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Free Tax Act 2012

Irs Forms 1040Extension FormTurbotax 2006Free Tax Usa 2011Tax Planning Us 1040aFree E-file 1040ezIrs Electronic FilingFiling Taxes For FreeHow Do I Ammend My Tax ReturnHow Do I Amend My 2012 Tax Return OnlineH And R Block Free Tax PreparationTax Form For College StudentsFree 2011 Tax Return OnlineFree H&r Block TaxTurbotax Free State FilingIncome Tax Return Form 2012Free Tax Preparation SoftwareIrs Forms 1040ez 2011Doyourtaxes NetAmmend A Tax ReturnFree Federal Income Tax FilingFile State Tax Return Free Online1040ez 2011 PdfFile Your Taxes Free OnlineFederal Income Tax 1040ez OnlineFree EfileForm 1040xTurbotax 2011 OnlineIncome Tax Amendment FormMilitary Reserve Tax Deduction2011 Tax Form 10402012 Free Taxes1040ez 2012 InstructionsAmended ReturnIncome Tax 1040ez2012 State Income Tax FormsPrintable 2011 Tax Forms1040ez Instruction BookletWww Irs Gov VitaSample 1040x Filled Out

Free Tax Act 2012

Free tax act 2012 Index Symbols 10% owners, Ten-percent owners. Free tax act 2012 501(c) organizations, Foreign Governments and Certain Other Foreign Organizations 80/20 company, Dividends paid by a domestic corporation (an existing 80/20 company). Free tax act 2012 A Acceptance agent, Unexpected payment. Free tax act 2012 Accounts, offshore, Offshore accounts. Free tax act 2012 Alien Illegal, Illegal aliens. Free tax act 2012 Nonresident, Nonresident alien. Free tax act 2012 Resident, Resident alien. Free tax act 2012 Alimony, Pensions, Annuities, and Alimony (Income Code 14), Alimony payments. Free tax act 2012 Allocation information, Failure to provide allocation information. Free tax act 2012 American Samoa, U. Free tax act 2012 S. Free tax act 2012 Virgin Islands and American Samoa corporations. Free tax act 2012 Amount to withhold, Determination of amount to withhold. Free tax act 2012 Annuities, Pensions, Annuities, and Alimony (Income Code 14), Pensions and annuities. Free tax act 2012 Artists and athletes Earnings of, Artists and Athletes (Income Codes 42 and 43) Special events and promotions, Artists and Athletes (Income Codes 42 and 43) Assistance (see Tax help) Awards, Other Grants, Prizes, and Awards B Backup withholding, Withholding and Reporting Obligations, Primary NRA and Form 1099 responsibility assumed. Free tax act 2012 Banks, interest received by, Banks. Free tax act 2012 Beneficial owner, Beneficial Owners Bonds sold between interest dates, Sales of bonds between interest dates. Free tax act 2012 Branch profits tax, Corporation subject to branch profits tax. Free tax act 2012 C Canada, Exception 3. Free tax act 2012 , Deposit interest paid to nonresident alien individuals in 2012. Free tax act 2012 , Deposit interest paid to certain nonresident alien individuals in 2013. Free tax act 2012 Capital gains, Capital gains (Income Code 9). Free tax act 2012 Central withholding agreements, Income Code 43. Free tax act 2012 Consent dividends, Consent dividends. Free tax act 2012 , Consent dividends. Free tax act 2012 Contingent interest, Contingent interest. Free tax act 2012 Controlled foreign corporations, interest paid to, Controlled foreign corporations. Free tax act 2012 Controlling foreign corporations, Interest paid to controlling foreign corporations (Income Code 3). Free tax act 2012 Covenant not to compete, Covenant not to compete. Free tax act 2012 Crew members, Crew members. Free tax act 2012 D Dependent personal services, Pay for dependent personal services (Income Code 17). Free tax act 2012 Allowance for personal exemptions, Withholding exemptions. Free tax act 2012 Defined, Pay for dependent personal services (Income Code 17). Free tax act 2012 Exempt from withholding, Graduated rates. Free tax act 2012 Depositing taxes How to, Depositing Withheld Taxes When to, When Deposits Are Required Deposits, Interest on deposits (Income Code 29). Free tax act 2012 Disregarded entities, Disregarded entities. Free tax act 2012 Dividends Direct dividend rate, Dividends qualifying for direct dividend rate (Income Code 7). Free tax act 2012 Domestic corporation, Dividends paid by a domestic corporation (an existing 80/20 company). Free tax act 2012 Foreign corporations, Dividends paid by foreign corporations (Income Code 8). Free tax act 2012 In general, Dividends Documentary evidence, Documentary evidence. Free tax act 2012 , Documentary Evidence, Documentary evidence. Free tax act 2012 Documentation From foreign beneficial owners and U. Free tax act 2012 S. Free tax act 2012 payees, Documentation From foreign intermediaries and foreign flow-through entities, Foreign Intermediaries and Foreign Flow-Through Entities Presumptions in the absence of, Presumption Rules Qualified intermediaries, Documentation. Free tax act 2012 E Effectively connected income, Effectively Connected Income Defined, Effectively Connected Income Foreign partners, Partnership Withholding on Effectively Connected Income EFTPS, Electronic deposit requirement. Free tax act 2012 Electronic deposit rules, Electronic deposit requirement. Free tax act 2012 Employees, Employees. Free tax act 2012 , Employee. Free tax act 2012 Employer, Employer. Free tax act 2012 F Federal unemployment tax, Federal unemployment tax (FUTA). Free tax act 2012 Fellowship grants, Scholarships and Fellowship Grants (Income Code 15) Fellowship income, Scholarships, fellowships, and grants. Free tax act 2012 Financial institutions, Branches of financial institutions. Free tax act 2012 FIRPTA withholding, U. Free tax act 2012 S. Free tax act 2012 real property interest. Free tax act 2012 , U. Free tax act 2012 S. Free tax act 2012 Real Property Interest Fiscally transparent entity, Fiscally transparent entity. Free tax act 2012 Fixed or determinable annual or periodic income, Fixed or Determinable Annual or Periodical Income (FDAP) Flow-through entities, Flow-Through Entities, Nonqualified Intermediaries Foreign, Foreign partner. Free tax act 2012 501(c) organizations, Foreign Governments and Certain Other Foreign Organizations Bank, U. Free tax act 2012 S. Free tax act 2012 branches of foreign banks and foreign insurance companies. Free tax act 2012 , Income paid to U. Free tax act 2012 S. Free tax act 2012 branch of foreign bank or insurance company. Free tax act 2012 Charitable organizations, Other foreign organizations, associations, and charitable institutions. Free tax act 2012 Corporations, Foreign corporations. Free tax act 2012 Governments, Foreign Governments and Certain Other Foreign Organizations Insurance company, U. Free tax act 2012 S. Free tax act 2012 branches of foreign banks and foreign insurance companies. Free tax act 2012 , Income paid to U. Free tax act 2012 S. Free tax act 2012 branch of foreign bank or insurance company. Free tax act 2012 Intermediary, Foreign Intermediaries Organizations and associations, Other foreign organizations, associations, and charitable institutions. Free tax act 2012 Partner, Who Must Withhold Partnerships, nonwithholding, Foreign partnerships. Free tax act 2012 Person, Foreign Persons Private foundation, Foreign private foundations. Free tax act 2012 , Foreign Governments and Certain Other Foreign Organizations Status, Establishment of foreign status. Free tax act 2012 Trusts, Foreign simple and grantor trust. Free tax act 2012 Form 1042, Withholding and Reporting Obligations, Form 1042 filing. Free tax act 2012 , Responsibilities of WT. Free tax act 2012 , Form 1042. Free tax act 2012 1042-S, Withholding and Reporting Obligations, Form 1042-S reporting. Free tax act 2012 , Form 1042-S reporting. Free tax act 2012 , Form 1042 filing. Free tax act 2012 , Form 1042-S. Free tax act 2012 1099, Withholding and Reporting Obligations, Primary NRA and Form 1099 responsibility assumed. Free tax act 2012 1099-S, Form 1099-S, Proceeds From Real Estate Transactions. Free tax act 2012 4419, Electronic reporting. Free tax act 2012 7004, Extension to file Form 1042. Free tax act 2012 8233, Form 8233, Exemption From Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual. Free tax act 2012 8288, Reporting and Paying the Tax, Form 8288, U. Free tax act 2012 S. Free tax act 2012 Withholding Tax Return for Dispositions by Foreign Persons of U. Free tax act 2012 S. Free tax act 2012 Real Property Interests. Free tax act 2012 8288-A, Reporting and Paying the Tax, Form 8288-A, Statement of Withholding on Dispositions by Foreign Persons of U. Free tax act 2012 S. Free tax act 2012 Real Property Interests. Free tax act 2012 8288-B, Categories (1), (2), and (3). Free tax act 2012 8804, Form 8804, Annual Return for Partnership Withholding Tax (Section 1446). Free tax act 2012 8805, Form 8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax. Free tax act 2012 8813, Form 8813, Partnership Withholding Tax Payment Voucher (Section 1446). Free tax act 2012 8833, Claiming treaty benefits. Free tax act 2012 940, Federal unemployment tax (FUTA). Free tax act 2012 941, Reporting requirements for wages and withheld taxes paid to nonresident aliens. Free tax act 2012 972, Consent dividends. Free tax act 2012 SS-4, U. Free tax act 2012 S. Free tax act 2012 Taxpayer Identification Numbers SS-5, U. Free tax act 2012 S. Free tax act 2012 Taxpayer Identification Numbers W-2, Reporting requirements for wages and withheld taxes paid to nonresident aliens. Free tax act 2012 , Form W-2. Free tax act 2012 W-4, Alternate withholding procedure. Free tax act 2012 , Form W-4, Employee's Withholding Allowance Certificate. Free tax act 2012 , Withholding exemptions. Free tax act 2012 , Special instructions for Form W-4. Free tax act 2012 W-7, U. Free tax act 2012 S. Free tax act 2012 Taxpayer Identification Numbers W-8BEN, Beneficial Owners W-8ECI, Documentary evidence. Free tax act 2012 W-8EXP, 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 tax act 2012 W-8IMY, Foreign Intermediaries and Foreign Flow-Through Entities W-9, U. Free tax act 2012 S. Free tax act 2012 Taxpayer Identification Numbers Free tax services, How To Get Tax Help FUTA, Federal unemployment tax (FUTA). Free tax act 2012 G Gambling winnings, Gambling winnings (Income Code 28). Free tax act 2012 Graduated rates, Graduated rates. Free tax act 2012 Graduated withholding, Wages Paid to Employees— Graduated Withholding Grant income, Scholarships, fellowships, and grants. Free tax act 2012 Grants, Scholarships and Fellowship Grants (Income Code 15), Other Grants, Prizes, and Awards Green card test, Resident alien. Free tax act 2012 Guam, Guam or Northern Mariana Islands corporations. Free tax act 2012 H Help (see Tax help) I Identification number, taxpayer, U. Free tax act 2012 S. Free tax act 2012 Taxpayer Identification Numbers, Identification numbers. Free tax act 2012 Illegal aliens, Illegal aliens. Free tax act 2012 Important reminders, Reminders Income Fixed or determinable annual or periodical, Fixed or Determinable Annual or Periodical Income (FDAP) Interest, Interest Notional principal contract, Notional principal contract income. Free tax act 2012 Other than effectively connected, Income Not Effectively Connected Personal service, Personal service income. Free tax act 2012 Source of, Source of Income Transportation, Transportation income. Free tax act 2012 Income code 01, Interest paid by U. Free tax act 2012 S. Free tax act 2012 obligors—general (Income Code 1). Free tax act 2012 02, Interest on real property mortgages (Income Code 2). Free tax act 2012 03, Interest paid to controlling foreign corporations (Income Code 3). Free tax act 2012 04, Interest paid by foreign corporations (Income Code 4). Free tax act 2012 06, Dividends paid by U. Free tax act 2012 S. Free tax act 2012 corporations — general (Income Code 6). Free tax act 2012 07, Dividends qualifying for direct dividend rate (Income Code 7). Free tax act 2012 08, Dividends paid by foreign corporations (Income Code 8). Free tax act 2012 09, Capital gains (Income Code 9). Free tax act 2012 10, Industrial royalties (Income Code 10). Free tax act 2012 11, Motion picture or television copyright royalties (Income Code 11). Free tax act 2012 12, Other royalties (for example, copyright, recording, publishing) (Income Code 12). Free tax act 2012 13, Real Property Income and Natural Resources Royalties (Income Code 13) 14, Pensions, Annuities, and Alimony (Income Code 14) 15, Scholarships and Fellowship Grants (Income Code 15) 16, Pay for independent personal services (Income Code 16). Free tax act 2012 17, Pay for dependent personal services (Income Code 17). Free tax act 2012 18, Pay for teaching (Income Code 18). Free tax act 2012 19, Pay during studying and training (Income Code 19). Free tax act 2012 20, Artists and Athletes (Income Codes 42 and 43) 24, Reporting and Paying the Tax 25, Reporting and Paying the Tax 26, Reporting and Paying the Tax 27, Publicly Traded Partnerships 28, Gambling winnings (Income Code 28). Free tax act 2012 29, Interest on deposits (Income Code 29). Free tax act 2012 30, Original issue discount (Income Code 30). Free tax act 2012 50, Other income (Income Code 50). Free tax act 2012 Independent personal services Defined, Pay for independent personal services (Income Code 16). Free tax act 2012 Exempt from withholding, Pay for independent personal services (Income Code 16). Free tax act 2012 , 30% rate. Free tax act 2012 India, Students and business apprentices from India. Free tax act 2012 Indirect account holders, Indirect Account Holders Installment payment, Installment payments. Free tax act 2012 , Installment payments. Free tax act 2012 Insurance proceeds, Insurance proceeds. Free tax act 2012 Interest Contingent, Contingent interest. Free tax act 2012 Controlling foreign corporations, Interest paid to controlling foreign corporations (Income Code 3). Free tax act 2012 Deposits, Interest on deposits (Income Code 29). Free tax act 2012 Foreign business arrangements, Interest from foreign business arrangements. Free tax act 2012 Foreign corporations, Interest paid by foreign corporations (Income Code 4). Free tax act 2012 Income, Interest Portfolio, Portfolio interest. Free tax act 2012 , Interest that does not qualify as portfolio interest. Free tax act 2012 Real property mortgages, Interest on real property mortgages (Income Code 2). Free tax act 2012 Intermediary Foreign, Foreign Intermediaries Nonqualified, Nonqualified intermediary. Free tax act 2012 Qualified, Qualified intermediary. Free tax act 2012 , Qualified Intermediaries International organizations, Foreign Governments and Certain Other Foreign Organizations ITIN, U. Free tax act 2012 S. Free tax act 2012 Taxpayer Identification Numbers K Knowledge, standards of, Standards of Knowledge L Liability of withholding agent, Liability for tax. Free tax act 2012 M Magnetic media reporting, Electronic reporting. Free tax act 2012 Marketable securities, Marketable securities. Free tax act 2012 Mexico, Exception 3. Free tax act 2012 Missing children, Reminders More information (see Tax help) Mortgages, Interest on real property mortgages (Income Code 2). Free tax act 2012 N Non-registered obligations, Obligations not in registered form. Free tax act 2012 Nonqualified intermediary, Nonqualified intermediary. Free tax act 2012 , Nonqualified Intermediaries Nonresident alien Defined, Nonresident alien. Free tax act 2012 Married to U. Free tax act 2012 S. Free tax act 2012 citizen or resident, Married to U. Free tax act 2012 S. Free tax act 2012 citizen or resident alien. Free tax act 2012 Nonwage pay, Pay that is not wages. Free tax act 2012 Northern Mariana Islands, Guam or Northern Mariana Islands corporations. Free tax act 2012 Notional principal contract income, Notional principal contract income. Free tax act 2012 NRA withholding In general, Withholding of Tax Income subject to, Income Subject to NRA Withholding Persons subject to, Persons Subject to NRA Withholding O Obligations Registered, Obligations in registered form. Free tax act 2012 Obligations: Not in registered form, Obligations not in registered form. Free tax act 2012 Offshore accounts, Offshore accounts. Free tax act 2012 Original issue discount, Original issue discount (Income Code 30). Free tax act 2012 Overwithholding, adjustment for, Adjustment for Overwithholding P Partner, Foreign partner. Free tax act 2012 Partner, foreign, Who Must Withhold Partnerships Effectively connected income of foreign partners, Partnership Withholding on Effectively Connected Income Foreign, Foreign partnerships. Free tax act 2012 Publicly traded, Publicly Traded Partnerships Smaller, Smaller partnerships and trusts. Free tax act 2012 , Smaller partnerships and trusts. Free tax act 2012 , Smaller partnerships and trusts. Free tax act 2012 Withholding foreign, Withholding foreign partnership and foreign trust. Free tax act 2012 , Withholding Foreign Partnerships Pay for personal services Artists and athletes, Artists and Athletes (Income Codes 42 and 43) Dependent personal services, Pay for dependent personal services (Income Code 17). Free tax act 2012 Employees, Wages Paid to Employees— Graduated Withholding Exempt from withholding, Pay for Personal Services Performed Independent personal services, Pay for independent personal services (Income Code 16). Free tax act 2012 Salaries and wages, Wages Paid to Employees— Graduated Withholding Scholarship or fellowship recipient, Pay for services rendered. Free tax act 2012 Studying, Pay during studying and training (Income Code 19). Free tax act 2012 Teaching, Pay for teaching (Income Code 18). Free tax act 2012 Training, Pay during studying and training (Income Code 19). Free tax act 2012 Payee, Identifying the Payee Penalties Deposit, Penalty for failure to make deposits on time. Free tax act 2012 Form 1042, Penalties Form 8804, Penalties. Free tax act 2012 Form 8805, Penalties. Free tax act 2012 Magnetic media, Failure to file electronically. Free tax act 2012 Trust fund recovery, Trust fund recovery penalty. Free tax act 2012 Pensions, Pension payments. Free tax act 2012 , Pensions, Annuities, and Alimony (Income Code 14), Pensions and annuities. Free tax act 2012 Per diem, Per diem paid by the U. Free tax act 2012 S. Free tax act 2012 Government. Free tax act 2012 Personal service income, Personal service income. Free tax act 2012 Pooled withholding information, Pooled withholding information. Free tax act 2012 Portfolio interest, Portfolio interest. Free tax act 2012 , Interest that does not qualify as portfolio interest. Free tax act 2012 Presumption Corporation, Presumption Rules Individual, Presumption Rules Partnership, Presumption Rules Rules, Presumption Rules Trust, Presumption Rules Private foundation, foreign, Foreign private foundations. Free tax act 2012 Prizes, Other Grants, Prizes, and Awards Publications (see Tax help) Puerto Rico, Resident of a U. Free tax act 2012 S. Free tax act 2012 possession. Free tax act 2012 , Exception 4. Free tax act 2012 Q QI withholding agreement, QI withholding agreement. Free tax act 2012 Qualified intermediary, Qualified intermediary. Free tax act 2012 , Qualified Intermediaries Qualified investment entity (QIE) Distributions paid by, Qualified investment entities. Free tax act 2012 Dividends paid by, Dividends paid by U. Free tax act 2012 S. Free tax act 2012 corporations — general (Income Code 6). Free tax act 2012 R Racing purses, Racing purses. Free tax act 2012 Real property interest Disposition of, U. Free tax act 2012 S. Free tax act 2012 Real Property Interest Withholding certificates, Withholding Certificates Reason to know, Reason To Know Refund procedures Qualified intermediaries, Collective refund procedures. Free tax act 2012 Registered obligations, Obligations in registered form. Free tax act 2012 Researchers, Tax treaties. Free tax act 2012 Resident alien defined, Resident alien. Free tax act 2012 Returns required, Returns Required Royalties, Royalties, Real Property Income and Natural Resources Royalties (Income Code 13) Ryukyu Islands, Income from U. Free tax act 2012 S. Free tax act 2012 Savings Bonds of residents of the Ryukyu Islands or the Trust Territory of the Pacific Islands. Free tax act 2012 S Salaries, Wages Paid to Employees— Graduated Withholding Saving clause, Nonresident alien who becomes a resident alien. Free tax act 2012 Scholarship, Scholarships, fellowships, and grants. Free tax act 2012 , Scholarships and Fellowship Grants (Income Code 15) Securities, Marketable securities. Free tax act 2012 , Income from securities. Free tax act 2012 Services performed outside the U. Free tax act 2012 S. Free tax act 2012 , Services performed outside the United States. Free tax act 2012 Short-term obligation, Short-term obligations. Free tax act 2012 Social security, Social security and Medicare tax. Free tax act 2012 Source of income, Source of Income Standards of knowledge, Standards of Knowledge Substantial presence test, Resident alien. Free tax act 2012 T Tax Reporting and paying, Reporting and Paying the Tax Tax help, How To Get Tax Help Tax treaties Claiming benefits, Claiming treaty benefits. Free tax act 2012 Dependent personal services, Tax treaties. Free tax act 2012 Entertainers and athletes, Tax treaties. Free tax act 2012 Gains, Tax treaties. Free tax act 2012 Gambling winnings, Tax treaties. Free tax act 2012 Independent personal services, Tax treaties. Free tax act 2012 Student, Tax treaties. Free tax act 2012 Students and trainees, Tax treaties. Free tax act 2012 Tables, Tax Treaty Tables Teaching, Tax treaties. Free tax act 2012 Tax-exempt entities, Foreign Governments and Certain Other Foreign Organizations Taxpayer Advocate, Taxpayer Advocate Service. Free tax act 2012 Taxpayer identification number (TIN), U. Free tax act 2012 S. Free tax act 2012 Taxpayer Identification Numbers, Identification numbers. Free tax act 2012 Exceptions, Exceptions to TIN requirement. Free tax act 2012 Teachers, Pay for teaching (Income Code 18). Free tax act 2012 Ten-percent owners, Ten-percent owners. Free tax act 2012 Territorial limits, Territorial limits. Free tax act 2012 Totalization agreements, Social security and Medicare tax. Free tax act 2012 Transportation income, Transportation income. Free tax act 2012 Travel expenses, Travel expenses. Free tax act 2012 Trust Territory of the Pacific Islands, Income from U. Free tax act 2012 S. Free tax act 2012 Savings Bonds of residents of the Ryukyu Islands or the Trust Territory of the Pacific Islands. Free tax act 2012 Trusts Foreign, Foreign simple and grantor trust. Free tax act 2012 Smaller, Smaller partnerships and trusts. Free tax act 2012 Withholding foreign, Withholding foreign partnership and foreign trust. Free tax act 2012 , Withholding Foreign Trusts TTY/TDD information, How To Get Tax Help U U. Free tax act 2012 S. Free tax act 2012 agent of foreign person, U. Free tax act 2012 S. Free tax act 2012 agent of foreign person. Free tax act 2012 U. Free tax act 2012 S. Free tax act 2012 branch Foreign bank, U. Free tax act 2012 S. Free tax act 2012 branches of foreign banks and foreign insurance companies. Free tax act 2012 , Income paid to U. Free tax act 2012 S. Free tax act 2012 branch of foreign bank or insurance company. Free tax act 2012 Foreign insurance company, U. Free tax act 2012 S. Free tax act 2012 branches of foreign banks and foreign insurance companies. Free tax act 2012 , Income paid to U. Free tax act 2012 S. Free tax act 2012 branch of foreign bank or insurance company. Free tax act 2012 Foreign person, U. Free tax act 2012 S. Free tax act 2012 branches of foreign persons. Free tax act 2012 U. Free tax act 2012 S. Free tax act 2012 national, 30% rate. Free tax act 2012 U. Free tax act 2012 S. Free tax act 2012 real property interest, U. Free tax act 2012 S. Free tax act 2012 real property interest. Free tax act 2012 U. Free tax act 2012 S. Free tax act 2012 savings bonds, Income from U. Free tax act 2012 S. Free tax act 2012 Savings Bonds of residents of the Ryukyu Islands or the Trust Territory of the Pacific Islands. Free tax act 2012 U. Free tax act 2012 S. Free tax act 2012 territorial limits, Territorial limits. Free tax act 2012 U. Free tax act 2012 S. Free tax act 2012 Virgin Islands, U. Free tax act 2012 S. Free tax act 2012 Virgin Islands and American Samoa corporations. Free tax act 2012 Unexpected payment, Unexpected payment. Free tax act 2012 W Wages Paid to employees, Wages Paid to Employees— Graduated Withholding Pay that is not, Pay that is not wages. Free tax act 2012 When to withhold, When to withhold. Free tax act 2012 Withhold, amount to, Determination of amount to withhold. Free tax act 2012 Withhold, when to, When to withhold. Free tax act 2012 Withholding Agreements, QI withholding agreement. Free tax act 2012 , WP and WT withholding agreements. Free tax act 2012 , Withholding agreements. Free tax act 2012 , Income Code 43. Free tax act 2012 Alternative procedure, Alternative procedure. Free tax act 2012 Certificate, Withholding Certificates, Withholding certificate. Free tax act 2012 Rate pool, Pooled withholding information. Free tax act 2012 Real property, U. Free tax act 2012 S. Free tax act 2012 Real Property Interest Withholding agent Defined, Withholding Agent Liability, Liability for tax. Free tax act 2012 Returns required, Returns Required Tax deposit requirements, Depositing Withheld Taxes Withholding exemptions and reductions Dependent personal services, Graduated rates. Free tax act 2012 Exemption, Withholding exemption. Free tax act 2012 Final payment exemption, Final payment exemption. Free tax act 2012 Foreign governments, Foreign Governments and Certain Other Foreign Organizations International organizations, Foreign Governments and Certain Other Foreign Organizations Real property interest, Withholding Certificates Researchers, Tax treaties. Free tax act 2012 Scholarships and fellowship grants, Alternate withholding procedure. Free tax act 2012 Students, Tax treaties. Free tax act 2012 Withholding agreements, Withholding agreements. Free tax act 2012 , Income Code 43. Free tax act 2012 Prev  Up     Home   More Online Publications
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The Free Tax Act 2012

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