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Can 1040x Be Filed Electronically

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Can 1040x Be Filed Electronically

Can 1040x be filed electronically 21. Can 1040x be filed electronically   Medical and Dental Expenses Table of Contents What's New Introduction Useful Items - You may want to see: What Are Medical Expenses? What Expenses Can You Include This Year?Community property states. Can 1040x be filed electronically How Much of the Expenses Can You Deduct? Whose Medical Expenses Can You Include?Yourself Spouse Dependent Decedent What Medical Expenses Are Includible?Insurance Premiums Meals and Lodging Transportation Disabled Dependent Care Expenses How Do You Treat Reimbursements?Insurance Reimbursement Damages for Personal Injuries How Do You Figure and Report the Deduction on Your Tax Return?What Tax Form Do You Use? Impairment-Related Work Expenses Health Insurance Costs for Self-Employed Persons What's New Medical and dental expenses. Can 1040x be filed electronically  Beginning January 1, 2013, you can deduct only the part of your medical and dental expenses that exceed 10% of your adjusted gross income (AGI) (7. Can 1040x be filed electronically 5% if either you or your spouse is age 65 or older). Can 1040x be filed electronically Standard mileage rate. Can 1040x be filed electronically  The standard mileage rate allowed for operating expenses for a car when you use it for medical reasons is 24 cents per mile. Can 1040x be filed electronically See Transportation under What Medical Expenses Are Includible. Can 1040x be filed electronically Introduction This chapter will help you determine the following. Can 1040x be filed electronically What medical expenses are. Can 1040x be filed electronically What expenses you can include this year. Can 1040x be filed electronically How much of the expenses you can deduct. Can 1040x be filed electronically Whose medical expenses you can include. Can 1040x be filed electronically What medical expenses are includible. Can 1040x be filed electronically How to treat reimbursements. Can 1040x be filed electronically How to report the deduction on your tax return. Can 1040x be filed electronically How to report impairment-related work expenses. Can 1040x be filed electronically How to report health insurance costs if you are self-employed. Can 1040x be filed electronically Useful Items - You may want to see: Publications 502 Medical and Dental Expenses 969 Health Savings Accounts and Other Tax-Favored Health Plans Form (and Instructions) Schedule A (Form 1040) Itemized Deductions What Are Medical Expenses? Medical expenses are the costs of diagnosis, cure, mitigation, treatment, or prevention of disease, and the costs for treatments affecting any part or function of the body. Can 1040x be filed electronically These expenses include payments for legal medical services rendered by physicians, surgeons, dentists, and other medical practitioners. Can 1040x be filed electronically They include the costs of equipment, supplies, and diagnostic devices needed for these purposes. Can 1040x be filed electronically Medical care expenses must be primarily to alleviate or prevent a physical or mental defect or illness. Can 1040x be filed electronically They do not include expenses that are merely beneficial to general health, such as vitamins or a vacation. Can 1040x be filed electronically Medical expenses include the premiums you pay for insurance that covers the expenses of medical care, and the amounts you pay for transportation to get medical care. Can 1040x be filed electronically Medical expenses also include amounts paid for qualified long-term care services and limited amounts paid for any qualified long-term care insurance contract. Can 1040x be filed electronically What Expenses Can You Include This Year? You can include only the medical and dental expenses you paid this year, regardless of when the services were provided. Can 1040x be filed electronically If you pay medical expenses by check, the day you mail or deliver the check generally is the date of payment. Can 1040x be filed electronically If you use a “pay-by-phone” or “online” account to pay your medical expenses, the date reported on the statement of the financial institution showing when payment was made is the date of payment. Can 1040x be filed electronically If you use a credit card, include medical expenses you charge to your credit card in the year the charge is made, not when you actually pay the amount charged. Can 1040x be filed electronically Separate returns. Can 1040x be filed electronically   If you and your spouse live in a noncommunity property state and file separate returns, each of you can include only the medical expenses each actually paid. Can 1040x be filed electronically Any medical expenses paid out of a joint checking account in which you and your spouse have the same interest are considered to have been paid equally by each of you, unless you can show otherwise. Can 1040x be filed electronically Community property states. Can 1040x be filed electronically   If you and your spouse live in a community property state and file separate returns, or are registered domestic partners in Nevada, Washington, or California, any medical expenses paid out of community funds are divided equally. Can 1040x be filed electronically Each of you should include half the expenses. Can 1040x be filed electronically If medical expenses are paid out of the separate funds of one individual, only the individual who paid the medical expenses can include them. Can 1040x be filed electronically If you live in a community property state, and are not filing a joint return, see Publication 555, Community Property. Can 1040x be filed electronically How Much of the Expenses Can You Deduct? Generally, you can deduct on Schedule A (Form 1040) only the amount of your medical and dental expenses that is more than 10% of your AGI (7. Can 1040x be filed electronically 5% of your AGI if either you or your spouse is age 65 or older)(Form 1040, line 38). Can 1040x be filed electronically Example. Can 1040x be filed electronically You are unmarried and under age 65 and your AGI is $40,000, 10% of which is $4,000. Can 1040x be filed electronically You paid medical expenses of $2,500. Can 1040x be filed electronically You cannot deduct any of your medical expenses because they are not more than 10% of your AGI. Can 1040x be filed electronically Whose Medical Expenses Can You Include? You can generally include medical expenses you pay for yourself, as well as those you pay for someone who was your spouse or your dependent either when the services were provided or when you paid for them. Can 1040x be filed electronically There are different rules for decedents and for individuals who are the subject of multiple support agreements. Can 1040x be filed electronically See Support claimed under a multiple support agreement , later. Can 1040x be filed electronically Yourself You can include medical expenses you paid for yourself. Can 1040x be filed electronically Spouse You can include medical expenses you paid for your spouse. Can 1040x be filed electronically To include these expenses, you must have been married either at the time your spouse received the medical services or at the time you paid the medical expenses. Can 1040x be filed electronically Example 1. Can 1040x be filed electronically Mary received medical treatment before she married Bill. Can 1040x be filed electronically Bill paid for the treatment after they married. Can 1040x be filed electronically Bill can include these expenses in figuring his medical expense deduction even if Bill and Mary file separate returns. Can 1040x be filed electronically If Mary had paid the expenses, Bill could not include Mary's expenses in his separate return. Can 1040x be filed electronically Mary would include the amounts she paid during the year in her separate return. Can 1040x be filed electronically If they filed a joint return, the medical expenses both paid during the year would be used to figure their medical expense deduction. Can 1040x be filed electronically Example 2. Can 1040x be filed electronically This year, John paid medical expenses for his wife Louise, who died last year. Can 1040x be filed electronically John married Belle this year and they file a joint return. Can 1040x be filed electronically Because John was married to Louise when she received the medical services, he can include those expenses in figuring his medical expense deduction for this year. Can 1040x be filed electronically Dependent You can include medical expenses you paid for your dependent. Can 1040x be filed electronically For you to include these expenses, the person must have been your dependent either at the time the medical services were provided or at the time you paid the expenses. Can 1040x be filed electronically A person generally qualifies as your dependent for purposes of the medical expense deduction if both of the following requirements are met. Can 1040x be filed electronically The person was a qualifying child (defined later) or a qualifying relative (defined later), and The person was a U. Can 1040x be filed electronically S. Can 1040x be filed electronically citizen or national, or a resident of the United States, Canada, or Mexico. Can 1040x be filed electronically If your qualifying child was adopted, see Exception for adopted child , next. Can 1040x be filed electronically You can include medical expenses you paid for an individual that would have been your dependent except that: He or she received gross income of $3,900 or more in 2013, He or she filed a joint return for 2013, or You, or your spouse if filing jointly, could be claimed as a dependent on someone else's 2013 return. Can 1040x be filed electronically Exception for adopted child. Can 1040x be filed electronically   If you are a U. Can 1040x be filed electronically S. Can 1040x be filed electronically citizen or U. Can 1040x be filed electronically S. Can 1040x be filed electronically national and your adopted child lived with you as a member of your household for 2013, that child does not have to be a U. Can 1040x be filed electronically S. Can 1040x be filed electronically citizen or national or a resident of the United States, Canada, or Mexico. Can 1040x be filed electronically Qualifying Child A qualifying child is a child who: Is your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, half brother, half sister, or a descendant of any of them (for example, your grandchild, niece, or nephew), Was: Under age 19 at the end of 2013 and younger than you (or your spouse, if filing jointly), Under age 24 at the end of 2013, a full-time student, and younger than you (or your spouse, if filing jointly), or Any age and permanently and totally disabled, Lived with you for more than half of 2013, Did not provide over half of his or her own support for 2013, and Did not file a joint return, or, if he or she did, it was only to claim a refund. Can 1040x be filed electronically Adopted child. Can 1040x be filed electronically   A legally adopted child is treated as your own child. Can 1040x be filed electronically This includes a child lawfully placed with you for legal adoption. Can 1040x be filed electronically   You can include medical expenses that you paid for a child before adoption if the child qualified as your dependent when the medical services were provided or when the expenses were paid. Can 1040x be filed electronically   If you pay back an adoption agency or other persons for medical expenses they paid under an agreement with you, you are treated as having paid those expenses provided you clearly substantiate that the payment is directly attributable to the medical care of the child. Can 1040x be filed electronically   But if you pay the agency or other person for medical care that was provided and paid for before adoption negotiations began, you cannot include them as medical expenses. Can 1040x be filed electronically    You may be able to take an adoption credit for other expenses related to an adoption. Can 1040x be filed electronically See the Instructions for Form 8839, Qualified Adoption Expenses, for more information. Can 1040x be filed electronically Child of divorced or separated parents. Can 1040x be filed electronically   For purposes of the medical and dental expenses deduction, a child of divorced or separated parents can be treated as a dependent of both parents. Can 1040x be filed electronically Each parent can include the medical expenses he or she pays for the child, even if the other parent claims the child's dependency exemption, if: The child is in the custody of one or both parents for more than half the year, The child receives over half of his or her support during the year from his or her parents, and The child's parents: Are divorced or legally separated under a decree of divorce or separate maintenance, Are separated under a written separation agreement, or Live apart at all times during the last 6 months of the year. Can 1040x be filed electronically This does not apply if the child's exemption is being claimed under a multiple support agreement (discussed later). Can 1040x be filed electronically Qualifying Relative A qualifying relative is a person: Who is your: Son, daughter, stepchild, foster child, or a descendant of any of them (for example, your grandchild), Brother, sister, half brother, half sister, or a son or daughter of either of them, Father, mother, or an ancestor or sibling of either of them (for example, your grandmother, grandfather, aunt, or uncle), Stepbrother, stepsister, stepfather, stepmother, son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law, or Any other person (other than your spouse) who lived with you all year as a member of your household if your relationship did not violate local law, Who was not a qualifying child (see Qualifying Child earlier) of any other person for 2013, and For whom you provided over half of the support in 2013. Can 1040x be filed electronically But see Child of divorced or separated parents , earlier, and Support claimed under a multiple support agreement, next. Can 1040x be filed electronically Support claimed under a multiple support agreement. Can 1040x be filed electronically   If you are considered to have provided more than half of a qualifying relative's support under a multiple support agreement, you can include medical expenses you pay for that person. Can 1040x be filed electronically A multiple support agreement is used when two or more people provide more than half of a person's support, but no one alone provides more than half. Can 1040x be filed electronically   Any medical expenses paid by others who joined you in the agreement cannot be included as medical expenses by anyone. Can 1040x be filed electronically However, you can include the entire unreimbursed amount you paid for medical expenses. Can 1040x be filed electronically Example. Can 1040x be filed electronically You and your three brothers each provide one-fourth of your mother's total support. Can 1040x be filed electronically Under a multiple support agreement, you treat your mother as your dependent. Can 1040x be filed electronically You paid all of her medical expenses. Can 1040x be filed electronically Your brothers reimbursed you for three-fourths of these expenses. Can 1040x be filed electronically In figuring your medical expense deduction, you can include only one-fourth of your mother's medical expenses. Can 1040x be filed electronically Your brothers cannot include any part of the expenses. Can 1040x be filed electronically However, if you and your brothers share the nonmedical support items and you separately pay all of your mother's medical expenses, you can include the unreimbursed amount you paid for her medical expenses in your medical expenses. Can 1040x be filed electronically Decedent Medical expenses paid before death by the decedent are included in figuring any deduction for medical and dental expenses on the decedent's final income tax return. Can 1040x be filed electronically This includes expenses for the decedent's spouse and dependents as well as for the decedent. Can 1040x be filed electronically The survivor or personal representative of a decedent can choose to treat certain expenses paid by the decedent's estate for the decedent's medical care as paid by the decedent at the time the medical services were provided. Can 1040x be filed electronically The expenses must be paid within the 1-year period beginning with the day after the date of death. Can 1040x be filed electronically If you are the survivor or personal representative making this choice, you must attach a statement to the decedent's Form 1040 (or the decedent's amended return, Form 1040X) saying that the expenses have not been and will not be claimed on the estate tax return. Can 1040x be filed electronically Qualified medical expenses paid before death by the decedent are not deductible if paid with a tax-free distribution from any Archer MSA, Medicare Advantage MSA, or health savings account. Can 1040x be filed electronically Amended returns and claims for refund are discussed in chapter 1. Can 1040x be filed electronically What if you pay medical expenses of a deceased spouse or dependent?   If you paid medical expenses for your deceased spouse or dependent, include them as medical expenses on your Form 1040 in the year paid, whether they are paid before or after the decedent's death. Can 1040x be filed electronically The expenses can be included if the person was your spouse or dependent either at the time the medical services were provided or at the time you paid the expenses. Can 1040x be filed electronically What Medical Expenses Are Includible? Use Table 21-1, later, as a guide to determine which medical and dental expenses you can include on Schedule A (Form 1040). Can 1040x be filed electronically This table does not include all possible medical expenses. Can 1040x be filed electronically To determine if an expense not listed can be included in figuring your medical expense deduction, see What Are Medical Expenses , earlier. Can 1040x be filed electronically Insurance Premiums You can include in medical expenses insurance premiums you pay for policies that cover medical care. Can 1040x be filed electronically Medical care policies can provide payment for treatment that includes: Hospitalization, surgical services, X-rays, Prescription drugs and insulin, Dental care, Replacement of lost or damaged contact lenses, and Long-term care (subject to additional limitations). Can 1040x be filed electronically See Qualified Long-Term Care Insurance Contracts in Publication 502. Can 1040x be filed electronically If you have a policy that provides payments for other than medical care, you can include the premiums for the medical care part of the policy if the charge for the medical part is reasonable. Can 1040x be filed electronically The cost of the medical part must be separately stated in the insurance contract or given to you in a separate statement. Can 1040x be filed electronically Note. Can 1040x be filed electronically When figuring the amount of insurance premiums you can include in medical expenses on Schedule A, do not include any health coverage tax credit advance payments shown in box 1 of Form 1099-H, Health Coverage Tax Credit (HCTC) Advance Payments. Can 1040x be filed electronically Also, do not include insurance premiums attributable to a nondependent child under age 27 if your premiums increased as a result of adding this child to your policy. Can 1040x be filed electronically Employer-sponsored health insurance plan. Can 1040x be filed electronically   Do not include in your medical and dental expenses any insurance premiums paid by an employer-sponsored health insurance plan unless the premiums are included in box 1 of your Form W-2. Can 1040x be filed electronically Also, do not include any other medical and dental expenses paid by the plan unless the amount paid is included in box 1 of your Form W-2. Can 1040x be filed electronically Example. Can 1040x be filed electronically You are a federal employee participating in the premium conversion plan of the Federal Employee Health Benefits (FEHB) program. Can 1040x be filed electronically Your share of the FEHB premium is paid by making a pre-tax reduction in your salary. Can 1040x be filed electronically Because you are an employee whose insurance premiums are paid with money that is never included in your gross income, you cannot deduct the premiums paid with that money. Can 1040x be filed electronically Long-term care services. Can 1040x be filed electronically   Contributions made by your employer to provide coverage for qualified long-term care services under a flexible spending or similar arrangement must be included in your income. Can 1040x be filed electronically This amount will be reported as wages in box 1 of your Form W-2. Can 1040x be filed electronically Health reimbursement arrangement (HRA). Can 1040x be filed electronically   If you have medical expenses that are reimbursed by a health reimbursement arrangement, you cannot include those expenses in your medical expenses. Can 1040x be filed electronically This is because an HRA is funded solely by the employer. Can 1040x be filed electronically Retired public safety officers. Can 1040x be filed electronically   If you are a retired public safety officer, do not include as medical expenses any health or long-term care premiums that you elected to have paid with tax-free distributions from your retirement plan. Can 1040x be filed electronically This applies only to distributions that would otherwise be included in income. Can 1040x be filed electronically Medicare A. Can 1040x be filed electronically   If you are covered under social security (or if you are a government employee who paid Medicare tax), you are enrolled in Medicare A. Can 1040x be filed electronically The payroll tax paid for Medicare A is not a medical expense. Can 1040x be filed electronically   If you are not covered under social security (or were not a government employee who paid Medicare tax), you can voluntarily enroll in Medicare A. Can 1040x be filed electronically In this situation you can include the premiums you paid for Medicare A as a medical expense. Can 1040x be filed electronically Medicare B. Can 1040x be filed electronically   Medicare B is supplemental medical insurance. Can 1040x be filed electronically Premiums you pay for Medicare B are a medical expense. Can 1040x be filed electronically Check the information you received from the Social Security Administration to find out your premium. Can 1040x be filed electronically Medicare D. Can 1040x be filed electronically    Medicare D is a voluntary prescription drug insurance program for persons with Medicare A or B. Can 1040x be filed electronically You can include as a medical expense premiums you pay for Medicare D. Can 1040x be filed electronically Prepaid insurance premiums. Can 1040x be filed electronically   Premiums you pay before you are age 65 for insurance for medical care for yourself, your spouse, or your dependents after you reach age 65 are medical care expenses in the year paid if they are: Payable in equal yearly installments, or more often, and Payable for at least 10 years, or until you reach age 65 (but not for less than 5 years). Can 1040x be filed electronically Unused sick leave used to pay premiums. Can 1040x be filed electronically   You must include in gross income cash payments you receive at the time of retirement for unused sick leave. Can 1040x be filed electronically You also must include in gross income the value of unused sick leave that, at your option, your employer applies to the cost of your continuing participation in your employer's health plan after you retire. Can 1040x be filed electronically You can include this cost of continuing participation in the health plan as a medical expense. Can 1040x be filed electronically   If you participate in a health plan where your employer automatically applies the value of unused sick leave to the cost of your continuing participation in the health plan (and you do not have the option to receive cash), do not include the value of the unused sick leave in gross income. Can 1040x be filed electronically You cannot include this cost of continuing participation in that health plan as a medical expense. Can 1040x be filed electronically Table 21-1. Can 1040x be filed electronically Medical and Dental Expenses Checklist. Can 1040x be filed electronically See Publication 502 for more information about these and other expenses. Can 1040x be filed electronically You can include: You cannot include: Bandages Birth control pills prescribed by your doctor Body scan Braille books Breast pump and supplies Capital expenses for equipment or improvements to your home needed for medical care (see the worksheet in Publication 502) Diagnostic devices Expenses of an organ donor Eye surgery—to promote the correct function of the eye Fertility enhancement, certain procedures Guide dogs or other animals aiding the blind, deaf, and disabled Hospital services fees (lab work, therapy, nursing services, surgery, etc. Can 1040x be filed electronically ) Lead-based paint removal Legal abortion Legal operation to prevent having children such as a vasectomy or tubal ligation Long-term care contracts, qualified Meals and lodging provided by a hospital during medical treatment Medical services fees (from doctors, dentists, surgeons, specialists, and other medical practitioners) Medicare Part D premiums Medical and hospital insurance premiums Nursing services Oxygen equipment and oxygen Part of life-care fee paid to retirement home designated for medical care Physical examination Pregnancy test kit Prescription medicines (prescribed by a doctor) and insulin Psychiatric and psychological treatment Social security tax, Medicare tax, FUTA, and state employment tax for worker providing medical care (see Wages for nursing services, below) Special items (artificial limbs, false teeth, eye-glasses, contact lenses, hearing aids, crutches, wheelchair, etc. Can 1040x be filed electronically ) Special education for mentally or physically disabled persons Stop-smoking programs Transportation for needed medical care Treatment at a drug or alcohol center (includes meals and lodging provided by the center) Wages for nursing services Weight-loss, certain expenses for obesity Baby sitting and childcare Bottled water Contributions to Archer MSAs (see Publication 969) Diaper service Expenses for your general health (even if following your doctor's advice) such as— —Health club dues —Household help (even if recommended by a doctor) —Social activities, such as dancing or swimming lessons —Trip for general health improvement Flexible spending account reimbursements for medical expenses (if contributions were on a pre-tax basis) Funeral, burial, or cremation expenses Health savings account payments for medical expenses Illegal operation, treatment, or medicine Life insurance or income protection policies, or policies providing payment for loss of life, limb, sight, etc. Can 1040x be filed electronically Maternity clothes Medical insurance included in a car insurance policy covering all persons injured in or by your car Medicine you buy without a prescription Nursing care for a healthy baby Prescription drugs you brought in (or ordered shipped) from another country, in most cases Nutritional supplements, vitamins, herbal supplements, “natural medicines,” etc. Can 1040x be filed electronically , unless recommended by a medical practitioner as a treatment for a specific medical condition diagnosed by a physician Surgery for purely cosmetic reasons Toothpaste, toiletries, cosmetics, etc. Can 1040x be filed electronically Teeth whitening Weight-loss expenses not for the treatment of obesity or other disease Meals and Lodging You can include in medical expenses the cost of meals and lodging at a hospital or similar institution if a principal reason for being there is to get medical care. Can 1040x be filed electronically See Nursing home , later. Can 1040x be filed electronically You may be able to include in medical expenses the cost of lodging not provided in a hospital or similar institution. Can 1040x be filed electronically You can include the cost of such lodging while away from home if all of the following requirements are met. Can 1040x be filed electronically The lodging is primarily for and essential to medical care. Can 1040x be filed electronically The medical care is provided by a doctor in a licensed hospital or in a medical care facility related to, or the equivalent of, a licensed hospital. Can 1040x be filed electronically The lodging is not lavish or extravagant under the circumstances. Can 1040x be filed electronically There is no significant element of personal pleasure, recreation, or vacation in the travel away from home. Can 1040x be filed electronically The amount you include in medical expenses for lodging cannot be more than $50 for each night for each person. Can 1040x be filed electronically You can include lodging for a person traveling with the person receiving the medical care. Can 1040x be filed electronically For example, if a parent is traveling with a sick child, up to $100 per night can be included as a medical expense for lodging. Can 1040x be filed electronically Meals are not included. Can 1040x be filed electronically Nursing home. Can 1040x be filed electronically   You can include in medical expenses the cost of medical care in a nursing home, home for the aged, or similar institution, for yourself, your spouse, or your dependents. Can 1040x be filed electronically This includes the cost of meals and lodging in the home if a principal reason for being there is to get medical care. Can 1040x be filed electronically   Do not include the cost of meals and lodging if the reason for being in the home is personal. Can 1040x be filed electronically You can, however, include in medical expenses the part of the cost that is for medical or nursing care. Can 1040x be filed electronically Transportation Include in medical expenses amounts paid for transportation primarily for, and essential to, medical care. Can 1040x be filed electronically You can include: Bus, taxi, train, or plane fares, or ambulance service, Transportation expenses of a parent who must go with a child who needs medical care, Transportation expenses of a nurse or other person who can give injections, medications, or other treatment required by a patient who is traveling to get medical care and is unable to travel alone, and Transportation expenses for regular visits to see a mentally ill dependent, if these visits are recommended as a part of treatment. Can 1040x be filed electronically Car expenses. Can 1040x be filed electronically   You can include out-of-pocket expenses, such as the cost of gas and oil, when you use your car for medical reasons. Can 1040x be filed electronically You cannot include depreciation, insurance, general repair, or maintenance expenses. Can 1040x be filed electronically   If you do not want to use your actual expenses for 2013, you can use the standard medical mileage rate of 24 cents per mile. Can 1040x be filed electronically    You can also include parking fees and tolls. Can 1040x be filed electronically You can add these fees and tolls to your medical expenses whether you use actual expenses or use the standard mileage rate. Can 1040x be filed electronically Example. Can 1040x be filed electronically In 2013, Bill Jones drove 2,800 miles for medical reasons. Can 1040x be filed electronically He spent $500 for gas, $30 for oil, and $100 for tolls and parking. Can 1040x be filed electronically He wants to figure the amount he can include in medical expenses both ways to see which gives him the greater deduction. Can 1040x be filed electronically He figures the actual expenses first. Can 1040x be filed electronically He adds the $500 for gas, the $30 for oil, and the $100 for tolls and parking for a total of $630. Can 1040x be filed electronically He then figures the standard mileage amount. Can 1040x be filed electronically He multiplies 2,800 miles by 24 cents a mile for a total of $672. Can 1040x be filed electronically He then adds the $100 tolls and parking for a total of $772. Can 1040x be filed electronically Bill includes the $772 of car expenses with his other medical expenses for the year because the $772 is more than the $630 he figured using actual expenses. Can 1040x be filed electronically Transportation expenses you cannot include. Can 1040x be filed electronically   You cannot include in medical expenses the cost of transportation in the following situations. Can 1040x be filed electronically Going to and from work, even if your condition requires an unusual means of transportation. Can 1040x be filed electronically Travel for purely personal reasons to another city for an operation or other medical care. Can 1040x be filed electronically Travel that is merely for the general improvement of one's health. Can 1040x be filed electronically The costs of operating a specially equipped car for other than medical reasons. Can 1040x be filed electronically Disabled Dependent Care Expenses Some disabled dependent care expenses may qualify as either: Medical expenses, or Work-related expenses for purposes of taking a credit for dependent care. Can 1040x be filed electronically (See chapter 32 and Publication 503, Child and Dependent Care Expenses. Can 1040x be filed electronically ) You can choose to apply them either way as long as you do not use the same expenses to claim both a credit and a medical expense deduction. Can 1040x be filed electronically How Do You Treat Reimbursements? You can include in medical expenses only those amounts paid during the taxable year for which you received no insurance or other reimbursement. Can 1040x be filed electronically Insurance Reimbursement You must reduce your total medical expenses for the year by all reimbursements for medical expenses that you receive from insurance or other sources during the year. Can 1040x be filed electronically This includes payments from Medicare. Can 1040x be filed electronically Even if a policy provides reimbursement for only certain specific medical expenses, you must use amounts you receive from that policy to reduce your total medical expenses, including those it does not reimburse. Can 1040x be filed electronically Example. Can 1040x be filed electronically You have insurance policies that cover your hospital and doctors' bills but not your nursing bills. Can 1040x be filed electronically The insurance you receive for the hospital and doctors' bills is more than their charges. Can 1040x be filed electronically In figuring your medical deduction, you must reduce the total amount you spent for medical care by the total amount of insurance you received, even if the policies do not cover some of your medical expenses. Can 1040x be filed electronically Health reimbursement arrangement (HRA). Can 1040x be filed electronically   A health reimbursement arrangement is an employer-funded plan that reimburses employees for medical care expenses and allows unused amounts to be carried forward. Can 1040x be filed electronically An HRA is funded solely by the employer and the reimbursements for medical expenses, up to a maximum dollar amount for a coverage period, are not included in your income. Can 1040x be filed electronically Other reimbursements. Can 1040x be filed electronically   Generally, you do not reduce medical expenses by payments you receive for: Permanent loss or loss of use of a member or function of the body (loss of limb, sight, hearing, etc. Can 1040x be filed electronically ) or disfigurement to the extent the payment is based on the nature of the injury without regard to the amount of time lost from work, or Loss of earnings. Can 1040x be filed electronically   You must, however, reduce your medical expenses by any part of these payments that is designated for medical costs. Can 1040x be filed electronically See How Do You Figure and Report the Deduction on Your Tax Return , later. Can 1040x be filed electronically   For how to treat damages received for personal injury or sickness, see Damages for Personal Injuries , later. Can 1040x be filed electronically You do not have a medical deduction if you are reimbursed for all of your medical expenses for the year. Can 1040x be filed electronically Excess reimbursement. Can 1040x be filed electronically   If you are reimbursed more than your medical expenses, you may have to include the excess in income. Can 1040x be filed electronically You may want to use Figure 21-A to help you decide if any of your reimbursement is taxable. Can 1040x be filed electronically Premiums paid by you. Can 1040x be filed electronically   If you pay either the entire premium for your medical insurance or all of the costs of a plan similar to medical insurance and your insurance payments or other reimbursements are more than your total medical expenses for the year, you have an excess reimbursement. Can 1040x be filed electronically Generally, you do not include the excess reimbursement in your gross income. Can 1040x be filed electronically Premiums paid by you and your employer. Can 1040x be filed electronically   If both you and your employer contribute to your medical insurance plan and your employer's contributions are not included in your gross income, you must include in your gross income the part of your excess reimbursement that is from your employer's contribution. Can 1040x be filed electronically   See Publication 502 to figure the amount of the excess reimbursement you must include in gross income. Can 1040x be filed electronically Reimbursement in a later year. Can 1040x be filed electronically   If you are reimbursed in a later year for medical expenses you deducted in an earlier year, you generally must report the reimbursement as income up to the amount you previously deducted as medical expenses. Can 1040x be filed electronically   However, do not report as income the amount of reimbursement you received up to the amount of your medical deductions that did not reduce your tax for the earlier year. Can 1040x be filed electronically For more information about the recovery of an amount that you claimed as an itemized deduction in an earlier year, see Itemized Deduction Recoveries in chapter 12. Can 1040x be filed electronically Figure 21-A. Can 1040x be filed electronically Is Your Excess Medical Reimbursement Taxable? Please click here for the text description of the image. Can 1040x be filed electronically Figure 21-A. Can 1040x be filed electronically Is Your Excess Medical Reimbursement Taxable? Medical expenses not deducted. Can 1040x be filed electronically   If you did not deduct a medical expense in the year you paid it because your medical expenses were not more than 10% of your AGI (7. Can 1040x be filed electronically 5% of your AGI if either you or your spouse was age 65 or older), or because you did not itemize deductions, do not include the reimbursement up to the amount of the expense in income. Can 1040x be filed electronically However, if the reimbursement is more than the expense, see Excess reimbursement , earlier. Can 1040x be filed electronically Example. Can 1040x be filed electronically For 2013, you were unmarried and under age 65 and you had medical expenses of $500. Can 1040x be filed electronically You cannot deduct the $500 because it is less than 10% of your AGI. Can 1040x be filed electronically If, in a later year, you are reimbursed for any of the $500 in medical expenses, you do not include the amount reimbursed in your gross income. Can 1040x be filed electronically Damages for Personal Injuries If you receive an amount in settlement of a personal injury suit, part of that award may be for medical expenses that you deducted in an earlier year. Can 1040x be filed electronically If it is, you must include that part in your income in the year you receive it to the extent it reduced your taxable income in the earlier year. Can 1040x be filed electronically See Reimbursement in a Later Year , discussed under How Do You Treat Reimbursements, earlier. Can 1040x be filed electronically Future medical expenses. Can 1040x be filed electronically   If you receive an amount in settlement of a damage suit for personal injuries, part of that award may be for future medical expenses. Can 1040x be filed electronically If it is, you must reduce any future medical expenses for these injuries until the amount you received has been completely used. Can 1040x be filed electronically How Do You Figure and Report the Deduction on Your Tax Return? Once you have determined which medical expenses you can include, you figure and report the deduction on your tax return. Can 1040x be filed electronically What Tax Form Do You Use? You figure your medical expense deduction on Schedule A (Form 1040). Can 1040x be filed electronically You cannot claim medical expenses on Form 1040A or Form 1040EZ. Can 1040x be filed electronically If you need more information on itemized deductions or you are not sure if you can itemize, see chapter 20. Can 1040x be filed electronically Enter the amount you paid for medical and dental expenses on Schedule A (Form 1040). Can 1040x be filed electronically This should be your expenses that were not reimbursed by insurance or any other sources. Can 1040x be filed electronically Generally, you can deduct only the amount of your medical and dental expenses that is more than 10% of your AGI (7. Can 1040x be filed electronically 5% if either you or your spouse was age 65 or older) shown on line 38, Form 1040. Can 1040x be filed electronically Impairment-Related Work Expenses If you are a person with a disability, you can take a business deduction for expenses that are necessary for you to be able to work. Can 1040x be filed electronically If you take a business deduction for impairment-related work expenses, do not take a medical deduction for the same expenses. Can 1040x be filed electronically You have a disability if you have: A physical or mental disability (for example, blindness or deafness) that functionally limits your being employed, or A physical or mental impairment (for example, a sight or hearing impairment) that substantially limits one or more of your major life activities, such as performing manual tasks, walking, speaking, breathing, learning, or working. Can 1040x be filed electronically Impairment-related expenses defined. Can 1040x be filed electronically   Impairment-related expenses are those ordinary and necessary business expenses that are: Necessary for you to do your work satisfactorily, For goods and services not required or used, other than incidentally, in your personal activities, and Not specifically covered under other income tax laws. Can 1040x be filed electronically Where to report. Can 1040x be filed electronically   If you are self-employed, deduct the business expenses on the appropriate form (Schedule C, C-EZ, E, or F) used to report your business income and expenses. Can 1040x be filed electronically   If you are an employee, complete Form 2106, Employee Business Expenses, or Form 2106-EZ, Unreimbursed Employee Business Expenses. Can 1040x be filed electronically Enter on Schedule A (Form 1040), that part of the amount on Form 2106, or Form 2106-EZ, that is related to your impairment. Can 1040x be filed electronically Enter the amount that is unrelated to your impairment also on Schedule A (Form 1040). Can 1040x be filed electronically Your impairment-related work expenses are not subject to the 2%-of-adjusted-gross-income limit that applies to other employee business expenses. Can 1040x be filed electronically Example. Can 1040x be filed electronically You are blind. Can 1040x be filed electronically You must use a reader to do your work. Can 1040x be filed electronically You use the reader both during your regular working hours at your place of work and outside your regular working hours away from your place of work. Can 1040x be filed electronically The reader's services are only for your work. Can 1040x be filed electronically You can deduct your expenses for the reader as business expenses. Can 1040x be filed electronically Health Insurance Costs for Self-Employed Persons If you were self-employed and had a net profit for the year, you may be able to deduct, as an adjustment to income, amounts paid for medical and qualified long-term care insurance on behalf of yourself, your spouse, your dependents, and, your children who were under age 27 at the end of 2013. Can 1040x be filed electronically For this purpose, you were self-employed if you were a general partner (or a limited partner receiving guaranteed payments) or you received wages from an S corporation in which you were more than a 2% shareholder. Can 1040x be filed electronically The insurance plan must be established under your trade or business and the deduction cannot be more than your earned income from that trade or business. Can 1040x be filed electronically You cannot deduct payments for medical insurance for any month in which you were eligible to participate in a health plan subsidized by your employer, your spouse's employer, or, an employer of your dependent or your child under age 27 at the end of 2013. Can 1040x be filed electronically You cannot deduct payments for a qualified long-term care insurance contract for any month in which you were eligible to participate in a long-term care insurance plan subsidized by your employer or your spouse's employer. Can 1040x be filed electronically If you qualify to take the deduction, use the Self-Employed Health Insurance Deduction Worksheet in the Form 1040 instructions to figure the amount you can deduct. Can 1040x be filed electronically But if any of the following applies, do not use that worksheet. Can 1040x be filed electronically You had more than one source of income subject to self-employment tax. Can 1040x be filed electronically You file Form 2555, Foreign Earned Income, or Form 2555-EZ, Foreign Earned Income Exclusion. Can 1040x be filed electronically You are using amounts paid for qualified long-term care insurance to figure the deduction. Can 1040x be filed electronically If you cannot use the worksheet in the Form 1040 instructions, use the worksheet in Publication 535, Business Expenses, to figure your deduction. Can 1040x be filed electronically Note. Can 1040x be filed electronically When figuring the amount you can deduct for insurance premiums, do not include any advance payments shown on Form 1099-H, Health Coverage Tax Credit (HCTC) Advance Payments. Can 1040x be filed electronically If you are claiming the health coverage tax credit, subtract the amount shown on Form 8885, from the total insurance premiums you paid. Can 1040x be filed electronically Do not include amounts paid for health insurance coverage with retirement plan distributions that were tax-free because you are a retired public safety officer. Can 1040x be filed electronically Where to report. Can 1040x be filed electronically    You take this deduction on Form 1040. Can 1040x be filed electronically If you itemize your deductions and do not claim 100% of your self-employed health insurance on Form 1040, you can generally include any remaining premiums with all other medical expenses on Schedule A (Form 1040), subject to the 10% limit (7. Can 1040x be filed electronically 5% if either you or your spouse was age 65 or older). Can 1040x be filed electronically See Self-Employed Health Insurance Deduction in chapter 6 of Publication 535, Business Expenses, and Medical and Dental Expenses in the Instructions for Schedule A (Form 1040), for more information. Can 1040x be filed electronically Prev  Up  Next   Home   More Online Publications
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Page Last Reviewed or Updated: 28-Mar-2014

The Can 1040x Be Filed Electronically

Can 1040x be filed electronically Publication 957 - Main Content Table of Contents 1. Can 1040x be filed electronically What is Back Pay?Reporting Back Pay Back Pay Under a Statute Nonstatutory Back Pay Format for Report to the SSA Questions 2. Can 1040x be filed electronically Special Wage PaymentsReporting Special Wage Payments Reporting Nonstatutory (Nonqualified) Stock Options as Special Wage Payments Nonqualified Deferred Compensation and Section 457 Plans Additional Reporting Examples for Nonqualified Deferred Compensation (NQDC) PlansSpecial rule for box 11 of Form W-2 (distributions and deferral in the same year). Can 1040x be filed electronically 1. Can 1040x be filed electronically What is Back Pay? Back pay is pay received in a tax year(s) for actual or deemed employment in an earlier tax year(s). Can 1040x be filed electronically For social security coverage and benefit purposes, all back pay, whether or not under a statute, is wages if it is payment for covered employment. Can 1040x be filed electronically Damages for personal injury, interest, penalties, and legal fees included with back pay awards are not wages. Can 1040x be filed electronically Report all back pay. Can 1040x be filed electronically However, the tax year(s) for which back pay is credited as wages for social security purposes is different if it is awarded under a statute. Can 1040x be filed electronically See Back Pay Under a Statute , later, for more information. Can 1040x be filed electronically Reporting Back Pay The Internal Revenue Service (IRS) and the SSA consider back pay awards to be wages. Can 1040x be filed electronically However, for income tax purposes, the IRS treats all back pay as wages in the year paid. Can 1040x be filed electronically Employers should use Form W-2, Wage and Tax Statement, or electronic wage reports to report back pay as wages in the year they actually pay the employee. Can 1040x be filed electronically The SSA no longer accepts reports on tapes, cartridges, and diskettes. Can 1040x be filed electronically Example. Can 1040x be filed electronically In 2012, Terry Morris earned wages of $50,000. Can 1040x be filed electronically In the same year, she received $100,000 in settlement of a back pay case against her employer that covered the periods January 2007 through December 2011. Can 1040x be filed electronically Her employer properly reflected social security wages of $110,100 and Medicare wages of $150,000 on her 2012 Form W-2. Can 1040x be filed electronically However, if an employer did not include back pay wages on a previously filed Form W-2, magnetic media, or electronically filed wage report, the employer should prepare a wage correction report, Form W-2c, Corrected Wage and Tax Statement, or electronically filed report, to add the back pay award to the wages previously reported. Can 1040x be filed electronically Example. Can 1040x be filed electronically If, in the above example, Terry Morris' employer had prepared her 2012 Form W-2 reporting social security and Medicare wages of only $50,000 each, the employer would have to correct that report. Can 1040x be filed electronically A Form W-2c correcting the 2012 Form W-2 would show previously reported social security and Medicare wages of $50,000 and the correct amount of $110,100 for social security wages and $150,000 for Medicare wages. Can 1040x be filed electronically SSA treatment of back pay under a statute. Can 1040x be filed electronically   Under the law, the SSA credits back pay awarded under a statute to an individual's earnings record in the period(s) the wages should have been paid. Can 1040x be filed electronically This is important because wages not credited to the proper year may result in lower social security benefits or failure to meet the requirements for benefits. Can 1040x be filed electronically   However, back pay under statute payments will remain posted to the employee's social security earnings record in the year reported on Form W-2 (or Form W-2c) unless the employer or employee notifies the SSA (in a separate, special report) of the back pay under a statute payment. Can 1040x be filed electronically Then, the SSA can allocate the statutory back pay to the appropriate periods. Can 1040x be filed electronically   If a back pay award is not made under a statute, the SSA credits back pay as wages in the year paid. Can 1040x be filed electronically    If employers do notify the SSA of this payment, they should prepare a special report (with the information noted below) and send it to: Social Security Administration Attn: CPS Back Pay Staff 7-B-15 SWT 1500 Woodlawn Drive Baltimore, MD 21241-0001 Be sure to send this special report to the above address because the SSA handles it separately from other reports. Can 1040x be filed electronically    If you paid the back pay award in the same tax year to which it applies, report the wages on that year's Form W-2. Can 1040x be filed electronically No further action is necessary. Can 1040x be filed electronically Example. Can 1040x be filed electronically In 2012, Judy Wilson received a salary of $30,000 and a back pay under statute award of $2,000 for the period January through June 2012. Can 1040x be filed electronically Her employer properly reported wages of $32,000 for social security and Medicare on her 2012 Form W-2. Can 1040x be filed electronically No further action is necessary. Can 1040x be filed electronically Information the SSA needs to properly credit back pay under a statute (special report). Can 1040x be filed electronically   After you complete the special report, you or the employee should send it to the SSA when or after you submit the Form W-2 (on paper or electronically) to the SSA for the year you pay the statutory back pay to the employee. Can 1040x be filed electronically There is no statute of limitations on the filing of the special report to enable the SSA to allocate the wages. Can 1040x be filed electronically The special report must include the following information. Can 1040x be filed electronically The employer's name, address, and employer identification number (EIN). Can 1040x be filed electronically A signed statement citing the federal or state statute under which the payment was made. Can 1040x be filed electronically If the statute is not identified, the SSA will assume the payment was not under a statute and will not allocate to earlier period(s). Can 1040x be filed electronically The name and telephone number of a person to contact. Can 1040x be filed electronically The SSA may have additional questions concerning the back pay case or the individual employee's information. Can 1040x be filed electronically A list of employees receiving the payment and the following information for each employee: The tax year you paid and reported the back pay. Can 1040x be filed electronically The employee's social security number (SSN). Can 1040x be filed electronically The employee's name (as shown on his or her social security card). Can 1040x be filed electronically The amount of the back pay award excluding any amounts specifically designated otherwise, for example, damages for personal injury, interest, penalties, and legal fees. Can 1040x be filed electronically The period(s) the back pay award covers (beginning and ending dates—month and year). Can 1040x be filed electronically The other wages paid subject to social security and/or Medicare taxes and reported in the same year as the back pay award (if none, show zero)*. Can 1040x be filed electronically Do not include the back pay award shown in that wage report. Can 1040x be filed electronically If you originally submitted the report under an establishment number, show that number and the amount of money that is to remain under that establishment number. Can 1040x be filed electronically The amount to allocate to each reporting period*. Can 1040x be filed electronically This includes any amount you want allocated (if applicable) to the tax year of the award payment. Can 1040x be filed electronically If you do not give the SSA specific amounts to allocate, the SSA does the allocation by dividing the back pay award by the number of months or years covered by the award. Can 1040x be filed electronically *Note. Can 1040x be filed electronically   For periods before January 1, 1978 (before January 1, 1981, for state and local government employers covered by a Section 218 agreement), show the wage amounts for each calendar quarter ending March 31, June 30, September 30, and December 31. Can 1040x be filed electronically For all tax years, show and identify the social security and/or Medicare Qualified Government Employment (MQGE) wages (where applicable) separately. Can 1040x be filed electronically MQGE is applicable to federal employees beginning in 1983, and for certain state and local government employees beginning in 1986. Can 1040x be filed electronically For tax years 1991 and later, list the social security and Medicare wages separately. Can 1040x be filed electronically If you originally reported the individual's wages under an establishment or payroll record unit number, show the amount of wages to remain in the award year for that number and furnish that number to the SSA along with the EIN. Can 1040x be filed electronically Back Pay Under a Statute Back pay awarded under a statute is a payment by an employer following an award, determination, or agreement approved or sanctioned by a court or government agency responsible for enforcing a federal or state statute that protects an employee's right to employment or wages. Can 1040x be filed electronically Examples of pertinent statutes include: Age Discrimination in Employment Act, Americans with Disabilities Act, Equal Pay Act, Fair Labor Standards Act, National Labor Relations Act, State minimum wage laws, and State statutes that protect rights to employment and wages. Can 1040x be filed electronically Payments based on laws that have a similar effect to those listed above also may qualify as payments made under a statute. Can 1040x be filed electronically Back pay awards, under some of the statutes listed above, may be compensation for personal injury and not pay for employment. Can 1040x be filed electronically Such awards are not wages for social security coverage purposes. Can 1040x be filed electronically If a court-approved or sanctioned settlement agreement states that the agreement is not an admission of discrimination, liability, or act of wrongdoing, the statement does not change the nature of a back pay award. Can 1040x be filed electronically The payments made in such a settlement may still be back pay and wages under the rules discussed here. Can 1040x be filed electronically Nonstatutory Back Pay A payment for back wages negotiated between an employer and employee without an award, determination, or agreement approved or sanctioned by a court or government agency, the payment is not made under a statute. Can 1040x be filed electronically Delayed wage payments and retroactive pay increases resulting from union negotiation or payments under local ordinances or regulations are back pay and are wages. Can 1040x be filed electronically However, they are not payments made under a statute. Can 1040x be filed electronically If you are uncertain whether the back pay award was under a qualified statute, you may need to contact your personnel department or legal counsel or the attorney who filed the suit. Can 1040x be filed electronically Format for Report to the SSA Use the format shown in Table 1, later, to send the SSA the information needed to properly credit back pay under a statute. Can 1040x be filed electronically In a cover letter, include: Name and address of the employer, Statute under which you paid the back pay, Name and telephone number of the employer contact, and Signature of the reporting official. Can 1040x be filed electronically Under certain circumstances, back pay may be a special wage payment and excluded from wages counted under the social security earnings test. Can 1040x be filed electronically If you pay back pay to an employee age 61 or older, report it to the SSA in accordance with this section. Can 1040x be filed electronically Read Special Wage Payments, later, for additional reporting instructions. Can 1040x be filed electronically Questions If you have questions concerning back pay under a statute, call the SSA at 1-800-772-6270. Can 1040x be filed electronically Exception. Can 1040x be filed electronically   If you are a state or local government employer who was covered by an agreement under Section 218 of the Social Security Act before January 1, 1987, and you paid a back pay award before January 1, 1987, which you did not report to the SSA, contact your state Social Security Administrator's office. Can 1040x be filed electronically Table 1. Can 1040x be filed electronically Format for Report (Under Covering Letter) to Request SSA to Allocate Back Pay Under Statute Wages Employer's EIN: xx-xxxxxxx Tax Year in Which Award Payment Was Paid: 2012 (1) SSN and Employee Name (2)1 Award Amount and Period(s) (3)2,3 Other Soc. Can 1040x be filed electronically Sec. Can 1040x be filed electronically /Med. Can 1040x be filed electronically Wages Paid In Award Year (4)3 Allocation     Soc. Can 1040x be filed electronically Sec. Can 1040x be filed electronically Med. Can 1040x be filed electronically /MQGE Year Soc. Can 1040x be filed electronically Sec. Can 1040x be filed electronically Med. Can 1040x be filed electronically /MQGE xxx-xx-xxxx HELEN T. Can 1040x be filed electronically SMITH $100,000 1/2009 - 12/2012 $40,000 $40,000 2009 2010 2011 2012 $20,000 25,000 27,000 28,000 $20,000 25,000 27,000 28,000 xxx-xx-xxxx SAM W. Can 1040x be filed electronically EVANS 30,000 7/89-12/91 -0- -0- 1989 1990 1991   6,000 12,000 12,000 xxx-xx-xxxx ROLAND S. Can 1040x be filed electronically ADAMS 15,000 7/80-12/81 -0- -0- 9/80 12/80 1981 3,500 3,500 8,000   1Exclude amounts specifically designated as damages, penalties, etc. Can 1040x be filed electronically  2Exclude the amount of back pay, if any, included in that amount. Can 1040x be filed electronically  3For periods before January 1, 1978 (and for state and local government (Section 218) employers before January 1, 1981), show the wage amounts by calendar quarters. Can 1040x be filed electronically The social security and/or Medicare Qualified Government Employment (MQGE) wages (where applicable) must be shown separately FOR ALL YEARS. Can 1040x be filed electronically (Wages subject ONLY to MQGE would be shown in the Medicare/MQGE column; no wages would be shown in the Soc. Can 1040x be filed electronically Sec. Can 1040x be filed electronically column. Can 1040x be filed electronically ) For tax years 1991 and later, the social security and Medicare wages must be listed separately. Can 1040x be filed electronically Explanation of examples. Can 1040x be filed electronically Helen T. Can 1040x be filed electronically Smith–The back pay award, excluding interest, was $100,000 for the periods 1/2009-12/2012. Can 1040x be filed electronically In 2012, this employee was also paid $40,000 in other wages. Can 1040x be filed electronically (Her Form W-2 for 2012 reported $110,100 for social security and $140,000 for Medicare. Can 1040x be filed electronically The SSA allocation will result in adjusted posted wages of $68,000 for social security and $68,000 for Medicare for 2012. Can 1040x be filed electronically ) Sam W. Can 1040x be filed electronically Evans–The back pay award was $30,000 for the periods 7/89-12/91. Can 1040x be filed electronically This employee was hired in 1989 and was subject to MQGE only. Can 1040x be filed electronically He was no longer employed by this governmental employer in 2012. Can 1040x be filed electronically (His Form W-2 for 2012 reported $30,000 for social security and $30,000 for Medicare. Can 1040x be filed electronically After the SSA allocation, he will not have any net posted wages for 2012. Can 1040x be filed electronically ) Roland S. Can 1040x be filed electronically Adams–The back pay award was $15,000 for the periods 7/80-12/81. Can 1040x be filed electronically He was no longer employed by this state and local government (Section 218) employer in 2012. Can 1040x be filed electronically (His Form W-2 for 2012 reported $15,000 for social security and $15,000 for Medicare; after the SSA allocation, he will not have any net posted wages for 2012. Can 1040x be filed electronically ) If the state Social Security Administrator's office needs more information, they can contact the SSA at the following address:   Social Security Administration Office of Income Security Programs Office of Earnings and Program Integrity Policy 6401 Security Boulevard 2506 OPS Baltimore, MD 21235 2. Can 1040x be filed electronically Special Wage Payments A special wage payment (SWP) is an amount paid by an employer to an employee (or former employee) for services performed in a prior year. Can 1040x be filed electronically Employers should report to the SSA special wage payments made to employees and former employees who are recipients of social security retirement benefits. Can 1040x be filed electronically Special wage payments made to a retired employee receiving social security or to an employee who continues to work while receiving social security benefits may reduce the benefits the individual receives if not reported to the SSA. Can 1040x be filed electronically Special wage payments may include (but are not limited to): Accumulated sick and vacation pay, Back pay, Bonuses, Deferred compensation, Payments because of retirement, Sales commissions, Severance pay, and Stock options. Can 1040x be filed electronically Note. Can 1040x be filed electronically Payments made after retirement that are part of the normal payroll cycle should not be routinely reported as special wage payments. Can 1040x be filed electronically Earnings Test. Can 1040x be filed electronically   Benefits paid to a social security beneficiary under full retirement age may be reduced if the beneficiary continues to work. Can 1040x be filed electronically The SSA uses the information in boxes 1, 3, and 5 of Form W-2 to determine the beneficiary's current year earnings. Can 1040x be filed electronically Special wage payments, which are for services performed in a prior year, will increase the current year earnings on Form W-2, which also may result in a reduction in the beneficiary's benefits. Can 1040x be filed electronically If a benefit is reduced because of a special wage payment, the beneficiary must get documentation from the employer before the SSA can restore the deducted portion. Can 1040x be filed electronically Therefore, employer reports of special wage payments help prevent incorrect benefit reductions. Can 1040x be filed electronically Reporting Special Wage Payments Employers must report special wage payments for income tax purposes and social security and Medicare taxes in the year received. Can 1040x be filed electronically Report income, social security, and/or Medicare taxes for special wage payments on Form W-2. Can 1040x be filed electronically See Nonqualified Deferred Compensation and Section 457 Plans, later, for reporting nonqualified deferred compensation plan deferrals and payments on Form W-2. Can 1040x be filed electronically In addition, report to the SSA special wage payments made during the reporting year to retired employees and employees who continue to work while receiving social security benefits. Can 1040x be filed electronically Submit reports after the close of the tax year. Can 1040x be filed electronically To avoid delays in processing, submit reports in time to reach the SSA by April 1. Can 1040x be filed electronically Use one of the following reporting methods. Can 1040x be filed electronically Electronic reporting. Can 1040x be filed electronically   Special wage payment files can be sent electronically by logging onto Business Services Online (BSO) via the socialsecurity. Can 1040x be filed electronically gov website. Can 1040x be filed electronically BSO enables organizations and authorized individuals to conduct business with and submit confidential information to the Social Security Administration. Can 1040x be filed electronically You must register to use this website. Can 1040x be filed electronically The web address is www. Can 1040x be filed electronically socialsecurity. Can 1040x be filed electronically gov/bso/bsowelcome. Can 1040x be filed electronically htm. Can 1040x be filed electronically   Use the specifications and record layout shown in  Table 2, later. Can 1040x be filed electronically Only one file at a time may be submitted. Can 1040x be filed electronically If your file is large (>10MB), or you have a slow internet connection, the transmission will be faster if the file is zipped. Can 1040x be filed electronically A zipped file contains a file that has been compressed to reduce its file size. Can 1040x be filed electronically WinZip and PKZIP are examples of acceptable compression packages. Can 1040x be filed electronically   Electronic submissions not meeting the specifications in Table 2 will be rejected. Can 1040x be filed electronically Paper listing. Can 1040x be filed electronically   A paper listing can be used to report special wage payments to several employees. Can 1040x be filed electronically Use the format shown in Table 3, later. Can 1040x be filed electronically Submit paper listings to the local SSA office nearest your place of business. Can 1040x be filed electronically Visit www. Can 1040x be filed electronically socialsecurity. Can 1040x be filed electronically gov/locator to find a Social Security office near you. Can 1040x be filed electronically Form SSA-131. Can 1040x be filed electronically   Use Form SSA-131 to report special wage payments made to an employee. Can 1040x be filed electronically Also use this form to report nonqualified deferred compensation and section 457 plan deferrals and payments that could not be reported in box 11 of Form W-2. Can 1040x be filed electronically    This image is too large to be displayed in the current screen. Can 1040x be filed electronically Please click the link to view the image. Can 1040x be filed electronically Publication 957 Reporting Back Pay to the Social Security Administration Instructions for Form SSA–131   EMPLOYER INSTRUCTIONS FOR COMPLETING SPECIAL WAGE PAYMENT FORM 1. Can 1040x be filed electronically Provide the EIN that was used or will be used to report the employee's wages on the Form W-2. Can 1040x be filed electronically 2. Can 1040x be filed electronically Enter the date the employee retired. Can 1040x be filed electronically Enter “Not Retired” if the employee has not retired. Can 1040x be filed electronically 3. Can 1040x be filed electronically Enter the date that the employee last performed services; was not expected to return to work; and was not subject to recall to render additional services. Can 1040x be filed electronically This date should be the same as or earlier than the date in item “2”. Can 1040x be filed electronically Enter “Not Retired” if the employee has not retired. Can 1040x be filed electronically 4. Can 1040x be filed electronically Enter the wages that were paid to the employee in the tax year that were for services that were performed in years prior to the tax year or that were paid on account of retirement. Can 1040x be filed electronically  Examples (not all inclusive) of payments to be included: Payments in lieu of vacation that were earned in a year prior to the tax year. Can 1040x be filed electronically Accumulated sick payments which were paid in a lump sum based on “retirement” as the sole condition of payment. Can 1040x be filed electronically Accumulated sick payments paid at or after the date in item 3, which were earned in a year prior to the tax year. Can 1040x be filed electronically Payments “on account of retirement”–dismissal, severance or termination pay paid because of retirement. Can 1040x be filed electronically Bonuses which are paid pursuant to a prior contract, agreement or promise causing the employee to expect such payments regularly; or announced to induce the employee to work more steadily, rapidly or efficiently or to remain with the employer. Can 1040x be filed electronically Stock Options. Can 1040x be filed electronically   Do not include in item “4” payments: For annual, sick, holiday, or vacation pay if used (absence from work) prior to the date of retirement (earlier of items “2” or “3”). Can 1040x be filed electronically That were reported or will be reported under “Nonqualified Plans” on the Form W-2. Can 1040x be filed electronically That were deducted from the employee's wages and paid to a deferred compensation plan (e. Can 1040x be filed electronically g. Can 1040x be filed electronically , 401k). Can 1040x be filed electronically Employees health and dental plan benefits (non-covered/non-taxable for Social Security Wages). Can 1040x be filed electronically Bonuses earned and paid in the tax year. Can 1040x be filed electronically 5. Can 1040x be filed electronically Check whether payments listed in item 4 will be made for years after the tax year. Can 1040x be filed electronically If yes, please show the amounts and years in which these will be paid, if known. Can 1040x be filed electronically 6. Can 1040x be filed electronically Nonqualified deferred compensation and section 457 plans only. Can 1040x be filed electronically If you were unable to report nonqualified deferred compensation or section 457 plan payments and deferrals (contributions) on Form W-2 because both payments and deferrals occurred during the year, show the amount of wages earned by the employee during the tax year. Can 1040x be filed electronically Generally, the wages earned will be the compensation reported in block 1 of Form W-2 less payments from a nonqualified deferred compensation (or 457) plan, but including any amounts deferred under the plan during the tax year (See IRS Publication 957). Can 1040x be filed electronically Paperwork/Privacy Act Notice: This report is authorized by regulation 20 CFR 404. Can 1040x be filed electronically 702. Can 1040x be filed electronically The information that you provide will be used in making a determination regarding the amount of Social Security benefits payable to the above named individual. Can 1040x be filed electronically While your response is voluntary, if you do not respond we may not be able to make a correct determination regarding the amount of Social Security benefits payable to the above named individual for the year in question. Can 1040x be filed electronically We may also use the information you give us when we match records by computer. Can 1040x be filed electronically Matching programs compare our records with those of other Federal, State, or local government agencies. Can 1040x be filed electronically Many agencies may use matching programs to find or prove that a person qualifies for benefits paid by the Federal Government. Can 1040x be filed electronically The law allows us to do this even if you do not agree to it. Can 1040x be filed electronically Explanations about these and other reasons why information you provide us may be used or given out are available in Social Security Offices. Can 1040x be filed electronically If you want to learn more about this, contact any Social Security Office. Can 1040x be filed electronically The Paperwork Reduction Act: This information collection meets the clearance requirements of 44 U. Can 1040x be filed electronically S. Can 1040x be filed electronically C. Can 1040x be filed electronically §3507, as amended by Section 2 of the Paperwork Reduction Act of 1995. Can 1040x be filed electronically You are not required to answer these questions unless we display a valid Office of Management and Budget control number. Can 1040x be filed electronically We estimate that it will take you about 20 minutes to read the instructions, gather the necessary facts, and answer the questions. Can 1040x be filed electronically Form SSA-131 (8-2001) EF (06-2002)   Submit Form SSA-131 to the SSA office nearest your place of business. Can 1040x be filed electronically Or, the employee can submit it to the SSA office handling the claim. Can 1040x be filed electronically You or the employee must submit this form before the SSA can exclude the special wage payments for purposes of the earnings test. Can 1040x be filed electronically If reporting on more than one employee, complete a separate Form SSA-131 for each employee or use the paper listing format (except for reporting nonqualified and section 457 plan deferrals and payments) in Table 3. Can 1040x be filed electronically Do not report payments from nonqualified deferred compensation or section 457 plans that were reported in box 11 of Form W-2. Can 1040x be filed electronically Use Form SSA-131 if deferrals to and payments from nonqualified or section 457 plans occurred during the tax year. Can 1040x be filed electronically Reporting Nonstatutory (Nonqualified) Stock Options as Special Wage Payments A nonstatutory (nonqualified) option to purchase stock which is exercised in a year after the year in which the option was earned is a special wage payment. Can 1040x be filed electronically It should not count for the social security earnings test. Can 1040x be filed electronically Nonstatutory (nonqualified) options exercised as special wage payments by retired employees or employees who continue to work while receiving social security benefits should be reported by employers using the above reporting methods. Can 1040x be filed electronically Nonqualified Deferred Compensation and Section 457 Plans A nonqualified deferred compensation plan is a plan or arrangement established and maintained by an employer for one or more of its employees that provides for the deferral of compensation, but does not meet the requirements for a tax-qualified deferred compensation plan. Can 1040x be filed electronically For social security and Medicare purposes, deferred compensation plans for employees of state and local governments (section 457 plans) are treated the same as nonqualified plans. Can 1040x be filed electronically Nonqualified and section 457 plans are reported differently than other special wage payments. Can 1040x be filed electronically See Reporting Amounts Deferred to Nonqualified and Section 457 Plans below for specific instructions. Can 1040x be filed electronically Reporting Amounts Deferred to Nonqualified and Section 457 Plans Generally, when the related services are performed, nonqualified deferred compensation is subject to social security and Medicare tax when deferred. Can 1040x be filed electronically However, if nonqualified and section 457 plans contain provisions that delay the employee's right to receive payments from the plan, a period of substantial risk of forfeiture exists. Can 1040x be filed electronically The plans' deferrals, or contributions, are not subject to social security and Medicare taxes until the period of substantial risk of forfeiture ends. Can 1040x be filed electronically No risk of forfeiture. Can 1040x be filed electronically   If there is no risk of forfeiture, report wage amounts deferred to a nonqualified deferred compensation or section 457 plan in box 3 (up to the wage base maximum) and/or box 5 of Form W-2. Can 1040x be filed electronically Example. Can 1040x be filed electronically Company X's nonqualified deferred compensation plan allows the deferral of up to $20,000 of employee salaries each year. Can 1040x be filed electronically The plan has no risk of forfeiture. Can 1040x be filed electronically In 2012, Employee A defers $20,000 to the plan from a total salary of $200,000. Can 1040x be filed electronically Form W-2 Completion Amount Box 1 $200,000 Box 3* 110,100 Box 5 200,000 *Wage base maximum for tax year 2012 Risk of forfeiture lapses before retirement. Can 1040x be filed electronically   If the substantial risk of forfeiture lapses before the employee retires, report all past contributions to the plan (or the value of the plan), including accumulated earned interest, in box 3 (up to the wage base maximum) and/or box 5 of Form W-2. Can 1040x be filed electronically The accumulated deferrals are reported along with any other social security and Medicare wages earned during the year. Can 1040x be filed electronically   Report in box 11 of Form W-2 the amount of deferrals, including any accumulated interest, that became taxable for social security and Medicare taxes during the year (but were for prior year services) because the deferred amounts were no longer subject to a substantial risk of forfeiture. Can 1040x be filed electronically If the employee continues working, future deferrals are social security and Medicare wages when they are earned. Can 1040x be filed electronically    Do not include in box 11 deferrals that are included in boxes 3 and/or 5 and that are for current year services. Can 1040x be filed electronically Risk of forfeiture lapses at retirement. Can 1040x be filed electronically   When an employee's right to a payment is contingent upon working until retirement, report all past contributions to the plan (or the value of the plan), including accumulated earned interest, as social security and/or Medicare wages in the year of retirement. Can 1040x be filed electronically Add the amount to other wages paid in that year, and enter in box 3 (up to the wage base maximum) and/or box 5 of Form W-2. Can 1040x be filed electronically   Report in box 11 of Form W-2 the amount of deferrals, including any accumulated interest, that became taxable for social security and Medicare taxes during the year (but were for prior year services) because the deferred amounts were no longer subject to a substantial risk of forfeiture. Can 1040x be filed electronically    Do not include in box 11 deferrals that are included in boxes 3 and/or 5 and that are for current year services. Can 1040x be filed electronically Example—risk of forfeiture. Can 1040x be filed electronically At the end of the risk-of-forfeiture period for Company Y's nonqualified deferred compensation plan, Employee B's accumulated deferrals, plus interest earned by the plan, are $120,000, not including B's $20,000 deferral for this year. Can 1040x be filed electronically B's wages, including this year's deferred amount, are $80,000. Can 1040x be filed electronically Form W-2 Completion Amount Box 1 $60,000 Box 3* 110,100 Box 5 200,000 Box 11 120,000 *Wage base maximum for tax year 2012 Reporting Payments From Nonqualified and Nongovernmental Section 457 Plans When an employee or former employee retires and begins receiving payments (distributions) from a nonqualified or nongovernmental section 457 plan, report the payments in boxes 1 and 11 of Form W-2. Can 1040x be filed electronically Report payments (distributions) from a governmental section 457 plan on Form 1099-R, Distributions from Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. Can 1040x be filed electronically Example. Can 1040x be filed electronically Employee D retired from the XYZ company and began receiving social security benefits. Can 1040x be filed electronically XYZ paid D a $12,000 bonus upon retirement for sales made in a prior year, and D received $25,000 in payments from XYZ's nonqualified deferred compensation plan. Can 1040x be filed electronically In addition, D agreed to continue performing services for XYZ, but on a part-time basis for wages of $15,000 per year. Can 1040x be filed electronically D made no deferrals to the nonqualified plan this year. Can 1040x be filed electronically Form W-2 Completion Amount Box 1 $52,000 Box 3 27,000 Box 5 27,000 Box 11 25,000 Report the $12,000 bonus to the SSA using electronic reporting, a paper listing, or Form SSA-131. Can 1040x be filed electronically For more information, see Reporting Special Wage Payments , earlier. Can 1040x be filed electronically Reporting Payments and Deferrals in the Same Year Do not complete box 11 when payments (distributions) are made from a nonqualified plan and deferrals are reported in boxes 3 and/or 5 of Form W-2 (including current year deferrals). Can 1040x be filed electronically Report to the SSA on Form SSA-131 the total amount the employee earned during the tax year. Can 1040x be filed electronically Normally, the amount earned is the amount reported in box 1 of Form W-2 less payments from a nonqualified or section 457 plan, but including any amounts deferred under the plan during the tax year. Can 1040x be filed electronically See Form SSA-131 and its instructions, earlier. Can 1040x be filed electronically Example. Can 1040x be filed electronically Employee K retired this year from Company XYZ and began receiving social security benefits. Can 1040x be filed electronically During the year he earned wages of $50,000 and deferred $35,000 of the wages into the company's nonqualified deferred compensation plan. Can 1040x be filed electronically K also received $75,000 in payments from the company's nonqualified plan. Can 1040x be filed electronically Form W-2 Completion Amount Special Wage Payment $75,000 Wages 50,000 Minus: deferral 35,000 Total reported in Box 1 $90,000     Wages including deferral reported in  Boxes 3 and 5 $50,000     Leave Box 11 blank. Can 1040x be filed electronically File Form SSA-131 -0-     Form SSA-131 Completion Amount from Box 1 of Form W-2 $90,000 Minus: payments from a nonqualified plan 75,000 Plus: amounts deferred into the plan during the year 35,000 Total wages earned for purposes of Form SSA-131 (item 6) $50,000 Additional Reporting Examples for Nonqualified Deferred Compensation (NQDC) Plans It is not necessary to show amounts deferred during the year under an NQDC plan subject to section 409A. Can 1040x be filed electronically If you report section 409A deferrals, show the amount in box 12 of Form W-2 using code Y. Can 1040x be filed electronically For more information, see Notice 2008-115, 2008-52 I. Can 1040x be filed electronically R. Can 1040x be filed electronically B. Can 1040x be filed electronically 1367, available at www. Can 1040x be filed electronically irs. Can 1040x be filed electronically gov/irb/2008-52_IRB/ar10. Can 1040x be filed electronically html. Can 1040x be filed electronically Special reporting rules apply when an NQDC plan is not compliant with section 409A (when there has been a “plan failure”). Can 1040x be filed electronically Income included under section 409A from an NQDC plan is reported in box 1 and box 12 of Form W-2 using code Z. Can 1040x be filed electronically See Notice 2008-115. Can 1040x be filed electronically The following examples use small dollar amounts for illustrative purposes. Can 1040x be filed electronically However, the amount reported in box 3 of Form W-2 is always limited by the social security earnings wage base (for example, $110,100 for 2012). Can 1040x be filed electronically The term “vested” in the following examples means that the amount deferred is not subject to a substantial risk of forfeiture. Can 1040x be filed electronically Conversely, the term “not vested” means that the amount deferred is subject to a substantial risk of forfeiture. Can 1040x be filed electronically The examples assume that the NQDC plan is in compliance with section 409A, and that amounts deferred under the plan are not includible in gross income as they are deferred. Can 1040x be filed electronically For purposes of the examples, it is assumed that the regular pay of the employee is remuneration for employment and wages for employment tax purposes except to the extent the deferral of a portion of the regular pay results in a reduction in wages. Can 1040x be filed electronically Example 1: Deferral that is immediately vested (no substantial risk of forfeiture) with no distributions and no vesting of prior-year deferrals. Can 1040x be filed electronically For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into her employer’s NQDC plan. Can 1040x be filed electronically The deferral of $20 was vested upon deferral and there was an employer match of $10 under the plan, which was also vested. Can 1040x be filed electronically Regular pay = $200; Deferral, vested = $20; Employer match, vested = $10. Can 1040x be filed electronically Form W-2 Completion Amount Box 1 ($200 Regular pay minus $20 vested deferral) $180 Box 3 ($200 Regular pay plus $10 Employer match, vested) 210 Box 5 ($200 Regular pay plus $10 Employer match, vested) 210 Box 11 -0- Example 2: Deferral with delayed vesting (substantial risk of forfeiture) of employee and employer portions (no distributions and no vesting of prior-year deferrals). Can 1040x be filed electronically For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into the employer’s nonqualified deferred compensation plan. Can 1040x be filed electronically The deferral of $20 was not vested upon deferral, and there was an employer match of $10 under the plan, which was also not vested. Can 1040x be filed electronically Regular pay = $200; Deferral, not vested = $20; Employer match, not vested = $10. Can 1040x be filed electronically Form W-2 Completion Amount Box 1 ($200 Regular pay minus $20 Deferral, not vested) $180 Box 3 ($200 Regular pay minus $20 Deferral, not vested) 180 Box 5 ($200 Regular pay minus $20 Deferral, not vested) 180 Box 11 -0- Example 3: Deferral that is immediately vested with prior-year deferrals and investment earnings on the prior-year deferrals that are now vesting (no distributions). Can 1040x be filed electronically For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into the employer’s nonqualified deferred compensation plan. Can 1040x be filed electronically The deferral of $20 was vested upon deferral. Can 1040x be filed electronically During the year, $100 of prior-year deferrals and $15 of investment earnings on the $100 of prior-year deferrals became vested. Can 1040x be filed electronically Regular pay = $200; Deferral, vested = $20; Vesting of prior-year deferrals = $100; Vesting of investment earnings on $100 of prior-year deferral = $15. Can 1040x be filed electronically Form W-2 Completion Amount Box 1 ($200 Regular pay minus $20 Deferral, vested) $180 Box 3 ($200 Regular pay plus $100 vested prior-year deferral plus $15 earnings on deferral) 315 Box 5 ($200 Regular pay plus $100 vested prior-year deferral plus $15 vested investment earnings on prior year deferral) 315 Box 11 ($100 vested prior-year deferral plus $15 earnings) 115 Example 4: No deferrals but there are distributions (no vesting of prior-year deferrals). Can 1040x be filed electronically For the year, the employee’s regular pay was $100, and the employee deferred no pay into the employer’s NQDC plan. Can 1040x be filed electronically There was no vesting of prior-year deferrals under the plan. Can 1040x be filed electronically During the year, there were total distributions of $50 from the plan to the employee. Can 1040x be filed electronically Regular pay = $100; Distribution = $50. Can 1040x be filed electronically Form W-2 Completion Amount Box 1 ($100 Regular pay plus $50 Distribution) $150 Box 3 ($100 Regular pay ) 100 Box 5 ($100 Regular pay) 100 Box 11 ($50 Distribution) 50 Special rule for box 11 of Form W-2 (distributions and deferral in the same year). Can 1040x be filed electronically   If, in the same year, there are NQDC distributions and there are deferrals that are reportable in boxes 3 and/or 5 (current or prior-year deferrals) of Form W-2, do not complete box 11. Can 1040x be filed electronically Instead, report on Form SSA-131 the total amount the employee earned during the year. Can 1040x be filed electronically * Submit the SSA-131 to the nearest SSA office or give it to the employee. Can 1040x be filed electronically   *Generally, the amount earned by the employee during the tax year for purposes of item 6 of Form SSA-131 is the amount reported in box 1 of Form W-2 plus current-year deferrals that are vested (employee and employer portions) less distributions. Can 1040x be filed electronically Do not consider prior-year deferrals that are vesting in the current year. Can 1040x be filed electronically If there was a plan failure, the box 1 amount in this calculation should be as if there were no plan failure. Can 1040x be filed electronically Example 5: Deferral that is immediately vested and there are distributions (no vesting of prior-year deferrals). Can 1040x be filed electronically For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into the employer’s NQDC plan. Can 1040x be filed electronically There was also an employer match of $10. Can 1040x be filed electronically The deferral and employer match were vested upon deferral. Can 1040x be filed electronically There was no vesting of prior-year deferrals under the plan. Can 1040x be filed electronically During the year, there were total distributions of $50 from the plan to the employee. Can 1040x be filed electronically Regular pay = $200; Deferral, vested = $20; Employer match, vested = $10; Distribution = $50. Can 1040x be filed electronically Form W-2 Completion Amount Box 1 ($50 Special Wage Payment (Distribution) plus $200 Regular pay minus $20 Deferral, vested) $230 Boxes 3 and 5 ($200 Regular pay plus $10 vested employer match) 210 Leave Box 11 blank. Can 1040x be filed electronically File Form SSA-131 -0-     Form SSA-131 Completion Item 6 - amount of wages earned by the employee during the tax year ($230 from Box 1 of Form W-2 minus $50 Distribution plus $30 vested current year employee deferral and employer match) $210 Example 6: Deferral with delayed vesting and there are distributions (no vesting of prior-year deferrals). Can 1040x be filed electronically For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into the employer’s NQDC plan. Can 1040x be filed electronically The deferral was not vested upon deferral. Can 1040x be filed electronically There was no vesting of prior-year deferrals under the plan. Can 1040x be filed electronically During the year, there were total distributions of $50 from the plan to the employee. Can 1040x be filed electronically Regular pay = $200; Deferral, not vested = $20; Distribution = $50. Can 1040x be filed electronically Form W-2 Completion Amount Box 1 ($50 Special Wage Payment (Distribution) plus $200 Regular pay minus $20 Deferral, not vested) $230 Boxes 3 and 5 ($200 Regular pay minus $20 deferral that is not vested) 180 Box 11 ($50 Distribution). Can 1040x be filed electronically 50 Example 7: Deferral that is immediately vested and there are distributions (also vesting of prior-year deferrals and earnings on those prior-year deferrals). Can 1040x be filed electronically For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into the employer’s NQDC plan. Can 1040x be filed electronically The deferral was vested upon deferral. Can 1040x be filed electronically There was vesting of $100 of prior-year deferrals and $15 of earnings on the $100 prior-year deferral under the plan. Can 1040x be filed electronically During the year, there were total distributions of $50 from the plan to the employee. Can 1040x be filed electronically Regular pay = $200; Deferral, vested = $20; Distribution = $50; Vesting of prior-year deferrals ($100) and earnings on those prior-year deferrals ($15) = $115. Can 1040x be filed electronically Form W-2 Completion Amount Box 1 ($50 Special Wage Payment (Distribution) plus $200 Regular pay minus $20 vested deferral $230 Boxes 3 and 5 ($200 Regular pay Plus $115 vested prior deferral (with vested earnings on the deferral)) 315 Leave Box 11 blank. Can 1040x be filed electronically File Form SSA-131 -0-     Form SSA-131 Completion Item 6, amount of wages earned by the employee during the tax year ($230 from Box 1 of Form W-2 minus $50 Distribution plus $20 vested current year deferral) $200 Example 8: Deferral with delayed vesting and there are distributions (vesting of prior-year deferrals, including employer matches, and earnings on those deferrals). Can 1040x be filed electronically For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into the employer’s NQDC plan. Can 1040x be filed electronically The deferral was not vested upon deferral. Can 1040x be filed electronically There was also vesting of prior-year deferrals and employer matches and earnings on these amounts under the plan ($115). Can 1040x be filed electronically During the year, there were total distributions of $50 from the plan to the employee. Can 1040x be filed electronically Regular pay = $200; Deferral, not vested = $20; Distribution = $50; Vesting of prior-year deferrals and employer match = $100 plus earnings on that $100 of $15. Can 1040x be filed electronically Form W-2 Completion Amount Box 1 ($50 Special Wage Payment (Distribution) plus $200 regular pay minus $20 Deferral, not vested) $230 Boxes 3 and 5 ($200 Regular pay plus $115 vested prior-year deferral and prior year employer match and earning on the prior year amounts minus $20 deferral that is not vested) 295 Leave Box 11 blank. Can 1040x be filed electronically File Form SSA-131 -0-     Form SSA-131 Completion Item 6 ($230 Amount from Box 1 of Form W-2 minus $50 Distribution) $180 Table 2. Can 1040x be filed electronically Specifications for Electronic Reporting of Special Wage Payments Record Position  Field Size   Description Start End 1 3 3 Record Type—must include only the capital letters “SWP” 4 12 9 SSN—must be numeric and may not be all zeros 13 27 15 Last Name—all capitals and no punctuation; may have blanks on right only 28 38 11 First Name—all capitals and no punctuation; may have blanks on right only 39 39 1 Middle Initial—must be either a capital letter or blank 40 48 9 EIN—must be numeric and may not be all zeros 49 59 11 Payment—must be numeric; may not be all zeros; last two digits on right are assumed to be cents; no period or dollar sign 60 63 4 Payment Year—must be only a four-digit year 64 66 3 SSA Office Code—must be numeric and may be all zeros 67 67 1 Payment Type Code—must be the capital letter “T” 68 117 50 Filler  The record format is a fixed length of 117. Can 1040x be filed electronically  The file format is ASCII. Can 1040x be filed electronically  Submit only one file at a time. Can 1040x be filed electronically   Table 3. Can 1040x be filed electronically Sample—Paper Listing for Reporting Special Wage Payments to Several Employees Report of Special Wage PaymentsTax Year: Page of A. Can 1040x be filed electronically Employer Name: EIN:   Address: Contact Name:     Phone: ( )   . Can 1040x be filed electronically 1) B. Can 1040x be filed electronically Employee Name: (Last) (First) (MI)   C. Can 1040x be filed electronically SSN: D. Can 1040x be filed electronically SWP:$ E. Can 1040x be filed electronically Type: Other: 2) B. Can 1040x be filed electronically Employee Name: (Last) (First) (MI)   C. Can 1040x be filed electronically SSN: D. Can 1040x be filed electronically SWP:$ E. Can 1040x be filed electronically Type: Other: 3) B. Can 1040x be filed electronically Employee Name: (Last) (First) (MI)   C. Can 1040x be filed electronically SSN: D. Can 1040x be filed electronically SWP:$ E. Can 1040x be filed electronically Type: Other: 4) B. Can 1040x be filed electronically Employee Name: (Last) (First) (MI)   C. Can 1040x be filed electronically SSN: D. Can 1040x be filed electronically SWP:$ E. Can 1040x be filed electronically Type: Other: 5) B. Can 1040x be filed electronically Employee Name: (Last) (First) (MI)   C. Can 1040x be filed electronically SSN: D. Can 1040x be filed electronically SWP:$ E. Can 1040x be filed electronically Type: Other:     INSTRUCTIONS:   Enter tax year and page number. Can 1040x be filed electronically   A. Can 1040x be filed electronically Employer name, employer identification number (EIN), address, the name of a contact person, and a phone number where the contact person can be reached during normal business hours. Can 1040x be filed electronically   B. Can 1040x be filed electronically Employee's name. Can 1040x be filed electronically   C. Can 1040x be filed electronically Employee's social security number (SSN). Can 1040x be filed electronically   D. Can 1040x be filed electronically Total amount of special wage payments made to the employee. Can 1040x be filed electronically   E. Can 1040x be filed electronically Type of special wage payment from the following list: (1) Vacation Pay, (2) Sick Pay, (3) Severance Pay,  (4) Bonus, (5) Deferred Compensation, (6) Stock Options, and (7) Other—Please explain. Can 1040x be filed electronically   Do not use a paper listing for nonqualified deferred compensation and section 457 plan deferrals and payments that could not be reported in block 11 of Form W-2. Can 1040x be filed electronically (Get Form SSA-131. Can 1040x be filed electronically )                 Prev  Up  Next   Home   More Online Publications