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

Www Myfreetaxes Com Tampa

Free File GovTurbotax 2010How Do I File An Amended Tax Return For 2011Taxslayer 2012Www Irs GovNeed File 2007 TaxesFederal 1040ez Forms And Instructions 2013Tax 2012How To File Taxes If UnemployedTaxes H&r Block OnlineHelp Filing 1040xHrblock Free FileFederal Tax AmendmentFree Tax Filing For 2010Tax For Military Active Duty1040nr Tax CalculatorFree Tax FilingH&r Block Free Military TaxesTurbotax 1040nrIrs Forms20112012 Form 1040ezWhere Can I File My 2012 Taxes OnlineAmend Taxes For 20101040 FormIrs Gov Efile1040 Ez 2011 Form1040nr Ez InstructionsHow To Fill Out A 1040xTax Return Amendment1040ez Form 2014760 State Tax Form 2013How To Do A Amended Tax ReturnIrs Free File Fillable FormsOnline Tax Calculator1040ez Instructions 2014Irs GovE File 2012 Tax ReturnFiling Form 1040x ElectronicallyIllinois 1040xHow To File 1040ez Online

Www Myfreetaxes Com Tampa

Www myfreetaxes com tampa Publication 972 - Introductory Material Table of Contents Future Developments Reminder IntroductionOrdering forms and publications. Www myfreetaxes com tampa Tax questions. Www myfreetaxes com tampa Future Developments For the latest information about developments related to Publication 972, such as legislation enacted after it was published, go to www. Www myfreetaxes com tampa irs. Www myfreetaxes com tampa gov/pub972. Www myfreetaxes com tampa Reminder Photographs of missing children. Www myfreetaxes com tampa  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Www myfreetaxes com tampa Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. Www myfreetaxes com tampa You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. Www myfreetaxes com tampa Introduction The purpose of this publication is: To figure the child tax credit you claim on Form 1040, line 51; Form 1040A, line 33; or Form 1040NR, line 48; and To figure the amount of earned income you enter on line 4a of Schedule 8812 (Form 1040A or 1040), Child Tax Credit. Www myfreetaxes com tampa This publication is intended primarily for individuals sent here by the instructions to Forms 1040, 1040A, or 1040NR, or Schedule 8812. Www myfreetaxes com tampa Even if you were not sent here by the instructions to one of the forms or the schedule, you can still choose to use this publication to figure your credit. Www myfreetaxes com tampa However, most individuals can use a simpler worksheet in their tax form instructions. Www myfreetaxes com tampa If you were sent here from your Form 1040, Form 1040A, or Form 1040NR instructions. Www myfreetaxes com tampa   Complete the Child Tax Credit Worksheet , later in this publication. Www myfreetaxes com tampa If you were sent here from your Schedule 8812 instructions. Www myfreetaxes com tampa   Complete the 1040 and 1040NR Filers — Earned Income Worksheet , later in this publication. Www myfreetaxes com tampa If you have not read your Form 1040, Form 1040A, or Form 1040NR instructions. Www myfreetaxes com tampa   Read the explanation of who must use this publication next. Www myfreetaxes com tampa If you find that you are not required to use this publication to figure your child tax credit, you can use the simpler worksheet in the Form 1040, Form 1040A, or Form 1040NR instructions to figure your credit. Www myfreetaxes com tampa Who must use this publication. Www myfreetaxes com tampa   If you answer “Yes” to either of the following questions, you must use this publication to figure your child tax credit. Www myfreetaxes com tampa Are you excluding income from Puerto Rico or filing any of the following forms? Form 2555 or 2555-EZ (relating to foreign earned income). Www myfreetaxes com tampa Form 4563 (exclusion of income for residents of American Samoa). Www myfreetaxes com tampa Are you claiming any of the following credits? Mortgage interest credit, Form 8396. Www myfreetaxes com tampa Adoption credit, Form 8839. Www myfreetaxes com tampa Residential energy efficient property credit, Form 5695, Part I. Www myfreetaxes com tampa District of Columbia first-time homebuyer credit, Form 8859. Www myfreetaxes com tampa Comments and suggestions. Www myfreetaxes com tampa   We welcome your comments about this publication and your suggestions for future editions. Www myfreetaxes com tampa   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. Www myfreetaxes com tampa NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Www myfreetaxes com tampa Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Www myfreetaxes com tampa   You can send your comments from www. Www myfreetaxes com tampa irs. Www myfreetaxes com tampa gov/formspubs/. Www myfreetaxes com tampa Click on “More Information” and then on “Comment on Tax Forms and Publications. Www myfreetaxes com tampa ”   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. Www myfreetaxes com tampa Ordering forms and publications. Www myfreetaxes com tampa   Visit www. Www myfreetaxes com tampa irs. Www myfreetaxes com tampa gov/formspubs/ to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. Www myfreetaxes com tampa Internal Revenue Service 1201 N. Www myfreetaxes com tampa Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. Www myfreetaxes com tampa   If you have a tax question, check the information available on IRS. Www myfreetaxes com tampa gov or call 1-800-829-1040. Www myfreetaxes com tampa We cannot answer tax questions sent to either of the above addresses. Www myfreetaxes com tampa Prev  Up  Next   Home   More Online Publications
Print - Click this link to Print this page

SOI Tax Stats - Historical Data Tables

Return to the Tax Stats home page

All Historical tables are available in Microsoft Excel file format. 

Excel Viewer


Tables by Number:

1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12 (expanded version), 13 (expanded version), 14a, 14b, 15, 16 (expanded version), 17, 18, 19 , 20, 21, 22a, 22b, 23, 24.

 


Table Descriptions

Table 1.  Individual Income Tax Returns: Selected Income and Tax Items.

Table 2.  Individual Income and Tax Data, by State and Size of Adjusted Gross Income.

Table 3.  Number of Individual Income Tax Returns, Income, Exemptions and Deductions, Tax, and Average Tax, by Size of Adjusted Gross Income.

Table 4.  Comparison of Personal Income in the National Income and Product Accounts (NIPA) with Adjusted Gross Income (AGI).  (Discontinued)

Table 5.  Personal Income and Total Adjusted Gross Income Based on Individual Income Tax Returns per National Income and Product Accounts (NIPA).  (Discontinued)

Table 6.  Total Adjusted Gross Income Estimated from National Income and Product Accounts (NIPA) and as Reported on Individual Income Tax Returns per SOI.  (Discontinued)

Table 7.  Standard, Itemized, and Total Deductions Reported on Individual Income Tax Returns.

Table 8.  Personal Income per National Income and Product Accounts (NIPA), and Taxable Income and Individual Income Tax per SOI.

Table 9.  Number of Individual Income Tax Returns, by Type of Tax Settlement.

Table 10.  Nonfarm Sole Proprietorship Returns: Selected Income Statement Items for Specified Income.

Table 11.  Partnership Returns: Selected Balance Sheet and Income Statement Items for Specified Income Years.

Table 12.  Number of Business Income Tax Returns, by Size of Business for Income Years, 1990–2009. Expanded Version.

Table 13.  Corporation Income Tax Returns: Balance Sheet, Income Statement, and Tax Items for Income Years, 1990–2009. Expanded Version.

Table 14a.  Corporation Income Tax Returns: Selected Balance Sheet, Income Statement, and Tax Items, by Standard Industrial Classification (SIC) Industrial Division.

Table 14b.  Corporation Income Tax Returns: Selected Balance Sheet, Income Statement, and Tax Items, by North American Industry Classification System (NAICS) Industrial Sector.

Table 15.  Corporation Profits Before Tax per National Income and Product Accounts (NIPA) and per SOI, and Income Subject to Tax per SOI, Income Years 1960–2007.

Table 16.  Nonprofit Charitable Organization and Domestic Private Foundation Information Returns, and Exempt Organization Business Income Tax Returns: Selected Financial Data. Expanded Version.

Table 17.  Taxable Estate Tax Returns as a Percentage of Adult Deaths, Selected Years of Death, 1934–2008.

Table 18.  Treasury Department Gross Tax Collections: Amount Collected by Quarter and Fiscal Year. (Discontinued)

Table 19.  Internal Revenue Tax Refunds: Amount Refunded by Quarter and Fiscal Year. (Discontinued)

Table 20.  Federal Excise Taxes Reported to or Collected by the Internal Revenue Service, Alcohol and Tobacco Tax and Trade Bureau, and Customs Service, by Type of Excise Tax.

Table 21.  Selected Returns and Forms Filed or To Be Filed by Type During Specified Calendar Years.

Table 22a.  Taxpayers Receiving Assistance.

Table 22b.  IRS Assistance for Individual Taxpayers.

Appendix to Selected Historical and Other Data Tables

Table 23.  U.S. Individual Income Tax: Personal Exemptions and Lowest and Highest Bracket Tax Rates, and Tax Base for Regular Tax.

Table 24.  U.S. Corporation Income Tax: Tax Brackets and Rates.

 


Return to the Tax Stats home page

Page Last Reviewed or Updated: 19-Jun-2013

The Www Myfreetaxes Com Tampa

Www myfreetaxes com tampa 2. Www myfreetaxes com tampa   Simplified Employee Pensions (SEPs) Table of Contents Topics - This chapter discusses: Useful Items - You may want to see: Setting Up a SEPWhen not to use Form 5305-SEP. Www myfreetaxes com tampa How Much Can I Contribute?Contribution Limits Deducting ContributionsDeduction Limit for Contributions for Participants Deduction Limit for Self-Employed Individuals Carryover of Excess SEP Contributions When To Deduct Contributions Where To Deduct Contributions Salary Reduction Simplified Employee Pensions (SARSEPs)SARSEP ADP test. Www myfreetaxes com tampa Deferral percentage. Www myfreetaxes com tampa Employee compensation. Www myfreetaxes com tampa Compensation of self-employed individuals. Www myfreetaxes com tampa Choice not to treat deferrals as compensation. Www myfreetaxes com tampa Limit on Elective Deferrals Tax Treatment of Deferrals Distributions (Withdrawals) Additional TaxesEffects on employee. Www myfreetaxes com tampa Reporting and Disclosure Requirements Topics - This chapter discusses: Setting up a SEP How much can I contribute Deducting contributions Salary reduction simplified employee pensions (SARSEPs) Distributions (withdrawals) Additional taxes Reporting and disclosure requirements Useful Items - You may want to see: Publication 590 Individual Retirement Arrangements (IRAs) 3998 Choosing A Retirement Solution for Your Small Business 4285 SEP Checklist 4286 SARSEP Checklist 4333 SEP Retirement Plans for Small Businesses 4336 SARSEP for Small Businesses 4407 SARSEP—Key Issues and Assistance Forms (and Instructions) W-2 Wage and Tax Statement 1040 U. Www myfreetaxes com tampa S. Www myfreetaxes com tampa Individual Income Tax Return 5305-SEP Simplified Employee Pension—Individual Retirement Accounts Contribution Agreement 5305A-SEP Salary Reduction Simplified Employee Pension—Individual Retirement Accounts Contribution Agreement 8880 Credit for Qualified Retirement Savings Contributions 8881 Credit for Small Employer Pension Plan Startup Costs A SEP is a written plan that allows you to make contributions toward your own retirement and your employees' retirement without getting involved in a more complex qualified plan. Www myfreetaxes com tampa Under a SEP, you make contributions to a traditional individual retirement arrangement (called a SEP-IRA) set up by or for each eligible employee. Www myfreetaxes com tampa A SEP-IRA is owned and controlled by the employee, and you make contributions to the financial institution where the SEP-IRA is maintained. Www myfreetaxes com tampa SEP-IRAs are set up for, at a minimum, each eligible employee (defined below). Www myfreetaxes com tampa A SEP-IRA may have to be set up for a leased employee (defined in chapter 1), but does not need to be set up for excludable employees (defined later). Www myfreetaxes com tampa Eligible employee. Www myfreetaxes com tampa   An eligible employee is an individual who meets all the following requirements. Www myfreetaxes com tampa Has reached age 21. Www myfreetaxes com tampa Has worked for you in at least 3 of the last 5 years. Www myfreetaxes com tampa Has received at least $550 in compensation from you in 2013. Www myfreetaxes com tampa This amount remains the same in 2014. Www myfreetaxes com tampa    You can use less restrictive participation requirements than those listed, but not more restrictive ones. Www myfreetaxes com tampa Excludable employees. Www myfreetaxes com tampa   The following employees can be excluded from coverage under a SEP. Www myfreetaxes com tampa Employees covered by a union agreement and whose retirement benefits were bargained for in good faith by the employees' union and you. Www myfreetaxes com tampa Nonresident alien employees who have received no U. Www myfreetaxes com tampa S. Www myfreetaxes com tampa source wages, salaries, or other personal services compensation from you. Www myfreetaxes com tampa For more information about nonresident aliens, see Publication 519, U. Www myfreetaxes com tampa S. Www myfreetaxes com tampa Tax Guide for Aliens. Www myfreetaxes com tampa Setting Up a SEP There are three basic steps in setting up a SEP. Www myfreetaxes com tampa You must execute a formal written agreement to provide benefits to all eligible employees. Www myfreetaxes com tampa You must give each eligible employee certain information about the SEP. Www myfreetaxes com tampa A SEP-IRA must be set up by or for each eligible employee. Www myfreetaxes com tampa Many financial institutions will help you set up a SEP. Www myfreetaxes com tampa Formal written agreement. Www myfreetaxes com tampa   You must execute a formal written agreement to provide benefits to all eligible employees under a SEP. Www myfreetaxes com tampa You can satisfy the written agreement requirement by adopting an IRS model SEP using Form 5305-SEP. Www myfreetaxes com tampa However, see When not to use Form 5305-SEP, below. Www myfreetaxes com tampa   If you adopt an IRS model SEP using Form 5305-SEP, no prior IRS approval or determination letter is required. Www myfreetaxes com tampa Keep the original form. Www myfreetaxes com tampa Do not file it with the IRS. Www myfreetaxes com tampa Also, using Form 5305-SEP will usually relieve you from filing annual retirement plan information returns with the IRS and the Department of Labor. Www myfreetaxes com tampa See the Form 5305-SEP instructions for details. Www myfreetaxes com tampa If you choose not to use Form 5305-SEP, you should seek professional advice in adopting a SEP. Www myfreetaxes com tampa When not to use Form 5305-SEP. Www myfreetaxes com tampa   You cannot use Form 5305-SEP if any of the following apply. Www myfreetaxes com tampa You currently maintain any other qualified retirement plan other than another SEP. Www myfreetaxes com tampa You have any eligible employees for whom IRAs have not been set up. Www myfreetaxes com tampa You use the services of leased employees, who are not your common-law employees (as described in chapter 1). Www myfreetaxes com tampa You are a member of any of the following unless all eligible employees of all the members of these groups, trades, or businesses participate under the SEP. Www myfreetaxes com tampa An affiliated service group described in section 414(m). Www myfreetaxes com tampa A controlled group of corporations described in section 414(b). Www myfreetaxes com tampa Trades or businesses under common control described in section 414(c). Www myfreetaxes com tampa You do not pay the cost of the SEP contributions. Www myfreetaxes com tampa Information you must give to employees. Www myfreetaxes com tampa   You must give each eligible employee a copy of Form 5305-SEP, its instructions, and the other information listed in the Form 5305-SEP instructions. Www myfreetaxes com tampa An IRS model SEP is not considered adopted until you give each employee this information. Www myfreetaxes com tampa Setting up the employee's SEP-IRA. Www myfreetaxes com tampa   A SEP-IRA must be set up by or for each eligible employee. Www myfreetaxes com tampa SEP-IRAs can be set up with banks, insurance companies, or other qualified financial institutions. Www myfreetaxes com tampa You send SEP contributions to the financial institution where the SEP-IRA is maintained. Www myfreetaxes com tampa Deadline for setting up a SEP. Www myfreetaxes com tampa   You can set up a SEP for any year as late as the due date (including extensions) of your income tax return for that year. Www myfreetaxes com tampa Credit for startup costs. Www myfreetaxes com tampa   You may be able to claim a tax credit for part of the ordinary and necessary costs of starting a SEP that first became effective in 2013. Www myfreetaxes com tampa For more information, see Credit for startup costs under Reminders, earlier. Www myfreetaxes com tampa How Much Can I Contribute? The SEP rules permit you to contribute a limited amount of money each year to each employee's SEP-IRA. Www myfreetaxes com tampa If you are self-employed, you can contribute to your own SEP-IRA. Www myfreetaxes com tampa Contributions must be in the form of money (cash, check, or money order). Www myfreetaxes com tampa You cannot contribute property. Www myfreetaxes com tampa However, participants may be able to transfer or roll over certain property from one retirement plan to another. Www myfreetaxes com tampa See Publication 590 for more information about rollovers. Www myfreetaxes com tampa You do not have to make contributions every year. Www myfreetaxes com tampa But if you make contributions, they must be based on a written allocation formula and must not discriminate in favor of highly compensated employees (defined in chapter 1). Www myfreetaxes com tampa When you contribute, you must contribute to the SEP-IRAs of all participants who actually performed personal services during the year for which the contributions are made, including employees who die or terminate employment before the contributions are made. Www myfreetaxes com tampa Contributions are deductible within limits, as discussed later, and generally are not taxable to the plan participants. Www myfreetaxes com tampa A SEP-IRA cannot be a Roth IRA. Www myfreetaxes com tampa Employer contributions to a SEP-IRA will not affect the amount an individual can contribute to a Roth or traditional IRA. Www myfreetaxes com tampa Unlike regular contributions to a traditional IRA, contributions under a SEP can be made to participants over age 70½. Www myfreetaxes com tampa If you are self-employed, you can also make contributions under the SEP for yourself even if you are over 70½. Www myfreetaxes com tampa Participants age 70½ or over must take required minimum distributions. Www myfreetaxes com tampa Time limit for making contributions. Www myfreetaxes com tampa   To deduct contributions for a year, you must make the contributions by the due date (including extensions) of your tax return for the year. Www myfreetaxes com tampa Contribution Limits Contributions you make for 2013 to a common-law employee's SEP-IRA cannot exceed the lesser of 25% of the employee's compensation or $51,000. Www myfreetaxes com tampa Compensation generally does not include your contributions to the SEP. Www myfreetaxes com tampa The SEP plan document will specify how the employer contribution is determined and how it will be allocated to participants. Www myfreetaxes com tampa Example. Www myfreetaxes com tampa Your employee, Mary Plant, earned $21,000 for 2013. Www myfreetaxes com tampa The maximum contribution you can make to her SEP-IRA is $5,250 (25% x $21,000). Www myfreetaxes com tampa Contributions for yourself. Www myfreetaxes com tampa   The annual limits on your contributions to a common-law employee's SEP-IRA also apply to contributions you make to your own SEP-IRA. Www myfreetaxes com tampa However, special rules apply when figuring your maximum deductible contribution. Www myfreetaxes com tampa See Deduction Limit for Self-Employed Individuals , later. Www myfreetaxes com tampa Annual compensation limit. Www myfreetaxes com tampa   You cannot consider the part of an employee's compensation over $255,000 when figuring your contribution limit for that employee. Www myfreetaxes com tampa However, $51,000 is the maximum contribution for an eligible employee. Www myfreetaxes com tampa These limits are $260,000 and $52,000, respectively, in 2014. Www myfreetaxes com tampa Example. Www myfreetaxes com tampa Your employee, Susan Green, earned $210,000 for 2013. Www myfreetaxes com tampa Because of the maximum contribution limit for 2013, you can only contribute $51,000 to her SEP-IRA. Www myfreetaxes com tampa More than one plan. Www myfreetaxes com tampa   If you contribute to a defined contribution plan (defined in chapter 4), annual additions to an account are limited to the lesser of $51,000 or 100% of the participant's compensation. Www myfreetaxes com tampa When you figure this limit, you must add your contributions to all defined contribution plans maintained by you. Www myfreetaxes com tampa Because a SEP is considered a defined contribution plan for this limit, your contributions to a SEP must be added to your contributions to other defined contribution plans you maintain. Www myfreetaxes com tampa Tax treatment of excess contributions. Www myfreetaxes com tampa   Excess contributions are your contributions to an employee's SEP-IRA (or to your own SEP-IRA) for 2013 that exceed the lesser of the following amounts. Www myfreetaxes com tampa 25% of the employee's compensation (or, for you, 20% of your net earnings from self-employment). Www myfreetaxes com tampa $51,000. Www myfreetaxes com tampa Excess contributions are included in the employee's income for the year and are treated as contributions by the employee to his or her SEP-IRA. Www myfreetaxes com tampa For more information on employee tax treatment of excess contributions, see chapter 1 in Publication 590. Www myfreetaxes com tampa Reporting on Form W-2. Www myfreetaxes com tampa   Do not include SEP contributions on your employee's Form W-2 unless contributions were made under a salary reduction arrangement (discussed later). Www myfreetaxes com tampa Deducting Contributions Generally, you can deduct the contributions you make each year to each employee's SEP-IRA. Www myfreetaxes com tampa If you are self-employed, you can deduct the contributions you make each year to your own SEP-IRA. Www myfreetaxes com tampa Deduction Limit for Contributions for Participants The most you can deduct for your contributions to you or your employee's SEP-IRA is the lesser of the following amounts. Www myfreetaxes com tampa Your contributions (including any excess contributions carryover). Www myfreetaxes com tampa 25% of the compensation (limited to $255,000 per participant) paid to the participants during 2013 from the business that has the plan, not to exceed $51,000 per participant. Www myfreetaxes com tampa In 2014, the amounts in (2) above are $260,000 and $52,000, respectively. Www myfreetaxes com tampa Deduction Limit for Self-Employed Individuals If you contribute to your own SEP-IRA, you must make a special computation to figure your maximum deduction for these contributions. Www myfreetaxes com tampa When figuring the deduction for contributions made to your own SEP-IRA, compensation is your net earnings from self-employment (defined in chapter 1), which takes into account both the following deductions. Www myfreetaxes com tampa The deduction for the deductible part of your self-employment tax. Www myfreetaxes com tampa The deduction for contributions to your own SEP-IRA. Www myfreetaxes com tampa The deduction for contributions to your own SEP-IRA and your net earnings depend on each other. Www myfreetaxes com tampa For this reason, you determine the deduction for contributions to your own SEP-IRA indirectly by reducing the contribution rate called for in your plan. Www myfreetaxes com tampa To do this, use the Rate Table for Self-Employed or the Rate Worksheet for Self-Employed, whichever is appropriate for your plan's contribution rate, in chapter 5. Www myfreetaxes com tampa Then figure your maximum deduction by using the Deduction Worksheet for Self-Employed in chapter 5. Www myfreetaxes com tampa Carryover of Excess SEP Contributions If you made SEP contributions that are more than the deduction limit (nondeductible contributions), you can carry over and deduct the difference in later years. Www myfreetaxes com tampa However, the carryover, when combined with the contribution for the later year, is subject to the deduction limit for that year. Www myfreetaxes com tampa If you also contributed to a defined benefit plan or defined contribution plan, see Carryover of Excess Contributions under Employer Deduction in chapter 4 for the carryover limit. Www myfreetaxes com tampa Excise tax. Www myfreetaxes com tampa   If you made nondeductible (excess) contributions to a SEP, you may be subject to a 10% excise tax. Www myfreetaxes com tampa For information about the excise tax, see Excise Tax for Nondeductible (Excess) Contributions under Employer Deduction in chapter 4. Www myfreetaxes com tampa When To Deduct Contributions When you can deduct contributions made for a year depends on the tax year on which the SEP is maintained. Www myfreetaxes com tampa If the SEP is maintained on a calendar year basis, you deduct the yearly contributions on your tax return for the year within which the calendar year ends. Www myfreetaxes com tampa If you file your tax return and maintain the SEP using a fiscal year or short tax year, you deduct contributions made for a year on your tax return for that year. Www myfreetaxes com tampa Example. Www myfreetaxes com tampa You are a fiscal year taxpayer whose tax year ends June 30. Www myfreetaxes com tampa You maintain a SEP on a calendar year basis. Www myfreetaxes com tampa You deduct SEP contributions made for calendar year 2013 on your tax return for your tax year ending June 30, 2014. Www myfreetaxes com tampa Where To Deduct Contributions Deduct the contributions you make for your common-law employees on your tax return. Www myfreetaxes com tampa For example, sole proprietors deduct them on Schedule C (Form 1040) or Schedule F (Form 1040), Profit or Loss From Farming; partnerships deduct them on Form 1065, U. Www myfreetaxes com tampa S. Www myfreetaxes com tampa Return of Partnership Income; and corporations deduct them on Form 1120, U. Www myfreetaxes com tampa S. Www myfreetaxes com tampa Corporation Income Tax Return, or Form 1120S, U. Www myfreetaxes com tampa S. Www myfreetaxes com tampa Income Tax Return for an S Corporation. Www myfreetaxes com tampa Sole proprietors and partners deduct contributions for themselves on line 28 of Form 1040. Www myfreetaxes com tampa (If you are a partner, contributions for yourself are shown on the Schedule K-1 (Form 1065), Partner's Share of Income, Deductions, Credits, etc. Www myfreetaxes com tampa , you receive from the partnership. Www myfreetaxes com tampa ) Remember that sole proprietors and partners can't deduct as a business expense contributions made to a SEP for themselves, only those made for their common-law employees. Www myfreetaxes com tampa Salary Reduction Simplified Employee Pensions (SARSEPs) A SARSEP is a SEP set up before 1997 that includes a salary reduction arrangement. Www myfreetaxes com tampa (See the Caution, next. Www myfreetaxes com tampa ) Under a SARSEP, your employees can choose to have you contribute part of their pay to their SEP-IRAs rather than receive it in cash. Www myfreetaxes com tampa This contribution is called an “elective deferral” because employees choose (elect) to set aside the money, and they defer the tax on the money until it is distributed to them. Www myfreetaxes com tampa You are not allowed to set up a SARSEP after 1996. Www myfreetaxes com tampa However, participants (including employees hired after 1996) in a SARSEP set up before 1997 can continue to have you contribute part of their pay to the plan. Www myfreetaxes com tampa If you are interested in setting up a retirement plan that includes a salary reduction arrangement, see chapter 3. Www myfreetaxes com tampa Who can have a SARSEP?   A SARSEP set up before 1997 is available to you and your eligible employees only if all the following requirements are met. Www myfreetaxes com tampa At least 50% of your employees eligible to participate choose to make elective deferrals. Www myfreetaxes com tampa You have 25 or fewer employees who were eligible to participate in the SEP at any time during the preceding year. Www myfreetaxes com tampa The elective deferrals of your highly compensated employees meet the SARSEP ADP test. Www myfreetaxes com tampa SARSEP ADP test. Www myfreetaxes com tampa   Under the SARSEP ADP test, the amount deferred each year by each eligible highly compensated employee as a percentage of pay (the deferral percentage) cannot be more than 125% of the average deferral percentage (ADP) of all non-highly compensated employees eligible to participate. Www myfreetaxes com tampa A highly compensated employee is defined in chapter 1. Www myfreetaxes com tampa Deferral percentage. Www myfreetaxes com tampa   The deferral percentage for an employee for a year is figured as follows. Www myfreetaxes com tampa   The elective employer contributions (excluding certain catch-up contributions)  paid to the SEP for the employee for the year     The employee's compensation (limited to $255,000 in 2013)   The instructions for Form 5305A-SEP have a worksheet you can use to determine whether the elective deferrals of your highly compensated employees meet the SARSEP ADP test. Www myfreetaxes com tampa Employee compensation. Www myfreetaxes com tampa   For figuring the deferral percentage, compensation is generally the amount you pay to the employee for the year. Www myfreetaxes com tampa Compensation includes the elective deferral and other amounts deferred in certain employee benefit plans. Www myfreetaxes com tampa See Compensation in chapter 1. Www myfreetaxes com tampa Elective deferrals under the SARSEP are included in figuring your employees' deferral percentage even though they are not included in the income of your employees for income tax purposes. Www myfreetaxes com tampa Compensation of self-employed individuals. Www myfreetaxes com tampa   If you are self-employed, compensation is your net earnings from self-employment as defined in chapter 1. Www myfreetaxes com tampa   Compensation does not include tax-free items (or deductions related to them) other than foreign earned income and housing cost amounts. Www myfreetaxes com tampa Choice not to treat deferrals as compensation. Www myfreetaxes com tampa   You can choose not to treat elective deferrals (and other amounts deferred in certain employee benefit plans) for a year as compensation under your SARSEP. Www myfreetaxes com tampa Limit on Elective Deferrals The most a participant can choose to defer for calendar year 2013 is the lesser of the following amounts. Www myfreetaxes com tampa 25% of the participant's compensation (limited to $255,000 of the participant's compensation). Www myfreetaxes com tampa $17,500. Www myfreetaxes com tampa The $17,500 limit applies to the total elective deferrals the employee makes for the year to a SEP and any of the following. Www myfreetaxes com tampa Cash or deferred arrangement (section 401(k) plan). Www myfreetaxes com tampa Salary reduction arrangement under a tax-sheltered annuity plan (section 403(b) plan). Www myfreetaxes com tampa SIMPLE IRA plan. Www myfreetaxes com tampa In 2014, the $255,000 limit increases to $260,000 and the $17,500 limit remains at $17,500. Www myfreetaxes com tampa Catch-up contributions. Www myfreetaxes com tampa   A SARSEP can permit participants who are age 50 or over at the end of the calendar year to also make catch-up contributions. Www myfreetaxes com tampa The catch-up contribution limit for 2013 is $5,500 and remains at $5,500 for 2014. Www myfreetaxes com tampa Elective deferrals are not treated as catch-up contributions for 2013 until they exceed the elective deferral limit (the lesser of 25% of compensation or $17,500), the SARSEP ADP test limit discussed earlier, or the plan limit (if any). Www myfreetaxes com tampa However, the catch-up contribution a participant can make for a year cannot exceed the lesser of the following amounts. Www myfreetaxes com tampa The catch-up contribution limit. Www myfreetaxes com tampa The excess of the participant's compensation over the elective deferrals that are not catch-up contributions. Www myfreetaxes com tampa   Catch-up contributions are not subject to the elective deferral limit (the lesser of 25% of compensation or $17,500 in 2013 and in 2014). Www myfreetaxes com tampa Overall limit on SEP contributions. Www myfreetaxes com tampa   If you also make nonelective contributions to a SEP-IRA, the total of the nonelective and elective contributions to that SEP-IRA cannot exceed the lesser of 25% of the employee's compensation or $51,000 for 2013 ($52,000 for 2014). Www myfreetaxes com tampa The same rule applies to contributions you make to your own SEP-IRA. Www myfreetaxes com tampa See Contribution Limits , earlier. Www myfreetaxes com tampa Figuring the elective deferral. Www myfreetaxes com tampa   For figuring the 25% limit on elective deferrals, compensation does not include SEP contributions, including elective deferrals or other amounts deferred in certain employee benefit plans. Www myfreetaxes com tampa Tax Treatment of Deferrals Elective deferrals that are not more than the limits discussed earlier under Limit on Elective Deferrals are excluded from your employees' wages subject to federal income tax in the year of deferral. Www myfreetaxes com tampa However, these deferrals are included in wages for social security, Medicare, and federal unemployment (FUTA) tax. Www myfreetaxes com tampa Excess deferrals. Www myfreetaxes com tampa   For 2013, excess deferrals are the elective deferrals for the year that are more than the $17,500 limit discussed earlier. Www myfreetaxes com tampa For a participant who is eligible to make catch-up contributions, excess deferrals are the elective deferrals that are more than $23,000. Www myfreetaxes com tampa The treatment of excess deferrals made under a SARSEP is similar to the treatment of excess deferrals made under a qualified plan. Www myfreetaxes com tampa See Treatment of Excess Deferrals under Elective Deferrals (401(k) Plans) in chapter 4. Www myfreetaxes com tampa Excess SEP contributions. Www myfreetaxes com tampa   Excess SEP contributions are elective deferrals of highly compensated employees that are more than the amount permitted under the SARSEP ADP test. Www myfreetaxes com tampa You must notify your highly compensated employees within 2½ months after the end of the plan year of their excess SEP contributions. Www myfreetaxes com tampa If you do not notify them within this time period, you must pay a 10% tax on the excess. Www myfreetaxes com tampa For an explanation of the notification requirements, see Rev. Www myfreetaxes com tampa Proc. Www myfreetaxes com tampa 91-44, 1991-2 C. Www myfreetaxes com tampa B. Www myfreetaxes com tampa 733. Www myfreetaxes com tampa If you adopted a SARSEP using Form 5305A-SEP, the notification requirements are explained in the instructions for that form. Www myfreetaxes com tampa Reporting on Form W-2. Www myfreetaxes com tampa   Do not include elective deferrals in the “Wages, tips, other compensation” box of Form W-2. Www myfreetaxes com tampa You must, however, include them in the “Social security wages” and “Medicare wages and tips” boxes. Www myfreetaxes com tampa You must also include them in box 12. Www myfreetaxes com tampa Mark the “Retirement plan” checkbox in box 13. Www myfreetaxes com tampa For more information, see the Form W-2 instructions. Www myfreetaxes com tampa Distributions (Withdrawals) As an employer, you cannot prohibit distributions from a SEP-IRA. Www myfreetaxes com tampa Also, you cannot make your contributions on the condition that any part of them must be kept in the account after you have made your contributions to the employee's accounts. Www myfreetaxes com tampa Distributions are subject to IRA rules. Www myfreetaxes com tampa Generally, you or your employee must begin to receive distributions from a SEP-IRA by April 1 of the first year after the calendar year in which you or your employee reaches age 70½. Www myfreetaxes com tampa For more information about IRA rules, including the tax treatment of distributions, rollovers, required distributions, and income tax withholding, see Publication 590. Www myfreetaxes com tampa Additional Taxes The tax advantages of using SEP-IRAs for retirement savings can be offset by additional taxes that may be imposed for all the following actions. Www myfreetaxes com tampa Making excess contributions. Www myfreetaxes com tampa Making early withdrawals. Www myfreetaxes com tampa Not making required withdrawals. Www myfreetaxes com tampa For information about these taxes, see chapter 1 in Publication 590. Www myfreetaxes com tampa Also, a SEP-IRA may be disqualified, or an excise tax may apply, if the account is involved in a prohibited transaction, discussed next. Www myfreetaxes com tampa Prohibited transaction. Www myfreetaxes com tampa   If an employee improperly uses his or her SEP-IRA, such as by borrowing money from it, the employee has engaged in a prohibited transaction. Www myfreetaxes com tampa In that case, the SEP-IRA will no longer qualify as an IRA. Www myfreetaxes com tampa For a list of prohibited transactions, see Prohibited Transactions in chapter 4. Www myfreetaxes com tampa Effects on employee. Www myfreetaxes com tampa   If a SEP-IRA is disqualified because of a prohibited transaction, the assets in the account will be treated as having been distributed to the employee on the first day of the year in which the transaction occurred. Www myfreetaxes com tampa The employee must include in income the fair market value of the assets (on the first day of the year) that is more than any cost basis in the account. Www myfreetaxes com tampa Also, the employee may have to pay the additional tax for making early withdrawals. Www myfreetaxes com tampa Reporting and Disclosure Requirements If you set up a SEP using Form 5305-SEP, you must give your eligible employees certain information about the SEP when you set it up. Www myfreetaxes com tampa See Setting Up a SEP , earlier. Www myfreetaxes com tampa Also, you must give your eligible employees a statement each year showing any contributions to their SEP-IRAs. Www myfreetaxes com tampa You must also give them notice of any excess contributions. Www myfreetaxes com tampa For details about other information you must give them, see the instructions for Form 5305-SEP or Form 5305A-SEP (for a salary reduction SEP). Www myfreetaxes com tampa Even if you did not use Form 5305-SEP or Form 5305A-SEP to set up your SEP, you must give your employees information similar to that described above. Www myfreetaxes com tampa For more information, see the instructions for either Form 5305-SEP or Form 5305A-SEP. Www myfreetaxes com tampa Prev  Up  Next   Home   More Online Publications