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

TurboTax Federal Free Edition - File Taxes Online

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

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


© 2012 - 2018 All rights reserved.

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

H And R Block Online

2009 Tax Forms 1040Free Efile For 2012 TaxesH And R Block 2012 Tax ReturnForm 1040ez 2013Filing 2011 Taxes LateE File State Tax Only For FreeTurbotax Premier Federal E File State 2010 Download Old VersionCan I File A 1040x OnlineFree Efile 1040ez1040 State Tax FormHow To File Your 2012 Tax ReturnState Income Tax Form 500ezCan I Efile My 2012 TaxesFederal 1040x InstructionsWhere Can I Get 2011 Tax Forms1040ez WorksheetE File 1040xHrblockfreefileRefile TaxesRefile 2012 TaxesFree TaxactTurbotax 1040ez FreeIrs Forms 2010 Form 1040Prior Year Tax ReturnsTaxact2012State Income Tax TablesWww Irs Gov FreefileH&rblockonlineFree Online State Tax FilingFile Your State Taxes Online For FreeIrs Gov FormsMilitary Filing TaxesHow To Amend 2012 TaxesAmended Tax Return More:label_amended_20tax_20return More:bizfinanceFree 2006 Tax Software2012 TaxFree Tax Form 1040ezTax Returns 2012E File 2012 Returns10 40 Easy

H And R Block Online

H and r block online 4. H and r block online   Reporting Gains and Losses Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Information Returns Schedule D and Form 8949Long and Short Term Net Gain or Loss Treatment of Capital Losses Capital Gains Tax Rates Form 4797Mark-to-market election. H and r block online Introduction This chapter explains how to report capital gains and losses and ordinary gains and losses from sales, exchanges, and other dispositions of property. H and r block online Although this discussion refers to Schedule D (Form 1040) and Form 8949, many of the rules discussed here also apply to taxpayers other than individuals. H and r block online However, the rules for property held for personal use usually will not apply to taxpayers other than individuals. H and r block online Topics - This chapter discusses: Information returns Schedule D (Form 1040) Form 4797 Form 8949 Useful Items - You may want to see: Publication 550 Investment Income and Expenses 537 Installment Sales Form (and Instructions) Schedule D (Form 1040) Capital Gains and Losses 1099-B Proceeds From Broker and Barter Exchange Transactions 1099-S Proceeds From Real Estate Transactions 4684 Casualties and Thefts 4797 Sales of Business Property 6252 Installment Sale Income 6781 Gains and Losses from Section 1256 Contracts and Straddles 8824 Like-Kind Exchanges 8949 Sales and Other Dispositions of Capital Assets See chapter 5 for information about getting publications and forms. H and r block online Information Returns If you sell or exchange certain assets, you should receive an information return showing the proceeds of the sale. H and r block online This information is also provided to the IRS. H and r block online Form 1099-B. H and r block online   If you sold property, such as stocks, bonds, or certain commodities, through a broker, you should receive Form 1099-B, Proceeds From Broker and Barter Exchange Transactions, or a substitute statement from the broker. H and r block online Use the Form 1099-B or a substitute statement to complete Form 8949 and/or Schedule D. H and r block online Whether or not you receive 1099-B, you must report all taxable sales of stock, bonds, commodities, etc. H and r block online on Form 8949 and/or Schedule D, as applicable. H and r block online For more information on figuring gains and losses from these transactions, see chapter 4 in Publication 550. H and r block online For information on reporting the gains and losses, see the Instructions for Form 8949 and the Instructions for Schedule D (Form 1040). H and r block online Form 1099-S. H and r block online   An information return must be provided on certain real estate transactions. H and r block online Generally, the person responsible for closing the transaction (the “real estate reporting person”) must report on Form 1099-S sales or exchanges of the following types of property. H and r block online Land (improved or unimproved), including air space. H and r block online An inherently permanent structure, including any residential, commercial, or industrial building. H and r block online A condominium unit and its related fixtures and common elements (including land). H and r block online Stock in a cooperative housing corporation. H and r block online If you sold or exchanged any of the above types of property, the “real estate reporting person” must give you a copy of Form 1099-S or a statement containing the same information as the Form 1099-S. H and r block online The “real estate reporting person” could include the buyer's attorney, your attorney, the title or escrow company, a mortgage lender, your broker, the buyer's broker, or the person acquiring the biggest interest in the property. H and r block online   For more information see chapter 4 in Publication 550. H and r block online Also, see the Instructions for Form 8949. H and r block online Schedule D and Form 8949 Form 8949. H and r block online   Individuals, corporations, and partnerships, use Form 8949 to report the following. H and r block online    Sales or exchanges of capital assets, including stocks, bonds, etc. H and r block online , and real estate (if not reported on another form or schedule such as Form 4684, 4797, 6252, 6781, or 8824). H and r block online Include these transactions even if you did not receive a Form 1099-B or 1099-S. H and r block online Gains from involuntary conversions (other than from casualty or theft) of capital assets not held for business or profit. H and r block online Nonbusiness bad debts. H and r block online   Individuals, If you are filing a joint return, complete as many copies of Form 8949 as you need to report all of your and your spouse's transactions. H and r block online You and your spouse may list your transactions on separate forms or you may combine them. H and r block online However, you must include on your Schedule D the totals from all Forms 8949 for both you and your spouse. H and r block online    Corporations and electing large partnerships also use Form 8949 to report their share of gain or loss from a partnership, S Corporation, estate or trust. H and r block online   Business entities meeting certain criteria, may have an exception to some of the normal requirements for completing Form 8949. H and r block online See the Instructions for Form 8949. H and r block online Schedule D. H and r block online    Use Schedule D (Form 1040) to figure the overall gain or loss from transactions reported on Form 8949, and to report certain transactions you do not have to report on Form 8949. H and r block online Before completing Schedule D, you may have to complete other forms as shown below. H and r block online    Complete all applicable lines of Form 8949 before completing lines 1b, 2, 3, 8b, 9, or 10 of your applicable Schedule D. H and r block online Enter on Schedule D the combined totals from all your Forms 8949. H and r block online For a sale, exchange, or involuntary conversion of business property, complete Form 4797 (discussed later). H and r block online For a like-kind exchange, complete Form 8824. H and r block online See Reporting the exchange under Like-Kind Exchanges in chapter 1. H and r block online For an installment sale, complete Form 6252. H and r block online See Publication 537. H and r block online For an involuntary conversion due to casualty or theft, complete Form 4684. H and r block online See Publication 547, Casualties, Disasters, and Thefts. H and r block online For a disposition of an interest in, or property used in, an activity to which the at-risk rules apply, complete Form 6198, At-Risk Limitations. H and r block online See Publication 925, Passive Activity and At-Risk Rules. H and r block online For a disposition of an interest in, or property used in, a passive activity, complete Form 8582, Passive Activity Loss Limitations. H and r block online See Publication 925. H and r block online For gains and losses from section 1256 contracts and straddles, complete Form 6781. H and r block online See Publication 550. H and r block online Personal-use property. H and r block online   Report gain on the sale or exchange of property held for personal use (such as your home) on Form 8949 and Schedule D (Form 1040), as applicable. H and r block online Loss from the sale or exchange of property held for personal use is not deductible. H and r block online But if you had a loss from the sale or exchange of real estate held for personal use for which you received a Form 1099-S, report the transaction on Form 8949 and Schedule D, even though the loss is not deductible. H and r block online See the Instructions for Schedule D (Form 1040) and the Instructions for Form 8949 for information on how to report the transaction. H and r block online Long and Short Term Where you report a capital gain or loss depends on how long you own the asset before you sell or exchange it. H and r block online The time you own an asset before disposing of it is the holding period. H and r block online If you received a Form 1099-B, (or substitute statement) box 1c may help you determine whether the gain or loss is short-term or long-term. H and r block online If you hold a capital asset 1 year or less, the gain or loss from its disposition is short term. H and r block online Report it in Part I of Form 8949 and/or Schedule D, as applicable. H and r block online If you hold a capital asset longer than 1 year, the gain or loss from its disposition is long term. H and r block online Report it in Part II of Form 8949 and/or Schedule D, as applicable. H and r block online   Table 4-1. H and r block online Do I Have a Short-Term or Long-Term Gain or Loss? IF you hold the property. H and r block online . H and r block online . H and r block online  THEN you have a. H and r block online . H and r block online . H and r block online 1 year or less, Short-term capital gain or  loss. H and r block online More than 1 year, Long-term capital gain or  loss. H and r block online These distinctions are essential to correctly arrive at your net capital gain or loss. H and r block online Capital losses are allowed in full against capital gains plus up to $3,000 of ordinary income. H and r block online See Capital Gains Tax Rates, later. H and r block online Holding period. H and r block online   To figure if you held property longer than 1 year, start counting on the day following the day you acquired the property. H and r block online The day you disposed of the property is part of your holding period. H and r block online Example. H and r block online If you bought an asset on June 19, 2012, you should start counting on June 20, 2012. H and r block online If you sold the asset on June 19, 2013, your holding period is not longer than 1 year, but if you sold it on June 20, 2013, your holding period is longer than 1 year. H and r block online Patent property. H and r block online   If you dispose of patent property, you generally are considered to have held the property longer than 1 year, no matter how long you actually held it. H and r block online For more information, see Patents in chapter 2. H and r block online Inherited property. H and r block online   If you inherit property, you are considered to have held the property longer than 1 year, regardless of how long you actually held it. H and r block online Installment sale. H and r block online   The gain from an installment sale of an asset qualifying for long-term capital gain treatment in the year of sale continues to be long term in later tax years. H and r block online If it is short term in the year of sale, it continues to be short term when payments are received in later tax years. H and r block online    The date the installment payment is received determines the capital gains rate that should be applied not the date the asset was sold under an installment contract. H and r block online Nontaxable exchange. H and r block online   If you acquire an asset in exchange for another asset and your basis for the new asset is figured, in whole or in part, by using your basis in the old property, the holding period of the new property includes the holding period of the old property. H and r block online That is, it begins on the same day as your holding period for the old property. H and r block online Example. H and r block online You bought machinery on December 4, 2012. H and r block online On June 4, 2013, you traded this machinery for other machinery in a nontaxable exchange. H and r block online On December 5, 2013, you sold the machinery you got in the exchange. H and r block online Your holding period for this machinery began on December 5, 2012. H and r block online Therefore, you held it longer than 1 year. H and r block online Corporate liquidation. H and r block online   The holding period for property you receive in a liquidation generally starts on the day after you receive it if gain or loss is recognized. H and r block online Profit-sharing plan. H and r block online   The holding period of common stock withdrawn from a qualified contributory profit-sharing plan begins on the day following the day the plan trustee delivered the stock to the transfer agent with instructions to reissue the stock in your name. H and r block online Gift. H and r block online   If you receive a gift of property and your basis in it is figured using the donor's basis, your holding period includes the donor's holding period. H and r block online For more information on basis, see Publication 551, Basis of Assets. H and r block online Real property. H and r block online   To figure how long you held real property, start counting on the day after you received title to it or, if earlier, the day after you took possession of it and assumed the burdens and privileges of ownership. H and r block online   However, taking possession of real property under an option agreement is not enough to start the holding period. H and r block online The holding period cannot start until there is an actual contract of sale. H and r block online The holding period of the seller cannot end before that time. H and r block online Repossession. H and r block online   If you sell real property but keep a security interest in it and then later repossess it, your holding period for a later sale includes the period you held the property before the original sale, as well as the period after the repossession. H and r block online Your holding period does not include the time between the original sale and the repossession. H and r block online That is, it does not include the period during which the first buyer held the property. H and r block online Nonbusiness bad debts. H and r block online   Nonbusiness bad debts are short-term capital losses. H and r block online For information on nonbusiness bad debts, see chapter 4 of Publication 550. H and r block online    Net Gain or Loss The totals for short-term capital gains and losses and the totals for long-term capital gains and losses must be figured separately. H and r block online Net short-term capital gain or loss. H and r block online   Combine your short-term capital gains and losses, including your share of short-term capital gains or losses from partnerships, S corporations, and fiduciaries and any short-term capital loss carryover. H and r block online Do this by adding all your short-term capital gains. H and r block online Then add all your short-term capital losses. H and r block online Subtract the lesser total from the other. H and r block online The result is your net short-term capital gain or loss. H and r block online Net long-term capital gain or loss. H and r block online   Follow the same steps to combine your long-term capital gains and losses. H and r block online Include the following items. H and r block online Net section 1231 gain from Part I, Form 4797, after any adjustment for nonrecaptured section 1231 losses from prior tax years. H and r block online Capital gain distributions from regulated investment companies (mutual funds) and real estate investment trusts. H and r block online Your share of long-term capital gains or losses from partnerships, S corporations, and fiduciaries. H and r block online Any long-term capital loss carryover. H and r block online The result from combining these items with other long-term capital gains and losses is your net long-term capital gain or loss. H and r block online Net gain. H and r block online   If the total of your capital gains is more than the total of your capital losses, the difference is taxable. H and r block online Different tax rates may apply to the part that is a net capital gain. H and r block online See Capital Gains Tax Rates, later. H and r block online Net loss. H and r block online   If the total of your capital losses is more than the total of your capital gains, the difference is deductible. H and r block online But there are limits on how much loss you can deduct and when you can deduct it. H and r block online See Treatment of Capital Losses, next. H and r block online    Treatment of Capital Losses If your capital losses are more than your capital gains, you can deduct the difference as a capital loss deduction even if you do not have ordinary income to offset it. H and r block online The yearly limit on the amount of the capital loss you can deduct is $3,000 ($1,500 if you are married and file a separate return). H and r block online Table 4-2. H and r block online Holding Period for Different Types of Acquisitions Type of acquisition: When your holding period starts: Stocks and bonds bought on a securities market Day after trading date you bought security. H and r block online Ends on trading date you sold security. H and r block online U. H and r block online S. H and r block online Treasury notes and bonds If bought at auction, day after notification of bid acceptance. H and r block online If bought through subscription, day after subscription was submitted. H and r block online Nontaxable exchanges Day after date you acquired old property. H and r block online Gift If your basis is giver's adjusted basis, same day as giver's holding period began. H and r block online If your basis is FMV, day after date of gift. H and r block online Real property bought Generally, day after date you received title to the property. H and r block online Real property repossessed Day after date you originally received title to the property, but does not include time between the original sale and date of repossession. H and r block online Capital loss carryover. H and r block online   Generally, you have a capital loss carryover if either of the following situations applies to you. H and r block online Your net loss is more than the yearly limit. H and r block online Your taxable income without your deduction for exemptions is less than zero. H and r block online If either of these situations applies to you for 2013, see Capital Losses under Reporting Capital Gains and Losses in chapter 4 of Publication 550 to figure the amount you can carryover to 2014. H and r block online Example. H and r block online Bob and Gloria Sampson sold property in 2013. H and r block online The sale resulted in a capital loss of $7,000. H and r block online The Sampsons had no other capital transactions. H and r block online On their joint 2013 return, the Sampsons deduct $3,000, the yearly limit. H and r block online They had taxable income of $2,000. H and r block online The unused part of the loss, $4,000 ($7,000 − $3,000), is carried over to 2014. H and r block online If the Sampsons' capital loss had been $2,000, it would not have been more than the yearly limit. H and r block online Their capital loss deduction would have been $2,000. H and r block online They would have no carryover to 2014. H and r block online Short-term and long-term losses. H and r block online   When you carry over a loss, it retains its original character as either long term or short term. H and r block online A short-term loss you carry over to the next tax year is added to short-term losses occurring in that year. H and r block online A long-term loss you carry over to the next tax year is added to long-term losses occurring in that year. H and r block online A long-term capital loss you carry over to the next year reduces that year's long-term gains before its short-term gains. H and r block online   If you have both short-term and long-term losses, your short-term losses are used first against your allowable capital loss deduction. H and r block online If, after using your short-term losses, you have not reached the limit on the capital loss deduction, use your long-term losses until you reach the limit. H and r block online To figure your capital loss carryover from 2013 to 2014 use the Capital Loss Carryover Worksheet in the 2013 Instructions for Schedule D (Form 1040). H and r block online Joint and separate returns. H and r block online   On a joint return, the capital gains and losses of spouses are figured as the gains and losses of an individual. H and r block online If you are married and filing a separate return, your yearly capital loss deduction is limited to $1,500. H and r block online Neither you nor your spouse can deduct any part of the other's loss. H and r block online   If you and your spouse once filed separate returns and are now filing a joint return, combine your separate capital loss carryovers. H and r block online However, if you and your spouse once filed jointly and are now filing separately, any capital loss carryover from the joint return can be deducted only on the return of the spouse who actually had the loss. H and r block online Death of taxpayer. H and r block online   Capital losses cannot be carried over after a taxpayer's death. H and r block online They are deductible only on the final income tax return filed on the decedent's behalf. H and r block online The yearly limit discussed earlier still applies in this situation. H and r block online Even if the loss is greater than the limit, the decedent's estate cannot deduct the difference or carry it over to following years. H and r block online Corporations. H and r block online   A corporation can deduct capital losses only up to the amount of its capital gains. H and r block online In other words, if a corporation has a net capital loss, it cannot be deducted in the current tax year. H and r block online It must be carried to other tax years and deducted from capital gains occurring in those years. H and r block online For more information, see Publication 542. H and r block online Capital Gains Tax Rates The tax rates that apply to a net capital gain are generally lower than the tax rates that apply to other income. H and r block online These lower rates are called the maximum capital gains rates. H and r block online The term “net capital gain” means the amount by which your net long-term capital gain for the year is more than your net short-term capital loss. H and r block online For 2013, the maximum tax rates for individuals are 0%, 15%, 20%, 25%, and 28%. H and r block online Also, individuals, use the Qualified Dividends and Capital Gain Worksheet in the Instructions for Form 1040, or the Schedule D Tax Computation Worksheet in the Instructions for Schedule D (Form 1040) (whichever applies) to figure your tax if you have qualified dividends or net capital gain. H and r block online For more information, see chapter 4 of Publication 550. H and r block online Also see the Instructions for Schedule D (Form 1040). H and r block online Unrecaptured section 1250 gain. H and r block online   Generally, this is the part of any long-term capital gain on section 1250 property (real property) that is due to depreciation. H and r block online Unrecaptured section 1250 gain cannot be more than the net section 1231 gain or include any gain otherwise treated as ordinary income. H and r block online Use the worksheet in the Schedule D instructions to figure your unrecaptured section 1250 gain. H and r block online For more information about section 1250 property and net section 1231 gain, see chapter 3. H and r block online Form 4797 Use Form 4797 to report: The sale or exchange of: Property used in your trade or business; Depreciable and amortizable property; Oil, gas, geothermal, or other mineral properties; and Section 126 property. H and r block online The involuntary conversion (from other than casualty or theft) of property used in your trade or business and capital assets held in connection with a trade or business or a transaction entered into for profit. H and r block online The disposition of noncapital assets (other than inventory or property held primarily for sale to customers in the ordinary course of your trade or business). H and r block online The disposition of capital assets not reported on Schedule D. H and r block online The gain or loss (including any related recapture) for partners and S corporation shareholders from certain section 179 property dispositions by partnerships (other than electing large partnerships) and S corporations. H and r block online The computation of recapture amounts under sections 179 and 280F(b)(2) when the business use of section 179 or listed property decreases to 50% or less. H and r block online Gains or losses treated as ordinary gains or losses, if you are a trader in securities or commodities and made a mark-to-market election under Internal Revenue Code section 475(f). H and r block online You can use Form 4797 with Form 1040, 1065, 1120, or 1120S. H and r block online Section 1231 gains and losses. H and r block online   Show any section 1231 gains and losses in Part I. H and r block online Carry a net gain to Schedule D (Form 1040) as a long-term capital gain. H and r block online Carry a net loss to Part II of Form 4797 as an ordinary loss. H and r block online   If you had any nonrecaptured net section 1231 losses from the preceding 5 tax years, reduce your net gain by those losses and report the amount of the reduction as an ordinary gain in Part II. H and r block online Report any remaining gain on Schedule D (Form 1040). H and r block online See Section 1231 Gains and Losses in chapter 3. H and r block online Ordinary gains and losses. H and r block online   Show any ordinary gains and losses in Part II. H and r block online This includes a net loss or a recapture of losses from prior years figured in Part I of Form 4797. H and r block online It also includes ordinary gain figured in Part III. H and r block online Mark-to-market election. H and r block online   If you made a mark-to-market election, you should report all gains and losses from trading as ordinary gains and losses in Part II of Form 4797, instead of as capital gains and losses on Form 8949 and Schedule D (Form 1040). H and r block online See the Instructions for Form 4797. H and r block online Also see Special Rules for Traders in Securities, in chapter 4 of Publication 550. H and r block online Ordinary income from depreciation. H and r block online   Figure the ordinary income from depreciation on personal property and additional depreciation on real property (as discussed in chapter 3) in Part III. H and r block online Carry the ordinary income to Part II of Form 4797 as an ordinary gain. H and r block online Carry any remaining gain to Part I as section 1231 gain, unless it is from a casualty or theft. H and r block online Carry any remaining gain from a casualty or theft to Form 4684. H and r block online Prev  Up  Next   Home   More Online Publications
Español

The H And R Block Online

H and r block online 1. H and r block online   Nonresident Alien or Resident Alien? Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Nonresident Aliens Resident AliensGreen Card Test Substantial Presence Test Effect of Tax Treaties Dual-Status AliensFirst Year of Residency Choosing Resident Alien Status Last Year of Residency Nonresident Spouse Treated as a ResidentHow To Make the Choice Aliens From American Samoa or Puerto Rico Introduction You should first determine whether, for income tax purposes, you are a nonresident alien or a resident alien. H and r block online If you are both a nonresident and resident in the same year, you have a dual status. H and r block online Dual status is explained later. H and r block online Also explained later are a choice to treat your nonresident spouse as a resident and some other special situations. H and r block online Topics - This chapter discusses: How to determine if you are a nonresident, resident, or dual-status alien, and How to treat a nonresident spouse as a resident alien. H and r block online Useful Items - You may want to see: Form (and Instructions) 1040 U. H and r block online S. H and r block online Individual Income Tax Return 1040A U. H and r block online S. H and r block online Individual Income Tax Return 1040NR U. H and r block online S. H and r block online Nonresident Alien Income Tax Return 8833 Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b) 8840 Closer Connection Exception Statement for Aliens 8843 Statement for Exempt Individuals and Individuals With a Medical Condition See chapter 12 for information about getting these forms. H and r block online Nonresident Aliens If you are an alien (not a U. H and r block online S. H and r block online citizen), you are considered a nonresident alien unless you meet one of the two tests described next under Resident Aliens. H and r block online Resident Aliens You are a resident alien of the United States for tax purposes if you meet either the green card test or the substantial presence test for calendar year 2013 (January 1–December 31). H and r block online Even if you do not meet either of these tests, you may be able to choose to be treated as a U. H and r block online S. H and r block online resident for part of the year. H and r block online See First-Year Choice under Dual-Status Aliens, later. H and r block online Green Card Test You are a resident for tax purposes if you are a lawful permanent resident of the United States at any time during calendar year 2013. H and r block online (However, see Dual-Status Aliens , later. H and r block online ) This is known as the “green card” test. H and r block online You are a lawful permanent resident of the United States at any time if you have been given the privilege, according to the immigration laws, of residing permanently in the United States as an immigrant. H and r block online You generally have this status if the U. H and r block online S. H and r block online Citizenship and Immigration Services (USCIS) (or its predecessor organization) has issued you an alien registration card, also known as a “green card. H and r block online ” You continue to have resident status under this test unless the status is taken away from you or is administratively or judicially determined to have been abandoned. H and r block online Resident status taken away. H and r block online   Resident status is considered to have been taken away from you if the U. H and r block online S. H and r block online government issues you a final administrative or judicial order of exclusion or deportation. H and r block online A final judicial order is an order that you may no longer appeal to a higher court of competent jurisdiction. H and r block online Resident status abandoned. H and r block online   An administrative or judicial determination of abandonment of resident status may be initiated by you, the USCIS, or a U. H and r block online S. H and r block online consular officer. H and r block online    If you initiate the determination, your resident status is considered to be abandoned when you file either of the following with the USCIS or U. H and r block online S. H and r block online consular officer. H and r block online Your application for abandonment. H and r block online Your Alien Registration Receipt Card attached to a letter stating your intent to abandon your resident status. H and r block online You must file the letter by certified mail, return receipt requested. H and r block online You must keep a copy of the letter and proof that it was mailed and received. H and r block online    Until you have proof your letter was received, you remain a resident alien for tax purposes even if the USCIS would not recognize the validity of your green card because it is more than ten years old or because you have been absent from the United States for a period of time. H and r block online   If the USCIS or U. H and r block online S. H and r block online consular officer initiates this determination, your resident status will be considered to be abandoned when the final administrative order of abandonment is issued. H and r block online If you are granted an appeal to a federal court of competent jurisdiction, a final judicial order is required. H and r block online   Under U. H and r block online S. H and r block online immigration law, a lawful permanent resident who is required to file a tax return as a resident and fails to do so may be regarded as having abandoned status and may lose permanent resident status. H and r block online    A long-term resident who ceases to be a lawful permanent resident may be subject to special reporting requirements and tax provisions. H and r block online See Expatriation Tax in chapter 4. H and r block online Termination of residency after June 3, 2004, and before June 17, 2008. H and r block online   If you terminated your residency after June 3, 2004, and before June 17, 2008, you will still be considered a U. H and r block online S. H and r block online resident for tax purposes until you notify the Secretary of Homeland Security and file Form 8854, Initial and Annual Expatriation Statement. H and r block online Termination of residency after June 16, 2008. H and r block online   For information on your residency termination date, see Former long-term resident under Expatriation After June 16, 2008, in chapter 4. H and r block online Substantial Presence Test You will be considered a U. H and r block online S. H and r block online resident for tax purposes if you meet the substantial presence test for calendar year 2013. H and r block online To meet this test, you must be physically present in the United States on at least: 31 days during 2013, and 183 days during the 3-year period that includes 2013, 2012, and 2011, counting: All the days you were present in 2013, and 1/3 of the days you were present in 2012, and 1/6 of the days you were present in 2011. H and r block online Example. H and r block online You were physically present in the United States on 120 days in each of the years 2011, 2012, and 2013. H and r block online To determine if you meet the substantial presence test for 2013, count the full 120 days of presence in 2013, 40 days in 2012 (1/3 of 120), and 20 days in 2011 (1/6 of 120). H and r block online Because the total for the 3-year period is 180 days, you are not considered a resident under the substantial presence test for 2013. H and r block online The term United States includes the following areas. H and r block online All 50 states and the District of Columbia. H and r block online The territorial waters of the United States. H and r block online The seabed and subsoil of those submarine areas that are adjacent to U. H and r block online S. H and r block online territorial waters and over which the United States has exclusive rights under international law to explore and exploit natural resources. H and r block online The term does not include U. H and r block online S. H and r block online possessions and territories or U. H and r block online S. H and r block online airspace. H and r block online Days of Presence in the United States You are treated as present in the United States on any day you are physically present in the country at any time during the day. H and r block online However, there are exceptions to this rule. H and r block online Do not count the following as days of presence in the United States for the substantial presence test. H and r block online Days you commute to work in the United States from a residence in Canada or Mexico if you regularly commute from Canada or Mexico. H and r block online Days you are in the United States for less than 24 hours when you are in transit between two places outside the United States. H and r block online Days you are in the United States as a crew member of a foreign vessel. H and r block online Days you are unable to leave the United States because of a medical condition that arose while you are in the United States. H and r block online Days you are an exempt individual. H and r block online The specific rules that apply to each of these categories are discussed next. H and r block online Regular commuters from Canada or Mexico. H and r block online   Do not count the days on which you commute to work in the United States from your residence in Canada or Mexico if you regularly commute from Canada or Mexico. H and r block online You are considered to commute regularly if you commute to work in the United States on more than 75% of the workdays during your working period. H and r block online   For this purpose, “commute” means to travel to work and return to your residence within a 24-hour period. H and r block online “Workdays” are the days on which you work in the United States or Canada or Mexico. H and r block online “Working period” means the period beginning with the first day in the current year on which you are physically present in the United States to work and ending on the last day in the current year on which you are physically present in the United States to work. H and r block online If your work requires you to be present in the United States only on a seasonal or cyclical basis, your working period begins on the first day of the season or cycle on which you are present in the United States to work and ends on the last day of the season or cycle on which you are present in the United States to work. H and r block online You can have more than one working period in a calendar year, and your working period can begin in one calendar year and end in the following calendar year. H and r block online Example. H and r block online Maria Perez lives in Mexico and works for Compañía ABC in its office in Mexico. H and r block online She was assigned to her firm's office in the United States from February 1 through June 1. H and r block online On June 2, she resumed her employment in Mexico. H and r block online On 69 days, Maria commuted each morning from her home in Mexico to work in Compañía ABC's U. H and r block online S. H and r block online office. H and r block online She returned to her home in Mexico on each of those evenings. H and r block online On 7 days, she worked in her firm's Mexico office. H and r block online For purposes of the substantial presence test, Maria does not count the days she commuted to work in the United States because those days equal more than 75% of the workdays during the working period (69 workdays in the United States divided by 76 workdays in the working period equals 90. H and r block online 8%). H and r block online Days in transit. H and r block online   Do not count the days you are in the United States for less than 24 hours and you are in transit between two places outside the United States. H and r block online You are considered to be in transit if you engage in activities that are substantially related to completing travel to your foreign destination. H and r block online For example, if you travel between airports in the United States to change planes en route to your foreign destination, you are considered to be in transit. H and r block online However, you are not considered to be in transit if you attend a business meeting while in the United States. H and r block online This is true even if the meeting is held at the airport. H and r block online Crew members. H and r block online   Do not count the days you are temporarily present in the United States as a regular crew member of a foreign vessel (boat or ship) engaged in transportation between the United States and a foreign country or a U. H and r block online S. H and r block online possession. H and r block online However, this exception does not apply if you otherwise engage in any trade or business in the United States on those days. H and r block online Medical condition. H and r block online   Do not count the days you intended to leave, but could not leave the United States because of a medical condition or problem that arose while you were in the United States. H and r block online Whether you intended to leave the United States on a particular day is determined based on all the facts and circumstances. H and r block online For example, you may be able to establish that you intended to leave if your purpose for visiting the United States could be accomplished during a period that is not long enough to qualify you for the substantial presence test. H and r block online However, if you need an extended period of time to accomplish the purpose of your visit and that period would qualify you for the substantial presence test, you would not be able to establish an intent to leave the United States before the end of that extended period. H and r block online   In the case of an individual who is judged mentally incompetent, proof of intent to leave the United States can be determined by analyzing the individual's pattern of behavior before he or she was judged mentally incompetent. H and r block online   If you qualify to exclude days of presence because of a medical condition, you must file a fully completed Form 8843 with the IRS. H and r block online See Form 8843 , later. H and r block online   You cannot exclude any days of presence in the United States under the following circumstances. H and r block online You were initially prevented from leaving, were then able to leave, but remained in the United States beyond a reasonable period for making arrangements to leave. H and r block online You returned to the United States for treatment of a medical condition that arose during a prior stay. H and r block online The condition existed before your arrival in the United States and you were aware of the condition. H and r block online It does not matter whether you needed treatment for the condition when you entered the United States. H and r block online Exempt individual. H and r block online   Do not count days for which you are an exempt individual. H and r block online The term “exempt individual” does not refer to someone exempt from U. H and r block online S. H and r block online tax, but to anyone in the following categories. H and r block online An individual temporarily present in the United States as a foreign government-related individual under an “A” or “G” visa. H and r block online A teacher or trainee temporarily present in the United States under a “J” or “Q” visa, who substantially complies with the requirements of the visa. H and r block online A student temporarily present in the United States under an “F,” “J,” “M,” or “Q” visa, who substantially complies with the requirements of the visa. H and r block online A professional athlete temporarily in the United States to compete in a charitable sports event. H and r block online   The specific rules for each of these four categories (including any rules on the length of time you will be an exempt individual) are discussed next. H and r block online Foreign government-related individuals. H and r block online   A foreign government-related individual is an individual (or a member of the individual's immediate family) who is temporarily present in the United States: As a full-time employee of an international organization, By reason of diplomatic status, or By reason of a visa (other than a visa that grants lawful permanent residence) that the Secretary of the Treasury determines represents full-time diplomatic or consular status. H and r block online Note. H and r block online You are considered temporarily present in the United States regardless of the actual amount of time you are present in the United States. H and r block online    An international organization is any public international organization that the President of the United States has designated by Executive Order as being entitled to the privileges, exemptions, and immunities provided for in the International Organizations Act. H and r block online An individual is a full-time employee if his or her work schedule meets the organization's standard full-time work schedule. H and r block online   An individual is considered to have full-time diplomatic or consular status if he or she: Has been accredited by a foreign government that is recognized by the United States, Intends to engage primarily in official activities for that foreign government while in the United States, and Has been recognized by the President, Secretary of State, or a consular officer as being entitled to that status. H and r block online Note. H and r block online If you are present in the United States under an “A” or “G” visa you are considered a foreign government-related individual (with full-time diplomatic or consular status). H and r block online None of your days count for purposes of the substantial presence test. H and r block online   Members of the immediate family include the individual's spouse and unmarried children (whether by blood or adoption) but only if the spouse's or unmarried children's visa statuses are derived from and dependent on the exempt individual's visa classification. H and r block online Unmarried children are included only if they: Are under 21 years of age, Reside regularly in the exempt individual's household, and Are not members of another household. H and r block online Teachers and trainees. H and r block online   A teacher or trainee is an individual, other than a student, who is temporarily in the United States under a “J” or “Q” visa and substantially complies with the requirements of that visa. H and r block online You are considered to have substantially complied with the visa requirements if you have not engaged in activities that are prohibited by U. H and r block online S. H and r block online immigration laws and could result in the loss of your visa status. H and r block online   Also included are immediate family members of exempt teachers and trainees. H and r block online See the definition of immediate family, earlier, under Foreign government-related individuals . H and r block online   You will not be an exempt individual as a teacher or trainee in 2013 if you were exempt as a teacher, trainee, or student for any part of 2 of the 6 preceding calendar years. H and r block online However, you will be an exempt individual if all of the following conditions are met. H and r block online You were exempt as a teacher, trainee, or student for any part of 3 (or fewer) of the 6 preceding calendar years, A foreign employer paid all of your compensation during 2013, and A foreign employer paid all of your compensation during each of the preceding 6 years you were present in the United States as a teacher or trainee. H and r block online A foreign employer includes an office or place of business of an American entity in a foreign country or a U. H and r block online S. H and r block online possession. H and r block online   If you qualify to exclude days of presence as a teacher or trainee, you must file a fully completed Form 8843 with the IRS. H and r block online See Form 8843 , later. H and r block online Example. H and r block online Carla was temporarily in the United States during the year as a teacher on a “J” visa. H and r block online Her compensation for the year was paid by a foreign employer. H and r block online Carla was treated as an exempt teacher for the previous 2 years but her compensation was not paid by a foreign employer. H and r block online She will not be considered an exempt individual for the current year because she was exempt as a teacher for at least 2 of the past 6 years. H and r block online If her compensation for the past 2 years had been paid by a foreign employer, she would be an exempt individual for the current year. H and r block online Students. H and r block online   A student is any individual who is temporarily in the United States on an “F,” “J,” “M,” or “Q” visa and who substantially complies with the requirements of that visa. H and r block online You are considered to have substantially complied with the visa requirements if you have not engaged in activities that are prohibited by U. H and r block online S. H and r block online immigration laws and could result in the loss of your visa status. H and r block online   Also included are immediate family members of exempt students. H and r block online See the definition of immediate family, earlier, under Foreign government-related individuals . H and r block online   You will not be an exempt individual as a student in 2013 if you have been exempt as a teacher, trainee, or student for any part of more than 5 calendar years unless you meet both of the following requirements. H and r block online You establish that you do not intend to reside permanently in the United States. H and r block online You have substantially complied with the requirements of your visa. H and r block online The facts and circumstances to be considered in determining if you have demonstrated an intent to reside permanently in the United States include, but are not limited to, the following. H and r block online Whether you have maintained a closer connection to a foreign country (discussed later). H and r block online Whether you have taken affirmative steps to change your status from nonimmigrant to lawful permanent resident as discussed later under Closer Connection to a Foreign Country . H and r block online   If you qualify to exclude days of presence as a student, you must file a fully completed Form 8843 with the IRS. H and r block online See Form 8843 , later. H and r block online Professional athletes. H and r block online   A professional athlete who is temporarily in the United States to compete in a charitable sports event is an exempt individual. H and r block online A charitable sports event is one that meets the following conditions. H and r block online The main purpose is to benefit a qualified charitable organization. H and r block online The entire net proceeds go to charity. H and r block online Volunteers perform substantially all the work. H and r block online   In figuring the days of presence in the United States, you can exclude only the days on which you actually competed in a sports event. H and r block online 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. H and r block online   If you qualify to exclude days of presence as a professional athlete, you must file a fully completed Form 8843 with the IRS. H and r block online See Form 8843 , next. H and r block online Form 8843. H and r block online   If you exclude days of presence in the United States because you fall into any of the following categories, you must file a fully completed Form 8843. H and r block online You were unable to leave the United States as planned because of a medical condition or problem. H and r block online You were temporarily in the United States as a teacher or trainee on a “J” or “Q” visa. H and r block online You were temporarily in the United States as a student on an “F,” “J,” “M,” or “Q” visa. H and r block online You were a professional athlete competing in a charitable sports event. H and r block online Attach Form 8843 to your 2013 income tax return. H and r block online If you do not have to file a return, send Form 8843 to the Department of the Treasury, Internal Revenue Service Center, Austin, TX 73301-0215, by the due date for filing Form 1040NR or Form 1040NR-EZ. H and r block online The due date for filing is discussed in chapter 7. H and r block online If you do not timely file Form 8843, you cannot exclude the days you were present in the United States as a professional athlete or because of a medical condition that arose while you were in the United States. H and r block online This does not apply if you can show by clear and convincing evidence that you took reasonable actions to become aware of the filing requirements and significant steps to comply with those requirements. H and r block online Closer Connection to a Foreign Country Even if you meet the substantial presence test, you can be treated as a nonresident alien if you: Are present in the United States for less than 183 days during the year, Maintain a tax home in a foreign country during the year, and Have a closer connection during the year to one foreign country in which you have a tax home than to the United States (unless you have a closer connection to two foreign countries, discussed next). H and r block online Closer connection to two foreign countries. H and r block online   You can demonstrate that you have a closer connection to two foreign countries (but not more than two) if you meet all of the following conditions. H and r block online You maintained a tax home beginning on the first day of the year in one foreign country. H and r block online You changed your tax home during the year to a second foreign country. H and r block online You continued to maintain your tax home in the second foreign country for the rest of the year. H and r block online You had a closer connection to each foreign country than to the United States for the period during which you maintained a tax home in that foreign country. H and r block online You are subject to tax as a resident under the tax laws of either foreign country for the entire year or subject to tax as a resident in both foreign countries for the period during which you maintained a tax home in each foreign country. H and r block online Tax home. H and r block online   Your tax home is the general area of your main place of business, employment, or post of duty, regardless of where you maintain your family home. H and r block online Your tax home is the place where you permanently or indefinitely work as an employee or a self-employed individual. H and r block online 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. H and r block online If you do not fit either of these categories, you are considered an itinerant and your tax home is wherever you work. H and r block online   For determining whether you have a closer connection to a foreign country, your tax home must also be in existence for the entire current year, and must be located in the same foreign country to which you are claiming to have a closer connection. H and r block online Foreign country. H and r block online   In determining whether you have a closer connection to a foreign country, the term “foreign country” means: Any territory under the sovereignty of the United Nations or a government other than that of the United States, The territorial waters of the foreign country (determined under U. H and r block online S. H and r block online law), The seabed and subsoil of those submarine areas which are adjacent to the territorial waters of the foreign country and over which the foreign country has exclusive rights under international law to explore and exploit natural resources, and Possessions and territories of the United States. H and r block online Establishing a closer connection. H and r block online   You will be considered to have a closer connection to a foreign country than the United States if you or the IRS establishes that you have maintained more significant contacts with the foreign country than with the United States. H and r block online In determining whether you have maintained more significant contacts with the foreign country than with the United States, the facts and circumstances to be considered include, but are not limited to, the following. H and r block online The country of residence you designate on forms and documents. H and r block online The types of official forms and documents you file, such as Form W-9, Form W-8BEN, or Form W-8ECI. H and r block online The location of: Your permanent home, Your family, Your personal belongings, such as cars, furniture, clothing, and jewelry, Your current social, political, cultural, professional, or religious affiliations, Your business activities (other than those that constitute your tax home), The jurisdiction in which you hold a driver's license, The jurisdiction in which you vote, and Charitable organizations to which you contribute. H and r block online It does not matter whether your permanent home is a house, an apartment, or a furnished room. H and r block online It also does not matter whether you rent or own it. H and r block online It is important, however, that your home be available at all times, continuously, and not solely for short stays. H and r block online When you cannot have a closer connection. H and r block online   You cannot claim you have a closer connection to a foreign country if either of the following applies: You personally applied, or took other steps during the year, to change your status to that of a permanent resident, or You had an application pending for adjustment of status during the current year. H and r block online Steps to change your status to that of a permanent resident include, but are not limited to, the filing of the following forms. H and r block online Form I-508, Waiver of Rights, Privileges, Exemptions and Immunities Form I-485, Application to Register Permanent Residence or Adjust Status Form I-130, Petition for Alien Relative, on your behalf Form I-140, Immigrant Petition for Alien Worker, on your behalf Form ETA-750, Application for Alien Employment Certification, on your behalf Form DS-230, Application for Immigrant Visa and Alien Registration Form 8840. H and r block online   You must attach a fully completed Form 8840 to your income tax return to claim you have a closer connection to a foreign country or countries. H and r block online   If you do not have to file a return, send the form to the Department of the Treasury, Internal Revenue Service Center, Austin, TX 73301-0215, by the due date for filing Form 1040NR or Form 1040NR-EZ. H and r block online The due date for filing is discussed later in chapter 7. H and r block online   If you do not timely file Form 8840, you cannot claim a closer connection to a foreign country or countries. H and r block online This does not apply if you can show by clear and convincing evidence that you took reasonable actions to become aware of the filing requirements and significant steps to comply with those requirements. H and r block online Effect of Tax Treaties The rules given here to determine if you are a U. H and r block online S. H and r block online resident do not override tax treaty definitions of residency. H and r block online If you are a dual-resident taxpayer, you can still claim the benefits under an income tax treaty. H and r block online A dual-resident taxpayer is one who is a resident of both the United States and another country under each country's tax laws. H and r block online The income tax treaty between the two countries must contain a provision that provides for resolution of conflicting claims of residence (tie-breaker rule). H and r block online If you are treated as a resident of a foreign country under a tax treaty, you are treated as a nonresident alien in figuring your U. H and r block online S. H and r block online income tax. H and r block online For purposes other than figuring your tax, you will be treated as a U. H and r block online S. H and r block online resident. H and r block online For example, the rules discussed here do not affect your residency time periods as discussed later under Dual-Status Aliens . H and r block online Information to be reported. H and r block online   If you are a dual-resident taxpayer and you claim treaty benefits, you must file a return by the due date (including extensions) using Form 1040NR or Form 1040NR-EZ, and compute your tax as a nonresident alien. H and r block online You must also attach a fully completed Form 8833 if you determine your residency under a tax treaty and receive payments or income items totaling more than $100,000. H and r block online You may also have to attach Form 8938 (discussed in chapter 7). H and r block online See Reporting Treaty Benefits Claimed in chapter 9 for more information on reporting treaty benefits. H and r block online Dual-Status Aliens You can be both a nonresident alien and a resident alien during the same tax year. H and r block online This usually occurs in the year you arrive in or depart from the United States. H and r block online Aliens who have dual status should see chapter 6 for information on filing a return for a dual-status tax year. H and r block online First Year of Residency If you are a U. H and r block online S. H and r block online resident for the calendar year, but you were not a U. H and r block online S. H and r block online resident at any time during the preceding calendar year, you are a U. H and r block online S. H and r block online resident only for the part of the calendar year that begins on the residency starting date. H and r block online You are a nonresident alien for the part of the year before that date. H and r block online Residency starting date under substantial presence test. H and r block online   If you meet the substantial presence test for a calendar year, your residency starting date is generally the first day you are present in the United States during that calendar year. H and r block online However, you do not have to count up to 10 days of actual presence in the United States if on those days you establish that: You had a closer connection to a foreign country than to the United States, and Your tax home was in that foreign country. H and r block online See Closer Connection to a Foreign Country , earlier. H and r block online   In determining whether you can exclude up to 10 days, the following rules apply. H and r block online You can exclude days from more than one period of presence as long as the total days in all periods are not more than 10. H and r block online You cannot exclude any days in a period of consecutive days of presence if all the days in that period cannot be excluded. H and r block online Although you can exclude up to 10 days of presence in determining your residency starting date, you must include those days when determining whether you meet the substantial presence test. H and r block online Example. H and r block online Ivan Ivanovich is a citizen of Russia. H and r block online He came to the United States for the first time on January 6, 2013, to attend a business meeting and returned to Russia on January 10, 2013. H and r block online His tax home remained in Russia. H and r block online On March 1, 2013, he moved to the United States and resided here for the rest of the year. H and r block online Ivan is able to establish a closer connection to Russia for the period January 6–10. H and r block online Thus, his residency starting date is March 1. H and r block online Statement required to exclude up to 10 days of presence. H and r block online   You must file a statement with the IRS if you are excluding up to 10 days of presence in the United States for purposes of your residency starting date. H and r block online You must sign and date this statement and include a declaration that it is made under penalties of perjury. H and r block online The statement must contain the following information (as applicable). H and r block online Your name, address, U. H and r block online S. H and r block online taxpayer identification number (if any), and U. H and r block online S. H and r block online visa number (if any). H and r block online Your passport number and the name of the country that issued your passport. H and r block online The tax year for which the statement applies. H and r block online The first day that you were present in the United States during the year. H and r block online The dates of the days you are excluding in figuring your first day of residency. H and r block online Sufficient facts to establish that you have maintained your tax home in and a closer connection to a foreign country during the period you are excluding. H and r block online   Attach the required statement to your income tax return. H and r block online If you are not required to file a return, send the statement to the Department of the Treasury, Internal Revenue Service Center, Austin, TX 73301-0215, on or before the due date for filing Form 1040NR or Form 1040NR-EZ. H and r block online The due date for filing is discussed in chapter 7. H and r block online   If you do not file the required statement as explained above, you cannot claim that you have a closer connection to a foreign country or countries. H and r block online Therefore, your first day of residency will be the first day you are present in the United States. H and r block online This does not apply if you can show by clear and convincing evidence that you took reasonable actions to become aware of the requirements for filing the statement and significant steps to comply with those requirements. H and r block online Residency starting date under green card test. H and r block online   If you meet the green card test at any time during a calendar year, but do not meet the substantial presence test for that year, your residency starting date is the first day in the calendar year on which you are present in the United States as a lawful permanent resident. H and r block online   If you meet both the substantial presence test and the green card test, your residency starting date is the earlier of the first day during the year you are present in the United States under the substantial presence test or as a lawful permanent resident. H and r block online Residency during the preceding year. H and r block online   If you were a U. H and r block online S. H and r block online resident during any part of the preceding calendar year and you are a U. H and r block online S. H and r block online resident for any part of the current year, you will be considered a U. H and r block online S. H and r block online resident at the beginning of the current year. H and r block online This applies whether you are a resident under the substantial presence test or green card test. H and r block online Example. H and r block online Robert Bach is a citizen of Switzerland. H and r block online He came to the United States as a U. H and r block online S. H and r block online resident for the first time on May 1, 2012, and remained until November 5, 2012, when he returned to Switzerland. H and r block online Robert came back to the United States on March 5, 2013, as a lawful permanent resident and still resides here. H and r block online In calendar year 2013, Robert's U. H and r block online S. H and r block online residency is deemed to begin on January 1, 2013, because he qualified as a resident in calendar year 2012. H and r block online First-Year Choice If you do not meet either the green card test or the substantial presence test for 2012 or 2013 and you did not choose to be treated as a resident for part of 2012, but you meet the substantial presence test for 2014, you can choose to be treated as a U. H and r block online S. H and r block online resident for part of 2013. H and r block online To make this choice, you must: Be present in the United States for at least 31 days in a row in 2013, and Be present in the United States for at least 75% of the number of days beginning with the first day of the 31-day period and ending with the last day of 2013. H and r block online For purposes of this 75% requirement, you can treat up to 5 days of absence from the United States as days of presence in the United States. H and r block online When counting the days of presence in (1) and (2) above, do not count the days you were in the United States under any of the exceptions discussed earlier under Days of Presence in the United States. H and r block online If you make the first-year choice, your residency starting date for 2013 is the first day of the earliest 31-day period (described in (1) above) that you use to qualify for the choice. H and r block online You are treated as a U. H and r block online S. H and r block online resident for the rest of the year. H and r block online If you are present for more than one 31-day period and you satisfy condition (2) above for each of those periods, your residency starting date is the first day of the first 31-day period. H and r block online If you are present for more than one 31-day period but you satisfy condition (2) above only for a later 31-day period, your residency starting date is the first day of the later 31-day period. H and r block online Note. H and r block online You do not have to be married to make this choice. H and r block online Example 1. H and r block online Juan DaSilva is a citizen of the Philippines. H and r block online He came to the United States for the first time on November 1, 2013, and was here on 31 consecutive days (from November 1 through December 1, 2013). H and r block online Juan returned to the Philippines on December 1 and came back to the United States on December 17, 2013. H and r block online He stayed in the United States for the rest of the year. H and r block online During 2014, Juan was a resident of the United States under the substantial presence test. H and r block online Juan can make the first-year choice for 2013 because he was in the United States in 2013 for a period of 31 days in a row (November 1 through December 1) and for at least 75% of the days following (and including) the first day of his 31-day period (46 total days of presence in the United States divided by 61 days in the period from November 1 through December 31 equals 75. H and r block online 4%). H and r block online If Juan makes the first-year choice, his residency starting date will be November 1, 2013. H and r block online Example 2. H and r block online The facts are the same as in Example 1, except that Juan was also absent from the United States on December 24, 25, 29, 30, and 31. H and r block online He can make the first-year choice for 2013 because up to 5 days of absence are considered days of presence for purposes of the 75% requirement. H and r block online Statement required to make the first-year choice for 2013. H and r block online   You must attach a statement to Form 1040 to make the first-year choice for 2013. H and r block online The statement must contain your name and address and specify the following. H and r block online That you are making the first-year choice for 2013. H and r block online That you were not a resident in 2012. H and r block online That you are a resident under the substantial presence test in 2014. H and r block online The number of days of presence in the United States during 2014. H and r block online The date or dates of your 31-day period of presence and the period of continuous presence in the United States during 2013. H and r block online The date or dates of absence from the United States during 2013 that you are treating as days of presence. H and r block online You cannot file Form 1040 or the statement until you meet the substantial presence test for 2014. H and r block online If you have not met the test for 2014 as of April 15, 2014, you can request an extension of time for filing your 2013 Form 1040 until a reasonable period after you have met that test. H and r block online To request an extension to file until October 15, 2014, use Form 4868, Application for Automatic Extension of Time To File U. H and r block online S. H and r block online Individual Income Tax Return. H and r block online You can file the paper form or use one of the electronic filing options explained in the Form 4868 instructions. H and r block online You should pay with this extension the amount of tax you expect to owe for 2013 figured as if you were a nonresident alien the entire year. H and r block online You can use Form 1040NR or Form 1040NR-EZ to figure the tax. H and r block online Enter the tax on Form 4868. H and r block online If you do not pay the tax due, you will be charged interest on any tax not paid by the regular due date of your return, and you may be charged a penalty on the late payment. H and r block online   Once you make the first-year choice, you may not revoke it without the approval of the Internal Revenue Service. H and r block online   If you do not follow the procedures discussed here for making the first-year choice, you will be treated as a nonresident alien for all of 2013. H and r block online However, this does not apply if you can show by clear and convincing evidence that you took reasonable actions to become aware of the filing procedures and significant steps to comply with the procedures. H and r block online Choosing Resident Alien Status If you are a dual-status alien, you can choose to be treated as a U. H and r block online S. H and r block online resident for the entire year if all of the following apply. H and r block online You were a nonresident alien at the beginning of the year. H and r block online You are a resident alien or U. H and r block online S. H and r block online citizen at the end of the year. H and r block online You are married to a U. H and r block online S. H and r block online citizen or resident alien at the end of the year. H and r block online Your spouse joins you in making the choice. H and r block online This includes situations in which both you and your spouse were nonresident aliens at the beginning of the tax year and both of you are resident aliens at the end of the tax year. H and r block online Note. H and r block online If you are single at the end of the year, you cannot make this choice. H and r block online If you make this choice, the following rules apply. H and r block online You and your spouse are treated as U. H and r block online S. H and r block online residents for the entire year for income tax purposes. H and r block online You and your spouse are taxed on worldwide income. H and r block online You and your spouse must file a joint return for the year of the choice. H and r block online Neither you nor your spouse can make this choice for any later tax year, even if you are separated, divorced, or remarried. H and r block online The special instructions and restrictions for dual-status taxpayers in chapter 6 do not apply to you. H and r block online Note. H and r block online A similar choice is available if, at the end of the tax year, one spouse is a nonresident alien and the other spouse is a U. H and r block online S. H and r block online citizen or resident. H and r block online See Nonresident Spouse Treated as a Resident , later. H and r block online If you previously made that choice and it is still in effect, you do not need to make the choice explained here. H and r block online Making the choice. H and r block online   You should attach a statement signed by both spouses to your joint return for the year of the choice. H and r block online The statement must contain the following information. H and r block online A declaration that you both qualify to make the choice and that you choose to be treated as U. H and r block online S. H and r block online residents for the entire tax year. H and r block online The name, address, and taxpayer identification number (SSN or ITIN) of each spouse. H and r block online (If one spouse died, include the name and address of the person who makes the choice for the deceased spouse. H and r block online )   You generally make this choice when you file your joint return. H and r block online However, you also can make the choice by filing Form 1040X, Amended U. H and r block online S. H and r block online Individual Income Tax Return. H and r block online Attach Form 1040, Form 1040A, or Form 1040EZ and print “Amended” across the top of the corrected return. H and r block online If you make the choice with an amended return, you and your spouse must also amend any returns that you may have filed after the year for which you made the choice. H and r block online   You generally must file the amended joint return within 3 years from the date you filed your original U. H and r block online S. H and r block online income tax return or 2 years from the date you paid your income tax for that year, whichever is later. H and r block online Last Year of Residency If you were a U. H and r block online S. H and r block online resident in 2013 but are not a U. H and r block online S. H and r block online resident during any part of 2014, you cease to be a U. H and r block online S. H and r block online resident on your residency termination date. H and r block online Your residency termination date is December 31, 2013, unless you qualify for an earlier date as discussed next. H and r block online Earlier residency termination date. H and r block online   You may qualify for a residency termination date that is earlier than December 31. H and r block online This date is: The last day in 2013 that you are physically present in the United States, if you met the substantial presence test, The first day in 2013 that you are no longer a lawful permanent resident of the United States, if you met the green card test, or The later of (1) or (2), if you met both tests. H and r block online You can use this date only if, for the remainder of 2013, your tax home was in a foreign country and you had a closer connection to that foreign country. H and r block online See Closer Connection to a Foreign Country , earlier. H and r block online    A long-term resident who ceases to be a lawful permanent resident may be subject to special reporting requirements and tax provisions. H and r block online See Expatriation Tax in chapter 4. H and r block online Termination of residency. H and r block online   For information on your residency termination date, see Former long-term resident under Expatriation After June 16, 2008, in chapter 4. H and r block online De minimis presence. H and r block online   If you are a U. H and r block online S. H and r block online resident because of the substantial presence test and you qualify to use the earlier residency termination date, you can exclude up to 10 days of actual presence in the United States in determining your residency termination date. H and r block online In determining whether you can exclude up to 10 days, the following rules apply. H and r block online You can exclude days from more than one period of presence as long as the total days in all periods are not more than 10. H and r block online You cannot exclude any days in a period of consecutive days of presence if all the days in that period cannot be excluded. H and r block online Although you can exclude up to 10 days of presence in determining your residency termination date, you must include those days when determining whether you meet the substantial presence test. H and r block online Example. H and r block online Lola Bovary is a citizen of Malta. H and r block online She came to the United States for the first time on March 1, 2013, and resided here until August 25, 2013. H and r block online On December 12, 2013, Lola came to the United States for vacation and stayed here until December 16, 2013, when she returned to Malta. H and r block online She is able to establish a closer connection to Malta for the period December 12–16. H and r block online Lola is not a U. H and r block online S. H and r block online resident for tax purposes during 2014 and can establish a closer connection to Malta for the rest of calendar year 2013. H and r block online Lola is a U. H and r block online S. H and r block online resident under the substantial presence test for 2013 because she was present in the United States for 183 days (178 days for the period March 1 to August 25 plus 5 days in December). H and r block online Lola's residency termination date is August 25, 2013. H and r block online Residency during the next year. H and r block online   If you are a U. H and r block online S. H and r block online resident during any part of 2014 and you are a resident during any part of 2013, you will be treated as a resident through the end of 2013. H and r block online This applies whether you have a closer connection to a foreign country than the United States during 2013, and whether you are a resident under the substantial presence test or green card test. H and r block online Statement required to establish your residency termination date. H and r block online   You must file a statement with the IRS to establish your residency termination date. H and r block online You must sign and date this statement and include a declaration that it is made under penalties of perjury. H and r block online The statement must contain the following information (as applicable). H and r block online Your name, address, U. H and r block online S. H and r block online taxpayer identification number (if any), and U. H and r block online S. H and r block online visa number (if any). H and r block online Your passport number and the name of the country that issued your passport. H and r block online The tax year for which the statement applies. H and r block online The last day that you were present in the United States during the year. H and r block online Sufficient facts to establish that you have maintained your tax home in, and that you have a closer connection to, a foreign country following your last day of presence in the United States during the year or following the abandonment or rescission of your status as a lawful permanent resident during the year. H and r block online The date that your status as a lawful permanent resident was abandoned or rescinded. H and r block online Sufficient facts (including copies of relevant documents) to establish that your status as a lawful permanent resident has been abandoned or rescinded. H and r block online If you can exclude days under the de minimis presence rule, discussed earlier, include the dates of the days you are excluding and sufficient facts to establish that you have maintained your tax home in and that you have a closer connection to a foreign country during the period you are excluding. H and r block online   Attach the required statement to your income tax return. H and r block online If you are not required to file a return, send the statement to the Department of the Treasury, Internal Revenue Service Center, Austin, TX 73301-0215, on or before the due date for filing Form 1040NR or Form 1040NR-EZ. H and r block online The due date for filing is discussed in chapter 7. H and r block online   If you do not file the required statement as explained above, you cannot claim that you have a closer connection to a foreign country or countries. H and r block online This does not apply if you can show by clear and convincing evidence that you took reasonable actions to become aware of the requirements for filing the statement and significant steps to comply with those requirements. H and r block online Nonresident Spouse Treated as a Resident If, at the end of your tax year, you are married and one spouse is a U. H and r block online S. H and r block online citizen or a resident alien and the other spouse is a nonresident alien, you can choose to treat the nonresident spouse as a U. H and r block online S. H and r block online resident. H and r block online This includes situations in which one spouse is a nonresident alien at the beginning of the tax year, but a resident alien at the end of the year, and the other spouse is a nonresident alien at the end of the year. H and r block online If you make this choice, you and your spouse are treated for income tax purposes as residents for your entire tax year. H and r block online Neither you nor your spouse can claim under any tax treaty not to be a U. H and r block online S. H and r block online resident. H and r block online You are both taxed on worldwide income. H and r block online You must file a joint income tax return for the year you make the choice, but you and your spouse can file joint or separate returns in later years. H and r block online If you file a joint return under this provision, the special instructions and restrictions for dual-status taxpayers in chapter 6 do not apply to you. H and r block online Example. H and r block online Bob and Sharon Williams are married and both are nonresident aliens at the beginning of the year. H and r block online In June, Bob became a resident alien and remained a resident for the rest of the year. H and r block online Bob and Sharon both choose to be treated as resident aliens by attaching a statement to their joint return. H and r block online Bob and Sharon must file a joint return for the year they make the choice, but they can file either joint or separate returns for later years. H and r block online How To Make the Choice Attach a statement, signed by both spouses, to your joint return for the first tax year for which the choice applies. H and r block online It should contain the following information. H and r block online A declaration that one spouse was a nonresident alien and the other spouse a U. H and r block online S. H and r block online citizen or resident alien on the last day of your tax year, and that you choose to be treated as U. H and r block online S. H and r block online residents for the entire tax year. H and r block online The name, address, and identification number of each spouse. H and r block online (If one spouse died, include the name and address of the person making the choice for the deceased spouse. H and r block online ) Amended return. H and r block online   You generally make this choice when you file your joint return. H and r block online However, you can also make the choice by filing a joint amended return on Form 1040X. H and r block online Attach Form 1040, Form 1040A, or Form 1040EZ and print “Amended” across the top of the corrected return. H and r block online If you make the choice with an amended return, you and your spouse must also amend any returns that you may have filed after the year for which you made the choice. H and r block online   You generally must file the amended joint return within 3 years from the date you filed your original U. H and r block online S. H and r block online income tax return or 2 years from the date you paid your income tax for that year, whichever is later. H and r block online Suspending the Choice The choice to be treated as a resident alien is suspended for any tax year (after the tax year you made the choice) if neither spouse is a U. H and r block online S. H and r block online citizen or resident alien at any time during the tax year. H and r block online This means each spouse must file a separate return as a nonresident alien for that year if either meets the filing requirements for nonresident aliens discussed in chapter 7. H and r block online Example. H and r block online Dick Brown was a resident alien on December 31, 2010, and married to Judy, a nonresident alien. H and r block online They chose to treat Judy as a resident alien and filed joint 2010 and 2011 income tax returns. H and r block online On January 10, 2012, Dick became a nonresident alien. H and r block online Judy had remained a nonresident alien throughout the period. H and r block online Dick and Judy could have filed joint or separate returns for 2012 because Dick was a resident alien for part of that year. H and r block online However, because neither Dick nor Judy is a resident alien at any time during 2013, their choice is suspended for that year. H and r block online If either meets the filing requirements for nonresident aliens discussed in chapter 7, they must file separate returns as nonresident aliens for 2013. H and r block online If Dick becomes a resident alien again in 2014, their choice is no longer suspended. H and r block online Ending the Choice Once made, the choice to be treated as a resident applies to all later years unless suspended (as explained earlier under Suspending the Choice ) or ended in one of the following ways. H and r block online If the choice is ended in one of the following ways, neither spouse can make this choice in any later tax year. H and r block online Revocation. H and r block online Either spouse can revoke the choice for any tax year, provided he or she makes the revocation by the due date for filing the tax return for that tax year. H and r block online The spouse who revokes the choice must attach a signed statement declaring that the choice is being revoked. H and r block online The statement must include the name, address, and identification number of each spouse. H and r block online (If one spouse dies, include the name and address of the person who is revoking the choice for the deceased spouse. H and r block online ) The statement also must include a list of any states, foreign countries, and possessions that have community property laws in which either spouse is domiciled or where real property is located from which either spouse receives income. H and r block online File the statement as follows. H and r block online If the spouse revoking the choice must file a return, attach the statement to the return for the first year the revocation applies. H and r block online If the spouse revoking the choice does not have to file a return, but does file a return (for example, to obtain a refund), attach the statement to the return. H and r block online If the spouse revoking the choice does not have to file a return and does not file a claim for refund, send the statement to the Internal Revenue Service Center where you filed the last joint return. H and r block online Death. H and r block online The death of either spouse ends the choice, beginning with the first tax year following the year the spouse died. H and r block online However, if the surviving spouse is a U. H and r block online S. H and r block online citizen or resident and is entitled to the joint tax rates as a surviving spouse, the choice will not end until the close of the last year for which these joint rates may be used. H and r block online If both spouses die in the same tax year, the choice ends on the first day after the close of the tax year in which the spouses died. H and r block online Legal separation. H and r block online A legal separation under a decree of divorce or separate maintenance ends the choice as of the beginning of the tax year in which the legal separation occurs. H and r block online Inadequate records. H and r block online The Internal Revenue Service can end the choice for any tax year that either spouse has failed to keep adequate books, records, and other information necessary to determine the correct income tax liability, or to provide adequate access to those records. H and r block online Aliens From American Samoa or Puerto Rico If you are a nonresident alien in the United States and a bona fide resident of American Samoa or Puerto Rico during the entire tax year, you are taxed, with certain exceptions, according to the rules for resident aliens of the United States. H and r block online For more information, see Bona Fide Residents of American Samoa or Puerto Rico in chapter 5. H and r block online If you are a nonresident alien from American Samoa or Puerto Rico who does not qualify as a bona fide resident of American Samoa or Puerto Rico for the entire tax year, you are taxed as a nonresident alien. H and r block online Resident aliens who formerly were bona fide residents of American Samoa or Puerto Rico are taxed according to the rules for resident aliens. H and r block online Prev  Up  Next   Home   More Online Publications