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2011 Taxact Online

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2011 Taxact Online

2011 taxact online Publication 514 - Main Content Table of Contents Choosing To Take Credit or DeductionChoice Applies to All Qualified Foreign Taxes Making or Changing Your Choice Why Choose the Credit?Credit for Taxes Paid or Accrued Foreign Currency and Exchange Rates Foreign Tax Redetermination Who Can Take the Credit?U. 2011 taxact online S. 2011 taxact online Citizens Resident Aliens Nonresident Aliens What Foreign Taxes Qualify for the Credit?Tax Must Be Imposed on You You Must Have Paid or Accrued the Tax Tax Must Be the Legal and Actual Foreign Tax Liability Tax Must Be an Income Tax (or Tax in Lieu of Income Tax) Foreign Taxes for Which You Cannot Take a CreditTaxes on Excluded Income Taxes for Which You Can Only Take an Itemized Deduction Taxes on Foreign Mineral Income Taxes From International Boycott Operations Taxes on Combined Foreign Oil and Gas Income Taxes of U. 2011 taxact online S. 2011 taxact online Persons Controlling Foreign Corporations and Partnerships Taxes Related to a Foreign Tax Credit Splitting Event How To Figure the CreditLimit on the Credit Separate Limit Income Allocation of Foreign Taxes Foreign Taxes From a Partnership or an S Corporation Figuring the Limit Qualified Dividends Capital Gains and Losses Allocation of Foreign and U. 2011 taxact online S. 2011 taxact online Losses Tax Treaties Carryback and CarryoverTime Limit on Tax Assessment Claim for Refund Taxes All Credited or All Deducted Married Couples How To Claim the CreditForm 1116 Records To Keep Simple Example — Filled-In Form 1116Part I—Taxable Income or Loss From Sources Outside the United States (for Category Checked Above) Part II—Foreign Taxes Paid or Accrued Part III—Figuring the Credit Part IV—Summary of Credits From Separate Parts III Comprehensive Example — Filled-In Form 1116Foreign earned income. 2011 taxact online Employee business expenses. 2011 taxact online Forms 1116 Computation of Taxable Income Part I—Taxable Income or Loss From Sources Outside the United States (for Category Checked Above) Part II—Foreign Taxes Paid or Accrued Part III—Figuring the Credit Part IV—Summary of Credits From Separate Parts III Unused Foreign Taxes How To Get Tax HelpLow Income Taxpayer Clinics Choosing To Take Credit or Deduction You can choose whether to take the amount of any qualified foreign taxes paid or accrued during the year as a foreign tax credit or as an itemized deduction. 2011 taxact online You can change your choice for each year's taxes. 2011 taxact online To choose the foreign tax credit, in most cases you must complete Form 1116 and attach it to your U. 2011 taxact online S. 2011 taxact online tax return. 2011 taxact online However, you may qualify for the exception that allows you to claim the foreign tax credit without using Form 1116. 2011 taxact online See How To Figure the Credit , later. 2011 taxact online To choose to claim the taxes as an itemized deduction, use Schedule A (Form 1040), Itemized Deductions. 2011 taxact online Figure your tax both ways—claiming the credit and claiming the deduction. 2011 taxact online Then fill out your return the way that benefits you more. 2011 taxact online See Why Choose the Credit, later. 2011 taxact online Choice Applies to All Qualified Foreign Taxes As a general rule, you must choose to take either a credit or a deduction for all qualified foreign taxes. 2011 taxact online If you choose to take a credit for qualified foreign taxes, you must take the credit for all of them. 2011 taxact online You cannot deduct any of them. 2011 taxact online Conversely, if you choose to deduct qualified foreign taxes, you must deduct all of them. 2011 taxact online You cannot take a credit for any of them. 2011 taxact online See What Foreign Taxes Qualify for the Credit , later, for the meaning of qualified foreign taxes. 2011 taxact online There are exceptions to this general rule, which are described next. 2011 taxact online Exceptions for foreign taxes not allowed as a credit. 2011 taxact online   Even if you claim a credit for other foreign taxes, you can deduct any foreign tax that is not allowed as a credit if: You paid the tax to a country for which a credit is not allowed because it provides support for acts of international terrorism, or because the United States does not have or does not conduct diplomatic relations with it or recognize its government and that government is not otherwise eligible to purchase defense articles or services under the Arms Export Control Act, You paid withholding tax on dividends from foreign corporations whose stock you did not hold for the required period of time, You paid withholding tax on income or gain (other than dividends) from property you did not hold for the required period of time, You paid withholding tax on income or gain to the extent you had to make related payments on positions in substantially similar or related property, You participated in or cooperated with an international boycott, You paid taxes in connection with the purchase or sale of oil or gas, or You paid or accrued taxes on income or gain in connection with a covered asset acquisition. 2011 taxact online Covered asset acquisitions include certain acquisitions that result in a stepped-up basis for U. 2011 taxact online S. 2011 taxact online tax purposes. 2011 taxact online For more information, see Internal Revenue Code section 901(m). 2011 taxact online The IRS intends to issue guidance that will explain this provision in greater detail. 2011 taxact online   For more information on these items, see Taxes for Which You Can Only Take an Itemized Deduction , later, under Foreign Taxes for Which You Cannot Take a Credit. 2011 taxact online Foreign taxes that are not income taxes. 2011 taxact online   In most cases, only foreign income taxes qualify for the foreign tax credit. 2011 taxact online Other taxes, such as foreign real and personal property taxes, do not qualify. 2011 taxact online But you may be able to deduct these other taxes even if you claim the foreign tax credit for foreign income taxes. 2011 taxact online   In most cases, you can deduct these other taxes only if they are expenses incurred in a trade or business or in the production of income. 2011 taxact online However, you can deduct foreign real property taxes that are not trade or business expenses as an itemized deduction on Schedule A (Form 1040). 2011 taxact online Carrybacks and carryovers. 2011 taxact online   There is a limit on the credit you can claim in a tax year. 2011 taxact online If your qualified foreign taxes exceed the credit limit, you may be able to carry over or carry back the excess to another tax year. 2011 taxact online If you deduct qualified foreign taxes in a tax year, you cannot use a carryback or carryover in that year. 2011 taxact online That is because you cannot take both a deduction and a credit for qualified foreign taxes in the same tax year. 2011 taxact online   For more information on the limit, see How To Figure the Credit , later. 2011 taxact online For more information on carrybacks and carryovers, see Carryback and Carryover , later. 2011 taxact online Making or Changing Your Choice You can make or change your choice to claim a deduction or credit at any time during the period within 10 years from the regular due date for filing the return (without regard to any extension of time to file) for the tax year in which the taxes were actually paid or accrued. 2011 taxact online You make or change your choice on your tax return (or on an amended return) for the year your choice is to be effective. 2011 taxact online Example. 2011 taxact online You paid foreign taxes for the last 13 years and chose to deduct them on your U. 2011 taxact online S. 2011 taxact online income tax returns. 2011 taxact online You were timely in both filing your returns and paying your U. 2011 taxact online S. 2011 taxact online tax liability. 2011 taxact online In February 2013, you file an amended return for tax year 2002 choosing to take a credit for your 2002 foreign taxes because you now realize that the credit is more advantageous than the deduction for that year. 2011 taxact online Because the regular due date of your 2002 return was April 15, 2003, this choice is timely (within 10 years). 2011 taxact online Because there is a limit on the credit for your 2002 foreign tax, you have unused 2002 foreign taxes. 2011 taxact online Ordinarily, you first carry back unused foreign taxes arising in 2002 to, and claim them as a credit in, the 2 preceding tax years. 2011 taxact online If you are unable to claim all of them in those 2 years, you carry them forward to the 10 years following the year in which they arose. 2011 taxact online Because you originally chose to deduct your foreign taxes and the 10-year period for changing the choice for 2000 and 2001 has passed, you cannot change your choice and carry the unused 2002 foreign taxes back to tax years 2000 and 2001. 2011 taxact online Because the 10-year periods for changing the choice have not passed for your 2003 through 2012 income tax returns, you can still choose to claim the credit for those years and carry forward any unused 2002 foreign taxes. 2011 taxact online However, you must reduce the unused 2002 foreign taxes that you carry forward by the amount that would have been allowed as a carryback if you had timely carried back the foreign tax to tax years 2000 and 2001. 2011 taxact online You cannot take a credit or a deduction for foreign taxes paid on income you exclude under the foreign earned income exclusion or the foreign housing exclusion. 2011 taxact online See Foreign Earned Income and Housing Exclusions under Foreign Taxes for Which You Cannot Take a Credit, later. 2011 taxact online Why Choose the Credit? The foreign tax credit is intended to relieve you of a double tax burden when your foreign source income is taxed by both the United States and the foreign country. 2011 taxact online In most cases, if the foreign tax rate is higher than the U. 2011 taxact online S. 2011 taxact online rate, there will be no U. 2011 taxact online S. 2011 taxact online tax on the foreign income. 2011 taxact online If the foreign tax rate is lower than the U. 2011 taxact online S. 2011 taxact online rate, U. 2011 taxact online S. 2011 taxact online tax on the foreign income will be limited to the difference between the rates. 2011 taxact online The foreign tax credit can only reduce U. 2011 taxact online S. 2011 taxact online taxes on foreign source income; it cannot reduce U. 2011 taxact online S. 2011 taxact online taxes on U. 2011 taxact online S. 2011 taxact online source income. 2011 taxact online Although no one rule covers all situations, in most cases it is better to take a credit for qualified foreign taxes than to deduct them as an itemized deduction. 2011 taxact online This is because: A credit reduces your actual U. 2011 taxact online S. 2011 taxact online income tax on a dollar-for-dollar basis, while a deduction reduces only your income subject to tax, You can choose to take the foreign tax credit even if you do not itemize your deductions. 2011 taxact online You then are allowed the standard deduction in addition to the credit, and If you choose to take the foreign tax credit, and the taxes paid or accrued exceed the credit limit for the tax year, you may be able to carry over or carry back the excess to another tax year. 2011 taxact online (See Limit on credit under How To Figure the Credit, later. 2011 taxact online ) Example 1. 2011 taxact online For 2013, you and your spouse have adjusted gross income of $80,300, including $20,000 of dividend income from foreign sources. 2011 taxact online None of the dividends are qualified dividends. 2011 taxact online You file a joint return and can claim two $3,900 exemptions. 2011 taxact online You had to pay $2,000 in foreign income taxes on the dividend income. 2011 taxact online If you take the foreign taxes as an itemized deduction, your total itemized deductions are $15,000. 2011 taxact online Your taxable income then is $57,500 and your tax is $7,736. 2011 taxact online If you take the credit instead, your itemized deductions are only $13,000. 2011 taxact online Your taxable income then is $59,500 and your tax before the credit is $8,036. 2011 taxact online After the credit, however, your tax is only $6,036. 2011 taxact online Therefore, your tax is $1,700 lower ($7,736 − $6,036) by taking the credit. 2011 taxact online Example 2. 2011 taxact online In 2013, you receive investment income of $5,000 from a foreign country, which imposes a tax of $1,500 on that income. 2011 taxact online You report on your U. 2011 taxact online S. 2011 taxact online return this income as well as $56,000 of U. 2011 taxact online S. 2011 taxact online source wages and an allowable $49,000 partnership loss from a U. 2011 taxact online S. 2011 taxact online partnership. 2011 taxact online Your share of the partnership's gross income is $25,000 and your share of its expenses is $74,000. 2011 taxact online You are single, entitled to one $3,900 exemption, and have other itemized deductions of $6,850. 2011 taxact online If you deduct the foreign tax on your U. 2011 taxact online S. 2011 taxact online return, your taxable income is a negative $250 ($5,000 + $56,000 − $49,000 − $1,500 − $6,850 − $3,900) and your tax is $0. 2011 taxact online If you take the credit instead, your taxable income is $1,250 ($5,000 + $56,000 − $49,000 − $3,900 − $6,850) and your tax before the credit is $126. 2011 taxact online You can take a credit of only $113 because of limits discussed later. 2011 taxact online Your tax after the credit is $13 ($126 − $113), which is $13 more than if you deduct the foreign tax. 2011 taxact online If you choose the credit, you will have unused foreign taxes of $1,387 ($1,500 − $113). 2011 taxact online When deciding whether to take the credit or the deduction this year, you will need to consider whether you can benefit from a carryback or carryover of that unused foreign tax. 2011 taxact online Credit for Taxes Paid or Accrued You can claim the credit for a qualified foreign tax in the tax year in which you pay it or accrue it, depending on your method of accounting. 2011 taxact online “Tax year” refers to the tax year for which your U. 2011 taxact online S. 2011 taxact online return is filed, not the tax year for which your foreign return is filed. 2011 taxact online Accrual method of accounting. 2011 taxact online   If you use an accrual method of accounting, you can claim the credit only in the year in which you accrue the tax. 2011 taxact online You are using an accrual method of accounting if you report income when you earn it, rather than when you receive it, and you deduct your expenses when you incur them, rather than when you pay them. 2011 taxact online   In most cases, foreign taxes accrue when all the events have taken place that fix the amount of the tax and your liability to pay it. 2011 taxact online Generally, this occurs on the last day of the tax year for which your foreign return is filed. 2011 taxact online Contesting your foreign tax liability. 2011 taxact online   If you are contesting your foreign tax liability, you cannot accrue it and take a credit until the amount of foreign tax due is finally determined. 2011 taxact online However, if you choose to pay the tax liability you are contesting, you can take a credit for the amount you pay before a final determination of foreign tax liability is made. 2011 taxact online Once your liability is determined, the foreign tax credit is allowable for the year to which the foreign tax relates. 2011 taxact online If the amount of foreign taxes taken as a credit differs from the final foreign tax liability, you may have to adjust the credit, as discussed later under Foreign Tax Redetermination . 2011 taxact online You may have to post a bond. 2011 taxact online   If you claim a credit for taxes accrued but not paid, you may have to post an income tax bond to guarantee your payment of any tax due in the event the amount of foreign tax paid differs from the amount claimed. 2011 taxact online   The IRS can request this bond at any time without regard to the Time Limit on Tax Assessment discussed later under Carryback and Carryover. 2011 taxact online Cash method of accounting. 2011 taxact online   If you use the cash method of accounting, you can choose to take the credit either in the year you pay the tax or in the year you accrue it. 2011 taxact online You are using the cash method of accounting if you report income in the year you actually or constructively receive it, and deduct expenses in the year you pay them. 2011 taxact online Choosing to take credit in the year taxes accrue. 2011 taxact online   Even if you use the cash method of accounting, you can choose to take a credit for foreign taxes in the year they accrue. 2011 taxact online You make the choice by checking the box in Part II of Form 1116. 2011 taxact online Once you make that choice, you must follow it in all later years and take a credit for foreign taxes in the year they accrue. 2011 taxact online   In addition, the choice to take the credit when foreign taxes accrue applies to all foreign taxes qualifying for the credit. 2011 taxact online You cannot take a credit for some foreign taxes when paid and take a credit for others when accrued. 2011 taxact online   If you make the choice to take the credit when foreign taxes accrue and pay them in a later year, you cannot claim a deduction for any part of the previously accrued taxes. 2011 taxact online Credit based on taxes paid in earlier year. 2011 taxact online   If, in earlier years, you took the credit based on taxes paid, and this year you choose to take the credit based on taxes accrued, you may be able to take the credit this year for taxes from more than one year. 2011 taxact online Example. 2011 taxact online Last year you took the credit based on taxes paid. 2011 taxact online This year you chose to take the credit based on taxes accrued. 2011 taxact online During the year you paid foreign income taxes owed for last year. 2011 taxact online You also accrued foreign income taxes for this year that you did not pay by the end of the year. 2011 taxact online You can base the credit on your return for this year on both last year's taxes that you paid and this year's taxes that you accrued. 2011 taxact online Foreign Currency and Exchange Rates U. 2011 taxact online S. 2011 taxact online income tax is imposed on income expressed in U. 2011 taxact online S. 2011 taxact online dollars, while in most cases the foreign tax is imposed on income expressed in foreign currency. 2011 taxact online Therefore, fluctuations in the value of the foreign currency relative to the U. 2011 taxact online S. 2011 taxact online dollar may affect the foreign tax credit. 2011 taxact online Translating foreign currency into U. 2011 taxact online S. 2011 taxact online dollars. 2011 taxact online   If you receive all or part of your income or pay some or all of your expenses in foreign currency, you must translate the foreign currency into U. 2011 taxact online S. 2011 taxact online dollars. 2011 taxact online How and when you do this depends on your functional currency. 2011 taxact online In most cases, your functional currency is the U. 2011 taxact online S. 2011 taxact online dollar unless you are required to use the currency of a foreign country. 2011 taxact online   You must make all federal income tax determinations in your functional currency. 2011 taxact online The U. 2011 taxact online S. 2011 taxact online dollar is the functional currency for all taxpayers except some qualified business units. 2011 taxact online A qualified business unit is a separate and clearly identified unit of a trade or business that maintains separate books and records. 2011 taxact online Unless you are self-employed, your functional currency is the U. 2011 taxact online S. 2011 taxact online dollar. 2011 taxact online   Even if you are self-employed and have a qualified business unit, your functional currency is the U. 2011 taxact online S. 2011 taxact online dollar if any of the following apply. 2011 taxact online You conduct the business primarily in dollars. 2011 taxact online The principal place of business is located in the United States. 2011 taxact online You choose to or are required to use the dollar as your functional currency. 2011 taxact online The business books and records are not kept in the currency of the economic environment in which a significant part of the business activities is conducted. 2011 taxact online   If your functional currency is the U. 2011 taxact online S. 2011 taxact online dollar, you must immediately translate into dollars all items of income, expense, etc. 2011 taxact online , that you receive, pay, or accrue in a foreign currency and that will affect computation of your income tax. 2011 taxact online If there is more than one exchange rate, use the one that most properly reflects your income. 2011 taxact online In most cases, you can get exchange rates from banks and U. 2011 taxact online S. 2011 taxact online Embassies. 2011 taxact online   If your functional currency is not the U. 2011 taxact online S. 2011 taxact online dollar, make all income tax determinations in your functional currency. 2011 taxact online At the end of the year, translate the results, such as income or loss, into U. 2011 taxact online S. 2011 taxact online dollars to report on your income tax return. 2011 taxact online    For more information, write to: Internal Revenue Service International Section Philadelphia, PA 19255-0725 Rate of exchange for foreign taxes paid. 2011 taxact online   Use the rate of exchange in effect on the date you paid the foreign taxes to the foreign country unless you meet the exception discussed next. 2011 taxact online If your tax was withheld in foreign currency, use the rate of exchange in effect for the date on which the tax was withheld. 2011 taxact online If you make foreign estimated tax payments, you use the rate of exchange in effect for the date on which you made the estimated tax payment. 2011 taxact online   The exchange rate rules discussed here apply even if the foreign taxes are paid or accrued with respect to a foreign tax credit splitting event (discussed later). 2011 taxact online Exception. 2011 taxact online   If you claim the credit for foreign taxes on an accrual basis, in most cases you must use the average exchange rate for the tax year to which the taxes relate. 2011 taxact online This rule applies to accrued taxes relating to tax years beginning after 1997 and only under the following conditions. 2011 taxact online The foreign taxes are paid on or after the first day of the tax year to which they relate. 2011 taxact online The foreign taxes are paid not later than 2 years after the close of the tax year to which they relate. 2011 taxact online The foreign tax liability is not denominated in an inflationary currency (defined in the Form 1116 instructions). 2011 taxact online (This condition applies to taxes paid or accrued in tax years beginning after November 6, 2007. 2011 taxact online )   For all other foreign taxes, you should use the exchange rate in effect on the date you paid them. 2011 taxact online Election to use exchange rate on date paid. 2011 taxact online   If you have accrued foreign taxes that you are otherwise required to convert using the average exchange rate, you may elect to use the exchange rate in effect on the date the foreign taxes are paid if the taxes are denominated in a nonfunctional foreign currency. 2011 taxact online If any of the accrued taxes are unpaid, you must translate them into U. 2011 taxact online S. 2011 taxact online dollars using the exchange rate on the last day of the U. 2011 taxact online S. 2011 taxact online tax year to which those taxes relate. 2011 taxact online You may make the election for all nonfunctional currency foreign income taxes or only those nonfunctional currency foreign income taxes that are attributable to qualified business units with a U. 2011 taxact online S. 2011 taxact online dollar functional currency. 2011 taxact online Once made, the election applies to the tax year for which made and all subsequent tax years unless revoked with the consent of the IRS. 2011 taxact online The election is available for tax years beginning after 2004. 2011 taxact online It must be made by the due date (including extensions) for filing the tax return for the first tax year to which the election applies. 2011 taxact online Make the election by attaching a statement to the applicable tax return. 2011 taxact online The statement must identify whether the election is made for all foreign taxes or only for foreign taxes attributable to qualified business units with a U. 2011 taxact online S. 2011 taxact online dollar functional currency. 2011 taxact online Foreign Tax Redetermination A foreign tax redetermination is any change in your foreign tax liability that may affect your U. 2011 taxact online S. 2011 taxact online foreign tax credit claimed. 2011 taxact online The year in which to claim the credit remains the year to which the foreign taxes paid or accrued relate, even if the change in foreign tax liability occurs in a later year. 2011 taxact online If a foreign tax redetermination occurs, a redetermination of your U. 2011 taxact online S. 2011 taxact online tax liability is required if any of the following conditions apply. 2011 taxact online The accrued taxes when paid differ from the amounts claimed as a credit. 2011 taxact online The accrued taxes you claimed as a credit in one tax year are not paid within 2 years after the end of that tax year. 2011 taxact online If this applies to you, you must reduce the credit previously claimed by the amount of the unpaid taxes. 2011 taxact online You will not be allowed a credit for the unpaid taxes until you pay them. 2011 taxact online When you pay the accrued taxes, a new foreign tax redetermination occurs and you must translate the taxes into U. 2011 taxact online S. 2011 taxact online dollars using the exchange rate as of the date they were paid. 2011 taxact online The foreign tax credit is allowed for the year to which the foreign tax relates. 2011 taxact online See Rate of exchange for foreign taxes paid , earlier, under Foreign Currency and Exchange Rates. 2011 taxact online The foreign taxes you paid are refunded in whole or in part. 2011 taxact online For taxes taken into account when accrued but translated into dollars on the date of payment, the dollar value of the accrued tax differs from the dollar value of the tax paid because of fluctuations in the exchange rate between the date of accrual and the date of payment. 2011 taxact online However, no redetermination is required if the change in foreign tax liability for each foreign country is solely attributable to exchange rate fluctuations and is less than the smaller of: $10,000, or 2% of the total dollar amount of the foreign tax initially accrued for that foreign country for the U. 2011 taxact online S. 2011 taxact online tax year. 2011 taxact online In this case, you must adjust your U. 2011 taxact online S. 2011 taxact online tax in the tax year in which the accrued foreign taxes are paid. 2011 taxact online Notice to the Internal Revenue Service (IRS) of Redetermination You are required to notify the IRS about a foreign tax credit redetermination that affects your U. 2011 taxact online S. 2011 taxact online tax liability for each tax year affected by the redetermination. 2011 taxact online In most cases, you must file Form 1040X, Amended U. 2011 taxact online S. 2011 taxact online Individual Income Tax Return, with a revised Form 1116 and a statement that contains information sufficient for the IRS to redetermine your U. 2011 taxact online S. 2011 taxact online tax liability for the year or years affected. 2011 taxact online See Contents of statement , later. 2011 taxact online You are not required to attach Form 1116 for a tax year affected by a redetermination if: The amount of your creditable taxes paid or accrued during the tax year is not more than $300 ($600 if married filing a joint return) as a result of the foreign tax redetermination, and You meet the requirements listed under Exemption from foreign tax credit limit under How To Figure the Credit, later. 2011 taxact online There are other exceptions to this requirement. 2011 taxact online They are discussed later under Due date of notification to IRS . 2011 taxact online Contents of statement. 2011 taxact online   The statement must include all of the following. 2011 taxact online Your name, address, and taxpayer identification number. 2011 taxact online The tax year or years that are affected by the foreign tax redetermination. 2011 taxact online The date or dates the foreign taxes were accrued, if applicable. 2011 taxact online The date or dates the foreign taxes were paid. 2011 taxact online The amount of foreign taxes paid or accrued on each date (in foreign currency) and the exchange rate used to translate each amount. 2011 taxact online Information sufficient to determine any interest due from or owing to you, including the amount of any interest paid to you by the foreign government and the dates received. 2011 taxact online   In the case of any foreign taxes that were not paid before the date two years after the close of the tax year to which those taxes relate, you must provide the amount of those taxes in foreign currency and the exchange rate that was used to translate that amount when originally claimed as a credit. 2011 taxact online   If any foreign tax was refunded in whole or in part, you must provide the date and amount (in foreign currency) of each refund, the exchange rate that was used to translate each amount when originally claimed as a credit, and the exchange rate for the date the refund was received (for purposes of computing foreign currency gain or loss under Internal Revenue Code section 988). 2011 taxact online Due date of notification to IRS. 2011 taxact online   If you pay less foreign tax than you originally claimed a credit for, in most cases you must file a notification by the due date (with extensions) of your original return for your tax year in which the foreign tax redetermination occurred. 2011 taxact online There is no limit on the time the IRS has to redetermine and assess the correct U. 2011 taxact online S. 2011 taxact online tax due. 2011 taxact online If you pay more foreign tax than you originally claimed a credit for, you have 10 years to file a claim for refund of U. 2011 taxact online S. 2011 taxact online taxes. 2011 taxact online See Time Limit on Refund Claims , later. 2011 taxact online   Exceptions to this due date are explained in the next two paragraphs. 2011 taxact online Multiple redeterminations of U. 2011 taxact online S. 2011 taxact online tax liability for same tax year. 2011 taxact online   Where more than one foreign tax redetermination requires a redetermination of U. 2011 taxact online S. 2011 taxact online tax liability for the same tax year and those redeterminations occur in the same tax year or within two consecutive tax years, you can file for that tax year one notification (Form 1040X with a Form 1116 and the required statement) that reflects all those tax redeterminations. 2011 taxact online If you choose to file one notification, the due date for that notification is the due date of the original return (with extensions) for the year in which the first foreign tax redetermination that reduced your foreign tax liability occurred. 2011 taxact online However, foreign tax redeterminations with respect to the tax year for which a redetermination of U. 2011 taxact online S. 2011 taxact online tax liability is required may occur after the due date for providing that notification. 2011 taxact online In this situation, you may have to file more than one Form 1040X for that tax year. 2011 taxact online Additional U. 2011 taxact online S. 2011 taxact online tax due eliminated by foreign tax credit carryback or carryover. 2011 taxact online   If a foreign tax redetermination requires a redetermination of U. 2011 taxact online S. 2011 taxact online tax liability that would otherwise result in an additional amount of U. 2011 taxact online S. 2011 taxact online tax due, but the additional tax is eliminated by a carryback or carryover of an unused foreign tax, you do not have to amend your tax return for the year affected by the redetermination. 2011 taxact online Instead, you can notify the IRS by attaching a statement to the original return for the tax year in which the foreign tax redetermination occurred. 2011 taxact online You must file the statement by the due date (with extensions) of that return. 2011 taxact online The statement must show the amount of the unused foreign taxes paid or accrued and a detailed schedule showing the computation of the carryback or carryover (including the amounts carried back or over to the year for which a redetermination on U. 2011 taxact online S. 2011 taxact online tax liability is required). 2011 taxact online Failure-to-notify penalty. 2011 taxact online   If you fail to notify the IRS of a foreign tax redetermination and cannot show reasonable cause for the failure, you may have to pay a penalty. 2011 taxact online   For each month, or part of a month, that the failure continues, you pay a penalty of 5% of the tax due resulting from a redetermination of your U. 2011 taxact online S. 2011 taxact online tax. 2011 taxact online This penalty cannot be more than 25% of the tax due. 2011 taxact online Foreign tax refund. 2011 taxact online   If you receive a foreign tax refund without interest from the foreign government, you will not have to pay interest on the amount of tax due resulting from the adjustment to your U. 2011 taxact online S. 2011 taxact online tax for the time before the date of the refund. 2011 taxact online   However, if you receive a foreign tax refund with interest, you must pay interest to the IRS up to the amount of the interest paid to you by the foreign government. 2011 taxact online The interest you must pay cannot be more than the interest you would have had to pay on taxes that were unpaid for any other reason for the same period. 2011 taxact online Interest also is owed from the time you receive a refund until you pay the additional tax due. 2011 taxact online Foreign tax imposed on foreign refund. 2011 taxact online   If your foreign tax refund is taxed by the foreign country, you cannot take a separate credit or deduction for this additional foreign tax. 2011 taxact online However, when you refigure the foreign tax credit taken for the original foreign tax, reduce the amount of the refund by the foreign tax paid on the refund. 2011 taxact online Example. 2011 taxact online You paid a foreign income tax of $3,000 in 2011, and received a foreign tax refund of $500 in 2013 on which a foreign tax of $100 was imposed. 2011 taxact online When you refigure your credit for 2011, you must reduce the $3,000 you paid by $400. 2011 taxact online Time Limit on Refund Claims You have 10 years to file a claim for refund of U. 2011 taxact online S. 2011 taxact online tax if you find that you paid or accrued a larger foreign tax than you claimed a credit for. 2011 taxact online The 10-year period begins the day after the regular due date for filing the return (without extensions) for the year in which the taxes were actually paid or accrued. 2011 taxact online You have 10 years to file your claim regardless of whether you claim the credit for taxes paid or taxes accrued. 2011 taxact online The 10-year period applies to claims for refund or credit based on: Fixing math errors in figuring qualified foreign taxes, Reporting qualified foreign taxes not originally reported on the return, or Any other change in the size of the credit (including one caused by correcting the foreign tax credit limit). 2011 taxact online The special 10-year period also applies to making or changing your choice to claim a deduction or credit for foreign taxes. 2011 taxact online See Making or Changing Your Choice discussed earlier under Choosing To Take Credit or Deduction. 2011 taxact online Who Can Take the Credit? U. 2011 taxact online S. 2011 taxact online citizens, resident aliens, and nonresident aliens who paid foreign income tax and are subject to U. 2011 taxact online S. 2011 taxact online tax on foreign source income may be able to take a foreign tax credit. 2011 taxact online U. 2011 taxact online S. 2011 taxact online Citizens If you are a U. 2011 taxact online S. 2011 taxact online citizen, you are taxed by the United States on your worldwide income wherever you live. 2011 taxact online You are normally entitled to take a credit for foreign taxes you pay or accrue. 2011 taxact online Resident Aliens If you are a resident alien of the United States, you can take a credit for foreign taxes subject to the same general rules as U. 2011 taxact online S. 2011 taxact online citizens. 2011 taxact online If you are a bona fide resident of Puerto Rico for the entire tax year, you also come under the same rules. 2011 taxact online Usually, you can take a credit only for those foreign taxes imposed on income you actually or constructively received while you had resident alien status. 2011 taxact online For information on alien status, see Publication 519. 2011 taxact online Nonresident Aliens If you are a nonresident alien, you cannot take the credit in most cases. 2011 taxact online However, you may be able to take the credit if: You were a bona fide resident of Puerto Rico during your entire tax year, or You pay or accrue tax to a foreign country or U. 2011 taxact online S. 2011 taxact online possession on income from foreign sources that is effectively connected with a trade or business in the United States. 2011 taxact online But if you must pay tax to a foreign country or U. 2011 taxact online S. 2011 taxact online possession on income from U. 2011 taxact online S. 2011 taxact online sources only because you are a citizen or a resident of that country or U. 2011 taxact online S. 2011 taxact online possession, do not use that tax in figuring the amount of your credit. 2011 taxact online For information on alien status and effectively connected income, see Publication 519. 2011 taxact online What Foreign Taxes Qualify for the Credit? In most cases, the following four tests must be met for any foreign tax to qualify for the credit. 2011 taxact online The tax must be imposed on you. 2011 taxact online You must have paid or accrued the tax. 2011 taxact online The tax must be the legal and actual foreign tax liability. 2011 taxact online The tax must be an income tax (or a tax in lieu of an income tax). 2011 taxact online Certain foreign taxes do not qualify for the credit even if the four tests are met. 2011 taxact online See Foreign Taxes for Which You Cannot Take a Credit, later. 2011 taxact online Tax Must Be Imposed on You You can claim a credit only for foreign taxes that are imposed on you by a foreign country or U. 2011 taxact online S. 2011 taxact online possession. 2011 taxact online For example, a tax that is deducted from your wages is considered to be imposed on you. 2011 taxact online You cannot shift the right to claim the credit by contract or other means. 2011 taxact online Foreign country. 2011 taxact online   A foreign country includes any foreign state and its political subdivisions. 2011 taxact online Income, war profits, and excess profits taxes paid or accrued to a foreign city or province qualify for the foreign tax credit. 2011 taxact online U. 2011 taxact online S. 2011 taxact online possessions. 2011 taxact online   For foreign tax credit purposes, all qualified taxes paid to U. 2011 taxact online S. 2011 taxact online possessions are considered foreign taxes. 2011 taxact online For this purpose, U. 2011 taxact online S. 2011 taxact online possessions include Puerto Rico and American Samoa. 2011 taxact online   When the term “foreign country” is used in this publication, it includes U. 2011 taxact online S. 2011 taxact online possessions unless otherwise stated. 2011 taxact online You Must Have Paid or Accrued the Tax In most cases, you can claim the credit only if you paid or accrued the foreign tax to a foreign country or U. 2011 taxact online S. 2011 taxact online possession. 2011 taxact online However, the paragraphs that follow describe some instances in which you can claim the credit even if you did not directly pay or accrue the tax yourself. 2011 taxact online Joint return. 2011 taxact online   If you file a joint return, you can claim the credit based on the total foreign income taxes paid or accrued by you and your spouse. 2011 taxact online Combined income. 2011 taxact online   If foreign tax is imposed on the combined income of two or more persons (for example, spouses), the tax is allocated among, and considered paid by, these persons on a pro rata basis in proportion to each person's portion of the combined income, as determined under foreign law and Regulations section 1. 2011 taxact online 901-2(f)(3)(iii). 2011 taxact online Combined income with respect to each foreign tax that is imposed on a combined basis (and combined income subject to tax exemption or preferential tax rates) is computed separately, and the tax on that combined income is allocated separately. 2011 taxact online   These rules apply to foreign taxes paid or accrued in tax years beginning after February 14, 2012. 2011 taxact online However, you can choose to apply the new rules to foreign taxes paid or accrued in tax years beginning after December 31, 2010, and before February 15, 2012. 2011 taxact online For more details, see paragraphs (f) and (h) of Regulations section 1. 2011 taxact online 901-2. 2011 taxact online For similar rules applicable to prior tax years, see Regulations section 1. 2011 taxact online 901-2 (revised as of April 1, 2011). 2011 taxact online Example. 2011 taxact online You and your spouse reside in Country X, which imposes income tax on your combined incomes. 2011 taxact online Both of you use the “u” as your functional currency. 2011 taxact online Country X apportions tax based on income. 2011 taxact online You had income of 30,000u and your spouse had income of 20,000u. 2011 taxact online Your filing status on your U. 2011 taxact online S. 2011 taxact online income tax return is married filing separately. 2011 taxact online You can claim only 60% (30,000u/50,000u) of the foreign taxes imposed on your income on your U. 2011 taxact online S income tax return. 2011 taxact online Your spouse can claim only 40% (20,000u/50,000u). 2011 taxact online Partner or S corporation shareholder. 2011 taxact online   If you are a member of a partnership, or a shareholder in an S corporation, you can claim the credit based on your proportionate share of the foreign income taxes paid or accrued by the partnership or the S corporation. 2011 taxact online These amounts will be shown on the Schedule K-1 you receive from the partnership or S corporation. 2011 taxact online However, if you are a shareholder in an S corporation that in turn owns stock in a foreign corporation, you cannot claim a credit for your share of foreign taxes paid by the foreign corporation. 2011 taxact online Beneficiary. 2011 taxact online   If you are a beneficiary of an estate or trust, you may be able to claim the credit based on your proportionate share of foreign income taxes paid or accrued by the estate or trust. 2011 taxact online This amount will be shown on the Schedule K-1 you receive from the estate or trust. 2011 taxact online However, you must show that the tax was imposed on income of the estate and not on income received by the decedent. 2011 taxact online Mutual fund shareholder. 2011 taxact online   If you are a shareholder of a mutual fund or other regulated investment company (RIC), you may be able to claim the credit based on your share of foreign income taxes paid by the fund if it chooses to pass the credit on to its shareholders. 2011 taxact online You should receive from the mutual fund or other RIC a Form 1099-DIV, or similar statement, showing your share of the foreign income, and your share of the foreign taxes paid. 2011 taxact online If you do not receive this information, you will need to contact the fund. 2011 taxact online Controlled foreign corporation shareholder. 2011 taxact online   If you are a shareholder of a controlled foreign corporation and choose to be taxed at corporate rates on the amount you must include in gross income from that corporation, you can claim the credit based on your share of foreign taxes paid or accrued by the controlled foreign corporation. 2011 taxact online If you make this election, you must claim the credit by filing Form 1118, Foreign Tax Credit—Corporations. 2011 taxact online Controlled foreign corporation. 2011 taxact online   A controlled foreign corporation is a foreign corporation in which U. 2011 taxact online S. 2011 taxact online shareholders own more than 50% of the voting power or value of the stock. 2011 taxact online You are considered a U. 2011 taxact online S. 2011 taxact online shareholder if you own, directly or indirectly, 10% or more of the total voting power of all classes of the foreign corporation's stock. 2011 taxact online See Internal Revenue Code sections 951(b) and 958(b) for more information. 2011 taxact online Tax Must Be the Legal and Actual Foreign Tax Liability The amount of foreign tax that qualifies is not necessarily the amount of tax withheld by the foreign country. 2011 taxact online Only the legal and actual foreign tax liability that you paid or accrued during the year qualifies for the credit. 2011 taxact online Foreign tax refund. 2011 taxact online   You cannot take a foreign tax credit for income taxes paid to a foreign country if it is reasonably certain the amount would be refunded, credited, rebated, abated, or forgiven if you made a claim. 2011 taxact online   For example, the United States has tax treaties with many countries allowing U. 2011 taxact online S. 2011 taxact online citizens and residents reductions in the rates of tax of those foreign countries. 2011 taxact online However, some treaty countries require U. 2011 taxact online S. 2011 taxact online citizens and residents to pay the tax figured without regard to the lower treaty rates and then claim a refund for the amount by which the tax actually paid is more than the amount of tax figured using the lower treaty rate. 2011 taxact online The qualified foreign tax is the amount figured using the lower treaty rate and not the amount actually paid, because the excess tax is refundable. 2011 taxact online Subsidy received. 2011 taxact online   Tax payments a foreign country returns to you in the form of a subsidy do not qualify for the foreign tax credit. 2011 taxact online This rule applies even if the subsidy is given to a person related to you, or persons who participated with you in a transaction or a related transaction. 2011 taxact online A subsidy can be provided by any means but must be determined, directly or indirectly, in relation to the amount of tax, or to the base used to figure the tax. 2011 taxact online   The term “subsidy” includes any type of benefit. 2011 taxact online Some ways of providing a subsidy are refunds, credits, deductions, payments, or discharges of obligations. 2011 taxact online Shareholder receiving refund for corporate tax in integrated system. 2011 taxact online   Under some foreign tax laws and treaties, a shareholder is considered to have paid part of the tax that is imposed on the corporation. 2011 taxact online You may be able to claim a refund of these taxes from the foreign government. 2011 taxact online You must include the refund (including any amount withheld) in your income in the year received. 2011 taxact online Any tax withheld from the refund is a qualified foreign tax. 2011 taxact online Example. 2011 taxact online You are a shareholder of a French corporation. 2011 taxact online You receive a $100 refund of the tax paid to France by the corporation on the earnings distributed to you as a dividend. 2011 taxact online The French government imposes a 15% withholding tax ($15) on the refund you received. 2011 taxact online You receive a check for $85. 2011 taxact online You include $100 in your income. 2011 taxact online The $15 of tax withheld is a qualified foreign tax. 2011 taxact online Tax Must Be an Income Tax (or Tax in Lieu of Income Tax) In most cases, only income, war profits, and excess profits taxes (income taxes) qualify for the foreign tax credit. 2011 taxact online Foreign taxes on wages, dividends, interest, and royalties qualify for the credit in most cases. 2011 taxact online Furthermore, foreign taxes on income can qualify even though they are not imposed under an income tax law if the tax is in lieu of an income, war profits, or excess profits tax. 2011 taxact online See Taxes in Lieu of Income Taxes , later. 2011 taxact online Income Tax Simply because the levy is called an income tax by the foreign taxing authority does not make it an income tax for this purpose. 2011 taxact online A foreign levy is an income tax only if it meets both of the following requirements. 2011 taxact online It is a tax; that is, you have to pay it and you get no specific economic benefit (discussed below) from paying it. 2011 taxact online The predominant character of the tax is that of an income tax in the U. 2011 taxact online S. 2011 taxact online sense. 2011 taxact online A foreign levy may meet these requirements even if the foreign tax law differs from U. 2011 taxact online S. 2011 taxact online tax law. 2011 taxact online The foreign law may include in income items that U. 2011 taxact online S. 2011 taxact online law does not include, or it may allow certain exclusions or deductions that U. 2011 taxact online S. 2011 taxact online law does not allow. 2011 taxact online Specific economic benefit. 2011 taxact online   In most cases, you get a specific economic benefit if you receive, or are considered to receive, an economic benefit from the foreign country imposing the levy, and: If there is a generally imposed income tax, the economic benefit is not available on substantially the same terms to all persons subject to the income tax, or If there is no generally imposed income tax, the economic benefit is not available on substantially the same terms to the population of the foreign country in general. 2011 taxact online   You are considered to receive a specific economic benefit if you have a business transaction with a person who receives a specific economic benefit from the foreign country and, under the terms and conditions of the transaction, you receive directly or indirectly all or part of the benefit. 2011 taxact online   However, see the exception discussed later under Pension, unemployment, and disability fund payments . 2011 taxact online Economic benefits. 2011 taxact online   Economic benefits include the following. 2011 taxact online Goods. 2011 taxact online Services. 2011 taxact online Fees or other payments. 2011 taxact online Rights to use, acquire, or extract resources, patents, or other property the foreign country owns or controls. 2011 taxact online Discharges of contractual obligations. 2011 taxact online   In most cases, the right or privilege merely to engage in business is not an economic benefit. 2011 taxact online Dual-capacity taxpayers. 2011 taxact online   If you are subject to a foreign country's levy and you also receive a specific economic benefit from that foreign country, you are a “dual-capacity taxpayer. 2011 taxact online ” As a dual-capacity taxpayer, you cannot claim a credit for any part of the foreign levy, unless you establish that the amount paid under a distinct element of the foreign levy is a tax, rather than a compulsory payment for a direct or indirect specific economic benefit. 2011 taxact online    For more information on how to establish amounts paid under separate elements of a levy, write to: Internal Revenue Service International Section Philadelphia, PA 19255-0725 Pension, unemployment, and disability fund payments. 2011 taxact online   A foreign tax imposed on an individual to pay for retirement, old-age, death, survivor, unemployment, illness, or disability benefits, or for substantially similar purposes, is not payment for a specific economic benefit if the amount of the tax does not depend on the age, life expectancy, or similar characteristics of that individual. 2011 taxact online    No deduction or credit is allowed, however, for social security taxes paid or accrued to a foreign country with which the United States has a social security agreement. 2011 taxact online For more information about these agreements, see Publication 54. 2011 taxact online Soak-up taxes. 2011 taxact online   A foreign tax is not predominantly an income tax and does not qualify for credit to the extent it is a soak-up tax. 2011 taxact online A tax is a soak-up tax to the extent that liability for it depends on the availability of a credit for it against income tax imposed by another country. 2011 taxact online This rule applies only if and to the extent that the foreign tax would not be imposed if the credit were not available. 2011 taxact online Penalties and interest. 2011 taxact online   Amounts paid to a foreign government to satisfy a liability for interest, fines, penalties, or any similar obligation are not taxes and do not qualify for the credit. 2011 taxact online Taxes not based on income. 2011 taxact online   Foreign taxes based on gross receipts or the number of units produced, rather than on realized net income, do not qualify unless they are imposed in lieu of an income tax, as discussed next. 2011 taxact online Taxes based on assets, such as property taxes, do not qualify for the credit. 2011 taxact online Taxes in Lieu of Income Taxes A tax paid or accrued to a foreign country qualifies for the credit if it is imposed in lieu of an income tax otherwise generally imposed. 2011 taxact online A foreign levy is a tax in lieu of an income tax only if: It is not payment for a specific economic benefit as discussed earlier, and The tax is imposed in place of, and not in addition to, an income tax otherwise generally imposed. 2011 taxact online A tax in lieu of an income tax does not have to be based on realized net income. 2011 taxact online A foreign tax imposed on gross income, gross receipts or sales, or the number of units produced or exported can qualify for the credit. 2011 taxact online In most cases, a soak-up tax (discussed earlier) does not qualify as a tax in lieu of an income tax. 2011 taxact online However, if the foreign country imposes a soak-up tax in lieu of an income tax, the amount that does not qualify for foreign tax credit is the lesser of the following amounts. 2011 taxact online The soak-up tax. 2011 taxact online The foreign tax you paid that is more than the amount you would have paid if you had been subject to the generally imposed income tax. 2011 taxact online Foreign Taxes for Which You Cannot Take a Credit This part discusses the foreign taxes for which you cannot take a credit. 2011 taxact online These are: Taxes on excluded income, Taxes for which you can only take an itemized deduction, Taxes on foreign mineral income, Taxes from international boycott operations, A portion of taxes on combined foreign oil and gas income, Taxes of U. 2011 taxact online S. 2011 taxact online persons controlling foreign corporations and partnerships who fail to file required information returns, and Taxes related to a foreign tax splitting event. 2011 taxact online Taxes on Excluded Income You cannot take a credit for foreign taxes paid or accrued on certain income that is excluded from U. 2011 taxact online S. 2011 taxact online gross income. 2011 taxact online Foreign Earned Income and Housing Exclusions You must reduce your foreign taxes available for the credit by the amount of those taxes paid or accrued on income that is excluded from U. 2011 taxact online S. 2011 taxact online income under the foreign earned income exclusion or the foreign housing exclusion. 2011 taxact online See Publication 54 for more information on the foreign earned income and housing exclusions. 2011 taxact online Wages completely excluded. 2011 taxact online   If your wages are completely excluded, you cannot take a credit for any of the foreign taxes paid or accrued on these wages. 2011 taxact online Wages partly excluded. 2011 taxact online   If only part of your wages is excluded, you cannot take a credit for the foreign income taxes allocable to the excluded part. 2011 taxact online You find the amount allocable to your excluded wages by multiplying the foreign tax paid or accrued on foreign earned income received or accrued during the tax year by a fraction. 2011 taxact online   The numerator of the fraction is your foreign earned income and housing amounts excluded under the foreign earned income and housing exclusions for the tax year minus otherwise deductible expenses definitely related and properly apportioned to that income. 2011 taxact online Deductible expenses do not include the foreign housing deduction. 2011 taxact online   The denominator is your total foreign earned income received or accrued during the tax year minus all deductible expenses allocable to that income (including the foreign housing deduction). 2011 taxact online If the foreign law taxes foreign earned income and some other income (for example, earned income from U. 2011 taxact online S. 2011 taxact online sources or a type of income not subject to U. 2011 taxact online S. 2011 taxact online tax), and the taxes on the other income cannot be segregated, the denominator of the fraction is the total amount of income subject to the foreign tax minus deductible expenses allocable to that income. 2011 taxact online Example. 2011 taxact online You are a U. 2011 taxact online S. 2011 taxact online citizen and a cash basis taxpayer, employed by Company X and living in Country A. 2011 taxact online Your records show the following: Foreign earned income received $125,000 Unreimbursed business travel expenses 20,000 Income tax paid to Country A 30,000 Exclusion of foreign earned  income and housing allowance 97,600     Because you can exclude part of your wages, you cannot claim a credit for part of the foreign taxes. 2011 taxact online To find that part, do the following. 2011 taxact online First, find the amount of business expenses allocable to excluded wages and therefore not deductible. 2011 taxact online To do this, multiply the otherwise deductible expenses by a fraction. 2011 taxact online That fraction is the excluded wages over your foreign earned income. 2011 taxact online   $20,000 × $97,600 $125,000 = $15,616             Next, find the numerator of the fraction by which you will multiply the foreign taxes paid. 2011 taxact online To do this, subtract business expenses allocable to excluded wages ($15,616) from excluded wages ($97,600). 2011 taxact online The result is $81,984. 2011 taxact online Then, find the denominator of the fraction by subtracting all your deductible expenses from all your foreign earned income ($125,000 − $20,000 = $105,000). 2011 taxact online Finally, multiply the foreign tax you paid by the resulting fraction. 2011 taxact online   $30,000 × $81,984  $105,000 = $23,424 The amount of Country A tax you cannot take a credit for is $23,424. 2011 taxact online Taxes on Income From Puerto Rico Exempt From U. 2011 taxact online S. 2011 taxact online Tax If you have income from Puerto Rican sources that is not taxable, you must reduce your foreign taxes paid or accrued by the taxes allocable to the exempt income. 2011 taxact online For information on figuring the reduction, see Publication 570. 2011 taxact online Possession Exclusion If you are a bona fide resident of American Samoa and exclude income from sources in American Samoa, you cannot take a credit for the taxes you pay or accrue on the excluded income. 2011 taxact online For more information on this exclusion, see Publication 570. 2011 taxact online Extraterritorial Income Exclusion You cannot take a credit for taxes you pay on qualifying foreign trade income excluded on Form 8873, Extraterritorial Income Exclusion. 2011 taxact online However, see Internal Revenue Code section 943(d) for an exception for certain withholding taxes. 2011 taxact online Taxes for Which You Can Only Take an Itemized Deduction You cannot claim a foreign tax credit for foreign income taxes paid or accrued under the following circumstances. 2011 taxact online However, you can claim an itemized deduction for these taxes. 2011 taxact online See Choosing To Take Credit or Deduction , earlier. 2011 taxact online Taxes Imposed By Sanctioned Countries (Section 901(j) Income) You cannot claim a foreign tax credit for income taxes paid or accrued to any country if the income giving rise to the tax is for a period (the sanction period) during which: The Secretary of State has designated the country as one that repeatedly provides support for acts of international terrorism, The United States has severed or does not conduct diplomatic relations with the country, or The United States does not recognize the country's government, and that government is not otherwise eligible to purchase defense articles or services under the Arms Export Control Act. 2011 taxact online The following countries meet this description for 2013. 2011 taxact online Income taxes paid or accrued to these countries in 2013 do not qualify for the credit. 2011 taxact online Cuba. 2011 taxact online Iran. 2011 taxact online Libya (but see Note later). 2011 taxact online North Korea. 2011 taxact online Sudan. 2011 taxact online Syria. 2011 taxact online Waiver of denial of the credit. 2011 taxact online   A waiver can be granted to a sanctioned country if the President of the United States determines that granting the waiver is in the national interest of the United States and will expand trade and investment opportunities for U. 2011 taxact online S. 2011 taxact online companies in the sanctioned country. 2011 taxact online The President must report to Congress his intentions to grant the waiver and his reasons for granting the waiver not less than 30 days before the date on which the waiver is granted. 2011 taxact online Note. 2011 taxact online Effective December 10, 2004, the President granted a waiver to Libya. 2011 taxact online Income taxes arising on or after this date qualify for the credit if they meet the other requirements in this publication. 2011 taxact online Limit on credit. 2011 taxact online   In figuring the foreign tax credit limit, discussed later, income from a sanctioned country is a separate category of foreign income unless a Presidential waiver is granted. 2011 taxact online You must fill out a separate Form 1116 for this income. 2011 taxact online This will prevent you from claiming a credit for foreign taxes paid or accrued to the sanctioned country. 2011 taxact online Example. 2011 taxact online You lived and worked in Iran until August, when you were transferred to Italy. 2011 taxact online You paid taxes to each country on the income earned in that country. 2011 taxact online You cannot claim a foreign tax credit for the foreign taxes paid on the income earned in Iran. 2011 taxact online Because the income earned in Iran is a separate category of foreign income, you must fill out a separate Form 1116 for that income. 2011 taxact online You cannot take a credit for taxes paid on the income earned in Iran, but that income is taxable by the United States. 2011 taxact online Figuring the credit when a sanction ends. 2011 taxact online    Table 1 lists the countries for which sanctions have ended or for which a Presidential waiver has been granted. 2011 taxact online For any of these countries, you can claim a foreign tax credit for the taxes paid or accrued to that country on the income for the period that begins after the end of the sanction period or the date the Presidential waiver was granted. 2011 taxact online Example. 2011 taxact online The sanctions against Country X ended on July 31. 2011 taxact online On August 19, you receive a distribution from a mutual fund of Country X income. 2011 taxact online The fund paid Country X income tax for you on the distribution. 2011 taxact online Because the distribution was made after the sanction ended, you may include the foreign tax paid on the distribution to compute your foreign tax credit. 2011 taxact online Amounts for the nonsanctioned period. 2011 taxact online   If a sanction period ends (or a Presidential waiver is granted) during your tax year and you are not able to determine the actual income and taxes for that period, you can allocate amounts to that period based on the number of days in the period that fall in your tax year. 2011 taxact online Multiply the income or taxes for the year by the following fraction to determine the amounts allocable to that period. 2011 taxact online   Number of nonsanctioned days in year  Number of days in year Example. 2011 taxact online You are a calendar year filer and received $20,000 of income from Country X in 2013 on which you paid tax of $4,500. 2011 taxact online Sanctions against Country X ended on July 11, 2013. 2011 taxact online You are unable to determine how much of the income or tax is for the nonsanctioned period. 2011 taxact online Because your tax year starts on January 1, and the Country X sanction ended on July 11, 2013, 173 days of your tax year are in the nonsanctioned period. 2011 taxact online You would compute the income for the nonsanctioned period as follows. 2011 taxact online 173 365 × $20,000 = $9,479             You would figure the tax for the nonsanctioned period as follows. 2011 taxact online 173 365 × $4,500 = $2,133 To figure your foreign tax credit, you would use $9,479 as the income from Country X and $2,133 as the tax. 2011 taxact online Further information. 2011 taxact online   The rules for figuring the foreign tax credit after a country's sanction period ends are more fully explained in Revenue Ruling 92-62, Cumulative Bulletin 1992-2, page 193. 2011 taxact online This Cumulative Bulletin can be found in many libraries and IRS offices. 2011 taxact online Table 1. 2011 taxact online Countries Removed From the Sanction List or Granted Presidential Waiver   Sanction Period Country Starting Date Ending Date Iraq February 1, 1991 June 27, 2004 Libya January 1, 1987 December 9, 2004* *Presidential waiver granted for qualified income taxes arising after December 9, 2004. 2011 taxact online Taxes Imposed on Certain Dividends You cannot claim a foreign tax credit for withholding tax (defined later ) on dividends paid or accrued if either of the following applies to the dividends. 2011 taxact online The dividends are on stock you held for less than 16 days during the 31-day period that begins 15 days before the ex-dividend date (defined later). 2011 taxact online The dividends are for a period or periods totaling more than 366 days on preferred stock you held for less than 46 days during the 91-day period that begins 45 days before the ex-dividend date. 2011 taxact online If the dividend is not for more than 366 days, rule (1) applies to the preferred stock. 2011 taxact online When figuring how long you held the stock, count the day you sold it, but do not count the day you acquired it or any days on which you were protected from risk of loss. 2011 taxact online Regardless of how long you held the stock, you cannot claim the credit to the extent you have an obligation under a short sale or otherwise to make payments related to the dividend for positions in substantially similar or related property. 2011 taxact online Withholding tax. 2011 taxact online   For this purpose, withholding tax includes any tax determined on a gross basis. 2011 taxact online It does not include any tax which is in the nature of a prepayment of a tax imposed on a net basis. 2011 taxact online Ex-dividend date. 2011 taxact online   The ex-dividend date is the first date following the declaration of a dividend on which the purchaser of a stock is not entitled to receive the next dividend payment. 2011 taxact online Example 1. 2011 taxact online You bought common stock from a foreign corporation on November 3. 2011 taxact online You sold the stock on November 19. 2011 taxact online You received a dividend on this stock because you owned it on the ex-dividend date of November 5. 2011 taxact online To claim the credit, you must have held the stock for at least 16 days within the 31-day period that began on October 21 (15 days before the ex-dividend date). 2011 taxact online Because you held the stock for 16 days, from November 4 until November 19, you are entitled to the credit. 2011 taxact online Example 2. 2011 taxact online The facts are the same as in Example 1 except that you sold the stock on November 14. 2011 taxact online You held the stock for only 11 days. 2011 taxact online You are not entitled to the credit. 2011 taxact online Exception. 2011 taxact online   If you are a securities dealer who actively conducts business in a foreign country, you may be able to claim a foreign tax credit for qualified taxes paid on dividends regardless of how long you held the stock or whether you were obligated to make payments for positions in substantially similar or related property. 2011 taxact online See section 901(k)(4) of the Internal Revenue Code for more information. 2011 taxact online Taxes Withheld on Income or Gain (Other Than Dividends) For income or gain (other than dividends) paid or accrued on property, you cannot claim a foreign tax credit for withholding tax (defined later): If you have not held the property for at least 16 days during the 31-day period that begins 15 days before the date on which the right to receive the payment arises, or To the extent you have to make related payments on positions in substantially similar or related property. 2011 taxact online When figuring how long you held the property, count the day you sold it, but do not count the day you acquired it or any days on which you were protected from risk of loss. 2011 taxact online Withholding tax. 2011 taxact online   For this purpose, withholding tax includes any tax determined on a gross basis. 2011 taxact online It does not include any tax which is in the nature of a prepayment of a tax imposed on a net basis. 2011 taxact online Exception for dealers. 2011 taxact online   If you are a dealer in property who actively conducts business in a foreign country, you may be able to claim a foreign tax credit for qualified taxes withheld on income or gain from that property regardless of how long you held it or whether you have to make related payments on positions in substantially similar or related property. 2011 taxact online See section 901(I)(2) of the Internal Revenue Code for more information. 2011 taxact online Covered Asset Acquisition ???You cannot take a credit for the disqualified portion of any foreign tax paid or accrued in connection with a covered asset acquisition. 2011 taxact online A covered asset acquisition includes certain acquisitions that result in a stepped-up basis for U. 2011 taxact online S. 2011 taxact online tax purposes but not for foreign tax purposes. 2011 taxact online For more information, see Internal Revenue Code section 901(m). 2011 taxact online The IRS intends to issue guidance that will explain this provision in greater detail. 2011 taxact online Taxes in Connection With the Purchase or Sale of Oil or Gas You cannot claim a foreign tax credit for taxes paid or accrued to a foreign country in connection with the purchase or sale of oil or gas extracted in that country if you do not have an economic interest in the oil or gas, and the purchase price or sales price is different from the fair market value of the oil or gas at the time of purchase or sale. 2011 taxact online Taxes on Foreign Mineral Income You must reduce any taxes paid or accrued to a foreign country or possession on mineral income from that country or possession if you were allowed a deduction for percentage depletion for any part of the mineral income. 2011 taxact online For details, see Regulations section 1. 2011 taxact online 901-3. 2011 taxact online Taxes From International Boycott Operations If you participate in or cooperate with an international boycott during the tax year, your foreign taxes resulting from boycott activities will reduce the total taxes available for credit. 2011 taxact online See the instructions for line 12 in the Form 1116 instructions to figure this reduction. 2011 taxact online In most cases, this rule does not apply to employees with wages who are working and living in boycotting countries, or to retirees with pensions who are living in these countries. 2011 taxact online List of boycotting countries. 2011 taxact online   A list of the countries which may require participation in or cooperation with an international boycott is published by the Department of the Treasury. 2011 taxact online As of November 2013, the following countries are listed. 2011 taxact online Iraq. 2011 taxact online Kuwait. 2011 taxact online Lebanon. 2011 taxact online Libya. 2011 taxact online Qatar. 2011 taxact online Saudi Arabia. 2011 taxact online Syria. 2011 taxact online United Arab Emirates. 2011 taxact online Yemen. 2011 taxact online    For information concerning changes to the list, write to: Internal Revenue Service International Section Philadelphia, PA 19255-0725 Determinations of whether the boycott rule applies. 2011 taxact online   You may request a determination from the Internal Revenue Service as to whether a particular operation constitutes participation in or cooperation with an international boycott. 2011 taxact online The procedures for obtaining a determination from the Service are outlined in Revenue Procedure 77-9 in Cumulative Bulletin 1977-1. 2011 taxact online Cumulative Bulletins are available in most IRS offices and you are welcome to read them there. 2011 taxact online Public inspection. 2011 taxact online   A determination and any related background file is open to public inspection. 2011 taxact online However, your identity and certain other information will remain confidential. 2011 taxact online Reporting requirements. 2011 taxact online   You must file a report with the IRS if you or any of the following persons have operations in or related to a boycotting country or with the government, a company, or a national of a boycotting country. 2011 taxact online A foreign corporation in which you own 10% or more of the voting power of all voting stock but only if you own the stock of the foreign corporation directly or through foreign entities. 2011 taxact online A partnership in which you are a partner. 2011 taxact online A trust you are treated as owning. 2011 taxact online Form 5713 required. 2011 taxact online   If you have to file a report, you must use Form 5713, International Boycott Report, and attach all supporting schedules. 2011 taxact online See the Instructions for Form 5713 for information on when and where to file the form. 2011 taxact online Penalty for failure to file. 2011 taxact online   If you willfully fail to make a report, in addition to other penalties, you may be fined $25,000 or imprisoned for no more than one year, or both. 2011 taxact online Taxes on Combined Foreign Oil and Gas Income You must reduce your foreign taxes by a portion of any foreign taxes imposed on combined foreign oil and gas income. 2011 taxact online The amount of the reduction is the amount by which your foreign oil and gas taxes exceed the amount of your combined foreign oil and gas income multiplied by a fraction equal to your pre-credit U. 2011 taxact online S. 2011 taxact online tax liability (Form 1040, line 44) divided by your worldwide taxable income. 2011 taxact online You may be entitled to carry over to other years taxes reduced under this rule. 2011 taxact online See Internal Revenue Code section 907(f). 2011 taxact online Combined foreign oil and gas income means the sum of foreign oil related income and foreign oil and gas extraction income. 2011 taxact online Foreign oil and gas taxes are the sum of foreign oil and gas extraction taxes and foreign oil related taxes. 2011 taxact online Taxes of U. 2011 taxact online S. 2011 taxact online Persons Controlling Foreign Corporations and Partnerships If you had control of a foreign corporation or a foreign partnership for the annual accounting period of that corporation or partnership that ended with or within your tax year, you may have to file an annual information return. 2011 taxact online If you do not file the required information return, you may have to reduce the foreign taxes that may be used for the foreign tax credit. 2011 taxact online See Penalty for not filing Form 5471 or Form 8865 , later. 2011 taxact online U. 2011 taxact online S. 2011 taxact online persons controlling foreign corporations. 2011 taxact online   If you are a U. 2011 taxact online S. 2011 taxact online citizen or resident who had control of a foreign corporation for an uninterrupted period of at least 30 days during the annual accounting period of that corporation, you may have to file an annual information return on Form 5471, Information Return of U. 2011 taxact online S. 2011 taxact online Persons With Respect To Certain Foreign Corporations. 2011 taxact online Under this rule, you generally had control of a foreign corporation if at any time during your tax year you owned: Stock possessing more than 50% of the total combined voting power of all classes of stock entitled to vote, or More than 50% of the total value of shares of all classes of stock of the foreign corporation. 2011 taxact online U. 2011 taxact online S. 2011 taxact online persons controlling foreign partnerships. 2011 taxact online   If you are a U. 2011 taxact online S. 2011 taxact online citizen or resident who had control of a foreign partnership at any time during the partnership's tax year, you may have to file
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The 2011 Taxact Online

2011 taxact online Index Symbols 1231 property sale, Sale of property interest. 2011 taxact online 401(k) plans, Elective Deferrals Excess contributions, Excess Contributions 403(b) plans, Elective Deferrals Limit for, Limit for tax-sheltered annuities. 2011 taxact online 457 plans, Elective Deferrals Limit for deferrals under, Limit for deferrals under section 457 plans. 2011 taxact online 501(c)(18)(D) plans, Elective Deferrals Contributions, Section 501(c)(18)(D) contributions. 2011 taxact online 501(c)(3) organizations, Student loans. 2011 taxact online 529 program, Qualified tuition program (QTP). 2011 taxact online 83(b) election, How to make the choice. 2011 taxact online A Academic health centers Meals and lodging when teaching and research organization, Academic health center. 2011 taxact online Accelerated death benefits, Accelerated Death Benefits Accident insurance, Accident or Health Plan Accidental death benefits, Accidental death benefits. 2011 taxact online Accrual method taxpayers, Prepaid income. 2011 taxact online Accrued leave payment At time of retirement or resignation, Accrued leave payment. 2011 taxact online Disability retirement, Accrued leave payment. 2011 taxact online Activity not for profit, Activity not for profit. 2011 taxact online Adoption Employer assistance, Adoption Assistance Advance commissions, Miscellaneous Compensation Aircraft, Flights on employer-provided aircraft. 2011 taxact online Airlines No-additional-cost services, No-Additional-Cost Services Valuation of flights on employer-provided aircraft, Flights on employer-provided aircraft. 2011 taxact online Alaska Permanent Fund dividend, Alaska Permanent Fund dividend. 2011 taxact online Alien status, waiver of, Waiver of alien status. 2011 taxact online Aliens Nonresident, Nonresident aliens. 2011 taxact online Alimony, Alimony. 2011 taxact online Alternative minimum tax (AMT) Recoveries, refiguring of, Subject to alternative minimum tax. 2011 taxact online Stock options, Alternative minimum tax (AMT). 2011 taxact online Annuities Charitable gift, Charitable gift annuities. 2011 taxact online Railroad retirement, Railroad retirement annuities. 2011 taxact online Tax-sheltered, Limit for tax-sheltered annuities. 2011 taxact online Archer MSAs, Archer MSA contributions. 2011 taxact online , Medical savings accounts (Archer MSAs and Medicare Advantage MSAs). 2011 taxact online Armed forces, Military Combat zone bonus, Veterans' benefits. 2011 taxact online Disability, Disability. 2011 taxact online Disability pensions, Military and Government Disability Pensions Health professions scholarship, Tuition Reduction Military action as cause of disability injuries, Terrorist attack or military action. 2011 taxact online Qualified reservist distribution, Qualified reservist distribution (QRD). 2011 taxact online Rehabilitative program payments, Veterans' benefits. 2011 taxact online Retirement pay, Military retirement pay. 2011 taxact online Veterans benefits, Veterans' benefits. 2011 taxact online Assistance (see Tax help) Athletic facilities, employer-provided, Athletic Facilities Automobile (see Vehicle, employer-provided) Awards (see Damages from lawsuits) B Babysitting, Babysitting. 2011 taxact online Back pay, award for, Back pay awards. 2011 taxact online Backup withholding Barter exchange transactions, Backup withholding. 2011 taxact online Bankruptcy Canceled debt not deemed to be income, Excluded debt. 2011 taxact online Barter income, Bartering Below-market loans, Below-market loans. 2011 taxact online Bequest for services, Bequest for services. 2011 taxact online Bicycle, Transportation Fringe benefit, Qualified bicycle commuting. 2011 taxact online Black lung benefit payments, Black lung benefit payments. 2011 taxact online Bonuses, Bonuses and awards. 2011 taxact online , Employee awards or bonuses. 2011 taxact online Breach of contract Damages as income, Court awards and damages. 2011 taxact online Bribes, Bribes. 2011 taxact online Business expenses Reimbursements, Allowances and reimbursements. 2011 taxact online Business income, Business and Investment Income, More information. 2011 taxact online C Cafeteria plans, Cafeteria plans. 2011 taxact online Campaign contributions, Campaign contributions. 2011 taxact online Campus lodging, Qualified campus lodging. 2011 taxact online , Moving Expense Reimbursements Cancellation of debt, Canceled Debts Cancellation of sales contracts, Canceled sales contract. 2011 taxact online Capital gains Recoveries, Capital gains. 2011 taxact online , Capital gains. 2011 taxact online Capital gains or losses Employee stock option plans (ESOPs), Option granted at a discount. 2011 taxact online Incentive stock options (ISOs), Incentive stock options (ISOs). 2011 taxact online Sale of personal property, Sale of personal items. 2011 taxact online Car (see Vehicle, employer-provided) Car pools, Car pools. 2011 taxact online Cash or deferred arrangements (CODAs), Elective Deferrals Cash rebates, Cash rebates. 2011 taxact online Casualty insurance Reimbursements from, Casualty insurance and other reimbursements. 2011 taxact online Catch-up contributions, Catch-up contributions. 2011 taxact online , Catch-up contributions. 2011 taxact online Charitable gift annuities, Charitable gift annuities. 2011 taxact online Child and Adult Care Food Program Payments to daycare providers, Food program payments to daycare providers. 2011 taxact online Child support payments, Child support payments. 2011 taxact online Childcare providers, Childcare providers. 2011 taxact online , Food program payments to daycare providers. 2011 taxact online Chronic illness, Chronically ill individual. 2011 taxact online Accelerated death benefits paid to, Exclusion for chronic illness. 2011 taxact online Citizens outside U. 2011 taxact online S. 2011 taxact online Exclusion of foreign income, Reminders Civil Rights Act of 1964, Title VII Back pay and damages for emotional distress under, Court awards and damages. 2011 taxact online Clergy, Clergy Coal, Coal and iron ore. 2011 taxact online Colleges and universities Faculty lodging, Faculty lodging. 2011 taxact online Scholarships and fellowships, Scholarships and fellowships. 2011 taxact online Commissions Advance, Miscellaneous Compensation Commuter highway vehicles, Transportation Compensation Employee, Employee Compensation Miscellaneous, Miscellaneous Compensation Unemployment, Unemployment compensation. 2011 taxact online Workers', Workers' Compensation Compensatory damages, Other compensation. 2011 taxact online , Court awards and damages. 2011 taxact online Constructive receipt of income, Constructively received income. 2011 taxact online Copyrights Infringement damages, Court awards and damages. 2011 taxact online Royalties, Copyrights and patents. 2011 taxact online Corporate directors, Corporate director. 2011 taxact online Cost-of-living allowances, Government cost-of-living allowances. 2011 taxact online Court awards, Court awards and damages. 2011 taxact online (see also Damages from lawsuits) Credit card Insurance, Credit card insurance. 2011 taxact online Credits Recoveries, refiguring of unused credits, Unused tax credits. 2011 taxact online , Unused tax credits. 2011 taxact online Currency transactions, foreign, Foreign currency transactions. 2011 taxact online D Damages from lawsuits, Court awards and damages. 2011 taxact online Back pay awards, Back pay awards. 2011 taxact online Breach of contract, Court awards and damages. 2011 taxact online Compensatory damages, Other compensation. 2011 taxact online , Court awards and damages. 2011 taxact online Emotional distress under Title VII, Civil Rights Act of 1964, Court awards and damages. 2011 taxact online Punitive damages, Court awards and damages. 2011 taxact online Daycare providers, Childcare providers. 2011 taxact online (see also Childcare providers) Food program payments to, Food program payments to daycare providers. 2011 taxact online De minimis benefits, De Minimis (Minimal) Benefits, Meals and Lodging Death benefits, Proceeds not received in installments. 2011 taxact online (see also Life insurance) Accelerated, Accelerated Death Benefits Debts Canceled, Canceled Debts Excluded debt, Excluded debt. 2011 taxact online Nonrecourse debts, Mortgage relief upon sale or other disposition. 2011 taxact online Recourse, Mortgage relief upon sale or other disposition. 2011 taxact online Stockholder's, Stockholder debt. 2011 taxact online Deduction Costs of discrimination suits, Deduction for costs involved in unlawful discrimination suits. 2011 taxact online Deferred compensation Nonqualified plans, Nonqualified deferred compensation plans. 2011 taxact online , Nonqualified deferred compensation plans of nonqualified entities. 2011 taxact online Dependent care benefits, Dependent Care Benefits Depletion allowance, Depletion. 2011 taxact online Differential wage payments, Differential wage payments. 2011 taxact online Armed forces, Differential wage payments. 2011 taxact online Directors' fees, Corporate director. 2011 taxact online Disability Military, Disability. 2011 taxact online Pensions, Disability Pensions Workers' compensation, Disability pension. 2011 taxact online Person with, Persons with disabilities. 2011 taxact online Unemployment compensation, paid as substitute for, Types of unemployment compensation. 2011 taxact online Disaster relief Disaster mitigation payments, Disaster mitigation payments. 2011 taxact online Disaster Relief and Emergency Assistance Act Grants, Disaster relief grants. 2011 taxact online Unemployment benefits, Unemployment Benefits Mitigation payments, Reminders Payments, Disaster relief payments. 2011 taxact online Discounts Employee discounts, Employee Discounts Employee stock purchase plans, Option granted at a discount. 2011 taxact online Mortgage loan for early payment, Discounted mortgage loan. 2011 taxact online Dividends Restricted stock, Dividends received on restricted stock. 2011 taxact online Divorced taxpayers Stock options exercised incident to divorce, Tax form. 2011 taxact online Down payment assistance, Down payment assistance. 2011 taxact online E Educational assistance Employer-provided, Educational Assistance Scholarships and fellowships, Scholarships and fellowships. 2011 taxact online Educational institutions Faculty lodging, Faculty lodging. 2011 taxact online Elderly persons Nutrition Program for the Elderly, Nutrition Program for the Elderly. 2011 taxact online Tax Counseling for the Elderly, Volunteer tax counseling. 2011 taxact online Election precinct officials, Election precinct official. 2011 taxact online Elective deferrals, Elective Deferrals Catch-up contributions, Catch-up contributions. 2011 taxact online , Catch-up contributions. 2011 taxact online Excess annual additions, Excess Annual Additions Excess contributions, Excess Contributions Excess deferrals, Excess deferrals. 2011 taxact online Increased limit for last 3 years prior to retirement age, Increased limit. 2011 taxact online Limit on, Elective Deferrals Reporting by employer, Reporting by employer. 2011 taxact online Emergency Homeowners' Loan Program, Hardest Hit Fund and Emergency Homeowners' Loan Program. 2011 taxact online Emotional distress damages, Emotional distress. 2011 taxact online Employee achievement awards, Employee achievement award. 2011 taxact online Employee awards or bonuses, Employee awards or bonuses. 2011 taxact online Employee compensation, Employee Compensation, Inherited property not substantially vested. 2011 taxact online Fringe benefits, Fringe Benefits, Special valuation rules. 2011 taxact online Restricted property, Restricted Property, Inherited property not substantially vested. 2011 taxact online Retirement plan contributions, Retirement Plan Contributions Stock options, Stock Options, Statutory Stock Options Employee discounts, Employee Discounts Employee stock purchase plans, Statutory Stock Options, Employee stock purchase plan. 2011 taxact online Employer, foreign, Foreign Employer Employer-owned life insurance, Employer-owned life insurance contract. 2011 taxact online Employer-provided Educational assistance, Educational Assistance Vehicles, Employer-provided vehicles. 2011 taxact online Employment Abroad, Employment abroad. 2011 taxact online Agency fees, Employment agency fees. 2011 taxact online Contracts Severance pay for cancellation of, Severance pay. 2011 taxact online Endowment proceeds, Endowment Contract Proceeds Energy Assistance, Payments to reduce cost of winter energy. 2011 taxact online Conservation Subsidies, Energy conservation subsidies. 2011 taxact online Utility rebates, Utility rebates. 2011 taxact online Estate income, Estate and trust income. 2011 taxact online Estimated tax Unemployment compensation, Tax withholding. 2011 taxact online Excess Annual additions, Excess Annual Additions Contributions, Excess Contributions Deferrals, Excess deferrals. 2011 taxact online Expected inheritance, Expected inheritance. 2011 taxact online Expenses paid by another, Expenses paid by another. 2011 taxact online Exxon Valdez settlement, Exxon Valdez settlement income. 2011 taxact online Eligible retirement plan, Contributions to eligible retirement plan. 2011 taxact online Income averaging, Income averaging. 2011 taxact online Legal expenses, Legal expenses. 2011 taxact online Reporting requirement-statement, Statement. 2011 taxact online F Faculty lodging, Faculty lodging. 2011 taxact online Fair market value (FMV), Fair market value. 2011 taxact online Stock options, Grant of option. 2011 taxact online Farming Qualified farm debt, cancellation of, Excluded debt. 2011 taxact online Federal employees Accrued leave payment, Accrued leave payment. 2011 taxact online Cost-of-living allowances, Government cost-of-living allowances. 2011 taxact online Disability pensions, Military and Government Disability Pensions Thrift Savings Plan for, Elective Deferrals Federal Employees Compensation Act (FECA) payments, Federal Employees' Compensation Act (FECA). 2011 taxact online Federal income tax Refunds, Federal income tax refund. 2011 taxact online Fees for services, Fees for services. 2011 taxact online Financial counseling fees, Financial Counseling Fees Fellowships, Scholarships and fellowships. 2011 taxact online FICA withholding Foreign employers, U. 2011 taxact online S. 2011 taxact online citizens working for in U. 2011 taxact online S. 2011 taxact online , Social security and Medicare taxes. 2011 taxact online Paid by employer, Social security and Medicare taxes paid by employer. 2011 taxact online Fiduciaries Fees for services, Fees for services. 2011 taxact online , Personal representatives. 2011 taxact online Financial counseling fees, Financial Counseling Fees (see also Retirement planning services) Fitness programs Employer-provided, Athletic Facilities Flights Employer-provided aircraft, Flights on employer-provided aircraft. 2011 taxact online No-additional-cost services, No-Additional-Cost Services Food benefits Daycare providers, food program payments to, Food program payments to daycare providers. 2011 taxact online Nutrition Program for the Elderly, Nutrition Program for the Elderly. 2011 taxact online Foreign Currency transactions, Foreign currency transactions. 2011 taxact online Employment, Foreign Employer Governments, employees of, Employees of international organizations or foreign governments. 2011 taxact online Income, Reminders Service, Service-connected disability. 2011 taxact online Form 1040 Excess contributions to elective deferrals, Excess Contributions Recoveries, Where to report. 2011 taxact online Unemployment compensation, Unemployment Benefits Wages from Form W-2, Employee Compensation Form 1040 or 1040A, Schedule B Restricted stock dividends, Stock you chose to include in your income. 2011 taxact online Form 1040, Schedule A Outplacement services, deduction for, Outplacement services. 2011 taxact online Repayment of commissions paid in advance, Advance commissions and other earnings. 2011 taxact online Form 1040, Schedule C Bartering, Bartering Childcare providers to use, Childcare providers. 2011 taxact online Personal property rental, reporting income from, Reporting business income and expenses. 2011 taxact online Royalties, Royalties Form 1040, Schedule C-EZ Bartering, Bartering Childcare Providers to use, Childcare providers. 2011 taxact online Personal property rental, reporting income from, Reporting business income and expenses. 2011 taxact online Royalties, Royalties Form 1040, Schedule D Stock options, Sale of the stock. 2011 taxact online Stock options reported on, Statutory Stock Options Form 1040, Schedule E Partner's return, Partner's return. 2011 taxact online Royalties, Royalties Form 1040A Recoveries, Where to report. 2011 taxact online Unemployment compensation, Unemployment Benefits Wages from Form W-2, Employee Compensation Form 1040EZ Recoveries, Where to report. 2011 taxact online Unemployment compensation, Unemployment Benefits Wages from Form W-2, Employee Compensation Form 1041 Estates and trusts, Estate and trust income. 2011 taxact online Form 1041, Schedule K-1 Beneficiary's share of income, deductions, credits, etc. 2011 taxact online , Estate and trust income. 2011 taxact online Form 1065 Partnership return, Partnership return. 2011 taxact online Form 1065, Schedule K-1 Partner's share of income, Schedule K-1 (Form 1065). 2011 taxact online , Partnership Income Form 1098 Mortgage interest statement, Mortgage interest refund. 2011 taxact online Form 1099-B Barter exchange transactions, Form 1099-B from barter exchange. 2011 taxact online , Backup withholding. 2011 taxact online Form 1099-C Cancellation of debt, Form 1099-C. 2011 taxact online Form 1099-DIV Restricted stock dividends, Stock you chose to include in your income. 2011 taxact online Form 1099-G State tax refunds, State tax refund. 2011 taxact online Unemployment compensation, Unemployment Benefits Form 1099-MISC Services totaling $600 or more, Fees for services. 2011 taxact online Stock options exercised incident to divorce, Tax form. 2011 taxact online Form 1099-R Charitable gift annuities, Charitable gift annuities. 2011 taxact online Excess annual additions, Excess Annual Additions Excess deferral amounts, Excess distributed to you. 2011 taxact online Surrender of life insurance policy for cash, Surrender of policy for cash. 2011 taxact online Form 1120-POL Political organizations, Campaign contributions. 2011 taxact online Form 1120S S corporation return, S corporation return. 2011 taxact online Form 1120S, Schedule K-1 Shareholder's share of income, credits, deductions, etc. 2011 taxact online , Schedule K-1 (Form 1120S). 2011 taxact online Form 2441 Child and dependent care expenses, Dependent Care Benefits Form 4255 Recapture of investment credit, Amounts Recovered for Credits Form 6251 Alternative minimum tax, Alternative minimum tax (AMT). 2011 taxact online Form 8839 Adoption assistance, Adoption Assistance Form 8853 Accelerated death benefits, Form 8853. 2011 taxact online Archer MSAs and long-term care insurance contracts, Archer MSA contributions. 2011 taxact online Form 8919 Uncollected social security and Medicare tax on wages, Employee Compensation Form RRB-1099 Railroad retirement board payments, Form RRB-1099. 2011 taxact online Form SSA-1099 Social security benefit statement, Form SSA-1099. 2011 taxact online Form W-2 501(c)(18)(D) contributions, Section 501(c)(18)(D) contributions. 2011 taxact online Accrued leave payment at time of retirement or resignation, Accrued leave payment. 2011 taxact online Back pay awards, Back pay awards. 2011 taxact online Bonuses or awards, Bonuses and awards. 2011 taxact online Elective deferrals, reporting by employer, Reporting by employer. 2011 taxact online Failure to receive from employer, Employee Compensation Fringe benefits reported on, Form W-2. 2011 taxact online Stock options from employers, Tax form. 2011 taxact online Wage and tax statement, Employee Compensation Form W-2G Gambling winnings, Form W-2G. 2011 taxact online Form W-4V Unemployment compensation, voluntary withholding request, Tax withholding. 2011 taxact online Form W-9 Request for taxpayer identification number, Backup withholding. 2011 taxact online Foster care, Foster care providers. 2011 taxact online Foster Grandparent Program, National Senior Service Corps programs. 2011 taxact online Found property, Found property. 2011 taxact online Free tax services, Free help with your tax return. 2011 taxact online Fringe benefits, Fringe Benefits, Special valuation rules. 2011 taxact online Accident and health insurance, Accident or Health Plan Adoption, employer assistance, Adoption Assistance Athletic facilities, Athletic Facilities Commuter highway vehicles, Transportation De minimis benefits, De Minimis (Minimal) Benefits, Meals and Lodging Dependent care benefits, Dependent Care Benefits Educational assistance, Educational Assistance Employee discounts, Employee Discounts Faculty lodging, Faculty lodging. 2011 taxact online Financial counseling fees, Financial Counseling Fees Holiday gifts, Holiday gifts. 2011 taxact online Meals and lodging, Meals and Lodging Moving expenses (see Moving expenses) No-additional-cost services, No-Additional-Cost Services Parking, Transportation Retirement planning (see Retirement planning services) Transit pass, Transportation, Transit pass. 2011 taxact online Tuition reduction, Tuition Reduction Valuation of, Valuation of Fringe Benefits, Special valuation rules. 2011 taxact online Vehicle, Employer-provided vehicles. 2011 taxact online Working condition benefits, Working Condition Benefits Frozen deposits Interest on, Interest on frozen deposits. 2011 taxact online G Gambling winnings and losses, Gambling winnings. 2011 taxact online Gas Royalties from, Oil, gas, and minerals. 2011 taxact online Gifts, Gifts and inheritances. 2011 taxact online Holiday gifts from employer, Holiday gifts. 2011 taxact online Government employees (see Federal employees; State employees) Grantor trusts, Grantor trust. 2011 taxact online Group-term life insurance Worksheets, Figuring the taxable cost. 2011 taxact online , Worksheet 1. 2011 taxact online Figuring the Cost of Group-Term Life Insurance To Include in Income—Illustrated Gulf oil spill, Reminders, Gulf oil spill. 2011 taxact online H HAMP Home affordable modification program Pay-for-performance success payments, Home Affordable Modification Program (HAMP). 2011 taxact online Hardest Hit Fund Program, Hardest Hit Fund and Emergency Homeowners' Loan Program. 2011 taxact online Health Flexible spending arrangement, Health flexible spending arrangement (health FSA). 2011 taxact online Insurance, Accident or Health Plan Reimbursement arrangement, Health reimbursement arrangement (HRA). 2011 taxact online Savings account, Health savings accounts (HSA). 2011 taxact online Help (see Tax help) Highly compensated employees Excess contributions to elective deferrals, Excess Contributions Historic preservation grants, Historic preservation grants. 2011 taxact online Hobby losses, Hobby losses. 2011 taxact online Holding period requirement, Holding period requirement. 2011 taxact online Holiday gifts, Holiday gifts. 2011 taxact online Holocaust victims restitution, Holocaust victims restitution. 2011 taxact online Home, sale of, Sale of home. 2011 taxact online Host or hostess, Host or Hostess Hotels No-additional-cost services, No-Additional-Cost Services Housing (see Lodging) I Illegal activities, Illegal activities. 2011 taxact online Incentive stock options (ISOs), Statutory Stock Options, Incentive stock options (ISOs). 2011 taxact online Income Assigned, Assignment of income. 2011 taxact online Business and investment, Business and Investment Income, More information. 2011 taxact online Constructive receipt of, Constructively received income. 2011 taxact online Estate and trust, Estate and trust income. 2011 taxact online Foreign employers, Foreign Employer Illegal, Illegal activities. 2011 taxact online Miscellaneous, Miscellaneous Income Other, Other Income Partnership, Partnership Income Prepaid, Prepaid income. 2011 taxact online S corporation, S Corporation Income Indian fishing rights, Indian fishing rights. 2011 taxact online Indian money account, Indian money account litigation settlement. 2011 taxact online Individual retirement arrangements (IRAs) Deduction, Benefits may affect your IRA deduction. 2011 taxact online Inherited IRA, Inherited pension or IRA. 2011 taxact online Inheritance, Gifts and inheritances. 2011 taxact online IRA, Inherited pension or IRA. 2011 taxact online Property not substantially vested, Inherited property not substantially vested. 2011 taxact online Injury benefits, Sickness and Injury Benefits, Reimbursement for medical care. 2011 taxact online Insurance Credit card, Credit card insurance. 2011 taxact online Health, Accident or Health Plan Life (see Life insurance) Long-term care (see Long-term care insurance) Interest Canceled debt including, Interest included in canceled debt. 2011 taxact online Frozen deposits, Interest on frozen deposits. 2011 taxact online Mortgage refunds, Mortgage interest refund. 2011 taxact online Option on insurance, Interest option on insurance. 2011 taxact online Recovery amounts, Interest on recovery. 2011 taxact online Savings bond, Interest on qualified savings bonds. 2011 taxact online State and local government obligations, Interest on state and local government obligations. 2011 taxact online Interference with business operations Damages as income, Court awards and damages. 2011 taxact online International organizations, employees of, Foreign Employer Interview expenses, Job interview expenses. 2011 taxact online Investment counseling fees, Financial Counseling Fees (see also Retirement planning services) Investment income, Business and Investment Income, More information. 2011 taxact online IRAs (see Individual retirement arrangements (IRAs)) Iron ore, Coal and iron ore. 2011 taxact online Itemized deductions Limited, Itemized deductions limited. 2011 taxact online Recoveries, Recoveries, Itemized Deduction Recoveries J Job interview expenses, Job interview expenses. 2011 taxact online Joint returns Social security benefits or railroad retirement payments, Joint return. 2011 taxact online Joint state/local tax return Recoveries, Joint state or local income tax return. 2011 taxact online Jury duty pay, Jury duty. 2011 taxact online K Kickbacks, Kickbacks. 2011 taxact online L Labor unions Convention expenses, reimbursed, Reimbursed union convention expenses. 2011 taxact online Dues, Union benefits and dues. 2011 taxact online Strike and lockout benefits, Strike and lockout benefits. 2011 taxact online Unemployment benefits paid from, Payments by a union. 2011 taxact online Last day of tax year, income received on, Constructively received income. 2011 taxact online Leave (see Accrued leave payment) Length-of-service awards, Employee achievement award. 2011 taxact online Life insurance Employer-owned, Employer-owned life insurance contract. 2011 taxact online Proceeds, Life Insurance Proceeds Surrender of policy for cash, Surrender of policy for cash. 2011 taxact online Loans, Discounted mortgage loan. 2011 taxact online (see also Mortgage) Below-market, Below-market loans. 2011 taxact online Student, Student loans. 2011 taxact online Lockout benefits, Strike and lockout benefits. 2011 taxact online Lodging Campus lodging, Qualified campus lodging. 2011 taxact online , Moving Expense Reimbursements Clergy, Housing Employer-paid or reimbursed, Meals and Lodging Faculty lodging, Faculty lodging. 2011 taxact online Replacement housing payments, Replacement housing payments. 2011 taxact online Long-term care insurance, Long-term care coverage. 2011 taxact online , Long-Term Care Insurance Contracts Lotteries and raffles, Lotteries and raffles. 2011 taxact online Lump-sum distributions Survivor benefits, Lump-sum payments. 2011 taxact online M Manufacturer incentive payments, Manufacturer incentive payments. 2011 taxact online Meals Employer-paid or reimbursed, Meals and Lodging Nutrition Program for the Elderly, Nutrition Program for the Elderly. 2011 taxact online Medical Care reimbursements, Reimbursement for medical care. 2011 taxact online Savings accounts, Medical savings accounts (Archer MSAs and Medicare Advantage MSAs). 2011 taxact online Medicare Advantage MSAs, Medical savings accounts (Archer MSAs and Medicare Advantage MSAs). 2011 taxact online Benefits, Medicare. 2011 taxact online Tax paid by employer, Social security and Medicare taxes paid by employer. 2011 taxact online Medicare tax (see Social security and Medicare taxes) Military (see Armed forces) Minerals Royalties from, Oil, gas, and minerals. 2011 taxact online Miscellaneous Compensation, Miscellaneous Compensation Income, Miscellaneous Income Missing children, photographs of, Reminders Mortgage Assistance payment (under sec. 2011 taxact online 235 of National Housing Act), Mortgage assistance payments under section 235 of the National Housing Act. 2011 taxact online Discounted loan, Discounted mortgage loan. 2011 taxact online Interest refund, Mortgage interest refund. 2011 taxact online Qualified principal residence indebtedness, Qualified principal residence indebtedness (QPRI). 2011 taxact online Relief, Mortgage relief upon sale or other disposition. 2011 taxact online Motor vehicle, employer-provided, Employer-provided vehicles. 2011 taxact online Moving expenses Reimbursements, Allowances and reimbursements. 2011 taxact online , Moving expense reimbursements. 2011 taxact online MSAs (Medical savings accounts), Medical savings accounts (Archer MSAs and Medicare Advantage MSAs). 2011 taxact online N National Health Service Corps Scholarship Program, Tuition Reduction National Oceanic and Atmospheric Administration, Service-connected disability. 2011 taxact online National Senior Service Corps, National Senior Service Corps programs. 2011 taxact online No-additional-cost services, No-Additional-Cost Services No-fault car insurance Disability benefits under, Other compensation. 2011 taxact online Nobel prize, Pulitzer, Nobel, and similar prizes. 2011 taxact online Nonrecourse debt, Mortgage relief upon sale or other disposition. 2011 taxact online Nonstatutory stock options, Nonstatutory Stock Options Nontaxable income, Introduction Not-for-profit activities, Activity not for profit. 2011 taxact online Notary fees, Notary public. 2011 taxact online Notes received for services, Note received for services. 2011 taxact online Nutrition Program for the Elderly, Nutrition Program for the Elderly. 2011 taxact online O Oil Royalties from, Oil, gas, and minerals. 2011 taxact online Old-age, survivors, and disability insurance benefits (OASDI), Old-age, survivors, and disability insurance benefits (OASDI). 2011 taxact online Options, stock, Stock Options, Statutory Stock Options Outplacement services, Outplacement services. 2011 taxact online Overseas work, Reminders P Parking fees Employer-paid or reimbursed, Transportation, Qualified parking. 2011 taxact online Partner and partnership income, Partnership Income Patents Infringement damages, Court awards and damages. 2011 taxact online Royalties, Copyrights and patents. 2011 taxact online Peace Corps, Peace Corps. 2011 taxact online Pensions Clergy, Pension. 2011 taxact online Disability pensions, Disability Pensions Inherited pensions, Inherited pension or IRA. 2011 taxact online Military, Military retirement pay. 2011 taxact online Personal property Rental income and expense, Rents From Personal Property Sale of, Sale of personal items. 2011 taxact online Personal representatives (see Fiduciaries) Prepaid income, Prepaid income. 2011 taxact online Price reduced after purchase, Price reduced after purchase. 2011 taxact online Prizes and awards, Bonuses and awards. 2011 taxact online , Prizes and awards. 2011 taxact online Achievement awards, Employee achievement award. 2011 taxact online Employee awards or bonuses, Employee awards or bonuses. 2011 taxact online Length-of-service awards, Employee achievement award. 2011 taxact online Pulitzer, Nobel, and similar prizes, Pulitzer, Nobel, and similar prizes. 2011 taxact online Safety achievement, Employee achievement award. 2011 taxact online Scholarship prizes, Prizes. 2011 taxact online Profit-sharing plan, Retirement and profit-sharing plans. 2011 taxact online Public assistance benefits, Welfare and Other Public Assistance Benefits Public Health Service, Service-connected disability. 2011 taxact online Public safety officers killed in line of duty, Public safety officer killed in the line of duty. 2011 taxact online Public transportation passes, employer-provided, Transportation, Transit pass. 2011 taxact online Publications (see Tax help) Pulitzer prize, Pulitzer, Nobel, and similar prizes. 2011 taxact online Punitive damages, Court awards and damages. 2011 taxact online Q Qualified joint venture, Reminders Qualified tuition program (QTP), Qualified tuition program (QTP). 2011 taxact online R Raffles, Lotteries and raffles. 2011 taxact online Railroad Retirement annuities, Railroad retirement annuities. 2011 taxact online Retirement benefits, Social security and equivalent railroad retirement benefits. 2011 taxact online Sick pay, Railroad sick pay. 2011 taxact online Unemployment compensation benefits, Types of unemployment compensation. 2011 taxact online Real estate Qualified real property business debt, cancellation of, Excluded debt. 2011 taxact online Rebates Cash, Cash rebates. 2011 taxact online Utility, Utility rebates. 2011 taxact online Recovery of amounts previously deducted, Recoveries, Standard deduction for earlier years. 2011 taxact online Itemized deductions, Recoveries, Itemized Deduction Recoveries Non-itemized deductions, Non-Itemized Deduction Recoveries Unused tax credits, refiguring of, Unused tax credits. 2011 taxact online , Unused tax credits. 2011 taxact online Refunds Federal income tax, Federal income tax refund. 2011 taxact online Mortgage interest, Mortgage interest refund. 2011 taxact online State tax, State tax refund. 2011 taxact online Rehabilitative program payments, Veterans' benefits. 2011 taxact online Reimbursements Business expenses, Allowances and reimbursements. 2011 taxact online Casualty losses, Casualty insurance and other reimbursements. 2011 taxact online Meals and lodging, Meals and Lodging Medical expenses, Reimbursement for medical care. 2011 taxact online Moving expenses, Allowances and reimbursements. 2011 taxact online , Moving expense reimbursements. 2011 taxact online Related party transactions Stock option transfer, Transfer in non-arm's-length transaction. 2011 taxact online Religious order members, Members of Religious Orders Rental income and expenses Personal property rental, Rents From Personal Property Reporting of, Reporting business income and expenses. 2011 taxact online Repayments, Repayments, Year of deduction (or credit). 2011 taxact online Repossession, Canceled sales contract. 2011 taxact online Restricted property, Restricted Property, Inherited property not substantially vested. 2011 taxact online Retired Senior Volunteer Program (RSVP), National Senior Service Corps programs. 2011 taxact online Retirement Settlement, Reminders Retirement planning services, Financial Counseling Fees, Retirement Planning Services Retirement plans, Military retirement pay. 2011 taxact online (see also Pensions) Automatic contribution arrangements, Qualified automatic contribution arrangements. 2011 taxact online Contributions, Retirement Plan Contributions, Excess Annual Additions, Statutory Stock Options Elective deferrals (see Elective deferrals) Rewards, Rewards. 2011 taxact online Roth contributions, Designated Roth contributions. 2011 taxact online Royalties, Royalties S S corporations, S Corporation Income Safety achievement awards, Employee achievement award. 2011 taxact online Salary reduction simplified employee pension plans (see SARSEPs) Sale of home, Sale of home. 2011 taxact online Sales contracts Cancellation of, Canceled sales contract. 2011 taxact online SARSEPs, Elective Deferrals Excess contributions, Excess Contributions Savings bonds, Interest on qualified savings bonds. 2011 taxact online Savings incentive match plans for employees (see SIMPLE plans) Scholarships and fellowships, Scholarships and fellowships. 2011 taxact online Self-employed persons U. 2011 taxact online S. 2011 taxact online citizens working for foreign employers in U. 2011 taxact online S. 2011 taxact online treated as, Social security and Medicare taxes. 2011 taxact online Senior Companion Program, National Senior Service Corps programs. 2011 taxact online Service Corps of Retired Executives (SCORE), Service Corps of Retired Executives (SCORE). 2011 taxact online Severance pay, Severance pay. 2011 taxact online Outplacement services, Outplacement services. 2011 taxact online Sick pay, Sick pay. 2011 taxact online Sickness and injury benefits, Sickness and Injury Benefits, Reimbursement for medical care. 2011 taxact online SIMPLE plans, Elective Deferrals Limit for deferrals under, Limit for deferrals under SIMPLE plans. 2011 taxact online Smallpox vaccine injuries, Smallpox vaccine injuries. 2011 taxact online Social security and Medicare taxes Foreign employers, U. 2011 taxact online S. 2011 taxact online citizens working for in U. 2011 taxact online S. 2011 taxact online , Social security and Medicare taxes. 2011 taxact online Paid by employer, Social security and Medicare taxes paid by employer. 2011 taxact online Social security benefits, Social security and equivalent railroad retirement benefits. 2011 taxact online Standard deduction Recoveries, Standard deduction limit. 2011 taxact online , Standard deduction for earlier years. 2011 taxact online State employees Unemployment benefits paid to, State employees. 2011 taxact online State or local governments Interest on obligations of, Interest on state and local government obligations. 2011 taxact online State or local taxes Refunds, State tax refund. 2011 taxact online Statutory stock option holding period, Sale of the stock. 2011 taxact online Stock appreciation rights, Stock appreciation rights. 2011 taxact online Stock options, Stock Options, Statutory Stock Options Stock options, nonstatutory Exercise or transfer, Exercise or transfer of option. 2011 taxact online Grant, Grant of option. 2011 taxact online Sale, Sale of the stock. 2011 taxact online Stock options, statutory Exercise, Exercise of option. 2011 taxact online Grant, Grant of option. 2011 taxact online Sale, Sale of the stock. 2011 taxact online Stockholder debts, Stockholder debt. 2011 taxact online Stolen property, Stolen property. 2011 taxact online Strike benefits, Strike and lockout benefits. 2011 taxact online Student loans Cancellation of debt, Student loans. 2011 taxact online Substantial risk of forfeiture, Substantial risk of forfeiture. 2011 taxact online Substantially vested property, Substantially vested. 2011 taxact online Supplemental security income (SSI) payments, Social security and equivalent railroad retirement benefits. 2011 taxact online Supplemental unemployment benefits, Supplemental unemployment benefits. 2011 taxact online Surviving spouse Life insurance proceeds paid to, Surviving spouse. 2011 taxact online Survivor benefits, Survivor Benefits T Tables and figures Group-term life insurance (Table 1), Group-Term Life Insurance Tax benefit rule, Tax benefit rule. 2011 taxact online Tax Counseling for the Elderly, Volunteer tax counseling. 2011 taxact online Tax help, How To Get Tax Help Tax-sheltered annuity plans (403(b) plans), Elective Deferrals Limit for, Limit for tax-sheltered annuities. 2011 taxact online Terminal illness, Exclusion for terminal illness. 2011 taxact online Terrorist attacks Disability payments for injuries from, Terrorist attack or military action. 2011 taxact online Victims of, tax relief, Reminders Thrift Savings Plan, Elective Deferrals Title VII, Civil Rights Act of 1964 Back pay and damages for emotional distress under, Court awards and damages. 2011 taxact online Tour guides, free tours for, Free tour. 2011 taxact online Trade Act of 1974 Trade readjustment allowances under, Types of unemployment compensation. 2011 taxact online , Repayment of benefits. 2011 taxact online Transferable property, Transferable property. 2011 taxact online Transit passes, Transportation, Transit pass. 2011 taxact online Travel agencies Free tour to organizer of group of tourists, Free tour. 2011 taxact online Travel and transportation expenses Free tours from travel agencies, Free tour. 2011 taxact online Fringe benefits, Transportation Reimbursements, Allowances and reimbursements. 2011 taxact online School children, transporting of, Transporting school children. 2011 taxact online Trusts Grantor trusts, Grantor trust. 2011 taxact online Income, Estate and trust income. 2011 taxact online Tuition program, qualified (QTP), Qualified tuition program (QTP). 2011 taxact online Tuition reduction, Tuition Reduction U Unemployment compensation, Unemployment Benefits Unions (see Labor unions) Unlawful discrimination suits Deduction for costs, Deduction for costs involved in unlawful discrimination suits. 2011 taxact online V VA payments, VA payments. 2011 taxact online Valuation Fringe benefits, Valuation of Fringe Benefits, Special valuation rules. 2011 taxact online Stock options, Nonstatutory Stock Options Vehicle Commuter highway, Commuter highway vehicle. 2011 taxact online Employer-provided, Employer-provided vehicles. 2011 taxact online Veterans benefits, Veterans' benefits. 2011 taxact online Disability compensation, Retroactive VA determination. 2011 taxact online Retroactive VA determination, Retroactive VA determination. 2011 taxact online Special statute of limitations. 2011 taxact online , Special statute of limitations. 2011 taxact online Viatical settlements, Viatical settlement. 2011 taxact online Volunteer work, Volunteers Tax counseling (Volunteer Income Tax Assistance Program), Volunteer tax counseling. 2011 taxact online Volunteers in Service to America (VISTA), Volunteers in Service to America (VISTA). 2011 taxact online W W-2 form (see Form W-2) Welfare benefits, Welfare and Other Public Assistance Benefits Whistleblower, Whistleblower's award. 2011 taxact online Winter energy payments, Payments to reduce cost of winter energy. 2011 taxact online Withholding Barter exchange transactions, Backup withholding. 2011 taxact online Unemployment compensation, Tax withholding. 2011 taxact online Work-training programs, Work-training program. 2011 taxact online Workers' compensation, Workers' Compensation Working condition benefits, Working Condition Benefits Worksheets Group-term life insurance (Worksheet 1), Figuring the taxable cost. 2011 taxact online , Worksheet 1. 2011 taxact online Figuring the Cost of Group-Term Life Insurance To Include in Income—Illustrated Prev  Up     Home   More Online Publications