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

TurboTax Federal Free Edition - File Taxes Online

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

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


© 2012 - 2018 All rights reserved.

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

How To File Tax Return

Irs Gov 2010 Tax FormsAmend 2011 Tax ReturnH&r Block TaxHow To Ammend A Federal Tax ReturnFederal Tax Form 1040Tax Form 1040H&block ComH And R Block FreeFree Online 1040ez FilingIrs GovState Tax Return FilingOnline Tax Preparation2010 Amended Tax Return1040ez 2010File State And Federal Taxes For FreeUnemployment Tax Forms1040x Instructions DummiesTaxact2010New York State Unemployment Tax FormsH&r Block Free Online1040ez Tax Forms2011 State Tax FormIrs Tax Form 20102010 Form 1040 EzHrblock TaxesIrs Amendment Forms1040ez Efile FreeTurbotax Free State Efile CouponCan I Still File Taxes For 20121040 Now2011 Free Tax FileTurbo Tax For StudentsOnline Tax Forms 1040ezPreparing Form 1040xFree 1040H R Block Tax PreparationIrs 2012 1040 Tax FormFree Tax Filing For State And FederalIrs Free2012 Turbo Tax Return

How To File Tax Return

How to file tax return Publication 596 - Introductory Material Table of Contents Future Developments What is the EIC? Can I Claim the EIC? Do I Need This Publication? Do I Have To Have A Child To Qualify For The EIC? How Do I Figure the Amount of EIC? How Can I Quickly Locate Specific information? Is There Help Online? What's New for 2013 Reminders Future Developments For the latest information about developments related to Publication 596, such as legislation enacted after it was published, go to www. How to file tax return irs. How to file tax return gov/pub596. How to file tax return What is the EIC? The earned income credit (EIC) is a tax credit for certain people who work and have earned income under $51,567. How to file tax return A tax credit usually means more money in your pocket. How to file tax return It reduces the amount of tax you owe. How to file tax return The EIC may also give you a refund. How to file tax return Can I Claim the EIC? To claim the EIC, you must meet certain rules. How to file tax return These rules are summarized in Table 1. How to file tax return Table 1. How to file tax return Earned Income Credit in a Nutshell First, you must meet all the rules in this column. How to file tax return Second, you must meet all the rules in one of these columns, whichever applies. How to file tax return Third, you must meet the rule in this column. How to file tax return Chapter 1. How to file tax return  Rules for Everyone Chapter 2. How to file tax return  Rules If You Have a Qualifying Child Chapter 3. How to file tax return  Rules If You Do Not Have a Qualifying Child Chapter 4. How to file tax return  Figuring and Claiming the EIC 1. How to file tax return Your adjusted gross income (AGI) must be less than:  • $46,227 ($51,567 for married filing jointly) if you have three or more qualifying children,  • $43,038 ($48,378 for married filing jointly) if you have two qualifying children,  • $37,870 ($43,210 for married filing jointly) if you have one qualifying child, or   • $14,340 ($19,680 for married filing jointly) if you do not have a qualifying child. How to file tax return 2. How to file tax return You must have a valid social security number. How to file tax return   3. How to file tax return Your filing status cannot be Married filing separately. How to file tax return   4. How to file tax return You must be a U. How to file tax return S. How to file tax return citizen or resident alien all year. How to file tax return   5. How to file tax return You cannot file Form 2555 or Form 2555-EZ (relating to foreign earned income). How to file tax return   6. How to file tax return Your investment income must be $3,300 or less. How to file tax return    7. How to file tax return You must have earned income. How to file tax return 8. How to file tax return Your child must meet the relationship, age, residency, and joint return tests. How to file tax return   9. How to file tax return Your qualifying child cannot be used by more than one person to claim the EIC. How to file tax return   10. How to file tax return You cannot be a qualifying child of another person. How to file tax return 11. How to file tax return You must be at least age 25 but under age 65. How to file tax return    12. How to file tax return You cannot be the dependent of another person. How to file tax return   13. How to file tax return You cannot be a qualifying child of another person. How to file tax return   14. How to file tax return You must have lived in the United States more than half of the year. How to file tax return 15. How to file tax return Your earned income must be less than:  • $46,227 ($51,567 for married filing jointly) if you have three or more qualifying children,  • $43,038 ($48,378 for married filing jointly) if you have two qualifying children,  • $37,870 ($43,210 for married filing jointly) if you have one qualifying child, or  • $14,340 ($19,680 for married filing jointly) if you do not have a qualifying child. How to file tax return Do I Need This Publication? Certain people who file Form 1040 must use Worksheet 1 in this publication, instead of Step 2 in their Form 1040 instructions, when they are checking whether they can take the EIC. How to file tax return You are one of those people if any of the following statements are true for 2013. How to file tax return You are filing Schedule E (Form 1040). How to file tax return You are reporting income from the rental of personal property not used in a trade or business. How to file tax return You are reporting income on Form 1040, line 21, from Form 8814 (relating to election to report child's interest and dividends). How to file tax return You are reporting an amount on Form 1040, line 13, that includes an amount from Form 4797. How to file tax return If none of the statements above apply to you, your tax form instructions have all the information you need to find out if you can claim the EIC and to figure the amount of your EIC. How to file tax return You do not need this publication. How to file tax return But you can read it to find out whether you can take the EIC and to learn more about the EIC. How to file tax return Do I Have To Have A Child To Qualify For The EIC? No, you can qualify for the EIC without a qualifying child if you are at least age 25 but under age 65 and your earned income is less than $14,340 ($19,680 if married filing jointly). How to file tax return See chapter 3. How to file tax return How Do I Figure the Amount of EIC? If you can claim the EIC, you can either have the IRS figure the amount of your credit, or you can figure it yourself. How to file tax return To figure it yourself, you can complete a worksheet in the instructions for the form you file. How to file tax return To find out how to have the IRS figure it for you, see chapter 4. How to file tax return How Can I Quickly Locate Specific information? You can use the index to look up specific information. How to file tax return In most cases, index entries will point you to headings, tables, or a worksheet. How to file tax return Is There Help Online? Yes. How to file tax return You can use the EITC Assistant at www. How to file tax return irs. How to file tax return gov/eitc to find out if you may be eligible for the credit. How to file tax return The EITC Assistant is available in English and Spanish. How to file tax return What's New for 2013 Earned income amount is more. How to file tax return The maximum amount of income you can earn and still get the credit has increased. How to file tax return You may be able to take the credit if: You have three or more qualifying children and you earned less than $46,227 ($51,567 if married filing jointly), You have two qualifying children and you earned less than $43,038 ($48,378 if married filing jointly), You have one qualifying child and you earned less than $37,870 ($43,210 if married filing jointly), or You do not have a qualifying child and you earned less than $14,340 ($19,680 if married filing jointly). How to file tax return Your adjusted gross income also must be less than the amount in the above list that applies to you. How to file tax return For details, see Rules 1 and 15. How to file tax return Investment income amount is more. How to file tax return The maximum amount of investment income you can have and still get the credit has increased to $3,300. How to file tax return See Rule 6—Your Investment Income Must Be $3,300 or Less . How to file tax return Reminders Increased EIC on certain joint returns. How to file tax return . How to file tax return  A married person filing a joint return may get more EIC than someone with the same income but a different filing status. How to file tax return As a result, the EIC table has different columns for married persons filing jointly than for everyone else. How to file tax return When you look up your EIC in the EIC Table, be sure to use the correct column for your filing status and the number of children you have. How to file tax return Earned income credit has no effect on certain welfare benefits. How to file tax return  Any refund you receive because of the EIC cannot be counted as income when determining whether you or anyone else is eligible for benefits or assistance, or how much you or anyone else can receive, under any federal program or under any state or local program financed in whole or in part with federal funds. How to file tax return These programs include the following. How to file tax return Temporary Assistance for Needy Families (TANF). How to file tax return Medicaid. How to file tax return Supplemental security income (SSI). How to file tax return Supplemental Nutrition Assistance Program (food stamps). How to file tax return Low-income housing. How to file tax return In addition, when determining eligibility, the refund cannot be counted as a resource for at least 12 months after you receive it. How to file tax return Check with your local benefit coordinator to find out if your refund will affect your benefits. How to file tax return Do not overlook your state credit. How to file tax return  If you can claim the EIC on your federal income tax return, you may be able to take a similar credit on your state or local income tax return. How to file tax return For a list of states that offer a state EIC, go to www. How to file tax return irs. How to file tax return gov/eitc. How to file tax return EIC questioned by IRS. How to file tax return  The IRS may ask you to provide documents to prove you are entitled to claim the EIC. How to file tax return We will tell you what documents to send us. How to file tax return These may include: birth certificates, school records, etc. How to file tax return The process of establishing your eligibility will delay your refund. How to file tax return Spanish version of Publication 596. How to file tax return  You can order Publicación 596SP, Crédito por Ingreso del Trabajo, from the IRS. How to file tax return It is a Spanish translation of Publication 596. How to file tax return See How To Get Tax Help to find out how to order this and other IRS forms and publications. How to file tax return Photographs of missing children. How to file tax return  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. How to file tax return Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. How to file tax return You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. How to file tax return Comments and suggestions. How to file tax return  We welcome your comments about this publication and your suggestions for future editions. How to file tax return You can write to us at the following address:  Internal Revenue Service Individual Forms and Publications Branch 1111 Constitution Ave. How to file tax return NW, IR-6526 Washington, DC 20224 We respond to many letters by telephone. How to file tax return Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. How to file tax return You can send your comments from www. How to file tax return irs. How to file tax return gov/formspubs/. How to file tax return Click on “More Information” and then on “Comment on Tax Forms and Publications. How to file tax return ” Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. How to file tax return Ordering forms and publications. How to file tax return  Visit www. How to file tax return irs. How to file tax return gov/formspubs/ to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. How to file tax return  Internal Revenue Service 1201 N. How to file tax return Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. How to file tax return  If you have a tax question, check the information available on IRS. How to file tax return gov or call 1-800-829-1040. How to file tax return We cannot answer tax questions sent to either of the above addresses. How to file tax return Prev  Up  Next   Home   More Online Publications
Print - Click this link to Print this page

HCTC: Information for Health Plan Administrators (HPAs)

Important Update: The legislation that authorizes the Health Coverage Tax Credit (HCTC) has expired. The tax credit will no longer be available for tax years after 2013. 

Health Plan Administrators (HPAs) are vital to the success of the HCTC program. Your role as an HPA can vary, depending on your level of involvement in helping eligible individuals receive the tax credit.  Below you will find information about how you can help individuals receive this important tax credit.

Complete Ongoing Responsibilities
When individuals claim the Yearly HCTC on their federal tax return, they must submit supporting documents (such as a health insurance bill, COBRA Election Letter, or substitute letter that has the same information that a health insurance bill contains) to show they have the insurance they are claiming.  As an HPA, you can help these individuals if they request information or documentation from you concerning their health coverage.

Returning Funds to the HCTC Program
An HPA can return funds to the HCTC Program for many reasons, including: a member's coverage ended or was cancelled, their premium amount changed, the member changed HPA or Third Party Administrator (TPA), the member is no longer eligible for the HCTC, the member is receiving Medicare benefits, or because an incorrect HPA or TPA was paid.

Prior to returning funds to the HCTC Program, you should:
1.    Contact your HCTC HPA Analyst to inform them of the pending return.
2.    Fill out the Return of Funds Form in its entirety.
3.    Fax copies of the completed Return of Funds Form to your HCTC HPA Analyst with the returned funds. 
4.    Reference the Return of Funds Form to determine the correct mailing address for the type of funds you are returning. Include a copy of the Returned Funds Form with the check, and send to the appropriate address.
 

Please note: An updated Return of Funds Form with new contact information and instructions will be provided in early 2014 for use beginning in April 2014.

Return to the HCTC Program home page
Go to the HCTC Quick References page to view a glossary of terms, frequently asked questions (FAQs) and additional resources.

Page Last Reviewed or Updated: 01-Jan-2014

The How To File Tax Return

How to file tax return Publication 51 - Main Content Table of Contents 1. How to file tax return Taxpayer Identification NumbersWhen you receive your EIN. How to file tax return Registering for SSNVS. How to file tax return 2. How to file tax return Who Are Employees?Crew Leaders Business Owned and Operated by Spouses 3. How to file tax return Wages and Other Compensation 4. How to file tax return Social Security and Medicare TaxesThe $150 Test or the $2,500 Test Social Security and Medicare Tax Withholding 5. How to file tax return Federal Income Tax WithholdingImplementation of lock-in letter. How to file tax return Seasonal employees and employees not currently performing services. How to file tax return Termination and re-hire of employees. How to file tax return How To Figure Federal Income Tax Withholding 6. How to file tax return Required Notice to Employees About Earned Income Credit (EIC) 7. How to file tax return Depositing TaxesWhen To Deposit How To Deposit Deposit Penalties Employers of Both Farm and Nonfarm Workers 8. How to file tax return Form 943 9. How to file tax return Reporting Adjustments on Form 943Current Year Adjustments Prior Year Adjustments 10. How to file tax return Federal Unemployment (FUTA) Tax 11. How to file tax return Reconciling Wage Reporting Forms 13. How to file tax return Federal Income Tax Withholding MethodsWage Bracket Method Percentage Method Alternative Methods of Federal Income Tax Withholding How To Get Tax Help 1. How to file tax return 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. How to file tax return Also, you will need the SSN of each employee and the name of each employee as shown on the employee's social security card. How to file tax return Employer identification number (EIN). How to file tax return   An employer identification number (EIN) is a nine-digit number that the IRS issues. How to file tax return The digits are arranged as follows: 00-0000000. How to file tax return It is used to identify the tax accounts of employers and certain others who have no employees. How to file tax return Use your EIN on all of the items that you send to the IRS and SSA. How to file tax return   If you do not have an EIN, you may apply for one online. How to file tax return Visit IRS. How to file tax return gov and click on the Apply for an EIN Online link under Tools. How to file tax return 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. How to file tax return Do not use a SSN in place of an EIN. How to file tax return   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. How to file tax return If you took over another employer's business, do not use that employer's EIN. How to file tax return   You should have only one EIN. How to file tax return 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). How to file tax return 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. How to file tax return The IRS will tell you which EIN to use. How to file tax return   For more information, see Publication 1635 or Publication 583. How to file tax return When you receive your EIN. How to file tax return   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). How to file tax return 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. How to file tax return 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. How to file tax return 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. How to file tax return Social security number (SSN). How to file tax return   An employee's social security number (SSN) consists of nine digits arranged as follows: 000-00-0000. How to file tax return 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. How to file tax return Do not accept a social security card that says “Not valid for employment. How to file tax return ” A social security number issued with this legend does not permit employment. How to file tax return You may, but are not required to, photocopy the social security card if the employee provides it. How to file tax return 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. How to file tax return See Publication 1586, Reasonable Cause Regulations & Requirements for Missing and Incorrect Name/TINs. How to file tax return Applying for a social security card. How to file tax return   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. How to file tax return 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. How to file tax return socialsecurity. How to file tax return gov/online/ss-5. How to file tax return html. How to file tax return The employee must complete and sign Form SS-5; it cannot be filed by the employer. How to file tax return 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. How to file tax return Applying for a social security number. How to file tax return   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. How to file tax return If you are filing electronically, enter all zeros (000-00-0000) in the social security number field. How to file tax return 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. How to file tax return Furnish Copies B, C, and 2 of Form W-2c to the employee. How to file tax return 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. How to file tax return For more information, visit SSA's Employer W-2 Filing Instructions & Information webpage at www. How to file tax return socialsecurity. How to file tax return gov/employer. How to file tax return Advise your employee to correct the SSN on his or her original Form W-2. How to file tax return Correctly record the employee's name and SSN. How to file tax return   Record the name and number of each employee as they are shown on the employee's social security card. How to file tax return 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. How to file tax return 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. How to file tax return   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. How to file tax return 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. How to file tax return IRS individual taxpayer identification numbers (ITINs) for aliens. How to file tax return   Do not accept an ITIN in place of an SSN for employee identification or for work. How to file tax return An ITIN is issued for use by resident and nonresident aliens who need identification for tax purposes, but who are not eligible for U. How to file tax return S. How to file tax return employment. How to file tax return The ITIN is a nine-digit number formatted like an SSN (for example, NNN-NN-NNNN). How to file tax return 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). How to file tax return    An individual with an ITIN who later becomes eligible to work in the United States must obtain an SSN. How to file tax return 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. How to file tax return Do not use an ITIN in place of an SSN on Form W-2. How to file tax return Verification of social security numbers. How to file tax return   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. How to file tax return Visit www. How to file tax return socialsecurity. How to file tax return gov/employer/ssnv. How to file tax return htm for more information. How to file tax return Registering for SSNVS. How to file tax return   You must register online and receive authorization from your employer to use SSNVS. How to file tax return To register, visit SSA's website at www. How to file tax return socialsecurity. How to file tax return gov/employer and click on the Business Services Online link. How to file tax return Follow the registration instructions to obtain a user identification (ID) and password. How to file tax return You will need to provide the following information about yourself and your company. How to file tax return Name. How to file tax return SSN. How to file tax return Date of birth. How to file tax return Type of employer. How to file tax return EIN. How to file tax return Company name, address, and telephone number. How to file tax return Email address. How to file tax return When you have completed the online registration process, SSA will mail a one-time activation code to your employer. How to file tax return You must enter the activation code online to use SSNVS. How to file tax return 2. How to file tax return Who Are Employees? Generally, employees are defined either under common law or under statutes for certain situations. How to file tax return See Publication 15-A for details on statutory employees and nonemployees. How to file tax return Employee status under common law. How to file tax return   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. How to file tax return This is so even when you give the employee freedom of action. How to file tax return What matters is that you have the right to control the details of how the services are performed. How to file tax return See Publication 15-A for more information on how to determine whether an individual providing services is an independent contractor or an employee. How to file tax return If an employer-employee relationship exists, it does not matter what it is called. How to file tax return The employee may be called an agent or independent contractor. How to file tax return It also does not matter how payments are measured or paid, what they are called, or if the employee works full or part time. How to file tax return You are responsible for withholding and paying employment taxes for your employees. How to file tax return You are also required to file employment tax returns. How to file tax return These requirements do not apply to amounts that you pay to independent contractors. How to file tax return The rules discussed in this publication apply only to workers who are your employees. How to file tax return 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. How to file tax return 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. How to file tax return 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. How to file tax return 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. How to file tax return Crew Leaders If you are a crew leader, you are an employer of farmworkers. How to file tax return 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. How to file tax return 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. How to file tax return For FUTA tax rules, see section 10. How to file tax return 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. How to file tax return See Publication 541, Partnerships, for more details. How to file tax return The partnership is considered the employer of any employees, and is liable for any employment taxes due on wages paid to its employees. How to file tax return Exception—Qualified joint venture. How to file tax return   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. How to file tax return 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). How to file tax return   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. How to file tax return Each spouse must also file a separate Schedule SE to pay self-employment taxes, as applicable. How to file tax return   Spouses using the qualified joint venture rules are treated as sole proprietors for federal tax purposes and generally do not need an EIN. How to file tax return 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. How to file tax return Generally, filing as a qualified joint venture will not increase the spouses' total tax owed on the joint income tax return. How to file tax return 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. How to file tax return    Note. How to file tax return If your spouse is your employee, not your partner, you must pay social security and Medicare taxes for him or her. How to file tax return   For more information on qualified joint ventures, visit IRS. How to file tax return gov and enter “qualified joint venture” in the search box. How to file tax return Exception—Community income. How to file tax return   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. How to file tax return S. How to file tax return possession, you can treat the business either as a sole proprietorship (of the spouse who carried on the business) or a partnership. How to file tax return You may still make an election to be taxed as a qualified joint venture instead of a partnership. How to file tax return See Exception—Qualified joint venture , earlier in this section. How to file tax return 3. How to file tax return Wages and Other Compensation Cash wages that you pay to employees for farmwork are generally subject to social security tax and Medicare tax. How to file tax return You may also be required to withhold, deposit, and report Additional Medicare Tax. How to file tax return See section 4 for more information. How to file tax return If the wages are subject to social security and Medicare taxes, they are also subject to federal income tax withholding. How to file tax return You may also be liable for FUTA tax, which is not withheld by you or paid by the employee. How to file tax return FUTA tax is discussed in section 10. How to file tax return Cash wages include checks, money orders, etc. How to file tax return Do not count as cash wages the value of food, lodging, and other noncash items. How to file tax return For more information on what payments are considered taxable wages, see Publication 15 (Circular E). How to file tax return Commodity wages. How to file tax return   Commodity wages are not cash and are not subject to social security and Medicare taxes or federal income tax withholding. How to file tax return However, noncash payments, including commodity wages, are treated as cash wages (see above) if the substance of the transaction is a cash payment. How to file tax return These noncash payments are subject to social security and Medicare taxes and federal income tax withholding. How to file tax return Other compensation. How to file tax return   Publications 15-A and 15-B discuss other forms of compensation that may be taxable. How to file tax return Family members. How to file tax return   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. How to file tax return However, certain exemptions may apply for your child, spouse, or parent. How to file tax return See the table, How Do Employment Taxes Apply to Farmwork , in section 12. How to file tax return Household employees. How to file tax return   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. How to file tax return   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. How to file tax return 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. How to file tax return   For more information, see Publication 926, Household Employer's Tax Guide. How to file tax return    Wages for household work may not be a deductible farm expense. How to file tax return See Publication 225, Farmer's Tax Guide. How to file tax return Share farmers. How to file tax return   You do not have to withhold or pay social security and Medicare taxes on amounts paid to share farmers under share-farming arrangements. How to file tax return Compensation paid to H-2A visa holders. How to file tax return   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. How to file tax return On Form W-2, do not check box 13 (Statutory employee), as H-2A workers are not statutory employees. How to file tax return   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. How to file tax return In that case, the worker must give the employer a completed Form W-4. How to file tax return Federal income tax withheld should be reported in box 2 of Form W-2. How to file tax return These reporting rules apply when the H-2A worker provides his or her taxpayer identification number (TIN) to the employer. How to file tax return 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. How to file tax return 4. How to file tax return 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. How to file tax return You may also be required to withhold Additional Medicare Tax. How to file tax return For more information, see Additional Medicare Tax withholding , later. How to file tax return 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. How to file tax return 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). How to file tax return The $150 test applies separately to each farmworker that you employ. How to file tax return If you employ a family of workers, each member is treated separately. How to file tax return Do not count wages paid by other employers. How to file tax return The total that you pay for farmwork (cash and noncash) to all your employees is $2,500 or more during the year. How to file tax return Exceptions. How to file tax return   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. How to file tax return   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. How to file tax return Social Security and Medicare Tax Withholding The social security tax rate is 6. How to file tax return 2%, for both the employee and employer, on the first $117,000 paid to each employee. How to file tax return You must withhold at this rate from each employee and pay a matching amount. How to file tax return The Medicare tax rate is 1. How to file tax return 45% each for the employee and employer on all wages. How to file tax return You must withhold at this rate from each employee and pay a matching amount. How to file tax return There is no wage base limit for Medicare tax; all covered wages are subject to Medicare tax. How to file tax return Social security and Medicare taxes apply to most payments of sick pay, including payments made by third parties such as insurance companies. How to file tax return For details, see Publication 15-A. How to file tax return Additional Medicare Tax withholding. How to file tax return   In addition to withholding Medicare tax at 1. How to file tax return 45%, you must withhold a 0. How to file tax return 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. How to file tax return 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. How to file tax return Additional Medicare Tax is only imposed on the employee. How to file tax return There is no employer share of Additional Medicare Tax. How to file tax return 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. How to file tax return   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). How to file tax return For more information on Additional Medicare Tax, visit IRS. How to file tax return gov and enter “Additional Medicare Tax” in the search box. How to file tax return Employee share paid by employer. How to file tax return   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. How to file tax return If you do not withhold the taxes, however, you must still pay them. How to file tax return Any employee social security and Medicare taxes that you pay is additional income to the employee. How to file tax return 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. How to file tax return Also, do not count the additional income as wages for FUTA tax purposes. How to file tax return Different rules apply to employer payments of social security and Medicare taxes for non-household and non-agricultural employees. How to file tax return See section 7 of Publication 15-A. How to file tax return Withholding social security and Medicare taxes on nonresident alien employees. How to file tax return   In general, if you pay wages to nonresident alien employees, you must withhold social security and Medicare taxes as you would for a U. How to file tax return S. How to file tax return citizen or resident alien. How to file tax return However, see Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities, for exceptions to this general rule. How to file tax return Also see Compensation paid to H-2A visa holders in section 3. How to file tax return Religious exemption. How to file tax return    An exemption from social security and Medicare taxes is available to members of a recognized religious sect opposed to public insurance. How to file tax return This exemption is available only if both the employee and the employer are members of the sect. How to file tax return   For more information, see Publication 517, Social Security and Other Information for Members of the Clergy and Religious Workers. How to file tax return 5. How to file tax return 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. How to file tax return The amount to withhold is figured on gross wages before taking out social security and Medicare taxes, union dues, insurance, etc. How to file tax return You may use one of several methods to determine the amount of federal income tax withholding. How to file tax return They are discussed in section 13. How to file tax return Form W-4. How to file tax return   To know how much federal income tax to withhold from employees' wages, you should have a Form W-4 on file for each employee. How to file tax return 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. How to file tax return Advise your employees to use the IRS Withholding Calculator on the IRS website at www. How to file tax return irs. How to file tax return gov/individuals for help in determining how many withholding allowances to claim on their Form W-4. How to file tax return   Ask each new employee to give you a signed Form W-4 when starting work. How to file tax return Make the form effective with the first wage payment. How to file tax return 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. How to file tax return Forms in Spanish. How to file tax return   You can provide Formulario W-4(SP) in place of Form W-4 to your Spanish-speaking employees. How to file tax return For more information, see Publicación 17(SP). How to file tax return Effective date of Form W-4. How to file tax return   A Form W-4 remains in effect until the employee gives you a new one. How to file tax return When you receive a new Form W-4, do not adjust withholding for pay periods before the effective date of the new form. How to file tax return Do not adjust withholding retroactively. How to file tax return 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. How to file tax return 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. How to file tax return A Form W-4 that makes a change for the next calendar year will not take effect in the current calendar year. How to file tax return Completing Form W-4. How to file tax return   The amount of federal income tax withholding is based on marital status and withholding allowances. How to file tax return Your employees may not base their withholding amounts on a fixed dollar amount or percentage. How to file tax return 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. How to file tax return   Employees may claim fewer withholding allowances than they are entitled to claim. How to file tax return 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. How to file tax return   See Publication 505, Tax Withholding and Estimated Tax, for more information about completing Form W-4. How to file tax return Along with Form W-4, you may wish to order Publication 505 for use by your employees. How to file tax return    Do not accept any withholding or estimated tax payments from your employees in addition to withholding based on their Form W-4. How to file tax return 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. How to file tax return Exemption from federal income tax withholding. How to file tax return   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. How to file tax return See the Form W-4 instructions for more information. How to file tax return However, the wages are still subject to social security and Medicare taxes. How to file tax return   A Form W-4 claiming exemption from withholding is effective when it is filed with the employer and only for that calendar year. How to file tax return 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. How to file tax return 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. How to file tax return 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. How to file tax return Withholding income taxes on the wages of nonresident alien employees. How to file tax return   In general, you must withhold federal income taxes on the wages of nonresident alien employees. How to file tax return However, see Publication 515 for exceptions to this general rule. How to file tax return Also see Compensation paid to H-2A visa workers in section 3. How to file tax return Withholding adjustment for nonresident alien employees. How to file tax return   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. How to file tax return 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. How to file tax return See Withholding adjustment for nonresident alien employees in section 9 of Publication 15 (Circular E). How to file tax return Nonresident alien employee's Form W-4. How to file tax return   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. How to file tax return   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. How to file tax return    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. How to file tax return Form 8233. How to file tax return   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. How to file tax return See Publication 515 for details. How to file tax return IRS review of requested Forms W-4. How to file tax return   When requested by the IRS, you must make original Forms W-4 available for inspection by an IRS employee. How to file tax return You may also be directed to send certain Forms W-4 to the IRS. How to file tax return 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. How to file tax return 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. How to file tax return 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. How to file tax return When we refer to Form W-4, the same rules apply to Formulario W-4(SP), its Spanish translation. How to file tax return   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). How to file tax return 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”). How to file tax return Initial lock-in letter. How to file tax return   The IRS uses information reported on Form W-2 to identify employees with withholding compliance problems. How to file tax return 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. How to file tax return 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. How to file tax return 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. How to file tax return You may follow any reasonable business practice to furnish the employee copy to the employee. How to file tax return Implementation of lock-in letter. How to file tax return   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. How to file tax return You must begin withholding tax on the basis of the notice for any wages paid after the date specified in the notice. How to file tax return 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. How to file tax return Seasonal employees and employees not currently performing services. How to file tax return   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. How to file tax return 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. How to file tax return You reasonably expect the employee to resume services within 12 months of the date of the notice. How to file tax return 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. How to file tax return Termination and re-hire of employees. How to file tax return   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. How to file tax return 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. How to file tax return Modification notice. How to file tax return   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. How to file tax return The modification notice may change the marital status and/or the number of withholding allowances permitted. How to file tax return You must withhold federal income tax based on the effective date specified in the modification notice. How to file tax return New Form W-4 after IRS notice. How to file tax return   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. How to file tax return 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. How to file tax return 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. How to file tax return   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. How to file tax return Otherwise, disregard any subsequent Forms W-4 provided by the employee and withhold based on the IRS notice or modification notice. How to file tax return Substitute Forms W-4. How to file tax return   You are encouraged to have your employees use the official version of Form W-4 to claim withholding allowances or exemption from withholding. How to file tax return Call the IRS at 1-800-TAX-FORM (1-800-829-3676) or visit IRS. How to file tax return gov to obtain copies of Form W-4. How to file tax return   You may use a substitute version of Form W-4 to meet your business needs. How to file tax return 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. How to file tax return 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. How to file tax return   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. How to file tax return However, continue to use any valid Forms W-4 developed by your employees that you accepted before October 11, 2007. How to file tax return Invalid Forms W-4. How to file tax return   Any unauthorized change or addition to Form W-4 makes it invalid. How to file tax return This includes taking out any language by which the employee certifies that the form is correct. How to file tax return 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. How to file tax return An employee who submits a false Form W-4 may be subject to a $500 penalty. How to file tax return 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. How to file tax return   When you get an invalid Form W-4, do not use it to figure federal income tax withholding. How to file tax return Tell the employee that it is invalid and ask for another one. How to file tax return If the employee does not give you a valid one, withhold taxes as if the employee was single and claiming no withholding allowances. How to file tax return However, if you have an earlier Form W-4 for this worker that is valid, withhold as you did before. How to file tax return   For additional information about these rules, see Treasury Decision 9337, 2007-35 I. How to file tax return R. How to file tax return B. How to file tax return 455, available at www. How to file tax return irs. How to file tax return gov/irb/2007-35_IRB/ar10. How to file tax return html. How to file tax return Amounts exempt from levy on wages, salary, and other income. How to file tax return   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. How to file tax return 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. How to file tax return 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. How to file tax return How To Figure Federal Income Tax Withholding There are several ways to figure federal income tax withholding. How to file tax return Wage bracket tables. How to file tax return See section 13 for directions on how to use the tables. How to file tax return Percentage method. How to file tax return See section 13 for directions on how to use the percentage method. How to file tax return Alternative formula tables for percentage method withholding. How to file tax return See Publication 15-A. How to file tax return Wage bracket percentage method withholding tables. How to file tax return See Publication 15-A. How to file tax return Other alternative methods. How to file tax return See Publication 15-A. How to file tax return 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. How to file tax return If an employee wants additional federal tax withheld, have the employee show the extra amount on Form W-4. How to file tax return Supplemental wages. How to file tax return   Supplemental wages are wage payments to an employee that are not regular wages. How to file tax return 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. How to file tax return Other payments subject to the supplemental wage rules include taxable fringe benefits and expense allowances paid under a nonaccountable plan. How to file tax return   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. How to file tax return   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. How to file tax return 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. How to file tax return Withhold a flat 25% (no other percentage allowed). How to file tax return If the supplemental wages are paid concurrently with regular wages, add the supplemental wages to the concurrently paid regular wages. How to file tax return 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. How to file tax return Figure the income tax withholding as if the total of the regular wages and supplemental wages is a single payment. How to file tax return Subtract the tax withheld from the regular wages. How to file tax return Withhold the remaining tax from the supplemental wages. How to file tax return 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. How to file tax return 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. How to file tax return This would occur, for example, when the value of the employee's withholding allowances claimed on Form W-4 is more than the wages. How to file tax return    Separate rules apply to any supplemental wages exceeding $1 million that you pay to an individual during the year. How to file tax return See section 7 in Publication 15 (Circular E) for details. How to file tax return   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. How to file tax return 6. How to file tax return 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. How to file tax return 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. How to file tax return This is because eligible employees may get a refund of the amount of EIC that is more than the tax that they owe. How to file tax return 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. How to file tax return 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. How to file tax return 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. How to file tax return 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. How to file tax return If Form W-2 is not required, you must notify the employee by February 7, 2014. How to file tax return 7. How to file tax return Depositing Taxes Generally, you must deposit both the employer and employee shares of social security and Medicare taxes and federal income tax withheld. How to file tax return You must use electronic funds transfer to make all federal tax deposits. How to file tax return See How To Deposit , later in this section. How to file tax return 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. How to file tax return For more information, see COBRA premium assistance credit under Introduction. How to file tax return Payment with return. How to file tax return   You may make payments with Forms 943 or 945 instead of depositing if one of the following applies. How to file tax return 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. How to file tax return 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. How to file tax return You are a monthly schedule depositor and make a payment in accordance with the Accuracy of Deposits Rule discussed later in this section. How to file tax return This payment may be $2,500 or more. How to file tax return Only monthly schedule depositors, defined later, are allowed to make an Accuracy of Deposits Rule payment with the return. How to file tax return Semiweekly schedule depositors must timely deposit the amount. How to file tax return See Accuracy of Deposits Rule and How To Deposit, later in this section. How to file tax return 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. How to file tax return See Employers of Both Farm and Nonfarm Workers, later in this section. How to file tax return The rules for determining when to deposit Form 943 taxes are discussed below. How to file tax return See section 10 for the separate rules that apply to FUTA tax. How to file tax return Under these rules, you are classified as either a monthly schedule depositor or a semiweekly schedule depositor. How to file tax return 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. How to file tax return The terms identify which set of rules you must follow when you incur a tax liability (for example, when you have a payday). How to file tax return 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. How to file tax return If you reported $50,000 or less of Form 943 taxes for the lookback period, you are a monthly schedule depositor. How to file tax return If you reported more than $50,000 of Form 943 taxes for the lookback period, you are a semiweekly schedule depositor. How to file tax return Lookback period. How to file tax return   The lookback period is the second calendar year preceding the current calendar year. How to file tax return For example, the lookback period for 2014 is 2012. How to file tax return Example of deposit schedule based on lookback period. How to file tax return Rose Co. How to file tax return reported taxes on Form 943 as follows. How to file tax return 2012 — $48,000 2013 — $60,000 Rose Co. How to file tax return 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. How to file tax return However, for 2015, Rose Co. How to file tax return is a semiweekly schedule depositor because the total taxes before adjustment for its lookback period ($60,000 for calendar year 2013) exceeded $50,000. How to file tax return Adjustments to lookback period taxes. How to file tax return   To determine your taxes for the lookback period, use only the tax that you reported on the original return (Form 943, line 9). How to file tax return Do not include adjustments shown on Form 943-X, Adjusted Employer's Annual Federal Tax Return for Agricultural Employees or Claim for Refund. How to file tax return Example of adjustments. How to file tax return An employer originally reported total tax of $45,000 for the lookback period in 2012. How to file tax return 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. How to file tax return The total tax reported in the lookback period is still $45,000. How to file tax return The $10,000 adjustment is also not treated as part of the 2014 taxes. How to file tax return Deposit period. How to file tax return   The term “deposit period” refers to the period during which tax liabilities are accumulated for each required deposit due date. How to file tax return For monthly schedule depositors, the deposit period is a calendar month. How to file tax return The deposit periods for semiweekly schedule depositors are Wednesday through Friday and Saturday through Tuesday. How to file tax return 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. How to file tax return You must deposit Form 943 taxes on payments made during a calendar month by the 15th day of the following month. How to file tax return Monthly schedule example. How to file tax return   Red Co. How to file tax return is a seasonal employer and a monthly schedule depositor. How to file tax return It pays wages each Friday. How to file tax return It paid wages during August 2014, but did not pay any wages during September. How to file tax return Red Co. How to file tax return must deposit the combined tax liabilities for the August paydays by September 15. How to file tax return Red Co. How to file tax return 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. How to file tax return New employers. How to file tax return   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. How to file tax return 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). How to file tax return 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. How to file tax return Under the semiweekly deposit schedule, deposit Form 943 taxes for payments made on Wednesday, Thursday, and/or Friday by the following Wednesday. How to file tax return Deposit amounts accumulated for payments made on Saturday, Sunday, Monday, and/or Tuesday by the following Friday. How to file tax return 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. How to file tax return 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. How to file tax return If you made no additional payments on Saturday through Tuesday, no deposit is due on Friday. How to file tax return Semiweekly schedule depositors must complete Form 943-A, Agricultural Employer's Record of Federal Tax Liability, and submit it with Form 943. How to file tax return Semiweekly Deposit Schedule IF the payday falls on a. How to file tax return . How to file tax return . How to file tax return THEN deposit taxes by the following. How to file tax return . How to file tax return . How to file tax return Wednesday, Thursday, and/or Friday Wednesday Saturday, Sunday, Monday, and/or Tuesday Friday Semiweekly schedule example. How to file tax return   Green, Inc. How to file tax return , is a semiweekly schedule depositor and pays wages once each month on the last Friday of the month. How to file tax return Green, Inc. How to file tax return , will deposit only once a month, but the deposit will be made under the semiweekly deposit schedule as follows. How to file tax return Green, Inc. How to file tax return 's tax liability for the April 25, 2014 (Friday), wage payment must be deposited by April 30, 2014 (Wednesday). How to file tax return Semiweekly deposit period spanning two quarters. How to file tax return   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. How to file tax return 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. How to file tax return Both deposits will be due Friday, April 4, 2014 (3 business days from the end of the semiweekly deposit period). How to file tax return 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. How to file tax return A business day is any day other than a Saturday, Sunday, or legal holiday. How to file tax return 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). How to file tax return Semiweekly schedule depositors   will always have 3 business days to make a deposit. How to file tax return 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. How to file tax return 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). How to file tax return Legal holiday. How to file tax return   The term “legal holiday” means any legal holiday in the District of Columbia. How to file tax return Legal holidays for 2014 are listed below. How to file tax return January 1— New Year's Day January 20— Birthday of Martin Luther King, Jr. How to file tax return 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. How to file tax return For purposes of the $100,000 rule, do not continue accumulating a tax liability after the end of a deposit period. How to file tax return 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. How to file tax return Thus, $95,000 must be deposited by Friday and $10,000 must be deposited by the following Wednesday. How to file tax return 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. How to file tax return For example, Fir Co. How to file tax return is a semiweekly schedule depositor. How to file tax return On Monday, Fir Co. How to file tax return accumulates taxes of $110,000 and must deposit this amount on Tuesday, the next business day. How to file tax return On Tuesday, Fir Co. How to file tax return accumulates additional taxes of $30,000. How to file tax return Because the $30,000 is not added to the previous $110,000 and is less than $100,000, Fir Co. How to file tax return does not have to deposit the $30,000 until Friday (following the semiweekly deposit schedule). How to file tax return 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. How to file tax return Example of the $100,000 next-day deposit rule. How to file tax return   Elm, Inc. How to file tax return , started its business on May 1, 2014. How to file tax return Because Elm, Inc. How to file tax return , is a new employer, the taxes for its lookback period are considered to be zero; therefore, Elm, Inc. How to file tax return , is a monthly schedule depositor. How to file tax return On May 8, Elm, Inc. How to file tax return , paid wages for the first time and accumulated taxes of $50,000. How to file tax return On May 9 (Friday), Elm, Inc. How to file tax return , paid wages and accumulated taxes of $60,000, for a total of $110,000. How to file tax return Because Elm, Inc. How to file tax return , accumulated $110,000 on May 9, it must deposit $110,000 by May 12 (Monday), the next business day. How to file tax return Elm, Inc. How to file tax return , became a semiweekly schedule depositor on May 10. How to file tax return It will be a semiweekly schedule depositor for the remainder of 2014 and for 2015. How to file tax return Accuracy of Deposits Rule You are required to deposit 100% of your tax liability on or before the deposit due date. How to file tax return However, penalties will not be applied for depositing less than 100% if both of the following conditions are met. How to file tax return Any deposit shortfall does not exceed the greater of $100 or 2% of the amount of taxes otherwise required to be deposited. How to file tax return The deposit shortfall is paid or deposited by the shortfall makeup date as described below. How to file tax return 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. How to file tax return You may pay the shortfall with your Form 943 even if the amount is $2,500 or more. How to file tax return 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. How to file tax return For example, if a semiweekly schedule depositor has a deposit shortfall during February 2014, the shortfall makeup date is March 19, 2014 (Wednesday). How to file tax return How To Deposit You must deposit employment taxes by electronic funds transfer. How to file tax return See Payment with return , earlier in this section, for exceptions explaining when taxes may be paid with the tax return instead of being deposited. How to file tax return Electronic deposit requirement. How to file tax return   You must use electronic funds transfer to make all federal tax deposits (such as deposits of employment tax, excise tax, and corporate income tax). How to file tax return Generally, electronic funds transfers are made using the Electronic Federal Tax Payment System (EFTPS). How to file tax return 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. How to file tax return   EFTPS is a free service provided by the Department of Treasury. How to file tax return 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). How to file tax return You can also visit the EFTPS website at www. How to file tax return eftps. How to file tax return gov. How to file tax return Additional information about EFTPS is also available in Publication 966. How to file tax return New employers that have a federal tax obligation will be pre-enrolled in EFTPS. How to file tax return Call the toll-free number located in your Employer Identification Number (EIN) Package to activate your enrollment and begin making your tax deposit payments. How to file tax return See When you receive your EIN in section 1 for more information. How to file tax return Deposit record. How to file tax return   For your records, an Electronic Funds Transfer (EFT) Trace Number will be provided with each successful payment. How to file tax return The number can be used as a receipt or to trace the payment. How to file tax return Depositing on time. How to file tax return   For deposits made by EFTPS to be on time, you must initiate the deposit by 8 p. How to file tax return m. How to file tax return Eastern time the day before the date a deposit is due. How to file tax return If you use a third party to make a deposit on your behalf, they may have different cutoff times. How to file tax return Same-day payment option. How to file tax return   If you fail to initiate a deposit transaction on EFTPS by 8 p. How to file tax return m. How to file tax return 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). How to file tax return To use the same-day payment method, you will need to make arrangements with your financial institution ahead of time. How to file tax return Please check with your financial institution regarding availability, deadlines, and costs. How to file tax return Your financial institution may charge you a fee for payments made this way. How to file tax return To learn more about the information you will need to provide to your financial institution to make a same-day wire payment, visit www. How to file tax return eftps. How to file tax return gov to download the Same-Day Payment Worksheet. How to file tax return 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. How to file tax return 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. How to file tax return 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. How to file tax return For amounts not properly deposited or not deposited on time, the penalty rates are shown next. How to file tax return Penalty Charged for. How to file tax return . How to file tax return . How to file tax return 2% Deposits made 1 to 5 days late. How to file tax return 5% Deposits made 6 to 15 days late. How to file tax return 10% Deposits made 16 or more days late. How to file tax return Also applies to amounts paid within 10 days of the date of the first notice the IRS sent asking for the tax due. How to file tax return 10% Amounts (that should have been deposited) paid directly to the IRS or paid with your tax return. How to file tax return See Payment with return , earlier in this section, for exceptions. How to file tax return 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. How to file tax return Late deposit penalty amounts are determined using calendar days, starting from the due date of the liability. How to file tax return Order in which deposits are applied. How to file tax return   Deposits generally are applied to the most recent tax liability within the year. How to file tax return 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. How to file tax return Follow the instructions on the penalty notice that you received. How to file tax return For examples on how the IRS will apply deposits and more information on designating deposits, see Revenue Procedure 2001-58. How to file tax return You can find Revenue Procedure 2001-58 on page 579 of Internal Revenue Bulletin 2001-50 at www. How to file tax return irs. How to file tax return gov/pub/irs-irbs/irb01-50. How to file tax return pdf. How to file tax return Example. How to file tax return Cedar, Inc. How to file tax return , is required to make a deposit of $1,000 on July 15 and $1,500 on August 15. How to file tax return It does not make the deposit on July 15. How to file tax return On August 15, Cedar, Inc. How to file tax return , deposits $2,000. How to file tax return 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. How to file tax return Accordingly, $500 of the July 15 liability remains undeposited. How to file tax return The penalty on this underdeposit will apply as explained above. How to file tax return Trust fund recovery penalty. How to file tax return   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. How to file tax return The penalty is the full amount of the unpaid trust fund tax. How to file tax return This penalty may apply to you if these unpaid taxes cannot be immediately collected from the employer or business. How to file tax return   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. How to file tax return   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. How to file tax return A responsible person also may include one who signs checks for the business or otherwise has authority to cause the spending of business funds. How to file tax return    Willfully means voluntarily, consciously, and intentionally. How to file tax return 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. How to file tax return “Average” failure-to-deposit penalty. How to file tax return   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. How to file tax return 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. How to file tax return Completed Form 943, line 17, instead of Form 943-A. How to file tax return Failed to attach a properly completed Form 943-A. How to file tax return Completed Form 943-A incorrectly, for example, by entering tax deposits instead of tax liabilities in the numbered spaces. How to file tax return   IRS figures the penalty by allocating your tax liability on Form 943, line 11, equally throughout the tax period. How to file tax return Your deposits and payments may not be counted as timely because IRS does not know the actual dates of your tax liabilities. How to file tax return   You can avoid the penalty by reviewing your return before filing it. How to file tax return Follow these steps before filing your Form 943. How to file tax return If you are a monthly schedule depositor, report your tax liabilities (not your deposits) in the monthly entry spaces on Form 943, line 17. How to file tax return 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. How to file tax return 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. How to file tax return Do not show negative amounts on Form 943, line 17, or Form 943-A. How to file tax return 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. How to file tax return 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). How to file tax return Form 943 taxes and Form 941/944 taxes are not combined for purposes of applying any of the deposit schedule rules. How to file tax return If a deposit is due, deposi