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Free 2012 Federal Tax Filing

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Free 2012 Federal Tax Filing

Free 2012 federal tax filing 3. Free 2012 federal tax filing   Filing Information for Individuals in Certain U. Free 2012 federal tax filing S. Free 2012 federal tax filing Possessions Table of Contents American SamoaWhere To Get Forms and Information Which Returns To File Special Rules for American Samoa Double Taxation The Commonwealth of Puerto RicoWhere To Get Forms and Information Which Returns To File Special Rules for Puerto Rico Double Taxation The Commonwealth of the Northern Mariana IslandsWhere To Get Forms and Information Which Return To File Special Rules for the CNMI Double Taxation GuamWhere To Get Forms and Information Which Return To File Special Rules for Guam Double Taxation The U. Free 2012 federal tax filing S. Free 2012 federal tax filing Virgin IslandsWhere To Get Forms and Information Which Return To File Special Rules for the USVI Double Taxation If you have income from American Samoa, the CNMI, Guam, Puerto Rico, or the USVI, you may have to file a tax return with the tax department of that possession. Free 2012 federal tax filing Or, you may have to file two annual tax returns, one with the possession's tax department and the other with the U. Free 2012 federal tax filing S. Free 2012 federal tax filing Internal Revenue Service. Free 2012 federal tax filing This chapter covers the general rules for filing returns in the five possessions. Free 2012 federal tax filing You must first determine if you are a bona fide resident of the relevant possession. Free 2012 federal tax filing See chapter 1 for a discussion of the requirements you must meet. Free 2012 federal tax filing You should ask for forms and advice about the filing of possession tax returns from that possession's tax department, not the Internal Revenue Service. Free 2012 federal tax filing Contact information is listed in this chapter under the heading for each possession. Free 2012 federal tax filing American Samoa American Samoa has its own separate and independent tax system. Free 2012 federal tax filing Although its tax laws are modeled on the U. Free 2012 federal tax filing S. Free 2012 federal tax filing Internal Revenue Code, there are certain differences. Free 2012 federal tax filing Where To Get Forms and Information Requests for advice about matters connected with Samoan taxation should be sent to: American Samoa Government Tax Office  Executive Office Building First Floor Pago Pago, AS 96799 The phone number is (684) 633-4181. Free 2012 federal tax filing The fax number is (684) 633-1513. Free 2012 federal tax filing You can get forms and publications at www. Free 2012 federal tax filing americansamoa. Free 2012 federal tax filing gov. Free 2012 federal tax filing The addresses and phone numbers listed above are subject to change. Free 2012 federal tax filing Which Returns To File Your residency status and your source of income with regard to American Samoa determine whether you file your return and pay your tax to American Samoa, to the United States, or to both. Free 2012 federal tax filing In addition to the information below that is categorized by residency status, the Special Rules for American Samoa section (later) contains important information for determining the correct forms to file. Free 2012 federal tax filing Bona Fide Resident of American Samoa Bona fide residents of American Samoa are generally exempt from U. Free 2012 federal tax filing S. Free 2012 federal tax filing tax on their American Samoa source income. Free 2012 federal tax filing U. Free 2012 federal tax filing S. Free 2012 federal tax filing citizen or resident alien. Free 2012 federal tax filing   If you are a U. Free 2012 federal tax filing S. Free 2012 federal tax filing citizen or resident alien and a bona fide resident of American Samoa during the entire tax year, you generally must file the following returns. Free 2012 federal tax filing An American Samoa tax return reporting your gross income from worldwide sources. Free 2012 federal tax filing If you report non-American Samoa source income on your American Samoa tax return, you can claim a credit against your American Samoa tax liability for income taxes paid on that income to the United States, a foreign country, or another possession. Free 2012 federal tax filing A U. Free 2012 federal tax filing S. Free 2012 federal tax filing tax return reporting income from worldwide sources, but excluding income from sources within American Samoa. Free 2012 federal tax filing However, amounts received for services performed as an employee of the United States or any of its agencies cannot be excluded (see U. Free 2012 federal tax filing S. Free 2012 federal tax filing Government employees under Special Rules for American Samoa, later). Free 2012 federal tax filing To exclude American Samoa source income, attach a completed Form 4563 to your U. Free 2012 federal tax filing S. Free 2012 federal tax filing tax return (see Form 4563 for more information). Free 2012 federal tax filing If you are excluding American Samoa source income on your U. Free 2012 federal tax filing S. Free 2012 federal tax filing tax return, you will not be allowed any deductions from gross income or credits against tax that are directly or indirectly allocable to the exempt income. Free 2012 federal tax filing For more information, see Special Rules for Completing Your U. Free 2012 federal tax filing S. Free 2012 federal tax filing Tax Return in chapter 4. Free 2012 federal tax filing Nonresident alien. Free 2012 federal tax filing   If you are a bona fide resident of American Samoa during the entire tax year, but a nonresident alien of the United States, you generally must file the following returns. Free 2012 federal tax filing An American Samoa tax return reporting worldwide income. Free 2012 federal tax filing A U. Free 2012 federal tax filing S. Free 2012 federal tax filing tax return (Form 1040, U. Free 2012 federal tax filing S. Free 2012 federal tax filing Individual Income Tax Return) reporting income from worldwide sources, but excluding American Samoa source income other than amounts for services performed as an employee of the United States or any of its agencies. Free 2012 federal tax filing For more information, see U. Free 2012 federal tax filing S. Free 2012 federal tax filing Government employees under Special Rules for American Samoa, later. Free 2012 federal tax filing To exclude income from sources within American Samoa, attach a completed Form 4563 to your U. Free 2012 federal tax filing S. Free 2012 federal tax filing tax return (see Form 4563 , below, for more information). Free 2012 federal tax filing For all other tax purposes, however, you will be treated as a nonresident alien individual. Free 2012 federal tax filing For example, you are not allowed the standard deduction, you cannot file a joint return, and you are not allowed a deduction for a dependent unless that person is a citizen or national of the United States. Free 2012 federal tax filing There are also limitations on what deductions and credits are allowed. Free 2012 federal tax filing See Publication 519 for more information. Free 2012 federal tax filing Form 4563. Free 2012 federal tax filing   If you must file a U. Free 2012 federal tax filing S. Free 2012 federal tax filing income tax return and you qualify to exclude any of your income from American Samoa, claim the exclusion by completing Form 4563 and attaching it to your Form 1040. Free 2012 federal tax filing Form 4563 cannot be filed by itself. Free 2012 federal tax filing There is an example of a filled-in Form 4563 in chapter 5. Free 2012 federal tax filing   If you are a bona fide resident of American Samoa during the entire tax year and you are not including a check or a money order, send your U. Free 2012 federal tax filing S. Free 2012 federal tax filing tax return and all attachments (including Form 4563) to: Department of the Treasury Internal Revenue Service Austin, TX 73301-0215 USA   If you are including a check or a money order, send your U. Free 2012 federal tax filing S. Free 2012 federal tax filing tax return and all attachments (including Form 4563) to: Internal Revenue Service P. Free 2012 federal tax filing O. Free 2012 federal tax filing Box 1303 Charlotte, NC 28201-1303 USA   Send your American Samoa tax return and all attachments to the address given under Where To Get Forms and Information , earlier. Free 2012 federal tax filing Self-employment tax. Free 2012 federal tax filing   If you are not required to file a U. Free 2012 federal tax filing S. Free 2012 federal tax filing tax return but have income that is effectively connected with a trade or business in American Samoa, you must file Form 1040-SS with the United States. Free 2012 federal tax filing On this form you will report your self-employment income to the United States and, if necessary, pay self-employment tax on that income. Free 2012 federal tax filing Additional Medicare Tax. Free 2012 federal tax filing   Beginning in 2013, you may be required to pay Additional Medicare Tax. Free 2012 federal tax filing Also, you may need to report Additional Medicare Tax withheld by your employer. Free 2012 federal tax filing For more information see Additional Medicare Tax under Special Rules for Completing Your U. Free 2012 federal tax filing S. Free 2012 federal tax filing Tax Return in chapter 4. Free 2012 federal tax filing Net Investment Income Tax. Free 2012 federal tax filing   Beginning in 2013, the Net Investment Income Tax (NIIT) is 3. Free 2012 federal tax filing 8 percent of the lesser of an individual’s net investment income or the excess of the individual’s modified adjusted gross income over a specified threshold amount. Free 2012 federal tax filing The NIIT will apply to a bona fide resident of American Samoa if a taxpayer has modified adjusted gross income from sources outside of American Samoa that exceeds a specified threshold amount, e. Free 2012 federal tax filing g. Free 2012 federal tax filing , $200,000 for single filers. Free 2012 federal tax filing The NIIT does not apply to any individual who is a nonresident alien with respect to the United States. Free 2012 federal tax filing See Form 8960, Net Investment Income Tax—Individuals, Estates, and Trusts, and its instructions for more information on the NIIT. Free 2012 federal tax filing Estimated tax payments. Free 2012 federal tax filing   To see if you are required to make payments of estimated income tax, self-employment tax, Additional Medicare Tax, and/or Net Investment Income Tax to the IRS, get Form 1040-ES, Estimated Tax for Individuals. Free 2012 federal tax filing   To pay by check or money order, send your payment with the Form 1040-ES payment voucher to: Internal Revenue Service P. Free 2012 federal tax filing O. Free 2012 federal tax filing Box 1300 Charlotte, NC 28201-1300 USA   To get information on paying electronically (by credit or debit card, or through the Electronic Federal Tax Payment System (EFTPS)), go to www. Free 2012 federal tax filing irs. Free 2012 federal tax filing gov/e-pay. Free 2012 federal tax filing   For information on making estimated income tax payments to American Samoa, see Where To Get Forms and Information , earlier. Free 2012 federal tax filing Not a Bona Fide Resident of American Samoa An individual who is not a bona fide resident of American Samoa for the tax year generally files both U. Free 2012 federal tax filing S. Free 2012 federal tax filing and American Samoa tax returns, and claims a foreign tax credit on the U. Free 2012 federal tax filing S. Free 2012 federal tax filing return for taxes paid to American Samoa. Free 2012 federal tax filing U. Free 2012 federal tax filing S. Free 2012 federal tax filing citizen or resident alien. Free 2012 federal tax filing   If you are a U. Free 2012 federal tax filing S. Free 2012 federal tax filing citizen or resident alien but not a bona fide resident of American Samoa during the entire tax year, you generally must file the following returns. Free 2012 federal tax filing An American Samoa tax return reporting only your income from sources within American Samoa. Free 2012 federal tax filing Wages for services performed in American Samoa, whether for a private employer, the U. Free 2012 federal tax filing S. Free 2012 federal tax filing Government, or otherwise, is income from sources within American Samoa. Free 2012 federal tax filing A U. Free 2012 federal tax filing S. Free 2012 federal tax filing tax return reporting your income from worldwide sources. Free 2012 federal tax filing You can take a credit against your U. Free 2012 federal tax filing S. Free 2012 federal tax filing tax liability if you paid income taxes to American Samoa (or other possession or foreign country) and reported income from those sources on your U. Free 2012 federal tax filing S. Free 2012 federal tax filing tax return. Free 2012 federal tax filing De minimis exception to determining source of income. Free 2012 federal tax filing   In certain situations you will not have income from a possession. Free 2012 federal tax filing See De minimis exception under Compensation for Labor or Personal Services in chapter 2. Free 2012 federal tax filing Nonresident alien. Free 2012 federal tax filing   If you are a nonresident alien of the United States who does not qualify as a bona fide resident of American Samoa for the entire tax year, you generally must file the following returns. Free 2012 federal tax filing An American Samoa tax return reporting only your income from sources within American Samoa. Free 2012 federal tax filing In this situation, wages for services performed in American Samoa, whether for a private employer, the U. Free 2012 federal tax filing S. Free 2012 federal tax filing Government, or otherwise, is income from sources within American Samoa. Free 2012 federal tax filing A U. Free 2012 federal tax filing S. Free 2012 federal tax filing tax return (Form 1040NR, U. Free 2012 federal tax filing S. Free 2012 federal tax filing Nonresident Alien Income Tax Return) reporting U. Free 2012 federal tax filing S. Free 2012 federal tax filing source income according to the rules for a nonresident alien. Free 2012 federal tax filing See the Instructions for Form 1040NR. Free 2012 federal tax filing   If you are not a bona fide resident of American Samoa during the entire tax year, and you are not including a check or a money order, send your U. Free 2012 federal tax filing S. Free 2012 federal tax filing tax return and all attachments to: Department of the Treasury Internal Revenue Service Austin, TX 73301-0215 USA   If you are including a check or a money order, send your U. Free 2012 federal tax filing S. Free 2012 federal tax filing tax return and all attachments to: Internal Revenue Service P. Free 2012 federal tax filing O. Free 2012 federal tax filing Box 1303 Charlotte, NC 28201-1303 USA   Send your American Samoa tax return and all attachments to the address given under Where To Get Forms and Information , earlier. Free 2012 federal tax filing Special Rules for American Samoa Some special rules apply to certain types of income and employment connected with American Samoa. Free 2012 federal tax filing U. Free 2012 federal tax filing S. Free 2012 federal tax filing Armed Forces. Free 2012 federal tax filing   Bona fide residents of American Samoa include military personnel whose official home of record is American Samoa. Free 2012 federal tax filing Civilian spouse of active duty member of the U. Free 2012 federal tax filing S. Free 2012 federal tax filing Armed Forces. Free 2012 federal tax filing   If, under the rule discussed at the beginning of chapter 1 (see Special rule for civilian spouse of active duty member of the U. Free 2012 federal tax filing S. Free 2012 federal tax filing Armed Forces ), your tax residence is American Samoa, follow the guidance in the section for bona fide residents under Which Returns To File, earlier. Free 2012 federal tax filing However, if your tax residence is one of the 50 states or the District of Columbia and your only income from American Samoa is from wages, salaries, tips, or self-employment, you will be taxed on your worldwide income and file only a U. Free 2012 federal tax filing S. Free 2012 federal tax filing tax return (Form 1040) and a state and/or local tax return, if required. Free 2012 federal tax filing If you have income from American Samoa other than wages, salaries, tips, or self-employment that is considered to be sourced in that possession (see Table 2-1), contact the local tax administration for guidance. Free 2012 federal tax filing U. Free 2012 federal tax filing S. Free 2012 federal tax filing Government employees. Free 2012 federal tax filing   If you are employed in American Samoa by the U. Free 2012 federal tax filing S. Free 2012 federal tax filing Government or any of its agencies, you are subject to tax by American Samoa on your pay from the government. Free 2012 federal tax filing Whether you are subject to tax by American Samoa on your non-American Samoa source income depends on your status in American Samoa as a bona fide resident. Free 2012 federal tax filing   Wages and salaries paid to employees of the U. Free 2012 federal tax filing S. Free 2012 federal tax filing Government and its agencies are also subject to U. Free 2012 federal tax filing S. Free 2012 federal tax filing federal income tax. Free 2012 federal tax filing These payments do not qualify for the exclusion of income from sources within American Samoa, discussed earlier. Free 2012 federal tax filing   For tax years ending after April 9, 2008, wages and salaries paid to bona fide residents by the Government of American Samoa can be excluded on the U. Free 2012 federal tax filing S. Free 2012 federal tax filing tax return. Free 2012 federal tax filing   If you report government wages on both your U. Free 2012 federal tax filing S. Free 2012 federal tax filing and American Samoa tax returns, you can take a credit on your U. Free 2012 federal tax filing S. Free 2012 federal tax filing tax return for income taxes paid or accrued to American Samoa. Free 2012 federal tax filing Figure the credit on Form 1116, and attach that form to your U. Free 2012 federal tax filing S. Free 2012 federal tax filing tax return, Form 1040. Free 2012 federal tax filing Show your wages paid for services performed in American Samoa on Form 1116, line 1a, enter “American Samoa” on line g, and check box b above Part I. Free 2012 federal tax filing Moving expense deduction. Free 2012 federal tax filing   Generally, expenses of a move to American Samoa are directly attributable to American Samoa wages, salaries, and other earned income. Free 2012 federal tax filing Likewise, the expenses of a move back to the United States are generally attributable to U. Free 2012 federal tax filing S. Free 2012 federal tax filing earned income. Free 2012 federal tax filing   If your move was to American Samoa, report your deduction for moving expenses as follows. Free 2012 federal tax filing If you are a bona fide resident in the tax year of your move, enter your deductible expenses on your American Samoa tax return. Free 2012 federal tax filing If you are not a bona fide resident, enter your deductible expenses on both your American Samoa and U. Free 2012 federal tax filing S. Free 2012 federal tax filing tax returns. Free 2012 federal tax filing Also, for purposes of a tax credit against your U. Free 2012 federal tax filing S. Free 2012 federal tax filing tax liability, reduce your American Samoa “general category income” on Form 1116, line 1a, by entering the deductible moving expenses on line 2. Free 2012 federal tax filing   If your move was to the United States, complete Form 3903, Moving Expenses, and enter the deductible amount on Form 1040, line 26. Free 2012 federal tax filing Double Taxation A mutual agreement procedure exists to settle cases of double taxation between the United States and American Samoa. Free 2012 federal tax filing See Double Taxation in chapter 4. Free 2012 federal tax filing The Commonwealth of Puerto Rico The Commonwealth of Puerto Rico has its own separate and independent tax system. Free 2012 federal tax filing Although it is modeled after the U. Free 2012 federal tax filing S. Free 2012 federal tax filing system, there are differences in law and tax rates. Free 2012 federal tax filing Where To Get Forms and Information Requests for information about the filing of Puerto Rico tax returns should be addressed to: Departamento de Hacienda Negociado de Asistencia Contributiva  P. Free 2012 federal tax filing O. Free 2012 federal tax filing Box 9024140 San Juan, Puerto Rico 00902-4140 The phone numbers are (787) 721-8051 and (787) 721-7198. Free 2012 federal tax filing    To obtain Puerto Rico tax forms, contact the Forms and Publications Division Office at the above address or call (787) 722-0216, option #7. Free 2012 federal tax filing You can access the Hacienda website at www. Free 2012 federal tax filing hacienda. Free 2012 federal tax filing gobierno. Free 2012 federal tax filing pr or email your questions about Puerto Rico taxes to InfoServ@hacienda. Free 2012 federal tax filing gobierno. Free 2012 federal tax filing pr. Free 2012 federal tax filing The addresses and phone numbers listed above are subject to change. Free 2012 federal tax filing Which Returns To File Generally, you will file returns with both Puerto Rico and the United States. Free 2012 federal tax filing The income reported on each return depends on your residency status in Puerto Rico. Free 2012 federal tax filing To determine if you are a bona fide resident of Puerto Rico, see the information in chapter 1. Free 2012 federal tax filing Bona Fide Resident of Puerto Rico Bona fide residents of Puerto Rico will generally pay tax to Puerto Rico on their worldwide income. Free 2012 federal tax filing U. Free 2012 federal tax filing S. Free 2012 federal tax filing citizen or resident alien. Free 2012 federal tax filing   If you are a U. Free 2012 federal tax filing S. Free 2012 federal tax filing citizen or resident alien and also a bona fide resident of Puerto Rico during the entire tax year, you generally must file the following returns. Free 2012 federal tax filing A Puerto Rico tax return reporting income from worldwide sources. Free 2012 federal tax filing If you report U. Free 2012 federal tax filing S. Free 2012 federal tax filing source income on your Puerto Rico tax return, you can claim a credit against your Puerto Rico tax, up to the amount allowable, for income taxes paid to the United States. Free 2012 federal tax filing A U. Free 2012 federal tax filing S. Free 2012 federal tax filing tax return reporting income from worldwide sources, but excluding Puerto Rico source income. Free 2012 federal tax filing However, see U. Free 2012 federal tax filing S. Free 2012 federal tax filing Government employees under Special Rules for Puerto Rico, later, for an exception. Free 2012 federal tax filing If you are excluding Puerto Rico income on your U. Free 2012 federal tax filing S. Free 2012 federal tax filing tax return, you will not be allowed any deductions or credits that are directly or indirectly allocable to exempt income. Free 2012 federal tax filing For more information, see Special Rules for Completing Your U. Free 2012 federal tax filing S. Free 2012 federal tax filing Tax Return in chapter 4. Free 2012 federal tax filing If all of your income is from Puerto Rico sources, you are not required to file a U. Free 2012 federal tax filing S. Free 2012 federal tax filing tax return. Free 2012 federal tax filing However, if you have self-employment income, see Self-employment tax , later. Free 2012 federal tax filing U. Free 2012 federal tax filing S. Free 2012 federal tax filing citizen only. Free 2012 federal tax filing   If you are a U. Free 2012 federal tax filing S. Free 2012 federal tax filing citizen, you may also qualify under these rules if you have been a bona fide resident of Puerto Rico for at least 2 years before moving from Puerto Rico. Free 2012 federal tax filing In this case, you can exclude your income derived from sources within Puerto Rico (but not wages and salaries received as an employee of the U. Free 2012 federal tax filing S. Free 2012 federal tax filing Government or its agencies) that you earned before the date you changed your residence. Free 2012 federal tax filing For more information, see Puerto Rico under Year of Moving From a Possession in chapter 1. Free 2012 federal tax filing Nonresident alien. Free 2012 federal tax filing   If you are a bona fide resident of Puerto Rico during the entire tax year, but a nonresident alien of the United States, you generally must file the following returns. Free 2012 federal tax filing A Puerto Rico tax return reporting income from worldwide sources. Free 2012 federal tax filing If you report U. Free 2012 federal tax filing S. Free 2012 federal tax filing source income on your Puerto Rico tax return, you can claim a credit against your Puerto Rico tax, up to the amount allowable, for income taxes paid to the United States. Free 2012 federal tax filing A U. Free 2012 federal tax filing S. Free 2012 federal tax filing tax return (Form 1040) reporting income from worldwide sources, but excluding Puerto Rico source income (other than amounts for services performed as an employee of the United States or any of its agencies). Free 2012 federal tax filing For tax purposes other than reporting income, however, you will be treated as a nonresident alien individual. Free 2012 federal tax filing For example, you are not allowed the standard deduction, you cannot file a joint return, and you are not allowed a deduction for a dependent unless that person is a citizen or national of the United States. Free 2012 federal tax filing There are also limitations on what deductions and credits are allowed. Free 2012 federal tax filing See Publication 519 for more information. Free 2012 federal tax filing Self-employment tax. Free 2012 federal tax filing   If you have no U. Free 2012 federal tax filing S. Free 2012 federal tax filing filing requirement but have income that is effectively connected with a trade or business in Puerto Rico, you must file Form 1040-SS or Form 1040-PR with the United States to report your self-employment income and, if necessary, pay self-employment tax. Free 2012 federal tax filing Additional Medicare Tax. Free 2012 federal tax filing   Beginning in 2013, you may be required to pay Additional Medicare Tax. Free 2012 federal tax filing Also, you may need to report Additional Medicare Tax withheld by your employer. Free 2012 federal tax filing For more information see Additional Medicare Tax under Special Rules for Completing Your U. Free 2012 federal tax filing S. Free 2012 federal tax filing Tax Return in chapter 4. Free 2012 federal tax filing Net Investment Income Tax. Free 2012 federal tax filing   Beginning in 2013, the Net Investment Income Tax (NIIT) is 3. Free 2012 federal tax filing 8 percent of the lesser of an individual’s net investment income or the excess of the individual’s modified adjusted gross income over a specified threshold amount. Free 2012 federal tax filing The NIIT will apply to a bona fide resident of Puerto Rico if a taxpayer has modified adjusted gross income from sources outside of Puerto Rico that exceeds a specified threshold amount, e. Free 2012 federal tax filing g. Free 2012 federal tax filing , $200,000 for single filers. Free 2012 federal tax filing The NIIT does not apply to any individual who is a nonresident alien with respect to the United States. Free 2012 federal tax filing See Form 8960, Net Investment Income Tax—Individuals, Estates, and Trusts, and its instructions for more information on the NIIT. Free 2012 federal tax filing Estimated tax payments. Free 2012 federal tax filing   To see if you are required to make payments of estimated income tax, self-employment tax, Additional Medicare Tax, and/or Net Investment Income Tax to the IRS, get Form 1040-ES (or Form 1040-ES(PR)). Free 2012 federal tax filing   To pay by check or money order, send your payment with the Form 1040-ES (or Form 1040-ES(PR)) payment voucher to: Internal Revenue Service P. Free 2012 federal tax filing O. Free 2012 federal tax filing Box 1300 Charlotte, NC 28201-1300 USA   To get information on paying electronically (by credit or debit card, or through the Electronic Federal Tax Payment System (EFTPS)), go to www. Free 2012 federal tax filing irs. Free 2012 federal tax filing gov/e-pay. Free 2012 federal tax filing   For information on making estimated income tax payments to Hacienda, see Where To Get Forms and Information , earlier. Free 2012 federal tax filing Not a Bona Fide Resident of Puerto Rico An individual who is not a bona fide resident of Puerto Rico for the tax year generally files tax returns with both Puerto Rico and the United States. Free 2012 federal tax filing U. Free 2012 federal tax filing S. Free 2012 federal tax filing citizen or resident alien. Free 2012 federal tax filing   If you are a U. Free 2012 federal tax filing S. Free 2012 federal tax filing citizen or resident alien but not a bona fide resident of Puerto Rico during the entire tax year, you generally must file the following returns. Free 2012 federal tax filing A Puerto Rico tax return reporting only your income from Puerto Rico sources. Free 2012 federal tax filing Wages for services performed in Puerto Rico, whether for a private employer, the U. Free 2012 federal tax filing S. Free 2012 federal tax filing Government, or otherwise, is income from Puerto Rico sources. Free 2012 federal tax filing A U. Free 2012 federal tax filing S. Free 2012 federal tax filing tax return reporting income from worldwide sources. Free 2012 federal tax filing Generally, you can claim a foreign tax credit for income taxes paid to Puerto Rico on the Puerto Rico income that is not exempt from U. Free 2012 federal tax filing S. Free 2012 federal tax filing taxes (see chapter 4 for more information). Free 2012 federal tax filing Nonresident alien. Free 2012 federal tax filing   If you are a nonresident alien of the United States who does not qualify as a bona fide resident of Puerto Rico for the entire tax year, you generally must file the following returns. Free 2012 federal tax filing A Puerto Rico tax return reporting only your income from Puerto Rico sources. Free 2012 federal tax filing Wages for services performed in Puerto Rico, whether for a private employer, the U. Free 2012 federal tax filing S. Free 2012 federal tax filing Government, or otherwise, is income from Puerto Rico sources. Free 2012 federal tax filing A U. Free 2012 federal tax filing S. Free 2012 federal tax filing tax return (Form 1040NR) according to the rules for a nonresident alien. Free 2012 federal tax filing See the Instructions for Form 1040NR. Free 2012 federal tax filing De minimis exception to determining source of income. Free 2012 federal tax filing   In certain situations you will not have income from a possession. Free 2012 federal tax filing See De minimis exception under Compensation for Labor or Personal Services in chapter 2. Free 2012 federal tax filing Use the addresses listed below to file your U. Free 2012 federal tax filing S. Free 2012 federal tax filing and Puerto Rico income tax returns. Free 2012 federal tax filing If you are not including a check or a money order, send your U. Free 2012 federal tax filing S. Free 2012 federal tax filing tax return and all attachments to: Department of the Treasury Internal Revenue Service Austin, TX 73301-0215 USA If you are including a check or a money order, send your U. Free 2012 federal tax filing S. Free 2012 federal tax filing tax return and all attachments to: Internal Revenue Service P. Free 2012 federal tax filing O. Free 2012 federal tax filing Box 1303 Charlotte, NC 28201-1303 USA If you request a refund on your Puerto Rico return, send your Puerto Rico tax return and all attachments to: Departamento de Hacienda P. Free 2012 federal tax filing O. Free 2012 federal tax filing Box 50072 San Juan, PR 00902-6272 Send all other Puerto Rico tax returns, with all attachments, to: Departamento de Hacienda P. Free 2012 federal tax filing O. Free 2012 federal tax filing Box 9022501 San Juan, PR 00902-2501 Special Rules for Puerto Rico In addition to the general rules given earlier for filing U. Free 2012 federal tax filing S. Free 2012 federal tax filing and Puerto Rico tax returns, there are some special rules that apply to certain individuals and types of income. Free 2012 federal tax filing U. Free 2012 federal tax filing S. Free 2012 federal tax filing Government employees. Free 2012 federal tax filing   Wages and cost-of-living allowances paid by the U. Free 2012 federal tax filing S. Free 2012 federal tax filing Government (or one of its agencies) for working in Puerto Rico are subject to Puerto Rico tax. Free 2012 federal tax filing However, the cost-of-living allowances are excluded from Puerto Rico gross income up to the amount exempt from U. Free 2012 federal tax filing S. Free 2012 federal tax filing tax. Free 2012 federal tax filing In order to claim this exclusion, you must: Include with your Puerto Rico tax return evidence to show the amount received during the year, and Be in full compliance with your Puerto Rico tax responsibilities. Free 2012 federal tax filing   These wages are also subject to U. Free 2012 federal tax filing S. Free 2012 federal tax filing tax, but the cost-of-living allowances are excludable. Free 2012 federal tax filing A foreign tax credit is available in order to avoid double taxation. Free 2012 federal tax filing U. Free 2012 federal tax filing S. Free 2012 federal tax filing Armed Forces. Free 2012 federal tax filing   Bona fide residents of Puerto Rico include military personnel whose official home of record is Puerto Rico. Free 2012 federal tax filing Civilian spouse of active duty member of the U. Free 2012 federal tax filing S. Free 2012 federal tax filing Armed Forces. Free 2012 federal tax filing   If, under the rule discussed at the beginning of chapter 1 (see Special rule for civilian spouse of active duty member of the U. Free 2012 federal tax filing S. Free 2012 federal tax filing Armed Forces ), your tax residence is Puerto Rico, follow the guidance in the section for bona fide residents under Which Returns To File, earlier. Free 2012 federal tax filing However, if your tax residence is one of the 50 states or the District of Columbia and your only income from Puerto Rico is from wages, salaries, tips, or self-employment, you will be taxed on your worldwide income and file only a U. Free 2012 federal tax filing S. Free 2012 federal tax filing tax return (Form 1040) and a state and/or local tax return, if required. Free 2012 federal tax filing If you have income from Puerto Rico other than wages, salaries, tips, or self-employment that is considered to be sourced in that possession (see Table 2-1 ), contact the Hacienda for guidance. Free 2012 federal tax filing Income from sources outside Puerto Rico and the United States. Free 2012 federal tax filing   If you are a U. Free 2012 federal tax filing S. Free 2012 federal tax filing citizen and bona fide resident of Puerto Rico and you have income from sources outside both Puerto Rico and the United States, that income is treated as foreign source income under both tax systems. Free 2012 federal tax filing In addition to your Puerto Rico and U. Free 2012 federal tax filing S. Free 2012 federal tax filing tax returns, you may also have to file a return with the country or possession from which your outside income was derived. Free 2012 federal tax filing To avoid double taxation, a foreign tax credit is generally available for either the U. Free 2012 federal tax filing S. Free 2012 federal tax filing or Puerto Rico return. Free 2012 federal tax filing Example. Free 2012 federal tax filing Thomas Red is a bona fide resident of Puerto Rico and a U. Free 2012 federal tax filing S. Free 2012 federal tax filing citizen. Free 2012 federal tax filing He traveled to the Dominican Republic and worked in the construction industry for 1 month. Free 2012 federal tax filing His wages were $20,000. Free 2012 federal tax filing Because the wages were earned outside Puerto Rico and outside the United States, Thomas must file a tax return with Puerto Rico and the United States. Free 2012 federal tax filing He may also have to file a tax return with the Dominican Republic. Free 2012 federal tax filing Moving expense deduction. Free 2012 federal tax filing   Generally, expenses of a move to Puerto Rico are directly attributable to wages, salaries, and other earned income from Puerto Rico. Free 2012 federal tax filing Likewise, the expenses of a move back to the United States are generally attributable to U. Free 2012 federal tax filing S. Free 2012 federal tax filing earned income. Free 2012 federal tax filing   If your move was to Puerto Rico, report your deduction for moving expenses as follows. Free 2012 federal tax filing If you are a bona fide resident in the tax year of your move, enter your deductible expenses on your Puerto Rico tax return. Free 2012 federal tax filing If you are not a bona fide resident, enter your deductible expenses on both your Puerto Rico and U. Free 2012 federal tax filing S. Free 2012 federal tax filing tax returns. Free 2012 federal tax filing Also, for purposes of a tax credit against your U. Free 2012 federal tax filing S. Free 2012 federal tax filing tax liability, reduce your Puerto Rico “general category income” on Form 1116, line 1a, by entering the deductible moving expenses on line 2. Free 2012 federal tax filing   If your move was to the United States, complete Form 3903 and enter the deductible amount on Form 1040, line 26. Free 2012 federal tax filing Additional child tax credit. Free 2012 federal tax filing   If you are not required to file a U. Free 2012 federal tax filing S. Free 2012 federal tax filing income tax return, this credit is available only if you meet all three of the following conditions. Free 2012 federal tax filing You were a bona fide resident of Puerto Rico during the entire tax year. Free 2012 federal tax filing Social security and Medicare taxes were withheld from your wages or you paid self-employment tax. Free 2012 federal tax filing You had three or more qualifying children. Free 2012 federal tax filing (For the definition of a qualifying child, see the instructions for Form 1040-PR or Form 1040-SS. Free 2012 federal tax filing ) If your income exceeds certain levels, you may be disqualified from receiving this credit. Free 2012 federal tax filing Use Form 1040-PR or Form 1040-SS to claim the additional child tax credit. Free 2012 federal tax filing Advice about possible tax benefits under the Puerto Rico investment incentive programs is available from the Puerto Rico tax authorities. Free 2012 federal tax filing Double Taxation A mutual agreement procedure exists to settle cases of double taxation between the United States and the Commonwealth of Puerto Rico. Free 2012 federal tax filing See Double Taxation in chapter 4. Free 2012 federal tax filing The Commonwealth of the Northern Mariana Islands The Commonwealth of the Northern Mariana Islands (CNMI) has its own tax system based partly on the same tax laws and tax rates that apply to the United States and partly on local taxes imposed by the CNMI government. Free 2012 federal tax filing Where To Get Forms and Information Requests for advice about CNMI residency and tax matters should be addressed to: Commonwealth of the Northern Mariana Islands  Division of Revenue and Taxation P. Free 2012 federal tax filing O. Free 2012 federal tax filing Box 5234 CHRB Dandan Commercial Center First Floor Rm #8  Saipan, MP 96950 You can order forms and publications by calling (670) 664-1000. Free 2012 federal tax filing You can order forms and publications through the fax at (670) 664-1015. Free 2012 federal tax filing You can get forms and publications at www. Free 2012 federal tax filing cnmidof. Free 2012 federal tax filing net. Free 2012 federal tax filing The addresses and phone numbers listed above are subject to change. Free 2012 federal tax filing Which Return To File In general, all individuals with income from the CNMI will file only one return, either to the CNMI or to the United States. Free 2012 federal tax filing Your residency status with regard to the CNMI determines which return you will file. Free 2012 federal tax filing Be sure to check the Special Rules for the CNMI , later, for additional information about filing your tax return. Free 2012 federal tax filing Bona Fide Resident of the CNMI If you are a U. Free 2012 federal tax filing S. Free 2012 federal tax filing citizen, resident alien, or nonresident alien and a bona fide resident of the CNMI during the entire tax year, file your income tax return with the CNMI. Free 2012 federal tax filing Include income from worldwide sources on your CNMI return. Free 2012 federal tax filing In determining your total tax payments, include all income tax withheld by either the CNMI or the United States, any credit for an overpayment of income tax to either the CNMI or the United States, and any payments of estimated tax to either the CNMI or the United States. Free 2012 federal tax filing Pay any balance of tax due with your tax return. Free 2012 federal tax filing Generally, if you properly file your return with, and fully pay your income tax to, the CNMI, then you are not liable for filing an income tax return with, or for paying tax to, the United States for the tax year. Free 2012 federal tax filing However, if you were self-employed in 2013, see Self-employment tax , later. Free 2012 federal tax filing Example. Free 2012 federal tax filing David Gold was a bona fide resident of the CNMI for 2013. Free 2012 federal tax filing He received wages of $30,000 paid by a private employer in the CNMI and dividends of $4,000 from U. Free 2012 federal tax filing S. Free 2012 federal tax filing corporations that carry on business mainly in the United States. Free 2012 federal tax filing He must file a 2013 income tax return with the CNMI Division of Revenue and Taxation. Free 2012 federal tax filing He reports his total income of $34,000 on the CNMI return. Free 2012 federal tax filing   If you are a bona fide resident of the CNMI for the entire tax year, send your return and all attachments to the Division of Revenue and Taxation at the address given earlier. Free 2012 federal tax filing U. Free 2012 federal tax filing S. Free 2012 federal tax filing Citizen or Resident Alien (Other Than a Bona Fide Resident of the CNMI) If you have income from sources within the CNMI and are a U. Free 2012 federal tax filing S. Free 2012 federal tax filing citizen or resident alien, but you are not a bona fide resident of the CNMI during the entire tax year, file your income tax return with the United States. Free 2012 federal tax filing Include income from worldwide sources on your U. Free 2012 federal tax filing S. Free 2012 federal tax filing return. Free 2012 federal tax filing In determining your total tax payments, include all income tax withheld by either the United States or the CNMI, any credit for an overpayment of income tax to either the United States or the CNMI, and any payments of estimated tax to either the United States or the CNMI. Free 2012 federal tax filing Pay any balance of tax due with your tax return. Free 2012 federal tax filing Note. Free 2012 federal tax filing You may also need to complete Form 5074. Free 2012 federal tax filing You are not liable for filing an income tax return with, or for paying tax to, the CNMI for the tax year. Free 2012 federal tax filing Form 5074. Free 2012 federal tax filing   If you file a U. Free 2012 federal tax filing S. Free 2012 federal tax filing income tax return, attach a completed Form 5074 if you (and your spouse if filing a joint return) have: Adjusted gross income of $50,000 or more for the tax year, and Gross income of $5,000 or more from sources within the CNMI. Free 2012 federal tax filing   The United States and the CNMI use this form to divide your income taxes. Free 2012 federal tax filing   There is an example of a filled-in Form 5074 in chapter 5. Free 2012 federal tax filing De minimis exception to determining source of income. Free 2012 federal tax filing   In certain situations you will not have income from a possession. Free 2012 federal tax filing See De minimis exception under Compensation for Labor or Personal Services in chapter 2. Free 2012 federal tax filing Citizen or resident alien of the United States but not a bona fide resident of the CNMI. Free 2012 federal tax filing   If you are a citizen or resident alien of the United States but not a bona fide resident of the CNMI during the entire tax year and you are not including a check or a money order, send your return and all attachments to: Department of the Treasury Internal Revenue Service Austin, TX 73301-0215 USA   If you are including a check or a money order, send your U. Free 2012 federal tax filing S. Free 2012 federal tax filing tax return and all attachments to: Internal Revenue Service P. Free 2012 federal tax filing O. Free 2012 federal tax filing Box 1303 Charlotte, NC 28201-1303 USA Nonresident Alien (Other Than a Bona Fide Resident of the CNMI) If you are a nonresident alien of the United States who does not qualify as a bona fide resident of the CNMI for the entire tax year, you generally must file the following returns. Free 2012 federal tax filing A CNMI tax return reporting only your income from sources within the CNMI. Free 2012 federal tax filing In this situation, wages for services performed in the CNMI, whether for a private employer, the U. Free 2012 federal tax filing S. Free 2012 federal tax filing Government, or otherwise, is income from sources within the CNMI. Free 2012 federal tax filing A U. Free 2012 federal tax filing S. Free 2012 federal tax filing tax return (Form 1040NR) reporting U. Free 2012 federal tax filing S. Free 2012 federal tax filing source income according to the rules for a nonresident alien. Free 2012 federal tax filing See the instructions for Form 1040NR. Free 2012 federal tax filing If you are not a bona fide resident of the CNMI during the entire tax year and you are not including a check or a money order, send your U. Free 2012 federal tax filing S. Free 2012 federal tax filing tax return and all attachments to: Department of the Treasury Internal Revenue Service Austin, TX 73301-0215 USA If you are including a check or a money order, send your U. Free 2012 federal tax filing S. Free 2012 federal tax filing tax return and all attachments to:  Internal Revenue Service P. Free 2012 federal tax filing O. Free 2012 federal tax filing Box 1303 Charlotte, NC 28201-1303 USA Send your CNMI tax return and all attachments to:  Department of Finance Division of Revenue and Taxation Commonwealth of the Northern Mariana Islands P. Free 2012 federal tax filing O. Free 2012 federal tax filing Box 5234 CHRB Saipan, MP 96950 Citizen of the CNMI If you are a citizen of the CNMI (meaning that you were born or naturalized in the CNMI) but not otherwise a U. Free 2012 federal tax filing S. Free 2012 federal tax filing citizen or a U. Free 2012 federal tax filing S. Free 2012 federal tax filing resident alien during the tax year, file your income tax return with the CNMI. Free 2012 federal tax filing Include income from worldwide sources on your CNMI return. Free 2012 federal tax filing Take into account tax withheld by both jurisdictions in determining if there is tax overdue or an overpayment. Free 2012 federal tax filing Pay any balance of tax due with your tax return. Free 2012 federal tax filing Send your return and all attachments to:   Department of Finance Division of Revenue and Taxation Commonwealth of the Northern Mariana Islands P. Free 2012 federal tax filing O. Free 2012 federal tax filing Box 5234 CHRB Saipan, MP 96950 Special Rules for the CNMI Special rules apply to certain types of income, employment, and filing status. Free 2012 federal tax filing Joint return. Free 2012 federal tax filing   If you file a joint return, file your return (and pay the tax) with the jurisdiction where the spouse who has the greater adjusted gross income (AGI) would have to file if you were filing separately. Free 2012 federal tax filing If the spouse with the greater AGI is a bona fide resident of the CNMI during the entire tax year, file the joint return with the CNMI. Free 2012 federal tax filing If the spouse with the greater AGI is a U. Free 2012 federal tax filing S. Free 2012 federal tax filing citizen or resident alien but not a bona fide resident of the CNMI during the entire tax year, file your joint return with the United States. Free 2012 federal tax filing For this purpose, income is determined without regard to community property laws. Free 2012 federal tax filing Example. Free 2012 federal tax filing Marsha Blue, a U. Free 2012 federal tax filing S. Free 2012 federal tax filing citizen, was a resident of the United States, and her spouse, a citizen of the CNMI, was a bona fide resident of the CNMI during the entire tax year. Free 2012 federal tax filing Marsha earned $65,000 as a computer programmer in the United States. Free 2012 federal tax filing Her spouse earned $20,000 as an artist in the CNMI. Free 2012 federal tax filing Marsha and her spouse will file a joint return. Free 2012 federal tax filing Because Marsha has the greater AGI, she and her spouse must file their return with the United States and report the entire $85,000 on that return. Free 2012 federal tax filing U. Free 2012 federal tax filing S. Free 2012 federal tax filing Armed Forces. Free 2012 federal tax filing   If you are a member of the U. Free 2012 federal tax filing S. Free 2012 federal tax filing Armed Forces who qualified as a bona fide resident of the CNMI in a prior tax year, your absence from the CNMI solely in compliance with military orders will not change your bona fide residency. Free 2012 federal tax filing If you did not qualify as a bona fide resident of the CNMI in a prior tax year, your presence in the CNMI solely in compliance with military orders will not qualify you as a bona fide resident of the CNMI. Free 2012 federal tax filing Civilian spouse of active duty member of the U. Free 2012 federal tax filing S. Free 2012 federal tax filing Armed Forces. Free 2012 federal tax filing   If, under the rule discussed at the beginning of chapter 1 (see Special rule for civilian spouse of active duty member of the U. Free 2012 federal tax filing S. Free 2012 federal tax filing Armed Forces ), your tax residence is the CNMI, follow the guidance in the section for bona fide residents under Which Return To File, earlier. Free 2012 federal tax filing However, if your tax residence is one of the 50 states or the District of Columbia and your only income from the CNMI is from wages, salaries, tips, or self-employment, you will be taxed on your worldwide income and file only a U. Free 2012 federal tax filing S. Free 2012 federal tax filing tax return (Form 1040) and a state and/or local tax return, if required. Free 2012 federal tax filing If you have income from the CNMI other than wages, salaries, tips, or self-employment that is considered to be sourced in that possession (see Table 2-1), you may need to file Form 5074 with your U. Free 2012 federal tax filing S. Free 2012 federal tax filing tax return. Free 2012 federal tax filing Moving expense deduction. Free 2012 federal tax filing   Generally, expenses of a move to the CNMI are directly attributable to wages, salaries, and other earned income from the CNMI. Free 2012 federal tax filing Likewise, the expenses of a move back to the United States are generally attributable to U. Free 2012 federal tax filing S. Free 2012 federal tax filing earned income. Free 2012 federal tax filing   If your move was to the CNMI, report your deduction for moving expenses as follows. Free 2012 federal tax filing If you are a bona fide resident in the tax year of your move, enter your deductible expenses on your CNMI tax return. Free 2012 federal tax filing If you are not a bona fide resident, enter your deductible expenses on Form 3903 and enter the deductible amount on Form 1040, line 26, and on Form 5074, line 20. Free 2012 federal tax filing   If your move was to the United States, complete Form 3903 and enter the deductible amount on Form 1040, line 26. Free 2012 federal tax filing Foreign tax credit. Free 2012 federal tax filing   Under the filing rules explained earlier, individuals with CNMI source income normally will not claim a foreign tax credit on a U. Free 2012 federal tax filing S. Free 2012 federal tax filing income tax return for tax paid to the CNMI. Free 2012 federal tax filing Self-employment tax. Free 2012 federal tax filing   If you have no U. Free 2012 federal tax filing S. Free 2012 federal tax filing filing requirement, but have income that is effectively connected with a trade or business in the CNMI, you must file Form 1040-SS with the United States to report your self-employment income and, if necessary, pay self-employment tax. Free 2012 federal tax filing Additional Medicare Tax. Free 2012 federal tax filing   Beginning in 2013, you may be required to pay Additional Medicare Tax. Free 2012 federal tax filing Also, you may need to report Additional Medicare Tax withheld by your employer. Free 2012 federal tax filing For more information see Additional Medicare Tax under Special Rules for Completing Your U. Free 2012 federal tax filing S. Free 2012 federal tax filing Tax Return in chapter 4. Free 2012 federal tax filing Estimated tax payments. Free 2012 federal tax filing   To see if you are required to make payments of estimated income tax, self-employment tax, and/or Additional Medicare Tax to the IRS, get Form 1040-ES. Free 2012 federal tax filing Payment of estimated tax. Free 2012 federal tax filing   If you must pay estimated tax, make your payment to the jurisdiction where you would file your income tax return if your tax year were to end on the date your first estimated tax payment is due. Free 2012 federal tax filing Generally, you should make the rest of your quarterly payments of estimated tax to the jurisdiction where you made your first payment of estimated tax. Free 2012 federal tax filing However, estimated tax payments to either jurisdiction will be treated as payments to the jurisdiction with which you file the tax return. Free 2012 federal tax filing   If you make a joint payment of estimated tax, make your payment to the jurisdiction where the spouse who has the greater estimated AGI would have to pay (if a separate payment were made). Free 2012 federal tax filing For this purpose, income is determined without regard to community property laws. Free 2012 federal tax filing Early payment. Free 2012 federal tax filing   If you make your first payment of estimated tax early, follow the rules given earlier to determine where to send it. Free 2012 federal tax filing If you send it to the wrong jurisdiction, make all later payments to the jurisdiction to which the first payment should have been sent. Free 2012 federal tax filing   To pay by check or money order, send your payment with the Form 1040-ES payment voucher to:  Internal Revenue Service P. Free 2012 federal tax filing O. Free 2012 federal tax filing Box 1300 Charlotte, NC 28201-1300 USA   To get information on paying electronically (by credit or debit card, or through the Electronic Federal Tax Payment System (EFTPS)), go to www. Free 2012 federal tax filing irs. Free 2012 federal tax filing gov/e-pay. Free 2012 federal tax filing   For information on making estimated income tax payments to the CNMI, see Where To Get Forms and Information , earlier. Free 2012 federal tax filing Double Taxation A mutual agreement procedure exists to settle cases of double taxation between the United States and the CNMI. Free 2012 federal tax filing See Double Taxation in chapter 4. Free 2012 federal tax filing Guam Guam has its own tax system based on the same tax laws and tax rates that apply in the United States. Free 2012 federal tax filing Where To Get Forms and Information Requests for advice about Guam residency and tax matters should be addressed to: Department of Revenue and Taxation Government of Guam P. Free 2012 federal tax filing O. Free 2012 federal tax filing Box 23607 GMF, GU 96921 You can order forms and publications by calling (671) 635-1840 or (671) 635-1841. Free 2012 federal tax filing You can order forms and publications through the fax at (671) 633-2643. Free 2012 federal tax filing You can get forms and publications at www. Free 2012 federal tax filing guamtax. Free 2012 federal tax filing com. Free 2012 federal tax filing The addresses and phone numbers listed above are subject to change. Free 2012 federal tax filing Which Return To File Bona fide residents of Guam are subject to special U. Free 2012 federal tax filing S. Free 2012 federal tax filing tax rules. Free 2012 federal tax filing In general, all individuals with income from Guam will file only one return—either to Guam or the United States. Free 2012 federal tax filing Bona Fide Resident of Guam If you are a bona fide resident of Guam during the entire tax year, file your return with Guam. Free 2012 federal tax filing This applies to all bona fide residents who are citizens, resident aliens, or nonresident aliens of the United States. Free 2012 federal tax filing Include income from worldwide sources on your Guam return. Free 2012 federal tax filing In determining your total tax payments, include all income tax withheld by either Guam or the United States, any credit for an overpayment of income tax to either Guam or the United States, and any payments of estimated tax to either Guam or the United States. Free 2012 federal tax filing Pay any balance of tax due with your tax return. Free 2012 federal tax filing Generally, if you properly file your return with, and fully pay your income tax to, Guam, then you are not liable for filing an income tax return with, or for paying tax to, the United States. Free 2012 federal tax filing However, if you were self-employed in 2013, see Self-employment tax , later. Free 2012 federal tax filing Example. Free 2012 federal tax filing Gary Barker was a bona fide resident of Guam for 2013. Free 2012 federal tax filing He received wages of $25,000 paid by a private employer in Guam and dividends of $2,000 from U. Free 2012 federal tax filing S. Free 2012 federal tax filing corporations that carry on business mainly in the United States. Free 2012 federal tax filing He must file a 2013 income tax return with the Government of Guam. Free 2012 federal tax filing He reports his total income of $27,000 on the Guam return. Free 2012 federal tax filing If you are a bona fide resident of Guam for the entire tax year, send your return and all attachments to:  Department of Revenue and Taxation Government of Guam P. Free 2012 federal tax filing O. Free 2012 federal tax filing Box 23607 GMF, GU 96921 U. Free 2012 federal tax filing S. Free 2012 federal tax filing Citizen or Resident Alien (Other Than a Bona Fide Resident of Guam) If you have income from sources within Guam and are a U. Free 2012 federal tax filing S. Free 2012 federal tax filing citizen or resident alien, but you are not a bona fide resident of Guam during the entire tax year, file your income tax return with the United States. Free 2012 federal tax filing Include income from worldwide sources on your U. Free 2012 federal tax filing S. Free 2012 federal tax filing return. Free 2012 federal tax filing In determining your total tax payments, include all income tax withheld by either the United States or Guam, any credit for an overpayment of income tax to either the United States or Guam, and any payments of estimated tax to either the United States or Guam. Free 2012 federal tax filing Pay any balance of tax due with your tax return. Free 2012 federal tax filing You may also need to complete Form 5074. Free 2012 federal tax filing You are not liable for filing an income tax return with, or for paying tax to, Guam for the tax year. Free 2012 federal tax filing Form 5074. Free 2012 federal tax filing   If you file a U. Free 2012 federal tax filing S. Free 2012 federal tax filing income tax return, attach a completed Form 5074 if you (and your spouse if filing a joint return) have: Adjusted gross income of $50,000 or more for the tax year, and Gross income of $5,000 or more from sources within Guam. Free 2012 federal tax filing   The United States and Guam use this form to divide your income taxes. Free 2012 federal tax filing   See the Illustrated Example of Form 5074 in chapter 5. Free 2012 federal tax filing De minimis exception to determining source of income. Free 2012 federal tax filing   In certain situations you will not have income from a possession. Free 2012 federal tax filing See De minimis exception under Compensation for Labor or Personal Services in chapter 2. Free 2012 federal tax filing   If you are a citizen or resident alien of the United States but not a bona fide resident of Guam during the entire tax year and you are not including a check or money order, send your U. Free 2012 federal tax filing S. Free 2012 federal tax filing tax return and all attachments (including Form 5074) to:  Department of the Treasury Internal Revenue Service Austin, TX 73301-0215 USA   If you are including a check or a money order, send your U. Free 2012 federal tax filing S. Free 2012 federal tax filing tax return and all attachments (including Form 5074) to:  Internal Revenue Service P. Free 2012 federal tax filing O. Free 2012 federal tax filing Box 1303 Charlotte, NC 28201-1303 USA Nonresident Alien (Other Than a Bona Fide Resident of Guam) If you are a nonresident alien of the United States who does not qualify as a bona fide resident of Guam for the entire tax year, you generally must file the following returns. Free 2012 federal tax filing A Guam tax return reporting only your income from sources within Guam. Free 2012 federal tax filing In this situation, wages for services performed in Guam, whether for a private employer, the U. Free 2012 federal tax filing S. Free 2012 federal tax filing Government, or otherwise, is income from sources within Guam. Free 2012 federal tax filing A U. Free 2012 federal tax filing S. Free 2012 federal tax filing tax return (Form 1040NR) reporting U. Free 2012 federal tax filing S. Free 2012 federal tax filing source income according to the rules for a nonresident alien. Free 2012 federal tax filing See the instructions for Form 1040NR. Free 2012 federal tax filing If you are not a bona fide resident of Guam during the entire tax year and you are not including a check or money order, send your U. Free 2012 federal tax filing S. Free 2012 federal tax filing tax return and all attachments to:  Department of the Treasury Internal Revenue Service Austin, TX 73301-0215 USA If you are including a check or a money order, send your U. Free 2012 federal tax filing S. Free 2012 federal tax filing tax return and all attachments to:  Internal Revenue Service P. Free 2012 federal tax filing O. Free 2012 federal tax filing Box 1303 Charlotte, NC 28201-1303 USA Send your Guam tax return and all attachments to:   Department of Revenue and Taxation P. Free 2012 federal tax filing O. Free 2012 federal tax filing Box 23607 GMF, GU 96921 Citizen of Guam If you are a citizen of Guam (meaning that you were born or naturalized in Guam) but not otherwise a U. Free 2012 federal tax filing S. Free 2012 federal tax filing citizen or a U. Free 2012 federal tax filing S. Free 2012 federal tax filing resident alien during the tax year, file your income tax return with Guam. Free 2012 federal tax filing Include income from worldwide sources on your Guam return. Free 2012 federal tax filing Take into account tax withheld by both jurisdictions in determining if there is tax overdue or an overpayment. Free 2012 federal tax filing Pay any balance of tax due with your tax return. Free 2012 federal tax filing If you are a citizen of Guam, send your return and all attachments to:  Department of Revenue and Taxation Government of Guam P. Free 2012 federal tax filing O. Free 2012 federal tax filing Box 23607 GMF, GU 96921 Special Rules for Guam Special rules apply to certain types of income, employment, and filing status. Free 2012 federal tax filing Joint return. Free 2012 federal tax filing   If you file a joint return, you should file your return (and pay the tax) with the jurisdiction where the spouse who has the greater adjusted gross income (AGI) would have to file if you were filing separately. Free 2012 federal tax filing If the spouse with the greater AGI is a bona fide resident of Guam during the entire tax year, file the joint return with Guam. Free 2012 federal tax filing If the spouse with the greater AGI is a U. Free 2012 federal tax filing S. Free 2012 federal tax filing citizen or resident alien but not a bona fide resident of Guam during the entire tax year, file the joint return with the United States. Free 2012 federal tax filing For this purpose, income is determined without regard to community property laws. Free 2012 federal tax filing Example. Free 2012 federal tax filing Bill Whiting, a U. Free 2012 federal tax filing S. Free 2012 federal tax filing citizen, was a resident of the United States, and his spouse, a citizen of Guam, was a bona fide resident of Guam during the entire tax year. Free 2012 federal tax filing Bill earned $45,000 as an engineer in the United States. Free 2012 federal tax filing His spouse earned $15,000 as a teacher in Guam. Free 2012 federal tax filing Bill and his spouse will file a joint return. Free 2012 federal tax filing Because Bill has the greater AGI, he and his spouse must file their return with the United States and report the entire $60,000 on that return. Free 2012 federal tax filing U. Free 2012 federal tax filing S. Free 2012 federal tax filing Armed Forces. Free 2012 federal tax filing   If you are a member of the U. Free 2012 federal tax filing S. Free 2012 federal tax filing Armed Forces who qualified as a bona fide resident of Guam in a prior tax year, your absence from Guam solely in compliance with military orders will not change your bona fide residency. Free 2012 federal tax filing If you did not qualify as a bona fide resident of Guam in a prior tax year, your presence in Guam solely in compliance with military orders will not qualify you as a bona fide resident of Guam. Free 2012 federal tax filing Civilian spouse of active duty member of the U. Free 2012 federal tax filing S. Free 2012 federal tax filing Armed Forces. Free 2012 federal tax filing   If, under the rule discussed at the beginning of chapter 1 (see Special rule for civilian spouse of active duty member of the U. Free 2012 federal tax filing S. Free 2012 federal tax filing Armed Forces ), your tax residence is Guam, follow the guidance in the section for bona fide residents under Which Return To File, earlier. Free 2012 federal tax filing However, if your tax residence is one of the 50 states or the District of Columbia and your only income from Guam is from wages, salaries, tips, or self-employment, you will be taxed on your worldwide income and file only a U. Free 2012 federal tax filing S. Free 2012 federal tax filing tax return (Form 1040) and a state and/or local tax return, if required. Free 2012 federal tax filing If you have income from Guam other than wages, salaries, tips, or self-employment that is considered to be sourced in that possession (see Table 2-1), you may need to file Form 5074 with your U. Free 2012 federal tax filing S. Free 2012 federal tax filing tax return. Free 2012 federal tax filing Moving expense deduction. Free 2012 federal tax filing   Generally, expenses of a move to Guam are directly attributable to wages, salaries, and other earned income from Guam. Free 2012 federal tax filing Likewise, the expenses of a move back to the United States are generally attributable to U. Free 2012 federal tax filing S. Free 2012 federal tax filing earned income. Free 2012 federal tax filing   If your move was to Guam, report your deduction for moving expenses as follows. Free 2012 federal tax filing If you are a bona fide resident in the tax year of your move, enter your deductible expenses on your Guam tax return. Free 2012 federal tax filing If you are not a bona fide resident, enter your deductible expenses on Form 3903 and enter the deductible amount on Form 1040, line 26, and on Form 5074, line 20. Free 2012 federal tax filing   If your move was to the United States, complete Form 3903 and enter the deductible amount on Form 1040, line 26. Free 2012 federal tax filing Foreign tax credit. Free 2012 federal tax filing   Under the filing rules explained earlier, individuals with Guam source income normally will not claim a foreign tax credit on a U. Free 2012 federal tax filing S. Free 2012 federal tax filing income tax return for tax paid to Guam. Free 2012 federal tax filing Self-employment tax. Free 2012 federal tax filing   If you have no U. Free 2012 federal tax filing S. Free 2012 federal tax filing filing requirement, but have income that is effectively connected with a trade or business in Guam, you must file Form 1040-SS with the United States to report your self-employment income and, if necessary, pay self-employment tax. Free 2012 federal tax filing Additional Medicare Tax. Free 2012 federal tax filing   Beginning in 2013, you may be required to pay Additional Medicare Tax. Free 2012 federal tax filing Also, you may need to report Additional Medicare Tax withheld by your employer. Free 2012 federal tax filing For more information see Additional Medicare Tax under Special Rules for Completing Your U. Free 2012 federal tax filing S. Free 2012 federal tax filing Tax Return in chapter 4. Free 2012 federal tax filing Estimated tax payments. Free 2012 federal tax filing   To see if you are required to make payments of estimated income tax, self-employment tax, and/or Additional Medicare Tax, to the IRS, get Form 1040-ES. Free 2012 federal tax filing Payment of estimated tax. Free 2012 federal tax filing   If you must pay estimated tax, make your payment to the jurisdiction where you would file your income tax return if your tax year were to end on the date your first estimated tax payment is due. Free 2012 federal tax filing Generally, you should make the rest of your quarterly payments of estimated tax to the jurisdiction where you made your first payment of estimated tax. Free 2012 federal tax filing However, estimated tax payments to either jurisdiction will be treated as payments to the jurisdiction with which you file the tax return. Free 2012 federal tax filing   If you make a joint payment of estimated tax, make your payment to the jurisdiction where the spouse who has the greater estimated AGI would have to pay (if a separate payment were made). Free 2012 federal tax filing For this purpose, income is determined without regard to community property laws. Free 2012 federal tax filing Early payment. Free 2012 federal tax filing   If you make your first payment of estimated tax early, follow the rules given earlier to determine where to send it. Free 2012 federal tax filing If you send it to the wrong jurisdiction, make all later payments to the jurisdiction to which the first payment should have been sent. Free 2012 federal tax filing   To pay by check or money order, send your payment with the Form 1040-ES payment voucher to:  Department of Revenue and Taxation Government of Guam P. Free 2012 federal tax filing O. Free 2012 federal tax filing Box 23607 GMF, GU 96921   To get information on paying electronically (by credit or debit card, or through the Electronic Federal Tax Payment System (EFTPS)), go to www. Free 2012 federal tax filing irs. Free 2012 federal tax filing gov/e-pay. Free 2012 federal tax filing   For information on making estimated income tax payments to the Department of Revenue and Taxation, see Where To Get Forms and Information , earlier. Free 2012 federal tax filing Double Taxation A mutual agreement procedure exists to settle cases of double taxation between the United States and Guam. Free 2012 federal tax filing See Double Taxation in chapter 4. Free 2012 federal tax filing The U. Free 2012 federal tax filing S. Free 2012 federal tax filing Virgin Islands The U. Free 2012 federal tax filing S. Free 2012 federal tax filing Virgin Islands has its own tax system based on the same tax laws and tax rates that apply in the United States. Free 2012 federal tax filing An important factor in USVI taxation is whether, during the entire tax year, you are a bona fide resident of the USVI. Free 2012 federal tax filing Where To Get Forms and Information For information about filing your U. Free 2012 federal tax filing S. Free 2012 federal tax filing Virgin Islands tax return or about Form 1040INFO, in St. Free 2012 federal tax filing Thomas contact : Bureau of Internal Revenue  6115 Estate Smith Bay  St. Free 2012 federal tax filing Thomas, VI 00802 You can order forms and publications by calling (340) 715-1040. Free 2012 federal tax filing You can order forms and publications through the fax at (340) 774-2672. Free 2012 federal tax filing For information about filing your U. Free 2012 federal tax filing S. Free 2012 federal tax filing Virgin Islands tax return or about Form 1040INFO, in St. Free 2012 federal tax filing Croix contact : Bureau of Internal Revenue  4008 Estate Diamond- Plot 7B Christiansted, V. Free 2012 federal tax filing I. Free 2012 federal tax filing 00820–4421 You can order forms and publications by calling (340) 773-1040. Free 2012 federal tax filing You can order forms and publications through the fax at (340) 773-1006. Free 2012 federal tax filing You can access the USVI website at www. Free 2012 federal tax filing viirb. Free 2012 federal tax filing com. Free 2012 federal tax filing The addresses and phone numbers listed above are subject to change. Free 2012 federal tax filing Which Return To File In general, bona fide residents of the USVI pay taxes only to the USVI. Free 2012 federal tax filing U. Free 2012 federal tax filing S. Free 2012 federal tax filing citizens or resident aliens (but not bona fide residents of the USVI) with USVI source income pay a portion of the tax to each jurisdiction. Free 2012 federal tax filing Bona Fide Resident of the USVI File your tax return with the USVI if you are a U. Free 2012 federal tax filing S. Free 2012 federal tax filing citizen, resident alien, or nonresident alien and a bona fide resident of the USVI during the entire tax year. Free 2012 federal tax filing Include your worldwide income on your USVI return. Free 2012 federal tax filing In determining your total tax payments, take into account all income tax withheld by either the USVI or the United States, any credit for an overpayment of income tax to either the USVI or the United States, and any payments of estimated tax to either the USVI or the United States. Free 2012 federal tax filing Pay any balance of tax due with your tax return. Free 2012 federal tax filing Filing this return with the USVI generally also starts the statute of limitations on assessment of your U. Free 2012 federal tax filing S. Free 2012 federal tax filing income tax. Free 2012 federal tax filing You generally do not have to file with the United States for any tax year in which you are a bona fide resident of the USVI during the entire tax year, provided you report and pay tax on your income from all sources to the USVI and identify the source(s) of the income on the return. Free 2012 federal tax filing However, if you have self-employment income, you may be required to file Form 1040-SS with the United States. Free 2012 federal tax filing For more information, see Self-employment tax under Special Rules for the USVI, later. Free 2012 federal tax filing Form 1040INFO. Free 2012 federal tax filing   If you are a bona fide resident of the USVI and have non-USVI source income, you must also file Virgin Islands Form 1040INFO, Non-Virgin Islands Source Income of Virgin Islands Residents, with the Virgin Islands Bureau of Internal Revenue. Free 2012 federal tax filing Attach Form 1040INFO to your USVI tax return before filing. Free 2012 federal tax filing You can get Form 1040INFO by contacting the address or website given earlier. Free 2012 federal tax filing   If you are a bona fide resident of the USVI for the entire tax year, file your return and all attachments with the Virgin Islands Bureau of Internal Revenue at:  USVI Bureau of Internal Revenue 6115 Estate Smith Bay St. Free 2012 federal tax filing Thomas, VI 00802 U. Free 2012 federal tax filing S. Free 2012 federal tax filing Citizen or Resident Alien (Other Than a Bona Fide Resident of the USVI) If you are a U. Free 2012 federal tax filing S. Free 2012 federal tax filing citizen or resident alien but not a bona fide resident of the USVI during the entire tax year, you must file your original Form 1040 with the United States and an identical copy of that return with the USVI if you have: Income from sources in the USVI, or Income effectively connected with the conduct of a trade or business in the USVI. Free 2012 federal tax filing File your original Form 1040 with the United States and file a signed copy of the U. Free 2012 federal tax filing S. Free 2012 federal tax filing return (including all attachments, forms, and schedules) with the Virgin Islands Bureau of Internal Revenue by the due date for filing Form 1040. Free 2012 federal tax filing Use Form 8689 to figure the amount of tax you must pay to the USVI. Free 2012 federal tax filing Form 8689. Free 2012 federal tax filing   Complete this form and attach it to both the return you file with the United States and the copy you file with the USVI. Free 2012 federal tax filing Figure the amount of tax you must pay to the USVI as follows:      Total tax on  U. Free 2012 federal tax filing S. Free 2012 federal tax filing return (after certain adjustments) × USVI AGI Worldwide AGI     Pay any tax due to the USVI when you file your return with the Virgin Islands Bureau of Internal Revenue. Free 2012 federal tax filing To receive credit on your U. Free 2012 federal tax filing S. Free 2012 federal tax filing return for taxes paid to the USVI, include the amounts from Form 8689, lines 40 and 45, in the total on Form 1040, line 72. Free 2012 federal tax filing On the dotted line next to line 72, enter “Form 8689” and show the amounts. Free 2012 federal tax filing   See the illustrated example in chapter 5. Free 2012 federal tax filing De minimis exception to determining source of income. Free 2012 federal tax filing   In certain situations you will not have income from a possession. Free 2012 federal tax filing See De minimis exception under Compensation for Labor or Personal Services in chapter 2. Free 2012 federal tax filing   If you are not a bona fide resident of the USVI during the entire tax year, but you have USVI source income, and you are not including a check or a money order, file Form 1040 and all attachments (including Form 8689) with the:  Department of the Treasury Internal Revenue Service Austin, TX 73301-0215 USA   If you are including a check or a money order, send your U. Free 2012 federal tax filing S. Free 2012 federal tax filing tax return and all attachments (including Form 8689) to:  Internal Revenue Service P. Free 2012 federal tax filing O. Free 2012 federal tax filing Box 1303 Charlotte, NC 28201-1303 USA   File a copy of your U. Free 2012 federal tax filing S. Free 2012 federal tax filing Form 1040 with the Virgin Islands Bureau of Internal Revenue at:  USVI Bureau of Internal Revenue 6115 Estate Smith Bay St. Free 2012 federal tax filing Thomas, VI 00802 Nonresident Alien (Other Than a Bona Fide Resident of the USVI) If you are a nonresident alien of the United States who does not qualify as a bona fide resident of the USVI for the entire tax year, you generally must file the following returns. Free 2012 federal tax filing A USVI tax return reporting only your income from sources within the USVI. Free 2012 federal tax filing In this situation, wages for services performed in the USVI, whether for a private employer, the U. Free 2012 federal tax filing S. Free 2012 federal tax filing Government, or otherwise, is income from sources within the USVI. Free 2012 federal tax filing A U. Free 2012 federal tax filing S. Free 2012 federal tax filing tax return (Form 1040NR) reporting U. Free 2012 federal tax filing S. Free 2012 federal tax filing source income according to the rules for a nonresident alien. Free 2012 federal tax filing See the instructions for Form 1040NR. Free 2012 federal tax filing   If you are not a bona fide resident of the USVI during the entire tax year, and you are not including a check or a money order, send your U. Free 2012 federal tax filing S. Free 2012 federal tax filing tax return and all attachments (including Form 8689) to:  Department of the Treasury Internal Revenue Service Austin, TX 73301-0215 USA   If you are including a check or a money order, send your U. Free 2012 federal tax filing S. Free 2012 federal tax filing tax return and all attachments (including Form 8689) to:  Internal Revenue Service P. Free 2012 federal tax filing O. Free 2012 federal tax filing Box 1303 Charlotte, NC 28201-1303  USA   Send your USVI tax return and all attachments to:  Bureau of Internal Revenue 6115 Estate Smith Bay St. Free 2012 federal tax filing Thomas, VI 00802 Special Rules for the USVI There are some special rules for certain types of income, employment, and filing status. Free 2012 federal tax filing Joint return. Free 2012 federal tax filing   If you file a joint return, you should file your return (and pay the tax) with the jurisdiction where the spouse who has the greater adjusted gross income (AGI) would have to file if you were filing separately. Free 2012 federal tax filing If the spouse with the greater AGI is a bona fide resident of the USVI during the entire tax year, file the joint return with the USVI. Free 2012 federal tax filing If the spouse with the greater AGI is a U. Free 2012 federal tax filing S. Free 2012 federal tax filing citizen or resident alien of the United States but not a bona fide resident of the USVI during the entire tax year, file the joint return with the United States. Free 2012 federal tax filing For this purpose, income is determined without regard to community property laws. Free 2012 federal tax filing Example. Free 2012 federal tax filing Marge Birch, a U. Free 2012 federal tax filing S. Free 2012 federal tax filing citizen, was a resident of the United States, and her spouse, a citizen of the USVI, was a bona fide resident of the USVI during the entire tax year. Free 2012 federal tax filing Marge earned $55,000 as an architect in the United States. Free 2012 federal tax filing Her spouse earned $30,000 as a librarian in the USVI. Free 2012 federal tax filing Marge and her spouse will file a joint return. Free 2012 federal tax filing Because Marge has the greater AGI, she and her spouse must file their return with the United States and report the entire $85,000 on that return. Free 2012 federal tax filing U. Free 2012 federal tax filing S. Free 2012 federal tax filing Armed Forces. Free 2012 federal tax filing   If you are a member of the U. Free 2012 federal tax filing S. Free 2012 federal tax filing Armed Forces who qualified as a bona fide resident of the U. Free 2012 federal tax filing S. Free 2012 federal tax filing Virgin Islands in a prior tax year, your absence from the U. Free 2012 federal tax filing S. Free 2012 federal tax filing Virgin Islands solely in compliance with military orders will not change your bona fide residency. Free 2012 federal tax filing If you did not qualify as a bona fide resident of the U. Free 2012 federal tax filing S. Free 2012 federal tax filing Virgin Islands in a prior tax year, your presence in the U. Free 2012 federal tax filing S. Free 2012 federal tax filing Virgin Islands solely in compliance with military orders will not qualify you as a bona fide resident of the U. Free 2012 federal tax filing S. Free 2012 federal tax filing Virgin Islands. Free 2012 federal tax filing Civilian spouse of active duty member of the U. Free 2012 federal tax filing S. Free 2012 federal tax filing Armed Forces. Free 2012 federal tax filing   If, under the rule discussed at the beginning of chapter 1 (see Special rule for civilian spouse of active duty member of the U. Free 2012 federal tax filing S. Free 2012 federal tax filing Armed Forces ), your tax residence is the USVI, follow the guidance in the section for bona fide residents under Which Return To File, earlier. Free 2012 federal tax filing However, if your tax residence is one of the 50 states or the District of Columbia and your only income from the USVI is from wages, salaries, tips, or self-employment, you will be taxed on your worldwide income and file only a U. Free 2012 federal tax filing S. Free 2012 federal tax filing tax return (Form 1040) and a state and/or local tax return, if required. Free 2012 federal tax filing If you have income from the USVI other than wages, salaries, tips, or self-employment that is considered to be sourced in that possession (see Table 2-1), you may need to file Form 8689 with your U. Free 2012 federal tax filing S. Free 2012 federal tax filing tax return. Free 2012 federal tax filing In this case, follow the guidance under U. Free 2012 federal tax filing S. Free 2012 federal tax filing Citizen or Resident Alien (Other Than a Bona Fide Resident of the USVI ), earlier. Free 2012 federal tax filing Moving expense deduction. Free 2012 federal tax filing   Generally, expenses of a move to the USVI are directly attributable to wages, salaries, and other earned income from the USVI. Free 2012 federal tax filing Likewise, the expenses of a move back to the United States are generally attributable to U. Free 2012 federal tax filing S. Free 2012 federal tax filing earned income. Free 2012 federal tax filing   If your move was to the USVI, report your deduction for moving expenses as follows. Free 2012 federal tax filing If you are a bona fide resident in the tax year of your move, enter your deductible expenses on your USVI tax return. Free 2012 federal tax filing If you are not a bona fide resident, enter your deductible expenses on Form 3903 and enter the deductible amount on Form 1040, line 26, and on Form 8689, line 20. Free 2012 federal tax filing   If your move was to the United States, complete Form 3903 and enter the deductible amount on Form 1040, line 26. Free 2012 federal tax filing Foreign tax credit. Free 2012 federal tax filing   Under the filing rules explained earlier, individuals with USVI source income normally will not claim a foreign tax credit on a U. Free 2012 federal tax filing S. Free 2012 federal tax filing income tax return for tax paid to the USVI. Free 2012 federal tax filing However, individuals other than bona fide residents of the USVI may claim a direct credit for such tax (see Form 8689 earlier in this section). Free 2012 federal tax filing Self-employment tax. Free 2012 federal tax filing   If you have no U. Free 2012 federal tax filing S. Free 2012 federal tax filing filing requirement, but have income that is effectively connected with a trade or business in the USVI, you must file Form 1040-SS with the United States to report your self-employment income and, if necessary, pay self-employment tax. Free 2012 federal tax filing Additional Medicare Tax. Free 2012 federal tax filing   Beginning in 2013, you may be required to pay Additional Medicare Tax. Free 2012 federal tax filing Also, you may need to report Additional Medicare Tax withheld by your employer. Free 2012 federal tax filing For more information see Additional Medicare Tax under Special Rules for Completing Your U. Free 2012 federal tax filing S. Free 2012 federal tax filing Tax Return in chapter 4. Free 2012 federal tax filing Estimated tax payments. Free 2012 federal tax filing   To see if you are required to make payments of estimated income tax, self-employment tax, and/or Additional Medicare Tax, to the IRS, get Form 1040-ES. Free 2012 federal tax filing   To pay by check or money order, send your payment with the Form 1040-ES payment voucher to:  Virgin Islands Bureau of Internal Revenue 6115 Estate Smith Bay St. Free 2012 federal tax filing Thomas, VI 00802   To get information on paying electronically (by credit or debit card, or through the Electronic Federal Tax Payment System (EFTPS)), go to www. Free 2012 federal tax filing irs. Free 2012 federal tax filing gov/e-pay. Free 2012 federal tax filing   For information on making estimated income tax payments to the Bureau of Internal Revenue, see Where To Get Forms and Information , earlier. Free 2012 federal tax filing Extension of time to file. Free 2012 federal tax filing   You can get an automatic 6-month extension of time to file your tax return. Free 2012 federal tax filing See Extension of Time To File in chapter 4. Free 2012 federal tax filing Bona fide residents of the USVI during the entire tax year must file a paper Form 4868 with the Virgin Islands Bureau of Internal Revenue. Free 2012 federal tax filing Nonresidents of the USVI should file separate extension requests with the IRS and the Virgin Islands Bureau of Internal Revenue and make any payments due to the respective jurisdictions. Free 2012 federal tax filing However, the Virgin Islands Bureau of Internal Revenue will honor an extension request that is timely filed with the IRS. Free 2012 federal tax filing Double Taxation A mutual agreement procedure exists to settle cases of double taxation between the United States and the U. Free 2012 federal tax filing S. Free 2012 federal tax filing Virgin Islands. 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Answers to Frequently Asked Questions for Individuals of the Same Sex Who Are Married Under State Law

The following questions and answers provide information to individuals of the same sex who are lawfully married (same-sex spouses). These questions and answers reflect the holdings in Revenue Ruling 2013-17 in 2013-38 IRB 201.

Q1. When are individuals of the same sex lawfully married for federal tax purposes?

A1. For federal tax purposes, the IRS looks to state or foreign law to determine whether individuals are married. The IRS has a general rule recognizing a marriage of same-sex spouses that was validly entered into in a domestic or foreign jurisdiction whose laws authorize the marriage of two individuals of the same sex even if the married couple resides in a domestic or foreign jurisdiction that does not recognize the validity of same-sex marriages.

Q2. Can same-sex spouses file federal tax returns using a married filing jointly or married filing separately status?

A2. Yes. For tax year 2013 and going forward, same-sex spouses generally must file using a married filing separately or jointly filing status. For tax year 2012 and all prior years, same-sex spouses who file an original tax return on or after Sept. 16, 2013 (the effective date of Rev. Rul. 2013-17), generally must file using a married filing separately or jointly filing status. For tax year 2012, same-sex spouses who filed their tax return before Sept. 16, 2013, may choose (but are not required) to amend their federal tax returns to file using married filing separately or jointly filing status. For tax years 2011 and earlier, same-sex spouses who filed their tax returns timely may choose (but are not required) to amend their federal tax returns to file using married filing separately or jointly filing status provided the period of limitations for amending the return has not expired. A taxpayer generally may file a claim for refund for three years from the date the return was filed or two years from the date the tax was paid, whichever is later. For information on filing an amended return, go to Tax Topic 308, Amended Returns, at http://www.irs.gov/taxtopics/tc308.html

Q3. Can a taxpayer and his or her same-sex spouse file a joint return if they were married in a state that recognizes same-sex marriages but they live in a state that does not recognize their marriage?

A3. Yes. For federal tax purposes, the IRS has a general rule recognizing a marriage of same-sex individuals that was validly entered into in a domestic or foreign jurisdiction whose laws authorize the marriage of two individuals of the same sex even if the married couple resides in a domestic or foreign jurisdiction that does not recognize the validity of same-sex marriages. The rules for using a married filing jointly or married filing separately status described in Q&A #2 apply to these married individuals. 

Q4. Can a taxpayer’s same-sex spouse be a dependent of the taxpayer?

A4. No. A taxpayer’s spouse cannot be a dependent of the taxpayer.

Q5. Can a same-sex spouse file using head of household filing status?

A5. A taxpayer who is married cannot file using head of household filing status. However, a married taxpayer may be considered unmarried and may use the head-of-household filing status if the taxpayer lives apart from his or her spouse for the last 6 months of the taxable year and provides more than half the cost of maintaining a household that is the principal place of abode of the taxpayer’s dependent child for more than half of the year. See Publication 501 for more details.

Q6. If same-sex spouses (who file using the married filing separately status) have a child, which parent may claim the child as a dependent?

A6. If a child is a qualifying child under section 152(c) of both parents who are spouses (who file using the married filing separate status), either parent, but not both, may claim a dependency deduction for the qualifying child. If both parents claim a dependency deduction for the child on their income tax returns, the IRS will treat the child as the qualifying child of the parent with whom the child resides for the longer period of time during the taxable year. If the child resides with each parent for the same amount of time during the taxable year, the IRS will treat the child as the qualifying child of the parent with the higher adjusted gross income.   

Q7. Can a taxpayer who is married to a person of the same sex claim the standard deduction if the taxpayer’s spouse itemized deductions?

A7. No. If a taxpayer’s spouse itemized his or her deductions, the taxpayer cannot claim the standard deduction (section 63(c)(6)(A)).

Q8. If a taxpayer adopts the child of his or her same-sex spouse as a second parent or co-parent, may the taxpayer (“adopting parent”) claim the adoption credit for the qualifying adoption expenses he or she pays or incurs to adopt the child?

A8. No. The adopting parent may not claim an adoption credit. A taxpayer may not claim an adoption credit for expenses incurred in adopting the child of the taxpayer’s spouse (section 23). 

Q9. Do provisions of the federal tax law such as section 66 (treatment of community income) and section 469(i)(5) ($25,000 offset for passive activity losses for rental real estate activities) apply to same-sex spouses?

A9. Yes. Like other provisions of the federal tax law that apply to married taxpayers, section 66 and section 469(i)(5) apply to same-sex spouses because same-sex spouses are married for all federal tax purposes.

Q10. If an employer provided health coverage for an employee’s same-sex spouse and included the value of that coverage in the employee’s gross income, can the employee file an amended Form 1040 reflecting the employee’s status as a married individual to recover federal income tax paid on the value of the health coverage of the employee’s spouse?

A10. Yes, for all years for which the period of limitations for filing a claim for refund is open. Generally, a taxpayer may file a claim for refund for three years from the date the return was filed or two years from the date the tax was paid, whichever is later. If an employer provided health coverage for an employee’s same-sex spouse, the employee may claim a refund of income taxes paid on the value of coverage that would have been excluded from income had the employee’s spouse been recognized as the employee’s legal spouse for tax purposes. This claim for a refund generally would be made through the filing of an amended Form 1040. For information on filing an amended return, go to Tax Topic 308, Amended Returns, at http://www.irs.gov/taxtopics/tc308.html. For a discussion regarding refunds of Social Security and Medicare taxes, see Q&A #12 and Q&A #13.

Example. Employer sponsors a group health plan covering eligible employees and their dependents and spouses (including same-sex spouses). Fifty percent of the cost of health coverage elected by employees is paid by Employer. Employee A was married to same-sex Spouse B at all times during 2012. Employee A elected coverage for Spouse B through Employer’s group health plan beginning Jan. 1, 2012. The value of the employer-funded portion of Spouse B’s health coverage was $250 per month.

The amount in Box 1, “Wages, tips, other compensation,” of the 2012 Form W-2 provided by Employer to Employee A included $3,000 ($250 per month x 12 months) of income reflecting the value of employer-funded health coverage provided to Spouse B.  Employee A filed Form 1040 for the 2012 taxable year reflecting the Box 1 amount reported on Form W-2.

Employee A may file an amended Form 1040 for the 2012 taxable year excluding the value of Spouse B’s employer-funded health coverage ($3,000) from gross income.

Q11. If an employer sponsored a cafeteria plan that allowed employees to pay premiums for health coverage on a pre-tax basis, can a participating employee file an amended return to recover income taxes paid on premiums that the employee paid on an after-tax basis for the health coverage of the employee’s same-sex spouse?

A11. Yes, for all years for which the period of limitations for filing a claim for refund is open. Generally, a taxpayer may file a claim for refund for three years from the date the return was filed or two years from the date the tax was paid, whichever is later. If an employer sponsored a cafeteria plan under which an employee elected to pay for health coverage for the employee on a pre-tax basis, and if the employee purchased coverage on an after-tax basis for the employee’s same-sex spouse under the employer’s health plan, the employee may claim a refund of income taxes paid on the premiums for the coverage of the employee’s spouse. This claim for a refund generally would be made through the filing of an amended Form 1040. For information on filing an amended return, go to Tax Topic 308, Amended Returns, at http://www.irs.gov/taxtopics/tc308.html. For a discussion regarding refunds of Social Security and Medicare taxes, see Q&A #12 and Q&A #13.

Example. Employer sponsors a group health plan as part of a cafeteria plan with a calendar year plan year. The full cost of spousal and dependent coverage is paid by the employees. In the open enrollment period for the 2012 plan year, Employee C elected to purchase self-only health coverage through salary reduction under Employer’s cafeteria plan. On March 1, 2012, Employee C was married to same-sex spouse D. Employee C purchased health coverage for Spouse D through Employer’s group health plan beginning March 1, 2012. The premium paid by Employee C for Spouse D’s health coverage was $500 per month.

The amount in Box 1, “Wages, tips, other compensation,” of the 2012 Form W-2 provided by Employer to Employee C included the $5,000 ($500 per month x 10 months) of premiums paid by Employee C for Spouse D’s health coverage. Employee C filed Form 1040 for the 2012 taxable year reflecting the Box 1 amount reported on Form W-2.

Employee C’s salary reduction election is treated as including the value of the same-sex spousal coverage purchased for Spouse D. Employee C may file an amended Form 1040 for the 2012 taxable year excluding the premiums paid for Spouse D’s health coverage ($5,000) from gross income.

Q12. In the situations described in Q&A #10 and Q&A #11, may the employer claim a refund for the Social Security taxes and Medicare taxes paid on the benefits? 

A12. Yes. If the period of limitations for filing a claim for refund is open, the employer may claim a refund of, or make an adjustment for, any overpayment of Social Security taxes and Medicare taxes. The requirements for filing a claim for refund or for making an adjustment for an overpayment of the employer and employee portions of Social Security and Medicare taxes can be found in the Instructions for Form 941-X, Adjusted Employer’s QUARTERLY Federal Tax Return or Claim for Refund. Notice 2013-61 provides special administrative procedures for employers to file claims for refunds or make adjustments for overpayments of Social Security taxes and Medicare taxes paid on same-sex spouse benefits. 

Q13. In the situations described in Q&A #10 and Q&A #11, may the employer claim a refund or make an adjustment of income tax withholding that was withheld from the employee with respect to the benefits in prior years? 

A13. No. Claims for refund of overwithheld income tax for prior years cannot be made by employers. The employee may file for any refund of income tax due for prior years on Form 1040X, provided the period of limitations for claiming a refund has not expired. See Q&A #10 and Q&A #11.

Employers may make adjustments for income tax withholding that was overwithheld from an employee in the current year provided the employer has repaid or reimbursed the employee for the overwithheld income tax before the end of the calendar year.

Q14. If an employer cannot locate a former employee with a same-sex spouse who received the benefits described in Q&A #10 and Q&A #11, may the employer still claim a refund of the employer portion of the Social Security and Medicare taxes on the benefits?

A14. Yes, if the employer makes reasonable attempts to locate an employee who received the benefits described in Q&A #10 and Q&A #11 that were treated as wages but the employer is unable to locate the employee, the employer can claim a refund of the employer portion of Social Security and Medicare taxes, but not the employee portion. Also, if an employee is notified and given the opportunity to participate in the claim for refund of Social Security and Medicare taxes but declines in writing, the employer can claim a refund of the employer portion of the taxes, but not the employee portion. Employers can use the special administrative procedure set forth in Notice 2013-61 to file these claims.

Q15. If a sole proprietor employs his or her same-sex spouse in his or her business, can the sole proprietor get a refund of Social Security, Medicare and FUTA taxes on the wages that the sole proprietor paid to the same-sex spouse as an employee in the business?

A15. Services performed by an employee in the employ of his or her spouse are excluded from the definition of employment for purposes of the Federal Unemployment Tax Act (FUTA). Therefore, for all years for which the period of limitations is open, the sole proprietor can claim a refund of the FUTA tax paid on the compensation that the sole proprietor paid his or her same-sex spouse as an employee in the business. Services of a spouse are excluded from Social Security and Medicare taxes only if the services are not in the course of the employer's trade or business, or if it is domestic service in a private home of the employer.

Q16. What rules apply to qualified retirement plans pursuant to Rev. Rul. 2013-17?

A16. Qualified retirement plans are required to comply with the following rules pursuant to Rev. Rul. 2013-17:

  1. A qualified retirement plan must treat a same-sex spouse as a spouse for purposes of satisfying the federal tax laws relating to qualified retirement plans.
  2. For purposes of satisfying the federal tax laws relating to qualified retirement plans, a qualified retirement plan must recognize a same-sex marriage that was validly entered into in a jurisdiction whose laws authorize the marriage, even if the married couple lives in a domestic or foreign jurisdiction that does not recognize the validity of same-sex marriages.
  3. A person who is in a registered domestic partnership or civil union is not  considered to be a spouse for purposes of applying the federal tax law requirements relating to qualified retirement plans, regardless of whether that person’s partner is of the opposite or same sex.

Q17. What are some examples of the consequences of these rules for qualified retirement plans?

A17. The following are some examples of the consequences of these rules:

  1. Plan A, a qualified defined benefit plan, is maintained by Employer X, which operates only in a state that does not recognize same-sex marriages. Nonetheless, Plan A must treat a participant who is married to a spouse of the same sex under the laws of a different jurisdiction as married for purposes of applying the qualification requirements that relate to spouses.
  2. Plan B is a qualified defined contribution plan and provides that the participant’s account must be paid to the participant’s spouse upon the participant’s death unless the spouse consents to a different beneficiary. Plan B does not provide for any annuity forms of distribution. Plan B must pay this death benefit to the same-sex surviving spouse of any deceased participant. Plan B is not required to provide this death benefit to a surviving registered domestic partner of a deceased participant. However, Plan B is allowed to make a participant’s registered domestic partner the default beneficiary who will receive the death benefit unless the participant chooses a different beneficiary.

Q18. As of when do the rules of Rev. Rul. 2013-17 apply to qualified retirement plans?

A18. Qualified retirement plans must comply with these rules as of Sept. 16, 2013. Although Rev. Rul. 2013-17 allows taxpayers to file amended returns that relate to prior periods in reliance on the rules in Rev. Rul. 2013-17 with respect to many matters, this rule does not extend to matters relating to qualified retirement plans. The IRS has not yet provided guidance regarding the application of Windsor and these rules to qualified retirement plans with respect to periods before Sept. 16, 2013.

Q19. Will the IRS issue further guidance on how qualified retirement plans and other tax-favored retirement arrangements must comply with Windsor and Rev. Rul. 2013-17?

A19. The IRS intends to issue further guidance on how qualified retirement plans and other tax-favored retirement arrangements must comply with Windsor and Rev. Rul. 2013-17.  It is expected that future guidance will address the following, among other issues:

  1. Plan amendment requirements (including the timing of any required amendments).
  2. Any necessary corrections relating to plan operations for periods before future guidance is issued.

Q20. Can a same-sex married couple elect to treat a jointly owned and operated unincorporated business as a Qualified Joint Venture?

A20. Yes. Spouses that wholly own and operate an unincorporated business and that meet certain other requirements may avoid Federal partnership tax treatment by electing to be a Qualified Joint Venture. For more information on Qualified Joint Ventures, see the tax topic “Husband and Wife Business” at http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Husband-and-Wife-Business.

Q21. In the situations described in FAQ #10 and FAQ #11, may the employee claim a refund for the social security and Medicare taxes paid on the benefits if the employer will not?

A21. Yes. If the period of limitations for filing a claim for refund is open and the employee has not been reimbursed by the employer for the Social Security and Medicare taxes and has not authorized the employer to file a claim for refund of those taxes on his or her behalf, the employee may claim a refund. The employee should seek a refund of Social Security and Medicare taxes from his or her employer first. However, if the employer indicates an intention not to file a claim or adjust the overpaid Social Security and Medicare taxes, the employee may claim a refund of any overpayment of employee Social Security and Medicare taxes by filing Form 843, Claim for Refund and Request for Abatement. The requirements for an employee filing a claim for refund of the employee portions of Social Security and Medicare taxes can be found in the Instructions for Form 843. Employees should write “Windsor Claim” in dark, bold letters across the top margin of Form 843.

Q22. Is an employer that repays or reimburses an employee on or before Dec. 31, 2013, for an overpayment of Social Security and Medicare taxes and income tax withholding with respect to same-sex spouse benefits provided in 2013 required to obtain a written statement from the employee confirming the employee did not make a claim for refund of the overcollected taxes (or the claim was rejected) and will not make any future claim for refund or credit of the overcollected taxes?

A22. No. An employer using the first special administrative procedure under Notice 2013-61 (i.e., employer repays or reimburses an employee for 2013 overpayments of taxes on or before Dec. 31, 2013, and corrects the overpayment on the fourth quarter 2013 Form 941) does not need to obtain the written statement from its employee with respect to the 2013 overpayments. However, an employer using the second special administrative procedure under Notice 2013-61 (i.e., employer does not repay or reimburse an employee for an overpayment of taxes on or before Dec. 31, 2013, and corrects the overpayment on a Form 941-X) is required to obtain such written statement from each affected employee.

Q23. If an individual employed his or her same-sex spouse to perform domestic (household) services in the individual’s private home, can the individual get a refund of Social Security, Medicare and FUTA taxes on wages that the individual paid to the spouse for such service? If so, which forms should the individual use to claim refunds?

A23. Yes, if the period of limitations for filing a claim for refund is open, the individual can get a refund of Social Security, Medicare and FUTA taxes paid on remuneration for domestic services in the individual’s private home that were performed by his or her same sex spouse as the individual’s employee. If the taxes for these services were reported on Schedule H (Form 1040), Household Employment Taxes, and taxes were paid in connection with the Form 1040, the individual should file an amended Form 1040 to claim refund of those taxes together with an amended Schedule H. For information on filing an amended return, go to Tax Topic 308, Amended Returns, at http://www.irs.gov/taxtopics/tc308.html. If the Social Security and Medicare taxes for the domestic service were reported on Form 941, Employer’s QUARTERLY Federal Tax Return, the individual employer can use Form 941-X, Adjusted Employer’s QUARTERLY Federal Tax Return or Claim for Refund, to claim a refund of these taxes. The requirements for filing a claim for refund or making an adjustment of the employer and employee portions of Social Security and Medicare taxes can be found in the Instructions for Form 941-X. Notice 2013-61 provides special administrative procedures for employers to file claims for refunds or make adjustments for an overpayment of social security taxes and Medicare taxes on same-sex spouse benefits. If the FUTA taxes for the domestic service were reported on Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return, the individual employer can file an amended Form 940 for the prior year to obtain a refund. The previous year’s Form 940 should be used to claim a refund of FUTA taxes for that prior year. (Forms 940 for prior years may also be found at IRS.gov.)

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Page Last Reviewed or Updated: 07-Mar-2014

The Free 2012 Federal Tax Filing

Free 2012 federal tax filing 3. Free 2012 federal tax filing   Limit on Annual Additions Table of Contents Ministers and church employees. Free 2012 federal tax filing Includible Compensation for Your Most Recent Year of ServiceMost Recent Year of Service Includible Compensation The first component of MAC is the limit on annual additions. Free 2012 federal tax filing This is a limit on the total contributions (elective deferrals, nonelective contributions, and after-tax contributions) that can be made to your 403(b) account. Free 2012 federal tax filing The limit on annual additions generally is the lesser of: $51,000 for 2013 and $52,000 for 2014, or 100% of your includible compensation for your most recent year of service. Free 2012 federal tax filing More than one 403(b) account. Free 2012 federal tax filing If you contributed to more than one 403(b) account, you must combine the contributions made to all 403(b) accounts on your behalf by your employer. Free 2012 federal tax filing Ministers and church employees. Free 2012 federal tax filing   If you are a minister or a church employee, you may be able to increase your limit on annual additions or use different rules when figuring your limit on annual additions. Free 2012 federal tax filing For more information, see chapter 5. Free 2012 federal tax filing Participation in a qualified plan. Free 2012 federal tax filing If you participated in a 403(b) plan and a qualified plan, you must combine contributions made to your 403(b) account with contributions to a qualified plan and simplified employee pensions of all corporations, partnerships, and sole proprietorships in which you have more than 50% control. Free 2012 federal tax filing You can use Part I of Worksheet 1 in chapter 9 to figure your limit on annual additions. Free 2012 federal tax filing Includible Compensation for Your Most Recent Year of Service Definition. Free 2012 federal tax filing   Generally, includible compensation for your most recent year of service is the amount of taxable wages and benefits you received from the employer that maintained a 403(b) account for your benefit during your most recent year of service. Free 2012 federal tax filing When figuring your includible compensation for your most recent year of service, keep in mind that your most recent year of service may not be the same as your employer's most recent annual work period. Free 2012 federal tax filing This can happen if your tax year is not the same as your employer's annual work period. Free 2012 federal tax filing When figuring includible compensation for your most recent year of service, do not mix compensation or service of one employer with compensation or service of another employer. Free 2012 federal tax filing Most Recent Year of Service Your most recent year of service is your last full year of service, ending on the last day of your tax year that you worked for the employer that maintained a 403(b) account on your behalf. Free 2012 federal tax filing Tax year different from employer's annual work period. Free 2012 federal tax filing   If your tax year is not the same as your employer's annual work period, your most recent year of service is made up of parts of at least two of your employer's annual work periods. Free 2012 federal tax filing Example. Free 2012 federal tax filing A professor who reports her income on a calendar-year basis is employed on a full-time basis by a university that operates on an academic year (October through May). Free 2012 federal tax filing To figure her includible compensation for 2013, the professor's most recent year of service is her service from January through May 2013 and from October through December 2013. Free 2012 federal tax filing Figuring Your Most Recent Year of Service To figure your most recent year of service, begin by determining what is a full year of service for your position. Free 2012 federal tax filing A full year of service is equal to full-time employment for your employer's annual work period. Free 2012 federal tax filing After identifying a full year of service, begin counting the service you have provided for your employer starting with the service provided in the current year. Free 2012 federal tax filing Part-time or employed only part of the year. Free 2012 federal tax filing   If you are a part-time or a full-time employee who is employed for only part of the year, your most recent year of service is your service this year and your service for as many previous years as is necessary to total 1 full year of service. Free 2012 federal tax filing To determine your most recent year of service, add the following periods of service: Your service during the year for which you are figuring the limit on annual additions, and Your service during your preceding tax years until the total service equals 1 year of service or you have figured all of your service with the employer. Free 2012 federal tax filing Example. Free 2012 federal tax filing You were employed on a full-time basis from July through December 2011 (1/2 year of service), July through December 2012 (1/2 year of service), and October through December 2013 (1/4 year of service). Free 2012 federal tax filing Your most recent year of service for computing your limit on annual additions for 2013 is the total of your service during 2013 (1/4 year of service), your service during 2012 (1/2 year of service), and your service during the months October through December 2011 (1/4 year of service). Free 2012 federal tax filing Not yet employed for 1 year. Free 2012 federal tax filing   If, at the close of the year, you have not yet worked for your employer for 1 year (including time you worked for the same employer in all earlier years), use the period of time you have worked for the employer as your most recent year of service. Free 2012 federal tax filing Includible Compensation After identifying your most recent year of service, the next step is to identify the includible compensation associated with that full year of service. Free 2012 federal tax filing Includible compensation is not the same as income included on your tax return. Free 2012 federal tax filing Compensation is a combination of income and benefits received in exchange for services provided to your employer. Free 2012 federal tax filing Generally, includible compensation is the amount of income and benefits: Received from the employer who maintains your 403(b) account, and Must be included in your income. Free 2012 federal tax filing Includible compensation includes the following amounts. Free 2012 federal tax filing Elective deferrals (employer's contributions made on your behalf under a salary reduction agreement). Free 2012 federal tax filing Amounts contributed or deferred by your employer under a section 125 cafeteria plan. Free 2012 federal tax filing Amounts contributed or deferred, at the election of the employee, under an eligible section 457 nonqualified deferred compensation plan (state or local government or tax-exempt organization plan). Free 2012 federal tax filing  Note. Free 2012 federal tax filing For information about treating elective deferrals under section 457 plans as Roth contributions, see Publication 575. Free 2012 federal tax filing Wages, salaries, and fees for personal services earned with the employer maintaining your 403(b) account. Free 2012 federal tax filing Income otherwise excluded under the foreign earned income exclusion. Free 2012 federal tax filing Pre-tax contributions (employer's contributions made on your behalf according to your election) to a qualified transportation fringe benefit plan. Free 2012 federal tax filing Includible compensation does not include the following items. Free 2012 federal tax filing Your employer's contributions to your 403(b) account. Free 2012 federal tax filing Compensation earned while your employer was not an eligible employer. Free 2012 federal tax filing Your employer's contributions to a qualified plan that: Are on your behalf, and Are excludable from income. Free 2012 federal tax filing The cost of incidental life insurance. Free 2012 federal tax filing See Cost of Incidental Life Insurance, later. Free 2012 federal tax filing If you are a church employee or a foreign missionary, figure includible compensation using the rules explained in chapter 5. Free 2012 federal tax filing Contributions after retirement. Free 2012 federal tax filing   Nonelective contributions may be made for an employee for up to 5 years after retirement. Free 2012 federal tax filing These contributions would be based on includible compensation for the last year of service before retirement. Free 2012 federal tax filing Cost of Incidental Life Insurance Includible compensation does not include the cost of incidental life insurance. Free 2012 federal tax filing If all of your 403(b) accounts invest only in mutual funds, then you have no incidental life insurance. Free 2012 federal tax filing If you have an annuity contract, a portion of the cost of that contract may be for incidental life insurance. Free 2012 federal tax filing If so, the cost of the insurance is taxable to you in the year contributed and is considered part of your basis when distributed. Free 2012 federal tax filing Your employer will include the cost of your insurance as taxable wages in box 1 of Form W-2. Free 2012 federal tax filing Not all annuity contracts include life insurance. Free 2012 federal tax filing Contact your plan administrator to determine if your contract includes incidental life insurance. Free 2012 federal tax filing If it does, you will need to figure the cost of life insurance each year the policy is in effect. Free 2012 federal tax filing Figuring the cost of incidental life insurance. Free 2012 federal tax filing If you have determined that part of the cost of your annuity contract is for an incidental life insurance premium, you will need to determine the amount of the premium and subtract it from your includible compensation. Free 2012 federal tax filing To determine the amount of the life insurance premiums, you will need to know the following information. Free 2012 federal tax filing The value of your life insurance contract, which is the amount payable upon your death. Free 2012 federal tax filing The cash value of your life insurance contract at the end of the tax year. Free 2012 federal tax filing Your age on your birthday nearest the beginning of the policy year. Free 2012 federal tax filing Your current life insurance protection under an ordinary retirement income life insurance policy, which is the amount payable upon your death minus the cash value of the contract at the end of the year. Free 2012 federal tax filing You can use Worksheet A, in chapter 9, to determine the cost of your incidental life insurance. Free 2012 federal tax filing Example. Free 2012 federal tax filing Your new contract provides that your beneficiary will receive $10,000 if you should die before retirement. Free 2012 federal tax filing Your cash value in the contract at the end of the first year is zero. Free 2012 federal tax filing Your current life insurance protection for the first year is $10,000 ($10,000 − 0). Free 2012 federal tax filing The cash value in the contract at the end of year two is $1,000, and the current life insurance protection for the second year is $9,000 ($10,000 – $1,000). Free 2012 federal tax filing The 1-year cost of the protection can be calculated by using Figure 3-1, Table of One-Year Term Premiums for $1,000 Life Insurance Protection . Free 2012 federal tax filing The premium rate is determined based on your age on your birthday nearest the beginning of the policy year. Free 2012 federal tax filing Figure 3-1. Free 2012 federal tax filing Table of One-Year Term Premiums for $1,000 Life Insurance Protection Age Cost   Age Cost   Age Cost 0 $0. Free 2012 federal tax filing 70   35 $0. Free 2012 federal tax filing 99   70 $20. Free 2012 federal tax filing 62 1 0. Free 2012 federal tax filing 41   36 1. Free 2012 federal tax filing 01   71 22. Free 2012 federal tax filing 72 2 0. Free 2012 federal tax filing 27   37 1. Free 2012 federal tax filing 04   72 25. Free 2012 federal tax filing 07 3 0. Free 2012 federal tax filing 19   38 1. Free 2012 federal tax filing 06   73 27. Free 2012 federal tax filing 57 4 0. Free 2012 federal tax filing 13   39 1. Free 2012 federal tax filing 07   74 30. Free 2012 federal tax filing 18 5 0. Free 2012 federal tax filing 13   40 1. Free 2012 federal tax filing 10   75 33. Free 2012 federal tax filing 05 6 0. Free 2012 federal tax filing 14   41 1. Free 2012 federal tax filing 13   76 36. Free 2012 federal tax filing 33 7 0. Free 2012 federal tax filing 15   42 1. Free 2012 federal tax filing 20   77 40. Free 2012 federal tax filing 17 8 0. Free 2012 federal tax filing 16   43 1. Free 2012 federal tax filing 29   78 44. Free 2012 federal tax filing 33 9 0. Free 2012 federal tax filing 16   44 1. Free 2012 federal tax filing 40   79 49. Free 2012 federal tax filing 23 10 0. Free 2012 federal tax filing 16   45 1. Free 2012 federal tax filing 53   80 54. Free 2012 federal tax filing 56 11 0. Free 2012 federal tax filing 19   46 1. Free 2012 federal tax filing 67   81 60. Free 2012 federal tax filing 51 12 0. Free 2012 federal tax filing 24   47 1. Free 2012 federal tax filing 83   82 66. Free 2012 federal tax filing 74 13 0. Free 2012 federal tax filing 28   48 1. Free 2012 federal tax filing 98   83 73. Free 2012 federal tax filing 07 14 0. Free 2012 federal tax filing 33   49 2. Free 2012 federal tax filing 13   84 80. Free 2012 federal tax filing 35 15 0. Free 2012 federal tax filing 38   50 2. Free 2012 federal tax filing 30   85 88. Free 2012 federal tax filing 76 16 0. Free 2012 federal tax filing 52   51 2. Free 2012 federal tax filing 52   86 99. Free 2012 federal tax filing 16 17 0. Free 2012 federal tax filing 57   52 2. Free 2012 federal tax filing 81   87 110. Free 2012 federal tax filing 40 18 0. Free 2012 federal tax filing 59   53 3. Free 2012 federal tax filing 20   88 121. Free 2012 federal tax filing 85 19 0. Free 2012 federal tax filing 61   54 3. Free 2012 federal tax filing 65   89 133. Free 2012 federal tax filing 40 20 0. Free 2012 federal tax filing 62   55 4. Free 2012 federal tax filing 15   90 144. Free 2012 federal tax filing 30 21 0. Free 2012 federal tax filing 62   56 4. Free 2012 federal tax filing 68   91 155. Free 2012 federal tax filing 80 22 0. Free 2012 federal tax filing 64   57 5. Free 2012 federal tax filing 20   92 168. Free 2012 federal tax filing 75 23 0. Free 2012 federal tax filing 66   58 5. Free 2012 federal tax filing 66   93 186. Free 2012 federal tax filing 44 24 0. Free 2012 federal tax filing 68   59 6. Free 2012 federal tax filing 06   94 206. Free 2012 federal tax filing 70 25 0. Free 2012 federal tax filing 71   60 6. Free 2012 federal tax filing 51   95 228. Free 2012 federal tax filing 35 26 0. Free 2012 federal tax filing 73   61 7. Free 2012 federal tax filing 11   96 250. Free 2012 federal tax filing 01 27 0. Free 2012 federal tax filing 76   62 7. Free 2012 federal tax filing 96   97 265. Free 2012 federal tax filing 09 28 0. Free 2012 federal tax filing 80   63 9. Free 2012 federal tax filing 08   98 270. Free 2012 federal tax filing 11 29 0. Free 2012 federal tax filing 83   64 10. Free 2012 federal tax filing 41   99 281. Free 2012 federal tax filing 05 30 0. Free 2012 federal tax filing 87   65 11. Free 2012 federal tax filing 90       31 0. Free 2012 federal tax filing 90   66 13. Free 2012 federal tax filing 51       32 0. Free 2012 federal tax filing 93   67 15. Free 2012 federal tax filing 20       33 0. Free 2012 federal tax filing 96   68 16. Free 2012 federal tax filing 92       34 0. Free 2012 federal tax filing 98   69 18. Free 2012 federal tax filing 70                       If the current published premium rates per $1,000 of insurance protection charged by an insurer for individual 1-year term life insurance premiums available to all standard risks are lower than those in the preceding table, you can use the lower rates for figuring the cost of insurance in connection with individual policies issued by the same insurer. Free 2012 federal tax filing Example 1. Free 2012 federal tax filing Lynne Green, age 44, and her employer enter into a 403(b) plan that will provide her with a $500 a month annuity upon retirement at age 65. Free 2012 federal tax filing The agreement also provides that if she should die before retirement, her beneficiary will receive the greater of $20,000 or the cash surrender value in the life insurance contract. Free 2012 federal tax filing Using the facts presented we can determine the cost of Lynne's life insurance protection as shown in Table 3-1. Free 2012 federal tax filing Lynne's employer has included $28 for the cost of the life insurance protection in her current year's income. Free 2012 federal tax filing When figuring her includible compensation for this year, Lynne will subtract $28. Free 2012 federal tax filing Table 3-1. Free 2012 federal tax filing Worksheet A. Free 2012 federal tax filing Cost of Incidental Life Insurance Note. Free 2012 federal tax filing Use this worksheet to figure the cost of incidental life insurance included in your annuity contract. Free 2012 federal tax filing This amount will be used to figure includible compensation for your most recent year of service. Free 2012 federal tax filing 1. Free 2012 federal tax filing Enter the value of the contract (amount payable upon your death) 1. Free 2012 federal tax filing $20,000. Free 2012 federal tax filing 00 2. Free 2012 federal tax filing Enter the cash value in the contract at the end of the year 2. Free 2012 federal tax filing 0. Free 2012 federal tax filing 00 3. Free 2012 federal tax filing Subtract line 2 from line 1. Free 2012 federal tax filing This is the value of your current life insurance protection 3. Free 2012 federal tax filing $20,000. Free 2012 federal tax filing 00 4. Free 2012 federal tax filing Enter your age on your birthday nearest the beginning of the policy year 4. Free 2012 federal tax filing 44 5. Free 2012 federal tax filing Enter the 1-year term premium for $1,000 of life insurance based on your age. Free 2012 federal tax filing (From Figure 3-1) 5. Free 2012 federal tax filing $1. Free 2012 federal tax filing 40 6. Free 2012 federal tax filing Divide line 3 by $1,000 6. Free 2012 federal tax filing 20 7. Free 2012 federal tax filing Multiply line 6 by line 5. Free 2012 federal tax filing This is the cost of your incidental life insurance 7. Free 2012 federal tax filing $28. Free 2012 federal tax filing 00 Example 2. Free 2012 federal tax filing Lynne's cash value in the contract at the end of the second year is $1,000. Free 2012 federal tax filing In year two, the cost of Lynne's life insurance is calculated as shown in Table 3-2. Free 2012 federal tax filing In year two, Lynne's employer will include $29. Free 2012 federal tax filing 07 in her current year's income. Free 2012 federal tax filing Lynne will subtract this amount when figuring her includible compensation. Free 2012 federal tax filing Table 3-2. Free 2012 federal tax filing Worksheet A. Free 2012 federal tax filing Cost of Incidental Life Insurance Note. Free 2012 federal tax filing Use this worksheet to figure the cost of incidental life insurance included in your annuity contract. Free 2012 federal tax filing This amount will be used to figure includible compensation for your most recent year of service. Free 2012 federal tax filing 1. Free 2012 federal tax filing Enter the value of the contract (amount payable upon your death) 1. Free 2012 federal tax filing $20,000. Free 2012 federal tax filing 00 2. Free 2012 federal tax filing Enter the cash value in the contract at the end of the year 2. Free 2012 federal tax filing $1,000. Free 2012 federal tax filing 00 3. Free 2012 federal tax filing Subtract line 2 from line 1. Free 2012 federal tax filing This is the value of your current life insurance protection 3. Free 2012 federal tax filing $19,000. Free 2012 federal tax filing 00 4. Free 2012 federal tax filing Enter your age on your birthday nearest the beginning of the policy year 4. Free 2012 federal tax filing 45 5. Free 2012 federal tax filing Enter the 1-year term premium for $1,000 of life insurance based on your age. Free 2012 federal tax filing (From Figure 3-1) 5. Free 2012 federal tax filing $1. Free 2012 federal tax filing 53 6. Free 2012 federal tax filing Divide line 3 by $1,000 6. Free 2012 federal tax filing 19 7. Free 2012 federal tax filing Multiply line 6 by line 5. Free 2012 federal tax filing This is the cost of your incidental life insurance 7. Free 2012 federal tax filing $29. Free 2012 federal tax filing 07 Figuring Includible Compensation for Your Most Recent Year of Service You can use Worksheet B in chapter 9 to determine your includible compensation for your most recent year of service. Free 2012 federal tax filing Example. Free 2012 federal tax filing Floyd has been periodically working full-time for a local hospital since September 2011. Free 2012 federal tax filing He needs to figure his limit on annual additions for 2014. Free 2012 federal tax filing The hospital's normal annual work period for employees in Floyd's general type of work runs from January to December. Free 2012 federal tax filing During the periods that Floyd was employed with the hospital, the hospital has always been eligible to provide a 403(b) plan to employees. Free 2012 federal tax filing Additionally, the hospital has never provided the employees with a 457 deferred compensation plan, a transportation fringe benefit plan, or a cafeteria plan. Free 2012 federal tax filing Floyd has never worked abroad and there is no life insurance provided under the plan. Free 2012 federal tax filing Table 3-3 shows the service Floyd provided to his employer, his compensation for the periods worked, his elective deferrals, and his taxable wages. Free 2012 federal tax filing Table 3-3. Free 2012 federal tax filing Floyd's Compensation Note. Free 2012 federal tax filing This table shows information Floyd will use to figure includible compensation for his most recent year of service. Free 2012 federal tax filing   Year Years of Service Taxable Wages Elective Deferrals 2014 6/12 of  a year $42,000 $2,000 2013 4/12 of  a year $16,000 $1,650 2012 4/12 of  a year $16,000 $1,650 Before Floyd can figure his limit on annual additions, he must figure includible compensation for his most recent year of service. Free 2012 federal tax filing Because Floyd is not planning to work the entire 2014 year, his most recent year of service will include the time he is planning to work in 2014 plus time he worked in the preceding 3 years until the time he worked for the hospital totals 1 year. Free 2012 federal tax filing If the total time he worked is less than 1 year, Floyd will treat it as if it were 1 year. Free 2012 federal tax filing He figures his most recent year of service shown in the following list. Free 2012 federal tax filing Time he will work in 2014 is 6/12 of a year. Free 2012 federal tax filing Time worked in 2013 is 4/12 of a year. Free 2012 federal tax filing All of this time will be used to determine Floyd's most recent year of service. Free 2012 federal tax filing Time worked in 2012 is 4/12 of a year. Free 2012 federal tax filing Floyd only needs 2 months of the 4 months he worked in 2012 to have enough time to total 1 full year. Free 2012 federal tax filing Because he needs only one-half of the actual time he worked, Floyd will use only one-half of his income earned during that period to calculate wages that will be used in figuring his includible compensation. Free 2012 federal tax filing Using the information provided in Table 3-3, wages for Floyd's most recent year of service are $66,000 ($42,000 + $16,000 + $8,000). Free 2012 federal tax filing His includible compensation for his most recent year of service is figured as shown in Table 3-4. Free 2012 federal tax filing After figuring his includible compensation, Floyd determines his limit on annual additions for 2014 to be $52,000, the lesser of his includible compensation, $70,475 (Table 3-4), and the maximum amount of $52,000. Free 2012 federal tax filing Table 3-4. Free 2012 federal tax filing Worksheet B. Free 2012 federal tax filing Includible Compensation for Your Most Recent Year of Service1 Note. Free 2012 federal tax filing Use this worksheet to figure includible compensation for your most recent year of service. Free 2012 federal tax filing 1. Free 2012 federal tax filing Enter your includible wages from the employer maintaining your 403(b) account for your most recent year of service 1. Free 2012 federal tax filing $66,000 2. Free 2012 federal tax filing Enter elective deferrals excluded from your gross income for your most recent year of service2 2. Free 2012 federal tax filing 4,4753 3. Free 2012 federal tax filing Enter amounts contributed or deferred by your employer under a cafeteria plan for your most recent year of service 3. Free 2012 federal tax filing -0- 4. Free 2012 federal tax filing Enter amounts contributed or deferred by your employer according to your election to your 457 account (a nonqualified plan of a state or local government, or of a tax-exempt organization) for your most recent year of service 4. Free 2012 federal tax filing -0- 5. Free 2012 federal tax filing Enter pre-tax contributions (employer's contributions made on your behalf according to your election) to a qualified transportation fringe benefit plan for your most recent year of service 5. Free 2012 federal tax filing -0- 6. Free 2012 federal tax filing Enter your foreign earned income exclusion for your most recent year of service 6. Free 2012 federal tax filing -0- 7. Free 2012 federal tax filing Add lines 1, 2, 3, 4, 5, and 6 7. Free 2012 federal tax filing 70,475 8. Free 2012 federal tax filing Enter the cost of incidental life insurance that is part of your annuity contract for your most recent year of service 8. Free 2012 federal tax filing -0- 9. Free 2012 federal tax filing Enter compensation that was both: Earned during your most recent year of service, and Earned while your employer was not qualified to maintain a 403(b) plan 9. Free 2012 federal tax filing -0- 10. Free 2012 federal tax filing Add lines 8 and 9 10. Free 2012 federal tax filing -0- 11. Free 2012 federal tax filing Subtract line 10 from line 7. Free 2012 federal tax filing This is your includible compensation for your most recent year of service 11. Free 2012 federal tax filing 70,475 1Use estimated amounts if figuring includible compensation before the end of the year. Free 2012 federal tax filing 2Elective deferrals made to a designated Roth account are not excluded from your gross income and should not be included on this line. Free 2012 federal tax filing  3$4,475 ($2,000 + $1,650 + $825). Free 2012 federal tax filing Prev  Up  Next   Home   More Online Publications