbotax free 1040ez Only the mail option is available by choosing the Tax Records option on the IRS2Go app by selecting Mail Transcript on IRS. Turbotax free 1040ez gov or by calling 1-800-908-9946. Turbotax free 1040ez Tax return and tax account transcripts are generally available for the current year and the past three years. Turbotax free 1040ez Determine if you are eligible for the EITC and estimate the amount of the credit with the Earned Income Tax Credit (EITC) Assistant. Turbotax free 1040ez Visit Understanding Your IRS Notice or Letter to get answers to questions about a notice or letter you received from the IRS. Turbotax free 1040ez 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. Turbotax free 1040ez Check the status of your amended return using Where's My Amended Return? Go to IRS. Turbotax free 1040ez gov and enter Where's My Amended Return? in the search box. Turbotax free 1040ez You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. Turbotax free 1040ez It can take up to 3 weeks from the date you mailed it to show up in our system. Turbotax free 1040ez Make a payment using one of several safe and convenient electronic payment options available on IRS. Turbotax free 1040ez gov. Turbotax free 1040ez Select the Payment tab on the front page of IRS. Turbotax free 1040ez gov for more information. Turbotax free 1040ez Determine if you are eligible and apply for an online payment agreement, if you owe more tax than you can pay today. Turbotax free 1040ez Figure your income tax withholding with the IRS Withholding Calculator on IRS. Turbotax free 1040ez gov. Turbotax free 1040ez 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. Turbotax free 1040ez Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. Turbotax free 1040ez gov. Turbotax free 1040ez Request an Electronic Filing PIN by going to IRS. Turbotax free 1040ez gov and entering Electronic Filing PIN in the search box. Turbotax free 1040ez Download forms, instructions and publications, including accessible versions for people with disabilities. Turbotax free 1040ez Locate the nearest Taxpayer Assistance Center (TAC) using the Office Locator tool on IRS. Turbotax free 1040ez gov, or choose the Contact Us option on the IRS2Go app and search Local Offices. Turbotax free 1040ez An employee can answer questions about your tax account or help you set up a payment plan. Turbotax free 1040ez Before you visit, check the Office Locator on IRS. Turbotax free 1040ez gov, or Local Offices under Contact Us on IRS2Go to confirm the address, phone number, days and hours of operation, and the services provided. Turbotax free 1040ez If you have a special need, such as a disability, you can request an appointment. Turbotax free 1040ez Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. Turbotax free 1040ez Apply for an Employer Identification Number (EIN). Turbotax free 1040ez Go to IRS. Turbotax free 1040ez gov and enter Apply for an EIN in the search box. Turbotax free 1040ez Read the Internal Revenue Code, regulations, or other official guidance. Turbotax free 1040ez Read Internal Revenue Bulletins. Turbotax free 1040ez Sign up to receive local and national tax news and more by email. Turbotax free 1040ez Just click on “subscriptions” above the search box on IRS. Turbotax free 1040ez gov and choose from a variety of options. Turbotax free 1040ez Phone. Turbotax free 1040ez    You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. Turbotax free 1040ez Download the free IRS2Go app from the iTunes app store or from Google Play. Turbotax free 1040ez Call to locate the nearest volunteer help site, 1-800-906-9887 or you can use the VITA Locator Tool on IRS. Turbotax free 1040ez gov, or download the IRS2Go app. Turbotax free 1040ez 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. Turbotax free 1040ez The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Turbotax free 1040ez Most VITA and TCE sites offer free electronic filing. Turbotax free 1040ez Some VITA and TCE sites provide IRS-certified volunteers who can help prepare your tax return. Turbotax free 1040ez Through the TCE program, AARP offers the Tax-Aide counseling program; call 1-888-227-7669 to find the nearest Tax-Aide location. Turbotax free 1040ez 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. Turbotax free 1040ez 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. Turbotax free 1040ez The IRS issues more than 9 out of 10 refunds in less than 21 days. Turbotax free 1040ez Where's My Refund? will give you a personalized refund date as soon as the IRS processes your tax return and approves your refund. Turbotax free 1040ez 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. Turbotax free 1040ez The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Turbotax free 1040ez Note, the above information is for our automated hotline. Turbotax free 1040ez 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. Turbotax free 1040ez Call the Amended Return Hotline, 1-866-464-2050, to check the status of your amended return. Turbotax free 1040ez You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. Turbotax free 1040ez It can take up to 3 weeks from the date you mailed it to show up in our system. Turbotax free 1040ez 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). Turbotax free 1040ez You should receive your order within 10 business days. Turbotax free 1040ez Call TeleTax, 1-800-829-4477, to listen to pre-recorded messages covering general and business tax information. Turbotax free 1040ez 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. Turbotax free 1040ez Call using TTY/TDD equipment, 1-800-829-4059 to ask tax questions or order forms and publications. Turbotax free 1040ez The TTY/TDD telephone number is for people who are deaf, hard of hearing, or have a speech disability. Turbotax free 1040ez These individuals can also contact the IRS through relay services such as the Federal Relay Service. Turbotax free 1040ez Walk-in. Turbotax free 1040ez   You can find a selection of forms, publications and services — in-person. Turbotax free 1040ez Products. Turbotax free 1040ez You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Turbotax free 1040ez Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. Turbotax free 1040ez Services. Turbotax free 1040ez You can walk in to your local TAC for face-to-face tax help. Turbotax free 1040ez An employee can answer questions about your tax account or help you set up a payment plan. Turbotax free 1040ez Before visiting, use the Office Locator tool on IRS. Turbotax free 1040ez gov, or choose the Contact Us option on the IRS2Go app and search Local Offices for days and hours of operation, and services provided. Turbotax free 1040ez Mail. Turbotax free 1040ez   You can send your order for forms, instructions, and publications to the address below. Turbotax free 1040ez You should receive a response within 10 business days after your request is received. Turbotax free 1040ez Internal Revenue Service 1201 N. Turbotax free 1040ez Mitsubishi Motorway Bloomington, IL 61705-6613    The Taxpayer Advocate Service Is Here to Help You. Turbotax free 1040ez The Taxpayer Advocate Service (TAS) is your voice at the IRS. Turbotax free 1040ez Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. Turbotax free 1040ez   What can TAS do for you? We can offer you free help with IRS problems that you can't resolve on your own. Turbotax free 1040ez 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. Turbotax free 1040ez You face (or your business is facing) an immediate threat of adverse action. Turbotax free 1040ez You've tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised. Turbotax free 1040ez   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. Turbotax free 1040ez Here's why we can help: TAS is an independent organization within the IRS. Turbotax free 1040ez Our advocates know how to work with the IRS. Turbotax free 1040ez Our services are free and tailored to meet your needs. Turbotax free 1040ez We have offices in every state, the District of Columbia, and Puerto Rico. Turbotax free 1040ez   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. Turbotax free 1040ez   How else does TAS help taxpayers?  TAS also works to resolve large-scale, systemic problems that affect many taxpayers. Turbotax free 1040ez If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System. Turbotax free 1040ez 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. Turbotax free 1040ez Some clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. Turbotax free 1040ez Visit Taxpayer Advocate or see IRS Publication 4134, Low Income Taxpayer Clinic List. Turbotax free 1040ez Sample W-2 Form This image is too large to be displayed in the current screen. Turbotax free 1040ez Please click the link to view the image. Turbotax free 1040ez 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