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1040x Instructions 2010

Federal Tax Forms 1040xPrior Year Tax ReturnEzformFree Irs FilingI Did Not File 2011 TaxesIrs Gov Forms1040xFree E File Tax ReturnFree Tax Software OnlineTax Return 2011H R Block Home 2012Ez 1040 Form 20142013 1040ez Form Instructions2011 Form 1040 EzTaxact 2011 Free Federal Edition2012 Taxes1040x Mailing AddressAmend 2011 Tax Return FreeIrs Forms For 2011 Tax Year2010 Tax File FreeFree Turbo Tax FilingHr Block Free EfileFiling Back TaxesIrs Mailing Address 1040ezCan I Amend My Taxes OnlineFillable Tax Forms 20112010 Amended Tax FormWhere Do I Send My 2012 Federal Income Tax Return2012 Tax Form 1040ez1040ez FormForm 1040nr EzFederal Form 1040xIrs Free Tax FilingState Tax ExtensionTurbo Tax 1040nrFederal 1040ez 20132012 1040 EzTax Amendment Form 2013File A Tax Extension OnlineFree 2012 Tax Software DownloadFile 1040nr Ez

1040x Instructions 2010

1040x instructions 2010 9. 1040x instructions 2010   Tax Treaty Benefits Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Treaty Income Some Typical Tax Treaty BenefitsPersonal Services Teachers, Professors, and Researchers Employees of Foreign Governments Students, Apprentices, and Trainees Capital Gains Resident Aliens Reporting Treaty Benefits Claimed Introduction A nonresident alien (and certain resident aliens) from a country with which the United States has an income tax treaty may qualify for certain benefits. 1040x instructions 2010 Most treaties require that the nonresident alien be a resident of the treaty country to qualify. 1040x instructions 2010 However, some treaties require that the nonresident alien be a national or a citizen of the treaty country. 1040x instructions 2010 See Table 9-1 for a list of tax treaty countries. 1040x instructions 2010 You can generally arrange to have withholding tax reduced or eliminated on wages and other income that are eligible for tax treaty benefits. 1040x instructions 2010 See Income Entitled to Tax Treaty Benefits in chapter 8. 1040x instructions 2010 Topics - This chapter discusses: Typical tax treaty benefits, How to obtain copies of tax treaties, and How to claim tax treaty benefits on your tax return. 1040x instructions 2010 Useful Items - You may want to see: Publication 901 U. 1040x instructions 2010 S. 1040x instructions 2010 Tax Treaties Form (and Instructions) 1040NR U. 1040x instructions 2010 S. 1040x instructions 2010 Nonresident Alien Income Tax Return 1040NR-EZ U. 1040x instructions 2010 S. 1040x instructions 2010 Income Tax Return for Certain Nonresident Aliens With No Dependents 8833 Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b) See chapter 12 for information about getting these publications and forms. 1040x instructions 2010 Treaty Income A nonresident alien's treaty income is the gross income on which the tax is limited by a tax treaty. 1040x instructions 2010 Treaty income includes, for example, dividends from sources in the United States that are subject to tax at a tax treaty rate not to exceed 15%. 1040x instructions 2010 Nontreaty income is the gross income of a nonresident alien on which the tax is not limited by a tax treaty. 1040x instructions 2010 Figure the tax on treaty income on each separate item of income at the reduced rate that applies to that item under the treaty. 1040x instructions 2010 To determine tax on nontreaty income, figure the tax at either the flat 30% rate or the graduated rate, depending upon whether or not the income is effectively connected with your trade or business in the United States. 1040x instructions 2010 Your tax liability is the sum of the tax on treaty income plus the tax on nontreaty income, but cannot be more than the tax liability figured as if the tax treaty had not come into effect. 1040x instructions 2010 Example. 1040x instructions 2010 Arthur Banks is a nonresident alien who is single and a resident of a foreign country that has a tax treaty with the United States. 1040x instructions 2010 He received gross income of $25,850 during the tax year from sources within the United States, consisting of the following items: Dividends on which the tax is limited to a 15% rate by the tax treaty $1,400 Compensation for personal services on which the tax is not limited by the tax treaty 24,450 Total gross income $25,850 Arthur was engaged in business in the United States during the tax year. 1040x instructions 2010 His dividends are not effectively connected with that business. 1040x instructions 2010 He has no deductions other than his own personal exemption. 1040x instructions 2010 His tax liability, figured as though the tax treaty had not come into effect, is $3,060 determined as follows: Total compensation $24,450 Less: Personal exemption 3,900 Taxable income $20,550 Tax determined by graduated rate (Tax Table column for single taxpayers) $2,640 Plus: Tax on gross dividends ($1,400 × 30%) 420 Tax determined as though treaty had not come into effect $3,060 Arthur's tax liability, figured by taking into account the reduced rate on dividend income as provided by the tax treaty, is $2,850 determined as follows: Tax determined by graduated rate (same as figured above) $2,640 Plus: Tax on gross dividends ($1,400 × 15%) 210 Tax on compensation and dividends $2,850 His tax liability, therefore, is limited to $2,850, the tax liability figured using the tax treaty rate on the dividends. 1040x instructions 2010 Some Typical Tax Treaty Benefits The following paragraphs briefly explain the exemptions that are available under tax treaties for personal services income, remittances, scholarships, fellowships, and capital gain income. 1040x instructions 2010 The conditions for claiming the exemptions vary under each tax treaty. 1040x instructions 2010 For more information about the conditions under a particular tax treaty, see Publication 901. 1040x instructions 2010 Or, you may download the complete text of most U. 1040x instructions 2010 S. 1040x instructions 2010 tax treaties at IRS. 1040x instructions 2010 gov. 1040x instructions 2010 Technical explanations for many of those treaties are also available at that site. 1040x instructions 2010 Tax treaty benefits also cover income such as dividends, interest, rentals, royalties, pensions, and annuities. 1040x instructions 2010 These types of income may be exempt from U. 1040x instructions 2010 S. 1040x instructions 2010 tax or may be subject to a reduced rate of tax. 1040x instructions 2010 For more information, see Publication 901 or the applicable tax treaty. 1040x instructions 2010 Personal Services Nonresident aliens from treaty countries who are in the United States for a short stay and also meet certain other requirements may be exempt from tax on their compensation received for personal services performed in the United States. 1040x instructions 2010 Many tax treaties require that the nonresident alien claiming this exemption be present in the United States for a total of not more than 183 days during the tax year. 1040x instructions 2010 Other tax treaties specify different periods of maximum presence in the United States, such as 180 days or 90 days. 1040x instructions 2010 Spending part of a day in the United States counts as a day of presence. 1040x instructions 2010 Tax treaties may also require that: The compensation cannot be more than a specific amount (frequently $3,000), and The individual have a foreign employer; that is, an individual, corporation, or entity of a foreign country. 1040x instructions 2010 Note. 1040x instructions 2010 Under most treaties, income received as an employee (generally designated as dependent personal services) and income received as a self-employed person (generally designated as independent personal services or business income) are treated differently. 1040x instructions 2010 Teachers, Professors, and Researchers Under many income tax treaties, nonresident alien teachers or professors who temporarily visit the United States for the primary purpose of teaching at a university or other accredited educational institution are not subject to U. 1040x instructions 2010 S. 1040x instructions 2010 income tax on compensation received for teaching for the first 2 or 3 years after their arrival in the United States. 1040x instructions 2010 Many treaties also provide an exemption for engaging in research. 1040x instructions 2010 Generally, the teacher or professor must be in the United States primarily to teach, lecture, instruct, or engage in research. 1040x instructions 2010 A substantial part of that person's time must be devoted to those duties. 1040x instructions 2010 The normal duties of a teacher or professor include not only formal classroom work involving regularly scheduled lectures, demonstrations, or other student-participation activities, but also the less formal method of presenting ideas in seminars or other informal groups and in joint efforts in the laboratory. 1040x instructions 2010 If you entered the United States as a nonresident alien, but are now a resident alien, the treaty exemption may still apply. 1040x instructions 2010 See Students, Apprentices, Trainees, Teachers, Professors, and Researchers Who Became Resident Aliens later under Resident Aliens. 1040x instructions 2010 Employees of Foreign Governments All treaties have provisions for the exemption of income earned by certain employees of foreign governments. 1040x instructions 2010 However, a difference exists among treaties as to who qualifies for this benefit. 1040x instructions 2010 Under many treaties, aliens admitted to the United States for permanent residence do not qualify. 1040x instructions 2010 Under most treaties, aliens who are not nationals or subjects of the foreign country do not qualify. 1040x instructions 2010 Employees of foreign governments should read the pertinent treaty carefully to determine whether they qualify for benefits. 1040x instructions 2010 Chapter 10 of this publication also has information for employees of foreign governments. 1040x instructions 2010 Students, Apprentices, and Trainees Under some income tax treaties, students, apprentices, and trainees are exempt from tax on remittances received from abroad for study and maintenance. 1040x instructions 2010 Also, under some treaties, scholarship and fellowship grants, and a limited amount of compensation received by students, apprentices, and trainees may be exempt from tax. 1040x instructions 2010 If you entered the United States as a nonresident alien, but are now a resident alien, the treaty exemption may still apply. 1040x instructions 2010 See Students, Apprentices, Trainees, Teachers, Professors, and Researchers Who Became Resident Aliens , later, under Resident Aliens. 1040x instructions 2010 Capital Gains Most treaties provide for the exemption of gains from the sale or exchange of personal property. 1040x instructions 2010 Generally, gains from the sale or exchange of real property located in the United States are taxable. 1040x instructions 2010 Resident Aliens Resident aliens may qualify for tax treaty benefits in the situations discussed below. 1040x instructions 2010 U. 1040x instructions 2010 S. 1040x instructions 2010 Residency Under Tax Treaty “Tie-Breaker” Rule In certain circumstances, individuals who are treated as residents of the United States under an income tax treaty (after application of the so-called “tie-breaker” rule) will be entitled to treaty benefits. 1040x instructions 2010 (The “tie-breaker” rule is explained in chapter 1 under Effect of Tax Treaties. 1040x instructions 2010 ) If this applies to you, you generally will not need to file a Form 8833 for the income for which treaty benefits are claimed. 1040x instructions 2010 This is because the income will typically be of a category for which disclosure on a Form 8833 is waived. 1040x instructions 2010 See Reporting Treaty Benefits Claimed . 1040x instructions 2010 In most cases, you also will not need to report the income on your Form 1040 because the income will be exempt from U. 1040x instructions 2010 S. 1040x instructions 2010 tax under the treaty. 1040x instructions 2010 However, if the income has been reported as taxable income on a Form W-2, Form 1042-S, Form 1099, or other information return, you should report it on the appropriate line of Form 1040 (for example, line 7 in the case of wages or salaries). 1040x instructions 2010 Enter the amount for which treaty benefits are claimed in parentheses on Form 1040, line 21. 1040x instructions 2010 Next to the amount write “Exempt income,” the name of the treaty country, and the treaty article that provides the exemption. 1040x instructions 2010 On Form 1040, subtract this amount from your income to arrive at total income on Form 1040, line 22. 1040x instructions 2010 Also follow the above procedure for income that is subject to a reduced rate of tax, instead of an exemption, under the treaty. 1040x instructions 2010 Attach a statement to Form 1040 showing a computation of the tax at the reduced rate, the name of the treaty country, and the treaty article that provides for the reduced tax rate. 1040x instructions 2010 Include this tax on Form 1040, line 61. 1040x instructions 2010 On the dotted line next to line 61, write “Tax from attached statement” and the amount of the tax. 1040x instructions 2010 Example. 1040x instructions 2010 Jacques Dubois, who is a resident of the United States under Article 4 of the U. 1040x instructions 2010 S. 1040x instructions 2010 -France income tax treaty, receives French social security benefits. 1040x instructions 2010 Under Article 18(1) of the treaty, French social security benefits are not taxable by the United States. 1040x instructions 2010 Mr. 1040x instructions 2010 Dubois is not required to file a Form 8833 for his French social security benefits or report the benefits on Form 1040. 1040x instructions 2010 Special Rule for Canadian and German Social Security Benefits Under income tax treaties with Canada and Germany, if a U. 1040x instructions 2010 S. 1040x instructions 2010 resident receives social security benefits from Canada or Germany, those benefits are treated for U. 1040x instructions 2010 S. 1040x instructions 2010 income tax purposes as if they were received under the social security legislation of the United States. 1040x instructions 2010 If you receive social security benefits from Canada or Germany, include them on line 1 of your Social Security Benefits Worksheet for purposes of determining the taxable amount to be reported on Form 1040, line 20b or Form 1040A, line 14b. 1040x instructions 2010 You are not required to file a Form 8833 for those benefits. 1040x instructions 2010 Students, Apprentices, Trainees, Teachers, Professors, and Researchers Who Became Resident Aliens Generally, you must be a nonresident alien student, apprentice, trainee, teacher, professor, or researcher in order to claim a tax treaty exemption for remittances from abroad for study and maintenance in the United States, for scholarship, fellowship, and research grants, and for wages or other personal service compensation. 1040x instructions 2010 Once you become a resident alien, you generally can no longer claim a tax treaty exemption for this income. 1040x instructions 2010 However, if you entered the United States as a nonresident alien, but you are now a resident alien for U. 1040x instructions 2010 S. 1040x instructions 2010 tax purposes, the treaty exemption will continue to apply if the tax treaty's saving clause (explained later) provides an exception for it and you otherwise meet the requirements for the treaty exemption (including any time limit, explained later). 1040x instructions 2010 This is true even if you are a nonresident alien electing to file a joint return as explained in chapter 1. 1040x instructions 2010 Some exceptions to the saving clause apply to all resident aliens (for example, under the U. 1040x instructions 2010 S. 1040x instructions 2010 -People's Republic of China treaty); others apply only to resident aliens who are not lawful permanent residents of the United States (green card holders). 1040x instructions 2010 If you qualify under an exception to the treaty's saving clause, you can avoid income tax withholding by giving the payor a Form W-9 with the statement required by the Form W-9 instructions. 1040x instructions 2010 Saving clause. 1040x instructions 2010   Most tax treaties have a saving clause. 1040x instructions 2010 A saving clause preserves or “saves” the right of each country to tax its own residents as if no tax treaty were in effect. 1040x instructions 2010 Thus, once you become a resident alien of the United States, you generally lose any tax treaty benefits that relate to your income. 1040x instructions 2010 However, many tax treaties have exceptions to the saving clause, which may allow you to continue to claim certain treaty benefits when you become a resident alien. 1040x instructions 2010 Read the treaty to find out if it has a saving clause and an exception to it. 1040x instructions 2010 Time limit for claiming treaty exemptions. 1040x instructions 2010   Many treaties limit the number of years you can claim a treaty exemption. 1040x instructions 2010 For students, apprentices, and trainees, the limit is usually 4–5 years; for teachers, professors, and researchers, the limit is usually 2–3 years. 1040x instructions 2010 Once you reach this limit, you can no longer claim the treaty exemption. 1040x instructions 2010 See the treaty or Publication 901 for the time limits that apply. 1040x instructions 2010 How to report income on your tax return. 1040x instructions 2010   In most cases, you also will not need to report the income on your Form 1040 because the income will be exempt from U. 1040x instructions 2010 S. 1040x instructions 2010 tax under the treaty. 1040x instructions 2010 However, if the income has been reported as taxable income on a Form W-2, Form 1042-S, Form 1099, or other information return, you should report it on the appropriate line of Form 1040 (for example, line 7 in the case of wages, salaries, scholarships, or fellowships). 1040x instructions 2010 Enter the amount for which treaty benefits are claimed in parentheses on Form 1040, line 21. 1040x instructions 2010 Next to the amount write “Exempt income,” the name of the treaty country, and the treaty article that provides the exemption. 1040x instructions 2010 On Form 1040, subtract this amount from your income to arrive at total income on Form 1040, line 22. 1040x instructions 2010 Example. 1040x instructions 2010 Mr. 1040x instructions 2010 Yu, a citizen of the People's Republic of China, entered the United States as a nonresident alien student on January 1, 2009. 1040x instructions 2010 He remained a nonresident alien through 2013 and was able to exclude his scholarship from U. 1040x instructions 2010 S. 1040x instructions 2010 tax in those years under Article 20 of the U. 1040x instructions 2010 S. 1040x instructions 2010 -People's Republic of China income tax treaty. 1040x instructions 2010 On January 1, 2014, he became a resident alien under the substantial presence test because his stay in the United States exceeded 5 years. 1040x instructions 2010 Even though Mr. 1040x instructions 2010 Yu is now a resident alien, the provisions of Article 20 still apply because of the exception to the saving clause in paragraph 2 of the Protocol to the U. 1040x instructions 2010 S. 1040x instructions 2010 -People's Republic of China treaty dated April 30, 1984. 1040x instructions 2010 Mr. 1040x instructions 2010 Yu should submit Form W-9 and the required statement to the payor. 1040x instructions 2010 Reporting Treaty Benefits Claimed If you claim treaty benefits that override or modify any provision of the Internal Revenue Code, and by claiming these benefits your tax is, or might be, reduced, you must attach a fully completed Form 8833 to your tax return. 1040x instructions 2010 See below, for the situations where you are not required to file Form 8833. 1040x instructions 2010 You must file a U. 1040x instructions 2010 S. 1040x instructions 2010 tax return and Form 8833 if you claim the following treaty benefits. 1040x instructions 2010 You claim a reduction or modification in the taxation of gain or loss from the disposition of a U. 1040x instructions 2010 S. 1040x instructions 2010 real property interest based on a treaty. 1040x instructions 2010 You claim a credit for a specific foreign tax for which foreign tax credit would not be allowed by the Internal Revenue Code. 1040x instructions 2010 You receive payments or income items totaling more than $100,000 and you determine your country of residence under a treaty and not under the rules for residency discussed in chapter 1. 1040x instructions 2010 These are the more common situations for which Form 8833 is required. 1040x instructions 2010 Exceptions. 1040x instructions 2010   You do not have to file Form 8833 for any of the following situations. 1040x instructions 2010 You claim a reduced rate of withholding tax under a treaty on interest, dividends, rent, royalties, or other fixed or determinable annual or periodic income ordinarily subject to the 30% rate. 1040x instructions 2010 You claim a treaty reduces or modifies the taxation of income from dependent personal services, pensions, annuities, social security and other public pensions, or income of artists, athletes, students, trainees, or teachers. 1040x instructions 2010 This includes taxable scholarship and fellowship grants. 1040x instructions 2010 You claim a reduction or modification of taxation of income under an International Social Security Agreement or a Diplomatic or Consular Agreement. 1040x instructions 2010 You are a partner in a partnership or a beneficiary of an estate or trust and the partnership, estate, or trust reports the required information on its return. 1040x instructions 2010 The payments or items of income that are otherwise required to be disclosed total no more than $10,000. 1040x instructions 2010 You are claiming treaty benefits for amounts that are: Reported to you on Form 1042-S and Received by you: As a related party from a reporting corporation within the meaning of Internal Revenue Code section 6038A (relating to information returns on Form 5472 filed by U. 1040x instructions 2010 S. 1040x instructions 2010 corporations that are 25-percent owned by a foreign person), or As a beneficial owner that is a direct account holder of a U. 1040x instructions 2010 S. 1040x instructions 2010 financial institution or qualified intermediary, or a direct partner, beneficiary, or owner of a withholding foreign partnership or trust, from that U. 1040x instructions 2010 S. 1040x instructions 2010 financial institution, qualified intermediary, or withholding foreign partnership or trust. 1040x instructions 2010 The exception described in (6) above does not apply to any amounts for which a treaty-based return disclosure is specifically required by the Form 8833 instructions. 1040x instructions 2010 Penalty for failure to provide required information on Form 8833. 1040x instructions 2010   If you are required to report the treaty benefits but do not, you may be subject to a penalty of $1,000 for each failure. 1040x instructions 2010 Additional information. 1040x instructions 2010   For additional information, see section 301. 1040x instructions 2010 6114-1(c) of the Income Tax Regulations. 1040x instructions 2010 Table 9-1. 1040x instructions 2010 Table of Tax Treaties (Updated through December 31, 2013) Country Official Text  Symbol1 General  Effective Date Citation Applicable Treasury Explanations  or Treasury Decision (T. 1040x instructions 2010 D. 1040x instructions 2010 ) Australia TIAS 10773 Dec. 1040x instructions 2010 1, 1983 1986-2 C. 1040x instructions 2010 B. 1040x instructions 2010 220 1986-2 C. 1040x instructions 2010 B. 1040x instructions 2010 246 Protocol TIAS Jan. 1040x instructions 2010 1, 2004     Austria TIAS Jan. 1040x instructions 2010 1, 1999     Bangladesh TIAS Jan. 1040x instructions 2010 1, 2007     Barbados TIAS 11090 Jan. 1040x instructions 2010 1, 1984 1991-2 C. 1040x instructions 2010 B. 1040x instructions 2010 436 1991-2 C. 1040x instructions 2010 B. 1040x instructions 2010 466 Protocol TIAS Jan. 1040x instructions 2010 1, 1994     Protocol TIAS Jan. 1040x instructions 2010 1, 2005     Belgium TIAS Jan. 1040x instructions 2010 1, 2008     Bulgaria TIAS Jan. 1040x instructions 2010 1, 2009     Canada2 TIAS 11087 Jan. 1040x instructions 2010 1, 1985 1986-2 C. 1040x instructions 2010 B. 1040x instructions 2010 258 1987-2 C. 1040x instructions 2010 B. 1040x instructions 2010 298 Protocol TIAS Jan. 1040x instructions 2010 1, 1996     Protocol TIAS Dec. 1040x instructions 2010 16, 1997     Protocol TIAS Jan. 1040x instructions 2010 1, 2009     China, People's Republic of TIAS 12065 Jan. 1040x instructions 2010 1, 1987 1988-1 C. 1040x instructions 2010 B. 1040x instructions 2010 414 1988-1 C. 1040x instructions 2010 B. 1040x instructions 2010 447 Commonwealth of Independent States3 TIAS 8225 Jan. 1040x instructions 2010 1, 1976 1976-2 C. 1040x instructions 2010 B. 1040x instructions 2010 463 1976-2 C. 1040x instructions 2010 B. 1040x instructions 2010 475 Cyprus TIAS 10965 Jan. 1040x instructions 2010 1, 1986 1989-2 C. 1040x instructions 2010 B. 1040x instructions 2010 280 1989-2 C. 1040x instructions 2010 B. 1040x instructions 2010 314 Czech Republic TIAS Jan. 1040x instructions 2010 1, 1993     Denmark TIAS Jan. 1040x instructions 2010 1, 2001     Protocol TIAS Jan. 1040x instructions 2010 1, 2008     Egypt TIAS 10149 Jan. 1040x instructions 2010 1, 1982 1982-1 C. 1040x instructions 2010 B. 1040x instructions 2010 219 1982-1 C. 1040x instructions 2010 B. 1040x instructions 2010 243 Estonia TIAS Jan. 1040x instructions 2010 1, 2000     Finland TIAS 12101 Jan. 1040x instructions 2010 1, 1991     Protocol TIAS Jan. 1040x instructions 2010 1, 2008     France TIAS Jan. 1040x instructions 2010 1, 1996     Protocol TIAS Jan. 1040x instructions 2010 1, 2007     Protocol TIAS Jan. 1040x instructions 2010 1, 2010     Germany TIAS Jan. 1040x instructions 2010 1, 1990     Protocol TIAS Jan. 1040x instructions 2010 1, 2008     Greece TIAS 2902 Jan. 1040x instructions 2010 1, 1953 1958-2 C. 1040x instructions 2010 B. 1040x instructions 2010 1054 T. 1040x instructions 2010 D. 1040x instructions 2010 6109, 1954-2 C. 1040x instructions 2010 B. 1040x instructions 2010 638 Hungary TIAS 9560 Jan. 1040x instructions 2010 1, 1980 1980-1 C. 1040x instructions 2010 B. 1040x instructions 2010 333 1980-1 C. 1040x instructions 2010 B. 1040x instructions 2010 354 Iceland TIAS Jan. 1040x instructions 2010 1, 2009     India TIAS Jan. 1040x instructions 2010 1, 1991     Indonesia TIAS 11593 Jan. 1040x instructions 2010 1, 1990     Ireland TIAS Jan. 1040x instructions 2010 1, 1998     Israel TIAS Jan. 1040x instructions 2010 1, 1995     Italy TIAS Jan. 1040x instructions 2010 1, 2010     Jamaica TIAS 10207 Jan. 1040x instructions 2010 1, 1982 1982-1 C. 1040x instructions 2010 B. 1040x instructions 2010 257 1982-1 C. 1040x instructions 2010 B. 1040x instructions 2010 291 Japan TIAS Jan. 1040x instructions 2010 1, 2005     Kazakhstan TIAS Jan. 1040x instructions 2010 1, 1996     Korea, South TIAS 9506 Jan. 1040x instructions 2010 1, 1980 1979-2 C. 1040x instructions 2010 B. 1040x instructions 2010 435 1979-2 C. 1040x instructions 2010 B. 1040x instructions 2010 458 Latvia TIAS Jan. 1040x instructions 2010 1, 2000     Lithuania TIAS Jan. 1040x instructions 2010 1, 2000     Luxembourg TIAS Jan. 1040x instructions 2010 1, 2001     Malta TIAS Jan. 1040x instructions 2010 1, 2011     Mexico TIAS Jan. 1040x instructions 2010 1, 1994 1994-2 C. 1040x instructions 2010 B. 1040x instructions 2010 424 1994-2 C. 1040x instructions 2010 B. 1040x instructions 2010 489 Protocol TIAS Oct. 1040x instructions 2010 26, 1995     Protocol TIAS Jan. 1040x instructions 2010 1, 2004     Morocco TIAS 10195 Jan. 1040x instructions 2010 1, 1981 1982-2 C. 1040x instructions 2010 B. 1040x instructions 2010 405 1982-2 C. 1040x instructions 2010 B. 1040x instructions 2010 427 Netherlands TIAS Jan. 1040x instructions 2010 1, 1994     Protocol TIAS Jan. 1040x instructions 2010 1, 2005     New Zealand TIAS 10772 Nov. 1040x instructions 2010 2, 1983 1990-2 C. 1040x instructions 2010 B. 1040x instructions 2010 274 1990-2 C. 1040x instructions 2010 B. 1040x instructions 2010 303 Protocol TIAS Jan. 1040x instructions 2010 1, 2011     Norway TIAS 7474 Jan. 1040x instructions 2010 1, 1971 1973-1 C. 1040x instructions 2010 B. 1040x instructions 2010 669 1973-1 C. 1040x instructions 2010 B. 1040x instructions 2010 693 Protocol TIAS 10205 Jan. 1040x instructions 2010 1, 1982 1982-2 C. 1040x instructions 2010 B. 1040x instructions 2010 440 1982-2 C. 1040x instructions 2010 B. 1040x instructions 2010 454 Pakistan TIAS 4232 Jan. 1040x instructions 2010 1, 1959 1960-2 C. 1040x instructions 2010 B. 1040x instructions 2010 646 T. 1040x instructions 2010 D. 1040x instructions 2010 6431, 1960-1 C. 1040x instructions 2010 B. 1040x instructions 2010 755 Philippines TIAS 10417 Jan. 1040x instructions 2010 1, 1983 1984-2 C. 1040x instructions 2010 B. 1040x instructions 2010 384 1984-2 C. 1040x instructions 2010 B. 1040x instructions 2010 412 Poland TIAS 8486 Jan. 1040x instructions 2010 1, 1974 1977-1 C. 1040x instructions 2010 B. 1040x instructions 2010 416 1977-1 C. 1040x instructions 2010 B. 1040x instructions 2010 427 Portugal TIAS Jan. 1040x instructions 2010 1, 1996     Romania TIAS 8228 Jan. 1040x instructions 2010 1, 1974 1976-2 C. 1040x instructions 2010 B. 1040x instructions 2010 492 1976-2 C. 1040x instructions 2010 B. 1040x instructions 2010 504 Russia TIAS Jan. 1040x instructions 2010 1, 1994     Slovak Republic TIAS Jan. 1040x instructions 2010 1, 1993     Slovenia TIAS Jan. 1040x instructions 2010 1, 2002     South Africa TIAS Jan. 1040x instructions 2010 1, 1998     Spain TIAS Jan. 1040x instructions 2010 1, 1991     Sri Lanka TIAS Jan. 1040x instructions 2010 1, 2004     Sweden TIAS Jan. 1040x instructions 2010 1, 1996     Protocol TIAS Jan. 1040x instructions 2010 1, 2007     Switzerland TIAS Jan. 1040x instructions 2010 1, 1998     Thailand TIAS Jan. 1040x instructions 2010 1, 1998     Trinidad and Tobago TIAS 7047 Jan. 1040x instructions 2010 1, 1970 1971-2 C. 1040x instructions 2010 B. 1040x instructions 2010 479   Tunisia TIAS Jan. 1040x instructions 2010 1, 1990     Turkey TIAS Jan. 1040x instructions 2010 1, 1998     Ukraine TIAS Jan. 1040x instructions 2010 1, 2001     United Kingdom TIAS Jan. 1040x instructions 2010 1, 2004     Venezuela TIAS Jan. 1040x instructions 2010 1, 2000     1(TIAS) Treaties and Other International Act Series 2Information on the treaty can be found in Publication 597, Information on the United States-Canada Income Tax Treaty. 1040x instructions 2010 3The U. 1040x instructions 2010 S. 1040x instructions 2010 -U. 1040x instructions 2010 S. 1040x instructions 2010 S. 1040x instructions 2010 R. 1040x instructions 2010 income tax treaty applies to the countries of Armenia, Azerbaijan, Belarus, Georgia, Kyrgyzstan, Moldova, Tajikistan, Turkmenistan, and Uzbekistan. 1040x instructions 2010 Prev  Up  Next   Home   More Online Publications
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Know Your Rights

The Federal Deposit Insurance Corporation and other federal regulators require banks, insurance companies, brokerage firms and certain businesses who share financial information to tell you their privacy policies. They must give you this information when you open an account, and at least once every year after. They must include:

  • the kinds of information being collected;
  • how the confidentiality and security of this information will be protected; and
  • what types of businesses may be provided this information.

If a business is going to share the information with anyone outside its corporate family, it must also give you the chance to "opt-out" or say no to information sharing. Even if you don't opt out, your actual account numbers may not be shared with third parties for marketing purposes.

You cannot prevent certain types of information from being shared, including information needed to conduct normal business or protect against fraud, or information that is already publicly available. Also, a bank can share your information with a partner company to market products.

Your credit information has additional privacy protections under the Fair Credit Reporting Act. Only people with a legitimate business need can get a copy of your report. An employer can only get your report with your written consent. For more information on your rights under this federal law and to find out how you can get a copy of your credit report, visit the Credit Bureaus and Credit Scores section.

If Your Wallet is Lost or Stolen

Your wallet contains some of your most important personal items, from hard-earned money to credit cards and driver’s license. For an identity thief, your wallet offers a treasure trove of personal information. If your wallet is lost or stolen:

  • File a report with the police immediately.
  • Cancel your credit and debit cards and request new cards and account numbers.
  • Report the missing cards to the major credit reporting agencies.
  • Report your missing license to the department of motor vehicles.

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The 1040x Instructions 2010

1040x instructions 2010 4. 1040x instructions 2010   Filing U. 1040x instructions 2010 S. 1040x instructions 2010 Tax Returns Table of Contents Who Must FileFiling Requirement if Possession Income Is Excluded When To FileExtension of Time To File Where To File Special Rules for Completing Your U. 1040x instructions 2010 S. 1040x instructions 2010 Tax ReturnU. 1040x instructions 2010 S. 1040x instructions 2010 Armed Forces. 1040x instructions 2010 Deductions if Possession Income Is Excluded Foreign Tax Credit if Possession Income Is Excluded Self-Employment Tax Additional Medicare Tax Net Investment Income Tax Paying Your TaxesEstimated Tax Double TaxationCompetent Authority Assistance The information in chapter 3 will tell you if a U. 1040x instructions 2010 S. 1040x instructions 2010 income tax return is required for your situation. 1040x instructions 2010 If a U. 1040x instructions 2010 S. 1040x instructions 2010 return is required, your next step is to see if you meet the filing requirements. 1040x instructions 2010 If you do meet the filing requirements, the information presented in this chapter will help you understand the special procedures involved. 1040x instructions 2010 This chapter discusses: Filing requirements, When to file your return, Where to send your return, How to adjust your deductions and credits if you are excluding income from American Samoa or Puerto Rico, How to make estimated tax payments and pay self-employment tax, and How to request assistance in resolving instances of double taxation. 1040x instructions 2010 Who Must File If you are not required to file a possession tax return that includes your worldwide income, you must generally file a U. 1040x instructions 2010 S. 1040x instructions 2010 income tax return if your gross income is at least the amount shown in Table 4-1, later, for your filing status and age. 1040x instructions 2010 If you were a bona fide resident of American Samoa or Puerto Rico and are able to exclude your possession income from your U. 1040x instructions 2010 S. 1040x instructions 2010 tax return, your filing requirement may be less than the amount in Table 4-1. 1040x instructions 2010 For details, see the information under Filing Requirement if Possession Income Is Excluded , later. 1040x instructions 2010 Some individuals (such as those who can be claimed as a dependent on another person's return or who owe certain taxes, such as self-employment tax) must file a tax return even though the gross income is less than the amount shown in Table 4-1 for their filing status and age. 1040x instructions 2010 For more information, see the Form 1040 instructions. 1040x instructions 2010 Filing Requirement if Possession Income Is Excluded If you were a bona fide resident of American Samoa or Puerto Rico and qualify to exclude possession income on your U. 1040x instructions 2010 S. 1040x instructions 2010 tax return, you must determine your adjusted filing requirement. 1040x instructions 2010 Generally, your filing requirement is based on the total of your (and your spouse's if filing a joint return) personal exemption(s) plus your standard deduction. 1040x instructions 2010 Personal exemption. 1040x instructions 2010   When figuring your filing requirement, your personal exemption is allowed in full. 1040x instructions 2010 Do not reduce it for this purpose. 1040x instructions 2010 Do not include exemptions for your dependents. 1040x instructions 2010 Allowable standard deduction. 1040x instructions 2010   Unless your filing status is married filing separately, the minimum income level at which you must file a return is based, in part, on the standard deduction for your filing status and age. 1040x instructions 2010 Because the standard deduction applies to all types of income, it must be divided between your excluded income and income from other sources. 1040x instructions 2010 Multiply the regular standard deduction for your filing status and age (this is zero if you are married filing a separate return; all others, see Form 1040 instructions) by the following fraction:      Gross income subject to U. 1040x instructions 2010 S. 1040x instructions 2010 income tax     Gross income from all sources (including excluded possession income)   Example. 1040x instructions 2010 Barbara Spruce, a U. 1040x instructions 2010 S. 1040x instructions 2010 citizen, is single, under 65, and a bona fide resident of American Samoa. 1040x instructions 2010 During 2013, she received $20,000 of income from American Samoa sources (qualifies for exclusion) and $8,000 of income from sources outside the possession (subject to U. 1040x instructions 2010 S. 1040x instructions 2010 income tax). 1040x instructions 2010 Her allowable standard deduction for 2013 is figured as follows:   $8,000 $28,000 × $6,100 (regular standard deduction) = $1,743   Adjusted filing requirement. 1040x instructions 2010   Figure your adjusted filing requirement by adding the amount of your allowable standard deduction to the amount of your personal exemption. 1040x instructions 2010 You must file a U. 1040x instructions 2010 S. 1040x instructions 2010 income tax return if your gross income is at least the amount shown on line 3 of the following worksheet. 1040x instructions 2010    1. 1040x instructions 2010 Enter the allowable standard deduction you figured earlier under Allowable standard deduction . 1040x instructions 2010 If your filing status is married filing separately, enter -0-   2. 1040x instructions 2010 Personal exemption. 1040x instructions 2010 If your filing status is married filing jointly, enter $7,800; if someone can claim you as a dependent, enter -0-; otherwise, enter $3,900   3. 1040x instructions 2010 Add lines 1 and 2. 1040x instructions 2010 You must file a U. 1040x instructions 2010 S. 1040x instructions 2010 income tax return if your gross income from sources outside the relevant possession is at least this amount   Table 4-1. 1040x instructions 2010 2013 Filing Requirements Chart for Most Taxpayers IF your filing status is. 1040x instructions 2010 . 1040x instructions 2010 . 1040x instructions 2010 AND at the end of 2013 you were*. 1040x instructions 2010 . 1040x instructions 2010 . 1040x instructions 2010 THEN file a return if your gross income** was at least. 1040x instructions 2010 . 1040x instructions 2010 . 1040x instructions 2010 single under 65 $10,000 65 or older $11,500 married filing jointly*** under 65 (both spouses) $20,000 65 or older (one spouse) $21,200 65 or older (both spouses) $22,400 married filing separately any age $3,900 head of household under 65 $12,850 65 or older $14,350 qualifying widow(er)  with dependent child under 65 $16,100 65 or older $17,300 * If you were born on January 1, 1949, you are considered to be age 65 at the end of 2013. 1040x instructions 2010 ** Gross income means all income you received in the form of money, goods, property, and services that is not exempt from tax, including any income from sources outside the United States (even if you can exclude part or all of it). 1040x instructions 2010 Do not include social security benefits unless (a) you are married filing a separate return and you lived with your spouse at any time during 2013, or (b) one-half of your social security benefits plus your other gross income is more than $25,000 ($32,000 if married filing jointly). 1040x instructions 2010 If (a) or (b) applies, see the instructions for Form 1040 or Publication 915, Social Security and Equivalent Railroad Retirement Benefits, to figure the taxable part of social security benefits you must include in gross income. 1040x instructions 2010 *** If you did not live with your spouse at the end of 2013 (or on the date your spouse died) and your gross income was at least $3,900 you must file a return regardless of your age. 1040x instructions 2010 Example 1. 1040x instructions 2010 James and Joan Thompson, one over 65, are U. 1040x instructions 2010 S. 1040x instructions 2010 citizens and bona fide residents of Puerto Rico during the entire tax year. 1040x instructions 2010 They file a joint income tax return. 1040x instructions 2010 During 2013, they received $35,000 of income from Puerto Rico sources (qualifies for exclusion) and $6,000 of income from sources outside Puerto Rico (subject to U. 1040x instructions 2010 S. 1040x instructions 2010 income tax). 1040x instructions 2010 Their allowable standard deduction for 2013 is figured as follows:   $6,000 $41,000 × $13,400 ( standard deduction for 65 or older (one spouse) ) = $1,961   The Thompsons do not have to file a U. 1040x instructions 2010 S. 1040x instructions 2010 income tax return because their gross income subject to U. 1040x instructions 2010 S. 1040x instructions 2010 tax ($6,000) is less than their allowable standard deduction plus their personal exemptions ($1,961+ $7,800= $9,761). 1040x instructions 2010 Example 2. 1040x instructions 2010 Barbara Spruce (see Example under Allowable standard deduction, earlier), however, must file a U. 1040x instructions 2010 S. 1040x instructions 2010 income tax return because her gross income subject to U. 1040x instructions 2010 S. 1040x instructions 2010 tax ($8,000) is more than her allowable standard deduction plus her personal exemption ($1,743 + $3,900 = $5,643). 1040x instructions 2010 If you must file a U. 1040x instructions 2010 S. 1040x instructions 2010 income tax return, you may be able to file a paperless return using IRS e-file. 1040x instructions 2010 See your form instructions or visit our website at IRS. 1040x instructions 2010 gov. 1040x instructions 2010 When To File If you file on a calendar year basis, the due date for filing your U. 1040x instructions 2010 S. 1040x instructions 2010 income tax return is April 15 following the end of your tax year. 1040x instructions 2010 If you use a fiscal year (a year ending on the last day of a month other than December), the due date is the 15th day of the 4th month after the end of your fiscal year. 1040x instructions 2010 If any due date falls on a Saturday, Sunday, or legal holiday, your tax return is due on the next business day. 1040x instructions 2010 For your 2013 tax return, the due date is April 15, 2014. 1040x instructions 2010 If you mail your federal tax return, it is considered timely if it bears an official postmark dated on or before the due date, including any extensions. 1040x instructions 2010 If you use a private delivery service designated by the IRS, generally the postmark date is the date the private delivery service records in its database or marks on the mailing label. 1040x instructions 2010 See your form instructions for a list of designated private delivery services. 1040x instructions 2010 Extension of Time To File You can get an extension of time to file your U. 1040x instructions 2010 S. 1040x instructions 2010 income tax return. 1040x instructions 2010 Special rules apply for those living outside the United States. 1040x instructions 2010 Automatic 6-Month Extension If you cannot file your 2013 return by the due date, you can get an automatic 6-month extension of time to file. 1040x instructions 2010 Example. 1040x instructions 2010 If your return must be filed by April 15, 2014, you will have until October 15, 2014, to file. 1040x instructions 2010 Although you are not required to make a payment of the tax you estimate as due, Form 4868 does not extend the time to pay taxes. 1040x instructions 2010 If you do not pay the amount due by the regular due date (generally April 15), you will owe interest on any unpaid tax from the original due date to the date you pay the tax. 1040x instructions 2010 You may also be charged penalties (see the Instructions for Form 4868). 1040x instructions 2010 How to get the automatic extension. 1040x instructions 2010   You can get the automatic 6-month extension if you do one of the following by the due date for filing your return. 1040x instructions 2010 E-file Form 4868 using your personal computer or a tax professional. 1040x instructions 2010 E-file and pay by credit or debit card. 1040x instructions 2010 Your payment must be at least $1. 1040x instructions 2010 You may pay by phone or over the Internet. 1040x instructions 2010 Do not file Form 4868. 1040x instructions 2010 File a paper Form 4868. 1040x instructions 2010 If you are a fiscal year taxpayer, you must file a paper Form 4868. 1040x instructions 2010 See Form 4868 for information on getting an extension using these options. 1040x instructions 2010 When to file. 1040x instructions 2010   You must request the automatic extension by the due date for your return. 1040x instructions 2010 You can file your return any time before the 6-month extension period ends. 1040x instructions 2010 When you file your return. 1040x instructions 2010   Enter any payment you made related to the extension of time to file on Form 1040, line 68. 1040x instructions 2010 If you file Form 1040A, U. 1040x instructions 2010 S. 1040x instructions 2010 Individual Income Tax Return, or Form 1040EZ, Income Tax Return for Single and Joint Filers With No Dependents, include that payment in your total payments on Form 1040A, line 41, or Form 1040EZ, line 9. 1040x instructions 2010 Also enter “Form 4868” and the amount paid in the space to the left of the entry space for line 41 or line 9. 1040x instructions 2010 You cannot ask the Internal Revenue Service to figure your tax if you use the extension of time to file. 1040x instructions 2010 Individuals Outside the United States and Puerto Rico You are allowed an automatic 2-month extension (until June 16, 2014, if you use the calendar year) to file your 2013 return and pay any federal income tax due if: You are a U. 1040x instructions 2010 S. 1040x instructions 2010 citizen or resident, and On the due date of your return: You are living outside of the United States and Puerto Rico, and your main place of business or post of duty is outside the United States and Puerto Rico, or You are in military or naval service on duty outside the United States and Puerto Rico. 1040x instructions 2010 However, if you pay the tax due after the regular due date (generally April 15), interest will be charged from April 15 until the date the tax is paid. 1040x instructions 2010 If you serve in a combat zone or qualified hazardous duty area, you may be eligible for a longer extension of time to file. 1040x instructions 2010 For more information, see Publication 3, Armed Forces' Tax Guide. 1040x instructions 2010 Married taxpayers. 1040x instructions 2010   If you file a joint return, only one spouse has to qualify for this automatic extension. 1040x instructions 2010 However, if you and your spouse file separate returns, this automatic extension applies only to the spouse who qualifies. 1040x instructions 2010 How to get the extension. 1040x instructions 2010   To use this special automatic extension, you must attach a statement to your return explaining what situation qualified you for the extension. 1040x instructions 2010 (See the situations listed under (2), earlier. 1040x instructions 2010 ) Extension beyond 2 months. 1040x instructions 2010   If you cannot file your 2013 return within the automatic 2-month extension period, you can get an additional 4-month extension, for a total of 6 months. 1040x instructions 2010 File Form 4868 by the end of the automatic extension period (June 16, 2014 for calendar year taxpayers). 1040x instructions 2010 Be sure to check the box on Form 4868, line 8, if appropriate. 1040x instructions 2010   In addition to this 6-month extension, taxpayers who are out of the country (as defined under (2) earlier) can request a discretionary 2-month additional extension of time to file their returns (to December 15 for calendar year taxpayers). 1040x instructions 2010   To request this extension, you must send the IRS a letter explaining the reasons why you need the additional 2 months. 1040x instructions 2010 Send the letter by the extended due date (October 15 for calendar year taxpayers) to:  Department of the Treasury Internal Revenue Service Austin, TX 73301-0215 USA   You will not receive any notification from the IRS unless your request is denied for being untimely. 1040x instructions 2010 Where To File Use the addresses listed below if you have to file Form 1040 with the United States and you are excluding possession income from American Samoa or Puerto Rico. 1040x instructions 2010 If you are not including a check or a money order, send your U. 1040x instructions 2010 S. 1040x instructions 2010 tax return and all attachments to:   Department of the Treasury Internal Revenue Service Austin, TX 73301-0215 USA If you are including a check or a money order, send your U. 1040x instructions 2010 S. 1040x instructions 2010 tax return and all attachments to:  Internal Revenue Service P. 1040x instructions 2010 O. 1040x instructions 2010 Box 1303 Charlotte, NC 28201-1303 USA Also send your U. 1040x instructions 2010 S. 1040x instructions 2010 return to these addresses if you are attaching Form 5074 or Form 8689. 1040x instructions 2010 If you are not in either of the above categories, send your return to the address shown in the Form 1040 instructions for the possession or state in which you reside. 1040x instructions 2010 Special Rules for Completing Your U. 1040x instructions 2010 S. 1040x instructions 2010 Tax Return If you are not excluding possession income from your U. 1040x instructions 2010 S. 1040x instructions 2010 tax return, follow the instructions for the specific forms you file. 1040x instructions 2010 However, you may not qualify to claim the earned income credit (EIC). 1040x instructions 2010 Earned income credit. 1040x instructions 2010   Even if you maintain a household in one of the possessions discussed in this publication that is your main home and the home of your qualifying child, you cannot claim the earned income credit on your U. 1040x instructions 2010 S. 1040x instructions 2010 tax return. 1040x instructions 2010 This credit is available only if you maintain the household in the United States or you are serving on extended active duty in the U. 1040x instructions 2010 S. 1040x instructions 2010 Armed Forces. 1040x instructions 2010 U. 1040x instructions 2010 S. 1040x instructions 2010 Armed Forces. 1040x instructions 2010   U. 1040x instructions 2010 S. 1040x instructions 2010 military personnel stationed outside the United States on extended active duty are considered to live in the United States during that duty period for purposes of the EIC. 1040x instructions 2010 Extended active duty means you are called or ordered to duty for an indefinite period or for a period of more than 90 days. 1040x instructions 2010 Once you begin serving your extended active duty, you are still considered to have been on extended active duty even if you do not serve more than 90 days. 1040x instructions 2010 Income from American Samoa or Puerto Rico excluded. 1040x instructions 2010   You will not be allowed to take deductions and credits that apply to the excluded income. 1040x instructions 2010 The additional information you need follows. 1040x instructions 2010 Deductions if Possession Income Is Excluded Deductions that specifically apply to your excluded possession income, such as employee business expenses, are not allowable on your U. 1040x instructions 2010 S. 1040x instructions 2010 income tax return. 1040x instructions 2010 Deductions that do not specifically apply to any particular type of income must be divided between your excluded income from sources in the relevant possession and income from all other sources to find the part that you can deduct on your U. 1040x instructions 2010 S. 1040x instructions 2010 tax return. 1040x instructions 2010 Examples of such deductions are alimony payments, the standard deduction, and certain itemized deductions (such as medical expenses, charitable contributions, real estate taxes, and mortgage interest on your home). 1040x instructions 2010 Figuring the deduction. 1040x instructions 2010   To find the part of a deduction that is allowable, multiply the deduction by the following fraction. 1040x instructions 2010   Gross income subject to U. 1040x instructions 2010 S. 1040x instructions 2010 income tax     Gross income from all sources (including excluded possession income)   Adjustments to Income Your adjusted gross income equals your gross income minus certain deductions (adjustments). 1040x instructions 2010 Moving expense deduction. 1040x instructions 2010   Generally, expenses of a move to a possession are directly attributable to wages, salaries, and other earned income from that possession. 1040x instructions 2010 Likewise, the expenses of a move back to the United States are generally attributable to U. 1040x instructions 2010 S. 1040x instructions 2010 earned income. 1040x instructions 2010   If you are claiming expenses for a move to a relevant possession, how and where you will deduct the expenses depends on your status as a bona fide resident and if any of your possession income is excluded on your U. 1040x instructions 2010 S. 1040x instructions 2010 tax return. 1040x instructions 2010 For more information, see Moving expense deduction in chapter 3 under the name of the relevant possession. 1040x instructions 2010   If you are claiming expenses for a move from a U. 1040x instructions 2010 S. 1040x instructions 2010 possession to the United States, use Form 3903 to figure your deductible expenses and enter the amount on Form 1040, line 26. 1040x instructions 2010 For purposes of deducting moving expenses, the possessions are considered part of the United States. 1040x instructions 2010 See Publication 521, Moving Expenses, for information about what expenses are deductible. 1040x instructions 2010 Self-employment tax deduction. 1040x instructions 2010   Generally, if you are reporting self-employment income on your U. 1040x instructions 2010 S. 1040x instructions 2010 return, you can include the deductible part of your self-employment tax on Form 1040, line 27. 1040x instructions 2010 This is an income tax deduction only; it is not a deduction in figuring net earnings from self-employment (for self-employment tax). 1040x instructions 2010   However, if you are a bona fide resident of American Samoa or Puerto Rico and you exclude all of your self-employment income from gross income, you cannot take the deduction on Form 1040, line 27, because the deduction is related to excluded income. 1040x instructions 2010   If only part of your self-employment income is excluded, the part of the deduction that is based on the nonexcluded income is allowed. 1040x instructions 2010 This would happen if, for instance, you have two businesses and only the income from one of them is excludable. 1040x instructions 2010   For purposes of the deduction only, figure the self-employment tax on the nonexcluded income by multiplying your total self-employment tax (from Schedule SE (Form 1040)), Self-Employment Tax) by the following fraction. 1040x instructions 2010   Self-employment income subject to U. 1040x instructions 2010 S. 1040x instructions 2010 income tax     Total self-employment income (including excluded possession income)   The result is your self-employment tax on nonexcluded income. 1040x instructions 2010 Include the deductible part of this amount on Form 1040, line 27. 1040x instructions 2010 Individual retirement arrangement (IRA) deduction. 1040x instructions 2010   Do not take excluded income into account when figuring your deductible IRA contribution. 1040x instructions 2010 Standard Deduction The standard deduction is composed of the regular standard deduction amount and the additional standard deduction for taxpayers who are blind or age 65 or over. 1040x instructions 2010 To find the amount you can claim on Form 1040, line 40, first figure your full standard deduction according to the Instructions for Form 1040. 1040x instructions 2010 Then multiply your full standard deduction by the following fraction. 1040x instructions 2010   Gross income subject to U. 1040x instructions 2010 S. 1040x instructions 2010 income tax     Gross income from all sources (including excluded possession income)   In the space above line 40, enter “Standard deduction modified due to income excluded under section 931 (if American Samoa) or section 933 (if Puerto Rico). 1040x instructions 2010 ” This calculation may not be the same as the one you used to determine if you need to file a U. 1040x instructions 2010 S. 1040x instructions 2010 tax return. 1040x instructions 2010 Itemized Deductions Most itemized deductions do not apply to a particular type of income. 1040x instructions 2010 However, itemized deductions can be divided into three categories. 1040x instructions 2010 Those that apply specifically to excluded income, such as employee business expenses, are not deductible. 1040x instructions 2010 Those that apply specifically to income subject to U. 1040x instructions 2010 S. 1040x instructions 2010 income tax, which might also be employee business expenses, are fully allowable under the Instructions for Schedule A (Form 1040), Itemized Deductions. 1040x instructions 2010 Those that do not apply to specific income must be allocated between your gross income subject to U. 1040x instructions 2010 S. 1040x instructions 2010 income tax and your total gross income from all sources. 1040x instructions 2010 The example given later shows how to figure the deductible part of each type of expense that is not related to specific income. 1040x instructions 2010 Example. 1040x instructions 2010 In 2013, you and your spouse are both under 65 and U. 1040x instructions 2010 S. 1040x instructions 2010 citizens who are bona fide residents of Puerto Rico during the entire tax year. 1040x instructions 2010 You file a joint income tax return. 1040x instructions 2010 During 2013, you earned $20,000 from Puerto Rican sources (excluded from U. 1040x instructions 2010 S. 1040x instructions 2010 gross income) and your spouse earned $60,000 from the U. 1040x instructions 2010 S. 1040x instructions 2010 Government. 1040x instructions 2010 You have $16,000 of itemized deductions that do not apply to any specific type of income. 1040x instructions 2010 These are medical expenses of $4,000, real estate taxes of $5,000, home mortgage interest of $6,000, and charitable contributions of $1,000 (cash contributions). 1040x instructions 2010 You determine the amount of each deduction that you can claim on your Schedule A (Form 1040), Itemized Deductions, by multiplying the deduction by the fraction shown under Figuring the deduction , earlier under Deductions if Possession Income is Excluded. 1040x instructions 2010   Medical Expenses   $60,000$80,000 × $4,000 = $3,000  (enter on line 1  of Schedule A)     Real Estate Taxes   $60,000$80,000 × $5,000 = $3,750  (enter on line 6  of Schedule A)     Home Mortgage Interest   $60,000$80,000 × $6,000 = $4,500  (enter on line 10 or 11 of  Schedule A)     Charitable Contributions (cash contributions)   $60,000$80,000 × $1,000 = $750  (enter on line 16 of Schedule A)   Enter on Schedule A (Form 1040) only the allowable portion of each deduction. 1040x instructions 2010 Overall limitation on itemized deductions. 1040x instructions 2010   If your adjusted gross income (discussed earlier) is over $300,000 if married filing jointly or qualifying widow(er); $275,000 if head of household; $250,000 if single; or $150,000 if married filing separately; see the Itemized Deductions Worksheet in the Instructions for Schedule A (Form 1040), to figure your itemized deductions. 1040x instructions 2010 Personal Exemptions Personal exemptions are allowed in full even if excluding possession income. 1040x instructions 2010 However, depending upon your adjusted gross income and filing status, the amount you can deduct may be reduced. 1040x instructions 2010 See the Deduction for Exemptions Worksheet—Line 42 in the instructions for Form 1040. 1040x instructions 2010 Foreign Tax Credit if Possession Income Is Excluded If you must report American Samoa or Puerto Rico source income on your U. 1040x instructions 2010 S. 1040x instructions 2010 tax return, you can claim a foreign tax credit for income taxes paid to the possession on that income. 1040x instructions 2010 However, you cannot claim a foreign tax credit for taxes paid on possession income that is excluded on your U. 1040x instructions 2010 S. 1040x instructions 2010 tax return. 1040x instructions 2010 The foreign tax credit is generally figured on Form 1116. 1040x instructions 2010 If you have income, such as U. 1040x instructions 2010 S. 1040x instructions 2010 Government wages, that is not excludable, and you also have possession source income that is excludable, you must figure the credit by reducing your foreign taxes paid or accrued by the taxes based on the excluded income. 1040x instructions 2010 You make this reduction for each separate income category. 1040x instructions 2010 To find the amount of this reduction, use the following formula for each income category. 1040x instructions 2010 Excluded income from possession sources less deductible expenses based on that income x Tax paid or accrued to the possession = Reduction in foreign taxes Total income subject to possession tax less deductible expenses based on that income Enter the amount of the reduction on Form 1116, line 12. 1040x instructions 2010 For more information on the foreign tax credit, see Publication 514. 1040x instructions 2010 Example. 1040x instructions 2010 Jason and Lynn Reddy are U. 1040x instructions 2010 S. 1040x instructions 2010 citizens who were bona fide residents of Puerto Rico during all of 2013. 1040x instructions 2010 They file a joint tax return. 1040x instructions 2010 The following table shows their excludable and taxable income for U. 1040x instructions 2010 S. 1040x instructions 2010 federal income tax purposes. 1040x instructions 2010   Taxable   Excludable Jason's wages from  U. 1040x instructions 2010 S. 1040x instructions 2010 Government $25,000     Lynn's wages from Puerto Rico  corp. 1040x instructions 2010     $15,000 Dividend from Puerto Rico corp. 1040x instructions 2010 doing business in Puerto Rico     200 Dividend from U. 1040x instructions 2010 S. 1040x instructions 2010  corp. 1040x instructions 2010 doing business  in U. 1040x instructions 2010 S. 1040x instructions 2010 * 1,000     Totals $26,000   $15,200 * Income from sources outside Puerto Rico is taxable. 1040x instructions 2010   Jason and Lynn must file 2013 income tax returns with both Puerto Rico and the United States. 1040x instructions 2010 They have gross income of $26,000 for U. 1040x instructions 2010 S. 1040x instructions 2010 tax purposes. 1040x instructions 2010 They paid taxes to Puerto Rico of $4,000 ($3,980 on their wages and $20 on the dividend from the Puerto Rico corporation). 1040x instructions 2010 They figure their foreign tax credit on two Forms 1116, which they must attach to their U. 1040x instructions 2010 S. 1040x instructions 2010 return. 1040x instructions 2010 They fill out one Form 1116 for wages and one Form 1116 for the dividend. 1040x instructions 2010 Jason and Lynn figure the Puerto Rico taxes on excluded income as follows. 1040x instructions 2010   Wages: ($15,000 ÷ $40,000) × $3,980 = $1,493   Dividend: ($200 ÷ $200) × $20 = $20 They enter $1,493 on Form 1116, line 12, for wages and $20 on the second Form 1116, line 12, for the dividend. 1040x instructions 2010 Self-Employment Tax Self-employment tax includes both social security and Medicare taxes for individuals who are self-employed. 1040x instructions 2010 A U. 1040x instructions 2010 S. 1040x instructions 2010 citizen or resident alien who is self-employed must pay self-employment tax on net self-employment earnings of $400 or more. 1040x instructions 2010 This rule applies whether or not the earnings are excludable from gross income (or whether or not a U. 1040x instructions 2010 S. 1040x instructions 2010 income tax return must otherwise be filed). 1040x instructions 2010 Bona fide residents of the possessions discussed in this publication are considered U. 1040x instructions 2010 S. 1040x instructions 2010 residents for this purpose and are subject to the self-employment tax. 1040x instructions 2010 Forms to file. 1040x instructions 2010   If you have net self-employment income and are subject to self-employment tax, file one of the following with the United States. 1040x instructions 2010 If you are required to file Form 1040 with the United States, complete Schedule SE (Form 1040) and attach it to your Form 1040. 1040x instructions 2010 If you are not required to file Form 1040 with the United States and you are a bona fide resident of American Samoa, the CNMI, Guam, Puerto Rico, or the USVI, file Form 1040-SS. 1040x instructions 2010 If you are a resident of Puerto Rico, you can file the Spanish-language Form 1040-PR instead. 1040x instructions 2010 Do not file forms 1040-SS or 1040-PR with Form 1040. 1040x instructions 2010 If you are required to pay Additional Medicare Tax (discussed later) on your self-employment income, attach Form 8959, Additional Medicare Tax to Form 1040, Form 1040-SS, or Form 1040-PR, as applicable. 1040x instructions 2010 Chapter 11 Bankruptcy cases. 1040x instructions 2010   While you are a debtor in a chapter 11 bankruptcy case, your net profit or loss from self-employment will be included on the income tax return (Form 1041, U. 1040x instructions 2010 S. 1040x instructions 2010 Income Tax Return for Estates and Trusts) of the bankruptcy estate. 1040x instructions 2010 However, you—not the bankruptcy estate—are responsible for paying self-employment tax on your net earnings from self-employment. 1040x instructions 2010   Use Schedule SE (Form 1040), Form 1040-SS, or Form 1040-PR, as determined above, to figure your correct amount of self-employment tax. 1040x instructions 2010   For other reporting requirements, see Chapter 11 Bankruptcy Cases in the Instructions for Form 1040. 1040x instructions 2010 Additional Medicare Tax Beginning in 2013, a 0. 1040x instructions 2010 9% Additional Medicare Tax applies to Medicare wages, railroad retirement (RRTA) compensation, and self-employment income that are more than: $125,000 if married filing separately, $250,000 if married filing jointly, or $200,000 if single, head of household, or qualifying widow(er). 1040x instructions 2010 Medicare wages and self-employment income are combined to determine if income exceeds the threshold. 1040x instructions 2010 A self-employment loss should not be considered for purposes of this tax. 1040x instructions 2010 RRTA compensation should be separately compared to the threshold. 1040x instructions 2010 Your employer is responsible for withholding the 0. 1040x instructions 2010 9% Additional Medicare Tax on Medicare wages or RRTA compensation it pays to you in excess of $200,000. 1040x instructions 2010 You should consider this withholding, if applicable, in determining whether you need to make estimated tax payments. 1040x instructions 2010 There are no special rules for U. 1040x instructions 2010 S. 1040x instructions 2010 citizens and nonresident aliens living abroad for purposes of this provision. 1040x instructions 2010 Wages, RRTA compensation, and self-employment income that are subject to Medicare tax will also be subject to Additional Medicare Tax if in excess of the applicable threshold. 1040x instructions 2010 For more information, see Form 8959, Additional Medicare Tax, and its instructions or visit www. 1040x instructions 2010 irs. 1040x instructions 2010 gov and enter the following words in the search box: Additional Medicare Tax. 1040x instructions 2010 You cannot include the Additional Medicare Tax as a deductible part of your self-employment tax. 1040x instructions 2010 Net Investment Income Tax Beginning in 2013, the Net Investment Income Tax (NIIT) imposes a 3. 1040x instructions 2010 8% tax on the lesser of an individual’s net investment income or the excess of the individual’s modified adjusted gross income over a specified threshold amount. 1040x instructions 2010 Bona fide residents of Puerto Rico and American Samoa who may have a federal income tax return filing obligation may be liable for the NIIT if the taxpayer’s modified adjusted gross income from non-territory sources exceeds a specified threshold amount. 1040x instructions 2010 The NIIT does not apply to any individual who is a nonresident alien with respect to the United States. 1040x instructions 2010 Bona fide residents must take into account any additional tax liability associated with the NIIT when calculating your estimated tax payments. 1040x instructions 2010 Forms to file. 1040x instructions 2010   If you are a bona fide resident of American Samoa and Puerto Rico and you are required to pay the NIIT, you must file Form 1040 with the United States and attach Form 8960, Net Investment Income Tax—Individuals, Estates, and Trusts. 1040x instructions 2010 For more information, see Form 8960 and its instructions. 1040x instructions 2010 Paying Your Taxes You may find that not all of your income tax has been paid through withholding by either the United States or the possession. 1040x instructions 2010 This is often true if you have income that is not subject to withholding, such as self-employment, interest, or rental income. 1040x instructions 2010 In this situation, you may need to make estimated tax payments. 1040x instructions 2010 Estimated Tax If your estimated income tax obligation is to the United States, use the worksheet in the Form 1040-ES package to figure your estimated tax, including self-employment tax. 1040x instructions 2010 Include the Additional Medicare Tax and Net Investment Income Tax if applicable. 1040x instructions 2010 If you are paying by check or money order, use the payment vouchers in the Form 1040-ES package. 1040x instructions 2010 Or, you can make your payments electronically and not have to file any paper forms. 1040x instructions 2010 See the Form 1040-ES instructions for information on making payments. 1040x instructions 2010 Double Taxation Mutual agreement procedures exist to settle issues where there is inconsistent tax treatment between the IRS and the taxing authorities of the following possessions. 1040x instructions 2010 American Samoa. 1040x instructions 2010 The Commonwealth of Puerto Rico. 1040x instructions 2010 The Commonwealth of the Northern Mariana Islands. 1040x instructions 2010 Guam. 1040x instructions 2010 The U. 1040x instructions 2010 S. 1040x instructions 2010 Virgin Islands. 1040x instructions 2010 These issues usually involve allocations of income, deductions, credits, or allowances between related persons; determinations of residency; and determinations of the source of income and related expenses. 1040x instructions 2010 Competent Authority Assistance The tax coordination agreements between the United States and the possession tax departments contain provisions allowing the competent authorities of the United States and the relevant possession to resolve, by mutual agreement, inconsistent tax treatment by the two jurisdictions. 1040x instructions 2010 How to make your request. 1040x instructions 2010   Your request for competent authority assistance must include all the information listed in Revenue Procedure 2006-23, 2006-20 I. 1040x instructions 2010 R. 1040x instructions 2010 B. 1040x instructions 2010 900 available at www. 1040x instructions 2010 irs. 1040x instructions 2010 gov/pub/irs-irbs/irb06-49. 1040x instructions 2010 pdf. 1040x instructions 2010    Also, see Notice 2013-78, which provides proposed updates to the procedures for requesting U. 1040x instructions 2010 S. 1040x instructions 2010 competent authority assistance under tax treaties. 1040x instructions 2010 As noted, an update to Revenue Procedure 2006-23 will be published in the future. 1040x instructions 2010   Your request must be in the form of a letter addressed to the Deputy Commissioner (International) LB&I. 1040x instructions 2010 It must contain a statement that competent authority assistance is requested under the mutual agreement procedure with the possession. 1040x instructions 2010 You (or a person having authority to sign your federal return) must sign and date the request. 1040x instructions 2010    Send your written request for U. 1040x instructions 2010 S. 1040x instructions 2010 assistance under this procedure to:   Deputy Commissioner (International) Large Business and International Division Internal Revenue Service 1111 Constitution Avenue, N. 1040x instructions 2010 W. 1040x instructions 2010  Routing: M4-365 Washington, DC 20224 (Attention: TAIT) Nonresident aliens generally must present their initial request for assistance to the relevant possession tax agency. 1040x instructions 2010 Credit or Refund In addition to the tax assistance request, if you seek a credit or refund of any overpayment of U. 1040x instructions 2010 S. 1040x instructions 2010 tax paid on the income in question, you should file a claim on Form 1040X, Amended U. 1040x instructions 2010 S. 1040x instructions 2010 Individual Income Tax Return. 1040x instructions 2010 Indicate on the form that a request for assistance under the mutual agreement procedure with the possession has been filed. 1040x instructions 2010 Attach a copy of the request to the form. 1040x instructions 2010 Also, you should take whatever steps must be taken under the possession tax code to prevent the expiration of the statutory period for filing a claim for credit or refund of a possession tax. 1040x instructions 2010 See Revenue Procedure 2006-54 (or its successor), section 9, for 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