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

TurboTax Federal Free Edition - File Taxes Online

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

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


© 2012 - 2018 All rights reserved.

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

Filing Taxes For Students

File 1040xI Did Not File 2011 TaxesHow To File Unemployment TaxesAmend 2010 TaxHow Do You Amend Your Taxes Online10ezE File Taxes FreeTurbotax Military FreeForm 1040ez 20101040 Short FormFree Taxes Preparation2010 Amended Tax ReturnFree State Efile1040x Amended Tax Return FormHow To File State And Federal Taxes For FreeFederal Tax 2012 Form 1040Filing 1040x InstructionsCan I File 2011 Taxes In 2013Tax 1040nrWww Irs1040ez ComIncome Tax For StudentsIrs Form 1040nr 2012Where Can I Get A 1040x Tax FormFree Federal TaxesHow To File An Amended Tax Return For 2013Free 1040ez OnlineIrs E File ExtensionFile Taxes 2014Efile 1040x2011 Taxes FormsEz 40 Tax FormFilelateDo Unemployed People File TaxesFile Free 2012 Tax ReturnFederal Income Tax AmendmentFile Taxes For 2010State Income Tax HelpFree Tax OnlineAmend 2012 Tax Return FreeFree Online Tax Preparation

Filing Taxes For Students

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

Environmental Protection Agency (EPA)

The Environmental Protection Agency, with a mission to protect people and the environment from significant health risks, sponsors and conducts research and develops and enforces environmental regulations.

Contact the Agency or Department

Website: Environmental Protection Agency (EPA)

Contact In-Person: Regional Offices

Address: Ariel Rios Building
1200 Pennsylvania Ave NW

Washington, DC 20460

Phone Number: (202) 272-0167

TTY: (202) 272-0165

The Filing Taxes For Students

Filing taxes for students Index Symbols 401(k) Plan Elective Deferrals, Elective Deferrals (401(k) Plans) Safe harbor, Safe harbor 401(k) plan. Filing taxes for students A Annual additions, Annual additions. Filing taxes for students Annual benefits, Annual benefits. Filing taxes for students Assistance (see Tax help) Automatic Enrollment, Automatic Enrollment B Business, definition, Business. Filing taxes for students C Common-law employee, Common-law employee. Filing taxes for students Compensation, Compensation. Filing taxes for students Contribution Defined, Contribution. Filing taxes for students Limits Qualified plans, Limits on Contributions and Benefits SEP-IRAs, Contribution Limits SIMPLE IRA plan, Contribution Limits D Deduction Defined, SIMPLE plans. Filing taxes for students , Deduction. Filing taxes for students Deduction worksheet for self-employed, Figuring your deduction. Filing taxes for students Defined benefit plan Deduction limits, Defined benefit plans. Filing taxes for students Limits on contributions, Defined benefit plan. Filing taxes for students Defined contribution plan Automatic Enrollment, Automatic Enrollment Deduction limits, Defined contribution plans. Filing taxes for students Eligible automatic contribution arrangement, Eligible automatic contribution arrangement. Filing taxes for students Forfeitures, Forfeiture. Filing taxes for students Limits on contributions, Defined contribution plan. Filing taxes for students Money purchase pension plan, Money purchase pension plan. Filing taxes for students Profit-sharing plan, Profit-sharing plan. Filing taxes for students Qualified automatic contribution arrangement, Qualified automatic contribution arrangement. Filing taxes for students Definitions you need to know, Definitions You Need To Know Disqualified person, Prohibited Transactions Distributions (withdrawals), Distributions (Withdrawals) E EACA, Eligible automatic contribution arrangement. Filing taxes for students Earned income, Earned income. Filing taxes for students Eligible automatic contribution arrangement, Eligible automatic contribution arrangement. Filing taxes for students Employees Eligible, Eligible employee. Filing taxes for students Excludable, Excludable employees. Filing taxes for students Highly compensated, Highly compensated employee. Filing taxes for students Leased, Leased employee. Filing taxes for students Employer Defined, Employer. Filing taxes for students Excess Deferrals, Treatment of Excess Deferrals Excise tax, Excise Tax on Reversion of Plan Assets Nondeductible (excess) contributions, Excise Tax for Nondeductible (Excess) Contributions Reduced benefit accrual, Notification of Significant Benefit Accrual Reduction SEP excess contributions, Excise tax. Filing taxes for students Excludable employees, Excludable employees. Filing taxes for students F Form 1040, Where To Deduct Contributions, Reporting the tax. Filing taxes for students 1099-R, Reporting corrective distributions on Form 1099-R. Filing taxes for students 5304–SIMPLE, How To Set Up a SIMPLE IRA Plan 5305–S, Setting up a SIMPLE IRA. Filing taxes for students 5305–SA, Setting up a SIMPLE IRA. Filing taxes for students 5305–SEP, Formal written agreement. Filing taxes for students 5305–SIMPLE, How To Set Up a SIMPLE IRA Plan 5310, Form 5310. Filing taxes for students 5329, Reporting the tax. Filing taxes for students 5330, Reporting the tax. Filing taxes for students , Tax on excess contributions of highly compensated employees. Filing taxes for students , Excise Tax on Reversion of Plan Assets, Payment of the 15% tax. Filing taxes for students 5500, Form 5500. Filing taxes for students , Electronic filing of Forms 5500 and 5500-SF. Filing taxes for students 5500-EZ, Form 5500-EZ. Filing taxes for students Form W-2, Reporting on Form W-2. Filing taxes for students Schedule K (Form 1065), Where To Deduct Contributions Free tax services, Free help with your return. Filing taxes for students H Highly compensated employee, Highly compensated employee. Filing taxes for students K Keogh plans (see Qualified plans) L Leased employee, Leased employee. Filing taxes for students N Net earnings from self-employment, Net earnings from self-employment. Filing taxes for students Notification requirements, Notification Requirement P Participant, definition, Participant. Filing taxes for students Participation, Participation. Filing taxes for students Partner, definition, Partner. Filing taxes for students Publications (see Tax help) Q QACA, Qualified automatic contribution arrangement. Filing taxes for students Qualified automatic contribution arrangement, Qualified automatic contribution arrangement. Filing taxes for students Qualified Plan, definition, Qualified plan. Filing taxes for students Qualified plans, Limits on Contributions and Benefits Assignment of benefits, Benefits must not be assigned or alienated. Filing taxes for students Benefits starting date, Benefit payment must begin when required. Filing taxes for students Contributions, Contributions, Employer Contributions, Limits on Contributions and Benefits, When Contributions Are Considered Made, Where To Deduct Contributions Deduction limits, Deduction Limits, Defined contribution plans. Filing taxes for students , Defined benefit plans. Filing taxes for students , Deduction Limit for Self-Employed Individuals, Carryover of Excess Contributions, Excise Tax for Nondeductible (Excess) Contributions Deduction Worksheet for Self-Employed, Table and Worksheets for the Self-Employed Deductions, Employer Deduction Deferrals, Treatment of contributions. Filing taxes for students , Reporting on Form W-2. Filing taxes for students Defined benefit plan, Defined Benefit Plan Defined contribution plan, Defined Contribution Plan Distributions, Distributions Minimum, Required Distributions Required beginning date, Required beginning date. Filing taxes for students Rollover, Rollover. Filing taxes for students Tax on excess benefits, Tax on Excess Benefits Tax on premature, Tax on Early Distributions Tax treatment, Tax Treatment of Distributions Elective Deferrals, Elective Deferrals (401(k) Plans) Limits, Limit on Elective Deferrals Employee nondeductible contributions, Employee Contributions Excess Deferrals, Treatment of Excess Deferrals Investing plan assets, Investing Plan Assets Kinds of plans, Kinds of Plans Leased employees, Leased employee. Filing taxes for students Minimum requirements Coverage, Minimum coverage requirement must be met. Filing taxes for students Funding, Minimum Funding Requirement Vesting, Minimum vesting standard must be met. Filing taxes for students Prohibited transactions, Prohibited Transactions Qualification rules, Qualification Rules Rate Table for Self-Employed, Table and Worksheets for the Self-Employed Rate Worksheet for Self-Employed, Table and Worksheets for the Self-Employed Reporting requirements, Reporting Requirements Setting up, Setting Up a Qualified Plan Qualified Plans Survivor benefits, Survivor benefits. Filing taxes for students Qualified Roth Contribution Program, Qualified Roth Contribution Program R Rate Table for Self-Employed, Rate table for self-employed. Filing taxes for students Rate Worksheet for Self-Employed, Rate worksheet for self-employed. Filing taxes for students Required distributions, Required Distributions Rollovers, Rollover. Filing taxes for students S Safe harbor 401(k) plan, Safe harbor 401(k) plan. Filing taxes for students Salary reduction arrangement, Deferral percentage. Filing taxes for students , Limit on Elective Deferrals Salary Reduction Simplified Employee Pension(SARSEP), Salary Reduction Simplified Employee Pensions (SARSEPs) SARSEP ADP test, SARSEP ADP test. Filing taxes for students Section 402(f) notice, Section 402(f) Notice. Filing taxes for students Self-employed individual, Self-employed individual. Filing taxes for students SEP plans Deduction Worksheet for Self-Employed, Table and Worksheets for the Self-Employed Rate Table for Self-Employed, Table and Worksheets for the Self-Employed Rate Worksheet for Self-Employed, Table and Worksheets for the Self-Employed Reporting and Disclosure, Reporting and Disclosure Requirements SEP-IRAs Contributions, Contributions for yourself. Filing taxes for students Deductible contributions, Deducting Contributions, Excise tax. Filing taxes for students Carryover of excess contributions, Carryover of Excess SEP Contributions Deduction limits, Deduction Limit for Contributions for Participants Limits for self-employed, Deduction Limit for Self-Employed Individuals When to deduct, When To Deduct Contributions Where to deduct, Where To Deduct Contributions Distributions (withdrawals), Distributions (Withdrawals) Eligible employee, Eligible employee. Filing taxes for students Excludable employees, Excludable employees. Filing taxes for students SIMPLE IRA plan Compensation, Compensation. Filing taxes for students Contributions, Contribution Limits Deductions, Nonelective contributions. Filing taxes for students Distributions(withdrawals), Distributions (Withdrawals) Employee election period, Election period. Filing taxes for students Employer matching contributions, Employer matching contributions. Filing taxes for students Excludable employees, Excludable employees. Filing taxes for students Notification requirements, Notification Requirement When to deduct contributions, When To Deduct Contributions SIMPLE plans, Who Can Set Up a SIMPLE IRA Plan?, Reporting on Form W-2. Filing taxes for students SIMPLE 401(k), SIMPLE 401(k) Plan SIMPLE IRA plan, SIMPLE IRA Plan Simplified employee pension (SEP), Salary Reduction Simplified Employee Pensions (SARSEPs) Salary reduction arrangement Compensation of self-employed individuals, Compensation of self-employed individuals. Filing taxes for students Employee compensation, Employee compensation. Filing taxes for students Who can have a SARSEP, Who can have a SARSEP? SEP-IRA contributions, How Much Can I Contribute? Setting up a SEP, Setting Up a SEP Sixty-day employee election period, Election period. Filing taxes for students Sole proprietor, definition, Sole proprietor. Filing taxes for students T Tax help, How To Get Tax Help U User fee, User fee. Filing taxes for students W Worksheets Deduction Worksheet for Self-Employed, Table and Worksheets for the Self-Employed Rate Worksheet for Self-Employed, Table and Worksheets for the Self-Employed Prev  Up     Home   More Online Publications