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

TurboTax Federal Free Edition - File Taxes Online

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

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


© 2012 - 2018 All rights reserved.

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

Federal 1040 Ez Form

1099x1040x Amended Tax Return Form1040 Ez 20122011 Income Tax Forms 1040ezFile A Free Tax ExtensionEfile Tax Extension FreeWww Irs Gov Freefile Fillable FormsIrs Instructions 10402011 1040ez Form1040ez Form 2012Irs For 1040xBack Tax FilingPast Year Tax FormsFile Past TaxesIrs Tax Forms 2012How To Fill Out A 1040x InstructionsFree State FilingHow Can I Amend My Tax ReturnIrs Easy FormAmended 1040x InstructionsTurbo Tax Free State FilingUs Military TaxesI Need A 1040x FormFile State Return Only1040ez Online Tax ReturnAmended 1040 Tax Return1040 Com1040ez Tax FormsH&r Block Military Key Code1040ez Form1040ez Income Tax FormMyfreetaxes Org1040 ComAmended Tax FormsFree 1040x OnlineTaxact 2011 Tax Return2010 Income TaxFree State Tax Filing Turbotax Code1040a Income Tax FormTurbo Tax 2013

Federal 1040 Ez Form

Federal 1040 ez form Publication 583 - Main Content Table of Contents What New Business Owners Need To Know Forms of BusinessMore information. Federal 1040 ez form More information. Federal 1040 ez form Exception—Community Income. Federal 1040 ez form Exception—Qualified joint venture. Federal 1040 ez form More information. Federal 1040 ez form More information. Federal 1040 ez form Identification NumbersEmployer Identification Number (EIN) Payee's Identification Number Tax Year Accounting Method Business TaxesIncome Tax Self-Employment Tax Employment Taxes Excise Taxes Depositing Taxes Information Returns PenaltiesWaiver of penalty. Federal 1040 ez form Business ExpensesBusiness Start-Up Costs Depreciation Business Use of Your Home Car and Truck Expenses RecordkeepingWhy Keep Records? Kinds of Records To Keep How Long To Keep Records Sample Record System How to Get More InformationInternal Revenue Service Small Business Administration Other Federal Agencies What New Business Owners Need To Know As a new business owner, you need to know your federal tax responsibilities. Federal 1040 ez form Table 1 can help you learn what those responsibilities are. Federal 1040 ez form Ask yourself each question listed in the table, then see the related discussion to find the answer. Federal 1040 ez form In addition to knowing about federal taxes, you need to make some basic business decisions. Federal 1040 ez form Ask yourself: What are my financial resources? What products and services will I sell? How will I market my products and services? How will I develop a strategic business plan? How will I manage my business on a day-to-day basis? How will I recruit employees? The Small Business Administration (SBA) is a federal agency that can help you answer these types of questions. Federal 1040 ez form For information on how to contact the SBA, see How to Get More Information, later. Federal 1040 ez form Forms of Business The most common forms of business are the sole proprietorship, partnership, and corporation. Federal 1040 ez form When beginning a business, you must decide which form of business to use. Federal 1040 ez form Legal and tax considerations enter into this decision. Federal 1040 ez form Only tax considerations are discussed in this publication. Federal 1040 ez form Your form of business determines which income tax return form you have to file. Federal 1040 ez form See Table 2 to find out which form you have to file. Federal 1040 ez form Sole proprietorships. Federal 1040 ez form   A sole proprietorship is an unincorporated business that is owned by one individual. Federal 1040 ez form It is the simplest form of business organization to start and maintain. Federal 1040 ez form The business has no existence apart from you, the owner. Federal 1040 ez form Its liabilities are your personal liabilities. Federal 1040 ez form You undertake the risks of the business for all assets owned, whether or not used in the business. Federal 1040 ez form You include the income and expenses of the business on your personal tax return. Federal 1040 ez form More information. Federal 1040 ez form   For more information on sole proprietorships, see Publication 334, Tax Guide for Small Business. Federal 1040 ez form If you are a farmer, see Publication 225, Farmer's Tax Guide. Federal 1040 ez form Partnerships. Federal 1040 ez form   A partnership is the relationship existing between two or more persons who join to carry on a trade or business. Federal 1040 ez form Each person contributes money, property, labor, or skill, and expects to share in the profits and losses of the business. Federal 1040 ez form   A partnership must file an annual information return to report the income, deductions, gains, losses, etc. Federal 1040 ez form , from its operations, but it does not pay income tax. Federal 1040 ez form Instead, it “passes through” any profits or losses to its partners. Federal 1040 ez form Each partner includes his or her share of the partnership's items on his or her tax return. Federal 1040 ez form More information. Federal 1040 ez form   For more information on partnerships, see Publication 541, Partnerships. Federal 1040 ez form Husband and wife business. Federal 1040 ez form   If you and your spouse jointly own and operate an unincorporated business and share in the profits and losses, you are partners in a partnership, whether or not you have a formal partnership agreement. Federal 1040 ez form Do not use Schedule C or C-EZ. Federal 1040 ez form Instead, file Form 1065, U. Federal 1040 ez form S. Federal 1040 ez form Return of Partnership Income. Federal 1040 ez form For more information, see Publication 541, Partnerships. Federal 1040 ez form Exception—Community Income. Federal 1040 ez form   If you and your spouse wholly own an unincorporated business as community property under the community property laws of a state, foreign country, or U. Federal 1040 ez form S. Federal 1040 ez form possession, you can treat the business either as a sole proprietorship or a partnership. Federal 1040 ez form The only states with community property laws are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. Federal 1040 ez form A change in your reporting position will be treated as a conversion of the entity. Federal 1040 ez form Exception—Qualified joint venture. Federal 1040 ez form   If you and your spouse each materially participate as the only members of a jointly owned and operated business, and you file a joint return for the tax year, you can make a joint election to be treated as a qualified joint venture instead of a partnership for the tax year. Federal 1040 ez form Making this election will allow you to avoid the complexity of Form 1065 but still give each spouse credit for social security earnings on which retirement benefits are based. Federal 1040 ez form For an explanation of "material participation," see the Instructions for Schedule C, line G. Federal 1040 ez form   To make this election, you must divide all items of income, gain, loss, deduction, and credit attributable to the business between you and your spouse in accordance with your respective interests in the venture. Federal 1040 ez form Each of you must file a separate Schedule C or C-EZ and a separate Schedule SE. Federal 1040 ez form For more information, see Qualified Joint Venture in the Instructions for Schedule SE. Federal 1040 ez form Corporations. Federal 1040 ez form   In forming a corporation, prospective shareholders exchange money, property, or both, for the corporation's capital stock. Federal 1040 ez form A corporation generally takes the same deductions as a sole proprietorship to figure its taxable income. Federal 1040 ez form A corporation can also take special deductions. Federal 1040 ez form   The profit of a corporation is taxed to the corporation when earned, and then is taxed to the shareholders when distributed as dividends. Federal 1040 ez form However, shareholders cannot deduct any loss of the corporation. Federal 1040 ez form More information. Federal 1040 ez form   For more information on corporations, see Publication 542, Corporations. Federal 1040 ez form S corporations. Federal 1040 ez form   An eligible domestic corporation can avoid double taxation (once to the corporation and again to the shareholders) by electing to be treated as an S corporation. Federal 1040 ez form Generally, an S corporation is exempt from federal income tax other than tax on certain capital gains and passive income. Federal 1040 ez form On their tax returns, the S corporation's shareholders include their share of the corporation's separately stated items of income, deduction, loss, and credit, and their share of nonseparately stated income or loss. Federal 1040 ez form More information. Federal 1040 ez form   For more information on S corporations, see the instructions for Form 2553, Election by a Small Business Corporation, and Form 1120S, U. Federal 1040 ez form S. Federal 1040 ez form Income Tax Return for an S Corporation. Federal 1040 ez form Limited liability company. Federal 1040 ez form   A limited liability company (LLC) is an entity formed under state law by filing articles of organization as an LLC. Federal 1040 ez form The members of an LLC are not personally liable for its debts. Federal 1040 ez form An LLC may be classified for federal income tax purposes as either a partnership, a corporation, or an entity disregarded as an entity separate from its owner by applying the rules in regulations section 301. Federal 1040 ez form 7701-3. Federal 1040 ez form For more information, see the instructions for Form 8832, Entity Classification Election. Federal 1040 ez form Identification Numbers You must have a taxpayer identification number so the IRS can process your returns. Federal 1040 ez form The two most common kinds of taxpayer identification numbers are the social security number (SSN) and the employer identification number (EIN). Federal 1040 ez form An SSN is issued to individuals by the Social Security Administration (SSA) and is in the following format: 000–00–0000. Federal 1040 ez form An EIN is issued to individuals (sole proprietors), partnerships, corporations, and other entities by the IRS and is in the following format: 00–0000000. Federal 1040 ez form You must include your taxpayer identification number (SSN or EIN) on all returns and other documents you send to the IRS. Federal 1040 ez form You must also furnish your number to other persons who use your identification number on any returns or documents they send to the IRS. Federal 1040 ez form This includes returns or documents filed to report the following information. Federal 1040 ez form Interest, dividends, royalties, etc. Federal 1040 ez form , paid to you. Federal 1040 ez form Any amount paid to you as a dependent care provider. Federal 1040 ez form Certain other amounts paid to you that total $600 or more for the year. Federal 1040 ez form If you do not furnish your identification number as required, you may be subject to penalties. Federal 1040 ez form See Penalties, later. Federal 1040 ez form Employer Identification Number (EIN) EINs are used to identify the tax accounts of employers, certain sole proprietors, corporations, partnerships, estates, trusts, and other entities. Federal 1040 ez form If you don't already have an EIN, you need to get one if you: Have employees, Have a qualified retirement plan, Operate your business as a corporation or partnership, or File returns for: Employment taxes, or Excise taxes. Federal 1040 ez form Applying for an EIN. Federal 1040 ez form   You may apply for an EIN: Online—Click on the EIN link at www. Federal 1040 ez form irs. Federal 1040 ez form gov/businesses/small. Federal 1040 ez form The EIN is issued immediately once the application information is validated. Federal 1040 ez form By telephone at 1-800-829-4933. Federal 1040 ez form By mailing or faxing Form SS-4, Application for Employer Identification Number. Federal 1040 ez form When to apply. Federal 1040 ez form   You should apply for an EIN early enough to receive the number by the time you must file a return or statement or make a tax deposit. Federal 1040 ez form If you apply by mail, file Form SS-4 at least 4 weeks before you need an EIN. Federal 1040 ez form If you apply by telephone or through the IRS website, you can get an EIN immediately. Federal 1040 ez form If you apply by fax, you can get an EIN within 4 business days. Federal 1040 ez form   If you do not receive your EIN by the time a return is due, file your return anyway. Federal 1040 ez form Write “Applied for” and the date you applied for the number in the space for the EIN. Federal 1040 ez form Do not use your social security number as a substitute for an EIN on your tax returns. Federal 1040 ez form More than one EIN. Federal 1040 ez form   You should have only one EIN. Federal 1040 ez form If you have more than one EIN and are not sure which to use, contact the Internal Revenue Service Center where you file your return. Federal 1040 ez form Give the numbers you have, the name and address to which each was assigned, and the address of your main place of business. Federal 1040 ez form The IRS will tell you which number to use. Federal 1040 ez form More information. Federal 1040 ez form   For more information about EINs, see Publication 1635, Understanding Your EIN. Federal 1040 ez form Payee's Identification Number In the operation of a business, you will probably make certain payments you must report on information returns (discussed later under Information Returns). Federal 1040 ez form The forms used to report these payments must include the payee's identification number. Federal 1040 ez form Employee. Federal 1040 ez form   If you have employees, you must get an SSN from each of them. Federal 1040 ez form Record the name and SSN of each employee exactly as they are shown on the employee's social security card. Federal 1040 ez form If the employee's name is not correct as shown on the card, the employee should request a new card from the SSA. Federal 1040 ez form This may occur, for example, if the employee's name has changed due to marriage or divorce. Federal 1040 ez form   If your employee does not have an SSN, he or she should file Form SS-5, Application for a Social Security Card, with the SSA. Federal 1040 ez form This form is available at SSA offices or by calling 1-800-772-1213. Federal 1040 ez form It is also available from the SSA website at www. Federal 1040 ez form ssa. Federal 1040 ez form gov. Federal 1040 ez form Other payee. Federal 1040 ez form   If you make payments to someone who is not your employee and you must report the payments on an information return, get that person's SSN. Federal 1040 ez form If you make reportable payments to an organization, such as a corporation or partnership, you must get its EIN. Federal 1040 ez form   To get the payee's SSN or EIN, use Form W-9, Request for Taxpayer Identification Number and Certification. Federal 1040 ez form This form is available from IRS offices or by calling 1-800-829-3676. Federal 1040 ez form It is also available from the IRS website at IRS. Federal 1040 ez form gov. Federal 1040 ez form    If the payee does not provide you with an identification number, you may have to withhold part of the payments as backup withholding. Federal 1040 ez form For information on backup withholding, see the Form W-9 instructions and the General Instructions for Certain Information Returns. Federal 1040 ez form Tax Year You must figure your taxable income and file an income tax return based on an annual accounting period called a tax year. Federal 1040 ez form A tax year is usually 12 consecutive months. Federal 1040 ez form There are two kinds of tax years. Federal 1040 ez form Calendar tax year. Federal 1040 ez form A calendar tax year is 12 consecutive months beginning January 1 and ending December 31. Federal 1040 ez form Fiscal tax year. Federal 1040 ez form A fiscal tax year is 12 consecutive months ending on the last day of any month except December. Federal 1040 ez form A 52-53-week tax year is a fiscal tax year that varies from 52 to 53 weeks but does not have to end on the last day of a month. Federal 1040 ez form If you file your first tax return using the calendar tax year and you later begin business as a sole proprietor, become a partner in a partnership, or become a shareholder in an S corporation, you must continue to use the calendar year unless you get IRS approval to change it or are otherwise allowed to change it without IRS approval. Federal 1040 ez form You must use a calendar tax year if: You keep no books. Federal 1040 ez form You have no annual accounting period. Federal 1040 ez form Your present tax year does not qualify as a fiscal year. Federal 1040 ez form You are required to use a calendar year by a provision of the Internal Revenue Code or the Income Tax Regulations. Federal 1040 ez form For more information, see Publication 538, Accounting Periods and Methods. Federal 1040 ez form First-time filer. Federal 1040 ez form   If you have never filed an income tax return, you can adopt either a calendar tax year or a fiscal tax year. Federal 1040 ez form You adopt a tax year by filing your first income tax return using that tax year. Federal 1040 ez form You have not adopted a tax year if you merely did any of the following. Federal 1040 ez form Filed an application for an extension of time to file an income tax return. Federal 1040 ez form Filed an application for an employer identification number. Federal 1040 ez form Paid estimated taxes for that tax year. Federal 1040 ez form Changing your tax year. Federal 1040 ez form   Once you have adopted your tax year, you may have to get IRS approval to change it. Federal 1040 ez form To get approval, you must file Form 1128, Application To Adopt, Change, or Retain a Tax Year. Federal 1040 ez form You may have to pay a fee. Federal 1040 ez form For more information, see Publication 538. Federal 1040 ez form Accounting Method An accounting method is a set of rules used to determine when and how income and expenses are reported. Federal 1040 ez form You choose an accounting method for your business when you file your first income tax return. Federal 1040 ez form There are two basic accounting methods. Federal 1040 ez form Cash method. Federal 1040 ez form Under the cash method, you report income in the tax year you receive it. Federal 1040 ez form You usually deduct or capitalize expenses in the tax year you pay them. Federal 1040 ez form Accrual method. Federal 1040 ez form Under an accrual method, you generally report income in the tax year you earn it, even though you may receive payment in a later year. Federal 1040 ez form You deduct or capitalize expenses in the tax year you incur them, whether or not you pay them that year. Federal 1040 ez form For other methods, see Publication 538. Federal 1040 ez form If you need inventories to show income correctly, you must generally use an accrual method of accounting for purchases and sales. Federal 1040 ez form Inventories include goods held for sale in the normal course of business. Federal 1040 ez form They also include raw materials and supplies that will physically become a part of merchandise intended for sale. Federal 1040 ez form Inventories are explained in Publication 538. Federal 1040 ez form Certain small business taxpayers can use the cash method of accounting and can also account for inventoriable items as materials and supplies that are not incidental. Federal 1040 ez form For more information, see Publication 538. Federal 1040 ez form You must use the same accounting method to figure your taxable income and to keep your books. Federal 1040 ez form Also, you must use an accounting method that clearly shows your income. Federal 1040 ez form In general, any accounting method that consistently uses accounting principles suitable for your trade or business clearly shows income. Federal 1040 ez form An accounting method clearly shows income only if it treats all items of gross income and expense the same from year to year. Federal 1040 ez form More than one business. Federal 1040 ez form   When you own more than one business, you can use a different accounting method for each business if the method you use for each clearly shows your income. Federal 1040 ez form You must keep a complete and separate set of books and records for each business. Federal 1040 ez form Changing your method of accounting. Federal 1040 ez form   Once you have set up your accounting method, you must generally get IRS approval before you can change to another method. Federal 1040 ez form A change in accounting method not only includes a change in your overall system of accounting, but also a change in the treatment of any material item. Federal 1040 ez form For examples of changes that require approval and information on how to get approval for the change, see Publication 538. Federal 1040 ez form Business Taxes The form of business you operate determines what taxes you must pay and how you pay them. Federal 1040 ez form The following are the four general kinds of business taxes. Federal 1040 ez form Income tax. Federal 1040 ez form Self-employment tax. Federal 1040 ez form Employment taxes. Federal 1040 ez form Excise taxes. Federal 1040 ez form See Table 2 for the forms you file to report these taxes. Federal 1040 ez form You may want to get Publication 509. Federal 1040 ez form It has tax calendars that tell you when to file returns and make tax payments. Federal 1040 ez form Income Tax All businesses except partnerships must file an annual income tax return. Federal 1040 ez form Partnerships file an information return. Federal 1040 ez form Which form you use depends on how your business is organized. Federal 1040 ez form See Table 2 to find out which return you have to file. Federal 1040 ez form The federal income tax is a pay-as-you-go tax. Federal 1040 ez form You must pay the tax as you earn or receive income during the year. Federal 1040 ez form An employee usually has income tax withheld from his or her pay. Federal 1040 ez form If you do not pay your tax through withholding, or do not pay enough tax that way, you might have to pay estimated tax. Federal 1040 ez form If you are not required to make estimated tax payments, you may pay any tax due when you file your return. Federal 1040 ez form Table 2. Federal 1040 ez form Which Forms Must I File? IF you are a. Federal 1040 ez form . Federal 1040 ez form . Federal 1040 ez form   THEN you may be liable for. Federal 1040 ez form . Federal 1040 ez form . Federal 1040 ez form   Use Form. Federal 1040 ez form . Federal 1040 ez form . Federal 1040 ez form Sole proprietor   Income tax   1040 and Schedule C 1 or C-EZ (Schedule F 1 for farm business)     Self-employment tax   1040 and Schedule SE     Estimated tax   1040-ES     Employment taxes:         • Social security and Medicare   taxes and income tax   withholding   941 or 944 (943 for farm employees)     • Federal unemployment (FUTA)   tax   940     Excise taxes   See Excise Taxes Partnership   Annual return of income   1065     Employment taxes   Same as sole proprietor     Excise taxes   See Excise Taxes Partner in a partnership (individual)   Income tax   1040 and Schedule E 2     Self-employment tax   1040 and Schedule SE     Estimated tax   1040-ES Corporation or S corporation   Income tax   1120 (corporation) 2  1120S (S corporation) 2     Estimated tax   1120-W (corporation only)     Employment taxes   Same as sole proprietor     Excise taxes   See Excise Taxes S corporation shareholder   Income tax   1040 and Schedule E 2     Estimated tax   1040-ES 1 File a separate schedule for each business. Federal 1040 ez form 2 Various other schedules may be needed. Federal 1040 ez form Estimated tax. Federal 1040 ez form   Generally, you must pay taxes on income, including self-employment tax (discussed next), by making regular payments of estimated tax during the year. Federal 1040 ez form Sole proprietors, partners, and S corporation shareholders. Federal 1040 ez form   You generally have to make estimated tax payments if you expect to owe tax of $1,000 or more when you file your return. Federal 1040 ez form Use Form 1040-ES, Estimated Tax for Individuals, to figure and pay your estimated tax. Federal 1040 ez form For more information, see Publication 505, Tax Withholding and Estimated Tax. Federal 1040 ez form Corporations. Federal 1040 ez form   You generally have to make estimated tax payments for your corporation if you expect it to owe tax of $500 or more when you file its return. Federal 1040 ez form Use Form 1120-W, Estimated Tax for Corporations, to figure the estimated tax. Federal 1040 ez form You must deposit the payments as explained later under Depositing Taxes. Federal 1040 ez form For more information, see Publication 542. Federal 1040 ez form Self-Employment Tax Self-employment tax (SE tax) is a social security and Medicare tax primarily for individuals who work for themselves. Federal 1040 ez form Your payments of SE tax contribute to your coverage under the social security system. Federal 1040 ez form Social security coverage provides you with retirement benefits, disability benefits, survivor benefits, and hospital insurance (Medicare) benefits. Federal 1040 ez form You must pay SE tax and file Schedule SE (Form 1040) if either of the following applies. Federal 1040 ez form Your net earnings from self-employment were $400 or more. Federal 1040 ez form You had church employee income of $108. Federal 1040 ez form 28 or more. Federal 1040 ez form Use Schedule SE (Form 1040) to figure your SE tax. Federal 1040 ez form For more information, see Publication 334, Tax Guide for Small Business. Federal 1040 ez form You can deduct a portion of your SE tax as an adjustment to income on your Form 1040. Federal 1040 ez form The Social Security Administration (SSA) time limit for posting self-employment income. Federal 1040 ez form   Generally, the SSA will give you credit only for self-employment income reported on a tax return filed within 3 years, 3 months, and 15 days after the tax year you earned the income. Federal 1040 ez form If you file your tax return or report a change in your self-employment income after this time limit, the SSA may change its records, but only to remove or reduce the amount. Federal 1040 ez form The SSA will not change its records to increase your self-employment income. Federal 1040 ez form Employment Taxes This section briefly discusses the employment taxes you must pay, the forms you must file to report them, and other forms that must be filed when you have employees. Federal 1040 ez form Employment taxes include the following. Federal 1040 ez form Social security and Medicare taxes. Federal 1040 ez form Federal income tax withholding. Federal 1040 ez form Federal unemployment (FUTA) tax. Federal 1040 ez form If you have employees, you will need to get Publication 15, Circular E, Employer's Tax Guide. Federal 1040 ez form If you have agricultural employees, get Publication 51, Circular A, Agricultural Employer's Tax Guide. Federal 1040 ez form These publications explain your tax responsibilities as an employer. Federal 1040 ez form If you are not sure whether the people working for you are your employees, see Publication 15-A, Employer's Supplemental Tax Guide. Federal 1040 ez form That publication has information to help you determine whether an individual is an employee or an independent contractor. Federal 1040 ez form If you classify an employee as an independent contractor, you can be held liable for employment taxes for that worker plus a penalty. Federal 1040 ez form An independent contractor is someone who is self-employed. Federal 1040 ez form Generally, you do not have to withhold or pay any taxes on payments to an independent contractor. Federal 1040 ez form Federal Income, Social Security, and Medicare Taxes You generally must withhold federal income tax from your employee's wages. Federal 1040 ez form To figure how much federal income tax to withhold from each wage payment, use the employee's Form W-4 (discussed later under Hiring Employees) and the methods described in Publication 15. Federal 1040 ez form Social security and Medicare taxes pay for benefits that workers and their families receive under the Federal Insurance Contributions Act (FICA). Federal 1040 ez form Social security tax pays for benefits under the old-age, survivors, and disability insurance part of FICA. Federal 1040 ez form Medicare tax pays for benefits under the hospital insurance part of FICA. Federal 1040 ez form You withhold part of these taxes from your employee's wages and you pay a part yourself. Federal 1040 ez form To find out how much social security and Medicare tax to withhold and to pay, see Publication 15. Federal 1040 ez form Which form do I file?   Report these taxes on Form 941, Employer's QUARTERLY Federal Tax Return, or Form 944, Employer's ANNUAL Federal Tax Return. Federal 1040 ez form (Farm employers use Form 943, Employer's Annual Federal Tax Return for Agricultural Employees. Federal 1040 ez form ) Federal Unemployment (FUTA) Tax The federal unemployment tax is part of the federal and state program under the Federal Unemployment Tax Act (FUTA) that pays unemployment compensation to workers who lose their jobs. Federal 1040 ez form You report and pay FUTA tax separately from social security and Medicare taxes and withheld income tax. Federal 1040 ez form You pay FUTA tax only from your own funds. Federal 1040 ez form Employees do not pay this tax or have it withheld from their pay. Federal 1040 ez form Which form do I file?   Report federal unemployment tax on Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return. Federal 1040 ez form See Publication 15 to find out if you can use this form. Federal 1040 ez form Hiring Employees Have the employees you hire fill out Form I-9 and Form W-4. Federal 1040 ez form Form I-9. Federal 1040 ez form   You must verify that each new employee is legally eligible to work in the United States. Federal 1040 ez form Both you and the employee must complete the U. Federal 1040 ez form S. Federal 1040 ez form Citizenship and Immigration Services (USCIS) Form I-9, Employment Eligibility Verification. Federal 1040 ez form You can get the form from USCIS offices or from the USCIS website at www. Federal 1040 ez form uscis. Federal 1040 ez form gov. Federal 1040 ez form Call the USCIS at 1-800-375-5283 for more information about your responsibilities. Federal 1040 ez form Form W-4. Federal 1040 ez form   Each employee must fill out Form W-4, Employee's Withholding Allowance Certificate. Federal 1040 ez form You will use the filing status and withholding allowances shown on this form to figure the amount of income tax to withhold from your employee's wages. Federal 1040 ez form For more information, see Publication 15. Federal 1040 ez form Employees claiming more than 10 withholding allowances. Federal 1040 ez form   An employer of an employee who claims more than 10 withholding allowances for wages paid can use several methods of withholding. Federal 1040 ez form See section 16 of Publication 15. Federal 1040 ez form Form W-2 Wage Reporting After the calendar year is over, you must furnish copies of Form W-2, Wage and Tax Statement, to each employee to whom you paid wages during the year. Federal 1040 ez form You must also send copies to the Social Security Administration. Federal 1040 ez form See Information Returns, later, for more information on Form W-2. Federal 1040 ez form Excise Taxes This section describes the excise taxes you may have to pay and the forms you have to file if you do any of the following. Federal 1040 ez form Manufacture or sell certain products. Federal 1040 ez form Operate certain kinds of businesses. Federal 1040 ez form Use various kinds of equipment, facilities, or products. Federal 1040 ez form Receive payment for certain services. Federal 1040 ez form For more information on excise taxes, see Publication 510, Excise Taxes. Federal 1040 ez form Form 720. Federal 1040 ez form   The federal excise taxes reported on Form 720, Quarterly Federal Excise Tax Return, consist of several broad categories of taxes, including the following. Federal 1040 ez form Environmental taxes. Federal 1040 ez form Communications and air transportation taxes. Federal 1040 ez form Fuel taxes. Federal 1040 ez form Tax on the first retail sale of heavy trucks, trailers, and tractors. Federal 1040 ez form Manufacturers taxes on the sale or use of a variety of different articles. Federal 1040 ez form Form 2290. Federal 1040 ez form   There is a federal excise tax on certain trucks, truck tractors, and buses used on public highways. Federal 1040 ez form The tax applies to vehicles having a taxable gross weight of 55,000 pounds or more. Federal 1040 ez form Report the tax on Form 2290, Heavy Highway Vehicle Use Tax Return. Federal 1040 ez form For more information, see the instructions for Form 2290. Federal 1040 ez form Form 730. Federal 1040 ez form   If you are in the business of accepting wagers or conducting a wagering pool or lottery, you may be liable for the federal excise tax on wagering. Federal 1040 ez form Use Form 730, Monthly Tax Return for Wagers, to figure the tax on the wagers you receive. Federal 1040 ez form Form 11-C. Federal 1040 ez form   Use Form 11-C, Occupational Tax and Registration Return for Wagering, to register for any wagering activity and to pay the federal occupational tax on wagering. Federal 1040 ez form Depositing Taxes You generally have to deposit employment taxes, certain excise taxes, corporate income tax, and S corporation taxes before you file your return. Federal 1040 ez form Generally, taxpayers are required to deposit taxes through the Electronic Federal Tax Payment System (EFTPS). Federal 1040 ez form Any business that has a federal tax obligation and requests a new EIN will automatically be enrolled in EFTPS. Federal 1040 ez form Through the mail, the business will receive an EFTPS PIN package that contains instructions for activating its EFTPS enrollment. Federal 1040 ez form Information Returns If you make or receive payments in your business, you may have to report them to the IRS on information returns. Federal 1040 ez form The IRS compares the payments shown on the information returns with each person's income tax return to see if the payments were included in income. Federal 1040 ez form You must give a copy of each information return you are required to file to the recipient or payer. Federal 1040 ez form In addition to the forms described below, you may have to use other returns to report certain kinds of payments or transactions. Federal 1040 ez form For more details on information returns and when you have to file them, see the General Instructions for Certain Information Returns. Federal 1040 ez form Form 1099-MISC. Federal 1040 ez form   Use Form 1099-MISC, Miscellaneous Income, to report certain payments you make in your trade or business. Federal 1040 ez form These payments include the following items. Federal 1040 ez form Payments of $600 or more for services performed for your business by people not treated as your employees, such as subcontractors, attorneys, accountants, or directors. Federal 1040 ez form Rent payments of $600 or more, other than rents paid to real estate agents. Federal 1040 ez form Prizes and awards of $600 or more that are not for services, such as winnings on TV or radio shows. Federal 1040 ez form Royalty payments of $10 or more. Federal 1040 ez form Payments to certain crew members by operators of fishing boats. Federal 1040 ez form You also use Form 1099-MISC to report your sales of $5,000 or more of consumer goods to a person for resale anywhere other than in a permanent retail establishment. Federal 1040 ez form Form W-2. Federal 1040 ez form   You must file Form W-2, Wage and Tax Statement, to report payments to your employees, such as wages, tips, and other compensation, withheld income, social security, and Medicare taxes. Federal 1040 ez form For more information on what to report on Form W-2, see the Instructions for Forms W-2 and W-3. Federal 1040 ez form Form 8300. Federal 1040 ez form   You must file Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business, if you receive more than $10,000 in cash in one transaction or two or more related business transactions. Federal 1040 ez form Cash includes U. Federal 1040 ez form S. Federal 1040 ez form and foreign coin and currency. Federal 1040 ez form It also includes certain monetary instruments such as cashier's and traveler's checks and money orders. Federal 1040 ez form For more information, see Publication 1544, Reporting Cash Payments of Over $10,000 (Received in a Trade or Business). Federal 1040 ez form Penalties The law provides penalties for not filing returns or paying taxes as required. Federal 1040 ez form Criminal penalties may be imposed for willful failure to file, tax evasion, or making a false statement. Federal 1040 ez form Failure to file tax returns. Federal 1040 ez form   If you do not file your tax return by the due date, you may have to pay a penalty. Federal 1040 ez form The penalty is based on the tax not paid by the due date. Federal 1040 ez form See your tax return instructions for more information about this penalty. Federal 1040 ez form Failure to pay tax. Federal 1040 ez form   If you do not pay your taxes by the due date, you will have to pay a penalty for each month, or part of a month, that your taxes are not paid. Federal 1040 ez form For more information, see your tax return instructions. Federal 1040 ez form Failure to withhold, deposit, or pay taxes. Federal 1040 ez form   If you do not withhold income, social security, or Medicare taxes from employees, or if you withhold taxes but do not deposit them or pay them to the IRS, you may be subject to a penalty of the unpaid tax, plus interest. Federal 1040 ez form You may also be subject to penalties if you deposit the taxes late. Federal 1040 ez form For more information, see Publication 15. Federal 1040 ez form Failure to follow information reporting requirements. Federal 1040 ez form   The following penalties apply if you are required to file information returns. Federal 1040 ez form For more information, see the General Instructions for Certain Information Returns. Federal 1040 ez form Failure to file information returns. Federal 1040 ez form A penalty applies if you do not file information returns by the due date, if you do not include all required information, or if you report incorrect information. Federal 1040 ez form Failure to furnish correct payee statements. Federal 1040 ez form A penalty applies if you do not furnish a required statement to a payee by the due date, if you do not include all required information, or if you report incorrect information. Federal 1040 ez form Waiver of penalty. Federal 1040 ez form   These penalties will not apply if you can show that the failures were due to reasonable cause and not willful neglect. Federal 1040 ez form   In addition, there is no penalty for failure to include all the required information, or for including incorrect information, on a de minimis number of information returns if you correct the errors by August 1 of the year the returns are due. Federal 1040 ez form (To be considered de minimis, the number of returns cannot exceed the greater of 10 or ½ of 1% of the total number of returns you are required to file for the year. Federal 1040 ez form ) Failure to supply taxpayer identification number. Federal 1040 ez form   If you do not include your taxpayer identification number (SSN or EIN) or the taxpayer identification number of another person where required on a return, statement, or other document, you may be subject to a penalty of $50 for each failure. Federal 1040 ez form You may also be subject to the $50 penalty if you do not give your taxpayer identification number to another person when it is required on a return, statement, or other document. Federal 1040 ez form Business Expenses You can deduct business expenses on your income tax return. Federal 1040 ez form These are the current operating costs of running your business. Federal 1040 ez form To be deductible, a business expense must be both ordinary and necessary. Federal 1040 ez form An ordinary expense is one that is common and accepted in your field of business, trade, or profession. Federal 1040 ez form A necessary expense is one that is helpful and appropriate for your business, trade, or profession. Federal 1040 ez form An expense does not have to be indispensable to be considered necessary. Federal 1040 ez form The following are brief explanations of some expenses that are of interest to people starting a business. Federal 1040 ez form There are many other expenses that you may be able to deduct. Federal 1040 ez form See your form instructions and Publication 535, Business Expenses. Federal 1040 ez form Business Start-Up Costs Business start-up costs are the expenses you incur before you actually begin business operations. Federal 1040 ez form Your business start-up costs will depend on the type of business you are starting. Federal 1040 ez form They may include costs for advertising, travel, surveys, and training. Federal 1040 ez form These costs are generally capital expenses. Federal 1040 ez form You usually recover costs for a particular asset (such as machinery or office equipment) through depreciation (discussed next). Federal 1040 ez form You can elect to deduct up to $5,000 of business start-up costs and $5,000 of organizational costs paid or incurred after October 22, 2004. Federal 1040 ez form The $5,000 deduction is reduced by the amount your total start-up or organizational costs exceed $50,000. Federal 1040 ez form Any remaining cost must be amortized. Federal 1040 ez form For more information about amortizing start-up and organizational costs, see chapter 7 in Publication 535. Federal 1040 ez form Depreciation If property you acquire to use in your business has a useful life that extends substantially beyond the year it is placed in service, you generally cannot deduct the entire cost as a business expense in the year you acquire it. Federal 1040 ez form You must spread the cost over more than one tax year and deduct part of it each year. Federal 1040 ez form This method of deducting the cost of business property is called depreciation. Federal 1040 ez form Business property you must depreciate includes the following items. Federal 1040 ez form Office furniture. Federal 1040 ez form Buildings. Federal 1040 ez form Machinery and equipment. Federal 1040 ez form You can choose to deduct a limited amount of the cost of certain depreciable property in the year you place the property in service. Federal 1040 ez form This deduction is known as the “section 179 deduction. Federal 1040 ez form ” For more information about depreciation and the section 179 deduction, see Publication 946, How To Depreciate Property. Federal 1040 ez form Depreciation must be taken in the year it is allowable. Federal 1040 ez form Allowable depreciation not taken in a prior year cannot be taken in the current year. Federal 1040 ez form If you do not deduct the correct depreciation, you may be able to make a correction by filing Form 1040X, Amended U. Federal 1040 ez form S. Federal 1040 ez form Individual Income Tax Return, or by changing your accounting method. Federal 1040 ez form For more information on how to correct depreciation deductions, see chapter 1 in Publication 946. Federal 1040 ez form Business Use of Your Home To deduct expenses related to the business use of part of your home, you must meet specific requirements. Federal 1040 ez form Even then, your deduction may be limited. Federal 1040 ez form To qualify to claim expenses for business use of your home, you must meet both the following tests. Federal 1040 ez form Your use of the business part of your home must be: Exclusive (however, see Exceptions to exclusive use, later), Regular, For your trade or business, AND The business part of your home must be one of the following: Your principal place of business (defined later), A place where you meet or deal with patients, clients, or customers in the normal course of your trade or business, or A separate structure (not attached to your home) you use in connection with your trade or business. Federal 1040 ez form Exclusive use. Federal 1040 ez form   To qualify under the exclusive use test, you must use a specific area of your home only for your trade or business. Federal 1040 ez form The area used for business can be a room or other separately identifiable space. Federal 1040 ez form The space does not need to be marked off by a permanent partition. Federal 1040 ez form   You do not meet the requirements of the exclusive use test if you use the area in question both for business and for personal purposes. Federal 1040 ez form Exceptions to exclusive use. Federal 1040 ez form   You do not have to meet the exclusive use test if either of the following applies. Federal 1040 ez form You use part of your home for the storage of inventory or product samples. Federal 1040 ez form You use part of your home as a daycare facility. Federal 1040 ez form For an explanation of these exceptions, see Publication 587, Business Use of Your Home (Including Use by Daycare Providers). Federal 1040 ez form Principal place of business. Federal 1040 ez form   Your home office will qualify as your principal place of business for deducting expenses for its use if you meet the following requirements. Federal 1040 ez form You use it exclusively and regularly for administrative or management activities of your trade or business. Federal 1040 ez form You have no other fixed location where you conduct substantial administrative or management activities of your trade or business. Federal 1040 ez form   Alternatively, if you use your home exclusively and regularly for your business, but your home office does not qualify as your principal place of business based on the previous rules, you determine your principal place of business based on the following factors. Federal 1040 ez form The relative importance of the activities performed at each location. Federal 1040 ez form If the relative importance factor does not determine your principal place of business, the time spent at each location. Federal 1040 ez form    If, after considering your business locations, your home cannot be identified as your principal place of business, you cannot deduct home office expenses. Federal 1040 ez form However, for other ways to qualify to deduct home office expenses, see Publication 587. Federal 1040 ez form Which form do I file?   If you file Schedule C (Form 1040), use Form 8829, Expenses for Business Use of Your Home, to figure your deduction. Federal 1040 ez form If you file Schedule F (Form 1040) or you are a partner, you can use the worksheet in Publication 587. Federal 1040 ez form More information. Federal 1040 ez form   For more information about business use of your home, see Publication 587. Federal 1040 ez form Car and Truck Expenses If you use your car or truck in your business, you can deduct the costs of operating and maintaining it. Federal 1040 ez form You generally can deduct either your actual expenses or the standard mileage rate. Federal 1040 ez form Actual expenses. Federal 1040 ez form   If you deduct actual expenses, you can deduct the cost of the following items: Depreciation Lease payments Registration Garage rent Licenses Repairs Gas Oil Tires Insurance Parking fees Tolls   If you use your vehicle for both business and personal purposes, you must divide your expenses between business and personal use. Federal 1040 ez form You can divide your expenses based on the miles driven for each purpose. Federal 1040 ez form Example. Federal 1040 ez form You are the sole proprietor of a flower shop. Federal 1040 ez form You drove your van 20,000 miles during the year. Federal 1040 ez form 16,000 miles were for delivering flowers to customers and 4,000 miles were for personal use. Federal 1040 ez form You can claim only 80% (16,000 ÷ 20,000) of the cost of operating your van as a business expense. Federal 1040 ez form Standard mileage rate. Federal 1040 ez form   Instead of figuring actual expenses, you may be able to use the standard mileage rate to figure the deductible costs of operating your car, van, pickup, or panel truck for business purposes. Federal 1040 ez form You can use the standard mileage rate for a vehicle you own or lease. Federal 1040 ez form The standard mileage rate is a specified amount of money you can deduct for each business mile you drive. Federal 1040 ez form It is announced annually by the IRS. Federal 1040 ez form To figure your deduction, multiply your business miles by the standard mileage rate for the year. Federal 1040 ez form    Generally, if you use the standard mileage rate, you cannot deduct your actual expenses. Federal 1040 ez form However, you may be able to deduct business-related parking fees, tolls, interest on your car loan, and certain state and local taxes. Federal 1040 ez form Choosing the standard mileage rate. Federal 1040 ez form   If you want to use the standard mileage rate for a car you own, you must choose to use it in the first year the car is available for use in your business. Federal 1040 ez form In later years, you can choose to use either the standard mileage rate or actual expenses. Federal 1040 ez form   If you use the standard mileage rate for a car you lease, you must choose to use it for the entire lease period (including renewals). Federal 1040 ez form Additional information. Federal 1040 ez form   For more information about the rules for claiming car and truck expenses, see Publication 463, Travel, Entertainment, Gift, and Car Expenses. Federal 1040 ez form Recordkeeping This part explains why you must keep records, what kinds of records you must keep, and how to keep them. Federal 1040 ez form It also explains how long you must keep your records for federal tax purposes. Federal 1040 ez form A sample recordkeeping system is illustrated at the end of this part. Federal 1040 ez form Why Keep Records? Everyone in business must keep records. Federal 1040 ez form Good records will help you do the following. Federal 1040 ez form Monitor the progress of your business. Federal 1040 ez form   You need good records to monitor the progress of your business. Federal 1040 ez form Records can show whether your business is improving, which items are selling, or what changes you need to make. Federal 1040 ez form Good records can increase the likelihood of business success. Federal 1040 ez form Prepare your financial statements. Federal 1040 ez form   You need good records to prepare accurate financial statements. Federal 1040 ez form These include income (profit and loss) statements and balance sheets. Federal 1040 ez form These statements can help you in dealing with your bank or creditors and help you manage your business. Federal 1040 ez form An income statement shows the income and expenses of the business for a given period of time. Federal 1040 ez form A balance sheet shows the assets, liabilities, and your equity in the business on a given date. Federal 1040 ez form Identify source of receipts. Federal 1040 ez form   You will receive money or property from many sources. Federal 1040 ez form Your records can identify the source of your receipts. Federal 1040 ez form You need this information to separate business from nonbusiness receipts and taxable from nontaxable income. Federal 1040 ez form Keep track of deductible expenses. Federal 1040 ez form   You may forget expenses when you prepare your tax return unless you record them when they occur. Federal 1040 ez form Prepare your tax returns. Federal 1040 ez form   You need good records to prepare your tax returns. Federal 1040 ez form These records must support the income, expenses, and credits you report. Federal 1040 ez form Generally, these are the same records you use to monitor your business and prepare your financial statements. Federal 1040 ez form Support items reported on tax returns. Federal 1040 ez form   You must keep your business records available at all times for inspection by the IRS. Federal 1040 ez form If the IRS examines any of your tax returns, you may be asked to explain the items reported. Federal 1040 ez form A complete set of records will speed up the examination. Federal 1040 ez form Kinds of Records To Keep Except in a few cases, the law does not require any specific kind of records. Federal 1040 ez form You can choose any recordkeeping system suited to your business that clearly shows your income and expenses. Federal 1040 ez form The business you are in affects the type of records you need to keep for federal tax purposes. Federal 1040 ez form You should set up your recordkeeping system using an accounting method that clearly shows your income for your tax year. Federal 1040 ez form See Accounting Method, earlier. Federal 1040 ez form If you are in more than one business, you should keep a complete and separate set of records for each business. Federal 1040 ez form A corporation should keep minutes of board of directors' meetings. Federal 1040 ez form Your recordkeeping system should include a summary of your business transactions. Federal 1040 ez form This summary is ordinarily made in your books (for example, accounting journals and ledgers). Federal 1040 ez form Your books must show your gross income, as well as your deductions and credits. Federal 1040 ez form For most small businesses, the business checkbook (discussed later) is the main source for entries in the business books. Federal 1040 ez form In addition, you must keep supporting documents, explained later. Federal 1040 ez form Electronic records. Federal 1040 ez form   All requirements that apply to hard copy books and records also apply to electronic storage systems that maintain tax books and records. Federal 1040 ez form When you replace hard copy books and records, you must maintain the electronic storage systems for as long as they are material to the administration of tax law. Federal 1040 ez form An electronic storage system is any system for preparing or keeping your records either by electronic imaging or by transfer to an electronic storage media. Federal 1040 ez form The electronic storage system must index, store, preserve, retrieve and reproduce the electronically stored books and records in legible format. Federal 1040 ez form All electronic storage systems must provide a complete and accurate record of your data that is accessible to the IRS. Federal 1040 ez form Electronic storage systems are also subject to the same controls and retention guidelines as those imposed on your original hard copy books and records. Federal 1040 ez form   The original hard copy books and records may be destroyed provided that the electronic storage system has been tested to establish that the hard copy books and records are being reproduced in compliance with IRS requirements for an electronic storage system and procedures are established to ensure continued compliance with all applicable rules and regulations. Federal 1040 ez form You still have the responsibility of retaining any other books and records that are required to be retained. Federal 1040 ez form   The IRS may test your electronic storage system, including the equipment used, indexing methodology, software and retrieval capabilities. Federal 1040 ez form This test is not considered an examination and the results must be shared with you. Federal 1040 ez form If your electronic storage system meets the requirements mentioned earlier, you will be in compliance. Federal 1040 ez form If not, you may be subject to penalties for non-compliance, unless you continue to maintain your original hard copy books and records in a manner that allows you and the IRS to determine your correct tax. Federal 1040 ez form For details on electronic storage system requirements, see Revenue Procedure 97-22, available in Internal Revenue Bulletin 1997-13. Federal 1040 ez form Supporting Documents Purchases, sales, payroll, and other transactions you have in your business generate supporting documents. Federal 1040 ez form Supporting documents include sales slips, paid bills, invoices, receipts, deposit slips, and canceled checks. Federal 1040 ez form These documents contain information you need to record in your books. Federal 1040 ez form It is important to keep these documents because they support the entries in your books and on your tax return. Federal 1040 ez form Keep them in an orderly fashion and in a safe place. Federal 1040 ez form For instance, organize them by year and type of income or expense. Federal 1040 ez form Gross receipts. Federal 1040 ez form   Gross receipts are the income you receive from your business. Federal 1040 ez form You should keep supporting documents that show the amounts and sources of your gross receipts. Federal 1040 ez form Documents that show gross receipts include the following. Federal 1040 ez form Cash register tapes. Federal 1040 ez form Bank deposit slips. Federal 1040 ez form Receipt books. Federal 1040 ez form Invoices. Federal 1040 ez form Credit card charge slips. Federal 1040 ez form Forms 1099-MISC. Federal 1040 ez form Purchases. Federal 1040 ez form   Purchases are the items you buy and resell to customers. Federal 1040 ez form If you are a manufacturer or producer, this includes the cost of all raw materials or parts purchased for manufacture into finished products. Federal 1040 ez form Your supporting documents should show the amount paid and that the amount was for purchases. Federal 1040 ez form Documents for purchases include the following. Federal 1040 ez form Canceled checks. Federal 1040 ez form Cash register tape receipts. Federal 1040 ez form Credit card sales slips. Federal 1040 ez form Invoices. Federal 1040 ez form These records will help you determine the value of your inventory at the end of the year. Federal 1040 ez form See Publication 538 for information on methods for valuing inventory. Federal 1040 ez form Expenses. Federal 1040 ez form   Expenses are the costs you incur (other than purchases) to carry on your business. Federal 1040 ez form Your supporting documents should show the amount paid and that the amount was for a business expense. Federal 1040 ez form Documents for expenses include the following. Federal 1040 ez form Canceled checks. Federal 1040 ez form Cash register tapes. Federal 1040 ez form Account statements. Federal 1040 ez form Credit card sales slips. Federal 1040 ez form Invoices. Federal 1040 ez form Petty cash slips for small cash payments. Federal 1040 ez form    A petty cash fund allows you to make small payments without having to write checks for small amounts. Federal 1040 ez form Each time you make a payment from this fund, you should make out a petty cash slip and attach it to your receipt as proof of payment. Federal 1040 ez form Travel, transportation, entertainment, and gift expenses. Federal 1040 ez form   Specific recordkeeping rules apply to these expenses. Federal 1040 ez form For more information, see Publication 463. Federal 1040 ez form Employment taxes. Federal 1040 ez form   There are specific employment tax records you must keep. Federal 1040 ez form For a list, see Publication 15. Federal 1040 ez form Assets. Federal 1040 ez form   Assets are the property, such as machinery and furniture you own and use in your business. Federal 1040 ez form You must keep records to verify certain information about your business assets. Federal 1040 ez form You need records to figure the annual depreciation and the gain or loss when you sell the assets. Federal 1040 ez form Your records should show the following information. Federal 1040 ez form When and how you acquired the asset. Federal 1040 ez form Purchase price. Federal 1040 ez form Cost of any improvements. Federal 1040 ez form Section 179 deduction taken. Federal 1040 ez form Deductions taken for depreciation. Federal 1040 ez form Deductions taken for casualty losses, such as losses resulting from fires or storms. Federal 1040 ez form How you used the asset. Federal 1040 ez form When and how you disposed of the asset. Federal 1040 ez form Selling price. Federal 1040 ez form Expenses of sale. Federal 1040 ez form   The following documents may show this information. Federal 1040 ez form Purchase and sales invoices. Federal 1040 ez form Real estate closing statements. Federal 1040 ez form Canceled checks. Federal 1040 ez form What if I don't have a canceled check?   If you do not have a canceled check, you may be able to prove payment with certain financial account statements prepared by financial institutions. Federal 1040 ez form These include account statements prepared for the financial institution by a third party. Federal 1040 ez form These account statements must be highly legible. Federal 1040 ez form The following table lists acceptable account statements. Federal 1040 ez form  IF payment is by. Federal 1040 ez form . Federal 1040 ez form . Federal 1040 ez form THEN the statement must show the. Federal 1040 ez form . Federal 1040 ez form . Federal 1040 ez form Check Check number. Federal 1040 ez form Amount. Federal 1040 ez form Payee's name. Federal 1040 ez form Date the check amount was posted to the account by the financial institution. Federal 1040 ez form Electronic funds transfer Amount transferred. Federal 1040 ez form Payee's name. Federal 1040 ez form Date the transfer was posted to the account by the financial institution. Federal 1040 ez form Credit card Amount charged. Federal 1040 ez form Payee's name. Federal 1040 ez form Transaction date. Federal 1040 ez form    Proof of payment of an amount, by itself, does not establish you are entitled to a tax deduction. Federal 1040 ez form You should also keep other documents, such as credit card sales slips and invoices, to show that you also incurred the cost. Federal 1040 ez form Recording Business Transactions A good recordkeeping system includes a summary of your business transactions. Federal 1040 ez form (Your business transactions are shown on the supporting documents just discussed. Federal 1040 ez form ) Business transactions are ordinarily summarized in books called journals and ledgers. Federal 1040 ez form You can buy them at your local stationery or office supply store. Federal 1040 ez form A journal is a book where you record each business transaction shown on your supporting documents. Federal 1040 ez form You may have to keep separate journals for transactions that occur frequently. Federal 1040 ez form A ledger is a book that contains the totals from all of your journals. Federal 1040 ez form It is organized into different accounts. Federal 1040 ez form Whether you keep journals and ledgers and how you keep them depends on the type of business you are in. Federal 1040 ez form For example, a recordkeeping system for a small business might include the following items. Federal 1040 ez form Business checkbook. Federal 1040 ez form Daily summary of cash receipts. Federal 1040 ez form Monthly summary of cash receipts. Federal 1040 ez form Check disbursements journal. Federal 1040 ez form Depreciation worksheet. Federal 1040 ez form Employee compensation record. Federal 1040 ez form The business checkbook is explained next. Federal 1040 ez form The other items are illustrated later under Sample Record System. Federal 1040 ez form The system you use to record business transactions will be more effective if you follow good recordkeeping practices. Federal 1040 ez form For example, record expenses when they occur, and identify the source of recorded receipts. Federal 1040 ez form Generally, it is best to record transactions on a daily basis. Federal 1040 ez form Business checkbook. Federal 1040 ez form   One of the first things you should do when you start a business is open a business checking account. Federal 1040 ez form You should keep your business account separate from your personal checking account. Federal 1040 ez form   The business checkbook is your basic source of information for recording your business expenses. Federal 1040 ez form You should deposit all daily receipts in your business checking account. Federal 1040 ez form You should check your account for errors by reconciling it. Federal 1040 ez form See Reconciling the checking account, later. Federal 1040 ez form   Consider using a checkbook that allows enough space to identify the source of deposits as business income, personal funds, or loans. Federal 1040 ez form You should also note on the deposit slip the source of the deposit and keep copies of all slips. Federal 1040 ez form   You should make all payments by check to document business expenses. Federal 1040 ez form Write checks payable to yourself only when making withdrawals from your business for personal use. Federal 1040 ez form Avoid writing checks payable to cash. Federal 1040 ez form If you must write a check for cash to pay a business expense, include the receipt for the cash payment in your records. Federal 1040 ez form If you cannot get a receipt for a cash payment, you should make an adequate explanation in your records at the time of payment. Federal 1040 ez form    Use the business account for business purposes only. Federal 1040 ez form Indicate the source of deposits and the type of expense in the checkbook. Federal 1040 ez form Reconciling the checking account. Federal 1040 ez form   When you receive your bank statement, make sure the statement, your checkbook, and your books agree. Federal 1040 ez form The statement balance may not agree with the balance in your checkbook and books if the statement: Includes bank charges you did not enter in your books and subtract from your checkbook balance, or Does not include deposits made after the statement date or checks that did not clear your account before the statement date. Federal 1040 ez form   By reconciling your checking account, you will: Verify how much money you have in the account, Make sure that your checkbook and books reflect all bank charges and the correct balance in the checking account, and Correct any errors in your bank statement, checkbook, and books. Federal 1040 ez form    You should reconcile your checking account each month. Federal 1040 ez form     Before you reconcile your monthly bank statement, check your own figures. Federal 1040 ez form Begin with the balance shown in your checkbook at the end of the previous month. Federal 1040 ez form To this balance, add the total cash deposited during the month and subtract the total cash disbursements. Federal 1040 ez form   After checking your figures, the result should agree with your checkbook balance at the end of the month. Federal 1040 ez form If the result does not agree, you may have made an error in recording a check or deposit. Federal 1040 ez form You can find the error by doing the following. Federal 1040 ez form Adding the amounts on your check stubs and comparing that total with the total in the “amount of check” column in your check disbursements journal. Federal 1040 ez form If the totals do not agree, check the individual amounts to see if an error was made in your check stub record or in the related entry in your check disbursements journal. Federal 1040 ez form Adding the deposit amounts in your checkbook. Federal 1040 ez form Compare that total with the monthly total in your cash receipt book, if you have one. Federal 1040 ez form If the totals do not agree, check the individual amounts to find any errors. Federal 1040 ez form   If your checkbook and journal entries still disagree, then refigure the running balance in your checkbook to make sure additions and subtractions are correct. Federal 1040 ez form   When your checkbook balance agrees with the balance figured from the journal entries, you may begin reconciling your checkbook with the bank statement. Federal 1040 ez form Many banks print a reconciliation worksheet on the back of the statement. Federal 1040 ez form   To reconcile your account, follow these steps. Federal 1040 ez form Compare the deposits listed on the bank statement with the deposits shown in your checkbook. Federal 1040 ez form Note all differences in the dollar amounts. Federal 1040 ez form Compare each canceled check, including both check number and dollar amount, with the entry in your checkbook. Federal 1040 ez form Note all differences in the dollar amounts. Federal 1040 ez form Mark the check number in the checkbook as having cleared the bank. Federal 1040 ez form After accounting for all checks returned by the bank, those not marked in your checkbook are your outstanding checks. Federal 1040 ez form Prepare a bank reconciliation. Federal 1040 ez form One is illustrated later under Sample Record System. Federal 1040 ez form Update your checkbook and journals for items shown on the reconciliation as not recorded (such as service charges) or recorded incorrectly. Federal 1040 ez form At this point, the adjusted bank statement balance should equal your adjusted checkbook balance. Federal 1040 ez form If you still have differences, check the previous steps to find the errors. Federal 1040 ez form   Table 3. Federal 1040 ez form Period of Limitations IF you. Federal 1040 ez form . Federal 1040 ez form . Federal 1040 ez form   THEN the period is. Federal 1040 ez form . Federal 1040 ez form . Federal 1040 ez form 1. Federal 1040 ez form Owe additional tax and situations (2), (3), and (4), below, do not apply to you   3 years 2. Federal 1040 ez form Do not report income that you should report and it is more than 25% of the gross income shown on the return   6 years 3. Federal 1040 ez form File a fraudulent return   Not limited 4. Federal 1040 ez form Do not file a return   Not limited 5. Federal 1040 ez form File a claim for credit or refund after you filed your return   Later of: 3 years or  2 years after tax   was paid 6. Federal 1040 ez form File a claim for a loss from worthless securities or a bad debt deduction   7 years Bookkeeping System You must decide whether to use a single-entry or a double-entry bookkeeping system. Federal 1040 ez form The single-entry system of bookkeeping is the simplest to maintain, but it may not be suitable for everyone. Federal 1040 ez form You may find the double-entry system better because it has built-in checks and balances to assure accuracy and control. Federal 1040 ez form Single-entry. Federal 1040 ez form   A single-entry system is based on the income statement (profit or loss statement). Federal 1040 ez form It can be a simple and practical system if you are starting a small business. Federal 1040 ez form The system records the flow of income and expenses through the use of: A daily summary of cash receipts, and Monthly summaries of cash receipts and disbursements. Federal 1040 ez form Double-entry. Federal 1040 ez form   A double-entry bookkeeping system uses journals and ledgers. Federal 1040 ez form Transactions are first entered in a journal and then posted to ledger accounts. Federal 1040 ez form These accounts show income, expenses, assets (property a business owns), liabilities (debts of a business), and net worth (excess of assets over liabilities). Federal 1040 ez form You close income and expense accounts at the end of each tax year. Federal 1040 ez form You keep asset, liability, and net worth accounts open on a permanent basis. Federal 1040 ez form   In the double-entry system, each account has a left side for debits and a right side for credits. Federal 1040 ez form It is self-balancing because you record every transaction as a debit entry in one account and as a credit entry in another. Federal 1040 ez form   Under this system, the total debits must equal the total credits after you post the journal entries to the ledger accounts. Federal 1040 ez form If the amounts do not balance, you have made an error and you must find and correct it. Federal 1040 ez form   An example of a journal entry exhibiting a payment of rent in October is shown next. Federal 1040 ez form General Journal Date Description of Entry Debit  Credit Oct. Federal 1040 ez form 5 Rent expense 780. Federal 1040 ez form 00     Cash   780. Federal 1040 ez form 00                 Computerized System There are computer software packages you can use for recordkeeping. Federal 1040 ez form They can be purchased in many retail stores. Federal 1040 ez form These packages are very helpful and relatively easy to use; they require very little knowledge of bookkeeping and accounting. Federal 1040 ez form If you use a computerized system, you must be able to produce sufficient legible records to support and verify entries made on your return and determine your correct tax liability. Federal 1040 ez form To meet this qualification, the machine-sensible records must reconcile with your books and return. Federal 1040 ez form These records must provide enough detail to identify the underlying source documents. Federal 1040 ez form You must also keep all machine-sensible records and a complete description of the computerized portion of your recordkeeping system. Federal 1040 ez form This documentation must be sufficiently detailed to show all of the following items. Federal 1040 ez form Functions being performed as the data flows through the system. Federal 1040 ez form Controls used to ensure accurate and reliable processing. Federal 1040 ez form Controls used to prevent the unauthorized addition, alteration, or deletion of retained records. Federal 1040 ez form Charts of accounts and detailed account descriptions. Federal 1040 ez form See Revenue Procedure 98-25 in Cumulative Bulletin 1998-1 for more information. Federal 1040 ez form How Long To Keep Records You must keep your records as long as they may be needed for the administration of any provision of the Internal Revenue Code. Federal 1040 ez form Generally, this means you must keep records that support an item of income or deduction on a return until the period of limitations for that return runs out. Federal 1040 ez form The period of limitations is the period of time in which you can amend your return to claim a credit or refund, or the IRS can assess additional tax. Federal 1040 ez form Table 3 contains the periods of limitations that apply to income tax returns. Federal 1040 ez form Unless otherwise stated, the years refer to the period after the return was filed. Federal 1040 ez form Returns filed before the due date are treated as filed on the due date. Federal 1040 ez form Keep copies of your filed tax returns. Federal 1040 ez form They help in preparing future tax returns and making computations if you file an amended return. Federal 1040 ez form Employment taxes. Federal 1040 ez form   If you have employees, you must keep all employment tax records for at least 4 years after the date the tax becomes due or is paid, whichever is later. Federal 1040 ez form For more information about recordkeeping for employment taxes, see Publication 15. Federal 1040 ez form Assets. Federal 1040 ez form   Keep records relating to property until the period of limitations expires for the year in which you dispose of the property in a taxable disposition. Federal 1040 ez form You must keep these records to figure any depreciation, amortization, or depletion deduction, and to figure your basis for computing gain or loss when you sell or otherwise dispose of the property. Federal 1040 ez form   Generally, if you received property in a nontaxable exchange, your basis in that property is the same as the basis of the property you gave up, increased by any money you paid. Federal 1040 ez form You must keep the records on the old property, as well as on the new property, until the period of limitations expires for the year in which you dispose of the new property in a taxable disposition. Federal 1040 ez form Records for nontax purposes. Federal 1040 ez form   When your records are no longer needed for tax purposes, do not discard them until you check to see if you have to keep them longer for other purposes. Federal 1040 ez form For example, your insurance company or creditors may require you to keep them longer than the IRS does. Federal 1040 ez form Sample Record System This example illustrates a single-entry system used by Henry Brown, who is the sole proprietor of a small automobile body shop. Federal 1040 ez form Henry uses part-time help, has no inventory of items held for sale, and uses the cash method of accounting. Federal 1040 ez form These sample records should not be viewed as a recommendation of how to keep your records. Federal 1040 ez form They are intended only to show how one business keeps its records. Federal 1040 ez form 1. Federal 1040 ez form Daily Summary of Cash Receipts This summary is a record of cash sales for the day. Federal 1040 ez form It accounts for cash at the end of the day over the amount in the Change and Petty Cash Fund at the beginning of the day. Federal 1040 ez form Henry takes the cash sales entry from his cash register tape. Federal 1040 ez form If he had no cash register, he would simply total his cash sale slips and any other cash received that day. Federal 1040 ez form He carries the total receipts shown in this summary for January 3 ($267. Federal 1040 ez form 80), including cash sales ($263. Federal 1040 ez form 60) and sales tax ($4. Federal 1040 ez form 20), to the Monthly Summary of Cash Receipts. Federal 1040 ez form Petty cash fund. Federal 1040 ez form   Henry uses a petty cash fund to make small payments without having to write checks for small amounts. Federal 1040 ez form Each time he makes a payment from this fund, he makes out a petty cash slip and attaches it to his receipt as proof of payment. Federal 1040 ez form He sets up a fixed amount ($50) in his petty cash fund. Federal 1040 ez form The total of the unspent petty cash and the amounts on the petty cash slips should equal the fixed amount of the fund. Federal 1040 ez form When the totals on the petty cash slips approach the fixed amount, he brings the cash in the fund back to the fixed amount by writing a check to “Petty Cash” for the total of the outstanding slips. Federal 1040 ez form (See the Check Disbursements Journal entry for check number 92. Federal 1040 ez form ) This restores the fund to its fixed amount of $50. Federal 1040 ez form He then summarizes the slips and enters them in the proper columns in the monthly check disbursements journal. Federal 1040 ez form 2. Federal 1040 ez form Monthly Summary of Cash Receipts This shows the income activity for the month. Federal 1040 ez form Henry carries the total monthly net sales shown in this summary for January ($4,865. Federal 1040 ez form 05) to his Annual Summary. Federal 1040 ez form To figure total monthly net sales, Henry reduces the total monthly receipts by the sales tax imposed on his customers and turned over to the state. Federal 1040 ez form He cannot take a deduction for sales tax turned over to the state because he only collected the tax. Federal 1040 ez form He does not include the tax in his income. Federal 1040 ez form 3. Federal 1040 ez form Check Disbursements Journal Henry enters checks drawn on the business checking account in the Check Disbursements Journal each day. Federal 1040 ez form All checks are prenumbered and each check number is listed and accounted for in the column provided in the journal. Federal 1040 ez form Frequent expenses have their own headings across the sheet. Federal 1040 ez form He enters in a separate column expenses that require comparatively numerous or large payments each month, such as materials, gross payroll, and rent. Federal 1040 ez form Under the General Accounts column, he enters small expenses that normally have only one or two monthly payments, such as licenses and postage. Federal 1040 ez form Henry does not pay personal or nonbusiness expenses by checks drawn on the business account. Federal 1040 ez form If he did, he would record them in the journal, even though he could not deduct them as business expenses. Federal 1040 ez form Henry carries the January total of expenses for materials ($1,083. Federal 1040 ez form 50) to the Annual Summary. Federal 1040 ez form Similarly, he enters the monthly total of expenses for telephone, truck/auto, etc. Federal 1040 ez form , in the appropriate columns of that summary. Federal 1040 ez form 4. Federal 1040 ez form Employee Compensation Record This record shows the following information. Federal 1040 ez form The number of hours Henry's employee worked in a pay period. Federal 1040 ez form The employee's total pay for the period. Federal 1040 ez form The deductions Henry withheld in figuring the employee's net pay. Federal 1040 ez form The monthly gross payroll. Federal 1040 ez form Henry carries the January gross payroll ($520) to the Annual Summary. Federal 1040 ez form 5. Federal 1040 ez form Annual Summary This annual summary of monthly cash receipts and expense totals provides the final amounts to enter on Henry's tax return. Federal 1040 ez form He figures the cash receipts total from the total of monthly cash receipts shown in the Monthly Summary of Cash Receipts. Federal 1040 ez form He figures the expense totals from the totals of monthly expense items shown in the Check Disbursements Journal. Federal 1040 ez form As in the journal, he keeps each major expense in a separate column. Federal 1040 ez form Henry carries the cash receipts total shown in the annual summary ($47,440. Federal 1040 ez form 9
Print - Click this link to Print this page

Understanding Your CP32 Notice

We sent you a replacement refund check.


What you need to do

  • If you have the expired check, please destroy it.

You may want to...

  • Call 1-800-TAX-FORM (1-800-829-3676) to order forms and publications.

Answers to Common Questions

When will I receive the replacement check?
You should receive the replacement check within 30 days.

What do I need to do to get my refund through direct deposit next year?
When filing your tax return, complete the requested banking information in the "Refund" section of your tax form if you want to direct deposit the entire amount into one account. If you want to deposit into more than one account, you must file Form 8888, Direct Deposit of Refund to More Than One Account, with your return.

Since my refund check was returned, can I request that you mail it to my work address instead?
Refund checks are mailed only to the address of record, which is the address provided on the tax return or the result of a permanent address change request submitted after the return is filed.

I filed jointly, but my spouse and I are now divorced. Where will you send the refund? Can you send us two checks?
A refund check is mailed to the address of record, which is the address provided on the tax return or the result of a permanent address change request submitted after the return is filed. We will send one refund check listing both you and your spouse's names. If you wish to have the refund split and issued in two checks, you must return the uncashed refund check and a copy of your divorce decree showing how the refund is to be allocated.


Tips for next year

To receive your refund more quickly, consider requesting your refund through direct deposit. You can even request that your refund be distributed to separate accounts, such as checking, savings, or retirement accounts. To request this, use Form 8888, Direct Deposit of Refund to More Than One Account.

Consider filing your taxes electronically. Filing online can help you avoid mistakes and find credits and deductions that you may qualify for. In many cases you can file for free. Learn more about e-file.

Page Last Reviewed or Updated: 03-Mar-2014

How to get help

  • Call the 1-800 number listed on the top right corner of your notice.
  • Authorize someone (e.g., accountant) to contact the IRS on your behalf using Form 2848.
  • See if you qualify for help from a Low Income Taxpayer Clinic.
     

The Federal 1040 Ez Form

Federal 1040 ez form Publication 721 - Introductory Material Table of Contents Reminders IntroductionOrdering forms and publications. Federal 1040 ez form Tax questions. Federal 1040 ez form Useful Items - You may want to see: Reminders Future developments. Federal 1040 ez form  For the latest information about developments related to Publication 721, such as legislation enacted after it was published, go to www. Federal 1040 ez form IRS. Federal 1040 ez form gov/pub721. Federal 1040 ez form Phased retirement. Federal 1040 ez form   The new phased retirement program was signed into law by the Moving Ahead for Progress in the 21st Century Act and will be available for retirement eligible individuals once the regulations for this program are effective. Federal 1040 ez form This new program will allow eligible employees to begin receiving annuity payments while working part-time. Federal 1040 ez form For more information, go to the Office of Personnel Management (OPM) website at www. Federal 1040 ez form opm. Federal 1040 ez form gov. Federal 1040 ez form Roth Thrift Savings Plan (TSP) balance. Federal 1040 ez form  You may be able to contribute to a designated Roth account through the TSP known as the Roth TSP. Federal 1040 ez form Roth TSP contributions are after-tax contributions, subject to the same contribution limits as the traditional TSP. Federal 1040 ez form Qualified distributions from a Roth TSP are not included in your income. Federal 1040 ez form See Thrift Savings Plan in Part II for more information. Federal 1040 ez form Rollovers. Federal 1040 ez form  You can roll over certain amounts from the CSRS, FERS, or TSP, to a tax-sheltered annuity plan (403(b) plan) or a state or local government section 457 deferred compensation plan. Federal 1040 ez form See Rollover Rules in Part II. Federal 1040 ez form Rollovers by surviving spouse. Federal 1040 ez form  You may be able to roll over a distribution you receive as the surviving spouse of a deceased employee or retiree into a qualified retirement plan or an IRA. Federal 1040 ez form See Rollover Rules in Part II. Federal 1040 ez form Thrift Savings Plan (TSP) beneficiary participant accounts. Federal 1040 ez form  If you are the spouse beneficiary of a decedent's TSP account, you have the option of leaving the death benefit payment in a TSP account in your own name (a beneficiary participant account). Federal 1040 ez form The amounts in the beneficiary participant account are neither taxable or reportable until you choose to make a withdrawal, or otherwise receive a distribution from the account. Federal 1040 ez form Benefits for public safety officer's survivors. Federal 1040 ez form  A survivor annuity received by the spouse, former spouse, or child of a public safety officer killed in the line of duty generally will be excluded from the recipient's income. Federal 1040 ez form For more information, see Dependents of public safety officers in Part IV. Federal 1040 ez form Uniformed services Thrift Savings Plan (TSP) accounts. Federal 1040 ez form  If you have a uniformed services TSP account, it may include contributions from combat zone pay. Federal 1040 ez form This pay is tax-exempt and contributions attributable to that pay are tax-exempt when they are distributed from the uniformed services TSP account. Federal 1040 ez form However, any earnings on those contributions are subject to tax when they are distributed. Federal 1040 ez form The statement you receive from the TSP will separately state the total amount of your distribution and the amount of your taxable distribution for the year. Federal 1040 ez form If you have both a civilian and a uniformed services TSP account, you should apply the rules discussed in this publication separately to each account. Federal 1040 ez form You can get more information from the TSP website, www. Federal 1040 ez form tsp. Federal 1040 ez form gov, or the TSP Service Office. Federal 1040 ez form Photographs of missing children. Federal 1040 ez form  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Federal 1040 ez form Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. Federal 1040 ez form You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. Federal 1040 ez form Introduction This publication explains how the federal income tax rules apply to civil service retirement benefits received by retired federal employees (including those disabled) or their survivors. Federal 1040 ez form These benefits are paid primarily under the Civil Service Retirement System (CSRS) or the Federal Employees' Retirement System (FERS). Federal 1040 ez form Tax rules for annuity benefits. Federal 1040 ez form   Part of the annuity benefits you receive is a tax-free recovery of your contributions to the CSRS or FERS. Federal 1040 ez form The rest of your benefits are taxable. Federal 1040 ez form If your annuity starting date is after November 18, 1996, you must use the Simplified Method to figure the taxable and tax-free parts. Federal 1040 ez form If your annuity starting date is before November 19, 1996, you generally could have chosen to use the Simplified Method or the General Rule. Federal 1040 ez form See Part II, Rules for Retirees . Federal 1040 ez form Thrift Savings Plan. Federal 1040 ez form   The Thrift Savings Plan (TSP) provides federal employees with the same savings and tax benefits that many private employers offer their employees. Federal 1040 ez form This plan is similar to private sector 401(k) plans. Federal 1040 ez form You can defer tax on part of your pay by having it contributed to your traditional balance in the plan. Federal 1040 ez form The contributions and earnings on them are not taxed until they are distributed to you. Federal 1040 ez form Also the TSP offers a Roth TSP option. Federal 1040 ez form Contributions to this type of balance are after tax and qualified distributions from the account are tax free. Federal 1040 ez form See Thrift Savings Plan in Part II. Federal 1040 ez form Comments and suggestions. Federal 1040 ez form   We welcome your comments about this publication and your suggestions for future editions. Federal 1040 ez form   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. Federal 1040 ez form NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Federal 1040 ez form Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Federal 1040 ez form   You can send your comments from www. Federal 1040 ez form irs. Federal 1040 ez form gov/formspubs/. Federal 1040 ez form Click on “More Information” and then on “Comment on Tax Forms and Publications”. Federal 1040 ez form   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. Federal 1040 ez form Ordering forms and publications. Federal 1040 ez form   Visit www. Federal 1040 ez form irs. Federal 1040 ez form gov/formspubs/ to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. Federal 1040 ez form Internal Revenue Service 1201 N. Federal 1040 ez form Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. Federal 1040 ez form   If you have a tax question, check the information available on IRS. Federal 1040 ez form gov or call 1-800-829-1040. Federal 1040 ez form We cannot answer tax questions sent to either of the above addresses. Federal 1040 ez form Useful Items - You may want to see: Publication 524 Credit for the Elderly or the Disabled 575 Pension and Annuity Income 590 Individual Retirement Arrangements (IRAs) 939 General Rule for Pensions and Annuities Form (and Instructions) CSA 1099R Statement of Annuity Paid CSF 1099R Statement of Survivor Annuity Paid W-4P Withholding Certificate for Pension or Annuity Payments 1099-R Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. Federal 1040 ez form 5329 Additional Taxes on Qualified Plans (including IRAs) and Other Tax-Favored Accounts See How To Get Tax Help near the end of this publication for information about getting publications and forms. Federal 1040 ez form Prev  Up  Next   Home   More Online Publications