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

TurboTax Federal Free Edition - File Taxes Online

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

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


© 2012 - 2018 All rights reserved.

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

Free E File For State Taxes

Free Online Federal And State Tax Filing 20131040x Form 20112012 Free Taxes OnlineWww Irs Gov EfileCan I Amend My 2008 Tax Return1040ez Instruction ManualIrs 1040ez InstructionsFile Tax Return For 2011Free Irs EfileFile Federal Taxes Online Free 20122011 Tax Forms EzIrs Form1040xHow To File 1040ezAmended 1040x Instructions2011 Tax Form 1040 Ez1040 Ez Free FileTax AmendAmended Federal Tax Return FormWhere Do I Get A 1040x FormFree Turbo Tax MilitaryFiling State Tax FreeHrblockonlineFederal Tax Form 20112012 1040 FormFree State Tax Return TurbotaxTurbo Tax 1040ezTax FormsAmend A 2013 Tax ReturnHow To Revise Tax ReturnFederal Tax Forms And State FormsForm 1040nr InstructionsRevised Tax Return2012 1040a Tax Form2013 Form 1040ezHow To Amend A Tax Return Already FiledFile Amended Tax Return Online1040 Ez Tax Form 2013Efile Tax Return For FreeTax ChartFiling Income Tax For 2012

Free E File For State Taxes

Free e file for state taxes 1. Free e file for state taxes   Scholarships, Fellowships, Grants, and Tuition Reductions Table of Contents Reminder Introduction Scholarships and FellowshipsTax-Free Scholarships and Fellowships Taxable Scholarships and Fellowships Reporting Scholarships and Fellowships Other Types of Educational AssistanceFulbright Grants Pell Grants and Other Title IV Need-Based Education Grants Payment to Service Academy Cadets Veterans' Benefits Qualified Tuition Reduction Reminder Individual retirement arrangements (IRAs). Free e file for state taxes  You can set up and make contributions to an IRA if you receive taxable compensation. Free e file for state taxes Under this rule, a taxable scholarship or fellowship is compensation only if it is shown in box 1 of your Form W-2, Wage and Tax Statement. Free e file for state taxes For more information about IRAs, see Publication 590. Free e file for state taxes Introduction This chapter discusses the income tax treatment of various types of educational assistance you may receive if you are studying, teaching, or researching in the United States. Free e file for state taxes The educational assistance can be for a primary or secondary school, a college or university, or a vocational school. Free e file for state taxes Included are discussions of: Scholarships, Fellowships, Need-based education grants, such as a Pell Grant, and Qualified tuition reductions. Free e file for state taxes Many types of educational assistance are tax free if they meet the requirements discussed here. Free e file for state taxes Special rules apply to U. Free e file for state taxes S. Free e file for state taxes citizens and resident aliens who have received scholarships or fellowships for studying, teaching, or researching abroad. Free e file for state taxes For information about these rules, see Publication 54, Tax Guide for U. Free e file for state taxes S. Free e file for state taxes Citizens and Resident Aliens Abroad. Free e file for state taxes Scholarships and Fellowships A scholarship is generally an amount paid or allowed to, or for the benefit of, a student (whether an undergraduate or a graduate) at an educational institution to aid in the pursuit of his or her studies. Free e file for state taxes A fellowship is generally an amount paid for the benefit of an individual to aid in the pursuit of study or research. Free e file for state taxes Amount of scholarship or fellowship. Free e file for state taxes   The amount of a scholarship or fellowship includes the following: The value of contributed services and accommodations. Free e file for state taxes This includes such services and accommodations as room (lodging), board (meals), laundry service, and similar services or accommodations that are received by an individual as a part of a scholarship or fellowship. Free e file for state taxes The amount of tuition, matriculation, and other fees that are paid or remitted to the student to aid the student in pursuing study or research. Free e file for state taxes Any amount received in the nature of a family allowance as a part of a scholarship or fellowship. Free e file for state taxes Tax-Free Scholarships and Fellowships A scholarship or fellowship is tax free (excludable from gross income) only if you are a candidate for a degree at an eligible educational institution. Free e file for state taxes A scholarship or fellowship is tax free only to the extent: It does not exceed your expenses; It is not designated or earmarked for other purposes (such as room and board), and does not require (by its terms) that it cannot be used for qualified education expenses; and It does not represent payment for teaching, research, or other services required as a condition for receiving the scholarship. Free e file for state taxes (But for exceptions, see Payment for services,later. Free e file for state taxes Use Worksheet 1–1 to figure the amount of a scholarship or fellowship you can exclude from gross income. Free e file for state taxes Candidate for a degree. Free e file for state taxes   You are a candidate for a degree if you: Attend a primary or secondary school or are pursuing a degree at a college or university, or Attend an educational institution that: Provides a program that is acceptable for full credit toward a bachelor's or higher degree, or offers a program of training to prepare students for gainful employment in a recognized occupation; and Is authorized under federal or state law to provide such a program and is accredited by a nationally recognized accreditation agency. Free e file for state taxes Eligible educational institution. Free e file for state taxes   An eligible educational institution is one whose primary function is the presentation of formal instruction and that normally maintains a regular faculty and curriculum and normally has a regularly enrolled body of students in attendance at the place where it carries on its educational activities. Free e file for state taxes Qualified education expenses. Free e file for state taxes   For purposes of tax-free scholarships and fellowships, these are expenses for: Tuition and fees required to enroll at or attend an eligible educational institution, and Course-related expenses, such as fees, books, supplies, and equipment that are required for the courses at the eligible educational institution. Free e file for state taxes These items must be required of all students in your course of instruction. Free e file for state taxes Expenses that do not qualify. Free e file for state taxes   Qualified education expenses do not include the cost of: Room and board, Travel, Research, Clerical help, or Equipment and other expenses that are not required for enrollment in or attendance at an eligible educational institution. Free e file for state taxes Payment for services. Free e file for state taxes   Generally, you cannot exclude from your gross income the part of any scholarship or fellowship that represents payment for teaching, research, or other services required as a condition for receiving the scholarship. Free e file for state taxes This applies even if all candidates for a degree must perform the services to receive the degree. Free e file for state taxes (See exceptions next. Free e file for state taxes ) Exceptions. Free e file for state taxes   You do not have to treat as payment for services the part of any scholarship or fellowship that represents payment for teaching, research, or other services if you receive the amount under: The National Health Service Corps Scholarship Program, or The Armed Forces Health Professions Scholarship and Financial Assistance Program. Free e file for state taxes Example 1. Free e file for state taxes You received a scholarship of $2,500. Free e file for state taxes The scholarship was not received under either of the exceptions mentioned above. Free e file for state taxes As a condition for receiving the scholarship, you must serve as a part-time teaching assistant. Free e file for state taxes Of the $2,500 scholarship, $1,000 represents payment for teaching. Free e file for state taxes The provider of your scholarship gives you a Form W-2 showing $1,000 as income. Free e file for state taxes Your qualified education expenses were at least $1,500. Free e file for state taxes Assuming that all other conditions are met, $1,500 of your scholarship is tax free. Free e file for state taxes The $1,000 you received for teaching is taxable. Free e file for state taxes Example 2. Free e file for state taxes You are a candidate for a degree at a medical school. Free e file for state taxes You receive a scholarship (not under either of the exceptions mentioned above) for your medical education and training. Free e file for state taxes The terms of your scholarship require you to perform future services. Free e file for state taxes A substantial penalty applies if you do not comply. Free e file for state taxes The entire amount of your grant is taxable as payment for services in the year it is received. Free e file for state taxes Athletic Scholarships An athletic scholarship is tax free only if and to the extent it meets the requirements discussed later. Free e file for state taxes Worksheet 1-1. Free e file for state taxes    You can use Worksheet 1-1, Taxable Scholarship and Fellowship Income , later, to figure the tax-free and taxable parts of your athletic scholarship. Free e file for state taxes    Worksheet 1-1. Free e file for state taxes Taxable Scholarship and Fellowship Income 1. Free e file for state taxes Enter the total amount of any scholarship or fellowship for 2013. Free e file for state taxes See Amount of scholarship or fellowship, earlier. Free e file for state taxes 1. Free e file for state taxes       If you are a degree candidate at an eligible educational institution, go to line 2. Free e file for state taxes If you are not a degree candidate at an eligible educational institution, stop here. Free e file for state taxes The entire amount is taxable. Free e file for state taxes For information on how to report this amount on your tax return, see Reporting Scholarships and Fellowships , earlier, in this chapter. Free e file for state taxes       2. Free e file for state taxes Enter the amount from line 1 that was for teaching, research, or any other services required as a condition for receiving the scholarship. Free e file for state taxes (Do not include amounts received for these items under the National Health Service Corps Scholarship Program or the Armed Forces Health Professions Scholarship and Financial Assistance Program. Free e file for state taxes ) 2. Free e file for state taxes     3. Free e file for state taxes Subtract line 2 from line 1 3. Free e file for state taxes     4. Free e file for state taxes Enter the amount from line 3 that your scholarship or fellowship required you to use for other than qualified education expenses 4. Free e file for state taxes     5. Free e file for state taxes Subtract line 4 from line 3 5. Free e file for state taxes     6. Free e file for state taxes Enter the amount of your qualified education expenses 6. Free e file for state taxes     7. Free e file for state taxes Enter the smaller of line 5 or line 6. Free e file for state taxes This amount is the most you can exclude from your gross income (the tax-free part of the scholarship or fellowship) 7. Free e file for state taxes     8. Free e file for state taxes Subtract line 7 from line 5 8. Free e file for state taxes     9. Free e file for state taxes Taxable part. Free e file for state taxes Add lines 2, 4, and 8. Free e file for state taxes See Reporting Scholarships and Fellowships , earlier, for how to report this amount on your tax return 9. Free e file for state taxes     Taxable Scholarships and Fellowships If and to the extent your scholarship or fellowship does not meet the requirements described earlier, it is taxable and must be included in gross income. Free e file for state taxes You can use Worksheet 1–1, Taxable Scholarship and Fellowship Income, later, to figure the tax-free and taxable parts of your scholarship or fellowship. Free e file for state taxes Reporting Scholarships and Fellowships Whether you must report your scholarship or fellowship depends on whether you must file a return and whether any part of your scholarship or fellowship is taxable. Free e file for state taxes If your only income is a completely tax-free scholarship or fellowship, you do not have to file a tax return and no reporting is necessary. Free e file for state taxes If all or part of your scholarship or fellowship is taxable and you are required to file a tax return, report the taxable amount as explained below. Free e file for state taxes You must report the taxable amount whether or not you received a Form W-2. Free e file for state taxes If you receive an incorrect Form W-2, ask the payer for a corrected one. Free e file for state taxes For information on whether you must file a return, see Publication 501, Exemptions, Standard Deduction, and Filing Information, or your income tax form instructions. Free e file for state taxes How To Report How you report any taxable scholarship or fellowship income depends on which return you file. Free e file for state taxes Form 1040EZ. Free e file for state taxes   If you file Form 1040EZ, include the taxable amount in the total on line 1. Free e file for state taxes If the taxable amount was not reported on Form W-2, also enter “SCH” and the taxable amount in the space to the left of line 1. Free e file for state taxes Form 1040A. Free e file for state taxes   If you file Form 1040A, include the taxable amount in the total on line 7. Free e file for state taxes If the taxable amount was not reported on Form W-2, also enter “SCH” and the taxable amount in the space to the left of line 7. Free e file for state taxes Form 1040. Free e file for state taxes   If you file Form 1040, include the taxable amount in the total on line 7. Free e file for state taxes If the taxable amount was not reported on Form W-2, also enter “SCH” and the taxable amount on the dotted line next to line 7. Free e file for state taxes Schedule SE (Form 1040). Free e file for state taxes   To determine your net earnings from self-employment, include amounts you receive under a scholarship as pay for your services that are reported to you on Form 1099-MISC, Miscellaneous Income. Free e file for state taxes If your net earnings are $400 or more, you must pay self-employment tax. Free e file for state taxes Use Schedule SE, Self-Employment Tax, to figure this tax. Free e file for state taxes Form 1040NR. Free e file for state taxes   If you file Form 1040NR, report the taxable amount on line 12. Free e file for state taxes Generally, you must report the amount shown in box 2 of Form(s) 1042-S, Foreign Person's U. Free e file for state taxes S. Free e file for state taxes Source Income Subject to Withholding. Free e file for state taxes See the Instructions for Form 1040NR for more information. Free e file for state taxes Form 1040NR-EZ. Free e file for state taxes   If you file Form 1040NR-EZ, report the taxable amount on line 5. Free e file for state taxes Generally, you must report the amount shown in box 2 of Form(s) 1042-S. Free e file for state taxes See the Instructions for Form 1040NR-EZ for more information. Free e file for state taxes Other Types of Educational Assistance The following discussions deal with other common types of educational assistance. Free e file for state taxes Fulbright Grants A Fulbright grant is generally treated as a scholarship or fellowship in figuring how much of the grant is tax free. Free e file for state taxes Pell Grants and Other Title IV Need-Based Education Grants These need-based grants are treated as scholarships for purposes of determining their tax treatment. Free e file for state taxes They are tax free to the extent used for qualified education expenses during the period for which a grant is awarded. Free e file for state taxes Payment to Service Academy Cadets An appointment to a United States military academy is not a scholarship or fellowship. Free e file for state taxes Payment you receive as a cadet or midshipman at an armed services academy is pay for personal services and will be reported to you in box 1 of Form W-2. Free e file for state taxes Include this pay in your income in the year you receive it unless one of the exceptions, discussed earlier under Payment for services , applies. Free e file for state taxes Veterans' Benefits Payments you receive for education, training, or subsistence under any law administered by the Department of Veterans Affairs (VA) are tax free. Free e file for state taxes Do not include these payments as income on your federal tax return. Free e file for state taxes If you qualify for one or more of the education benefits discussed in chapters 2 through 12, you may have to reduce the amount of education expenses qualifying for a specific benefit by part or all of your VA payments. Free e file for state taxes This applies only to the part of your VA payments that is required to be used for education expenses. Free e file for state taxes You may want to visit the Veteran's Administration website at www. Free e file for state taxes gibill. Free e file for state taxes va. Free e file for state taxes gov for specific information about the various VA benefits for education. Free e file for state taxes Example. Free e file for state taxes You have returned to college and are receiving two education benefits under the latest GI Bill: (1) a $1,534 monthly basic housing allowance (BHA) that is directly deposited to your checking account, and (2) $3,840 paid directly to your college for tuition. Free e file for state taxes Neither of these benefits is taxable and you do not report them on your tax return. Free e file for state taxes You also want to claim an American opportunity credit on your return. Free e file for state taxes You paid $5,000 in qualified education expenses (see chapter 2, American Opportunity Credit , later). Free e file for state taxes To figure the amount of credit, you must first subtract the $3,840 from your qualified education expenses because this payment under the GI Bill was required to be used for education expenses. Free e file for state taxes You do not subtract any amount of the BHA because it was paid to you and its use was not restricted. Free e file for state taxes Qualified Tuition Reduction If you are allowed to study tuition free or for a reduced rate of tuition, you may not have to pay tax on this benefit. Free e file for state taxes This is called a “tuition reduction. Free e file for state taxes ” You do not have to include a qualified tuition reduction in your income. Free e file for state taxes A tuition reduction is qualified only if you receive it from, and use it at, an eligible educational institution. Free e file for state taxes You do not have to use the tuition reduction at the eligible educational institution from which you received it. Free e file for state taxes In other words, if you work for an eligible educational institution and the institution arranges for you to take courses at another eligible educational institution without paying any tuition, you may not have to include the value of the free courses in your income. Free e file for state taxes The rules for determining if a tuition reduction is qualified, and therefore tax free, are different if the education provided is below the graduate level or is graduate education. Free e file for state taxes You must include in your income any tuition reduction you receive that is payment for your services. Free e file for state taxes Eligible educational institution. Free e file for state taxes   An eligible educational institution is one that maintains a regular faculty and curriculum and normally has a regularly enrolled body of students in attendance at the place where it carries on its educational activities. Free e file for state taxes Officers, owners, and highly compensated employees. Free e file for state taxes   Qualified tuition reductions apply to officers, owners, or highly compensated employees only if benefits are available to employees on a nondiscriminatory basis. Free e file for state taxes This means that the tuition reduction benefits must be available on substantially the same basis to each member of a group of employees. Free e file for state taxes The group must be defined under a reasonable classification set up by the employer. Free e file for state taxes The classification must not discriminate in favor of owners, officers, or highly compensated employees. Free e file for state taxes Payment for services. Free e file for state taxes   Generally, you must include in income the part of any qualified tuition reduction that represents payment for teaching, research, or other services by the student required as a condition of receiving the qualified tuition reduction. Free e file for state taxes This applies even if all candidates for a degree must perform the services to receive the degree. Free e file for state taxes (See below for exceptions. Free e file for state taxes ) Exceptions. Free e file for state taxes   You do not have to include in income the part of any scholarship or fellowship that represents payment for teaching, research, or other services if you receive the amount under: The National Health Service Corps Scholarship Program, or The Armed Forces Health Professions Scholarship and Financial Assistance Program. Free e file for state taxes Education Below the Graduate Level If you receive a tuition reduction for education below the graduate level (including primary, secondary, or high school), it is a qualified tuition reduction, and therefore tax free, only if your relationship to the educational institution providing the benefit is described below. Free e file for state taxes You are an employee of the eligible educational institution. Free e file for state taxes You were an employee of the eligible educational institution, but you retired or left on disability. Free e file for state taxes You are a widow or widower of an individual who died while an employee of the eligible educational institution or who retired or left on disability. Free e file for state taxes You are the dependent child or spouse of an individual described in (1) through (3), above. Free e file for state taxes Child of deceased parents. Free e file for state taxes   For purposes of the qualified tuition reduction, a child is a dependent child if the child is under age 25 and both parents have died. Free e file for state taxes Child of divorced parents. Free e file for state taxes   For purposes of the qualified tuition reduction, a dependent child of divorced parents is treated as the dependent of both parents. Free e file for state taxes Graduate Education A tuition reduction you receive for graduate education is qualified, and therefore tax free, if both of the following requirements are met. Free e file for state taxes It is provided by an eligible educational institution. Free e file for state taxes You are a graduate student who performs teaching or research activities for the educational institution. Free e file for state taxes You must include in income any other tuition reductions for graduate education that you receive. Free e file for state taxes How To Report Any tuition reduction that is taxable should be included as wages in box 1 of your Form W-2. Free e file for state taxes Report the amount from Form W-2, box 1, on line 7 (Form 1040 or Form 1040A) or line 1 (Form 1040EZ). Free e file for state taxes Prev  Up  Next   Home   More Online Publications
Español

American History

Find an A-Z list of American history topics and resources on the U.S. Constitution, Liberty Bell, flag, and more.

The Free E File For State Taxes

Free e file for state taxes 1. Free e file for state taxes   Bona Fide Residence Table of Contents Presence TestDays of Presence in the United States or Relevant Possession Significant Connection Tax HomeExceptions Closer ConnectionException for Year of Move Special Rules in the Year of a MoveYear of Moving to a Possession Year of Moving From a Possession Reporting a Change in Bona Fide ResidenceWho Must File Penalty for Not Filing Form 8898 In order to qualify for certain tax benefits (see chapter 3), you must be a bona fide resident of American Samoa, the CNMI, Guam, Puerto Rico, or the USVI for the entire tax year. Free e file for state taxes Generally, you are a bona fide resident of one of these possessions (the relevant possession) if, during the tax year, you: Meet the presence test, Do not have a tax home outside the relevant possession, and Do not have a closer connection to the United States or to a foreign country than to the relevant possession. Free e file for state taxes Special rule for members of the U. Free e file for state taxes S. Free e file for state taxes Armed Forces. Free e file for state taxes   If you are a member of the U. Free e file for state taxes S. Free e file for state taxes Armed Forces who qualified as a bona fide resident of the relevant possession in an earlier tax year, your absence from that possession during the current tax year in compliance with military orders will not affect your status as a bona fide resident. Free e file for state taxes Likewise, being in a possession solely in compliance with military orders will not qualify you for bona fide residency. Free e file for state taxes Also see the special income source rule for members of the U. Free e file for state taxes S. Free e file for state taxes Armed Forces in chapter 2, under Compensation for Labor or Personal Services . Free e file for state taxes Special rule for civilian spouse of active duty member of the U. Free e file for state taxes S. Free e file for state taxes Armed Forces. Free e file for state taxes   If you are the civilian spouse of an active duty servicemember, under Military Spouses Residency Relief Act (MSRRA) you can choose to keep your prior residence or domicile for tax purposes (tax residence) when accompanying the servicemember spouse, who is relocating under military orders, to a new military duty station in one of the 50 states, the District of Columbia, or a U. Free e file for state taxes S. Free e file for state taxes possession. Free e file for state taxes Before relocating, you and your spouse must have the same tax residence. Free e file for state taxes If you are a civilian spouse and choose to keep your prior tax residence after such relocation, the source of income for services performed (for example, wages, salaries, tips, or self-employment) by you is considered to be (the jurisdiction of) the prior tax residence. Free e file for state taxes As a result, the amount of income tax withholding (from Form(s) W-2, Wage and Tax Statement) that you are able to claim on your federal return, as well as the need to file a state or U. Free e file for state taxes S. Free e file for state taxes possession return, may be affected. Free e file for state taxes For more information, consult with state, local, or U. Free e file for state taxes S. Free e file for state taxes possession tax authorities regarding your tax obligations under MSRRA. Free e file for state taxes Presence Test If you are a U. Free e file for state taxes S. Free e file for state taxes citizen or resident alien, you will satisfy the presence test for the entire tax year if you meet one of the following conditions. Free e file for state taxes You were present in the relevant possession for at least 183 days during the tax year. Free e file for state taxes You were present in the relevant possession for at least 549 days during the 3-year period that includes the current tax year and the 2 immediately preceding tax years. Free e file for state taxes During each year of the 3-year period, you must be present in the relevant possession for at least 60 days. Free e file for state taxes You were present in the United States for no more than 90 days during the tax year. Free e file for state taxes You had earned income in the United States of no more than a total of $3,000 and were present for more days in the relevant possession than in the United States during the tax year. Free e file for state taxes Earned income is pay for personal services performed, such as wages, salaries, or professional fees. Free e file for state taxes You had no significant connection to the United States during the tax year. Free e file for state taxes Special rule for nonresident aliens. Free e file for state taxes   Conditions (1) through (5) above do not apply to nonresident aliens of the United States. Free e file for state taxes Instead, nonresident aliens must meet the substantial presence test discussed in chapter 1 of Publication 519. Free e file for state taxes In that discussion, substitute the name of the possession for “United States” and “U. Free e file for state taxes S. Free e file for state taxes ” wherever they appear. Free e file for state taxes Disregard the discussion in that chapter about a Closer Connection to a Foreign Country. Free e file for state taxes Days of Presence in the United States or Relevant Possession Generally, you are treated as being present in the United States or in the relevant possession on any day that you are physically present in that location at any time during the day. Free e file for state taxes Days of presence in a possession. Free e file for state taxes   You are considered to be present in the relevant possession on any of the following days. Free e file for state taxes Any day you are physically present in that possession at any time during the day. Free e file for state taxes Any day you are outside of the relevant possession in order to receive, or to accompany any of the following family members to receive, qualifying medical treatment (see Qualifying Medical Treatment , later). Free e file for state taxes Your parent. Free e file for state taxes Your spouse. Free e file for state taxes Your child, who is your son, daughter, stepson, or stepdaughter. Free e file for state taxes This includes an adopted child or child lawfully placed with you for legal adoption. Free e file for state taxes This also includes a foster child who is placed with you by an authorized placement agency or by judgment, decree, or other order of any court of competent jurisdiction. Free e file for state taxes Any day you are outside the relevant possession because you leave or are unable to return to the relevant possession during any: 14-day period within which a major disaster occurs in the relevant possession for which a Federal Emergency Management Agency (FEMA) notice of a federal declaration of a major disaster is issued in the Federal Register, or Period for which a mandatory evacuation order is in effect for the geographic area in the relevant possession in which your main home is located. Free e file for state taxes   If, during a single day, you are physically present: In the United States and in the relevant possession, that day is considered a day of presence in the relevant possession; or In two possessions, that day is considered a day of presence in the possession where your tax home is located (see Tax Home , later). Free e file for state taxes Days of presence in the United States. Free e file for state taxes   You are considered to be present in the United States on any day that you are physically present in the United States at any time during the day. Free e file for state taxes However, do not count the following days as days of presence in the United States. Free e file for state taxes Any day you are temporarily present in the United States in order to receive, or to accompany a parent, spouse, or child who is receiving, qualifying medical treatment. Free e file for state taxes “Child” is defined under item 2c earlier. Free e file for state taxes “Qualifying medical treatment” is defined later. Free e file for state taxes Any day you are temporarily present in the United States because you leave or are unable to return to the relevant possession during any: 14-day period within which a major disaster occurs in the relevant possession for which a Federal Emergency Management Agency (FEMA) notice of a federal declaration of a major disaster is issued in the Federal Register, or Period for which a mandatory evacuation order is in effect for the geographic area in the relevant possession in which your main home is located. Free e file for state taxes Any day you are in the United States for less than 24 hours when you are traveling between two places outside the United States. Free e file for state taxes Any day you are temporarily present in the United States as a professional athlete to compete in a charitable sports event (defined later). Free e file for state taxes Any day you are temporarily in the United States as a student (defined later). Free e file for state taxes Any day you are in the United States serving as an elected representative of the relevant possession, or serving full time as an elected or appointed official or employee of the government of that possession (or any of its political subdivisions). Free e file for state taxes Qualifying Medical Treatment Such treatment is generally provided by (or under the supervision of) a physician for an illness, injury, impairment, or physical or mental condition. Free e file for state taxes The treatment generally involves: Any period of inpatient care that requires an overnight stay in a hospital or hospice, and any period immediately before or after that inpatient care to the extent it is medically necessary, or Any temporary period of inpatient care in a residential medical care facility for medically necessary rehabilitation services. Free e file for state taxes With respect to each qualifying medical treatment, you must prepare (or obtain) and maintain documentation supporting your claim that such treatment meets the criteria to be considered days of presence in the relevant possession. Free e file for state taxes You must be able to produce this documentation within 30 days if requested by the IRS or tax administrator for the relevant possession. Free e file for state taxes You must keep the following documentation. Free e file for state taxes Records that provide: The patient's name and relationship to you (if the medical treatment is provided to a person you accompany); The name and address of the hospital, hospice, or residential medical care facility where the medical treatment was provided; The name, address, and telephone number of the physician who provided the medical treatment; The date(s) on which the medical treatment was provided; and Receipt(s) of payment for the medical treatment. Free e file for state taxes Signed certification by the providing or supervising physician that the medical treatment met the requirements for being qualified medical treatment, and setting forth: The patient's name, A reasonably detailed description of the medical treatment provided by (or under the supervision of) the physician, The dates on which the medical treatment was provided, and The medical facts that support the physician's certification and determination that the treatment was medically necessary. Free e file for state taxes Charitable Sports Event A charitable sports event is one that meets all of the following conditions. Free e file for state taxes The main purpose is to benefit a qualified charitable organization. Free e file for state taxes The entire net proceeds go to charity. Free e file for state taxes Volunteers perform substantially all the work. Free e file for state taxes In figuring the days of presence in the United States, you can exclude only the days on which you actually competed in the charitable sports event. Free e file for state taxes You cannot exclude the days on which you were in the United States to practice for the event, to perform promotional or other activities related to the event, or to travel between events. Free e file for state taxes Student To qualify as a student, you must be, during some part of each of any 5 calendar months during the calendar year: A full-time student at a school that has a regular teaching staff, course of study, and regularly enrolled body of students in attendance, or A student taking a full-time, on-farm training course given by a school described in (1) above or by a state, county, or local government agency. Free e file for state taxes The 5 calendar months do not have to be consecutive. Free e file for state taxes Full-time student. Free e file for state taxes   A full-time student is a person who is enrolled for the number of hours or courses the school considers to be full-time attendance. Free e file for state taxes However, school attendance exclusively at night is not considered full-time attendance. Free e file for state taxes School. Free e file for state taxes   The term “school” includes elementary schools, middle schools, junior and senior high schools, colleges, universities, and technical, trade, and mechanical schools. Free e file for state taxes It does not include on-the-job training courses, correspondence schools, and schools offering courses only through the Internet. Free e file for state taxes Significant Connection One way in which you can meet the presence test is to have no significant connection to the United States during the tax year. Free e file for state taxes This section looks at the factors that determine if a significant connection exists. Free e file for state taxes You are treated as having a significant connection to the United States if you: Have a permanent home in the United States, Are currently registered to vote in any political subdivision of the United States, or Have a spouse or child (see item 2c under Days of presence in a possession , earlier) who is under age 18 whose main home is in the United States, other than: A child who is in the United States because he or she is the child of divorced or legally separated parents and is living with a custodial parent under a custodial decree or multiple support agreement, or A child who is in the United States as a student. Free e file for state taxes For the purpose of determining if you have a significant connection to the United States, the term “spouse” does not include a spouse from whom you are legally separated under a decree of divorce or separate maintenance. Free e file for state taxes Permanent home. Free e file for state taxes   A permanent home generally includes an accommodation such as a house, an apartment, or a furnished room that is either owned or rented by you or your spouse. Free e file for state taxes The dwelling unit must be available at all times, continuously, not only for short stays. Free e file for state taxes Exception for rental property. Free e file for state taxes   If you or your spouse own the dwelling unit and at any time during the tax year it is rented to someone else at fair rental value, it will be considered your permanent home only if you or your spouse use that property for personal purposes for more than the greater of: 14 days, or 10% of the number of days during that tax year that the property is rented to others at a fair rental value. Free e file for state taxes   You are treated as using rental property for personal purposes on any day the property is not being rented to someone else at fair rental value for the entire day. Free e file for state taxes   A day of personal use of a dwelling unit is also any day that the unit is used by any of the following persons. Free e file for state taxes You or any other person who has an interest in it, unless you rent it to another owner as his or her main home under a shared equity financing agreement. Free e file for state taxes A member of your family or a member of the family of any other person who has an interest in it, unless the family member uses the dwelling unit as his or her main home and pays a fair rental price. Free e file for state taxes Family includes only brothers and sisters, half-brothers and half-sisters, spouses, ancestors (parents, grandparents, etc. Free e file for state taxes ), and lineal descendants (children, grandchildren, etc. Free e file for state taxes ). Free e file for state taxes Anyone under an arrangement that lets you use some other dwelling unit. Free e file for state taxes Anyone at less than a fair rental price. Free e file for state taxes   However, any day you spend working substantially full time repairing and maintaining (not improving) your property is not counted as a day of personal use. Free e file for state taxes Whether your property is used mainly for this purpose is determined in light of all the facts and circumstances, such as: The amount of time you devote to repair and maintenance work, How often during the tax year you perform repair and maintenance work on this property, and The presence and activities of companions. Free e file for state taxes   See Publication 527, Residential Rental Property, for more information about personal use of a dwelling unit. Free e file for state taxes Example—significant connection. Free e file for state taxes Ann Green, a U. Free e file for state taxes S. Free e file for state taxes citizen, is a sales representative for a company based in Guam. Free e file for state taxes Ann lives with her spouse and young children in their house in Guam, where she is also registered to vote. Free e file for state taxes Her business travel requires her to spend 120 days in the United States and another 120 days in foreign countries. Free e file for state taxes When traveling on business, Ann generally stays at hotels but sometimes stays with her brother, who lives in the United States. Free e file for state taxes Ann's stays are always of short duration and she asks her brother's permission to stay with him. Free e file for state taxes Her brother's house is not her permanent home, nor does she have any other accommodations in the United States that would be considered her permanent home. Free e file for state taxes Ann satisfies the presence test because she has no significant connection to the United States. Free e file for state taxes Example—presence test. Free e file for state taxes Eric and Wanda Brown live for part of the year in a condominium, which they own, in the CNMI. Free e file for state taxes They also own a house in Maine where they live for 120 days every year to be near their grown children and grandchildren. Free e file for state taxes The Browns are retired and their only income is from pension payments, dividends, interest, and social security benefits. Free e file for state taxes In 2013, they spent only 175 days in the CNMI because of a 70-day vacation to Europe and Asia. Free e file for state taxes Thus, in 2013, the Browns were not present in the CNMI for at least 183 days, were present in the United States for more than 90 days, and had a significant connection to the United States because of their permanent home. Free e file for state taxes However, the Browns still satisfied the presence test with respect to the CNMI because they had no earned income in the United States and were physically present for more days in the CNMI than in the United States. Free e file for state taxes Tax Home You will have met the tax home test if you did not have a tax home outside the relevant possession during any part of the tax year. Free e file for state taxes Your tax home is your regular or main place of business, employment, or post of duty regardless of where you maintain your family home. Free e file for state taxes If you do not have a regular or main place of business because of the nature of your work, then your tax home is the place where you regularly live. Free e file for state taxes If you do not fit either of these categories, you are considered an itinerant and your tax home is wherever you work. Free e file for state taxes Exceptions There are some special rules regarding tax home that provide exceptions to the general rule stated above. Free e file for state taxes Students and Government Officials Disregard the following days when determining whether you have a tax home outside the relevant possession. Free e file for state taxes Days you were temporarily in the United States as a student (see Student under Days of Presence in the United States or Relevant Possession, earlier). Free e file for state taxes Days you were in the United States serving as an elected representative of the relevant possession, or serving full time as an elected or appointed official or employee of the government of that possession (or any of its political subdivisions). Free e file for state taxes Seafarers You will not be considered to have a tax home outside the relevant possession solely because you are employed on a ship or other seafaring vessel that is predominantly used in local and international waters. Free e file for state taxes For this purpose, a vessel is considered to be predominantly used in local and international waters if, during the tax year, the total amount of time it is used in international waters and in the waters within 3 miles of the relevant possession exceeds the total amount of time it is used in the territorial waters of the United States, another possession, or any foreign country. Free e file for state taxes Example. Free e file for state taxes In 2013, Sean Silverman, a U. Free e file for state taxes S. Free e file for state taxes citizen, was employed by a fishery and spent 250 days at sea on a fishing vessel. Free e file for state taxes When not at sea, Sean lived with his spouse at a house they own in American Samoa. Free e file for state taxes The fishing vessel on which Sean works departs and arrives at various ports in American Samoa, other possessions, and foreign countries, but was in international or American Samoa's local waters for 225 days. Free e file for state taxes For purposes of determining bona fide residency of American Samoa, Sean will not be considered to have a tax home outside that possession solely because of his employment on board the fishing vessel. Free e file for state taxes Year of Move If you are moving to or from a possession during the year, you may still be able to meet the tax home test for that year. Free e file for state taxes See Special Rules in the Year of a Move , later in this chapter. Free e file for state taxes Closer Connection You will have met the closer connection test if, during any part of the tax year, you do not have a closer connection to the United States or a foreign country than to the relevant U. Free e file for state taxes S. Free e file for state taxes possession. Free e file for state taxes You will be considered to have a closer connection to a possession than to the United States or to a foreign country if you have maintained more significant contacts with the possession(s) than with the United States or foreign country. Free e file for state taxes In determining if you have maintained more significant contacts with the relevant possession, the facts and circumstances to be considered include, but are not limited to, the following. Free e file for state taxes The location of your permanent home. Free e file for state taxes The location of your family. Free e file for state taxes The location of personal belongings, such as automobiles, furniture, clothing, and jewelry owned by you and your family. Free e file for state taxes The location of social, political, cultural, professional, or religious organizations with which you have a current relationship. Free e file for state taxes The location where you conduct your routine personal banking activities. Free e file for state taxes The location where you conduct business activities (other than those that go into determining your tax home). Free e file for state taxes The location of the jurisdiction in which you hold a driver's license. Free e file for state taxes The location of the jurisdiction in which you vote. Free e file for state taxes The location of charitable organizations to which you contribute. Free e file for state taxes The country of residence you designate on forms and documents. Free e file for state taxes The types of official forms and documents you file, such as Form W-8BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (Individuals), or Form W-9, Request for Taxpayer Identification Number and Certification. Free e file for state taxes Your connections to the relevant possession will be compared to the total of your connections with the United States and foreign countries. Free e file for state taxes Your answers to the questions on Form 8898, Part III, will help establish the jurisdiction to which you have a closer connection. Free e file for state taxes Example—closer connection to the United States. Free e file for state taxes Marcos Reyes, a U. Free e file for state taxes S. Free e file for state taxes citizen, moved to Puerto Rico in 2013 to start an investment consulting and venture capital business. Free e file for state taxes His spouse and two teenage children remained in California to allow the children to complete high school. Free e file for state taxes He traveled back to the United States regularly to see his spouse and children, to engage in business activities, and to take vacations. Free e file for state taxes Marcos had an apartment available for his full-time use in Puerto Rico, but remained a joint owner of the residence in California where his spouse and children lived. Free e file for state taxes Marcos and his family had automobiles and personal belongings such as furniture, clothing, and jewelry located at both residences. Free e file for state taxes Although Marcos was a member of the Puerto Rico Chamber of Commerce, he also belonged to and had current relationships with social, political, cultural, and religious organizations in California. Free e file for state taxes Marcos received mail in California, including bank and brokerage statements and credit card bills. Free e file for state taxes He conducted his personal banking activities in California. Free e file for state taxes He held a California driver's license and was also registered to vote there. Free e file for state taxes Based on all of the particular facts and circumstances pertaining to Marcos, he was not a bona fide resident of Puerto Rico in 2013 because he had a closer connection to the United States than to Puerto Rico. Free e file for state taxes Closer connection to another possession. Free e file for state taxes   Generally, possessions are not treated as foreign countries. Free e file for state taxes Therefore, a closer connection to a possession other than the relevant possession will not be treated as a closer connection to a foreign country. Free e file for state taxes Example—tax home and closer connection to possession. Free e file for state taxes Pearl Blackmon, a U. Free e file for state taxes S. Free e file for state taxes citizen, is a permanent employee of a hotel in Guam, but works only during the tourist season. Free e file for state taxes For the remainder of each year, Pearl lives with her spouse and children in the CNMI, where she has no outside employment. Free e file for state taxes Most of Pearl's personal belongings, including her automobile, are located in the CNMI. Free e file for state taxes She is registered to vote in, and has a driver's license issued by, the CNMI. Free e file for state taxes She does her personal banking in the CNMI and routinely lists her CNMI address as her permanent address on forms and documents. Free e file for state taxes Pearl satisfies the presence test with respect to both Guam and the CNMI. Free e file for state taxes She satisfies the tax home test with respect to Guam, because her regular place of business is in Guam. Free e file for state taxes Pearl satisfies the closer connection test with respect to both Guam and the CNMI, because she does not have a closer connection to the United States or to any foreign country. Free e file for state taxes Pearl is considered a bona fide resident of Guam, the location of her tax home. Free e file for state taxes Exception for Year of Move If you are moving to or from a possession during the year, you may still be able to meet the closer connection test for that year. Free e file for state taxes See Special Rules in the Year of a Move , next. Free e file for state taxes Special Rules in the Year of a Move If you are moving to or from a possession during the year, you may still be able to meet the tax home and closer connection tests for that year. Free e file for state taxes Year of Moving to a Possession You will satisfy the tax home and closer connection tests in the tax year of changing your residence to the relevant possession if you meet all of the following. Free e file for state taxes You have not been a bona fide resident of the relevant possession in any of the 3 tax years immediately preceding your move. Free e file for state taxes In the year of the move, you do not have a tax home outside the relevant possession or a closer connection to the United States or a foreign country than to the relevant possession during any of the last 183 days of the tax year. Free e file for state taxes You are a bona fide resident of the relevant possession for each of the 3 tax years immediately following your move. Free e file for state taxes Example. Free e file for state taxes Dwight Wood, a U. Free e file for state taxes S. Free e file for state taxes citizen, files returns on a calendar year basis. Free e file for state taxes He lived in the United States from January 2007 through May 2013. Free e file for state taxes In June 2013 he moved to the USVI, purchased a house, and accepted a permanent job with a local employer. Free e file for state taxes From July 1 through December 31, 2013 (more than 183 days), Dwight's principal place of business was in the USVI and, during that time, he did not have a closer connection to the United States or a foreign country than to the USVI. Free e file for state taxes If he is a bona fide resident of the USVI during all of 2014 through 2016, he will satisfy the tax home and closer connection tests for 2013. Free e file for state taxes If Dwight also satisfies the presence test in 2013, he will be considered a bona fide resident of the USVI for the entire 2013 tax year. Free e file for state taxes Year of Moving From a Possession In the year you cease to be a bona fide resident of American Samoa, the CNMI, Guam, or the USVI, you will satisfy the tax home and closer connection tests with respect to the relevant possession if you meet all of the following. Free e file for state taxes You have been a bona fide resident of the relevant possession for each of the 3 tax years immediately preceding your change of residence. Free e file for state taxes In the year of the move, you do not have a tax home outside the relevant possession or a closer connection to the United States or a foreign country than to the relevant possession during any of the first 183 days of the tax year. Free e file for state taxes You are not a bona fide resident of the relevant possession for any of the 3 tax years immediately following your move. Free e file for state taxes Example. Free e file for state taxes Jean Aspen, a U. Free e file for state taxes S. Free e file for state taxes citizen, files returns on a calendar year basis. Free e file for state taxes From January 2010 through December 2012, Jean was a bona fide resident of American Samoa. Free e file for state taxes Jean continued to live there until September 6, 2013, when she accepted new employment and moved to Hawaii. Free e file for state taxes Jean's principal place of business from January 1 through September 5, 2013 (more than 183 days), was in American Samoa, and during that period Jean did not have a closer connection to the United States or a foreign country than to American Samoa. Free e file for state taxes If Jean continues to live and work in Hawaii for the rest of 2013 and throughout years 2014 through 2016, she will satisfy the tax home and closer connection tests for 2013 with respect to American Samoa. Free e file for state taxes If Jean also satisfies the presence test in 2013, she will be considered a bona fide resident for the entire 2013 tax year. Free e file for state taxes Puerto Rico You will be considered a bona fide resident of Puerto Rico for the part of the tax year preceding the date on which you move if you: Are a U. Free e file for state taxes S. Free e file for state taxes citizen, Are a bona fide resident of Puerto Rico for at least 2 tax years immediately preceding the tax year of the move, Cease to be a bona fide resident of Puerto Rico during the tax year, Cease to have a tax home in Puerto Rico during the tax year, and Have a closer connection to Puerto Rico than to the United States or a foreign country throughout the part of the tax year preceding the date on which you cease to have a tax home in Puerto Rico. Free e file for state taxes Example. Free e file for state taxes Randy White, a U. Free e file for state taxes S. Free e file for state taxes citizen, files returns on a calendar year basis. Free e file for state taxes For all of 2011 and 2012, Randy was a bona fide resident of Puerto Rico. Free e file for state taxes From January through April 2013, Randy continued to reside and maintain his principal place of business in and closer connection to Puerto Rico. Free e file for state taxes On May 5, 2013, Randy moved and changed his tax home to Nevada. Free e file for state taxes Later that year he established a closer connection to the United States than to Puerto Rico. Free e file for state taxes Randy did not satisfy the presence test for 2013 with respect to Puerto Rico, nor the tax home or closer connection tests. Free e file for state taxes However, because Randy was a bona fide resident of Puerto Rico for at least 2 tax years before he moved to Nevada in 2013, he was a bona fide resident of Puerto Rico from January 1 through May 4, 2013. Free e file for state taxes Reporting a Change in Bona Fide Residence If you became or ceased to be a bona fide resident of a U. Free e file for state taxes S. Free e file for state taxes possession, you may need to file Form 8898. Free e file for state taxes This applies to the U. Free e file for state taxes S. Free e file for state taxes possessions of American Samoa, the CNMI, Guam, Puerto Rico, and the USVI. Free e file for state taxes Who Must File You must file Form 8898 for the tax year in which you meet both of the following conditions. Free e file for state taxes Your worldwide gross income (defined below) in that tax year is more than $75,000. Free e file for state taxes You meet one of the following. Free e file for state taxes You take a position for U. Free e file for state taxes S. Free e file for state taxes tax purposes that you became a bona fide resident of a U. Free e file for state taxes S. Free e file for state taxes possession after a tax year for which you filed a U. Free e file for state taxes S. Free e file for state taxes income tax return as a citizen or resident alien of the United States but not as a bona fide resident of the possession. Free e file for state taxes You are a citizen or resident alien of the United States who takes the position for U. Free e file for state taxes S. Free e file for state taxes tax purposes that you ceased to be a bona fide resident of a U. Free e file for state taxes S. Free e file for state taxes possession after a tax year for which you filed an income tax return (with the IRS, the possession tax authority, or both) as a bona fide resident of the possession. Free e file for state taxes You take the position for U. Free e file for state taxes S. Free e file for state taxes tax purposes that you became a bona fide resident of Puerto Rico or American Samoa after a tax year for which you were required to file an income tax return as a bona fide resident of the CNMI, Guam, or the USVI. Free e file for state taxes Worldwide gross income. Free e file for state taxes   Worldwide gross income means all income you received in the form of money, goods, property, and services, including any income from sources outside the United States (even if you can exclude part or all of it) and before any deductions, credits, or rebates. Free e file for state taxes Example. Free e file for state taxes You are a U. Free e file for state taxes S. Free e file for state taxes citizen who moved to the CNMI in December 2012, but did not become a bona fide resident of that possession until the 2013 tax year. Free e file for state taxes You must file Form 8898 for the 2013 tax year if your worldwide gross income for that year was more than $75,000. Free e file for state taxes Penalty for Not Filing Form 8898 If you are required to file Form 8898 for any tax year and you fail to file it, you may owe a penalty of $1,000. Free e file for state taxes You may also owe this penalty if you do not include all the information required by the form or the form includes incorrect information. Free e file for state taxes In either case, you will not owe this penalty if you can show that such failure is due to reasonable cause and not willful neglect. Free e file for state taxes This is in addition to any criminal penalty that may be imposed. Free e file for state taxes Prev  Up  Next   Home   More Online Publications