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File 2008 Taxes For Free

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File 2008 taxes for free Publication 15 - Introductory Material Table of Contents Future Developments What's New Reminders Electronic Filing and Payment Forms in Spanish Hiring New Employees Paying Wages, Pensions, or Annuities Information Returns Nonpayroll Income Tax Withholding Recordkeeping Change of Business Address or Responsible Party Private Delivery Services Telephone Help Ordering Employer Tax Forms and Publications Filing Addresses Dishonored Payments Photographs of Missing Children Calendar Introduction Future Developments For the latest information about developments related to Publication 15 (Circular E), such as legislation enacted after it was published, go to www. File 2008 taxes for free irs. File 2008 taxes for free gov/pub15. File 2008 taxes for free What's New Social security and Medicare tax for 2014. File 2008 taxes for free  The social security tax rate is 6. File 2008 taxes for free 2% each for the employee and employer, unchanged from 2013. File 2008 taxes for free The social security wage base limit is $117,000. File 2008 taxes for free The Medicare tax rate is 1. File 2008 taxes for free 45% each for the employee and employer, unchanged from 2013. File 2008 taxes for free There is no wage base limit for Medicare tax. File 2008 taxes for free Social security and Medicare taxes apply to the wages of household workers you pay $1,900 or more in cash or an equivalent form of compensation. File 2008 taxes for free Social security and Medicare taxes apply to election workers who are paid $1,600 or more in cash or an equivalent form of compensation. File 2008 taxes for free 2014 withholdng tables. File 2008 taxes for free  This publication includes the 2014 Percentage Method Tables and Wage Bracket Tables for Income Tax Withholding. File 2008 taxes for free Withholding allowance. File 2008 taxes for free  The 2014 amount for one withholding allowance on an annual basis is $3,950. File 2008 taxes for free Voluntary withholding on dividends and other distributions by an Alaska Native Corporation (ANC). File 2008 taxes for free  A shareholder of an ANC may now request voluntary income tax withholding on dividends and other distributions paid by an ANC. File 2008 taxes for free A shareholder may request voluntary withholding by giving the ANC a completed Form W-4V, Voluntary Withholding Request. File 2008 taxes for free For more information see Notice 2013-77, 2013-50 I. File 2008 taxes for free R. File 2008 taxes for free B. File 2008 taxes for free 632, available at www. File 2008 taxes for free irs. File 2008 taxes for free gov/irb/2013-50_IRB/ar10. File 2008 taxes for free html. File 2008 taxes for free Change of responsible party. File 2008 taxes for free  Beginning January 1, 2014, any entity with an employer identification number (EIN) must file Form 8822-B, Change of Address or Responsible Party — Business, to report the latest change to its responsible party. File 2008 taxes for free Form 8822-B must be filed within 60 days of the change. File 2008 taxes for free If the change in the identity of your responsible party occurred before 2014, and you have not previously notified the IRS of the change, file Form 8822-B before March 1, 2014, reporting only the most recent change. File 2008 taxes for free For a definition of “responsible party,” see the Form 8822-B instructions. File 2008 taxes for free Same-sex marriage. File 2008 taxes for free  For federal tax purposes, individuals of the same sex are considered married if they were lawfully married in a state (or foreign country) whose laws authorize the marriage of two individuals of the same sex, even if the state (or foreign country) in which they now live does not recognize same-sex marriage. File 2008 taxes for free For more information, see Revenue Ruling 2013-17, 2013-38 I. File 2008 taxes for free R. File 2008 taxes for free B. File 2008 taxes for free 201, available at www. File 2008 taxes for free irs. File 2008 taxes for free gov/irb/2013-38_IRB/ar07. File 2008 taxes for free html. File 2008 taxes for free Notice 2013-61 provides special administrative procedures for employers to make claims for refunds or adjustments of overpayments of social security and Medicare taxes with respect to certain same-sex spouse benefits before expiration of the period of limitations. File 2008 taxes for free Notice 2013-61, 2013-44 I. File 2008 taxes for free R. File 2008 taxes for free B. File 2008 taxes for free 432, is available at www. File 2008 taxes for free irs. File 2008 taxes for free gov/irb/2013-44_IRB/ar10. File 2008 taxes for free html. File 2008 taxes for free Reminders Additional Medicare Tax withholding. File 2008 taxes for free  In addition to withholding Medicare tax at 1. File 2008 taxes for free 45%, you must withhold a 0. File 2008 taxes for free 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. File 2008 taxes for free You are required to begin withholding Additional Medicare Tax in the pay period in which you pay wages in excess of $200,000 to an employee and continue to withhold it each pay period until the end of the calendar year. File 2008 taxes for free Additional Medicare Tax is only imposed on the employee. File 2008 taxes for free There is no employer share of Additional Medicare Tax. File 2008 taxes for free All wages that are subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 withholding threshold. File 2008 taxes for free For more information on what wages are subject to Medicare tax, see the chart, Special Rules for Various Types of Services and Payments , in section 15. File 2008 taxes for free For more information on Additional Medicare Tax, visit IRS. File 2008 taxes for free gov and enter “Additional Medicare Tax” in the search box. File 2008 taxes for free Work opportunity tax credit for qualified tax-exempt organizations hiring qualified veterans. File 2008 taxes for free  The work opportunity tax credit is available for eligible unemployed veterans who began work on or after November 22, 2011, and before January 1, 2014. File 2008 taxes for free Qualified tax-exempt organizations that hire eligible unemployed veterans can claim the work opportunity tax credit against their payroll tax liability using Form 5884-C, Work Opportunity Credit for Qualified Tax-Exempt Organizations Hiring Qualified Veterans. File 2008 taxes for free For more information, visit IRS. File 2008 taxes for free gov and enter “work opportunity tax credit” in the search box. File 2008 taxes for free Outsourcing payroll duties. File 2008 taxes for free  Employers are responsible to ensure that tax returns are filed and deposits and payments are made, even if the employer contracts with a third party to perform these acts. File 2008 taxes for free The employer remains responsible if the third party fails to perform any required action. File 2008 taxes for free If you choose to outsource any of your payroll and related tax duties (that is, withholding, reporting, and paying over social security, Medicare, FUTA, and income taxes) to a third-party payer such as a payroll service provider or reporting agent, visit IRS. File 2008 taxes for free gov and enter “outsourcing payroll duties” in the search box for helpful information on this topic. File 2008 taxes for free COBRA premium assistance credit. File 2008 taxes for free  The credit for COBRA premium assistance payments applies to premiums paid for employees involuntarily terminated between September 1, 2008, and May 31, 2010, and to premiums paid for up to 15 months. File 2008 taxes for free See COBRA premium assistance credit under Introduction. File 2008 taxes for free Federal tax deposits must be made by electronic funds transfer. File 2008 taxes for free  You must use electronic funds transfer to make all federal tax deposits. File 2008 taxes for free Generally, electronic fund transfers are made using the Electronic Federal Tax Payment System (EFTPS). File 2008 taxes for free If you do not want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make electronic deposits on your behalf. File 2008 taxes for free Also, you may arrange for your financial institution to initiate a same-day wire payment on your behalf. File 2008 taxes for free EFTPS is a free service provided by the Department of Treasury. File 2008 taxes for free Services provided by your tax professional, financial institution, payroll service, or other third party may have a fee. File 2008 taxes for free For more information on making federal tax deposits, see How To Deposit in section 11. File 2008 taxes for free To get more information about EFTPS or to enroll in EFTPS, visit www. File 2008 taxes for free eftps. File 2008 taxes for free gov or call 1-800-555-4477 or 1-800-733-4829 (TDD). File 2008 taxes for free Additional information about EFTPS is also available in Publication 966, Electronic Federal Tax Payment System: A Guide To Getting Started. File 2008 taxes for free You must receive written notice from the IRS to file Form 944. File 2008 taxes for free  If you have been filing Forms 941, Employer's QUARTERLY Federal Tax Return (or Forms 941-SS, Employer's QUARTERLY Federal Tax Return—American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the U. File 2008 taxes for free S. File 2008 taxes for free Virgin Islands, or Formularios 941-PR, Planilla para la Declaración Federal TRIMESTRAL del Patrono), and believe your employment taxes for the calendar year will be $1,000 or less, and you would like to file Form 944, Employer's ANNUAL Federal Tax Return, instead of Forms 941, you must contact the IRS to request to file Form 944. File 2008 taxes for free You must receive written notice from the IRS to file Form 944 instead of Forms 941 before you may file this form. File 2008 taxes for free For more information on requesting to file Form 944, visit IRS. File 2008 taxes for free gov and enter “file employment taxes annually” in the search box. File 2008 taxes for free Employers can request to file Forms 941 instead of Form 944. File 2008 taxes for free  If you received notice from the IRS and have been filing Form 944 but would like to file Forms 941 instead, you must contact the IRS to request to file Forms 941. File 2008 taxes for free You must receive written notice from the IRS to file Forms 941 instead of Form 944 before you may file these forms. File 2008 taxes for free For more information on requesting to file Form 944, visit IRS. File 2008 taxes for free gov and enter “file employment taxes annually” in the search box. File 2008 taxes for free Aggregate Form 941 filers. File 2008 taxes for free  Agents must complete Schedule R (Form 941), Allocation Schedule for Aggregate Form 941 Filers, when filing an aggregate Form 941. File 2008 taxes for free Aggregate Forms 941 may only be filed by agents approved by the IRS under section 3504 of the Internal Revenue Code. File 2008 taxes for free To request approval to act as an agent for an employer, the agent files Form 2678, Employer/Payer Appointment of Agent, with the IRS. File 2008 taxes for free Aggregate Form 940 filers. File 2008 taxes for free  Agents must complete Schedule R (Form 940), Allocation Schedule for Aggregate Form 940 Filers, when filing an aggregate Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return. File 2008 taxes for free Aggregate Forms 940 can be filed by agents acting on behalf of home care service recipients who receive home care services through a program administered by a federal, state, or local government. File 2008 taxes for free To request approval to act as an agent on behalf of home care service recipients, the agent files Form 2678 with the IRS. File 2008 taxes for free Electronic Filing and Payment  Now, more than ever before, businesses can enjoy the benefits of filing and paying their federal taxes electronically. File 2008 taxes for free Whether you rely on a tax professional or handle your own taxes, the IRS offers you convenient programs to make filing and payment easier. File 2008 taxes for free Spend less time and worry about taxes and more time running your business. File 2008 taxes for free Use e-file and the Electronic Federal Tax Payment System (EFTPS) to your benefit. File 2008 taxes for free For e-file, visit www. File 2008 taxes for free irs. File 2008 taxes for free gov/efile for additional information. File 2008 taxes for free For EFTPS, visit www. File 2008 taxes for free eftps. File 2008 taxes for free gov or call EFTPS Customer Service at 1-800-555-4477 or 1-800-733-4829 (TDD). File 2008 taxes for free For electronic filing of Forms W-2, Wage and Tax Statement, visit www. File 2008 taxes for free socialsecurity. File 2008 taxes for free gov/employer. File 2008 taxes for free If you are filing your tax return or paying your federal taxes electronically, a valid EIN is required. File 2008 taxes for free If a valid EIN is not provided, the return or payment will not be processed. File 2008 taxes for free This may result in penalties and delays in processing your return or payment. File 2008 taxes for free Electronic funds withdrawal (EFW). File 2008 taxes for free  If you file Form 940, Form 941, Form 944, or Form 945 electronically, you can e-file and e-pay (electronic funds withdrawal) the balance due in a single step using tax preparation software or through a tax professional. File 2008 taxes for free However, do not use EFW to make federal tax deposits. File 2008 taxes for free For more information on paying your taxes using EFW, visit the IRS website at www. File 2008 taxes for free irs. File 2008 taxes for free gov/e-pay. File 2008 taxes for free A fee may be charged to file electronically. File 2008 taxes for free Credit or debit card payments. File 2008 taxes for free  For information on paying your taxes with a credit or debit card, visit the IRS website at www. File 2008 taxes for free irs. File 2008 taxes for free gov/e-pay. File 2008 taxes for free However, do not use credit or debit cards to make federal tax deposits. File 2008 taxes for free Forms in Spanish You can provide Formulario W-4(SP), Certificado de Exención de Retenciones del Empleado, in place of Form W-4, Employee's Withholding Allowance Certificate, to your Spanish-speaking employees. File 2008 taxes for free For more information, see Publicación 17(SP), El Impuesto Federal sobre los Ingresos (Para Personas Físicas). File 2008 taxes for free For nonemployees, Formulario W-9(SP), Solicitud y Certificación del Número de Identificación del Contribuyente, may be used in place of Form W-9, Request for Taxpayer Identification Number and Certification. File 2008 taxes for free Hiring New Employees Eligibility for employment. File 2008 taxes for free  You must verify that each new employee is legally eligible to work in the United States. File 2008 taxes for free This includes completing the U. File 2008 taxes for free S. File 2008 taxes for free Citizenship and Immigration Services (USCIS) Form I-9, Employment Eligibility Verification. File 2008 taxes for free You can get the form from USCIS offices or by calling 1-800-870-3676. File 2008 taxes for free Contact the USCIS at 1-800-375-5283, or visit the USCIS website at www. File 2008 taxes for free uscis. File 2008 taxes for free gov for more information. File 2008 taxes for free New hire reporting. File 2008 taxes for free  You are required to report any new employee to a designated state new hire registry. File 2008 taxes for free A new employee is an employee who has not previously been employed by you or was previously employed by you but has been separated from such prior employment for at least 60 consecutive days. File 2008 taxes for free Many states accept a copy of Form W-4 with employer information added. File 2008 taxes for free Visit the Office of Child Support Enforcement website at www. File 2008 taxes for free acf. File 2008 taxes for free hhs. File 2008 taxes for free gov/programs/cse/newhire for more information. File 2008 taxes for free W-4 request. File 2008 taxes for free  Ask each new employee to complete the 2014 Form W-4. File 2008 taxes for free See section 9. File 2008 taxes for free Name and social security number. File 2008 taxes for free  Record each new employee's name and number from his or her social security card. File 2008 taxes for free Any employee without a social security card should apply for one. File 2008 taxes for free See section 4. File 2008 taxes for free Paying Wages, Pensions, or Annuities Correcting Form 941 or Form 944. File 2008 taxes for free  If you discover an error on a previously filed Form 941 or Form 944, make the correction using Form 941-X, Adjusted Employer's QUARTERLY Federal Tax Return or Claim for Refund, or Form 944-X, Adjusted Employer's ANNUAL Federal Tax Return or Claim for Refund. File 2008 taxes for free Forms 941-X and 944-X are stand-alone forms, meaning taxpayers can file them when an error is discovered. File 2008 taxes for free Forms 941-X and 944-X are used by employers to claim refunds or abatements of employment taxes, rather than Form 843, Claim for Refund and Request for Abatement. File 2008 taxes for free See section 13 for more information. File 2008 taxes for free Income tax withholding. File 2008 taxes for free  Withhold federal income tax from each wage payment or supplemental unemployment compensation plan benefit payment according to the employee's Form W-4 and the correct withholding table. File 2008 taxes for free If you have nonresident alien employees, see Withholding income taxes on the wages of nonresident alien employees in section 9. File 2008 taxes for free Withhold from periodic pension and annuity payments as if the recipient is married claiming three withholding allowances, unless he or she has provided Form W-4P, Withholding Certificate for Pension or Annuity Payments, either electing no withholding or giving a different number of allowances, marital status, or an additional amount to be withheld. File 2008 taxes for free Do not withhold on direct rollovers from qualified plans or governmental section 457(b) plans. File 2008 taxes for free See section 9 and Publication 15-A, Employer's Supplemental Tax Guide. File 2008 taxes for free Publication 15-A includes information about withholding on pensions and annuities. File 2008 taxes for free Zero wage return. File 2008 taxes for free  If you have not filed a “final” Form 941 or Form 944, or are not a “seasonal” employer, you must continue to file a Form 941 or Form 944 even for periods during which you paid no wages. File 2008 taxes for free The IRS encourages you to file your “Zero Wage” Forms 941 or 944 electronically using IRS e-file at www. File 2008 taxes for free irs. File 2008 taxes for free gov/efile. File 2008 taxes for free Employer Responsibilities Employer Responsibilities: The following list provides a brief summary of your basic responsibilities. File 2008 taxes for free Because the individual circumstances for each employer can vary greatly, responsibilities for withholding, depositing, and reporting employment taxes can differ. File 2008 taxes for free Each item in this list has a page reference to a more detailed discussion in this publication. File 2008 taxes for free   New Employees: Page     Annually (By January 31 of the current year, Page □ Verify work eligibility of new employees 3     for the prior year):   □ Record employees' names and SSNs from     □ File Form 944 if required (pay tax with return if     social security cards 4     not required to deposit) 29 □ Ask employees for Form W-4 3     Annually (see Calendar for due dates):     Each Payday:     □ Remind employees to submit a new Form W-4   □ Withhold federal income tax based on each       if they need to change their withholding 20   employee's Form W-4 20   □ Ask for a new Form W-4 from employees   □ Withhold employee's share of social security       claiming exemption from income tax     and Medicare taxes 23     withholding 20 □ Deposit:     □ Reconcile Forms 941 (or Form 944) with Forms     • Withheld income tax       W-2 and W-3 31   • Withheld and employer social security taxes     □ Furnish each employee a Form W-2 7   • Withheld and employer Medicare taxes 24   □ File Copy A of Forms W-2 and the transmittal     Note:Due date of deposit generally depends       Form W-3 with the SSA 8   on your deposit schedule (monthly or semiweekly)     □ Furnish each other payee a Form 1099 (for example, Form 1099-MISC, Miscellaneous Income) 7   Quarterly (By April 30, July 31, October 31, and January 31):     □ File Forms 1099 and the transmittal Form   □ Deposit FUTA tax if undeposited amount       1096 8   is over $500 35   □ File Form 940 7 □ File Form 941 (pay tax with return if not     □ File Form 945 for any nonpayroll income tax     required to deposit) 29     withholding 8 Information Returns You may be required to file information returns to report certain types of payments made during the year. File 2008 taxes for free For example, you must file Form 1099-MISC, Miscellaneous Income, to report payments of $600 or more to persons not treated as employees (for example, independent contractors) for services performed for your trade or business. File 2008 taxes for free For details about filing Forms 1099 and for information about required electronic filing, see the General Instructions for Certain Information Returns for general information and the separate, specific instructions for each information return you file (for example, Instructions for Form 1099-MISC). File 2008 taxes for free Generally, do not use Forms 1099 to report wages and other compensation you paid to employees; report these on Form W-2. File 2008 taxes for free See the General Instructions for Forms W-2 and W-3 for details about filing Form W-2 and for information about required electronic filing. File 2008 taxes for free If you file 250 or more Forms 1099, you must file them electronically. File 2008 taxes for free If you file 250 or more Forms W-2, you must file them electronically. File 2008 taxes for free SSA will not accept Forms W-2 and W-3 filed on magnetic media. File 2008 taxes for free Information reporting customer service site. File 2008 taxes for free  The IRS operates the Enterprise Computing Center—Martinsburg, a centralized customer service site, to answer questions about reporting on Forms W-2, W-3, 1099, and other information returns. File 2008 taxes for free If you have questions related to reporting on information returns, call 1-866-455-7438 (toll free), 304-263-8700 (toll call), or 304-267-3367 (TDD/TTY for persons who are deaf, hard of hearing, or have a speech disability). File 2008 taxes for free The center can also be reached by email at mccirp@irs. File 2008 taxes for free gov. File 2008 taxes for free Do not include tax identification numbers (TINs) or attachments in email correspondence because electronic mail is not secure. File 2008 taxes for free Nonpayroll Income Tax Withholding Nonpayroll federal income tax withholding (reported on Forms 1099 and Form W-2G) must be reported on Form 945, Annual Return of Withheld Federal Income Tax. File 2008 taxes for free Separate deposits are required for payroll (Form 941 or Form 944) and nonpayroll (Form 945) withholding. File 2008 taxes for free Nonpayroll items include: Pensions (including distributions from tax-favored retirement plans, for example, section 401(k), section 403(b), and governmental section 457(b) plans) and annuities. File 2008 taxes for free Military retirement. File 2008 taxes for free Gambling winnings. File 2008 taxes for free Indian gaming profits. File 2008 taxes for free Certain government payments, such as unemployment compensation, social security, and Tier 1 railroad retirement benefits, subject to voluntary withholding. File 2008 taxes for free Payments subject to backup withholding. File 2008 taxes for free For details on depositing and reporting nonpayroll income tax withholding, see the Instructions for Form 945. File 2008 taxes for free All income tax withholding reported on Form W-2 must be reported on Form 941, Form 943, Employer's Annual Federal Tax Return for Agricultural Employees, Form 944, or Schedule H (Form 1040), Household Employment Taxes. File 2008 taxes for free Distributions from nonqualified pension plans and deferred compensation plans. File 2008 taxes for free  Because distributions to participants from some nonqualified pension plans and deferred compensation plans (including section 457(b) plans of tax-exempt organizations) are treated as wages and are reported on Form W-2, income tax withheld must be reported on Form 941 or Form 944, not on Form 945. File 2008 taxes for free However, distributions from such plans to a beneficiary or estate of a deceased employee are not wages and are reported on Forms 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. File 2008 taxes for free ; income tax withheld must be reported on Form 945. File 2008 taxes for free Backup withholding. File 2008 taxes for free  You generally must withhold 28% of certain taxable payments if the payee fails to furnish you with his or her correct taxpayer identification number (TIN). File 2008 taxes for free This withholding is referred to as “backup withholding. File 2008 taxes for free ” Payments subject to backup withholding include interest, dividends, patronage dividends, rents, royalties, commissions, nonemployee compensation, and certain other payments you make in the course of your trade or business. File 2008 taxes for free In addition, transactions by brokers and barter exchanges and certain payments made by fishing boat operators are subject to backup withholding. File 2008 taxes for free Backup withholding does not apply to wages, pensions, annuities, IRAs (including simplified employee pension (SEP) and SIMPLE retirement plans), section 404(k) distributions from an employee stock ownership plan (ESOP), medical savings accounts, health savings accounts, long-term-care benefits, or real estate transactions. File 2008 taxes for free You can use Form W-9 or Formulario W-9(SP) to request payees to furnish a TIN and to certify the number furnished is correct. File 2008 taxes for free You can also use Form W-9 or Formulario W-9(SP) to get certifications from payees that they are not subject to backup withholding or that they are exempt from backup withholding. File 2008 taxes for free The Instructions for the Requester of Form W-9 or Formulario W-9(SP) includes a list of types of payees who are exempt from backup withholding. File 2008 taxes for free For more information, see Publication 1281, Backup Withholding for Missing and Incorrect Name/TIN(s). File 2008 taxes for free Recordkeeping Keep all records of employment taxes for at least 4 years. File 2008 taxes for free These should be available for IRS review. File 2008 taxes for free Your records should include the following information. File 2008 taxes for free Your EIN. File 2008 taxes for free Amounts and dates of all wage, annuity, and pension payments. File 2008 taxes for free Amounts of tips reported to you by your employees. File 2008 taxes for free Records of allocated tips. File 2008 taxes for free The fair market value of in-kind wages paid. File 2008 taxes for free Names, addresses, social security numbers, and occupations of employees and recipients. File 2008 taxes for free Any employee copies of Forms W-2 and W-2c returned to you as undeliverable. File 2008 taxes for free Dates of employment for each employee. File 2008 taxes for free Periods for which employees and recipients were paid while absent due to sickness or injury and the amount and weekly rate of payments you or third party payors made to them. File 2008 taxes for free Copies of employees' and recipients' income tax withholding allowance certificates (Forms W-4, W-4P, W-4(SP), W-4S, and W-4V). File 2008 taxes for free Copies of employees' Earned Income Credit Advance Payment Certificates (Forms W-5 and W-5(SP)). File 2008 taxes for free Dates and amounts of tax deposits you made and acknowledgment numbers for deposits made by EFTPS. File 2008 taxes for free Copies of returns filed and confirmation numbers. File 2008 taxes for free Records of fringe benefits and expense reimbursements provided to your employees, including substantiation. File 2008 taxes for free Change of Business Address or Responsible Party To notify the IRS of a change in business address or responsible party, file Form 8822-B. File 2008 taxes for free Do not mail Form 8822-B with your employment tax return. File 2008 taxes for free Private Delivery Services You can use certain private delivery services designated by the IRS to mail tax returns and payments. File 2008 taxes for free The list includes only the following: DHL Express (DHL): DHL Same Day Service. File 2008 taxes for free Federal Express (FedEx): FedEx Priority Overnight, FedEx Standard Overnight, FedEx 2Day, FedEx International Priority, and FedEx International First. File 2008 taxes for free United Parcel Service (UPS): UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A. File 2008 taxes for free M. File 2008 taxes for free , UPS Worldwide Express Plus, and UPS Worldwide Express. File 2008 taxes for free For the IRS mailing address to use if you are using a private delivery service, go to IRS. File 2008 taxes for free gov and enter “private delivery service” in the search box. File 2008 taxes for free Your private delivery service can tell you how to get written proof of the mailing date. File 2008 taxes for free   Private delivery services cannot deliver items to P. File 2008 taxes for free O. File 2008 taxes for free boxes. File 2008 taxes for free You must use the U. File 2008 taxes for free S. File 2008 taxes for free Postal Service to mail any item to an IRS P. File 2008 taxes for free O. File 2008 taxes for free box address. File 2008 taxes for free Telephone Help Tax questions. File 2008 taxes for free   You can call the IRS Business and Specialty Tax Line with your employment tax questions at 1-800-829-4933. File 2008 taxes for free Help for people with disabilities. File 2008 taxes for free  You may call 1-800-829-4059 (TDD/TTY for persons who are deaf, hard of hearing, or have a speech disability) with any tax question or to order forms and publications. File 2008 taxes for free You may also use this number for assistance with unresolved tax problems. File 2008 taxes for free Recorded tax information (TeleTax). File 2008 taxes for free  The IRS TeleTax service provides recorded tax information on topics that answer many individual and business federal tax questions. File 2008 taxes for free You can listen to up to three topics on each call you make. File 2008 taxes for free Touch-Tone service is available 24 hours a day, 7 days a week. File 2008 taxes for free TeleTax topics are also available on the IRS website at www. File 2008 taxes for free irs. File 2008 taxes for free gov/taxtopics. File 2008 taxes for free Most tax topics listed below are also available in Spanish. File 2008 taxes for free For a complete list of TeleTax topics in Spanish, visit the IRS website at www. File 2008 taxes for free irs. File 2008 taxes for free gov/Spanish/Índice-de-Temas-Tributarios-Año-2013. File 2008 taxes for free A list of employment tax topics is provided next. File 2008 taxes for free Select, by number, the topic you want to hear and call 1-800-829-4477. File 2008 taxes for free For the directory of all topics, select Topic 123. File 2008 taxes for free Teletax Topics Topic No. File 2008 taxes for free Subject 751 Social Security and Medicare Withholding Rates 752 Form W-2—Where, When, and How to File 753 Form W-4—Employee's Withholding Allowance Certificate 755 Employer Identification Number (EIN)—How to Apply 756 Employment Taxes for Household Employees 757 Form 941 and Form 944—Deposit Requirements 758 Form 941—Employer's QUARTERLY Federal Tax Return and Form 944—Employer's ANNUAL Federal Tax Return 759 Form 940—Employer's Annual Federal Unemployment (FUTA) Tax Return—Filing and Deposit Requirements 760 Reporting and Deposit Requirements for Agricultural Employers 761 Tips—Withholding and Reporting 762 Independent Contractor vs. File 2008 taxes for free Employee 763 The “Affordable Care Act” of 2010 Offers Employers New Tax Deductions and Credits Additional employment tax information. File 2008 taxes for free  Visit the IRS website at www. File 2008 taxes for free irs. File 2008 taxes for free gov/businesses and click on the Employment Taxes link under Businesses Topics. File 2008 taxes for free Ordering Employer Tax Forms and Publications You can order employer tax forms and publications and information returns online at www. File 2008 taxes for free irs. File 2008 taxes for free gov/businesses. File 2008 taxes for free To order 2013 and 2014 forms, click on the Online Ordering for Information Returns and Employer Returns link. File 2008 taxes for free You may also order employer tax forms and publications and information returns by calling 1-800-TAX-FORM (1-800-829-3676). File 2008 taxes for free Instead of ordering paper Forms W-2 and W-3, consider filing them electronically using the Social Security Administration's (SSA) free e-file service. File 2008 taxes for free Visit the SSA's Employer W-2 Filing Instructions & Information website at www. File 2008 taxes for free socialsecurity. File 2008 taxes for free gov/employer to register for Business Services Online. File 2008 taxes for free You will be able to create Forms W-2 online and submit them to the SSA by typing your wage information into easy-to-use fill-in fields. File 2008 taxes for free In addition, you can print out completed copies of Forms W-2 to file with state or local governments, distribute to your employees, and keep for your records. File 2008 taxes for free Form W-3 will be created for you based on your Forms W-2. File 2008 taxes for free Filing Addresses Generally, your filing address for Forms 940, 941, 943, 944, 945, and CT-1 depends on the location of your residence or principal place of business and whether or not you are including a payment with your return. File 2008 taxes for free There are separate filing addresses for these returns if you are a tax-exempt organization or government entity. File 2008 taxes for free See the separate instructions for Forms 940, 941, 943, 944, 945, or CT-1 for the filing addresses. File 2008 taxes for free Dishonored Payments Any form of payment that is dishonored and returned from a financial institution is subject to a penalty. File 2008 taxes for free The penalty is $25 or 2% of the payment, whichever is more. File 2008 taxes for free However, the penalty on dishonored payments of $24. File 2008 taxes for free 99 or less is an amount equal to the payment. File 2008 taxes for free For example, a dishonored payment of $18 is charged a penalty of $18. File 2008 taxes for free Photographs of Missing Children The IRS is a proud partner with the National Center for Missing and Exploited Children. File 2008 taxes for free Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. File 2008 taxes for free 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. File 2008 taxes for free Calendar The following is a list of important dates. File 2008 taxes for free Also see Publication 509, Tax Calendars. File 2008 taxes for free   If any date shown below for filing a return, furnishing a form, or depositing taxes falls on a Saturday, Sunday, or legal holiday, use the next business day. File 2008 taxes for free A statewide legal holiday delays a filing due date only if the IRS office where you are required to file is located in that state. File 2008 taxes for free However, a statewide legal holiday does not delay the due date of federal tax deposits. File 2008 taxes for free See Deposits on Business Days Only in section 11. File 2008 taxes for free For any filing due date, you will meet the “file” or “furnish” requirement if the envelope containing the return or form is properly addressed, contains sufficient postage, and is postmarked by the U. File 2008 taxes for free S. File 2008 taxes for free Postal Service on or before the due date, or sent by an IRS-designated private delivery service on or before the due date. File 2008 taxes for free See Private Delivery Services under Reminders for more information. File 2008 taxes for free Introduction This publication explains your tax responsibilities as an employer. File 2008 taxes for free It explains the requirements for withholding, depositing, reporting, paying, and correcting employment taxes. File 2008 taxes for free It explains the forms you must give to your employees, those your employees must give to you, and those you must send to the IRS and SSA. File 2008 taxes for free This guide also has tax tables you need to figure the taxes to withhold from each employee for 2014. File 2008 taxes for free References to “income tax” in this guide apply only to “federal” income tax. File 2008 taxes for free Contact your state or local tax department to determine if their rules are different. File 2008 taxes for free Additional employment tax information is available in Publication 15-A. File 2008 taxes for free Publication 15-A includes specialized information supplementing the basic employment tax information provided in this publication. File 2008 taxes for free Publication 15-B, Employer's Tax Guide to Fringe Benefits, contains information about the employment tax treatment and valuation of various types of noncash compensation. File 2008 taxes for free Most employers must withhold (except FUTA), deposit, report, and pay the following employment taxes. File 2008 taxes for free Income tax. File 2008 taxes for free Social security tax. File 2008 taxes for free Medicare tax. File 2008 taxes for free FUTA tax. File 2008 taxes for free There are exceptions to these requirements. File 2008 taxes for free See section 15 for guidance. File 2008 taxes for free Railroad retirement taxes are explained in the Instructions for Form CT-1. File 2008 taxes for free Comments and suggestions. File 2008 taxes for free   We welcome your comments about this publication and your suggestions for future editions. File 2008 taxes for free   You can write to us at the following address: Internal Revenue Service Tax Forms & Publications Division 1111 Constitution Ave. File 2008 taxes for free NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. File 2008 taxes for free Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. File 2008 taxes for free   You can also send us comments from www. File 2008 taxes for free irs. File 2008 taxes for free gov/formspubs. File 2008 taxes for free Click on More Information and then click on Comment on Tax Forms and Publications. File 2008 taxes for free   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax forms, instructions, and publications. File 2008 taxes for free Federal Government employers. File 2008 taxes for free   The information in this publication, including the rules for making federal tax deposits, applies to federal agencies. File 2008 taxes for free State and local government employers. File 2008 taxes for free   Payments to employees for services in the employ of state and local government employers are generally subject to federal income tax withholding but not FUTA tax. File 2008 taxes for free Most elected and appointed public officials of state or local governments are employees under common law rules. File 2008 taxes for free See chapter 3 of Publication 963, Federal-State Reference Guide. File 2008 taxes for free In addition, wages, with certain exceptions, are subject to social security and Medicare taxes. File 2008 taxes for free See section 15 for more information on the exceptions. File 2008 taxes for free   If an election worker is employed in another capacity with the same government entity, see Revenue Ruling 2000-6 on page 512 of Internal Revenue Bulletin 2000-6 at www. File 2008 taxes for free irs. File 2008 taxes for free gov/pub/irs-irbs/irb00-06. File 2008 taxes for free pdf. File 2008 taxes for free   You can get information on reporting and social security coverage from your local IRS office. File 2008 taxes for free If you have any questions about coverage under a section 218 (Social Security Act) agreement, contact the appropriate state official. File 2008 taxes for free To find your State Social Security Administrator, visit the National Conference of State Social Security Administrators website at www. File 2008 taxes for free ncsssa. File 2008 taxes for free org. File 2008 taxes for free Disregarded entities and qualified subchapter S subsidiaries (QSubs). File 2008 taxes for free   Eligible single-owner disregarded entities and QSubs are treated as separate entities for employment tax purposes. File 2008 taxes for free Eligible single-member entities that have not elected to be taxed as corporations must report and pay employment taxes on wages paid to their employees using the entities' own names and EINs. File 2008 taxes for free See Regulations sections 1. File 2008 taxes for free 1361-4(a)(7) and 301. File 2008 taxes for free 7701-2(c)(2)(iv). File 2008 taxes for free COBRA premium assistance credit. File 2008 taxes for free   The Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) provides certain former employees, retirees, spouses, former spouses, and dependent children the right to temporary continuation of health coverage at group rates. File 2008 taxes for free COBRA generally covers multiemployer health plans and health plans maintained by private-sector employers (other than churches) with 20 or more full and part-time employees. File 2008 taxes for free Parallel requirements apply to these plans under the Employee Retirement Income Security Act of 1974 (ERISA). File 2008 taxes for free Under the Public Health Service Act, COBRA requirements apply also to health plans covering state or local government employees. File 2008 taxes for free Similar requirements apply under the Federal Employees Health Benefits Program and under some state laws. File 2008 taxes for free For the premium assistance (or subsidy) discussed below, these requirements are all referred to as COBRA requirements. File 2008 taxes for free   Under the American Recovery and Reinvestment Act of 2009 (ARRA), employers are allowed a credit against “payroll taxes” (referred to in this publication as “employment taxes”) for providing COBRA premium assistance to assistance eligible individuals. File 2008 taxes for free For periods of COBRA continuation coverage beginning after February 16, 2009, a group health plan must treat an assistance eligible individual as having paid the required COBRA continuation coverage premium if the individual elects COBRA coverage and pays 35% of the amount of the premium. File 2008 taxes for free   An assistance eligible individual is a qualified beneficiary of an employer's group health plan who is eligible for COBRA continuation coverage during the period beginning September 1, 2008, and ending May 31, 2010, due to the involuntarily termination from employment of a covered employee during the period and elects continuation COBRA coverage. File 2008 taxes for free The assistance for the coverage can last up to 15 months. File 2008 taxes for free   Employees terminated during the period beginning September 1, 2008, and ending May 31, 2010, who received a severance package that delayed the start of the COBRA continuation coverage, may still be eligible for premium assistance for COBRA continuation coverage. File 2008 taxes for free For more information see Notice 2009-27, 2009-16 I. File 2008 taxes for free R. File 2008 taxes for free B. File 2008 taxes for free 838, available at www. File 2008 taxes for free irs. File 2008 taxes for free gov/irb/2009-16_irb/ar09. File 2008 taxes for free html. File 2008 taxes for free   Administrators of the group health plans (or other entities) that provide or administer COBRA continuation coverage must provide notice to assistance eligible individuals of the COBRA premium assistance. File 2008 taxes for free   The 65% of the premium not paid by the assistance eligible individuals is reimbursed to the employer maintaining the group health plan. File 2008 taxes for free The reimbursement is made through a credit against the employer's employment tax liabilities. File 2008 taxes for free For information on how to claim the credit, see the Instructions for Form 941 or the Instructions for Form 944. File 2008 taxes for free The credit is treated as a deposit made on the first day of the return period (quarter or year). File 2008 taxes for free In the case of a multiemployer plan, the credit is claimed by the plan, rather than the employer. File 2008 taxes for free In the case of an insured plan subject to state law continuation coverage requirements, the credit is claimed by the insurance company, rather than the employer. File 2008 taxes for free   Anyone claiming the credit for COBRA premium assistance payments must maintain the following information to support their claim, including the following. File 2008 taxes for free Information on the receipt of the assistance eligible individuals' 35% share of the premium, including dates and amounts. File 2008 taxes for free In the case of an insurance plan, a copy of invoice or other supporting statement from the insurance carrier and proof of timely payment of the full premium to the insurance carrier required under COBRA. File 2008 taxes for free In the case of a self-insured plan, proof of the premium amount and proof of the coverage provided to the assistance eligible individuals. File 2008 taxes for free Attestation of involuntary termination, including the date of the involuntary termination for each covered employee whose involuntary termination is the basis for eligibility for the subsidy. File 2008 taxes for free Proof of each assistance eligible individual's eligibility for COBRA coverage and the election of COBRA coverage. File 2008 taxes for free A record of the SSNs of all covered employees, the amount of the subsidy reimbursed with respect to each covered employee, and whether the subsidy was for one individual or two or more individuals. File 2008 taxes for free   For more information, visit IRS. File 2008 taxes for free gov and enter “COBRA” in the search box. File 2008 taxes for free Prev  Up  Next   Home   More Online Publications
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Deducting Business Expenses

Business expenses are the cost of carrying on a trade or business. These expenses are usually deductible if the business is operated to make a profit.

What Can I Deduct?

To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your trade or business. A necessary expense is one that is helpful and appropriate for your trade or business. An expense does not have to be indispensable to be considered necessary.

It is important to separate business expenses from the following expenses:

  • The expenses used to figure the cost of goods sold,
  • Capital Expenses, and
  • Personal Expenses.

Cost of Goods Sold

If your business manufactures products or purchases them for resale, you generally must value inventory at the beginning and end of each tax year to determine your cost of goods sold. Some of your expenses may be included in figuring the cost of goods sold. Cost of goods sold is deducted from your gross receipts to figure your gross profit for the year. If you include an expense in the cost of goods sold, you cannot deduct it again as a business expense.

The following are types of expenses that go into figuring the cost of goods sold.

  • The cost of products or raw materials, including freight
  • Storage
  • Direct labor costs (including contributions to pensions or annuity plans) for workers who produce the products
  • Factory overhead

Under the uniform capitalization rules, you must capitalize the direct costs and part of the indirect costs for certain production or resale activities. Indirect costs include rent, interest, taxes, storage, purchasing, processing, repackaging, handling, and administrative costs.

This rule does not apply to personal property you acquire for resale if your average annual gross receipts (or those of your predecessor) for the preceding 3 tax years are not more than $10 million.

For additional information, refer to the chapter on Cost of Goods Sold, Publication 334, Tax Guide for Small Businesses and the chapter on Inventories, Publication 538, Accounting Periods and Methods.

Capital Expenses

You must capitalize, rather than deduct, some costs. These costs are a part of your investment in your business and are called capital expenses. Capital expenses are considered assets in your business. There are, in general, three types of costs you capitalize.

  • Business start-up cost (See the note below)
  • Business assets
  • Improvements

Note: You can elect to deduct or amortize certain business start-up costs. Refer to chapters 7 and 8 of Publication 535, Business Expenses.

Personal versus Business Expenses

Generally, you cannot deduct personal, living, or family expenses. However, if you have an expense for something that is used partly for business and partly for personal purposes, divide the total cost between the business and personal parts. You can deduct the business part.

For example, if you borrow money and use 70% of it for business and the other 30% for a family vacation, you can deduct 70% of the interest as a business expense. The remaining 30% is personal interest and is not deductible. Refer to chapter 4 of Publication 535, Business Expenses, for information on deducting interest and the allocation rules.

Business Use of Your Home

If you use part of your home for business, you may be able to deduct expenses for the business use of your home. These expenses may include mortgage interest, insurance, utilities, repairs, and depreciation. Refer to Home Office Deduction and Publication 587, Business Use of Your Home, for more information.

Business Use of Your Car

If you use your car in your business, you can deduct car expenses. If you use your car for both business and personal purposes, you must divide your expenses based on actual mileage. Refer to Publication 463, Travel, Entertainment, Gift, and Car Expenses. For a list of current and prior year mileage rates see the Standard Mileage Rates.

Other Types of Business Expenses

  • Employees' Pay - You can generally deduct the pay you give your employees for the services they perform for your business.
  • Retirement Plans - Retirement plans are savings plans that offer you tax advantages to set aside money for your own, and your employees' retirement.
  • Rent Expense - Rent is any amount you pay for the use of property you do not own. In general, you can deduct rent as an expense only if the rent is for property you use in your trade or business. If you have or will receive equity in or title to the property, the rent is not deductible.
  • Interest - Business interest expense is an amount charged for the use of money you borrowed for business activities.
  • Taxes - You can deduct various federal, state, local, and foreign taxes directly attributable to your trade or business as business expenses.
  • Insurance - Generally, you can deduct the ordinary and necessary cost of insurance as a business expense, if it is for your trade, business, or profession.

This list is not all inclusive of the types of business expenses that you can deduct. For additional information, refer to Publication 535, Business Expenses.

Page Last Reviewed or Updated: 04-Feb-2014

The File 2008 Taxes For Free

File 2008 taxes for free 37. File 2008 taxes for free   Other Credits Table of Contents What's New Introduction Useful Items - You may want to see: Nonrefundable CreditsAdoption Credit Alternative Motor Vehicle Credit Alternative Fuel Vehicle Refueling Property Credit Credit to Holders of Tax Credit Bonds Foreign Tax Credit Mortgage Interest Credit Nonrefundable Credit for Prior Year Minimum Tax Plug-in Electric Drive Motor Vehicle Credit Residential Energy Credits Retirement Savings Contributions Credit (Saver's Credit) Refundable CreditsCredit for Tax on Undistributed Capital Gain Health Coverage Tax Credit Credit for Excess Social Security Tax or Railroad Retirement Tax Withheld What's New Adoption credit. File 2008 taxes for free  The maximum adoption credit is $12,970 for 2013. File 2008 taxes for free See Adoption Credit . File 2008 taxes for free Plug-in electric vehicle credit. File 2008 taxes for free  This credit has expired. File 2008 taxes for free Credit for prior year minimum tax. File 2008 taxes for free  The refundable portion of the credit for prior year minimum tax has expired. File 2008 taxes for free Excess withholding of social security and railroad retirement tax. File 2008 taxes for free  Social security tax and tier 1 railroad retirement (RRTA) tax were both withheld during 2013 at a rate of 6. File 2008 taxes for free 2% of wages up to $113,700. File 2008 taxes for free If you worked for more than one employer and had too much social security or RRTA tax withheld during 2013, you may be entitled to a credit for the excess withholding. File 2008 taxes for free See Credit for Excess Social Security Tax or Railroad Retirement Tax Withheld . File 2008 taxes for free Introduction This chapter discusses the following nonrefundable credits. File 2008 taxes for free Adoption credit. File 2008 taxes for free Alternative motor vehicle credit. File 2008 taxes for free Alternative fuel vehicle refueling property credit. File 2008 taxes for free Credit to holders of tax credit bonds. File 2008 taxes for free Foreign tax credit. File 2008 taxes for free Mortgage interest credit. File 2008 taxes for free Nonrefundable credit for prior year minimum tax. File 2008 taxes for free Plug-in electric drive motor vehicle credit. File 2008 taxes for free Residential energy credits. File 2008 taxes for free Retirement savings contributions credit. File 2008 taxes for free This chapter also discusses the following refundable credits. File 2008 taxes for free Credit for tax on undistributed capital gain. File 2008 taxes for free Health coverage tax credit. File 2008 taxes for free Credit for excess social security tax or railroad retirement tax withheld. File 2008 taxes for free Several other credits are discussed in other chapters in this publication. File 2008 taxes for free Child and dependent care credit (chapter 32). File 2008 taxes for free Credit for the elderly or the disabled (chapter 33). File 2008 taxes for free Child tax credit (chapter 34). File 2008 taxes for free Education credits (chapter 35). File 2008 taxes for free Earned income credit (chapter 36). File 2008 taxes for free Nonrefundable credits. File 2008 taxes for free   The first part of this chapter, Nonrefundable Credits , covers ten credits that you subtract from your tax. File 2008 taxes for free These credits may reduce your tax to zero. File 2008 taxes for free If these credits are more than your tax, the excess is not refunded to you. File 2008 taxes for free Refundable credits. File 2008 taxes for free   The second part of this chapter, Refundable Credits , covers three credits that are treated as payments and are refundable to you. File 2008 taxes for free These credits are added to the federal income tax withheld and any estimated tax payments you made. File 2008 taxes for free If this total is more than your total tax, the excess will be refunded to you. File 2008 taxes for free Useful Items - You may want to see: Publication 502 Medical and Dental Expenses 514 Foreign Tax Credit for  Individuals 530 Tax Information for Homeowners 590 Individual Retirement Arrangements (IRAs) Form (and Instructions) 1116 Foreign Tax Credit 2439 Notice to Shareholder of Undistributed Long-Term Capital Gains 5695 Residential Energy Credits 8396 Mortgage Interest Credit 8801 Credit For Prior Year Minimum Tax — Individuals, Estates, and Trusts 8828 Recapture of Federal Mortgage Subsidy 8839 Qualified Adoption Expenses 8880 Credit for Qualified Retirement Savings Contributions 8885 Health Coverage Tax Credit 8910 Alternative Motor Vehicle Credit 8911 Alternative Fuel Vehicle Refueling Property Credit 8912 Credit to Holders of Tax Credit Bonds 8936 Qualified Plug-in Electric Drive Motor Vehicle Credit Nonrefundable Credits The credits discussed in this part of the chapter can reduce your tax. File 2008 taxes for free However, if the total of these credits is more than your tax, the excess is not refunded to you. File 2008 taxes for free Adoption Credit You may be able to take a tax credit of up to $12,970 for qualified expenses paid to adopt an eligible child. File 2008 taxes for free The credit may be allowed for the adoption of a child with special needs even if you do not have any qualified expenses. File 2008 taxes for free If your modified adjusted gross income (AGI) is more than $194,580, your credit is reduced. File 2008 taxes for free If your modified AGI is $234,580 or more, you cannot take the credit. File 2008 taxes for free Qualified adoption expenses. File 2008 taxes for free   Qualified adoption expenses are reasonable and necessary expenses directly related to, and whose principal purpose is for, the legal adoption of an eligible child. File 2008 taxes for free These expenses include: Adoption fees, Court costs, Attorney fees, Travel expenses (including amounts spent for meals and lodging) while away from home, and Re-adoption expenses to adopt a foreign child. File 2008 taxes for free Nonqualified expenses. File 2008 taxes for free   Qualified adoption expenses do not include expenses: That violate state or federal law, For carrying out any surrogate parenting arrangement, For the adoption of your spouse's child, For which you received funds under any federal, state, or local program, Allowed as a credit or deduction under any other federal income tax rule, or Paid or reimbursed by your employer or any other person or organization. File 2008 taxes for free Eligible child. File 2008 taxes for free   The term “eligible child” means any individual: Under 18 years old, or Physically or mentally incapable of caring for himself or herself. File 2008 taxes for free Child with special needs. File 2008 taxes for free   An eligible child is a child with special needs if all three of the following apply. File 2008 taxes for free The child was a citizen or resident of the United States (including U. File 2008 taxes for free S. File 2008 taxes for free possessions) at the time the adoption process began. File 2008 taxes for free A state (including the District of Columbia) has determined that the child cannot or should not be returned to his or her parents' home. File 2008 taxes for free The state has determined that the child will not be adopted unless assistance is provided to the adoptive parents. File 2008 taxes for free Factors used by states to make this determination include: The child's ethnic background, The child's age, Whether the child is a member of a minority or sibling group, and Whether the child has a medical condition or a physical, mental, or emotional handicap. File 2008 taxes for free When to take the credit. File 2008 taxes for free   Generally, until the adoption becomes final, you take the credit in the year after your qualified expenses were paid or incurred. File 2008 taxes for free If the adoption becomes final, you take the credit in the year your expenses were paid or incurred. File 2008 taxes for free See the Instructions for Form 8839 for more specific information on when to take the credit. File 2008 taxes for free Foreign child. File 2008 taxes for free   If the child is not a U. File 2008 taxes for free S. File 2008 taxes for free citizen or resident at the time the adoption process began, you cannot take the credit unless the adoption becomes final. File 2008 taxes for free You treat all adoption expenses paid or incurred in years before the adoption becomes final as paid or incurred in the year it becomes final. File 2008 taxes for free How to take the credit. File 2008 taxes for free   Figure your 2013 nonrefundable credit and any carryforward to 2014 on Form 8839 and attach it to your Form 1040. File 2008 taxes for free Include the credit in your total for Form 1040, line 53. File 2008 taxes for free Check box c and enter “8839” on the line next to that box. File 2008 taxes for free More information. File 2008 taxes for free   For more information, see the Instructions for Form 8839. File 2008 taxes for free Alternative Motor Vehicle Credit You may be able to take this credit if you place a qualified fuel cell vehicle in service in 2013. File 2008 taxes for free Amount of credit. File 2008 taxes for free   Generally, you can rely on the manufacturer's certification to the IRS that a specific make, model, and model year vehicle qualifies for the credit and the amount of the credit for which it qualifies. File 2008 taxes for free In the case of a foreign manufacturer, you generally can rely on its domestic distributor's certification to the IRS. File 2008 taxes for free   Ordinarily the amount of the credit is 100% of the manufacturer's (or domestic distributor's) certification to the IRS of the maximum credit allowable. File 2008 taxes for free How to take the credit. File 2008 taxes for free   To take the credit, you must complete Form 8910 and attach it to your Form 1040. File 2008 taxes for free Include the credit in your total for Form 1040, line 53. File 2008 taxes for free Check box c and enter “8910” on the line next to that box. File 2008 taxes for free More information. File 2008 taxes for free   For more information on the credit, see the Instructions for Form 8910. File 2008 taxes for free Alternative Fuel Vehicle Refueling Property Credit You may be able to take a credit if you place qualified alternative fuel vehicle refueling property in service in 2013. File 2008 taxes for free Qualified alternative fuel vehicle refueling property. File 2008 taxes for free   Qualified alternative fuel vehicle refueling property is any property (other than a building or its structural components) used for either of the following. File 2008 taxes for free To store or dispense alternative fuel into the fuel tank of a motor vehicle propelled by the fuel, but only if the storage or dispensing is at the point where the fuel is delivered into that tank. File 2008 taxes for free To recharge an electric vehicle, but only if the recharging property is located at the point where the vehicle is recharged. File 2008 taxes for free   The following are alternative fuels. File 2008 taxes for free Any fuel at least 85% of the volume of which consists of one or more of the following: ethanol, natural gas, compressed natural gas, liquefied natural gas, liquefied petroleum gas, or hydrogen. File 2008 taxes for free Any mixture which consists of two or more of the following: biodiesel, diesel fuel, or kerosene, and at least 20% of the volume of which consists of biodiesel determined without regard to any kerosene. File 2008 taxes for free Electricity. File 2008 taxes for free Amount of the credit. File 2008 taxes for free   For personal use property, the credit is generally the smaller of 30% of the property's cost or $1,000. File 2008 taxes for free For business use property, the credit is generally the smaller of 30% of the property's cost or $30,000. File 2008 taxes for free How to take the credit. File 2008 taxes for free   To take the credit, you must complete Form 8911 and attach it to your Form 1040. File 2008 taxes for free Include the credit in your total for Form 1040, line 53. File 2008 taxes for free Check box c and enter “8911” on the line next to that box. File 2008 taxes for free More information. File 2008 taxes for free   For more information on the credit, see the Form 8911 instructions. File 2008 taxes for free Credit to Holders of Tax Credit Bonds Tax credit bonds are bonds in which the holder receives a tax credit in lieu of some or all of the interest on the bond. File 2008 taxes for free You may be able to take a credit if you are a holder of one of the following bonds. File 2008 taxes for free Clean renewable energy bonds (issued before 2010). File 2008 taxes for free New clean renewable energy bonds. File 2008 taxes for free Qualified energy conservation bonds. File 2008 taxes for free Qualified school construction bonds. File 2008 taxes for free Qualified zone academy bonds. File 2008 taxes for free Build America bonds. File 2008 taxes for free In some instances, an issuer may elect to receive a credit for interest paid on the bond. File 2008 taxes for free If the issuer makes this election, you cannot also claim a credit. File 2008 taxes for free Interest income. File 2008 taxes for free   The amount of any tax credit allowed (figured before applying tax liability limits) must be included as interest income on your tax return. File 2008 taxes for free How to take the credit. File 2008 taxes for free   Complete Form 8912 and attach it to your Form 1040. File 2008 taxes for free Include the credit in your total for Form 1040, line 53. File 2008 taxes for free Check box c and enter “8912” on the line next to that box. File 2008 taxes for free More information. File 2008 taxes for free   For more information, see the Instructions for Form 8912. File 2008 taxes for free Foreign Tax Credit You generally can choose to take income taxes you paid or accrued during the year to a foreign country or U. File 2008 taxes for free S. File 2008 taxes for free possession as a credit against your U. File 2008 taxes for free S. File 2008 taxes for free income tax. File 2008 taxes for free Or, you can deduct them as an itemized deduction (see chapter 22). File 2008 taxes for free You cannot take a credit (or deduction) for foreign income taxes paid on income that you exclude from U. File 2008 taxes for free S. File 2008 taxes for free tax under any of the following. File 2008 taxes for free Foreign earned income exclusion. File 2008 taxes for free Foreign housing exclusion. File 2008 taxes for free Income from Puerto Rico exempt from U. File 2008 taxes for free S. File 2008 taxes for free tax. File 2008 taxes for free Possession exclusion. File 2008 taxes for free Limit on the credit. File 2008 taxes for free   Unless you can elect not to file Form 1116 (see Exception , later), your foreign tax credit cannot be more than your U. File 2008 taxes for free S. File 2008 taxes for free tax liability (Form 1040, line 44), multiplied by a fraction. File 2008 taxes for free The numerator of the fraction is your taxable income from sources outside the United States. File 2008 taxes for free The denominator is your total taxable income from U. File 2008 taxes for free S. File 2008 taxes for free and foreign sources. File 2008 taxes for free See Publication 514 for more information. File 2008 taxes for free How to take the credit. File 2008 taxes for free   Complete Form 1116 and attach it to your Form 1040. File 2008 taxes for free Enter the credit on Form 1040, line 47. File 2008 taxes for free Exception. File 2008 taxes for free   You do not have to complete Form 1116 to take the credit if all of the following apply. File 2008 taxes for free All of your gross foreign source income was from interest and dividends and all of that income and the foreign tax paid on it were reported to you on Form 1099-INT, Form 1099-DIV, or Schedule K-1 (or substitute statement). File 2008 taxes for free If you had dividend income from shares of stock, you held those shares for at least 16 days. File 2008 taxes for free You are not filing Form 4563 or excluding income from sources within Puerto Rico. File 2008 taxes for free The total of your foreign taxes was not more than $300 (not more than $600 if married filing jointly). File 2008 taxes for free All of your foreign taxes were: Legally owed and not eligible for a refund, and Paid to countries that are recognized by the United States and do not support terrorism. File 2008 taxes for free More information. File 2008 taxes for free   For more information on the credit and these requirements, see the Instructions for Form 1116. File 2008 taxes for free Mortgage Interest Credit The mortgage interest credit is intended to help lower-income individuals own a home. File 2008 taxes for free If you qualify, you can take the credit each year for part of the home mortgage interest you pay. File 2008 taxes for free Who qualifies. File 2008 taxes for free   You may be eligible for the credit if you were issued a qualified mortgage credit certificate (MCC) from your state or local government. File 2008 taxes for free Generally, an MCC is issued only in connection with a new mortgage for the purchase of your main home. File 2008 taxes for free Amount of credit. File 2008 taxes for free   Figure your credit on Form 8396. File 2008 taxes for free If your mortgage loan amount is equal to (or smaller than) the certified indebtedness (loan) amount shown on your MCC, enter on Form 8396, line 1, all the interest you paid on your mortgage during the year. File 2008 taxes for free   If your mortgage loan amount is larger than the certified indebtedness amount shown on your MCC, you can figure the credit on only part of the interest you paid. File 2008 taxes for free To find the amount to enter on line 1, multiply the total interest you paid during the year on your mortgage by the following fraction. File 2008 taxes for free      Certified indebtedness amount on your MCC     Original amount of your mortgage   Limit based on credit rate. File 2008 taxes for free   If the certificate credit rate is more than 20%, the credit you are allowed cannot be more than $2,000. File 2008 taxes for free If two or more persons (other than a married couple filing a joint return) hold an interest in the home to which the MCC relates, this $2,000 limit must be divided based on the interest held by each person. File 2008 taxes for free See Publication 530 for more information. File 2008 taxes for free Carryforward. File 2008 taxes for free   Your credit (after applying the limit based on the credit rate) is also subject to a limit based on your tax that is figured using Form 8396. File 2008 taxes for free If your allowable credit is reduced because of this tax liability limit, you can carry forward the unused portion of the credit to the next 3 years or until used, whichever comes first. File 2008 taxes for free   If you are subject to the $2,000 limit because your certificate credit rate is more than 20%, you cannot carry forward any amount more than $2,000 (or your share of the $2,000 if you must divide the credit). File 2008 taxes for free How to take the credit. File 2008 taxes for free    Figure your 2013 credit and any carryforward to 2014 on Form 8396, and attach it to your Form 1040. File 2008 taxes for free Be sure to include any credit carryforward from 2010, 2011, and 2012. File 2008 taxes for free   Include the credit in your total for Form 1040, line 53. File 2008 taxes for free Check box c and enter “8396” on the line next to that box. File 2008 taxes for free Reduced home mortgage interest deduction. File 2008 taxes for free   If you itemize your deductions on Schedule A (Form 1040), you must reduce your home mortgage interest deduction by the amount of the mortgage interest credit shown on Form 8396, line 3. File 2008 taxes for free You must do this even if part of that amount is to be carried forward to 2014. File 2008 taxes for free For more information about the home mortgage interest deduction, see chapter 23. File 2008 taxes for free Recapture of federal mortgage subsidy. File 2008 taxes for free   If you received an MCC with your mortgage loan, you may have to recapture (pay back) all or part of the benefit you received from that program. File 2008 taxes for free The recapture may be required if you sell or dispose of your home at a gain during the first 9 years after the date you closed your mortgage loan. File 2008 taxes for free See the Instructions for Form 8828 and chapter 15 for more information. File 2008 taxes for free More information. File 2008 taxes for free   For more information on the credit, see the Form 8396 instructions. File 2008 taxes for free Nonrefundable Credit for Prior Year Minimum Tax The tax laws give special treatment to some kinds of income and allow special deductions and credits for some kinds of expenses. File 2008 taxes for free If you benefit from these laws, you may have to pay at least a minimum amount of tax in addition to any other tax on these items. File 2008 taxes for free This is called the alternative minimum tax. File 2008 taxes for free The special treatment of some items of income and expenses only allows you to postpone paying tax until a later year. File 2008 taxes for free If in prior years you paid alternative minimum tax because of these tax postponement items, you may be able to take a credit for prior year minimum tax against your current year's regular tax. File 2008 taxes for free You may be able to take a credit against your regular tax if for 2012 you had: An alternative minimum tax liability and adjustments or preferences other than exclusion items, A minimum tax credit that you are carrying forward to 2013, or An unallowed qualified electric vehicle credit. File 2008 taxes for free How to take the credit. File 2008 taxes for free    Figure your 2013 nonrefundable credit (if any), and any carryforward to 2014 on Form 8801, and attach it to your Form 1040. File 2008 taxes for free Include the credit in your total for Form 1040, line 53, and check box b. File 2008 taxes for free You can carry forward any unused credit for prior year minimum tax to later years until it is completely used. File 2008 taxes for free More information. File 2008 taxes for free   For more information on the credit, see the Instructions for Form 8801. File 2008 taxes for free Plug-in Electric Drive Motor Vehicle Credit You may be able to take this credit if you placed in service for business or personal use a qualified plug-in electric drive motor vehicle or a qualified two- or three-wheeled plug-in electric vehicle in 2013 and you meet some other requirements. File 2008 taxes for free Qualified plug-in electric drive motor vehicle. File 2008 taxes for free   This is a new vehicle with at least four wheels that: Is propelled to a significant extent by an electric motor that draws electricity from a battery that has a capacity of not less than 4 kilowatt hours and is capable of being recharged from an external source of electricity, and Has a gross vehicle weight of less than 14,000 pounds. File 2008 taxes for free Qualified two- or three-wheeled plug-in electric vehicle. File 2008 taxes for free   This is a new vehicle with two or three wheels that: Is capable of achieving a speed of 45 miles per hour or greater, Is propelled to a significant extent by an electric motor that draws electricity from a battery that has a capacity of not less than 2. File 2008 taxes for free 5 kilowatt hours and is capable of being recharged from an external source of electricity, and Has a gross vehicle weight of less than 14,000 pounds. File 2008 taxes for free Certification and other requirements. File 2008 taxes for free   Generally, you can rely on the manufacturer's (or, in the case of a foreign manufacturer, its domestic distributor's) certification to the IRS that a specific make, model, and model year vehicle qualifies for the credit and, if applicable, the amount of the credit for which it qualifies. File 2008 taxes for free However, if the IRS publishes an announcement that the certification for any specific make, model, and model year vehicle has been withdrawn, you cannot rely on the certification for such a vehicle purchased after the date of publication of the withdrawal announcement. File 2008 taxes for free   The following requirements must also be met to qualify for the credit. File 2008 taxes for free You are the owner of the vehicle. File 2008 taxes for free If the vehicle is leased, only the lessor, and not the lessee, is entitled to the credit. File 2008 taxes for free You placed the vehicle in service during 2013. File 2008 taxes for free The vehicle is manufactured primarily for use on public streets, roads, and highways. File 2008 taxes for free The original use of the vehicle began with you. File 2008 taxes for free You acquired the vehicle for your use or to lease to others, and not for resale. File 2008 taxes for free In the case of the qualified two- or three-wheeled plug-in electric vehicle, the vehicle is acquired after 2011 and before 2014. File 2008 taxes for free You use the vehicle primarily in the United States. File 2008 taxes for free How to take the credit. File 2008 taxes for free   To take the credit, you must complete Form 8936 and attach it to your Form 1040. File 2008 taxes for free Include the credit in your total for Form 1040, line 53. File 2008 taxes for free Check box c and enter “8936” on the line next to that box. File 2008 taxes for free More information. File 2008 taxes for free   For more information on the credit, see the Form 8936 instructions. File 2008 taxes for free Residential Energy Credits You may be able to take one or both of the following credits if you made energy saving improvements to your home located in the United States in 2013. File 2008 taxes for free Nonbusiness energy property credit. File 2008 taxes for free Residential energy efficient property credit. File 2008 taxes for free If you are a member of a condominium management association for a condominium you own or a tenant-stockholder in a cooperative housing corporation, you are treated as having paid your proportionate share of any costs of the association or corporation for purposes of these credits. File 2008 taxes for free Nonbusiness energy property credit. File 2008 taxes for free   You may be able to take a credit equal to the sum of: 10% of the amount paid or incurred for qualified energy efficiency improvements installed during 2013, and Any residential energy property costs paid or incurred in 2013. File 2008 taxes for free   There is a lifetime limit of $500 for all years after 2005, of which only $200 can be for windows; $50 for any advanced main air circulating fan; $150 for any qualified natural gas, propane, or oil furnace or hot water boiler; and $300 for any item of energy efficient building property. File 2008 taxes for free    If the total of nonbusiness energy property credits you have taken in previous years (after 2005) is more than $500, you cannot take this credit in 2013. File 2008 taxes for free   Qualified energy efficiency improvements are the following improvements that are new, can be expected to remain in use at least 5 years, and meet certain requirements for energy efficiency. File 2008 taxes for free Any insulation material or system that is specifically and primarily designed to reduce heat loss or gain of a home. File 2008 taxes for free Exterior window (including skylights). File 2008 taxes for free Exterior doors. File 2008 taxes for free Any metal or asphalt roof that has appropriate pigmented coatings or cooling granules specifically and primarily designed to reduce heat gain of the home. File 2008 taxes for free   Residential energy property is any of the following. File 2008 taxes for free Certain electric heat pump water heaters; electric heat pumps; central air conditioners; natural gas, propane, or oil water heater; and stoves that use biomass fuel. File 2008 taxes for free Qualified natural gas, propane, or oil furnaces; and qualified natural gas, propane, or oil hot water boilers. File 2008 taxes for free Certain advanced main air circulating fans used in natural gas, propane, or oil furnaces. File 2008 taxes for free Residential energy efficient property credit. File 2008 taxes for free   You may be able to take a credit of 30% of your costs of qualified solar electric property, solar water heating property, fuel cell property, small wind energy property, and geothermal heat pump property. File 2008 taxes for free The credit amount for costs paid for qualified fuel cell property is limited to $500 for each one-half kilowatt of capacity of the property. File 2008 taxes for free Basis reduction. File 2008 taxes for free   You must reduce the basis of your home by the amount of any credit allowed. File 2008 taxes for free How to take the credit. File 2008 taxes for free   Complete Form 5695 and attach it to your Form 1040. File 2008 taxes for free Enter the credit on Form 1040, line 52. File 2008 taxes for free More information. File 2008 taxes for free   For more information on these credits, see the Form 5695 instructions. File 2008 taxes for free Retirement Savings Contributions Credit (Saver's Credit) You may be able to take this credit if you, or your spouse if filing jointly, made: Contributions (other than rollover contributions) to a traditional or Roth IRA, Elective deferrals to a 401(k) or 403(b) plan (including designated Roth contributions) or to a governmental 457, SEP, or SIMPLE plan, Voluntary employee contributions to a qualified retirement plan (including the federal Thrift Savings Plan), or Contributions to a 501(c)(18)(D) plan. File 2008 taxes for free However, you cannot take the credit if either of the following applies. File 2008 taxes for free The amount on Form 1040, line 38, or Form 1040A, line 22, is more than $29,500 ($44,250 if head of household; $59,000 if married filing jointly). File 2008 taxes for free The person(s) who made the qualified contribution or elective deferral (a) was born after January 1, 1996, (b) is claimed as a dependent on someone else's 2013 tax return, or (c) was a student (defined next). File 2008 taxes for free Student. File 2008 taxes for free   You were a student if during any part of 5 calendar months of 2013 you: Were enrolled as a full-time student at a school, or Took a full-time, on-farm training course given by a school or a state, county, or local government agency. File 2008 taxes for free School. File 2008 taxes for free   A school includes a technical, trade, or mechanical school. File 2008 taxes for free It does not include an on-the-job training course, correspondence school, or school offering courses only through the Internet. File 2008 taxes for free How to take the credit. File 2008 taxes for free   Figure the credit on Form 8880. File 2008 taxes for free Enter the credit on your Form 1040, line 50, or your Form 1040A, line 32, and attach Form 8880 to your return. File 2008 taxes for free More information. File 2008 taxes for free   For more information on the credit, see the Form 8880 instructions. File 2008 taxes for free Refundable Credits The credits discussed in this part of the chapter are treated as payments of tax. File 2008 taxes for free If the total of these credits, withheld federal income tax, and estimated tax payments is more than your total tax, the excess can be refunded to you. File 2008 taxes for free Credit for Tax on Undistributed Capital Gain You must include in your income any amounts that regulated investment companies (commonly called mutual funds) or real estate investment trusts (REITs) allocated to you as capital gain distributions, even if you did not actually receive them. File 2008 taxes for free If the mutual fund or REIT paid a tax on the capital gain, you are allowed a credit for the tax since it is considered paid by you. File 2008 taxes for free The mutual fund or REIT will send you Form 2439 showing your share of the undistributed capital gains and the tax paid, if any. File 2008 taxes for free How to take the credit. File 2008 taxes for free   To take the credit, attach Copy B of Form 2439 to your Form 1040. File 2008 taxes for free Include the amount from box 2 of your Form 2439 in the total for Form 1040, line 71, and check box a. File 2008 taxes for free More information. File 2008 taxes for free   See Capital Gain Distributions in chapter 8 for more information on undistributed capital gains. File 2008 taxes for free Health Coverage Tax Credit You may be able to take this credit for any month in which all the following statements were true on the first day of the month. File 2008 taxes for free You were an eligible trade adjustment assistance (TAA) recipient, alternative TAA (ATAA) recipient, reemployment TAA (RTAA) recipient, or Pension Benefit Guaranty Corporation (PBGC) pension recipient (defined later); or you were a qualified family member of one of these individuals when the individual died or you finalized a divorce with one of these individuals. File 2008 taxes for free You and/or your family members were covered by a qualified health insurance plan for which you paid the entire premiums, or your portion of the premiums, directly to your health plan or to “U. File 2008 taxes for free S. File 2008 taxes for free Treasury–HCTC. File 2008 taxes for free ” You were not enrolled in Medicare Part A, B, or C, or you were enrolled in Medicare but your family member(s) qualified for the HCTC. File 2008 taxes for free You were not enrolled in Medicaid or the Children's Health Insurance Program (CHIP). File 2008 taxes for free You were not enrolled in the Federal Employees Health Benefits program (FEHBP) or eligible to receive benefits under the U. File 2008 taxes for free S. File 2008 taxes for free military health system (TRICARE). File 2008 taxes for free You were not imprisoned under federal, state, or local authority. File 2008 taxes for free Your employer did not pay 50% or more of the cost of coverage. File 2008 taxes for free You did not receive a 65% COBRA premium reduction from your former employer or COBRA administrator. File 2008 taxes for free But, you cannot take the credit if you can be claimed as a dependent on someone else's 2013 tax return. File 2008 taxes for free If you meet all of these conditions, you may be able to take a credit of up to 72. File 2008 taxes for free 5% of the amount you paid directly to a qualified health plan for you and any qualifying family members. File 2008 taxes for free You cannot take the credit for insurance premiums on coverage that was actually paid for with a National Emergency Grant. File 2008 taxes for free The amount you paid for qualified health insurance coverage must be reduced by any Archer MSA and health savings account distributions used to pay for the coverage. File 2008 taxes for free You can take this credit on your tax return or have it paid on your behalf in advance to your insurance company. File 2008 taxes for free If the credit is paid on your behalf in advance, that amount will reduce the amount of the credit you can take on your tax return. File 2008 taxes for free TAA recipient. File 2008 taxes for free   You were an eligible TAA recipient on the first day of the month if, for any day in that month or the prior month, you: Received a trade readjustment allowance, or Would have been entitled to receive such an allowance except that you had not exhausted all rights to any unemployment insurance (except additional compensation that is funded by a state and is not reimbursed from any federal funds) to which you were entitled (or would be entitled if you applied). File 2008 taxes for free Example. File 2008 taxes for free You received a trade adjustment allowance for January 2013. File 2008 taxes for free You were an eligible TAA recipient on the first day of January and February. File 2008 taxes for free Alternative TAA recipient. File 2008 taxes for free   You were an eligible alternative TAA recipient on the first day of the month if, for that month or the prior month, you received benefits under an alternative trade adjustment assistance program for older workers established by the Department of Labor. File 2008 taxes for free Example. File 2008 taxes for free You received benefits under an alternative trade adjustment assistance program for older workers for October 2013. File 2008 taxes for free The program was established by the Department of Labor. File 2008 taxes for free You were an eligible alternative TAA recipient on the first day of October and November. File 2008 taxes for free RTAA recipient. File 2008 taxes for free   You were an eligible RTAA recipient on the first day of the month if, for that month or the prior month, you received benefits under a reemployment trade adjustment assistance program for older workers established by the Department of Labor. File 2008 taxes for free PBGC pension recipient. File 2008 taxes for free   You were an eligible PBGC pension recipient on the first day of the month, if both of the following apply. File 2008 taxes for free You were age 55 or older on the first day of the month. File 2008 taxes for free You received a benefit for that month paid by the PBGC under title IV of the Employee Retirement Income Security Act of 1974 (ERISA). File 2008 taxes for free If you received a lump-sum payment from the PBGC after August 5, 2002, you meet item (2) above for any month that you would have received a PBGC benefit if you had not received the lump-sum payment. File 2008 taxes for free How to take the credit. File 2008 taxes for free   To take the credit, complete Form 8885 and attach it to your Form 1040. File 2008 taxes for free Include your credit in the total for Form 1040, line 71, and check box c. File 2008 taxes for free   You must attach health insurance bills (or COBRA payment coupons) and proof of payment for any amounts you include on Form 8885, line 2. File 2008 taxes for free For details, see Publication 502 or Form 8885. File 2008 taxes for free More information. File 2008 taxes for free   For definitions and special rules, including those relating to qualified health insurance plans, qualifying family members, the effect of certain life events, and employer-sponsored health insurance plans, see Publication 502 and the Form 8885 instructions. File 2008 taxes for free Credit for Excess Social Security Tax or Railroad Retirement Tax Withheld Most employers must withhold social security tax from your wages. File 2008 taxes for free If you work for a railroad employer, that employer must withhold tier 1 railroad retirement (RRTA) tax and tier 2 RRTA tax. File 2008 taxes for free If you worked for two or more employers in 2013, you may have had too much social security tax withheld from your pay. File 2008 taxes for free If one or more of those employers was a railroad employer, too much tier 1 RRTA tax may also have been withheld at the 6. File 2008 taxes for free 2% rate. File 2008 taxes for free You can claim the excess social security or tier 1 RRTA tax as a credit against your income tax when you file your return. File 2008 taxes for free For the tier 1 RRTA tax, only use the portion of the tier 1 RRTA tax that was taxed at the 6. File 2008 taxes for free 2% rate when figuring if excess tier 1 RRTA tax was withheld; do not include any portion of the tier 1 RRTA tax that was withheld at the Medicare tax rate (1. File 2008 taxes for free 45%) or the Additional Medicare Tax rate (. File 2008 taxes for free 9%). File 2008 taxes for free The following table shows the maximum amount of wages subject to tax and the maximum amount of tax that should have been withheld for 2013. File 2008 taxes for free Type of tax Maximum  wages subject to tax Maximum tax that should have been withheld Social security or RRTA tier 1 $113,700 $7,049. File 2008 taxes for free 40 RRTA tier 2 $84,300 $3,709. File 2008 taxes for free 20 All wages are subject to Medicare tax withholding. File 2008 taxes for free   Use Form 843, Claim for Refund and Request for Abatement, to claim a refund of excess tier 2 RRTA tax. File 2008 taxes for free Be sure to attach a copy of all of your W-2 forms. File 2008 taxes for free Use Worksheet 3-3 in Publication 505, Tax Withholding and Estimated Tax, to help you figure the excess amount. File 2008 taxes for free Employer's error. File 2008 taxes for free   If any one employer withheld too much social security or tier 1 RRTA tax, you cannot take the excess as a credit against your income tax. File 2008 taxes for free The employer should adjust the tax for you. File 2008 taxes for free If the employer does not adjust the overcollection, you can file a claim for refund using Form 843. File 2008 taxes for free Joint return. File 2008 taxes for free   If you are filing a joint return, you cannot add the social security or tier 1 RRTA tax withheld from your spouse's wages to the amount withheld from your wages. File 2008 taxes for free Figure the withholding separately for you and your spouse to determine if either of you has excess withholding. File 2008 taxes for free How to figure the credit if you did not work for a railroad. File 2008 taxes for free   If you did not work for a railroad during 2013, figure the credit as follows: 1. File 2008 taxes for free Add all social security tax withheld (but not more than $7,049. File 2008 taxes for free 40 for each employer). File 2008 taxes for free Enter the total here   2. File 2008 taxes for free Enter any uncollected social security tax on tips or group-term life insurance included in the total on Form 1040, line 60, identified by “UT”   3. File 2008 taxes for free Add lines 1 and 2. File 2008 taxes for free If $7,049. File 2008 taxes for free 40 or less, stop here. File 2008 taxes for free You cannot take  the credit   4. File 2008 taxes for free Social security tax limit 7,049. File 2008 taxes for free 40 5. File 2008 taxes for free Credit. File 2008 taxes for free Subtract line 4 from line 3. File 2008 taxes for free Enter the result here and on Form 1040, line 69 (or Form 1040A, line 41) $ Example. File 2008 taxes for free You are married and file a joint return with your spouse who had no gross income in 2013. File 2008 taxes for free During 2013, you worked for the Brown Technology Company and earned $60,000 in wages. File 2008 taxes for free Social security tax of $3,720 was withheld. File 2008 taxes for free You also worked for another employer in 2013 and earned $55,000 in wages. File 2008 taxes for free $3,410 of social security tax was withheld from these wages. File 2008 taxes for free Because you worked for more than one employer and your total wages were more than $113,700, you can take a credit of $80. File 2008 taxes for free 60 for the excess social security tax withheld. File 2008 taxes for free 1. File 2008 taxes for free Add all social security tax withheld (but not more than $7,049. File 2008 taxes for free 40 for each employer). File 2008 taxes for free Enter the total here $7,130. File 2008 taxes for free 00 2. File 2008 taxes for free Enter any uncollected social security tax on tips or group-term life insurance included in the total on Form 1040, line 60, identified by “UT” -0- 3. File 2008 taxes for free Add lines 1 and 2. File 2008 taxes for free If $7,049. File 2008 taxes for free 40 or less, stop here. File 2008 taxes for free You cannot take the credit 7,130. File 2008 taxes for free 00 4. File 2008 taxes for free Social security tax limit 7,049. File 2008 taxes for free 40 5. File 2008 taxes for free Credit. File 2008 taxes for free Subtract line 4 from line 3. File 2008 taxes for free Enter the result here and on Form 1040, line 69 (or Form 1040A, line 41) $80. File 2008 taxes for free 60 How to figure the credit if you worked for a railroad. File 2008 taxes for free   If you were a railroad employee at any time during 2013, figure the credit as follows: 1. File 2008 taxes for free Add all social security and tier 1 RRTA tax withheld at the 6. File 2008 taxes for free 2% rate (but not more than $7,049. File 2008 taxes for free 40 for each employer). File 2008 taxes for free Enter the total here   2. File 2008 taxes for free Enter any uncollected social security and tier 1 RRTA tax on tips or group-term life insurance included in the total on Form 1040, line 60, identified by “UT”   3. File 2008 taxes for free Add lines 1 and 2. File 2008 taxes for free If $7,049. File 2008 taxes for free 40 or less, stop here. File 2008 taxes for free You cannot take  the credit   4. File 2008 taxes for free Social security and tier 1 RRTA  tax limit 7,049. File 2008 taxes for free 40 5. File 2008 taxes for free Credit. File 2008 taxes for free Subtract line 4 from line 3. File 2008 taxes for free Enter the result here and on Form 1040, line 69 (or Form 1040A, line 41) $ How to take the credit. File 2008 taxes for free   Enter the credit on Form 1040, line 69, or include it in the total for Form 1040A, line 41. File 2008 taxes for free More information. File 2008 taxes for free   For more information on the credit, see Publication 505. File 2008 taxes for free Prev  Up  Next   Home   More Online Publications