Fillable Form 944

Form 944 allows small businesses to report annual federal income tax and FICA tax once annually instead of quarterly. Only small business owners notified by the IRS are allowed to file this form.

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What is Form 944?

 

The Internal Revenue Service (IRS) Form 944 or officially the Employer’s Annual Federal Tax Return is used by qualified employers who have been notified in writing by the U.S. federal tax agency to use the said form instead of Form 941 or Employer’s Quarterly Federal Tax Return. It is for employers whose annual liability, including social security, Medicare, and withheld federal income taxes, is $1,000 or less.

 

Employers who were not notified by the IRS cannot file Form 944. In addition, household and agricultural employers cannot use the form.

 

Form 944 enables some employers to report tax returns annually instead of quarterly, giving the smallest employers a break in filing and paying federal tax income withheld and social security and Medicare payments from employees. 

 

Based on the instructions on Form 944, employers need to report the following when using the form:

 
  • Wages you have paid.
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  • Tips your employees reported to you.
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  • Federal income tax you withheld.
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  • Both the employer's and the employee's share of social security and Medicare taxes.
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  • Additional Medicare Tax withheld from employees.
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  • Current year's adjustments to social security and Medicare taxes for fractions of cents, sick pay, tips, and group-term life insurance.
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  • Qualified small business payroll tax credit for increasing research activities.
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    The last day of filing Form 944 is on January 31st of each year.

     

    How to Fill Out Form 944?

     

    Start filling out Form 944 by providing the following:

     
  • Your Employee Identification Number (EIN)
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  • Your legal name, not your trade name
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  • Your trade name, if applicable
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  • Your address
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    Part 1

     

    Answer the following questions for the year. If you are an employer in American Samoa, Guan, the Commonwealth of the Northern Mariana Islands, the U.S. Virgin Islands, and Puerto Rio, you can skip lines 1 and 2, unless you have employees who are subject to U.S. income tax withholding.

     

    Line 1: Provide total wages, tips, and other compensation paid to all employees.

     

    Line 2: Provide total federal income tax withheld from wages, tips, and other compensation.

     

    Line 3: Mark the checkbox and proceed to Line 5 if there are no wages, tips, and other compensation are subject to social security or Medicare tax.

     

    Line 4a—4d: Calculate taxable wages and tips according to classifications.

     

    Line 4e: Add Column 2 from Lines 4a to 4d.

     

    Line 5: Compute for total taxes before adjustments by adding Line 2 and Line 4e.

     

    Line 6: Provide the current year’s adjustments.

     

    Line 7: Compute for total taxes after adjustments by adding Line and Line 6.

     

    Line 8: Provide a qualified small business payroll tax credit for increasing research activities and attach Form 8974.

     

    Line 9: Compute for total taxes after adjustment and credits by subtracting Line 8 from Line 7.

     

    Line 10: Provide total deposits this year, including overpayment applied from a prior year and

     

    overpayments applied from Form 944-X, 944-X (SP), 941-X, or 941-X (PR).

     

    Line 11: Compute for the balance due. If Line 9 is more than Line 10, enter the difference and see instructions.

     

    Line 12: Provide the overpayment amount and mark the appropriate box on what to do with it — apply to the next return or send a refund.

     

    Part 2

     

    This section asks you to report your deposit schedule and tax liability for the year.

     

    Line 13: This line asks for information on Line 9. Mark the appropriate checkbox and proceed with the next applicable step.

     

    Line 13a—13l: If Line 9 is $2,500 or more, enter tax liability for each month.

     

    Line 13m: Compute for total liability for the year by adding Lines 13a to 13l. The total must be equal to Line 9.

     

    Part 3

     

    Inform the IRS about the status of your business.

     

    Line 14: Mark the checkbox if your business has closed or stopped paying wages and enter the final date you paid wages.

     

    Part 4

     

    Use this section to allow an employee, a paid tax preparer, or another person to discuss this return with the IRS. If you are allowing a third-party designee, provide name and phone number and select a five-digit Personal Identification Number (PIN) to use.

     

    Part 5

     

    Sign and date the form to validate all the provided information. Also provide your name, title, and daytime phone number.

     

    If you are a paid preparer, mark the checkbox if you are self-employed, then provide the following:

     
  • Name
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  • PTIN
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  • Signature
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  • Date
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  • Firm’s name, or yours if self-employed
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  • EIN
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  • Address
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  • Phone number
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    Table of Contents
    Fillable Form 944