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Income Tax Return 2013

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Income Tax Return 2013

Income tax return 2013 Publication 957 - Main Content Table of Contents 1. Income tax return 2013 What is Back Pay?Reporting Back Pay Back Pay Under a Statute Nonstatutory Back Pay Format for Report to the SSA Questions 2. Income tax return 2013 Special Wage PaymentsReporting Special Wage Payments Reporting Nonstatutory (Nonqualified) Stock Options as Special Wage Payments Nonqualified Deferred Compensation and Section 457 Plans Additional Reporting Examples for Nonqualified Deferred Compensation (NQDC) PlansSpecial rule for box 11 of Form W-2 (distributions and deferral in the same year). Income tax return 2013 1. Income tax return 2013 What is Back Pay? Back pay is pay received in a tax year(s) for actual or deemed employment in an earlier tax year(s). Income tax return 2013 For social security coverage and benefit purposes, all back pay, whether or not under a statute, is wages if it is payment for covered employment. Income tax return 2013 Damages for personal injury, interest, penalties, and legal fees included with back pay awards are not wages. Income tax return 2013 Report all back pay. Income tax return 2013 However, the tax year(s) for which back pay is credited as wages for social security purposes is different if it is awarded under a statute. Income tax return 2013 See Back Pay Under a Statute , later, for more information. Income tax return 2013 Reporting Back Pay The Internal Revenue Service (IRS) and the SSA consider back pay awards to be wages. Income tax return 2013 However, for income tax purposes, the IRS treats all back pay as wages in the year paid. Income tax return 2013 Employers should use Form W-2, Wage and Tax Statement, or electronic wage reports to report back pay as wages in the year they actually pay the employee. Income tax return 2013 The SSA no longer accepts reports on tapes, cartridges, and diskettes. Income tax return 2013 Example. Income tax return 2013 In 2012, Terry Morris earned wages of $50,000. Income tax return 2013 In the same year, she received $100,000 in settlement of a back pay case against her employer that covered the periods January 2007 through December 2011. Income tax return 2013 Her employer properly reflected social security wages of $110,100 and Medicare wages of $150,000 on her 2012 Form W-2. Income tax return 2013 However, if an employer did not include back pay wages on a previously filed Form W-2, magnetic media, or electronically filed wage report, the employer should prepare a wage correction report, Form W-2c, Corrected Wage and Tax Statement, or electronically filed report, to add the back pay award to the wages previously reported. Income tax return 2013 Example. Income tax return 2013 If, in the above example, Terry Morris' employer had prepared her 2012 Form W-2 reporting social security and Medicare wages of only $50,000 each, the employer would have to correct that report. Income tax return 2013 A Form W-2c correcting the 2012 Form W-2 would show previously reported social security and Medicare wages of $50,000 and the correct amount of $110,100 for social security wages and $150,000 for Medicare wages. Income tax return 2013 SSA treatment of back pay under a statute. Income tax return 2013   Under the law, the SSA credits back pay awarded under a statute to an individual's earnings record in the period(s) the wages should have been paid. Income tax return 2013 This is important because wages not credited to the proper year may result in lower social security benefits or failure to meet the requirements for benefits. Income tax return 2013   However, back pay under statute payments will remain posted to the employee's social security earnings record in the year reported on Form W-2 (or Form W-2c) unless the employer or employee notifies the SSA (in a separate, special report) of the back pay under a statute payment. Income tax return 2013 Then, the SSA can allocate the statutory back pay to the appropriate periods. Income tax return 2013   If a back pay award is not made under a statute, the SSA credits back pay as wages in the year paid. Income tax return 2013    If employers do notify the SSA of this payment, they should prepare a special report (with the information noted below) and send it to: Social Security Administration Attn: CPS Back Pay Staff 7-B-15 SWT 1500 Woodlawn Drive Baltimore, MD 21241-0001 Be sure to send this special report to the above address because the SSA handles it separately from other reports. Income tax return 2013    If you paid the back pay award in the same tax year to which it applies, report the wages on that year's Form W-2. Income tax return 2013 No further action is necessary. Income tax return 2013 Example. Income tax return 2013 In 2012, Judy Wilson received a salary of $30,000 and a back pay under statute award of $2,000 for the period January through June 2012. Income tax return 2013 Her employer properly reported wages of $32,000 for social security and Medicare on her 2012 Form W-2. Income tax return 2013 No further action is necessary. Income tax return 2013 Information the SSA needs to properly credit back pay under a statute (special report). Income tax return 2013   After you complete the special report, you or the employee should send it to the SSA when or after you submit the Form W-2 (on paper or electronically) to the SSA for the year you pay the statutory back pay to the employee. Income tax return 2013 There is no statute of limitations on the filing of the special report to enable the SSA to allocate the wages. Income tax return 2013 The special report must include the following information. Income tax return 2013 The employer's name, address, and employer identification number (EIN). Income tax return 2013 A signed statement citing the federal or state statute under which the payment was made. Income tax return 2013 If the statute is not identified, the SSA will assume the payment was not under a statute and will not allocate to earlier period(s). Income tax return 2013 The name and telephone number of a person to contact. Income tax return 2013 The SSA may have additional questions concerning the back pay case or the individual employee's information. Income tax return 2013 A list of employees receiving the payment and the following information for each employee: The tax year you paid and reported the back pay. Income tax return 2013 The employee's social security number (SSN). Income tax return 2013 The employee's name (as shown on his or her social security card). Income tax return 2013 The amount of the back pay award excluding any amounts specifically designated otherwise, for example, damages for personal injury, interest, penalties, and legal fees. Income tax return 2013 The period(s) the back pay award covers (beginning and ending dates—month and year). Income tax return 2013 The other wages paid subject to social security and/or Medicare taxes and reported in the same year as the back pay award (if none, show zero)*. Income tax return 2013 Do not include the back pay award shown in that wage report. Income tax return 2013 If you originally submitted the report under an establishment number, show that number and the amount of money that is to remain under that establishment number. Income tax return 2013 The amount to allocate to each reporting period*. Income tax return 2013 This includes any amount you want allocated (if applicable) to the tax year of the award payment. Income tax return 2013 If you do not give the SSA specific amounts to allocate, the SSA does the allocation by dividing the back pay award by the number of months or years covered by the award. Income tax return 2013 *Note. Income tax return 2013   For periods before January 1, 1978 (before January 1, 1981, for state and local government employers covered by a Section 218 agreement), show the wage amounts for each calendar quarter ending March 31, June 30, September 30, and December 31. Income tax return 2013 For all tax years, show and identify the social security and/or Medicare Qualified Government Employment (MQGE) wages (where applicable) separately. Income tax return 2013 MQGE is applicable to federal employees beginning in 1983, and for certain state and local government employees beginning in 1986. Income tax return 2013 For tax years 1991 and later, list the social security and Medicare wages separately. Income tax return 2013 If you originally reported the individual's wages under an establishment or payroll record unit number, show the amount of wages to remain in the award year for that number and furnish that number to the SSA along with the EIN. Income tax return 2013 Back Pay Under a Statute Back pay awarded under a statute is a payment by an employer following an award, determination, or agreement approved or sanctioned by a court or government agency responsible for enforcing a federal or state statute that protects an employee's right to employment or wages. Income tax return 2013 Examples of pertinent statutes include: Age Discrimination in Employment Act, Americans with Disabilities Act, Equal Pay Act, Fair Labor Standards Act, National Labor Relations Act, State minimum wage laws, and State statutes that protect rights to employment and wages. Income tax return 2013 Payments based on laws that have a similar effect to those listed above also may qualify as payments made under a statute. Income tax return 2013 Back pay awards, under some of the statutes listed above, may be compensation for personal injury and not pay for employment. Income tax return 2013 Such awards are not wages for social security coverage purposes. Income tax return 2013 If a court-approved or sanctioned settlement agreement states that the agreement is not an admission of discrimination, liability, or act of wrongdoing, the statement does not change the nature of a back pay award. Income tax return 2013 The payments made in such a settlement may still be back pay and wages under the rules discussed here. Income tax return 2013 Nonstatutory Back Pay A payment for back wages negotiated between an employer and employee without an award, determination, or agreement approved or sanctioned by a court or government agency, the payment is not made under a statute. Income tax return 2013 Delayed wage payments and retroactive pay increases resulting from union negotiation or payments under local ordinances or regulations are back pay and are wages. Income tax return 2013 However, they are not payments made under a statute. Income tax return 2013 If you are uncertain whether the back pay award was under a qualified statute, you may need to contact your personnel department or legal counsel or the attorney who filed the suit. Income tax return 2013 Format for Report to the SSA Use the format shown in Table 1, later, to send the SSA the information needed to properly credit back pay under a statute. Income tax return 2013 In a cover letter, include: Name and address of the employer, Statute under which you paid the back pay, Name and telephone number of the employer contact, and Signature of the reporting official. Income tax return 2013 Under certain circumstances, back pay may be a special wage payment and excluded from wages counted under the social security earnings test. Income tax return 2013 If you pay back pay to an employee age 61 or older, report it to the SSA in accordance with this section. Income tax return 2013 Read Special Wage Payments, later, for additional reporting instructions. Income tax return 2013 Questions If you have questions concerning back pay under a statute, call the SSA at 1-800-772-6270. Income tax return 2013 Exception. Income tax return 2013   If you are a state or local government employer who was covered by an agreement under Section 218 of the Social Security Act before January 1, 1987, and you paid a back pay award before January 1, 1987, which you did not report to the SSA, contact your state Social Security Administrator's office. Income tax return 2013 Table 1. Income tax return 2013 Format for Report (Under Covering Letter) to Request SSA to Allocate Back Pay Under Statute Wages Employer's EIN: xx-xxxxxxx Tax Year in Which Award Payment Was Paid: 2012 (1) SSN and Employee Name (2)1 Award Amount and Period(s) (3)2,3 Other Soc. Income tax return 2013 Sec. Income tax return 2013 /Med. Income tax return 2013 Wages Paid In Award Year (4)3 Allocation     Soc. Income tax return 2013 Sec. Income tax return 2013 Med. Income tax return 2013 /MQGE Year Soc. Income tax return 2013 Sec. Income tax return 2013 Med. Income tax return 2013 /MQGE xxx-xx-xxxx HELEN T. Income tax return 2013 SMITH $100,000 1/2009 - 12/2012 $40,000 $40,000 2009 2010 2011 2012 $20,000 25,000 27,000 28,000 $20,000 25,000 27,000 28,000 xxx-xx-xxxx SAM W. Income tax return 2013 EVANS 30,000 7/89-12/91 -0- -0- 1989 1990 1991   6,000 12,000 12,000 xxx-xx-xxxx ROLAND S. Income tax return 2013 ADAMS 15,000 7/80-12/81 -0- -0- 9/80 12/80 1981 3,500 3,500 8,000   1Exclude amounts specifically designated as damages, penalties, etc. Income tax return 2013  2Exclude the amount of back pay, if any, included in that amount. Income tax return 2013  3For periods before January 1, 1978 (and for state and local government (Section 218) employers before January 1, 1981), show the wage amounts by calendar quarters. Income tax return 2013 The social security and/or Medicare Qualified Government Employment (MQGE) wages (where applicable) must be shown separately FOR ALL YEARS. Income tax return 2013 (Wages subject ONLY to MQGE would be shown in the Medicare/MQGE column; no wages would be shown in the Soc. Income tax return 2013 Sec. Income tax return 2013 column. Income tax return 2013 ) For tax years 1991 and later, the social security and Medicare wages must be listed separately. Income tax return 2013 Explanation of examples. Income tax return 2013 Helen T. Income tax return 2013 Smith–The back pay award, excluding interest, was $100,000 for the periods 1/2009-12/2012. Income tax return 2013 In 2012, this employee was also paid $40,000 in other wages. Income tax return 2013 (Her Form W-2 for 2012 reported $110,100 for social security and $140,000 for Medicare. Income tax return 2013 The SSA allocation will result in adjusted posted wages of $68,000 for social security and $68,000 for Medicare for 2012. Income tax return 2013 ) Sam W. Income tax return 2013 Evans–The back pay award was $30,000 for the periods 7/89-12/91. Income tax return 2013 This employee was hired in 1989 and was subject to MQGE only. Income tax return 2013 He was no longer employed by this governmental employer in 2012. Income tax return 2013 (His Form W-2 for 2012 reported $30,000 for social security and $30,000 for Medicare. Income tax return 2013 After the SSA allocation, he will not have any net posted wages for 2012. Income tax return 2013 ) Roland S. Income tax return 2013 Adams–The back pay award was $15,000 for the periods 7/80-12/81. Income tax return 2013 He was no longer employed by this state and local government (Section 218) employer in 2012. Income tax return 2013 (His Form W-2 for 2012 reported $15,000 for social security and $15,000 for Medicare; after the SSA allocation, he will not have any net posted wages for 2012. Income tax return 2013 ) If the state Social Security Administrator's office needs more information, they can contact the SSA at the following address:   Social Security Administration Office of Income Security Programs Office of Earnings and Program Integrity Policy 6401 Security Boulevard 2506 OPS Baltimore, MD 21235 2. Income tax return 2013 Special Wage Payments A special wage payment (SWP) is an amount paid by an employer to an employee (or former employee) for services performed in a prior year. Income tax return 2013 Employers should report to the SSA special wage payments made to employees and former employees who are recipients of social security retirement benefits. Income tax return 2013 Special wage payments made to a retired employee receiving social security or to an employee who continues to work while receiving social security benefits may reduce the benefits the individual receives if not reported to the SSA. Income tax return 2013 Special wage payments may include (but are not limited to): Accumulated sick and vacation pay, Back pay, Bonuses, Deferred compensation, Payments because of retirement, Sales commissions, Severance pay, and Stock options. Income tax return 2013 Note. Income tax return 2013 Payments made after retirement that are part of the normal payroll cycle should not be routinely reported as special wage payments. Income tax return 2013 Earnings Test. Income tax return 2013   Benefits paid to a social security beneficiary under full retirement age may be reduced if the beneficiary continues to work. Income tax return 2013 The SSA uses the information in boxes 1, 3, and 5 of Form W-2 to determine the beneficiary's current year earnings. Income tax return 2013 Special wage payments, which are for services performed in a prior year, will increase the current year earnings on Form W-2, which also may result in a reduction in the beneficiary's benefits. Income tax return 2013 If a benefit is reduced because of a special wage payment, the beneficiary must get documentation from the employer before the SSA can restore the deducted portion. Income tax return 2013 Therefore, employer reports of special wage payments help prevent incorrect benefit reductions. Income tax return 2013 Reporting Special Wage Payments Employers must report special wage payments for income tax purposes and social security and Medicare taxes in the year received. Income tax return 2013 Report income, social security, and/or Medicare taxes for special wage payments on Form W-2. Income tax return 2013 See Nonqualified Deferred Compensation and Section 457 Plans, later, for reporting nonqualified deferred compensation plan deferrals and payments on Form W-2. Income tax return 2013 In addition, report to the SSA special wage payments made during the reporting year to retired employees and employees who continue to work while receiving social security benefits. Income tax return 2013 Submit reports after the close of the tax year. Income tax return 2013 To avoid delays in processing, submit reports in time to reach the SSA by April 1. Income tax return 2013 Use one of the following reporting methods. Income tax return 2013 Electronic reporting. Income tax return 2013   Special wage payment files can be sent electronically by logging onto Business Services Online (BSO) via the socialsecurity. Income tax return 2013 gov website. Income tax return 2013 BSO enables organizations and authorized individuals to conduct business with and submit confidential information to the Social Security Administration. Income tax return 2013 You must register to use this website. Income tax return 2013 The web address is www. Income tax return 2013 socialsecurity. Income tax return 2013 gov/bso/bsowelcome. Income tax return 2013 htm. Income tax return 2013   Use the specifications and record layout shown in  Table 2, later. Income tax return 2013 Only one file at a time may be submitted. Income tax return 2013 If your file is large (>10MB), or you have a slow internet connection, the transmission will be faster if the file is zipped. Income tax return 2013 A zipped file contains a file that has been compressed to reduce its file size. Income tax return 2013 WinZip and PKZIP are examples of acceptable compression packages. Income tax return 2013   Electronic submissions not meeting the specifications in Table 2 will be rejected. Income tax return 2013 Paper listing. Income tax return 2013   A paper listing can be used to report special wage payments to several employees. Income tax return 2013 Use the format shown in Table 3, later. Income tax return 2013 Submit paper listings to the local SSA office nearest your place of business. Income tax return 2013 Visit www. Income tax return 2013 socialsecurity. Income tax return 2013 gov/locator to find a Social Security office near you. Income tax return 2013 Form SSA-131. Income tax return 2013   Use Form SSA-131 to report special wage payments made to an employee. Income tax return 2013 Also use this form to report nonqualified deferred compensation and section 457 plan deferrals and payments that could not be reported in box 11 of Form W-2. Income tax return 2013    This image is too large to be displayed in the current screen. Income tax return 2013 Please click the link to view the image. Income tax return 2013 Publication 957 Reporting Back Pay to the Social Security Administration Instructions for Form SSA–131   EMPLOYER INSTRUCTIONS FOR COMPLETING SPECIAL WAGE PAYMENT FORM 1. Income tax return 2013 Provide the EIN that was used or will be used to report the employee's wages on the Form W-2. Income tax return 2013 2. Income tax return 2013 Enter the date the employee retired. Income tax return 2013 Enter “Not Retired” if the employee has not retired. Income tax return 2013 3. Income tax return 2013 Enter the date that the employee last performed services; was not expected to return to work; and was not subject to recall to render additional services. Income tax return 2013 This date should be the same as or earlier than the date in item “2”. Income tax return 2013 Enter “Not Retired” if the employee has not retired. Income tax return 2013 4. Income tax return 2013 Enter the wages that were paid to the employee in the tax year that were for services that were performed in years prior to the tax year or that were paid on account of retirement. Income tax return 2013  Examples (not all inclusive) of payments to be included: Payments in lieu of vacation that were earned in a year prior to the tax year. Income tax return 2013 Accumulated sick payments which were paid in a lump sum based on “retirement” as the sole condition of payment. Income tax return 2013 Accumulated sick payments paid at or after the date in item 3, which were earned in a year prior to the tax year. Income tax return 2013 Payments “on account of retirement”–dismissal, severance or termination pay paid because of retirement. Income tax return 2013 Bonuses which are paid pursuant to a prior contract, agreement or promise causing the employee to expect such payments regularly; or announced to induce the employee to work more steadily, rapidly or efficiently or to remain with the employer. Income tax return 2013 Stock Options. Income tax return 2013   Do not include in item “4” payments: For annual, sick, holiday, or vacation pay if used (absence from work) prior to the date of retirement (earlier of items “2” or “3”). Income tax return 2013 That were reported or will be reported under “Nonqualified Plans” on the Form W-2. Income tax return 2013 That were deducted from the employee's wages and paid to a deferred compensation plan (e. Income tax return 2013 g. Income tax return 2013 , 401k). Income tax return 2013 Employees health and dental plan benefits (non-covered/non-taxable for Social Security Wages). Income tax return 2013 Bonuses earned and paid in the tax year. Income tax return 2013 5. Income tax return 2013 Check whether payments listed in item 4 will be made for years after the tax year. Income tax return 2013 If yes, please show the amounts and years in which these will be paid, if known. Income tax return 2013 6. Income tax return 2013 Nonqualified deferred compensation and section 457 plans only. Income tax return 2013 If you were unable to report nonqualified deferred compensation or section 457 plan payments and deferrals (contributions) on Form W-2 because both payments and deferrals occurred during the year, show the amount of wages earned by the employee during the tax year. Income tax return 2013 Generally, the wages earned will be the compensation reported in block 1 of Form W-2 less payments from a nonqualified deferred compensation (or 457) plan, but including any amounts deferred under the plan during the tax year (See IRS Publication 957). Income tax return 2013 Paperwork/Privacy Act Notice: This report is authorized by regulation 20 CFR 404. Income tax return 2013 702. Income tax return 2013 The information that you provide will be used in making a determination regarding the amount of Social Security benefits payable to the above named individual. Income tax return 2013 While your response is voluntary, if you do not respond we may not be able to make a correct determination regarding the amount of Social Security benefits payable to the above named individual for the year in question. Income tax return 2013 We may also use the information you give us when we match records by computer. Income tax return 2013 Matching programs compare our records with those of other Federal, State, or local government agencies. Income tax return 2013 Many agencies may use matching programs to find or prove that a person qualifies for benefits paid by the Federal Government. Income tax return 2013 The law allows us to do this even if you do not agree to it. Income tax return 2013 Explanations about these and other reasons why information you provide us may be used or given out are available in Social Security Offices. Income tax return 2013 If you want to learn more about this, contact any Social Security Office. Income tax return 2013 The Paperwork Reduction Act: This information collection meets the clearance requirements of 44 U. Income tax return 2013 S. Income tax return 2013 C. Income tax return 2013 §3507, as amended by Section 2 of the Paperwork Reduction Act of 1995. Income tax return 2013 You are not required to answer these questions unless we display a valid Office of Management and Budget control number. Income tax return 2013 We estimate that it will take you about 20 minutes to read the instructions, gather the necessary facts, and answer the questions. Income tax return 2013 Form SSA-131 (8-2001) EF (06-2002)   Submit Form SSA-131 to the SSA office nearest your place of business. Income tax return 2013 Or, the employee can submit it to the SSA office handling the claim. Income tax return 2013 You or the employee must submit this form before the SSA can exclude the special wage payments for purposes of the earnings test. Income tax return 2013 If reporting on more than one employee, complete a separate Form SSA-131 for each employee or use the paper listing format (except for reporting nonqualified and section 457 plan deferrals and payments) in Table 3. Income tax return 2013 Do not report payments from nonqualified deferred compensation or section 457 plans that were reported in box 11 of Form W-2. Income tax return 2013 Use Form SSA-131 if deferrals to and payments from nonqualified or section 457 plans occurred during the tax year. Income tax return 2013 Reporting Nonstatutory (Nonqualified) Stock Options as Special Wage Payments A nonstatutory (nonqualified) option to purchase stock which is exercised in a year after the year in which the option was earned is a special wage payment. Income tax return 2013 It should not count for the social security earnings test. Income tax return 2013 Nonstatutory (nonqualified) options exercised as special wage payments by retired employees or employees who continue to work while receiving social security benefits should be reported by employers using the above reporting methods. Income tax return 2013 Nonqualified Deferred Compensation and Section 457 Plans A nonqualified deferred compensation plan is a plan or arrangement established and maintained by an employer for one or more of its employees that provides for the deferral of compensation, but does not meet the requirements for a tax-qualified deferred compensation plan. Income tax return 2013 For social security and Medicare purposes, deferred compensation plans for employees of state and local governments (section 457 plans) are treated the same as nonqualified plans. Income tax return 2013 Nonqualified and section 457 plans are reported differently than other special wage payments. Income tax return 2013 See Reporting Amounts Deferred to Nonqualified and Section 457 Plans below for specific instructions. Income tax return 2013 Reporting Amounts Deferred to Nonqualified and Section 457 Plans Generally, when the related services are performed, nonqualified deferred compensation is subject to social security and Medicare tax when deferred. Income tax return 2013 However, if nonqualified and section 457 plans contain provisions that delay the employee's right to receive payments from the plan, a period of substantial risk of forfeiture exists. Income tax return 2013 The plans' deferrals, or contributions, are not subject to social security and Medicare taxes until the period of substantial risk of forfeiture ends. Income tax return 2013 No risk of forfeiture. Income tax return 2013   If there is no risk of forfeiture, report wage amounts deferred to a nonqualified deferred compensation or section 457 plan in box 3 (up to the wage base maximum) and/or box 5 of Form W-2. Income tax return 2013 Example. Income tax return 2013 Company X's nonqualified deferred compensation plan allows the deferral of up to $20,000 of employee salaries each year. Income tax return 2013 The plan has no risk of forfeiture. Income tax return 2013 In 2012, Employee A defers $20,000 to the plan from a total salary of $200,000. Income tax return 2013 Form W-2 Completion Amount Box 1 $200,000 Box 3* 110,100 Box 5 200,000 *Wage base maximum for tax year 2012 Risk of forfeiture lapses before retirement. Income tax return 2013   If the substantial risk of forfeiture lapses before the employee retires, report all past contributions to the plan (or the value of the plan), including accumulated earned interest, in box 3 (up to the wage base maximum) and/or box 5 of Form W-2. Income tax return 2013 The accumulated deferrals are reported along with any other social security and Medicare wages earned during the year. Income tax return 2013   Report in box 11 of Form W-2 the amount of deferrals, including any accumulated interest, that became taxable for social security and Medicare taxes during the year (but were for prior year services) because the deferred amounts were no longer subject to a substantial risk of forfeiture. Income tax return 2013 If the employee continues working, future deferrals are social security and Medicare wages when they are earned. Income tax return 2013    Do not include in box 11 deferrals that are included in boxes 3 and/or 5 and that are for current year services. Income tax return 2013 Risk of forfeiture lapses at retirement. Income tax return 2013   When an employee's right to a payment is contingent upon working until retirement, report all past contributions to the plan (or the value of the plan), including accumulated earned interest, as social security and/or Medicare wages in the year of retirement. Income tax return 2013 Add the amount to other wages paid in that year, and enter in box 3 (up to the wage base maximum) and/or box 5 of Form W-2. Income tax return 2013   Report in box 11 of Form W-2 the amount of deferrals, including any accumulated interest, that became taxable for social security and Medicare taxes during the year (but were for prior year services) because the deferred amounts were no longer subject to a substantial risk of forfeiture. Income tax return 2013    Do not include in box 11 deferrals that are included in boxes 3 and/or 5 and that are for current year services. Income tax return 2013 Example—risk of forfeiture. Income tax return 2013 At the end of the risk-of-forfeiture period for Company Y's nonqualified deferred compensation plan, Employee B's accumulated deferrals, plus interest earned by the plan, are $120,000, not including B's $20,000 deferral for this year. Income tax return 2013 B's wages, including this year's deferred amount, are $80,000. Income tax return 2013 Form W-2 Completion Amount Box 1 $60,000 Box 3* 110,100 Box 5 200,000 Box 11 120,000 *Wage base maximum for tax year 2012 Reporting Payments From Nonqualified and Nongovernmental Section 457 Plans When an employee or former employee retires and begins receiving payments (distributions) from a nonqualified or nongovernmental section 457 plan, report the payments in boxes 1 and 11 of Form W-2. Income tax return 2013 Report payments (distributions) from a governmental section 457 plan on Form 1099-R, Distributions from Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. Income tax return 2013 Example. Income tax return 2013 Employee D retired from the XYZ company and began receiving social security benefits. Income tax return 2013 XYZ paid D a $12,000 bonus upon retirement for sales made in a prior year, and D received $25,000 in payments from XYZ's nonqualified deferred compensation plan. Income tax return 2013 In addition, D agreed to continue performing services for XYZ, but on a part-time basis for wages of $15,000 per year. Income tax return 2013 D made no deferrals to the nonqualified plan this year. Income tax return 2013 Form W-2 Completion Amount Box 1 $52,000 Box 3 27,000 Box 5 27,000 Box 11 25,000 Report the $12,000 bonus to the SSA using electronic reporting, a paper listing, or Form SSA-131. Income tax return 2013 For more information, see Reporting Special Wage Payments , earlier. Income tax return 2013 Reporting Payments and Deferrals in the Same Year Do not complete box 11 when payments (distributions) are made from a nonqualified plan and deferrals are reported in boxes 3 and/or 5 of Form W-2 (including current year deferrals). Income tax return 2013 Report to the SSA on Form SSA-131 the total amount the employee earned during the tax year. Income tax return 2013 Normally, the amount earned is the amount reported in box 1 of Form W-2 less payments from a nonqualified or section 457 plan, but including any amounts deferred under the plan during the tax year. Income tax return 2013 See Form SSA-131 and its instructions, earlier. Income tax return 2013 Example. Income tax return 2013 Employee K retired this year from Company XYZ and began receiving social security benefits. Income tax return 2013 During the year he earned wages of $50,000 and deferred $35,000 of the wages into the company's nonqualified deferred compensation plan. Income tax return 2013 K also received $75,000 in payments from the company's nonqualified plan. Income tax return 2013 Form W-2 Completion Amount Special Wage Payment $75,000 Wages 50,000 Minus: deferral 35,000 Total reported in Box 1 $90,000     Wages including deferral reported in  Boxes 3 and 5 $50,000     Leave Box 11 blank. Income tax return 2013 File Form SSA-131 -0-     Form SSA-131 Completion Amount from Box 1 of Form W-2 $90,000 Minus: payments from a nonqualified plan 75,000 Plus: amounts deferred into the plan during the year 35,000 Total wages earned for purposes of Form SSA-131 (item 6) $50,000 Additional Reporting Examples for Nonqualified Deferred Compensation (NQDC) Plans It is not necessary to show amounts deferred during the year under an NQDC plan subject to section 409A. Income tax return 2013 If you report section 409A deferrals, show the amount in box 12 of Form W-2 using code Y. Income tax return 2013 For more information, see Notice 2008-115, 2008-52 I. Income tax return 2013 R. Income tax return 2013 B. Income tax return 2013 1367, available at www. Income tax return 2013 irs. Income tax return 2013 gov/irb/2008-52_IRB/ar10. Income tax return 2013 html. Income tax return 2013 Special reporting rules apply when an NQDC plan is not compliant with section 409A (when there has been a “plan failure”). Income tax return 2013 Income included under section 409A from an NQDC plan is reported in box 1 and box 12 of Form W-2 using code Z. Income tax return 2013 See Notice 2008-115. Income tax return 2013 The following examples use small dollar amounts for illustrative purposes. Income tax return 2013 However, the amount reported in box 3 of Form W-2 is always limited by the social security earnings wage base (for example, $110,100 for 2012). Income tax return 2013 The term “vested” in the following examples means that the amount deferred is not subject to a substantial risk of forfeiture. Income tax return 2013 Conversely, the term “not vested” means that the amount deferred is subject to a substantial risk of forfeiture. Income tax return 2013 The examples assume that the NQDC plan is in compliance with section 409A, and that amounts deferred under the plan are not includible in gross income as they are deferred. Income tax return 2013 For purposes of the examples, it is assumed that the regular pay of the employee is remuneration for employment and wages for employment tax purposes except to the extent the deferral of a portion of the regular pay results in a reduction in wages. Income tax return 2013 Example 1: Deferral that is immediately vested (no substantial risk of forfeiture) with no distributions and no vesting of prior-year deferrals. Income tax return 2013 For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into her employer’s NQDC plan. Income tax return 2013 The deferral of $20 was vested upon deferral and there was an employer match of $10 under the plan, which was also vested. Income tax return 2013 Regular pay = $200; Deferral, vested = $20; Employer match, vested = $10. Income tax return 2013 Form W-2 Completion Amount Box 1 ($200 Regular pay minus $20 vested deferral) $180 Box 3 ($200 Regular pay plus $10 Employer match, vested) 210 Box 5 ($200 Regular pay plus $10 Employer match, vested) 210 Box 11 -0- Example 2: Deferral with delayed vesting (substantial risk of forfeiture) of employee and employer portions (no distributions and no vesting of prior-year deferrals). Income tax return 2013 For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into the employer’s nonqualified deferred compensation plan. Income tax return 2013 The deferral of $20 was not vested upon deferral, and there was an employer match of $10 under the plan, which was also not vested. Income tax return 2013 Regular pay = $200; Deferral, not vested = $20; Employer match, not vested = $10. Income tax return 2013 Form W-2 Completion Amount Box 1 ($200 Regular pay minus $20 Deferral, not vested) $180 Box 3 ($200 Regular pay minus $20 Deferral, not vested) 180 Box 5 ($200 Regular pay minus $20 Deferral, not vested) 180 Box 11 -0- Example 3: Deferral that is immediately vested with prior-year deferrals and investment earnings on the prior-year deferrals that are now vesting (no distributions). Income tax return 2013 For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into the employer’s nonqualified deferred compensation plan. Income tax return 2013 The deferral of $20 was vested upon deferral. Income tax return 2013 During the year, $100 of prior-year deferrals and $15 of investment earnings on the $100 of prior-year deferrals became vested. Income tax return 2013 Regular pay = $200; Deferral, vested = $20; Vesting of prior-year deferrals = $100; Vesting of investment earnings on $100 of prior-year deferral = $15. Income tax return 2013 Form W-2 Completion Amount Box 1 ($200 Regular pay minus $20 Deferral, vested) $180 Box 3 ($200 Regular pay plus $100 vested prior-year deferral plus $15 earnings on deferral) 315 Box 5 ($200 Regular pay plus $100 vested prior-year deferral plus $15 vested investment earnings on prior year deferral) 315 Box 11 ($100 vested prior-year deferral plus $15 earnings) 115 Example 4: No deferrals but there are distributions (no vesting of prior-year deferrals). Income tax return 2013 For the year, the employee’s regular pay was $100, and the employee deferred no pay into the employer’s NQDC plan. Income tax return 2013 There was no vesting of prior-year deferrals under the plan. Income tax return 2013 During the year, there were total distributions of $50 from the plan to the employee. Income tax return 2013 Regular pay = $100; Distribution = $50. Income tax return 2013 Form W-2 Completion Amount Box 1 ($100 Regular pay plus $50 Distribution) $150 Box 3 ($100 Regular pay ) 100 Box 5 ($100 Regular pay) 100 Box 11 ($50 Distribution) 50 Special rule for box 11 of Form W-2 (distributions and deferral in the same year). Income tax return 2013   If, in the same year, there are NQDC distributions and there are deferrals that are reportable in boxes 3 and/or 5 (current or prior-year deferrals) of Form W-2, do not complete box 11. Income tax return 2013 Instead, report on Form SSA-131 the total amount the employee earned during the year. Income tax return 2013 * Submit the SSA-131 to the nearest SSA office or give it to the employee. Income tax return 2013   *Generally, the amount earned by the employee during the tax year for purposes of item 6 of Form SSA-131 is the amount reported in box 1 of Form W-2 plus current-year deferrals that are vested (employee and employer portions) less distributions. Income tax return 2013 Do not consider prior-year deferrals that are vesting in the current year. Income tax return 2013 If there was a plan failure, the box 1 amount in this calculation should be as if there were no plan failure. Income tax return 2013 Example 5: Deferral that is immediately vested and there are distributions (no vesting of prior-year deferrals). Income tax return 2013 For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into the employer’s NQDC plan. Income tax return 2013 There was also an employer match of $10. Income tax return 2013 The deferral and employer match were vested upon deferral. Income tax return 2013 There was no vesting of prior-year deferrals under the plan. Income tax return 2013 During the year, there were total distributions of $50 from the plan to the employee. Income tax return 2013 Regular pay = $200; Deferral, vested = $20; Employer match, vested = $10; Distribution = $50. Income tax return 2013 Form W-2 Completion Amount Box 1 ($50 Special Wage Payment (Distribution) plus $200 Regular pay minus $20 Deferral, vested) $230 Boxes 3 and 5 ($200 Regular pay plus $10 vested employer match) 210 Leave Box 11 blank. Income tax return 2013 File Form SSA-131 -0-     Form SSA-131 Completion Item 6 - amount of wages earned by the employee during the tax year ($230 from Box 1 of Form W-2 minus $50 Distribution plus $30 vested current year employee deferral and employer match) $210 Example 6: Deferral with delayed vesting and there are distributions (no vesting of prior-year deferrals). Income tax return 2013 For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into the employer’s NQDC plan. Income tax return 2013 The deferral was not vested upon deferral. Income tax return 2013 There was no vesting of prior-year deferrals under the plan. Income tax return 2013 During the year, there were total distributions of $50 from the plan to the employee. Income tax return 2013 Regular pay = $200; Deferral, not vested = $20; Distribution = $50. Income tax return 2013 Form W-2 Completion Amount Box 1 ($50 Special Wage Payment (Distribution) plus $200 Regular pay minus $20 Deferral, not vested) $230 Boxes 3 and 5 ($200 Regular pay minus $20 deferral that is not vested) 180 Box 11 ($50 Distribution). Income tax return 2013 50 Example 7: Deferral that is immediately vested and there are distributions (also vesting of prior-year deferrals and earnings on those prior-year deferrals). Income tax return 2013 For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into the employer’s NQDC plan. Income tax return 2013 The deferral was vested upon deferral. Income tax return 2013 There was vesting of $100 of prior-year deferrals and $15 of earnings on the $100 prior-year deferral under the plan. Income tax return 2013 During the year, there were total distributions of $50 from the plan to the employee. Income tax return 2013 Regular pay = $200; Deferral, vested = $20; Distribution = $50; Vesting of prior-year deferrals ($100) and earnings on those prior-year deferrals ($15) = $115. Income tax return 2013 Form W-2 Completion Amount Box 1 ($50 Special Wage Payment (Distribution) plus $200 Regular pay minus $20 vested deferral $230 Boxes 3 and 5 ($200 Regular pay Plus $115 vested prior deferral (with vested earnings on the deferral)) 315 Leave Box 11 blank. Income tax return 2013 File Form SSA-131 -0-     Form SSA-131 Completion Item 6, amount of wages earned by the employee during the tax year ($230 from Box 1 of Form W-2 minus $50 Distribution plus $20 vested current year deferral) $200 Example 8: Deferral with delayed vesting and there are distributions (vesting of prior-year deferrals, including employer matches, and earnings on those deferrals). Income tax return 2013 For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into the employer’s NQDC plan. Income tax return 2013 The deferral was not vested upon deferral. Income tax return 2013 There was also vesting of prior-year deferrals and employer matches and earnings on these amounts under the plan ($115). Income tax return 2013 During the year, there were total distributions of $50 from the plan to the employee. Income tax return 2013 Regular pay = $200; Deferral, not vested = $20; Distribution = $50; Vesting of prior-year deferrals and employer match = $100 plus earnings on that $100 of $15. Income tax return 2013 Form W-2 Completion Amount Box 1 ($50 Special Wage Payment (Distribution) plus $200 regular pay minus $20 Deferral, not vested) $230 Boxes 3 and 5 ($200 Regular pay plus $115 vested prior-year deferral and prior year employer match and earning on the prior year amounts minus $20 deferral that is not vested) 295 Leave Box 11 blank. Income tax return 2013 File Form SSA-131 -0-     Form SSA-131 Completion Item 6 ($230 Amount from Box 1 of Form W-2 minus $50 Distribution) $180 Table 2. Income tax return 2013 Specifications for Electronic Reporting of Special Wage Payments Record Position  Field Size   Description Start End 1 3 3 Record Type—must include only the capital letters “SWP” 4 12 9 SSN—must be numeric and may not be all zeros 13 27 15 Last Name—all capitals and no punctuation; may have blanks on right only 28 38 11 First Name—all capitals and no punctuation; may have blanks on right only 39 39 1 Middle Initial—must be either a capital letter or blank 40 48 9 EIN—must be numeric and may not be all zeros 49 59 11 Payment—must be numeric; may not be all zeros; last two digits on right are assumed to be cents; no period or dollar sign 60 63 4 Payment Year—must be only a four-digit year 64 66 3 SSA Office Code—must be numeric and may be all zeros 67 67 1 Payment Type Code—must be the capital letter “T” 68 117 50 Filler  The record format is a fixed length of 117. Income tax return 2013  The file format is ASCII. Income tax return 2013  Submit only one file at a time. Income tax return 2013   Table 3. Income tax return 2013 Sample—Paper Listing for Reporting Special Wage Payments to Several Employees Report of Special Wage PaymentsTax Year: Page of A. Income tax return 2013 Employer Name: EIN:   Address: Contact Name:     Phone: ( )   . Income tax return 2013 1) B. Income tax return 2013 Employee Name: (Last) (First) (MI)   C. Income tax return 2013 SSN: D. Income tax return 2013 SWP:$ E. Income tax return 2013 Type: Other: 2) B. Income tax return 2013 Employee Name: (Last) (First) (MI)   C. Income tax return 2013 SSN: D. Income tax return 2013 SWP:$ E. Income tax return 2013 Type: Other: 3) B. Income tax return 2013 Employee Name: (Last) (First) (MI)   C. Income tax return 2013 SSN: D. Income tax return 2013 SWP:$ E. Income tax return 2013 Type: Other: 4) B. Income tax return 2013 Employee Name: (Last) (First) (MI)   C. Income tax return 2013 SSN: D. Income tax return 2013 SWP:$ E. Income tax return 2013 Type: Other: 5) B. Income tax return 2013 Employee Name: (Last) (First) (MI)   C. Income tax return 2013 SSN: D. Income tax return 2013 SWP:$ E. Income tax return 2013 Type: Other:     INSTRUCTIONS:   Enter tax year and page number. Income tax return 2013   A. Income tax return 2013 Employer name, employer identification number (EIN), address, the name of a contact person, and a phone number where the contact person can be reached during normal business hours. Income tax return 2013   B. Income tax return 2013 Employee's name. Income tax return 2013   C. Income tax return 2013 Employee's social security number (SSN). Income tax return 2013   D. Income tax return 2013 Total amount of special wage payments made to the employee. Income tax return 2013   E. Income tax return 2013 Type of special wage payment from the following list: (1) Vacation Pay, (2) Sick Pay, (3) Severance Pay,  (4) Bonus, (5) Deferred Compensation, (6) Stock Options, and (7) Other—Please explain. Income tax return 2013   Do not use a paper listing for nonqualified deferred compensation and section 457 plan deferrals and payments that could not be reported in block 11 of Form W-2. Income tax return 2013 (Get Form SSA-131. Income tax return 2013 )                 Prev  Up  Next   Home   More Online Publications
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Tax Relief for Victims of March 11 Floods in South Dakota

Updated 9/02/11 to include Yankton county.

SD-2011-19, August 24, 2011

ST. PAUL — Victims of flooding that began on March 11, 2011 in parts of South Dakota may qualify for tax relief from the Internal Revenue Service.

The President has declared the following counties a federal disaster area: Charles Mix, Hughes, Stanley, Union and Yankton. Individuals who reside or have a business in these counties may qualify for tax relief.

The declaration permits the IRS to postpone certain deadlines for taxpayers who reside or have a business in the disaster area. For instance, certain deadlines falling on or after March 11 and on or before June 30 have been postponed to June 30. This includes the April 18 deadline for filing 2010 individual income tax returns, making income tax payments and making 2010 contributions to an individual retirement account (IRA). This also includes the estimated tax payment for the second quarter of 2011 normally due June 15.

In addition, the IRS is waiving the failure-to-deposit penalties for employment and excise tax deposits due on or after March 11 and on or before March 28, 2011, as long as the deposits were made by March 28, 2011.

If an affected taxpayer receives a penalty notice from the IRS, the taxpayer should call the telephone number on the notice to have the IRS abate any interest and any late filing or late payment penalties that would otherwise apply. Penalties or interest will be abated only for taxpayers who have an original or extended filing, payment or deposit due date, including an extended filing or payment due date, that falls within the postponement period.

The IRS automatically identifies taxpayers located in the covered disaster area and applies automatic filing and payment relief. But affected taxpayers who reside or have a business located outside the covered disaster area must call the IRS disaster hotline at 1-866-562-5227 to request this tax relief.

Covered Disaster Area

The counties listed above constitute a covered disaster area for purposes of Treas. Reg. § 301.7508A-1(d)(2) and are entitled to the relief detailed below.

Affected Taxpayers

Taxpayers considered to be affected taxpayers eligible for the postponement of time to file returns, pay taxes and perform other time-sensitive acts are those taxpayers listed in Treas. Reg. § 301.7508A-1(d)(1), and include individuals who live, and businesses whose principal place of business is located, in the covered disaster area. Taxpayers not in the covered disaster area, but whose records necessary to meet a deadline listed in Treas. Reg. § 301.7508A-1(c) are in the covered disaster area, are also entitled to relief. In addition, all relief workers affiliated with a recognized government or philanthropic organization assisting in the relief activities in the covered disaster area and any individual visiting the covered disaster area who was killed or injured as a result of the disaster are entitled to relief.

Grant of Relief

Under section 7508A, the IRS gives affected taxpayers until June 30 to file most tax returns (including individual, corporate, and estate and trust income tax returns; partnership returns, S corporation returns, and trust returns; estate, gift, and generation-skipping transfer tax returns; and employment and certain excise tax returns), or to make tax payments, including estimated tax payments, that have either an original or extended due date occurring on or after March 11 and on or before June 30.

The IRS also gives affected taxpayers until June 30 to perform other time-sensitive actions described in Treas. Reg. § 301.7508A-1(c)(1) and Rev. Proc. 2007-56, 2007-34 I.R.B. 388 (August 20, 2007), that are due to be performed on or after March 11 and on or before June 30.

This relief also includes the filing of Form 5500 series returns, in the manner described in section 8 of Rev. Proc. 2007-56. The relief described in section 17 of Rev. Proc. 2007-56, pertaining to like-kind exchanges of property, also applies to certain taxpayers who are not otherwise affected taxpayers and may include acts required to be performed before or after the period above.

The postponement of time to file and pay does not apply to information returns in the W-2, 1098, 1099 series, or to Forms 1042-S or 8027. Penalties for failure to timely file information returns can be waived under existing procedures for reasonable cause. Likewise, the postponement does not apply to employment and excise tax deposits. The IRS, however, will abate penalties for failure to make timely employment and excise tax deposits due on or after March 11 and on or before March 28 provided the taxpayer made these deposits by March 28.

Casualty Losses

Affected taxpayers in a federally declared disaster area have the option of claiming disaster-related casualty losses on their federal income tax return for either this year or last year. Claiming the loss on an original or amended return for last year will get the taxpayer an earlier refund, but waiting to claim the loss on this year’s return could result in a greater tax saving, depending on other income factors.

Individuals may deduct personal property losses that are not covered by insurance or other reimbursements. For details, see Form 4684 and its instructions.
Affected taxpayers claiming the disaster loss on last year’s return should put the Disaster Designation “South Dakota/Flooding” at the top of the form so that the IRS can expedite the processing of the refund.

Other Relief

The IRS will waive the usual fees and expedite requests for copies of previously filed tax returns for affected taxpayers. Taxpayers should put the assigned Disaster Designation in red ink at the top of Form 4506, Request for Copy of Tax Return, or Form 4506-T, Request for Transcript of Tax Return, as appropriate, and submit it to the IRS.

Affected taxpayers who are contacted by the IRS on a collection or examination matter should explain how the disaster impacts them so that the IRS can provide appropriate consideration to their case.

Taxpayers may download forms and publications from the official IRS website, irs.gov, or order them by calling 1-800-TAX-FORM (1-800-829-3676). The IRS toll-free number for general tax questions is 1-800-829-1040.

Related Information

Page Last Reviewed or Updated: 20-Mar-2014

The Income Tax Return 2013

Income tax return 2013 Publication 517 - Introductory Material Table of Contents What's New Reminders IntroductionOrdering forms and publications. Income tax return 2013 Tax questions. Income tax return 2013 Useful Items - You may want to see: What's New SE tax rate. Income tax return 2013  For 2013 and 2014, the Old Age, Survivors, and Disability Insurance (OASDI) portion of the SE tax is 12. Income tax return 2013 4%. Income tax return 2013 The Medicare (HI) portion of the SE tax remains 2. Income tax return 2013 9%. Income tax return 2013 As a result, the SE tax rate returns to 15. Income tax return 2013 3%. Income tax return 2013 For more information, see the Instructions for Schedule SE (Form 1040). Income tax return 2013 Earnings subject to social security. Income tax return 2013  For 2013, the maximum wages and self-employment income subject to social security tax increases from $110,100 to $113,700. Income tax return 2013 For 2014, the maximum wages and self-employment income subject to social security tax is $117,000. Income tax return 2013 Additional Medicare Tax. Income tax return 2013  Beginning in 2013, a 0. Income tax return 2013 9% Additional Medicare Tax applies to Medicare wages, railroad retirement (RRTA) compensation, and self-employment income that are more than: $125,000 if married filing separately, $250,000 if married filing jointly, or $200,000 for any other filing status. Income tax return 2013 For more information, see Form 8959, Additional Medicare Tax, and its separate instructions. Income tax return 2013 Modified AGI limit for traditional IRA contributions increased. Income tax return 2013  For 2013, you may be able to take an IRA deduction if you were covered by a retirement plan at work and your modified AGI is: Less than $115,000 if married filing jointly or qualifying widow(er), Less than $69,000 if single or head of household, or Less than $10,000 if married filing separately. Income tax return 2013 If you file a joint return and either you or your spouse was not covered by a retirement plan at work, you may be able to take an IRA deduction if your modified AGI is less than $188,000. Income tax return 2013 Modified AGI limit for Roth IRA contributions increased. Income tax return 2013  For 2013, you may be able to contribute to your Roth IRA if your modified AGI is: Less than $188,000 if married filing jointly or qualifying widow(er), Less than $127,000 if single, head of household, or married filing separately and you did not live with your spouse at any time during the year, or Less than $10,000 if married filing separately and you lived with your spouse at any time during the year. Income tax return 2013 Earned income credit (EIC). Income tax return 2013  For 2013, the maximum amount of income you can earn and still claim the EIC has increased. Income tax return 2013 You may be able to take the EIC if you earned less than $46,227 ($51,567 for married filing jointly) and you have three or more qualifying children; $43,038 ($48,378 for married filing jointly) and you have two qualifying children; $37,870 ($43,210 for married filing jointly) and you have one qualifying child; and $14,340 ($19,680 for married filing jointly) and you do not have any qualifying children. Income tax return 2013 Reminders Future developments. Income tax return 2013 . Income tax return 2013   For the latest information about developments related to Publication 517, such as legislation enacted after it was published, go to www. Income tax return 2013 irs. Income tax return 2013 gov/pub517. Income tax return 2013 Photographs of missing children. Income tax return 2013  The Internal Revenue Service is a proud partner with the National Center for Missing & Exploited Children. Income tax return 2013 Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. Income tax return 2013 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. Income tax return 2013 Introduction Three federal taxes are paid on wages and self-employment income—income tax, social security tax, and Medicare tax. Income tax return 2013 Social security and Medicare taxes are collected under one of two systems. Income tax return 2013 Under the Self-Employment Contributions Act (SECA), the self-employed person pays all the taxes. Income tax return 2013 Under the Federal Insurance Contributions Act (FICA), the employee and the employer each pay half of the social security and Medicare taxes. Income tax return 2013 No earnings are subject to both systems. Income tax return 2013 Table 1. Income tax return 2013 Are Your Ministerial Earnings* Covered Under FICA or SECA? Find the class to which you belong in the left column and read across the table to find if you are covered under FICA or SECA. Income tax return 2013 Do not rely on this table alone. Income tax return 2013 Also read the discussion for the class in the following pages. Income tax return 2013 Class Covered under FICA? Covered under SECA? Minister NO. Income tax return 2013 Your ministerial earnings are exempt. Income tax return 2013 YES, if you do not have an approved exemption from the IRS. Income tax return 2013   NO, if you have an approved exemption. Income tax return 2013 Member of a religious order who has not taken a vow of poverty NO. Income tax return 2013 Your ministerial earnings are exempt. Income tax return 2013 YES, if you do not have an approved exemption from the IRS. Income tax return 2013   NO, if you have an approved exemption. Income tax return 2013 Member of a religious order who has taken a vow of poverty YES, if: Your order elected FICA coverage for its members, or You worked outside the order and the work was not required by, or done on behalf of, the order. Income tax return 2013   NO, if neither of the above applies. Income tax return 2013 NO. Income tax return 2013 Your ministerial earnings are exempt. Income tax return 2013 Christian Science practitioner or reader NO. Income tax return 2013 Your ministerial earnings are exempt. Income tax return 2013 YES, if you do not have an approved exemption from the IRS. Income tax return 2013   NO, if you have an approved exemption. Income tax return 2013 Religious worker (church employee) YES, if your employer did not elect to exclude you. Income tax return 2013    NO, if your employer elected to exclude you. Income tax return 2013 YES, if your employer elected to exclude you from FICA. Income tax return 2013   NO, if you are covered under FICA. Income tax return 2013 Member of a recognized religious sect YES, if you are an employee and do not have an approved exemption from the IRS. Income tax return 2013    NO, if you have an approved exemption. Income tax return 2013 YES, if you are self-employed and do not have an approved exemption from the IRS. Income tax return 2013   NO, if you have an approved exemption. Income tax return 2013 * Ministerial earnings are the self-employment earnings that result from ministerial services, defined and discussed later. Income tax return 2013 In addition, all wages and self-employment income that are subject to Medicare tax are subject to a 0. Income tax return 2013 9% Additional Medicare Tax if they are paid in excess of the applicable threshold for an individual's filing status. Income tax return 2013 Additional Medicare Tax applies to Medicare wages, railroad retirement (RRTA) compensation, and self-employment income that are more than: $125,000 if married filing separately, $250,000 if married filing jointly, or $200,000 for any other filing status. Income tax return 2013 Medicare wages and self-employment income are combined to determine if income exceeds the threshold. Income tax return 2013 A self-employment loss is not considered for purposes of this tax. Income tax return 2013 RRTA compensation is separately compared to the threshold. Income tax return 2013 There is no employer match for Additional Medicare Tax. Income tax return 2013 For more information, see Form 8959, Additional Medicare Tax, and its separate instructions. Income tax return 2013 This publication contains information for the following classes of taxpayers. Income tax return 2013 Ministers. Income tax return 2013 Members of a religious order. Income tax return 2013 Christian Science practitioners and readers. Income tax return 2013 Religious workers (church employees). Income tax return 2013 Members of a recognized religious sect. Income tax return 2013 Note. Income tax return 2013 Unless otherwise noted, in this publication references to members of the clergy include ministers, members of a religious order (but not members of a recognized religious sect), and Christian Science practitioners and readers. Income tax return 2013 This publication covers the following topics about the collection of social security and Medicare taxes from members of the clergy, religious workers, and members of a recognized religious sect. Income tax return 2013 Which earnings are taxed under FICA and which under SECA. Income tax return 2013 See Table 1 above. Income tax return 2013 How a member of the clergy can apply for an exemption from self-employment tax. Income tax return 2013 How a member of a recognized religious sect can apply for an exemption from both self-employment tax and FICA taxes. Income tax return 2013 How a member of the clergy or religious worker figures net earnings from self-employment. Income tax return 2013 This publication also covers certain income tax rules of interest to ministers and members of a religious order. Income tax return 2013 A Comprehensive Example shows filled-in forms for a minister who has income taxed under SECA, other income taxed under FICA, and income tax reporting of items specific to a minister. Income tax return 2013 In the back of Publication 517 is a set of worksheets that you can use to figure the amount of your taxable ministerial income and allowable deductions. Income tax return 2013 You will find these worksheets right after the Comprehensive Example . Income tax return 2013 Note. Income tax return 2013 In this publication, the term “church” is generally used in its generic sense and not in reference to any particular religion. Income tax return 2013 Comments and suggestions. Income tax return 2013   We welcome your comments about this publication and your suggestions for future editions. Income tax return 2013   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. Income tax return 2013 NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Income tax return 2013 Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Income tax return 2013   You can send your comments from www. Income tax return 2013 irs. Income tax return 2013 gov/formspubs/. Income tax return 2013 Click on “More Information” and then on “Give us feedback”. Income tax return 2013   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. Income tax return 2013 Ordering forms and publications. Income tax return 2013   Visit www. Income tax return 2013 irs. Income tax return 2013 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. Income tax return 2013 Internal Revenue Service 1201 N. Income tax return 2013 Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. Income tax return 2013   If you have a tax question, check the information available on IRS. Income tax return 2013 gov or call 1-800-829-1040. Income tax return 2013 We cannot answer tax questions sent to either of the above addresses. Income tax return 2013 Useful Items - You may want to see: Publication 54 Tax Guide for U. Income tax return 2013 S. Income tax return 2013 Citizens and Resident Aliens Abroad 525 Taxable and Nontaxable Income 529 Miscellaneous Deductions 535 Business Expenses 590 Individual Retirement Arrangements (IRAs) 596 Earned Income Credit (EIC) Form (and Instructions) SS-8 Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding SS-16 Certificate of Election of Coverage Under the Federal Insurance Contributions Act Schedule C (Form 1040) Profit or Loss From Business (Sole Proprietorship) Schedule C-EZ (Form 1040) Net Profit From Business (Sole Proprietorship) Schedule SE (Form 1040) Self-Employment Tax 1040-ES Estimated Tax for Individuals 1040X Amended U. Income tax return 2013 S. Income tax return 2013 Individual Income Tax Return 4029 Application for Exemption From Social Security and Medicare Taxes and Waiver of Benefits 4361 Application for Exemption From Self-Employment Tax for Use by Ministers, Members of Religious Orders and Christian Science Practitioners 8274 Certification by Churches and Qualified Church-Controlled Organizations Electing Exemption From Employer Social Security and Medicare Taxes 8959 Additional Medicare Tax Ordering publications and forms. Income tax return 2013   See How To Get Tax Help , near the end of this publication, for information about getting these publications and forms. Income tax return 2013 Prev  Up  Next   Home   More Online Publications