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How To Do An Amendment Tax Return

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How To Do An Amendment Tax Return

How to do an amendment tax return 1. How to do an amendment tax return   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. How to do an amendment tax return If you are both a nonresident and resident in the same year, you have a dual status. How to do an amendment tax return Dual status is explained later. How to do an amendment tax return Also explained later are a choice to treat your nonresident spouse as a resident and some other special situations. How to do an amendment tax return 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. How to do an amendment tax return Useful Items - You may want to see: Form (and Instructions) 1040 U. How to do an amendment tax return S. How to do an amendment tax return Individual Income Tax Return 1040A U. How to do an amendment tax return S. How to do an amendment tax return Individual Income Tax Return 1040NR U. How to do an amendment tax return S. How to do an amendment tax return 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. How to do an amendment tax return Nonresident Aliens If you are an alien (not a U. How to do an amendment tax return S. How to do an amendment tax return citizen), you are considered a nonresident alien unless you meet one of the two tests described next under Resident Aliens. How to do an amendment tax return 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). How to do an amendment tax return Even if you do not meet either of these tests, you may be able to choose to be treated as a U. How to do an amendment tax return S. How to do an amendment tax return resident for part of the year. How to do an amendment tax return See First-Year Choice under Dual-Status Aliens, later. How to do an amendment tax return 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. How to do an amendment tax return (However, see Dual-Status Aliens , later. How to do an amendment tax return ) This is known as the “green card” test. How to do an amendment tax return 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. How to do an amendment tax return You generally have this status if the U. How to do an amendment tax return S. How to do an amendment tax return Citizenship and Immigration Services (USCIS) (or its predecessor organization) has issued you an alien registration card, also known as a “green card. How to do an amendment tax return ” 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. How to do an amendment tax return Resident status taken away. How to do an amendment tax return   Resident status is considered to have been taken away from you if the U. How to do an amendment tax return S. How to do an amendment tax return government issues you a final administrative or judicial order of exclusion or deportation. How to do an amendment tax return A final judicial order is an order that you may no longer appeal to a higher court of competent jurisdiction. How to do an amendment tax return Resident status abandoned. How to do an amendment tax return   An administrative or judicial determination of abandonment of resident status may be initiated by you, the USCIS, or a U. How to do an amendment tax return S. How to do an amendment tax return consular officer. How to do an amendment tax return    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. How to do an amendment tax return S. How to do an amendment tax return consular officer. How to do an amendment tax return Your application for abandonment. How to do an amendment tax return Your Alien Registration Receipt Card attached to a letter stating your intent to abandon your resident status. How to do an amendment tax return You must file the letter by certified mail, return receipt requested. How to do an amendment tax return You must keep a copy of the letter and proof that it was mailed and received. How to do an amendment tax return    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. How to do an amendment tax return   If the USCIS or U. How to do an amendment tax return S. How to do an amendment tax return consular officer initiates this determination, your resident status will be considered to be abandoned when the final administrative order of abandonment is issued. How to do an amendment tax return If you are granted an appeal to a federal court of competent jurisdiction, a final judicial order is required. How to do an amendment tax return   Under U. How to do an amendment tax return S. How to do an amendment tax return 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. How to do an amendment tax return    A long-term resident who ceases to be a lawful permanent resident may be subject to special reporting requirements and tax provisions. How to do an amendment tax return See Expatriation Tax in chapter 4. How to do an amendment tax return Termination of residency after June 3, 2004, and before June 17, 2008. How to do an amendment tax return   If you terminated your residency after June 3, 2004, and before June 17, 2008, you will still be considered a U. How to do an amendment tax return S. How to do an amendment tax return resident for tax purposes until you notify the Secretary of Homeland Security and file Form 8854, Initial and Annual Expatriation Statement. How to do an amendment tax return Termination of residency after June 16, 2008. How to do an amendment tax return   For information on your residency termination date, see Former long-term resident under Expatriation After June 16, 2008, in chapter 4. How to do an amendment tax return Substantial Presence Test You will be considered a U. How to do an amendment tax return S. How to do an amendment tax return resident for tax purposes if you meet the substantial presence test for calendar year 2013. How to do an amendment tax return 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. How to do an amendment tax return Example. How to do an amendment tax return You were physically present in the United States on 120 days in each of the years 2011, 2012, and 2013. How to do an amendment tax return 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). How to do an amendment tax return Because the total for the 3-year period is 180 days, you are not considered a resident under the substantial presence test for 2013. How to do an amendment tax return The term United States includes the following areas. How to do an amendment tax return All 50 states and the District of Columbia. How to do an amendment tax return The territorial waters of the United States. How to do an amendment tax return The seabed and subsoil of those submarine areas that are adjacent to U. How to do an amendment tax return S. How to do an amendment tax return territorial waters and over which the United States has exclusive rights under international law to explore and exploit natural resources. How to do an amendment tax return The term does not include U. How to do an amendment tax return S. How to do an amendment tax return possessions and territories or U. How to do an amendment tax return S. How to do an amendment tax return airspace. How to do an amendment tax return 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. How to do an amendment tax return However, there are exceptions to this rule. How to do an amendment tax return Do not count the following as days of presence in the United States for the substantial presence test. How to do an amendment tax return Days you commute to work in the United States from a residence in Canada or Mexico if you regularly commute from Canada or Mexico. How to do an amendment tax return Days you are in the United States for less than 24 hours when you are in transit between two places outside the United States. How to do an amendment tax return Days you are in the United States as a crew member of a foreign vessel. How to do an amendment tax return Days you are unable to leave the United States because of a medical condition that arose while you are in the United States. How to do an amendment tax return Days you are an exempt individual. How to do an amendment tax return The specific rules that apply to each of these categories are discussed next. How to do an amendment tax return Regular commuters from Canada or Mexico. How to do an amendment tax return   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. How to do an amendment tax return 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. How to do an amendment tax return   For this purpose, “commute” means to travel to work and return to your residence within a 24-hour period. How to do an amendment tax return “Workdays” are the days on which you work in the United States or Canada or Mexico. How to do an amendment tax return “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. How to do an amendment tax return 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. How to do an amendment tax return 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. How to do an amendment tax return Example. How to do an amendment tax return Maria Perez lives in Mexico and works for Compañía ABC in its office in Mexico. How to do an amendment tax return She was assigned to her firm's office in the United States from February 1 through June 1. How to do an amendment tax return On June 2, she resumed her employment in Mexico. How to do an amendment tax return On 69 days, Maria commuted each morning from her home in Mexico to work in Compañía ABC's U. How to do an amendment tax return S. How to do an amendment tax return office. How to do an amendment tax return She returned to her home in Mexico on each of those evenings. How to do an amendment tax return On 7 days, she worked in her firm's Mexico office. How to do an amendment tax return 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. How to do an amendment tax return 8%). How to do an amendment tax return Days in transit. How to do an amendment tax return   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. How to do an amendment tax return You are considered to be in transit if you engage in activities that are substantially related to completing travel to your foreign destination. How to do an amendment tax return 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. How to do an amendment tax return However, you are not considered to be in transit if you attend a business meeting while in the United States. How to do an amendment tax return This is true even if the meeting is held at the airport. How to do an amendment tax return Crew members. How to do an amendment tax return   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. How to do an amendment tax return S. How to do an amendment tax return possession. How to do an amendment tax return However, this exception does not apply if you otherwise engage in any trade or business in the United States on those days. How to do an amendment tax return Medical condition. How to do an amendment tax return   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. How to do an amendment tax return Whether you intended to leave the United States on a particular day is determined based on all the facts and circumstances. How to do an amendment tax return 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. How to do an amendment tax return 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. How to do an amendment tax return   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. How to do an amendment tax return   If you qualify to exclude days of presence because of a medical condition, you must file a fully completed Form 8843 with the IRS. How to do an amendment tax return See Form 8843 , later. How to do an amendment tax return   You cannot exclude any days of presence in the United States under the following circumstances. How to do an amendment tax return 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. How to do an amendment tax return You returned to the United States for treatment of a medical condition that arose during a prior stay. How to do an amendment tax return The condition existed before your arrival in the United States and you were aware of the condition. How to do an amendment tax return It does not matter whether you needed treatment for the condition when you entered the United States. How to do an amendment tax return Exempt individual. How to do an amendment tax return   Do not count days for which you are an exempt individual. How to do an amendment tax return The term “exempt individual” does not refer to someone exempt from U. How to do an amendment tax return S. How to do an amendment tax return tax, but to anyone in the following categories. How to do an amendment tax return An individual temporarily present in the United States as a foreign government-related individual under an “A” or “G” visa. How to do an amendment tax return 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. How to do an amendment tax return 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. How to do an amendment tax return A professional athlete temporarily in the United States to compete in a charitable sports event. How to do an amendment tax return   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. How to do an amendment tax return Foreign government-related individuals. How to do an amendment tax return   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. How to do an amendment tax return Note. How to do an amendment tax return You are considered temporarily present in the United States regardless of the actual amount of time you are present in the United States. How to do an amendment tax return    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. How to do an amendment tax return An individual is a full-time employee if his or her work schedule meets the organization's standard full-time work schedule. How to do an amendment tax return   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. How to do an amendment tax return Note. How to do an amendment tax return 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). How to do an amendment tax return None of your days count for purposes of the substantial presence test. How to do an amendment tax return   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. How to do an amendment tax return 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. How to do an amendment tax return Teachers and trainees. How to do an amendment tax return   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. How to do an amendment tax return You are considered to have substantially complied with the visa requirements if you have not engaged in activities that are prohibited by U. How to do an amendment tax return S. How to do an amendment tax return immigration laws and could result in the loss of your visa status. How to do an amendment tax return   Also included are immediate family members of exempt teachers and trainees. How to do an amendment tax return See the definition of immediate family, earlier, under Foreign government-related individuals . How to do an amendment tax return   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. How to do an amendment tax return However, you will be an exempt individual if all of the following conditions are met. How to do an amendment tax return 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. How to do an amendment tax return A foreign employer includes an office or place of business of an American entity in a foreign country or a U. How to do an amendment tax return S. How to do an amendment tax return possession. How to do an amendment tax return   If you qualify to exclude days of presence as a teacher or trainee, you must file a fully completed Form 8843 with the IRS. How to do an amendment tax return See Form 8843 , later. How to do an amendment tax return Example. How to do an amendment tax return Carla was temporarily in the United States during the year as a teacher on a “J” visa. How to do an amendment tax return Her compensation for the year was paid by a foreign employer. How to do an amendment tax return Carla was treated as an exempt teacher for the previous 2 years but her compensation was not paid by a foreign employer. How to do an amendment tax return 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. How to do an amendment tax return 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. How to do an amendment tax return Students. How to do an amendment tax return   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. How to do an amendment tax return You are considered to have substantially complied with the visa requirements if you have not engaged in activities that are prohibited by U. How to do an amendment tax return S. How to do an amendment tax return immigration laws and could result in the loss of your visa status. How to do an amendment tax return   Also included are immediate family members of exempt students. How to do an amendment tax return See the definition of immediate family, earlier, under Foreign government-related individuals . How to do an amendment tax return   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. How to do an amendment tax return You establish that you do not intend to reside permanently in the United States. How to do an amendment tax return You have substantially complied with the requirements of your visa. How to do an amendment tax return 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. How to do an amendment tax return Whether you have maintained a closer connection to a foreign country (discussed later). How to do an amendment tax return 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 . How to do an amendment tax return   If you qualify to exclude days of presence as a student, you must file a fully completed Form 8843 with the IRS. How to do an amendment tax return See Form 8843 , later. How to do an amendment tax return Professional athletes. How to do an amendment tax return   A professional athlete who is temporarily in the United States to compete in a charitable sports event is an exempt individual. How to do an amendment tax return A charitable sports event is one that meets the following conditions. How to do an amendment tax return The main purpose is to benefit a qualified charitable organization. How to do an amendment tax return The entire net proceeds go to charity. How to do an amendment tax return Volunteers perform substantially all the work. How to do an amendment tax return   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. How to do an amendment tax return 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. How to do an amendment tax return   If you qualify to exclude days of presence as a professional athlete, you must file a fully completed Form 8843 with the IRS. How to do an amendment tax return See Form 8843 , next. How to do an amendment tax return Form 8843. How to do an amendment tax return   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. How to do an amendment tax return You were unable to leave the United States as planned because of a medical condition or problem. How to do an amendment tax return You were temporarily in the United States as a teacher or trainee on a “J” or “Q” visa. How to do an amendment tax return You were temporarily in the United States as a student on an “F,” “J,” “M,” or “Q” visa. How to do an amendment tax return You were a professional athlete competing in a charitable sports event. How to do an amendment tax return Attach Form 8843 to your 2013 income tax return. How to do an amendment tax return 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. How to do an amendment tax return The due date for filing is discussed in chapter 7. How to do an amendment tax return 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. How to do an amendment tax return 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. How to do an amendment tax return 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). How to do an amendment tax return Closer connection to two foreign countries. How to do an amendment tax return   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. How to do an amendment tax return You maintained a tax home beginning on the first day of the year in one foreign country. How to do an amendment tax return You changed your tax home during the year to a second foreign country. How to do an amendment tax return You continued to maintain your tax home in the second foreign country for the rest of the year. How to do an amendment tax return 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. How to do an amendment tax return 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. How to do an amendment tax return Tax home. How to do an amendment tax return   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. How to do an amendment tax return Your tax home is the place where you permanently or indefinitely work as an employee or a self-employed individual. How to do an amendment tax return 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. How to do an amendment tax return If you do not fit either of these categories, you are considered an itinerant and your tax home is wherever you work. How to do an amendment tax return   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. How to do an amendment tax return Foreign country. How to do an amendment tax return   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. How to do an amendment tax return S. How to do an amendment tax return 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. How to do an amendment tax return Establishing a closer connection. How to do an amendment tax return   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. How to do an amendment tax return 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. How to do an amendment tax return The country of residence you designate on forms and documents. How to do an amendment tax return The types of official forms and documents you file, such as Form W-9, Form W-8BEN, or Form W-8ECI. How to do an amendment tax return 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. How to do an amendment tax return It does not matter whether your permanent home is a house, an apartment, or a furnished room. How to do an amendment tax return It also does not matter whether you rent or own it. How to do an amendment tax return It is important, however, that your home be available at all times, continuously, and not solely for short stays. How to do an amendment tax return When you cannot have a closer connection. How to do an amendment tax return   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. How to do an amendment tax return Steps to change your status to that of a permanent resident include, but are not limited to, the filing of the following forms. How to do an amendment tax return 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. How to do an amendment tax return   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. How to do an amendment tax return   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. How to do an amendment tax return The due date for filing is discussed later in chapter 7. How to do an amendment tax return   If you do not timely file Form 8840, you cannot claim a closer connection to a foreign country or countries. How to do an amendment tax return 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. How to do an amendment tax return Effect of Tax Treaties The rules given here to determine if you are a U. How to do an amendment tax return S. How to do an amendment tax return resident do not override tax treaty definitions of residency. How to do an amendment tax return If you are a dual-resident taxpayer, you can still claim the benefits under an income tax treaty. How to do an amendment tax return A dual-resident taxpayer is one who is a resident of both the United States and another country under each country's tax laws. How to do an amendment tax return The income tax treaty between the two countries must contain a provision that provides for resolution of conflicting claims of residence (tie-breaker rule). How to do an amendment tax return 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. How to do an amendment tax return S. How to do an amendment tax return income tax. How to do an amendment tax return For purposes other than figuring your tax, you will be treated as a U. How to do an amendment tax return S. How to do an amendment tax return resident. How to do an amendment tax return For example, the rules discussed here do not affect your residency time periods as discussed later under Dual-Status Aliens . How to do an amendment tax return Information to be reported. How to do an amendment tax return   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. How to do an amendment tax return 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. How to do an amendment tax return You may also have to attach Form 8938 (discussed in chapter 7). How to do an amendment tax return See Reporting Treaty Benefits Claimed in chapter 9 for more information on reporting treaty benefits. How to do an amendment tax return Dual-Status Aliens You can be both a nonresident alien and a resident alien during the same tax year. How to do an amendment tax return This usually occurs in the year you arrive in or depart from the United States. How to do an amendment tax return Aliens who have dual status should see chapter 6 for information on filing a return for a dual-status tax year. How to do an amendment tax return First Year of Residency If you are a U. How to do an amendment tax return S. How to do an amendment tax return resident for the calendar year, but you were not a U. How to do an amendment tax return S. How to do an amendment tax return resident at any time during the preceding calendar year, you are a U. How to do an amendment tax return S. How to do an amendment tax return resident only for the part of the calendar year that begins on the residency starting date. How to do an amendment tax return You are a nonresident alien for the part of the year before that date. How to do an amendment tax return Residency starting date under substantial presence test. How to do an amendment tax return   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. How to do an amendment tax return 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. How to do an amendment tax return See Closer Connection to a Foreign Country , earlier. How to do an amendment tax return   In determining whether you can exclude up to 10 days, the following rules apply. How to do an amendment tax return 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. How to do an amendment tax return You cannot exclude any days in a period of consecutive days of presence if all the days in that period cannot be excluded. How to do an amendment tax return 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. How to do an amendment tax return Example. How to do an amendment tax return Ivan Ivanovich is a citizen of Russia. How to do an amendment tax return 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. How to do an amendment tax return His tax home remained in Russia. How to do an amendment tax return On March 1, 2013, he moved to the United States and resided here for the rest of the year. How to do an amendment tax return Ivan is able to establish a closer connection to Russia for the period January 6–10. How to do an amendment tax return Thus, his residency starting date is March 1. How to do an amendment tax return Statement required to exclude up to 10 days of presence. How to do an amendment tax return   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. How to do an amendment tax return You must sign and date this statement and include a declaration that it is made under penalties of perjury. How to do an amendment tax return The statement must contain the following information (as applicable). How to do an amendment tax return Your name, address, U. How to do an amendment tax return S. How to do an amendment tax return taxpayer identification number (if any), and U. How to do an amendment tax return S. How to do an amendment tax return visa number (if any). How to do an amendment tax return Your passport number and the name of the country that issued your passport. How to do an amendment tax return The tax year for which the statement applies. How to do an amendment tax return The first day that you were present in the United States during the year. How to do an amendment tax return The dates of the days you are excluding in figuring your first day of residency. How to do an amendment tax return 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. How to do an amendment tax return   Attach the required statement to your income tax return. How to do an amendment tax return 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. How to do an amendment tax return The due date for filing is discussed in chapter 7. How to do an amendment tax return   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. How to do an amendment tax return Therefore, your first day of residency will be the first day you are present in the United States. How to do an amendment tax return 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. How to do an amendment tax return Residency starting date under green card test. How to do an amendment tax return   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. How to do an amendment tax return   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. How to do an amendment tax return Residency during the preceding year. How to do an amendment tax return   If you were a U. How to do an amendment tax return S. How to do an amendment tax return resident during any part of the preceding calendar year and you are a U. How to do an amendment tax return S. How to do an amendment tax return resident for any part of the current year, you will be considered a U. How to do an amendment tax return S. How to do an amendment tax return resident at the beginning of the current year. How to do an amendment tax return This applies whether you are a resident under the substantial presence test or green card test. How to do an amendment tax return Example. How to do an amendment tax return Robert Bach is a citizen of Switzerland. How to do an amendment tax return He came to the United States as a U. How to do an amendment tax return S. How to do an amendment tax return resident for the first time on May 1, 2012, and remained until November 5, 2012, when he returned to Switzerland. How to do an amendment tax return Robert came back to the United States on March 5, 2013, as a lawful permanent resident and still resides here. How to do an amendment tax return In calendar year 2013, Robert's U. How to do an amendment tax return S. How to do an amendment tax return residency is deemed to begin on January 1, 2013, because he qualified as a resident in calendar year 2012. How to do an amendment tax return 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. How to do an amendment tax return S. How to do an amendment tax return resident for part of 2013. How to do an amendment tax return 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. How to do an amendment tax return 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. How to do an amendment tax return 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. How to do an amendment tax return 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. How to do an amendment tax return You are treated as a U. How to do an amendment tax return S. How to do an amendment tax return resident for the rest of the year. How to do an amendment tax return 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. How to do an amendment tax return 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. How to do an amendment tax return Note. How to do an amendment tax return You do not have to be married to make this choice. How to do an amendment tax return Example 1. How to do an amendment tax return Juan DaSilva is a citizen of the Philippines. How to do an amendment tax return 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). How to do an amendment tax return Juan returned to the Philippines on December 1 and came back to the United States on December 17, 2013. How to do an amendment tax return He stayed in the United States for the rest of the year. How to do an amendment tax return During 2014, Juan was a resident of the United States under the substantial presence test. How to do an amendment tax return 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. How to do an amendment tax return 4%). How to do an amendment tax return If Juan makes the first-year choice, his residency starting date will be November 1, 2013. How to do an amendment tax return Example 2. How to do an amendment tax return 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. How to do an amendment tax return 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. How to do an amendment tax return Statement required to make the first-year choice for 2013. How to do an amendment tax return   You must attach a statement to Form 1040 to make the first-year choice for 2013. How to do an amendment tax return The statement must contain your name and address and specify the following. How to do an amendment tax return That you are making the first-year choice for 2013. How to do an amendment tax return That you were not a resident in 2012. How to do an amendment tax return That you are a resident under the substantial presence test in 2014. How to do an amendment tax return The number of days of presence in the United States during 2014. How to do an amendment tax return The date or dates of your 31-day period of presence and the period of continuous presence in the United States during 2013. How to do an amendment tax return The date or dates of absence from the United States during 2013 that you are treating as days of presence. How to do an amendment tax return You cannot file Form 1040 or the statement until you meet the substantial presence test for 2014. How to do an amendment tax return 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. How to do an amendment tax return To request an extension to file until October 15, 2014, use Form 4868, Application for Automatic Extension of Time To File U. How to do an amendment tax return S. How to do an amendment tax return Individual Income Tax Return. How to do an amendment tax return You can file the paper form or use one of the electronic filing options explained in the Form 4868 instructions. How to do an amendment tax return 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. How to do an amendment tax return You can use Form 1040NR or Form 1040NR-EZ to figure the tax. How to do an amendment tax return Enter the tax on Form 4868. How to do an amendment tax return 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. How to do an amendment tax return   Once you make the first-year choice, you may not revoke it without the approval of the Internal Revenue Service. How to do an amendment tax return   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. How to do an amendment tax return 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. How to do an amendment tax return Choosing Resident Alien Status If you are a dual-status alien, you can choose to be treated as a U. How to do an amendment tax return S. How to do an amendment tax return resident for the entire year if all of the following apply. How to do an amendment tax return You were a nonresident alien at the beginning of the year. How to do an amendment tax return You are a resident alien or U. How to do an amendment tax return S. How to do an amendment tax return citizen at the end of the year. How to do an amendment tax return You are married to a U. How to do an amendment tax return S. How to do an amendment tax return citizen or resident alien at the end of the year. How to do an amendment tax return Your spouse joins you in making the choice. How to do an amendment tax return 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. How to do an amendment tax return Note. How to do an amendment tax return If you are single at the end of the year, you cannot make this choice. How to do an amendment tax return If you make this choice, the following rules apply. How to do an amendment tax return You and your spouse are treated as U. How to do an amendment tax return S. How to do an amendment tax return residents for the entire year for income tax purposes. How to do an amendment tax return You and your spouse are taxed on worldwide income. How to do an amendment tax return You and your spouse must file a joint return for the year of the choice. How to do an amendment tax return Neither you nor your spouse can make this choice for any later tax year, even if you are separated, divorced, or remarried. How to do an amendment tax return The special instructions and restrictions for dual-status taxpayers in chapter 6 do not apply to you. How to do an amendment tax return Note. How to do an amendment tax return 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. How to do an amendment tax return S. How to do an amendment tax return citizen or resident. How to do an amendment tax return See Nonresident Spouse Treated as a Resident , later. How to do an amendment tax return If you previously made that choice and it is still in effect, you do not need to make the choice explained here. How to do an amendment tax return Making the choice. How to do an amendment tax return   You should attach a statement signed by both spouses to your joint return for the year of the choice. How to do an amendment tax return The statement must contain the following information. How to do an amendment tax return A declaration that you both qualify to make the choice and that you choose to be treated as U. How to do an amendment tax return S. How to do an amendment tax return residents for the entire tax year. How to do an amendment tax return The name, address, and taxpayer identification number (SSN or ITIN) of each spouse. How to do an amendment tax return (If one spouse died, include the name and address of the person who makes the choice for the deceased spouse. How to do an amendment tax return )   You generally make this choice when you file your joint return. How to do an amendment tax return However, you also can make the choice by filing Form 1040X, Amended U. How to do an amendment tax return S. How to do an amendment tax return Individual Income Tax Return. How to do an amendment tax return Attach Form 1040, Form 1040A, or Form 1040EZ and print “Amended” across the top of the corrected return. How to do an amendment tax return 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. How to do an amendment tax return   You generally must file the amended joint return within 3 years from the date you filed your original U. How to do an amendment tax return S. How to do an amendment tax return income tax return or 2 years from the date you paid your income tax for that year, whichever is later. How to do an amendment tax return Last Year of Residency If you were a U. How to do an amendment tax return S. How to do an amendment tax return resident in 2013 but are not a U. How to do an amendment tax return S. How to do an amendment tax return resident during any part of 2014, you cease to be a U. How to do an amendment tax return S. How to do an amendment tax return resident on your residency termination date. How to do an amendment tax return Your residency termination date is December 31, 2013, unless you qualify for an earlier date as discussed next. How to do an amendment tax return Earlier residency termination date. How to do an amendment tax return   You may qualify for a residency termination date that is earlier than December 31. How to do an amendment tax return 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. How to do an amendment tax return 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. How to do an amendment tax return See Closer Connection to a Foreign Country , earlier. How to do an amendment tax return    A long-term resident who ceases to be a lawful permanent resident may be subject to special reporting requirements and tax provisions. How to do an amendment tax return See Expatriation Tax in chapter 4. How to do an amendment tax return Termination of residency. How to do an amendment tax return   For information on your residency termination date, see Former long-term resident under Expatriation After June 16, 2008, in chapter 4. How to do an amendment tax return De minimis presence. How to do an amendment tax return   If you are a U. How to do an amendment tax return S. How to do an amendment tax return 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. How to do an amendment tax return In determining whether you can exclude up to 10 days, the following rules apply. How to do an amendment tax return 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. How to do an amendment tax return You cannot exclude any days in a period of consecutive days of presence if all the days in that period cannot be excluded. How to do an amendment tax return 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. How to do an amendment tax return Example. How to do an amendment tax return Lola Bovary is a citizen of Malta. How to do an amendment tax return She came to the United States for the first time on March 1, 2013, and resided here until August 25, 2013. How to do an amendment tax return On December 12, 2013, Lola came to the United States for vacation and stayed here until December 16, 2013, when she returned to Malta. How to do an amendment tax return She is able to establish a closer connection to Malta for the period December 12–16. How to do an amendment tax return Lola is not a U. How to do an amendment tax return S. How to do an amendment tax return resident for tax purposes during 2014 and can establish a closer connection to Malta for the rest of calendar year 2013. How to do an amendment tax return Lola is a U. How to do an amendment tax return S. How to do an amendment tax return 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). How to do an amendment tax return Lola's residency termination date is August 25, 2013. How to do an amendment tax return Residency during the next year. How to do an amendment tax return   If you are a U. How to do an amendment tax return S. How to do an amendment tax return 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. How to do an amendment tax return 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. How to do an amendment tax return Statement required to establish your residency termination date. How to do an amendment tax return   You must file a statement with the IRS to establish your residency termination date. How to do an amendment tax return You must sign and date this statement and include a declaration that it is made under penalties of perjury. How to do an amendment tax return The statement must contain the following information (as applicable). How to do an amendment tax return Your name, address, U. How to do an amendment tax return S. How to do an amendment tax return taxpayer identification number (if any), and U. How to do an amendment tax return S. How to do an amendment tax return visa number (if any). How to do an amendment tax return Your passport number and the name of the country that issued your passport. How to do an amendment tax return The tax year for which the statement applies. How to do an amendment tax return The last day that you were present in the United States during the year. How to do an amendment tax return 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. How to do an amendment tax return The date that your status as a lawful permanent resident was abandoned or rescinded. How to do an amendment tax return Sufficient facts (including copies of relevant documents) to establish that your status as a lawful permanent resident has been abandoned or rescinded. How to do an amendment tax return 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. How to do an amendment tax return   Attach the required statement to your income tax return. How to do an amendment tax return 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. How to do an amendment tax return The due date for filing is discussed in chapter 7. How to do an amendment tax return   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. How to do an amendment tax return 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. How to do an amendment tax return Nonresident Spouse Treated as a Resident If, at the end of your tax year, you are married and one spouse is a U. How to do an amendment tax return S. How to do an amendment tax return citizen or a resident alien and the other spouse is a nonresident alien, you can choose to treat the nonresident spouse as a U. How to do an amendment tax return S. How to do an amendment tax return resident. How to do an amendment tax return 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. How to do an amendment tax return If you make this choice, you and your spouse are treated for income tax purposes as residents for your entire tax year. How to do an amendment tax return Neither you nor your spouse can claim under any tax treaty not to be a U. How to do an amendment tax return S. How to do an amendment tax return resident. How to do an amendment tax return You are both taxed on worldwide income. How to do an amendment tax return 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. How to do an amendment tax return 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. How to do an amendment tax return Example. How to do an amendment tax return Bob and Sharon Williams are married and both are nonresident aliens at the beginning of the year. How to do an amendment tax return In June, Bob became a resident alien and remained a resident for the rest of the year. How to do an amendment tax return Bob and Sharon both choose to be treated as resident aliens by attaching a statement to their joint return. How to do an amendment tax return 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. How to do an amendment tax return 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. How to do an amendment tax return It should contain the following information. How to do an amendment tax return A declaration that one spouse was a nonresident alien and the other spouse a U. How to do an amendment tax return S. How to do an amendment tax return citizen or resident alien on the last day of your tax year, and that you choose to be treated as U. How to do an amendment tax return S. How to do an amendment tax return residents for the entire tax year. How to do an amendment tax return The name, address, and identification number of each spouse. How to do an amendment tax return (If one spouse died, include the name and address of the person making the choice for the deceased spouse. How to do an amendment tax return ) Amended return. How to do an amendment tax return   You generally make this choice when you file your joint return. How to do an amendment tax return However, you can also make the choice by filing a joint amended return on Form 1040X. How to do an amendment tax return Attach Form 1040, Form 1040A, or Form 1040EZ and print “Amended” across the top of the corrected return. How to do an amendment tax return 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. How to do an amendment tax return   You generally must file the amended joint return within 3 years from the date you filed your original U. How to do an amendment tax return S. How to do an amendment tax return income tax return or 2 years from the date you paid your income tax for that year, whichever is later. How to do an amendment tax return 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. How to do an amendment tax return S. How to do an amendment tax return citizen or resident alien at any time during the tax year. How to do an amendment tax return 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. How to do an amendment tax return Example. How to do an amendment tax return Dick Brown was a resident alien on December 31, 2010, and married to Judy, a nonresident alien. How to do an amendment tax return They chose to treat Judy as a resident alien and filed joint 2010 and 2011 income tax returns. How to do an amendment tax return On January 10, 2012, Dick became a nonresident alien. How to do an amendment tax return Judy had remained a nonresident alien throughout the period. How to do an amendment tax return Dick and Judy could have filed joint or separate returns for 2012 because Dick was a resident alien for part of that year. How to do an amendment tax return However, because neither Dick nor Judy is a resident alien at any time during 2013, their choice is suspended for that year. How to do an amendment tax return If either meets the filing requirements for nonresident aliens discussed in chapter 7, they must file separate returns as nonresident aliens for 2013. How to do an amendment tax return If Dick becomes a resident alien again in 2014, their choice is no longer suspended. How to do an amendment tax return 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. How to do an amendment tax return If the choice is ended in one of the following ways, neither spouse can make this choice in any later tax year. How to do an amendment tax return Revocation. How to do an amendment tax return 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. How to do an amendment tax return The spouse who revokes the choice must attach a signed statement declaring that the choice is being revoked. How to do an amendment tax return The statement must include the name, address, and identification number of each spouse. How to do an amendment tax return (If one spouse dies, include the name and address of the person who is revoking the choice for the deceased spouse. How to do an amendment tax return ) 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. How to do an amendment tax return File the statement as follows. How to do an amendment tax return If the spouse revoking the choice must file a return, attach the statement to the return for the first year the revocation applies. How to do an amendment tax return 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. How to do an amendment tax return 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. How to do an amendment tax return Death. How to do an amendment tax return The death of either spouse ends the choice, beginning with the first tax year following the year the spouse died. How to do an amendment tax return However, if the surviving spouse is a U. How to do an amendment tax return S. How to do an amendment tax return 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. How to do an amendment tax return 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. How to do an amendment tax return Legal separation. How to do an amendment tax return 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. How to do an amendment tax return Inadequate records. How to do an amendment tax return 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. How to do an amendment tax return 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. How to do an amendment tax return For more information, see Bona Fide Residents of American Samoa or Puerto Rico in chapter 5. How to do an amendment tax return 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. How to do an amendment tax return Resident aliens who formerly were bona fide residents of American Samoa or Puerto Rico are taxed according to the rules for resident aliens. How to do an amendment tax return Prev  Up  Next   Home   More Online Publications
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Understanding Your CP515 Business Notice

You received this reminder notice because our records indicate you didn't file a business tax return.


What you need to do

  • File your required business return immediately.
  • If eligible, file your return electronically with all required schedules, using your e-file provider, or
  • File a paper return with all required schedules
  • Complete the Response form enclosed with your notice and mail it to us, using the enclosed envelope:
    • To explain why you are filing late.
    • To explain why you don’t think you need to file.
    • If you already filed and it's been more than four weeks, or if you used a different name or employer ID number (EIN) than shown on the notice when filing.
  • If you filed within the last four weeks using the same name and EIN shown on the notice, you may disregard this notice.

You may want to...

  • Review Tax Information for Businesses which provides information regarding various business filing issues.
  • Review your records and ensure all returns are filed timely.

Answers to Common Questions

Why did I receive multiple CP 515 notices?
If your business hasn't filed tax returns, a notice will be generated and mailed for each tax form and tax period the IRS shows as delinquent.

I have never had employees and or filed this return previously so why did I receive a notice requesting me to file?
When you apply for an employer identification number, filing requirements are established requiring specific types of returns to be filed (e.g. Form 940, Employer's Annual Federal Unemployment Tax Return; Form 941, Employer's Quarterly Federal Tax Return; Form 1120, U.S. Corporation Income Tax Return, etc.). When the return isn't filed, the IRS considers it to be delinquent and generates a notice requesting the return be filed.

Do I still need to file a tax return even if I had no employees or business activity during the tax period(s) in question?
If you had no employees or business activity during a tax period, you aren't required to file a return for that tax period. You still need to respond to this notice. 

If you made Federal Tax Deposits or other payments or credits for the tax period, you must file a signed return showing the payments to get a refund.


Tips for next year

File all required returns by the appropriate due date.


  • Understanding your notice

    Your notice may look different from the sample because the information contained in your notice is tailored to your situation.

    Notice CP515B, Page 1

    Notice CP515B, Page 2

    Notice CP515B, Page 3

    Notice CP515B, Page 4

    Notice CP515B, Page 5

Page Last Reviewed or Updated: 10-Jan-2014

Printable samples of this notice (PDF)

 

 

How to get help

  • Call the 1-800 number listed on the top right corner of your notice.
  • Authorize someone (e.g., accountant) to contact the IRS on your behalf using Form 2848.
  • See if you qualify for help from a Low Income Taxpayer Clinic.
     

The How To Do An Amendment Tax Return

How to do an amendment tax return 15. How to do an amendment tax return   Selling Your Home Table of Contents Reminder Introduction Useful Items - You may want to see: Main Home Figuring Gain or LossSelling Price Amount Realized Adjusted Basis Amount of Gain or Loss Dispositions Other Than Sales Determining Basis Excluding the GainMaximum Exclusion Ownership and Use Tests Reduced Maximum Exclusion Business Use or Rental of Home Reporting the SaleSeller-financed mortgage. How to do an amendment tax return More information. How to do an amendment tax return Special SituationsException for sales to related persons. How to do an amendment tax return Recapturing (Paying Back) a Federal Mortgage Subsidy Reminder Home sold with undeducted points. How to do an amendment tax return  If you have not deducted all the points you paid to secure a mortgage on your old home, you may be able to deduct the remaining points in the year of the sale. How to do an amendment tax return See Mortgage ending early under Points in chapter 23. How to do an amendment tax return Introduction This chapter explains the tax rules that apply when you sell your main home. How to do an amendment tax return In most cases, your main home is the one in which you live most of the time. How to do an amendment tax return If you sold your main home in 2013, you may be able to exclude from income any gain up to a limit of $250,000 ($500,000 on a joint return in most cases). How to do an amendment tax return See Excluding the Gain , later. How to do an amendment tax return Generally, if you can exclude all the gain, you do not need to report the sale on your tax return. How to do an amendment tax return If you have gain that cannot be excluded, it is taxable. How to do an amendment tax return Report it on Form 8949, Sales and Other Dispositions of Capital Assets, and Schedule D (Form 1040). How to do an amendment tax return You may also have to complete Form 4797, Sales of Business Property. How to do an amendment tax return See Reporting the Sale , later. How to do an amendment tax return If you have a loss on the sale, you generally cannot deduct it on your return. How to do an amendment tax return However, you may need to report it. How to do an amendment tax return See Reporting the Sale , later. How to do an amendment tax return The following are main topics in this chapter. How to do an amendment tax return Figuring gain or loss. How to do an amendment tax return Basis. How to do an amendment tax return Excluding the gain. How to do an amendment tax return Ownership and use tests. How to do an amendment tax return Reporting the sale. How to do an amendment tax return Other topics include the following. How to do an amendment tax return Business use or rental of home. How to do an amendment tax return Recapturing a federal mortgage subsidy. How to do an amendment tax return Useful Items - You may want to see: Publication 523 Selling Your Home 530 Tax Information for Homeowners 547 Casualties, Disasters, and Thefts Form (and Instructions) Schedule D (Form 1040) Capital Gains and Losses 982 Reduction of Tax Attributes Due to Discharge of Indebtedness 8828 Recapture of Federal Mortgage Subsidy 8949 Sales and Other Dispositions of Capital Assets Main Home This section explains the term “main home. How to do an amendment tax return ” Usually, the home you live in most of the time is your main home and can be a: House, Houseboat, Mobile home, Cooperative apartment, or Condominium. How to do an amendment tax return To exclude gain under the rules of this chapter, you in most cases must have owned and lived in the property as your main home for at least 2 years during the 5-year period ending on the date of sale. How to do an amendment tax return Land. How to do an amendment tax return   If you sell the land on which your main home is located, but not the house itself, you cannot exclude any gain you have from the sale of the land. How to do an amendment tax return However, if you sell vacant land used as part of your main home and that is adjacent to it, you may be able to exclude the gain from the sale under certain circumstances. How to do an amendment tax return See Vacant land under Main Home in Publication 523 for more information. How to do an amendment tax return Example. How to do an amendment tax return You buy a piece of land and move your main home to it. How to do an amendment tax return Then you sell the land on which your main home was located. How to do an amendment tax return This sale is not considered a sale of your main home, and you cannot exclude any gain on the sale of the land. How to do an amendment tax return More than one home. How to do an amendment tax return   If you have more than one home, you can exclude gain only from the sale of your main home. How to do an amendment tax return You must include in income gain from the sale of any other home. How to do an amendment tax return If you have two homes and live in both of them, your main home is ordinarily the one you live in most of the time during the year. How to do an amendment tax return Example 1. How to do an amendment tax return You own two homes, one in New York and one in Florida. How to do an amendment tax return From 2009 through 2013, you live in the New York home for 7 months and in the Florida residence for 5 months of each year. How to do an amendment tax return In the absence of facts and circumstances indicating otherwise, the New York home is your main home. How to do an amendment tax return You would be eligible to exclude the gain from the sale of the New York home but not of the Florida home in 2013. How to do an amendment tax return Example 2. How to do an amendment tax return You own a house, but you live in another house that you rent. How to do an amendment tax return The rented house is your main home. How to do an amendment tax return Example 3. How to do an amendment tax return You own two homes, one in Virginia and one in New Hampshire. How to do an amendment tax return In 2009 and 2010, you lived in the Virginia home. How to do an amendment tax return In 2011 and 2012, you lived in the New Hampshire home. How to do an amendment tax return In 2013, you lived again in the Virginia home. How to do an amendment tax return Your main home in 2009, 2010, and 2013 is the Virginia home. How to do an amendment tax return Your main home in 2011 and 2012 is the New Hampshire home. How to do an amendment tax return You would be eligible to exclude gain from the sale of either home (but not both) in 2013. How to do an amendment tax return Property used partly as your main home. How to do an amendment tax return   If you use only part of the property as your main home, the rules discussed in this publication apply only to the gain or loss on the sale of that part of the property. How to do an amendment tax return For details, see Business Use or Rental of Home , later. How to do an amendment tax return Figuring Gain or Loss To figure the gain or loss on the sale of your main home, you must know the selling price, the amount realized, and the adjusted basis. How to do an amendment tax return Subtract the adjusted basis from the amount realized to get your gain or loss. How to do an amendment tax return     Selling price     − Selling expenses       Amount realized       Amount realized     − Adjusted basis       Gain or loss   Selling Price The selling price is the total amount you receive for your home. How to do an amendment tax return It includes money and the fair market value of any other property or any other services you receive and all notes, mortgages or other debts assumed by the buyer as part of the sale. How to do an amendment tax return Payment by employer. How to do an amendment tax return   You may have to sell your home because of a job transfer. How to do an amendment tax return If your employer pays you for a loss on the sale or for your selling expenses, do not include the payment as part of the selling price. How to do an amendment tax return Your employer will include it as wages in box 1 of your Form W-2, and you will include it in your income on Form 1040, line 7. How to do an amendment tax return Option to buy. How to do an amendment tax return   If you grant an option to buy your home and the option is exercised, add the amount you receive for the option to the selling price of your home. How to do an amendment tax return If the option is not exercised, you must report the amount as ordinary income in the year the option expires. How to do an amendment tax return Report this amount on Form 1040, line 21. How to do an amendment tax return Form 1099-S. How to do an amendment tax return   If you received Form 1099-S, Proceeds From Real Estate Transactions, box 2 (Gross proceeds) should show the total amount you received for your home. How to do an amendment tax return   However, box 2 will not include the fair market value of any services or property other than cash or notes you received or will receive. How to do an amendment tax return Instead, box 4 will be checked to indicate your receipt or expected receipt of these items. How to do an amendment tax return Amount Realized The amount realized is the selling price minus selling expenses. How to do an amendment tax return Selling expenses. How to do an amendment tax return   Selling expenses include: Commissions, Advertising fees, Legal fees, and Loan charges paid by the seller, such as loan placement fees or “points. How to do an amendment tax return ” Adjusted Basis While you owned your home, you may have made adjustments (increases or decreases) to the basis. How to do an amendment tax return This adjusted basis must be determined before you can figure gain or loss on the sale of your home. How to do an amendment tax return For information on how to figure your home's adjusted basis, see Determining Basis , later. How to do an amendment tax return Amount of Gain or Loss To figure the amount of gain or loss, compare the amount realized to the adjusted basis. How to do an amendment tax return Gain on sale. How to do an amendment tax return   If the amount realized is more than the adjusted basis, the difference is a gain and, except for any part you can exclude, in most cases is taxable. How to do an amendment tax return Loss on sale. How to do an amendment tax return   If the amount realized is less than the adjusted basis, the difference is a loss. How to do an amendment tax return A loss on the sale of your main home cannot be deducted. How to do an amendment tax return Jointly owned home. How to do an amendment tax return   If you and your spouse sell your jointly owned home and file a joint return, you figure your gain or loss as one taxpayer. How to do an amendment tax return Separate returns. How to do an amendment tax return   If you file separate returns, each of you must figure your own gain or loss according to your ownership interest in the home. How to do an amendment tax return Your ownership interest is generally determined by state law. How to do an amendment tax return Joint owners not married. How to do an amendment tax return   If you and a joint owner other than your spouse sell your jointly owned home, each of you must figure your own gain or loss according to your ownership interest in the home. How to do an amendment tax return Each of you applies the rules discussed in this chapter on an individual basis. How to do an amendment tax return Dispositions Other Than Sales Some special rules apply to other dispositions of your main home. How to do an amendment tax return Foreclosure or repossession. How to do an amendment tax return   If your home was foreclosed on or repossessed, you have a disposition. How to do an amendment tax return See Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments, to determine if you have ordinary income, gain, or loss. How to do an amendment tax return Abandonment. How to do an amendment tax return   If you abandon your home, see Publication 4681 to determine if you have ordinary income, gain, or loss. How to do an amendment tax return Trading (exchanging) homes. How to do an amendment tax return   If you trade your old home for another home, treat the trade as a sale and a purchase. How to do an amendment tax return Example. How to do an amendment tax return You owned and lived in a home with an adjusted basis of $41,000. How to do an amendment tax return A real estate dealer accepted your old home as a trade-in and allowed you $50,000 toward a new home priced at $80,000. How to do an amendment tax return This is treated as a sale of your old home for $50,000 with a gain of $9,000 ($50,000 – $41,000). How to do an amendment tax return If the dealer had allowed you $27,000 and assumed your unpaid mortgage of $23,000 on your old home, your sales price would still be $50,000 (the $27,000 trade-in allowed plus the $23,000 mortgage assumed). How to do an amendment tax return Transfer to spouse. How to do an amendment tax return   If you transfer your home to your spouse or you transfer it to your former spouse incident to your divorce, you in most cases have no gain or loss. How to do an amendment tax return This is true even if you receive cash or other consideration for the home. How to do an amendment tax return As a result, the rules in this chapter do not apply. How to do an amendment tax return More information. How to do an amendment tax return   If you need more information, see Transfer to spouse in Publication 523 and Property Settlements in Publication 504, Divorced or Separated Individuals. How to do an amendment tax return Involuntary conversion. How to do an amendment tax return   You have a disposition when your home is destroyed or condemned and you receive other property or money in payment, such as insurance or a condemnation award. How to do an amendment tax return This is treated as a sale and you may be able to exclude all or part of any gain from the destruction or condemnation of your home, as explained later under Special Situations . How to do an amendment tax return Determining Basis You need to know your basis in your home to figure any gain or loss when you sell it. How to do an amendment tax return Your basis in your home is determined by how you got the home. How to do an amendment tax return Generally, your basis is its cost if you bought it or built it. How to do an amendment tax return If you got it in some other way (inheritance, gift, etc. How to do an amendment tax return ), your basis is generally either its fair market value when you received it or the adjusted basis of the previous owner. How to do an amendment tax return While you owned your home, you may have made adjustments (increases or decreases) to your home's basis. How to do an amendment tax return The result of these adjustments is your home's adjusted basis, which is used to figure gain or loss on the sale of your home. How to do an amendment tax return See Adjusted Basis , later. How to do an amendment tax return You can find more information on basis and adjusted basis in chapter 13 of this publication and in Publication 523. How to do an amendment tax return Cost As Basis The cost of property is the amount you paid for it in cash, debt obligations, other property, or services. How to do an amendment tax return Purchase. How to do an amendment tax return   If you bought your home, your basis is its cost to you. How to do an amendment tax return This includes the purchase price and certain settlement or closing costs. How to do an amendment tax return In most cases, your purchase price includes your down payment and any debt, such as a first or second mortgage or notes you gave the seller in payment for the home. How to do an amendment tax return If you build, or contract to build, a new home, your purchase price can include costs of construction, as discussed in Publication 523. How to do an amendment tax return Settlement fees or closing costs. How to do an amendment tax return   When you bought your home, you may have paid settlement fees or closing costs in addition to the contract price of the property. How to do an amendment tax return You can include in your basis some of the settlement fees and closing costs you paid for buying the home, but not the fees and costs for getting a mortgage loan. How to do an amendment tax return A fee paid for buying the home is any fee you would have had to pay even if you paid cash for the home (that is, without the need for financing). How to do an amendment tax return    Chapter 13 lists some of the settlement fees and closing costs that you can include in the basis of property, including your home. How to do an amendment tax return It also lists some settlement costs that cannot be included in basis. How to do an amendment tax return   Also see Publication 523 for additional items and a discussion of basis other than cost. How to do an amendment tax return Adjusted Basis Adjusted basis is your cost or other basis increased or decreased by certain amounts. How to do an amendment tax return To figure your adjusted basis, you can use Worksheet 1 in Publication 523. How to do an amendment tax return Do not use Worksheet 1 if you acquired an interest in your home from a decedent who died in 2010 and whose executor filed Form 8939, Allocation of Increase in Basis for Property Acquired From a Decedent. How to do an amendment tax return Increases to basis. How to do an amendment tax return   These include the following. How to do an amendment tax return Additions and other improvements that have a useful life of more than 1 year. How to do an amendment tax return Special assessments for local improvements. How to do an amendment tax return Amounts you spent after a casualty to restore damaged property. How to do an amendment tax return Improvements. How to do an amendment tax return   These add to the value of your home, prolong its useful life, or adapt it to new uses. How to do an amendment tax return You add the cost of additions and other improvements to the basis of your property. How to do an amendment tax return   For example, putting a recreation room or another bathroom in your unfinished basement, putting up a new fence, putting in new plumbing or wiring, putting on a new roof, or paving your unpaved driveway are improvements. How to do an amendment tax return An addition to your house, such as a new deck, a sunroom, or a new garage, is also an improvement. How to do an amendment tax return Repairs. How to do an amendment tax return   These maintain your home in good condition but do not add to its value or prolong its life. How to do an amendment tax return You do not add their cost to the basis of your property. How to do an amendment tax return   Examples of repairs include repainting your house inside or outside, fixing your gutters or floors, repairing leaks or plastering, and replacing broken window panes. How to do an amendment tax return Decreases to basis. How to do an amendment tax return   These include the following. How to do an amendment tax return Discharge of qualified principal residence indebtedness that was excluded from income. How to do an amendment tax return Some or all of the cancellation of debt income that was excluded due to your bankruptcy or insolvency. How to do an amendment tax return For details, see Publication 4681. How to do an amendment tax return Gain you postponed from the sale of a previous home before May 7, 1997. How to do an amendment tax return Deductible casualty losses. How to do an amendment tax return Insurance payments you received or expect to receive for casualty losses. How to do an amendment tax return Payments you received for granting an easement or right-of-way. How to do an amendment tax return Depreciation allowed or allowable if you used your home for business or rental purposes. How to do an amendment tax return Energy-related credits allowed for expenditures made on the residence. How to do an amendment tax return (Reduce the increase in basis otherwise allowable for expenditures on the residence by the amount of credit allowed for those expenditures. How to do an amendment tax return ) Adoption credit you claimed for improvements added to the basis of your home. How to do an amendment tax return Nontaxable payments from an adoption assistance program of your employer you used for improvements you added to the basis of your home. How to do an amendment tax return Energy conservation subsidy excluded from your gross income because you received it (directly or indirectly) from a public utility after 1992 to buy or install any energy conservation measure. How to do an amendment tax return An energy conservation measure is an installation or modification primarily designed either to reduce consumption of electricity or natural gas or to improve the management of energy demand for a home. How to do an amendment tax return District of Columbia first-time homebuyer credit (allowed on the purchase of a principal residence in the District of Columbia beginning on August 5, 1997 and before January 1, 2012). How to do an amendment tax return General sales taxes (allowed beginning 2004 and ending before 2014) claimed as an itemized deduction on Schedule A (Form 1040) that were imposed on the purchase of personal property, such as a houseboat used as your home or a mobile home. How to do an amendment tax return Discharges of qualified principal residence indebtedness. How to do an amendment tax return   You may be able to exclude from gross income a discharge of qualified principal residence indebtedness. How to do an amendment tax return This exclusion applies to discharges made after 2006 and before 2014. How to do an amendment tax return If you choose to exclude this income, you must reduce (but not below zero) the basis of the principal residence by the amount excluded from your gross income. How to do an amendment tax return   File Form 982 with your tax return. How to do an amendment tax return See the form's instructions for detailed information. How to do an amendment tax return Recordkeeping. How to do an amendment tax return You should keep records to prove your home's adjusted basis. How to do an amendment tax return Ordinarily, you must keep records for 3 years after the due date for filing your return for the tax year in which you sold your home. How to do an amendment tax return But if you sold a home before May 7, 1997, and postponed tax on any gain, the basis of that home affects the basis of the new home you bought. How to do an amendment tax return Keep records proving the basis of both homes as long as they are needed for tax purposes. How to do an amendment tax return The records you should keep include: Proof of the home's purchase price and purchase expenses, Receipts and other records for all improvements, additions, and other items that affect the home's adjusted basis, Any worksheets or other computations you used to figure the adjusted basis of the home you sold, the gain or loss on the sale, the exclusion, and the taxable gain, Any Form 982 you filed to report any discharge of qualified principal residence indebtedness, Any Form 2119, Sale of Your Home, you filed to postpone gain from the sale of a previous home before May 7, 1997, and Any worksheets you used to prepare Form 2119, such as the Adjusted Basis of Home Sold Worksheet or the Capital Improvements Worksheet from the Form 2119 instructions, or other source of computations. How to do an amendment tax return Excluding the Gain You may qualify to exclude from your income all or part of any gain from the sale of your main home. How to do an amendment tax return This means that, if you qualify, you will not have to pay tax on the gain up to the limit described under Maximum Exclusion , next. How to do an amendment tax return To qualify, you must meet the ownership and use tests described later. How to do an amendment tax return You can choose not to take the exclusion by including the gain from the sale in your gross income on your tax return for the year of the sale. How to do an amendment tax return You can use Worksheet 2 in Publication 523 to figure the amount of your exclusion and your taxable gain, if any. How to do an amendment tax return If you have any taxable gain from the sale of your home, you may have to increase your withholding or make estimated tax payments. How to do an amendment tax return See Publication 505, Tax Withholding and Estimated Tax. How to do an amendment tax return Maximum Exclusion You can exclude up to $250,000 of the gain (other than gain allocated to periods of nonqualified use) on the sale of your main home if all of the following are true. How to do an amendment tax return You meet the ownership test. How to do an amendment tax return You meet the use test. How to do an amendment tax return During the 2-year period ending on the date of the sale, you did not exclude gain from the sale of another home. How to do an amendment tax return For details on gain allocated to periods of nonqualified use, see Periods of nonqualified use , later. How to do an amendment tax return You may be able to exclude up to $500,000 of the gain (other than gain allocated to periods of nonqualified use) on the sale of your main home if you are married and file a joint return and meet the requirements listed in the discussion of the special rules for joint returns, later, under Married Persons . How to do an amendment tax return Ownership and Use Tests To claim the exclusion, you must meet the ownership and use tests. How to do an amendment tax return This means that during the 5-year period ending on the date of the sale, you must have: Owned the home for at least 2 years (the ownership test), and Lived in the home as your main home for at least 2 years (the use test). How to do an amendment tax return Exception. How to do an amendment tax return   If you owned and lived in the property as your main home for less than 2 years, you can still claim an exclusion in some cases. How to do an amendment tax return However, the maximum amount you may be able to exclude will be reduced. How to do an amendment tax return See Reduced Maximum Exclusion , later. How to do an amendment tax return Example 1—home owned and occupied for at least 2 years. How to do an amendment tax return Mya bought and moved into her main home in September 2011. How to do an amendment tax return She sold the home at a gain in October 2013. How to do an amendment tax return During the 5-year period ending on the date of sale in October 2013, she owned and lived in the home for more than 2 years. How to do an amendment tax return She meets the ownership and use tests. How to do an amendment tax return Example 2—ownership test met but use test not met. How to do an amendment tax return Ayden bought a home, lived in it for 6 months, moved out, and never occupied the home again. How to do an amendment tax return He later sold the home for a gain. How to do an amendment tax return He owned the home during the entire 5-year period ending on the date of sale. How to do an amendment tax return He meets the ownership test but not the use test. How to do an amendment tax return He cannot exclude any part of his gain on the sale unless he qualified for a reduced maximum exclusion (explained later). How to do an amendment tax return Period of Ownership and Use The required 2 years of ownership and use during the 5-year period ending on the date of the sale do not have to be continuous nor do they both have to occur at the same time. How to do an amendment tax return You meet the tests if you can show that you owned and lived in the property as your main home for either 24 full months or 730 days (365 × 2) during the 5-year period ending on the date of sale. How to do an amendment tax return Temporary absence. How to do an amendment tax return   Short temporary absences for vacations or other seasonal absences, even if you rent out the property during the absences, are counted as periods of use. How to do an amendment tax return The following examples assume that the reduced maximum exclusion (discussed later) does not apply to the sales. How to do an amendment tax return Example 1. How to do an amendment tax return David Johnson, who is single, bought and moved into his home on February 1, 2011. How to do an amendment tax return Each year during 2011 and 2012, David left his home for a 2-month summer vacation. How to do an amendment tax return David sold the house on March 1, 2013. How to do an amendment tax return Although the total time David used his home is less than 2 years (21 months), he meets the requirement and may exclude gain. How to do an amendment tax return The 2-month vacations are short temporary absences and are counted as periods of use in determining whether David used the home for the required 2 years. How to do an amendment tax return Example 2. How to do an amendment tax return Professor Paul Beard, who is single, bought and moved into a house on August 18, 2010. How to do an amendment tax return He lived in it as his main home continuously until January 5, 2012, when he went abroad for a 1-year sabbatical leave. How to do an amendment tax return On February 6, 2013, 1 month after returning from the leave, Paul sold the house at a gain. How to do an amendment tax return Because his leave was not a short temporary absence, he cannot include the period of leave to meet the 2-year use test. How to do an amendment tax return He cannot exclude any part of his gain, because he did not use the residence for the required 2 years. How to do an amendment tax return Ownership and use tests met at different times. How to do an amendment tax return   You can meet the ownership and use tests during different 2-year periods. How to do an amendment tax return However, you must meet both tests during the 5-year period ending on the date of the sale. How to do an amendment tax return Example. How to do an amendment tax return Beginning in 2002, Helen Jones lived in a rented apartment. How to do an amendment tax return The apartment building was later converted to condominiums, and she bought her same apartment on December 3, 2010. How to do an amendment tax return In 2011, Helen became ill and on April 14 of that year she moved to her daughter's home. How to do an amendment tax return On July 12, 2013, while still living in her daughter's home, she sold her condominium. How to do an amendment tax return Helen can exclude gain on the sale of her condominium because she met the ownership and use tests during the 5-year period from July 13, 2008, to July 12, 2013, the date she sold the condominium. How to do an amendment tax return She owned her condominium from December 3, 2010, to July 12, 2013 (more than 2 years). How to do an amendment tax return She lived in the property from July 13, 2008 (the beginning of the 5-year period), to April 14, 2011 (more than 2 years). How to do an amendment tax return The time Helen lived in her daughter's home during the 5-year period can be counted toward her period of ownership, and the time she lived in her rented apartment during the 5-year period can be counted toward her period of use. How to do an amendment tax return Cooperative apartment. How to do an amendment tax return   If you sold stock as a tenant-stockholder in a cooperative housing corporation, the ownership and use tests are met if, during the 5-year period ending on the date of sale, you: Owned the stock for at least 2 years, and Lived in the house or apartment that the stock entitles you to occupy as your main home for at least 2 years. How to do an amendment tax return Exceptions to Ownership and Use Tests The following sections contain exceptions to the ownership and use tests for certain taxpayers. How to do an amendment tax return Exception for individuals with a disability. How to do an amendment tax return   There is an exception to the use test if: You become physically or mentally unable to care for yourself, and You owned and lived in your home as your main home for a total of at least 1 year during the 5-year period before the sale of your home. How to do an amendment tax return Under this exception, you are considered to live in your home during any time within the 5-year period that you own the home and live in a facility (including a nursing home) licensed by a state or political subdivision to care for persons in your condition. How to do an amendment tax return If you meet this exception to the use test, you still have to meet the 2-out-of-5-year ownership test to claim the exclusion. How to do an amendment tax return Previous home destroyed or condemned. How to do an amendment tax return   For the ownership and use tests, you add the time you owned and lived in a previous home that was destroyed or condemned to the time you owned and lived in the replacement home on whose sale you wish to exclude gain. How to do an amendment tax return This rule applies if any part of the basis of the home you sold depended on the basis of the destroyed or condemned home. How to do an amendment tax return Otherwise, you must have owned and lived in the same home for 2 of the 5 years before the sale to qualify for the exclusion. How to do an amendment tax return Members of the uniformed services or Foreign Service, employees of the intelligence community, or employees or volunteers of the Peace Corps. How to do an amendment tax return   You can choose to have the 5-year test period for ownership and use suspended during any period you or your spouse serve on “qualified official extended duty” as a member of the uniformed services or Foreign Service of the United States, or as an employee of the intelligence community. How to do an amendment tax return You can choose to have the 5-year test period for ownership and use suspended during any period you or your spouse serve outside the United States either as an employee of the Peace Corps on "qualified official extended duty" or as an enrolled volunteer or volunteer leader of the Peace Corps. How to do an amendment tax return This means that you may be able to meet the 2-year use test even if, because of your service, you did not actually live in your home for at least the required 2 years during the 5-year period ending on the date of sale. How to do an amendment tax return   If this helps you qualify to exclude gain, you can choose to have the 5-year test period suspended by filing a return for the year of sale that does not include the gain. How to do an amendment tax return For more information about the suspension of the 5-year test period, see Members of the uniformed services or Foreign Service, employees of the intelligence community, or employees or volunteers of the Peace Corps in Publication 523. How to do an amendment tax return Married Persons If you and your spouse file a joint return for the year of sale and one spouse meets the ownership and use tests, you can exclude up to $250,000 of the gain. How to do an amendment tax return (But see Special rules for joint returns , next. How to do an amendment tax return ) Special rules for joint returns. How to do an amendment tax return   You can exclude up to $500,000 of the gain on the sale of your main home if all of the following are true. How to do an amendment tax return You are married and file a joint return for the year. How to do an amendment tax return Either you or your spouse meets the ownership test. How to do an amendment tax return Both you and your spouse meet the use test. How to do an amendment tax return During the 2-year period ending on the date of the sale, neither you nor your spouse excluded gain from the sale of another home. How to do an amendment tax return If either spouse does not satisfy all these requirements, the maximum exclusion that can be claimed by the couple is the total of the maximum exclusions that each spouse would qualify for if not married and the amounts were figured separately. How to do an amendment tax return For this purpose, each spouse is treated as owning the property during the period that either spouse owned the property. How to do an amendment tax return Example 1—one spouse sells a home. How to do an amendment tax return Emily sells her home in June 2013 for a gain of $300,000. How to do an amendment tax return She marries Jamie later in the year. How to do an amendment tax return She meets the ownership and use tests, but Jamie does not. How to do an amendment tax return Emily can exclude up to $250,000 of gain on a separate or joint return for 2013. How to do an amendment tax return The $500,000 maximum exclusion for certain joint returns does not apply because Jamie does not meet the use test. How to do an amendment tax return Example 2—each spouse sells a home. How to do an amendment tax return The facts are the same as in Example 1 except that Jamie also sells a home in 2013 for a gain of $200,000 before he marries Emily. How to do an amendment tax return He meets the ownership and use tests on his home, but Emily does not. How to do an amendment tax return Emily can exclude $250,000 of gain and Jamie can exclude $200,000 of gain on the respective sales of their individual homes. How to do an amendment tax return However, Emily cannot use Jamie's unused exclusion to exclude more than $250,000 of gain. How to do an amendment tax return Therefore, Emily and Jamie must recognize $50,000 of gain on the sale of Emily's home. How to do an amendment tax return The $500,000 maximum exclusion for certain joint returns does not apply because Emily and Jamie do not both meet the use test for the same home. How to do an amendment tax return Sale of main home by surviving spouse. How to do an amendment tax return   If your spouse died and you did not remarry before the date of sale, you are considered to have owned and lived in the property as your main home during any period of time when your spouse owned and lived in it as a main home. How to do an amendment tax return   If you meet all of the following requirements, you may qualify to exclude up to $500,000 of any gain from the sale or exchange of your main home. How to do an amendment tax return The sale or exchange took place after 2008. How to do an amendment tax return The sale or exchange took place no more than 2 years after the date of death of your spouse. How to do an amendment tax return You have not remarried. How to do an amendment tax return You and your spouse met the use test at the time of your spouse's death. How to do an amendment tax return You or your spouse met the ownership test at the time of your spouse's death. How to do an amendment tax return Neither you nor your spouse excluded gain from the sale of another home during the last 2 years. How to do an amendment tax return Example. How to do an amendment tax return   Harry owned and used a house as his main home since 2009. How to do an amendment tax return Harry and Wilma married on July 1, 2013, and from that date they use Harry's house as their main home. How to do an amendment tax return Harry died on August 15, 2013, and Wilma inherited the property. How to do an amendment tax return Wilma sold the property on September 3, 2013, at which time she had not remarried. How to do an amendment tax return Although Wilma owned and used the house for less than 2 years, Wilma is considered to have satisfied the ownership and use tests because her period of ownership and use includes the period that Harry owned and used the property before death. How to do an amendment tax return Home transferred from spouse. How to do an amendment tax return   If your home was transferred to you by your spouse (or former spouse if the transfer was incident to divorce), you are considered to have owned it during any period of time when your spouse owned it. How to do an amendment tax return Use of home after divorce. How to do an amendment tax return   You are considered to have used property as your main home during any period when: You owned it, and Your spouse or former spouse is allowed to live in it under a divorce or separation instrument and uses it as his or her main home. How to do an amendment tax return Reduced Maximum Exclusion If you fail to meet the requirements to qualify for the $250,000 or $500,000 exclusion, you may still qualify for a reduced exclusion. How to do an amendment tax return This applies to those who: Fail to meet the ownership and use tests, or Have used the exclusion within 2 years of selling their current home. How to do an amendment tax return In both cases, to qualify for a reduced exclusion, the sale of your main home must be due to one of the following reasons. How to do an amendment tax return A change in place of employment. How to do an amendment tax return Health. How to do an amendment tax return Unforeseen circumstances. How to do an amendment tax return Unforeseen circumstances. How to do an amendment tax return   The sale of your main home is because of an unforeseen circumstance if your primary reason for the sale is the occurrence of an event that you could not reasonably have anticipated before buying and occupying your main home. How to do an amendment tax return   See Publication 523 for more information and to use Worksheet 3 to figure your reduced maximum exclusion. How to do an amendment tax return Business Use or Rental of Home You may be able to exclude gain from the sale of a home you have used for business or to produce rental income. How to do an amendment tax return But you must meet the ownership and use tests. How to do an amendment tax return Periods of nonqualified use. How to do an amendment tax return   In most cases, gain from the sale or exchange of your main home will not qualify for the exclusion to the extent that the gains are allocated to periods of nonqualified use. How to do an amendment tax return Nonqualified use is any period after 2008 during which neither you nor your spouse (or your former spouse) used the property as a main home with the following exceptions. How to do an amendment tax return Exceptions. How to do an amendment tax return   A period of nonqualified use does not include: Any portion of the 5-year period ending on the date of the sale or exchange after the last date you (or your spouse) use the property as a main home; Any period (not to exceed an aggregate period of 10 years) during which you (or your spouse) are serving on qualified official extended duty: As a member of the uniformed services; As a member of the Foreign Service of the United States; or As an employee of the intelligence community; and Any other period of temporary absence (not to exceed an aggregate period of 2 years) due to change of employment, health conditions, or such other unforeseen circumstances as may be specified by the IRS. How to do an amendment tax return The gain resulting from the sale of the property is allocated between qualified and nonqualified use periods based on the amount of time the property was held for qualified and nonqualified use. How to do an amendment tax return Gain from the sale or exchange of a main home allocable to periods of qualified use will continue to qualify for the exclusion for the sale of your main home. How to do an amendment tax return Gain from the sale or exchange of property allocable to nonqualified use will not qualify for the exclusion. How to do an amendment tax return Calculation. How to do an amendment tax return   To figure the portion of the gain allocated to the period of nonqualified use, multiply the gain by the following fraction:   Total nonqualified use during the period of ownership after 2008      Total period of ownership     This calculation can be found in Worksheet 2, line 10, in Publication 523. How to do an amendment tax return Example 1. How to do an amendment tax return On May 23, 2007, Amy, who is unmarried for all years in this example, bought a house. How to do an amendment tax return She moved in on that date and lived in it until May 31, 2009, when she moved out of the house and put it up for rent. How to do an amendment tax return The house was rented from June 1, 2009, to March 31, 2011. How to do an amendment tax return Amy claimed depreciation deductions in 2009 through 2011 totaling $10,000. How to do an amendment tax return Amy moved back into the house on April 1, 2011, and lived there until she sold it on January 31, 2013, for a gain of $200,000. How to do an amendment tax return During the 5-year period ending on the date of the sale (January 31, 2008-January 31, 2013), Amy owned and lived in the house for more than 2 years as shown in the following table. How to do an amendment tax return Five Year Period Used as  Home Used as  Rental 1/31/08 – 5/31/09 16 months       6/1/09 – 3/31/11   22 months 4/1/11 – 1/31/13 22 months         38 months 22 months During the period Amy owned the house (2,080 days), her period of nonqualified use was 668 days. How to do an amendment tax return Amy divides 668 by 2,080 and obtains a decimal (rounded to at least three decimal places) of 0. How to do an amendment tax return 321. How to do an amendment tax return To figure her gain attributable to the period of nonqualified use, she multiplies $190,000 (the gain not attributable to the $10,000 depreciation deduction) by 0. How to do an amendment tax return 321. How to do an amendment tax return Because the gain attributable to periods of nonqualified use is $60,990, Amy can exclude $129,010 of her gain. How to do an amendment tax return Example 2. How to do an amendment tax return William owned and used a house as his main home from 2007 through 2010. How to do an amendment tax return On January 1, 2011, he moved to another state. How to do an amendment tax return He rented his house from that date until April 30, 2013, when he sold it. How to do an amendment tax return During the 5-year period ending on the date of sale (May 1, 2008-April 30, 2013), William owned and lived in the house for more than 2 years. How to do an amendment tax return He must report the sale on Form 4797 because it was rental property at the time of sale. How to do an amendment tax return Because the period of nonqualified use does not include any part of the 5-year period after the last date William lived in the house, he has no period of nonqualified use. How to do an amendment tax return Because he met the ownership and use tests, he can exclude gain up to $250,000. How to do an amendment tax return However, he cannot exclude the part of the gain equal to the depreciation he claimed or could have claimed for renting the house, as explained next. How to do an amendment tax return Depreciation after May 6, 1997. How to do an amendment tax return   If you were entitled to take depreciation deductions because you used your home for business purposes or as rental property, you cannot exclude the part of your gain equal to any depreciation allowed or allowable as a deduction for periods after May 6, 1997. How to do an amendment tax return If you can show by adequate records or other evidence that the depreciation allowed was less than the amount allowable, then you may limit the amount of gain recognized to the depreciation allowed. How to do an amendment tax return See Publication 544 for more information. How to do an amendment tax return Property used partly for business or rental. How to do an amendment tax return   If you used property partly as a home and partly for business or to produce rental income, see Publication 523. How to do an amendment tax return Reporting the Sale Do not report the 2013 sale of your main home on your tax return unless: You have a gain and do not qualify to exclude all of it, You have a gain and choose not to exclude it, or You received Form 1099-S. How to do an amendment tax return If any of these conditions apply, report the entire gain or loss. How to do an amendment tax return For details on how to report the gain or loss, see the Instructions for Schedule D (Form 1040) and the Instructions for Form 8949. How to do an amendment tax return If you used the home for business or to produce rental income, you may have to use Form 4797 to report the sale of the business or rental part (or the sale of the entire property if used entirely for business or rental). How to do an amendment tax return See Business Use or Rental of Home in Publication 523 and the Instructions for Form 4797. How to do an amendment tax return Installment sale. How to do an amendment tax return    Some sales are made under arrangements that provide for part or all of the selling price to be paid in a later year. How to do an amendment tax return These sales are called “installment sales. How to do an amendment tax return ” If you finance the buyer's purchase of your home yourself instead of having the buyer get a loan or mortgage from a bank, you probably have an installment sale. How to do an amendment tax return You may be able to report the part of the gain you cannot exclude on the installment basis. How to do an amendment tax return    Use Form 6252, Installment Sale Income, to report the sale. How to do an amendment tax return Enter your exclusion on line 15 of Form 6252. How to do an amendment tax return Seller-financed mortgage. How to do an amendment tax return   If you sell your home and hold a note, mortgage, or other financial agreement, the payments you receive in most cases consist of both interest and principal. How to do an amendment tax return You must separately report as interest income the interest you receive as part of each payment. How to do an amendment tax return If the buyer of your home uses the property as a main or second home, you must also report the name, address, and social security number (SSN) of the buyer on line 1 of Schedule B (Form 1040A or 1040). How to do an amendment tax return The buyer must give you his or her SSN, and you must give the buyer your SSN. How to do an amendment tax return Failure to meet these requirements may result in a $50 penalty for each failure. How to do an amendment tax return If either you or the buyer does not have and is not eligible to get an SSN, see Social Security Number in chapter 1. How to do an amendment tax return More information. How to do an amendment tax return   For more information on installment sales, see Publication 537, Installment Sales. How to do an amendment tax return Special Situations The situations that follow may affect your exclusion. How to do an amendment tax return Sale of home acquired in a like-kind exchange. How to do an amendment tax return   You cannot claim the exclusion if: You acquired your home in a like-kind exchange (also known as a section 1031 exchange), or your basis in your home is determined by reference to the basis of the home in the hands of the person who acquired the property in a like-kind exchange (for example, you received the home from that person as a gift), and You sold the home during the 5-year period beginning with the date your home was acquired in the like-kind exchange. How to do an amendment tax return Gain from a like-kind exchange is not taxable at the time of the exchange. How to do an amendment tax return This means that gain will not be taxed until you sell or otherwise dispose of the property you receive. How to do an amendment tax return To defer gain from a like-kind exchange, you must have exchanged business or investment property for business or investment property of a like kind. How to do an amendment tax return For more information about like-kind exchanges, see Publication 544, Sales and Other Dispositions of Assets. How to do an amendment tax return Home relinquished in a like-kind exchange. How to do an amendment tax return   If you use your main home partly for business or rental purposes and then exchange the home for another property, see Publication 523. How to do an amendment tax return Expatriates. How to do an amendment tax return   You cannot claim the exclusion if the expatriation tax applies to you. How to do an amendment tax return The expatriation tax applies to certain U. How to do an amendment tax return S. How to do an amendment tax return citizens who have renounced their citizenship (and to certain long-term residents who have ended their residency). How to do an amendment tax return For more information about the expatriation tax, see Expatriation Tax in chapter 4 of Publication 519, U. How to do an amendment tax return S. How to do an amendment tax return Tax Guide for Aliens. How to do an amendment tax return Home destroyed or condemned. How to do an amendment tax return   If your home was destroyed or condemned, any gain (for example, because of insurance proceeds you received) qualifies for the exclusion. How to do an amendment tax return   Any part of the gain that cannot be excluded (because it is more than the maximum exclusion) can be postponed under the rules explained in: Publication 547, in the case of a home that was destroyed, or Publication 544, chapter 1, in the case of a home that was condemned. How to do an amendment tax return Sale of remainder interest. How to do an amendment tax return   Subject to the other rules in this chapter, you can choose to exclude gain from the sale of a remainder interest in your home. How to do an amendment tax return If you make this choice, you cannot choose to exclude gain from your sale of any other interest in the home that you sell separately. How to do an amendment tax return Exception for sales to related persons. How to do an amendment tax return   You cannot exclude gain from the sale of a remainder interest in your home to a related person. How to do an amendment tax return Related persons include your brothers, sisters, half-brothers, half-sisters, spouse, ancestors (parents, grandparents, etc. How to do an amendment tax return ), and lineal descendants (children, grandchildren, etc. How to do an amendment tax return ). How to do an amendment tax return Related persons also include certain corporations, partnerships, trusts, and exempt organizations. How to do an amendment tax return Recapturing (Paying Back) a Federal Mortgage Subsidy If you financed your home under a federally subsidized program (loans from tax-exempt qualified mortgage bonds or loans with mortgage credit certificates), you may have to recapture all or part of the benefit you received from that program when you sell or otherwise dispose of your home. How to do an amendment tax return You recapture the benefit by increasing your federal income tax for the year of the sale. How to do an amendment tax return You may have to pay this recapture tax even if you can exclude your gain from income under the rules discussed earlier; that exclusion does not affect the recapture tax. How to do an amendment tax return Loans subject to recapture rules. How to do an amendment tax return   The recapture applies to loans that: Came from the proceeds of qualified mortgage bonds, or Were based on mortgage credit certificates. How to do an amendment tax return The recapture also applies to assumptions of these loans. How to do an amendment tax return When recapture applies. How to do an amendment tax return   Recapture of the federal mortgage subsidy applies only if you meet both of the following conditions. How to do an amendment tax return You sell or otherwise dispose of your home at a gain within the first 9 years after the date you close your mortgage loan. How to do an amendment tax return Your income for the year of disposition is more than that year's adjusted qualifying income for your family size for that year (related to the income requirements a person must meet to qualify for the federally subsidized program). How to do an amendment tax return When recapture does not apply. How to do an amendment tax return   Recapture does not apply in any of the following situations. How to do an amendment tax return Your mortgage loan was a qualified home improvement loan (QHIL) of not more than $15,000 used for alterations, repairs, and improvements that protect or improve the basic livability or energy efficiency of your home. How to do an amendment tax return Your mortgage loan was a QHIL of not more than $150,000 in the case of a QHIL used to repair damage from Hurricane Katrina to homes in the hurricane disaster area; a QHIL funded by a qualified mortgage bond that is a qualified Gulf Opportunity Zone Bond; or a QHIL for an owner-occupied home in the Gulf Opportunity Zone (GO Zone), Rita GO Zone, or Wilma GO Zone. How to do an amendment tax return For more information, see Publication 4492, Information for Taxpayers Affected by Hurricanes Katrina, Rita, and Wilma. How to do an amendment tax return Also see Publication 4492-B, Information for Affected Taxpayers in the Midwestern Disaster Areas. How to do an amendment tax return The home is disposed of as a result of your death. How to do an amendment tax return You dispose of the home more than 9 years after the date you closed your mortgage loan. How to do an amendment tax return You transfer the home to your spouse, or to your former spouse incident to a divorce, where no gain is included in your income. How to do an amendment tax return You dispose of the home at a loss. How to do an amendment tax return Your home is destroyed by a casualty, and you replace it on its original site within 2 years after the end of the tax year when the destruction happened. How to do an amendment tax return The replacement period is extended for main homes destroyed in a federally declared disaster area, a Midwestern disaster area, the Kansas disaster area, and the Hurricane Katrina disaster area. How to do an amendment tax return For more information, see Replacement Period in Publication 547. How to do an amendment tax return You refinance your mortgage loan (unless you later meet the conditions listed previously under When recapture applies ). How to do an amendment tax return Notice of amounts. How to do an amendment tax return   At or near the time of settlement of your mortgage loan, you should receive a notice that provides the federally subsidized amount and other information you will need to figure your recapture tax. How to do an amendment tax return How to figure and report the recapture. How to do an amendment tax return    The recapture tax is figured on Form 8828. How to do an amendment tax return If you sell your home and your mortgage is subject to recapture rules, you must file Form 8828 even if you do not owe a recapture tax. How to do an amendment tax return Attach Form 8828 to your Form 1040. How to do an amendment tax return For more information, see Form 8828 and its instructions. 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