File your Taxes for Free!
  • Get your maximum refund*
  • 100% accurate calculations guaranteed*

TurboTax Federal Free Edition - File Taxes Online

Don't let filing your taxes get you down! We'll help make it as easy as possible. With e-file and direct deposit, there's no faster way to get your refund!

Approved TurboTax Affiliate Site. TurboTax and TurboTax Online, among others, are registered trademarks and/or service marks of Intuit Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.


© 2012 - 2018 All rights reserved.

This is an Approved TurboTax Affiliate site. TurboTax and TurboTax Online, among other are registered trademarks and/or service marks of Intuit, Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.
When discussing "Free e-file", note that state e-file is an additional fee. E-file fees do not apply to New York state returns. Prices are subject to change without notice. E-file and get your refund faster
*If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
*Maximum Refund Guarantee - or Your Money Back: If you get a larger refund or smaller tax due from another tax preparation method, we'll refund the applicable TurboTax federal and/or state purchase price paid. TurboTax Federal Free Edition customers are entitled to payment of $14.99 and a refund of your state purchase price paid. Claims must be submitted within sixty (60) days of your TurboTax filing date and no later than 6/15/14. E-file, Audit Defense, Professional Review, Refund Transfer and technical support fees are excluded. This guarantee cannot be combined with the TurboTax Satisfaction (Easy) Guarantee. *We're so confident your return will be done right, we guarantee it. Accurate calculations guaranteed. If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
https://turbotax.intuit.com/corp/guarantees.jsp

Amended

2012 1040xFile Extension For FreeTurbotax Free For Military1040ez 2011 Tax FormFree Websites To File State TaxesFilemy2010taxreturnforfreeWhere Can I Get State Tax FormsState Tax FileTurbotax For Military2011 Federal Tax FormFiling 2011 Taxes In 2013Form 1040x InstructionsIrs Free FileTaxact 2009File Your Taxes Free OnlineFree Tax Filing 2011 State And FederalFile Your Taxes Online1040ez InstructionsHow To File A Tax Amendment Online2011 Tax Form 1040ezWww Myfreetaxes Com Cnm2Free State File TurbotaxDo Unemployed People Pay TaxesEfile 1040nrIrs Tax TablesH&r Block At Home1040ez Instructions 2012H R Block 2011 ReturnWww Taxact Com 2011IrsfreetaxFiling 1040xFree Tax FormAmended ReturnsFree EfileHr Block MilitaryTaxes DeductionFree 2011 Tax Return OnlineFile Free Federal And State Tax Return1041ezAmend A 2012 Return

Amended

Amended Publication 3402 - Main Content Table of Contents What is a Limited Liability Company? Classification of an LLC LLCs Classified as Partnerships LLCs Classified as Disregarded Entities LLCs Classified as Corporations Subsequent Elections How To Get More InformationInternal Revenue Service Small Business Administration Other Federal Agencies What is a Limited Liability Company? For purposes of this publication, a limited liability company (LLC) is a business entity organized in the United States under state law. Amended Unlike a partnership, all of the members of an LLC have limited personal liability for its debts. Amended An LLC may be classified for federal income tax purposes as a partnership, corporation, or an entity disregarded as separate from its owner by applying the rules in Regulations section 301. Amended 7701-3. Amended The information in this publication applies to LLCs in general, and different rules may apply to special situations, including banks, insurance companies, or nonprofit organizations that are LLCs or that own LLCs. Amended Check your state's requirements and the federal tax regulations for further information. Amended Classification of an LLC Default classification rules. Amended   An LLC with at least two members is classified as a partnership for federal income tax purposes. Amended An LLC with only one member is treated as an entity disregarded as separate from its owner for income tax purposes (but as a separate entity for purposes of employment tax and certain excise taxes). Amended Also, an LLC's federal tax classification can subsequently change under certain default rules discussed later. Amended Elected classification. Amended   If an LLC does not choose to be classified under the above default classifications, it can elect to be classified as an association taxable as a corporation or as an S corporation. Amended After an LLC has determined its federal tax classification, it can later elect to change that classification. Amended For details, see Subsequent Elections, later. Amended LLCs Classified as Partnerships If an LLC has at least two members and is classified as a partnership, it generally must file Form 1065, U. Amended S. Amended Return of Partnership Income. Amended Generally, an LLC classified as a partnership is subject to the same filing and reporting requirements as partnerships. Amended For certain purposes, members of an LLC are treated as limited partners in a limited partnership. Amended For example, LLC members are treated as limited partners for purposes of material participation under the passive activity limitation rules (see Temporary Regulation section 1. Amended 469-5T(e)). Amended See the Instructions for Form 1065 for reporting rules that apply specifically to LLCs. Amended Member manager. Amended   Only a member manager of an LLC can sign the partnership tax return. Amended And only a member manager can represent the LLC as the tax matters partner under the consolidated audit proceedings in sections 6221 through 6234. Amended A member manager is any owner of an interest in the LLC who, alone or together with others, has the continuing authority to make the management decisions necessary to conduct the business for which the LLC was formed. Amended If there are no elected or designated member managers, each owner is treated as a member manager. Amended Change in default classification. Amended   If the number of members in an LLC classified as a partnership is reduced to only one member, it becomes an entity disregarded as separate from its owner under Regulations section 301. Amended 7701-3(f)(2). Amended However, if the LLC has made an election to be classified as a corporation (discussed later) and that elective classification is in effect at the time of the change in membership, the default classification as a disregarded entity will not apply. Amended   Other tax consequences of a change in membership, such as recognition of gain or loss, are determined by the transactions through which an interest in the LLC is acquired or disposed of. Amended If a partnership that becomes a disregarded entity as a result of a decrease in the number of members makes an election to be classified as a corporation, the applicable deemed transactions discussed under Subsequent Elections, later, apply. Amended Example 1. Amended Ethel and Francis are members of an LLC classified as a partnership for federal tax purposes. Amended Each holds an equal membership interest. Amended The LLC does not hold any unrealized receivables or substantially appreciated inventory. Amended Ethel sells her entire interest in the LLC to Francis for $10,000. Amended After the sale, the business is continued by the LLC, which is owned solely by Francis. Amended No entity classification election is made after the sale to treat the LLC as a corporation for federal tax purposes. Amended The partnership terminates when Francis buys Ethel's entire interest. Amended Ethel must treat the transaction as the sale of a partnership interest and must report gain or loss, if any, resulting from the sale of her partnership interest. Amended For purposes of determining the tax treatment of Francis, the partnership is deemed to make a liquidating distribution of all of its assets to Ethel and Francis, and after this distribution, Francis is treated as acquiring the assets deemed to have been distributed to Ethel in liquidation of Ethel's partnership interest. Amended Francis's basis in the assets attributable to Ethel's one-half interest in the partnership is $10,000, the purchase price for Ethel's partnership interest. Amended Upon the termination of the partnership, Francis is considered to receive a distribution of those assets attributable to Francis's former interest in the partnership. Amended Francis must recognize gain or loss, if any, on the deemed distribution of the assets to the extent required by Internal Revenue Code section 731(a). Amended See Partnership Distributions in Publication 541. Amended Example 2. Amended George and Henrietta are members of an LLC classified as a partnership for federal tax purposes. Amended Each holds an equal membership interest. Amended The LLC does not hold any unrealized receivables or substantially appreciated inventory. Amended George and Henrietta each sell their entire interests in the LLC to Ian, an unrelated person, in exchange for $10,000. Amended After the sale, the business is continued by the LLC, which is owned solely by Ian. Amended No entity classification election is made after the sale to treat the LLC as a corporation for federal tax purposes. Amended The partnership terminates when Ian purchases the entire interests of George and Henrietta in the LLC. Amended George and Henrietta must report gain or loss, if any, resulting from the sale of their partnership interests. Amended For purposes of classifying the acquisition by Ian, the partnership is deemed to make a liquidating distribution of its assets to George and Henrietta. Amended Immediately following this distribution, Ian is deemed to acquire, by purchase, all of the former partnership's assets. Amended   For more details on the preceding two examples, see Revenue Ruling 99-6, 1999-6 I. Amended R. Amended B. Amended 6. Amended You can find Revenue Ruling 99-6 at www. Amended irs. Amended gov/pub/irs-irbs/irb99-06. Amended pdf. Amended LLCs Classified as Disregarded Entities If an LLC has only one member and is classified as an entity disregarded as separate from its owner, its income, deductions, gains, losses, and credits are reported on the owner's income tax return. Amended For example, if the owner of the LLC is an individual, the LLC's income and expenses would be reported on the following schedules filed with the owner's Form 1040: Schedule C, Profit or Loss from Business (Sole Proprietorship); Schedule C-EZ, Net Profit From Business (Sole Proprietorship); Schedule E, Supplemental Income and Loss; or Schedule F, Profit or Loss From Farming. Amended Employment tax and certain excise taxes. Amended   A single-member LLC that is classified as a disregarded entity for income tax purposes is treated as a separate entity for purposes of employment tax and certain excise taxes. Amended For wages paid after January 1, 2009, the single-member LLC is required to use its name and employer identification number (EIN) for reporting and payment of employment taxes. Amended A single-member LLC is also required to use its name and EIN to register for excise tax activities on Form 637; pay and report excise taxes reported on Forms 720, 730, 2290, and 11-C; and claim any refunds, credits, and payments on Form 8849. Amended See the employment and excise tax returns for more information. Amended Self-employment tax rule for disregarded entity LLCs. Amended   An individual owner of a single-member LLC classified as a disregarded entity is not an employee of the LLC. Amended Instead, the owner is subject to tax on the net earnings from self-employment of the LLC which is treated in the same manner as a sole-proprietorship. Amended Example 3. Amended LLC is a disregarded entity owned by Irene. Amended LLC has three employees (Kent, Patricia, and Tex) and pays wages. Amended LLC is treated as an entity separate from its owner for purposes of employment taxes. Amended For the wages paid to Kent, Patricia, and Tex, LLC is liable for income tax withholding, Federal Insurance Contributions Act (FICA) taxes, and Federal Unemployment Tax Act (FUTA) taxes. Amended In addition, LLC must file under its name and EIN the applicable employment tax returns; make timely employment tax deposits; and file with the Social Security Administration and furnish to LLC's employees (Kent, Patricia, and Tex) Forms W-2, Wage and Tax Statement. Amended Irene is self-employed for purposes of the self-employment tax. Amended Thus, Irene is subject to self-employment tax on her net earnings from self-employment with respect to LLC's activities. Amended Irene is not an employee of LLC for purposes of employment taxes. Amended Because LLC is treated as a sole proprietorship of Irene for income tax purposes, Irene must report the income and expenses from LLC on her Schedule C. Amended Irene will figure the tax due on her net earnings from self-employment on Schedule SE. Amended Irene can also deduct one-half of her self-employment tax on line 27 of her Form 1040. Amended Taxpayer identification number. Amended   For all income tax purposes, a single-member LLC classified as a disregarded entity must use the owner's social security number (SSN) or EIN. Amended This includes all information returns and reporting related to income tax. Amended For example, if a disregarded entity LLC that is owned by an individual is required to provide a Form W-9, Request for Taxpayer Identification Number and Certification, the LLC must provide the owner's SSN or EIN, not the LLC's EIN. Amended   However, most new single-member LLCs classified as a disregarded entity will need to obtain an EIN for the LLC. Amended An LLC will need an EIN if it has any employees or if it will be required to file any of the excise tax forms listed above (see Employment tax and certain excise taxes earlier). Amended See Form SS-4, Application for Employer Identification Number, for information on applying for an EIN. Amended Change in default classification. Amended   If a single-member LLC classified as a disregarded entity for income tax purposes acquires an additional member, it becomes a partnership under Regulations section 301. Amended 7701-3(f)(2). Amended However, if the LLC has made an election to be classified as a corporation (discussed later) and that elective classification is in effect at the time of the change in membership, the default classification as a partnership will not apply. Amended   Other tax consequences of a change in membership, such as recognition of gain or loss, are determined by the transactions through which an interest in the LLC is acquired or disposed of. Amended If a disregarded entity that becomes a partnership as a result of an increase in the number of members makes an election to be classified as a corporation, the applicable deemed transactions discussed in Subsequent Elections, later, apply. Amended Example 4. Amended Bart, who is not related to Alain, buys 50% of Alain's interest in an LLC that is a disregarded entity for $5,000. Amended Alain does not contribute any portion of the $5,000 to the LLC. Amended Alain and Bart continue to operate the business of the LLC as co-owners of the LLC. Amended The LLC is converted to a partnership when the new member, Bart, buys an interest in the disregarded entity from the owner, Alain. Amended Bart's buying a 50% interest in Alain's ownership interest in the LLC is treated as Bart's buying a 50% interest in each of the LLC's assets, which are treated as owned directly by Alain for federal income tax purposes. Amended Immediately thereafter, Alain and Bart are treated as contributing their respective interests in those assets to a partnership in exchange for ownership interests in the partnership. Amended Alain recognizes gain or loss from the deemed sale to Bart of the 50% interest in the assets. Amended Neither Alain nor Bart recognizes any gain or loss as a result of the deemed contribution of the assets to the partnership. Amended Example 5. Amended Charles, who is not related to Danielle, contributes $10,000 to an LLC owned by Danielle for a 50% ownership interest in the LLC. Amended The LLC uses all of the contributed cash in its business. Amended Charles and Danielle continue to operate the business of the LLC as co-owners of the LLC. Amended The LLC is converted from a disregarded entity to a partnership when Charles contributes cash to the LLC. Amended Charles's contribution is treated as a contribution to a partnership in exchange for an ownership interest in the partnership. Amended Danielle is treated as contributing all of the assets of the LLC to the partnership in exchange for a partnership interest. Amended Neither Charles nor Danielle recognizes gain or loss as a result of the conversion of the disregarded entity to a partnership. Amended   For more details on the preceding two examples, see Revenue Ruling 99-5, 1999-6 I. Amended R. Amended B. Amended 8. Amended You can find Revenue Ruling 99-5 at www. Amended irs. Amended gov/pub/irs-irbs/irb99-06. Amended pdf. Amended LLCs Classified as Corporations An LLC with either a single member or more than one member can elect to be classified as a corporation rather than be classified as a partnership or disregarded entity under the default rules discussed earlier. Amended File Form 8832, Entity Classification Election, to elect classification as a C corporation. Amended File Form 2553, Election by a Small Business Corporation, to elect classification as an S corporation. Amended LLCs electing classification as an S corporation are not required to file Form 8832 to elect classification as a corporation before filing Form 2553. Amended By filing Form 2553, an LLC is deemed to have elected classification as a corporation in addition to the S corporation classification. Amended If the LLC elects to be classified as a corporation by filing Form 8832, a copy of the LLC's Form 8832 must be attached to the federal income tax return of each direct and indirect owner of the LLC for the tax year of the owner that includes the date on which the election took effect. Amended Example 6. Amended Classification as a corporation without an S election. Amended Wanda and Sylvester are members of an LLC. Amended They agree that the LLC should be classified as a corporation but do not want to elect to have the LLC be treated as an S corporation. Amended The LLC must file Form 8832. Amended Example 7. Amended Classification as a corporation with an S election. Amended Evelyn and Carol are members of an LLC. Amended They agree that the LLC should be classified as an S corporation. Amended The LLC must file Form 2553 instead of Form 8832. Amended If the LLC is classified as a corporation, it must file a corporation income tax return. Amended If it is a C corporation, it is taxed on its taxable income and distributions to the members are includible in the members' gross income to the extent of the corporation's earnings and profits (double taxation). Amended If it is an S corporation, the corporation is generally not subject to any income tax and the income, deductions, gains, losses, and credits of the corporation “pass through” to the members. Amended Corporations generally file either: Form 1120, U. Amended S. Amended Corporation Income Tax Return; or Form 1120S, U. Amended S. Amended Income Tax Return for an S Corporation. Amended For more information on the income taxation of corporations and their shareholders, see Publication 542, Corporations. Amended For more information on the income taxation of S corporations and their shareholders, see the Instructions for Form 1120S, U. Amended S. Amended Income Tax Return for an S Corporation. Amended Subsequent Elections An LLC can elect to change its classification. Amended Generally, once an LLC has elected to change its classification, it cannot elect again to change it classification during the 60 months after the effective date of the election. Amended An election by a newly formed LLC that is effective on the date of formation is not considered a change for purposes of this limitation. Amended For more information and exceptions, see Regulations section 301. Amended 7701-3(c) and the Form 8832 instructions. Amended An election to change classification can have significant tax consequences based on the following transactions that are deemed to occur as a result of the election. Amended Partnership to corporation. Amended   An election to change classification from a partnership to a corporation will be treated as if the partnership contributed all of its assets and liabilities to the corporation in exchange for stock and the partnership then immediately liquidated by distributing the stock to its partners. Amended   For more information, see Partnership Distributions in Publication 541 and Property Exchanged for Stock in Publication 542. Amended Corporation to partnership. Amended   An election to change classification from a corporation to a partnership will be treated as if the corporation distributed all of its assets and liabilities to its shareholders in liquidation and the shareholders then immediately contributed all of the distributed assets and liabilities to a new partnership. Amended   For more information, see Contribution of Property in Publication 541 and Distributions to Shareholders in Publication 542. Amended Corporation to disregarded entity. Amended   An election to change classification from a corporation to a disregarded entity will be treated as if the corporation distributed all of its assets and liabilities to its single owner in liquidation. Amended   For more information, see Distributions to Shareholders in Publication 542. Amended Disregarded entity to corporation. Amended   An election to change classification from a disregarded entity to a corporation will be treated as if the owner of the disregarded entity contributed all of the assets and liabilities to the corporation in exchange for stock. Amended   For more information, see Property Exchanged for Stock in Publication 542. Amended How To Get More Information This section describes the help the IRS and other federal agencies offer to taxpayers who operate their own businesses. Amended Internal Revenue Service You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get information from the IRS in several ways. Amended By selecting the method that is best for you, you will have quick and easy access to tax help. Amended Contacting your Taxpayer Advocate. Amended   The Taxpayer Advocate Service (TAS) is an independent organization within the IRS whose employees assist taxpayers who are experiencing economic harm, who are seeking help in resolving tax problems that have not been resolved through normal channels, or who believe that an IRS system or procedure is not working as it should. Amended   You can contact the TAS by calling the TAS toll-free case intake line at 1-877-777-4778 or TTY/TDD 1-800-829-4059 to see if you are eligible for assistance. Amended You can also call or write to your local taxpayer advocate, whose phone number and address are listed in your local telephone directory and in Publication 1546, Taxpayer Advocate Service — Your Voice at the IRS. Amended You can file Form 911, Request for Taxpayer Advocate Service Assistance (And Application for Taxpayer Assistance Order), or ask an IRS employee to complete it on your behalf. Amended For more information, go to www. Amended irs. Amended gov/advocate. Amended Low Income Taxpayer Clinics (LITCs). Amended   LITCs are independent organizations that provide low income taxpayers with representation in federal tax controversies with the IRS for free or for a nominal charge. Amended The clinics also provide tax education and outreach for taxpayers with limited English proficiency or who speak English as a second language. Amended Publication 4134, Low Income Taxpayer Clinic List, provides information on clinics in your area. Amended It is available at www. Amended irs. Amended gov or at your local IRS office. Amended Small business workshops. Amended   Small business workshops are designed to help the small business owner understand and fulfill their federal tax responsibilities. Amended Workshops are sponsored and presented by IRS partners who are federal tax specialists. Amended Workshop topics vary from a general overview of taxes to more specific topics such as recordkeeping and retirement plans. Amended Although most are free, some workshops have fees associated with them. Amended Any fees charged for a workshop are paid to the sponsoring organization, not the IRS. Amended   For more information, visit www. Amended irs. Amended gov/businesses/small. Amended Subscribe to e-news for small businesses. Amended   Join the e-News for Small Businesses mailing list to receive updates, reminders, and other information useful to small business owners and self employed individuals. Amended Visit the website at www. Amended irs. Amended gov/businesses/small and click on “Subscribe to e-News. Amended ” Free tax services. Amended   To find out what services are available, get Publication 910, IRS Guide to Free Tax Services. Amended It contains a list of free tax publications and describes other free tax information services, including tax education and assistance programs and a list of TeleTax topics. Amended   Accessible versions of IRS published products are available on request in a variety of alternative formats for people with disabilities. Amended Internet. Amended You can access the IRS website at www. Amended irs. Amended gov 24 hours a day, 7 days a week, to: E-file your return. Amended Find out about commercial tax preparation and e-file services available free to eligible taxpayers. Amended Check the status of your refund. Amended Go to www. Amended irs. Amended gov and click on Where's My Refund. Amended Wait at least 72 hours after the IRS acknowledges receipt of your e-filed return, or 3 to 4 weeks after mailing a paper return. Amended If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). Amended Have your tax return available so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Amended Download forms, instructions, and publications. Amended Order IRS products online. Amended Research your tax questions online. Amended Search publications online by topic or keyword. Amended View Internal Revenue Bulletins (IRBs) published in the last few years. Amended Figure your withholding allowances using the withholding calculator online at www. Amended irs. Amended gov/individuals. Amended Determine if Form 6251 must be filed using our Alternative Minimum Tax (AMT) Assistant. Amended Sign up to receive local and national tax news by email. Amended Get information on starting and operating a small business. Amended Phone. Amended Many services are available by phone. Amended Ordering forms, instructions, and publications. Amended Call 1-800-829-3676 to order current-year forms, instructions, and publications, and prior-year forms and instructions. Amended You should receive your order within 10 days. Amended Asking tax questions. Amended Call the IRS with your tax questions at 1-800-829-1040. Amended Solving problems. Amended You can get face-to-face help solving tax problems every business day in IRS Taxpayer Assistance Centers. Amended An employee can explain IRS letters, request adjustments to your account, or help you set up a payment plan. Amended Call your local Taxpayer Assistance Center for an appointment. Amended To find the number, go to www. Amended irs. Amended gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. Amended TTY/TDD equipment. Amended If you have access to TTY/TDD equipment, call 1-800-829-4059 to ask tax questions or to order forms and publications. Amended TeleTax topics. Amended Call 1-800-829-4477 to listen to pre-recorded messages covering various tax topics. Amended Refund information. Amended To check the status of your 2009 refund, call 1-800-829-1954 during business hours or 1-800-829-4477 (automated refund information 24 hours a day, 7 days a week). Amended Wait at least 72 hours after the IRS acknowledges receipt of your e-filed return, or 3 to 4 weeks after mailing a paper return. Amended If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). Amended Have your 2009 tax return available so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Amended Refunds are sent out weekly on Fridays. Amended If you check the status of your refund and are not given the date it will be issued, please wait until the next week before checking back. Amended Evaluating the quality of our telephone services. Amended To ensure IRS representatives give accurate, courteous, and professional answers, we use several methods to evaluate the quality of our telephone services. Amended One method is for a second IRS representative to listen in on or record random telephone calls. Amended Another is to ask some callers to complete a short survey at the end of the call. Amended Walk-in. Amended Many products and services are available on a walk-in basis. Amended Products. Amended You can walk in to many post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Amended Some IRS offices, libraries, grocery stores, copy centers, city and county government offices, credit unions, and office supply stores have a collection of products available to print from a CD or photocopy from reproducible proofs. Amended Also, some IRS offices and libraries have the Internal Revenue Code, regulations, Internal Revenue Bulletins, and Cumulative Bulletins available for research purposes. Amended Services. Amended You can walk in to your local Taxpayer Assistance Center every business day for personal, face-to-face tax help. Amended An employee can explain IRS letters, request adjustments to your tax account, or help you set up a payment plan. Amended If you need to resolve a tax problem, have questions about how the tax law applies to your individual tax return, or you are more comfortable talking with someone in person, visit your local Taxpayer Assistance Center where you can spread out your records and talk with an IRS representative face-to-face. Amended No appointment is necessary—just walk in. Amended If you prefer, you can call your local Center and leave a message requesting an appointment to resolve a tax account issue. Amended A representative will call you back within 2 business days to schedule an in-person appointment at your convenience. Amended If you have an ongoing, complex tax account problem or a special need, such as a disability, an appointment can be requested. Amended All other issues will be handled without an appointment. Amended To find the number of your local office, go to www. Amended irs. Amended gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. Amended Mail. Amended You can send your order for forms, instructions, and publications to the address below. Amended You should receive a response within 10 days after your request is received. Amended Internal Revenue Service1201 N. Amended Mitsubishi MotorwayBloomington, IL 61705–6613 DVD for tax products. Amended You can order Publication 1796, IRS Tax Products DVD, and obtain: Current-year forms, instructions, and publications. Amended Prior-year forms, instructions, and publications. Amended Tax Map: an electronic research tool and finding aid. Amended Tax law frequently asked questions. Amended Tax Topics from the IRS telephone response system. Amended Internal Revenue Code—Title 26 of the U. Amended S. Amended Code. Amended Fill-in, print, and save features for most tax forms. Amended Internal Revenue Bulletins. Amended Toll-free and email technical support. Amended Two releases during the year. Amended – The first release will ship the beginning of January. Amended – The final release will ship the beginning of March. Amended Purchase the DVD from National Technical Information Service (NTIS) at www. Amended irs. Amended gov/cdorders for $30 (no handling fee) or call 1-877-CDFORMS (1-877-233-6767) toll free to buy the DVD for $30 (plus a $6 handling fee). Amended Small Business Administration The Small Business Administration (SBA) offers training and educational programs, counseling services, financial programs, and contract assistance for small business owners. Amended The SBA also has publications and videos on a variety of business topics. Amended The following briefly describes assistance provided by the SBA. Amended Small Business Development Centers (SBDCs). Amended   SBDCs provide counseling, training, and technical services to current and prospective small business owners who cannot afford the services of a private consultant. Amended Help is available when beginning, improving, or expanding a small business. Amended Business Information Centers (BICs). Amended   BICs offer a small business reference library, management video tapes, and computer technology to help plan a business. Amended BICs also offer one-on-one assistance. Amended Individuals who are in business or are interested in starting a business can use BICs as often as they wish at no charge. Amended Service Corps of Retired Executives (SCORE). Amended   SCORE provides small business counseling and training to current and prospective small business owners. Amended SCORE is made up of current and former business people who offer their expertise and knowledge to help people start, manage, and expand a small business. Amended SCORE also offers a variety of small business workshops. Amended    Internet. Amended You can visit the SBA website at www. Amended sba. Amended gov. Amended While visiting the SBA website, you can find a variety of information of interest to small business owners. Amended    Phone. Amended Call the SBA Answer Desk at 1-800-UASK-SBA (1-800-827-5722) for general information about programs available to assist small business owners. Amended    Walk-in. Amended You can walk in to a Small Business Development Center or Business Information Center to request assistance with your small business. Amended To find the location nearest you, visit the SBA website or call the SBA Answer Desk. Amended Other Federal Agencies Other federal agencies also publish publications and pamphlets to assist small businesses. Amended Most of these are available from the Superintendent of Documents at the Government Printing Office. Amended You can get information and order these publications and pamphlets in several ways. Amended Internet. Amended You can visit the GPO website at www. Amended access. Amended gpo. Amended gov. Amended Mail. Amended Write to the GPO at the following address. Amended Superintendent of DocumentsU. Amended S. Amended Government Printing OfficeP. Amended O. Amended Box 979050St. Amended Louis, MO 63917-9000 Phone. Amended Call the GPO toll-free at 1-866-512-1800 or at 202-512-1800 from the Washington, DC area. Amended Prev  Up  Next   Home   More Online Publications
Print - Click this link to Print this page

Land Mobile Radio (LMR) Subscriber Unit

***Government One-Time Registration***

Welcome to the Land Mobile Radio (LMR) Subscriber Unit web page. On this site, you will find information and guidance to help you fulfill LMR Project 25 Subscriber Unit Radio equipment requirements through the LMR subscriber unit contracts.

The Government requires effective, reliable, and secure wireless communications capabilities to successfully carry out a wide range of enforcement, protective, and security missions. LMR subscriber units are a primary tool for the Government to communicate in the field. LMR equipment and systems provide command, control, and communications capabilities not available on commercial wireless networks. While the Government relies on commercial wireless services for routine voice communications, private LMR networks provide a unique level of reliability and privacy required by enforcement, protective, and security missions.

The LMR subscriber unit contracts provide standards-based and standards-compliant LMR equipment to enable communications interoperability with similarly configured equipment. The TIA/EIA-102 suite of standards, also known as Project 25, provides the basis for the required LMR technical specifications. The TIA/EIA-102 standards, also known as the Project 25 Standards, specify radio equipment that allows for a smooth migration from analog operating in the 25 kHz bandwidth to 12.5 kHz digital operations. TIA/EIA-102 standards also provide for a “Common Air Interface” (CAI) across which radio equipment from multiple contractors will interoperate.

The LMR subscriber unit equipment contracts are for portable and mobile radios, portable repeaters and portable base stations, encryption key loaders and ancillary support accessories. The contracts provide standards-based equipment to capitalize on contractor and product diversity and to provide effective solutions for the Government.

LMR Overview

LMR Contractors - List of Contractors under the Land Mobile Radio Program and information regarding their contracts (CLINs, Modifications, DUNS number, contractor points of contact and links to contractor websites).

Government Point of Contact

Contract - the general terms and conditions of the LMR contracts. Individual modifications to the contracts can be found under the link to LMR Contractors.

LMR Authorized Users

Customer Information - Step by Step Guide and Ordering Guide to provide information on how to use our contracts.

Frequently Asked Questions

508 Requirements/Policy - The requirements for the Section 508 of the Rehabilitation Act Amendments of 1998 (25 U.S.C. paragraph 794 (d)) has been waived based on the National Security Intelligence Exception in the calss-action waiver of contracts for subscriber unit Land Mobile Radio (LMR) equipment.


Questions about the Procurement information on this site, please contact the webmaster.
Contact the Office of Procurement for other Procurement related questions.

Page Last Reviewed or Updated: 22-Apr-2013

The Amended

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