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

TurboTax Federal Free Edition - File Taxes Online

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

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


© 2012 - 2018 All rights reserved.

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

E File Tax Returns

1040ez TaxDidn't File Taxes Last Year760 State Tax Form 2013Free Filing State TaxesFederal Tax Forms For 2011File Federal Taxes Online For FreeState Taxes Online For FreeHow To Fill Out A 1040x Step By StepIrs Tax Forms 2011Free 1040ez FormsHow To File 1040ez Online For Free2013 1040ez Tax FormHr Block Free State Return2012 Tax Form 1040Files Taxes Online2011 Taxact Deluxe Unlock Code1040ez BookletFile My State Tax Return FreeFile 2011 Federal Tax Return1040x Tax Form For 2013Tax AmendE-file 1040ezFile A 1040x OnlineHow To File Taxes As A StudentFederal Tax Forms 20122012 Income Tax ReturnFree Tax FileTurbotax 2011 DownloadFiling 1040x Online FreeTurbo TaxHow To File Unemployment On Tax ReturnIncome State Tax FormsHrblock ComHow Do I File My 2010 TaxesFree 2007 Tax SoftwareTurbotax 2011Can You File 2011 Taxes OnlineTurbotax Amended Return 2012Amendment2011 1040

E File Tax Returns

E file tax returns Publication 51 - Main Content Table of Contents 1. E file tax returns Taxpayer Identification NumbersWhen you receive your EIN. E file tax returns Registering for SSNVS. E file tax returns 2. E file tax returns Who Are Employees?Crew Leaders Business Owned and Operated by Spouses 3. E file tax returns Wages and Other Compensation 4. E file tax returns Social Security and Medicare TaxesThe $150 Test or the $2,500 Test Social Security and Medicare Tax Withholding 5. E file tax returns Federal Income Tax WithholdingImplementation of lock-in letter. E file tax returns Seasonal employees and employees not currently performing services. E file tax returns Termination and re-hire of employees. E file tax returns How To Figure Federal Income Tax Withholding 6. E file tax returns Required Notice to Employees About Earned Income Credit (EIC) 7. E file tax returns Depositing TaxesWhen To Deposit How To Deposit Deposit Penalties Employers of Both Farm and Nonfarm Workers 8. E file tax returns Form 943 9. E file tax returns Reporting Adjustments on Form 943Current Year Adjustments Prior Year Adjustments 10. E file tax returns Federal Unemployment (FUTA) Tax 11. E file tax returns Reconciling Wage Reporting Forms 13. E file tax returns Federal Income Tax Withholding MethodsWage Bracket Method Percentage Method Alternative Methods of Federal Income Tax Withholding How To Get Tax Help 1. E file tax returns Taxpayer Identification Numbers If you are required to withhold any federal income, social security, or Medicare taxes, you will need an employer identification number (EIN) for yourself. E file tax returns Also, you will need the SSN of each employee and the name of each employee as shown on the employee's social security card. E file tax returns Employer identification number (EIN). E file tax returns   An employer identification number (EIN) is a nine-digit number that the IRS issues. E file tax returns The digits are arranged as follows: 00-0000000. E file tax returns It is used to identify the tax accounts of employers and certain others who have no employees. E file tax returns Use your EIN on all of the items that you send to the IRS and SSA. E file tax returns   If you do not have an EIN, you may apply for one online. E file tax returns Visit IRS. E file tax returns gov and click on the Apply for an EIN Online link under Tools. E file tax returns You may also apply for an EIN by calling 1-800-829-4933, or you can fax or mail Form SS-4, Application for Employer Identification Number, to the IRS. E file tax returns Do not use a SSN in place of an EIN. E file tax returns   If you do not have an EIN by the time a return is due, write “Applied For” and the date you applied for it in the space shown for the number. E file tax returns If you took over another employer's business, do not use that employer's EIN. E file tax returns   You should have only one EIN. E file tax returns If you have more than one, and are not sure which one to use, call the toll-free Business and Specialty Tax Line at 1-800-829-4933 or 1-800-829-4059 (TDD/TTY for persons who are deaf, hard of hearing, or have a speech disability). E file tax returns Provide the EINs that you have, the name and address to which each number was assigned, and the address of your principal place of business. E file tax returns The IRS will tell you which EIN to use. E file tax returns   For more information, see Publication 1635 or Publication 583. E file tax returns When you receive your EIN. E file tax returns   If you are a new employer that indicated a federal tax obligation when requesting an EIN, you will be pre-enrolled in the Electronic Federal Tax Payment System (EFTPS). E file tax returns You will receive information in your Employer Identification Number (EIN) Package about Express Enrollment and an additional mailing containing your EFTPS personal identification number (PIN) and instructions for activating your PIN. E file tax returns Call the toll-free number located in your “How to Activate Your Enrollment” brochure to activate your enrollment and begin making your employment tax deposits. E file tax returns If you outsource any of your payroll and related tax duties to a third party payer, such as a payroll service provider or reporting agent, be sure to tell them about your EFTPS enrollment. E file tax returns Social security number (SSN). E file tax returns   An employee's social security number (SSN) consists of nine digits arranged as follows: 000-00-0000. E file tax returns You must obtain each employee's name and SSN as shown on the employee's social security card because you must enter them on Form W-2. E file tax returns Do not accept a social security card that says “Not valid for employment. E file tax returns ” A social security number issued with this legend does not permit employment. E file tax returns You may, but are not required to, photocopy the social security card if the employee provides it. E file tax returns If you do not show the employee's correct name and SSN on Form W-2, you may owe a penalty unless you have reasonable cause. E file tax returns See Publication 1586, Reasonable Cause Regulations & Requirements for Missing and Incorrect Name/TINs. E file tax returns Applying for a social security card. E file tax returns   Any employee who is legally eligible to work in the United States and does not have a social security card can get one by completing Form SS-5, Application for a Social Security Card, and submitting the necessary documentation to SSA. E file tax returns You can get Form SS-5 at SSA offices, by calling 1-800-772-1213 or 1-800-325-0778 (TTY), or from the SSA website at www. E file tax returns socialsecurity. E file tax returns gov/online/ss-5. E file tax returns html. E file tax returns The employee must complete and sign Form SS-5; it cannot be filed by the employer. E file tax returns You may be asked to supply a letter to accompany Form SS-5 if the employee has exceeded his or her yearly or lifetime limit for the number of replacement cards allowed. E file tax returns Applying for a social security number. E file tax returns   If you file Form W-2 on paper and your employee has applied for an SSN but does not have one when you must file Form W-2, enter “Applied For” on the form. E file tax returns If you are filing electronically, enter all zeros (000-00-0000) in the social security number field. E file tax returns When the employee receives the SSN, file Copy A of Form W-2c, Corrected Wage and Tax Statement, with the SSA to show the employee's SSN. E file tax returns Furnish Copies B, C, and 2 of Form W-2c to the employee. E file tax returns Up to 25 Forms W-2c per Form W-3c, Transmittal of Corrected Wage and Tax Statements, may be filed per session over the Internet, with no limit on the number of sessions. E file tax returns For more information, visit SSA's Employer W-2 Filing Instructions & Information webpage at www. E file tax returns socialsecurity. E file tax returns gov/employer. E file tax returns Advise your employee to correct the SSN on his or her original Form W-2. E file tax returns Correctly record the employee's name and SSN. E file tax returns   Record the name and number of each employee as they are shown on the employee's social security card. E file tax returns If the employee's name is not correct as shown on the card (for example, because of marriage or divorce), the employee should request a corrected card from the SSA. E file tax returns Continue to report the employee's wages under the old name until the employee shows you an updated social security card with the new name. E file tax returns   If the SSA issues the employee a replacement card after a name change, or a new card with a different social security number after a change in alien work status, file a Form W-2c to correct the name/SSN reported on the most recently filed Form W-2. E file tax returns It is not necessary to correct other years if the previous name and SSN were used for years before the most recent Form W-2. E file tax returns IRS individual taxpayer identification numbers (ITINs) for aliens. E file tax returns   Do not accept an ITIN in place of an SSN for employee identification or for work. E file tax returns An ITIN is issued for use by resident and nonresident aliens who need identification for tax purposes, but who are not eligible for U. E file tax returns S. E file tax returns employment. E file tax returns The ITIN is a nine-digit number formatted like an SSN (for example, NNN-NN-NNNN). E file tax returns However, it begins with the number “9” and has either a “7” or “8” as the fourth digit (for example, 9NN-7N-NNNN or 9NN-8N-NNNN). E file tax returns    An individual with an ITIN who later becomes eligible to work in the United States must obtain an SSN. E file tax returns If the individual is currently eligible to work in the United States, instruct the individual to apply for an SSN and follow the instructions under Applying for a social security number, earlier in this section. E file tax returns Do not use an ITIN in place of an SSN on Form W-2. E file tax returns Verification of social security numbers. E file tax returns   Employers and authorized reporting agents can use the Social Security Number Verification Service (SSNVS) to instantly verify up to 10 employee names and SSNs (per screen) at a time, or submit an electronic file of up to 250,000 names and SSNs and usually receive results the next business day. E file tax returns Visit www. E file tax returns socialsecurity. E file tax returns gov/employer/ssnv. E file tax returns htm for more information. E file tax returns Registering for SSNVS. E file tax returns   You must register online and receive authorization from your employer to use SSNVS. E file tax returns To register, visit SSA's website at www. E file tax returns socialsecurity. E file tax returns gov/employer and click on the Business Services Online link. E file tax returns Follow the registration instructions to obtain a user identification (ID) and password. E file tax returns You will need to provide the following information about yourself and your company. E file tax returns Name. E file tax returns SSN. E file tax returns Date of birth. E file tax returns Type of employer. E file tax returns EIN. E file tax returns Company name, address, and telephone number. E file tax returns Email address. E file tax returns When you have completed the online registration process, SSA will mail a one-time activation code to your employer. E file tax returns You must enter the activation code online to use SSNVS. E file tax returns 2. E file tax returns Who Are Employees? Generally, employees are defined either under common law or under statutes for certain situations. E file tax returns See Publication 15-A for details on statutory employees and nonemployees. E file tax returns Employee status under common law. E file tax returns   Generally, a worker who performs services for you is your employee if you have the right to control what will be done and how it will be done. E file tax returns This is so even when you give the employee freedom of action. E file tax returns What matters is that you have the right to control the details of how the services are performed. E file tax returns See Publication 15-A for more information on how to determine whether an individual providing services is an independent contractor or an employee. E file tax returns If an employer-employee relationship exists, it does not matter what it is called. E file tax returns The employee may be called an agent or independent contractor. E file tax returns It also does not matter how payments are measured or paid, what they are called, or if the employee works full or part time. E file tax returns You are responsible for withholding and paying employment taxes for your employees. E file tax returns You are also required to file employment tax returns. E file tax returns These requirements do not apply to amounts that you pay to independent contractors. E file tax returns The rules discussed in this publication apply only to workers who are your employees. E file tax returns In general, you are an employer of farmworkers if your employees: Raise or harvest agricultural or horticultural products on your farm (including the raising and feeding of livestock); Work in connection with the operation, management, conservation, improvement, or maintenance of your farm and its tools and equipment; Provide services relating to salvaging timber, or clearing land of brush and other debris, left by a hurricane (also known as hurricane labor); Handle, process, or package any agricultural or horticultural commodity if you produced over half of the commodity (for a group of up to 20 unincorporated operators, all of the commodity); or Do work for you related to cotton ginning, turpentine, gum resin products, or the operation and maintenance of irrigation facilities. E file tax returns For this purpose, the term “farm” includes stock, dairy, poultry, fruit, fur-bearing animal, and truck farms, as well as plantations, ranches, nurseries, ranges, greenhouses or other similar structures used primarily for the raising of agricultural or horticultural commodities, and orchards. E file tax returns Farmwork does not include reselling activities that do not involve any substantial activity of raising agricultural or horticultural commodities, such as a retail store or a greenhouse used primarily for display or storage. E file tax returns The table in section 12, How Do Employment Taxes Apply to Farmwork , distinguishes between farm and nonfarm activities, and also addresses rules that apply in special situations. E file tax returns Crew Leaders If you are a crew leader, you are an employer of farmworkers. E file tax returns A crew leader is a person who furnishes and pays (either on his or her own behalf or on behalf of the farm operator) workers to do farmwork for the farm operator. E file tax returns If there is no written agreement between you and the farm operator stating that you are his or her employee and if you pay the workers (either for yourself or for the farm operator), then you are a crew leader. E file tax returns For FUTA tax rules, see section 10. E file tax returns Business Owned and Operated by Spouses If you and your spouse jointly own and operate a farm or nonfarm business and share in the profits and losses, you are partners in a partnership, whether or not you have a formal partnership agreement. E file tax returns See Publication 541, Partnerships, for more details. E file tax returns The partnership is considered the employer of any employees, and is liable for any employment taxes due on wages paid to its employees. E file tax returns Exception—Qualified joint venture. E file tax returns   For tax years beginning after December 31, 2006, the Small Business and Work Opportunity Tax Act of 2007 (Public Law 110-28) provides that a “qualified joint venture,” whose only members are spouses filing a joint income tax return, can elect not to be treated as a partnership for federal tax purposes. E file tax returns A qualified joint venture conducts a trade or business where: The only members of the joint venture are spouses who file a joint income tax return, Both spouses materially participate (see Material participation in the Instructions for Schedule C (Form 1040), line G) in the trade or business (mere joint ownership of property is not enough), Both spouses elect to not be treated as a partnership, and The business is co-owned by both spouses and is not held in the name of a state law entity such as a partnership or limited liability company (LLC). E file tax returns   To make the election, all items of income, gain, loss, deduction, and credit must be divided between the spouses, in accordance with each spouse's interest in the venture, and reported on separate Schedules C or F as sole proprietors. E file tax returns Each spouse must also file a separate Schedule SE to pay self-employment taxes, as applicable. E file tax returns   Spouses using the qualified joint venture rules are treated as sole proprietors for federal tax purposes and generally do not need an EIN. E file tax returns If employment taxes are owed by the qualified joint venture, either spouse may report and pay the employment taxes due on the wages paid to the employees using the EIN of that spouse's sole proprietorship. E file tax returns Generally, filing as a qualified joint venture will not increase the spouses' total tax owed on the joint income tax return. E file tax returns However, it gives each spouse credit for social security earnings on which retirement benefits are based and for Medicare coverage without filing a partnership return. E file tax returns    Note. E file tax returns If your spouse is your employee, not your partner, you must pay social security and Medicare taxes for him or her. E file tax returns   For more information on qualified joint ventures, visit IRS. E file tax returns gov and enter “qualified joint venture” in the search box. E file tax returns Exception—Community income. E file tax returns   If you and your spouse wholly own an unincorporated business as community property under the community property laws of a state, foreign country, or U. E file tax returns S. E file tax returns possession, you can treat the business either as a sole proprietorship (of the spouse who carried on the business) or a partnership. E file tax returns You may still make an election to be taxed as a qualified joint venture instead of a partnership. E file tax returns See Exception—Qualified joint venture , earlier in this section. E file tax returns 3. E file tax returns Wages and Other Compensation Cash wages that you pay to employees for farmwork are generally subject to social security tax and Medicare tax. E file tax returns You may also be required to withhold, deposit, and report Additional Medicare Tax. E file tax returns See section 4 for more information. E file tax returns If the wages are subject to social security and Medicare taxes, they are also subject to federal income tax withholding. E file tax returns You may also be liable for FUTA tax, which is not withheld by you or paid by the employee. E file tax returns FUTA tax is discussed in section 10. E file tax returns Cash wages include checks, money orders, etc. E file tax returns Do not count as cash wages the value of food, lodging, and other noncash items. E file tax returns For more information on what payments are considered taxable wages, see Publication 15 (Circular E). E file tax returns Commodity wages. E file tax returns   Commodity wages are not cash and are not subject to social security and Medicare taxes or federal income tax withholding. E file tax returns However, noncash payments, including commodity wages, are treated as cash wages (see above) if the substance of the transaction is a cash payment. E file tax returns These noncash payments are subject to social security and Medicare taxes and federal income tax withholding. E file tax returns Other compensation. E file tax returns   Publications 15-A and 15-B discuss other forms of compensation that may be taxable. E file tax returns Family members. E file tax returns   Generally, the wages that you pay to family members who are your employees are subject to social security and Medicare taxes, federal income tax withholding, and FUTA tax. E file tax returns However, certain exemptions may apply for your child, spouse, or parent. E file tax returns See the table, How Do Employment Taxes Apply to Farmwork , in section 12. E file tax returns Household employees. E file tax returns   The wages of an employee who performs household services, such as a maid, babysitter, gardener, or cook, in your home are not subject to social security and Medicare taxes if you pay that employee cash wages of less than $1,900 in 2014. E file tax returns   Social security and Medicare taxes do not apply to cash wages for housework in your private home if it was done by your spouse or your child under age 21. E file tax returns Nor do the taxes apply to housework done by your parent unless: You have a child living in your home who is under age 18 or has a physical or mental condition that requires care by an adult for at least 4 continuous weeks in a calendar quarter, and You are a widow or widower, or divorced and not remarried, or have a spouse in the home who, because of a physical or mental condition, cannot care for your child for at least 4 continuous weeks in the quarter. E file tax returns   For more information, see Publication 926, Household Employer's Tax Guide. E file tax returns    Wages for household work may not be a deductible farm expense. E file tax returns See Publication 225, Farmer's Tax Guide. E file tax returns Share farmers. E file tax returns   You do not have to withhold or pay social security and Medicare taxes on amounts paid to share farmers under share-farming arrangements. E file tax returns Compensation paid to H-2A visa holders. E file tax returns   Report compensation of $600 or more paid to foreign agricultural workers who entered the country on H-2A visas in box 1 of Form W-2 but do not report it as social security wages (box 3) or Medicare wages (box 5) on Form W-2 because compensation paid to H-2A workers for agricultural labor performed in connection with this visa is not subject to social security and Medicare taxes. E file tax returns On Form W-2, do not check box 13 (Statutory employee), as H-2A workers are not statutory employees. E file tax returns   An employer is not required to withhold federal income tax from compensation it pays an H-2A worker for agricultural labor performed in connection with this visa unless the worker asks for withholding and the employer agrees. E file tax returns In that case, the worker must give the employer a completed Form W-4. E file tax returns Federal income tax withheld should be reported in box 2 of Form W-2. E file tax returns These reporting rules apply when the H-2A worker provides his or her taxpayer identification number (TIN) to the employer. E file tax returns For rules relating to backup withholding and reporting when the H-2A worker does not provide a TIN, see the Instructions for Form 1099-MISC and the Instructions for Form 945. E file tax returns 4. E file tax returns Social Security and Medicare Taxes Generally, you must withhold social security and Medicare taxes on all cash wage payments that you make to your employees. E file tax returns You may also be required to withhold Additional Medicare Tax. E file tax returns For more information, see Additional Medicare Tax withholding , later. E file tax returns The $150 Test or the $2,500 Test All cash wages that you pay to an employee during the year for farmwork are subject to social security and Medicare taxes and federal income tax withholding if either of the two tests below is met. E file tax returns You pay cash wages to an employee of $150 or more in a year for farmwork (count all cash wages paid on a time, piecework, or other basis). E file tax returns The $150 test applies separately to each farmworker that you employ. E file tax returns If you employ a family of workers, each member is treated separately. E file tax returns Do not count wages paid by other employers. E file tax returns The total that you pay for farmwork (cash and noncash) to all your employees is $2,500 or more during the year. E file tax returns Exceptions. E file tax returns   The $150 and $2,500 tests do not apply to wages that you pay to a farmworker who receives less than $150 in annual cash wages and the wages are not subject to social security and Medicare taxes, or federal income tax withholding, even if you pay $2,500 or more in that year to all of your farmworkers if the farmworker: Is employed in agriculture as a hand-harvest laborer, Is paid piece rates in an operation that is usually paid on a piece-rate basis in the region of employment, Commutes daily from his or her permanent home to the farm, and Had been employed in agriculture less than 13 weeks in the preceding calendar year. E file tax returns   Amounts that you pay to these seasonal farmworkers, however, count toward the $2,500-or-more test to determine whether wages that you pay to other farmworkers are subject to social security and Medicare taxes. E file tax returns Social Security and Medicare Tax Withholding The social security tax rate is 6. E file tax returns 2%, for both the employee and employer, on the first $117,000 paid to each employee. E file tax returns You must withhold at this rate from each employee and pay a matching amount. E file tax returns The Medicare tax rate is 1. E file tax returns 45% each for the employee and employer on all wages. E file tax returns You must withhold at this rate from each employee and pay a matching amount. E file tax returns There is no wage base limit for Medicare tax; all covered wages are subject to Medicare tax. E file tax returns Social security and Medicare taxes apply to most payments of sick pay, including payments made by third parties such as insurance companies. E file tax returns For details, see Publication 15-A. E file tax returns Additional Medicare Tax withholding. E file tax returns   In addition to withholding Medicare tax at 1. E file tax returns 45%, you must withhold a 0. E file tax returns 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. E file tax returns You are required to begin withholding Additional Medicare Tax in the pay period in which you pay wages in excess of $200,000 to an employee and continue to withhold it each pay period until the end of the calendar year. E file tax returns Additional Medicare Tax is only imposed on the employee. E file tax returns There is no employer share of Additional Medicare Tax. E file tax returns All wages that are subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 withholding threshold. E file tax returns   For more information on what wages are subject to Medicare tax, see the chart, Special Rules for Various Types of Services and Payments, in section 15 of Publication 15 (Circular E). E file tax returns For more information on Additional Medicare Tax, visit IRS. E file tax returns gov and enter “Additional Medicare Tax” in the search box. E file tax returns Employee share paid by employer. E file tax returns   If you would rather pay a household or agricultural employee's share of the social security and Medicare taxes without withholding them from his or her wages, you may do so. E file tax returns If you do not withhold the taxes, however, you must still pay them. E file tax returns Any employee social security and Medicare taxes that you pay is additional income to the employee. E file tax returns Include it in box 1 of the employee's Form W-2, but do not count it as social security and Medicare wages and do not include it in boxes 3 and 5. E file tax returns Also, do not count the additional income as wages for FUTA tax purposes. E file tax returns Different rules apply to employer payments of social security and Medicare taxes for non-household and non-agricultural employees. E file tax returns See section 7 of Publication 15-A. E file tax returns Withholding social security and Medicare taxes on nonresident alien employees. E file tax returns   In general, if you pay wages to nonresident alien employees, you must withhold social security and Medicare taxes as you would for a U. E file tax returns S. E file tax returns citizen or resident alien. E file tax returns However, see Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities, for exceptions to this general rule. E file tax returns Also see Compensation paid to H-2A visa holders in section 3. E file tax returns Religious exemption. E file tax returns    An exemption from social security and Medicare taxes is available to members of a recognized religious sect opposed to public insurance. E file tax returns This exemption is available only if both the employee and the employer are members of the sect. E file tax returns   For more information, see Publication 517, Social Security and Other Information for Members of the Clergy and Religious Workers. E file tax returns 5. E file tax returns Federal Income Tax Withholding Farmers and crew leaders must withhold federal income tax from the wages of farmworkers if the wages are subject to social security and Medicare taxes. E file tax returns The amount to withhold is figured on gross wages before taking out social security and Medicare taxes, union dues, insurance, etc. E file tax returns You may use one of several methods to determine the amount of federal income tax withholding. E file tax returns They are discussed in section 13. E file tax returns Form W-4. E file tax returns   To know how much federal income tax to withhold from employees' wages, you should have a Form W-4 on file for each employee. E file tax returns Encourage your employees to file an updated Form W-4 for 2014, especially if they owed taxes or received a large refund when filing their 2013 tax return. E file tax returns Advise your employees to use the IRS Withholding Calculator on the IRS website at www. E file tax returns irs. E file tax returns gov/individuals for help in determining how many withholding allowances to claim on their Form W-4. E file tax returns   Ask each new employee to give you a signed Form W-4 when starting work. E file tax returns Make the form effective with the first wage payment. E file tax returns If a new employee does not give you a completed Form W-4, withhold tax as if he or she is single, with no withholding allowances. E file tax returns Forms in Spanish. E file tax returns   You can provide Formulario W-4(SP) in place of Form W-4 to your Spanish-speaking employees. E file tax returns For more information, see Publicación 17(SP). E file tax returns Effective date of Form W-4. E file tax returns   A Form W-4 remains in effect until the employee gives you a new one. E file tax returns When you receive a new Form W-4, do not adjust withholding for pay periods before the effective date of the new form. E file tax returns Do not adjust withholding retroactively. E file tax returns If an employee gives you a replacement Form W-4, begin withholding no later than the start of the first payroll period ending on or after the 30th day from the date when you received the replacement Form W-4. E file tax returns For exceptions, see Exemption from federal income tax withholding , IRS review of requested Forms W-4 , and Invalid Forms W-4 , later in this section. E file tax returns A Form W-4 that makes a change for the next calendar year will not take effect in the current calendar year. E file tax returns Completing Form W-4. E file tax returns   The amount of federal income tax withholding is based on marital status and withholding allowances. E file tax returns Your employees may not base their withholding amounts on a fixed dollar amount or percentage. E file tax returns However, the employee may specify a dollar amount to be withheld in addition to the amount of withholding based on filing status and withholding allowances claimed on Form W-4. E file tax returns   Employees may claim fewer withholding allowances than they are entitled to claim. E file tax returns They may do this to ensure that they have enough withholding or to offset other sources of taxable income that are not subject to withholding. E file tax returns   See Publication 505, Tax Withholding and Estimated Tax, for more information about completing Form W-4. E file tax returns Along with Form W-4, you may wish to order Publication 505 for use by your employees. E file tax returns    Do not accept any withholding or estimated tax payments from your employees in addition to withholding based on their Form W-4. E file tax returns If an employee wants additional withholding, he or she should submit a new Form W-4 and, if necessary, pay estimated tax by filing Form 1040-ES, Estimated Tax for Individuals, or by using the Electronic Federal Tax Payment System (EFTPS) to make estimated tax payments. E file tax returns Exemption from federal income tax withholding. E file tax returns   Generally, an employee may claim exemption from federal income tax withholding because he or she had no federal income tax liability last year and expects none this year. E file tax returns See the Form W-4 instructions for more information. E file tax returns However, the wages are still subject to social security and Medicare taxes. E file tax returns   A Form W-4 claiming exemption from withholding is effective when it is filed with the employer and only for that calendar year. E file tax returns To continue to be exempt from withholding in the next calendar year, an employee must give you a new Form W-4 by February 15. E file tax returns If the employee does not give you a new Form W-4 by February 15, withhold tax based on the last valid Form W-4 you have for the employee that did not claim an exemption from withholding or, if one does not exist, withhold as if he or she is single with zero withholding allowances. E file tax returns If the employee provides a new Form W-4 claiming an exemption from withholding on February 16 or later, you may apply the exemption to future wages, but do not refund taxes withheld while the exempt status was not in place. E file tax returns Withholding income taxes on the wages of nonresident alien employees. E file tax returns   In general, you must withhold federal income taxes on the wages of nonresident alien employees. E file tax returns However, see Publication 515 for exceptions to this general rule. E file tax returns Also see Compensation paid to H-2A visa workers in section 3. E file tax returns Withholding adjustment for nonresident alien employees. E file tax returns   A special procedure applies for figuring the amount of income tax to withhold from wages of nonresident alien employees performing services within the United States for wages paid in 2014. E file tax returns This procedure requires a special chart to be used with the withholding tables to determine the amount to withhold from the wages of the nonresident alien employee. E file tax returns See Withholding adjustment for nonresident alien employees in section 9 of Publication 15 (Circular E). E file tax returns Nonresident alien employee's Form W-4. E file tax returns   When completing Forms W-4, nonresident aliens are required to: Not claim exemption from income tax withholding; Request withholding as if they are single, regardless of their actual marital status; Claim only one allowance (if the nonresident alien is a resident of Canada, Mexico, or Korea, he or she may claim more than one allowance); and Write “Nonresident Alien” or “NRA” above the dotted line on line 6 of Form W-4. E file tax returns   If you maintain an electronic Form W-4 system, you should provide a field for nonresident alien employees to enter nonresident alien status in lieu of writing “Nonresident Alien” or “NRA” above the dotted line on line 6. E file tax returns    A nonresident alien employee may request additional withholding at his or her option for other purposes, although such additions should not be necessary for withholding to cover federal income tax liability related to employment. E file tax returns Form 8233. E file tax returns   If a nonresident alien employee claims a tax treaty exemption from withholding, the employee must submit Form 8233, Exemption from Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual, with respect to the income exempt under the treaty, instead of Form W-4. E file tax returns See Publication 515 for details. E file tax returns IRS review of requested Forms W-4. E file tax returns   When requested by the IRS, you must make original Forms W-4 available for inspection by an IRS employee. E file tax returns You may also be directed to send certain Forms W-4 to the IRS. E file tax returns You may receive a notice from the IRS requiring you to submit a copy of Form W-4 for one or more of your named employees. E file tax returns Send the requested copy or copies of Form W-4 to the IRS at the address provided and in the manner directed by the notice. E file tax returns The IRS may also require you to submit copies of Form W-4 to the IRS as directed by a revenue procedure or notice published in the Internal Revenue Bulletin. E file tax returns When we refer to Form W-4, the same rules apply to Formulario W-4(SP), its Spanish translation. E file tax returns   After submitting a copy of the requested Form W-4 to the IRS, continue to withhold federal income tax based on that Form W-4 if it is valid (see Invalid Forms W-4 , later in this section). E file tax returns However, if the IRS later notifies you in writing that the employee is not entitled to claim a complete exemption from withholding or more than the maximum number of withholding allowances specified by the IRS in the written notice, withhold federal income tax based on the effective date, marital status, and maximum number of withholding allowances specified in the notice (commonly referred to as a “lock-in letter”). E file tax returns Initial lock-in letter. E file tax returns   The IRS uses information reported on Form W-2 to identify employees with withholding compliance problems. E file tax returns In some cases, where a serious under-withholding problem is found to exist for a particular employee, the IRS may issue a lock-in letter to the employer specifying the maximum number of withholding allowances and marital status permitted for a specific employee. E file tax returns You will also receive a copy for the employee that identifies the maximum number of withholding allowances permitted and the process by which the employee can provide additional information to the IRS for purposes of determining the appropriate number of withholding allowances. E file tax returns If the employee is employed by you as of the date of the notice, you must furnish the employee copy to the employee within 10 business days of receipt. E file tax returns You may follow any reasonable business practice to furnish the employee copy to the employee. E file tax returns Implementation of lock-in letter. E file tax returns   When you receive the notice specifying the maximum number of withholding allowances and marital status permitted, you may not withhold immediately on the basis of the notice. E file tax returns You must begin withholding tax on the basis of the notice for any wages paid after the date specified in the notice. E file tax returns The delay between your receipt of the notice and the date to begin the withholding on the basis of the notice permits the employee to contact the IRS. E file tax returns Seasonal employees and employees not currently performing services. E file tax returns   If you receive a notice for an employee who is not currently performing services for you, you are still required to furnish the employee copy to the employee and withhold based on the notice if any of the following apply. E file tax returns You are paying wages for the employee's prior services and the wages are subject to income tax withholding on or after the date specified in the notice. E file tax returns You reasonably expect the employee to resume services within 12 months of the date of the notice. E file tax returns The employee is on a bona fide leave of absence that does not exceed 12 months or the employee has a right to reemployment after the leave of absence. E file tax returns Termination and re-hire of employees. E file tax returns   If you are required to furnish and withhold based on the notice and the employment relationship is terminated after the date of the notice, you must continue to withhold based on the notice if you continue to pay any wages subject to income tax withholding. E file tax returns You must also withhold based on the notice or modification notice (explained next) if the employee resumes the employment relationship with you within 12 months after the termination of the employment relationship. E file tax returns Modification notice. E file tax returns   After issuing the notice specifying the maximum number of withholding allowances and marital status permitted, the IRS may issue a subsequent notice (modification notice) that modifies the original notice. E file tax returns The modification notice may change the marital status and/or the number of withholding allowances permitted. E file tax returns You must withhold federal income tax based on the effective date specified in the modification notice. E file tax returns New Form W-4 after IRS notice. E file tax returns   After the IRS issues a notice or modification notice, if the employee provides you with a new Form W-4 claiming complete exemption from withholding or claims a marital status, a number of withholding allowances, and any additional withholding that results in less withholding than would result under the IRS notice or modification notice, you must disregard the new Form W-4. E file tax returns You are required to withhold on the basis of the notice or modification notice unless the IRS subsequently notifies you to withhold based on the new Form W-4. E file tax returns If the employee wants to put a new Form W-4 into effect that results in less withholding than required, the employee must contact the IRS. E file tax returns   If, after you receive an IRS notice or modification notice, your employee provides you with a new Form W-4 that does not claim exemption from federal income tax withholding and claims a marital status, a number of withholding allowances, and any additional withholding that results in more withholding than would result under the notice or modification notice, you must withhold tax on the basis of that new Form W-4. E file tax returns Otherwise, disregard any subsequent Forms W-4 provided by the employee and withhold based on the IRS notice or modification notice. E file tax returns Substitute Forms W-4. E file tax returns   You are encouraged to have your employees use the official version of Form W-4 to claim withholding allowances or exemption from withholding. E file tax returns Call the IRS at 1-800-TAX-FORM (1-800-829-3676) or visit IRS. E file tax returns gov to obtain copies of Form W-4. E file tax returns   You may use a substitute version of Form W-4 to meet your business needs. E file tax returns However, your substitute Form W-4 must contain language that is identical to the official Form W-4 and your form must meet all current IRS rules for substitute forms. E file tax returns At the time that you provide your substitute form to the employee, you must provide him or her with all tables, instructions, and worksheets from the current Form W-4. E file tax returns   You cannot accept a substitute Form W-4 developed by an employee, and the employee submitting such form will be treated as failing to furnish a Form W-4. E file tax returns However, continue to use any valid Forms W-4 developed by your employees that you accepted before October 11, 2007. E file tax returns Invalid Forms W-4. E file tax returns   Any unauthorized change or addition to Form W-4 makes it invalid. E file tax returns This includes taking out any language by which the employee certifies that the form is correct. E file tax returns A Form W-4 is also invalid if, by the date an employee gives it to you, he or she indicates in any way that it is false. E file tax returns An employee who submits a false Form W-4 may be subject to a $500 penalty. E file tax returns You may treat a Form W-4 as invalid if the employee wrote “exempt” on line 7 and also entered a number on line 5 or an amount on line 6. E file tax returns   When you get an invalid Form W-4, do not use it to figure federal income tax withholding. E file tax returns Tell the employee that it is invalid and ask for another one. E file tax returns If the employee does not give you a valid one, withhold taxes as if the employee was single and claiming no withholding allowances. E file tax returns However, if you have an earlier Form W-4 for this worker that is valid, withhold as you did before. E file tax returns   For additional information about these rules, see Treasury Decision 9337, 2007-35 I. E file tax returns R. E file tax returns B. E file tax returns 455, available at www. E file tax returns irs. E file tax returns gov/irb/2007-35_IRB/ar10. E file tax returns html. E file tax returns Amounts exempt from levy on wages, salary, and other income. E file tax returns   If you receive a Notice of Levy on Wages, Salary, and Other Income—Forms 668-W(ACS), 668-W(c)(DO), or 668-W(ICS), you must withhold amounts as described in the instructions for these forms. E file tax returns Publication 1494, Tables for Figuring Amount Exempt From Levy on Wages, Salary, and Other Income—Forms 668-W(ACS), 668-W(c)(DO), and 668-W(ICS), shows the exempt amount. E file tax returns If a levy issued in a prior year is still in effect and the taxpayer submits a new Statement of Exemptions and Filing Status, use the current year Publication 1494 to compute the exempt amount. E file tax returns How To Figure Federal Income Tax Withholding There are several ways to figure federal income tax withholding. E file tax returns Wage bracket tables. E file tax returns See section 13 for directions on how to use the tables. E file tax returns Percentage method. E file tax returns See section 13 for directions on how to use the percentage method. E file tax returns Alternative formula tables for percentage method withholding. E file tax returns See Publication 15-A. E file tax returns Wage bracket percentage method withholding tables. E file tax returns See Publication 15-A. E file tax returns Other alternative methods. E file tax returns See Publication 15-A. E file tax returns Employers with automated payroll systems will find the two alternative formula tables and the two alternative wage bracket percentage method tables in Publication 15-A useful. E file tax returns If an employee wants additional federal tax withheld, have the employee show the extra amount on Form W-4. E file tax returns Supplemental wages. E file tax returns   Supplemental wages are wage payments to an employee that are not regular wages. E file tax returns They include, but are not limited to, bonuses, commissions, overtime pay, accumulated sick leave, severance pay, awards, prizes, back pay and retroactive pay increases for current employees, and payments for nondeductible moving expenses. E file tax returns Other payments subject to the supplemental wage rules include taxable fringe benefits and expense allowances paid under a nonaccountable plan. E file tax returns   If you pay supplemental wages with regular wages but do not specify the amount of each, withhold federal income tax as if the total was a single payment for a regular payroll period. E file tax returns   If you pay supplemental wages separately (or combine them in a single payment and specify the amount of each), the federal income tax withholding method depends partly on whether you withhold federal income tax from your employee's regular wages. E file tax returns If you withheld federal income tax from an employee's regular wages in the current or immediately preceding calendar year, you can use one of the following methods for the supplemental wages. E file tax returns Withhold a flat 25% (no other percentage allowed). E file tax returns If the supplemental wages are paid concurrently with regular wages, add the supplemental wages to the concurrently paid regular wages. E file tax returns If there are no concurrently paid regular wages, add the supplemental wages to alternatively, either the regular wages paid or to be paid for the current payroll period or the regular wages paid for the preceding payroll period. E file tax returns Figure the income tax withholding as if the total of the regular wages and supplemental wages is a single payment. E file tax returns Subtract the tax withheld from the regular wages. E file tax returns Withhold the remaining tax from the supplemental wages. E file tax returns If there were other payments of supplemental wages paid during the payroll period made before the current payment of supplemental wages, aggregate all the payments of supplemental wages paid during the payroll period with the regular wages paid during the payroll period, calculate the tax on the total, subtract the tax already withheld from the regular wages and previous supplemental wage payments, and withhold the remaining tax from the current payment of supplemental wages. E file tax returns If you did not withhold federal income tax from the employee's regular wages in the current or immediately preceding calendar year, use method 1-b above. E file tax returns This would occur, for example, when the value of the employee's withholding allowances claimed on Form W-4 is more than the wages. E file tax returns    Separate rules apply to any supplemental wages exceeding $1 million that you pay to an individual during the year. E file tax returns See section 7 in Publication 15 (Circular E) for details. E file tax returns   Regardless of the method that you use to withhold federal income tax on supplemental wages, they are generally subject to social security, Medicare, and FUTA taxes. E file tax returns 6. E file tax returns Required Notice to Employees About Earned Income Credit (EIC) You must notify employees who have no federal income tax withheld that they may be able to claim a tax refund because of the EIC. E file tax returns Although you do not have to notify employees who claim exemption from withholding on Form W-4 about the EIC, you are encouraged to notify any employees whose wages for 2013 were less than $46,227 ($51,567 if married filing jointly) that they may be eligible to claim the credit for 2013. E file tax returns This is because eligible employees may get a refund of the amount of EIC that is more than the tax that they owe. E file tax returns You will meet the notification requirement if you issue to the employee Form W-2 with the EIC notice on the back of Copy B, or a substitute Form W-2 with the same statement. E file tax returns You may also meet the requirement by providing Notice 797, Possible Federal Tax Refund Due to the Earned Income Credit (EIC), or your own statement that contains the same wording. E file tax returns If a substitute Form W-2 is given to the employee on time but does not have the required statement, you must notify the employee within 1 week of the date that the substitute Form W-2 is given. E file tax returns If Form W-2 is required but is not given on time, you must give the employee Notice 797 or your written statement by the date that Form W-2 is required to be given. E file tax returns If Form W-2 is not required, you must notify the employee by February 7, 2014. E file tax returns 7. E file tax returns Depositing Taxes Generally, you must deposit both the employer and employee shares of social security and Medicare taxes and federal income tax withheld. E file tax returns You must use electronic funds transfer to make all federal tax deposits. E file tax returns See How To Deposit , later in this section. E file tax returns The credit against employment taxes for COBRA premium assistance payments is treated as a deposit of taxes on the first day of your return period. E file tax returns For more information, see COBRA premium assistance credit under Introduction. E file tax returns Payment with return. E file tax returns   You may make payments with Forms 943 or 945 instead of depositing if one of the following applies. E file tax returns You report less than a $2,500 tax liability for the year (Form 943, line 11; Form 945, line 3) and you pay in full with a return that is filed on time. E file tax returns However, if you are unsure that you will report less than $2,500, deposit under the rules explained in this section so that you will not be subject to failure-to-deposit penalties. E file tax returns You are a monthly schedule depositor and make a payment in accordance with the Accuracy of Deposits Rule discussed later in this section. E file tax returns This payment may be $2,500 or more. E file tax returns Only monthly schedule depositors, defined later, are allowed to make an Accuracy of Deposits Rule payment with the return. E file tax returns Semiweekly schedule depositors must timely deposit the amount. E file tax returns See Accuracy of Deposits Rule and How To Deposit, later in this section. E file tax returns When To Deposit If you employ both farm and nonfarm workers, do not combine the taxes reportable on Forms 941 or 944 with Form 943 to decide whether to make a deposit. E file tax returns See Employers of Both Farm and Nonfarm Workers, later in this section. E file tax returns The rules for determining when to deposit Form 943 taxes are discussed below. E file tax returns See section 10 for the separate rules that apply to FUTA tax. E file tax returns Under these rules, you are classified as either a monthly schedule depositor or a semiweekly schedule depositor. E file tax returns The terms “monthly schedule depositor” and “semiweekly schedule depositor” do not refer to how often your business pays its employees or how often you are required to make deposits. E file tax returns The terms identify which set of rules you must follow when you incur a tax liability (for example, when you have a payday). E file tax returns The deposit schedule that you must use for a calendar year is determined from the tax liability reported on your Form 943, line 9, for the lookback period, discussed next. E file tax returns If you reported $50,000 or less of Form 943 taxes for the lookback period, you are a monthly schedule depositor. E file tax returns If you reported more than $50,000 of Form 943 taxes for the lookback period, you are a semiweekly schedule depositor. E file tax returns Lookback period. E file tax returns   The lookback period is the second calendar year preceding the current calendar year. E file tax returns For example, the lookback period for 2014 is 2012. E file tax returns Example of deposit schedule based on lookback period. E file tax returns Rose Co. E file tax returns reported taxes on Form 943 as follows. E file tax returns 2012 — $48,000 2013 — $60,000 Rose Co. E file tax returns is a monthly schedule depositor for 2014 because its taxes for the lookback period ($48,000 for calendar year 2012) were not more than $50,000. E file tax returns However, for 2015, Rose Co. E file tax returns is a semiweekly schedule depositor because the total taxes before adjustment for its lookback period ($60,000 for calendar year 2013) exceeded $50,000. E file tax returns Adjustments to lookback period taxes. E file tax returns   To determine your taxes for the lookback period, use only the tax that you reported on the original return (Form 943, line 9). E file tax returns Do not include adjustments shown on Form 943-X, Adjusted Employer's Annual Federal Tax Return for Agricultural Employees or Claim for Refund. E file tax returns Example of adjustments. E file tax returns An employer originally reported total tax of $45,000 for the lookback period in 2012. E file tax returns The employer discovered during March 2014 that the tax reported for the lookback period was understated by $10,000 and corrected this error by filing Form 943-X. E file tax returns The total tax reported in the lookback period is still $45,000. E file tax returns The $10,000 adjustment is also not treated as part of the 2014 taxes. E file tax returns Deposit period. E file tax returns   The term “deposit period” refers to the period during which tax liabilities are accumulated for each required deposit due date. E file tax returns For monthly schedule depositors, the deposit period is a calendar month. E file tax returns The deposit periods for semiweekly schedule depositors are Wednesday through Friday and Saturday through Tuesday. E file tax returns Monthly Deposit Schedule If the tax liability reported on Form 943, line 9, for the lookback period is $50,000 or less, you are a monthly schedule depositor for the current year. E file tax returns You must deposit Form 943 taxes on payments made during a calendar month by the 15th day of the following month. E file tax returns Monthly schedule example. E file tax returns   Red Co. E file tax returns is a seasonal employer and a monthly schedule depositor. E file tax returns It pays wages each Friday. E file tax returns It paid wages during August 2014, but did not pay any wages during September. E file tax returns Red Co. E file tax returns must deposit the combined tax liabilities for the August paydays by September 15. E file tax returns Red Co. E file tax returns does not have a deposit requirement for September (that is, due by October 15, 2014) because no wages were paid in September; therefore, it did not have a tax liability for September. E file tax returns New employers. E file tax returns   For agricultural employers, your tax liability for any year in the lookback period before the date you started or acquired your business is considered to be zero. E file tax returns Therefore, you are a monthly schedule depositor for the first and second calendar years of your agricultural business (but see the $100,000 Next-Day Deposit Rule , later in this section). E file tax returns Semiweekly Deposit Schedule You are a semiweekly schedule depositor for a calendar year if the tax liability on Form 943, line 9, during your lookback period was more than $50,000. E file tax returns Under the semiweekly deposit schedule, deposit Form 943 taxes for payments made on Wednesday, Thursday, and/or Friday by the following Wednesday. E file tax returns Deposit amounts accumulated for payments made on Saturday, Sunday, Monday, and/or Tuesday by the following Friday. E file tax returns Semiweekly depositors are not required to deposit twice a week if their payments were in the same semiweekly period unless the $100,000 Next-Day Deposit Rule (discussed later in this section) applies. E file tax returns For example, if you made a payment on both Wednesday and Friday and incurred taxes of $10,000 for each pay date, deposit the $20,000 by the following Wednesday. E file tax returns If you made no additional payments on Saturday through Tuesday, no deposit is due on Friday. E file tax returns Semiweekly schedule depositors must complete Form 943-A, Agricultural Employer's Record of Federal Tax Liability, and submit it with Form 943. E file tax returns Semiweekly Deposit Schedule IF the payday falls on a. E file tax returns . E file tax returns . E file tax returns THEN deposit taxes by the following. E file tax returns . E file tax returns . E file tax returns Wednesday, Thursday, and/or Friday Wednesday Saturday, Sunday, Monday, and/or Tuesday Friday Semiweekly schedule example. E file tax returns   Green, Inc. E file tax returns , is a semiweekly schedule depositor and pays wages once each month on the last Friday of the month. E file tax returns Green, Inc. E file tax returns , will deposit only once a month, but the deposit will be made under the semiweekly deposit schedule as follows. E file tax returns Green, Inc. E file tax returns 's tax liability for the April 25, 2014 (Friday), wage payment must be deposited by April 30, 2014 (Wednesday). E file tax returns Semiweekly deposit period spanning two quarters. E file tax returns   If you have more than one pay date during a semiweekly period and the pay dates fall in different calendar quarters, you will need to make separate deposits for the separate liabilities. E file tax returns For example, if you have a pay date on Monday, March 31, 2014 (first quarter), and another pay date on Tuesday, April 1, 2014 (second quarter), two separate deposits will be required even though the pay dates fall within the same semiweekly period. E file tax returns Both deposits will be due Friday, April 4, 2014 (3 business days from the end of the semiweekly deposit period). E file tax returns Deposits on Business Days Only If a deposit is required to be made on a day that is not a business day, the deposit is considered timely if it is made by the close of the next business day. E file tax returns A business day is any day other than a Saturday, Sunday, or legal holiday. E file tax returns For example, if a deposit is required to be made on Friday and Friday is a legal holiday, the deposit is considered timely if it is made by the following Monday (if Monday is a business day). E file tax returns Semiweekly schedule depositors   will always have 3 business days to make a deposit. E file tax returns That is, if any of the 3 weekdays after the end of a semiweekly period is a legal holiday, you will have an additional day for each day that is a legal holiday to make the deposit. E file tax returns For example, if a semiweekly schedule depositor accumulated taxes on Friday and the following Monday is a legal holiday, the deposit normally due on Wednesday may be made on Thursday (this allows 3 business days to make the deposit). E file tax returns Legal holiday. E file tax returns   The term “legal holiday” means any legal holiday in the District of Columbia. E file tax returns Legal holidays for 2014 are listed below. E file tax returns January 1— New Year's Day January 20— Birthday of Martin Luther King, Jr. E file tax returns February 17— Washington's Birthday April 16— District of Columbia Emancipation Day May 26— Memorial Day July 4— Independence Day September 1— Labor Day October 13— Columbus Day November 11— Veterans' Day November 27— Thanksgiving Day December 25— Christmas Day $100,000 Next-Day Deposit Rule If you accumulate $100,000 or more of Form 943 taxes (that is, taxes reported on Form 943, line 11) on any day during a deposit period, you must deposit the tax by the close of the next business day, whether you are a monthly or a semiweekly schedule depositor. E file tax returns For purposes of the $100,000 rule, do not continue accumulating a tax liability after the end of a deposit period. E file tax returns For example, if a semiweekly schedule depositor has accumulated a liability of $95,000 on a Tuesday (of a Saturday-through-Tuesday deposit period) and accumulated a $10,000 liability on Wednesday, the $100,000 next-day deposit rule does not apply because the $10,000 is accumulated in the next deposit period. E file tax returns Thus, $95,000 must be deposited by Friday and $10,000 must be deposited by the following Wednesday. E file tax returns However, once you accumulate at least $100,000 in a deposit period, stop accumulating at the end of that day and begin to accumulate anew on the next day. E file tax returns For example, Fir Co. E file tax returns is a semiweekly schedule depositor. E file tax returns On Monday, Fir Co. E file tax returns accumulates taxes of $110,000 and must deposit this amount on Tuesday, the next business day. E file tax returns On Tuesday, Fir Co. E file tax returns accumulates additional taxes of $30,000. E file tax returns Because the $30,000 is not added to the previous $110,000 and is less than $100,000, Fir Co. E file tax returns does not have to deposit the $30,000 until Friday (following the semiweekly deposit schedule). E file tax returns If you are a monthly schedule depositor and you accumulate a $100,000 tax liability on any day, you become a semiweekly schedule depositor on the next day and remain so for at least the rest of the calendar year and for the following calendar year. E file tax returns Example of the $100,000 next-day deposit rule. E file tax returns   Elm, Inc. E file tax returns , started its business on May 1, 2014. E file tax returns Because Elm, Inc. E file tax returns , is a new employer, the taxes for its lookback period are considered to be zero; therefore, Elm, Inc. E file tax returns , is a monthly schedule depositor. E file tax returns On May 8, Elm, Inc. E file tax returns , paid wages for the first time and accumulated taxes of $50,000. E file tax returns On May 9 (Friday), Elm, Inc. E file tax returns , paid wages and accumulated taxes of $60,000, for a total of $110,000. E file tax returns Because Elm, Inc. E file tax returns , accumulated $110,000 on May 9, it must deposit $110,000 by May 12 (Monday), the next business day. E file tax returns Elm, Inc. E file tax returns , became a semiweekly schedule depositor on May 10. E file tax returns It will be a semiweekly schedule depositor for the remainder of 2014 and for 2015. E file tax returns Accuracy of Deposits Rule You are required to deposit 100% of your tax liability on or before the deposit due date. E file tax returns However, penalties will not be applied for depositing less than 100% if both of the following conditions are met. E file tax returns Any deposit shortfall does not exceed the greater of $100 or 2% of the amount of taxes otherwise required to be deposited. E file tax returns The deposit shortfall is paid or deposited by the shortfall makeup date as described below. E file tax returns Makeup Date for Deposit Shortfall:    Monthly Schedule Depositor—Deposit the shortfall or pay it with your return by the due date of your Form 943. E file tax returns You may pay the shortfall with your Form 943 even if the amount is $2,500 or more. E file tax returns Semiweekly Schedule Depositor—Deposit by the earlier of (a) the first Wednesday or Friday (whichever comes first) that falls on or after the 15th of the month following the month in which the shortfall occurred, or (b) the due date for Form 943. E file tax returns For example, if a semiweekly schedule depositor has a deposit shortfall during February 2014, the shortfall makeup date is March 19, 2014 (Wednesday). E file tax returns How To Deposit You must deposit employment taxes by electronic funds transfer. E file tax returns See Payment with return , earlier in this section, for exceptions explaining when taxes may be paid with the tax return instead of being deposited. E file tax returns Electronic deposit requirement. E file tax returns   You must use electronic funds transfer to make all federal tax deposits (such as deposits of employment tax, excise tax, and corporate income tax). E file tax returns Generally, electronic funds transfers are made using the Electronic Federal Tax Payment System (EFTPS). E file tax returns If you do not want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make electronic deposits on your behalf. E file tax returns   EFTPS is a free service provided by the Department of Treasury. E file tax returns To get more information or to enroll in EFTPS, call 1-800-555-4477 (business), 1-800-316-6541 (individual), or 1-800-733-4829 (TDD). E file tax returns You can also visit the EFTPS website at www. E file tax returns eftps. E file tax returns gov. E file tax returns Additional information about EFTPS is also available in Publication 966. E file tax returns New employers that have a federal tax obligation will be pre-enrolled in EFTPS. E file tax returns Call the toll-free number located in your Employer Identification Number (EIN) Package to activate your enrollment and begin making your tax deposit payments. E file tax returns See When you receive your EIN in section 1 for more information. E file tax returns Deposit record. E file tax returns   For your records, an Electronic Funds Transfer (EFT) Trace Number will be provided with each successful payment. E file tax returns The number can be used as a receipt or to trace the payment. E file tax returns Depositing on time. E file tax returns   For deposits made by EFTPS to be on time, you must initiate the deposit by 8 p. E file tax returns m. E file tax returns Eastern time the day before the date a deposit is due. E file tax returns If you use a third party to make a deposit on your behalf, they may have different cutoff times. E file tax returns Same-day payment option. E file tax returns   If you fail to initiate a deposit transaction on EFTPS by 8 p. E file tax returns m. E file tax returns Eastern time the day before the date a deposit is due, you can still make your deposit on time by using the Federal Tax Application (FTA). E file tax returns To use the same-day payment method, you will need to make arrangements with your financial institution ahead of time. E file tax returns Please check with your financial institution regarding availability, deadlines, and costs. E file tax returns Your financial institution may charge you a fee for payments made this way. E file tax returns To learn more about the information you will need to provide to your financial institution to make a same-day wire payment, visit www. E file tax returns eftps. E file tax returns gov to download the Same-Day Payment Worksheet. E file tax returns Deposit Penalties Penalties may apply if you do not make required deposits on time or if you make deposits for less than the required amount. E file tax returns The penalties do not apply if any failure to make a proper and timely deposit was due to reasonable cause and not to willful neglect. E file tax returns IRS may also waive deposit penalties if you inadvertently fail to deposit in the first quarter that a deposit is due, or the first quarter during which your frequency of deposits changed, if you timely filed your employment tax return. E file tax returns For amounts not properly deposited or not deposited on time, the penalty rates are shown next. E file tax returns Penalty Charged for. E file tax returns . E file tax returns . E file tax returns 2% Deposits made 1 to 5 days late. E file tax returns 5% Deposits made 6 to 15 days late. E file tax returns 10% Deposits made 16 or more days late. E file tax returns Also applies to amounts paid within 10 days of the date of the first notice the IRS sent asking for the tax due. E file tax returns 10% Amounts (that should have been deposited) paid directly to the IRS or paid with your tax return. E file tax returns See Payment with return , earlier in this section, for exceptions. E file tax returns 15% Amounts still unpaid more than 10 days after the date of the first notice that the IRS sent asking for the tax due or the day on which you received notice and demand for immediate payment, whichever is earlier. E file tax returns Late deposit penalty amounts are determined using calendar days, starting from the due date of the liability. E file tax returns Order in which deposits are applied. E file tax returns   Deposits generally are applied to the most recent tax liability within the year. E file tax returns If you receive a failure-to-deposit penalty notice, you may designate how your deposits are to be applied in order to minimize the amount of the penalty, if you do so within 90 days of the date of the notice. E file tax returns Follow the instructions on the penalty notice that you received. E file tax returns For examples on how the IRS will apply deposits and more information on designating deposits, see Revenue Procedure 2001-58. E file tax returns You can find Revenue Procedure 2001-58 on page 579 of Internal Revenue Bulletin 2001-50 at www. E file tax returns irs. E file tax returns gov/pub/irs-irbs/irb01-50. E file tax returns pdf. E file tax returns Example. E file tax returns Cedar, Inc. E file tax returns , is required to make a deposit of $1,000 on July 15 and $1,500 on August 15. E file tax returns It does not make the deposit on July 15. E file tax returns On August 15, Cedar, Inc. E file tax returns , deposits $2,000. E file tax returns Under the deposits rule, which applies deposits to the most recent tax liability, $1,500 of the deposit is applied to the August 15 deposit and the remaining $500 is applied to the July deposit. E file tax returns Accordingly, $500 of the July 15 liability remains undeposited. E file tax returns The penalty on this underdeposit will apply as explained above. E file tax returns Trust fund recovery penalty. E file tax returns   If federal income, social security, or Medicare taxes that must be withheld are not withheld or are not deposited or paid to the United States Treasury, the trust fund recovery penalty may apply. E file tax returns The penalty is the full amount of the unpaid trust fund tax. E file tax returns This penalty may apply to you if these unpaid taxes cannot be immediately collected from the employer or business. E file tax returns   The trust fund recovery penalty may be imposed on all persons who are determined by the IRS to be responsible for collecting, accounting for, and paying over these taxes, and who acted willfully in not doing so. E file tax returns   A responsible person can be an officer or employee of a corporation, a partner or employee of a partnership, an accountant, a volunteer director/trustee, or an employee of a sole proprietorship. E file tax returns A responsible person also may include one who signs checks for the business or otherwise has authority to cause the spending of business funds. E file tax returns    Willfully means voluntarily, consciously, and intentionally. E file tax returns A responsible person acts willfully if the person knows that the required actions of collecting, accounting for or paying over trust fund taxes are not taking place, or recklessly disregards obvious and known risks to the government's right to receive trust fund taxes. E file tax returns “Average” failure-to-deposit penalty. E file tax returns   IRS may assess an “averaged” failure-to-deposit penalty of 2% to 10% if you are a monthly schedule depositor and did not properly complete Form 943, line 17, when your tax liability shown on Form 943, line 11, was $2,500 or more. E file tax returns IRS may also assess this penalty of 2% to 10% if you are a semiweekly schedule depositor and your tax liability shown on Form 943, line 11, was $2,500 or more and you did any of the following. E file tax returns Completed Form 943, line 17, instead of Form 943-A. E file tax returns Failed to attach a properly completed Form 943-A. E file tax returns Completed Form 943-A incorrectly, for example, by entering tax deposits instead of tax liabilities in the numbered spaces. E file tax returns   IRS figures the penalty by allocating your tax liability on Form 943, line 11, equally throughout the tax period. E file tax returns Your deposits and payments may not be counted as timely because IRS does not know the actual dates of your tax liabilities. E file tax returns   You can avoid the penalty by reviewing your return before filing it. E file tax returns Follow these steps before filing your Form 943. E file tax returns If you are a monthly schedule depositor, report your tax liabilities (not your deposits) in the monthly entry spaces on Form 943, line 17. E file tax returns If you are a semiweekly schedule depositor, report your tax liabilities (not your deposits) on Form 943-A in the lines that represent the dates you paid your employees. E file tax returns Verify that your total liability shown on Form 943, line 17, or Form 943-A, line M, equals your tax liability shown on Form 943, line 11. E file tax returns Do not show negative amounts on Form 943, line 17, or Form 943-A. E file tax returns For prior period errors discovered after December 31, 2008, do not adjust your tax liabilities reported on Form 943, line 17, or on Form 943-A. E file tax returns Employers of Both Farm and Nonfarm Workers If you employ both farm and nonfarm workers, you must treat employment taxes for the farmworkers (Form 943 taxes) separately from employment taxes for the nonfarm workers (Form 941 and 944 taxes). E file tax returns Form 943 taxes and Form 941/944 taxes are not combined for purposes of applying any of the deposit schedule rules. E file tax returns If a deposit is due, deposi
Print - Click this link to Print this page

SOI Tax Stats - Archive

Back to Tax Stats


SOI Publications Archive

Here you'll find PDFs of SOI's historical publications. Beginning in 1916, Congress mandated the annual publication of statistics related to “the operation of the internal revenue laws.”

In 2009, SOI began digitizing nearly 500 print publications (and more than 50,000 pages) from its library. As a result of this effort, a wealth of historical tax data is now easily accessible in electronic format. The archive includes publications from 1916 through 1999. Publications for 2000 to present are available from the Tax Stats landing page here.

The oldest report available here was published in 1863. The Report of the Commissioner of Internal Revenue for 1863 contains information on the collection of revenue by source and district of collection. From 1863 to today, the Annual Report of the Commissioner of Internal Revenue, later called the IRS Data Book, presents an annual overview of IRS operations.

Early SOI publications, from 1916 to 1933, compiled all available tax information into one publication, the annual Statistics of Income Report. Beginning in 1934, SOI reported tax information for individuals and businesses separately, published as Parts 1 and 2 of the Statistics of Income Report, respectively. Beginning in the 1950s, these reports were replaced with annual and special reports, usually focused on single taxpayer groups.

In 1981, SOI introduced the SOI Bulletin, replacing many of its earlier reports with a quarterly publication that contains summary articles and tables on a wide range of tax topics.

All of the archive files are Adobe Acrobat PDFs. A free Adobe Acrobat reader is available for download, if needed. Please note: any reports or years of publications that are listed but not links are in the process of being digitized and will be uploaded as soon as they become available. Don't hesitate to contact us for any requests.

Jump to a section:


1916–1933 Statistics of Income Reports

From 1916 to 1933, the Statistics of Income Report provided information on income taxes paid by individuals, corporations, partnerships, estates and trusts, as well as information on gift and estate taxes.

 

1934–1999 Tax Information from Individuals

This section contains archived reports on:

  • Individual income tax returns
  • Sales of capital assets
  • Estate and gift taxes
  • Personal wealth
  • Income tax returns of trusts or estates
  • Data by small area 
1929–1999 Tax Information from Businesses

Here you'll find archived reports on:

  • Corporations
  • Partnerships
  • Sole proprietorships
  • Farmers' cooperatives 
  • Foreign corporations
1863–1999 IRS Data Books

The IRS Data Book provides annual data on collecting revenue, issuing refunds, enforcing tax law, assisting taxpayers, and the IRS budget and workforce.

 

1946–1999 Tax-Exempt Organization Reports

Here you'll find archived reports on the activities and finances of charities and private foundations.

 

Special Papers

Some archived publications were originally created in response to special requests, may have been produced for only 1 or 2 years, or present historical summaries of SOI's operations—you'll find these articles here.


 

Back to top

Back to Tax Stats

Page Last Reviewed or Updated: 22-Jan-2013

The E File Tax Returns

E file tax returns Publication 527 - Introductory Material Table of Contents Future Developments What's New Reminders IntroductionSale of main home used as rental property. E file tax returns Tax-free exchange of rental property occasionally used for personal purposes. E file tax returns Ordering forms and publications. E file tax returns Tax questions. E file tax returns Useful Items - You may want to see: Future Developments For the latest information about developments related to Publication 527, such as legislation enacted after it was published, go to www. E file tax returns irs. E file tax returns gov/pub527. E file tax returns What's New Net Investment Income Tax (NIIT). E file tax returns  Beginning in 2013, you may be subject to the Net Investment Income Tax (NIIT). E file tax returns NIIT is a 3. E file tax returns 8% tax on the lesser of net investment income or the excess of modified adjusted gross income (MAGI) over the threshold amount. E file tax returns Net investment income may include rental income and other income from passive activities. E file tax returns Use Form 8960, Net Investment Income Tax, to figure this tax. E file tax returns For more information on NIIT, go to IRS. E file tax returns gov and enter “Net Investment Income Tax” in the search box. E file tax returns Reminders Photographs of missing children. E file tax returns  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. E file tax returns Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. E file tax returns You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. E file tax returns Introduction Do you own a second house that you rent out all the time? Do you own a vacation home that you rent out when you or your family isn't using it? These are two common types of residential rental activities discussed in this publication. E file tax returns In most cases, all rental income must be reported on your tax return, but there are differences in the expenses you are allowed to deduct and in the way the rental activity is reported on your return. E file tax returns First, this publication will look at the rental-for-profit activity in which there is no personal use of the property. E file tax returns We will look at types of income and when each is reported, and at types of expenses and which are deductible. E file tax returns Chapter 2 discusses depreciation as it applies to your rental real estate activity—what property can be depreciated and how to figure it. E file tax returns Chapter 3 covers the actual reporting of your rental income and deductions, including casualties and thefts, limitations on losses, and claiming the correct amount of depreciation. E file tax returns Special rental situations are grouped together in chapter 4. E file tax returns These include condominiums, cooperatives, property changed to rental use, renting only part of your property, and a not-for-profit rental activity. E file tax returns Finally, in chapter 5, we will look at the rules for rental income and expenses when there is also personal use of the dwelling unit, such as a vacation home. E file tax returns Sale or exchange of rental property. E file tax returns   For information on how to figure and report any gain or loss from the sale, exchange or other disposition of your rental property, see Publication 544, Sales and Other Dispositions of Assets. E file tax returns Sale of main home used as rental property. E file tax returns   For information on how to figure and report any gain or loss from the sale or other disposition of your main home that you also used as rental property, see Publication 523, Selling Your Home. E file tax returns Tax-free exchange of rental property occasionally used for personal purposes. E file tax returns   If you meet certain qualifying use standards, you may qualify for a tax-free exchange (a like-kind or section 1031 exchange) of one piece of rental property you own for a similar piece of rental property, even if you have used the rental property for personal purposes. E file tax returns   For information on the qualifying use standards, see Rev. E file tax returns Proc. E file tax returns 2008–16, 2008 IRB 547, at http://www. E file tax returns irs. E file tax returns gov/irb/2008-10_IRB/ar12. E file tax returns html . E file tax returns For more information on like-kind exchanges, see chapter 1 of Publication 544. E file tax returns Comments and suggestions. E file tax returns   We welcome your comments about this publication and your suggestions for future editions. E file tax returns   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. E file tax returns NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. E file tax returns Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. E file tax returns   You can send your comments from www. E file tax returns irs. E file tax returns gov/formspubs/. E file tax returns Click on “More Information” and then on “Comment on Tax Forms and Publications”. E file tax returns   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. E file tax returns Ordering forms and publications. E file tax returns   Visit www. E file tax returns irs. E file tax returns gov/formspubs/ to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. E file tax returns Internal Revenue Service 1201 N. E file tax returns Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. E file tax returns   If you have a tax question, check the information available on IRS. E file tax returns gov or call 1-800-829-1040. E file tax returns We cannot answer tax questions sent to either of the above addresses. E file tax returns Useful Items - You may want to see: Publication 463 Travel, Entertainment, Gift, and Car Expenses 523 Selling Your Home 534 Depreciating Property Placed in Service Before 1987 535 Business Expenses 544 Sales and Other Dispositions of Assets 547 Casualties, Disasters, and Thefts 551 Basis of Assets 925 Passive Activity and At-Risk Rules 946 How To Depreciate Property Form (and Instructions) 4562 Depreciation and Amortization 5213 Election To Postpone Determination as To Whether the Presumption Applies That an Activity Is Engaged in for Profit 8582 Passive Activity Loss Limitations Schedule E (Form 1040) Supplemental Income and Loss   See chapter 6, How To Get Tax Help for information about getting these publications and forms. E file tax returns Prev  Up  Next   Home   More Online Publications