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Free file federal and state taxes online Publication 54 - Additional Material Questions and AnswersThis section answers tax- related questions commonly asked by taxpayers living abroad. Free file federal and state taxes online 1. Free file federal and state taxes online Filing Requirements—Where, When, and How . Free file federal and state taxes online 1) When are U. Free file federal and state taxes online S. Free file federal and state taxes online income tax returns due? . Free file federal and state taxes online 2) I am going abroad this year and expect to qualify for the foreign earned income exclusion. Free file federal and state taxes online How can I secure an extension of time to file my return, when should I file my return, and what forms are required? . Free file federal and state taxes online 3) My entire income qualifies for the foreign earned income exclusion. Free file federal and state taxes online Must I file a tax return? . Free file federal and state taxes online 4) I was sent abroad by my company in November of last year. Free file federal and state taxes online I plan to secure an extension of time on Form 2350 to file my tax return for last year because I expect to qualify for the foreign earned income exclusion under the physical presence test. Free file federal and state taxes online However, if my company recalls me to the United States before the end of the qualifying period and I find I will not qualify for the exclusion, how and when should I file my return? . Free file federal and state taxes online 5) I am a U. Free file federal and state taxes online S. Free file federal and state taxes online citizen and have no taxable income from the United States, but I have substantial income from a foreign source. Free file federal and state taxes online Am I required to file a U. Free file federal and state taxes online S. Free file federal and state taxes online income tax return? . Free file federal and state taxes online 6) I am a U. Free file federal and state taxes online S. Free file federal and state taxes online citizen who has retired, and I expect to remain in a foreign country. Free file federal and state taxes online Do I have any further U. Free file federal and state taxes online S. Free file federal and state taxes online tax obligations? . Free file federal and state taxes online 7) I have been a bona fide resident of a foreign country for over 5 years. Free file federal and state taxes online Is it necessary for me to pay estimated tax? . Free file federal and state taxes online 8) Will a check payable in foreign currency be acceptable in payment of my U. Free file federal and state taxes online S. Free file federal and state taxes online tax? . Free file federal and state taxes online 9) I have met the test for physical presence in a foreign country and am filing returns for 2 years. Free file federal and state taxes online Must I file a separate Form 2555 (or Form 2555-EZ) with each return? . Free file federal and state taxes online 10) Does a Form 2555 (or 2555-EZ) with a Schedule C or Form W-2 attached constitute a return? . Free file federal and state taxes online 11) On Form 2350, Application for Extension of Time To File U. Free file federal and state taxes online S. Free file federal and state taxes online Income Tax Return, I stated that I would qualify for the foreign earned income exclusion under the physical presence test. Free file federal and state taxes online If I qualify under the bona fide residence test, can I file my return on that basis? . Free file federal and state taxes online 12) I am a U. Free file federal and state taxes online S. Free file federal and state taxes online citizen who worked in the United States for 6 months last year. Free file federal and state taxes online I accepted employment overseas in July of last year and expect to qualify for the foreign earned income exclusion. Free file federal and state taxes online Should I file a return and pay tax on the income earned in the United States during the first 6 months and then, when I qualify, file another return covering the last 6 months of the year? . Free file federal and state taxes online 13) I am a U. Free file federal and state taxes online S. Free file federal and state taxes online citizen. Free file federal and state taxes online I have lived abroad for a number of years and recently realized that I should have been filing U. Free file federal and state taxes online S. Free file federal and state taxes online income tax returns. Free file federal and state taxes online How do I correct this oversight in not having filed returns for these years? . Free file federal and state taxes online 14) In 2008, I qualified to exclude my foreign earned income, but I did not claim this exclusion on the return I filed in 2009. Free file federal and state taxes online I paid all outstanding taxes with the return. Free file federal and state taxes online Can I file a claim for refund now? . Free file federal and state taxes online 1) When are U. Free file federal and state taxes online S. Free file federal and state taxes online income tax returns due? Generally, for calendar year taxpayers, U. Free file federal and state taxes online S. Free file federal and state taxes online income tax returns are due on April 15. Free file federal and state taxes online If you are a U. Free file federal and state taxes online S. Free file federal and state taxes online citizen or resident and both your tax home and your abode are outside the United States and Puerto Rico on the regular due date, an automatic extension is granted to June 15 for filing the return. Free file federal and state taxes online Interest will be charged on any tax due, as shown on the return, from April 15. Free file federal and state taxes online a) You should file Form 2350 by the due date of your return to request an extension of time to file. Free file federal and state taxes online Form 2350 is a special form for those U. Free file federal and state taxes online S. Free file federal and state taxes online citizens or residents abroad who expect to qualify for the foreign earned income exclusion or the housing exclusion or deduction under either the bona fide residence test or physical presence test and would like to have an extension of time to delay filing until after they have qualified. Free file federal and state taxes online b) If the extension is granted, you should file your return after you qualify, but by the approved extension date. Free file federal and state taxes online c) You must file your Form 1040 with Form 2555 (or Form 2555-EZ). Free file federal and state taxes online Generally, yes. Free file federal and state taxes online Every U. Free file federal and state taxes online S. Free file federal and state taxes online citizen or resident who receives income must file a U. Free file federal and state taxes online S. Free file federal and state taxes online income tax return unless total income without regard to the foreign earned income exclusion is below an amount based on filing status. Free file federal and state taxes online The income levels for filing purposes are discussed under Filing Requirements in chapter 1. Free file federal and state taxes online If your regular filing date has passed, you should file a return, Form 1040, as soon as possible for last year. Free file federal and state taxes online Include a statement with this return noting that you have returned to the United States and will not qualify for the foreign earned income exclusion. Free file federal and state taxes online You must report your worldwide income on the return. Free file federal and state taxes online If you paid a foreign tax on the income earned abroad, you may be able to either deduct this tax as an itemized deduction or claim it as a credit against your U. Free file federal and state taxes online S. Free file federal and state taxes online income tax. Free file federal and state taxes online However, if you pay the tax due after the regular due date, interest will be charged from the regular due date until the date the tax is paid. Free file federal and state taxes online Yes. Free file federal and state taxes online All U. Free file federal and state taxes online S. Free file federal and state taxes online citizens and resident aliens are subject to U. Free file federal and state taxes online S. Free file federal and state taxes online tax on their worldwide income. Free file federal and state taxes online If you paid taxes to a foreign government on income from sources outside the United States, you may be able to claim a foreign tax credit against your U. Free file federal and state taxes online S. Free file federal and state taxes online income tax liability for the foreign taxes paid. Free file federal and state taxes online Form 1116 is used to figure the allowable credit. Free file federal and state taxes online Your U. Free file federal and state taxes online S. Free file federal and state taxes online tax obligation on your income is the same as that of a retired person living in the United States. Free file federal and state taxes online (See the discussion on filing requirements in chapter 1 of this publication. Free file federal and state taxes online ) U. Free file federal and state taxes online S. Free file federal and state taxes online taxpayers overseas have the same requirements for paying estimated tax as those in the United States. Free file federal and state taxes online See the discussion under Estimated Tax in chapter 1. Free file federal and state taxes online Overseas taxpayers should not include in their estimated income any income they receive that is, or will be, exempt from U. Free file federal and state taxes online S. Free file federal and state taxes online taxation. Free file federal and state taxes online Overseas taxpayers can deduct their estimated housing deduction in figuring their estimated tax. Free file federal and state taxes online The first installment of estimated tax is due on April 15 of the year for which the income is earned. Free file federal and state taxes online Generally, only U. Free file federal and state taxes online S. Free file federal and state taxes online currency is acceptable for payment of income tax. Free file federal and state taxes online However, if you are a Fulbright grantee, see Fulbright Grant in chapter 1. Free file federal and state taxes online Yes. Free file federal and state taxes online A Form 2555 (or Form 2555-EZ) must be filed with each Form 1040 tax return on which the benefits of income earned abroad are claimed. Free file federal and state taxes online No. Free file federal and state taxes online The Form 2555 (or 2555-EZ), Schedule C, and Form W-2 are merely attachments and do not relieve you of the requirement to file a Form 1040 to show the sources of income reported and the exclusions or deductions claimed. Free file federal and state taxes online Yes. Free file federal and state taxes online You can claim the foreign earned income exclusion and the foreign housing exclusion or deduction under either test as long as you meet the requirements. Free file federal and state taxes online You are not bound by the test indicated in the application for extension of time. Free file federal and state taxes online You must be sure, however, that you file the Form 1040 by the date approved on Form 2350, since a return filed after that date may be subject to a failure to file penalty. Free file federal and state taxes online If you will not qualify under the bona fide residence test until a date later than the extension granted under the physical presence rule, apply for a new extension to a date 30 days beyond the date you expect to qualify as a bona fide resident. Free file federal and state taxes online No. Free file federal and state taxes online You have the choice of one of the following two methods of filing your return: a) You can file your return when due under the regular filing rules, report all your income without excluding your foreign earned income, and pay the tax due. Free file federal and state taxes online After you have qualified for the exclusion, you can file an amended return, Form 1040X, accompanied by Form 2555 (or 2555-EZ), for a refund of any excess tax paid. Free file federal and state taxes online b) You can postpone the filing of your tax return by applying on Form 2350 for an extension of time to file to a date 30 days beyond the date you expect to qualify under either the bona fide residence test or the physical presence test, then file your return reflecting the exclusion of foreign earned income. Free file federal and state taxes online This allows you to file only once and saves you from paying the tax and waiting for a refund. Free file federal and state taxes online However, interest is charged on any tax due on the postponed tax return, but interest is not paid on refunds paid within 45 days after the return is filed. Free file federal and state taxes online If you have moving expenses that are for services performed in two years, you can be granted an extension until after the end of the second year. Free file federal and state taxes online File the late returns as soon as possible, stating your reason for filing late. Free file federal and state taxes online For advice on filing the returns, you should contact an  Internal Revenue Service representative in one of the four overseas offices listed in chapter 7. Free file federal and state taxes online It is too late to claim this refund since a claim for refund must be filed within 3 years from the date the return was filed or 2 years from the date the tax was paid, whichever is later. Free file federal and state taxes online A return filed before the due date is considered filed on the due date. Free file federal and state taxes online . Free file federal and state taxes online 2) I am going abroad this year and expect to qualify for the foreign earned income exclusion. Free file federal and state taxes online How can I secure an extension of time to file my return, when should I file my return, and what forms are required? a) You should file Form 2350 by the due date of your return to request an extension of time to file. Free file federal and state taxes online Form 2350 is a special form for those U. Free file federal and state taxes online S. Free file federal and state taxes online citizens or residents abroad who expect to qualify for the foreign earned income exclusion or the housing exclusion or deduction under either the bona fide residence test or physical presence test and would like to have an extension of time to delay filing until after they have qualified. Free file federal and state taxes online b) If the extension is granted, you should file your return after you qualify, but by the approved extension date. Free file federal and state taxes online c) You must file your Form 1040 with Form 2555 (or Form 2555-EZ). Free file federal and state taxes online Generally, yes. Free file federal and state taxes online Every U. Free file federal and state taxes online S. Free file federal and state taxes online citizen or resident who receives income must file a U. Free file federal and state taxes online S. Free file federal and state taxes online income tax return unless total income without regard to the foreign earned income exclusion is below an amount based on filing status. Free file federal and state taxes online The income levels for filing purposes are discussed under Filing Requirements in chapter 1. Free file federal and state taxes online If your regular filing date has passed, you should file a return, Form 1040, as soon as possible for last year. Free file federal and state taxes online Include a statement with this return noting that you have returned to the United States and will not qualify for the foreign earned income exclusion. Free file federal and state taxes online You must report your worldwide income on the return. Free file federal and state taxes online If you paid a foreign tax on the income earned abroad, you may be able to either deduct this tax as an itemized deduction or claim it as a credit against your U. Free file federal and state taxes online S. Free file federal and state taxes online income tax. Free file federal and state taxes online However, if you pay the tax due after the regular due date, interest will be charged from the regular due date until the date the tax is paid. Free file federal and state taxes online Yes. Free file federal and state taxes online All U. Free file federal and state taxes online S. Free file federal and state taxes online citizens and resident aliens are subject to U. Free file federal and state taxes online S. Free file federal and state taxes online tax on their worldwide income. Free file federal and state taxes online If you paid taxes to a foreign government on income from sources outside the United States, you may be able to claim a foreign tax credit against your U. Free file federal and state taxes online S. Free file federal and state taxes online income tax liability for the foreign taxes paid. Free file federal and state taxes online Form 1116 is used to figure the allowable credit. Free file federal and state taxes online Your U. Free file federal and state taxes online S. Free file federal and state taxes online tax obligation on your income is the same as that of a retired person living in the United States. Free file federal and state taxes online (See the discussion on filing requirements in chapter 1 of this publication. Free file federal and state taxes online ) U. Free file federal and state taxes online S. Free file federal and state taxes online taxpayers overseas have the same requirements for paying estimated tax as those in the United States. Free file federal and state taxes online See the discussion under Estimated Tax in chapter 1. Free file federal and state taxes online Overseas taxpayers should not include in their estimated income any income they receive that is, or will be, exempt from U. Free file federal and state taxes online S. Free file federal and state taxes online taxation. Free file federal and state taxes online Overseas taxpayers can deduct their estimated housing deduction in figuring their estimated tax. Free file federal and state taxes online The first installment of estimated tax is due on April 15 of the year for which the income is earned. Free file federal and state taxes online Generally, only U. Free file federal and state taxes online S. Free file federal and state taxes online currency is acceptable for payment of income tax. Free file federal and state taxes online However, if you are a Fulbright grantee, see Fulbright Grant in chapter 1. Free file federal and state taxes online Yes. Free file federal and state taxes online A Form 2555 (or Form 2555-EZ) must be filed with each Form 1040 tax return on which the benefits of income earned abroad are claimed. Free file federal and state taxes online No. Free file federal and state taxes online The Form 2555 (or 2555-EZ), Schedule C, and Form W-2 are merely attachments and do not relieve you of the requirement to file a Form 1040 to show the sources of income reported and the exclusions or deductions claimed. Free file federal and state taxes online Yes. Free file federal and state taxes online You can claim the foreign earned income exclusion and the foreign housing exclusion or deduction under either test as long as you meet the requirements. Free file federal and state taxes online You are not bound by the test indicated in the application for extension of time. Free file federal and state taxes online You must be sure, however, that you file the Form 1040 by the date approved on Form 2350, since a return filed after that date may be subject to a failure to file penalty. Free file federal and state taxes online If you will not qualify under the bona fide residence test until a date later than the extension granted under the physical presence rule, apply for a new extension to a date 30 days beyond the date you expect to qualify as a bona fide resident. Free file federal and state taxes online No. Free file federal and state taxes online You have the choice of one of the following two methods of filing your return: a) You can file your return when due under the regular filing rules, report all your income without excluding your foreign earned income, and pay the tax due. Free file federal and state taxes online After you have qualified for the exclusion, you can file an amended return, Form 1040X, accompanied by Form 2555 (or 2555-EZ), for a refund of any excess tax paid. Free file federal and state taxes online b) You can postpone the filing of your tax return by applying on Form 2350 for an extension of time to file to a date 30 days beyond the date you expect to qualify under either the bona fide residence test or the physical presence test, then file your return reflecting the exclusion of foreign earned income. Free file federal and state taxes online This allows you to file only once and saves you from paying the tax and waiting for a refund. Free file federal and state taxes online However, interest is charged on any tax due on the postponed tax return, but interest is not paid on refunds paid within 45 days after the return is filed. Free file federal and state taxes online If you have moving expenses that are for services performed in two years, you can be granted an extension until after the end of the second year. Free file federal and state taxes online File the late returns as soon as possible, stating your reason for filing late. Free file federal and state taxes online For advice on filing the returns, you should contact an  Internal Revenue Service representative in one of the four overseas offices listed in chapter 7. Free file federal and state taxes online It is too late to claim this refund since a claim for refund must be filed within 3 years from the date the return was filed or 2 years from the date the tax was paid, whichever is later. Free file federal and state taxes online A return filed before the due date is considered filed on the due date. Free file federal and state taxes online . Free file federal and state taxes online 3) My entire income qualifies for the foreign earned income exclusion. Free file federal and state taxes online Must I file a tax return? Generally, yes. Free file federal and state taxes online Every U. Free file federal and state taxes online S. Free file federal and state taxes online citizen or resident who receives income must file a U. Free file federal and state taxes online S. Free file federal and state taxes online income tax return unless total income without regard to the foreign earned income exclusion is below an amount based on filing status. Free file federal and state taxes online The income levels for filing purposes are discussed under Filing Requirements in chapter 1. Free file federal and state taxes online If your regular filing date has passed, you should file a return, Form 1040, as soon as possible for last year. Free file federal and state taxes online Include a statement with this return noting that you have returned to the United States and will not qualify for the foreign earned income exclusion. Free file federal and state taxes online You must report your worldwide income on the return. Free file federal and state taxes online If you paid a foreign tax on the income earned abroad, you may be able to either deduct this tax as an itemized deduction or claim it as a credit against your U. Free file federal and state taxes online S. Free file federal and state taxes online income tax. Free file federal and state taxes online However, if you pay the tax due after the regular due date, interest will be charged from the regular due date until the date the tax is paid. Free file federal and state taxes online Yes. Free file federal and state taxes online All U. Free file federal and state taxes online S. Free file federal and state taxes online citizens and resident aliens are subject to U. Free file federal and state taxes online S. Free file federal and state taxes online tax on their worldwide income. Free file federal and state taxes online If you paid taxes to a foreign government on income from sources outside the United States, you may be able to claim a foreign tax credit against your U. Free file federal and state taxes online S. Free file federal and state taxes online income tax liability for the foreign taxes paid. Free file federal and state taxes online Form 1116 is used to figure the allowable credit. Free file federal and state taxes online Your U. Free file federal and state taxes online S. Free file federal and state taxes online tax obligation on your income is the same as that of a retired person living in the United States. Free file federal and state taxes online (See the discussion on filing requirements in chapter 1 of this publication. Free file federal and state taxes online ) U. Free file federal and state taxes online S. Free file federal and state taxes online taxpayers overseas have the same requirements for paying estimated tax as those in the United States. Free file federal and state taxes online See the discussion under Estimated Tax in chapter 1. Free file federal and state taxes online Overseas taxpayers should not include in their estimated income any income they receive that is, or will be, exempt from U. Free file federal and state taxes online S. Free file federal and state taxes online taxation. Free file federal and state taxes online Overseas taxpayers can deduct their estimated housing deduction in figuring their estimated tax. Free file federal and state taxes online The first installment of estimated tax is due on April 15 of the year for which the income is earned. Free file federal and state taxes online Generally, only U. Free file federal and state taxes online S. Free file federal and state taxes online currency is acceptable for payment of income tax. Free file federal and state taxes online However, if you are a Fulbright grantee, see Fulbright Grant in chapter 1. Free file federal and state taxes online Yes. Free file federal and state taxes online A Form 2555 (or Form 2555-EZ) must be filed with each Form 1040 tax return on which the benefits of income earned abroad are claimed. Free file federal and state taxes online No. Free file federal and state taxes online The Form 2555 (or 2555-EZ), Schedule C, and Form W-2 are merely attachments and do not relieve you of the requirement to file a Form 1040 to show the sources of income reported and the exclusions or deductions claimed. Free file federal and state taxes online Yes. Free file federal and state taxes online You can claim the foreign earned income exclusion and the foreign housing exclusion or deduction under either test as long as you meet the requirements. Free file federal and state taxes online You are not bound by the test indicated in the application for extension of time. Free file federal and state taxes online You must be sure, however, that you file the Form 1040 by the date approved on Form 2350, since a return filed after that date may be subject to a failure to file penalty. Free file federal and state taxes online If you will not qualify under the bona fide residence test until a date later than the extension granted under the physical presence rule, apply for a new extension to a date 30 days beyond the date you expect to qualify as a bona fide resident. Free file federal and state taxes online No. Free file federal and state taxes online You have the choice of one of the following two methods of filing your return: a) You can file your return when due under the regular filing rules, report all your income without excluding your foreign earned income, and pay the tax due. Free file federal and state taxes online After you have qualified for the exclusion, you can file an amended return, Form 1040X, accompanied by Form 2555 (or 2555-EZ), for a refund of any excess tax paid. Free file federal and state taxes online b) You can postpone the filing of your tax return by applying on Form 2350 for an extension of time to file to a date 30 days beyond the date you expect to qualify under either the bona fide residence test or the physical presence test, then file your return reflecting the exclusion of foreign earned income. Free file federal and state taxes online This allows you to file only once and saves you from paying the tax and waiting for a refund. Free file federal and state taxes online However, interest is charged on any tax due on the postponed tax return, but interest is not paid on refunds paid within 45 days after the return is filed. Free file federal and state taxes online If you have moving expenses that are for services performed in two years, you can be granted an extension until after the end of the second year. Free file federal and state taxes online File the late returns as soon as possible, stating your reason for filing late. Free file federal and state taxes online For advice on filing the returns, you should contact an  Internal Revenue Service representative in one of the four overseas offices listed in chapter 7. Free file federal and state taxes online It is too late to claim this refund since a claim for refund must be filed within 3 years from the date the return was filed or 2 years from the date the tax was paid, whichever is later. Free file federal and state taxes online A return filed before the due date is considered filed on the due date. Free file federal and state taxes online . Free file federal and state taxes online 4) I was sent abroad by my company in November of last year. Free file federal and state taxes online I plan to secure an extension of time on Form 2350 to file my tax return for last year because I expect to qualify for the foreign earned income exclusion under the physical presence test. Free file federal and state taxes online However, if my company recalls me to the United States before the end of the qualifying period and I find I will not qualify for the exclusion, how and when should I file my return? If your regular filing date has passed, you should file a return, Form 1040, as soon as possible for last year. Free file federal and state taxes online Include a statement with this return noting that you have returned to the United States and will not qualify for the foreign earned income exclusion. Free file federal and state taxes online You must report your worldwide income on the return. Free file federal and state taxes online If you paid a foreign tax on the income earned abroad, you may be able to either deduct this tax as an itemized deduction or claim it as a credit against your U. Free file federal and state taxes online S. Free file federal and state taxes online income tax. Free file federal and state taxes online However, if you pay the tax due after the regular due date, interest will be charged from the regular due date until the date the tax is paid. Free file federal and state taxes online Yes. Free file federal and state taxes online All U. Free file federal and state taxes online S. Free file federal and state taxes online citizens and resident aliens are subject to U. Free file federal and state taxes online S. Free file federal and state taxes online tax on their worldwide income. Free file federal and state taxes online If you paid taxes to a foreign government on income from sources outside the United States, you may be able to claim a foreign tax credit against your U. Free file federal and state taxes online S. Free file federal and state taxes online income tax liability for the foreign taxes paid. Free file federal and state taxes online Form 1116 is used to figure the allowable credit. Free file federal and state taxes online Your U. Free file federal and state taxes online S. Free file federal and state taxes online tax obligation on your income is the same as that of a retired person living in the United States. Free file federal and state taxes online (See the discussion on filing requirements in chapter 1 of this publication. Free file federal and state taxes online ) U. Free file federal and state taxes online S. Free file federal and state taxes online taxpayers overseas have the same requirements for paying estimated tax as those in the United States. Free file federal and state taxes online See the discussion under Estimated Tax in chapter 1. Free file federal and state taxes online Overseas taxpayers should not include in their estimated income any income they receive that is, or will be, exempt from U. Free file federal and state taxes online S. Free file federal and state taxes online taxation. Free file federal and state taxes online Overseas taxpayers can deduct their estimated housing deduction in figuring their estimated tax. Free file federal and state taxes online The first installment of estimated tax is due on April 15 of the year for which the income is earned. Free file federal and state taxes online Generally, only U. Free file federal and state taxes online S. Free file federal and state taxes online currency is acceptable for payment of income tax. Free file federal and state taxes online However, if you are a Fulbright grantee, see Fulbright Grant in chapter 1. Free file federal and state taxes online Yes. Free file federal and state taxes online A Form 2555 (or Form 2555-EZ) must be filed with each Form 1040 tax return on which the benefits of income earned abroad are claimed. Free file federal and state taxes online No. Free file federal and state taxes online The Form 2555 (or 2555-EZ), Schedule C, and Form W-2 are merely attachments and do not relieve you of the requirement to file a Form 1040 to show the sources of income reported and the exclusions or deductions claimed. Free file federal and state taxes online Yes. Free file federal and state taxes online You can claim the foreign earned income exclusion and the foreign housing exclusion or deduction under either test as long as you meet the requirements. Free file federal and state taxes online You are not bound by the test indicated in the application for extension of time. Free file federal and state taxes online You must be sure, however, that you file the Form 1040 by the date approved on Form 2350, since a return filed after that date may be subject to a failure to file penalty. Free file federal and state taxes online If you will not qualify under the bona fide residence test until a date later than the extension granted under the physical presence rule, apply for a new extension to a date 30 days beyond the date you expect to qualify as a bona fide resident. Free file federal and state taxes online No. Free file federal and state taxes online You have the choice of one of the following two methods of filing your return: a) You can file your return when due under the regular filing rules, report all your income without excluding your foreign earned income, and pay the tax due. Free file federal and state taxes online After you have qualified for the exclusion, you can file an amended return, Form 1040X, accompanied by Form 2555 (or 2555-EZ), for a refund of any excess tax paid. Free file federal and state taxes online b) You can postpone the filing of your tax return by applying on Form 2350 for an extension of time to file to a date 30 days beyond the date you expect to qualify under either the bona fide residence test or the physical presence test, then file your return reflecting the exclusion of foreign earned income. Free file federal and state taxes online This allows you to file only once and saves you from paying the tax and waiting for a refund. Free file federal and state taxes online However, interest is charged on any tax due on the postponed tax return, but interest is not paid on refunds paid within 45 days after the return is filed. Free file federal and state taxes online If you have moving expenses that are for services performed in two years, you can be granted an extension until after the end of the second year. Free file federal and state taxes online File the late returns as soon as possible, stating your reason for filing late. Free file federal and state taxes online For advice on filing the returns, you should contact an  Internal Revenue Service representative in one of the four overseas offices listed in chapter 7. Free file federal and state taxes online It is too late to claim this refund since a claim for refund must be filed within 3 years from the date the return was filed or 2 years from the date the tax was paid, whichever is later. Free file federal and state taxes online A return filed before the due date is considered filed on the due date. Free file federal and state taxes online . Free file federal and state taxes online 5) I am a U. Free file federal and state taxes online S. Free file federal and state taxes online citizen and have no taxable income from the United States, but I have substantial income from a foreign source. Free file federal and state taxes online Am I required to file a U. Free file federal and state taxes online S. Free file federal and state taxes online income tax return? Yes. Free file federal and state taxes online All U. Free file federal and state taxes online S. Free file federal and state taxes online citizens and resident aliens are subject to U. Free file federal and state taxes online S. Free file federal and state taxes online tax on their worldwide income. Free file federal and state taxes online If you paid taxes to a foreign government on income from sources outside the United States, you may be able to claim a foreign tax credit against your U. Free file federal and state taxes online S. Free file federal and state taxes online income tax liability for the foreign taxes paid. Free file federal and state taxes online Form 1116 is used to figure the allowable credit. Free file federal and state taxes online Your U. Free file federal and state taxes online S. Free file federal and state taxes online tax obligation on your income is the same as that of a retired person living in the United States. Free file federal and state taxes online (See the discussion on filing requirements in chapter 1 of this publication. Free file federal and state taxes online ) U. Free file federal and state taxes online S. Free file federal and state taxes online taxpayers overseas have the same requirements for paying estimated tax as those in the United States. Free file federal and state taxes online See the discussion under Estimated Tax in chapter 1. Free file federal and state taxes online Overseas taxpayers should not include in their estimated income any income they receive that is, or will be, exempt from U. Free file federal and state taxes online S. Free file federal and state taxes online taxation. Free file federal and state taxes online Overseas taxpayers can deduct their estimated housing deduction in figuring their estimated tax. Free file federal and state taxes online The first installment of estimated tax is due on April 15 of the year for which the income is earned. Free file federal and state taxes online Generally, only U. Free file federal and state taxes online S. Free file federal and state taxes online currency is acceptable for payment of income tax. Free file federal and state taxes online However, if you are a Fulbright grantee, see Fulbright Grant in chapter 1. Free file federal and state taxes online Yes. Free file federal and state taxes online A Form 2555 (or Form 2555-EZ) must be filed with each Form 1040 tax return on which the benefits of income earned abroad are claimed. Free file federal and state taxes online No. Free file federal and state taxes online The Form 2555 (or 2555-EZ), Schedule C, and Form W-2 are merely attachments and do not relieve you of the requirement to file a Form 1040 to show the sources of income reported and the exclusions or deductions claimed. Free file federal and state taxes online Yes. Free file federal and state taxes online You can claim the foreign earned income exclusion and the foreign housing exclusion or deduction under either test as long as you meet the requirements. Free file federal and state taxes online You are not bound by the test indicated in the application for extension of time. Free file federal and state taxes online You must be sure, however, that you file the Form 1040 by the date approved on Form 2350, since a return filed after that date may be subject to a failure to file penalty. Free file federal and state taxes online If you will not qualify under the bona fide residence test until a date later than the extension granted under the physical presence rule, apply for a new extension to a date 30 days beyond the date you expect to qualify as a bona fide resident. Free file federal and state taxes online No. Free file federal and state taxes online You have the choice of one of the following two methods of filing your return: a) You can file your return when due under the regular filing rules, report all your income without excluding your foreign earned income, and pay the tax due. Free file federal and state taxes online After you have qualified for the exclusion, you can file an amended return, Form 1040X, accompanied by Form 2555 (or 2555-EZ), for a refund of any excess tax paid. Free file federal and state taxes online b) You can postpone the filing of your tax return by applying on Form 2350 for an extension of time to file to a date 30 days beyond the date you expect to qualify under either the bona fide residence test or the physical presence test, then file your return reflecting the exclusion of foreign earned income. Free file federal and state taxes online This allows you to file only once and saves you from paying the tax and waiting for a refund. Free file federal and state taxes online However, interest is charged on any tax due on the postponed tax return, but interest is not paid on refunds paid within 45 days after the return is filed. Free file federal and state taxes online If you have moving expenses that are for services performed in two years, you can be granted an extension until after the end of the second year. Free file federal and state taxes online File the late returns as soon as possible, stating your reason for filing late. Free file federal and state taxes online For advice on filing the returns, you should contact an  Internal Revenue Service representative in one of the four overseas offices listed in chapter 7. Free file federal and state taxes online It is too late to claim this refund since a claim for refund must be filed within 3 years from the date the return was filed or 2 years from the date the tax was paid, whichever is later. Free file federal and state taxes online A return filed before the due date is considered filed on the due date. Free file federal and state taxes online . Free file federal and state taxes online 6) I am a U. Free file federal and state taxes online S. Free file federal and state taxes online citizen who has retired, and I expect to remain in a foreign country. Free file federal and state taxes online Do I have any further U. Free file federal and state taxes online S. Free file federal and state taxes online tax obligations? Your U. Free file federal and state taxes online S. Free file federal and state taxes online tax obligation on your income is the same as that of a retired person living in the United States. Free file federal and state taxes online (See the discussion on filing requirements in chapter 1 of this publication. Free file federal and state taxes online ) U. Free file federal and state taxes online S. Free file federal and state taxes online taxpayers overseas have the same requirements for paying estimated tax as those in the United States. Free file federal and state taxes online See the discussion under Estimated Tax in chapter 1. Free file federal and state taxes online Overseas taxpayers should not include in their estimated income any income they receive that is, or will be, exempt from U. Free file federal and state taxes online S. Free file federal and state taxes online taxation. Free file federal and state taxes online Overseas taxpayers can deduct their estimated housing deduction in figuring their estimated tax. Free file federal and state taxes online The first installment of estimated tax is due on April 15 of the year for which the income is earned. Free file federal and state taxes online Generally, only U. Free file federal and state taxes online S. Free file federal and state taxes online currency is acceptable for payment of income tax. Free file federal and state taxes online However, if you are a Fulbright grantee, see Fulbright Grant in chapter 1. Free file federal and state taxes online Yes. Free file federal and state taxes online A Form 2555 (or Form 2555-EZ) must be filed with each Form 1040 tax return on which the benefits of income earned abroad are claimed. Free file federal and state taxes online No. Free file federal and state taxes online The Form 2555 (or 2555-EZ), Schedule C, and Form W-2 are merely attachments and do not relieve you of the requirement to file a Form 1040 to show the sources of income reported and the exclusions or deductions claimed. Free file federal and state taxes online Yes. Free file federal and state taxes online You can claim the foreign earned income exclusion and the foreign housing exclusion or deduction under either test as long as you meet the requirements. Free file federal and state taxes online You are not bound by the test indicated in the application for extension of time. Free file federal and state taxes online You must be sure, however, that you file the Form 1040 by the date approved on Form 2350, since a return filed after that date may be subject to a failure to file penalty. Free file federal and state taxes online If you will not qualify under the bona fide residence test until a date later than the extension granted under the physical presence rule, apply for a new extension to a date 30 days beyond the date you expect to qualify as a bona fide resident. Free file federal and state taxes online No. Free file federal and state taxes online You have the choice of one of the following two methods of filing your return: a) You can file your return when due under the regular filing rules, report all your income without excluding your foreign earned income, and pay the tax due. Free file federal and state taxes online After you have qualified for the exclusion, you can file an amended return, Form 1040X, accompanied by Form 2555 (or 2555-EZ), for a refund of any excess tax paid. Free file federal and state taxes online b) You can postpone the filing of your tax return by applying on Form 2350 for an extension of time to file to a date 30 days beyond the date you expect to qualify under either the bona fide residence test or the physical presence test, then file your return reflecting the exclusion of foreign earned income. Free file federal and state taxes online This allows you to file only once and saves you from paying the tax and waiting for a refund. Free file federal and state taxes online However, interest is charged on any tax due on the postponed tax return, but interest is not paid on refunds paid within 45 days after the return is filed. Free file federal and state taxes online If you have moving expenses that are for services performed in two years, you can be granted an extension until after the end of the second year. Free file federal and state taxes online File the late returns as soon as possible, stating your reason for filing late. Free file federal and state taxes online For advice on filing the returns, you should contact an  Internal Revenue Service representative in one of the four overseas offices listed in chapter 7. Free file federal and state taxes online It is too late to claim this refund since a claim for refund must be filed within 3 years from the date the return was filed or 2 years from the date the tax was paid, whichever is later. Free file federal and state taxes online A return filed before the due date is considered filed on the due date. Free file federal and state taxes online . Free file federal and state taxes online 7) I have been a bona fide resident of a foreign country for over 5 years. Free file federal and state taxes online Is it necessary for me to pay estimated tax? U. Free file federal and state taxes online S. Free file federal and state taxes online taxpayers overseas have the same requirements for paying estimated tax as those in the United States. Free file federal and state taxes online See the discussion under Estimated Tax in chapter 1. Free file federal and state taxes online Overseas taxpayers should not include in their estimated income any income they receive that is, or will be, exempt from U. Free file federal and state taxes online S. Free file federal and state taxes online taxation. Free file federal and state taxes online Overseas taxpayers can deduct their estimated housing deduction in figuring their estimated tax. Free file federal and state taxes online The first installment of estimated tax is due on April 15 of the year for which the income is earned. Free file federal and state taxes online Generally, only U. Free file federal and state taxes online S. Free file federal and state taxes online currency is acceptable for payment of income tax. Free file federal and state taxes online However, if you are a Fulbright grantee, see Fulbright Grant in chapter 1. Free file federal and state taxes online Yes. Free file federal and state taxes online A Form 2555 (or Form 2555-EZ) must be filed with each Form 1040 tax return on which the benefits of income earned abroad are claimed. Free file federal and state taxes online No. Free file federal and state taxes online The Form 2555 (or 2555-EZ), Schedule C, and Form W-2 are merely attachments and do not relieve you of the requirement to file a Form 1040 to show the sources of income reported and the exclusions or deductions claimed. Free file federal and state taxes online Yes. Free file federal and state taxes online You can claim the foreign earned income exclusion and the foreign housing exclusion or deduction under either test as long as you meet the requirements. Free file federal and state taxes online You are not bound by the test indicated in the application for extension of time. Free file federal and state taxes online You must be sure, however, that you file the Form 1040 by the date approved on Form 2350, since a return filed after that date may be subject to a failure to file penalty. Free file federal and state taxes online If you will not qualify under the bona fide residence test until a date later than the extension granted under the physical presence rule, apply for a new extension to a date 30 days beyond the date you expect to qualify as a bona fide resident. Free file federal and state taxes online No. Free file federal and state taxes online You have the choice of one of the following two methods of filing your return: a) You can file your return when due under the regular filing rules, report all your income without excluding your foreign earned income, and pay the tax due. Free file federal and state taxes online After you have qualified for the exclusion, you can file an amended return, Form 1040X, accompanied by Form 2555 (or 2555-EZ), for a refund of any excess tax paid. Free file federal and state taxes online b) You can postpone the filing of your tax return by applying on Form 2350 for an extension of time to file to a date 30 days beyond the date you expect to qualify under either the bona fide residence test or the physical presence test, then file your return reflecting the exclusion of foreign earned income. Free file federal and state taxes online This allows you to file only once and saves you from paying the tax and waiting for a refund. Free file federal and state taxes online However, interest is charged on any tax due on the postponed tax return, but interest is not paid on refunds paid within 45 days after the return is filed. Free file federal and state taxes online If you have moving expenses that are for services performed in two years, you can be granted an extension until after the end of the second year. Free file federal and state taxes online File the late returns as soon as possible, stating your reason for filing late. Free file federal and state taxes online For advice on filing the returns, you should contact an  Internal Revenue Service representative in one of the four overseas offices listed in chapter 7. Free file federal and state taxes online It is too late to claim this refund since a claim for refund must be filed within 3 years from the date the return was filed or 2 years from the date the tax was paid, whichever is later. Free file federal and state taxes online A return filed before the due date is considered filed on the due date. Free file federal and state taxes online . Free file federal and state taxes online 8) Will a check payable in foreign currency be acceptable in payment of my U. Free file federal and state taxes online S. Free file federal and state taxes online tax? Generally, only U. Free file federal and state taxes online S. Free file federal and state taxes online currency is acceptable for payment of income tax. Free file federal and state taxes online However, if you are a Fulbright grantee, see Fulbright Grant in chapter 1. Free file federal and state taxes online Yes. Free file federal and state taxes online A Form 2555 (or Form 2555-EZ) must be filed with each Form 1040 tax return on which the benefits of income earned abroad are claimed. Free file federal and state taxes online No. Free file federal and state taxes online The Form 2555 (or 2555-EZ), Schedule C, and Form W-2 are merely attachments and do not relieve you of the requirement to file a Form 1040 to show the sources of income reported and the exclusions or deductions claimed. Free file federal and state taxes online Yes. Free file federal and state taxes online You can claim the foreign earned income exclusion and the foreign housing exclusion or deduction under either test as long as you meet the requirements. Free file federal and state taxes online You are not bound by the test indicated in the application for extension of time. Free file federal and state taxes online You must be sure, however, that you file the Form 1040 by the date approved on Form 2350, since a return filed after that date may be subject to a failure to file penalty. Free file federal and state taxes online If you will not qualify under the bona fide residence test until a date later than the extension granted under the physical presence rule, apply for a new extension to a date 30 days beyond the date you expect to qualify as a bona fide resident. Free file federal and state taxes online No. Free file federal and state taxes online You have the choice of one of the following two methods of filing your return: a) You can file your return when due under the regular filing rules, report all your income without excluding your foreign earned income, and pay the tax due. Free file federal and state taxes online After you have qualified for the exclusion, you can file an amended return, Form 1040X, accompanied by Form 2555 (or 2555-EZ), for a refund of any excess tax paid. Free file federal and state taxes online b) You can postpone the filing of your tax return by applying on Form 2350 for an extension of time to file to a date 30 days beyond the date you expect to qualify under either the bona fide residence test or the physical presence test, then file your return reflecting the exclusion of foreign earned income. Free file federal and state taxes online This allows you to file only once and saves you from paying the tax and waiting for a refund. Free file federal and state taxes online However, interest is charged on any tax due on the postponed tax return, but interest is not paid on refunds paid within 45 days after the return is filed. Free file federal and state taxes online If you have moving expenses that are for services performed in two years, you can be granted an extension until after the end of the second year. Free file federal and state taxes online File the late returns as soon as possible, stating your reason for filing late. Free file federal and state taxes online For advice on filing the returns, you should contact an  Internal Revenue Service representative in one of the four overseas offices listed in chapter 7. Free file federal and state taxes online It is too late to claim this refund since a claim for refund must be filed within 3 years from the date the return was filed or 2 years from the date the tax was paid, whichever is later. Free file federal and state taxes online A return filed before the due date is considered filed on the due date. Free file federal and state taxes online . Free file federal and state taxes online 9) I have met the test for physical presence in a foreign country and am filing returns for 2 years. Free file federal and state taxes online Must I file a separate Form 2555 (or Form 2555-EZ) with each return? Yes. Free file federal and state taxes online A Form 2555 (or Form 2555-EZ) must be filed with each Form 1040 tax return on which the benefits of income earned abroad are claimed. Free file federal and state taxes online No. Free file federal and state taxes online The Form 2555 (or 2555-EZ), Schedule C, and Form W-2 are merely attachments and do not relieve you of the requirement to file a Form 1040 to show the sources of income reported and the exclusions or deductions claimed. Free file federal and state taxes online Yes. Free file federal and state taxes online You can claim the foreign earned income exclusion and the foreign housing exclusion or deduction under either test as long as you meet the requirements. Free file federal and state taxes online You are not bound by the test indicated in the application for extension of time. Free file federal and state taxes online You must be sure, however, that you file the Form 1040 by the date approved on Form 2350, since a return filed after that date may be subject to a failure to file penalty. Free file federal and state taxes online If you will not qualify under the bona fide residence test until a date later than the extension granted under the physical presence rule, apply for a new extension to a date 30 days beyond the date you expect to qualify as a bona fide resident. Free file federal and state taxes online No. Free file federal and state taxes online You have the choice of one of the following two methods of filing your return: a) You can file your return when due under the regular filing rules, report all your income without excluding your foreign earned income, and pay the tax due. Free file federal and state taxes online After you have qualified for the exclusion, you can file an amended return, Form 1040X, accompanied by Form 2555 (or 2555-EZ), for a refund of any excess tax paid. Free file federal and state taxes online b) You can postpone the filing of your tax return by applying on Form 2350 for an extension of time to file to a date 30 days beyond the date you expect to qualify under either the bona fide residence test or the physical presence test, then file your return reflecting the exclusion of foreign earned income. Free file federal and state taxes online This allows you to file only once and saves you from paying the tax and waiting for a refund. Free file federal and state taxes online However, interest is charged on any tax due on the postponed tax return, but interest is not paid on refunds paid within 45 days after the return is filed. Free file federal and state taxes online If you have moving expenses that are for services performed in two years, you can be granted an extension until after the end of the second year. Free file federal and state taxes online File the late returns as soon as possible, stating your reason for filing late. Free file federal and state taxes online For advice on filing the returns, you should contact an  Internal Revenue Service representative in one of the four overseas offices listed in chapter 7. Free file federal and state taxes online It is too late to claim this refund since a claim for refund must be filed within 3 years from the date the return was filed or 2 years from the date the tax was paid, whichever is later. Free file federal and state taxes online A return filed before the due date is considered filed on the due date. Free file federal and state taxes online . Free file federal and state taxes online 10) Does a Form 2555 (or 2555-EZ) with a Schedule C or Form W-2 attached constitute a return? No. Free file federal and state taxes online The Form 2555 (or 2555-EZ), Schedule C, and Form W-2 are merely attachments and do not relieve you of the requirement to file a Form 1040 to show the sources of income reported and the exclusions or deductions claimed. Free file federal and state taxes online Yes. Free file federal and state taxes online You can claim the foreign earned income exclusion and the foreign housing exclusion or deduction under either test as long as you meet the requirements. Free file federal and state taxes online You are not bound by the test indicated in the application for extension of time. Free file federal and state taxes online You must be sure, however, that you file the Form 1040 by the date approved on Form 2350, since a return filed after that date may be subject to a failure to file penalty. Free file federal and state taxes online If you will not qualify under the bona fide residence test until a date later than the extension granted under the physical presence rule, apply for a new extension to a date 30 days beyond the date you expect to qualify as a bona fide resident. Free file federal and state taxes online No. Free file federal and state taxes online You have the choice of one of the following two methods of filing your return: a) You can file your return when due under the regular filing rules, report all your income without excluding your foreign earned income, and pay the tax due. Free file federal and state taxes online After you have qualified for the exclusion, you can file an amended return, Form 1040X, accompanied by Form 2555 (or 2555-EZ), for a refund of any excess tax paid. Free file federal and state taxes online b) You can postpone the filing of your tax return by applying on Form 2350 for an extension of time to file to a date 30 days beyond the date you expect to qualify under either the bona fide residence test or the physical presence test, then file your return reflecting the exclusion of foreign earned income. Free file federal and state taxes online This allows you to file only once and saves you from paying the tax and waiting for a refund. Free file federal and state taxes online However, interest is charged on any tax due on the postponed tax return, but interest is not paid on refunds paid within 45 days after the return is filed. Free file federal and state taxes online If you have moving expenses that are for services performed in two years, you can be granted an extension until after the end of the second year. Free file federal and state taxes online File the late returns as soon as possible, stating your reason for filing late. Free file federal and state taxes online For advice on filing the returns, you should contact an  Internal Revenue Service representative in one of the four overseas offices listed in chapter 7. Free file federal and state taxes online It is too late to claim this refund since a claim for refund must be filed within 3 years from the date the return was filed or 2 years from the date the tax was paid, whichever is later. Free file federal and state taxes online A return filed before the due date is considered filed on the due date. Free file federal and state taxes online . Free file federal and state taxes online 11) On Form 2350, Application for Extension of Time To File U. Free file federal and state taxes online S. Free file federal and state taxes online Income Tax Return, I stated that I would qualify for the foreign earned income exclusion under the physical presence test. Free file federal and state taxes online If I qualify under the bona fide residence test, can I file my return on that basis? Yes. Free file federal and state taxes online You can claim the foreign earned income exclusion and the foreign housing exclusion or deduction under either test as long as you meet the requirements. Free file federal and state taxes online You are not bound by the test indicated in the application for extension of time. Free file federal and state taxes online You must be sure, however, that you file the Form 1040 by the date approved on Form 2350, since a return filed after that date may be subject to a failure to file penalty. Free file federal and state taxes online If you will not qualify under the bona fide residence test until a date later than the extension granted under the physical presence rule, apply for a new extension to a date 30 days beyond the date you expect to qualify as a bona fide resident. Free file federal and state taxes online No. Free file federal and state taxes online You have the choice of one of the following two methods of filing your return: a) You can file your return when due under the regular filing rules, report all your income without excluding your foreign earned income, and pay the tax due. Free file federal and state taxes online After you have qualified for the exclusion, you can file an amended return, Form 1040X, accompanied by Form 2555 (or 2555-EZ), for a refund of any excess tax paid. Free file federal and state taxes online b) You can postpone the filing of your tax return by applying on Form 2350 for an extension of time to file to a date 30 days beyond the date you expect to qualify under either the bona fide residence test or the physical presence test, then file your return reflecting the exclusion of foreign earned income. Free file federal and state taxes online This allows you to file only once and saves you from paying the tax and waiting for a refund. Free file federal and state taxes online However, interest is charged on any tax due on the postponed tax return, but interest is not paid on refunds paid within 45 days after the return is filed. Free file federal and state taxes online If you have moving expenses that are for services performed in two years, you can be granted an extension until after the end of the second year. Free file federal and state taxes online File the late returns as soon as possible, stating your reason for filing late. Free file federal and state taxes online For advice on filing the returns, you should contact an  Internal Revenue Service representative in one of the four overseas offices listed in chapter 7. Free file federal and state taxes online It is too late to claim this refund since a claim for refund must be filed within 3 years from the date the return was filed or 2 years from the date the tax was paid, whichever is later. Free file federal and state taxes online A return filed before the due date is considered filed on the due date. Free file federal and state taxes online . Free file federal and state taxes online 12) I am a U. Free file federal and state taxes online S. Free file federal and state taxes online citizen who worked in the United States for 6 months last year. Free file federal and state taxes online I accepted employment overseas in July of last year and expect to qualify for the foreign earned income exclusion. Free file federal and state taxes online Should I file a return and pay tax on the income earned in the United States during the first 6 months and then, when I qualify, file another return covering the last 6 months of the year? No. Free file federal and state taxes online You have the choice of one of the following two methods of filing your return: a) You can file your return when due under the regular filing rules, report all your income without excluding your foreign earned income, and pay the tax due. Free file federal and state taxes online After you have qualified for the exclusion, you can file an amended return, Form 1040X, accompanied by Form 2555 (or 2555-EZ), for a refund of any excess tax paid. Free file federal and state taxes online b) You can postpone the filing of your tax return by applying on Form 2350 for an extension of time to file to a date 30 days beyond the date you expect to qualify under either the bona fide residence test or the physical presence test, then file your return reflecting the exclusion of foreign earned income. Free file federal and state taxes online This allows you to file only once and saves you from paying the tax and waiting for a refund. Free file federal and state taxes online However, interest is charged on any tax due on the postponed tax return, but interest is not paid on refunds paid within 45 days after the return is filed. Free file federal and state taxes online If you have moving expenses that are for services performed in two years, you can be granted an extension until after the end of the second year. Free file federal and state taxes online File the late returns as soon as possible, stating your reason for filing late. Free file federal and state taxes online For advice on filing the returns, you should contact an  Internal Revenue Service representative in one of the four overseas offices listed in chapter 7. Free file federal and state taxes online It is too late to claim this refund since a claim for refund must be filed within 3 years from the date the return was filed or 2 years from the date the tax was paid, whichever is later. Free file federal and state taxes online A return filed before the due date is considered filed on the due date. Free file federal and state taxes online . Free file federal and state taxes online 13) I am a U. Free file federal and state taxes online S. Free file federal and state taxes online citizen. Free file federal and state taxes online I have lived abroad for a number of years and recently realized that I should have been filing U. Free file federal and state taxes online S. Free file federal and state taxes online income tax returns. Free file federal and state taxes online How do I correct this oversight in not having filed returns for these years? File the late returns as soon as possible, stating your reason for filing late. Free file federal and state taxes online For advice on filing the returns, you should contact an  Internal Revenue Service representative in one of the four overseas offices listed in chapter 7. Free file federal and state taxes online It is too late to claim this refund since a claim for refund must be filed within 3 years from the date the return was filed or 2 years from the date the tax was paid, whichever is later. Free file federal and state taxes online A return filed before the due date is considered filed on the due date. Free file federal and state taxes online . Free file federal and state taxes online 14) In 2008, I qualified to exclude my foreign earned income, but I did not claim this exclusion on the return I filed in 2009. Free file federal and state taxes online I paid all outstanding taxes with the return. Free file federal and state taxes online Can I file a claim for refund now? It is too late to claim this refund since a claim for refund must be filed within 3 years from the date the return was filed or 2 years from the date the tax was paid, whichever is later. Free file federal and state taxes online A return filed before the due date is considered filed on the due date. Free file federal and state taxes online 2. Free file federal and state taxes online Meeting the Requirements of Either the Bona Fide Residence Test or the Physical Presence Test . Free file federal and state taxes online 1) I recently came to Country X to work for the Orange Tractor Co. Free file federal and state taxes online and I expect to be here for 5 or 6 years. Free file federal and state taxes online I understand that upon the completion of 1 full year I will qualify for an exclusion or deduction under the bona fide residence test. Free file federal and state taxes online Is this correct? . Free file federal and state taxes online 2) I understand the physical presence test to be simply a matter of being physically present in a foreign country for at least 330 days within 12 consecutive months; but what are the criteria of the bona fide residence test? . Free file federal and state taxes online 3) To meet the qualification of an uninterrupted period which includes an entire taxable year, do I have to be physically present in a foreign country for the entire year? . Free file federal and state taxes online 4) I am a U. Free file federal and state taxes online S. Free file federal and state taxes online citizen and during 2012 was a bona fide resident of Country X. Free file federal and state taxes online On January 15, 2013, I was notified that I was to be assigned to Country Y. Free file federal and state taxes online I was recalled to New York for 90 days orientation and then went to Country Y, where I have been since. Free file federal and state taxes online Although I was not in Country Y on January 1, I was a bona fide resident of Country X and was in Country Y on December 31, 2013. Free file federal and state taxes online My family remained in Country X until completion of the orientation period, and my household goods were shipped directly to my new post. Free file federal and state taxes online Am I a bona fide resident of a foreign country for 2013, or must I wait for the entire year of 2014 to become one? . Free file federal and state taxes online 5) Due to illness, I returned to the United States before I completed my qualifying period to claim the foreign earned income exclusion. Free file federal and state taxes online Can I figure the exclusion for the period I resided abroad? . Free file federal and state taxes online 6) Can a resident alien of the United States qualify for an exclusion or deduction under the bona fide residence test or the physical presence test? . Free file federal and state taxes online 7) On August 13 of last year I left the United States and arrived in Country Z to work for the Gordon Manufacturing Company. Free file federal and state taxes online I expected to be able to exclude my foreign earned income under the physical presence test because I planned to be in Country Z for at least 1 year. Free file federal and state taxes online However, I was reassigned back to the United States and left Country Z on July 1 of this year. Free file federal and state taxes online Can I exclude any of my foreign earned income? . Free file federal and state taxes online 1) I recently came to Country X to work for the Orange Tractor Co. Free file federal and state taxes online and I expect to be here for 5 or 6 years. Free file federal and state taxes online I understand that upon the completion of 1 full year I will qualify for an exclusion or deduction under the bona fide residence test. Free file federal and state taxes online Is this correct? Not necessarily. Free file federal and state taxes online The law provides that to qualify under this test for the foreign earned income exclusion, the foreign housing exclusion, or the foreign housing deduction, a person must be a “bona fide resident of a foreign country or countries for an uninterrupted period which includes an entire taxable year. Free file federal and state taxes online ” If, like most U. Free file federal and state taxes online S. Free file federal and state taxes online citizens, you file your return on a calendar year basis, the taxable year referred to in the law would be from January 1 to December 31 of any particular year. Free file federal and state taxes online Unless you established residence in Country X on January 1, it would be more than 1 year before you would be a bona fide resident of a foreign country. Free file federal and state taxes online Once you have completed your qualifying period, however, you are entitled to exclude the income or to claim the housing exclusion or deduction from the date you established bona fide residence. Free file federal and state taxes online To be a bona fide resident of a foreign country, you must show that you entered a foreign country intending to remain there for an indefinite or prolonged period and, to that end, you are making your home in that country. Free file federal and state taxes online Consideration is given to the type of quarters occupied, whether your family went with you, the type of visa, the employment agreement, and any other factor pertinent to show whether your stay in the foreign country is indefinite or prolonged. Free file federal and state taxes online To claim the foreign earned income exclusion or foreign housing exclusion or deduction under this test, the period of foreign residence must include 1 full tax year (usually January 1 – December 31), but once you meet this time requirement, you figure the exclusions and the deduction from the date the residence actually began. Free file federal and state taxes online No. Free file federal and state taxes online Uninterrupted refers to the bona fide residence proper and not to the physical presence of the individual. Free file federal and state taxes online During the period of bona fide residence in a foreign country, even during the first full year, you can leave the country for brief and temporary trips back to the United States or elsewhere for vacation, or even for business. Free file federal and state taxes online To preserve your status as a bona fide resident of a foreign country, you must have a clear intention of returning from those trips, without unreasonable delay, to your foreign residence. Free file federal and state taxes online Since you did not break your period of foreign residence, you would continue to be a bona fide resident of a foreign country for 2013. Free file federal and state taxes online No. Free file federal and state taxes online You are not entitled to any exclusion of foreign earned income since you did not complete your qualifying period under either the bona fide residence test or physical presence test. Free file federal and state taxes online If you paid foreign tax on the income earned abroad, you may be able to claim that tax as a deduction or as a credit against your U. Free file federal and state taxes online S. Free file federal and state taxes online tax. Free file federal and state taxes online Resident aliens of the United States can qualify for the foreign earned income exclusion, the foreign housing exclusion, or the foreign housing deduction if they meet the requirements of the physical presence test. Free file federal and state taxes online Resident aliens who are citizens or nationals of a country with which the United States has an income tax treaty in effect also can qualify under the bona fide residence test. Free file federal and state taxes online No. Free file federal and state taxes online You cannot exclude any of the income you earned in Country Z because you were not in a foreign country for at least 330 full days as required under the physical presence test. Free file federal and state taxes online . Free file federal and state taxes online 2) I understand the physical presence test to be simply a matter of being physically present in a foreign country for at least 330 days within 12 consecutive months; but what are the criteria of the bona fide residence test? To be a bona fide resident of a foreign country, you must show that you entered a foreign country intending to remain there for an indefinite or prolonged period and, to that end, you are making your home in that country. Free file federal and state taxes online Consideration is given to the type of quarters occupied, whether your family went with you, the type of visa, the employment agreement, and any other factor pertinent to show whether your stay in the foreign country is indefinite or prolonged. Free file federal and state taxes online To claim the foreign earned income exclusion or foreign housing exclusion or deduction under this test, the period of foreign residence must include 1 full tax year (usually January 1 – December 31), but once you meet this time requirement, you figure the exclusions and the deduction from the date the residence actually began. Free file federal and state taxes online No. Free file federal and state taxes online Uninterrupted refers to the bona fide residence proper and not to the physical presence of the individual. Free file federal and state taxes online During the period of bona fide residence in a foreign country, even during the first full year, you can leave the country for brief and temporary trips back to the United States or elsewhere for vacation, or even for business. Free file federal and state taxes online To preserve your status as a bona fide resident of a foreign country, you must have a clear intention of returning from those trips, without unreasonable delay, to your foreign residence. Free file federal and state taxes online Since you did not break your period of foreign residence, you would continue to be a bona fide resident of a foreign country for 2013. Free file federal and state taxes online No. Free file federal and state taxes online You are not entitled to any exclusion of foreign earned income since you did not complete your qualifying period under either the bona fide residence test or physical presence test. Free file federal and state taxes online If you paid foreign tax on the income earned abroad, you may be able to claim that tax as a deduction or as a credit against your U. Free file federal and state taxes online S. Free file federal and state taxes online tax. Free file federal and state taxes online Resident aliens of the United States can qualify for the foreign earned income exclusion, the foreign housing exclusion, or the foreign housing deduction if they meet the requirements of the physical presence test. Free file federal and state taxes online Resident aliens who are citizens or nationals of a country with which the United States has an income tax treaty in effect also can qualify under the bona fide residence test. Free file federal and state taxes online No. Free file federal and state taxes online You cannot exclude any of the income you earned in Country Z because you were not in a foreign country for at least 330 full days as required under the physical presence test. Free file federal and state taxes online . Free file federal and state taxes online 3) To meet the qualification of “an uninterrupted period which includes an entire taxable year,” do I have to be physically present in a foreign country for the entire year? No. Free file federal and state taxes online Uninterrupted refers to the bona fide residence proper and not to the physical presence of the individual. Free file federal and state taxes online During the period of bona fide residence in a foreign country, even during the first full year, you can leave the country for brief and temporary trips back to the United States or elsewhere for vacation, or even for business. Free file federal and state taxes online To preserve your status as a bona fide resident of a foreign country, you must have a clear intention of returning from those trips, without unreasonable delay, to your foreign residence. Free file federal and state taxes online Since you did not break your period of foreign residence, you would continue to be a bona fide resident of a foreign country for 2013. Free file federal and state taxes online No. Free file federal and state taxes online You are not entitled to any exclusion of foreign earned income since you did not complete your qualifying period under either the bona fide residence test or physical presence test. Free file federal and state taxes online If you paid foreign tax on the income earned abroad, you may be able to claim that tax as a deduction or as a credit against your U. Free file federal and state taxes online S. Free file federal and state taxes online tax. Free file federal and state taxes online Resident aliens of the United States can qualify for the foreign earned income exclusion, the foreign housing exclusion, or the foreign housing deduction if they meet the requirements of the physical presence test. Free file federal and state taxes online Resident aliens who are citizens or nationals of a country with which the United States has an income tax treaty in effect also can qualify under the bona fide residence test. Free file federal and state taxes online No. Free file federal and state taxes online You cannot exclude any of the income you earned in Country Z because you were not in a foreign country for at least 330 full days as required under the physical presence test. Free file federal and state taxes online . Free file federal and state taxes online 4) I am a U. Free file federal and state taxes online S. Free file federal and state taxes online citizen and during 2012 was a bona fide resident of Country X. Free file federal and state taxes online On January 15, 2013, I was notified that I was to be assigned to Country Y. Free file federal and state taxes online I was recalled to New York for 90 days orientation and then went to Country Y, where I have been since. Free file federal and state taxes online Although I was not in Country Y on January 1, I was a bona fide resident of Country X and was in Country Y on December 31, 2013. Free file federal and state taxes online My family remained in Country X until completion of the orientation period, and my household goods were shipped directly to my new post. Free file federal and state taxes online Am I a bona fide resident of a foreign country for 2013, or must I wait for the entire year of 2014 to become one? Since you did not break your period of foreign residence, you would continue to be a bona fide resident of a foreign country for 2013. Free file federal and state taxes online No. Free file federal and state taxes online You are not entitled to any exclusion of foreign earned income since you did not complete your qualifying period under either the bona fide residence test or physical presence test. Free file federal and state taxes online If you paid foreign tax on the income earned abroad, you may be able to claim that tax as a deduction or as a credit against your U. Free file federal and state taxes online S. Free file federal and state taxes online tax. Free file federal and state taxes online Resident aliens of the United States can qualify for the foreign earned income exclusion, the foreign housing exclusion, or the foreign housing deduction if they meet the requirements of the physical presence test. Free file federal and state taxes online Resident aliens who are citizens or nationals of a country with which the United States has an income tax treaty in effect also can qualify under the bona fide residence test. Free file federal and state taxes online No. Free file federal and state taxes online You cannot exclude any of the income you earned in Country Z because you were not in a foreign country for at least 330 full days as required under the physical presence test. Free file federal and state taxes online . Free file federal and state taxes online 5) Due to illness, I returned to the United States before I completed my qualifying period to claim the foreign earned income exclusion. Free file federal and state taxes online Can I figure the exclusion for the period I resided abroad? No. Free file federal and state taxes online You are not entitled to any exclusion of foreign earned income since you did not complete your qualifying period under either the bona fide residence test or physical presence test. Free file federal and state taxes online If you paid foreign tax on the income earned abroad, you may be able to claim that tax as a deduction or as a credit against your U. Free file federal and state taxes online S. Free file federal and state taxes online tax. Free file federal and state taxes online Resident aliens of the United States can qualify for the foreign earned income exclusion, the foreign housing exclusion, or the foreign housing deduction if they meet the requirements of the physical presence test. Free file federal and state taxes online Resident aliens who are citizens or nationals of a country with which the United States has an income tax treaty in effect also can qualify under the bona fide residence test. Free file federal and state taxes online No. Free file federal and state taxes online You cannot exclude any of the income you earned in Country Z because you were not in a foreign country for at least 330 full days as required under the physical presence test. Free file federal and state taxes online . Free file federal and state taxes online 6) Can a resident alien of the United States qualify for an exclusion or deduction under the bona fide residence test or the physical presence test? Resident aliens of the United States can qualify for the foreign earned income exclusion, the foreign housing exclusion, or the foreign housing deduction if they meet the requirements of the physical presence test. Free file federal and state taxes online Resident aliens who are citizens or nationals of a country with which the United States has an income tax treaty in effect also can qualify under the bona fide residence test. Free file federal and state taxes online No. Free file federal and state taxes online You cannot exclude any of the income you earned in Country Z because you were not in a foreign country for at least 330 full days as required under the physical presence test. Free file federal and state taxes online . Free file federal and state taxes online 7) On August 13 of last year I left the United States and arrived in Country Z to work for the Gordon Manufacturing Company. Free file federal and state taxes online I expected to be able to exclude my foreign earned income under the physical presence test because I planned to be in Country Z for at least 1 year. Free file federal and state taxes online However, I was reassigned back to the United States and left Country Z on July 1 of this year. Free file federal and state taxes online Can I exclude any of my foreign earned income? No. Free file federal and state taxes online You cannot exclude any of the income you earned in Country Z because you were not in a foreign country for at least 330 full days as required under the physical presence test. Free file federal and state taxes online 3. Free file federal and state taxes online Foreign Earned Income . Free file federal and state taxes online 1) I am an employee of the U. Free file federal and state taxes online S. Free file federal and state taxes online Government working abroad. Free file federal and state taxes online Can all or part of my government income earned abroad qualify for the foreign earned income exclusion? . Free file federal and state taxes online 2) I qualify for the foreign earned income exclusion under the bona fide residence test. Free file federal and state taxes online Does my foreign earned income include my U. Free file federal and state taxes online S. Free file federal and state taxes online dividends and the interest I receive on a foreign bank account? . Free file federal and state taxes online 3) My company pays my foreign income tax on my foreign earnings. Free file federal and state taxes online Is this taxable compensation? . Free file federal and state taxes online 4) I live in an apartment in a foreign city for which my employer pays the rent. Free file federal and state taxes online Should I include in my income the cost to my employer ($1,200 a month) or the fair market value of equivalent housing in the United States ($800 a month)? . Free file federal and state taxes online 5) My U. Free file federal and state taxes online S. Free file federal and state taxes online employer pays my salary into my U. Free file federal and state taxes online S. Free file federal and state taxes online bank account. Free file federal and state taxes online Is this income considered earned in the United States or is it considered foreign earned income? . Free file federal and state taxes online 6) What is considered a foreign country? . Free file federal and state taxes online 7) What is the source of earned income? . Free file federal and state taxes online 1) I am an employee of the U. Free file federal and state taxes online S. Free file federal and state taxes online Government working abroad. Free file federal and state taxes online Can all or part of my government income earned abroad qualify for the foreign earned income exclusion? No. Free file federal and state taxes online The foreign earned income exclusion applies to your foreign earned income. Free file federal and state taxes online Amounts paid by the United States or its agencies to their employees are not treated, for this purpose, as foreign earned income. Free file federal and state taxes online No. Free file federal and state taxes online The only income that is foreign earned income is income from the performance of personal services abroad. Free file federal and state taxes online Investment income is not earned income. Free file federal and state taxes online However, you must include it in gross income reported on your Form 1040. Free file federal and state taxes online Yes. Free file federal and state taxes online The amount is compensation for services performed. Free file federal and state taxes online The tax paid by your company should be reported on Form 1040, line 7, and on Form 2555, Part IV, line 22(f) (or on Form 2555-EZ, Part IV, line 17). Free file federal and state taxes online You must include in income the fair market value (FMV) of the facility provided, where it is provided. Free file federal and state taxes online This will usually be the rent your employer pays. Free file federal and state taxes online Situations when the FMV is not included in income are discussed in chapter 4 under Exclusion of Meals and Lodging. Free file federal and state taxes online If you performed the services to earn this salary outside the United States, your salary is considered earned abroad. Free file federal and state taxes online It does not matter that you are paid by a U. Free file federal and state taxes online S. Free file federal and state taxes online employer or that your salary is deposited in a U. Free file federal and state taxes online S. Free file federal and state taxes online bank account in the United States. Free file federal and state taxes online The source of salary, wages, commissions, and other personal service income is the place where you perform the services. Free file federal and state taxes online For the purposes of the foreign earned income exclusion and the foreign housing exclusion or deduction, any territory under the sovereignty of a countr
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IRS VITA Grant Program

The Volunteer Income Tax Assistance (VITA) Grant Program is an IRS initiative designed to promote and support free tax preparation service for the underserved, in both urban and non-urban locations. Service is targeted to low-to-moderate income individuals, persons with disabilities, the elderly, and limited English speaking. IRS awards matching grants each year to organizations that offer free tax preparation services during the tax filing season at locations in all 50 states and the District of Columbia. Congress appropriates this funding to support the Volunteer Income Tax Assistance Program.

This Grant Program is intended to provide direct funds to organizations to:

  • Enable VITA Programs to extend services to underserved populations in hardest-to-reach areas, both urban and non-urban;
  • Increase the capacity to file returns electronically;
  • Heighten quality control;
  • Enhance volunteer training; and
  • Significantly improve the accuracy rate of returns prepared at volunteer sites.

This webpage serves as a resource for organizations interested in applying for a VITA Grant as well as for organizations who have been awarded a grant.

Select from the following categories to get started:

 

Contact the VITA Grant Program at Grant.Program.Office@irs.gov.

Page Last Reviewed or Updated: 07-Nov-2013

The Free File Federal And State Taxes Online

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