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Free Filing State Taxes

Free filing state taxes Publication 515 - Main Content Table of Contents Withholding of TaxWithholding Agent Withholding and Reporting Obligations Persons Subject to NRA WithholdingIdentifying the Payee Foreign Persons DocumentationBeneficial Owners Foreign Intermediaries and Foreign Flow-Through Entities Standards of Knowledge Presumption Rules Income Subject to NRA WithholdingSource of Income Fixed or Determinable Annual or Periodical Income (FDAP) Withholding on Specific IncomeEffectively Connected Income Income Not Effectively Connected Pay for Personal Services Performed Artists and Athletes (Income Codes 42 and 43) Other Income Foreign Governments and Certain Other Foreign Organizations U. Free filing state taxes S. Free filing state taxes Taxpayer Identification NumbersUnexpected payment. Free filing state taxes Depositing Withheld TaxesWhen Deposits Are Required Adjustment for Overwithholding Returns RequiredJoint owners. Free filing state taxes Electronic reporting. Free filing state taxes Partnership Withholding on Effectively Connected IncomeWho Must Withhold Foreign Partner Publicly Traded Partnerships U. Free filing state taxes S. Free filing state taxes Real Property InterestForeign corporations. Free filing state taxes Domestic corporations. Free filing state taxes U. Free filing state taxes S. Free filing state taxes real property holding corporations. Free filing state taxes Partnerships. Free filing state taxes Trusts and estates. Free filing state taxes Domestically controlled QIE. Free filing state taxes Late filing of certifications or notices. Free filing state taxes Certifications. Free filing state taxes Liability of agent or qualified substitute. Free filing state taxes Reporting and Paying the Tax Withholding Certificates Tax Treaty TablesTable 1 Table 2 Table 3 How To Get Tax HelpLow Income Taxpayer Clinics (LITCs). Free filing state taxes Withholding of Tax In most cases, a foreign person is subject to U. Free filing state taxes S. Free filing state taxes tax on its U. Free filing state taxes S. Free filing state taxes source income. Free filing state taxes Most types of U. Free filing state taxes S. Free filing state taxes source income received by a foreign person are subject to U. Free filing state taxes S. Free filing state taxes tax of 30%. Free filing state taxes A reduced rate, including exemption, may apply if there is a tax treaty between the foreign person's country of residence and the United States. Free filing state taxes The tax is generally withheld (NRA withholding) from the payment made to the foreign person. Free filing state taxes The term “NRA withholding” is used in this publication descriptively to refer to withholding required under sections 1441, 1442, and 1443 of the Internal Revenue Code. Free filing state taxes In most cases, NRA withholding describes the withholding regime that requires withholding on a payment of U. Free filing state taxes S. Free filing state taxes source income. Free filing state taxes Payments to foreign persons, including nonresident alien individuals, foreign entities, and governments, may be subject to NRA withholding. Free filing state taxes NRA withholding does not include withholding under section 1445 of the Code (see U. Free filing state taxes S. Free filing state taxes Real Property Interest, later) or under section 1446 of the Code (see Partnership Withholding on Effectively Connected Income , later). Free filing state taxes A withholding agent (defined next) is the person responsible for withholding on payments made to a foreign person. Free filing state taxes However, a withholding agent that can reliably associate the payment with documentation (discussed later) from a U. Free filing state taxes S. Free filing state taxes person is not required to withhold. Free filing state taxes In addition, a withholding agent may apply a reduced rate of withholding (including an exemption from withholding) if it can reliably associate the payment with documentation from a beneficial owner that is a foreign person entitled to a reduced rate of withholding. Free filing state taxes Withholding Agent You are a withholding agent if you are a U. Free filing state taxes S. Free filing state taxes or foreign person that has control, receipt, custody, disposal, or payment of any item of income of a foreign person that is subject to withholding. Free filing state taxes A withholding agent may be an individual, corporation, partnership, trust, association, nominee (under section 1446 of the Code), or any other entity, including any foreign intermediary, foreign partnership, or U. Free filing state taxes S. Free filing state taxes branch of certain foreign banks and insurance companies. Free filing state taxes You may be a withholding agent even if there is no requirement to withhold from a payment or even if another person has withheld the required amount from the payment. Free filing state taxes Although several persons may be withholding agents for a single payment, the full tax is required to be withheld only once. Free filing state taxes In most cases, the U. Free filing state taxes S. Free filing state taxes person who pays an amount subject to NRA withholding is the person responsible for withholding. Free filing state taxes However, other persons may be required to withhold. Free filing state taxes For example, a payment made by a flow-through entity or nonqualified intermediary that knows, or has reason to know, that the full amount of NRA withholding was not done by the person from which it receives a payment is required to do the appropriate withholding since it also falls within the definition of a withholding agent. Free filing state taxes In addition, withholding must be done by any qualified intermediary, withholding foreign partnership, or withholding foreign trust in accordance with the terms of its withholding agreement, discussed later. Free filing state taxes Liability for tax. Free filing state taxes   As a withholding agent, you are personally liable for any tax required to be withheld. Free filing state taxes This liability is independent of the tax liability of the foreign person to whom the payment is made. Free filing state taxes If you fail to withhold and the foreign payee fails to satisfy its U. Free filing state taxes S. Free filing state taxes tax liability, then both you and the foreign person are liable for tax, as well as interest and any applicable penalties. Free filing state taxes   The applicable tax will be collected only once. Free filing state taxes If the foreign person satisfies its U. Free filing state taxes S. Free filing state taxes tax liability, you are not liable for the tax but remain liable for any interest and penalties for failure to withhold. Free filing state taxes Determination of amount to withhold. Free filing state taxes   You must withhold on the gross amount subject to NRA withholding. Free filing state taxes You cannot reduce the gross amount by any deductions. Free filing state taxes However, see Scholarships and Fellowship Grants and Pay for Personal Services Performed , later, for when a deduction for a personal exemption may be allowed. Free filing state taxes   If the determination of the source of the income or the amount subject to tax depends on facts that are not known at the time of payment, you must withhold an amount sufficient to ensure that at least 30% of the amount subsequently determined to be subject to withholding is withheld. Free filing state taxes In no case, however, should you withhold more than 30% of the total amount paid. Free filing state taxes Or, you may make a reasonable estimate of the amount from U. Free filing state taxes S. Free filing state taxes sources and put a corresponding part of the amount due in escrow until the amount from U. Free filing state taxes S. Free filing state taxes sources can be determined, at which time withholding becomes due. Free filing state taxes When to withhold. Free filing state taxes   Withholding is required at the time you make a payment of an amount subject to withholding. Free filing state taxes A payment is made to a person if that person realizes income, whether or not there is an actual transfer of cash or other property. Free filing state taxes A payment is considered made to a person if it is paid for that person's benefit. Free filing state taxes For example, a payment made to a creditor of a person in satisfaction of that person's debt to the creditor is considered made to the person. Free filing state taxes A payment also is considered made to a person if it is made to that person's agent. Free filing state taxes   A U. Free filing state taxes S. Free filing state taxes partnership should withhold when any distributions that include amounts subject to withholding are made. Free filing state taxes However, if a foreign partner's distributive share of income subject to withholding is not actually distributed, the U. Free filing state taxes S. Free filing state taxes partnership must withhold on the foreign partner's distributive share of the income on the earlier of the date that a Schedule K-1 (Form 1065) is provided or mailed to the partner or the due date for furnishing that schedule. Free filing state taxes If the distributable amount consists of effectively connected income, see Partnership Withholding on Effectively Connected Income , later. Free filing state taxes A U. Free filing state taxes S. Free filing state taxes trust is required to withhold on the amount includible in the gross income of a foreign beneficiary to the extent the trust's distributable net income consists of an amount subject to withholding. Free filing state taxes To the extent a U. Free filing state taxes S. Free filing state taxes trust is required to distribute an amount subject to withholding but does not actually distribute the amount, it must withhold on the foreign beneficiary's allocable share at the time the income is required to be reported on Form 1042-S. Free filing state taxes Withholding and Reporting Obligations You are required to report payments subject to NRA withholding on Form 1042-S and to file a tax return on Form 1042. Free filing state taxes (See Returns Required , later. Free filing state taxes ) An exception from reporting may apply to individuals who are not required to withhold from a payment and who do not make the payment in the course of their trade or business. Free filing state taxes Form 1099 reporting and backup withholding. Free filing state taxes    You also may be responsible as a payer for reporting on Form 1099 payments made to a U. Free filing state taxes S. Free filing state taxes person. Free filing state taxes You must withhold 28% (backup withholding rate) from a reportable payment made to a U. Free filing state taxes S. Free filing state taxes person that is subject to Form 1099 reporting if any of the following apply. Free filing state taxes The U. Free filing state taxes S. Free filing state taxes person has not provided its taxpayer identification number (TIN) in the manner required. Free filing state taxes The IRS notifies you that the TIN furnished by the payee is incorrect. Free filing state taxes There has been a notified payee underreporting. Free filing state taxes There has been a payee certification failure. Free filing state taxes In most cases, a TIN must be provided by a U. Free filing state taxes S. Free filing state taxes non-exempt recipient on Form W-9, Request for Taxpayer Identification Number and Certification. Free filing state taxes A payer files a tax return on Form 945, Annual Return of Withheld Federal Income Tax, for backup withholding. Free filing state taxes You may be required to file Form 1099 and, if appropriate, backup withhold, even if you do not make the payments directly to that U. Free filing state taxes S. Free filing state taxes person. Free filing state taxes For example, you are required to report income paid to a foreign intermediary or flow-through entity that collects for a U. Free filing state taxes S. Free filing state taxes person subject to Form 1099 reporting. Free filing state taxes See Identifying the Payee , later, for more information. Free filing state taxes Also see Section S. Free filing state taxes Special Rules for Reporting Payments Made Through Foreign Intermediaries and Foreign Flow-Through Entities on Form 1099 in the General Instructions for Certain Information Returns. Free filing state taxes Foreign persons who provide Form W-8BEN, Form W-8ECI, or Form W-8EXP (or applicable documentary evidence) are exempt from backup withholding and Form 1099 reporting. Free filing state taxes Wages paid to employees. Free filing state taxes   If you are the employer of a nonresident alien, you generally must withhold taxes at graduated rates. Free filing state taxes See Pay for Personal Services Performed , later. Free filing state taxes Effectively connected income by partnerships. Free filing state taxes   A withholding agent that is a partnership (whether U. Free filing state taxes S. Free filing state taxes or foreign) is also responsible for withholding on its income effectively connected with a U. Free filing state taxes S. Free filing state taxes trade or business that is allocable to foreign partners. Free filing state taxes See Partnership Withholding on Effectively Connected Income , later, for more information. Free filing state taxes U. Free filing state taxes S. Free filing state taxes real property interest. Free filing state taxes   A withholding agent also may be responsible for withholding if a foreign person transfers a U. Free filing state taxes S. Free filing state taxes real property interest to the agent, or if it is a corporation, partnership, trust, or estate that distributes a U. Free filing state taxes S. Free filing state taxes real property interest to a shareholder, partner, or beneficiary that is a foreign person. Free filing state taxes See U. Free filing state taxes S. Free filing state taxes Real Property Interest , later. Free filing state taxes Persons Subject to NRA Withholding NRA withholding applies only to payments made to a payee that is a foreign person. Free filing state taxes It does not apply to payments made to U. Free filing state taxes S. Free filing state taxes persons. Free filing state taxes Usually, you determine the payee's status as a U. Free filing state taxes S. Free filing state taxes or foreign person based on the documentation that person provides. Free filing state taxes See Documentation , later. Free filing state taxes However, if you have received no documentation or you cannot reliably associate all or a part of a payment with documentation, then you must apply certain presumption rules, discussed later. Free filing state taxes Identifying the Payee In most cases, the payee is the person to whom you make the payment, regardless of whether that person is the beneficial owner of the income. Free filing state taxes However, there are situations in which the payee is a person other than the one to whom you actually make a payment. Free filing state taxes U. Free filing state taxes S. Free filing state taxes agent of foreign person. Free filing state taxes   If you make a payment to a U. Free filing state taxes S. Free filing state taxes person and you have actual knowledge that the U. Free filing state taxes S. Free filing state taxes person is receiving the payment as an agent of a foreign person, you must treat the payment as made to the foreign person. Free filing state taxes However, if the U. Free filing state taxes S. Free filing state taxes person is a financial institution, you may treat the institution as the payee provided you have no reason to believe that the institution will not comply with its own obligation to withhold. Free filing state taxes   If the payment is not subject to NRA withholding (for example, gross proceeds from the sales of securities), you must treat the payment as made to a U. Free filing state taxes S. Free filing state taxes person and not as a payment to a foreign person. Free filing state taxes You may be required to report the payment on Form 1099 and, if applicable, backup withhold. Free filing state taxes Disregarded entities. Free filing state taxes   A business entity that is not a corporation and that has a single owner may be disregarded as an entity separate from its owner (a disregarded entity) for federal tax purposes. Free filing state taxes The payee of a payment made to a disregarded entity is the owner of the entity. Free filing state taxes   If the owner of the entity is a foreign person, you must apply NRA withholding unless you can treat the foreign owner as a beneficial owner entitled to a reduced rate of withholding. Free filing state taxes   If the owner is a U. Free filing state taxes S. Free filing state taxes person, you do not apply NRA withholding. Free filing state taxes However, you may be required to report the payment on Form 1099 and, if applicable, backup withhold. Free filing state taxes You may assume that a foreign entity is not a disregarded entity unless you can reliably associate the payment with documentation provided by the owner or you have actual knowledge or reason to know that the foreign entity is a disregarded entity. Free filing state taxes Flow-Through Entities The payees of payments (other than income effectively connected with a U. Free filing state taxes S. Free filing state taxes trade or business) made to a foreign flow-through entity are the owners or beneficiaries of the flow-through entity. Free filing state taxes This rule applies for purposes of NRA withholding and for Form 1099 reporting and backup withholding. Free filing state taxes Income that is, or is deemed to be, effectively connected with the conduct of a U. Free filing state taxes S. Free filing state taxes trade or business of a flow-through entity is treated as paid to the entity. Free filing state taxes All of the following are flow-through entities. Free filing state taxes A foreign partnership (other than a withholding foreign partnership). Free filing state taxes A foreign simple or foreign grantor trust (other than a withholding foreign trust). Free filing state taxes A fiscally transparent entity receiving income for which treaty benefits are claimed. Free filing state taxes See Fiscally transparent entity , later. Free filing state taxes In most cases, you treat a payee as a flow-through entity if it provides you with a Form W-8IMY (see Documentation , later) on which it claims such status. Free filing state taxes You also may be required to treat the entity as a flow-through entity under the presumption rules, discussed later. Free filing state taxes You must determine whether the owners or beneficiaries of a flow-through entity are U. Free filing state taxes S. Free filing state taxes or foreign persons, how much of the payment relates to each owner or beneficiary, and, if the owner or beneficiary is foreign, whether a reduced rate of NRA withholding applies. Free filing state taxes You make these determinations based on the documentation and other information (contained in a withholding statement) that is associated with the flow-through entity's Form W-8IMY. Free filing state taxes If you do not have all of the information that is required to reliably associate a payment with a specific payee, you must apply the presumption rules. Free filing state taxes See Documentation and Presumption Rules , later. Free filing state taxes Withholding foreign partnerships and withholding foreign trusts are not flow-through entities. Free filing state taxes Foreign partnerships. Free filing state taxes    A foreign partnership is any partnership that is not organized under the laws of any state of the United States or the District of Columbia or any partnership that is treated as foreign under the income tax regulations. Free filing state taxes If a foreign partnership is not a withholding foreign partnership, the payees of income are the partners of the partnership, provided the partners are not themselves a flow-through entity or a foreign intermediary. Free filing state taxes However, the payee is the partnership itself if the partnership is claiming treaty benefits on the basis that it is not fiscally transparent and that it meets all the other requirements for claiming treaty benefits. Free filing state taxes If a partner is a foreign flow-through entity or a foreign intermediary, you apply the payee determination rules to that partner to determine the payees. Free filing state taxes Example 1. Free filing state taxes A nonwithholding foreign partnership has three partners: a nonresident alien individual; a foreign corporation; and a U. Free filing state taxes S. Free filing state taxes citizen. Free filing state taxes You make a payment of U. Free filing state taxes S. Free filing state taxes source interest to the partnership. Free filing state taxes It gives you a Form W-8IMY with which it associates Form W-8BEN from the nonresident alien; Form W-8BEN from the foreign corporation; and Form W-9 from the U. Free filing state taxes S. Free filing state taxes citizen. Free filing state taxes The partnership also gives you a complete withholding statement that enables you to associate a part of the interest payment to each partner. Free filing state taxes You must treat all three partners as the payees of the interest payment as if the payment were made directly to them. Free filing state taxes Report the payment to the nonresident alien and the foreign corporation on Forms 1042-S. Free filing state taxes Report the payment to the U. Free filing state taxes S. Free filing state taxes citizen on Form 1099-INT. Free filing state taxes Example 2. Free filing state taxes A nonwithholding foreign partnership has two partners: a foreign corporation and a nonwithholding foreign partnership. Free filing state taxes The second partnership has two partners, both nonresident alien individuals. Free filing state taxes You make a payment of U. Free filing state taxes S. Free filing state taxes source interest to the first partnership. Free filing state taxes It gives you a valid Form W-8IMY with which it associates a Form W-8BEN from the foreign corporation and a Form W-8IMY from the second partnership. Free filing state taxes In addition, Forms W-8BEN from the partners are associated with the Form W-8IMY from the second partnership. Free filing state taxes The Forms W-8IMY from the partnerships have complete withholding statements associated with them. Free filing state taxes Because you can reliably associate a part of the interest payment with the Form W-8BEN provided by the foreign corporation and the Forms W-8BEN provided by the nonresident alien individual partners as a result of the withholding statements, you must treat them as the payees of the interest. Free filing state taxes Example 3. Free filing state taxes You make a payment of U. Free filing state taxes S. Free filing state taxes source dividends to a withholding foreign partnership. Free filing state taxes The partnership has two partners, both foreign corporations. Free filing state taxes You can reliably associate the payment with a valid Form W-8IMY from the partnership on which it represents that it is a withholding foreign partnership. Free filing state taxes You must treat the partnership as the payee of the dividends. Free filing state taxes Foreign simple and grantor trust. Free filing state taxes   A trust is foreign unless it meets both of the following tests. Free filing state taxes A court within the United States is able to exercise primary supervision over the administration of the trust. Free filing state taxes One or more U. Free filing state taxes S. Free filing state taxes persons have the authority to control all substantial decisions of the trust. Free filing state taxes   In most cases, a foreign simple trust is a foreign trust that is required to distribute all of its income annually. Free filing state taxes A foreign grantor trust is a foreign trust that is treated as a grantor trust under sections 671 through 679 of the Code. Free filing state taxes   The payees of a payment made to a foreign simple trust are the beneficiaries of the trust. Free filing state taxes The payees of a payment made to a foreign grantor trust are the owners of the trust. Free filing state taxes However, the payee is the foreign simple or grantor trust itself if the trust is claiming treaty benefits on the basis that it is not fiscally transparent and that it meets all the other requirements for claiming treaty benefits. Free filing state taxes If the beneficiaries or owners are themselves flow-through entities or foreign intermediaries, you apply the payee determination rules to that beneficiary or owner to determine the payees. Free filing state taxes Example. Free filing state taxes A foreign simple trust has three beneficiaries: two nonresident alien individuals and a U. Free filing state taxes S. Free filing state taxes citizen. Free filing state taxes You make a payment of interest to the foreign trust. Free filing state taxes It gives you a Form W-8IMY with which it associates Forms W-8BEN from the nonresident aliens and a Form W-9 from the U. Free filing state taxes S. Free filing state taxes citizen. Free filing state taxes The trust also gives you a complete withholding statement that enables you to associate a part of the interest payment with the forms provided by each beneficiary. Free filing state taxes You must treat all three beneficiaries as the payees of the interest payment as if the payment were made directly to them. Free filing state taxes Report the payment to the nonresident aliens on Forms 1042-S. Free filing state taxes Report the payment to the U. Free filing state taxes S. Free filing state taxes citizen on Form 1099-INT. Free filing state taxes Fiscally transparent entity. Free filing state taxes   If a reduced rate of withholding under an income tax treaty is claimed, a flow-through entity includes any entity in which the interest holder must treat the entity as fiscally transparent. Free filing state taxes The determination of whether an entity is fiscally transparent is made on an item of income basis (that is, the determination is made separately for interest, dividends, royalties, etc. Free filing state taxes ). Free filing state taxes The interest holder in an entity makes the determination by applying the laws of the jurisdiction where the interest holder is organized, incorporated, or otherwise considered a resident. Free filing state taxes An entity is considered to be fiscally transparent for the income to the extent the laws of that jurisdiction require the interest holder to separately take into account on a current basis the interest holder's share of the income, whether or not distributed to the interest holder, and the character and source of the income to the interest holder are determined as if the income was realized directly from the source that paid it to the entity. Free filing state taxes Subject to the standards of knowledge rules discussed later, you generally make the determination that an entity is fiscally transparent based on a Form W-8IMY provided by the entity. Free filing state taxes   The payees of a payment made to a fiscally transparent entity are the interest holders of the entity. Free filing state taxes Example. Free filing state taxes Entity A is a business organization organized under the laws of country X that has an income tax treaty in force with the United States. Free filing state taxes A has two interest holders, B and C. Free filing state taxes B is a corporation organized under the laws of country Y. Free filing state taxes C is a corporation organized under the laws of country Z. Free filing state taxes Both countries Y and Z have an income tax treaty in force with the United States. Free filing state taxes A receives royalty income from U. Free filing state taxes S. Free filing state taxes sources that is not effectively connected with the conduct of a trade or business in the United States. Free filing state taxes For U. Free filing state taxes S. Free filing state taxes income tax purposes, A is treated as a partnership. Free filing state taxes Country X treats A as a partnership and requires the interest holders in A to separately take into account on a current basis their respective shares of the income paid to A even if the income is not distributed. Free filing state taxes The laws of country X provide that the character and source of the income to A's interest holders are determined as if the income was realized directly from the source that paid it to A. Free filing state taxes Accordingly, A is fiscally transparent in its jurisdiction, country X. Free filing state taxes B and C are not fiscally transparent under the laws of their respective countries of incorporation. Free filing state taxes Country Y requires B to separately take into account on a current basis B's share of the income paid to A, and the character and source of the income to B is determined as if the income was realized directly from the source that paid it to A. Free filing state taxes Accordingly, A is fiscally transparent for that income under the laws of country Y, and B is treated as deriving its share of the U. Free filing state taxes S. Free filing state taxes source royalty income for purposes of the U. Free filing state taxes S. Free filing state taxes -Y income tax treaty. Free filing state taxes Country Z, on the other hand, treats A as a corporation and does not require C to take into account its share of A's income on a current basis whether or not distributed. Free filing state taxes Therefore, A is not treated as fiscally transparent under the laws of country Z. Free filing state taxes Accordingly, C is not treated as deriving its share of the U. Free filing state taxes S. Free filing state taxes source royalty income for purposes of the U. Free filing state taxes S. Free filing state taxes -Z income tax treaty. Free filing state taxes Foreign Intermediaries In most cases, if you make payments to a foreign intermediary, the payees are the persons for whom the foreign intermediary collects the payment, such as account holders or customers, not the intermediary itself. Free filing state taxes This rule applies for purposes of NRA withholding and for Form 1099 reporting and backup withholding. Free filing state taxes You may, however, treat a qualified intermediary that has assumed primary withholding responsibility for a payment as the payee, and you are not required to withhold. Free filing state taxes An intermediary is a custodian, broker, nominee, or any other person that acts as an agent for another person. Free filing state taxes A foreign intermediary is either a qualified intermediary or a nonqualified intermediary. Free filing state taxes In most cases, you determine whether an entity is a qualified intermediary or a nonqualified intermediary based on the representations the intermediary makes on Form W-8IMY. Free filing state taxes You must determine whether the customers or account holders of a foreign intermediary are U. Free filing state taxes S. Free filing state taxes or foreign persons and, if the account holder or customer is foreign, whether a reduced rate of NRA withholding applies. Free filing state taxes You make these determinations based on the foreign intermediary's Form W-8IMY and associated information and documentation. Free filing state taxes If you do not have all of the information or documentation that is required to reliably associate a payment with a payee, you must apply the presumption rules. Free filing state taxes See Documentation and Presumption Rules , later. Free filing state taxes Nonqualified intermediary. Free filing state taxes   A nonqualified intermediary (NQI) is any intermediary that is a foreign person and that is not a qualified intermediary. Free filing state taxes The payees of a payment made to an NQI are the customers or account holders on whose behalf the NQI is acting. Free filing state taxes Example. Free filing state taxes You make a payment of interest to a foreign bank that is a nonqualified intermediary. Free filing state taxes The bank gives you a Form W-8IMY and the Forms W-8BEN of two foreign persons, and a Form W-9 from a U. Free filing state taxes S. Free filing state taxes person for whom the bank is collecting the payments. Free filing state taxes The bank also associates with its Form W-8IMY a withholding statement on which it allocates the interest payment to each account holder and provides all other information required to be on the withholding statement. Free filing state taxes The account holders are the payees of the interest payment. Free filing state taxes You should report the part of the interest paid to the two foreign persons on Forms 1042-S and the part paid to the U. Free filing state taxes S. Free filing state taxes person on Form 1099-INT. Free filing state taxes Qualified intermediary. Free filing state taxes   A qualified intermediary (QI) is any foreign intermediary (or foreign branch of a U. Free filing state taxes S. Free filing state taxes intermediary) that has entered into a qualified intermediary withholding agreement (discussed later) with the IRS. Free filing state taxes You may treat a QI as a payee to the extent the QI assumes primary withholding responsibility or primary Form 1099 reporting and backup withholding responsibility for a payment. Free filing state taxes In this situation, the QI is required to withhold the tax. Free filing state taxes You can determine whether a QI has assumed responsibility from the Form W-8IMY provided by the QI. Free filing state taxes   A payment to a QI to the extent it does not assume primary NRA withholding responsibility is considered made to the person on whose behalf the QI acts. Free filing state taxes If a QI does not assume Form 1099 reporting and backup withholding responsibility, you must report on Form 1099 and, if applicable, backup withhold as if you were making the payment directly to the U. Free filing state taxes S. Free filing state taxes person. Free filing state taxes Branches of financial institutions. Free filing state taxes   Branches of financial institutions are not permitted to operate as QIs if they are located outside of countries having approved “know-your-customer” (KYC) rules. Free filing state taxes The countries with approved KYC rules are listed on IRS. Free filing state taxes gov. Free filing state taxes QI withholding agreement. Free filing state taxes   Foreign financial institutions and foreign branches of U. Free filing state taxes S. Free filing state taxes financial institutions can enter into an agreement with the IRS to be a qualified intermediary. Free filing state taxes   A QI is entitled to certain simplified withholding and reporting rules. Free filing state taxes In general, there are three major areas whereby intermediaries with QI status are afforded such simplified treatment. Free filing state taxes   To apply for QI status, complete Form 14345, Qualified Intermediary Application, and Form SS-4, Application for Employer Identification Number. Free filing state taxes These forms, and the procedures required to obtain a QI withholding agreement are available at www. Free filing state taxes irs. Free filing state taxes gov/Businesses/Corporations/Qualified-Intermediaries-(QI). Free filing state taxes Documentation. Free filing state taxes   A QI is not required to forward documentation obtained from foreign account holders to the U. Free filing state taxes S. Free filing state taxes withholding agent from whom the QI receives a payment of U. Free filing state taxes S. Free filing state taxes source income. Free filing state taxes The QI maintains such documentation at its location and provides the U. Free filing state taxes S. Free filing state taxes withholding agent with withholding rate pools. Free filing state taxes A withholding rate pool is a payment of a single type of income that is subject to a single rate of withholding. Free filing state taxes   A QI is required to provide the U. Free filing state taxes S. Free filing state taxes withholding agent with information regarding U. Free filing state taxes S. Free filing state taxes persons subject to Form 1099 information reporting unless the QI assumes the primary obligation to do Form 1099 reporting and backup withholding. Free filing state taxes   If a QI obtains documentary evidence under the “know-your-customer” rules that apply to the QI under local law, and the documentary evidence is of a type specified in an attachment to the QI agreement, the documentary evidence remains valid until there is a change in circumstances or the QI knows the information is incorrect. Free filing state taxes This indefinite validity period rule does not apply to Forms W-8 or to documentary evidence that is not of the type specified in the attachment to the agreement. Free filing state taxes Form 1042-S reporting. Free filing state taxes   A QI is permitted to report payments made to its direct foreign account holders on a pooled basis rather than reporting payments to each direct account holder specifically. Free filing state taxes Pooled basis reporting is not available for payments to certain account holders, such as a nonqualified intermediary or a flow-through entity (discussed earlier). Free filing state taxes Collective refund procedures. Free filing state taxes   A QI may seek a refund on behalf of its direct account holders. Free filing state taxes The direct account holders, therefore, are not required to file returns with the IRS to obtain refunds, but rather may obtain them from the QI. Free filing state taxes U. Free filing state taxes S. Free filing state taxes branches of foreign banks and foreign insurance companies. Free filing state taxes   Special rules apply to a U. Free filing state taxes S. Free filing state taxes branch of a foreign bank subject to Federal Reserve Board supervision or a foreign insurance company subject to state regulatory supervision. Free filing state taxes If you agree to treat the branch as a U. Free filing state taxes S. Free filing state taxes person, you may treat the branch as a U. Free filing state taxes S. Free filing state taxes payee for a payment subject to NRA withholding provided you receive a Form W-8IMY from the U. Free filing state taxes S. Free filing state taxes branch on which the agreement is evidenced. Free filing state taxes If you treat the branch as a U. Free filing state taxes S. Free filing state taxes payee, you are not required to withhold. Free filing state taxes Even though you agree to treat the branch as a U. Free filing state taxes S. Free filing state taxes person, you must report the payment on Form 1042-S. Free filing state taxes   A financial institution organized in a U. Free filing state taxes S. Free filing state taxes possession is treated as a U. Free filing state taxes S. Free filing state taxes branch. Free filing state taxes The special rules discussed in this section apply to a possessions financial institution. Free filing state taxes   If you are paying a U. Free filing state taxes S. Free filing state taxes branch an amount that is not subject to NRA withholding, treat the payment as made to a foreign person, irrespective of any agreement to treat the branch as a U. Free filing state taxes S. Free filing state taxes person for amounts subject to NRA withholding. Free filing state taxes Consequently, amounts not subject to NRA withholding that are paid to a U. Free filing state taxes S. Free filing state taxes branch are not subject to Form 1099 reporting or backup withholding. Free filing state taxes   Alternatively, a U. Free filing state taxes S. Free filing state taxes branch may provide you with a Form W-8IMY with which it associates the documentation of the persons on whose behalf it acts. Free filing state taxes In this situation, the payees are the persons on whose behalf the branch acts provided you can reliably associate the payment with valid documentation from those persons. Free filing state taxes See Nonqualified Intermediaries under  Documentation, later. Free filing state taxes   If the U. Free filing state taxes S. Free filing state taxes branch does not provide you with a Form W-8IMY, then you should treat a payment subject to NRA withholding as made to the foreign person of which the branch is a part and the income as effectively connected with the conduct of a trade or business in the United States. Free filing state taxes Withholding foreign partnership and foreign trust. Free filing state taxes   A withholding foreign partnership (WP) is any foreign partnership that has entered into a WP withholding agreement with the IRS and is acting in that capacity. Free filing state taxes A withholding foreign trust (WT) is a foreign simple or grantor trust that has entered into a WT withholding agreement with the IRS and is acting in that capacity. Free filing state taxes   A WP or WT may act in that capacity only for payments of amounts subject to NRA withholding that are distributed to, or included in the distributive share of, its direct partners, beneficiaries, or owners. Free filing state taxes A WP or WT acting in that capacity must assume NRA withholding responsibility for these amounts. Free filing state taxes You may treat a WP or WT as a payee if it has provided you with documentation (discussed later) that represents that it is acting as a WP or WT for such amounts. Free filing state taxes WP and WT withholding agreements. Free filing state taxes   The WP and WT withholding agreements and the application procedures for the agreements are in Revenue Procedure 2003-64. Free filing state taxes Also see the following items. Free filing state taxes Revenue Procedure 2004-21. Free filing state taxes Revenue Procedure 2005-77. Free filing state taxes Employer identification number (EIN). Free filing state taxes   A completed Form SS-4 must be submitted with the application for being a WP or WT. Free filing state taxes The WP or WT will be assigned a WP-EIN or WT-EIN to be used only when acting in that capacity. Free filing state taxes Documentation. Free filing state taxes   A WP or WT must provide you with a Form W-8IMY that certifies that the WP or WT is acting in that capacity and a written statement identifying the amounts for which it is so acting. Free filing state taxes The statement is not required to contain withholding rate pool information or any information relating to the identity of a direct partner, beneficiary, or owner. Free filing state taxes The Form W-8IMY must contain the WP-EIN or WT-EIN. Free filing state taxes Foreign Persons A payee is subject to NRA withholding only if it is a foreign person. Free filing state taxes A foreign person includes a nonresident alien individual, foreign corporation, foreign partnership, foreign trust, foreign estate, and any other person that is not a U. Free filing state taxes S. Free filing state taxes person. Free filing state taxes It also includes a foreign branch of a U. Free filing state taxes S. Free filing state taxes financial institution if the foreign branch is a qualified intermediary. Free filing state taxes In most cases, the U. Free filing state taxes S. Free filing state taxes branch of a foreign corporation or partnership is treated as a foreign person. Free filing state taxes Nonresident alien. Free filing state taxes   A nonresident alien is an individual who is not a U. Free filing state taxes S. Free filing state taxes citizen or a resident alien. Free filing state taxes A resident of a foreign country under the residence article of an income tax treaty is a nonresident alien individual for purposes of withholding. Free filing state taxes Married to U. Free filing state taxes S. Free filing state taxes citizen or resident alien. Free filing state taxes   Nonresident alien individuals married to U. Free filing state taxes S. Free filing state taxes citizens or resident aliens may choose to be treated as resident aliens for certain income tax purposes. Free filing state taxes However, these individuals are still subject to the NRA withholding rules that apply to nonresident aliens for all income except wages. Free filing state taxes Wages paid to these individuals are subject to graduated withholding. Free filing state taxes See Wages Paid to Employees—Graduated Withholding . Free filing state taxes Resident alien. Free filing state taxes   A resident alien is an individual who is not a citizen or national of the United States and who meets either the green card test or the substantial presence test for the calendar year. Free filing state taxes Green card test. Free filing state taxes An alien is a resident alien if the individual was a lawful permanent resident of the United States at any time during the calendar year. Free filing state taxes This is known as the green card test because these aliens hold immigrant visas (also known as green cards). Free filing state taxes Substantial presence test. Free filing state taxes An alien is considered a resident alien if the individual meets the substantial presence test for the calendar year. Free filing state taxes Under this test, the individual must be physically present in the United States on at least: 31 days during the current calendar year, and 183 days during the current year and the 2 preceding years, counting all the days of physical presence in the current year, but only 1/3 the number of days of presence in the first preceding year, and only 1/6 the number of days in the second preceding year. Free filing state taxes   In most cases, the days the alien is in the United States as a teacher, student, or trainee on an “F,” “J,” “M,” or “Q” visa are not counted. Free filing state taxes This exception is for a limited period of time. Free filing state taxes   For more information on resident and nonresident status, the tests for residence, and the exceptions to them, see Publication 519. Free filing state taxes Note. Free filing state taxes   If your employee is late in notifying you that his or her status changed from nonresident alien to resident alien, you may have to make an adjustment to Form 941 if that employee was exempt from withholding of social security and Medicare taxes as a nonresident alien. Free filing state taxes For more information on making adjustments, see chapter 13 of Publication 15 (Circular E). Free filing state taxes Resident of a U. Free filing state taxes S. Free filing state taxes possession. Free filing state taxes   A bona fide resident of Puerto Rico, the U. Free filing state taxes S. Free filing state taxes Virgin Islands, Guam, the Commonwealth of the Northern Mariana Islands (CNMI), or American Samoa who is not a U. Free filing state taxes S. Free filing state taxes citizen or a U. Free filing state taxes S. Free filing state taxes national is treated as a nonresident alien for the withholding rules explained here. Free filing state taxes A bona fide resident of a possession is someone who: Meets the presence test, Does not have a tax home outside the possession, and Does not have a closer connection to the United States or to a foreign country than to the possession. Free filing state taxes   For more information, see Publication 570, Tax Guide for Individuals With Income From U. Free filing state taxes S. Free filing state taxes Possessions. Free filing state taxes Foreign corporations. Free filing state taxes   A foreign corporation is one that does not fit the definition of a domestic corporation. Free filing state taxes A domestic corporation is one that was created or organized in the United States or under the laws of the United States, any of its states, or the District of Columbia. Free filing state taxes Guam or Northern Mariana Islands corporations. Free filing state taxes   A corporation created or organized in, or under the laws of, Guam or the CNMI is not considered a foreign corporation for the purpose of withholding tax for the tax year if: At all times during the tax year less than 25% in value of the corporation's stock is owned, directly or indirectly, by foreign persons; and At least 20% of the corporation's gross income is derived from sources within Guam or the CNMI for the 3-year period ending with the close of the preceding tax year of the corporation (or the period the corporation has been in existence, if less). Free filing state taxes Note. Free filing state taxes   The provisions discussed below under U. Free filing state taxes S. Free filing state taxes Virgin Islands and American Samoa corporations will apply to Guam or CNMI corporations when an implementing agreement is in effect between the United States and that possession. Free filing state taxes U. Free filing state taxes S. Free filing state taxes Virgin Islands and American Samoa corporations. Free filing state taxes   A corporation created or organized in, or under the laws of, the U. Free filing state taxes S. Free filing state taxes Virgin Islands or American Samoa is not considered a foreign corporation for the purposes of withholding tax for the tax year if: At all times during the tax year less than 25% in value of the corporation's stock is owned, directly or indirectly, by foreign persons, At least 65% of the corporation's gross income is effectively connected with the conduct of a trade or business in the U. Free filing state taxes S. Free filing state taxes Virgin Islands, American Samoa, Guam, the CNMI, or the United States for the 3-year period ending with the close of the tax year of the corporation (or the period the corporation or any predecessor has been in existence, if less), and No substantial part of the income of the corporation is used, directly or indirectly, to satisfy obligations to a person who is not a bona fide resident of the U. Free filing state taxes S. Free filing state taxes Virgin Islands, American Samoa, Guam, the CNMI, or the United States. Free filing state taxes Foreign private foundations. Free filing state taxes   A private foundation that was created or organized under the laws of a foreign country is a foreign private foundation. Free filing state taxes Gross investment income from sources within the United States paid to a qualified foreign private foundation is subject to NRA withholding at a 4% rate (unless exempted by a treaty) rather than the ordinary statutory 30% rate. Free filing state taxes Other foreign organizations, associations, and charitable institutions. Free filing state taxes   An organization may be exempt from income tax under section 501(a) of the Internal Revenue Code even if it was formed under foreign law. Free filing state taxes In most cases, you do not have to withhold tax on payments of income to these foreign tax-exempt organizations unless the IRS has determined that they are foreign private foundations. Free filing state taxes   Payments to these organizations, however, must be reported on Form 1042-S, even though no tax is withheld. Free filing state taxes   You must withhold tax on the unrelated business income (as described in Publication 598, Tax on Unrelated Business Income of Exempt Organizations) of foreign tax-exempt organizations in the same way that you would withhold tax on similar income of nonexempt organizations. Free filing state taxes U. Free filing state taxes S. Free filing state taxes branches of foreign persons. Free filing state taxes   In most cases, a payment to a U. Free filing state taxes S. Free filing state taxes branch of a foreign person is a payment made to the foreign person. Free filing state taxes However, you may treat payments to U. Free filing state taxes S. Free filing state taxes branches of foreign banks and foreign insurance companies (discussed earlier) that are subject to U. Free filing state taxes S. Free filing state taxes regulatory supervision as payments made to a U. Free filing state taxes S. Free filing state taxes person, if you and the U. Free filing state taxes S. Free filing state taxes branch have agreed to do so, and if their agreement is evidenced by a withholding certificate, Form W-8IMY. Free filing state taxes For this purpose, a financial institution organized under the laws of a U. Free filing state taxes S. Free filing state taxes possession is treated as a U. Free filing state taxes S. Free filing state taxes branch. Free filing state taxes Documentation In most cases, you must withhold 30% from the gross amount paid to a foreign payee unless you can reliably associate the payment with valid documentation that establishes either of the following. Free filing state taxes The payee is a U. Free filing state taxes S. Free filing state taxes person. Free filing state taxes The payee is a foreign person that is the beneficial owner of the income and is entitled to a reduced rate of withholding. Free filing state taxes In most cases, you must get the documentation before you make the payment. Free filing state taxes The documentation is not valid if you know, or have reason to know, that it is unreliable or incorrect. Free filing state taxes See Standards of Knowledge , later. Free filing state taxes If you cannot reliably associate a payment with valid documentation, you must use the presumption rules discussed later. Free filing state taxes For example, if you do not have documentation or you cannot determine the part of a payment that is allocable to specific documentation, you must use the presumption rules. Free filing state taxes The specific types of documentation are discussed in this section. Free filing state taxes However, see Withholding on Specific Income , later, as well as the instructions to the particular forms. Free filing state taxes As the withholding agent, you also may want to see the Instructions for the Requester of Forms W-8BEN, W-8ECI, W-8EXP, and W-8IMY. Free filing state taxes Section 1446 withholding. Free filing state taxes   Under section 1446 of the Code, a partnership must withhold tax on its effectively connected income allocable to a foreign partner. Free filing state taxes In most cases, a partnership determines if a partner is a foreign partner and the partner's tax classification based on the withholding certificate provided by the partner. Free filing state taxes This is the same documentation that is filed for NRA withholding, but may require additional information as discussed under each of the forms in this section. Free filing state taxes Joint owners. Free filing state taxes    If you make a payment to joint owners, you need to get documentation from each owner. Free filing state taxes Form W-9. Free filing state taxes   In most cases, you can treat the payee as a U. Free filing state taxes S. Free filing state taxes person if the payee gives you a Form W-9. Free filing state taxes The Form W-9 can be used only by a U. Free filing state taxes S. Free filing state taxes person and must contain the payee's taxpayer identification number (TIN). Free filing state taxes If there is more than one owner, you may treat the total amount as paid to a U. Free filing state taxes S. Free filing state taxes person if any one of the owners gives you a Form W-9. Free filing state taxes See U. Free filing state taxes S. Free filing state taxes Taxpayer Identification Numbers , later. Free filing state taxes U. Free filing state taxes S. Free filing state taxes persons are not subject to NRA withholding, but may be subject to Form 1099 reporting and backup withholding. Free filing state taxes Form W-8. Free filing state taxes   In most cases, a foreign payee of the income should give you a form in the Form W-8 series. Free filing state taxes Until further notice, you can rely upon Forms W-8 that contain a P. Free filing state taxes O. Free filing state taxes box as a permanent residence address provided you do not know, or have reason to know, that the person providing the form is a U. Free filing state taxes S. Free filing state taxes person and that a street address is available. Free filing state taxes You may rely on Forms W-8 for which there is a U. Free filing state taxes S. Free filing state taxes mailing address provided you received the form prior to December 31, 2001. Free filing state taxes   If certain requirements are met, the foreign person can give you documentary evidence, rather than a Form W-8. Free filing state taxes You can rely on documentary evidence in lieu of a Form W-8 for a payment made in a U. Free filing state taxes S. Free filing state taxes possession. Free filing state taxes Other documentation. Free filing state taxes   Other documentation may be required to claim an exemption from, or a reduced rate of, withholding on pay for personal services. Free filing state taxes The nonresident alien individual may have to give you a Form W-4 or a Form 8233, Exemption From Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual. Free filing state taxes These forms are discussed in Pay for Personal Services Performed under Withholding on Specific Income. Free filing state taxes Beneficial Owners If all the appropriate requirements have been established on a Form W-8BEN, W-8ECI, W-8EXP or, if applicable, on documentary evidence, you may treat the payee as a foreign beneficial owner. Free filing state taxes Form W-8BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding. Free filing state taxes   This form is used by a foreign person to: Establish foreign status; Claim that such person is the beneficial owner of the income for which the form is being furnished or a partner in a partnership subject to section 1446 withholding; and If applicable, claim a reduced rate of, or exemption from, withholding under an income tax treaty. Free filing state taxes   Form W-8BEN also may be used to claim that the foreign person is exempt from Form 1099 reporting and backup withholding for income that is not subject to NRA withholding. Free filing state taxes For example, a foreign person may provide a Form W-8BEN to a broker to establish that the gross proceeds from the sale of securities are not subject to Form 1099 reporting or backup withholding. Free filing state taxes Claiming treaty benefits. Free filing state taxes   You may apply a reduced rate of withholding to a foreign person that provides a Form W-8BEN claiming a reduced rate of withholding under an income tax treaty only if the person provides a U. Free filing state taxes S. Free filing state taxes TIN and certifies that: It is a resident of a treaty country; It is the beneficial owner of the income; If it is an entity, it derives the income within the meaning of section 894 of the Internal Revenue Code (it is not fiscally transparent); and It meets any limitation on benefits provision contained in the treaty, if applicable. Free filing state taxes   If the foreign beneficial owner claiming a treaty benefit is related to you, the foreign beneficial owner also must certify on Form W-8BEN that it will file Form 8833, Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b), if the amount subject to NRA withholding received during a calendar year exceeds, in the aggregate, $500,000. Free filing state taxes   An entity derives income for which it is claiming treaty benefits only if the entity is not treated as fiscally transparent for that income. Free filing state taxes See Fiscally transparent entity discussed earlier under Flow-Through Entities. Free filing state taxes   Limitations on benefits provisions generally prohibit third country residents from obtaining treaty benefits. Free filing state taxes For example, a foreign corporation may not be entitled to a reduced rate of withholding unless a minimum percentage of its owners are citizens or residents of the United States or the treaty country. Free filing state taxes   The exemptions from, or reduced rates of, U. Free filing state taxes S. Free filing state taxes tax vary under each treaty. Free filing state taxes You must check the provisions of the tax treaty that apply. Free filing state taxes Tables at the end of this publication show the countries with which the United States has income tax treaties and the rates of withholding that apply in cases where all conditions of the particular treaty articles are satisfied. Free filing state taxes   If you know, or have reason to know, that an owner of income is not eligible for treaty benefits claimed, you must not apply the treaty rate. Free filing state taxes You are not, however, responsible for misstatements on a Form W-8, documentary evidence, or statements accompanying documentary evidence for which you did not have actual knowledge, or reason to know, that the statements were incorrect. Free filing state taxes Exceptions to TIN requirement. Free filing state taxes   A foreign person does not have to provide a TIN to claim a reduced rate of withholding under a treaty if the requirements for the following exceptions are met. Free filing state taxes Income from marketable securities (discussed next). Free filing state taxes Unexpected payments to an individual (discussed under U. Free filing state taxes S. Free filing state taxes Taxpayer Identification Numbers ). Free filing state taxes Marketable securities. Free filing state taxes   A Form W-8BEN provided to claim treaty benefits does not need a U. Free filing state taxes S. Free filing state taxes TIN if the foreign beneficial owner is claiming the benefits on income from marketable securities. Free filing state taxes For this purpose, income from a marketable security consists of the following items. Free filing state taxes Dividends and interest from stocks and debt obligations that are actively traded. Free filing state taxes Dividends from any redeemable security issued by an investment company registered under the Investment Company Act of 1940 (mutual fund). Free filing state taxes Dividends, interest, or royalties from units of beneficial interest in a unit investment trust that are (or were upon issuance) publicly offered and are registered with the SEC under the Securities Act of 1933. Free filing state taxes Income related to loans of any of the above securities. Free filing state taxes Offshore accounts. Free filing state taxes   If a payment is made outside the United States to an offshore account, a payee may give you documentary evidence, rather than Form W-8BEN. Free filing state taxes   In most cases, a payment is made outside the United States if you complete the acts necessary to effect the payment outside the United States. Free filing state taxes However, an amount paid by a bank or other financial institution on a deposit or account usually will be treated as paid at the branch or office where the amount is credited. Free filing state taxes An offshore account is an account maintained at an office or branch of a U. Free filing state taxes S. Free filing state taxes or foreign bank or other financial institution at any location outside the United States. Free filing state taxes   You may rely on documentary evidence given to you by a nonqualified intermediary or a flow-through entity with its Form W-8IMY. Free filing state taxes This rule applies even though you make the payment to a nonqualified intermediary or flow-through entity in the United States. Free filing state taxes In most cases, the nonqualified intermediary or flow-through entity that gives you documentary evidence also will have to give you a withholding statement, discussed later. Free filing state taxes Documentary evidence. Free filing state taxes   You may apply a reduced rate of withholding to income from marketable securities (discussed earlier) paid outside the United States to an offshore account if the beneficial owner gives you documentary evidence in place of a Form W-8BEN. Free filing state taxes To claim treaty benefits, the documentary evidence must be one of the following: A certificate of residence that: Is issued by a tax official of the treaty country of which the foreign beneficial owner claims to be a resident, States that the person has filed its most recent income tax return as a resident of that country, and Is issued within 3 years prior to being presented to you. Free filing state taxes Documentation for an individual that: Includes the individual's name, address, and photograph, Is an official document issued by an authorized governmental body, and Is issued no more than 3 years prior to being presented to you. Free filing state taxes Documentation for an entity that: Includes the name of the entity, Includes the address of its principal office in the treaty country, and Is an official document issued by an authorized governmental body. Free filing state taxes In addition to the documentary evidence, a foreign beneficial owner that is an entity must provide a statement that it derives the income for which it claims treaty benefits and that it meets one or more of the conditions set forth in a limitation on benefits article, if any, (or similar provision) contained in the applicable treaty. Free filing state taxes Form W-8ECI, Certificate of Foreign Person's Claim That Income Is Effectively Connected With the Conduct of a Trade or Business in the United States. Free filing state taxes   This form is used by a foreign person to: Establish foreign status, Claim that such person is the beneficial owner of the income for which the form is being furnished, and Claim that the income is effectively connected with the conduct of a trade or business in the United States. Free filing state taxes (See Effectively Connected Income , later. Free filing state taxes )   Effectively connected income for which a valid Form W-8ECI has been provided is generally not subject to NRA withholding. Free filing state taxes   If a partner submits this form to a partnership, the income claimed to be effectively connected with the conduct of a U. Free filing state taxes S. Free filing state taxes trade or business is subject to withholding under section 1446. Free filing state taxes If the partner has made, or will make, an election under section 871(d) or 882(d), the partner must submit Form W-8ECI, and attach a copy of the election, or a statement of intent to elect, to the form. Free filing state taxes    If the partner's only effectively connected income is the income allocated from the partnership and the partner is not making the election under section 871(d) or 882(d), the partner should provide Form W-8BEN to the partnership. Free filing state taxes Form W-8EXP, Certificate of Foreign Government or Other Foreign Organization for United States Tax Withholding. Free filing state taxes   This form is used by a foreign government, international organization, foreign central bank of issue, foreign tax-exempt organization, foreign private foundation, or government of a U. Free filing state taxes S. Free filing state taxes possession to: Establish foreign status, Claim that such person is the beneficial owner of the income for which the form is being furnished, and Claim a reduced rate of, or an exemption from, withholding as such an entity. Free filing state taxes   If the government or organization is a partner in a partnership carrying on a trade or business in the United States, the effectively connected income allocable to the partner is subject to withholding under section 1446. Free filing state taxes   See Foreign Governments and Certain Other Foreign Organizations , later. Free filing state taxes Foreign Intermediaries and Foreign Flow-Through Entities Payments made to a foreign intermediary or foreign flow-through entity are treated as made to the payees on whose behalf the intermediary or entity acts. Free filing state taxes The Form W-8IMY provided by a foreign intermediary or flow-through entity must be accompanied by additional information for you to be able to reliably associate the payment with a payee. Free filing state taxes The additional information required depends on the type of intermediary or flow-through entity and the extent of the withholding responsibilities it assumes. Free filing state taxes Form W-8IMY, Certificate of Foreign Intermediary, Foreign Flow-Through Entity, or Certain U. Free filing state taxes S. Free filing state taxes Branches for United States Tax Withholding. Free filing state taxes   This form is used by foreign intermediaries and foreign flow-through entities, as well as certain U. Free filing state taxes S. Free filing state taxes branches, to: Represent that a foreign person is a qualified intermediary or nonqualified intermediary, Represent, if applicable, that the qualified intermediary is assuming primary NRA withholding responsibility and/or primary Form 1099 reporting and backup withholding responsibility, Represent that a foreign partnership or a foreign simple or grantor trust is a withholding foreign partnership or a withholding foreign trust, Represent that a foreign flow-through entity is a nonwithholding foreign partnership, or a nonwithholding foreign trust and that the income is not effectively connected with the conduct of a trade or business in the United States, Represent that the provider is a U. Free filing state taxes S. Free filing state taxes branch of a foreign bank or insurance company and either is agreeing to be treated as a U. Free filing state taxes S. Free filing state taxes person or is transmitting documentation of the persons on whose behalf it is acting, or Represent that, for purposes of section 1446, it is an upper-tier foreign partnership or a foreign grantor trust and that the form is being used to transmit the required documentation. Free filing state taxes For information on qualifying as an upper-tier foreign partnership, see Regulations section 1. Free filing state taxes 1446-5. Free filing state taxes Qualified Intermediaries In most cases, a QI is any foreign intermediary that has entered into a QI withholding agreement (discussed earlier) with the IRS. Free filing state taxes A foreign intermediary that has received a QI employer identification number (QI-EIN) may represent on Form W-8IMY that it is a QI before it receives a fully executed agreement. Free filing state taxes The intermediary can claim that it is a QI until the IRS revokes its QI-EIN. Free filing state taxes The IRS will revoke a QI-EIN if the QI agreement is not executed and returned to the IRS within a reasonable period of time after the agreement was sent to the intermediary for signature. Free filing state taxes Responsibilities. Free filing state taxes   Payments made to a QI that does not assume NRA withholding responsibility are treated as paid to its account holders and customers. Free filing state taxes However, a QI is not required to provide you with documentation it obtains from its foreign account holders and customers. Free filing state taxes Instead, it provides you with a withholding statement that contains withholding rate pool information. Free filing state taxes A withholding rate pool is a payment of a single type of income, determined in accordance with the categories of income reported on Form 1042-S that is subject to a single rate of withholding. Free filing state taxes A qualified intermediary is required to provide you with information regarding U. Free filing state taxes S. Free filing state taxes persons subject to Form 1099 reporting and to provide you withholding rate pool information separately for each such U. Free filing state taxes S. Free filing state taxes person unless it has assumed Form 1099 reporting and backup withholding responsibility. Free filing state taxes For the alternative procedure for providing rate pool information for U. Free filing state taxes S. Free filing state taxes non-exempt persons, see the Form W-8IMY instructions. Free filing state taxes   The withholding statement must: Designate those accounts for which it acts as a qualified intermediary, Designate those accounts for which it assumes primary NRA withholding responsibility and/or primary Form 1099 and backup withholding responsibility, and Provide sufficient information for you to allocate the payment to a withholding rate pool. Free filing state taxes   The extent to which you must have withholding rate pool information depends on the withholding and reporting obligations assumed by the QI. Free filing state taxes Primary responsibility not assumed. Free filing state taxes   If a QI does not assume primary NRA withholding responsibility or primary Form 1099 reporting and backup withholding responsibility for the payment, you can reliably associate the payment with valid documentation only to the extent you can reliably determine the part of the payment that relates to each withholding rate pool for foreign payees. Free filing state taxes Unless the alternative procedure applies, the qualified intermediary must provide you with a separate withholding rate pool for each U. Free filing state taxes S. Free filing state taxes person subject to Form 1099 reporting and/or backup withholding. Free filing state taxes The QI must provide a Form W-9 or, in the absence of the form, the name, address, and TIN, if available, for such person. Free filing state taxes Primary NRA withholding responsibility assumed. Free filing state taxes   If you make a payment to a QI that assumes primary NRA withholding responsibility (but not primary Form 1099 reporting and backup withholding responsibility), you can reliably associate the payment with valid documentation only to the extent you can reliably determine the part of the payment that relates to the withholding rate pool for which the QI assumes primary NRA withholding responsibility and the part of the payment attributable to withholding rate pools for each U. Free filing state taxes S. Free filing state taxes person, unless the alternative procedure applies, subject to Form 1099 reporting and/or backup withholding. Free filing state taxes The QI must provide a Form W-9 or, in the absence of the form, the name, address, and TIN, if available, for such person. Free filing state taxes Primary NRA and Form 1099 responsibility assumed. Free filing state taxes   If you make a payment to a QI that assumes both primary NRA withholding responsibility and primary Form 1099 reporting and backup withholding responsibility, you can reliably associate a payment with valid documentation provided that you receive a valid Form W-8IMY. Free filing state taxes It is not necessary to associate the payment with withholding rate pools. Free filing state taxes Example. Free filing state taxes You make a payment of dividends to a QI. Free filing state taxes It has five customers: two are foreign persons who have provided documentation entitling them to a 15% rate of withholding on dividends; two are foreign persons subject to a 30% rate of withholding on dividends; and one is a U. Free filing state taxes S. Free filing state taxes individual who provides it with a Form W-9. Free filing state taxes Each customer is entitled to 20% of the dividend payment. Free filing state taxes The QI does not assume any primary withholding responsibility. Free filing state taxes The QI gives you a Form W-8IMY with which it associates the Form W-9 and a withholding statement that allocates 40% of the dividend to a 15% withholding rate pool, 40% to a 30% withholding rate pool, and 20% to the U. Free filing state taxes S. Free filing state taxes individual. Free filing state taxes You should report on Forms 1042-S 40% of the payment as made to a 15% rate dividend pool and 40% of the payment as made to a 30% rate dividend pool. Free filing state taxes The part of the payment allocable to the U. Free filing state taxes S. Free filing state taxes individual (20%) is reportable on Form 1099-DIV. Free filing state taxes Smaller partnerships and trusts. Free filing state taxes   A QI may apply special rules to a smaller partnership or trust (Joint Account Provision) only if the partnership or trust meets the following conditions. Free filing state taxes It is a foreign partnership or foreign simple or grantor trust. Free filing state taxes It is a direct account holder of the QI. Free filing state taxes It does not have any partner, beneficiary, or owner that is a U. Free filing state taxes S. Free filing state taxes person or a pass- through partner, beneficiary, or owner. Free filing state taxes   For information on these rules, see section 4A. Free filing state taxes 01 of the QI agreement. Free filing state taxes This is found in Appendix 3 of Revenue Procedure 2003-64. Free filing state taxes Also see Revenue Procedure 2004-21. Free filing state taxes Related partnerships and trusts. Free filing state taxes    A QI may apply special rules to a related partnership or trust only if the partnership or trust meets the following conditions. Free filing state taxes It is a foreign partnership or foreign simple or grantor trust. Free filing state taxes It is either: A direct account holder of the QI, or An indirect account holder of the QI that is a direct partner, beneficiary, or owner of a partnership or trust to which the QI has applied this rule. Free filing state taxes For information on these rules, see section 4A. Free filing state taxes 02 of the QI agreement. Free filing state taxes This is found in Appendix 3 of Revenue Procedure 2003-64. Free filing state taxes Also see Revenue Procedure 2005-77. Free filing state taxes Nonqualified Intermediaries If you are making a payment to an NQI, foreign flow-through entity, or U. Free filing state taxes S. Free filing state taxes branch that is using Form W-8IMY to transmit information about the branch's account holders or customers, you can treat the payment (or a part of the payment) as reliably associated with valid documentation from a specific payee only if, prior to making the payment: You can allocate the payment to a valid Form W-8IMY, You can reliably determine how much of the payment relates to valid documentation provided by a payee (a person that is not itself a foreign intermediary, flow- through entity, or U. Free filing state taxes S. Free filing state taxes branch), and You have sufficient information to report the payment on Form 1042-S or Form 1099, if reporting is required. Free filing state taxes The NQI, flow-through entity, or U. Free filing state taxes S. Free filing state taxes branch must give you certain information on a withholding statement that is associated with the Form W-8IMY. Free filing state taxes A withholding statement must be updated to keep the information accurate prior to each payment. Free filing state taxes Withholding statement. Free filing state taxes   In most cases, a withholding statement must contain the following information. Free filing state taxes The name, address, and TIN (if any, or if required) of each person for whom documentation is provided. Free filing state taxes The type of documentation (documentary evidence, Form W-8, or Form W-9) for every person for whom documentation has been provided. Free filing state taxes The status of the person for whom the documentation has been provided, such as whether the person is a U. Free filing state taxes S. Free filing state taxes exempt recipient (U. Free filing state taxes S. Free filing state taxes person exempt from Form 1099 reporting), U. Free filing state taxes S. Free filing state taxes non-exempt recipient (U. Free filing state taxes S. Free filing state taxes person subject to Form 1099 reporting), or a foreign person. Free filing state taxes For a foreign person, the statement must indicate whether the person is a beneficial owner or a foreign intermediary, flow-through entity, or a U. Free filing state taxes S. Free filing state taxes branch. Free filing state taxes The type of recipient the person is, based on the recipient codes used on Form 1042-S. Free filing state taxes Information allocating each payment, by income type, to each payee (including U. Free filing state taxes S. Free filing state taxes exempt and U. Free filing state taxes S. Free filing state taxes non-exempt recipients) for whom documentation has been provided. Free filing state taxes The rate of withholding that applies to each foreign person to whom a payment is allocated. Free filing state taxes A foreign payee's country of residence. Free filing state taxes If a reduced rate of withholding is claimed, the basis for a reduced rate of withholding (for example, portfolio interest, treaty benefit, etc. Free filing state taxes ). Free filing state taxes In the case of treaty benefits claimed by entities, whether the applicable limitation on benefits statement and the statement that the foreign person derives the income for which treaty benefits are claimed, have been made. Free filing state taxes The name, address, and TIN (if any) of any other NQI, flow-through entity, or U. Free filing state taxes S. Free filing state taxes branch from which the payee will directly receive a payment. Free filing state taxes Any other information a withholding agent requests to fulfill its reporting and withholding obligations. Free filing state taxes Alternative procedure. Free filing state taxes   Under this alternative procedure the NQI can give you the information that allocates each payment to each foreign and U. Free filing state taxes S. Free filing state taxes exempt recipient by January 31 following the calendar year of payment, rather than prior to the payment being made as otherwise required. Free filing state taxes To take advantage of this procedure, the NQI must: (a) inform you, on its withholding statement, that it is using the alternative procedure; and (b) obtain your consent. Free filing state taxes You must receive the withholding statement with all the required information (other than item 5) prior to making the payment. Free filing state taxes    This alternative procedure cannot be used for payments to U. Free filing state taxes S. Free filing state taxes non-exempt recipients. Free filing state taxes Therefore, an NQI must always provide you with allocation information for all U. Free filing state taxes S. Free filing state taxes non-exempt recipients prior to a payment being made. Free filing state taxes Pooled withholding information. Free filing state taxes   If an NQI uses the alternative procedure, it must provide you with withholding rate pool information, as opposed to individual allocation information, prior to the payment of a reportable amount. Free filing state taxes A withholding rate pool is a payment of a single type of income (as determined by the income categories on Form 1042-S) that is subject to a single rate of withholding. Free filing state taxes For example, an NQI that has foreign account holders receiving royalties and dividends, both subject to the 15% rate, will provide you with information for two withholding rate pools (one for royalties and one for dividends). Free filing state taxes The NQI must provide you with the payee specific allocation information (information allocating each payment to each payee) by January 31 following the calendar year of payment. Free filing state taxes Failure to provide allocation information. Free filing state taxes   If an NQI fails to provide you with the payee specific allocation information for a withholding rate pool by January 31, you must not apply the alternative procedure to any of the NQI's withholding rate pools from that date forward. Free filing state taxes You must treat the payees as undocumented and apply the presumption rules, discussed later in Presumption Rules . Free filing state taxes An NQI is deemed to have f
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Priority Guidance Plan

The Treasury Department's Office of Tax Policy and IRS use the Guidance Priority List each year to identify and prioritize the tax issues that should be addressed through regulations, revenue rulings, revenue procedures, notices, and other published administrative guidance. The Guidance Priority List focuses resources on guidance items that are most important to taxpayers and tax administration. Published guidance plays an important role in increasing voluntary compliance by helping to clarify ambiguous areas of the tax law.

Priority Guidance Plans

Guidance Plan News

Current Year:

 

Notice 2014-18
Public comment invited on recommendations for 2014-2015 Guidance Priority List (type IRS-2014-0011 in the search field on the Regulations.gov homepage)   

Prior Years:

 

Notice 2013-22 
Public comment invited on recommendations for 2013-2014 Guidance Priority List

Notice 2012-25
Public comment invited on recommendations for 2012-2013 Guidance Priority List

Notice 2011-39
Public comment on recommendations for 2011-2012 Guidance Priority List.

Notice 2010-43
Public comment on recommendations for 2010-2011 Guidance Priority List.

Notice 2009-43
Public comment on recommendations for 2009-2010 Guidance Priority List.

Notice 2008-47
Public comment on recommendations for 2008-2009 Guidance Priority List.


Public Comments on Recommendations for Priority Guidance Plan

Public Comment Notice 2013-22

 

 


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Page Last Reviewed or Updated: 28-Mar-2014

The Free Filing State Taxes

Free filing state taxes 3. Free filing state taxes   Filing Information for Individuals in Certain U. Free filing state taxes S. Free filing state taxes 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 filing state taxes S. Free filing state taxes 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 filing state taxes Or, you may have to file two annual tax returns, one with the possession's tax department and the other with the U. Free filing state taxes S. Free filing state taxes Internal Revenue Service. Free filing state taxes This chapter covers the general rules for filing returns in the five possessions. Free filing state taxes You must first determine if you are a bona fide resident of the relevant possession. Free filing state taxes See chapter 1 for a discussion of the requirements you must meet. Free filing state taxes 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 filing state taxes Contact information is listed in this chapter under the heading for each possession. Free filing state taxes American Samoa American Samoa has its own separate and independent tax system. Free filing state taxes Although its tax laws are modeled on the U. Free filing state taxes S. Free filing state taxes Internal Revenue Code, there are certain differences. Free filing state taxes 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 filing state taxes The fax number is (684) 633-1513. Free filing state taxes You can get forms and publications at www. Free filing state taxes americansamoa. Free filing state taxes gov. Free filing state taxes The addresses and phone numbers listed above are subject to change. Free filing state taxes 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 filing state taxes 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 filing state taxes Bona Fide Resident of American Samoa Bona fide residents of American Samoa are generally exempt from U. Free filing state taxes S. Free filing state taxes tax on their American Samoa source income. Free filing state taxes U. Free filing state taxes S. Free filing state taxes citizen or resident alien. Free filing state taxes   If you are a U. Free filing state taxes S. Free filing state taxes 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 filing state taxes An American Samoa tax return reporting your gross income from worldwide sources. Free filing state taxes 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 filing state taxes A U. Free filing state taxes S. Free filing state taxes tax return reporting income from worldwide sources, but excluding income from sources within American Samoa. Free filing state taxes However, amounts received for services performed as an employee of the United States or any of its agencies cannot be excluded (see U. Free filing state taxes S. Free filing state taxes Government employees under Special Rules for American Samoa, later). Free filing state taxes To exclude American Samoa source income, attach a completed Form 4563 to your U. Free filing state taxes S. Free filing state taxes tax return (see Form 4563 for more information). Free filing state taxes If you are excluding American Samoa source income on your U. Free filing state taxes S. Free filing state taxes 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 filing state taxes For more information, see Special Rules for Completing Your U. Free filing state taxes S. Free filing state taxes Tax Return in chapter 4. Free filing state taxes Nonresident alien. Free filing state taxes   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 filing state taxes An American Samoa tax return reporting worldwide income. Free filing state taxes A U. Free filing state taxes S. Free filing state taxes tax return (Form 1040, U. Free filing state taxes S. Free filing state taxes 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 filing state taxes For more information, see U. Free filing state taxes S. Free filing state taxes Government employees under Special Rules for American Samoa, later. Free filing state taxes To exclude income from sources within American Samoa, attach a completed Form 4563 to your U. Free filing state taxes S. Free filing state taxes tax return (see Form 4563 , below, for more information). Free filing state taxes For all other tax purposes, however, you will be treated as a nonresident alien individual. Free filing state taxes 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 filing state taxes There are also limitations on what deductions and credits are allowed. Free filing state taxes See Publication 519 for more information. Free filing state taxes Form 4563. Free filing state taxes   If you must file a U. Free filing state taxes S. Free filing state taxes 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 filing state taxes Form 4563 cannot be filed by itself. Free filing state taxes There is an example of a filled-in Form 4563 in chapter 5. Free filing state taxes   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 filing state taxes S. Free filing state taxes 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 filing state taxes S. Free filing state taxes tax return and all attachments (including Form 4563) to: Internal Revenue Service P. Free filing state taxes O. Free filing state taxes 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 filing state taxes Self-employment tax. Free filing state taxes   If you are not required to file a U. Free filing state taxes S. Free filing state taxes 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 filing state taxes 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 filing state taxes Additional Medicare Tax. Free filing state taxes   Beginning in 2013, you may be required to pay Additional Medicare Tax. Free filing state taxes Also, you may need to report Additional Medicare Tax withheld by your employer. Free filing state taxes For more information see Additional Medicare Tax under Special Rules for Completing Your U. Free filing state taxes S. Free filing state taxes Tax Return in chapter 4. Free filing state taxes Net Investment Income Tax. Free filing state taxes   Beginning in 2013, the Net Investment Income Tax (NIIT) is 3. Free filing state taxes 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 filing state taxes 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 filing state taxes g. Free filing state taxes , $200,000 for single filers. Free filing state taxes The NIIT does not apply to any individual who is a nonresident alien with respect to the United States. Free filing state taxes See Form 8960, Net Investment Income Tax—Individuals, Estates, and Trusts, and its instructions for more information on the NIIT. Free filing state taxes Estimated tax payments. Free filing state taxes   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 filing state taxes   To pay by check or money order, send your payment with the Form 1040-ES payment voucher to: Internal Revenue Service P. Free filing state taxes O. Free filing state taxes 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 filing state taxes irs. Free filing state taxes gov/e-pay. Free filing state taxes   For information on making estimated income tax payments to American Samoa, see Where To Get Forms and Information , earlier. Free filing state taxes 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 filing state taxes S. Free filing state taxes and American Samoa tax returns, and claims a foreign tax credit on the U. Free filing state taxes S. Free filing state taxes return for taxes paid to American Samoa. Free filing state taxes U. Free filing state taxes S. Free filing state taxes citizen or resident alien. Free filing state taxes   If you are a U. Free filing state taxes S. Free filing state taxes 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 filing state taxes An American Samoa tax return reporting only your income from sources within American Samoa. Free filing state taxes Wages for services performed in American Samoa, whether for a private employer, the U. Free filing state taxes S. Free filing state taxes Government, or otherwise, is income from sources within American Samoa. Free filing state taxes A U. Free filing state taxes S. Free filing state taxes tax return reporting your income from worldwide sources. Free filing state taxes You can take a credit against your U. Free filing state taxes S. Free filing state taxes 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 filing state taxes S. Free filing state taxes tax return. Free filing state taxes De minimis exception to determining source of income. Free filing state taxes   In certain situations you will not have income from a possession. Free filing state taxes See De minimis exception under Compensation for Labor or Personal Services in chapter 2. Free filing state taxes Nonresident alien. Free filing state taxes   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 filing state taxes An American Samoa tax return reporting only your income from sources within American Samoa. Free filing state taxes In this situation, wages for services performed in American Samoa, whether for a private employer, the U. Free filing state taxes S. Free filing state taxes Government, or otherwise, is income from sources within American Samoa. Free filing state taxes A U. Free filing state taxes S. Free filing state taxes tax return (Form 1040NR, U. Free filing state taxes S. Free filing state taxes Nonresident Alien Income Tax Return) reporting U. Free filing state taxes S. Free filing state taxes source income according to the rules for a nonresident alien. Free filing state taxes See the Instructions for Form 1040NR. Free filing state taxes   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 filing state taxes S. Free filing state taxes 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 filing state taxes S. Free filing state taxes tax return and all attachments to: Internal Revenue Service P. Free filing state taxes O. Free filing state taxes 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 filing state taxes Special Rules for American Samoa Some special rules apply to certain types of income and employment connected with American Samoa. Free filing state taxes U. Free filing state taxes S. Free filing state taxes Armed Forces. Free filing state taxes   Bona fide residents of American Samoa include military personnel whose official home of record is American Samoa. Free filing state taxes Civilian spouse of active duty member of the U. Free filing state taxes S. Free filing state taxes Armed Forces. Free filing state taxes   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 filing state taxes S. Free filing state taxes 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 filing state taxes 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 filing state taxes S. Free filing state taxes tax return (Form 1040) and a state and/or local tax return, if required. Free filing state taxes 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 filing state taxes U. Free filing state taxes S. Free filing state taxes Government employees. Free filing state taxes   If you are employed in American Samoa by the U. Free filing state taxes S. Free filing state taxes Government or any of its agencies, you are subject to tax by American Samoa on your pay from the government. Free filing state taxes 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 filing state taxes   Wages and salaries paid to employees of the U. Free filing state taxes S. Free filing state taxes Government and its agencies are also subject to U. Free filing state taxes S. Free filing state taxes federal income tax. Free filing state taxes These payments do not qualify for the exclusion of income from sources within American Samoa, discussed earlier. Free filing state taxes   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 filing state taxes S. Free filing state taxes tax return. Free filing state taxes   If you report government wages on both your U. Free filing state taxes S. Free filing state taxes and American Samoa tax returns, you can take a credit on your U. Free filing state taxes S. Free filing state taxes tax return for income taxes paid or accrued to American Samoa. Free filing state taxes Figure the credit on Form 1116, and attach that form to your U. Free filing state taxes S. Free filing state taxes tax return, Form 1040. Free filing state taxes 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 filing state taxes Moving expense deduction. Free filing state taxes   Generally, expenses of a move to American Samoa are directly attributable to American Samoa wages, salaries, and other earned income. Free filing state taxes Likewise, the expenses of a move back to the United States are generally attributable to U. Free filing state taxes S. Free filing state taxes earned income. Free filing state taxes   If your move was to American Samoa, report your deduction for moving expenses as follows. Free filing state taxes 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 filing state taxes If you are not a bona fide resident, enter your deductible expenses on both your American Samoa and U. Free filing state taxes S. Free filing state taxes tax returns. Free filing state taxes Also, for purposes of a tax credit against your U. Free filing state taxes S. Free filing state taxes tax liability, reduce your American Samoa “general category income” on Form 1116, line 1a, by entering the deductible moving expenses on line 2. Free filing state taxes   If your move was to the United States, complete Form 3903, Moving Expenses, and enter the deductible amount on Form 1040, line 26. Free filing state taxes Double Taxation A mutual agreement procedure exists to settle cases of double taxation between the United States and American Samoa. Free filing state taxes See Double Taxation in chapter 4. Free filing state taxes The Commonwealth of Puerto Rico The Commonwealth of Puerto Rico has its own separate and independent tax system. Free filing state taxes Although it is modeled after the U. Free filing state taxes S. Free filing state taxes system, there are differences in law and tax rates. Free filing state taxes 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 filing state taxes O. Free filing state taxes Box 9024140 San Juan, Puerto Rico 00902-4140 The phone numbers are (787) 721-8051 and (787) 721-7198. Free filing state taxes    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 filing state taxes You can access the Hacienda website at www. Free filing state taxes hacienda. Free filing state taxes gobierno. Free filing state taxes pr or email your questions about Puerto Rico taxes to InfoServ@hacienda. Free filing state taxes gobierno. Free filing state taxes pr. Free filing state taxes The addresses and phone numbers listed above are subject to change. Free filing state taxes Which Returns To File Generally, you will file returns with both Puerto Rico and the United States. Free filing state taxes The income reported on each return depends on your residency status in Puerto Rico. Free filing state taxes To determine if you are a bona fide resident of Puerto Rico, see the information in chapter 1. Free filing state taxes Bona Fide Resident of Puerto Rico Bona fide residents of Puerto Rico will generally pay tax to Puerto Rico on their worldwide income. Free filing state taxes U. Free filing state taxes S. Free filing state taxes citizen or resident alien. Free filing state taxes   If you are a U. Free filing state taxes S. Free filing state taxes 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 filing state taxes A Puerto Rico tax return reporting income from worldwide sources. Free filing state taxes If you report U. Free filing state taxes S. Free filing state taxes 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 filing state taxes A U. Free filing state taxes S. Free filing state taxes tax return reporting income from worldwide sources, but excluding Puerto Rico source income. Free filing state taxes However, see U. Free filing state taxes S. Free filing state taxes Government employees under Special Rules for Puerto Rico, later, for an exception. Free filing state taxes If you are excluding Puerto Rico income on your U. Free filing state taxes S. Free filing state taxes tax return, you will not be allowed any deductions or credits that are directly or indirectly allocable to exempt income. Free filing state taxes For more information, see Special Rules for Completing Your U. Free filing state taxes S. Free filing state taxes Tax Return in chapter 4. Free filing state taxes If all of your income is from Puerto Rico sources, you are not required to file a U. Free filing state taxes S. Free filing state taxes tax return. Free filing state taxes However, if you have self-employment income, see Self-employment tax , later. Free filing state taxes U. Free filing state taxes S. Free filing state taxes citizen only. Free filing state taxes   If you are a U. Free filing state taxes S. Free filing state taxes 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 filing state taxes 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 filing state taxes S. Free filing state taxes Government or its agencies) that you earned before the date you changed your residence. Free filing state taxes For more information, see Puerto Rico under Year of Moving From a Possession in chapter 1. Free filing state taxes Nonresident alien. Free filing state taxes   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 filing state taxes A Puerto Rico tax return reporting income from worldwide sources. Free filing state taxes If you report U. Free filing state taxes S. Free filing state taxes 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 filing state taxes A U. Free filing state taxes S. Free filing state taxes 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 filing state taxes For tax purposes other than reporting income, however, you will be treated as a nonresident alien individual. Free filing state taxes 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 filing state taxes There are also limitations on what deductions and credits are allowed. Free filing state taxes See Publication 519 for more information. Free filing state taxes Self-employment tax. Free filing state taxes   If you have no U. Free filing state taxes S. Free filing state taxes 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 filing state taxes Additional Medicare Tax. Free filing state taxes   Beginning in 2013, you may be required to pay Additional Medicare Tax. Free filing state taxes Also, you may need to report Additional Medicare Tax withheld by your employer. Free filing state taxes For more information see Additional Medicare Tax under Special Rules for Completing Your U. Free filing state taxes S. Free filing state taxes Tax Return in chapter 4. Free filing state taxes Net Investment Income Tax. Free filing state taxes   Beginning in 2013, the Net Investment Income Tax (NIIT) is 3. Free filing state taxes 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 filing state taxes 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 filing state taxes g. Free filing state taxes , $200,000 for single filers. Free filing state taxes The NIIT does not apply to any individual who is a nonresident alien with respect to the United States. Free filing state taxes See Form 8960, Net Investment Income Tax—Individuals, Estates, and Trusts, and its instructions for more information on the NIIT. Free filing state taxes Estimated tax payments. Free filing state taxes   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 filing state taxes   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 filing state taxes O. Free filing state taxes 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 filing state taxes irs. Free filing state taxes gov/e-pay. Free filing state taxes   For information on making estimated income tax payments to Hacienda, see Where To Get Forms and Information , earlier. Free filing state taxes 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 filing state taxes U. Free filing state taxes S. Free filing state taxes citizen or resident alien. Free filing state taxes   If you are a U. Free filing state taxes S. Free filing state taxes 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 filing state taxes A Puerto Rico tax return reporting only your income from Puerto Rico sources. Free filing state taxes Wages for services performed in Puerto Rico, whether for a private employer, the U. Free filing state taxes S. Free filing state taxes Government, or otherwise, is income from Puerto Rico sources. Free filing state taxes A U. Free filing state taxes S. Free filing state taxes tax return reporting income from worldwide sources. Free filing state taxes 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 filing state taxes S. Free filing state taxes taxes (see chapter 4 for more information). Free filing state taxes Nonresident alien. Free filing state taxes   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 filing state taxes A Puerto Rico tax return reporting only your income from Puerto Rico sources. Free filing state taxes Wages for services performed in Puerto Rico, whether for a private employer, the U. Free filing state taxes S. Free filing state taxes Government, or otherwise, is income from Puerto Rico sources. Free filing state taxes A U. Free filing state taxes S. Free filing state taxes tax return (Form 1040NR) according to the rules for a nonresident alien. Free filing state taxes See the Instructions for Form 1040NR. Free filing state taxes De minimis exception to determining source of income. Free filing state taxes   In certain situations you will not have income from a possession. Free filing state taxes See De minimis exception under Compensation for Labor or Personal Services in chapter 2. Free filing state taxes Use the addresses listed below to file your U. Free filing state taxes S. Free filing state taxes and Puerto Rico income tax returns. Free filing state taxes If you are not including a check or a money order, send your U. Free filing state taxes S. Free filing state taxes 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 filing state taxes S. Free filing state taxes tax return and all attachments to: Internal Revenue Service P. Free filing state taxes O. Free filing state taxes 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 filing state taxes O. Free filing state taxes Box 50072 San Juan, PR 00902-6272 Send all other Puerto Rico tax returns, with all attachments, to: Departamento de Hacienda P. Free filing state taxes O. Free filing state taxes Box 9022501 San Juan, PR 00902-2501 Special Rules for Puerto Rico In addition to the general rules given earlier for filing U. Free filing state taxes S. Free filing state taxes and Puerto Rico tax returns, there are some special rules that apply to certain individuals and types of income. Free filing state taxes U. Free filing state taxes S. Free filing state taxes Government employees. Free filing state taxes   Wages and cost-of-living allowances paid by the U. Free filing state taxes S. Free filing state taxes Government (or one of its agencies) for working in Puerto Rico are subject to Puerto Rico tax. Free filing state taxes However, the cost-of-living allowances are excluded from Puerto Rico gross income up to the amount exempt from U. Free filing state taxes S. Free filing state taxes tax. Free filing state taxes 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 filing state taxes   These wages are also subject to U. Free filing state taxes S. Free filing state taxes tax, but the cost-of-living allowances are excludable. Free filing state taxes A foreign tax credit is available in order to avoid double taxation. Free filing state taxes U. Free filing state taxes S. Free filing state taxes Armed Forces. Free filing state taxes   Bona fide residents of Puerto Rico include military personnel whose official home of record is Puerto Rico. Free filing state taxes Civilian spouse of active duty member of the U. Free filing state taxes S. Free filing state taxes Armed Forces. Free filing state taxes   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 filing state taxes S. Free filing state taxes 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 filing state taxes 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 filing state taxes S. Free filing state taxes tax return (Form 1040) and a state and/or local tax return, if required. Free filing state taxes 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 filing state taxes Income from sources outside Puerto Rico and the United States. Free filing state taxes   If you are a U. Free filing state taxes S. Free filing state taxes 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 filing state taxes In addition to your Puerto Rico and U. Free filing state taxes S. Free filing state taxes tax returns, you may also have to file a return with the country or possession from which your outside income was derived. Free filing state taxes To avoid double taxation, a foreign tax credit is generally available for either the U. Free filing state taxes S. Free filing state taxes or Puerto Rico return. Free filing state taxes Example. Free filing state taxes Thomas Red is a bona fide resident of Puerto Rico and a U. Free filing state taxes S. Free filing state taxes citizen. Free filing state taxes He traveled to the Dominican Republic and worked in the construction industry for 1 month. Free filing state taxes His wages were $20,000. Free filing state taxes 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 filing state taxes He may also have to file a tax return with the Dominican Republic. Free filing state taxes Moving expense deduction. Free filing state taxes   Generally, expenses of a move to Puerto Rico are directly attributable to wages, salaries, and other earned income from Puerto Rico. Free filing state taxes Likewise, the expenses of a move back to the United States are generally attributable to U. Free filing state taxes S. Free filing state taxes earned income. Free filing state taxes   If your move was to Puerto Rico, report your deduction for moving expenses as follows. Free filing state taxes 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 filing state taxes If you are not a bona fide resident, enter your deductible expenses on both your Puerto Rico and U. Free filing state taxes S. Free filing state taxes tax returns. Free filing state taxes Also, for purposes of a tax credit against your U. Free filing state taxes S. Free filing state taxes tax liability, reduce your Puerto Rico “general category income” on Form 1116, line 1a, by entering the deductible moving expenses on line 2. Free filing state taxes   If your move was to the United States, complete Form 3903 and enter the deductible amount on Form 1040, line 26. Free filing state taxes Additional child tax credit. Free filing state taxes   If you are not required to file a U. Free filing state taxes S. Free filing state taxes income tax return, this credit is available only if you meet all three of the following conditions. Free filing state taxes You were a bona fide resident of Puerto Rico during the entire tax year. Free filing state taxes Social security and Medicare taxes were withheld from your wages or you paid self-employment tax. Free filing state taxes You had three or more qualifying children. Free filing state taxes (For the definition of a qualifying child, see the instructions for Form 1040-PR or Form 1040-SS. Free filing state taxes ) If your income exceeds certain levels, you may be disqualified from receiving this credit. Free filing state taxes Use Form 1040-PR or Form 1040-SS to claim the additional child tax credit. Free filing state taxes Advice about possible tax benefits under the Puerto Rico investment incentive programs is available from the Puerto Rico tax authorities. Free filing state taxes Double Taxation A mutual agreement procedure exists to settle cases of double taxation between the United States and the Commonwealth of Puerto Rico. Free filing state taxes See Double Taxation in chapter 4. Free filing state taxes 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 filing state taxes 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 filing state taxes O. Free filing state taxes 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 filing state taxes You can order forms and publications through the fax at (670) 664-1015. Free filing state taxes You can get forms and publications at www. Free filing state taxes cnmidof. Free filing state taxes net. Free filing state taxes The addresses and phone numbers listed above are subject to change. Free filing state taxes 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 filing state taxes Your residency status with regard to the CNMI determines which return you will file. Free filing state taxes Be sure to check the Special Rules for the CNMI , later, for additional information about filing your tax return. Free filing state taxes Bona Fide Resident of the CNMI If you are a U. Free filing state taxes S. Free filing state taxes 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 filing state taxes Include income from worldwide sources on your CNMI return. Free filing state taxes 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 filing state taxes Pay any balance of tax due with your tax return. Free filing state taxes 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 filing state taxes However, if you were self-employed in 2013, see Self-employment tax , later. Free filing state taxes Example. Free filing state taxes David Gold was a bona fide resident of the CNMI for 2013. Free filing state taxes He received wages of $30,000 paid by a private employer in the CNMI and dividends of $4,000 from U. Free filing state taxes S. Free filing state taxes corporations that carry on business mainly in the United States. Free filing state taxes He must file a 2013 income tax return with the CNMI Division of Revenue and Taxation. Free filing state taxes He reports his total income of $34,000 on the CNMI return. Free filing state taxes   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 filing state taxes U. Free filing state taxes S. Free filing state taxes 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 filing state taxes S. Free filing state taxes 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 filing state taxes Include income from worldwide sources on your U. Free filing state taxes S. Free filing state taxes return. Free filing state taxes 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 filing state taxes Pay any balance of tax due with your tax return. Free filing state taxes Note. Free filing state taxes You may also need to complete Form 5074. Free filing state taxes You are not liable for filing an income tax return with, or for paying tax to, the CNMI for the tax year. Free filing state taxes Form 5074. Free filing state taxes   If you file a U. Free filing state taxes S. Free filing state taxes 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 filing state taxes   The United States and the CNMI use this form to divide your income taxes. Free filing state taxes   There is an example of a filled-in Form 5074 in chapter 5. Free filing state taxes De minimis exception to determining source of income. Free filing state taxes   In certain situations you will not have income from a possession. Free filing state taxes See De minimis exception under Compensation for Labor or Personal Services in chapter 2. Free filing state taxes Citizen or resident alien of the United States but not a bona fide resident of the CNMI. Free filing state taxes   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 filing state taxes S. Free filing state taxes tax return and all attachments to: Internal Revenue Service P. Free filing state taxes O. Free filing state taxes 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 filing state taxes A CNMI tax return reporting only your income from sources within the CNMI. Free filing state taxes In this situation, wages for services performed in the CNMI, whether for a private employer, the U. Free filing state taxes S. Free filing state taxes Government, or otherwise, is income from sources within the CNMI. Free filing state taxes A U. Free filing state taxes S. Free filing state taxes tax return (Form 1040NR) reporting U. Free filing state taxes S. Free filing state taxes source income according to the rules for a nonresident alien. Free filing state taxes See the instructions for Form 1040NR. Free filing state taxes 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 filing state taxes S. Free filing state taxes 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 filing state taxes S. Free filing state taxes tax return and all attachments to:  Internal Revenue Service P. Free filing state taxes O. Free filing state taxes 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 filing state taxes O. Free filing state taxes 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 filing state taxes S. Free filing state taxes citizen or a U. Free filing state taxes S. Free filing state taxes resident alien during the tax year, file your income tax return with the CNMI. Free filing state taxes Include income from worldwide sources on your CNMI return. Free filing state taxes Take into account tax withheld by both jurisdictions in determining if there is tax overdue or an overpayment. Free filing state taxes Pay any balance of tax due with your tax return. Free filing state taxes Send your return and all attachments to:   Department of Finance Division of Revenue and Taxation Commonwealth of the Northern Mariana Islands P. Free filing state taxes O. Free filing state taxes Box 5234 CHRB Saipan, MP 96950 Special Rules for the CNMI Special rules apply to certain types of income, employment, and filing status. Free filing state taxes Joint return. Free filing state taxes   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 filing state taxes 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 filing state taxes If the spouse with the greater AGI is a U. Free filing state taxes S. Free filing state taxes 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 filing state taxes For this purpose, income is determined without regard to community property laws. Free filing state taxes Example. Free filing state taxes Marsha Blue, a U. Free filing state taxes S. Free filing state taxes 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 filing state taxes Marsha earned $65,000 as a computer programmer in the United States. Free filing state taxes Her spouse earned $20,000 as an artist in the CNMI. Free filing state taxes Marsha and her spouse will file a joint return. Free filing state taxes 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 filing state taxes U. Free filing state taxes S. Free filing state taxes Armed Forces. Free filing state taxes   If you are a member of the U. Free filing state taxes S. Free filing state taxes 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 filing state taxes 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 filing state taxes Civilian spouse of active duty member of the U. Free filing state taxes S. Free filing state taxes Armed Forces. Free filing state taxes   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 filing state taxes S. Free filing state taxes 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 filing state taxes 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 filing state taxes S. Free filing state taxes tax return (Form 1040) and a state and/or local tax return, if required. Free filing state taxes 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 filing state taxes S. Free filing state taxes tax return. Free filing state taxes Moving expense deduction. Free filing state taxes   Generally, expenses of a move to the CNMI are directly attributable to wages, salaries, and other earned income from the CNMI. Free filing state taxes Likewise, the expenses of a move back to the United States are generally attributable to U. Free filing state taxes S. Free filing state taxes earned income. Free filing state taxes   If your move was to the CNMI, report your deduction for moving expenses as follows. Free filing state taxes If you are a bona fide resident in the tax year of your move, enter your deductible expenses on your CNMI tax return. Free filing state taxes 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 filing state taxes   If your move was to the United States, complete Form 3903 and enter the deductible amount on Form 1040, line 26. Free filing state taxes Foreign tax credit. Free filing state taxes   Under the filing rules explained earlier, individuals with CNMI source income normally will not claim a foreign tax credit on a U. Free filing state taxes S. Free filing state taxes income tax return for tax paid to the CNMI. Free filing state taxes Self-employment tax. Free filing state taxes   If you have no U. Free filing state taxes S. Free filing state taxes 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 filing state taxes Additional Medicare Tax. Free filing state taxes   Beginning in 2013, you may be required to pay Additional Medicare Tax. Free filing state taxes Also, you may need to report Additional Medicare Tax withheld by your employer. Free filing state taxes For more information see Additional Medicare Tax under Special Rules for Completing Your U. Free filing state taxes S. Free filing state taxes Tax Return in chapter 4. Free filing state taxes Estimated tax payments. Free filing state taxes   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 filing state taxes Payment of estimated tax. Free filing state taxes   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 filing state taxes 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 filing state taxes However, estimated tax payments to either jurisdiction will be treated as payments to the jurisdiction with which you file the tax return. Free filing state taxes   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 filing state taxes For this purpose, income is determined without regard to community property laws. Free filing state taxes Early payment. Free filing state taxes   If you make your first payment of estimated tax early, follow the rules given earlier to determine where to send it. Free filing state taxes 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 filing state taxes   To pay by check or money order, send your payment with the Form 1040-ES payment voucher to:  Internal Revenue Service P. Free filing state taxes O. Free filing state taxes 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 filing state taxes irs. Free filing state taxes gov/e-pay. Free filing state taxes   For information on making estimated income tax payments to the CNMI, see Where To Get Forms and Information , earlier. Free filing state taxes Double Taxation A mutual agreement procedure exists to settle cases of double taxation between the United States and the CNMI. Free filing state taxes See Double Taxation in chapter 4. Free filing state taxes Guam Guam has its own tax system based on the same tax laws and tax rates that apply in the United States. Free filing state taxes 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 filing state taxes O. Free filing state taxes Box 23607 GMF, GU 96921 You can order forms and publications by calling (671) 635-1840 or (671) 635-1841. Free filing state taxes You can order forms and publications through the fax at (671) 633-2643. Free filing state taxes You can get forms and publications at www. Free filing state taxes guamtax. Free filing state taxes com. Free filing state taxes The addresses and phone numbers listed above are subject to change. Free filing state taxes Which Return To File Bona fide residents of Guam are subject to special U. Free filing state taxes S. Free filing state taxes tax rules. Free filing state taxes In general, all individuals with income from Guam will file only one return—either to Guam or the United States. Free filing state taxes 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 filing state taxes This applies to all bona fide residents who are citizens, resident aliens, or nonresident aliens of the United States. Free filing state taxes Include income from worldwide sources on your Guam return. Free filing state taxes 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 filing state taxes Pay any balance of tax due with your tax return. Free filing state taxes 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 filing state taxes However, if you were self-employed in 2013, see Self-employment tax , later. Free filing state taxes Example. Free filing state taxes Gary Barker was a bona fide resident of Guam for 2013. Free filing state taxes He received wages of $25,000 paid by a private employer in Guam and dividends of $2,000 from U. Free filing state taxes S. Free filing state taxes corporations that carry on business mainly in the United States. Free filing state taxes He must file a 2013 income tax return with the Government of Guam. Free filing state taxes He reports his total income of $27,000 on the Guam return. Free filing state taxes 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 filing state taxes O. Free filing state taxes Box 23607 GMF, GU 96921 U. Free filing state taxes S. Free filing state taxes 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 filing state taxes S. Free filing state taxes 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 filing state taxes Include income from worldwide sources on your U. Free filing state taxes S. Free filing state taxes return. Free filing state taxes 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 filing state taxes Pay any balance of tax due with your tax return. Free filing state taxes You may also need to complete Form 5074. Free filing state taxes You are not liable for filing an income tax return with, or for paying tax to, Guam for the tax year. Free filing state taxes Form 5074. Free filing state taxes   If you file a U. Free filing state taxes S. Free filing state taxes 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 filing state taxes   The United States and Guam use this form to divide your income taxes. Free filing state taxes   See the Illustrated Example of Form 5074 in chapter 5. Free filing state taxes De minimis exception to determining source of income. Free filing state taxes   In certain situations you will not have income from a possession. Free filing state taxes See De minimis exception under Compensation for Labor or Personal Services in chapter 2. Free filing state taxes   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 filing state taxes S. Free filing state taxes 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 filing state taxes S. Free filing state taxes tax return and all attachments (including Form 5074) to:  Internal Revenue Service P. Free filing state taxes O. Free filing state taxes 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 filing state taxes A Guam tax return reporting only your income from sources within Guam. Free filing state taxes In this situation, wages for services performed in Guam, whether for a private employer, the U. Free filing state taxes S. Free filing state taxes Government, or otherwise, is income from sources within Guam. Free filing state taxes A U. Free filing state taxes S. Free filing state taxes tax return (Form 1040NR) reporting U. Free filing state taxes S. Free filing state taxes source income according to the rules for a nonresident alien. Free filing state taxes See the instructions for Form 1040NR. Free filing state taxes 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 filing state taxes S. Free filing state taxes 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 filing state taxes S. Free filing state taxes tax return and all attachments to:  Internal Revenue Service P. Free filing state taxes O. Free filing state taxes Box 1303 Charlotte, NC 28201-1303 USA Send your Guam tax return and all attachments to:   Department of Revenue and Taxation P. Free filing state taxes O. Free filing state taxes 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 filing state taxes S. Free filing state taxes citizen or a U. Free filing state taxes S. Free filing state taxes resident alien during the tax year, file your income tax return with Guam. Free filing state taxes Include income from worldwide sources on your Guam return. Free filing state taxes Take into account tax withheld by both jurisdictions in determining if there is tax overdue or an overpayment. Free filing state taxes Pay any balance of tax due with your tax return. Free filing state taxes If you are a citizen of Guam, send your return and all attachments to:  Department of Revenue and Taxation Government of Guam P. Free filing state taxes O. Free filing state taxes Box 23607 GMF, GU 96921 Special Rules for Guam Special rules apply to certain types of income, employment, and filing status. Free filing state taxes Joint return. Free filing state taxes   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 filing state taxes 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 filing state taxes If the spouse with the greater AGI is a U. Free filing state taxes S. Free filing state taxes 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 filing state taxes For this purpose, income is determined without regard to community property laws. Free filing state taxes Example. Free filing state taxes Bill Whiting, a U. Free filing state taxes S. Free filing state taxes 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 filing state taxes Bill earned $45,000 as an engineer in the United States. Free filing state taxes His spouse earned $15,000 as a teacher in Guam. Free filing state taxes Bill and his spouse will file a joint return. Free filing state taxes 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 filing state taxes U. Free filing state taxes S. Free filing state taxes Armed Forces. Free filing state taxes   If you are a member of the U. Free filing state taxes S. Free filing state taxes 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 filing state taxes 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 filing state taxes Civilian spouse of active duty member of the U. Free filing state taxes S. Free filing state taxes Armed Forces. Free filing state taxes   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 filing state taxes S. Free filing state taxes Armed Forces ), your tax residence is Guam, follow the guidance in the section for bona fide residents under Which Return To File, earlier. Free filing state taxes 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 filing state taxes S. Free filing state taxes tax return (Form 1040) and a state and/or local tax return, if required. Free filing state taxes 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 filing state taxes S. Free filing state taxes tax return. Free filing state taxes Moving expense deduction. Free filing state taxes   Generally, expenses of a move to Guam are directly attributable to wages, salaries, and other earned income from Guam. Free filing state taxes Likewise, the expenses of a move back to the United States are generally attributable to U. Free filing state taxes S. Free filing state taxes earned income. Free filing state taxes   If your move was to Guam, report your deduction for moving expenses as follows. Free filing state taxes If you are a bona fide resident in the tax year of your move, enter your deductible expenses on your Guam tax return. Free filing state taxes 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 filing state taxes   If your move was to the United States, complete Form 3903 and enter the deductible amount on Form 1040, line 26. Free filing state taxes Foreign tax credit. Free filing state taxes   Under the filing rules explained earlier, individuals with Guam source income normally will not claim a foreign tax credit on a U. Free filing state taxes S. Free filing state taxes income tax return for tax paid to Guam. Free filing state taxes Self-employment tax. Free filing state taxes   If you have no U. Free filing state taxes S. Free filing state taxes 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 filing state taxes Additional Medicare Tax. Free filing state taxes   Beginning in 2013, you may be required to pay Additional Medicare Tax. Free filing state taxes Also, you may need to report Additional Medicare Tax withheld by your employer. Free filing state taxes For more information see Additional Medicare Tax under Special Rules for Completing Your U. Free filing state taxes S. Free filing state taxes Tax Return in chapter 4. Free filing state taxes Estimated tax payments. Free filing state taxes   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 filing state taxes Payment of estimated tax. Free filing state taxes   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 filing state taxes 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 filing state taxes However, estimated tax payments to either jurisdiction will be treated as payments to the jurisdiction with which you file the tax return. Free filing state taxes   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 filing state taxes For this purpose, income is determined without regard to community property laws. Free filing state taxes Early payment. Free filing state taxes   If you make your first payment of estimated tax early, follow the rules given earlier to determine where to send it. Free filing state taxes 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 filing state taxes   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 filing state taxes O. Free filing state taxes 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 filing state taxes irs. Free filing state taxes gov/e-pay. Free filing state taxes   For information on making estimated income tax payments to the Department of Revenue and Taxation, see Where To Get Forms and Information , earlier. Free filing state taxes Double Taxation A mutual agreement procedure exists to settle cases of double taxation between the United States and Guam. Free filing state taxes See Double Taxation in chapter 4. Free filing state taxes The U. Free filing state taxes S. Free filing state taxes Virgin Islands The U. Free filing state taxes S. Free filing state taxes Virgin Islands has its own tax system based on the same tax laws and tax rates that apply in the United States. Free filing state taxes An important factor in USVI taxation is whether, during the entire tax year, you are a bona fide resident of the USVI. Free filing state taxes Where To Get Forms and Information For information about filing your U. Free filing state taxes S. Free filing state taxes Virgin Islands tax return or about Form 1040INFO, in St. Free filing state taxes Thomas contact : Bureau of Internal Revenue  6115 Estate Smith Bay  St. Free filing state taxes Thomas, VI 00802 You can order forms and publications by calling (340) 715-1040. Free filing state taxes You can order forms and publications through the fax at (340) 774-2672. Free filing state taxes For information about filing your U. Free filing state taxes S. Free filing state taxes Virgin Islands tax return or about Form 1040INFO, in St. Free filing state taxes Croix contact : Bureau of Internal Revenue  4008 Estate Diamond- Plot 7B Christiansted, V. Free filing state taxes I. Free filing state taxes 00820–4421 You can order forms and publications by calling (340) 773-1040. Free filing state taxes You can order forms and publications through the fax at (340) 773-1006. Free filing state taxes You can access the USVI website at www. Free filing state taxes viirb. Free filing state taxes com. Free filing state taxes The addresses and phone numbers listed above are subject to change. Free filing state taxes Which Return To File In general, bona fide residents of the USVI pay taxes only to the USVI. Free filing state taxes U. Free filing state taxes S. Free filing state taxes 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 filing state taxes Bona Fide Resident of the USVI File your tax return with the USVI if you are a U. Free filing state taxes S. Free filing state taxes citizen, resident alien, or nonresident alien and a bona fide resident of the USVI during the entire tax year. Free filing state taxes Include your worldwide income on your USVI return. Free filing state taxes 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 filing state taxes Pay any balance of tax due with your tax return. Free filing state taxes Filing this return with the USVI generally also starts the statute of limitations on assessment of your U. Free filing state taxes S. Free filing state taxes income tax. Free filing state taxes 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 filing state taxes However, if you have self-employment income, you may be required to file Form 1040-SS with the United States. Free filing state taxes For more information, see Self-employment tax under Special Rules for the USVI, later. Free filing state taxes Form 1040INFO. Free filing state taxes   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 filing state taxes Attach Form 1040INFO to your USVI tax return before filing. Free filing state taxes You can get Form 1040INFO by contacting the address or website given earlier. Free filing state taxes   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 filing state taxes Thomas, VI 00802 U. Free filing state taxes S. Free filing state taxes Citizen or Resident Alien (Other Than a Bona Fide Resident of the USVI) If you are a U. Free filing state taxes S. Free filing state taxes 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 filing state taxes File your original Form 1040 with the United States and file a signed copy of the U. Free filing state taxes S. Free filing state taxes return (including all attachments, forms, and schedules) with the Virgin Islands Bureau of Internal Revenue by the due date for filing Form 1040. Free filing state taxes Use Form 8689 to figure the amount of tax you must pay to the USVI. Free filing state taxes Form 8689. Free filing state taxes   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 filing state taxes Figure the amount of tax you must pay to the USVI as follows:      Total tax on  U. Free filing state taxes S. Free filing state taxes 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 filing state taxes To receive credit on your U. Free filing state taxes S. Free filing state taxes 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 filing state taxes On the dotted line next to line 72, enter “Form 8689” and show the amounts. Free filing state taxes   See the illustrated example in chapter 5. Free filing state taxes De minimis exception to determining source of income. Free filing state taxes   In certain situations you will not have income from a possession. Free filing state taxes See De minimis exception under Compensation for Labor or Personal Services in chapter 2. Free filing state taxes   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 filing state taxes S. Free filing state taxes tax return and all attachments (including Form 8689) to:  Internal Revenue Service P. Free filing state taxes O. Free filing state taxes Box 1303 Charlotte, NC 28201-1303 USA   File a copy of your U. Free filing state taxes S. Free filing state taxes Form 1040 with the Virgin Islands Bureau of Internal Revenue at:  USVI Bureau of Internal Revenue 6115 Estate Smith Bay St. Free filing state taxes 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 filing state taxes A USVI tax return reporting only your income from sources within the USVI. Free filing state taxes In this situation, wages for services performed in the USVI, whether for a private employer, the U. Free filing state taxes S. Free filing state taxes Government, or otherwise, is income from sources within the USVI. Free filing state taxes A U. Free filing state taxes S. Free filing state taxes tax return (Form 1040NR) reporting U. Free filing state taxes S. Free filing state taxes source income according to the rules for a nonresident alien. Free filing state taxes See the instructions for Form 1040NR. Free filing state taxes   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 filing state taxes S. Free filing state taxes 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 filing state taxes S. Free filing state taxes tax return and all attachments (including Form 8689) to:  Internal Revenue Service P. Free filing state taxes O. Free filing state taxes 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 filing state taxes Thomas, VI 00802 Special Rules for the USVI There are some special rules for certain types of income, employment, and filing status. Free filing state taxes Joint return. Free filing state taxes   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 filing state taxes 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 filing state taxes If the spouse with the greater AGI is a U. Free filing state taxes S. Free filing state taxes 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 filing state taxes For this purpose, income is determined without regard to community property laws. Free filing state taxes Example. Free filing state taxes Marge Birch, a U. Free filing state taxes S. Free filing state taxes 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 filing state taxes Marge earned $55,000 as an architect in the United States. Free filing state taxes Her spouse earned $30,000 as a librarian in the USVI. Free filing state taxes Marge and her spouse will file a joint return. Free filing state taxes 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 filing state taxes U. Free filing state taxes S. Free filing state taxes Armed Forces. Free filing state taxes   If you are a member of the U. Free filing state taxes S. Free filing state taxes Armed Forces who qualified as a bona fide resident of the U. Free filing state taxes S. Free filing state taxes Virgin Islands in a prior tax year, your absence from the U. Free filing state taxes S. Free filing state taxes Virgin Islands solely in compliance with military orders will not change your bona fide residency. Free filing state taxes If you did not qualify as a bona fide resident of the U. Free filing state taxes S. Free filing state taxes Virgin Islands in a prior tax year, your presence in the U. Free filing state taxes S. Free filing state taxes Virgin Islands solely in compliance with military orders will not qualify you as a bona fide resident of the U. Free filing state taxes S. Free filing state taxes Virgin Islands. Free filing state taxes Civilian spouse of active duty member of the U. Free filing state taxes S. Free filing state taxes Armed Forces. Free filing state taxes   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 filing state taxes S. Free filing state taxes 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 filing state taxes 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 filing state taxes S. Free filing state taxes tax return (Form 1040) and a state and/or local tax return, if required. Free filing state taxes 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 filing state taxes S. Free filing state taxes tax return. Free filing state taxes In this case, follow the guidance under U. Free filing state taxes S. Free filing state taxes Citizen or Resident Alien (Other Than a Bona Fide Resident of the USVI ), earlier. Free filing state taxes Moving expense deduction. Free filing state taxes   Generally, expenses of a move to the USVI are directly attributable to wages, salaries, and other earned income from the USVI. Free filing state taxes Likewise, the expenses of a move back to the United States are generally attributable to U. Free filing state taxes S. Free filing state taxes earned income. Free filing state taxes   If your move was to the USVI, report your deduction for moving expenses as follows. Free filing state taxes If you are a bona fide resident in the tax year of your move, enter your deductible expenses on your USVI tax return. Free filing state taxes 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 filing state taxes   If your move was to the United States, complete Form 3903 and enter the deductible amount on Form 1040, line 26. Free filing state taxes Foreign tax credit. Free filing state taxes   Under the filing rules explained earlier, individuals with USVI source income normally will not claim a foreign tax credit on a U. Free filing state taxes S. Free filing state taxes income tax return for tax paid to the USVI. Free filing state taxes 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 filing state taxes Self-employment tax. Free filing state taxes   If you have no U. Free filing state taxes S. Free filing state taxes 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 filing state taxes Additional Medicare Tax. Free filing state taxes   Beginning in 2013, you may be required to pay Additional Medicare Tax. Free filing state taxes Also, you may need to report Additional Medicare Tax withheld by your employer. Free filing state taxes For more information see Additional Medicare Tax under Special Rules for Completing Your U. Free filing state taxes S. Free filing state taxes Tax Return in chapter 4. Free filing state taxes Estimated tax payments. Free filing state taxes   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 filing state taxes   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 filing state taxes 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 filing state taxes irs. Free filing state taxes gov/e-pay. Free filing state taxes   For information on making estimated income tax payments to the Bureau of Internal Revenue, see Where To Get Forms and Information , earlier. Free filing state taxes Extension of time to file. Free filing state taxes   You can get an automatic 6-month extension of time to file your tax return. Free filing state taxes See Extension of Time To File in chapter 4. Free filing state taxes 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 filing state taxes 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 filing state taxes However, the Virgin Islands Bureau of Internal Revenue will honor an extension request that is timely filed with the IRS. Free filing state taxes Double Taxation A mutual agreement procedure exists to settle cases of double taxation between the United States and the U. Free filing state taxes S. Free filing state taxes Virgin Islands. Free filing state taxes See Double Taxation in chapter 4. Free filing state taxes Prev  Up  Next   Home   More Online Publications