I started a new business and I need information on how to file Forms W-2.

Forms W-2 should be given to your employees by January 31. It is also your responsibility as an employer to file Forms W-2 with the Social Security Administration (SSA) for your employees, showing wages pad and taxes withheld for the year. You must send Copy A to the SA with Form W-3 by February 28. Form W-3 shows the total of all W-2s being sent. The address is listed in the W-2 Instructions.

How do I apply for an employer identification number (EIN)?

To obtain an EIN, you must complete Form SS-4. After you have completed the Form SS-4, you can get the EIN by mail, FAX, or by phone. The instructions for Form SS-r provide both an IRS service center address and a phone number for Tele-TIN.

If my part-time employees receive less than $20 a month in tips, are they required to report them to me?

Employees who receive less than $20 per month in tips are not required to report the tip to the employer, but they must include them in gross income on their tax return.

I refinanced my home last year and paid points. Are they all deductible this year?

No. Points paid solely to refinance your home mortgage cannot be deducted in the year paid. Instead, they must be deducted over the life of the loan.

Can I take a deduction for the interest I paid on my student loan?

Beginning, January 1, 1998, taxpayers who have taken loans to pay the cost of attending an eligible educational institution for themselves, their spouse, or their dependent in some circumstances may be able to subtract from gross income the interest they pay on these student loans.

I use part of my living room as an office. Can I take a deduction for business use of my home?

In general, if you use a part of your home for both personal and business purposes, no expenses for business use of that part are deductible. Exceptions apply for qualified day-care providers and for the storage of inventory or product samples used in the business.

What is the standard mileage rate for 2009?

For 2009, the standard mileage rate is 55 cents per mile.


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