IRS Announces Issuance of Two Affordable Care Act Electronic Publications

The IRS today announced the issuance of two electronic publications containing information for individuals and families about the Affordable Care Act (ACA). These one-page publications are available on the IRS website and can be used by individuals, tax professionals, health care professionals and other stakeholders for educational and outreach purposes.

Publication 5152, Report changes to the Marketplace as they happen…, discusses the importance of reporting changes in circumstances, such as family size and income changes that can affect the
Premium Tax Credit, to the health insurance Marketplace.  Reporting changes can help individuals and families avoid getting too much or too little in advance credit payments.

Publication 5156, Facts about the Individual Shared Responsibility Provision, discusses what individuals need to know regarding health insurance coverage and taxes.

These two publications will supplement several earlier IRS ACA flyers:

Publication 5120 (English) and Publication 5120SP (Spanish) – Facts about the Premium Tax Credit (Flyer)

Publication 5121 (English) and Publication 5121SP  (Spanish) – Facts about the Premium Tax Credit (Tri-fold Brochure)

Publication 5093 –Health Care Law Online Resources

150,000 Pay Taxes with IRS Direct Pay

The Internal Revenue Service announced the successful start of its new web-based system — IRS Direct Pay — on IRS.gov, which lets taxpayers pay their tax bills or make estimated tax payments directly from checking or savings accounts without any fees or pre-registration.
“IRS Direct Pay reflects our latest effort to add more online tools to provide additional service options to help taxpayers,” said IRS Commissioner John Koskinen. “IRS Direct Pay simplifies the payment process, and taxpayers can make a payment from the convenience of a home computer.”
To date, more than 150,000 taxpayers have paid more than $340 million in taxes through the new IRS Direct Pay system. With IRS Direct Pay, taxpayers receive instant confirmation that the payment has been submitted, and the system is available 24 hours a day, 7 days a week. Bank account information is not retained in IRS systems after payments are made.
From the “Pay Your Tax Bill” icon at the top of the IRS home page, taxpayers can access IRS Direct Pay, which walks the taxpayer through five simple steps. The steps include providing your tax information, verifying your identity, entering your payment information, reviewing and electronically signing and recording your online confirmation.
IRS Direct Pay offers 30-day advance payment scheduling, payment rescheduling or cancellations, and a payment status search. Future plans include an option for e-mailed payment confirmation, a Spanish version and one-time registration with a login and password to allow quick access on return visits.

Tax Information for Students Who Take a Summer Job

Many students take a job in the summer after school lets out. If it’s your first job it gives you a chance to learn about the working world. That includes taxes we pay to support the place where we live, our state and our nation. Here are eight things that students who take a summer job should know about taxes:
1. Don’t be surprised when your employer withholds taxes from your paychecks. That’s how you pay your taxes when you’re an employee. If you’re self-employed, you may have to pay estimated taxes directly to the IRS on certain dates during the year. This is how our pay-as-you-go tax system works.
2. As a new employee, you’ll need to fill out a Form W-4, Employee’s Withholding Allowance Certificate. Your employer will use it to figure how much federal income tax to withhold from your pay. The IRS Withholding Calculator tool on IRS.gov can help you fill out the form.
3. Keep in mind that all tip income is taxable. If you get tips, you must keep a daily log so you can report them. You must report $20 or more in cash tips in any one month to your employer. And you must report all of your yearly tips on your tax return.
4. Money you earn doing work for others is taxable. Some work you do may count as self-employment. This can include jobs like baby-sitting and lawn mowing. Keep good records of expenses related to your work. You may be able to deduct (subtract) those costs from your income on your tax return. A deduction may help lower your taxes.
5. If you’re in ROTC, your active duty pay, such as pay you get for summer camp, is taxable. A subsistence allowance you get while in advanced training isn’t taxable.
6. You may not earn enough from your summer job to owe income tax. But your employer usually must withhold Social Security and Medicare taxes from your pay. If you’re self-employed, you may have to pay them yourself. They count toward your coverage under the Social Security system.
7. If you’re a newspaper carrier or distributor, special rules apply. If you meet certain conditions, you’re considered self-employed. If you don’t meet those conditions and are under age 18, you are usually exempt from Social Security and Medicare taxes.
8. You may not earn enough money from your summer job to be required to file a tax return. Even if that’s true, you may still want to file. For example, if your employer withheld income tax from your pay, you’ll have to file a return to get your taxes refunded.

IRS to Mark Small Business Week 2014 with Two Webinars

Do you own or run a business? If so, do you know the IRS offers special tax help just for you? For example, the IRS will host two free live webinars to mark National Small Business Week, May 12 – 16. In addition, you can get many products and services for small businesses throughout the year on IRS.gov.

Here are some details about the free webinars:

Tues. May 13: “Payments to Independent Contractors.” Topics include:

• Payments to Independent Contractors
• Form 1099 filing requirements
• Backup withholding and how to avoid being liable for it
• CP 2100 Notices for payee name and TIN mismatches

Thurs. May 15: "Avoiding the Biggest Tax Mistakes." Topics include:

• Learn about the biggest tax mistakes and how to avoid them
• How to detect common tax schemes and unscrupulous tax preparers

The popular events will start at 2 p.m. (ET) and will run for one hour. Both will offer live Q&A sessions with IRS experts. To register and to find out more visit the Webinars for Small Businesses page on IRS.gov.

The IRS offers many tools and services for you to use on IRS.gov. They can help you comply with the tax laws and avoid tax problems. Here are three pages that you can check out 24/7:

• The Small Business and Self-Employed Tax Center is your complete tax resource. For example, you can link to a list of free workshops and events offered in your area. Or visit the IRS Video Portal to watch videos on a wide range of topics, including prior live webinars.
• The Self-Employed Individuals Tax Center is for sole proprietors and others who are in business for themselves. This site has many useful tips and references to the tax rules that a self-employed person may need to know.
• The Online Learning and Educational Products page has tools that can help you learn about taxes on your own time, and at your own pace. For example, the IRS Tax Calendar for Businesses and Self-Employed has important tax dates for your business. You can download the CalendarConnector tool and get the dates on your desktop, even when you're offline.