Below is a list of the most common customer questions.
If you can’t find an answer to your question, please don’t hesitate to reach out to us.
What is the purpose of Form 8718?
When the information you will provide in your response to this request has been entered into Form 8718, you will be asked to enter an answer to the following question.
What is my response to the question?
Your response to the question will be entered on your Form 17086 under the section 'Additional Information Required to Prepare the Answer/Answer to Part I of Schedule A—Part 2'.
The information is to include a clear description of the work being performed and any changes necessary or contemplated pursuant to the requirements of section 1041 or any order issued to you.
What if no statement of reasons is required?
If no statement of reasons is required in response to the request, then you will be given 30 days from the date of the request to file on Form 17086 your response to our questions that have been identified by the government. If you are required to file an answer on a paper form, you should file your answer on or before that date. You should continue to file Form 17086 after thirty days as needed to obtain an additional statement of reasons if the government's investigation demands it.
How can I receive electronic copies of my responses to the request?
You may request, on or before your thirty-first day for filing Form 17086, a separate set of electronic copies of your responses to the request. If you are required to file an answer on a paper form, you should file your answer on or before that date. You may file your requests electronically through e-mail or a facsimile transmission.
If I change my mind about my response to the request after filing it, can I get a new set of electronic copies of my responses to the request?
Yes, you may amend a previous response. However, you must file your amended responses on or before the next filing date for Form 17086 for that part (parts) of Schedule A—part 2 and send your amendments to the IRS at Any amendment(s) made after the filing date of Form 17086 will not be made effective unless and until you send your required notification as described in IRM 188.8.131.52.2, Failure To File Responses.
Can I file Form 17086 electronically?
Yes. You may electronically file Form 17086 for a part of Schedule A—part 2.
Who should complete Form 8718?
The IRS does not recommend applying the Form 8718 to the following persons: those claiming a reduction based on a reduction in their capital loss carryovers
all persons who have already filed Form 8718 or have filed the following information returns: 2009, 2010, 2011, 2012 or other information returns, or
All persons who would have filed the 2011 or 2012 returns had they not filed a loss mitigation or correction return. In general, those persons most likely to claim a deduction or credit for a reduced tax loss carryover should complete Form 8718. Individuals who are not eligible to claim a carryover reduction based on their own capital loss carryover are also not eligible to use the Form 8718. Form 8718 is available on Form 8822, Claims for Reduced Tax Under IRC 707(a) or IRC 743. If you need help completing Form 8718, please call the Individual taxpayer line at or TTY. What happens if you complete Form 8718 and file your income tax return? If you are claiming a net operating loss for the year, you will need to file Form 5909, Net Operating Loss. If you are claiming a reduced gain on a trade or business, you will need to file Form 8955. You do not need to file Form 8718, as long as you file your income tax return on time. You will then need to wait 3 years after the date your original return was filed before filing and submitting Form 8955. What if you file Form 8955 and make a Form 8718, but there are errors? If your Form 8955 is not filed within three years after the due date of your original return, you should file a new return after the 3-year period and correct the errors that were not filed on your original return. You do not have to file Form 8955 if: you filed Form 8718 within the 3-year period, but a change of status changed your tax position prior to the filing due date;
you are filing your own Form 8852 (e.g., change-of-status individual); and
Your adjusted gross income for the year was less than 100,000. Where can I get more information on Form 8955? For more information and instructions on how to file Form 8955, see How to file Form 8955 (and any related forms). For an overview of the rules related to filing return electronically, see Electronic filing requirements.
When do I need to complete Form 8718?
Generally, you need to complete Form 8718 (or Form 2555, if associated with Form 8758) before January 1 of each year after you turn 65. If you qualify for Medicare, you are not required to complete Form 8718. However, you must get Form 8718 filed by the due date (for you and for your spouse) or, if filing jointly, by the due date (for you and your spouse). You should use Form 8718 for this purpose.
When are benefits not taxable if I have Medicare?
Generally, you cannot claim Medicare or Medicaid benefits for amounts you paid in any calendar year and in 2013 or 2014 because you are not age 65 by then. However, Medicare benefits you received for any period before 2013 and not for a calendar year are not required to be reported on your federal income tax return. Therefore, if you received Medicare benefits in 2012, you should not apply these amounts to your income. If your benefits are being recharacterized in 2013 or 2014 to be nondeductible, you are allowed to apply the recharacterization to any portion of these benefits that you did not receive on a calendar-year basis. To do this, you must use Form 8965 for the portion of the recharacterization that does not apply to your current taxes. For information on how other parts of the Medicare system, such as premiums, wages, and miscellaneous medical or dental benefits, are treated, see chapter 2 of Pub. 550, Employer's Tax Guide for Health Insurance Benefits.
Where can I get more information on claiming health insurance benefits?
To find more information on how to claim health insurance benefits, see Income Tax on Health Insurance Benefits.
When should I use Form 8965 for the recharacterization of my Medicare benefits?
Form 8965 can be used when you are recharacterizing Medicare benefits for any part of the year from the prior year for any prior period that you did not receive Medicare benefits on a calendar-year basis. For example, you can recharacterize from 2013 to 2014 your 2013 and 2014 Social Security benefits to be nondeductible so a portion of the value of your 2013 benefits can be applied to your 2015 self-employment tax in the following year.
I am not claiming the earned income credit (EIC). Under the EIC, a portion of my earned income is NOT considered taxable.
Can I create my own Form 8718?
How do you go about creating form 8718s and what does it cost?”
You can't make a form 8718 at all. That's not legal. If you have any questions about the forms you can't do anything with them unless you get a form 8718.
What if I want to do something I wasn't authorized to do with my Form 8718?
If you don't respond within 10 days of your last receipt of mail for forms 8718, the IRS will mail back a notice stating your return, and the money is yours and yours alone.
I received a Form 8718, but it didn't provide a way for me to send it.
Once you've sent in all of your forms, go to My. Gov or send an e-mail to IRS.gov/info. Follow any instructions on the screen to “Submit Payment” and wait for the form to be processed. Once you send in what you want, file it. The forms are no longer required.
If I don't know my Social Security number, what should I do with the form 8718?
Your Form 8718 will tell you whether you had a payee named as beneficiary. You can either fill out form 8718 each time and mail it back, or just send it to the Social Security Administration (SSA) and wait until they can verify your tax return.
For more information on paying taxes online for the SSA, click here.
Can I transfer the payment to another taxpayer?
No. You can only transfer the payment to another beneficiary if both of the following are true:
The transfer of funds has been permitted by legislation authorizing an official exchange
The transfer of funds would not have been permitted by legislation authorizing an official exchange
Any other transfers are contrary to section 7212(b) and are void
If your transfer is contrary to section 7212(b) and is void, you may also be subject to a penalty for the amount of any return you are unable to file, and interest at 1.5% per month.
Can I return the form for refund if the deadline for filing was in the future?
Yes. If you have a return that is due on a later date than the due date, you can submit your return before or after the due date.
What should I do with Form 8718 when it’s complete?
You should mail Form 8718 to the U.S. Social Security office where your spouse was living as of November 1, 2013. The envelope must contain a return-free request. For additional information, see How to Request Mailing Returns, later. If you mail Form 8718 to Social Security, we will use the form to complete your monthly SSI payment. For additional information about requesting a monthly SSI payment, see How to Request Form SSA-1099, Monthly Social Security Benefit. When we process Form 8718, we will mail your monthly SSI payment to the address listed on your Form 8824 or 8824-A. Mailing the form requires additional postage, so we cannot mail it to you at your current address.
What if I can't remember my spouse's social security number?
If you are living with your deceased spouse and can't remember his or her Social Security number but want to fill out Form 8718 to request your Social Security benefit, you must ask the following information on Form 8718 if you can't remember your spouse's number: Your spouse's date of death
Name of deceased or
Date of death of
Last 4 digits of last name of spouse whose number appears on the original Form 8824
Date the spouse died You must submit this information to us before you can submit your monthly SSI payment to Social Security. We can't accept missing or incorrect information.
What if I need to check my spouse's number on Form 8824?
On Form 8824, if you think your last 4 digits of your deceased spouse's Social Security number is correct, you can complete this question: (Select one): I am a child and if I am 18 years of age or older, I can enter the Social Security number of my parent (or legal guardian if I am a minor). I am a guardian and if I am 18 years of age or older, I can enter the Social Security number of my child, stepchild, foster child, or ward.
If I am a child, the Social Security number of my parent or legal guardian must be on the original Form 8824. If I am a guardian, the Social Security number of my child must be on the original Form 8824. I do not know the last 4 digits of the deceased's Social Security number.
How do I get my Form 8718?
If you are eligible, go to the Form 8718 Application for Employment and Selective Early Release form. The form is in English and Spanish, with Spanish instructions (Form8718_En Español).
If you have questions about application for employment, check the Questions and Answers.
You can find out more about applying for employment in California by reading through our overview of the application process.
You can find the employment history of individuals who have been granted employment release in the Employment History section.
If your name is not on our database, you can also sign up for electronic registration online.
Do I need to be a U.S. Citizen?
You must meet the minimum qualifications to be eligible for employment release in California. However, because there are certain specific requirements for some employment benefits, such as social security number, citizenship, and work experience, we ask that you consider working with a lawyer.
What if I don't meet employment eligibility requirements?
If you are not eligible to be released (for example, if you need a visa or have a felony on your criminal record), you may be able to reduce your release time by showing the court that you are disabled, unemployed, or otherwise unable to work. You can do this by providing information about your disability, unemployment benefits, or past criminal record.
Once you complete the Form 14C Application For Employment and Selective Early Release (ESR) form, and the court approves you, you will no longer be obligated to apply for employment (and your name will be removed from the employment database).
What about my other convictions?
If you are granted employment release the court may require that you do not have any other convictions that would bar you from reemployment in the state in the future.
How long am I allowed to be released from prison?
A single court order can grant you release from prison for 10 days or more. The release time starts on the date of the order, and counts only as a day of your release. If you have multiple sentences, they do not need to come on the same day.
If I am released from prison, can I find work? Can I qualify for social security benefits?
If you are released from jail, jail is typically followed by employment activities: employment training, job search, job interview, and other activities related to employment.
What documents do I need to attach to my Form 8718?
A statement that under penalties of perjury all the following apply:
(a) the applicant's filing fee and signature are notarized by a notary public or other person authorized by law to issue notarized statements;
(b) the affidavit in the Form 8727 is attached only to the petitions for the appointment of a surrogate or parent; and
(c) any notarized statements must be signed by the applicant, by both the applicant and any other person named in the Application, by a notary public or other person authorized by law to issue notarized statements, or by the applicant at the time of filing the application with respect to each individual or entity referenced in the Application.
(3) For the person named on the Application, proof that the person is a United States citizen or lawfully present in the United States shall be attested to by a notary public, court or other person authorized by law to issue notarized statements.
(4) For the person named on the Application, proof of an applicable exemption from taxation (provided that proof of the exemption must be attested to by a notary public, court or other person authorized by law to issue notarized statements). A certificate of such exemption is not required if an exemption is based on a tax exemption issued under Title 26, United States Code.
What are the different types of Form 8718?
The Forms 8718 can be used with all banks and credit cards. You can use these forms for everything from opening a bank account to obtaining a visa. The Forms can be found in both English and Spanish.
The most common use for the Form 8718 is to report a business income. This is because you have always reported your income, whether it's an individual income or business income. The Forms 8718 can also be used if you are unsure of your income. Because income can change, you may need to report your income, like a wage or salary, in more than one place.
If you have the information you need, you can also use these forms to apply for a bank account or to apply for a loan.
We provide the Forms 8718 for any type of income (income from a job or business, business income, capital gains, sales or gains on the sale of stock or bonds, etc).
If your income includes rental income, you must report income from all sources which adds up to at least a 30 percent tax on net rental income.
However, if you have net rental income and don't have other sources of income, do not use Form 8718 to report this income.
The standard Form 8718 is used to report business income. This may differ from other versions. See the sections on Forms 8718 and 8918 below for more information.
Business Income by Source
You can use Form 8718 to report income from only one of these sources, depending on which of these sources is reported first.
Personal income is any gross dollar income received from any source.
Business income is any gross dollar income received from any business. This includes:
Business capital gains
Interest and dividend income
These income types aren't items on Form 1040; therefore, you can't report them on a separate Schedule A.
You must report business income on a separate Schedule C-EZ. It may appear as business income on the tax return, or as a negative item on the tax return if it is less than a certain threshold. See the following examples.
If you report business earnings, you don't report a negative business loss.
How many people fill out Form 8718 each year?
More than 200,000, a huge number for someone who gets paid 50,000 a year. The IRS' guidance, provided by the Office of Information and Privacy (OIL) on March 2013, says more than half of all taxpayers file some type of form. An additional 17,500 have paid income tax that year.
Why is someone filing a Form 8718? The OIL guidance specifies that a recipient of the form might qualify for a refund through the Earned Income Tax Credit (ETC) or the Additional Child Tax Credit (ACT). In 2016, about 790,000 filers (0.06 percent) claimed the ETC based on their EIN number. They paid an estimated amount to the government of 2 billion.
Form 8854 is issued to spouses who file a joint return. It provides information about their tax bill that is different from their partner's income tax return. This information includes the federal and state income tax refunds and the deductions that they took in the year. For example, the tax filer's spouse's credit for dependent children is used to calculate the return of the taxpayer's spouse.
Is there a difference between Form 8617 and Form 8718? Yes, there is a difference. Form 8617 reports income of the filer, including capital gains if the filer owns shares of the investment property. Form 8718 contains the refund, child tax credit and additional child tax credit information for the recipient. Form 8718 has two reporting areas:
The first is a credit summary section where people can get the refund amounts they would have received plus the child tax credit and/or the additional child tax credit that they qualify for. The second is a refund breakdown report showing how much they owe as of April 17, the date the return is due.
Filing a Form 8617 does not affect income taxes that recipients receive under the child tax credit or the additional child tax credit.
What filing option is the best for you? There's no single best filing option. If you think you qualify for an exemption, and the government should provide you with it, then you should file Form 8718. If not, you should use Form 8617.
How do I file Form 8718? Make a copy of the Form 8617 you will use and complete the Form 8718 for yourself. Send it to the address on the form.
Is there a due date for Form 8718?
Anytime before October 26, 2017, to file. After October 26, 2017, the due date is January 26, 2018. Note that if you do not complete this form before the due date, penalties may apply. Your information is not confidential, and you may be required to amend or pay certain taxes or penalties.
Note: If you filed Form 8849 and have made any applicable adjustments for the year ending on this date, you cannot re-file Form 8849 or amend it after the due date because you would have to make adjustments for the year that are already due.