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Filing An Amended Tax Return

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Filing An Amended Tax Return

Filing an amended tax return Publication 1544(SP) - Main Content Table of Contents ¿Por qué hay que declarar estos pagos? ¿Quién tiene que presentar el Formulario 8300-SP?¿Qué pagos tienen que declararse? ¿Qué es efectivo? Número de identificación del contribuyente (TIN) ¿Qué son transacciones relacionadas? ¿Qué se hace en el caso de transacciones sospechosas? Cuándo, dónde y qué se tiene que presentar Ejemplos Multas y sanciones Cómo Obtener Ayuda con los ImpuestosTalleres de Asistencia Tributaria para Contribuyentes de Bajos Recursos (LITC, por sus siglas en inglés). Filing an amended tax return ¿Por qué hay que declarar estos pagos? A menudo, los contrabandistas y narcotraficantes hacen transacciones de grandes cantidades de efectivo con el propósito de “blanquear” (lavar) dinero proveniente de actividades ilícitas. Filing an amended tax return El término “blanquear” (lavar) significa convertir el dinero “sucio”, u obtenido ilegalmente, en dinero “limpio” (como si fuera obtenido legalmente). Filing an amended tax return El gobierno a menudo puede rastrear el origen de este dinero blanqueado (lavado) mediante los pagos que se declaran. Filing an amended tax return Determinadas leyes aprobadas por el Congreso requieren que se declaren estos pagos. Filing an amended tax return Al cumplir con estas leyes, se proporciona información valiosa para ayudar a poner fin a las operaciones de los evasores de impuestos y los que se benefician del narcotráfico y otras actividades delictivas. Filing an amended tax return La USA Patriot Act (Ley patriota de los Estados Unidos) del año 2001 amplió el alcance de dichas leyes con el propósito de rastrear los fondos usados para llevar a cabo acciones terroristas. Filing an amended tax return ¿Quién tiene que presentar el Formulario 8300-SP? Por regla general, toda persona que se dedique a una ocupación o negocio en los que reciba más de $10,000 en efectivo en una sola transacción, o en varias transacciones relacionadas, tiene que presentar el Formulario 8300-SP. Filing an amended tax return Por ejemplo, es posible que tenga que presentar el Formulario 8300-SP si la ocupación o negocio al cual se dedica es la compraventa de joyas, muebles, barcos, aeronaves o automóviles, si es prestamista, abogado o corredor de bienes raíces, o si se trata de una compañía de seguros o de una agencia de viajes. Filing an amended tax return Las reglas especiales que deben cumplir los secretarios de los tribunales federales o estatales aparecen más adelante bajo Fianza recibida por secretarios de los tribunales. Filing an amended tax return Sin embargo, usted no tiene que presentar el Formulario 8300-SP si la transacción no está relacionada con su ocupación o negocio. Filing an amended tax return Por ejemplo, si es dueño de una joyería y vende su automóvil personal por una cantidad superior a $10,000 en efectivo, no tendrá que presentar el Formulario 8300-SP por esta transacción. Filing an amended tax return Definición de transacción. Filing an amended tax return   Se lleva a cabo una “transacción” cuando: Se venden bienes o propiedades, o se prestan servicios; Se alquila una propiedad; Se intercambia efectivo por otro efectivo; Se contribuye a una cuenta de fideicomiso o a una cuenta en plica (depósito en custodia de un tercero); Se saca o se paga un préstamo; o Se convierte el efectivo en un instrumento negociable, como un cheque o un bono. Filing an amended tax return Definición de persona. Filing an amended tax return   Una “persona” incluye una persona física, una empresa o compañía, una sociedad anónima, una sociedad colectiva, una asociación, un fideicomiso o un caudal hereditario. Filing an amended tax return   A las organizaciones exentas, incluidas las que tienen planes para sus empleados, se las considera también “personas”. Filing an amended tax return Sin embargo, las organizaciones exentas no tienen que presentar el Formulario 8300-SP cuando reciben una donación caritativa superior a $10,000 en efectivo, debido a que dicha donación no la reciben en el transcurso de una ocupación o negocio. Filing an amended tax return Transacciones en el extranjero. Filing an amended tax return   No tiene que presentar el Formulario 8300-SP si toda la transacción (incluyendo la recepción del efectivo) se lleva a cabo fuera de: Los 50 estados de los Estados Unidos, El Distrito de Columbia, Puerto Rico o Una posesión o territorio de los Estados Unidos. Filing an amended tax return Sin embargo, tiene que presentar el Formulario 8300-SP si alguna parte de la transacción (incluyendo la recepción del efectivo) se lleva a cabo en Puerto Rico o en una posesión o territorio de los Estados Unidos y usted está sujeto a las disposiciones del Código Federal de Impuestos Internos. Filing an amended tax return Fianza recibida por los secretarios de los tribunales. Filing an amended tax return   Todo secretario de un tribunal federal o estatal que reciba más de $10,000 en efectivo en concepto de fianza a favor de una persona que ha sido acusada de cualquiera de los delitos penales enumerados a continuación tiene que presentar el Formulario 8300-SP: Todo delito federal relacionado con la ley de control de narcóticos (sustancias controladas), Extorsión (racketeering), Blanqueo (lavado) de dinero y Todo delito estatal que sea considerablemente similar a los mencionados anteriormente en los puntos 1, 2 ó 3. Filing an amended tax return Para obtener más información acerca del reglamento con el que deben cumplir los secretarios de los tribunales, vea la sección 1. Filing an amended tax return 6050I-2 de los Reglamentos Federales del Impuesto Sobre los Ingresos Federales. Filing an amended tax return ¿Qué pagos tienen que declararse? Tiene que presentar el Formulario 8300-SP para declarar el efectivo que le paguen si el mismo: Supera los $10,000, Lo recibió en: Un solo pago en efectivo superior a $10,000, Varios pagos en efectivo recibidos en un período de un año, contado a partir de la fecha en que se hizo el pago inicial, que sumen un total de $10,000 u Otros pagos en efectivo no declarados anteriormente, cuya suma total recibida durante un período de 12 meses sea superior a $10,000. Filing an amended tax return Lo recibió en el curso de su ocupación o negocio, Lo recibió del mismo comprador (o agente) y Lo recibió en una sola transacción o en varias transacciones relacionadas (las cuales se definen más adelante). Filing an amended tax return ¿Qué es efectivo? Efectivo es: El dinero en monedas y billetes de los Estados Unidos (y de cualquier otro país) y Un cheque de cajero, giro bancario, cheque de viajero o giro que se reciba, si tiene un valor nominal de $10,000 o menos y se recibe en: Una transacción que tiene que ser declarada, como se define más adelante o Toda transacción en que a usted le conste que el pagador evita declarar en el Formulario 8300-SP. Filing an amended tax return El efectivo puede incluir un cheque de cajero aunque a éste se le llame “cheque de tesorero” o “cheque bancario”. Filing an amended tax return El efectivo no incluye un cheque girado contra la cuenta bancaria particular de una persona. Filing an amended tax return Un cheque de cajero, giro bancario, cheque de viajero o giro con un valor nominal de más de $10,000 no se considera efectivo. Filing an amended tax return Éstos no se consideran efectivo y usted no tiene que presentar el Formulario 8300-SP cuando los recibe porque, si fueron comprados con dinero en efectivo, el banco u otra institución financiera que los emitió debe presentar el Formulario 104 de la FinCEN para declararlos. Filing an amended tax return Ejemplo 1. Filing an amended tax return Usted es comerciante y se dedica a la compraventa y colección de monedas (numismático). Filing an amended tax return Roberto Coruña le compró monedas de oro por un precio de $13,200. Filing an amended tax return El Sr. Filing an amended tax return Coruña le pagó con $6,200 en moneda estadounidense y un cheque de cajero con un valor nominal de $7,000. Filing an amended tax return El cheque de cajero se considera efectivo. Filing an amended tax return En este caso, ha recibido más de $10,000 en efectivo y tiene que presentar el Formulario 8300-SP para declarar esta transacción. Filing an amended tax return Ejemplo 2. Filing an amended tax return Usted se dedica a la venta de joyas al por menor. Filing an amended tax return María Núñez le compra una joya por $12,000 y le paga con un cheque personal pagadero a usted por la cantidad de $9,600 y con cheques de viajero que ascienden a $2,400. Filing an amended tax return Debido a que el cheque personal no se considera efectivo, usted no ha recibido más de $10,000 en efectivo en la transacción. Filing an amended tax return No tiene que presentar el Formulario 8300-SP. Filing an amended tax return Ejemplo 3. Filing an amended tax return Usted es un comerciante que se dedica a la venta de barcos. Filing an amended tax return Emilia Espinosa le compra un barco por $16,500 y le paga con un cheque de cajero pagadero a usted por dicha cantidad. Filing an amended tax return El cheque de cajero no se considera efectivo, ya que el valor nominal del mismo es más de $10,000. Filing an amended tax return Usted no tiene que presentar el Formulario 8300-SP para declarar esta transacción. Filing an amended tax return Transacciones que se tienen que declarar Una transacción que tiene que declararse es aquélla que consiste en la venta al por menor de alguno de los siguientes: Un artículo de consumo duradero, como un automóvil o un barco. Filing an amended tax return Un artículo de consumo duradero es una propiedad que no es un terreno o un edificio y que: Es apropiado para uso personal, Se espera que dure por lo menos un año bajo uso normal, Tiene un precio de venta mayor de $10,000 y Se puede ver o tocar (propiedad tangible). Filing an amended tax return Por ejemplo, un automóvil cuyo valor es $20,000 es un artículo de consumo duradero, pero un camión de descarga (volquete) o maquinaria utilizada en una fábrica con un valor de $20,000 no lo es. Filing an amended tax return El automóvil es un artículo de consumo duradero aún cuando lo venda a un comprador para uso en una ocupación o negocio. Filing an amended tax return Un artículo coleccionable (por ejemplo, una obra de arte, alfombra, antigüedad, metal, piedra preciosa, sello o moneda). Filing an amended tax return Un viaje o entretenimiento, si el precio total de venta de todos los artículos vendidos para el mismo viaje o evento de entretenimiento en una sola transacción (o varias transacciones relacionadas) es más de $10,000. Filing an amended tax return Al calcular el precio total de venta de todos los artículos vendidos para un viaje o evento de entretenimiento, incluya el precio de venta de los artículos vendidos, como pasajes de avión, habitaciones de hotel y boletos de entrada. Filing an amended tax return Ejemplo. Filing an amended tax return Usted es agente de viajes. Filing an amended tax return Su cliente, Eduardo Juanes, le solicita que flete un avión de pasajeros con el propósito de llevar a un grupo de personas a un evento deportivo en otra ciudad. Filing an amended tax return Además, le solicita que reserve habitaciones en un hotel y boletos de entrada al evento deportivo para los miembros del grupo. Filing an amended tax return El Sr. Filing an amended tax return Juanes le paga a usted con dos giros por un valor de $6,000 cada uno. Filing an amended tax return En esta transacción usted ha recibido más de $10,000 en efectivo y, por lo tanto, tiene que presentar el Formulario 8300-SP. Filing an amended tax return Ventas al por menor. Filing an amended tax return   El término “ventas al por menor” significa toda venta hecha en el transcurso de un negocio u ocupación, principalmente las ventas al consumidor final. Filing an amended tax return   Por lo tanto, si su negocio u ocupación es principalmente de ventas al consumidor final, todas las ventas que haga en el transcurso de su ocupación o negocio son ventas al por menor. Filing an amended tax return Esto incluye toda venta de artículos para reventa. Filing an amended tax return Agente o intermediario. Filing an amended tax return   Una transacción que debe declararse incluye la venta al por menor de los artículos que aparecen en los puntos 1, 2 ó 3 de la lista anterior, aunque el pago haya sido recibido por un agente u otro intermediario en vez de directamente por el vendedor. Filing an amended tax return Excepción a la definición del término “efectivo” No se clasifican como efectivo un cheque de cajero, giro bancario, cheque de viajero o giro que usted reciba en una transacción que tenga que declararse, si una de las siguientes excepciones le corresponde: Excepción en el caso de ciertos préstamos bancarios. Filing an amended tax return   No se clasifican como efectivo un cheque de cajero, giro bancario, cheque de viajero o giro si provienen de un préstamo bancario. Filing an amended tax return Como prueba de que se obtuvieron de un préstamo bancario, puede usar una copia del contrato del préstamo, un documento escrito, instrucciones del banco acerca del gravamen u otra prueba similar. Filing an amended tax return Ejemplo. Filing an amended tax return Usted es concesionario de automóviles. Filing an amended tax return Le vende un automóvil a Carlota Blanco por $11,500. Filing an amended tax return La Srta. Filing an amended tax return Blanco le pagó a usted $2,000 en moneda estadounidense y le entregó un cheque de cajero por $9,500, pagadero a usted y a ella. Filing an amended tax return Se sabe que el cheque de cajero proviene de un préstamo bancario porque contiene instrucciones para que se le registre un gravamen al automóvil como garantía de pago del préstamo y, por lo tanto, el cheque de cajero no se considera efectivo. Filing an amended tax return No tiene que presentar el Formulario 8300-SP en este caso. Filing an amended tax return Excepción en el caso de ciertas ventas a plazos. Filing an amended tax return   No se considera efectivo un cheque de cajero, giro bancario, cheque de viajero o giro, si el mismo se recibe como el pago de un pagaré o de un contrato de ventas a plazos (incluido un contrato de arrendamiento que se considera una venta para propósitos del impuesto federal). Filing an amended tax return Sin embargo, esta excepción le corresponde solamente si: Usa pagarés o contratos similares en otras ventas a consumidores en el transcurso normal de su negocio u ocupación y El total de pagos que reciba como producto de la venta el sexagésimo (60) día después de la fecha en que se efectúe la venta o antes, asciende a un 50% o menos del precio de compra. Filing an amended tax return Excepción en el caso de ciertos planes de pagos iniciales. Filing an amended tax return   No se considera efectivo un cheque de cajero, giro bancario, cheque de viajero o giro si lo recibió como pago por un artículo de consumo duradero o coleccionable y, además, se dan todas las condiciones siguientes: Lo recibe conforme a un plan de pagos que requiere: Uno o más pagos iniciales y El pago del saldo del precio de la compra en la fecha de la venta. Filing an amended tax return Lo recibe más de 60 días antes de la fecha de la venta. Filing an amended tax return Durante el transcurso normal de su ocupación o negocio, usa planes de pagos con las mismas condiciones (o similares) cuando hace ventas a consumidores. Filing an amended tax return Excepción en el caso de viajes y entretenimiento. Filing an amended tax return   No se considera efectivo un cheque de cajero, giro bancario, cheque de viajero o giro recibido para un viaje o entretenimiento, si se dan todas las condiciones siguientes: Lo recibe conforme a un plan de pagos que requiere: Uno o más pagos iniciales y Que el saldo del precio de compra se pague antes de que se proporcione el artículo de viaje o entretenimiento (como el precio de un pasaje aéreo). Filing an amended tax return Lo recibe más de 60 días antes de la fecha en la cual vence el pago final. Filing an amended tax return Durante el transcurso normal de su ocupación o negocio, usa planes de pagos con las mismas condiciones (o similares) cuando hace ventas a consumidores. Filing an amended tax return Número de identificación del contribuyente (TIN) Tiene que proveer el número correcto de identificación del contribuyente (TIN, por sus siglas en inglés) de la(s) persona(s) de la(s) cual(es) recibe el efectivo. Filing an amended tax return Si la transacción se hace en representación de otra(s) persona(s), usted tiene que proveer el número de identificación del contribuyente de esa(s) persona(s). Filing an amended tax return Si no sabe cuál es el número de identificación del contribuyente de la(s) persona(s), tiene que pedírselo. Filing an amended tax return Usted podría estar sujeto a multas o sanciones por no incluir el número de identificación del contribuyente o por incluir un número incorrecto. Filing an amended tax return Hay tres tipos de número de identificación del contribuyente: El número de identificación de una persona física, incluida una persona que es dueña única de un negocio, es su número de Seguro Social (SSN, por sus siglas en inglés). Filing an amended tax return El número de identificación del contribuyente de una persona que es extranjera y no residente, pero necesita dicho número y no tiene derecho a obtener un número de Seguro Social, es el número de identificación del contribuyente individual (ITIN, por sus siglas en inglés) expedido por el IRS. Filing an amended tax return Un número de identificación del contribuyente individual consta de nueve dígitos, similar a un número de Seguro Social. Filing an amended tax return El número de identificación del contribuyente individual de otras personas, incluidas las sociedades anónimas, sociedades colectivas y caudales hereditarios, es el número de identificación del empleador (EIN, por sus siglas en inglés). Filing an amended tax return Excepción. Filing an amended tax return    Usted no está obligado a proporcionar el TIN de un extranjero no residente o una organización extranjera si dicha persona u organización extranjera: No recibe ingresos que estén realmente relacionados con la operación de una ocupación o negocio en los Estados Unidos; No tiene oficina o lugar de negocios, ni agente financiero o agente pagador en los Estados Unidos; No presenta una declaración de impuestos federales; No proporciona un certificado de retención de impuestos, el cual se describe en la sección 1. Filing an amended tax return 1441-1(e)(2) ó (3) ó 1. Filing an amended tax return 1441-5(c)(2)(iv) ó (3)(iii), según se exija en la sección 1. Filing an amended tax return 1441-1(e)(4)(vii); No tiene que proporcionar el TIN en una declaración escrita ni en ningún otro documento obligatorio conforme a la sección 897 o la sección 1445 de los reglamentos de los impuestos sobre el ingreso o En el caso de un extranjero no residente, el mismo no ha optado por presentar una declaración conjunta de impuesto federal sobre los ingresos con su cónyuge, que es ciudadano estadounidense o residente de los Estados Unidos. Filing an amended tax return ¿Qué son transacciones relacionadas? Las transacciones que se lleven a cabo entre un comprador (o un agente del comprador) y un vendedor en un período de 24 horas son transacciones relacionadas. Filing an amended tax return Si usted recibe de un mismo comprador más de $10,000 en efectivo en dos o más transacciones en un período de 24 horas, tiene que tratar las transacciones como una sola transacción y declarar los pagos en el Formulario 8300-SP. Filing an amended tax return Por ejemplo, si en un mismo día le vende a un cliente dos productos por un valor de $6,000 cada uno y el cliente le paga en efectivo, estas transacciones están relacionadas. Filing an amended tax return Debido a que el total de ambas transacciones asciende a $12,000 (más de $10,000), tiene que presentar el Formulario 8300-SP. Filing an amended tax return Más de 24 horas entre transacciones. Filing an amended tax return   Las transacciones son relacionadas aunque se lleven a cabo en un período de más de 24 horas entre ellas y se tiene conocimiento, o tiene razón para saber, que cada transacción es una de una serie de transacciones relacionadas entre ellas. Filing an amended tax return   Por ejemplo, usted es agente de viajes y un cliente le paga $8,000 en efectivo para un viaje. Filing an amended tax return Dos días más tarde, el mismo cliente le paga $3,000 adicionales en efectivo para incluir a otra persona en el viaje. Filing an amended tax return Estas transacciones están relacionadas y, por lo tanto, tiene que presentar el Formulario 8300-SP para declararlas. Filing an amended tax return ¿Qué se hace en el caso de transacciones sospechosas? Si recibe $10,000 o menos en efectivo, puede presentar voluntariamente el Formulario 8300-SP si la transacción parece ser sospechosa. Filing an amended tax return Una transacción es sospechosa si parece que una persona trata de persuadirlo para no presentar el Formulario 8300-SP o trata de que usted presente un Formulario 8300-SP con información falsa o incompleta, o si hay indicios de una posible actividad ilegal. Filing an amended tax return Si usted tiene alguna sospecha, le instamos a que se comunique lo antes posible con Investigación Penal del IRS (Criminal Investigation) de su localidad. Filing an amended tax return O puede llamar gratis a la línea directa de la FinCEN para instituciones financieras, al 1-866-556-3974. Filing an amended tax return El servicio en esta línea telefónica está disponible en inglés. Filing an amended tax return Cuándo, dónde y qué se tiene que presentar La cantidad que usted reciba, así como cuándo la reciba, determinará cuándo tiene que presentar la declaración. Filing an amended tax return Por lo general, tiene que presentar el Formulario 8300-SP dentro de un plazo de 15 días después de recibir un pago. Filing an amended tax return Si el día en que se vence el plazo para presentar el Formulario 8300-SP (el decimoquinto (15) día o el último día en el que puede presentar el formulario a tiempo) es un sábado, domingo o día feriado oficial, dicho día de vencimiento se pospone hasta el próximo día que no sea sábado, domingo o día feriado oficial. Filing an amended tax return Más de un pago. Filing an amended tax return   En algunas transacciones, el comprador puede acordar con usted pagarle en efectivo a plazos. Filing an amended tax return Si el primer pago es más de $10,000, tiene que presentar el Formulario 8300-SP dentro de un plazo de 15 días. Filing an amended tax return Si el primer pago no excede de $10,000, tiene que sumar el primer pago y todo pago posterior que haya recibido en un período de un año, a partir de la fecha en que recibió el primer pago. Filing an amended tax return Cuando el total de los pagos en efectivo ascienda a más de $10,000, tiene que presentar el Formulario 8300-SP dentro de un plazo de 15 días. Filing an amended tax return   Después de presentar el Formulario 8300-SP, tiene que comenzar a contar de nuevo los pagos en efectivo que reciba de ese comprador. Filing an amended tax return Si recibe de dicho comprador más de $10,000 en pagos adicionales en efectivo dentro de un período de 12 meses, tiene que presentar otro Formulario 8300-SP. Filing an amended tax return Tiene que presentar el formulario dentro de un plazo de 15 días a partir de la fecha en la cual recibió el pago que causó que los pagos adicionales sumaran más de $10,000. Filing an amended tax return   Si ya está obligado a presentar el Formulario 8300-SP y recibe pagos adicionales en un período de 15 días antes de la fecha en que debe presentarlo, puede declarar en un solo formulario todos los pagos recibidos. Filing an amended tax return Ejemplo. Filing an amended tax return El 10 de enero usted recibió un pago de $11,000 en efectivo. Filing an amended tax return Recibió también $4,000 el 15 de febrero, $5,000 el 20 de marzo y $6,000 el 12 de mayo en pagos adicionales en efectivo correspondientes a la misma transacción. Filing an amended tax return Tiene que presentar el Formulario 8300-SP a más tardar el 25 de enero por el pago de $11,000. Filing an amended tax return A más tardar el 27 de mayo, debe presentar un Formulario 8300-SP adicional por los pagos adicionales que suman $15,000. Filing an amended tax return ¿Cómo enmendar un informe?    Si va a enmendar un informe, marque el encasillado 1a, en la parte superior del Formulario 8300-SP. Filing an amended tax return Complete el formulario en su totalidad (de la Parte I a la Parte IV) e incluya la información que está enmendando. Filing an amended tax return No adjunte una copia del informe original. Filing an amended tax return Dónde se presenta el Formulario 8300-SP. Filing an amended tax return   Envíe el formulario por correo a la dirección que aparece en las instrucciones del Formulario 8300-SP. Filing an amended tax return Requisito de entregar una notificación al comprador. Filing an amended tax return   Tiene que entregar una notificación por escrito o por vía electrónica a cada persona cuyo nombre aparezca en algún Formulario 8300-SP que usted tenga que presentar. Filing an amended tax return Puede dar la notificación por vía electrónica únicamente si el receptor acepta recibirla en tal formato. Filing an amended tax return La notificación tiene que incluir el nombre y la dirección de su establecimiento, el nombre y el número de teléfono de la persona de contacto y el total de efectivo recibido de esa persona durante el año que usted tiene que declarar. Filing an amended tax return En dicha notificación, tiene que indicar también que está suministrando esta información al IRS . Filing an amended tax return   Tiene que enviar esta notificación al comprador a más tardar el 31 de enero del año siguiente al año en el cual recibió el efectivo que causó que tuviera que presentar el formulario. Filing an amended tax return Debe guardar durante 5 años una copia de cada Formulario 8300-SP que haya presentado. Filing an amended tax return Ejemplos Ejemplo 1. Filing an amended tax return Patricio Moreno es el gerente de ventas de “Automóviles de Exhibición, Inc. Filing an amended tax return ”. Filing an amended tax return El 6 de enero de 2013, Juana Leal le compra un automóvil nuevo y se lo paga con $18,000 en efectivo. Filing an amended tax return Patricio le pide a Juana que le muestre una identificación con el propósito de obtener los datos necesarios para completar el Formulario 8300-SP. Filing an amended tax return Un Formulario 8300-SP debidamente completado correspondiente a esta transacción aparece al final de esta publicación. Filing an amended tax return Patricio tiene que enviar por correo el Formulario 8300-SP a más tardar el día 21 de enero de 2013 a la dirección que aparece en las instrucciones del mismo. Filing an amended tax return Además, tiene que enviarle a Juana una notificación a más tardar el 31 de enero de 2014. Filing an amended tax return Ejemplo 2. Filing an amended tax return Usemos los mismos datos del Ejemplo 1, pero supongamos que en este caso Juana acordó hacer varios pagos en efectivo de $6,000 cada uno el día 6 de enero, el día 6 de febrero y el día 6 de marzo. Filing an amended tax return Patricio tendrá que presentar un Formulario 8300-SP a más tardar el 21 de febrero (15 días después de recibir la totalidad de los pagos en efectivo que asciendan a más de $10,000 dentro de un período de un año. Filing an amended tax return Patricio no está obligado a declarar los $6,000 restantes recibidos en efectivo, ya que esa cantidad no es más de $10,000. Filing an amended tax return No obstante, puede declararlos si cree que se trata de una transacción sospechosa. Filing an amended tax return Multas y sanciones La ley establece que se impongan multas civiles por no: Presentar un Formulario 8300-SP correcto para la fecha de vencimiento del mismo y Cumplir con el requisito de entregar una notificación a cada persona cuyo nombre aparece en el Formulario 8300-SP. Filing an amended tax return Si usted, a sabiendas, hace caso omiso del requisito de presentar un Formulario 8300-SP correcto para la fecha de vencimiento del mismo, la multa que se le impondrá será la mayor de las dos cantidades siguientes: $25,000 o La cantidad de efectivo que recibió y que estaba obligado a declarar (hasta un máximo de $100,000). Filing an amended tax return La ley establece que se impongan multas y sanciones por: No presentar intencionalmente el Formulario 8300-SP, Presentar intencionalmente un Formulario 8300-SP falso o fraudulento, Impedir o tratar de impedir que se presente el Formulario 8300-SP y Hacer arreglos, ayudar a que se hagan arreglos, o tratar de que se hagan arreglos para que se lleve a cabo una transacción de tal manera que parezca que no es necesario presentar el Formulario 8300-SP. Filing an amended tax return Si intencionalmente no cumple el requisito de presentar el Formulario 8300-SP, podría imponérsele una multa de hasta $250,000 a las personas físicas ($500,000 en el caso de una sociedad anónima) o una condena de hasta 5 años de cárcel, o ambas. Filing an amended tax return Estas cantidades en dólares se imponen de acuerdo a lo estipulado en la sección 3571 del Título 18 del Código de los Estados Unidos. Filing an amended tax return Las sanciones por no presentar el Formulario 8300-SP se pueden imponer también a toda persona (incluso a un pagador) que trate de dificultar o impedir que el vendedor (o el establecimiento comercial) presente un Formulario 8300-SP correcto. Filing an amended tax return Esto incluye todo intento de estructurar la transacción de manera que parezca innecesario presentar el Formulario 8300-SP. Filing an amended tax return “Estructurar” significa dividir una transacción cuantiosa de efectivo en pequeñas transacciones de efectivo. Filing an amended tax return Cómo Obtener Ayuda con los Impuestos Puede obtener ayuda con asuntos relacionados con sus impuestos que no hayan sido aún resueltos, pedir gratuitamente publicaciones y formularios, hacer preguntas acerca de los impuestos, así como obtener más información del IRS de varias maneras. Filing an amended tax return Al seleccionar el método que le resulte mejor, usted tendrá acceso rápido y fácil a ayuda relacionada con los impuestos. Filing an amended tax return Ayuda gratuita con la preparación de la declaración de impuestos. Filing an amended tax return   Existe ayuda gratuita para la preparación de la declaración de impuestos en todo el país con voluntarios capacitados por el IRS. Filing an amended tax return El programa Volunteer Income Tax Assistance (Programa de Ayuda Voluntaria a los Contribuyentes o VITA, por sus siglas en inglés) está diseñado para ayudar a los contribuyentes de bajos recursos y el programa Tax Counseling for the Elderly (Programa de Asesoramiento para las Personas Mayores o TCE, por sus siglas en inglés) está diseñado para ayudar a los contribuyentes de 60 años de edad o más con su declaración de impuestos. Filing an amended tax return En muchas de estas oficinas usted puede presentar la declaración electrónicamente gratis y los voluntarios le informarán sobre los créditos y deducciones a los que quizás tenga derecho. Filing an amended tax return Para ubicar un sitio de ayuda VITA o TCE cerca de usted, visite IRS. Filing an amended tax return gov o llame al 1-800-906-9887 o al 1-800-829-1040. Filing an amended tax return   Como parte del programa TCE, la Asociación Estadounidense de Personas Jubiladas (AARP, por sus siglas en inglés) ofrece el programa de asesoramiento AARP Tax-Aide (Programa de Ayuda Tributaria de la Asociación Estadounidense de Personas Jubiladas). Filing an amended tax return Para ubicar el sitio del programa AARP Tax-Aide más cercano a usted, llame al 1-888-227-7669 o visite el sitio web de la AARP, www. Filing an amended tax return aarp. Filing an amended tax return org/money/taxaide. Filing an amended tax return   Para más información sobre estos programas, visite www. Filing an amended tax return irs. Filing an amended tax return gov/espanol e ingrese la palabra clave “ VITA ” en la esquina superior derecha. Filing an amended tax return La información está disponible en inglés. Filing an amended tax return Internet. Filing an amended tax return Puede tener acceso al sitio web del IRS, en IRS. Filing an amended tax return gov las 24 horas del día, los 7 días a la semana para: Revisar el estado de su reembolso. Filing an amended tax return Visite www. Filing an amended tax return irs. Filing an amended tax return gov/espanol y pulse sobre el enlace “¿Dónde Está mi Reembolso?”. Filing an amended tax return Asegúrese de esperar por lo menos 72 horas después de que el IRS acuse recibo de su declaración presentada por vía electrónica o 3 a 4 semanas después de enviar una declaración en papel. Filing an amended tax return Si presentó el Formulario 8379 junto con su declaración, espere 14 semanas (11 semanas si la presentó electrónicamente). Filing an amended tax return Tenga a mano su declaración de impuestos para poder facilitar su número de Seguro Social, su estado civil para efectos de la declaración y la cantidad exacta en dólares enteros de su reembolso. Filing an amended tax return Presentar la declaración por medio del sistema electrónico e-file. Filing an amended tax return Aprenda sobre programas comerciales para la preparación de la declaración y los servicios e-file gratuitos para los contribuyentes que cumplan los requisitos. Filing an amended tax return Descargar formularios, instrucciones y publicaciones (incluyendo los formularios, instrucciones y publicaciones en audio). Filing an amended tax return Pedir productos del IRS a través de Internet. Filing an amended tax return Buscar información sobre sus preguntas acerca de impuestos en Internet. Filing an amended tax return Buscar publicaciones en Internet por tema o palabra clave. Filing an amended tax return Utilizar el Código de Impuestos Internos, los reglamentos u otras guías oficiales a través de Internet. Filing an amended tax return Ver los Internal Revenue Bulletins (Boletines del IRS, o IRB por sus siglas en inglés) publicados en los últimos años. Filing an amended tax return Calcular los descuentos de la retención usando nuestra calculadora diseñada para este propósito en el sitio web www. Filing an amended tax return irs. Filing an amended tax return gov/individuals. Filing an amended tax return Esta herramienta está disponible en inglés. Filing an amended tax return Saber si tiene que presentar el Formulario 6251, utilizando el Alternative Minimum Tax (AMT) Assistant (Hoja de Cómputo Electrónica para Calcular el Impuesto Mínimo Alternativo). Filing an amended tax return Esta herramienta está disponible en inglés en el sitio www. Filing an amended tax return irs. Filing an amended tax return gov/individuals. Filing an amended tax return Suscribirse para recibir noticias sobre impuestos locales y nacionales por medio de correo electrónico. Filing an amended tax return Obtener información acerca de cómo comenzar y administrar un pequeño negocio. Filing an amended tax return Teléfono. Filing an amended tax return Muchos servicios están disponibles por teléfono:  Cómo pedir formularios, instrucciones y publicaciones. Filing an amended tax return Llame al 1-800-829-3676 (servicio disponible en español) para pedir formularios, instrucciones y publicaciones de este año, así como de años anteriores. Filing an amended tax return Deberá recibir lo que ha pedido dentro de 10 días. Filing an amended tax return Cómo hacer preguntas relacionadas con los impuestos. Filing an amended tax return Llame al IRS para hacer preguntas al 1-800-829-1040. Filing an amended tax return Cómo resolver problemas. Filing an amended tax return Puede recibir ayuda en persona para resolver problemas tributarios en días laborables en los IRS Taxpayer Assistance Centers (Centros de Ayuda del IRS para Contribuyentes). Filing an amended tax return Un funcionario le puede explicar las cartas del IRS, ayudar a hacer solicitudes para ajustes a su cuenta tributaria o ayudarle a establecer un plan de pagos. Filing an amended tax return Llame al Centro de Ayuda del IRS para Contribuyentes local para pedir una cita. Filing an amended tax return Para obtener el número telefónico, visite el sitio web www. Filing an amended tax return irs. Filing an amended tax return gov/localcontacts o consulte la guía telefónica bajo United States Government, Internal Revenue Service (Gobierno de los Estados Unidos, Servicio de Impuestos Internos). Filing an amended tax return Equipo TTY/TDD. Filing an amended tax return Las personas que son sordas, tienen problemas auditivos o quienes tienen incapacidades del habla y tienen acceso a equipo TTY/TDD, llame al 1-800-829-4059 para hacer preguntas relacionadas con los impuestos o para pedir formularios y publicaciones. Filing an amended tax return Temas TeleTax. Filing an amended tax return Llame al 1-800-829-4477 y presione el 2 para escuchar mensajes grabados en español sobre varios temas relacionados con los impuestos. Filing an amended tax return Información sobre los reembolsos. Filing an amended tax return Puede verificar el estado de su reembolso en la nueva aplicación del IRS para teléfonos móviles. Filing an amended tax return Descargue gratuitamente la aplicación IRS2Go visitando la tienda de aplicaciones de iTunes o la tienda para las aplicaciones para los teléfonos Android. Filing an amended tax return IRS2Go es una nueva manera en donde puede obtener información y recursos. Filing an amended tax return Para revisar el estado de su reembolso, llame al 1-800-829-4477 (información automatizada sobre reembolsos en español, 24 horas al día, 7 días a la semana). Filing an amended tax return Asegúrese de esperar por lo menos 72 horas después de que el IRS acuse recibo de su declaración presentada por vía electrónica o 3 a 4 semanas después de enviar una declaración en papel. Filing an amended tax return Si presentó el Formulario 8379 junto con su declaración, espere 14 semanas (11 semanas si la presentó electrónicamente). Filing an amended tax return Tenga a mano su declaración de impuestos para poder facilitar su número de Seguro Social, su estado civil para efectos de la declaración y la cantidad exacta en dólares enteros de su reembolso. Filing an amended tax return Los reembolsos se envían el viernes de cada semana. Filing an amended tax return Si comprueba el estado de su reembolso y no se le da una fecha de envío, espere a la siguiente semana para volver a comprobarlo. Filing an amended tax return Otra información sobre reembolsos. Filing an amended tax return Para revisar el estado de un reembolso de un año anterior o un reembolso de una declaración enmendada, llame al 1-800-829-1040. Filing an amended tax return Evaluación de la calidad de nuestros servicios telefónicos. Filing an amended tax return Para asegurar que las respuestas que reciba de los funcionarios del IRS sean correctas, corteses y profesionales, evaluamos la calidad de nuestros servicios telefónicos de diversas maneras. Filing an amended tax return Una manera es que un segundo funcionario del IRS escuche o grabe las llamadas telefónicas en el momento en que éstas se lleven a cabo. Filing an amended tax return Otra manera es pedirles a algunas de las personas que llaman que contesten una breve encuesta al final de la llamada. Filing an amended tax return Visitas en persona. Filing an amended tax return Muchos productos y servicios están disponibles en varios lugares sin la necesidad de tener cita previa. Filing an amended tax return   Productos. Filing an amended tax return Puede visitar diversas oficinas de correos, bibliotecas y oficinas del IRS para obtener ciertos formularios, instrucciones y publicaciones. Filing an amended tax return Algunas oficinas del IRS, bibliotecas, supermercados, centros para hacer copias, oficinas de gobiernos municipales y de condados, cooperativas de crédito y tiendas de artículos de oficina tienen una colección de productos que se pueden imprimir de un CD o fotocopiar del documento original impreso. Filing an amended tax return Además, algunas oficinas del IRS así como algunas bibliotecas tienen el Código de Impuestos Internos, reglamentos, Boletines del IRS y Boletines Cumulativos disponibles para la búsqueda de información. Filing an amended tax return Servicios. Filing an amended tax return Usted puede visitar su Taxpayer Assistance Center (Centro de Ayuda para el Contribuyente) local del IRS cada día laborable para recibir ayuda en persona con respecto a todo problema relacionado con los impuestos. Filing an amended tax return Un funcionario puede explicarle las cartas que le envía el IRS, le puede ayudar a hacer solicitudes para ajustar su cuenta tributaria o ayudarle a establecer un plan de pagos. Filing an amended tax return Si necesita resolver un problema relacionado con los impuestos, tiene preguntas sobre cómo las leyes tributarias son aplicables a su declaración de impuestos personal o se siente más a gusto hablando con alguien en persona, visite su Centro de Ayuda para el Contribuyente a nivel local donde podrá mostrar sus archivos y documentación y hablar con un funcionario del IRS en persona. Filing an amended tax return No se necesita cita, simplemente visite y haga su consulta. Filing an amended tax return Pero si prefiere, puede llamar a su centro local y dejar un mensaje solicitando una cita para resolver un asunto relacionado con su cuenta tributaria. Filing an amended tax return Un funcionario le llamará dentro de 2 días laborables para hacer una cita en persona con usted. Filing an amended tax return Si le queda por resolver algún problema complicado relacionado con los impuestos o si tiene alguna necesidad especial, como una discapacidad, puede solicitar una cita. Filing an amended tax return Los demás asuntos se tramitan sin necesidad de hacer una cita. Filing an amended tax return Para obtener el número telefónico de la oficina local, visite el sitio web www. Filing an amended tax return irs. Filing an amended tax return gov/localcontacts o consulte la guía telefónica bajo United States Government, Internal Revenue Service (Gobierno de los Estados Unidos, Servicio de Impuestos Internos). Filing an amended tax return Correspondencia. Filing an amended tax return Puede solicitar formularios, instrucciones y publicaciones enviando una solicitud a la dirección que se proporciona a continuación y le contestaremos dentro de un período de 10 días después de haber recibido su solicitud. Filing an amended tax return  Internal Revenue Service 1201 N. Filing an amended tax return Mitsubishi Motorway Bloomington, IL 61705-6613 Servicio del Defensor del Contribuyente. Filing an amended tax return    El Servicio del Defensor del Contribuyente (TAS, por sus siglas en inglés) es su voz ante el IRS. Filing an amended tax return Nuestro trabajo es asegurarnos que cada contribuyente sea tratado de manera justa y que usted conozca y entienda sus derechos. Filing an amended tax return Nosotros ofrecemos ayuda gratuita para guiarle a través del proceso confuso de resolver problemas tributarios que usted no ha podido resolver por su cuenta. Filing an amended tax return Recuerde, lo peor que puede hacer es no hacer nada al respecto. Filing an amended tax return    TAS le puede ayudar si usted no puede resolver su problema con el IRS y: Su problema le está causando dificultades económicas a usted, a su familia o a su negocio. Filing an amended tax return Usted (o su negocio) está enfrentando una amenaza inmediata de alguna acción que se podría tomar en contra de usted. Filing an amended tax return Usted se ha tratado de comunicar con el IRS, pero nadie le ha respondido o el IRS no le ha respondido para la fecha prometida. Filing an amended tax return   Si usted reúne los requisitos para recibir nuestra ayuda, nosotros haremos todo lo que esté en nuestro poder para resolver su problema. Filing an amended tax return A usted se le asignará un defensor, quien estará con usted durante todo el proceso. Filing an amended tax return Tenemos oficinas en cada estado, el Distrito de Columbia y Puerto Rico. Filing an amended tax return Aunque TAS es una organización independiente dentro del IRS, nuestros defensores conocen cómo trabajar con el IRS para poder resolver sus problemas. Filing an amended tax return Y nuestros servicios siempre son gratuitos. Filing an amended tax return   Como contribuyente, usted tiene derechos. Filing an amended tax return El IRS tiene que cumplir con esos derechos al tratar con usted. Filing an amended tax return Nuestro conjunto de recursos en www. Filing an amended tax return TaxpayerAdvocate. Filing an amended tax return irs. Filing an amended tax return gov le puede ayudar a entender estos derechos. Filing an amended tax return   Si cree que TAS podría ayudarle, comuníquese con su defensor local, cuyo número telefónico se encuentra en su guía telefónica y en nuestro sitio web en www. Filing an amended tax return irs. Filing an amended tax return gov/advocate. Filing an amended tax return Además, puede llamar a nuestro número telefónico libre de cargos, al 1-877-777-4778. Filing an amended tax return   Además, TAS también maneja problemas de gran escala y problemas sistémicos que afectan a muchos contribuyentes. Filing an amended tax return Si usted conoce acerca de alguno de estos asuntos, por favor, infórmelo a nuestra oficina a través del Systemic Advocacy Management System (Sistema de administración de la defensa sistémica), en inglés, en www. Filing an amended tax return irs. Filing an amended tax return gov/advocate. Filing an amended tax return Talleres de Asistencia Tributaria para Contribuyentes de Bajos Recursos (LITC, por sus siglas en inglés). Filing an amended tax return   Los LITC son organizaciones independientes del IRS. Filing an amended tax return Algunos talleres le prestan servicios a personas cuyos ingresos están por debajo de ciertos niveles y necesitan resolver un asunto tributario. Filing an amended tax return Estos talleres proveen representación profesional ante el IRS o en los tribunales con asuntos como auditorías, apelaciones, litigios sobre el cobro de impuestos y otros asuntos de manera gratuita o por un cargo mínimo. Filing an amended tax return Además, algunos talleres pueden proveer información sobre los derechos y responsabilidades de los contribuyentes en muchos idiomas para las personas que hablan inglés como segunda lengua. Filing an amended tax return Si desea más información y para encontrar un taller que le quede cerca, vea la página dedicada a los LITC en www. Filing an amended tax return irs. Filing an amended tax return gov/espanol, la cual se encuentra bajo el enlace “Defensor del Contribuyente” o vea la Publicación 4134(SP), Lista de Talleres para Contribuyentes de Bajos Ingresos (o la Publicación 4134, en inglés). Filing an amended tax return Puede obtener esta publicación llamando al 1-800-829-3676 o en su oficina local del IRS. Filing an amended tax return Servicios gratuitos para los impuestos. Filing an amended tax return   Para saber qué servicios están disponibles, obtenga la Publicación 910, IRS Guide to Free Tax Services (Guía de servicios gratuitos relacionados con los impuestos), en inglés. Filing an amended tax return Contiene una lista de recursos gratuitos relacionados con los impuestos, incluidas las publicaciones, y explica sobre servicios de educación tributaria y programas de ayuda. Filing an amended tax return Además, cuenta con un índice de más de 100 temas tributarios (TeleTax), o sea, información tributaria grabada que puede escuchar por teléfono. Filing an amended tax return La mayor parte de la información y los servicios identificados en esta publicación están disponibles a usted libre de cargos. Filing an amended tax return Si acaso tendría que incurrir en un cargo para obtener algún recurso o servicio, la publicación así lo indicaría. Filing an amended tax return   Para personas discapacitadas, se pueden solicitar versiones de productos publicados por el IRS en formatos alternativos. Filing an amended tax return Discos DVD para productos tributarios. Filing an amended tax return Usted puede solicitar la Publicación 1796, IRS Tax Products DVD (DVD de productos del IRS), en inglés, y obtener: Formularios, instrucciones y publicaciones de impuestos del año en curso. Filing an amended tax return Formularios, instrucciones y publicaciones de impuestos de años anteriores. Filing an amended tax return Tax Map (Mapa Tributario): una herramienta de búsqueda electrónica y de ayuda. Filing an amended tax return Preguntas sobre leyes tributarias hechas con frecuencia. Filing an amended tax return Tax Topics (Temas Tributarios) del sistema telefónico de respuesta del IRS. Filing an amended tax return Código de Impuestos Internos — Título 26 del Código de los Estados Unidos. Filing an amended tax return Enlaces a otros materiales tributarios para búsqueda en la Internet. Filing an amended tax return Opciones para completar, imprimir y guardar la mayoría de los formularios de impuestos. Filing an amended tax return Internal Revenue Bulletins (Boletines del IRS). Filing an amended tax return Apoyo técnico telefónico gratuito y por correo electrónico. Filing an amended tax return El CD que se expide dos veces al año. Filing an amended tax return  — La primera entrega se envía a principios de enero. Filing an amended tax return  — La última entrega se envía a principios de marzo. Filing an amended tax return Compre el DVD del National Technical Information Service (NTIS, por sus siglas en inglés) en la página web www. Filing an amended tax return irs. Filing an amended tax return gov/cdorders por $30 (sin costo de tramitación) o llame gratuitamente al 1-877-233-6767 para comprar el DVD por $30 (más un cargo de tramitación de $6). 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The Filing An Amended Tax Return

Filing an amended tax return 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. Filing an amended tax return S. Filing an amended tax return 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. Filing an amended tax return S. Filing an amended tax return 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. Filing an amended tax return S. Filing an amended tax return 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. Filing an amended tax return Employee business expenses. Filing an amended tax return 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. Filing an amended tax return You can change your choice for each year's taxes. Filing an amended tax return To choose the foreign tax credit, in most cases you must complete Form 1116 and attach it to your U. Filing an amended tax return S. Filing an amended tax return tax return. Filing an amended tax return However, you may qualify for the exception that allows you to claim the foreign tax credit without using Form 1116. Filing an amended tax return See How To Figure the Credit , later. Filing an amended tax return To choose to claim the taxes as an itemized deduction, use Schedule A (Form 1040), Itemized Deductions. Filing an amended tax return Figure your tax both ways—claiming the credit and claiming the deduction. Filing an amended tax return Then fill out your return the way that benefits you more. Filing an amended tax return See Why Choose the Credit, later. Filing an amended tax return 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. Filing an amended tax return If you choose to take a credit for qualified foreign taxes, you must take the credit for all of them. Filing an amended tax return You cannot deduct any of them. Filing an amended tax return Conversely, if you choose to deduct qualified foreign taxes, you must deduct all of them. Filing an amended tax return You cannot take a credit for any of them. Filing an amended tax return See What Foreign Taxes Qualify for the Credit , later, for the meaning of qualified foreign taxes. Filing an amended tax return There are exceptions to this general rule, which are described next. Filing an amended tax return Exceptions for foreign taxes not allowed as a credit. Filing an amended tax return   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. Filing an amended tax return Covered asset acquisitions include certain acquisitions that result in a stepped-up basis for U. Filing an amended tax return S. Filing an amended tax return tax purposes. Filing an amended tax return For more information, see Internal Revenue Code section 901(m). Filing an amended tax return The IRS intends to issue guidance that will explain this provision in greater detail. Filing an amended tax return   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. Filing an amended tax return Foreign taxes that are not income taxes. Filing an amended tax return   In most cases, only foreign income taxes qualify for the foreign tax credit. Filing an amended tax return Other taxes, such as foreign real and personal property taxes, do not qualify. Filing an amended tax return But you may be able to deduct these other taxes even if you claim the foreign tax credit for foreign income taxes. Filing an amended tax return   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. Filing an amended tax return However, you can deduct foreign real property taxes that are not trade or business expenses as an itemized deduction on Schedule A (Form 1040). Filing an amended tax return Carrybacks and carryovers. Filing an amended tax return   There is a limit on the credit you can claim in a tax year. Filing an amended tax return 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. Filing an amended tax return If you deduct qualified foreign taxes in a tax year, you cannot use a carryback or carryover in that year. Filing an amended tax return That is because you cannot take both a deduction and a credit for qualified foreign taxes in the same tax year. Filing an amended tax return   For more information on the limit, see How To Figure the Credit , later. Filing an amended tax return For more information on carrybacks and carryovers, see Carryback and Carryover , later. Filing an amended tax return 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. Filing an amended tax return You make or change your choice on your tax return (or on an amended return) for the year your choice is to be effective. Filing an amended tax return Example. Filing an amended tax return You paid foreign taxes for the last 13 years and chose to deduct them on your U. Filing an amended tax return S. Filing an amended tax return income tax returns. Filing an amended tax return You were timely in both filing your returns and paying your U. Filing an amended tax return S. Filing an amended tax return tax liability. Filing an amended tax return 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. Filing an amended tax return Because the regular due date of your 2002 return was April 15, 2003, this choice is timely (within 10 years). Filing an amended tax return Because there is a limit on the credit for your 2002 foreign tax, you have unused 2002 foreign taxes. Filing an amended tax return Ordinarily, you first carry back unused foreign taxes arising in 2002 to, and claim them as a credit in, the 2 preceding tax years. Filing an amended tax return 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. Filing an amended tax return 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. Filing an amended tax return 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. Filing an amended tax return 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. Filing an amended tax return 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. Filing an amended tax return See Foreign Earned Income and Housing Exclusions under Foreign Taxes for Which You Cannot Take a Credit, later. Filing an amended tax return 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. Filing an amended tax return In most cases, if the foreign tax rate is higher than the U. Filing an amended tax return S. Filing an amended tax return rate, there will be no U. Filing an amended tax return S. Filing an amended tax return tax on the foreign income. Filing an amended tax return If the foreign tax rate is lower than the U. Filing an amended tax return S. Filing an amended tax return rate, U. Filing an amended tax return S. Filing an amended tax return tax on the foreign income will be limited to the difference between the rates. Filing an amended tax return The foreign tax credit can only reduce U. Filing an amended tax return S. Filing an amended tax return taxes on foreign source income; it cannot reduce U. Filing an amended tax return S. Filing an amended tax return taxes on U. Filing an amended tax return S. Filing an amended tax return source income. Filing an amended tax return 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. Filing an amended tax return This is because: A credit reduces your actual U. Filing an amended tax return S. Filing an amended tax return 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. Filing an amended tax return 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. Filing an amended tax return (See Limit on credit under How To Figure the Credit, later. Filing an amended tax return ) Example 1. Filing an amended tax return For 2013, you and your spouse have adjusted gross income of $80,300, including $20,000 of dividend income from foreign sources. Filing an amended tax return None of the dividends are qualified dividends. Filing an amended tax return You file a joint return and can claim two $3,900 exemptions. Filing an amended tax return You had to pay $2,000 in foreign income taxes on the dividend income. Filing an amended tax return If you take the foreign taxes as an itemized deduction, your total itemized deductions are $15,000. Filing an amended tax return Your taxable income then is $57,500 and your tax is $7,736. Filing an amended tax return If you take the credit instead, your itemized deductions are only $13,000. Filing an amended tax return Your taxable income then is $59,500 and your tax before the credit is $8,036. Filing an amended tax return After the credit, however, your tax is only $6,036. Filing an amended tax return Therefore, your tax is $1,700 lower ($7,736 − $6,036) by taking the credit. Filing an amended tax return Example 2. Filing an amended tax return In 2013, you receive investment income of $5,000 from a foreign country, which imposes a tax of $1,500 on that income. Filing an amended tax return You report on your U. Filing an amended tax return S. Filing an amended tax return return this income as well as $56,000 of U. Filing an amended tax return S. Filing an amended tax return source wages and an allowable $49,000 partnership loss from a U. Filing an amended tax return S. Filing an amended tax return partnership. Filing an amended tax return Your share of the partnership's gross income is $25,000 and your share of its expenses is $74,000. Filing an amended tax return You are single, entitled to one $3,900 exemption, and have other itemized deductions of $6,850. Filing an amended tax return If you deduct the foreign tax on your U. Filing an amended tax return S. Filing an amended tax return 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. Filing an amended tax return 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. Filing an amended tax return You can take a credit of only $113 because of limits discussed later. Filing an amended tax return Your tax after the credit is $13 ($126 − $113), which is $13 more than if you deduct the foreign tax. Filing an amended tax return If you choose the credit, you will have unused foreign taxes of $1,387 ($1,500 − $113). Filing an amended tax return 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. Filing an amended tax return 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. Filing an amended tax return “Tax year” refers to the tax year for which your U. Filing an amended tax return S. Filing an amended tax return return is filed, not the tax year for which your foreign return is filed. Filing an amended tax return Accrual method of accounting. Filing an amended tax return   If you use an accrual method of accounting, you can claim the credit only in the year in which you accrue the tax. Filing an amended tax return 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. Filing an amended tax return   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. Filing an amended tax return Generally, this occurs on the last day of the tax year for which your foreign return is filed. Filing an amended tax return Contesting your foreign tax liability. Filing an amended tax return   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. Filing an amended tax return 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. Filing an amended tax return Once your liability is determined, the foreign tax credit is allowable for the year to which the foreign tax relates. Filing an amended tax return 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 . Filing an amended tax return You may have to post a bond. Filing an amended tax return   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. Filing an amended tax return   The IRS can request this bond at any time without regard to the Time Limit on Tax Assessment discussed later under Carryback and Carryover. Filing an amended tax return Cash method of accounting. Filing an amended tax return   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. Filing an amended tax return 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. Filing an amended tax return Choosing to take credit in the year taxes accrue. Filing an amended tax return   Even if you use the cash method of accounting, you can choose to take a credit for foreign taxes in the year they accrue. Filing an amended tax return You make the choice by checking the box in Part II of Form 1116. Filing an amended tax return 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. Filing an amended tax return   In addition, the choice to take the credit when foreign taxes accrue applies to all foreign taxes qualifying for the credit. Filing an amended tax return You cannot take a credit for some foreign taxes when paid and take a credit for others when accrued. Filing an amended tax return   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. Filing an amended tax return Credit based on taxes paid in earlier year. Filing an amended tax return   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. Filing an amended tax return Example. Filing an amended tax return Last year you took the credit based on taxes paid. Filing an amended tax return This year you chose to take the credit based on taxes accrued. Filing an amended tax return During the year you paid foreign income taxes owed for last year. Filing an amended tax return You also accrued foreign income taxes for this year that you did not pay by the end of the year. Filing an amended tax return 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. Filing an amended tax return Foreign Currency and Exchange Rates U. Filing an amended tax return S. Filing an amended tax return income tax is imposed on income expressed in U. Filing an amended tax return S. Filing an amended tax return dollars, while in most cases the foreign tax is imposed on income expressed in foreign currency. Filing an amended tax return Therefore, fluctuations in the value of the foreign currency relative to the U. Filing an amended tax return S. Filing an amended tax return dollar may affect the foreign tax credit. Filing an amended tax return Translating foreign currency into U. Filing an amended tax return S. Filing an amended tax return dollars. Filing an amended tax return   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. Filing an amended tax return S. Filing an amended tax return dollars. Filing an amended tax return How and when you do this depends on your functional currency. Filing an amended tax return In most cases, your functional currency is the U. Filing an amended tax return S. Filing an amended tax return dollar unless you are required to use the currency of a foreign country. Filing an amended tax return   You must make all federal income tax determinations in your functional currency. Filing an amended tax return The U. Filing an amended tax return S. Filing an amended tax return dollar is the functional currency for all taxpayers except some qualified business units. Filing an amended tax return A qualified business unit is a separate and clearly identified unit of a trade or business that maintains separate books and records. Filing an amended tax return Unless you are self-employed, your functional currency is the U. Filing an amended tax return S. Filing an amended tax return dollar. Filing an amended tax return   Even if you are self-employed and have a qualified business unit, your functional currency is the U. Filing an amended tax return S. Filing an amended tax return dollar if any of the following apply. Filing an amended tax return You conduct the business primarily in dollars. Filing an amended tax return The principal place of business is located in the United States. Filing an amended tax return You choose to or are required to use the dollar as your functional currency. Filing an amended tax return 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. Filing an amended tax return   If your functional currency is the U. Filing an amended tax return S. Filing an amended tax return dollar, you must immediately translate into dollars all items of income, expense, etc. Filing an amended tax return , that you receive, pay, or accrue in a foreign currency and that will affect computation of your income tax. Filing an amended tax return If there is more than one exchange rate, use the one that most properly reflects your income. Filing an amended tax return In most cases, you can get exchange rates from banks and U. Filing an amended tax return S. Filing an amended tax return Embassies. Filing an amended tax return   If your functional currency is not the U. Filing an amended tax return S. Filing an amended tax return dollar, make all income tax determinations in your functional currency. Filing an amended tax return At the end of the year, translate the results, such as income or loss, into U. Filing an amended tax return S. Filing an amended tax return dollars to report on your income tax return. Filing an amended tax return    For more information, write to: Internal Revenue Service International Section Philadelphia, PA 19255-0725 Rate of exchange for foreign taxes paid. Filing an amended tax return   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. Filing an amended tax return If your tax was withheld in foreign currency, use the rate of exchange in effect for the date on which the tax was withheld. Filing an amended tax return 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. Filing an amended tax return   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). Filing an amended tax return Exception. Filing an amended tax return   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. Filing an amended tax return This rule applies to accrued taxes relating to tax years beginning after 1997 and only under the following conditions. Filing an amended tax return The foreign taxes are paid on or after the first day of the tax year to which they relate. Filing an amended tax return The foreign taxes are paid not later than 2 years after the close of the tax year to which they relate. Filing an amended tax return The foreign tax liability is not denominated in an inflationary currency (defined in the Form 1116 instructions). Filing an amended tax return (This condition applies to taxes paid or accrued in tax years beginning after November 6, 2007. Filing an amended tax return )   For all other foreign taxes, you should use the exchange rate in effect on the date you paid them. Filing an amended tax return Election to use exchange rate on date paid. Filing an amended tax return   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. Filing an amended tax return If any of the accrued taxes are unpaid, you must translate them into U. Filing an amended tax return S. Filing an amended tax return dollars using the exchange rate on the last day of the U. Filing an amended tax return S. Filing an amended tax return tax year to which those taxes relate. Filing an amended tax return 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. Filing an amended tax return S. Filing an amended tax return dollar functional currency. Filing an amended tax return 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. Filing an amended tax return The election is available for tax years beginning after 2004. Filing an amended tax return 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. Filing an amended tax return Make the election by attaching a statement to the applicable tax return. Filing an amended tax return 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. Filing an amended tax return S. Filing an amended tax return dollar functional currency. Filing an amended tax return Foreign Tax Redetermination A foreign tax redetermination is any change in your foreign tax liability that may affect your U. Filing an amended tax return S. Filing an amended tax return foreign tax credit claimed. Filing an amended tax return 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. Filing an amended tax return If a foreign tax redetermination occurs, a redetermination of your U. Filing an amended tax return S. Filing an amended tax return tax liability is required if any of the following conditions apply. Filing an amended tax return The accrued taxes when paid differ from the amounts claimed as a credit. Filing an amended tax return 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. Filing an amended tax return If this applies to you, you must reduce the credit previously claimed by the amount of the unpaid taxes. Filing an amended tax return You will not be allowed a credit for the unpaid taxes until you pay them. Filing an amended tax return When you pay the accrued taxes, a new foreign tax redetermination occurs and you must translate the taxes into U. Filing an amended tax return S. Filing an amended tax return dollars using the exchange rate as of the date they were paid. Filing an amended tax return The foreign tax credit is allowed for the year to which the foreign tax relates. Filing an amended tax return See Rate of exchange for foreign taxes paid , earlier, under Foreign Currency and Exchange Rates. Filing an amended tax return The foreign taxes you paid are refunded in whole or in part. Filing an amended tax return 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. Filing an amended tax return 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. Filing an amended tax return S. Filing an amended tax return tax year. Filing an amended tax return In this case, you must adjust your U. Filing an amended tax return S. Filing an amended tax return tax in the tax year in which the accrued foreign taxes are paid. Filing an amended tax return 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. Filing an amended tax return S. Filing an amended tax return tax liability for each tax year affected by the redetermination. Filing an amended tax return In most cases, you must file Form 1040X, Amended U. Filing an amended tax return S. Filing an amended tax return Individual Income Tax Return, with a revised Form 1116 and a statement that contains information sufficient for the IRS to redetermine your U. Filing an amended tax return S. Filing an amended tax return tax liability for the year or years affected. Filing an amended tax return See Contents of statement , later. Filing an amended tax return 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. Filing an amended tax return There are other exceptions to this requirement. Filing an amended tax return They are discussed later under Due date of notification to IRS . Filing an amended tax return Contents of statement. Filing an amended tax return   The statement must include all of the following. Filing an amended tax return Your name, address, and taxpayer identification number. Filing an amended tax return The tax year or years that are affected by the foreign tax redetermination. Filing an amended tax return The date or dates the foreign taxes were accrued, if applicable. Filing an amended tax return The date or dates the foreign taxes were paid. Filing an amended tax return The amount of foreign taxes paid or accrued on each date (in foreign currency) and the exchange rate used to translate each amount. Filing an amended tax return 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. Filing an amended tax return   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. Filing an amended tax return   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). Filing an amended tax return Due date of notification to IRS. Filing an amended tax return   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. Filing an amended tax return There is no limit on the time the IRS has to redetermine and assess the correct U. Filing an amended tax return S. Filing an amended tax return tax due. Filing an amended tax return 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. Filing an amended tax return S. Filing an amended tax return taxes. Filing an amended tax return See Time Limit on Refund Claims , later. Filing an amended tax return   Exceptions to this due date are explained in the next two paragraphs. Filing an amended tax return Multiple redeterminations of U. Filing an amended tax return S. Filing an amended tax return tax liability for same tax year. Filing an amended tax return   Where more than one foreign tax redetermination requires a redetermination of U. Filing an amended tax return S. Filing an amended tax return 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. Filing an amended tax return 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. Filing an amended tax return However, foreign tax redeterminations with respect to the tax year for which a redetermination of U. Filing an amended tax return S. Filing an amended tax return tax liability is required may occur after the due date for providing that notification. Filing an amended tax return In this situation, you may have to file more than one Form 1040X for that tax year. Filing an amended tax return Additional U. Filing an amended tax return S. Filing an amended tax return tax due eliminated by foreign tax credit carryback or carryover. Filing an amended tax return   If a foreign tax redetermination requires a redetermination of U. Filing an amended tax return S. Filing an amended tax return tax liability that would otherwise result in an additional amount of U. Filing an amended tax return S. Filing an amended tax return 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. Filing an amended tax return 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. Filing an amended tax return You must file the statement by the due date (with extensions) of that return. Filing an amended tax return 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. Filing an amended tax return S. Filing an amended tax return tax liability is required). Filing an amended tax return Failure-to-notify penalty. Filing an amended tax return   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. Filing an amended tax return   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. Filing an amended tax return S. Filing an amended tax return tax. Filing an amended tax return This penalty cannot be more than 25% of the tax due. Filing an amended tax return Foreign tax refund. Filing an amended tax return   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. Filing an amended tax return S. Filing an amended tax return tax for the time before the date of the refund. Filing an amended tax return   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. Filing an amended tax return 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. Filing an amended tax return Interest also is owed from the time you receive a refund until you pay the additional tax due. Filing an amended tax return Foreign tax imposed on foreign refund. Filing an amended tax return   If your foreign tax refund is taxed by the foreign country, you cannot take a separate credit or deduction for this additional foreign tax. Filing an amended tax return 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. Filing an amended tax return Example. Filing an amended tax return 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. Filing an amended tax return When you refigure your credit for 2011, you must reduce the $3,000 you paid by $400. Filing an amended tax return Time Limit on Refund Claims You have 10 years to file a claim for refund of U. Filing an amended tax return S. Filing an amended tax return tax if you find that you paid or accrued a larger foreign tax than you claimed a credit for. Filing an amended tax return 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. Filing an amended tax return You have 10 years to file your claim regardless of whether you claim the credit for taxes paid or taxes accrued. Filing an amended tax return 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). Filing an amended tax return The special 10-year period also applies to making or changing your choice to claim a deduction or credit for foreign taxes. Filing an amended tax return See Making or Changing Your Choice discussed earlier under Choosing To Take Credit or Deduction. Filing an amended tax return Who Can Take the Credit? U. Filing an amended tax return S. Filing an amended tax return citizens, resident aliens, and nonresident aliens who paid foreign income tax and are subject to U. Filing an amended tax return S. Filing an amended tax return tax on foreign source income may be able to take a foreign tax credit. Filing an amended tax return U. Filing an amended tax return S. Filing an amended tax return Citizens If you are a U. Filing an amended tax return S. Filing an amended tax return citizen, you are taxed by the United States on your worldwide income wherever you live. Filing an amended tax return You are normally entitled to take a credit for foreign taxes you pay or accrue. Filing an amended tax return 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. Filing an amended tax return S. Filing an amended tax return citizens. Filing an amended tax return If you are a bona fide resident of Puerto Rico for the entire tax year, you also come under the same rules. Filing an amended tax return 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. Filing an amended tax return For information on alien status, see Publication 519. Filing an amended tax return Nonresident Aliens If you are a nonresident alien, you cannot take the credit in most cases. Filing an amended tax return 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. Filing an amended tax return S. Filing an amended tax return possession on income from foreign sources that is effectively connected with a trade or business in the United States. Filing an amended tax return But if you must pay tax to a foreign country or U. Filing an amended tax return S. Filing an amended tax return possession on income from U. Filing an amended tax return S. Filing an amended tax return sources only because you are a citizen or a resident of that country or U. Filing an amended tax return S. Filing an amended tax return possession, do not use that tax in figuring the amount of your credit. Filing an amended tax return For information on alien status and effectively connected income, see Publication 519. Filing an amended tax return 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. Filing an amended tax return The tax must be imposed on you. Filing an amended tax return You must have paid or accrued the tax. Filing an amended tax return The tax must be the legal and actual foreign tax liability. Filing an amended tax return The tax must be an income tax (or a tax in lieu of an income tax). Filing an amended tax return Certain foreign taxes do not qualify for the credit even if the four tests are met. Filing an amended tax return See Foreign Taxes for Which You Cannot Take a Credit, later. Filing an amended tax return 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. Filing an amended tax return S. Filing an amended tax return possession. Filing an amended tax return For example, a tax that is deducted from your wages is considered to be imposed on you. Filing an amended tax return You cannot shift the right to claim the credit by contract or other means. Filing an amended tax return Foreign country. Filing an amended tax return   A foreign country includes any foreign state and its political subdivisions. Filing an amended tax return Income, war profits, and excess profits taxes paid or accrued to a foreign city or province qualify for the foreign tax credit. Filing an amended tax return U. Filing an amended tax return S. Filing an amended tax return possessions. Filing an amended tax return   For foreign tax credit purposes, all qualified taxes paid to U. Filing an amended tax return S. Filing an amended tax return possessions are considered foreign taxes. Filing an amended tax return For this purpose, U. Filing an amended tax return S. Filing an amended tax return possessions include Puerto Rico and American Samoa. Filing an amended tax return   When the term “foreign country” is used in this publication, it includes U. Filing an amended tax return S. Filing an amended tax return possessions unless otherwise stated. Filing an amended tax return 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. Filing an amended tax return S. Filing an amended tax return possession. Filing an amended tax return 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. Filing an amended tax return Joint return. Filing an amended tax return   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. Filing an amended tax return Combined income. Filing an amended tax return   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. Filing an amended tax return 901-2(f)(3)(iii). Filing an amended tax return 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. Filing an amended tax return   These rules apply to foreign taxes paid or accrued in tax years beginning after February 14, 2012. Filing an amended tax return 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. Filing an amended tax return For more details, see paragraphs (f) and (h) of Regulations section 1. Filing an amended tax return 901-2. Filing an amended tax return For similar rules applicable to prior tax years, see Regulations section 1. Filing an amended tax return 901-2 (revised as of April 1, 2011). Filing an amended tax return Example. Filing an amended tax return You and your spouse reside in Country X, which imposes income tax on your combined incomes. Filing an amended tax return Both of you use the “u” as your functional currency. Filing an amended tax return Country X apportions tax based on income. Filing an amended tax return You had income of 30,000u and your spouse had income of 20,000u. Filing an amended tax return Your filing status on your U. Filing an amended tax return S. Filing an amended tax return income tax return is married filing separately. Filing an amended tax return You can claim only 60% (30,000u/50,000u) of the foreign taxes imposed on your income on your U. Filing an amended tax return S income tax return. Filing an amended tax return Your spouse can claim only 40% (20,000u/50,000u). Filing an amended tax return Partner or S corporation shareholder. Filing an amended tax return   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. Filing an amended tax return These amounts will be shown on the Schedule K-1 you receive from the partnership or S corporation. Filing an amended tax return 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. Filing an amended tax return Beneficiary. Filing an amended tax return   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. Filing an amended tax return This amount will be shown on the Schedule K-1 you receive from the estate or trust. Filing an amended tax return However, you must show that the tax was imposed on income of the estate and not on income received by the decedent. Filing an amended tax return Mutual fund shareholder. Filing an amended tax return   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. Filing an amended tax return 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. Filing an amended tax return If you do not receive this information, you will need to contact the fund. Filing an amended tax return Controlled foreign corporation shareholder. Filing an amended tax return   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. Filing an amended tax return If you make this election, you must claim the credit by filing Form 1118, Foreign Tax Credit—Corporations. Filing an amended tax return Controlled foreign corporation. Filing an amended tax return   A controlled foreign corporation is a foreign corporation in which U. Filing an amended tax return S. Filing an amended tax return shareholders own more than 50% of the voting power or value of the stock. Filing an amended tax return You are considered a U. Filing an amended tax return S. Filing an amended tax return shareholder if you own, directly or indirectly, 10% or more of the total voting power of all classes of the foreign corporation's stock. Filing an amended tax return See Internal Revenue Code sections 951(b) and 958(b) for more information. Filing an amended tax return 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. Filing an amended tax return Only the legal and actual foreign tax liability that you paid or accrued during the year qualifies for the credit. Filing an amended tax return Foreign tax refund. Filing an amended tax return   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. Filing an amended tax return   For example, the United States has tax treaties with many countries allowing U. Filing an amended tax return S. Filing an amended tax return citizens and residents reductions in the rates of tax of those foreign countries. Filing an amended tax return However, some treaty countries require U. Filing an amended tax return S. Filing an amended tax return 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. Filing an amended tax return 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. Filing an amended tax return Subsidy received. Filing an amended tax return   Tax payments a foreign country returns to you in the form of a subsidy do not qualify for the foreign tax credit. Filing an amended tax return 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. Filing an amended tax return 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. Filing an amended tax return   The term “subsidy” includes any type of benefit. Filing an amended tax return Some ways of providing a subsidy are refunds, credits, deductions, payments, or discharges of obligations. Filing an amended tax return Shareholder receiving refund for corporate tax in integrated system. Filing an amended tax return   Under some foreign tax laws and treaties, a shareholder is considered to have paid part of the tax that is imposed on the corporation. Filing an amended tax return You may be able to claim a refund of these taxes from the foreign government. Filing an amended tax return You must include the refund (including any amount withheld) in your income in the year received. Filing an amended tax return Any tax withheld from the refund is a qualified foreign tax. Filing an amended tax return Example. Filing an amended tax return You are a shareholder of a French corporation. Filing an amended tax return You receive a $100 refund of the tax paid to France by the corporation on the earnings distributed to you as a dividend. Filing an amended tax return The French government imposes a 15% withholding tax ($15) on the refund you received. Filing an amended tax return You receive a check for $85. Filing an amended tax return You include $100 in your income. Filing an amended tax return The $15 of tax withheld is a qualified foreign tax. Filing an amended tax return 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. Filing an amended tax return Foreign taxes on wages, dividends, interest, and royalties qualify for the credit in most cases. Filing an amended tax return 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. Filing an amended tax return See Taxes in Lieu of Income Taxes , later. Filing an amended tax return 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. Filing an amended tax return A foreign levy is an income tax only if it meets both of the following requirements. Filing an amended tax return It is a tax; that is, you have to pay it and you get no specific economic benefit (discussed below) from paying it. Filing an amended tax return The predominant character of the tax is that of an income tax in the U. Filing an amended tax return S. Filing an amended tax return sense. Filing an amended tax return A foreign levy may meet these requirements even if the foreign tax law differs from U. Filing an amended tax return S. Filing an amended tax return tax law. Filing an amended tax return The foreign law may include in income items that U. Filing an amended tax return S. Filing an amended tax return law does not include, or it may allow certain exclusions or deductions that U. Filing an amended tax return S. Filing an amended tax return law does not allow. Filing an amended tax return Specific economic benefit. Filing an amended tax return   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. Filing an amended tax return   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. Filing an amended tax return   However, see the exception discussed later under Pension, unemployment, and disability fund payments . Filing an amended tax return Economic benefits. Filing an amended tax return   Economic benefits include the following. Filing an amended tax return Goods. Filing an amended tax return Services. Filing an amended tax return Fees or other payments. Filing an amended tax return Rights to use, acquire, or extract resources, patents, or other property the foreign country owns or controls. Filing an amended tax return Discharges of contractual obligations. Filing an amended tax return   In most cases, the right or privilege merely to engage in business is not an economic benefit. Filing an amended tax return Dual-capacity taxpayers. Filing an amended tax return   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. Filing an amended tax return ” 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. Filing an amended tax return    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. Filing an amended tax return   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. Filing an amended tax return    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. Filing an amended tax return For more information about these agreements, see Publication 54. Filing an amended tax return Soak-up taxes. Filing an amended tax return   A foreign tax is not predominantly an income tax and does not qualify for credit to the extent it is a soak-up tax. Filing an amended tax return 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. Filing an amended tax return This rule applies only if and to the extent that the foreign tax would not be imposed if the credit were not available. Filing an amended tax return Penalties and interest. Filing an amended tax return   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. Filing an amended tax return Taxes not based on income. Filing an amended tax return   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. Filing an amended tax return Taxes based on assets, such as property taxes, do not qualify for the credit. Filing an amended tax return 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. Filing an amended tax return 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. Filing an amended tax return A tax in lieu of an income tax does not have to be based on realized net income. Filing an amended tax return A foreign tax imposed on gross income, gross receipts or sales, or the number of units produced or exported can qualify for the credit. Filing an amended tax return In most cases, a soak-up tax (discussed earlier) does not qualify as a tax in lieu of an income tax. Filing an amended tax return 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. Filing an amended tax return The soak-up tax. Filing an amended tax return 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. Filing an amended tax return Foreign Taxes for Which You Cannot Take a Credit This part discusses the foreign taxes for which you cannot take a credit. Filing an amended tax return 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. Filing an amended tax return S. Filing an amended tax return persons controlling foreign corporations and partnerships who fail to file required information returns, and Taxes related to a foreign tax splitting event. Filing an amended tax return Taxes on Excluded Income You cannot take a credit for foreign taxes paid or accrued on certain income that is excluded from U. Filing an amended tax return S. Filing an amended tax return gross income. Filing an amended tax return 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. Filing an amended tax return S. Filing an amended tax return income under the foreign earned income exclusion or the foreign housing exclusion. Filing an amended tax return See Publication 54 for more information on the foreign earned income and housing exclusions. Filing an amended tax return Wages completely excluded. Filing an amended tax return   If your wages are completely excluded, you cannot take a credit for any of the foreign taxes paid or accrued on these wages. Filing an amended tax return Wages partly excluded. Filing an amended tax return   If only part of your wages is excluded, you cannot take a credit for the foreign income taxes allocable to the excluded part. Filing an amended tax return 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. Filing an amended tax return   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. Filing an amended tax return Deductible expenses do not include the foreign housing deduction. Filing an amended tax return   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). Filing an amended tax return If the foreign law taxes foreign earned income and some other income (for example, earned income from U. Filing an amended tax return S. Filing an amended tax return sources or a type of income not subject to U. Filing an amended tax return S. Filing an amended tax return 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. Filing an amended tax return Example. Filing an amended tax return You are a U. Filing an amended tax return S. Filing an amended tax return citizen and a cash basis taxpayer, employed by Company X and living in Country A. Filing an amended tax return 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. Filing an amended tax return To find that part, do the following. Filing an amended tax return First, find the amount of business expenses allocable to excluded wages and therefore not deductible. Filing an amended tax return To do this, multiply the otherwise deductible expenses by a fraction. Filing an amended tax return That fraction is the excluded wages over your foreign earned income. Filing an amended tax return   $20,000 × $97,600 $125,000 = $15,616             Next, find the numerator of the fraction by which you will multiply the foreign taxes paid. Filing an amended tax return To do this, subtract business expenses allocable to excluded wages ($15,616) from excluded wages ($97,600). Filing an amended tax return The result is $81,984. Filing an amended tax return 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). Filing an amended tax return Finally, multiply the foreign tax you paid by the resulting fraction. Filing an amended tax return   $30,000 × $81,984  $105,000 = $23,424 The amount of Country A tax you cannot take a credit for is $23,424. Filing an amended tax return Taxes on Income From Puerto Rico Exempt From U. Filing an amended tax return S. Filing an amended tax return 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. Filing an amended tax return For information on figuring the reduction, see Publication 570. Filing an amended tax return 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. Filing an amended tax return For more information on this exclusion, see Publication 570. Filing an amended tax return Extraterritorial Income Exclusion You cannot take a credit for taxes you pay on qualifying foreign trade income excluded on Form 8873, Extraterritorial Income Exclusion. Filing an amended tax return However, see Internal Revenue Code section 943(d) for an exception for certain withholding taxes. Filing an amended tax return 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. Filing an amended tax return However, you can claim an itemized deduction for these taxes. Filing an amended tax return See Choosing To Take Credit or Deduction , earlier. Filing an amended tax return 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. Filing an amended tax return The following countries meet this description for 2013. Filing an amended tax return Income taxes paid or accrued to these countries in 2013 do not qualify for the credit. Filing an amended tax return Cuba. Filing an amended tax return Iran. Filing an amended tax return Libya (but see Note later). Filing an amended tax return North Korea. Filing an amended tax return Sudan. Filing an amended tax return Syria. Filing an amended tax return Waiver of denial of the credit. Filing an amended tax return   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. Filing an amended tax return S. Filing an amended tax return companies in the sanctioned country. Filing an amended tax return 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. Filing an amended tax return Note. Filing an amended tax return Effective December 10, 2004, the President granted a waiver to Libya. Filing an amended tax return Income taxes arising on or after this date qualify for the credit if they meet the other requirements in this publication. Filing an amended tax return Limit on credit. Filing an amended tax return   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. Filing an amended tax return You must fill out a separate Form 1116 for this income. Filing an amended tax return This will prevent you from claiming a credit for foreign taxes paid or accrued to the sanctioned country. Filing an amended tax return Example. Filing an amended tax return You lived and worked in Iran until August, when you were transferred to Italy. Filing an amended tax return You paid taxes to each country on the income earned in that country. Filing an amended tax return You cannot claim a foreign tax credit for the foreign taxes paid on the income earned in Iran. Filing an amended tax return Because the income earned in Iran is a separate category of foreign income, you must fill out a separate Form 1116 for that income. Filing an amended tax return You cannot take a credit for taxes paid on the income earned in Iran, but that income is taxable by the United States. Filing an amended tax return Figuring the credit when a sanction ends. Filing an amended tax return    Table 1 lists the countries for which sanctions have ended or for which a Presidential waiver has been granted. Filing an amended tax return 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. Filing an amended tax return Example. Filing an amended tax return The sanctions against Country X ended on July 31. Filing an amended tax return On August 19, you receive a distribution from a mutual fund of Country X income. Filing an amended tax return The fund paid Country X income tax for you on the distribution. Filing an amended tax return 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. Filing an amended tax return Amounts for the nonsanctioned period. Filing an amended tax return   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. Filing an amended tax return Multiply the income or taxes for the year by the following fraction to determine the amounts allocable to that period. Filing an amended tax return   Number of nonsanctioned days in year  Number of days in year Example. Filing an amended tax return 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. Filing an amended tax return Sanctions against Country X ended on July 11, 2013. Filing an amended tax return You are unable to determine how much of the income or tax is for the nonsanctioned period. Filing an amended tax return 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. Filing an amended tax return You would compute the income for the nonsanctioned period as follows. Filing an amended tax return 173 365 × $20,000 = $9,479             You would figure the tax for the nonsanctioned period as follows. Filing an amended tax return 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. Filing an amended tax return Further information. Filing an amended tax return   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. Filing an amended tax return This Cumulative Bulletin can be found in many libraries and IRS offices. Filing an amended tax return Table 1. Filing an amended tax return 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. Filing an amended tax return 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. Filing an amended tax return 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). Filing an amended tax return 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. Filing an amended tax return If the dividend is not for more than 366 days, rule (1) applies to the preferred stock. Filing an amended tax return 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. Filing an amended tax return 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. Filing an amended tax return Withholding tax. Filing an amended tax return   For this purpose, withholding tax includes any tax determined on a gross basis. Filing an amended tax return It does not include any tax which is in the nature of a prepayment of a tax imposed on a net basis. Filing an amended tax return Ex-dividend date. Filing an amended tax return   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. Filing an amended tax return Example 1. Filing an amended tax return You bought common stock from a foreign corporation on November 3. Filing an amended tax return You sold the stock on November 19. Filing an amended tax return You received a dividend on this stock because you owned it on the ex-dividend date of November 5. Filing an amended tax return 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). Filing an amended tax return Because you held the stock for 16 days, from November 4 until November 19, you are entitled to the credit. Filing an amended tax return Example 2. Filing an amended tax return The facts are the same as in Example 1 except that you sold the stock on November 14. Filing an amended tax return You held the stock for only 11 days. Filing an amended tax return You are not entitled to the credit. Filing an amended tax return Exception. Filing an amended tax return   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. Filing an amended tax return See section 901(k)(4) of the Internal Revenue Code for more information. Filing an amended tax return 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. Filing an amended tax return 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. Filing an amended tax return Withholding tax. Filing an amended tax return   For this purpose, withholding tax includes any tax determined on a gross basis. Filing an amended tax return It does not include any tax which is in the nature of a prepayment of a tax imposed on a net basis. Filing an amended tax return Exception for dealers. Filing an amended tax return   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. Filing an amended tax return See section 901(I)(2) of the Internal Revenue Code for more information. Filing an amended tax return 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. Filing an amended tax return A covered asset acquisition includes certain acquisitions that result in a stepped-up basis for U. Filing an amended tax return S. Filing an amended tax return tax purposes but not for foreign tax purposes. Filing an amended tax return For more information, see Internal Revenue Code section 901(m). Filing an amended tax return The IRS intends to issue guidance that will explain this provision in greater detail. Filing an amended tax return 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. Filing an amended tax return 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. Filing an amended tax return For details, see Regulations section 1. Filing an amended tax return 901-3. Filing an amended tax return 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. Filing an amended tax return See the instructions for line 12 in the Form 1116 instructions to figure this reduction. Filing an amended tax return 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. Filing an amended tax return List of boycotting countries. Filing an amended tax return   A list of the countries which may require participation in or cooperation with an international boycott is published by the Department of the Treasury. Filing an amended tax return As of November 2013, the following countries are listed. Filing an amended tax return Iraq. Filing an amended tax return Kuwait. Filing an amended tax return Lebanon. Filing an amended tax return Libya. Filing an amended tax return Qatar. Filing an amended tax return Saudi Arabia. Filing an amended tax return Syria. Filing an amended tax return United Arab Emirates. Filing an amended tax return Yemen. Filing an amended tax return    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. Filing an amended tax return   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. Filing an amended tax return The procedures for obtaining a determination from the Service are outlined in Revenue Procedure 77-9 in Cumulative Bulletin 1977-1. Filing an amended tax return Cumulative Bulletins are available in most IRS offices and you are welcome to read them there. Filing an amended tax return Public inspection. Filing an amended tax return   A determination and any related background file is open to public inspection. Filing an amended tax return However, your identity and certain other information will remain confidential. Filing an amended tax return Reporting requirements. Filing an amended tax return   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. Filing an amended tax return 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. Filing an amended tax return A partnership in which you are a partner. Filing an amended tax return A trust you are treated as owning. Filing an amended tax return Form 5713 required. Filing an amended tax return   If you have to file a report, you must use Form 5713, International Boycott Report, and attach all supporting schedules. Filing an amended tax return See the Instructions for Form 5713 for information on when and where to file the form. Filing an amended tax return Penalty for failure to file. Filing an amended tax return   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. Filing an amended tax return 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. Filing an amended tax return 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. Filing an amended tax return S. Filing an amended tax return tax liability (Form 1040, line 44) divided by your worldwide taxable income. Filing an amended tax return You may be entitled to carry over to other years taxes reduced under this rule. Filing an amended tax return See Internal Revenue Code section 907(f). Filing an amended tax return Combined foreign oil and gas income means the sum of foreign oil related income and foreign oil and gas extraction income. Filing an amended tax return Foreign oil and gas taxes are the sum of foreign oil and gas extraction taxes and foreign oil related taxes. Filing an amended tax return Taxes of U. Filing an amended tax return S. Filing an amended tax return 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. Filing an amended tax return 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. Filing an amended tax return See Penalty for not filing Form 5471 or Form 8865 , later. Filing an amended tax return U. Filing an amended tax return S. Filing an amended tax return persons controlling foreign corporations. Filing an amended tax return   If you are a U. Filing an amended tax return S. Filing an amended tax return 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. Filing an amended tax return S. Filing an amended tax return Persons With Respect To Certain Foreign Corporations. Filing an amended tax return 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. Filing an amended tax return U. Filing an amended tax return S. Filing an amended tax return persons controlling foreign partnerships. Filing an amended tax return   If you are a U. Filing an amended tax return S. Filing an amended tax return citizen or resident who had control of a foreign partnership at any time during the partnership's tax year, you may have to file