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Efile taxes free Publication 907 - Main Content Table of Contents IncomeDependent Care Benefits Social Security and Railroad Retirement Benefits Disability Pensions Military and Government Disability Pensions Other Payments Itemized DeductionsMedical Expenses Impairment-Related Work Expenses Tax CreditsChild and Dependent Care Credit Credit for the Elderly or the Disabled Earned Income Credit Household Employers Business Tax Incentives How To Get Tax Help Income All income is taxable unless it is specifically excluded by law. Efile taxes free The following discussions highlight some income items (both taxable and nontaxable) that are of particular interest to people with disabilities and those who care for people with disabilities. Efile taxes free Dependent Care Benefits Dependent care benefits include: Amounts your employer paid directly to either you or your care provider for the care of your qualifying person(s) while you worked, The fair market value of care in a daycare facility provided or sponsored by your employer, and Pre-tax contributions you made under a dependent care flexible spending arrangement. Efile taxes free Exclusion or deduction. Efile taxes free   If your employer provides dependent care benefits under a qualified plan, you may be able to exclude these benefits from your income. Efile taxes free Your employer can tell you whether your benefit plan qualifies. Efile taxes free To claim the exclusion, you must complete Part III of Form 2441, Child and Dependent Care Expenses. Efile taxes free You cannot use Form 1040EZ. Efile taxes free   If you are self-employed and receive benefits from a qualified dependent care benefit plan, you are treated as both employer and employee. Efile taxes free Therefore, you would not get an exclusion from wages. Efile taxes free Instead, you would get a deduction on Form 1040, Schedule C, line 14; Schedule E, line 19 or 28; or Schedule F, line 15. Efile taxes free To claim the deduction, you must use Form 2441. Efile taxes free   The amount you can exclude or deduct is limited to the smallest of: The total amount of dependent care benefits you received during the year, The total amount of qualified expenses you incurred during the year, Your earned income, Your spouse's earned income, or $5,000 ($2,500 if married filing separately). Efile taxes free Statement for employee. Efile taxes free   Your employer must give you a Form W-2 (or similar statement), showing in box 10 the total amount of dependent care benefits provided to you during the year under a qualified plan. Efile taxes free Your employer will also include any dependent care benefits over $5,000 in your wages shown on your Form W-2 in box 1. Efile taxes free Qualifying person(s). Efile taxes free   A qualifying person is: A qualifying child who is under age 13 whom you can claim as a dependent. Efile taxes free If the child turned 13 during the year, the child is a qualifying person for the part of the year he or she was under age 13. Efile taxes free Your disabled spouse who is not physically or mentally able to care for himself or herself. Efile taxes free Any disabled person who was not physically or mentally able to care for himself or herself whom you can claim as a dependent (or could claim as a dependent except that the person had gross income of $3,900 or more or filed a joint return). Efile taxes free Any disabled person who was not physically or mentally able to care for himself or herself whom you could claim as a dependent except that you (or your spouse if filing jointly) could be claimed as a dependent on another taxpayer's 2013 return. Efile taxes free For information about excluding benefits on Form 1040, Form 1040NR, or Form 1040A, see Form 2441 and its instructions. Efile taxes free Social Security and Railroad Retirement Benefits If you received social security or equivalent Tier 1 railroad retirement (RRTA) benefits during the year, part of the amount you received may be taxable. Efile taxes free Are any of your benefits taxable?   If the only income you received during the year was your social security or equivalent Tier 1 railroad retirement (RRTA) benefits, your benefits generally are not taxable. Efile taxes free   If you received income during the year in addition to social security or equivalent Tier 1 railroad retirement (RRTA) benefits, part of your benefits may be taxable if all of your other income, including tax-exempt interest, plus half of your benefits are more than: $25,000 if you are single, head of household, or qualifying widow(er), $25,000 if you are married filing separately and lived apart from your spouse for all of 2013, $32,000 if you are married filing jointly, or $-0- if you are married filing separately and lived with your spouse at any time during 2013. Efile taxes free   For more information, see the instructions for Form 1040, lines 20a and 20b, or Form 1040A, lines 14a and 14b. Efile taxes free Publication 915, Social Security and Equivalent Railroad Retirement Benefits, contains more detailed information. Efile taxes free Supplemental security income (SSI) payments. Efile taxes free   Social security benefits do not include SSI payments, which are not taxable. Efile taxes free Do not include these payments in your income. Efile taxes free Disability Pensions If you retired on disability, you must include in income any disability pension you receive under a plan that is paid for by your employer. Efile taxes free You must report your taxable disability payments as wages on line 7 of Form 1040 or Form 1040A until you reach minimum retirement age. Efile taxes free Minimum retirement age generally is the age at which you can first receive a pension or annuity if you are not disabled. Efile taxes free You may be entitled to a tax credit if you were permanently and totally disabled when you retired. Efile taxes free For information on this credit, see Publication 524, Credit for the Elderly or the Disabled. Efile taxes free Beginning on the day after you reach minimum retirement age, payments you receive are taxable as a pension or annuity. Efile taxes free Report the payments on lines 16a and 16b of Form 1040 or on lines 12a and 12b of Form 1040A. Efile taxes free For more information on pensions and annuities, see Publication 575, Pension and Annuity Income. Efile taxes free Retirement and profit-sharing plans. Efile taxes free   If you receive payments from a retirement or profit-sharing plan that does not provide for disability retirement, do not treat the payments as a disability pension. Efile taxes free The payments must be reported as a pension or annuity. Efile taxes free Accrued leave payment. Efile taxes free   If you retire on disability, any lump-sum payment you receive for accrued annual leave is a salary payment. Efile taxes free The payment is not a disability payment. Efile taxes free Include it in your income in the tax year you receive it. Efile taxes free See Publication 525, Taxable and Nontaxable Income, for more information. Efile taxes free Military and Government Disability Pensions Generally, you must report disability pensions as income, but do not include certain military and government disability pensions. Efile taxes free For information about military and government disability pensions, see Publication 525. Efile taxes free VA disability benefits. Efile taxes free   Do not include disability benefits you receive from the Department of Veterans Affairs (VA) in your gross income. Efile taxes free If you are a military retiree and do not receive your disability benefits from the VA, see Publication 525 for more information. Efile taxes free   Do not include in your income any veterans' benefits paid under any law, regulation, or administrative practice administered by the VA. Efile taxes free These include: Education, training, and subsistence allowances, Disability compensation and pension payments for disabilities paid either to veterans or their families, Grants for homes designed for wheelchair living, Grants for motor vehicles for veterans who lost their sight or the use of their limbs, Veterans' insurance proceeds and dividends paid either to veterans or their beneficiaries, including the proceeds of a veteran's endowment policy paid before death, Interest on insurance dividends left on deposit with the VA, Benefits under a dependent-care assistance program, The death gratuity paid to a survivor of a member of the Armed Forces who died after September 10, 2001, or Payments made under the VA's compensated work therapy program. Efile taxes free Other Payments You may receive other payments that are related to your disability. Efile taxes free The following payments are not taxable. Efile taxes free Benefit payments from a public welfare fund, such as payments due to blindness. Efile taxes free Workers' compensation for an occupational sickness or injury if paid under a workers' compensation act or similar law. Efile taxes free Compensatory (but not punitive) damages for physical injury or physical sickness. Efile taxes free Disability benefits under a “no-fault” car insurance policy for loss of income or earning capacity as a result of injuries. Efile taxes free Compensation for permanent loss or loss of use of a part or function of your body, or for your permanent disfigurement. Efile taxes free Long-Term Care Insurance Long-term care insurance contracts generally are treated as accident and health insurance contracts. Efile taxes free Amounts you receive from them (other than policyholder dividends or premium refunds) generally are excludable from income as amounts received for personal injury or sickness. Efile taxes free More detailed information can be found in Publication 525. Efile taxes free Accelerated Death Benefits You can exclude from income accelerated death benefits you receive on the life of an insured individual if certain requirements are met. Efile taxes free Accelerated death benefits are amounts received under a life insurance contract before the death of the insured. Efile taxes free These benefits also include amounts received on the sale or assignment of the contract to a viatical settlement provider. Efile taxes free This exclusion applies only if the insured was a terminally ill individual or a chronically ill individual. Efile taxes free For more information, see Publication 525. Efile taxes free Itemized Deductions If you file Form 1040, you generally can either claim the standard deduction or itemize your deductions. Efile taxes free You must use Schedule A (Form 1040) to itemize your deductions. Efile taxes free See your form instructions for information on the standard deduction and the deductions you can itemize. Efile taxes free The following discussions highlight some itemized deductions that are of particular interest to persons with disabilities. Efile taxes free Medical Expenses When figuring your deduction for medical expenses, you can generally include medical and dental expenses you pay for yourself, your spouse, and your dependents. Efile taxes free Medical expenses are the cost of diagnosis, cure, mitigation, treatment, or prevention of disease and the costs for treatments affecting any part or function of the body. Efile taxes free They include the costs of equipment, supplies, diagnostic devices, and transportation for needed medical care and payments for medical insurance. Efile taxes free You can deduct only the amount of your medical and dental expenses that is more than 10% (7. Efile taxes free 5% if either you or your spouse was born before January 2, 1949) of your adjusted gross income shown on Form 1040, line 38. Efile taxes free The following list highlights some of the medical expenses you can include in figuring your medical expense deduction. Efile taxes free For more detailed information, see Publication 502, Medical and Dental Expenses (Including the Health Coverage Tax Credit). Efile taxes free Artificial limbs, contact lenses, eyeglasses, and hearing aids. Efile taxes free The part of the cost of Braille books and magazines that is more than the price of regular printed editions. Efile taxes free Cost and repair of special telephone equipment for hearing-impaired persons. Efile taxes free Cost and maintenance of a wheelchair or a three-wheel motor vehicle commercially known as an “autoette. Efile taxes free ” Cost and care of a guide dog or other animal aiding a person with a physical disability. Efile taxes free Costs for a school that furnishes special education if a principal reason for using the school is its resources for relieving a mental or physical disability. Efile taxes free This includes the cost of teaching Braille and lip reading and the cost of remedial language training to correct a condition caused by a birth defect. Efile taxes free Premiums for qualified long-term care insurance, up to certain amounts. Efile taxes free Improvements to a home that do not increase its value if the main purpose is medical care. Efile taxes free An example is constructing entrance or exit ramps. Efile taxes free Improvements that increase a home's value, if the main purpose is medical care, may be partly included as a medical expense. Efile taxes free See Publication 502 for more information. Efile taxes free Impairment-Related Work Expenses If you are disabled, you can take a business deduction for expenses that are necessary for you to be able to work. Efile taxes free If you take a business deduction for these impairment-related work expenses, they are not subject to the 10% (7. Efile taxes free 5% if you or your spouse is age 65 or older) limit that applies to medical expenses. Efile taxes free You are disabled 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 (including, but not limited to, 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. Efile taxes free Impairment-related expenses defined. Efile taxes free   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. Efile taxes free Publication 502 contains more detailed information. Efile taxes free Tax Credits This discussion highlights three tax credits that may be of interest to people with disabilities and those who care for people with disabilities. Efile taxes free Child and Dependent Care Credit If you pay someone to care for either your dependent under age 13 or your spouse or dependent who is not able to care for himself or herself, you may be able to get a credit of up to 35% of your expenses. Efile taxes free To qualify, you must pay these expenses so you can work or look for work. Efile taxes free The care must be provided for: Your qualifying child who is your dependent and who was under age 13 when the care was provided, Your spouse who was not physically or mentally able to care for himself or herself and lived with you for more than half the year, or A person who was not physically or mentally able to care for himself or herself, lived with you for more than half the year, and either: Was your dependent, or Would have been your dependent except that: He or she received gross income of $3,900 or more, He or she filed a joint return, or You, or your spouse if filing jointly, could be claimed as a dependent on someone else's 2013 return. Efile taxes free You can claim the credit on Form 1040 or 1040A. Efile taxes free You cannot claim the credit on Form 1040EZ or Form 1040NR-EZ. Efile taxes free You figure the credit on Form 2441. Efile taxes free For more information, see the instructions for Form 1040, line 48, or Form 1040A, line 29. Efile taxes free Publication 503, Child and Dependent Care Expenses, contains more detailed information. Efile taxes free Credit for the Elderly or the Disabled You may be able to claim this credit if you are a U. Efile taxes free S. Efile taxes free citizen or a resident alien and either of the following apply. Efile taxes free You were 65 or older at the end of 2013, You were under 65 at the end of 2013, and retired on permanent or total disability. Efile taxes free You can claim the credit on Form 1040 or 1040A. Efile taxes free You figure the credit on Schedule R. Efile taxes free For more information, see the instructions for Form 1040, line 53, or Form 1040A, line 30. Efile taxes free Publication 524, Credit for the Elderly or the Disabled, contains more detailed information. Efile taxes free Earned Income Credit This credit is based on the amount of your earned income. Efile taxes free You can get the credit if your adjusted gross income for 2013 is less than: $14,340 ($19,680 for married filing jointly) if you do not have a qualifying child, $37,870 ($43,210 for married filing jointly) if you have one qualifying child, $43,038 ($48,378 for married filing jointly) if you have two qualifying children, or $46,227 ($51,567 for married filing jointly) if you have three or more qualifying children. Efile taxes free To figure the credit, use the worksheet in the instructions for Form 1040, 1040A, or 1040EZ. Efile taxes free If you have a qualifying child, also complete Schedule EIC, Earned Income Credit, and attach it to your Form 1040 or 1040A. Efile taxes free You cannot use Form 1040EZ if you have a qualifying child. Efile taxes free Qualifying child. Efile taxes free   To be a qualifying child, your child must be younger than you (or your spouse if married filing jointly) and under age 19 or a full-time student under age 24 at the end of 2013, or permanently and totally disabled at any time during 2013, regardless of age. Efile taxes free Earned income. Efile taxes free   If you are retired on disability, benefits you receive under your employer's disability retirement plan are considered earned income until you reach minimum retirement age. Efile taxes free However, payments you received from a disability insurance policy that you paid the premiums for are not earned income. Efile taxes free More information. Efile taxes free   For more information, including all the requirements to claim the earned income credit, see the instructions for Form 1040, line 64a; Form 1040A, line 38a; or Form 1040EZ, line 8a. Efile taxes free Publication 596, Earned Income Credit (EIC), contains more detailed information. Efile taxes free Household Employers If you pay someone to work in your home, such as a babysitter or housekeeper, you may be a household employer who has to pay employment taxes. Efile taxes free A person you hire through an agency is not your employee if the agency controls what work is done and how it is done. Efile taxes free This control could include setting the fee, requiring regular reports, and providing rules of conduct and appearance. Efile taxes free In this case you do not have to pay employment taxes on the amount you pay. Efile taxes free But if you control what work is done and how it is done, the worker is your employee. Efile taxes free If you possess the right to discharge a worker, that worker is generally considered to be your employee. Efile taxes free If a worker is your employee, it does not matter that you hired the worker through an agency or from a list provided by an agency. Efile taxes free To find out if you have to pay employment taxes, see Publication 926, Household Employer's Tax Guide For Wages Paid in 2013. Efile taxes free Business Tax Incentives If you own or operate a business, or you are looking for work, you should be aware of the following tax incentives for businesses to help persons with disabilities. Efile taxes free Deduction for costs of removing barriers to the disabled and the elderly—This is a deduction a business can take for making a facility or public transportation vehicle more accessible to and usable by persons who are disabled or elderly. Efile taxes free For more information, see chapter 7 of Publication 535, Business Expenses. Efile taxes free Disabled access credit—This is a nonrefundable tax credit for an eligible small business that pays or incurs expenses to provide access to persons with disabilities. Efile taxes free The expenses must be to enable the eligible small business to comply with the Americans With Disabilities Act of 1990. Efile taxes free See Form 8826, Disabled Access Credit, for more information. Efile taxes free Work opportunity credit—This credit provides businesses with an incentive to hire individuals from targeted groups that have a particularly high unemployment rate or other special employment needs. Efile taxes free One targeted group consists of vocational rehabilitation referrals. Efile taxes free These are individuals who have a physical or mental disability that results in a substantial handicap to employment. Efile taxes free See Form 5884, Work Opportunity Credit. Efile taxes free How To Get Tax Help Go online, use a smart phone, call or walk in to an office near you. Efile taxes free Whether it's help with a tax issue, preparing your tax return or picking up a free publication or form, get the help you need the way you want it. Efile taxes free Free help with your tax return. Efile taxes free   Free help in preparing your return is available nationwide from IRS-certified volunteers. Efile taxes free The Volunteer Income Tax Assistance (VITA) program is designed to help low-to-moderate income, elderly, persons with disabilities, and limited English proficient taxpayers. Efile taxes free The Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 and older with their tax returns. Efile taxes free Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. Efile taxes free Some VITA and TCE sites provide taxpayers the opportunity to prepare their return with the assistance of an IRS-certified volunteer. Efile taxes free To find the nearest VITA or TCE site, visit IRS. Efile taxes free gov or call 1-800-906-9887. Efile taxes free   As part of the TCE program, AARP offers the Tax-Aide counseling program. Efile taxes free To find the nearest AARP Tax-Aide site, visit AARP's website at www. Efile taxes free aarp. Efile taxes free org/money/taxaide or call 1-888-227-7669. Efile taxes free   For more information on these programs, go to IRS. Efile taxes free gov and enter “VITA” in the search box. Efile taxes free Internet. Efile taxes free IRS. Efile taxes free gov and IRS2Go are ready when you are — every day, every night, 24 hours a day, 7 days a week. Efile taxes free Apply for an Employer Identification Number (EIN). Efile taxes free Go to IRS. Efile taxes free gov and enter Apply for an EIN in the search box. Efile taxes free Request an Electronic Filing PIN by going to IRS. Efile taxes free gov and entering Electronic Filing PIN in the search box. Efile taxes free Check the status of your 2013 refund with Where's My Refund? Go to IRS. Efile taxes free gov or the IRS2Go app, and click on Where's My Refund? You'll get a personalized refund date as soon as the IRS processes your tax return and approves your refund. Efile taxes free If you e-file, your refund status is usually available within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. Efile taxes free Check the status of your amended return. Efile taxes free Go to IRS. Efile taxes free gov and enter Where's My Amended Return in the search box. Efile taxes free Download forms, instructions, and publications, including some accessible versions. Efile taxes free Order free transcripts of your tax returns or tax account using the Order a Transcript tool on IRS. Efile taxes free gov or IRS2Go. Efile taxes free Tax return and tax account transcripts are generally available for the current year and past three years. Efile taxes free Figure your income tax withholding with the IRS Withholding Calculator on IRS. Efile taxes free gov. Efile taxes free Use it if you've had too much or too little withheld, your personal situation has changed, you're starting a new job or you just want to see if you're having the right amount withheld. Efile taxes free Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. Efile taxes free gov. Efile taxes free Locate the nearest Taxpayer Assistance Center using the Office Locator tool on IRS. Efile taxes free gov or IRS2Go. Efile taxes free Stop by most business days for face-to-face tax help, no appointment necessary — just walk in. Efile taxes free An employee can explain IRS letters, request adjustments to your tax account or help you set up a payment plan. Efile taxes free Before you visit, check the Office Locator for the address, phone number, hours of operation and the services provided. Efile taxes free If you have an ongoing tax account problem or a special need, such as a disability, you can request an appointment. Efile taxes free Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. Efile taxes free Locate the nearest volunteer help site with the VITA Locator Tool on IRS. Efile taxes free gov. Efile taxes free Low-to-moderate income, elderly, persons with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. Efile taxes free The Tax Counseling for the Elderly (TCE) program helps taxpayers 60 and older with their tax returns. Efile taxes free Most VITA and TCE sites offer free electronic filing and some provide IRS-certified volunteers who can help prepare your tax return. Efile taxes free AARP offers the Tax-Aide counseling program as part of the TCE program. Efile taxes free Visit AARP's website to find the nearest Tax-Aide location. Efile taxes free Research your tax questions. Efile taxes free Search publications and instructions by topic or keyword. Efile taxes free Read the Internal Revenue Code, regulations, or other official guidance. Efile taxes free Read Internal Revenue Bulletins. Efile taxes free Sign up to receive local and national tax news by email. Efile taxes free Phone. Efile taxes free You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. Efile taxes free Download the free IRS2Go mobile app from the iTunes app store or from Google Play. Efile taxes free Use it to watch the IRS YouTube channel, get IRS news as soon as it's released to the public, order transcripts of your tax returns or tax account, check your refund status, subscribe to filing season updates or daily tax tips, and follow the IRS Twitter news feed, @IRSnews, to get the latest federal tax news, including information about tax law changes and important IRS programs. Efile taxes free Call to locate the nearest volunteer help site, 1-800-906-9887. Efile taxes free Low-to-moderate income, elderly, persons with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. Efile taxes free The Tax Counseling for the Elderly (TCE) program helps taxpayers 60 and older with their tax returns. Efile taxes free Most VITA and TCE sites offer free electronic filing. Efile taxes free Some VITA and TCE sites provide IRS-certified volunteers who can help prepare your tax return. Efile taxes free Through the TCE program, AARP offers the Tax-Aide counseling program; call 1-888-227-7669 to find the nearest Tax-Aide location. Efile taxes free Call to check the status of your 2013 refund, 1-800-829-1954 or 1-800-829-4477. Efile taxes free The automated Where's My Refund? information is available 24 hours a day, 7 days a week. Efile taxes free If you e-file, your refund status is usually available within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. Efile taxes free Before you call, have your 2013 tax return handy so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Efile taxes free Where's My Refund? can give you a personalized refund date as soon as the IRS processes your tax return and approves your refund. Efile taxes free Where's My Refund? includes information for the most recent return filed in the current year and does not include information about amended returns. Efile taxes free Call the Amended Return Hotline, 1-866-464-2050, to check the status of your amended return. Efile taxes free Call to order forms, instructions and publications, 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions and publications, and prior-year forms and instructions (limited to 5 years). Efile taxes free You should receive your order within 10 business days. Efile taxes free Call to order transcripts of your tax returns or tax account, 1-800-908-9946. Efile taxes free Follow the prompts to provide your Social Security Number or Individual Taxpayer Identification Number, date of birth, street address and ZIP code. Efile taxes free Call for TeleTax topics, 1-800-829-4477, to listen to pre-recorded messages covering various tax topics. Efile taxes free Call to ask tax questions, 1-800-829-1040. Efile taxes free Call using TTY/TDD equipment, 1-800-829-4059 to ask tax questions or order forms and publications. Efile taxes free The TTY/TDD telephone number is for people who are deaf, hard of hearing, or have a speech disability. Efile taxes free These individuals can also contact the IRS through relay services such as the Federal Relay Service available at www. Efile taxes free gsa. Efile taxes free gov/fedrelay. Efile taxes free Walk-in. Efile taxes free You can find a selection of forms, publications and services — in-person, face-to-face. Efile taxes free Products. Efile taxes free You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Efile taxes free Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. Efile taxes free Services. Efile taxes free You can walk in to your local TAC most business days for personal, face-to-face tax help. Efile taxes free An employee can explain IRS letters, request adjustments to your tax account, or help you set up a payment plan. Efile taxes free If you need to resolve a tax problem, have questions about how the tax law applies to your individual tax return, or you are more comfortable talking with someone in person, visit your local TAC where you can talk with an IRS representative face-to-face. Efile taxes free No appointment is necessary—just walk in. Efile taxes free Before visiting, check www. Efile taxes free irs. Efile taxes free gov/localcontacts for hours of operation and services provided. Efile taxes free Mail. Efile taxes free You can send your order for forms, instructions, and publications to the address below. Efile taxes free You should receive a response within 10 business days after your request is received. Efile taxes free  Internal Revenue Service 1201 N. Efile taxes free Mitsubishi Motorway Bloomington, IL 61705-6613 The Taxpayer Advocate Service Is Here to Help You. Efile taxes free   The Taxpayer Advocate Service (TAS) is your voice at the IRS. Efile taxes free Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. Efile taxes free What can TAS do for you?   We can offer you free help with IRS problems that you can't resolve on your own. Efile taxes free We know this process can be confusing, but the worst thing you can do is nothing at all! TAS can help if you can't resolve your tax problem and: Your problem is causing financial difficulties for you, your family, or your business. Efile taxes free You face (or your business is facing) an immediate threat of adverse action. Efile taxes free You've tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised. Efile taxes free   If you qualify for our help, you'll be assigned to one advocate who'll be with you at every turn and will do everything possible to resolve your problem. Efile taxes free Here's why we can help: TAS is an independent organization within the IRS. Efile taxes free Our advocates know how to work with the IRS. Efile taxes free Our services are free and tailored to meet your needs. Efile taxes free We have offices in every state, the District of Columbia, and Puerto Rico. Efile taxes free How can you reach us?   If you think TAS can help you, call your local advocate, whose number is in your local directory and at www. Efile taxes free irs. Efile taxes free gov/advocate, or call us toll-free at 1-877-777-4778. Efile taxes free How else does TAS help taxpayers?   TAS also works to resolve large-scale, systemic problems that affect many taxpayers. Efile taxes free If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System at www. Efile taxes free irs. Efile taxes free gov/sams. Efile taxes free Low Income Taxpayer Clinics. Efile taxes free   Low Income Taxpayer Clinics (LITCs) serve individuals whose income is below a certain level and need to resolve tax problems such as audits, appeals, and tax collection disputes. Efile taxes free Some clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. Efile taxes free Visit www. Efile taxes free TaxpayerAdvocate. Efile taxes free irs. Efile taxes free gov or see IRS Publication 4134, Low Income Taxpayer Clinic List. Efile taxes free Prev  Up  Next   Home   More Online Publications
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Consumer Protection Offices

City, county, regional, and state consumer offices offer a variety of important services. They might mediate complaints, conduct investigations, prosecute offenders of consumer laws, license and regulate professional service providers, provide educational materials and advocate for consumer rights. To save time, call before sending a written complaint. Ask if the office handles the type of complaint you have and if complaint forms are provided.

State Consumer Protection Offices

Oregon Department of Justice

Website: Oregon Department of Justice

Address: Oregon Department of Justice
Financial Fraud/Consumer Protection Section
1162 Court St., NE
Salem, OR 97301-4096

Phone Number: 503-378-4320 (Salem) 503-229-5576 (Portland)

Toll-free: 1-877-877-9392 (OR)

TTY: 1-800-735-2900

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Banking Authorities

The officials listed in this section regulate and supervise state-chartered banks. Many of them handle or refer problems and complaints about other types of financial institutions as well. Some also answer general questions about banking and consumer credit. If you are dealing with a federally chartered bank, check Federal Agencies.

Department of Consumer and Business Services

Website: Department of Consumer and Business Services

Address: Department of Consumer and Business Services
Division of Finance and Corporate Securities
PO Box 14480
Salem, OR 97309-0405

Phone Number: 503-378-4140

Toll-free: 1-866-814-9710 (OR)

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Insurance Regulators

Each state has its own laws and regulations for each type of insurance. The officials listed in this section enforce these laws. Many of these offices can also provide you with information to help you make informed insurance buying decisions.

Insurance Division

Website: Insurance Division

Address: Insurance Division
PO Box 14480
Salem, OR 97309-0405

Phone Number: 503-947-7984

Toll-free: 1-888-877-4894 (OR)

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Securities Administrators

Each state has its own laws and regulations for securities brokers and securities - including stocks, mutual funds, commodities, real estate, etc. The officials and agencies listed in this section enforce these laws and regulations. Many of these offices can also provide information to help you make informed investment decisions.

Department of Consumer and Business Services

Website: Department of Consumer and Business Services

Address: Department of Consumer and Business Services
Division of Finance and Corporate Securities
PO Box 14480
Salem, OR 97309-0405

Phone Number: 503-378-4140

Toll-free: 1-866-814-9710

TTY: 503-378-4100

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Utility Commissions

State Utility Commissions regulate services and rates for gas, electricity and telephones within your state. In some states, the utility commissions regulate other services such as water, transportation, and the moving of household goods. Many utility commissions handle consumer complaints. Sometimes, if a number of complaints are received about the same utility matter, they will conduct investigations.

Public Utility Commission

Website: Public Utility Commission

Address: Public Utility Commission
Consumer Services Division
550 Capitol St., NE, Suite 215
PO Box 2148
Salem, OR 97308-2148

Toll-free: 1-800-522-2404

TTY: 1-800-648-3458 (OR)

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The Efile Taxes Free

Efile taxes free Publication 15-B - Main Content Table of Contents 1. Efile taxes free Fringe Benefit OverviewAre Fringe Benefits Taxable? Cafeteria Plans Simple Cafeteria Plans 2. Efile taxes free Fringe Benefit Exclusion RulesAccident and Health Benefits Achievement Awards Adoption Assistance Athletic Facilities De Minimis (Minimal) Benefits Dependent Care Assistance Educational Assistance Employee Discounts Employee Stock Options Employer-Provided Cell Phones Group-Term Life Insurance Coverage Health Savings Accounts Lodging on Your Business Premises Meals Moving Expense Reimbursements No-Additional-Cost Services Retirement Planning Services Transportation (Commuting) Benefits Tuition Reduction Working Condition Benefits 3. Efile taxes free Fringe Benefit Valuation RulesGeneral Valuation Rule Cents-Per-Mile Rule Commuting Rule Lease Value Rule Unsafe Conditions Commuting Rule 4. Efile taxes free Rules for Withholding, Depositing, and ReportingTransfer of property. Efile taxes free Amount of deposit. Efile taxes free Limitation. Efile taxes free Conformity rules. Efile taxes free Election not to withhold income tax. Efile taxes free How To Get Tax Help 1. Efile taxes free Fringe Benefit Overview A fringe benefit is a form of pay for the performance of services. Efile taxes free For example, you provide an employee with a fringe benefit when you allow the employee to use a business vehicle to commute to and from work. Efile taxes free Performance of services. Efile taxes free   A person who performs services for you does not have to be your employee. Efile taxes free A person may perform services for you as an independent contractor, partner, or director. Efile taxes free Also, for fringe benefit purposes, treat a person who agrees not to perform services (such as under a covenant not to compete) as performing services. Efile taxes free Provider of benefit. Efile taxes free   You are the provider of a fringe benefit if it is provided for services performed for you. Efile taxes free You are considered the provider of a fringe benefit even if a third party, such as your client or customer, provides the benefit to your employee for services the employee performs for you. Efile taxes free For example, if, in exchange for goods or services, your customer provides day care services as a fringe benefit to your employees for services they provide for you as their employer, then you are the provider of this fringe benefit even though the customer is actually providing the day care. Efile taxes free Recipient of benefit. Efile taxes free   The person who performs services for you is considered the recipient of a fringe benefit provided for those services. Efile taxes free That person may be considered the recipient even if the benefit is provided to someone who did not perform services for you. Efile taxes free For example, your employee may be the recipient of a fringe benefit you provide to a member of the employee's family. Efile taxes free Are Fringe Benefits Taxable? Any fringe benefit you provide is taxable and must be included in the recipient's pay unless the law specifically excludes it. Efile taxes free Section 2 discusses the exclusions that apply to certain fringe benefits. Efile taxes free Any benefit not excluded under the rules discussed in section 2 is taxable. Efile taxes free Including taxable benefits in pay. Efile taxes free   You must include in a recipient's pay the amount by which the value of a fringe benefit is more than the sum of the following amounts. Efile taxes free Any amount the law excludes from pay. Efile taxes free Any amount the recipient paid for the benefit. Efile taxes free The rules used to determine the value of a fringe benefit are discussed in section 3. Efile taxes free   If the recipient of a taxable fringe benefit is your employee, the benefit is subject to employment taxes and must be reported on Form W-2, Wage and Tax Statement. Efile taxes free However, you can use special rules to withhold, deposit, and report the employment taxes. Efile taxes free These rules are discussed in section 4. Efile taxes free   If the recipient of a taxable fringe benefit is not your employee, the benefit is not subject to employment taxes. Efile taxes free However, you may have to report the benefit on one of the following information returns. Efile taxes free If the recipient receives the benefit as: Use: An independent contractor Form 1099-MISC, Miscellaneous Income A partner Schedule K-1 (Form 1065), Partner's Share of Income, Deductions, Credits, etc. Efile taxes free For more information, see the instructions for the forms listed above. Efile taxes free Cafeteria Plans A cafeteria plan, including a flexible spending arrangement, is a written plan that allows your employees to choose between receiving cash or taxable benefits instead of certain qualified benefits for which the law provides an exclusion from wages. Efile taxes free If an employee chooses to receive a qualified benefit under the plan, the fact that the employee could have received cash or a taxable benefit instead will not make the qualified benefit taxable. Efile taxes free Generally, a cafeteria plan does not include any plan that offers a benefit that defers pay. Efile taxes free However, a cafeteria plan can include a qualified 401(k) plan as a benefit. Efile taxes free Also, certain life insurance plans maintained by educational institutions can be offered as a benefit even though they defer pay. Efile taxes free Qualified benefits. Efile taxes free   A cafeteria plan can include the following benefits discussed in section 2. Efile taxes free Accident and health benefits (but not Archer medical savings accounts (Archer MSAs) or long-term care insurance). Efile taxes free Adoption assistance. Efile taxes free Dependent care assistance. Efile taxes free Group-term life insurance coverage (including costs that cannot be excluded from wages). Efile taxes free Health savings accounts (HSAs). Efile taxes free Distributions from an HSA may be used to pay eligible long-term care insurance premiums or qualified long-term care services. Efile taxes free Benefits not allowed. Efile taxes free   A cafeteria plan cannot include the following benefits discussed in section 2. Efile taxes free Archer MSAs. Efile taxes free See Accident and Health Benefits in section 2. Efile taxes free Athletic facilities. Efile taxes free De minimis (minimal) benefits. Efile taxes free Educational assistance. Efile taxes free Employee discounts. Efile taxes free Employer-provided cell phones. Efile taxes free Lodging on your business premises. Efile taxes free Meals. Efile taxes free Moving expense reimbursements. Efile taxes free No-additional-cost services. Efile taxes free Transportation (commuting) benefits. Efile taxes free Tuition reduction. Efile taxes free Working condition benefits. Efile taxes free It also cannot include scholarships or fellowships (discussed in Publication 970, Tax Benefits for Education). Efile taxes free $2,500 limit on a health flexible spending arrangement (FSA). Efile taxes free   For plan years beginning after December 31, 2012, a cafeteria plan may not allow an employee to request salary reduction contributions for a health FSA in excess of $2,500. Efile taxes free For plan years beginning after December 31, 2013, the limit is unchanged at $2,500. Efile taxes free   A cafeteria plan offering a health FSA must be amended to specify the $2,500 limit (or any lower limit set by the employer). Efile taxes free While cafeteria plans generally must be amended on a prospective basis, an amendment that is adopted on or before December 31, 2014, may be made effective retroactively, provided that in operation the cafeteria plan meets the limit for plan years beginning after December 31, 2012. Efile taxes free A cafeteria plan that does not limit health FSA contributions to the dollar limit is not a cafeteria plan and all benefits offered under the plan are includible in the employee's gross income. Efile taxes free   For more information, see Notice 2012-40, 2012-26 I. Efile taxes free R. Efile taxes free B. Efile taxes free 1046, available at www. Efile taxes free irs. Efile taxes free gov/irb/2012-26_IRB/ar09. Efile taxes free html. Efile taxes free Employee. Efile taxes free   For these plans, treat the following individuals as employees. Efile taxes free A current common-law employee. Efile taxes free See section 2 in Publication 15 (Circular E) for more information. Efile taxes free A full-time life insurance agent who is a current statutory employee. Efile taxes free A leased employee who has provided services to you on a substantially full-time basis for at least a year if the services are performed under your primary direction or control. Efile taxes free Exception for S corporation shareholders. Efile taxes free   Do not treat a 2% shareholder of an S corporation as an employee of the corporation for this purpose. Efile taxes free A 2% shareholder for this purpose is someone who directly or indirectly owns (at any time during the year) more than 2% of the corporation's stock or stock with more than 2% of the voting power. Efile taxes free Treat a 2% shareholder as you would a partner in a partnership for fringe benefit purposes, but do not treat the benefit as a reduction in distributions to the 2% shareholder. Efile taxes free Plans that favor highly compensated employees. Efile taxes free   If your plan favors highly compensated employees as to eligibility to participate, contributions, or benefits, you must include in their wages the value of taxable benefits they could have selected. Efile taxes free A plan you maintain under a collective bargaining agreement does not favor highly compensated employees. Efile taxes free   A highly compensated employee for this purpose is any of the following employees. Efile taxes free An officer. Efile taxes free A shareholder who owns more than 5% of the voting power or value of all classes of the employer's stock. Efile taxes free An employee who is highly compensated based on the facts and circumstances. Efile taxes free A spouse or dependent of a person described in (1), (2), or (3). Efile taxes free Plans that favor key employees. Efile taxes free   If your plan favors key employees, you must include in their wages the value of taxable benefits they could have selected. Efile taxes free A plan favors key employees if more than 25% of the total of the nontaxable benefits you provide for all employees under the plan go to key employees. Efile taxes free However, a plan you maintain under a collective bargaining agreement does not favor key employees. Efile taxes free   A key employee during 2014 is generally an employee who is either of the following. Efile taxes free An officer having annual pay of more than $170,000. Efile taxes free An employee who for 2014 is either of the following. Efile taxes free A 5% owner of your business. Efile taxes free A 1% owner of your business whose annual pay was more than $150,000. Efile taxes free Simple Cafeteria Plans Eligible employers meeting contribution requirements and eligibility and participation requirements can establish a simple cafeteria plan. Efile taxes free Simple cafeteria plans are treated as meeting the nondiscrimination requirements of a cafeteria plan and certain benefits under a cafeteria plan. Efile taxes free Eligible employer. Efile taxes free   You are an eligible employer if you employ an average of 100 or fewer employees during either of the 2 preceding years. Efile taxes free If your business was not in existence throughout the preceding year, you are eligible if you reasonably expect to employ an average of 100 or fewer employees in the current year. Efile taxes free If you establish a simple cafeteria plan in a year that you employ an average of 100 or fewer employees, you are considered an eligible employer for any subsequent year as long as you do not employ an average of 200 or more employees in a subsequent year. Efile taxes free Eligibility and participation requirements. Efile taxes free   These requirements are met if all employees who had at least 1,000 hours of service for the preceding plan year are eligible to participate and each employee eligible to participate in the plan may elect any benefit available under the plan. Efile taxes free You may elect to exclude from the plan employees who: Are under age 21 before the close of the plan year, Have less than 1 year of service with you as of any day during the plan year, Are covered under a collective bargaining agreement, or Are nonresident aliens working outside the United States whose income did not come from a U. Efile taxes free S. Efile taxes free source. Efile taxes free Contribution requirements. Efile taxes free   You must make a contribution to provide qualified benefits on behalf of each qualified employee in an amount equal to: A uniform percentage (not less than 2%) of the employee’s compensation for the plan year, or An amount which is at least 6% of the employee’s compensation for the plan year or twice the amount of the salary reduction contributions of each qualified employee, whichever is less. Efile taxes free If the contribution requirements are met using option (2), the rate of contribution to any salary reduction contribution of a highly compensated or key employee can not be greater than the rate of contribution to any other employee. Efile taxes free More information. Efile taxes free   For more information about cafeteria plans, see section 125 of the Internal Revenue Code and its regulations. Efile taxes free 2. Efile taxes free Fringe Benefit Exclusion Rules This section discusses the exclusion rules that apply to fringe benefits. Efile taxes free These rules exclude all or part of the value of certain benefits from the recipient's pay. Efile taxes free The excluded benefits are not subject to federal income tax withholding. Efile taxes free Also, in most cases, they are not subject to social security, Medicare, or federal unemployment (FUTA) tax and are not reported on Form W-2. Efile taxes free This section discusses the exclusion rules for the following fringe benefits. Efile taxes free Accident and health benefits. Efile taxes free Achievement awards. Efile taxes free Adoption assistance. Efile taxes free Athletic facilities. Efile taxes free De minimis (minimal) benefits. Efile taxes free Dependent care assistance. Efile taxes free Educational assistance. Efile taxes free Employee discounts. Efile taxes free Employee stock options. Efile taxes free Employer-provided cell phones. Efile taxes free Group-term life insurance coverage. Efile taxes free Health savings accounts (HSAs). Efile taxes free Lodging on your business premises. Efile taxes free Meals. Efile taxes free Moving expense reimbursements. Efile taxes free No-additional-cost services. Efile taxes free Retirement planning services. Efile taxes free Transportation (commuting) benefits. Efile taxes free Tuition reduction. Efile taxes free Working condition benefits. Efile taxes free See Table 2-1, later, for an overview of the employment tax treatment of these benefits. Efile taxes free Table 2-1. Efile taxes free Special Rules for Various Types of Fringe Benefits (For more information, see the full discussion in this section. Efile taxes free ) Treatment Under Employment Taxes Type of Fringe Benefit Income Tax Withholding Social Security and Medicare (including Additional Medicare Tax when wages are paid in excess of $200,000) Federal Unemployment (FUTA) Accident and health benefits Exempt1,2, except for long-term care benefits provided through a flexible spending or similar arrangement. Efile taxes free Exempt, except for certain payments to S corporation employees who are 2% shareholders. Efile taxes free Exempt Achievement awards Exempt1 up to $1,600 for qualified plan awards ($400 for nonqualified awards). Efile taxes free Adoption assistance Exempt1,3 Taxable Taxable Athletic facilities Exempt if substantially all use during the calendar year is by employees, their spouses, and their dependent children and the facility is operated by the employer on premises owned or leased by the employer. Efile taxes free De minimis (minimal) benefits Exempt Exempt Exempt Dependent care assistance Exempt3 up to certain limits, $5,000 ($2,500 for married employee filing separate return). Efile taxes free Educational assistance Exempt up to $5,250 of benefits each year. Efile taxes free (See Educational Assistance , later in this section. Efile taxes free ) Employee discounts Exempt3 up to certain limits. Efile taxes free (See Employee Discounts , later in this section. Efile taxes free ) Employee stock options See Employee Stock Options , later in this section. Efile taxes free Employer-provided cell phones Exempt if provided primarily for noncompensatory business purposes. Efile taxes free Group-term life insurance coverage Exempt Exempt1,4, 7 up to cost of $50,000 of coverage. Efile taxes free (Special rules apply to former employees. Efile taxes free ) Exempt Health savings accounts (HSAs) Exempt for qualified individuals up to the HSA contribution limits. Efile taxes free (See Health Savings Accounts , later in this section. Efile taxes free ) Lodging on your business premises Exempt1 if furnished for your convenience as a condition of employment. Efile taxes free Meals Exempt if furnished on your business premises for your convenience. Efile taxes free Exempt if de minimis. Efile taxes free Moving expense reimbursements Exempt1 if expenses would be deductible if the employee had paid them. Efile taxes free No-additional-cost services Exempt3 Exempt3 Exempt3 Retirement planning services Exempt5 Exempt5 Exempt5 Transportation (commuting) benefits Exempt1 up to certain limits if for rides in a commuter highway vehicle and/or transit passes ($130), qualified parking ($250), or qualified bicycle commuting reimbursement6 ($20). Efile taxes free (See Transportation (Commuting) Benefits , later in this section. Efile taxes free ) Exempt if de minimis. Efile taxes free Tuition reduction Exempt3 if for undergraduate education (or graduate education if the employee performs teaching or research activities). Efile taxes free Working condition benefits Exempt Exempt Exempt 1 Exemption does not apply to S corporation employees who are 2% shareholders. Efile taxes free 2 Exemption does not apply to certain highly compensated employees under a self-insured plan that favors those employees. Efile taxes free 3 Exemption does not apply to certain highly compensated employees under a program that favors those employees. Efile taxes free 4 Exemption does not apply to certain key employees under a plan that favors those employees. Efile taxes free 5 Exemption does not apply to services for tax preparation, accounting, legal, or brokerage services. Efile taxes free 6 If the employee receives a qualified bicycle commuting reimbursement in a qualified bicycle commuting month, the employee cannot receive commuter highway vehicle, transit pass, or qualified parking benefits in that same month. Efile taxes free 7 You must include in your employee's wages the cost of group-term life insurance beyond $50,000 worth of coverage, reduced by the amount the employee paid toward the insurance. Efile taxes free Report it as wages in boxes 1, 3, and 5 of the employee's Form W-2. Efile taxes free Also, show it in box 12 with code “C. Efile taxes free ” The amount is subject to social security and Medicare taxes, and you may, at your option, withhold federal income tax. Efile taxes free Accident and Health Benefits This exclusion applies to contributions you make to an accident or health plan for an employee, including the following. Efile taxes free Contributions to the cost of accident or health insurance including qualified long-term care insurance. Efile taxes free Contributions to a separate trust or fund that directly or through insurance provides accident or health benefits. Efile taxes free Contributions to Archer MSAs or health savings accounts (discussed in Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans). Efile taxes free This exclusion also applies to payments you directly or indirectly make to an employee under an accident or health plan for employees that are either of the following. Efile taxes free Payments or reimbursements of medical expenses. Efile taxes free Payments for specific injuries or illnesses (such as the loss of the use of an arm or leg). Efile taxes free The payments must be figured without regard to any period of absence from work. Efile taxes free Accident or health plan. Efile taxes free   This is an arrangement that provides benefits for your employees, their spouses, their dependents, and their children (under age 27) in the event of personal injury or sickness. Efile taxes free The plan may be insured or noninsured and does not need to be in writing. Efile taxes free Employee. Efile taxes free   For this exclusion, treat the following individuals as employees. Efile taxes free A current common-law employee. Efile taxes free A full-time life insurance agent who is a current statutory employee. Efile taxes free A retired employee. Efile taxes free A former employee you maintain coverage for based on the employment relationship. Efile taxes free A widow or widower of an individual who died while an employee. Efile taxes free A widow or widower of a retired employee. Efile taxes free For the exclusion of contributions to an accident or health plan, a leased employee who has provided services to you on a substantially full-time basis for at least a year if the services are performed under your primary direction or control. Efile taxes free Special rule for certain government plans. Efile taxes free   For certain government accident and health plans, payments to a deceased plan participant's beneficiary may qualify for the exclusion from gross income if the other requirements for exclusion are met. Efile taxes free See section 105(j) for details. Efile taxes free Exception for S corporation shareholders. Efile taxes free   Do not treat a 2% shareholder of an S corporation as an employee of the corporation for this purpose. Efile taxes free A 2% shareholder is someone who directly or indirectly owns (at any time during the year) more than 2% of the corporation's stock or stock with more than 2% of the voting power. Efile taxes free Treat a 2% shareholder as you would a partner in a partnership for fringe benefit purposes, but do not treat the benefit as a reduction in distributions to the 2% shareholder. Efile taxes free Exclusion from wages. Efile taxes free   You can generally exclude the value of accident or health benefits you provide to an employee from the employee's wages. Efile taxes free Exception for certain long-term care benefits. Efile taxes free   You cannot exclude contributions to the cost of long-term care insurance from an employee's wages subject to federal income tax withholding if the coverage is provided through a flexible spending or similar arrangement. Efile taxes free This is a benefit program that reimburses specified expenses up to a maximum amount that is reasonably available to the employee and is less than five times the total cost of the insurance. Efile taxes free However, you can exclude these contributions from the employee's wages subject to social security, Medicare, and federal unemployment (FUTA) taxes. Efile taxes free S corporation shareholders. Efile taxes free   Because you cannot treat a 2% shareholder of an S corporation as an employee for this exclusion, you must include the value of accident or health benefits you provide to the employee in the employee's wages subject to federal income tax withholding. Efile taxes free However, you can exclude the value of these benefits (other than payments for specific injuries or illnesses) from the employee's wages subject to social security, Medicare, and FUTA taxes. Efile taxes free Exception for highly compensated employees. Efile taxes free   If your plan is a self-insured medical reimbursement plan that favors highly compensated employees, you must include all or part of the amounts you pay to these employees in their wages subject to federal income tax withholding. Efile taxes free However, you can exclude these amounts (other than payments for specific injuries or illnesses) from the employee's wages subject to social security, Medicare, and FUTA taxes. Efile taxes free   A self-insured plan is a plan that reimburses your employees for medical expenses not covered by an accident or health insurance policy. Efile taxes free   A highly compensated employee for this exception is any of the following individuals. Efile taxes free One of the five highest paid officers. Efile taxes free An employee who owns (directly or indirectly) more than 10% in value of the employer's stock. Efile taxes free An employee who is among the highest paid 25% of all employees (other than those who can be excluded from the plan). Efile taxes free   For more information on this exception, see section 105(h) of the Internal Revenue Code and its regulations. Efile taxes free COBRA premiums. Efile taxes free   The exclusion for accident and health benefits applies to amounts you pay to maintain medical coverage for a current or former employee under the Combined Omnibus Budget Reconciliation Act of 1986 (COBRA). Efile taxes free The exclusion applies regardless of the length of employment, whether you directly pay the premiums or reimburse the former employee for premiums paid, and whether the employee's separation is permanent or temporary. Efile taxes free Achievement Awards This exclusion applies to the value of any tangible personal property you give to an employee as an award for either length of service or safety achievement. Efile taxes free The exclusion does not apply to awards of cash, cash equivalents, gift certificates, or other intangible property such as vacations, meals, lodging, tickets to theater or sporting events, stocks, bonds, and other securities. Efile taxes free The award must meet the requirements for employee achievement awards discussed in chapter 2 of Publication 535, Business Expenses. Efile taxes free Employee. Efile taxes free   For this exclusion, treat the following individuals as employees. Efile taxes free A current employee. Efile taxes free A former common-law employee you maintain coverage for in consideration of or based on an agreement relating to prior service as an employee. Efile taxes free A leased employee who has provided services to you on a substantially full-time basis for at least a year if the services are performed under your primary direction or control. Efile taxes free Exception for S corporation shareholders. Efile taxes free   Do not treat a 2% shareholder of an S corporation as an employee of the corporation for this purpose. Efile taxes free A 2% shareholder is someone who directly or indirectly owns (at any time during the year) more than 2% of the corporation's stock or stock with more than 2% of the voting power. Efile taxes free Treat a 2% shareholder as you would a partner in a partnership for fringe benefit purposes, but do not treat the benefit as a reduction in distributions to the 2% shareholder. Efile taxes free Exclusion from wages. Efile taxes free   You can generally exclude the value of achievement awards you give to an employee from the employee's wages if their cost is not more than the amount you can deduct as a business expense for the year. Efile taxes free The excludable annual amount is $1,600 ($400 for awards that are not “qualified plan awards”). Efile taxes free See chapter 2 of Publication 535 for more information about the limit on deductions for employee achievement awards. Efile taxes free    To determine for 2014 whether an achievement award is a “qualified plan award” under the deduction rules described in Publication 535, treat any employee who received more than $115,000 in pay for 2013 as a highly compensated employee. Efile taxes free   If the cost of awards given to an employee is more than your allowable deduction, include in the employee's wages the larger of the following amounts. Efile taxes free The part of the cost that is more than your allowable deduction (up to the value of the awards). Efile taxes free The amount by which the value of the awards exceeds your allowable deduction. Efile taxes free Exclude the remaining value of the awards from the employee's wages. Efile taxes free Adoption Assistance An adoption assistance program is a separate written plan of an employer that meets all of the following requirements. Efile taxes free It benefits employees who qualify under rules set up by you, which do not favor highly compensated employees or their dependents. Efile taxes free To determine whether your plan meets this test, do not consider employees excluded from your plan who are covered by a collective bargaining agreement, if there is evidence that adoption assistance was a subject of good-faith bargaining. Efile taxes free It does not pay more than 5% of its payments during the year for shareholders or owners (or their spouses or dependents). Efile taxes free A shareholder or owner is someone who owns (on any day of the year) more than 5% of the stock or of the capital or profits interest of your business. Efile taxes free You give reasonable notice of the plan to eligible employees. Efile taxes free Employees provide reasonable substantiation that payments or reimbursements are for qualifying expenses. Efile taxes free For this exclusion, a highly compensated employee for 2014 is an employee who meets either of the following tests. Efile taxes free The employee was a 5% owner at any time during the year or the preceding year. Efile taxes free The employee received more than $115,000 in pay for the preceding year. Efile taxes free You can choose to ignore test (2) if the employee was not also in the top 20% of employees when ranked by pay for the preceding year. Efile taxes free You must exclude all payments or reimbursements you make under an adoption assistance program for an employee's qualified adoption expenses from the employee's wages subject to federal income tax withholding. Efile taxes free However, you cannot exclude these payments from wages subject to social security, Medicare, and federal unemployment (FUTA) taxes. Efile taxes free For more information, see the Instructions for Form 8839, Qualified Adoption Expenses. Efile taxes free You must report all qualifying adoption expenses you paid or reimbursed under your adoption assistance program for each employee for the year in box 12 of the employee's Form W-2. Efile taxes free Use code “T” to identify this amount. Efile taxes free Exception for S corporation shareholders. Efile taxes free   For this exclusion, do not treat a 2% shareholder of an S corporation as an employee of the corporation. Efile taxes free A 2% shareholder is someone who directly or indirectly owns (at any time during the year) more than 2% of the corporation's stock or stock with more than 2% of the voting power. Efile taxes free Treat a 2% shareholder as you would a partner in a partnership for fringe benefit purposes, including using the benefit as a reduction in distributions to the 2% shareholder. Efile taxes free Athletic Facilities You can exclude the value of an employee's use of an on-premises gym or other athletic facility you operate from an employee's wages if substantially all use of the facility during the calendar year is by your employees, their spouses, and their dependent children. Efile taxes free For this purpose, an employee's dependent child is a child or stepchild who is the employee's dependent or who, if both parents are deceased, has not attained the age of 25. Efile taxes free On-premises facility. Efile taxes free   The athletic facility must be located on premises you own or lease. Efile taxes free It does not have to be located on your business premises. Efile taxes free However, the exclusion does not apply to an athletic facility for residential use, such as athletic facilities that are part of a resort. Efile taxes free Employee. Efile taxes free   For this exclusion, treat the following individuals as employees. Efile taxes free A current employee. Efile taxes free A former employee who retired or left on disability. Efile taxes free A widow or widower of an individual who died while an employee. Efile taxes free A widow or widower of a former employee who retired or left on disability. Efile taxes free A leased employee who has provided services to you on a substantially full-time basis for at least a year if the services are performed under your primary direction or control. Efile taxes free A partner who performs services for a partnership. Efile taxes free De Minimis (Minimal) Benefits You can exclude the value of a de minimis benefit you provide to an employee from the employee's wages. Efile taxes free A de minimis benefit is any property or service you provide to an employee that has so little value (taking into account how frequently you provide similar benefits to your employees) that accounting for it would be unreasonable or administratively impracticable. Efile taxes free Cash and cash equivalent fringe benefits (for example, use of gift card, charge card, or credit card), no matter how little, are never excludable as a de minimis benefit, except for occasional meal money or transportation fare. Efile taxes free Examples of de minimis benefits include the following. Efile taxes free Personal use of an employer-provided cell phone provided primarily for noncompensatory business purposes. Efile taxes free See Employer-Provided Cell Phones , later in this section, for details. Efile taxes free Occasional personal use of a company copying machine if you sufficiently control its use so that at least 85% of its use is for business purposes. Efile taxes free Holiday gifts, other than cash, with a low fair market value. Efile taxes free Group-term life insurance payable on the death of an employee's spouse or dependent if the face amount is not more than $2,000. Efile taxes free Meals. Efile taxes free See Meals , later in this section, for details. Efile taxes free Occasional parties or picnics for employees and their guests. Efile taxes free Occasional tickets for theater or sporting events. Efile taxes free Transportation fare. Efile taxes free See Transportation (Commuting) Benefits , later in this section, for details. Efile taxes free Employee. Efile taxes free   For this exclusion, treat any recipient of a de minimis benefit as an employee. Efile taxes free Dependent Care Assistance This exclusion applies to household and dependent care services you directly or indirectly pay for or provide to an employee under a dependent care assistance program that covers only your employees. Efile taxes free The services must be for a qualifying person's care and must be provided to allow the employee to work. Efile taxes free These requirements are basically the same as the tests the employee would have to meet to claim the dependent care credit if the employee paid for the services. Efile taxes free For more information, see Qualifying Person Test and Work-Related Expense Test in Publication 503, Child and Dependent Care Expenses. Efile taxes free Employee. Efile taxes free   For this exclusion, treat the following individuals as employees. Efile taxes free A current employee. Efile taxes free A leased employee who has provided services to you on a substantially full-time basis for at least a year if the services are performed under your primary direction or control. Efile taxes free Yourself (if you are a sole proprietor). Efile taxes free A partner who performs services for a partnership. Efile taxes free Exclusion from wages. Efile taxes free   You can exclude the value of benefits you provide to an employee under a dependent care assistance program from the employee's wages if you reasonably believe that the employee can exclude the benefits from gross income. Efile taxes free   An employee can generally exclude from gross income up to $5,000 of benefits received under a dependent care assistance program each year. Efile taxes free This limit is reduced to $2,500 for married employees filing separate returns. Efile taxes free   However, the exclusion cannot be more than the smaller of the earned income of either the employee or employee's spouse. Efile taxes free Special rules apply to determine the earned income of a spouse who is either a student or not able to care for himself or herself. Efile taxes free For more information on the earned income limit, see Publication 503. Efile taxes free Exception for highly compensated employees. Efile taxes free   You cannot exclude dependent care assistance from the wages of a highly compensated employee unless the benefits provided under the program do not favor highly compensated employees and the program meets the requirements described in section 129(d) of the Internal Revenue Code. Efile taxes free   For this exclusion, a highly compensated employee for 2014 is an employee who meets either of the following tests. Efile taxes free The employee was a 5% owner at any time during the year or the preceding year. Efile taxes free The employee received more than $115,000 in pay for the preceding year. Efile taxes free You can choose to ignore test (2) if the employee was not also in the top 20% of employees when ranked by pay for the preceding year. Efile taxes free Form W-2. Efile taxes free   Report the value of all dependent care assistance you provide to an employee under a dependent care assistance program in box 10 of the employee's Form W-2. Efile taxes free Include any amounts you cannot exclude from the employee's wages in boxes 1, 3, and 5. Efile taxes free Report both the nontaxable portion of assistance (up to $5,000) and any assistance above the amount that is non-taxable to the employee. Efile taxes free Example. Efile taxes free   Company A provides a dependent care assistance flexible spending arrangement to its employees through a cafeteria plan. Efile taxes free In addition, it provides occasional on-site dependent care to its employees at no cost. Efile taxes free Emily, an employee of company A, had $4,500 deducted from her pay for the dependent care flexible spending arrangement. Efile taxes free In addition, Emily used the on-site dependent care several times. Efile taxes free The fair market value of the on-site care was $700. Efile taxes free Emily's Form W-2 should report $5,200 of dependent care assistance in box 10 ($4,500 flexible spending arrangement plus $700 on-site dependent care). Efile taxes free Boxes 1, 3, and 5 should include $200 (the amount in excess of the nontaxable assistance), and applicable taxes should be withheld on that amount. Efile taxes free Educational Assistance This exclusion applies to educational assistance you provide to employees under an educational assistance program. Efile taxes free The exclusion also applies to graduate level courses. Efile taxes free Educational assistance means amounts you pay or incur for your employees' education expenses. Efile taxes free These expenses generally include the cost of books, equipment, fees, supplies, and tuition. Efile taxes free However, these expenses do not include the cost of a course or other education involving sports, games, or hobbies, unless the education: Has a reasonable relationship to your business, or Is required as part of a degree program. Efile taxes free Education expenses do not include the cost of tools or supplies (other than textbooks) your employee is allowed to keep at the end of the course. Efile taxes free Nor do they include the cost of lodging, meals, or transportation. Efile taxes free Educational assistance program. Efile taxes free   An educational assistance program is a separate written plan that provides educational assistance only to your employees. Efile taxes free The program qualifies only if all of the following tests are met. Efile taxes free The program benefits employees who qualify under rules set up by you that do not favor highly compensated employees. Efile taxes free To determine whether your program meets this test, do not consider employees excluded from your program who are covered by a collective bargaining agreement if there is evidence that educational assistance was a subject of good-faith bargaining. Efile taxes free The program does not provide more than 5% of its benefits during the year for shareholders or owners. Efile taxes free A shareholder or owner is someone who owns (on any day of the year) more than 5% of the stock or of the capital or profits interest of your business. Efile taxes free The program does not allow employees to choose to receive cash or other benefits that must be included in gross income instead of educational assistance. Efile taxes free You give reasonable notice of the program to eligible employees. Efile taxes free Your program can cover former employees if their employment is the reason for the coverage. Efile taxes free   For this exclusion, a highly compensated employee for 2014 is an employee who meets either of the following tests. Efile taxes free The employee was a 5% owner at any time during the year or the preceding year. Efile taxes free The employee received more than $115,000 in pay for the preceding year. Efile taxes free You can choose to ignore test (2) if the employee was not also in the top 20% of employees when ranked by pay for the preceding year. Efile taxes free Employee. Efile taxes free   For this exclusion, treat the following individuals as employees. Efile taxes free A current employee. Efile taxes free A former employee who retired, left on disability, or was laid off. Efile taxes free A leased employee who has provided services to you on a substantially full-time basis for at least a year if the services are performed under your primary direction or control. Efile taxes free Yourself (if you are a sole proprietor). Efile taxes free A partner who performs services for a partnership. Efile taxes free Exclusion from wages. Efile taxes free   You can exclude up to $5,250 of educational assistance you provide to an employee under an educational assistance program from the employee's wages each year. Efile taxes free Assistance over $5,250. Efile taxes free   If you do not have an educational assistance plan, or you provide an employee with assistance exceeding $5,250, you must include the value of these benefits as wages, unless the benefits are working condition benefits. Efile taxes free Working condition benefits may be excluded from wages. Efile taxes free Property or a service provided is a working condition benefit to the extent that if the employee paid for it, the amount paid would have been deductible as a business or depreciation expense. Efile taxes free See Working Condition Benefits , later, in this section. Efile taxes free Employee Discounts This exclusion applies to a price reduction you give an employee on property or services you offer to customers in the ordinary course of the line of business in which the employee performs substantial services. Efile taxes free However, it does not apply to discounts on real property or discounts on personal property of a kind commonly held for investment (such as stocks or bonds). Efile taxes free Employee. Efile taxes free   For this exclusion, treat the following individuals as employees. Efile taxes free A current employee. Efile taxes free A former employee who retired or left on disability. Efile taxes free A widow or widower of an individual who died while an employee. Efile taxes free A widow or widower of an employee who retired or left on disability. Efile taxes free A leased employee who has provided services to you on a substantially full-time basis for at least a year if the services are performed under your primary direction or control. Efile taxes free A partner who performs services for a partnership. Efile taxes free Exclusion from wages. Efile taxes free   You can generally exclude the value of an employee discount you provide an employee from the employee's wages, up to the following limits. Efile taxes free For a discount on services, 20% of the price you charge nonemployee customers for the service. Efile taxes free For a discount on merchandise or other property, your gross profit percentage times the price you charge nonemployee customers for the property. Efile taxes free   Determine your gross profit percentage in the line of business based on all property you offer to customers (including employee customers) and your experience during the tax year immediately before the tax year in which the discount is available. Efile taxes free To figure your gross profit percentage, subtract the total cost of the property from the total sales price of the property and divide the result by the total sales price of the property. Efile taxes free Exception for highly compensated employees. Efile taxes free   You cannot exclude from the wages of a highly compensated employee any part of the value of a discount that is not available on the same terms to one of the following groups. Efile taxes free All of your employees. Efile taxes free A group of employees defined under a reasonable classification you set up that does not favor highly compensated employees. Efile taxes free   For this exclusion, a highly compensated employee for 2014 is an employee who meets either of the following tests. Efile taxes free The employee was a 5% owner at any time during the year or the preceding year. Efile taxes free The employee received more than $115,000 in pay for the preceding year. Efile taxes free You can choose to ignore test (2) if the employee was not also in the top 20% of employees when ranked by pay for the preceding year. Efile taxes free Employee Stock Options There are three kinds of stock options—incentive stock options, employee stock purchase plan options, and nonstatutory (nonqualified) stock options. Efile taxes free Wages for social security, Medicare, and federal unemployment (FUTA) taxes do not include remuneration resulting from the exercise, after October 22, 2004, of an incentive stock option or under an employee stock purchase plan option, or from any disposition of stock acquired by exercising such an option. Efile taxes free The IRS will not apply these taxes to an exercise before October 23, 2004, of an incentive stock option or an employee stock purchase plan option or to a disposition of stock acquired by such exercise. Efile taxes free Additionally, federal income tax withholding is not required on the income resulting from a disqualifying disposition of stock acquired by the exercise after October 22, 2004, of an incentive stock option or under an employee stock purchase plan option, or on income equal to the discount portion of stock acquired by the exercise, after October 22, 2004, of an employee stock purchase plan option resulting from any disposition of the stock. Efile taxes free The IRS will not apply federal income tax withholding upon the disposition of stock acquired by the exercise, before October 23, 2004, of an incentive stock option or an employee stock purchase plan option. Efile taxes free However, the employer must report as income in box 1 of Form W-2, (a) the discount portion of stock acquired by the exercise of an employee stock purchase plan option upon disposition of the stock, and (b) the spread (between the exercise price and the fair market value of the stock at the time of exercise) upon a disqualifying disposition of stock acquired by the exercise of an incentive stock option or an employee stock purchase plan option. Efile taxes free An employer must report the excess of the fair market value of stock received upon exercise of a nonstatutory stock option over the amount paid for the stock option on Form W-2 in boxes 1, 3 (up to the social security wage base), 5, and in box 12 using the code “V. Efile taxes free ” See Regulations section 1. Efile taxes free 83-7. Efile taxes free An employee who transfers his or her interest in nonstatutory stock options to the employee's former spouse incident to a divorce is not required to include an amount in gross income upon the transfer. Efile taxes free The former spouse, rather than the employee, is required to include an amount in gross income when the former spouse exercises the stock options. Efile taxes free See Revenue Ruling 2002-22 and Revenue Ruling 2004-60 for details. Efile taxes free You can find Revenue Ruling 2002-22 on page 849 of Internal Revenue Bulletin 2002-19 at www. Efile taxes free irs. Efile taxes free gov/pub/irs-irbs/irb02-19. Efile taxes free pdf. Efile taxes free See Revenue Ruling 2004-60, 2004-24 I. Efile taxes free R. Efile taxes free B. Efile taxes free 1051, available at www. Efile taxes free irs. Efile taxes free gov/irb/2004-24_IRB/ar13. Efile taxes free html. Efile taxes free For more information about employee stock options, see sections 421, 422, and 423 of the Internal Revenue Code and their related regulations. Efile taxes free Employer-Provided Cell Phones The value of an employer-provided cell phone, provided primarily for noncompensatory business reasons, is excludable from an employee's income as a working condition fringe benefit. Efile taxes free Personal use of an employer-provided cell phone, provided primarily for noncompensatory business reasons, is excludable from an employee's income as a de minimis fringe benefit. Efile taxes free For the rules relating to these types of benefits, see De Minimis (Minimal) Benefits , earlier in this section, and Working Condition Benefits , later in this section. Efile taxes free Noncompensatory business purposes. Efile taxes free   You provide a cell phone primarily for noncompensatory business purposes if there are substantial business reasons for providing the cell phone. Efile taxes free Examples of substantial business reasons include the employer's: Need to contact the employee at all times for work-related emergencies, Requirement that the employee be available to speak with clients at times when the employee is away from the office, and Need to speak with clients located in other time zones at times outside the employee's normal workday. Efile taxes free Cell phones provided to promote goodwill, boost morale, or attract prospective employees. Efile taxes free   You cannot exclude from an employee's wages the value of a cell phone provided to promote goodwill of an employee, to attract a prospective employee, or as a means of providing additional compensation to an employee. Efile taxes free Additional information. Efile taxes free   For additional information on the tax treatment of employer-provided cell phones, see Notice 2011-72, 2011-38 I. Efile taxes free R. Efile taxes free B. Efile taxes free 407, available at  www. Efile taxes free irs. Efile taxes free gov/irb/2011-38_IRB/ar07. Efile taxes free html. Efile taxes free Group-Term Life Insurance Coverage This exclusion applies to life insurance coverage that meets all the following conditions. Efile taxes free It provides a general death benefit that is not included in income. Efile taxes free You provide it to a group of employees. Efile taxes free See The 10-employee rule , later. Efile taxes free It provides an amount of insurance to each employee based on a formula that prevents individual selection. Efile taxes free This formula must use factors such as the employee's age, years of service, pay, or position. Efile taxes free You provide it under a policy you directly or indirectly carry. Efile taxes free Even if you do not pay any of the policy's cost, you are considered to carry it if you arrange for payment of its cost by your employees and charge at least one employee less than, and at least one other employee more than, the cost of his or her insurance. Efile taxes free Determine the cost of the insurance, for this purpose, as explained under Coverage over the limit , later. Efile taxes free Group-term life insurance does not include the following insurance. Efile taxes free Insurance that does not provide general death benefits, such as travel insurance or a policy providing only accidental death benefits. Efile taxes free Life insurance on the life of your employee's spouse or dependent. Efile taxes free However, you may be able to exclude the cost of this insurance from the employee's wages as a de minimis benefit. Efile taxes free See De Minimis (Minimal) Benefits , earlier in this section. Efile taxes free Insurance provided under a policy that provides a permanent benefit (an economic value that extends beyond 1 policy year, such as paid-up or cash surrender value), unless certain requirements are met. Efile taxes free See Regulations section 1. Efile taxes free 79-1 for details. Efile taxes free Employee. Efile taxes free   For this exclusion, treat the following individuals as employees. Efile taxes free A current common-law employee. Efile taxes free A full-time life insurance agent who is a current statutory employee. Efile taxes free An individual who was formerly your employee under (1) or (2). Efile taxes free A leased employee who has provided services to you on a substantially full-time basis for at least a year if the services are performed under your primary direction and control. Efile taxes free Exception for S corporation shareholders. Efile taxes free   Do not treat a 2% shareholder of an S corporation as an employee of the corporation for this purpose. Efile taxes free A 2% shareholder is someone who directly or indirectly owns (at any time during the year) more than 2% of the corporation's stock or stock with more than 2% of the voting power. Efile taxes free Treat a 2% shareholder as you would a partner in a partnership for fringe benefit purposes, but do not treat the benefit as a reduction in distributions to the 2% shareholder. Efile taxes free The 10-employee rule. Efile taxes free   Generally, life insurance is not group-term life insurance unless you provide it to at least 10 full-time employees at some time during the year. Efile taxes free   For this rule, count employees who choose not to receive the insurance unless, to receive it, they must contribute to the cost of benefits other than the group-term life insurance. Efile taxes free For example, count an employee who could receive insurance by paying part of the cost, even if that employee chooses not to receive it. Efile taxes free However, do not count an employee who must pay part or all of the cost of permanent benefits to get insurance, unless that employee chooses to receive it. Efile taxes free A permanent benefit is an economic value extending beyond one policy year (for example, a paid-up or cash-surrender value) that is provided under a life insurance policy. Efile taxes free Exceptions. Efile taxes free   Even if you do not meet the 10-employee rule, two exceptions allow you to treat insurance as group-term life insurance. Efile taxes free   Under the first exception, you do not have to meet the 10-employee rule if all the following conditions are met. Efile taxes free If evidence that the employee is insurable is required, it is limited to a medical questionnaire (completed by the employee) that does not require a physical. Efile taxes free You provide the insurance to all your full-time employees or, if the insurer requires the evidence mentioned in (1), to all full-time employees who provide evidence the insurer accepts. Efile taxes free You figure the coverage based on either a uniform percentage of pay or the insurer's coverage brackets that meet certain requirements. Efile taxes free See Regulations section 1. Efile taxes free 79-1 for details. Efile taxes free   Under the second exception, you do not have to meet the 10-employee rule if all the following conditions are met. Efile taxes free You provide the insurance under a common plan covering your employees and the employees of at least one other employer who is not related to you. Efile taxes free The insurance is restricted to, but mandatory for, all your employees who belong to, or are represented by, an organization (such as a union) that carries on substantial activities besides obtaining insurance. Efile taxes free Evidence of whether an employee is insurable does not affect an employee's eligibility for insurance or the amount of insurance that employee gets. Efile taxes free   To apply either exception, do not consider employees who were denied insurance for any of the following reasons. Efile taxes free They were 65 or older. Efile taxes free They customarily work 20 hours or less a week or 5 months or less in a calendar year. Efile taxes free They have not been employed for the waiting period given in the policy. Efile taxes free This waiting period cannot be more than 6 months. Efile taxes free Exclusion from wages. Efile taxes free   You can generally exclude the cost of up to $50,000 of group-term life insurance from the wages of an insured employee. Efile taxes free You can exclude the same amount from the employee's wages when figuring social security and Medicare taxes. Efile taxes free In addition, you do not have to withhold federal income tax or pay FUTA tax on any group-term life insurance you provide to an employee. Efile taxes free Coverage over the limit. Efile taxes free   You must include in your employee's wages the cost of group-term life insurance beyond $50,000 worth of coverage, reduced by the amount the employee paid toward the insurance. Efile taxes free Report it as wages in boxes 1, 3, and 5 of the employee's Form W-2. Efile taxes free Also, show it in box 12 with code “C. Efile taxes free ” The amount is subject to social security and Medicare taxes, and you may, at your option, withhold federal income tax. Efile taxes free   Figure the monthly cost of the insurance to include in the employee's wages by multiplying the number of thousands of dollars of all insurance coverage over $50,000 (figured to the nearest $100) by the cost shown in Table 2-2. Efile taxes free For all coverage provided within the calendar year, use the employee's age on the last day of the employee's tax year. Efile taxes free You must prorate the cost from the table if less than a full month of coverage is involved. Efile taxes free Table 2-2. Efile taxes free Cost Per $1,000 of Protection For 1 Month Age Cost Under 25 $ . Efile taxes free 05 25 through 29 . Efile taxes free 06 30 through 34 . Efile taxes free 08 35 through 39 . Efile taxes free 09 40 through 44 . Efile taxes free 10 45 through 49 . Efile taxes free 15 50 through 54 . Efile taxes free 23 55 through 59 . Efile taxes free 43 60 through 64 . Efile taxes free 66 65 through 69 1. Efile taxes free 27 70 and older 2. Efile taxes free 06 You figure the total cost to include in the employee's wages by multiplying the monthly cost by the number of full months' coverage at that cost. Efile taxes free Example. Efile taxes free Tom's employer provides him with group-term life insurance coverage of $200,000. Efile taxes free Tom is 45 years old, is not a key employee, and pays $100 per year toward the cost of the insurance. Efile taxes free Tom's employer must include $170 in his wages. Efile taxes free The $200,000 of insurance coverage is reduced by $50,000. Efile taxes free The yearly cost of $150,000 of coverage is $270 ($. Efile taxes free 15 x 150 x 12), and is reduced by the $100 Tom pays for the insurance. Efile taxes free The employer includes $170 in boxes 1, 3, and 5 of Tom's Form W-2. Efile taxes free The employer also enters $170 in box 12 with code “C. Efile taxes free ” Coverage for dependents. Efile taxes free   Group-term life insurance coverage paid by the employer for the spouse or dependents of an employee may be excludable from income as a de minimis fringe benefit if the face amount is not more than $2,000. Efile taxes free If the face amount is greater than $2,000, the entire cost of the dependent coverage must be included in income unless the amount over $2,000 is purchased with employee contributions on an after-tax basis. Efile taxes free The cost of the insurance is determined by using Table 2-2. Efile taxes free Former employees. Efile taxes free   When group-term life insurance over $50,000 is provided to an employee (including retirees) after his or her termination, the employee share of social security and Medicare taxes on that period of coverage is paid by the former employee with his or her tax return and is not collected by the employer. Efile taxes free You are not required to collect those taxes. Efile taxes free Use the table above to determine the amount of social security and Medicare taxes owed by the former employee for coverage provided after separation from service. Efile taxes free Report those uncollected amounts separately in box 12 of Form W-2 using codes “M” and “N. Efile taxes free ” See the General Instructions for Forms W-2 and W-3 and the Instructions for Form 941. Efile taxes free Exception for key employees. Efile taxes free   Generally, if your group-term life insurance plan favors key employees as to participation or benefits, you must include the entire cost of the insurance in your key employees' wages. Efile taxes free This exception generally does not apply to church plans. Efile taxes free When figuring social security and Medicare taxes, you must also include the entire cost in the employees' wages. Efile taxes free Include the cost in boxes 1, 3, and 5 of Form W-2. Efile taxes free However, you do not have to withhold federal income tax or pay FUTA tax on the cost of any group-term life insurance you provide to an employee. Efile taxes free   For this purpose, the cost of the insurance is the greater of the following amounts. Efile taxes free The premiums you pay for the employee's insurance. Efile taxes free See Regulations section 1. Efile taxes free 79-4T(Q&A 6) for more information. Efile taxes free The cost you figure using Table 2-2. Efile taxes free   For this exclusion, a key employee during 2014 is an employee or former employee who is one of the following individuals. Efile taxes free See section 416(i) of the Internal Revenue Code for more information. Efile taxes free An officer having annual pay of more than $170,000. Efile taxes free An individual who for 2014 was either of the following. Efile taxes free A 5% owner of your business. Efile taxes free A 1% owner of your business whose annual pay was more than $150,000. Efile taxes free   A former employee who was a key employee upon retirement or separation from service is also a key employee. Efile taxes free   Your plan does not favor key employees as to participation if at least one of the following is true. Efile taxes free It benefits at least 70% of your employees. Efile taxes free At least 85% of the participating employees are not key employees. Efile taxes free It benefits employees who qualify under a set of rules you set up that do not favor key employees. Efile taxes free   Your plan meets this participation test if it is part of a cafeteria plan (discussed in section 1) and it meets the participation test for those plans. Efile taxes free   When applying this test, do not consider employees who: Have not completed 3 years of service, Are part-time or seasonal, Are nonresident aliens who receive no U. Efile taxes free S. Efile taxes free source earned income from you, or Are not included in the plan but are in a unit of employees covered by a collective bargaining agreement, if the benefits provided under the plan were the subject of good-faith bargaining between you and employee representatives. Efile taxes free   Your plan does not favor key employees as to benefits if all benefits available to participating key employees are also available to all other participating employees. Efile taxes free Your plan does not favor key employees just because the amount of insurance you provide to your employees is uniformly related to their pay. Efile taxes free S corporation shareholders. Efile taxes free   Because you cannot treat a 2% shareholder of an S corporation as an employee for this exclusion, you must include the cost of all group-term life insurance coverage you provide the 2% shareholder in his or her wages. Efile taxes free When figuring social security and Medicare taxes, you must also include the cost of this coverage in the 2% shareholder's wages. Efile taxes free Include the cost in boxes 1, 3, and 5 of Form W-2. Efile taxes free However, you do not have to withhold federal income tax or pay federal unemployment tax on the cost of any group-term life insurance coverage you provide to the 2% shareholder. Efile taxes free Health Savings Accounts A Health Savings Account (HSA) is an account owned by a qualified individual who is generally your employee or former employee. Efile taxes free Any contributions that you make to an HSA become the employee's property and cannot be withdrawn by you. Efile taxes free Contributions to the account are used to pay current or future medical expenses of the account owner, his or her spouse, and any qualified dependent. Efile taxes free The medical expenses must not be reimbursable by insurance or other sources and their payment from HSA funds (distribution) will not give rise to a medical expense deduction on the individual's federal income tax return. Efile taxes free For more information about HSAs, visit the Department of Treasury's website at www. Efile taxes free treasury. Efile taxes free gov and enter “HSA” in the search box. Efile taxes free Eligibility. Efile taxes free   A qualified individual must be covered by a High Deductible Health Plan (HDHP) and not be covered by other health insurance except for permitted insurance listed under section 223(c)(3) or insurance for accidents, disability, dental care, vision care, or long-term care. Efile taxes free For calendar year 2014, a qualifying HDHP must have a deductible of at least $1,250 for self-only coverage or $2,500 for family coverage and must limit annual out-of-pocket expenses of the beneficiary to $6,350 for self-only coverage and $12,700 for family coverage. Efile taxes free   There are no income limits that restrict an individual's eligibility to contribute to an HSA nor is there a requirement that the account owner have earned income to make a contribution. Efile taxes free Exceptions. Efile taxes free   An individual is not a qualified individual if he or she can be claimed as a dependent on another person's tax return. Efile taxes free Also, an employee's participation in a health flexible spending arrangement (FSA) or health reimbursement arrangement (HRA) generally disqualifies the individual (and employer) from making contributions to his or her HSA. Efile taxes free However, an individual may qualify to participate in an HSA if he or she is participating in only a limited-purpose FSA or HRA or a post-deductible FSA. Efile taxes free For more information, see Other employee health plans in Publication 969. Efile taxes free Employer contributions. Efile taxes free   Up to specified dollar limits, cash contributions to the HSA of a qualified individual (determined monthly) are exempt from federal income tax withholding, social security tax, Medicare tax, and FUTA tax. Efile taxes free For 2014, you can contribute up to $3,300 for self-only coverage or $6,550 for family coverage to a qualified individual's HSA. Efile taxes free   The contribution amounts listed above are increased by $1,000 for a qualified individual who is age 55 or older at any time during the year. Efile taxes free For two qualified individuals who are married to each other and who each are age 55 or older at any time during the year, each spouse's contribution limit is increased by $1,000 provided each spouse has a separate HSA. Efile taxes free No contributions can be made to an individual's HSA after he or she becomes enrolled in Medicare Part A or Part B. Efile taxes free Nondiscrimination rules. Efile taxes free    Your contribution amount to an employee's HSA must be comparable for all employees who have comparable coverage during the same period. Efile taxes free Otherwise, there will be an excise tax equal to 35% of the amount you contributed to all employees' HSAs. Efile taxes free   For guidance on employer comparable contributions to HSAs under section 4980G in instances where an employee has not established an HSA by December 31 and in instances where an employer accelerates contributions for the calendar year for employees who have incurred qualified medical expenses, see Regulations section 54. Efile taxes free 4980G-4. Efile taxes free Exception. Efile taxes free   The Tax Relief and Health Care Act of 2006 allows employers to make larger HSA contributions for a nonhighly compensated employee than for a highly compensated employee. Efile taxes free A highly compensated employee for 2014 is an employee who meets either of the following tests. Efile taxes free The employee was a 5% owner at any time during the year or the preceding year. Efile taxes free The employee received more than $115,000 in pay for the preceding year. Efile taxes free You can choose to ignore test (2) if the employee was not also in the top 20% of employees when ranked by pay for the preceding year. Efile taxes free Partnerships and S corporations. Efile taxes free   Partners and 2% shareholders of an S corporation are not eligible for salary reduction (pre-tax) contributions to an HSA. Efile taxes free Employer contributions to the HSA of a bona fide partner or 2% shareholder are treated as distributions or guaranteed payments as determined by the facts and circumstances. Efile taxes free Cafeteria plans. Efile taxes free   You may contribute to an employee's HSA using a cafeteria plan and your contributions are not subject to the statutory comparability rules. Efile taxes free However, cafeteria plan nondiscrimination rules still apply. Efile taxes free For example, contributions under a cafeteria plan to employee HSAs cannot be greater for higher-paid employees than they are for lower-paid employees. Efile taxes free Contributions that favor lower-paid employees are not prohibited. Efile taxes free Reporting requirements. Efile taxes free   You must report your contributions to an employee's HSA in box 12 of Form W-2 using code “W. Efile taxes free ” The trustee or custodian of the HSA, generally a bank or insurance company, reports distributions from the HSA using Form 1099-SA, Distributions From an HSA, Archer MSA, or Medicare Advantage MSA. Efile taxes free Lodging on Your Business Premises You can exclude the value of lodging you furnish to an employee from the employee's wages if it meets the following tests. Efile taxes free It is furnished on your business premises. Efile taxes free It is furnished for your convenience. Efile taxes free The employee must accept it as a condition of employment. Efile taxes free Different tests may apply to lodging furnished by educational institutions. Efile taxes free See section 119(d) of the Internal Revenue Code for details. Efile taxes free The exclusion does not apply if you allow your employee to choose to receive additional pay instead of lodging. Efile taxes free On your business premises. Efile taxes free   For this exclusion, your business premises is generally your employee's place of work. Efile taxes free For special rules that apply to lodging furnished in a camp located in a foreign country, see section 119(c) of the Internal Revenue Code and its regulations. Efile taxes free For your convenience. Efile taxes free   Whether or not you furnish lodging for your convenience as an employer depends on all the facts and circumstances. Efile taxes free You furnish the lodging to your employee for your convenience if you do this for a substantial business reason other than to provide the employee with additional pay. Efile taxes free This is true even if a law or an employment contract provides that the lodging is furnished as pay. Efile taxes free However, a written statement that the lodging is furnished for your convenience is not sufficient. Efile taxes free Condition of employment. Efile taxes free   Lodging meets this test if you require your employees to accept the lodging because they need to live on your business premises to be able to properly perform their duties. Efile taxes free Examples include employees who must be available at all times and employees who could not perform their required duties without being furnished the lodging. Efile taxes free   It does not matter whether you must furnish the lodging as pay under the terms of an employment contract or a law fixing the terms of employment. Efile taxes free Example. Efile taxes free A hospital gives Joan, an employee of the hospital, the choice of living at the hospital free of charge or living elsewhere and receiving a cash allowance in addition to her regular salary. Efile taxes free If Joan chooses to live at the hospital, the hospital cannot exclude the value of the lodging from her wages because she is not required to live at the hospital to properly perform the duties of her employment. Efile taxes free S corporation shareholders. Efile taxes free   For this exclusion, do not treat a 2% shareholder of an S corporation as an employee of the corporation. Efile taxes free A 2% shareholder is someone who directly or indirectly owns (at any time during the year) more than 2% of the corporation's stock or stock with more than 2% of the voting power. Efile taxes free Treat a 2% shareholder as you would a partner in a partnership for fringe benefit purposes, but do not treat the benefit as a reduction in distributions to the 2% shareholder. Efile taxes free Meals This section discusses the exclusion rules that apply to de minimis meals and meals on your business premises. Efile taxes free De Minimis Meals You can exclude any occasional meal or meal money you provide to an employee if it has so little value (taking into account how frequently you provide meals to your employees) that accounting for it would be unreasonable or administratively impracticable. Efile taxes free The exclusion applies, for example, to the following items. Efile taxes free Coffee, doughnuts, or soft drinks. Efile taxes free Occasional meals or meal money provided to enable an employee to work overtime. Efile taxes free However, the exclusion does not apply to meal money figured on the basis of hours worked. Efile taxes free Occasional parties or picnics for employees and their guests. Efile taxes free This exclusion also applies to meals you provide at an employer-operated eating facility for employees if the annual revenue from the facility equals or exceeds the direct costs of the facility. Efile taxes free For this purpose, your revenue from providing a meal is considered equal to the facility's direct operating costs to provide that meal if its value can be excluded from an employee's wages as explained under Meals on Your Business Premises , later. Efile taxes free If food or beverages you furnish to employees qualify as a de minimis benefit, you can deduct their full cost. Efile taxes free The 50% limit on deductions for the cost of meals does not apply. Efile taxes free The deduction limit on meals is discussed in chapter 2 of Publication 535. Efile taxes free Employee. Efile taxes free   For this exclusion, treat any recipient of a de minimis meal as