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Free State And Federal Tax Filing For Low Income

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Free State And Federal Tax Filing For Low Income

Free state and federal tax filing for low income Index A Acknowledgment of contributions, Acknowledgment of Charitable Contributions of $250 or More Adverse determination, Adverse determination. Free state and federal tax filing for low income Affordable Care Act Hospitals, What's New, New Requirements for section 501(c)(3) Hospitals Under the Affordable Care Act. Free state and federal tax filing for low income Aged, home for, Home for the aged. Free state and federal tax filing for low income Agricultural organization, Agricultural and Horticultural Organizations Airport, Other organizations. Free state and federal tax filing for low income Alumni association, Alumni association. Free state and federal tax filing for low income Amateur athletic organizations, Amateur Athletic Organizations Animals, prevention of cruelty to, Prevention of Cruelty to Children or Animals Appeal procedures, Appeal Procedures Application procedures, Application Procedures, Required Inclusions Bylaws, Bylaws. Free state and federal tax filing for low income Conformed copy, Conformed copy. Free state and federal tax filing for low income Description of activities, Description of activities. Free state and federal tax filing for low income Employer identification number, Required Inclusions Financial data, Financial data. Free state and federal tax filing for low income Organizing documents, Organizing documents. Free state and federal tax filing for low income Aquatic resources, Agricultural and Horticultural Organizations Articles of organization, Articles of Organization Assistance (see Tax help) Athletic organization, Athletic organization. Free state and federal tax filing for low income , Amateur Athletic Organizations Attorney's fees, Acceptance of attorneys' fees. Free state and federal tax filing for low income Attribution, special rules, Special rules of attribution. Free state and federal tax filing for low income B Black lung benefit trust, 501(c)(21) - Black Lung Benefit Trusts Board of trade, Board of trade. Free state and federal tax filing for low income Bureau defined, Bureau defined. Free state and federal tax filing for low income Burial benefit insurance, Burial and funeral benefit insurance organization. Free state and federal tax filing for low income Business income, unrelated, Unrelated Business Income Tax Return Business league, 501(c)(6) - Business Leagues, etc. Free state and federal tax filing for low income C Cemetery company, 501(c)(13) - Cemetery Companies Chamber of commerce, Chamber of commerce. Free state and federal tax filing for low income Change in legal structure, Organizational Changes and Exempt Status Charitable contributions, Acknowledgment of Charitable Contributions of $250 or More, Contributions to 501(c)(3) Organizations Charitable organization, Section 501(c)(3) Organizations, Charitable Organizations Charitable risk pools, Charitable Risk Pools Child care organization, Child care organizations. Free state and federal tax filing for low income Children, prevention of cruelty to, Prevention of Cruelty to Children or Animals Church, Churches. Free state and federal tax filing for low income Integrated auxiliaries, Integrated auxiliaries. Free state and federal tax filing for low income Civic leagues, 501(c)(4) - Civic Leagues and Social Welfare Organizations Clinic, Clinic. Free state and federal tax filing for low income CO-OP Health Insurance Issuers, 501(c)(29) - CO-OP Health Insurance Issuers College bookstore, restaurant, College book stores, cafeterias, restaurants, etc. Free state and federal tax filing for low income Comments, Comments and suggestions. Free state and federal tax filing for low income Community association, Other organizations. Free state and federal tax filing for low income Community nursing bureau, Community nursing bureau. Free state and federal tax filing for low income Community trust, Community Trusts Contributions, charitable, Acknowledgment of Charitable Contributions of $250 or More, Contributions to 501(c)(3) Organizations Court appeals, Appeal to Courts Credit union, 501(c)(14) - Credit Unions and Other Mutual Financial Organizations D Determination letter, Rulings and Determination Letters Disclosures, required, Disclosure of Quid Pro Quo Contributions Dues used for lobbying, Dues Used for Lobbying or Political Activities Nondeductible contributions, Solicitation of Nondeductible Contributions Quid pro quo contributions, Disclosure of Quid Pro Quo Contributions Services available from government, Penalties. Free state and federal tax filing for low income Dispositions of donated property, Donee Information Return Disqualified persons, Disqualified persons. Free state and federal tax filing for low income Domestic fraternal society, Domestic Fraternal Societies (501(c)(10)) Donor advised funds Excess benefit transaction, Donor advised fund transactions occurring after August 17, 2006. Free state and federal tax filing for low income Dues used for political or legislative activities, Dues Used for Lobbying or Political Activities, Deduction not allowed for dues used for political or legislative activities. Free state and federal tax filing for low income E Educational organizations, Educational Organizations, Educational organizations. Free state and federal tax filing for low income Employees' association, 501(c)(4), 501(c)(9), and 501(c)(17) - Employees' Associations Employment taxes, Employment Tax Returns Endowment fund, Endowment funds. Free state and federal tax filing for low income Estimated tax, Estimated tax. Free state and federal tax filing for low income Excess benefit transaction, Excess Benefit Transaction, Supporting organization transactions occurring after July 25, 2006. Free state and federal tax filing for low income Disqualified person, Tax on Disqualified Persons, Disqualified Person Controlled entity, 35%, 35% controlled entity. Free state and federal tax filing for low income Family members, Family members. Free state and federal tax filing for low income Substantial influence, Persons not considered to have substantial influence. Free state and federal tax filing for low income Disregarded benefits, Disregarded benefits. Free state and federal tax filing for low income Donor advised funds, Donor advised fund transactions occurring after August 17, 2006. Free state and federal tax filing for low income , Exception. Free state and federal tax filing for low income Excise tax, Excise tax on excess benefit transactions. Free state and federal tax filing for low income Initial contracts, Special Exception for Initial Contracts Reasonable compensation, Reasonable Compensation. Free state and federal tax filing for low income Rebuttable presumption, Rebuttable presumption that a transaction is not an excess benefit transaction. Free state and federal tax filing for low income Excise tax Black lung benefit trust, Excise taxes. Free state and federal tax filing for low income Lobbying expenditures, Tax on excess expenditures to influence legislation. Free state and federal tax filing for low income , Tax on disqualifying lobbying expenditures. Free state and federal tax filing for low income Political expenditures, Excise taxes on political expenditures. Free state and federal tax filing for low income Private foundations, Excise taxes on private foundations. Free state and federal tax filing for low income , Excise Taxes on Private Foundations Exempt function, Political Organization Income Tax Return Exempt purposes, Section 501(c)(3) Organizations Exemption for terrorist organization, Non-exemption for terrorist organizations. Free state and federal tax filing for low income Extensions of time, Extensions of time for filing. Free state and federal tax filing for low income F Facts and circumstances test, Facts and circumstances test. Free state and federal tax filing for low income Fair market value, estimate of, Good faith estimate of fair market value (FMV). Free state and federal tax filing for low income Filing requirements, Annual Information Returns Annual information returns, Annual Information Returns Donee information return, Donee Information Return Due date, Political Organization Income Tax Return Employment tax, Employment Tax Returns Excise tax, Excise taxes on private foundations. Free state and federal tax filing for low income , Excise Taxes on Private Foundations Political organization, Political Organization Income Tax Return Private foundations, Form 990-PF Unrelated business income, Unrelated Business Income Tax Return Form 990-N, Annual Electronic Filing Requirement for Small Tax-Exempt Organizations Forms, Forms Required 1023, Forms Required, Administrative Remedies, 270-day period. Free state and federal tax filing for low income , Information required for subordinate organizations. Free state and federal tax filing for low income , Annual Information Return, Form 1023. Free state and federal tax filing for low income , Organizations Not Required To File Form 1023, Private Schools, When to file application. Free state and federal tax filing for low income , Lobbying Expenditures, Volunteer fire companies. Free state and federal tax filing for low income 1024, Forms Required, Application made under wrong paragraph of section 501(c). Free state and federal tax filing for low income , Annual Information Return, 501(c)(4) - Civic Leagues and Social Welfare Organizations, 501(c)(6) - Business Leagues, etc. Free state and federal tax filing for low income , 501(c)(7) - Social and Recreation Clubs, 501(c)(8) and 501(c)(10) - Fraternal Beneficiary Societies and Domestic Fraternal Societies, Fraternal Beneficiary Societies (501(c)(8)), Domestic Fraternal Societies (501(c)(10)), Local Employees' Associations (501(c)(4)), Voluntary Employees' Beneficiary Associations (501(c)(9)), Supplemental Unemployment Benefit Trusts (501(c)(17)), 501(c)(13) - Cemetery Companies, 501(c)(19) - Veterans' Organizations, 501(c)(20) - Group Legal Services Plan Organizations, 501(c)(2) - Title-Holding Corporations for Single Parent Corporations, 501(c)(25) - Title-Holding Corporations or Trusts for Multiple Parent Corporations 1040, Effect on employees. Free state and federal tax filing for low income 1065, Annual Information Returns 1120–POL, Political Organization Income Tax Return 1128, Central organizations. Free state and federal tax filing for low income 2848, Power of attorney. Free state and federal tax filing for low income , Representation. Free state and federal tax filing for low income 4720, Tax on excess expenditures to influence legislation. Free state and federal tax filing for low income 5578, Certification. Free state and federal tax filing for low income 5768, Making the election. Free state and federal tax filing for low income 6069, Tax treatment of donations. Free state and federal tax filing for low income 8274, FICA tax exemption election. Free state and federal tax filing for low income 8282, Dispositions of donated property. Free state and federal tax filing for low income 8283, Form 8283. Free state and federal tax filing for low income 8300, Report of Cash Received 8718, Forms Required, Power of attorney. Free state and federal tax filing for low income 8821, Representation. Free state and federal tax filing for low income 8871, Reporting Requirements for a Political Organization, Annual Information Return 8872, Reporting Requirements for a Political Organization, Annual Information Return 990, Keeping the Group Exemption Letter in Force, Forms 990 and 990-EZ, Annual Information Return, Making the election. Free state and federal tax filing for low income 990-BL, Annual Information Returns, 990-EZ, Forms 990 and 990-EZ, Form 990-EZ. Free state and federal tax filing for low income 990-PF, Form 990-PF, Excise taxes on private foundations. Free state and federal tax filing for low income , Excise Taxes on Private Foundations 990-T, Unrelated Business Income Tax Return SS-4, Required Inclusions, Employer identification number. Free state and federal tax filing for low income W–2, Revoking the election. Free state and federal tax filing for low income Fraternal beneficiary society, Fraternal Beneficiary Societies (501(c)(8)) Fraternal societies, Organizations subject to requirements. Free state and federal tax filing for low income , 501(c)(8) and 501(c)(10) - Fraternal Beneficiary Societies and Domestic Fraternal Societies Free tax services, Free help with your tax return. Free state and federal tax filing for low income Funeral benefit insurance, Burial and funeral benefit insurance organization. Free state and federal tax filing for low income G Gifts and contributions, public charity, Gifts, contributions, and grants distinguished from gross receipts. Free state and federal tax filing for low income Good faith determinations, What's New, New organization. Free state and federal tax filing for low income Governmental unit, Governmental units. Free state and federal tax filing for low income Grant Distinguished from gross receipts, Grants. Free state and federal tax filing for low income Exclusion for unusual grant, Unusual grants. Free state and federal tax filing for low income , Unusual grants. Free state and federal tax filing for low income From public charity, Grants from public charities. Free state and federal tax filing for low income , Grants from public charities. Free state and federal tax filing for low income Grantor and contributor, reliance on ruling, Reliance by grantors and contributors. Free state and federal tax filing for low income Gross receipts from nonmembership sources, Gross receipts from nonmembership sources. Free state and federal tax filing for low income Group exemption letter, Group Exemption Letter H Health coverage organization, 501(c)(26) - State-Sponsored High-Risk Health Coverage Organizations Help (see Tax help) High-risk health coverage organization, 501(c)(26) - State-Sponsored High-Risk Health Coverage Organizations Home for the aged, Home for the aged. Free state and federal tax filing for low income Homeowners' association, Homeowners' associations. Free state and federal tax filing for low income Horticultural organization, Agricultural and Horticultural Organizations Hospital, Hospital. Free state and federal tax filing for low income , Hospitals and medical research organizations. Free state and federal tax filing for low income I Inactive organization, Organizational Changes and Exempt Status Industrial development, Other organizations. Free state and federal tax filing for low income Instrumentalities, Instrumentalities. Free state and federal tax filing for low income Insurance, organizations providing, Organizations Providing Insurance L Labor organization, Organizations subject to requirements. Free state and federal tax filing for low income , Labor Organizations Law, public interest, Public-interest law firms. Free state and federal tax filing for low income Legislative activity, Lobbying Expenditures, Legislative activity. Free state and federal tax filing for low income Listed transaction, Prohibited tax shelter transaction. Free state and federal tax filing for low income Literary organizations, Literary Organizations Loans, organizations providing, Organization providing loans. Free state and federal tax filing for low income Lobbying expenditures, Lobbying Expenditures Local benevolent life insurance associations, Local Life Insurance Associations Local employees' association, Local Employees' Associations (501(c)(4)) Lodge system, Lodge system. Free state and federal tax filing for low income M Medical research organization, Medical research organization. Free state and federal tax filing for low income Medicare and Medicaid payments, Medicare and Medicaid payments. Free state and federal tax filing for low income Membership fee, Membership fees. Free state and federal tax filing for low income , Membership fees distinguished from gross receipts. Free state and federal tax filing for low income Modification of exemption, Revocation or Modification of Exemption Mutual financial organization, 501(c)(14) - Credit Unions and Other Mutual Financial Organizations Mutual or cooperative association, Mutual or Cooperative Associations N Nursing bureau, Community nursing bureau. Free state and federal tax filing for low income O One-third support test, One-third support test. Free state and federal tax filing for low income Organization assets, Dedication and Distribution of Assets Dedication, Dedication. Free state and federal tax filing for low income Distribution, Distribution. Free state and federal tax filing for low income Organizational changes, Organizational Changes and Exempt Status P Penalties, Penalties for failure to file. Free state and federal tax filing for low income Failure to allow public inspection, Penalties Failure to disclose, Penalty for failure to disclose. Free state and federal tax filing for low income , Penalties. Free state and federal tax filing for low income , Penalty. Free state and federal tax filing for low income Failure to file, Penalties for failure to file. Free state and federal tax filing for low income Perpetual care organization, Perpetual care organization. Free state and federal tax filing for low income Political activity, Dues Used for Lobbying or Political Activities, Political activity. Free state and federal tax filing for low income , Political activity. Free state and federal tax filing for low income Political organization Income tax return, Political Organization Income Tax Return Taxable income, Political Organization Income Tax Return Power of attorney, Power of attorney. Free state and federal tax filing for low income Preferred stock, Common and preferred stock. Free state and federal tax filing for low income Prevention of cruelty to children or animals, Prevention of Cruelty to Children or Animals Private delivery service, Private delivery service. Free state and federal tax filing for low income Private foundations, Private Foundations Private operating foundation, Private Operating Foundations Private school, Private Schools, Racially Nondiscriminatory Policy Prohibited tax shelter transactions Entity managers, Entity manager. Free state and federal tax filing for low income Entity managers excise tax, Manager Level Tax Listed transaction, Prohibited tax shelter transaction. Free state and federal tax filing for low income Prohibited reportable transactions, Prohibited tax shelter transaction. Free state and federal tax filing for low income Subsequently listed transaction, Subsequently listed transaction. Free state and federal tax filing for low income Tax-exempt entities, Tax-exempt entities. Free state and federal tax filing for low income Public charity Gifts and contributions, Gifts, contributions, and grants distinguished from gross receipts. Free state and federal tax filing for low income Grant from, Grants from public charities. Free state and federal tax filing for low income Section 509(a)(1), Section 509(a)(1) Organizations Section 509(a)(2), Section 509(a)(2) Organizations Section 509(a)(3), Section 509(a)(3) Organizations Section 509(a)(4), Section 509(a)(4) Organizations Support test, One-third support test. Free state and federal tax filing for low income , One-third support test. Free state and federal tax filing for low income Public inspection Annual return, Annual Information Return Exemption applications, Public Inspection of Exemption Applications, Annual Returns, and Political Organization Reporting Forms Forms 8871 and 8872, Public Inspection of Exemption Applications, Annual Returns, and Political Organization Reporting Forms Public-interest law firm, Public-interest law firms. Free state and federal tax filing for low income Publications (see Tax help) Publicly supported organization, Publicly supported organizations. Free state and federal tax filing for low income , Qualifying as Publicly Supported Attraction of public support, Attraction of public support requirement. Free state and federal tax filing for low income Ten-percent-of-support, Ten-percent-of-support requirement. Free state and federal tax filing for low income R Racial composition, How to determine racial composition. Free state and federal tax filing for low income Racially nondiscriminatory policy, Racially Nondiscriminatory Policy Real estate board, Real estate board. Free state and federal tax filing for low income Recognition of exemption, application, Application for Recognition of Exemption Religious organizations, Religious Organizations Requests other than applications, Miscellaneous Procedures Responsiveness test, Responsiveness test. Free state and federal tax filing for low income Revocation of exemption, Revocation or Modification of Exemption Ruling letter, Rulings and Determination Letters S Scholarship Private school, Scholarship and loan programs. Free state and federal tax filing for low income Scholarships, Scholarships. Free state and federal tax filing for low income School, private, Private Schools Scientific organizations, Scientific Organizations Section 501(c)(3) organizations Amateur athletic, Amateur Athletic Organizations Literary, Literary Organizations Prevention of cruelty, Prevention of Cruelty to Children or Animals Private foundations, Private Foundations and Public Charities Public charities, Public Charities Qualifications, Section 501(c)(3) Organizations Religious, Religious Organizations Scientific, Scientific Organizations Section 501(c)(3) Organizations Charitable, Charitable Organizations Educational, Educational Organizations and Private Schools Single entity, Single entity. Free state and federal tax filing for low income Social clubs, Organizations subject to requirements. Free state and federal tax filing for low income , 501(c)(7) - Social and Recreation Clubs Social welfare organization, Organizations subject to requirements. Free state and federal tax filing for low income , 501(c)(4) - Civic Leagues and Social Welfare Organizations Specified organizations, Specified organizations. Free state and federal tax filing for low income Sports organization, amateur, Qualified amateur sports organization. Free state and federal tax filing for low income State-sponsored, 501(c)(26) - State-Sponsored High-Risk Health Coverage Organizations High-risk health coverage organization, 501(c)(26) - State-Sponsored High-Risk Health Coverage Organizations Workers' compensation reinsurance organization, 501(c)(27) - Qualified State-Sponsored Workers' Compensation Organizations Stock or commodity exchange, Stock or commodity exchange. Free state and federal tax filing for low income Suggestions, Comments and suggestions. Free state and federal tax filing for low income Supplemental unemployment benefit trust, Supplemental Unemployment Benefit Trusts (501(c)(17)) Support, Support. Free state and federal tax filing for low income , Support from a governmental unit. Free state and federal tax filing for low income , Support from the general public. Free state and federal tax filing for low income Support test, One-third support test. Free state and federal tax filing for low income Facts and circumstances, Facts and circumstances test. Free state and federal tax filing for low income One-third, One-third support test. Free state and federal tax filing for low income Public charity, One-third support test. Free state and federal tax filing for low income Supporting organization, Supporting organization transactions occurring after July 25, 2006. Free state and federal tax filing for low income T Tax help, Technical advice, Appeals Office Consideration Testing for public safety, Section 509(a)(4) Organizations Title-holding corporation, 501(c)(2) - Title-Holding Corporations for Single Parent Corporations U Unemployment benefit trust, Supplemental Unemployment Benefit Trusts (501(c)(17)) Unrelated business income, Unrelated Business Income Tax Return Unusual grants, Unusual grants. Free state and federal tax filing for low income , Unusual grants. Free state and federal tax filing for low income User fee, Power of attorney. Free state and federal tax filing for low income , User fee. Free state and federal tax filing for low income V Veterans' organization, 501(c)(19) - Veterans' Organizations Voluntary employees' beneficiary association, Voluntary Employees' Beneficiary Associations (501(c)(9)) Volunteer fire company, Volunteer fire companies. Free state and federal tax filing for low income W War veterans' organization, 501(c)(19) - Veterans' Organizations Withdrawal of application, Withdrawal of application. Free state and federal tax filing for low income Withholding information from public, Requests for withholding of information from the public. Free state and federal tax filing for low income Work Opportunity Tax Credit, Expanded Work Opportunity Tax Credit Available for Hiring Qualified Veterans. Free state and federal tax filing for low income Workers' compensation reinsurance organization, 501(c)(27) - Qualified State-Sponsored Workers' Compensation Organizations Prev  Up     Home   More Online Publications
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The Free State And Federal Tax Filing For Low Income

Free state and federal tax filing for low income Publication 957 - Main Content Table of Contents 1. Free state and federal tax filing for low income What is Back Pay?Reporting Back Pay Back Pay Under a Statute Nonstatutory Back Pay Format for Report to the SSA Questions 2. Free state and federal tax filing for low income Special Wage PaymentsReporting Special Wage Payments Reporting Nonstatutory (Nonqualified) Stock Options as Special Wage Payments Nonqualified Deferred Compensation and Section 457 Plans Additional Reporting Examples for Nonqualified Deferred Compensation (NQDC) PlansSpecial rule for box 11 of Form W-2 (distributions and deferral in the same year). Free state and federal tax filing for low income 1. Free state and federal tax filing for low income What is Back Pay? Back pay is pay received in a tax year(s) for actual or deemed employment in an earlier tax year(s). Free state and federal tax filing for low income For social security coverage and benefit purposes, all back pay, whether or not under a statute, is wages if it is payment for covered employment. Free state and federal tax filing for low income Damages for personal injury, interest, penalties, and legal fees included with back pay awards are not wages. Free state and federal tax filing for low income Report all back pay. Free state and federal tax filing for low income However, the tax year(s) for which back pay is credited as wages for social security purposes is different if it is awarded under a statute. Free state and federal tax filing for low income See Back Pay Under a Statute , later, for more information. Free state and federal tax filing for low income Reporting Back Pay The Internal Revenue Service (IRS) and the SSA consider back pay awards to be wages. Free state and federal tax filing for low income However, for income tax purposes, the IRS treats all back pay as wages in the year paid. Free state and federal tax filing for low income Employers should use Form W-2, Wage and Tax Statement, or electronic wage reports to report back pay as wages in the year they actually pay the employee. Free state and federal tax filing for low income The SSA no longer accepts reports on tapes, cartridges, and diskettes. Free state and federal tax filing for low income Example. Free state and federal tax filing for low income In 2012, Terry Morris earned wages of $50,000. Free state and federal tax filing for low income In the same year, she received $100,000 in settlement of a back pay case against her employer that covered the periods January 2007 through December 2011. Free state and federal tax filing for low income Her employer properly reflected social security wages of $110,100 and Medicare wages of $150,000 on her 2012 Form W-2. Free state and federal tax filing for low income However, if an employer did not include back pay wages on a previously filed Form W-2, magnetic media, or electronically filed wage report, the employer should prepare a wage correction report, Form W-2c, Corrected Wage and Tax Statement, or electronically filed report, to add the back pay award to the wages previously reported. Free state and federal tax filing for low income Example. Free state and federal tax filing for low income If, in the above example, Terry Morris' employer had prepared her 2012 Form W-2 reporting social security and Medicare wages of only $50,000 each, the employer would have to correct that report. Free state and federal tax filing for low income A Form W-2c correcting the 2012 Form W-2 would show previously reported social security and Medicare wages of $50,000 and the correct amount of $110,100 for social security wages and $150,000 for Medicare wages. Free state and federal tax filing for low income SSA treatment of back pay under a statute. Free state and federal tax filing for low income   Under the law, the SSA credits back pay awarded under a statute to an individual's earnings record in the period(s) the wages should have been paid. Free state and federal tax filing for low income This is important because wages not credited to the proper year may result in lower social security benefits or failure to meet the requirements for benefits. Free state and federal tax filing for low income   However, back pay under statute payments will remain posted to the employee's social security earnings record in the year reported on Form W-2 (or Form W-2c) unless the employer or employee notifies the SSA (in a separate, special report) of the back pay under a statute payment. Free state and federal tax filing for low income Then, the SSA can allocate the statutory back pay to the appropriate periods. Free state and federal tax filing for low income   If a back pay award is not made under a statute, the SSA credits back pay as wages in the year paid. Free state and federal tax filing for low income    If employers do notify the SSA of this payment, they should prepare a special report (with the information noted below) and send it to: Social Security Administration Attn: CPS Back Pay Staff 7-B-15 SWT 1500 Woodlawn Drive Baltimore, MD 21241-0001 Be sure to send this special report to the above address because the SSA handles it separately from other reports. Free state and federal tax filing for low income    If you paid the back pay award in the same tax year to which it applies, report the wages on that year's Form W-2. Free state and federal tax filing for low income No further action is necessary. Free state and federal tax filing for low income Example. Free state and federal tax filing for low income In 2012, Judy Wilson received a salary of $30,000 and a back pay under statute award of $2,000 for the period January through June 2012. Free state and federal tax filing for low income Her employer properly reported wages of $32,000 for social security and Medicare on her 2012 Form W-2. Free state and federal tax filing for low income No further action is necessary. Free state and federal tax filing for low income Information the SSA needs to properly credit back pay under a statute (special report). Free state and federal tax filing for low income   After you complete the special report, you or the employee should send it to the SSA when or after you submit the Form W-2 (on paper or electronically) to the SSA for the year you pay the statutory back pay to the employee. Free state and federal tax filing for low income There is no statute of limitations on the filing of the special report to enable the SSA to allocate the wages. Free state and federal tax filing for low income The special report must include the following information. Free state and federal tax filing for low income The employer's name, address, and employer identification number (EIN). Free state and federal tax filing for low income A signed statement citing the federal or state statute under which the payment was made. Free state and federal tax filing for low income If the statute is not identified, the SSA will assume the payment was not under a statute and will not allocate to earlier period(s). Free state and federal tax filing for low income The name and telephone number of a person to contact. Free state and federal tax filing for low income The SSA may have additional questions concerning the back pay case or the individual employee's information. Free state and federal tax filing for low income A list of employees receiving the payment and the following information for each employee: The tax year you paid and reported the back pay. Free state and federal tax filing for low income The employee's social security number (SSN). Free state and federal tax filing for low income The employee's name (as shown on his or her social security card). Free state and federal tax filing for low income The amount of the back pay award excluding any amounts specifically designated otherwise, for example, damages for personal injury, interest, penalties, and legal fees. Free state and federal tax filing for low income The period(s) the back pay award covers (beginning and ending dates—month and year). Free state and federal tax filing for low income The other wages paid subject to social security and/or Medicare taxes and reported in the same year as the back pay award (if none, show zero)*. Free state and federal tax filing for low income Do not include the back pay award shown in that wage report. Free state and federal tax filing for low income If you originally submitted the report under an establishment number, show that number and the amount of money that is to remain under that establishment number. Free state and federal tax filing for low income The amount to allocate to each reporting period*. Free state and federal tax filing for low income This includes any amount you want allocated (if applicable) to the tax year of the award payment. Free state and federal tax filing for low income If you do not give the SSA specific amounts to allocate, the SSA does the allocation by dividing the back pay award by the number of months or years covered by the award. Free state and federal tax filing for low income *Note. Free state and federal tax filing for low income   For periods before January 1, 1978 (before January 1, 1981, for state and local government employers covered by a Section 218 agreement), show the wage amounts for each calendar quarter ending March 31, June 30, September 30, and December 31. Free state and federal tax filing for low income For all tax years, show and identify the social security and/or Medicare Qualified Government Employment (MQGE) wages (where applicable) separately. Free state and federal tax filing for low income MQGE is applicable to federal employees beginning in 1983, and for certain state and local government employees beginning in 1986. Free state and federal tax filing for low income For tax years 1991 and later, list the social security and Medicare wages separately. Free state and federal tax filing for low income If you originally reported the individual's wages under an establishment or payroll record unit number, show the amount of wages to remain in the award year for that number and furnish that number to the SSA along with the EIN. Free state and federal tax filing for low income Back Pay Under a Statute Back pay awarded under a statute is a payment by an employer following an award, determination, or agreement approved or sanctioned by a court or government agency responsible for enforcing a federal or state statute that protects an employee's right to employment or wages. Free state and federal tax filing for low income Examples of pertinent statutes include: Age Discrimination in Employment Act, Americans with Disabilities Act, Equal Pay Act, Fair Labor Standards Act, National Labor Relations Act, State minimum wage laws, and State statutes that protect rights to employment and wages. Free state and federal tax filing for low income Payments based on laws that have a similar effect to those listed above also may qualify as payments made under a statute. Free state and federal tax filing for low income Back pay awards, under some of the statutes listed above, may be compensation for personal injury and not pay for employment. Free state and federal tax filing for low income Such awards are not wages for social security coverage purposes. Free state and federal tax filing for low income If a court-approved or sanctioned settlement agreement states that the agreement is not an admission of discrimination, liability, or act of wrongdoing, the statement does not change the nature of a back pay award. Free state and federal tax filing for low income The payments made in such a settlement may still be back pay and wages under the rules discussed here. Free state and federal tax filing for low income Nonstatutory Back Pay A payment for back wages negotiated between an employer and employee without an award, determination, or agreement approved or sanctioned by a court or government agency, the payment is not made under a statute. Free state and federal tax filing for low income Delayed wage payments and retroactive pay increases resulting from union negotiation or payments under local ordinances or regulations are back pay and are wages. Free state and federal tax filing for low income However, they are not payments made under a statute. Free state and federal tax filing for low income If you are uncertain whether the back pay award was under a qualified statute, you may need to contact your personnel department or legal counsel or the attorney who filed the suit. Free state and federal tax filing for low income Format for Report to the SSA Use the format shown in Table 1, later, to send the SSA the information needed to properly credit back pay under a statute. Free state and federal tax filing for low income In a cover letter, include: Name and address of the employer, Statute under which you paid the back pay, Name and telephone number of the employer contact, and Signature of the reporting official. Free state and federal tax filing for low income Under certain circumstances, back pay may be a special wage payment and excluded from wages counted under the social security earnings test. Free state and federal tax filing for low income If you pay back pay to an employee age 61 or older, report it to the SSA in accordance with this section. Free state and federal tax filing for low income Read Special Wage Payments, later, for additional reporting instructions. Free state and federal tax filing for low income Questions If you have questions concerning back pay under a statute, call the SSA at 1-800-772-6270. Free state and federal tax filing for low income Exception. Free state and federal tax filing for low income   If you are a state or local government employer who was covered by an agreement under Section 218 of the Social Security Act before January 1, 1987, and you paid a back pay award before January 1, 1987, which you did not report to the SSA, contact your state Social Security Administrator's office. Free state and federal tax filing for low income Table 1. Free state and federal tax filing for low income Format for Report (Under Covering Letter) to Request SSA to Allocate Back Pay Under Statute Wages Employer's EIN: xx-xxxxxxx Tax Year in Which Award Payment Was Paid: 2012 (1) SSN and Employee Name (2)1 Award Amount and Period(s) (3)2,3 Other Soc. Free state and federal tax filing for low income Sec. Free state and federal tax filing for low income /Med. Free state and federal tax filing for low income Wages Paid In Award Year (4)3 Allocation     Soc. Free state and federal tax filing for low income Sec. Free state and federal tax filing for low income Med. Free state and federal tax filing for low income /MQGE Year Soc. Free state and federal tax filing for low income Sec. Free state and federal tax filing for low income Med. Free state and federal tax filing for low income /MQGE xxx-xx-xxxx HELEN T. Free state and federal tax filing for low income SMITH $100,000 1/2009 - 12/2012 $40,000 $40,000 2009 2010 2011 2012 $20,000 25,000 27,000 28,000 $20,000 25,000 27,000 28,000 xxx-xx-xxxx SAM W. Free state and federal tax filing for low income EVANS 30,000 7/89-12/91 -0- -0- 1989 1990 1991   6,000 12,000 12,000 xxx-xx-xxxx ROLAND S. Free state and federal tax filing for low income ADAMS 15,000 7/80-12/81 -0- -0- 9/80 12/80 1981 3,500 3,500 8,000   1Exclude amounts specifically designated as damages, penalties, etc. Free state and federal tax filing for low income  2Exclude the amount of back pay, if any, included in that amount. Free state and federal tax filing for low income  3For periods before January 1, 1978 (and for state and local government (Section 218) employers before January 1, 1981), show the wage amounts by calendar quarters. Free state and federal tax filing for low income The social security and/or Medicare Qualified Government Employment (MQGE) wages (where applicable) must be shown separately FOR ALL YEARS. Free state and federal tax filing for low income (Wages subject ONLY to MQGE would be shown in the Medicare/MQGE column; no wages would be shown in the Soc. Free state and federal tax filing for low income Sec. Free state and federal tax filing for low income column. Free state and federal tax filing for low income ) For tax years 1991 and later, the social security and Medicare wages must be listed separately. Free state and federal tax filing for low income Explanation of examples. Free state and federal tax filing for low income Helen T. Free state and federal tax filing for low income Smith–The back pay award, excluding interest, was $100,000 for the periods 1/2009-12/2012. Free state and federal tax filing for low income In 2012, this employee was also paid $40,000 in other wages. Free state and federal tax filing for low income (Her Form W-2 for 2012 reported $110,100 for social security and $140,000 for Medicare. Free state and federal tax filing for low income The SSA allocation will result in adjusted posted wages of $68,000 for social security and $68,000 for Medicare for 2012. Free state and federal tax filing for low income ) Sam W. Free state and federal tax filing for low income Evans–The back pay award was $30,000 for the periods 7/89-12/91. Free state and federal tax filing for low income This employee was hired in 1989 and was subject to MQGE only. Free state and federal tax filing for low income He was no longer employed by this governmental employer in 2012. Free state and federal tax filing for low income (His Form W-2 for 2012 reported $30,000 for social security and $30,000 for Medicare. Free state and federal tax filing for low income After the SSA allocation, he will not have any net posted wages for 2012. Free state and federal tax filing for low income ) Roland S. Free state and federal tax filing for low income Adams–The back pay award was $15,000 for the periods 7/80-12/81. Free state and federal tax filing for low income He was no longer employed by this state and local government (Section 218) employer in 2012. Free state and federal tax filing for low income (His Form W-2 for 2012 reported $15,000 for social security and $15,000 for Medicare; after the SSA allocation, he will not have any net posted wages for 2012. Free state and federal tax filing for low income ) If the state Social Security Administrator's office needs more information, they can contact the SSA at the following address:   Social Security Administration Office of Income Security Programs Office of Earnings and Program Integrity Policy 6401 Security Boulevard 2506 OPS Baltimore, MD 21235 2. Free state and federal tax filing for low income Special Wage Payments A special wage payment (SWP) is an amount paid by an employer to an employee (or former employee) for services performed in a prior year. Free state and federal tax filing for low income Employers should report to the SSA special wage payments made to employees and former employees who are recipients of social security retirement benefits. Free state and federal tax filing for low income Special wage payments made to a retired employee receiving social security or to an employee who continues to work while receiving social security benefits may reduce the benefits the individual receives if not reported to the SSA. Free state and federal tax filing for low income Special wage payments may include (but are not limited to): Accumulated sick and vacation pay, Back pay, Bonuses, Deferred compensation, Payments because of retirement, Sales commissions, Severance pay, and Stock options. Free state and federal tax filing for low income Note. Free state and federal tax filing for low income Payments made after retirement that are part of the normal payroll cycle should not be routinely reported as special wage payments. Free state and federal tax filing for low income Earnings Test. Free state and federal tax filing for low income   Benefits paid to a social security beneficiary under full retirement age may be reduced if the beneficiary continues to work. Free state and federal tax filing for low income The SSA uses the information in boxes 1, 3, and 5 of Form W-2 to determine the beneficiary's current year earnings. Free state and federal tax filing for low income Special wage payments, which are for services performed in a prior year, will increase the current year earnings on Form W-2, which also may result in a reduction in the beneficiary's benefits. Free state and federal tax filing for low income If a benefit is reduced because of a special wage payment, the beneficiary must get documentation from the employer before the SSA can restore the deducted portion. Free state and federal tax filing for low income Therefore, employer reports of special wage payments help prevent incorrect benefit reductions. Free state and federal tax filing for low income Reporting Special Wage Payments Employers must report special wage payments for income tax purposes and social security and Medicare taxes in the year received. Free state and federal tax filing for low income Report income, social security, and/or Medicare taxes for special wage payments on Form W-2. Free state and federal tax filing for low income See Nonqualified Deferred Compensation and Section 457 Plans, later, for reporting nonqualified deferred compensation plan deferrals and payments on Form W-2. Free state and federal tax filing for low income In addition, report to the SSA special wage payments made during the reporting year to retired employees and employees who continue to work while receiving social security benefits. Free state and federal tax filing for low income Submit reports after the close of the tax year. Free state and federal tax filing for low income To avoid delays in processing, submit reports in time to reach the SSA by April 1. Free state and federal tax filing for low income Use one of the following reporting methods. Free state and federal tax filing for low income Electronic reporting. Free state and federal tax filing for low income   Special wage payment files can be sent electronically by logging onto Business Services Online (BSO) via the socialsecurity. Free state and federal tax filing for low income gov website. Free state and federal tax filing for low income BSO enables organizations and authorized individuals to conduct business with and submit confidential information to the Social Security Administration. Free state and federal tax filing for low income You must register to use this website. Free state and federal tax filing for low income The web address is www. Free state and federal tax filing for low income socialsecurity. Free state and federal tax filing for low income gov/bso/bsowelcome. Free state and federal tax filing for low income htm. Free state and federal tax filing for low income   Use the specifications and record layout shown in  Table 2, later. Free state and federal tax filing for low income Only one file at a time may be submitted. Free state and federal tax filing for low income If your file is large (>10MB), or you have a slow internet connection, the transmission will be faster if the file is zipped. Free state and federal tax filing for low income A zipped file contains a file that has been compressed to reduce its file size. Free state and federal tax filing for low income WinZip and PKZIP are examples of acceptable compression packages. Free state and federal tax filing for low income   Electronic submissions not meeting the specifications in Table 2 will be rejected. Free state and federal tax filing for low income Paper listing. Free state and federal tax filing for low income   A paper listing can be used to report special wage payments to several employees. Free state and federal tax filing for low income Use the format shown in Table 3, later. Free state and federal tax filing for low income Submit paper listings to the local SSA office nearest your place of business. Free state and federal tax filing for low income Visit www. Free state and federal tax filing for low income socialsecurity. Free state and federal tax filing for low income gov/locator to find a Social Security office near you. Free state and federal tax filing for low income Form SSA-131. Free state and federal tax filing for low income   Use Form SSA-131 to report special wage payments made to an employee. Free state and federal tax filing for low income Also use this form to report nonqualified deferred compensation and section 457 plan deferrals and payments that could not be reported in box 11 of Form W-2. Free state and federal tax filing for low income    This image is too large to be displayed in the current screen. Free state and federal tax filing for low income Please click the link to view the image. Free state and federal tax filing for low income Publication 957 Reporting Back Pay to the Social Security Administration Instructions for Form SSA–131   EMPLOYER INSTRUCTIONS FOR COMPLETING SPECIAL WAGE PAYMENT FORM 1. Free state and federal tax filing for low income Provide the EIN that was used or will be used to report the employee's wages on the Form W-2. Free state and federal tax filing for low income 2. Free state and federal tax filing for low income Enter the date the employee retired. Free state and federal tax filing for low income Enter “Not Retired” if the employee has not retired. Free state and federal tax filing for low income 3. Free state and federal tax filing for low income Enter the date that the employee last performed services; was not expected to return to work; and was not subject to recall to render additional services. Free state and federal tax filing for low income This date should be the same as or earlier than the date in item “2”. Free state and federal tax filing for low income Enter “Not Retired” if the employee has not retired. Free state and federal tax filing for low income 4. Free state and federal tax filing for low income Enter the wages that were paid to the employee in the tax year that were for services that were performed in years prior to the tax year or that were paid on account of retirement. Free state and federal tax filing for low income  Examples (not all inclusive) of payments to be included: Payments in lieu of vacation that were earned in a year prior to the tax year. Free state and federal tax filing for low income Accumulated sick payments which were paid in a lump sum based on “retirement” as the sole condition of payment. Free state and federal tax filing for low income Accumulated sick payments paid at or after the date in item 3, which were earned in a year prior to the tax year. Free state and federal tax filing for low income Payments “on account of retirement”–dismissal, severance or termination pay paid because of retirement. Free state and federal tax filing for low income Bonuses which are paid pursuant to a prior contract, agreement or promise causing the employee to expect such payments regularly; or announced to induce the employee to work more steadily, rapidly or efficiently or to remain with the employer. Free state and federal tax filing for low income Stock Options. Free state and federal tax filing for low income   Do not include in item “4” payments: For annual, sick, holiday, or vacation pay if used (absence from work) prior to the date of retirement (earlier of items “2” or “3”). Free state and federal tax filing for low income That were reported or will be reported under “Nonqualified Plans” on the Form W-2. Free state and federal tax filing for low income That were deducted from the employee's wages and paid to a deferred compensation plan (e. Free state and federal tax filing for low income g. Free state and federal tax filing for low income , 401k). Free state and federal tax filing for low income Employees health and dental plan benefits (non-covered/non-taxable for Social Security Wages). Free state and federal tax filing for low income Bonuses earned and paid in the tax year. Free state and federal tax filing for low income 5. Free state and federal tax filing for low income Check whether payments listed in item 4 will be made for years after the tax year. Free state and federal tax filing for low income If yes, please show the amounts and years in which these will be paid, if known. Free state and federal tax filing for low income 6. Free state and federal tax filing for low income Nonqualified deferred compensation and section 457 plans only. Free state and federal tax filing for low income If you were unable to report nonqualified deferred compensation or section 457 plan payments and deferrals (contributions) on Form W-2 because both payments and deferrals occurred during the year, show the amount of wages earned by the employee during the tax year. Free state and federal tax filing for low income Generally, the wages earned will be the compensation reported in block 1 of Form W-2 less payments from a nonqualified deferred compensation (or 457) plan, but including any amounts deferred under the plan during the tax year (See IRS Publication 957). Free state and federal tax filing for low income Paperwork/Privacy Act Notice: This report is authorized by regulation 20 CFR 404. Free state and federal tax filing for low income 702. Free state and federal tax filing for low income The information that you provide will be used in making a determination regarding the amount of Social Security benefits payable to the above named individual. Free state and federal tax filing for low income While your response is voluntary, if you do not respond we may not be able to make a correct determination regarding the amount of Social Security benefits payable to the above named individual for the year in question. Free state and federal tax filing for low income We may also use the information you give us when we match records by computer. Free state and federal tax filing for low income Matching programs compare our records with those of other Federal, State, or local government agencies. Free state and federal tax filing for low income Many agencies may use matching programs to find or prove that a person qualifies for benefits paid by the Federal Government. Free state and federal tax filing for low income The law allows us to do this even if you do not agree to it. Free state and federal tax filing for low income Explanations about these and other reasons why information you provide us may be used or given out are available in Social Security Offices. Free state and federal tax filing for low income If you want to learn more about this, contact any Social Security Office. Free state and federal tax filing for low income The Paperwork Reduction Act: This information collection meets the clearance requirements of 44 U. Free state and federal tax filing for low income S. Free state and federal tax filing for low income C. Free state and federal tax filing for low income §3507, as amended by Section 2 of the Paperwork Reduction Act of 1995. Free state and federal tax filing for low income You are not required to answer these questions unless we display a valid Office of Management and Budget control number. Free state and federal tax filing for low income We estimate that it will take you about 20 minutes to read the instructions, gather the necessary facts, and answer the questions. Free state and federal tax filing for low income Form SSA-131 (8-2001) EF (06-2002)   Submit Form SSA-131 to the SSA office nearest your place of business. Free state and federal tax filing for low income Or, the employee can submit it to the SSA office handling the claim. Free state and federal tax filing for low income You or the employee must submit this form before the SSA can exclude the special wage payments for purposes of the earnings test. Free state and federal tax filing for low income If reporting on more than one employee, complete a separate Form SSA-131 for each employee or use the paper listing format (except for reporting nonqualified and section 457 plan deferrals and payments) in Table 3. Free state and federal tax filing for low income Do not report payments from nonqualified deferred compensation or section 457 plans that were reported in box 11 of Form W-2. Free state and federal tax filing for low income Use Form SSA-131 if deferrals to and payments from nonqualified or section 457 plans occurred during the tax year. Free state and federal tax filing for low income Reporting Nonstatutory (Nonqualified) Stock Options as Special Wage Payments A nonstatutory (nonqualified) option to purchase stock which is exercised in a year after the year in which the option was earned is a special wage payment. Free state and federal tax filing for low income It should not count for the social security earnings test. Free state and federal tax filing for low income Nonstatutory (nonqualified) options exercised as special wage payments by retired employees or employees who continue to work while receiving social security benefits should be reported by employers using the above reporting methods. Free state and federal tax filing for low income Nonqualified Deferred Compensation and Section 457 Plans A nonqualified deferred compensation plan is a plan or arrangement established and maintained by an employer for one or more of its employees that provides for the deferral of compensation, but does not meet the requirements for a tax-qualified deferred compensation plan. Free state and federal tax filing for low income For social security and Medicare purposes, deferred compensation plans for employees of state and local governments (section 457 plans) are treated the same as nonqualified plans. Free state and federal tax filing for low income Nonqualified and section 457 plans are reported differently than other special wage payments. Free state and federal tax filing for low income See Reporting Amounts Deferred to Nonqualified and Section 457 Plans below for specific instructions. Free state and federal tax filing for low income Reporting Amounts Deferred to Nonqualified and Section 457 Plans Generally, when the related services are performed, nonqualified deferred compensation is subject to social security and Medicare tax when deferred. Free state and federal tax filing for low income However, if nonqualified and section 457 plans contain provisions that delay the employee's right to receive payments from the plan, a period of substantial risk of forfeiture exists. Free state and federal tax filing for low income The plans' deferrals, or contributions, are not subject to social security and Medicare taxes until the period of substantial risk of forfeiture ends. Free state and federal tax filing for low income No risk of forfeiture. Free state and federal tax filing for low income   If there is no risk of forfeiture, report wage amounts deferred to a nonqualified deferred compensation or section 457 plan in box 3 (up to the wage base maximum) and/or box 5 of Form W-2. Free state and federal tax filing for low income Example. Free state and federal tax filing for low income Company X's nonqualified deferred compensation plan allows the deferral of up to $20,000 of employee salaries each year. Free state and federal tax filing for low income The plan has no risk of forfeiture. Free state and federal tax filing for low income In 2012, Employee A defers $20,000 to the plan from a total salary of $200,000. Free state and federal tax filing for low income Form W-2 Completion Amount Box 1 $200,000 Box 3* 110,100 Box 5 200,000 *Wage base maximum for tax year 2012 Risk of forfeiture lapses before retirement. Free state and federal tax filing for low income   If the substantial risk of forfeiture lapses before the employee retires, report all past contributions to the plan (or the value of the plan), including accumulated earned interest, in box 3 (up to the wage base maximum) and/or box 5 of Form W-2. Free state and federal tax filing for low income The accumulated deferrals are reported along with any other social security and Medicare wages earned during the year. Free state and federal tax filing for low income   Report in box 11 of Form W-2 the amount of deferrals, including any accumulated interest, that became taxable for social security and Medicare taxes during the year (but were for prior year services) because the deferred amounts were no longer subject to a substantial risk of forfeiture. Free state and federal tax filing for low income If the employee continues working, future deferrals are social security and Medicare wages when they are earned. Free state and federal tax filing for low income    Do not include in box 11 deferrals that are included in boxes 3 and/or 5 and that are for current year services. Free state and federal tax filing for low income Risk of forfeiture lapses at retirement. Free state and federal tax filing for low income   When an employee's right to a payment is contingent upon working until retirement, report all past contributions to the plan (or the value of the plan), including accumulated earned interest, as social security and/or Medicare wages in the year of retirement. Free state and federal tax filing for low income Add the amount to other wages paid in that year, and enter in box 3 (up to the wage base maximum) and/or box 5 of Form W-2. Free state and federal tax filing for low income   Report in box 11 of Form W-2 the amount of deferrals, including any accumulated interest, that became taxable for social security and Medicare taxes during the year (but were for prior year services) because the deferred amounts were no longer subject to a substantial risk of forfeiture. Free state and federal tax filing for low income    Do not include in box 11 deferrals that are included in boxes 3 and/or 5 and that are for current year services. Free state and federal tax filing for low income Example—risk of forfeiture. Free state and federal tax filing for low income At the end of the risk-of-forfeiture period for Company Y's nonqualified deferred compensation plan, Employee B's accumulated deferrals, plus interest earned by the plan, are $120,000, not including B's $20,000 deferral for this year. Free state and federal tax filing for low income B's wages, including this year's deferred amount, are $80,000. Free state and federal tax filing for low income Form W-2 Completion Amount Box 1 $60,000 Box 3* 110,100 Box 5 200,000 Box 11 120,000 *Wage base maximum for tax year 2012 Reporting Payments From Nonqualified and Nongovernmental Section 457 Plans When an employee or former employee retires and begins receiving payments (distributions) from a nonqualified or nongovernmental section 457 plan, report the payments in boxes 1 and 11 of Form W-2. Free state and federal tax filing for low income Report payments (distributions) from a governmental section 457 plan on Form 1099-R, Distributions from Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. Free state and federal tax filing for low income Example. Free state and federal tax filing for low income Employee D retired from the XYZ company and began receiving social security benefits. Free state and federal tax filing for low income XYZ paid D a $12,000 bonus upon retirement for sales made in a prior year, and D received $25,000 in payments from XYZ's nonqualified deferred compensation plan. Free state and federal tax filing for low income In addition, D agreed to continue performing services for XYZ, but on a part-time basis for wages of $15,000 per year. Free state and federal tax filing for low income D made no deferrals to the nonqualified plan this year. Free state and federal tax filing for low income Form W-2 Completion Amount Box 1 $52,000 Box 3 27,000 Box 5 27,000 Box 11 25,000 Report the $12,000 bonus to the SSA using electronic reporting, a paper listing, or Form SSA-131. Free state and federal tax filing for low income For more information, see Reporting Special Wage Payments , earlier. Free state and federal tax filing for low income Reporting Payments and Deferrals in the Same Year Do not complete box 11 when payments (distributions) are made from a nonqualified plan and deferrals are reported in boxes 3 and/or 5 of Form W-2 (including current year deferrals). Free state and federal tax filing for low income Report to the SSA on Form SSA-131 the total amount the employee earned during the tax year. Free state and federal tax filing for low income Normally, the amount earned is the amount reported in box 1 of Form W-2 less payments from a nonqualified or section 457 plan, but including any amounts deferred under the plan during the tax year. Free state and federal tax filing for low income See Form SSA-131 and its instructions, earlier. Free state and federal tax filing for low income Example. Free state and federal tax filing for low income Employee K retired this year from Company XYZ and began receiving social security benefits. Free state and federal tax filing for low income During the year he earned wages of $50,000 and deferred $35,000 of the wages into the company's nonqualified deferred compensation plan. Free state and federal tax filing for low income K also received $75,000 in payments from the company's nonqualified plan. Free state and federal tax filing for low income Form W-2 Completion Amount Special Wage Payment $75,000 Wages 50,000 Minus: deferral 35,000 Total reported in Box 1 $90,000     Wages including deferral reported in  Boxes 3 and 5 $50,000     Leave Box 11 blank. Free state and federal tax filing for low income File Form SSA-131 -0-     Form SSA-131 Completion Amount from Box 1 of Form W-2 $90,000 Minus: payments from a nonqualified plan 75,000 Plus: amounts deferred into the plan during the year 35,000 Total wages earned for purposes of Form SSA-131 (item 6) $50,000 Additional Reporting Examples for Nonqualified Deferred Compensation (NQDC) Plans It is not necessary to show amounts deferred during the year under an NQDC plan subject to section 409A. Free state and federal tax filing for low income If you report section 409A deferrals, show the amount in box 12 of Form W-2 using code Y. Free state and federal tax filing for low income For more information, see Notice 2008-115, 2008-52 I. Free state and federal tax filing for low income R. Free state and federal tax filing for low income B. Free state and federal tax filing for low income 1367, available at www. Free state and federal tax filing for low income irs. Free state and federal tax filing for low income gov/irb/2008-52_IRB/ar10. Free state and federal tax filing for low income html. Free state and federal tax filing for low income Special reporting rules apply when an NQDC plan is not compliant with section 409A (when there has been a “plan failure”). Free state and federal tax filing for low income Income included under section 409A from an NQDC plan is reported in box 1 and box 12 of Form W-2 using code Z. Free state and federal tax filing for low income See Notice 2008-115. Free state and federal tax filing for low income The following examples use small dollar amounts for illustrative purposes. Free state and federal tax filing for low income However, the amount reported in box 3 of Form W-2 is always limited by the social security earnings wage base (for example, $110,100 for 2012). Free state and federal tax filing for low income The term “vested” in the following examples means that the amount deferred is not subject to a substantial risk of forfeiture. Free state and federal tax filing for low income Conversely, the term “not vested” means that the amount deferred is subject to a substantial risk of forfeiture. Free state and federal tax filing for low income The examples assume that the NQDC plan is in compliance with section 409A, and that amounts deferred under the plan are not includible in gross income as they are deferred. Free state and federal tax filing for low income For purposes of the examples, it is assumed that the regular pay of the employee is remuneration for employment and wages for employment tax purposes except to the extent the deferral of a portion of the regular pay results in a reduction in wages. Free state and federal tax filing for low income Example 1: Deferral that is immediately vested (no substantial risk of forfeiture) with no distributions and no vesting of prior-year deferrals. Free state and federal tax filing for low income For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into her employer’s NQDC plan. Free state and federal tax filing for low income The deferral of $20 was vested upon deferral and there was an employer match of $10 under the plan, which was also vested. Free state and federal tax filing for low income Regular pay = $200; Deferral, vested = $20; Employer match, vested = $10. Free state and federal tax filing for low income Form W-2 Completion Amount Box 1 ($200 Regular pay minus $20 vested deferral) $180 Box 3 ($200 Regular pay plus $10 Employer match, vested) 210 Box 5 ($200 Regular pay plus $10 Employer match, vested) 210 Box 11 -0- Example 2: Deferral with delayed vesting (substantial risk of forfeiture) of employee and employer portions (no distributions and no vesting of prior-year deferrals). Free state and federal tax filing for low income For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into the employer’s nonqualified deferred compensation plan. Free state and federal tax filing for low income The deferral of $20 was not vested upon deferral, and there was an employer match of $10 under the plan, which was also not vested. Free state and federal tax filing for low income Regular pay = $200; Deferral, not vested = $20; Employer match, not vested = $10. Free state and federal tax filing for low income Form W-2 Completion Amount Box 1 ($200 Regular pay minus $20 Deferral, not vested) $180 Box 3 ($200 Regular pay minus $20 Deferral, not vested) 180 Box 5 ($200 Regular pay minus $20 Deferral, not vested) 180 Box 11 -0- Example 3: Deferral that is immediately vested with prior-year deferrals and investment earnings on the prior-year deferrals that are now vesting (no distributions). Free state and federal tax filing for low income For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into the employer’s nonqualified deferred compensation plan. Free state and federal tax filing for low income The deferral of $20 was vested upon deferral. Free state and federal tax filing for low income During the year, $100 of prior-year deferrals and $15 of investment earnings on the $100 of prior-year deferrals became vested. Free state and federal tax filing for low income Regular pay = $200; Deferral, vested = $20; Vesting of prior-year deferrals = $100; Vesting of investment earnings on $100 of prior-year deferral = $15. Free state and federal tax filing for low income Form W-2 Completion Amount Box 1 ($200 Regular pay minus $20 Deferral, vested) $180 Box 3 ($200 Regular pay plus $100 vested prior-year deferral plus $15 earnings on deferral) 315 Box 5 ($200 Regular pay plus $100 vested prior-year deferral plus $15 vested investment earnings on prior year deferral) 315 Box 11 ($100 vested prior-year deferral plus $15 earnings) 115 Example 4: No deferrals but there are distributions (no vesting of prior-year deferrals). Free state and federal tax filing for low income For the year, the employee’s regular pay was $100, and the employee deferred no pay into the employer’s NQDC plan. Free state and federal tax filing for low income There was no vesting of prior-year deferrals under the plan. Free state and federal tax filing for low income During the year, there were total distributions of $50 from the plan to the employee. Free state and federal tax filing for low income Regular pay = $100; Distribution = $50. Free state and federal tax filing for low income Form W-2 Completion Amount Box 1 ($100 Regular pay plus $50 Distribution) $150 Box 3 ($100 Regular pay ) 100 Box 5 ($100 Regular pay) 100 Box 11 ($50 Distribution) 50 Special rule for box 11 of Form W-2 (distributions and deferral in the same year). Free state and federal tax filing for low income   If, in the same year, there are NQDC distributions and there are deferrals that are reportable in boxes 3 and/or 5 (current or prior-year deferrals) of Form W-2, do not complete box 11. Free state and federal tax filing for low income Instead, report on Form SSA-131 the total amount the employee earned during the year. Free state and federal tax filing for low income * Submit the SSA-131 to the nearest SSA office or give it to the employee. Free state and federal tax filing for low income   *Generally, the amount earned by the employee during the tax year for purposes of item 6 of Form SSA-131 is the amount reported in box 1 of Form W-2 plus current-year deferrals that are vested (employee and employer portions) less distributions. Free state and federal tax filing for low income Do not consider prior-year deferrals that are vesting in the current year. Free state and federal tax filing for low income If there was a plan failure, the box 1 amount in this calculation should be as if there were no plan failure. Free state and federal tax filing for low income Example 5: Deferral that is immediately vested and there are distributions (no vesting of prior-year deferrals). Free state and federal tax filing for low income For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into the employer’s NQDC plan. Free state and federal tax filing for low income There was also an employer match of $10. Free state and federal tax filing for low income The deferral and employer match were vested upon deferral. Free state and federal tax filing for low income There was no vesting of prior-year deferrals under the plan. Free state and federal tax filing for low income During the year, there were total distributions of $50 from the plan to the employee. Free state and federal tax filing for low income Regular pay = $200; Deferral, vested = $20; Employer match, vested = $10; Distribution = $50. Free state and federal tax filing for low income Form W-2 Completion Amount Box 1 ($50 Special Wage Payment (Distribution) plus $200 Regular pay minus $20 Deferral, vested) $230 Boxes 3 and 5 ($200 Regular pay plus $10 vested employer match) 210 Leave Box 11 blank. Free state and federal tax filing for low income File Form SSA-131 -0-     Form SSA-131 Completion Item 6 - amount of wages earned by the employee during the tax year ($230 from Box 1 of Form W-2 minus $50 Distribution plus $30 vested current year employee deferral and employer match) $210 Example 6: Deferral with delayed vesting and there are distributions (no vesting of prior-year deferrals). Free state and federal tax filing for low income For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into the employer’s NQDC plan. Free state and federal tax filing for low income The deferral was not vested upon deferral. Free state and federal tax filing for low income There was no vesting of prior-year deferrals under the plan. Free state and federal tax filing for low income During the year, there were total distributions of $50 from the plan to the employee. Free state and federal tax filing for low income Regular pay = $200; Deferral, not vested = $20; Distribution = $50. Free state and federal tax filing for low income Form W-2 Completion Amount Box 1 ($50 Special Wage Payment (Distribution) plus $200 Regular pay minus $20 Deferral, not vested) $230 Boxes 3 and 5 ($200 Regular pay minus $20 deferral that is not vested) 180 Box 11 ($50 Distribution). Free state and federal tax filing for low income 50 Example 7: Deferral that is immediately vested and there are distributions (also vesting of prior-year deferrals and earnings on those prior-year deferrals). Free state and federal tax filing for low income For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into the employer’s NQDC plan. Free state and federal tax filing for low income The deferral was vested upon deferral. Free state and federal tax filing for low income There was vesting of $100 of prior-year deferrals and $15 of earnings on the $100 prior-year deferral under the plan. Free state and federal tax filing for low income During the year, there were total distributions of $50 from the plan to the employee. Free state and federal tax filing for low income Regular pay = $200; Deferral, vested = $20; Distribution = $50; Vesting of prior-year deferrals ($100) and earnings on those prior-year deferrals ($15) = $115. Free state and federal tax filing for low income Form W-2 Completion Amount Box 1 ($50 Special Wage Payment (Distribution) plus $200 Regular pay minus $20 vested deferral $230 Boxes 3 and 5 ($200 Regular pay Plus $115 vested prior deferral (with vested earnings on the deferral)) 315 Leave Box 11 blank. Free state and federal tax filing for low income File Form SSA-131 -0-     Form SSA-131 Completion Item 6, amount of wages earned by the employee during the tax year ($230 from Box 1 of Form W-2 minus $50 Distribution plus $20 vested current year deferral) $200 Example 8: Deferral with delayed vesting and there are distributions (vesting of prior-year deferrals, including employer matches, and earnings on those deferrals). Free state and federal tax filing for low income For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into the employer’s NQDC plan. Free state and federal tax filing for low income The deferral was not vested upon deferral. Free state and federal tax filing for low income There was also vesting of prior-year deferrals and employer matches and earnings on these amounts under the plan ($115). Free state and federal tax filing for low income During the year, there were total distributions of $50 from the plan to the employee. Free state and federal tax filing for low income Regular pay = $200; Deferral, not vested = $20; Distribution = $50; Vesting of prior-year deferrals and employer match = $100 plus earnings on that $100 of $15. Free state and federal tax filing for low income Form W-2 Completion Amount Box 1 ($50 Special Wage Payment (Distribution) plus $200 regular pay minus $20 Deferral, not vested) $230 Boxes 3 and 5 ($200 Regular pay plus $115 vested prior-year deferral and prior year employer match and earning on the prior year amounts minus $20 deferral that is not vested) 295 Leave Box 11 blank. Free state and federal tax filing for low income File Form SSA-131 -0-     Form SSA-131 Completion Item 6 ($230 Amount from Box 1 of Form W-2 minus $50 Distribution) $180 Table 2. Free state and federal tax filing for low income Specifications for Electronic Reporting of Special Wage Payments Record Position  Field Size   Description Start End 1 3 3 Record Type—must include only the capital letters “SWP” 4 12 9 SSN—must be numeric and may not be all zeros 13 27 15 Last Name—all capitals and no punctuation; may have blanks on right only 28 38 11 First Name—all capitals and no punctuation; may have blanks on right only 39 39 1 Middle Initial—must be either a capital letter or blank 40 48 9 EIN—must be numeric and may not be all zeros 49 59 11 Payment—must be numeric; may not be all zeros; last two digits on right are assumed to be cents; no period or dollar sign 60 63 4 Payment Year—must be only a four-digit year 64 66 3 SSA Office Code—must be numeric and may be all zeros 67 67 1 Payment Type Code—must be the capital letter “T” 68 117 50 Filler  The record format is a fixed length of 117. Free state and federal tax filing for low income  The file format is ASCII. Free state and federal tax filing for low income  Submit only one file at a time. Free state and federal tax filing for low income   Table 3. Free state and federal tax filing for low income Sample—Paper Listing for Reporting Special Wage Payments to Several Employees Report of Special Wage PaymentsTax Year: Page of A. Free state and federal tax filing for low income Employer Name: EIN:   Address: Contact Name:     Phone: ( )   . Free state and federal tax filing for low income 1) B. Free state and federal tax filing for low income Employee Name: (Last) (First) (MI)   C. Free state and federal tax filing for low income SSN: D. Free state and federal tax filing for low income SWP:$ E. Free state and federal tax filing for low income Type: Other: 2) B. Free state and federal tax filing for low income Employee Name: (Last) (First) (MI)   C. Free state and federal tax filing for low income SSN: D. Free state and federal tax filing for low income SWP:$ E. Free state and federal tax filing for low income Type: Other: 3) B. Free state and federal tax filing for low income Employee Name: (Last) (First) (MI)   C. Free state and federal tax filing for low income SSN: D. Free state and federal tax filing for low income SWP:$ E. Free state and federal tax filing for low income Type: Other: 4) B. Free state and federal tax filing for low income Employee Name: (Last) (First) (MI)   C. Free state and federal tax filing for low income SSN: D. Free state and federal tax filing for low income SWP:$ E. Free state and federal tax filing for low income Type: Other: 5) B. Free state and federal tax filing for low income Employee Name: (Last) (First) (MI)   C. Free state and federal tax filing for low income SSN: D. Free state and federal tax filing for low income SWP:$ E. Free state and federal tax filing for low income Type: Other:     INSTRUCTIONS:   Enter tax year and page number. Free state and federal tax filing for low income   A. Free state and federal tax filing for low income Employer name, employer identification number (EIN), address, the name of a contact person, and a phone number where the contact person can be reached during normal business hours. Free state and federal tax filing for low income   B. Free state and federal tax filing for low income Employee's name. Free state and federal tax filing for low income   C. Free state and federal tax filing for low income Employee's social security number (SSN). Free state and federal tax filing for low income   D. Free state and federal tax filing for low income Total amount of special wage payments made to the employee. Free state and federal tax filing for low income   E. Free state and federal tax filing for low income Type of special wage payment from the following list: (1) Vacation Pay, (2) Sick Pay, (3) Severance Pay,  (4) Bonus, (5) Deferred Compensation, (6) Stock Options, and (7) Other—Please explain. Free state and federal tax filing for low income   Do not use a paper listing for nonqualified deferred compensation and section 457 plan deferrals and payments that could not be reported in block 11 of Form W-2. Free state and federal tax filing for low income (Get Form SSA-131. Free state and federal tax filing for low income )                 Prev  Up  Next   Home   More Online Publications