Filing Your Taxes Online is Fast, Easy and Secure.
Start now and receive your tax refund in as little as 7 days.

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

Find tax credits for everything from school tuition to buying a hybri

3. E-File for FREE

E-file free with direct deposit to get your refund in as few as 7 days.

Filing your taxes with paper mail can be difficult and it could take weeks for your refund to arrive. IRS e-file is easy, fast and secure. There is no paperwork going to the IRS so tax refunds can be processed in as little as 7 days with direct deposit. As you prepare your taxes online, you can see your tax refund in real time.

FREE audit support and representation from an enrolled agent – NEW and only from H&R Block

Help With 1040x First Time

Amended 2012 Tax FormState ReturnsWww State Tax FormsFederal Tax Form 1040xIrs InstructionsFree File State And Federal Taxes OnlineFile Taxes From 2012Past Year Tax2011 Free Tax UsaWhere To Mail State TaxesIrs FormsInternational Student Tax Return1040a Income Tax Form1040ez Instructions 2013Free Efile Tax Return 2013State Taxes Free E FileFilling 1040x W Form 8863Taxslayer WebsiteHrblock1040ez Tax Form 2011H&r Block Free 1040ezWww Myfreetaxes Com SandiegoIrs Tax Return 2011Can I File My 2011 Taxes In 2013Free Tax Preparation H&r BlockHow Can I File 2010 Taxes2011 Free Tax SoftwareFederal Ez Tax Form 2011Turbotax Amended ReturnFile Free State And Federal Taxes OnlineHow Do I File Taxes For 2010Irs Tax Forms 2011 DownloadFile Amended Tax Return 20102011 Irs 1040ez FormWww.1040ez.comIrs E File2012 Tax Return FilingFiling Prior Year Tax ReturnsIrs Free State FilingTax Preparation Online

Help With 1040x First Time

Help with 1040x first time Publication 80 - Introductory Material Table of Contents Future Developments What's New Reminders Calendar Future Developments For the latest information about developments related to Publication 80 (Circular SS), such as legislation enacted after it was published, go to www. Help with 1040x first time irs. Help with 1040x first time gov/pub80. Help with 1040x first time What's New Social security and Medicare tax for 2014. Help with 1040x first time  The social security tax rate is 6. Help with 1040x first time 2% each for the employee and employer, unchanged from 2013. Help with 1040x first time The social security wage base limit is $117,000. Help with 1040x first time The Medicare tax rate is 1. Help with 1040x first time 45% each for the employee and employer, unchanged from 2013. Help with 1040x first time There is no wage base limit for Medicare tax. Help with 1040x first time Social security and Medicare taxes apply to the wages of household workers you pay $1,900 or more in cash or an equivalent form of compensation. Help with 1040x first time Social security and Medicare taxes apply to election workers who are paid $1,600 or more in cash or an equivalent form of compensation. Help with 1040x first time Change of responsible party. Help with 1040x first time . Help with 1040x first time  Beginning January 1, 2014, any entity with an employer identification number (EIN) must file Form 8822-B, Change of Address or Responsible Party—Business, to report the latest change to its responsible party. Help with 1040x first time Form 8822-B must be filed within 60 days of the change. Help with 1040x first time If the change in the identity of your responsible party occurred before 2014, and you have not previously notified the IRS of the change, file Form 8822-B before March 1, 2014, reporting only the most recent change. Help with 1040x first time For a definition of “responsible party”, see the Form 8822-B instructions. Help with 1040x first time Same-sex marriage. Help with 1040x first time  For federal tax purposes, individuals of the same sex are considered married if they were lawfully married in a state (or foreign country) whose laws authorize the marriage of two individuals of the same sex, even if the state (or foreign country) in which they now live does not recognize same-sex marriage. Help with 1040x first time For more information, see Revenue Ruling 2013-17, 2013-38 I. Help with 1040x first time R. Help with 1040x first time B. Help with 1040x first time 201, available at www. Help with 1040x first time irs. Help with 1040x first time gov/irb/2013-38_IRB/ar07. Help with 1040x first time html. Help with 1040x first time Notice 2013-61 provides special administrative procedures for employers to make claims for refund or adjustments of overpayments of social security and Medicare taxes with respect to certain same-sex spouse benefits before expiration of the period of limitations. Help with 1040x first time Notice 2013-61, 2013-44 I. Help with 1040x first time R. Help with 1040x first time B. Help with 1040x first time 432, is available at www. Help with 1040x first time irs. Help with 1040x first time gov/irb/2013-44_IRB/ar10. Help with 1040x first time html. Help with 1040x first time Reminders Additional Medicare Tax withholding. Help with 1040x first time  In addition to withholding Medicare tax at 1. Help with 1040x first time 45%, you must withhold a 0. Help with 1040x first time 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. Help with 1040x first time 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. Help with 1040x first time Additional Medicare Tax is only imposed on the employee. Help with 1040x first time There is no employer share of Additional Medicare Tax. Help with 1040x first time 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. Help with 1040x first time For more information on what wages are subject to Medicare tax, see the chart, Special Rules for Various Types of Employment and Payments , in section 12. Help with 1040x first time For more information on Additional Medicare Tax, visit IRS. Help with 1040x first time gov and enter “Additional Medicare Tax” in the search box. Help with 1040x first time Work opportunity tax credit for qualified tax-exempt organizations hiring qualified veterans. Help with 1040x first time  The work opportunity tax credit is available for eligible unemployed veterans who begin work on or after November 22, 2011, and before January 1, 2014. Help with 1040x first time Qualified tax-exempt organizations that hire eligible unemployed veterans can claim the work opportunity tax credit against their payroll tax liability using Form 5884-C, Work Opportunity Credit for Qualified Tax-Exempt Organizations Hiring Qualified Veterans. Help with 1040x first time For more information, visit IRS. Help with 1040x first time gov and enter “work opportunity tax credit” in the search box. Help with 1040x first time Outsourcing payroll duties. Help with 1040x first time  Employers are responsible to ensure that tax returns are filed and deposits and payments are made, even if the employer contracts with a third party to perform these acts. Help with 1040x first time The employer remains responsible if the third party fails to perform any required action. Help with 1040x first time If you choose to outsource any of your payroll and related tax duties (that is, withholding, reporting, and paying over social security, Medicare, FUTA, and income taxes) to a third-party payer such as a payroll service provider or reporting agent, visit IRS. Help with 1040x first time gov and enter “outsourcing payroll duties” in the search box for helpful information on this topic. Help with 1040x first time Residents of the Philippines working in the Commonwealth of the Northern Mariana Islands (CNMI). Help with 1040x first time  The IRS will not assert that an employer has understated liability for social security and Medicare taxes because they failed to treat services performed before January 1, 2015, in the CNMI by a resident of the Philippines as employment as defined under Internal Revenue Code section 3121(b). Help with 1040x first time For more information, see Announcement 2012-43, 2012-51 I. Help with 1040x first time R. Help with 1040x first time B. Help with 1040x first time 723, available at www. Help with 1040x first time irs. Help with 1040x first time gov/irb/2012-51_IRB/ar15. Help with 1040x first time html. Help with 1040x first time CNMI government employees now subject to social security and Medicare taxes. Help with 1040x first time  Beginning in the fourth calendar quarter of 2012, CNMI government employees are subject to social security and Medicare taxes. Help with 1040x first time COBRA premium assistance credit. Help with 1040x first time  The credit for COBRA premium assistance payments applies to premiums paid for employees involuntarily terminated between September 1, 2008 and May 31, 2010, and to premiums paid for up to 15 months. Help with 1040x first time See COBRA premium assistance credit in Publication 15 (Circular E), Employer's Tax Guide. Help with 1040x first time You can get Publication 15 (Circular E) at IRS. Help with 1040x first time gov. Help with 1040x first time You must receive written notice from the IRS to file Form 944. Help with 1040x first time  If you have been filing Forms 941-SS and believe your employment taxes for the calendar year will be $1,000 or less, and you would like to file Form 944, Employer's ANNUAL Federal Tax Return, instead of Forms 941-SS, you must contact the IRS to request to file Form 944. Help with 1040x first time You must receive written notice from the IRS to file Form 944 instead of Forms 941-SS before you may file this form. Help with 1040x first time For more information on requesting to file Form 944 visit IRS. Help with 1040x first time gov and enter “file employment taxes annually” in the search box. Help with 1040x first time Federal employers in the CNMI. Help with 1040x first time  The U. Help with 1040x first time S. Help with 1040x first time Treasury Department and the CNMI Division of Revenue and Taxation entered into an agreement under 5 USC 5517 in December 2006. Help with 1040x first time Under this agreement, all federal employers (including the Department of Defense) are required to withhold CNMI income taxes (rather than federal income taxes) and deposit the CNMI taxes with the CNMI Treasury for employees who are subject to CNMI taxes and whose regular place of federal employment is in the CNMI. Help with 1040x first time Federal employers are also required to file quarterly and annual reports with the CNMI Division of Revenue and Taxation. Help with 1040x first time For questions, contact the CNMI Division of Revenue and Taxation. Help with 1040x first time Change of address. Help with 1040x first time  Use Form 8822-B to notify the IRS of an address change. Help with 1040x first time Do not mail Form 8822-B with your employment tax return. Help with 1040x first time Federal tax deposits must be made by electronic funds transfer. Help with 1040x first time  You must use electronic funds transfer to make all federal tax deposits. Help with 1040x first time Generally, electronic fund transfers are made using the Electronic Federal Tax Payment System (EFTPS). Help with 1040x first time 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. Help with 1040x first time Also, you may arrange for your financial institution to initiate a same-day wire payment on your behalf. Help with 1040x first time EFTPS is a free service provided by the Department of Treasury. Help with 1040x first time Services provided by your tax professional, financial institution, payroll service, or other third party may have a fee. Help with 1040x first time For more information on making federal tax deposits, see How To Deposit in section 8. Help with 1040x first time For more information about EFTPS or to enroll in EFTPS, visit the EFTPS website at www. Help with 1040x first time eftps. Help with 1040x first time gov or call 1-800-555-4477 (U. Help with 1040x first time S. Help with 1040x first time Virgin Islands only) or 303-967-5916 (toll call) or 1-800-733-4829 (TDD). Help with 1040x first time Additional information about EFTPS is also available in Publication 966, Electronic Federal Tax Payment System: A Guide To Getting Started. Help with 1040x first time Electronic filing and payment. Help with 1040x first time  Using electronic options can make filing a return and paying your federal tax easier. Help with 1040x first time Use the Electronic Federal Tax Payment System (EFTPS) to make deposits or pay in full, whether you rely on a tax professional or prepare your own taxes. Help with 1040x first time You can use IRS e-file to file certain returns. Help with 1040x first time If there is a balance due on the return, you can e-file and e-pay in a single step by authorizing an electronic funds withdrawal (EFW) from your bank account while e-filing. Help with 1040x first time Do not use EFW to pay taxes that are required to be deposited. Help with 1040x first time Visit the IRS website at www. Help with 1040x first time irs. Help with 1040x first time gov/efile for more information on filing electronically. Help with 1040x first time For more information on paying your taxes using EFW, visit the IRS website at www. Help with 1040x first time irs. Help with 1040x first time gov/e-pay. Help with 1040x first time A fee may be charged to file electronically. Help with 1040x first time For EFTPS, visit www. Help with 1040x first time eftps. Help with 1040x first time gov or call EFTPS Customer Service at 1-800-555-4477 (U. Help with 1040x first time S. Help with 1040x first time Virgin Islands only) or 303-967-5916 (toll call). Help with 1040x first time For electronic filing of Forms W-2AS, W-2CM, W-2GU, W-2VI, Wage and Tax Statements; W-3SS, Transmittal of Wage and Tax Statements; and W-2c, Corrected Wage and Tax Statement, visit www. Help with 1040x first time socialsecurity. Help with 1040x first time gov/employer. Help with 1040x first time If you are filing your tax return or paying your federal taxes electronically, a valid EIN is required. Help with 1040x first time If a valid EIN is not provided, the return or payment will not be processed. Help with 1040x first time This may result in penalties and delays in processing your return or payment. Help with 1040x first time Electronic option for filing Forms W-2AS, W-2CM, W-2GU, or W-2VI. Help with 1040x first time  Employers in American Samoa, the CNMI, Guam, and the U. Help with 1040x first time S. Help with 1040x first time Virgin Islands can now use the Social Security Administration's W-2 Online service to create, save, print, and submit up to 50 Forms W-2AS, W-2CM, W-2GU, or W-2VI at a time over the Internet. Help with 1040x first time Form W-3SS will be generated automatically based on your Forms W-2AS, W-2CM, W-2GU, or W-2VI. Help with 1040x first time For more information, visit Social Security Administration's SSA website at www. Help with 1040x first time ssa. Help with 1040x first time gov/bso/bsowelcome. Help with 1040x first time htm. Help with 1040x first time Credit or debit card payments. Help with 1040x first time  For information on paying your taxes with a credit or debit card, visit the IRS website at www. Help with 1040x first time irs. Help with 1040x first time gov/e-pay. Help with 1040x first time However, do not use credit or debit cards to make federal tax deposits. Help with 1040x first time Hiring new employees. Help with 1040x first time  Record the number and name from each new employee's social security card. Help with 1040x first time An employee who does not have a social security card should apply for one on Form SS-5, Application for a Social Security Card. Help with 1040x first time See section 3. Help with 1040x first time Reporting discrepancies between Forms 941-SS (or Form 944) and Forms W-2. Help with 1040x first time  File Schedule D (Form 941), Report of Discrepancies Caused by Acquisitions, Statutory Mergers, or Consolidations, to explain certain wage, tax, and payment discrepancies between Forms 941-SS (or Form 944), and Forms W-2 that were caused by acquisitions, statutory mergers, or consolidations. Help with 1040x first time For more information, see the Instructions for Schedule D (Form 941). Help with 1040x first time Apply for an employer identification number (EIN) online. Help with 1040x first time  You can apply for an EIN online by visiting IRS. Help with 1040x first time gov and clicking on the Apply for an EIN Online link under Tools. Help with 1040x first time Dishonored payments. Help with 1040x first time  Any form of payment that is dishonored and returned from a financial institution is subject to a penalty. Help with 1040x first time The penalty is $25 or 2% of the payment, whichever is more. Help with 1040x first time However, the penalty on dishonored payments of $24. Help with 1040x first time 99 or less is an amount equal to the payment. Help with 1040x first time For example, a dishonored payment of $18 is charged a penalty of $18. Help with 1040x first time Private delivery services. Help with 1040x first time  You can use certain private delivery services designated by the IRS to send tax returns or payments. Help with 1040x first time The list includes only the following: DHL Express (DHL): DHL Same Day Service. Help with 1040x first time Federal Express (FedEx): FedEx Priority Overnight, FedEx Standard Overnight, FedEx 2Day, FedEx International Priority, and FedEx International First. Help with 1040x first time United Parcel Service (UPS): UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A. Help with 1040x first time M. Help with 1040x first time , UPS Worldwide Express Plus, and UPS Worldwide Express. Help with 1040x first time For the IRS mailing address to use if you are using a private delivery service, go to IRS. Help with 1040x first time gov and enter “private delivery service” in the search box. Help with 1040x first time Your private delivery service can tell you how to get written proof of the mailing date. Help with 1040x first time Private delivery services cannot deliver items to P. Help with 1040x first time O. Help with 1040x first time boxes. Help with 1040x first time You must use the U. Help with 1040x first time S. Help with 1040x first time Postal Service to mail any item to an IRS P. Help with 1040x first time O. Help with 1040x first time box address. Help with 1040x first time Recordkeeping. Help with 1040x first time  Keep all records of employment taxes for 4 years. Help with 1040x first time These should be available for IRS review. Help with 1040x first time There is no required format for such records, but they should include your EIN; the amounts and dates of all wage payments (including fringe benefits) and tips reported; the names, addresses, and occupations of employees receiving such payments and their social security numbers; copies of returns filed; dates of employment; and the dates and amounts of deposits made. Help with 1040x first time Farm employers must keep a record of the name, permanent address, and EIN of each crew leader. Help with 1040x first time See Farm Crew Leaders in section 2. Help with 1040x first time Disregarded entities and qualified subchapter S subsidiaries (QSubs). Help with 1040x first time  Eligible single-owner disregarded entities and QSubs are treated as separate entities for employment tax purposes. Help with 1040x first time Eligible single-member entities that have not elected to be taxed as corporations must report and pay employment taxes on wages paid to their employees using the entities' own names and EINs. Help with 1040x first time See Regulations sections 1. Help with 1040x first time 1361-4(a)(7) and 301. Help with 1040x first time 7701-2(c)(2)(iv). Help with 1040x first time Photographs of missing children. Help with 1040x first time  The IRS is a proud partner with the National Center for Missing and Exploited Children. Help with 1040x first time Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. Help with 1040x first time 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. Help with 1040x first time Calendar   If any date for filing a return, furnishing a form, or depositing taxes falls on a Saturday, Sunday, or legal holiday, the due date is the next business day. Help with 1040x first time A statewide legal holiday delays a filing due date only if the IRS office where you are required to file is located in that state. Help with 1040x first time However, a statewide legal holiday does not delay the due date of federal tax deposits. Help with 1040x first time See Deposits on Business Days Only in section 8. Help with 1040x first time For any filing due date, you will meet the “file” or “furnish” requirement if the envelope containing the return or form is properly addressed, contains sufficient postage, and is postmarked by the U. Help with 1040x first time S. Help with 1040x first time Postal Service on or before the due date, or sent by an IRS-designated delivery service on or before the due date. Help with 1040x first time See Private delivery services under Reminders. Help with 1040x first time The following are important dates and responsibilities. Help with 1040x first time Also see Publication 509, Tax Calendars. Help with 1040x first time By January 31. Help with 1040x first time   Furnish wage and tax statements to employees. Help with 1040x first time Give each employee a completed Form W-2AS, W-2CM, W-2GU, or W-2VI. Help with 1040x first time See section 10 for more information. Help with 1040x first time File Form 943, Employer's Annual Federal Tax Return for Agricultural Employees, with the IRS. Help with 1040x first time If you deposited all Form 943 taxes when due, you have 10 additional calendar days to file. Help with 1040x first time U. Help with 1040x first time S. Help with 1040x first time Virgin Islands employers only must file Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return, with the IRS. Help with 1040x first time Pay or deposit (if more than $500) any balance of the tax due. Help with 1040x first time If you deposited the full amount of taxes when due, you have 10 additional calendar days to file. Help with 1040x first time File Form 944 with the IRS if you were notified by the IRS to file Form 944 instead of quarterly Forms 941-SS. Help with 1040x first time If you deposited the full amount of taxes when due, you have 10 additional calendar days to file. Help with 1040x first time By February 28. Help with 1040x first time  File paper wage and tax statements with the Social Security Administration (SSA). Help with 1040x first time File Copy A of Forms W-2AS, W-2CM, W-2GU, or W-2VI, and Form W-3SS with the Social Security Administration (SSA). Help with 1040x first time For electronically filed returns, see By March 31 next. Help with 1040x first time By March 31. Help with 1040x first time  File electronic Forms W-2AS, W-2CM, W-2GU, or W-2VI with the SSA. Help with 1040x first time Visit the SSA's Reporting Instructions & Information webpage at www. Help with 1040x first time socialsecurity. Help with 1040x first time gov/employer for more information. Help with 1040x first time By April 30, July 31, October 31, and January 31. Help with 1040x first time  File Form 941-SS with the IRS. Help with 1040x first time If you deposited the full amount of taxes when due, you have 10 additional calendar days to file. Help with 1040x first time Do not file Forms 941-SS for these quarters if you have been notified to file Form 944 and you did not request to file quarterly Forms 941-SS. Help with 1040x first time Deposit FUTA tax for the quarter (including any amount carried over from other quarters) if over $500. Help with 1040x first time If $500 or less, carry it over to the next quarter. Help with 1040x first time See section 11 for more information. Help with 1040x first time Prev  Up  Next   Home   More Online Publications
Español

Innovation and Improvement Office

A part of the Department of Education, the Innovation and Improvement Office invests in innovative educational programs and practices, administers grant programs in pursuit of that aim, and liaises with the nonpublic education community.

Contact the Agency or Department

Website: Innovation and Improvement Office

Address: 400 Maryland Ave SW
Washington, DC 20202

Phone Number: (202) 205-4500

The Help With 1040x First Time

Help with 1040x first time 6. Help with 1040x first time   Tip Income Table of Contents Introduction Useful Items - You may want to see: Keeping a Daily Tip RecordElectronic tip record. Help with 1040x first time Reporting Tips to Your EmployerElectronic tip statement. Help with 1040x first time Final report. Help with 1040x first time Reporting Tips on Your Tax Return Allocated Tips Introduction This chapter is for employees who receive tips. Help with 1040x first time All tips you receive are income and are subject to federal income tax. Help with 1040x first time You must include in gross income all tips you receive directly, charged tips paid to you by your employer, and your share of any tips you receive under a tip-splitting or tip-pooling arrangement. Help with 1040x first time The value of noncash tips, such as tickets, passes, or other items of value, is also income and subject to tax. Help with 1040x first time Reporting your tip income correctly is not difficult. Help with 1040x first time You must do three things. Help with 1040x first time Keep a daily tip record. Help with 1040x first time Report tips to your employer. Help with 1040x first time Report all your tips on your income tax return. Help with 1040x first time  This chapter will explain these three things and show you what to do on your tax return if you have not done the first two. Help with 1040x first time This chapter will also show you how to treat allocated tips. Help with 1040x first time For information on special tip programs and agreements, see Publication 531. Help with 1040x first time Useful Items - You may want to see: Publication 531 Reporting Tip Income 1244 Employee's Daily Record of Tips and Report to Employer Form (and Instructions) 4137 Social Security and Medicare Tax on Unreported Tip Income 4070 Employee's Report of Tips to Employer Keeping a Daily Tip Record Why keep a daily tip record. Help with 1040x first time   You must keep a daily tip record so you can: Report your tips accurately to your employer, Report your tips accurately on your tax return, and Prove your tip income if your return is ever questioned. Help with 1040x first time How to keep a daily tip record. Help with 1040x first time   There are two ways to keep a daily tip record. Help with 1040x first time You can either: Write information about your tips in a tip diary, or Keep copies of documents that show your tips, such as restaurant bills and credit or debit card charge slips. Help with 1040x first time You should keep your daily tip record with your tax or other personal records. Help with 1040x first time You must keep your records for as long as they are important for administration of the federal tax law. Help with 1040x first time For information on how long to keep records, see How long to keep records in chapter 1. Help with 1040x first time    If you keep a tip diary, you can use Form 4070A, Employee's Daily Record of Tips. Help with 1040x first time To get Form 4070A, ask the Internal Revenue Service (IRS) or your employer for Publication 1244. Help with 1040x first time Also, Publication 1244 is available online at www. Help with 1040x first time irs. Help with 1040x first time gov/pub/irs-pdf/p1244. Help with 1040x first time pdf. Help with 1040x first time Publication 1244 includes a 1-year supply of Form 4070A. Help with 1040x first time Each day, write in the information asked for on the form. Help with 1040x first time   In addition to the information asked for on Form 4070A, you also need to keep a record of the date and value of any noncash tips you get, such as tickets, passes, or other items of value. Help with 1040x first time Although you do not report these tips to your employer, you must report them on your tax return. Help with 1040x first time   If you do not use Form 4070A, start your records by writing your name, your employer's name, and the name of the business (if it is different from your employer's name). Help with 1040x first time Then, each workday, write the date and the following information. Help with 1040x first time Cash tips you get directly from customers or from other employees. Help with 1040x first time Tips from credit and debit card charge customers that your employer pays you. Help with 1040x first time The value of any noncash tips you get, such as tickets, passes, or other items of value. Help with 1040x first time The amount of tips you paid out to other employees through tip pools or tip splitting, or other arrangements, and the names of the employees to whom you paid the tips. Help with 1040x first time Electronic tip record. Help with 1040x first time   You can use an electronic system provided by your employer to record your daily tips. Help with 1040x first time If you do, you must receive and keep a paper copy of this record. Help with 1040x first time Service charges. Help with 1040x first time    Do not write in your tip diary the amount of any service charge that your employer adds to a customer's bill and then pays to you and treats as wages. Help with 1040x first time This is part of your wages, not a tip. Help with 1040x first time See examples below. Help with 1040x first time Example 1. Help with 1040x first time Good Food Restaurant adds an 18% charge to the bill for parties of 6 or more customers. Help with 1040x first time Jane’s bill for food and beverages for her party of 8 includes an amount on the tip line equal to 18% of the charges for food and beverages, and the total includes this amount. Help with 1040x first time Because Jane did not have an unrestricted right to determine the amount on the “tip line,” the 18% charge is considered a service charge. Help with 1040x first time Do not include the 18% charge in your tip diary. Help with 1040x first time Service charges that are paid to you are considered wages, not tips. Help with 1040x first time Example 2. Help with 1040x first time Good Food Restaurant also includes sample calculations of tip amounts at the bottom of its bills for food and beverages provided to customers. Help with 1040x first time David’s bill includes a blank “tip line,” with sample tip calculations of 15%, 18%, and 20% of his charges for food and beverages at the bottom of the bill beneath the signature line. Help with 1040x first time Because David is free to enter any amount on the “tip line” or leave it blank, any amount he includes is considered a tip. Help with 1040x first time Be sure to include this amount in your tip diary. Help with 1040x first time Reporting Tips to Your Employer Why report tips to your employer. Help with 1040x first time   You must report tips to your employer so that: Your employer can withhold federal income tax and social security, Medicare, Additional Medicare, or railroad retirement taxes, Your employer can report the correct amount of your earnings to the Social Security Administration or Railroad Retirement Board (which affects your benefits when you retire or if you become disabled, or your family's benefits if you die), and You can avoid the penalty for not reporting tips to your employer (explained later). Help with 1040x first time What tips to report. Help with 1040x first time   Report to your employer only cash, check, and debit and credit card tips you receive. Help with 1040x first time   If your total tips for any 1 month from any one job are less than $20, do not report the tips for that month to that employer. Help with 1040x first time   If you participate in a tip-splitting or tip-pooling arrangement, report only the tips you receive and retain. Help with 1040x first time Do not report to your employer any portion of the tips you receive that you pass on to other employees. Help with 1040x first time However, you must report tips you receive from other employees. Help with 1040x first time    Do not report the value of any noncash tips, such as tickets or passes, to your employer. Help with 1040x first time You do not pay social security, Medicare, Additional Medicare or railroad retirement taxes on these tips. Help with 1040x first time How to report. Help with 1040x first time    If your employer does not give you any other way to report tips, you can use Form 4070. Help with 1040x first time Fill in the information asked for on the form, sign and date the form, and give it to your employer. Help with 1040x first time To get a 1-year supply of the form, ask the IRS or your employer for Publication 1244. Help with 1040x first time   If you do not use Form 4070, give your employer a statement with the following information. Help with 1040x first time Your name, address, and social security number. Help with 1040x first time Your employer's name, address, and business name (if it is different from your employer's name). Help with 1040x first time The month (or the dates of any shorter period) in which you received tips. Help with 1040x first time The total tips required to be reported for that period. Help with 1040x first time You must sign and date the statement. Help with 1040x first time Be sure to keep a copy with your tax or other personal records. Help with 1040x first time   Your employer may require you to report your tips more than once a month. Help with 1040x first time However, the statement cannot cover a period of more than 1 calendar month. Help with 1040x first time Electronic tip statement. Help with 1040x first time   Your employer can have you furnish your tip statements electronically. Help with 1040x first time When to report. Help with 1040x first time   Give your report for each month to your employer by the 10th of the next month. Help with 1040x first time If the 10th falls on a Saturday, Sunday, or legal holiday, give your employer the report by the next day that is not a Saturday, Sunday, or legal holiday. Help with 1040x first time Example. Help with 1040x first time You must report your tips received in September 2014 by October 10, 2014. Help with 1040x first time Final report. Help with 1040x first time   If your employment ends during the month, you can report your tips when your employment ends. Help with 1040x first time Penalty for not reporting tips. Help with 1040x first time   If you do not report tips to your employer as required, you may be subject to a penalty equal to 50% of the social security, Medicare, and Additional Medicare taxes or railroad retirement tax you owe on the unreported tips. Help with 1040x first time (For information about these taxes, see Reporting social security, Medicare, Additional Medicare, or railroad retirement taxes on tips not reported to your employer under Reporting Tips on Your Tax Return, later. Help with 1040x first time ) The penalty amount is in addition to the taxes you owe. Help with 1040x first time   You can avoid this penalty if you can show reasonable cause for not reporting the tips to your employer. Help with 1040x first time To do so, attach a statement to your return explaining why you did not report them. Help with 1040x first time Giving your employer money for taxes. Help with 1040x first time   Your regular pay may not be enough for your employer to withhold all the taxes you owe on your regular pay plus your reported tips. Help with 1040x first time If this happens, you can give your employer money until the close of the calendar year to pay the rest of the taxes. Help with 1040x first time   If you do not give your employer enough money, your employer will apply your regular pay and any money you give in the following order. Help with 1040x first time All taxes on your regular pay. Help with 1040x first time Social security, Medicare, and Additional Medicare taxes or railroad retirement taxes on your reported tips. Help with 1040x first time Federal, state, and local income taxes on your reported tips. Help with 1040x first time    Any taxes that remain unpaid can be collected by your employer from your next paycheck. Help with 1040x first time If withholding taxes remain uncollected at the end of the year, you may be subject to a penalty for underpayment of estimated taxes. Help with 1040x first time See Publication 505, Tax Withholding and Estimated Tax, for more information. Help with 1040x first time    Uncollected taxes. Help with 1040x first time You must report on your tax return any social security and Medicare taxes or railroad retirement tax that remained uncollected at the end of 2013. Help with 1040x first time These uncollected taxes will be shown on your 2013 Form W-2. Help with 1040x first time See Reporting uncollected social security, Medicare, or railroad retirement taxes on tips reported to your employer under Reporting Tips on Your Tax Return, later. Help with 1040x first time Reporting Tips on Your Tax Return How to report tips. Help with 1040x first time    Report your tips with your wages on Form 1040, line 7; Form 1040A, line 7; or Form 1040EZ, line 1. Help with 1040x first time What tips to report. Help with 1040x first time   You must report all tips you received in 2013 on your tax return, including both cash tips and noncash tips. Help with 1040x first time Any tips you reported to your employer for 2013 are included in the wages shown in box 1 of your Form W-2. Help with 1040x first time Add to the amount in box 1 only the tips you did not report to your employer. Help with 1040x first time    If you received $20 or more in cash and charge tips in a month and did not report all of those tips to your employer, see Reporting social security, Medicare, Additional Medicare, or railroad retirement taxes on tips not reported to your employer, later. Help with 1040x first time    If you did not keep a daily tip record as required and an amount is shown in box 8 of your Form W-2, see Allocated Tips, later. Help with 1040x first time   If you kept a daily tip record and reported tips to your employer as required under the rules explained earlier, add the following tips to the amount in box 1 of your Form W-2. Help with 1040x first time Cash and charge tips you received that totaled less than $20 for any month. Help with 1040x first time The value of noncash tips, such as tickets, passes, or other items of value. Help with 1040x first time Example. Help with 1040x first time Ben Smith began working at the Blue Ocean Restaurant (his only employer in 2013) on June 30 and received $10,000 in wages during the year. Help with 1040x first time Ben kept a daily tip record showing that his tips for June were $18 and his tips for the rest of the year totaled $7,000. Help with 1040x first time He was not required to report his June tips to his employer, but he reported all of the rest of his tips to his employer as required. Help with 1040x first time Ben's Form W-2 from Blue Ocean Restaurant shows $17,000 ($10,000 wages plus $7,000 reported tips) in box 1. Help with 1040x first time He adds the $18 unreported tips to that amount and reports $17,018 as wages on his tax return. Help with 1040x first time Reporting social security, Medicare, Additional Medicare, or railroad retirement taxes on tips not reported to your employer. Help with 1040x first time    If you received $20 or more in cash and charge tips in a month from any one job and did not report all of those tips to your employer, you must report the social security, Medicare, and Additional Medicare taxes on the unreported tips as additional tax on your return. Help with 1040x first time To report these taxes, you must file a return even if you would not otherwise have to file. Help with 1040x first time You must use Form 1040. Help with 1040x first time (You cannot file Form 1040EZ or Form 1040A. Help with 1040x first time )    Use Form 4137 to figure social security and Medicare taxes. Help with 1040x first time Enter the tax on your return as instructed, and attach the completed Form 4137 to your return. Help with 1040x first time Use Form 8959 to figure Additional Medicare Tax. Help with 1040x first time    If you are subject to the Railroad Retirement Tax Act, you cannot use Form 4137 to pay railroad retirement tax on unreported tips. Help with 1040x first time To get railroad retirement credit, you must report tips to your employer. Help with 1040x first time Reporting uncollected social security, Medicare, or railroad retirement taxes on tips reported to your employer. Help with 1040x first time   You may have uncollected taxes if your regular pay was not enough for your employer to withhold all the taxes you owe and you did not give your employer enough money to pay the rest of the taxes. Help with 1040x first time For more information, see Giving your employer money for taxes , under Reporting Tips to Your Employer, earlier. Help with 1040x first time   If your employer could not collect all the social security and Medicare taxes or railroad retirement tax you owe on tips reported for 2013, the uncollected taxes will be shown in box 12 of your Form W-2 (codes A and B). Help with 1040x first time You must report these amounts as additional tax on your return. Help with 1040x first time Unlike the uncollected portion of the regular (1. Help with 1040x first time 45%) Medicare tax, the uncollected Additional Medicare Tax is not reported in box 12 of Form W-2 with code B. Help with 1040x first time    To report these uncollected taxes, you must file a return even if you would not otherwise have to file. Help with 1040x first time You must report these taxes on Form 1040, line 60. Help with 1040x first time See the instructions for Form 1040, line 60. Help with 1040x first time (You cannot file Form 1040EZ or Form 1040A. Help with 1040x first time ) Allocated Tips If your employer allocated tips to you, they are shown separately in box 8 of your Form W-2. Help with 1040x first time They are not included in box 1 with your wages and reported tips. Help with 1040x first time If box 8 is blank, this discussion does not apply to you. Help with 1040x first time What are allocated tips. Help with 1040x first time   These are tips that your employer assigned to you in addition to the tips you reported to your employer for the year. Help with 1040x first time Your employer will have done this only if: You worked in an establishment (restaurant, cocktail lounge, or similar business) that must allocate tips to employees, and The tips you reported to your employer were less than your share of 8% of food and drink sales. Help with 1040x first time No income, social security, Medicare, Additional Medicare or railroad retirement taxes are withheld on allocated tips. Help with 1040x first time How were your allocated tips figured. Help with 1040x first time   The tips allocated to you are your share of an amount figured by subtracting the reported tips of all employees from 8% (or an approved lower rate) of food and drink sales (other than carryout sales and sales with a service charge of 10% or more). Help with 1040x first time Your share of that amount was figured using either a method provided by an employer-employee agreement or a method provided by IRS regulations based on employees' sales or hours worked. Help with 1040x first time For information about the exact allocation method used, ask your employer. Help with 1040x first time Must you report your allocated tips on your tax return. Help with 1040x first time   You must report all tips you received in 2013 on your tax return, including both cash tips and noncash tips. Help with 1040x first time Any tips you reported to your employer for 2013 are included in the wages shown in box 1 of your Form W-2. Help with 1040x first time Add to the amount in box 1 only the tips you did not report to your employer. Help with 1040x first time This should include any allocated tips shown in box 8 on your Form(s) W-2, unless you have adequate records to show that you received less tips in the year than the allocated figures. Help with 1040x first time   See What tips to report under Reporting Tips on Your Tax Return, and Keeping a Daily Tip Record , earlier. Help with 1040x first time How to report allocated tips. Help with 1040x first time   Report the amount in box 1 and the allocated tips in box 8 of your Form(s) W-2 as wages on Form 1040, line 7; Form 1040NR, line 8; or Form 1040NR-EZ, line 3. Help with 1040x first time (You cannot file Form 1040A or Form 1040EZ when you have allocated tips. Help with 1040x first time )    Because social security, Medicare, and Additional Medicare taxes were not withheld from the allocated tips, you must report those taxes as additional tax on your return. Help with 1040x first time Complete Form 4137, and include the allocated tips on line 1 of the form. Help with 1040x first time See Reporting social security, Medicare, Additional Medicare, or railroad retirement taxes on tips not reported to your employer under Reporting Tips on Your Tax Return, earlier. Help with 1040x first time Prev  Up  Next   Home   More Online Publications