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1o40 Ez Form

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1o40 Ez Form

1o40 ez form 3. 1o40 ez form   SIMPLE Plans Table of Contents Topics - This chapter discusses: Useful Items - You may want to see: SIMPLE IRA PlanWho Can Set Up a SIMPLE IRA Plan? Who Can Participate in a SIMPLE IRA Plan? How To Set Up a SIMPLE IRA Plan Notification Requirement Contribution Limits When To Deduct Contributions Where To Deduct Contributions Tax Treatment of Contributions Distributions (Withdrawals) More Information on SIMPLE IRA Plans SIMPLE 401(k) Plan Topics - This chapter discusses: SIMPLE IRA plan SIMPLE 401(k) plan Useful Items - You may want to see: Publications 590 Individual Retirement Arrangements (IRAs) 3998 Choosing A Retirement Solution for Your Small Business 4284 SIMPLE IRA Plan Checklist 4334 SIMPLE IRA Plans for Small Businesses Forms (and Instructions) W-2 Wage and Tax Statement 5304-SIMPLE Savings Incentive Match Plan for Employees of Small Employers (SIMPLE)–Not for Use With a Designated Financial Institution 5305-SIMPLE Savings Incentive Match Plan for Employees of Small Employers (SIMPLE)–for Use With a Designated Financial Institution 8880 Credit for Qualified Retirement Savings Contributions 8881 Credit for Small Employer Pension Plan Startup Costs A savings incentive match plan for employees (SIMPLE plan) is a written arrangement that provides you and your employees with a simplified way to make contributions to provide retirement income. 1o40 ez form Under a SIMPLE plan, employees can choose to make salary reduction contributions to the plan rather than receiving these amounts as part of their regular pay. 1o40 ez form In addition, you will contribute matching or nonelective contributions. 1o40 ez form SIMPLE plans can only be maintained on a calendar-year basis. 1o40 ez form A SIMPLE plan can be set up in either of the following ways. 1o40 ez form Using SIMPLE IRAs (SIMPLE IRA plan). 1o40 ez form As part of a 401(k) plan (SIMPLE 401(k) plan). 1o40 ez form Many financial institutions will help you set up a SIMPLE plan. 1o40 ez form SIMPLE IRA Plan A SIMPLE IRA plan is a retirement plan that uses SIMPLE IRAs for each eligible employee. 1o40 ez form Under a SIMPLE IRA plan, a SIMPLE IRA must be set up for each eligible employee. 1o40 ez form For the definition of an eligible employee, see Who Can Participate in a SIMPLE IRA Plan , later. 1o40 ez form Who Can Set Up a SIMPLE IRA Plan? You can set up a SIMPLE IRA plan if you meet both the following requirements. 1o40 ez form You meet the employee limit. 1o40 ez form You do not maintain another qualified plan unless the other plan is for collective bargaining employees. 1o40 ez form Employee limit. 1o40 ez form   You can set up a SIMPLE IRA plan only if you had 100 or fewer employees who received $5,000 or more in compensation from you for the preceding year. 1o40 ez form Under this rule, you must take into account all employees employed at any time during the calendar year regardless of whether they are eligible to participate. 1o40 ez form Employees include self-employed individuals who received earned income and leased employees (defined in chapter 1). 1o40 ez form   Once you set up a SIMPLE IRA plan, you must continue to meet the 100-employee limit each year you maintain the plan. 1o40 ez form Grace period for employers who cease to meet the 100-employee limit. 1o40 ez form   If you maintain the SIMPLE IRA plan for at least 1 year and you cease to meet the 100-employee limit in a later year, you will be treated as meeting it for the 2 calendar years immediately following the calendar year for which you last met it. 1o40 ez form   A different rule applies if you do not meet the 100-employee limit because of an acquisition, disposition, or similar transaction. 1o40 ez form Under this rule, the SIMPLE IRA plan will be treated as meeting the 100-employee limit for the year of the transaction and the 2 following years if both the following conditions are satisfied. 1o40 ez form Coverage under the plan has not significantly changed during the grace period. 1o40 ez form The SIMPLE IRA plan would have continued to qualify after the transaction if you had remained a separate employer. 1o40 ez form    The grace period for acquisitions, dispositions, and similar transactions also applies if, because of these types of transactions, you do not meet the rules explained under Other qualified plan or Who Can Participate in a SIMPLE IRA Plan, below. 1o40 ez form Other qualified plan. 1o40 ez form   The SIMPLE IRA plan generally must be the only retirement plan to which you make contributions, or to which benefits accrue, for service in any year beginning with the year the SIMPLE IRA plan becomes effective. 1o40 ez form Exception. 1o40 ez form   If you maintain a qualified plan for collective bargaining employees, you are permitted to maintain a SIMPLE IRA plan for other employees. 1o40 ez form Who Can Participate in a SIMPLE IRA Plan? Eligible employee. 1o40 ez form   Any employee who received at least $5,000 in compensation during any 2 years preceding the current calendar year and is reasonably expected to receive at least $5,000 during the current calendar year is eligible to participate. 1o40 ez form The term “employee” includes a self-employed individual who received earned income. 1o40 ez form   You can use less restrictive eligibility requirements (but not more restrictive ones) by eliminating or reducing the prior year compensation requirements, the current year compensation requirements, or both. 1o40 ez form For example, you can allow participation for employees who received at least $3,000 in compensation during any preceding calendar year. 1o40 ez form However, you cannot impose any other conditions for participating in a SIMPLE IRA plan. 1o40 ez form Excludable employees. 1o40 ez form   The following employees do not need to be covered under a SIMPLE IRA plan. 1o40 ez form Employees who are covered by a union agreement and whose retirement benefits were bargained for in good faith by the employees' union and you. 1o40 ez form Nonresident alien employees who have received no U. 1o40 ez form S. 1o40 ez form source wages, salaries, or other personal services compensation from you. 1o40 ez form Compensation. 1o40 ez form   Compensation for employees is the total wages, tips, and other compensation from the employer subject to federal income tax withholding and the amounts paid for domestic service in a private home, local college club, or local chapter of a college fraternity or sorority. 1o40 ez form Compensation also includes the employee's salary reduction contributions made under this plan and, if applicable, elective deferrals under a section 401(k) plan, a SARSEP, or a section 403(b) annuity contract and compensation deferred under a section 457 plan required to be reported by the employer on Form W-2. 1o40 ez form If you are self-employed, compensation is your net earnings from self-employment (line 4 of Short Schedule SE or line 6 of Long Schedule SE (Form 1040)) before subtracting any contributions made to the SIMPLE IRA plan for yourself. 1o40 ez form How To Set Up a SIMPLE IRA Plan You can use Form 5304-SIMPLE or Form 5305-SIMPLE to set up a SIMPLE IRA plan. 1o40 ez form Each form is a model savings incentive match plan for employees (SIMPLE) plan document. 1o40 ez form Which form you use depends on whether you select a financial institution or your employees select the institution that will receive the contributions. 1o40 ez form Use Form 5304-SIMPLE if you allow each plan participant to select the financial institution for receiving his or her SIMPLE IRA plan contributions. 1o40 ez form Use Form 5305-SIMPLE if you require that all contributions under the SIMPLE IRA plan be deposited initially at a designated financial institution. 1o40 ez form The SIMPLE IRA plan is adopted when you have completed all appropriate boxes and blanks on the form and you (and the designated financial institution, if any) have signed it. 1o40 ez form Keep the original form. 1o40 ez form Do not file it with the IRS. 1o40 ez form Other uses of the forms. 1o40 ez form   If you set up a SIMPLE IRA plan using Form 5304-SIMPLE or Form 5305-SIMPLE, you can use the form to satisfy other requirements, including the following. 1o40 ez form Meeting employer notification requirements for the SIMPLE IRA plan. 1o40 ez form Form 5304-SIMPLE and Form 5305-SIMPLE contain a Model Notification to Eligible Employees that provides the necessary information to the employee. 1o40 ez form Maintaining the SIMPLE IRA plan records and proving you set up a SIMPLE IRA plan for employees. 1o40 ez form Deadline for setting up a SIMPLE IRA plan. 1o40 ez form   You can set up a SIMPLE IRA plan effective on any date from January 1 through October 1 of a year, provided you did not previously maintain a SIMPLE IRA plan. 1o40 ez form This requirement does not apply if you are a new employer that comes into existence after October 1 of the year the SIMPLE IRA plan is set up and you set up a SIMPLE IRA plan as soon as administratively feasible after your business comes into existence. 1o40 ez form If you previously maintained a SIMPLE IRA plan, you can set up a SIMPLE IRA plan effective only on January 1 of a year. 1o40 ez form A SIMPLE IRA plan cannot have an effective date that is before the date you actually adopt the plan. 1o40 ez form Setting up a SIMPLE IRA. 1o40 ez form   SIMPLE IRAs are the individual retirement accounts or annuities into which the contributions are deposited. 1o40 ez form A SIMPLE IRA must be set up for each eligible employee. 1o40 ez form Forms 5305-S, SIMPLE Individual Retirement Trust Account, and 5305-SA, SIMPLE Individual Retirement Custodial Account, are model trust and custodial account documents the participant and the trustee (or custodian) can use for this purpose. 1o40 ez form   A SIMPLE IRA cannot be a Roth IRA. 1o40 ez form Contributions to a SIMPLE IRA will not affect the amount an individual can contribute to a Roth or traditional IRA. 1o40 ez form Deadline for setting up a SIMPLE IRA. 1o40 ez form   A SIMPLE IRA must be set up for an employee before the first date by which a contribution is required to be deposited into the employee's IRA. 1o40 ez form See Time limits for contributing funds , later, under Contribution Limits. 1o40 ez form Credit for startup costs. 1o40 ez form   You may be able to claim a tax credit for part of the ordinary and necessary costs of starting a SIMPLE IRA plan that first became effective in 2013. 1o40 ez form For more information, see Credit for startup costs under Reminders, earlier. 1o40 ez form Notification Requirement If you adopt a SIMPLE IRA plan, you must notify each employee of the following information before the beginning of the election period. 1o40 ez form The employee's opportunity to make or change a salary reduction choice under a SIMPLE IRA plan. 1o40 ez form Your decision to make either matching contributions or nonelective contributions (discussed later). 1o40 ez form A summary description provided by the financial institution. 1o40 ez form Written notice that his or her balance can be transferred without cost or penalty if they use a designated financial institution. 1o40 ez form Election period. 1o40 ez form   The election period is generally the 60-day period immediately preceding January 1 of a calendar year (November 2 to December 31 of the preceding calendar year). 1o40 ez form However, the dates of this period are modified if you set up a SIMPLE IRA plan in mid-year (for example, on July 1) or if the 60-day period falls before the first day an employee becomes eligible to participate in the SIMPLE IRA plan. 1o40 ez form   A SIMPLE IRA plan can provide longer periods for permitting employees to enter into salary reduction agreements or to modify prior agreements. 1o40 ez form For example, a SIMPLE IRA plan can provide a 90-day election period instead of the 60-day period. 1o40 ez form Similarly, in addition to the 60-day period, a SIMPLE IRA plan can provide quarterly election periods during the 30 days before each calendar quarter, other than the first quarter of each year. 1o40 ez form Contribution Limits Contributions are made up of salary reduction contributions and employer contributions. 1o40 ez form You, as the employer, must make either matching contributions or nonelective contributions, defined later. 1o40 ez form No other contributions can be made to the SIMPLE IRA plan. 1o40 ez form These contributions, which you can deduct, must be made timely. 1o40 ez form See Time limits for contributing funds , later. 1o40 ez form Salary reduction contributions. 1o40 ez form   The amount the employee chooses to have you contribute to a SIMPLE IRA on his or her behalf cannot be more than $12,000 for 2013 and 2014. 1o40 ez form These contributions must be expressed as a percentage of the employee's compensation unless you permit the employee to express them as a specific dollar amount. 1o40 ez form You cannot place restrictions on the contribution amount (such as limiting the contribution percentage), except to comply with the $12,000 limit. 1o40 ez form   If you or an employee participates in any other qualified plan during the year and you or your employee have salary reduction contributions (elective deferrals) under those plans, the salary reduction contributions under a SIMPLE IRA plan also count toward the overall annual limit ($17,500 for 2013 and 2014) on exclusion of salary reduction contributions and other elective deferrals. 1o40 ez form Catch-up contributions. 1o40 ez form   A SIMPLE IRA plan can permit participants who are age 50 or over at the end of the calendar year to also make catch-up contributions. 1o40 ez form The catch-up contribution limit for 2013 and 2014 for SIMPLE IRA plans is $2,500. 1o40 ez form Salary reduction contributions are not treated as catch-up contributions for 2013 or 2014 until they exceed $12,000. 1o40 ez form However, the catch-up contribution a participant can make for a year cannot exceed the lesser of the following amounts. 1o40 ez form The catch-up contribution limit. 1o40 ez form The excess of the participant's compensation over the salary reduction contributions that are not catch-up contributions. 1o40 ez form Employer matching contributions. 1o40 ez form   You are generally required to match each employee's salary reduction contributions on a dollar-for-dollar basis up to 3% of the employee's compensation. 1o40 ez form This requirement does not apply if you make nonelective contributions as discussed later. 1o40 ez form Example. 1o40 ez form In 2013, your employee, John Rose, earned $25,000 and chose to defer 5% of his salary. 1o40 ez form Your net earnings from self-employment are $40,000, and you choose to contribute 10% of your earnings to your SIMPLE IRA. 1o40 ez form You make 3% matching contributions. 1o40 ez form The total contribution you make for John is $2,000, figured as follows. 1o40 ez form Salary reduction contributions ($25,000 × . 1o40 ez form 05) $1,250 Employer matching contribution ($25,000 × . 1o40 ez form 03) 750 Total contributions $2,000     The total contribution you make for yourself is $5,200, figured as follows. 1o40 ez form Salary reduction contributions ($40,000 × . 1o40 ez form 10) $4,000 Employer matching contribution ($40,000 × . 1o40 ez form 03) 1,200 Total contributions $5,200 Lower percentage. 1o40 ez form   If you choose a matching contribution less than 3%, the percentage must be at least 1%. 1o40 ez form You must notify the employees of the lower match within a reasonable period of time before the 60-day election period (discussed earlier) for the calendar year. 1o40 ez form You cannot choose a percentage less than 3% for more than 2 years during the 5-year period that ends with (and includes) the year for which the choice is effective. 1o40 ez form Nonelective contributions. 1o40 ez form   Instead of matching contributions, you can choose to make nonelective contributions of 2% of compensation on behalf of each eligible employee who has at least $5,000 (or some lower amount you select) of compensation from you for the year. 1o40 ez form If you make this choice, you must make nonelective contributions whether or not the employee chooses to make salary reduction contributions. 1o40 ez form Only $255,000 of the employee's compensation can be taken into account to figure the contribution limit in 2013 ($260,000 in 2014). 1o40 ez form   If you choose this 2% contribution formula, you must notify the employees within a reasonable period of time before the 60-day election period (discussed earlier) for the calendar year. 1o40 ez form Example 1. 1o40 ez form In 2013, your employee, Jane Wood, earned $36,000 and chose to have you contribute 10% of her salary. 1o40 ez form Your net earnings from self-employment are $50,000, and you choose to contribute 10% of your earnings to your SIMPLE IRA. 1o40 ez form You make a 2% nonelective contribution. 1o40 ez form Both of you are under age 50. 1o40 ez form The total contribution you make for Jane is $4,320, figured as follows. 1o40 ez form Salary reduction contributions ($36,000 × . 1o40 ez form 10) $3,600 2% nonelective contributions ($36,000 × . 1o40 ez form 02) 720 Total contributions $4,320     The total contribution you make for yourself is $6,000, figured as follows. 1o40 ez form Salary reduction contributions ($50,000 × . 1o40 ez form 10) $5,000 2% nonelective contributions ($50,000 × . 1o40 ez form 02) 1,000 Total contributions $6,000 Example 2. 1o40 ez form Using the same facts as in Example 1, above, the maximum contribution you make for Jane or for yourself if you each earned $75,000 is $13,500, figured as follows. 1o40 ez form Salary reduction contributions (maximum amount allowed) $12,000 2% nonelective contributions ($75,000 × . 1o40 ez form 02) 1,500 Total contributions $13,500 Time limits for contributing funds. 1o40 ez form   You must make the salary reduction contributions to the SIMPLE IRA within 30 days after the end of the month in which the amounts would otherwise have been payable to the employee in cash. 1o40 ez form You must make matching contributions or nonelective contributions by the due date (including extensions) for filing your federal income tax return for the year. 1o40 ez form Certain plans subject to Department of Labor rules may have an earlier due date for salary reduction contributions. 1o40 ez form When To Deduct Contributions You can deduct SIMPLE IRA contributions in the tax year within which the calendar year for which contributions were made ends. 1o40 ez form You can deduct contributions for a particular tax year if they are made for that tax year and are made by the due date (including extensions) of your federal income tax return for that year. 1o40 ez form Example 1. 1o40 ez form Your tax year is the fiscal year ending June 30. 1o40 ez form Contributions under a SIMPLE IRA plan for the calendar year 2013 (including contributions made in 2013 before July 1, 2013) are deductible in the tax year ending June 30, 2014. 1o40 ez form Example 2. 1o40 ez form You are a sole proprietor whose tax year is the calendar year. 1o40 ez form Contributions under a SIMPLE IRA plan for the calendar year 2013 (including contributions made in 2014 by April 15, 2014) are deductible in the 2013 tax year. 1o40 ez form Where To Deduct Contributions Deduct the contributions you make for your common-law employees on your tax return. 1o40 ez form For example, sole proprietors deduct them on Schedule C (Form 1040) or Schedule F (Form 1040); partnerships deduct them on Form 1065; and corporations deduct them on Form 1120 or Form 1120S. 1o40 ez form Sole proprietors and partners deduct contributions for themselves on line 28 of Form 1040. 1o40 ez form (If you are a partner, contributions for yourself are shown on the Schedule K-1 (Form 1065) you receive from the partnership. 1o40 ez form ) Tax Treatment of Contributions You can deduct your contributions and your employees can exclude these contributions from their gross income. 1o40 ez form SIMPLE IRA plan contributions are not subject to federal income tax withholding. 1o40 ez form However, salary reduction contributions are subject to social security, Medicare, and federal unemployment (FUTA) taxes. 1o40 ez form Matching and nonelective contributions are not subject to these taxes. 1o40 ez form Reporting on Form W-2. 1o40 ez form   Do not include SIMPLE IRA plan contributions in the “Wages, tips, other compensation” box of Form W-2. 1o40 ez form You must, however, include them in the “Social security wages” and “Medicare wages and tips” boxes. 1o40 ez form You must also include them in box 12. 1o40 ez form Mark the “Retirement plan” checkbox in box 13. 1o40 ez form For more information, see the Form W-2 instructions. 1o40 ez form Distributions (Withdrawals) Distributions from a SIMPLE IRA are subject to IRA rules and generally are includible in income for the year received. 1o40 ez form Tax-free rollovers can be made from one SIMPLE IRA into another SIMPLE IRA. 1o40 ez form However, a rollover from a SIMPLE IRA to a non-SIMPLE IRA can be made tax free only after a 2-year participation in the SIMPLE IRA plan. 1o40 ez form Generally, you or your employee must begin to receive distributions from a SIMPLE IRA by April 1 of the first year after the calendar year in which you or your employee reaches age 70½. 1o40 ez form Early withdrawals generally are subject to a 10% additional tax. 1o40 ez form However, the additional tax is increased to 25% if funds are withdrawn within 2 years of beginning participation. 1o40 ez form More information. 1o40 ez form   See Publication 590 for information about IRA rules, including those on the tax treatment of distributions, rollovers, required distributions, and income tax withholding. 1o40 ez form More Information on SIMPLE IRA Plans If you need help to set up or maintain a SIMPLE IRA plan, go to the IRS website and search SIMPLE IRA Plan. 1o40 ez form SIMPLE 401(k) Plan You can adopt a SIMPLE plan as part of a 401(k) plan if you meet the 100-employee limit as discussed earlier under SIMPLE IRA Plan. 1o40 ez form A SIMPLE 401(k) plan is a qualified retirement plan and generally must satisfy the rules discussed under Qualification Rules in chapter 4, including the required distribution rules. 1o40 ez form However, a SIMPLE 401(k) plan is not subject to the nondiscrimination and top-heavy rules discussed in chapter 4 if the plan meets the conditions listed below. 1o40 ez form Under the plan, an employee can choose to have you make salary reduction contributions for the year to a trust in an amount expressed as a percentage of the employee's compensation, but not more than $12,000 for 2013 and 2014. 1o40 ez form If permitted under the plan, an employee who is age 50 or over can also make a catch-up contribution of up to $2,500 for 2013 and 2014. 1o40 ez form See Catch-up contributions , earlier under Contribution Limits. 1o40 ez form You must make either: Matching contributions up to 3% of compensation for the year, or Nonelective contributions of 2% of compensation on behalf of each eligible employee who has at least $5,000 of compensation from you for the year. 1o40 ez form No other contributions can be made to the trust. 1o40 ez form No contributions are made, and no benefits accrue, for services during the year under any other qualified retirement plan sponsored by you on behalf of any employee eligible to participate in the SIMPLE 401(k) plan. 1o40 ez form The employee's rights to any contributions are nonforfeitable. 1o40 ez form No more than $255,000 of the employee's compensation can be taken into account in figuring matching contributions and nonelective contributions in 2013 ($260,000 in 2014). 1o40 ez form Compensation is defined earlier in this chapter. 1o40 ez form Employee notification. 1o40 ez form   The notification requirement that applies to SIMPLE IRA plans also applies to SIMPLE 401(k) plans. 1o40 ez form See Notification Requirement in this chapter. 1o40 ez form Credit for startup costs. 1o40 ez form   You may be able to claim a tax credit for part of the ordinary and necessary costs of starting a SIMPLE 401(k) plan that first became effective in 2013. 1o40 ez form For more information, see Credit for startup costs under Reminders, earlier. 1o40 ez form Note on Forms. 1o40 ez form   Please note that Forms 5304-SIMPLE and 5305-SIMPLE can not be used to establish a SIMPLE 401(k) plan. 1o40 ez form To set up a SIMPLE 401(k) plan, see Adopting a Written Plan in chapter 4. 1o40 ez form Prev  Up  Next   Home   More Online Publications
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Tax Relief for Victims of Severe Storms, Flooding, Mudslides and Landslides in West Virginia

Updated 4/20/2012 to include Lincoln and Mingo counties

WVA-2012-2, March 27, 2012

CHARLESTON — Victims of the severe storms, flooding, mudslides and landslides that began on March 15, 2012 in parts of West Virginia may qualify for tax relief from the Internal Revenue Service.

The President has declared Lincoln, Logan and Mingo counties a federal disaster area. Individuals who reside or have a business in this county may qualify for tax relief.

The declaration permits the IRS to postpone certain deadlines for taxpayers who reside or have a business in the disaster area. For instance, certain deadlines falling on or after March 15, and on or before May 31, have been postponed to May 31, 2012. This includes the April 17 deadline for filing 2011 individual income tax returns, making income tax payments and making 2011 contributions to an individual retirement account (IRA).  

In addition, the IRS is waiving the failure-to-deposit penalties for employment and excise tax deposits due on or after March 15, and on or before March 30, as long as the deposits are made by March 30, 2012.

If an affected taxpayer receives a penalty notice from the IRS, the taxpayer should call the telephone number on the notice to have the IRS abate any interest and any late filing or late payment penalties that would otherwise apply. Penalties or interest will be abated only for taxpayers who have an original or extended filing, payment or deposit due date, including an extended filing or payment due date, that falls within the postponement period.

The IRS automatically identifies taxpayers located in the covered disaster area and applies automatic filing and payment relief. But affected taxpayers who reside or have a business located outside the covered disaster area must call the IRS disaster hotline at 866-562-5227 to request this tax relief.

Covered Disaster Area

The counties above constitute a covered disaster area for purposes of Treas. Reg. § 301.7508A-1(d)(2) and are entitled to the relief detailed below.

Affected Taxpayers

Taxpayers considered to be affected taxpayers eligible for the postponement of time to file returns, pay taxes and perform other time-sensitive acts are those taxpayers listed in Treas. Reg. § 301.7508A-1(d)(1), and include individuals who live, and businesses whose principal place of business is located, in the covered disaster area. Taxpayers not in the covered disaster area, but whose records necessary to meet a deadline listed in Treas. Reg. § 301.7508A-1(c) are in the covered disaster area, are also entitled to relief. In addition, all relief workers affiliated with a recognized government or philanthropic organization assisting in the relief activities in the covered disaster area and any individual visiting the covered disaster area who was killed or injured as a result of the disaster are entitled to relief.

Grant of Relief

Under section 7508A, the IRS gives affected taxpayers until May 31 to file most tax returns (including individual, corporate, and estate and trust income tax returns; partnership returns, S corporation returns, and trust returns; estate, gift, and generation-skipping transfer tax returns; and employment and certain excise tax returns), or to make tax payments, including estimated tax payments, that have either an original or extended due date occurring on or after March 15 and on or before May 31.

The IRS also gives affected taxpayers until May 31 to perform other time-sensitive actions described in Treas. Reg. § 301.7508A-1(c)(1) and Rev. Proc. 2007-56, 2007-34 I.R.B. 388 (Aug. 20, 2007), that are due to be performed on or after March 15 and on or before May 31.

This relief also includes the filing of Form 5500 series returns, in the manner described in section 8 of Rev. Proc. 2007-56. The relief described in section 17 of Rev. Proc. 2007-56, pertaining to like-kind exchanges of property, also applies to certain taxpayers who are not otherwise affected taxpayers and may include acts required to be performed before or after the period above.

The postponement of time to file and pay does not apply to information returns in the W-2, 1098, 1099 series, or to Forms 1042-S or 8027. Penalties for failure to timely file information returns can be waived under existing procedures for reasonable cause. Likewise, the postponement does not apply to employment and excise tax deposits. The IRS, however, will abate penalties for failure to make timely employment and excise tax deposits due on or after March 15 and on or before March 30 provided the taxpayer makes these deposits by March 30.

Casualty Losses

Affected taxpayers in a federally declared disaster area have the option of claiming disaster-related casualty losses on their federal income tax return for either this year or last year. Claiming the loss on an original or amended return for last year will get the taxpayer an earlier refund, but waiting to claim the loss on this year’s return could result in a greater tax saving, depending on other income factors.

Individuals may deduct personal property losses that are not covered by insurance or other reimbursements. For details, see Form 4684 and its instructions.

Affected taxpayers claiming the disaster loss on last year’s return should put the Disaster Designation “West Virginia/Severe Storms, Flooding, Mudslides, and Landslides” at the top of the form so that the IRS can expedite the processing of the refund.

Other Relief

The IRS will waive the usual fees and expedite requests for copies of previously filed tax returns for affected taxpayers. Taxpayers should put the assigned Disaster Designation in red ink at the top of Form 4506, Request for Copy of Tax Return, or Form 4506-T, Request for Transcript of Tax Return, as appropriate, and submit it to the IRS.

Affected taxpayers who are contacted by the IRS on a collection or examination matter should explain how the disaster impacts them so that the IRS can provide appropriate consideration to their case.

Taxpayers may download forms and publications from the official IRS website, irs.gov, or order them by calling 800-TAX-FORM (800-829-3676). The IRS toll-free number for general tax questions is 800-829-1040.

Related Information

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The 1o40 Ez Form

1o40 ez form 4. 1o40 ez form   Retirement Savings Contributions Credit (Saver's Credit) Table of Contents What's New Introduction Full-time student. 1o40 ez form Adjusted gross income. 1o40 ez form Distributions received by spouse. 1o40 ez form Testing period. 1o40 ez form What's New Modified AGI limit for retirement savings contributions credit increased. 1o40 ez form  For 2013, you may be able to claim the retirement savings contributions credit if your modified AGI is not more than: $59,000 if your filing status is married filing jointly, $44,250 if your filing status is head of household, or $29,500 if your filing status is single, married filing separately, or qualifying widow(er). 1o40 ez form Introduction You may be able to take a tax credit if you make eligible contributions (defined later) to a qualified retirement plan, an eligible deferred compensation plan, or an individual retirement arrangement (IRA). 1o40 ez form You may be able to take a credit of up to $1,000 (up to $2,000 if filing jointly). 1o40 ez form This credit could reduce the federal income tax you pay dollar for dollar. 1o40 ez form    Can you claim the credit?   If you make eligible contributions to a qualified retirement plan, an eligible deferred compensation plan, or an IRA, you can claim the credit if all of the following apply. 1o40 ez form You were born before January 2, 1996. 1o40 ez form You are not a full-time student (explained next). 1o40 ez form No one else, such as your parent(s), claims an exemption for you on their tax return. 1o40 ez form Your adjusted gross income (defined below) is not more than: $59,000 if your filing status is married filing jointly, $44,250 if your filing status is head of household, or $29,500 if your filing status is single, married filing separately, or qualifying widow(er). 1o40 ez form Full-time student. 1o40 ez form   You are a full-time student if, during some part of each of 5 calendar months (not necessarily consecutive) during the calendar year, you are either: A full-time student at a school that has a regular teaching staff, course of study, and regularly enrolled body of students in attendance, or A student taking a full-time, on-farm training course given by either a school that has a regular teaching staff, course of study, and regularly enrolled body of students in attendance, or a state, county, or local government. 1o40 ez form You are a full-time student if you are enrolled for the number of hours or courses the school considers to be full time. 1o40 ez form Adjusted gross income. 1o40 ez form   This is generally the amount on line 38 of your 2013 Form 1040; line 22 of your 2013 Form 1040A; or line 37 of your 2013 Form 1040NR. 1o40 ez form However, you must add to that amount any exclusion or deduction claimed for the year for: Foreign earned income, Foreign housing costs, Income for bona fide residents of American Samoa, and Income from Puerto Rico. 1o40 ez form Eligible contributions. 1o40 ez form   These include: Contributions to a traditional or Roth IRA, Salary reduction contributions (elective deferrals, including amounts designated as after-tax Roth contributions) to: A 401(k) plan (including a SIMPLE 401(k)), A section 403(b) annuity, An eligible deferred compensation plan of a state or local government (a governmental 457 plan), A SIMPLE IRA plan, or A salary reduction SEP, and Contributions to a section 501(c)(18) plan. 1o40 ez form They also include voluntary after-tax employee contributions to a tax-qualified retirement plan or section 403(b) annuity. 1o40 ez form For purposes of the credit, an employee contribution will be voluntary as long as it is not required as a condition of employment. 1o40 ez form Reducing eligible contributions. 1o40 ez form   Reduce your eligible contributions (but not below zero) by the total distributions you received during the testing period (defined later) from any IRA, plan, or annuity included above under Eligible contributions. 1o40 ez form Also reduce your eligible contributions by any distribution from a Roth IRA that is not rolled over, even if the distribution is not taxable. 1o40 ez form   Do not reduce your eligible contributions by any of the following. 1o40 ez form The portion of any distribution which is not includible in income because it is a trustee-to-trustee transfer or a rollover distribution. 1o40 ez form Distributions that are taxable as the result of an in-plan rollover to your designated Roth account. 1o40 ez form Any distribution that is a return of a contribution to an IRA (including a Roth IRA) made during the year for which you claim the credit if: The distribution is made before the due date (including extensions) of your tax return for that year, You do not take a deduction for the contribution, and The distribution includes any income attributable to the contribution. 1o40 ez form Loans from a qualified employer plan treated as a distribution. 1o40 ez form Distributions of excess contributions or deferrals (and income attributable to excess contributions and deferrals). 1o40 ez form Distributions of dividends paid on stock held by an employee stock ownership plan under section 404(k). 1o40 ez form Distributions from an eligible retirement plan that are converted or rolled over to a Roth IRA. 1o40 ez form Distributions from a military retirement plan. 1o40 ez form Distributions from an inherited IRA by a nonspousal beneficiary. 1o40 ez form Distributions received by spouse. 1o40 ez form   Any distributions your spouse receives are treated as received by you if you file a joint return with your spouse both for the year of the distribution and for the year for which you claim the credit. 1o40 ez form Testing period. 1o40 ez form   The testing period consists of the year for which you claim the credit, the period after the end of that year and before the due date (including extensions) for filing your return for that year, and the 2 tax years before that year. 1o40 ez form Example. 1o40 ez form You and your spouse filed joint returns in 2011 and 2012, and plan to do so in 2013 and 2014. 1o40 ez form You received a taxable distribution from a qualified plan in 2011 and a taxable distribution from an eligible deferred compensation plan in 2012. 1o40 ez form Your spouse received taxable distributions from a Roth IRA in 2013 and tax-free distributions from a Roth IRA in 2014 before April 15. 1o40 ez form You made eligible contributions to an IRA in 2013 and you otherwise qualify for this credit. 1o40 ez form You must reduce the amount of your qualifying contributions in 2013 by the total of the distributions you received in 2011, 2012, 2013, and 2014. 1o40 ez form Maximum eligible contributions. 1o40 ez form   After your contributions are reduced, the maximum annual contribution on which you can base the credit is $2,000 per person. 1o40 ez form Effect on other credits. 1o40 ez form   The amount of this credit will not change the amount of your refundable tax credits. 1o40 ez form A refundable tax credit, such as the earned income credit or the refundable amount of your child tax credit, is an amount that you would receive as a refund even if you did not otherwise owe any taxes. 1o40 ez form Maximum credit. 1o40 ez form   This is a nonrefundable credit. 1o40 ez form The amount of the credit in any year cannot be more than the amount of tax that you would otherwise pay (not counting any refundable credits) in any year. 1o40 ez form If your tax liability is reduced to zero because of other nonrefundable credits, such as the credit for child and dependent care expenses, then you will not be entitled to this credit. 1o40 ez form How to figure and report the credit. 1o40 ez form   The amount of the credit you can get is based on the contributions you make and your credit rate. 1o40 ez form Your credit rate can be as low as 10% or as high as 50%. 1o40 ez form Your credit rate depends on your income and your filing status. 1o40 ez form See Form 8880 to determine your credit rate. 1o40 ez form   The maximum contribution taken into account is $2,000 per person. 1o40 ez form On a joint return, up to $2,000 is taken into account for each spouse. 1o40 ez form   Figure the credit on Form 8880. 1o40 ez form Report the credit on line 50 of your Form 1040; line 32 of your Form 1040A; or line 47 of your Form 1040NR and attach Form 8880 to your return. 1o40 ez form Prev  Up  Next   Home   More Online Publications