What is the purpose of Form 8868?
What should I include in Form 8868?
You'll need the following information to apply for an extension or change the amount of time for filing the return:
All the information that is set forth in Schedule A(Form 1040, Schedule A (Form 1040EZ), or Form 2501, Application for an Authorized User ID and Password) for the year to which the extension applies, except your U.S. Social Security number (SSN) is omitted
Documentation that verifies the information on the Form 8868:
A copy of the official proof of U.S. citizenship or legal immigrant status you listed in your return
A copy of Form SSA-1099
The Form 8868 certificate showing the extension and the amount of time that you request, and
Your last Social Security number (SSN) for the year to which extension applies and date of birth, provided that you have not lost your SSA-1099 or SSN from a recent change. See How do I lose my SSA-1099 or SSN from a recent change, and How do I get a new SSA-1099 if I have lost it? For more information.
How can I change the amount of time that I am requesting for filing?
A Form 8868 can be extended, or canceled if it is already filed, by submitting Form 8868-SR, Extension of Time to File U.S. Federal Income Tax Return. See the instructions to the Form 8868-SR for information about when and how to file.
The IRS may also extend your time to file a return if you have changed your address. Generally, the IRS will mail Form 8968, Extension of Time To File Certain Information Returns, to you informing you of your right to file. You will also receive a Form 8968NR, Return of Failure to File, which explains why you did not file by the time you were granted the extension. See the Instructions for Form 8968NR for information about when and how to file.
Do I have to pay any fees for filing Form 8868?
You may have to pay all or part of the filing fee if you are filing an amended return, for filing a copy of a corrected return to correct errors, or if you request more time to file. See the Instructions for Form 8868 for more information.
Who should complete Form 8868?
The Form 8868 is intended for the personal use of the individual(s) seeking to amend their U.S. tax return for the year during which the individual's U.S. tax return was submitted.
For an employer or partner, you should submit one Form 8868 for each employee. If you use an alternative means of filing IRS Form 1040A, you should send Forms 8868 for each employee in accordance with that method of filing Form 1040A.
For an employee, you should submit one Form 8868 for each spouse.
Why are the instructions for the Form 8868 different from those for Forms 1040A and 1040?
Instructions for Forms 1040A and 1040 are identical when provided as instructions for filing a joint return or a single return, as applicable. However, for an individual's individual return, the person who completes the Form 8868’S/P) should complete Form 8868’S/P) along with the instructions for 1040A(C/O), and the Form 8868’S/P) must be submitted with an amended U.S. tax return if the employer and spouse jointly file a joint form. The instructions for Form 1040A do not explain why Form 8868’S/P) is needed or what is considered a “single return.”
Individual returns will not be prepared by Form 1040S (single return), or any other form that is not intended to be filed separately (e.g., Form 2555).
Do I need a Form 8868 for an employee who files Form 1040A?
No. Individual taxpayers may file a Form 1040A and an amended U.S. tax return on one Form 1040A or Form 1040Amended U.S. federal income tax return.
If Form 8868 is not used on an individual tax return, does Form 8868 have to be filed with the individual tax return, and if so is there any need for a separate Form 8868 from that?
For an individual taxpayer, the instructions for Form 8868’S/P) will be the same as the instructions for Form 1040’S/P) and Form 4868 are not required to be filed separately. However, if a Form 8868 is submitted with Form 1040 or amended U.S.
When do I need to complete Form 8868?
If you have received an income-tax refund or a refund on your individual income tax return, Form 8868 must be processed as soon as possible. Do not expect your Form 8868 to arrive by the deadline for your filing method's deadline. If you have filed Form 1040X or Form 1040A(a)
And you or your estate (as defined in section 6662(a)(8)) receives a Form 1040NR/NRW/NR, or Form 2350 for the estate, you must file a timely Form 8868.
Note: If you received a Form 706X, you may need to file Form 8868 to adjust and complete your Form 706X.
When do I need to complete Form 8868?
If you're requesting, making, or paying a payment on your U.S. federal income tax return, you'll generally need to file a Form 8868 by the date you were required to do so (including extensions). For more information, see Rev. Pro. 2018-7, 2018-03 I.R.B. 449. For more information (including forms to use, deadlines, and forms not due for other reasons) see IRS.gov.
What is an annual tax return?
An annual tax return is a tax return that has not been filed yet. Forms 8868 and 8868-S are tax returns, not annual tax returns. An annual tax return is a separate return.
I submitted Form 8868 on Feb. 11, 2017. I received a Form 706X, which indicates that I am to file my Form 8868, on Aug. 20, 2017. Furthermore, I'm having difficulty figuring out whether this is an annual or a post-April Fools type return. Please advise.
See Rev. Pro. 2008-3, 2008-1 I.R.B. 713, for the most current information.
I filed my Form 8700, and the filing requirements are that I must file by Sept. 15. I filed my Form 8700 on time on May 30, 2017. Furthermore, I have an extension due to file my taxes, but I'm now missing a Form 8868-S. What should I do?
You should file a timely return if you received a Form 8868, and have not yet filed a timely Form 8700. See Rev. Pro. 2008-3, 2008-1 I.R.B.
Can I create my own Form 8868?
No, you cannot. The forms are set as guidelines.
What if I think the forms apply to my case?
Your case is unique and your case does not have to be in the form set out below.
Does Form 8868 have anything else to say?
The form makes it clear that it is intended as an information source to help assist you in filing your tax return.
What should I do with Form 8868 when it’s complete?
After completing Form 8868, you should file, on Form 8948, Form 8949 (with the U.S. payer), or Form 941 (with the foreign payer), IRS Form 1040X (with the foreign payer); or
You should file, on Form 8948 (with the U.S. payer), Form 8949 (with the foreign payer), or Form 941 (with the foreign payer); or In the case of a nonresident alien individual, report Form 8948 and Forms 8949 and Form 1040X to the IRS.
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Who makes decisions on Form 968?
We coordinate and manage Form 968. When we identify forms that need significant modification, we make a recommendation to the payer or other responsible party. Form 968 requires approval from the IRS Executive Assistant for Special Events. We also coordinate approval with our Office of International Operations.
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How do I cancel a Form 968?
You can request that we cancel a Form 968 by completing Form 8948 (with the U.S. payer). We will then send another Form 968 to the payer. If you need to cancel an extension of time to file a return for a past tax year, you can file Form 4797, Request for Cancellation or Suspension of a Payment on Form 972 (Tax Return for Estates and Trusts). You must also submit Form 8948 (with the U.S. payer), at least 30 days before the expiration of the extension for that tax year, if you want to cancel more than one form at a time.
See Publication 972, Tax Folio S3-C, Estate and Gift Taxes, for full details about cancelling or suspending a payment.
For payments received during a tax year and sent during a period of suspension of a U.S. payment, you should refer to Pub. 970, Suspension of Payments for Tax Withholding, if any, for information on how to complete Form 4797. You can cancel a payment (including any payment not already paid) only once, unless the payment was scheduled to start on a certain date. See Pub. 970, Suspension of Payments for Tax Withholding, for more information about how to cancel a payment (including any payment not already paid) and for the different cancellation periods.
How do I get my Form 8868?
You can file your tax return by phone, at the tax office, in person or by mail if you have not yet paid taxes. Make sure that you follow these steps:
File your form online at.
In addition, you can also file or check your e-file status online or by phone. This will help you to determine whether you are a “nonresident alien” and should use Form 8868.
What if I'm a nonresident alien; can I file using Form 8868 to get an EIC?
No. Form 8868 must be filed by each nonresident alien for whom the taxpayer has obtained an EIC.
What is the EIC?
The EIC is an Electronic Immigration Claim. It includes information about your immigration history that the IRS does not ordinarily hold; your name, address, and other information that your employer and the IRS share about you (and you can do it voluntarily, if you prefer).
What if I have an active Form 941, and I am not a U.S. citizen, resident alien, or employer?
If you are outside the U.S. on a temporary basis (for example, on vacation, temporary assignment, as a student, or because you return to the U.S. or are a foreign national), it may make sense to file Form 8868 to “claim benefits under the immigration laws of the United States, including a Social Security number.” This may be a good time to file Form 8868, or you may be eligible to file Form 941. Refer to the IRS website for more information.
If you cannot file a Form 8868 because you are married, in the military, you are temporarily out of the U.S., or you are a U.S. citizen or a resident alien but do not have an EIC because of exemptions you can still file a Form 941 and claim benefits under the immigration laws—but you must use Form 8868 to get those benefits. The IRS can help you if you don't understand the rules about filing a Form 8868.
Who can use Form 8868?
Form 8868 is for a “minor child, parent, or dependent child” of a U.S. citizen, resident alien, or alien lawfully admitted for permanent residence.
What documents do I need to attach to my Form 8868?
Documents should be attached to Form 8868 in the following order:
Affidavit of the claimant's gross income (Form 3455)
Social Security card (Form SS-5) (if applicable)
Employer's W-2 (if applicable)
If you are self-employed, pay stubs or W-2s from the year for the self-employment tax year
If you are a covered veteran or dependent or eligible in the State Plan, Medicare, TRI CARE, or TRI CARE Reserve, make sure to attach your DD Form 214 (issued at the Veteran's or eligible dependents' office), a copy of the medical report, and your original birth certificate
If you have made contributions to self-employment taxes and are required to file Form 8959 (1099-MISC), you must attach copies of the 1099-MISC Form 5304 (a form issued by the Internal Revenue Service to reimburse individuals for contributions from any source), and the original 1099-MISC Form 5304, to Form 8868
You must attach copies of Form 8958 with Form 8868, as prescribed by Section 4980Z-3-1515.3 of the Code, if the total amount due on any one Form 8958 does not add up to the amount of tax you are required to file
You should also attach a copy of any Form 8758, IRS 8408 (a tax form for small businesses), and Form 8759, IRS 8408 (a tax form for small businesses).
Q10. May I use Form 5936 to calculate the federal income tax withholding I receive from my employer to cover the employer's contribution to my self-employment taxes?
Yes, you need to file an EIC-W claiming the employer contribution to social insurance tax in its entirety. This is because only 15% of the employer contribution can be claimed as a credit on your EIC at the federal level.
The Form 5936 must be completed by your own payroll department to take the employer's portion of social insurance tax.
What are the different types of Form 8868?
All forms 8868 have a specific purpose, which is to help employers identify when an employee's earnings are more than a reasonable amount, and to provide those employers with a way to recover unpaid taxes. Generally, for most kinds of wages, Form 8868 will help the employer recover taxes owed under Internal Revenue Code (IRC) sections 3401(a)(1), 7602(a)(1), 7603 and 7654, and also under the Internal Revenue Service regulations, Revenue Ruling 86-26, which was issued in 1988. In other words, Form 8868 will be used to recover taxes owed under IRC sections 3401(a)(1), 7602(a)(1), 7603 and 7654.
Is filing a Form 8868 effective? Yes. In general, filing Form 8868 does not prevent an employer from withholding, paying or recovering taxes owed. Employers cannot avoid this by using the Form 8868 incorrectly. Instead, it can act as a shield allowing the employer to properly recover, pay, or withhold from the employee.
When should I file a Form 8868? The IRS encourages employers to file Form 8868 as part of the payroll processing stage of processing. As the employer prepares tax returns and collects and disburses tax. Most employers will not have any issues collecting their taxes by filing Form 8868 in the payroll processing stage.
Is there any time limit for filing a Form 8868? The IRS says that a Form 8868 is valid for five years from the date the Form 8868 is submitted. So for example, if you file a Form 8868 with pay stub information that is later changed, you should file another form of Form 8868, a renewal form, to keep the information current.
What should I do in a situation like that? First, file the appropriate Form 8868. You can find the Form 8868 by doing a name search on the IRS website at. If you cannot find the form that you need (it may not be available in paper form), you can go to the payroll processing stage and file a Form 8868 for that form.
How long does Form 8868 usually take to prepare and file? It depends upon the complexity of the case, as well as the length of time required to prepare and file the form.
How many people fill out Form 8868 each year?
In 2013 the number of Form 8868 filing was nearly 9.5 million, representing approximately 30% of all individual tax returns.
Did Form 8868 always appear on every income tax return?
Form 8868 appeared on 94% of tax returns filed in 2013.
Is Form 8868 returns filed by individuals required to keep receipts?
Form 8868 filers are required to keep receipts for all income tax withheld and reported to the IRS. The total reported tax for Form 8868 filers was 22.8 billion. Some forms and documents that filers use to report the tax withheld from their earnings include: Form 2431, Quarterly Income and Withholding Report,
Form 2555, Personal Information,
Form 1040A, U.S. Individual Income Tax Return,
Form 1040EZ, U.S. Individual Income Tax Return, and
Form 1040A, U.S. Individual Income Tax Return.
Withholding, Estimated Tax, and Estimated Payments
What is the estimated tax provision?
Estimated payment procedures require that filers complete Form RC4S (Estimated Tax Return and Payment). The income tax withholding amount and other related information is used to estimate the amount of tax that must be paid to the IRS. The amount of tax withheld is the result (and the basis for the assessment) of the tax returns filed and the information provided on the tax returns.
The estimated tax provision applies specifically to the federal income tax. The state income tax also is assessed. Both types of income taxes are treated the same under the Estimated Tax provisions.
How is the amount of income tax withheld at my rate calculated?
As noted above, if tax withholding are higher than the estimated tax, the greater amount is tax withheld. The amount of tax withheld is equal to the amount claimed on Form 1040, U.S. Individual Income Tax Return (excluding exemptions and items of itemized deduction).
How is estimated taxes calculated?
To calculate the amount of income tax withheld, the income tax return is matched to the taxpayer's actual tax and withholding records. The IRS uses various methodologies and procedures to help determine the amount of income tax withheld and the final income tax due.
Is there a due date for Form 8868?
Yes, this form must be filed by September 30 of the following year. To be eligible for the credit, you must have filed an extension for tax year 2017.
What is a qualified small business enterprise that sells a product or service to qualified customers through its own network of distributors?
For more information, see Qualified Small Business Enterprises, later below.
Is a network of resellers considered a qualified small business enterprise?
Yes. Network resellers that do not receive any cash payment from the owner for the product or service that they resell to qualified customers through their own channels are eligible for the credit.
What is a qualified purchaser?
To be a qualified purchaser, a company must distribute to qualified distributors the amounts that it otherwise would have distributed to them in the hands of a distributor. Qualified distributors include those who are qualified small business enterprises, network resellers, qualified employees, qualified members, foreign affiliates, companies that have paid tax to the United States for the year for which they are filing the return, and qualified owners or partners of corporations who carry on a trade or business with a US taxpayer.
For more information about qualifying purchasers, see the rules that apply to purchasers under the Federal Credit for Expanded and Simplified Taxpayer Identification Numbers, later under Credit.
In general, does a qualified purchaser qualify for the expanded, simplified or other credits depending on the amount of the distribution, and will the payment be exempt from tax?
The amount or payment to be distributed is a qualifying payment. The qualified purchaser must distribute the qualifying payment before or in the same month as the distribution must be made to a qualified distributor. The qualifying payment itself may be exempt from tax if the total of all payments to be made to purchasers in a calendar year exceeds 1,000, and it is exempt from the federal income tax only because of an exemption provision in the Internal Revenue Code (including an applicable tax treaty, tax treaty with the supplier's country of residence, or tax treaty with the US in effect at the time the purchase occurs or after).
What is the amount of a qualifying distribution?
For tax purposes, a qualifying distribution must be a distribution of qualified property, real property, or qualified investment (including a qualified investment in certain mutual fund trusts).