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

TurboTax Federal Free Edition - File Taxes Online

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

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


© 2012 - 2018 All rights reserved.

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

Last Day To File Taxes 2014

1040x Tax FormFree Tax Extension10401040x 2011 Free FileFile For 2012 Taxes2011 Tax Forms 1040aFile Free State TaxesFederal Income Tax FormFiling A 1040xFile 2005 Tax ReturnEz Form 10402012 TaxesFiling Form 1040x ElectronicallyFree Turbo Tax Filing 2013Free Tax FilingFederal 1040ez Forms And Instructions 2013Form 1040 For 2011 Tax Year2011 Taxes DueFile 2009 Taxes Online For FreeCheap Tax SoftwareHow To File An Amended Tax Return 2013Can I File State Taxes For FreeIrs Tax TablesFile 2012 TaxesFile Income Taxes OnlineIrs Amendment FormsDo Tax AmendmentEfile 1040x Online1040 Ez Tax Form 2012Irs E File ExtensionIrs 2012 Tax Forms And InstructionsFree Tax File 2010Priortax2011 1040ez FormFree Federal State Tax FormsFiling A 1040xIrs Tax Extension 2011Ammend A Tax ReturnIrs Free Tax FilingHow Can I File 2012 Taxes Online

Last Day To File Taxes 2014

Last day to file taxes 2014 Index A Adopted child, Adopted child. Last day to file taxes 2014 Adoption taxpayer identification number (ATIN), Married child. Last day to file taxes 2014 Age test (see Qualifying child) Alaska Permanent Fund dividends, Rule 6—Your Investment Income Must Be $3,300 or Less Alimony, Income That Is Not Earned Income Annuities, Income That Is Not Earned Income Armed forces, Nontaxable military pay. Last day to file taxes 2014 , Military personnel stationed outside the United States. Last day to file taxes 2014 , Temporary absences. Last day to file taxes 2014 , Joint Return Test, Military personnel stationed outside the United States. Last day to file taxes 2014 , Nontaxable combat pay. Last day to file taxes 2014 Assistance (see Tax help) B Basic Allowance for Housing (BAH), Nontaxable military pay. Last day to file taxes 2014 Basic Allowance for Subsistence (BAS), Nontaxable military pay. Last day to file taxes 2014 C Child Adopted child, Adopted child. Last day to file taxes 2014 Birth or death of, Birth or death of child. Last day to file taxes 2014 Foster child, Relationship Test, Foster child. Last day to file taxes 2014 , Rule 10—You Cannot Be a Qualifying Child of Another Taxpayer, Kidnapped child, Kidnapped child. Last day to file taxes 2014 Married child, Married child. Last day to file taxes 2014 Child support, Income That Is Not Earned Income Clergy, Clergy. Last day to file taxes 2014 Combat zone pay, Nontaxable combat pay. Last day to file taxes 2014 Community property, Community property. Last day to file taxes 2014 , Community property. Last day to file taxes 2014 D Detailed examples, Chapter 6—Detailed Examples Disability benefits, Disability Benefits Disallowance of the EIC, Chapter 5—Disallowance of the EIC Dividend income, Income That Is Not Earned Income Divorced parents, special rule, Special rule for divorced or separated parents (or parents who live apart). Last day to file taxes 2014 Domestic partner, Nevada, Washington, and California domestic partners. Last day to file taxes 2014 E Earned income, Rule 7—You Must Have Earned Income, Earned Income Earned income credit (EIC), EIC Table EITC Assistant, Is There Help Online? Extended active duty, Extended active duty. Last day to file taxes 2014 , Military personnel stationed outside the United States. Last day to file taxes 2014 F Figuring EIC yourself, Chapter 4—Figuring and Claiming the EIC, How To Figure the EIC Yourself Filing status: Head of household, Rule 3—Your Filing Status Cannot Be Married Filing Separately Married filing separately, Rule 3—Your Filing Status Cannot Be Married Filing Separately Forms: 1040, Do I Need This Publication?, Adjusted gross income (AGI). Last day to file taxes 2014 , No SSN. Last day to file taxes 2014 , Form 1040. Last day to file taxes 2014 1040A, Adjusted gross income (AGI). Last day to file taxes 2014 , No SSN. Last day to file taxes 2014 , Form 1040A. Last day to file taxes 2014 1040EZ, Adjusted gross income (AGI). Last day to file taxes 2014 , No SSN. Last day to file taxes 2014 , Form 1040EZ. Last day to file taxes 2014 1040X, Rule 2—You Must Have a Valid Social Security Number (SSN), Filing deadline approaching and still no SSN. Last day to file taxes 2014 2555, Rule 5—You Cannot File Form 2555 or Form 2555-EZ 2555–EZ, Rule 5—You Cannot File Form 2555 or Form 2555-EZ 4029, Minister's housing. Last day to file taxes 2014 , Approved Form 4361 or Form 4029, Form 4029. Last day to file taxes 2014 4361, Minister's housing. Last day to file taxes 2014 , Approved Form 4361 or Form 4029, Form 4361. Last day to file taxes 2014 4797, Do I Need This Publication? 4868, Filing deadline approaching and still no SSN. Last day to file taxes 2014 8814, Do I Need This Publication? 8862, Chapter 5—Disallowance of the EIC, Form 8862 Foster care payments, Income That Is Not Earned Income Foster child, Relationship Test, Foster child. Last day to file taxes 2014 , Rule 10—You Cannot Be a Qualifying Child of Another Taxpayer, Fraud, Exception 2. Last day to file taxes 2014 , Are You Prohibited From Claiming the EIC for a Period of Years? Free tax services, Free help with your tax return. Last day to file taxes 2014 H Head of household, Community property. Last day to file taxes 2014 , Spouse did not live with you. Last day to file taxes 2014 , Community property. Last day to file taxes 2014 , Rule 9—Your Qualifying Child Cannot Be Used by More Than One Person To Claim the EIC, Applying Rule 9 to divorced or separated parents (or parents who live apart). Last day to file taxes 2014 Help (see Tax help) Home Homeless shelter, Rule 14—You Must Have Lived in the United States More Than Half of the Year Military, Rule 14—You Must Have Lived in the United States More Than Half of the Year United States, Rule 14—You Must Have Lived in the United States More Than Half of the Year Homeless, Homeless shelter. Last day to file taxes 2014 , Homeless shelter. Last day to file taxes 2014 I Income that is not earned income, Income That Is Not Earned Income Individual taxpayer identification number (ITIN), Other taxpayer identification number. Last day to file taxes 2014 , Married child. Last day to file taxes 2014 Inmate, Earnings while an inmate. Last day to file taxes 2014 , Figuring earned income. Last day to file taxes 2014 Interest, Income That Is Not Earned Income Investment income, Rule 6—Your Investment Income Must Be $3,300 or Less IRS can figure EIC for you, IRS Will Figure the EIC for You J Joint return test (see Qualifying child) K Kidnapped child, Kidnapped child. Last day to file taxes 2014 M Married child, Married child. Last day to file taxes 2014 Married filing a joint return, Rule 4—You Must Be a U. Last day to file taxes 2014 S. Last day to file taxes 2014 Citizen or Resident Alien All Year Married filing separately, Spouse did not live with you. Last day to file taxes 2014 Military Combat pay, Nontaxable military pay. Last day to file taxes 2014 Nontaxable pay, Nontaxable military pay. Last day to file taxes 2014 Outside U. Last day to file taxes 2014 S. Last day to file taxes 2014 , Military personnel stationed outside the United States. Last day to file taxes 2014 Minister, Net earnings from self-employment. Last day to file taxes 2014 , Minister's housing. Last day to file taxes 2014 , Church employees. Last day to file taxes 2014 N Net earnings, self-employment, Net earnings from self-employment. Last day to file taxes 2014 Nonresident alien, Rule 4—You Must Be a U. Last day to file taxes 2014 S. Last day to file taxes 2014 Citizen or Resident Alien All Year, Step 1. Last day to file taxes 2014 O Online help EITC Assistant, Is There Help Online? P Parents, divorced or separated, Married child. Last day to file taxes 2014 , Examples. Last day to file taxes 2014 , Special rule for divorced or separated parents (or parents who live apart). Last day to file taxes 2014 Passive activity, Worksheet 1. Last day to file taxes 2014 Investment Income If You Are Filing Form 1040 Pensions, Income That Is Not Earned Income Permanently and totally disabled, Permanently and totally disabled. Last day to file taxes 2014 Prisoner, Figuring earned income. Last day to file taxes 2014 Publications (see Tax help) Q Qualifying child, Can I Claim the EIC?, Do I Have To Have A Child To Qualify For The EIC?, Chapter 2—Rules If You Have a Qualifying Child Age test, Rule 8—Your Child Must Meet the Relationship, Age, Residency, and Joint Return Tests, Age Test Home, Residency Test Joint return test, Rule 8—Your Child Must Meet the Relationship, Age, Residency, and Joint Return Tests Permanently and totally disabled, Permanently and totally disabled. Last day to file taxes 2014 Relationship test, Rule 8—Your Child Must Meet the Relationship, Age, Residency, and Joint Return Tests Residency test, Residency Test United States, Residency Test R Railroad retirement benefits, Income That Is Not Earned Income Registered domestic partner, Nevada, Washington, and California domestic partners. Last day to file taxes 2014 Relationship test (see Qualifying child) Reminders, Reminders Residency test (see Qualifying child) S Salaries, wages, and tips, Earned Income, Wages, salaries, and tips. Last day to file taxes 2014 , Earned Income Schedules: C, EIC Worksheet A. Last day to file taxes 2014 , EIC Worksheet B. Last day to file taxes 2014 C-EZ, EIC Worksheet A. Last day to file taxes 2014 , EIC Worksheet B. Last day to file taxes 2014 EIC, Chapter 2—Rules If You Have a Qualifying Child, Kidnapped child. Last day to file taxes 2014 , Figuring earned income. Last day to file taxes 2014 , Nontaxable combat pay. Last day to file taxes 2014 , How To Figure the EIC Yourself, When to use the optional methods of figuring net earnings. Last day to file taxes 2014 , Schedule EIC SE, Figuring earned income. Last day to file taxes 2014 , Clergy. Last day to file taxes 2014 , Church employees. Last day to file taxes 2014 , EIC Worksheet A. Last day to file taxes 2014 , EIC Worksheet B. Last day to file taxes 2014 , Net earnings from self-employment $400 or more. Last day to file taxes 2014 , When to use the optional methods of figuring net earnings. Last day to file taxes 2014 , When both spouses have self-employment income. Last day to file taxes 2014 School, School defined. Last day to file taxes 2014 Self-employed persons, Rule 7—You Must Have Earned Income, Figuring earned income. Last day to file taxes 2014 , EIC Worksheet B. Last day to file taxes 2014 Self-employment income, Earned Income Self-employment tax, Net earnings from self-employment $400 or more. Last day to file taxes 2014 Separated parents, special rule, Married child. Last day to file taxes 2014 Social security benefits, Income That Is Not Earned Income Social security number (SSN), Rule 2—You Must Have a Valid Social Security Number (SSN), Valid for work only with INS authorization or DHS authorization. Last day to file taxes 2014 , No SSN. Last day to file taxes 2014 , Getting an SSN. Last day to file taxes 2014 , Married child. Last day to file taxes 2014 , Exception for math or clerical errors. Last day to file taxes 2014 Statutory employee, Statutory employee. Last day to file taxes 2014 , Figuring earned income. Last day to file taxes 2014 , EIC Worksheet A. Last day to file taxes 2014 , Statutory employees. Last day to file taxes 2014 Strike benefits, Strike benefits. Last day to file taxes 2014 Student, Student defined. Last day to file taxes 2014 T Tax help, How To Get Tax Help Taxpayer identification number Adoption identification number (ATIN), Married child. Last day to file taxes 2014 Individual taxpayer identification number (ITIN), Other taxpayer identification number. Last day to file taxes 2014 Social security number (SSN), Other taxpayer identification number. Last day to file taxes 2014 Tiebreaker rules, Tiebreaker rules. Last day to file taxes 2014 Tips, wages, and salaries, Earned Income, Wages, salaries, and tips. Last day to file taxes 2014 , Earned Income TTY/TDD information, How To Get Tax Help U Unemployment compensation, Income That Is Not Earned Income United States, United States. Last day to file taxes 2014 V Veterans' benefits, Income That Is Not Earned Income W Wages, salaries, and tips, Earned Income, Wages, salaries, and tips. Last day to file taxes 2014 , Earned Income Welfare benefits, Income That Is Not Earned Income Workers' compensation benefits, Income That Is Not Earned Income Workfare payments, Workfare payments. Last day to file taxes 2014 Worksheet 1, Worksheet 1. Last day to file taxes 2014 Investment Income If You Are Filing Form 1040 Worksheet 2, Worksheet 2. Last day to file taxes 2014 Worksheet for Line 4 of Worksheet 1 Prev  Up     Home   More Online Publications
Español

Talk to Your Pharmacist

Your pharmacist oversees an important part of your health care by providing the medications prescribed by other health care professionals. It’s important that you are proactive and communicate honestly with your pharmacist. Topics you should discuss with your pharmacist include:

  • What other medications you take
  • Whether you have allergic reactions to any medications
  • Whether there is a generic version of the medication you can take instead
  • Any questions about the medication you are receiving. Review and discuss information on your patient insert.
  • Whether there is a risk that your medications don’t mix well with each other
  • Whether there any side effects to the medications

Remember to finish your entire prescription, since some illnesses require treatment to continue past the time when symptoms go away. Make certain that your pharmacy has your current health and prescription insurance on record so you get the best price possible. If you have difficulty paying for your medications, contact the manufacturer; some pharmaceutical companies have patient assistance programs to help you afford your medication.

Online Pharmacies

An increasing number of consumers are replacing a trip to the pharmacy with a trip on the Internet. While there are online pharmacies that provide legitimate prescription services, there are also some questionable sites that make buying medicines online risky. Do business only with a licensed U.S. pharmacy. Check with the National Association of Boards of Pharmacy to determine whether the site is licensed and in good standing. There are a few clues you can use to determine whether an online pharmacy is licensed, such as the website does not:

  • identify the organization or company sponsoring the site.
  • include a U.S. address and telephone number for the company.

An online pharmacy should offer you access to a registered pharmacist who can answer any questions you might have about drug interactions, side effects, and other safety precautions. Be wary of sites that:

  • Sell drugs without a prescription
  • Sell drugs not approved by the FDA
  • Advertise quick cures
  • Tell stories of "amazing results"
  • Claims that the medical profession has tried to keep the product from the public

If you suspect a site is not a licensed pharmacy, report it and any complaints to the U.S. Food and Drug Administration.

The Last Day To File Taxes 2014

Last day to file taxes 2014 4. Last day to file taxes 2014   Foreign Earned Income and Housing: Exclusion – Deduction Table of Contents Topics - This chapter discusses: Useful Items - You may want to see: Who Qualifies for the Exclusions and the Deduction? RequirementsTax Home in Foreign Country Bona Fide Residence Test Physical Presence Test Waiver of Time Requirements U. Last day to file taxes 2014 S. Last day to file taxes 2014 Travel Restrictions Foreign Earned Income Foreign Earned Income ExclusionLimit on Excludable Amount Choosing the Exclusion Foreign Housing Exclusion and DeductionHousing Amount Foreign Housing Exclusion Foreign Housing Deduction Married Couples Form 2555 and Form 2555-EZForm 2555-EZ Form 2555 Topics - This chapter discusses: Who qualifies for the foreign earned income exclusion, the foreign housing exclusion, and the foreign housing deduction, The requirements that must be met to claim either exclusion or the deduction, How to figure the foreign earned income exclusion, and How to figure the foreign housing exclusion and the foreign housing deduction. Last day to file taxes 2014 Useful Items - You may want to see: Publication 519 U. Last day to file taxes 2014 S. Last day to file taxes 2014 Tax Guide for Aliens 570 Tax Guide for Individuals With Income from U. Last day to file taxes 2014 S. Last day to file taxes 2014 Possessions 596 Earned Income Credit (EIC) Form (and Instructions) 1040X Amended U. Last day to file taxes 2014 S. Last day to file taxes 2014 Individual Income Tax Return 2555 Foreign Earned Income 2555-EZ Foreign Earned Income Exclusion See chapter 7 for information about getting these publications and forms. Last day to file taxes 2014 Who Qualifies for the Exclusions and the Deduction? If you meet certain requirements, you may qualify for the foreign earned income and foreign housing exclusions and the foreign housing deduction. Last day to file taxes 2014 If you are a U. Last day to file taxes 2014 S. Last day to file taxes 2014 citizen or a resident alien of the United States and you live abroad, you are taxed on your worldwide income. Last day to file taxes 2014 However, you may qualify to exclude from income up to $97,600 of your foreign earnings. Last day to file taxes 2014 In addition, you can exclude or deduct certain foreign housing amounts. Last day to file taxes 2014 See Foreign Earned Income Exclusion and Foreign Housing Exclusion and Deduction, later. Last day to file taxes 2014 You also may be entitled to exclude from income the value of meals and lodging provided to you by your employer. Last day to file taxes 2014 See Exclusion of Meals and Lodging, later. Last day to file taxes 2014 Requirements To claim the foreign earned income exclusion, the foreign housing exclusion, or the foreign housing deduction, you must meet all three of the following requirements. Last day to file taxes 2014 Your tax home must be in a foreign country. Last day to file taxes 2014 You must have foreign earned income. Last day to file taxes 2014 You must be one of the following. Last day to file taxes 2014 A U. Last day to file taxes 2014 S. Last day to file taxes 2014 citizen who is a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year. Last day to file taxes 2014 A U. Last day to file taxes 2014 S. Last day to file taxes 2014 resident alien who is a citizen or national of a country with which the United States has an income tax treaty in effect and who is a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year. Last day to file taxes 2014 A U. Last day to file taxes 2014 S. Last day to file taxes 2014 citizen or a U. Last day to file taxes 2014 S. Last day to file taxes 2014 resident alien who is physically present in a foreign country or countries for at least 330 full days during any period of 12 consecutive months. Last day to file taxes 2014 See Publication 519 to find out if you are a U. Last day to file taxes 2014 S. Last day to file taxes 2014 resident alien for tax purposes and whether you keep that alien status when you temporarily work abroad. Last day to file taxes 2014 If you are a nonresident alien married to a U. Last day to file taxes 2014 S. Last day to file taxes 2014 citizen or resident alien, and both you and your spouse choose to treat you as a resident alien, you are a resident alien for tax purposes. Last day to file taxes 2014 For information on making the choice, see the discussion in chapter 1 under Nonresident Alien Spouse Treated as a Resident . Last day to file taxes 2014 Waiver of minimum time requirements. Last day to file taxes 2014   The minimum time requirements for bona fide residence and physical presence can be waived if you must leave a foreign country because of war, civil unrest, or similar adverse conditions in that country. Last day to file taxes 2014 This is fully explained under Waiver of Time Requirements , later. Last day to file taxes 2014   See Figure 4-A and information in this chapter to determine if you are eligible to claim either exclusion or the deduction. Last day to file taxes 2014 Tax Home in Foreign Country To qualify for the foreign earned income exclusion, the foreign housing exclusion, or the foreign housing deduction, your tax home must be in a foreign country throughout your period of bona fide residence or physical presence abroad. Last day to file taxes 2014 Bona fide residence and physical presence are explained later. Last day to file taxes 2014 Tax Home 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. Last day to file taxes 2014 Your tax home is the place where you are permanently or indefinitely engaged to work as an employee or self-employed individual. Last day to file taxes 2014 Having a “tax home” in a given location does not necessarily mean that the given location is your residence or domicile for tax purposes. Last day to file taxes 2014 If you do not have a regular or main place of business because of the nature of your work, your tax home may be the place where you regularly live. Last day to file taxes 2014 If you have neither a regular or main place of business nor a place where you regularly live, you are considered an itinerant and your tax home is wherever you work. Last day to file taxes 2014 You are not considered to have a tax home in a foreign country for any period in which your abode is in the United States. Last day to file taxes 2014 However, your abode is not necessarily in the United States while you are temporarily in the United States. Last day to file taxes 2014 Your abode is also not necessarily in the United States merely because you maintain a dwelling in the United States, whether or not your spouse or dependents use the dwelling. Last day to file taxes 2014 “Abode” has been variously defined as one's home, habitation, residence, domicile, or place of dwelling. Last day to file taxes 2014 It does not mean your principal place of business. Last day to file taxes 2014 “Abode” has a domestic rather than a vocational meaning and does not mean the same as “tax home. Last day to file taxes 2014 ” The location of your abode often will depend on where you maintain your economic, family, and personal ties. Last day to file taxes 2014 Example 1. Last day to file taxes 2014 You are employed on an offshore oil rig in the territorial waters of a foreign country and work a 28-day on/28-day off schedule. Last day to file taxes 2014 You return to your family residence in the United States during your off periods. Last day to file taxes 2014 You are considered to have an abode in the United States and do not satisfy the tax home test in the foreign country. Last day to file taxes 2014 You cannot claim either of the exclusions or the housing deduction. Last day to file taxes 2014 Example 2. Last day to file taxes 2014 For several years, you were a marketing executive with a producer of machine tools in Toledo, Ohio. Last day to file taxes 2014 In November of last year, your employer transferred you to London, England, for a minimum of 18 months to set up a sales operation for Europe. Last day to file taxes 2014 Before you left, you distributed business cards showing your business and home addresses in London. Last day to file taxes 2014 You kept ownership of your home in Toledo but rented it to another family. Last day to file taxes 2014 You placed your car in storage. Last day to file taxes 2014 In November of last year, you moved your spouse, children, furniture, and family pets to a home your employer rented for you in London. Last day to file taxes 2014 Shortly after moving, you leased a car and you and your spouse got British driving licenses. Last day to file taxes 2014 Your entire family got library cards for the local public library. Last day to file taxes 2014 You and your spouse opened bank accounts with a London bank and secured consumer credit. Last day to file taxes 2014 You joined a local business league and both you and your spouse became active in the neighborhood civic association and worked with a local charity. Last day to file taxes 2014 Your abode is in London for the time you live there. Last day to file taxes 2014 You satisfy the tax home test in the foreign country. Last day to file taxes 2014 Please click here for the text description of the image. Last day to file taxes 2014 Figure 4–A Can I Claim the Exclusion or Deduction? Temporary or Indefinite Assignment The location of your tax home often depends on whether your assignment is temporary or indefinite. Last day to file taxes 2014 If you are temporarily absent from your tax home in the United States on business, you may be able to deduct your away-from-home expenses (for travel, meals, and lodging), but you would not qualify for the foreign earned income exclusion. Last day to file taxes 2014 If your new work assignment is for an indefinite period, your new place of employment becomes your tax home and you would not be able to deduct any of the related expenses that you have in the general area of this new work assignment. Last day to file taxes 2014 If your new tax home is in a foreign country and you meet the other requirements, your earnings may qualify for the foreign earned income exclusion. Last day to file taxes 2014 If you expect your employment away from home in a single location to last, and it does last, for 1 year or less, it is temporary unless facts and circumstances indicate otherwise. Last day to file taxes 2014 If you expect it to last for more than 1 year, it is indefinite. Last day to file taxes 2014 If you expect it to last for 1 year or less, but at some later date you expect it to last longer than 1 year, it is temporary (in the absence of facts and circumstances indicating otherwise) until your expectation changes. Last day to file taxes 2014 Once your expectation changes, it is indefinite. Last day to file taxes 2014 Foreign Country To meet the bona fide residence test or the physical presence test, you must live in or be present in a foreign country. Last day to file taxes 2014 A foreign country includes any territory under the sovereignty of a government other than that of the United States. Last day to file taxes 2014 The term “foreign country” includes the country's airspace and territorial waters, but not international waters and the airspace above them. Last day to file taxes 2014 It also includes the seabed and subsoil of those submarine areas adjacent to the country's territorial waters over which it has exclusive rights under international law to explore and exploit the natural resources. Last day to file taxes 2014 The term “foreign country” does not include Antarctica or U. Last day to file taxes 2014 S. Last day to file taxes 2014 possessions such as Puerto Rico, Guam, the Commonwealth of the Northern Mariana Islands, the U. Last day to file taxes 2014 S. Last day to file taxes 2014 Virgin Islands, and Johnston Island. Last day to file taxes 2014 For purposes of the foreign earned income exclusion, the foreign housing exclusion, and the foreign housing deduction, the terms “foreign,” “abroad,” and “overseas” refer to areas outside the United States and those areas listed or described in the previous sentence. Last day to file taxes 2014 American Samoa, Guam, and the Commonwealth of the Northern Mariana Islands Residence or presence in a U. Last day to file taxes 2014 S. Last day to file taxes 2014 possession does not qualify you for the foreign earned income exclusion. Last day to file taxes 2014 You may, however, qualify for an exclusion of your possession income on your U. Last day to file taxes 2014 S. Last day to file taxes 2014 return. Last day to file taxes 2014 American Samoa. Last day to file taxes 2014   There is a possession exclusion available to individuals who are bona fide residents of American Samoa for the entire tax year. Last day to file taxes 2014 Gross income from sources within American Samoa may be eligible for this exclusion. Last day to file taxes 2014 Income that is effectively connected with the conduct of a trade or business within American Samoa also may be eligible for this exclusion. Last day to file taxes 2014 Use Form 4563, Exclusion of Income for Bona Fide Residents of American Samoa, to figure the exclusion. Last day to file taxes 2014 Guam and the Commonwealth of the Northern Mariana Islands. Last day to file taxes 2014   An exclusion will be available to residents of Guam and the Commonwealth of the Northern Mariana Islands if, and when, new implementation agreements take effect between the United States and those possessions. Last day to file taxes 2014   For more information, see Publication 570. Last day to file taxes 2014 Puerto Rico and U. Last day to file taxes 2014 S. Last day to file taxes 2014 Virgin Islands Residents of Puerto Rico and the U. Last day to file taxes 2014 S. Last day to file taxes 2014 Virgin Islands cannot claim the foreign earned income exclusion or the foreign housing exclusion. Last day to file taxes 2014 Puerto Rico. Last day to file taxes 2014   Generally, if you are a U. Last day to file taxes 2014 S. Last day to file taxes 2014 citizen who is a bona fide resident of Puerto Rico for the entire tax year, you are not subject to U. Last day to file taxes 2014 S. Last day to file taxes 2014 tax on income from Puerto Rican sources. Last day to file taxes 2014 This does not include amounts paid for services performed as an employee of the United States. Last day to file taxes 2014 However, you are subject to U. Last day to file taxes 2014 S. Last day to file taxes 2014 tax on your income from sources outside Puerto Rico. Last day to file taxes 2014 In figuring your U. Last day to file taxes 2014 S. Last day to file taxes 2014 tax, you cannot deduct expenses allocable to income not subject to tax. Last day to file taxes 2014 Bona Fide Residence Test You meet the bona fide residence test if you are a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year. Last day to file taxes 2014 You can use the bona fide residence test to qualify for the exclusions and the deduction only if you are either: A U. Last day to file taxes 2014 S. Last day to file taxes 2014 citizen, or A U. Last day to file taxes 2014 S. Last day to file taxes 2014 resident alien who is a citizen or national of a country with which the United States has an income tax treaty in effect. Last day to file taxes 2014 You do not automatically acquire bona fide resident status merely by living in a foreign country or countries for 1 year. Last day to file taxes 2014 If you go to a foreign country to work on a particular job for a specified period of time, you ordinarily will not be regarded as a bona fide resident of that country even though you work there for 1 tax year or longer. Last day to file taxes 2014 The length of your stay and the nature of your job are only two of the factors to be considered in determining whether you meet the bona fide residence test. Last day to file taxes 2014 Bona fide residence. Last day to file taxes 2014   To meet the bona fide residence test, you must have established a bona fide residence in a foreign country. Last day to file taxes 2014   Your bona fide residence is not necessarily the same as your domicile. Last day to file taxes 2014 Your domicile is your permanent home, the place to which you always return or intend to return. Last day to file taxes 2014 Example. Last day to file taxes 2014 You could have your domicile in Cleveland, Ohio, and a bona fide residence in Edinburgh, Scotland, if you intend to return eventually to Cleveland. Last day to file taxes 2014 The fact that you go to Scotland does not automatically make Scotland your bona fide residence. Last day to file taxes 2014 If you go there as a tourist, or on a short business trip, and return to the United States, you have not established bona fide residence in Scotland. Last day to file taxes 2014 But if you go to Scotland to work for an indefinite or extended period and you set up permanent quarters there for yourself and your family, you probably have established a bona fide residence in a foreign country, even though you intend to return eventually to the United States. Last day to file taxes 2014 You are clearly not a resident of Scotland in the first instance. Last day to file taxes 2014 However, in the second, you are a resident because your stay in Scotland appears to be permanent. Last day to file taxes 2014 If your residency is not as clearly defined as either of these illustrations, it may be more difficult to decide whether you have established a bona fide residence. Last day to file taxes 2014 Determination. Last day to file taxes 2014   Questions of bona fide residence are determined according to each individual case, taking into account factors such as your intention, the purpose of your trip, and the nature and length of your stay abroad. Last day to file taxes 2014   To meet the bona fide residence test, you must show the Internal Revenue Service (IRS) that you have been a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year. Last day to file taxes 2014 The IRS decides whether you are a bona fide resident of a foreign country largely on the basis of facts you report on Form 2555. Last day to file taxes 2014 IRS cannot make this determination until you file Form 2555. Last day to file taxes 2014 Statement to foreign authorities. Last day to file taxes 2014   You are not considered a bona fide resident of a foreign country if you make a statement to the authorities of that country that you are not a resident of that country, and the authorities: Hold that you are not subject to their income tax laws as a resident, or Have not made a final decision on your status. Last day to file taxes 2014 Special agreements and treaties. Last day to file taxes 2014   An income tax exemption provided in a treaty or other international agreement will not in itself prevent you from being a bona fide resident of a foreign country. Last day to file taxes 2014 Whether a treaty prevents you from becoming a bona fide resident of a foreign country is determined under all provisions of the treaty, including specific provisions relating to residence or privileges and immunities. Last day to file taxes 2014 Example 1. Last day to file taxes 2014 You are a U. Last day to file taxes 2014 S. Last day to file taxes 2014 citizen employed in the United Kingdom by a U. Last day to file taxes 2014 S. Last day to file taxes 2014 employer under contract with the U. Last day to file taxes 2014 S. Last day to file taxes 2014 Armed Forces. Last day to file taxes 2014 You are not subject to the North Atlantic Treaty Status of Forces Agreement. Last day to file taxes 2014 You may be a bona fide resident of the United Kingdom. Last day to file taxes 2014 Example 2. Last day to file taxes 2014 You are a U. Last day to file taxes 2014 S. Last day to file taxes 2014 citizen in the United Kingdom who qualifies as an “employee” of an armed service or as a member of a “civilian component” under the North Atlantic Treaty Status of Forces Agreement. Last day to file taxes 2014 You are not a bona fide resident of the United Kingdom. Last day to file taxes 2014 Example 3. Last day to file taxes 2014 You are a U. Last day to file taxes 2014 S. Last day to file taxes 2014 citizen employed in Japan by a U. Last day to file taxes 2014 S. Last day to file taxes 2014 employer under contract with the U. Last day to file taxes 2014 S. Last day to file taxes 2014 Armed Forces. Last day to file taxes 2014 You are subject to the agreement of the Treaty of Mutual Cooperation and Security between the United States and Japan. Last day to file taxes 2014 Being subject to the agreement does not make you a bona fide resident of Japan. Last day to file taxes 2014 Example 4. Last day to file taxes 2014 You are a U. Last day to file taxes 2014 S. Last day to file taxes 2014 citizen employed as an “official” by the United Nations in Switzerland. Last day to file taxes 2014 You are exempt from Swiss taxation on the salary or wages paid to you by the United Nations. Last day to file taxes 2014 This does not prevent you from being a bona fide resident of Switzerland. Last day to file taxes 2014 Effect of voting by absentee ballot. Last day to file taxes 2014   If you are a U. Last day to file taxes 2014 S. Last day to file taxes 2014 citizen living abroad, you can vote by absentee ballot in any election held in the United States without risking your status as a bona fide resident of a foreign country. Last day to file taxes 2014   However, if you give information to the local election officials about the nature and length of your stay abroad that does not match the information you give for the bona fide residence test, the information given in connection with absentee voting will be considered in determining your status, but will not necessarily be conclusive. Last day to file taxes 2014 Uninterrupted period including entire tax year. Last day to file taxes 2014   To meet the bona fide residence test, you must reside in a foreign country or countries for an uninterrupted period that includes an entire tax year. Last day to file taxes 2014 An entire tax year is from January 1 through December 31 for taxpayers who file their income tax returns on a calendar year basis. Last day to file taxes 2014   During the period of bona fide residence in a foreign country, you can leave the country for brief or temporary trips back to the United States or elsewhere for vacation or business. Last day to file taxes 2014 To keep your status as a bona fide resident of a foreign country, you must have a clear intention of returning from such trips, without unreasonable delay, to your foreign residence or to a new bona fide residence in another foreign country. Last day to file taxes 2014 Example 1. Last day to file taxes 2014 You arrived with your family in Lisbon, Portugal, on November 1, 2011. Last day to file taxes 2014 Your assignment is indefinite, and you intend to live there with your family until your company sends you to a new post. Last day to file taxes 2014 You immediately established residence there. Last day to file taxes 2014 You spent April of 2012 at a business conference in the United States. Last day to file taxes 2014 Your family stayed in Lisbon. Last day to file taxes 2014 Immediately following the conference, you returned to Lisbon and continued living there. Last day to file taxes 2014 On January 1, 2013, you completed an uninterrupted period of residence for a full tax year (2012), and you meet the bona fide residence test. Last day to file taxes 2014 Example 2. Last day to file taxes 2014 Assume the same facts as in Example 1, except that you transferred back to the United States on December 13, 2012. Last day to file taxes 2014 You would not meet the bona fide residence test because your bona fide residence in the foreign country, although it lasted more than a year, did not include a full tax year. Last day to file taxes 2014 You may, however, qualify for the foreign earned income exclusion or the housing exclusion or deduction under the physical presence test (discussed later). Last day to file taxes 2014 Bona fide resident for part of a year. Last day to file taxes 2014   Once you have established bona fide residence in a foreign country for an uninterrupted period that includes an entire tax year, you are a bona fide resident of that country for the period starting with the date you actually began the residence and ending with the date you abandon the foreign residence. Last day to file taxes 2014 Your period of bona fide residence can include an entire tax year plus parts of 2 other tax years. Last day to file taxes 2014 Example. Last day to file taxes 2014 You were a bona fide resident of Singapore from March 1, 2011, through September 14, 2013. Last day to file taxes 2014 On September 15, 2013, you returned to the United States. Last day to file taxes 2014 Since you were a bona fide resident of a foreign country for all of 2012, you were also a bona fide resident of a foreign country from March 1, 2011, through the end of 2011 and from January 1, 2013, through September 14, 2013. Last day to file taxes 2014 Reassignment. Last day to file taxes 2014   If you are assigned from one foreign post to another, you may or may not have a break in foreign residence between your assignments, depending on the circumstances. Last day to file taxes 2014 Example 1. Last day to file taxes 2014 You were a resident of Pakistan from October 1, 2012, through November 30, 2013. Last day to file taxes 2014 On December 1, 2013, you and your family returned to the United States to wait for an assignment to another foreign country. Last day to file taxes 2014 Your household goods also were returned to the United States. Last day to file taxes 2014 Your foreign residence ended on November 30, 2013, and did not begin again until after you were assigned to another foreign country and physically entered that country. Last day to file taxes 2014 Since you were not a bona fide resident of a foreign country for the entire tax year of 2012 or 2013 you do not meet the bona fide residence test in either year. Last day to file taxes 2014 You may, however, qualify for the foreign earned income exclusion or the housing exclusion or deduction under the physical presence test, discussed later. Last day to file taxes 2014 Example 2. Last day to file taxes 2014 Assume the same facts as in Example 1, except that upon completion of your assignment in Pakistan you were given a new assignment to Turkey. Last day to file taxes 2014 On December 1, 2013, you and your family returned to the United States for a month's vacation. Last day to file taxes 2014 On January 2, 2014, you arrived in Turkey for your new assignment. Last day to file taxes 2014 Because you did not interrupt your bona fide residence abroad, you meet the bona fide residence test. Last day to file taxes 2014 Physical Presence Test You meet the physical presence test if you are physically present in a foreign country or countries 330 full days during a period of 12 consecutive months. Last day to file taxes 2014 The 330 days do not have to be consecutive. Last day to file taxes 2014 Any U. Last day to file taxes 2014 S. Last day to file taxes 2014 citizen or resident alien can use the physical presence test to qualify for the exclusions and the deduction. Last day to file taxes 2014 The physical presence test is based only on how long you stay in a foreign country or countries. Last day to file taxes 2014 This test does not depend on the kind of residence you establish, your intentions about returning, or the nature and purpose of your stay abroad. Last day to file taxes 2014 330 full days. Last day to file taxes 2014   Generally, to meet the physical presence test, you must be physically present in a foreign country or countries for at least 330 full days during a 12-month period. Last day to file taxes 2014 You can count days you spent abroad for any reason. Last day to file taxes 2014 You do not have to be in a foreign country only for employment purposes. Last day to file taxes 2014 You can be on vacation. Last day to file taxes 2014   You do not meet the physical presence test if illness, family problems, a vacation, or your employer's orders cause you to be present for less than the required amount of time. Last day to file taxes 2014 Exception. Last day to file taxes 2014   You can be physically present in a foreign country or countries for less than 330 full days and still meet the physical presence test if you are required to leave a country because of war or civil unrest. Last day to file taxes 2014 See Waiver of Time Requirements, later. Last day to file taxes 2014 Full day. Last day to file taxes 2014   A full day is a period of 24 consecutive hours, beginning at midnight. Last day to file taxes 2014 Travel. Last day to file taxes 2014    When you leave the United States to go directly to a foreign country or when you return directly to the United States from a foreign country, the time you spend on or over international waters does not count toward the 330-day total. Last day to file taxes 2014 Example. Last day to file taxes 2014 You leave the United States for France by air on June 10. Last day to file taxes 2014 You arrive in France at 9:00 a. Last day to file taxes 2014 m. Last day to file taxes 2014 on June 11. Last day to file taxes 2014 Your first full day of physical presence in France is June 12. Last day to file taxes 2014 Passing over foreign country. Last day to file taxes 2014   If, in traveling from the United States to a foreign country, you pass over a foreign country before midnight of the day you leave, the first day you can count toward the 330-day total is the day following the day you leave the United States. Last day to file taxes 2014 Example. Last day to file taxes 2014 You leave the United States by air at 9:30 a. Last day to file taxes 2014 m. Last day to file taxes 2014 on June 10 to travel to Kenya. Last day to file taxes 2014 You pass over western Africa at 11:00 p. Last day to file taxes 2014 m. Last day to file taxes 2014 on June 10 and arrive in Kenya at 12:30 a. Last day to file taxes 2014 m. Last day to file taxes 2014 on June 11. Last day to file taxes 2014 Your first full day in a foreign country is June 11. Last day to file taxes 2014 Change of location. Last day to file taxes 2014   You can move about from one place to another in a foreign country or to another foreign country without losing full days. Last day to file taxes 2014 If any part of your travel is not within any foreign country and takes less than 24 hours, you are considered to be in a foreign country during that part of travel. Last day to file taxes 2014 Example 1. Last day to file taxes 2014 You leave Ireland by air at 11:00 p. Last day to file taxes 2014 m. Last day to file taxes 2014 on July 6 and arrive in Sweden at 5:00 a. Last day to file taxes 2014 m. Last day to file taxes 2014 on July 7. Last day to file taxes 2014 Your trip takes less than 24 hours and you lose no full days. Last day to file taxes 2014 Example 2. Last day to file taxes 2014 You leave Norway by ship at 10:00 p. Last day to file taxes 2014 m. Last day to file taxes 2014 on July 6 and arrive in Portugal at 6:00 a. Last day to file taxes 2014 m. Last day to file taxes 2014 on July 8. Last day to file taxes 2014 Since your travel is not within a foreign country or countries and the trip takes more than 24 hours, you lose as full days July 6, 7, and 8. Last day to file taxes 2014 If you remain in Portugal, your next full day in a foreign country is July 9. Last day to file taxes 2014 In United States while in transit. Last day to file taxes 2014   If you are in transit between two points outside the United States and are physically present in the United States for less than 24 hours, you are not treated as present in the United States during the transit. Last day to file taxes 2014 You are treated as traveling over areas not within any foreign country. Last day to file taxes 2014    Please click here for the text description of the image. Last day to file taxes 2014 Figure 4-B How to figure the 12-month period. Last day to file taxes 2014   There are four rules you should know when figuring the 12-month period. Last day to file taxes 2014 Your 12-month period can begin with any day of the month. Last day to file taxes 2014 It ends the day before the same calendar day, 12 months later. Last day to file taxes 2014 Your 12-month period must be made up of consecutive months. Last day to file taxes 2014 Any 12-month period can be used if the 330 days in a foreign country fall within that period. Last day to file taxes 2014 You do not have to begin your 12-month period with your first full day in a foreign country or end it with the day you leave. Last day to file taxes 2014 You can choose the 12-month period that gives you the greatest exclusion. Last day to file taxes 2014 In determining whether the 12-month period falls within a longer stay in the foreign country, 12-month periods can overlap one another. Last day to file taxes 2014 Example 1. Last day to file taxes 2014 You are a construction worker who works on and off in a foreign country over a 20-month period. Last day to file taxes 2014 You might pick up the 330 full days in a 12-month period only during the middle months of the time you work in the foreign country because the first few and last few months of the 20-month period are broken up by long visits to the United States. Last day to file taxes 2014 Example 2. Last day to file taxes 2014 You work in New Zealand for a 20-month period from January 1, 2012, through August 31, 2013, except that you spend 28 days in February 2012 and 28 days in February 2013 on vacation in the United States. Last day to file taxes 2014 You are present in New Zealand for at least 330 full days during each of the following two 12-month periods: January 1, 2012 – December 31, 2012 and September 1, 2012 – August 31, 2013. Last day to file taxes 2014 By overlapping the 12-month periods in this way, you meet the physical presence test for the whole 20-month period. Last day to file taxes 2014 See Figure 4-B, on the previous page. Last day to file taxes 2014 Waiver of Time Requirements Both the bona fide residence test and the physical presence test contain minimum time requirements. Last day to file taxes 2014 The minimum time requirements can be waived, however, if you must leave a foreign country because of war, civil unrest, or similar adverse conditions in that country. Last day to file taxes 2014 You must be able to show that you reasonably could have expected to meet the minimum time requirements if not for the adverse conditions. Last day to file taxes 2014 To qualify for the waiver, you must actually have your tax home in the foreign country and be a bona fide resident of, or be physically present in, the foreign country on or before the beginning date of the waiver. Last day to file taxes 2014 Early in 2014, the IRS will publish in the Internal Revenue Bulletin a list of the only countries that qualify for the waiver for 2013 and the effective dates. Last day to file taxes 2014 If you left one of the countries on or after the date listed for each country, you can meet the bona fide residence test or physical presence test for 2013 without meeting the minimum time requirement. Last day to file taxes 2014 However, in figuring your exclusion, the number of your qualifying days of bona fide residence or physical presence includes only days of actual residence or presence within the country. Last day to file taxes 2014 U. Last day to file taxes 2014 S. Last day to file taxes 2014 Travel Restrictions If you are present in a foreign country in violation of U. Last day to file taxes 2014 S. Last day to file taxes 2014 law, you will not be treated as a bona fide resident of a foreign country or as physically present in a foreign country while you are in violation of the law. Last day to file taxes 2014 Income that you earn from sources within such a country for services performed during a period of violation does not qualify as foreign earned income. Last day to file taxes 2014 Your housing expenses within that country (or outside that country for housing your spouse or dependents) while you are in violation of the law cannot be included in figuring your foreign housing amount. Last day to file taxes 2014 For 2013, the only country to which travel restrictions applied was Cuba. Last day to file taxes 2014 The restrictions applied for the entire year. Last day to file taxes 2014 However, individuals working at the U. Last day to file taxes 2014 S. Last day to file taxes 2014 Naval Base at Guantanamo Bay in Cuba are not in violation of U. Last day to file taxes 2014 S. Last day to file taxes 2014 law. Last day to file taxes 2014 Personal service income earned by individuals at the base is eligible for the foreign earned income exclusion provided the other requirements are met. Last day to file taxes 2014 Foreign Earned Income To claim the foreign earned income exclusion, the foreign housing exclusion, or the foreign housing deduction, you must have foreign earned income. Last day to file taxes 2014 Foreign earned income generally is income you receive for services you perform during a period in which you meet both of the following requirements. Last day to file taxes 2014 Your tax home is in a foreign country. Last day to file taxes 2014 You meet either the bona fide residence test or the physical presence test. Last day to file taxes 2014 To determine whether your tax home is in a foreign country, see Tax Home in Foreign Country, earlier. Last day to file taxes 2014 To determine whether you meet either the bona fide residence test or the physical presence test, see Bona Fide Residence Test and Physical Presence Test, earlier. Last day to file taxes 2014 Foreign earned income does not include the following amounts. Last day to file taxes 2014 The value of meals and lodging that you exclude from your income because the meals and lodging were furnished for the convenience of your employer. Last day to file taxes 2014 Pension or annuity payments you receive, including social security benefits (see Pensions and annuities, later). Last day to file taxes 2014 Pay you receive as an employee of the U. Last day to file taxes 2014 S. Last day to file taxes 2014 Government. Last day to file taxes 2014 (See U. Last day to file taxes 2014 S. Last day to file taxes 2014 Government Employees, later. Last day to file taxes 2014 ) Amounts you include in your income because of your employer's contributions to a nonexempt employee trust or to a nonqualified annuity contract. Last day to file taxes 2014 Any unallowable moving expense deduction that you choose to recapture as explained under Moving Expense Attributable to Foreign Earnings in 2 Years in chapter 5. Last day to file taxes 2014 Payments you receive after the end of the tax year following the tax year in which you performed the services that earned the income. Last day to file taxes 2014 Earned income. Last day to file taxes 2014   This is pay for personal services performed, such as wages, salaries, or professional fees. Last day to file taxes 2014 The list that follows classifies many types of income into three categories. Last day to file taxes 2014 The column headed Variable Income lists income that may fall into either the earned income category, the unearned income category, or partly into both. Last day to file taxes 2014 For more information on earned and unearned income, see Earned and Unearned Income, later. Last day to file taxes 2014 Earned Income Unearned Income Variable Income Salaries and wages Dividends Business profits Commissions Interest Royalties Bonuses Capital gains Rents Professional fees Gambling winnings Scholarships and fellowships Tips Alimony     Social security benefits     Pensions     Annuities     In addition to the types of earned income listed, certain noncash income and allowances or reimbursements are considered earned income. Last day to file taxes 2014 Noncash income. Last day to file taxes 2014   The fair market value of property or facilities provided to you by your employer in the form of lodging, meals, or use of a car is earned income. Last day to file taxes 2014 Allowances or reimbursements. Last day to file taxes 2014   Earned income includes allowances or reimbursements you receive, such as the following amounts. Last day to file taxes 2014    Cost-of-living allowances. Last day to file taxes 2014 Overseas differential. Last day to file taxes 2014 Family allowance. Last day to file taxes 2014 Reimbursement for education or education allowance. Last day to file taxes 2014 Home leave allowance. Last day to file taxes 2014 Quarters allowance. Last day to file taxes 2014 Reimbursement for moving or moving allowance (unless excluded from income as discussed later in Reimbursement of employee expenses under Earned and Unearned Income). Last day to file taxes 2014 Source of Earned Income The source of your earned income is the place where you perform the services for which you received the income. Last day to file taxes 2014 Foreign earned income is income you receive for working in a foreign country. Last day to file taxes 2014 Where or how you are paid has no effect on the source of the income. Last day to file taxes 2014 For example, income you receive for work done in Austria is income from a foreign source even if the income is paid directly to your bank account in the United States and your employer is located in New York City. Last day to file taxes 2014 Example. Last day to file taxes 2014 You are a U. Last day to file taxes 2014 S. Last day to file taxes 2014 citizen, a bona fide resident of Canada, and working as a mining engineer. Last day to file taxes 2014 Your salary is $76,800 per year. Last day to file taxes 2014 You also receive a $6,000 cost-of-living allowance, and a $6,000 education allowance. Last day to file taxes 2014 Your employment contract did not indicate that you were entitled to these allowances only while outside the United States. Last day to file taxes 2014 Your total income is $88,800. Last day to file taxes 2014 You work a 5-day week, Monday through Friday. Last day to file taxes 2014 After subtracting your vacation, you have a total of 240 workdays in the year. Last day to file taxes 2014 You worked in the United States during the year for 6 weeks (30 workdays). Last day to file taxes 2014 The following shows how to figure the part of your income that is for work done in Canada during the year. Last day to file taxes 2014   Number of days worked in Canada during the year (210) × Total income ($88,800) = $77,700     Number of days of work during the year for which payment was made (240)   Your foreign source earned income is $77,700. Last day to file taxes 2014 Earned and Unearned Income Earned income was defined earlier as pay for personal services performed. Last day to file taxes 2014 Some types of income are not easily identified as earned or unearned income. Last day to file taxes 2014 Some of these types of income are further explained here. Last day to file taxes 2014 Income from a sole proprietorship or partnership. Last day to file taxes 2014   Income from a business in which capital investment is an important part of producing the income may be unearned income. Last day to file taxes 2014 If you are a sole proprietor or partner and your personal services are also an important part of producing the income, the part of the income that represents the value of your personal services will be treated as earned income. Last day to file taxes 2014 Capital a factor. Last day to file taxes 2014   If capital investment is an important part of producing income, no more than 30% of your share of the net profits of the business is earned income. Last day to file taxes 2014   If you have no net profits, the part of your gross profit that represents a reasonable allowance for personal services actually performed is considered earned income. Last day to file taxes 2014 Because you do not have a net profit, the 30% limit does not apply. Last day to file taxes 2014 Example 1. Last day to file taxes 2014 You are a U. Last day to file taxes 2014 S. Last day to file taxes 2014 citizen and meet the bona fide residence test. Last day to file taxes 2014 You invest in a partnership based in Cameroon that is engaged solely in selling merchandise outside the United States. Last day to file taxes 2014 You perform no services for the partnership. Last day to file taxes 2014 At the end of the tax year, your share of the net profits is $80,000. Last day to file taxes 2014 The entire $80,000 is unearned income. Last day to file taxes 2014 Example 2. Last day to file taxes 2014 Assume that in Example 1 you spend time operating the business. Last day to file taxes 2014 Your share of the net profits is $80,000; 30% of your share of the profits is $24,000. Last day to file taxes 2014 If the value of your services for the year is $15,000, your earned income is limited to the value of your services, $15,000. Last day to file taxes 2014 Capital not a factor. Last day to file taxes 2014   If capital is not an income-producing factor and personal services produce the business income, the 30% rule does not apply. Last day to file taxes 2014 The entire amount of business income is earned income. Last day to file taxes 2014 Example. Last day to file taxes 2014 You and Lou Green are management consultants and operate as equal partners in performing services outside the United States. Last day to file taxes 2014 Because capital is not an income- producing factor, all the income from the partnership is considered earned income. Last day to file taxes 2014 Income from a corporation. Last day to file taxes 2014   The salary you receive from a corporation is earned income only if it represents a reasonable allowance as compensation for work you do for the corporation. Last day to file taxes 2014 Any amount over what is considered a reasonable salary is unearned income. Last day to file taxes 2014 Example 1. Last day to file taxes 2014 You are a U. Last day to file taxes 2014 S. Last day to file taxes 2014 citizen and an officer and stockholder of a corporation in Honduras. Last day to file taxes 2014 You perform no work or service of any kind for the corporation. Last day to file taxes 2014 During the tax year you receive a $10,000 “salary” from the corporation. Last day to file taxes 2014 The $10,000 clearly is not for personal services and is unearned income. Last day to file taxes 2014 Example 2. Last day to file taxes 2014 You are a U. Last day to file taxes 2014 S. Last day to file taxes 2014 citizen and work full time as secretary-treasurer of your corporation. Last day to file taxes 2014 During the tax year you receive $100,000 as salary from the corporation. Last day to file taxes 2014 If $80,000 is a reasonable allowance as pay for the work you did, then $80,000 is earned income. Last day to file taxes 2014 Stock options. Last day to file taxes 2014   You may have earned income if you disposed of stock that you got by exercising a stock option granted to you under an employee stock purchase plan. Last day to file taxes 2014   If your gain on the disposition of stock you got by exercising an option is treated as capital gain, your gain is unearned income. Last day to file taxes 2014   However, if you disposed of the stock less than 2 years after you were granted the option or less than 1 year after you got the stock, part of the gain on the disposition may be earned income. Last day to file taxes 2014 It is considered received in the year you disposed of the stock and earned in the year you performed the services for which you were granted the option. Last day to file taxes 2014 Any part of the earned income that is due to work you did outside the United States is foreign earned income. Last day to file taxes 2014   See Publication 525, Taxable and Nontaxable Income, for a discussion of the treatment of stock options. Last day to file taxes 2014 Pensions and annuities. Last day to file taxes 2014    For purposes of the foreign earned income exclusion, the foreign housing exclusion, and the foreign housing deduction, amounts received as pensions or annuities are unearned income. Last day to file taxes 2014 Royalties. Last day to file taxes 2014   Royalties from the leasing of oil and mineral lands and patents generally are a form of rent or dividends and are unearned income. Last day to file taxes 2014   Royalties received by a writer are earned income if they are received: For the transfer of property rights of the writer in the writer's product, or Under a contract to write a book or series of articles. Last day to file taxes 2014 Rental income. Last day to file taxes 2014   Generally, rental income is unearned income. Last day to file taxes 2014 If you perform personal services in connection with the production of rent, up to 30% of your net rental income can be considered earned income. Last day to file taxes 2014 Example. Last day to file taxes 2014 Larry Smith, a U. Last day to file taxes 2014 S. Last day to file taxes 2014 citizen living in Australia, owns and operates a rooming house in Sydney. Last day to file taxes 2014 If he is operating the rooming house as a business that requires capital and personal services, he can consider up to 30% of net rental income as earned income. Last day to file taxes 2014 On the other hand, if he just owns the rooming house and performs no personal services connected with its operation, except perhaps making minor repairs and collecting rents, none of his net income from the house is considered earned income. Last day to file taxes 2014 It is all unearned income. Last day to file taxes 2014 Professional fees. Last day to file taxes 2014   If you are engaged in a professional occupation (such as a doctor or lawyer), all fees received in the performance of these services are earned income. Last day to file taxes 2014 Income of an artist. Last day to file taxes 2014   Income you receive from the sale of paintings you created is earned income. Last day to file taxes 2014 Scholarships and fellowships. Last day to file taxes 2014   Any portion of a scholarship or fellowship grant that is paid to you for teaching, research or other services is considered earned income if you must include it in your gross income. Last day to file taxes 2014 If the payer of the grant is required to provide you with a Form W-2, Wage and Tax Statement, these amounts will be listed as wages. Last day to file taxes 2014    Certain scholarship and fellowship income may be exempt under other provisions. Last day to file taxes 2014 See Publication 970, Tax Benefits for Education, chapter 1. Last day to file taxes 2014 Use of employer's property or facilities. Last day to file taxes 2014   If you receive fringe benefits in the form of the right to use your employer's property or facilities, the fair market value of that right is earned income. Last day to file taxes 2014 Fair market value is the price at which the property would change hands between a willing buyer and a willing seller, neither being required to buy or sell, and both having reasonable knowledge of all the necessary facts. Last day to file taxes 2014 Example. Last day to file taxes 2014 You are privately employed and live in Japan all year. Last day to file taxes 2014 You are paid a salary of $6,000 a month. Last day to file taxes 2014 You live rent-free in a house provided by your employer that has a fair rental value of $3,000 a month. Last day to file taxes 2014 The house is not provided for your employer's convenience. Last day to file taxes 2014 You report on the calendar-year, cash basis. Last day to file taxes 2014 You received $72,000 salary from foreign sources plus $36,000 fair rental value of the house, or a total of $108,000 of earned income. Last day to file taxes 2014 Reimbursement of employee expenses. Last day to file taxes 2014   If you are reimbursed under an accountable plan (defined below) for expenses you incur on your employer's behalf and you have adequately accounted to your employer for the expenses, do not include the reimbursement for those expenses in your earned income. Last day to file taxes 2014   The expenses for which you are reimbursed are not considered allocable (related) to your earned income. Last day to file taxes 2014 If expenses and reimbursement are equal, there is nothing to allocate to excluded income. Last day to file taxes 2014 If expenses are more than the reimbursement, the unreimbursed expenses are considered to have been incurred in producing earned income and must be divided between your excluded and included income in determining the amount of unreimbursed expenses you can deduct. Last day to file taxes 2014 (See chapter 5. Last day to file taxes 2014 ) If the reimbursement is more than the expenses, no expenses remain to be divided between excluded and included income and the excess reimbursement must be included in earned income. Last day to file taxes 2014   These rules do not apply to the following individuals. Last day to file taxes 2014 Straight-commission salespersons. Last day to file taxes 2014 Employees who have arrangements with their employers under which taxes are not withheld on a percentage of the commissions because the employers consider that percentage to be attributable to the employees' expenses. Last day to file taxes 2014 Accountable plan. Last day to file taxes 2014   An accountable plan is a reimbursement or allowance arrangement that includes all three of the following rules. Last day to file taxes 2014 The expenses covered under the plan must have a business connection. Last day to file taxes 2014 The employee must adequately account to the employer for these expenses within a reasonable period of time. Last day to file taxes 2014 The employee must return any excess reimbursement or allowance within a reasonable period of time. Last day to file taxes 2014 Reimbursement of moving expenses. Last day to file taxes 2014   Reimbursement of moving expenses may be earned income. Last day to file taxes 2014 You must include as earned income: Any reimbursements of, or payments for, nondeductible moving expenses, Reimbursements that are more than your deductible expenses and that you do not return to your employer, Any reimbursements made (or treated as made) under a nonaccountable plan (any plan that does not meet the rules listed above for an accountable plan), even if they are for deductible expenses, and Any reimbursement of moving expenses you deducted in an earlier year. Last day to file taxes 2014 This section discusses reimbursements that must be included in earned income. Last day to file taxes 2014 Publication 521, Moving Expenses, discusses additional rules that apply to moving expense deductions and reimbursements. Last day to file taxes 2014   The rules for determining when the reimbursement is considered earned or where the reimbursement is considered earned may differ somewhat from the general rules previously discussed. Last day to file taxes 2014   Although you receive the reimbursement in one tax year, it may be considered earned for services performed, or to be performed, in another tax year. Last day to file taxes 2014 You must report the reimbursement as income on your return in the year you receive it, even if it is considered earned during a different year. Last day to file taxes 2014 Move from U. Last day to file taxes 2014 S. Last day to file taxes 2014 to foreign country. Last day to file taxes 2014   If you move from the United States to a foreign country, your moving expense reimbursement is generally considered pay for future services to be performed at the new location. Last day to file taxes 2014 The reimbursement is considered earned solely in the year of the move if you qualify for the exclusion for a period that includes at least 120 days during that tax year. Last day to file taxes 2014   If you are neither a bona fide resident of nor physically present in a foreign country or countries for a period that includes 120 days during the year of the move, a portion of the reimbursement is considered earned in the year of the move and a portion is considered earned in the year following the year of the move. Last day to file taxes 2014 To figure the amount earned in the year of the move, multiply the reimbursement by a fraction. Last day to file taxes 2014 The numerator (top number) is the number of days in your qualifying period that fall within the year of the move, and the denominator (bottom number) is the total number of days in the year of the move. Last day to file taxes 2014   The difference between the total reimbursement and the amount considered earned in the year of the move is the amount considered earned in the year following the year of the move. Last day to file taxes 2014 The part earned in each year is figured as shown in the following example. Last day to file taxes 2014 Example. Last day to file taxes 2014 You are a U. Last day to file taxes 2014 S. Last day to file taxes 2014 citizen working in the United States. Last day to file taxes 2014 You were told in October 2012 that you were being transferred to a foreign country. Last day to file taxes 2014 You arrived in the foreign country on December 15, 2012, and you are a bona fide resident for the remainder of 2012 and all of 2013. Last day to file taxes 2014 Your employer reimbursed you $2,000 in January 2013 for the part of the moving expense that you were not allowed to deduct. Last day to file taxes 2014 Because you did not qualify for the exclusion under the bona fide residence test for at least 120 days in 2012 (the year of the move), the reimbursement is considered pay for services performed in the foreign country for both 2012 and 2013. Last day to file taxes 2014 You figure the part of the reimbursement for services performed in the foreign country in 2012 by multiplying the total reimbursement by a fraction. Last day to file taxes 2014 The fraction is the number of days during which you were a bona fide resident in 2012 (the year of the move) divided by 366. Last day to file taxes 2014 The remaining part of the reimbursement is for services performed in the foreign country in 2013. Last day to file taxes 2014 This computation is used only to determine when the reimbursement is considered earned. Last day to file taxes 2014 You would include the amount of the reimbursement in income in 2013, the year you received it. Last day to file taxes 2014 Move between foreign countries. Last day to file taxes 2014   If you move between foreign countries, any moving expense reimbursement that you must include in income will be considered earned in the year of the move if you qualify for the foreign earned income exclusion for a period that includes at least 120 days in the year of the move. Last day to file taxes 2014 Move to U. Last day to file taxes 2014 S. Last day to file taxes 2014   If you move to the United States, the moving expense reimbursement that you must include in income is generally considered to be U. Last day to file taxes 2014 S. Last day to file taxes 2014 source income. Last day to file taxes 2014   However, if under either an agreement between you and your employer or a statement of company policy that is reduced to writing before your move to the foreign country, your employer will reimburse you for your move back to the United States regardless of whether you continue to work for the employer, the includible reimbursement is considered compensation for past services performed in the foreign country. Last day to file taxes 2014 The includible reimbursement is considered earned in the year of the move if you qualify for the foreign earned income exclusion for a period that includes at least 120 days during that year. Last day to file taxes 2014 Otherwise, you treat the includible reimbursement as received for services performed in the foreign country in the year of the move and the year immediately before the year of the move. Last day to file taxes 2014   See the discussion under Move from U. Last day to file taxes 2014 S. Last day to file taxes 2014 to foreign country , earlier, to figure the amount of the includible reimbursement considered earned in the year of the move. Last day to file taxes 2014 The amount earned in the year before the year of the move is the difference between the total includible reimbursement and the amount earned in the year of the move. Last day to file taxes 2014 Example. Last day to file taxes 2014 You are a U. Last day to file taxes 2014 S. Last day to file taxes 2014 citizen employed in a foreign country. Last day to file taxes 2014 You retired from employment with your employer on March 31, 2013, and returned to the United States after having been a bona fide resident of the foreign country for several years. Last day to file taxes 2014 A written agreement with your employer entered into before you went abroad provided that you would be reimbursed for your move back to the United States. Last day to file taxes 2014 In April 2013, your former employer reimbursed you $4,000 for the part of the cost of your move back to the United States that you were not allowed to deduct. Last day to file taxes 2014 Because you were not a bona fide resident of a foreign country or countries for a period that included at least 120 days in 2013 (the year of the move), the includible reimbursement is considered pay for services performed in the foreign country for both 2013 and 2012. Last day to file taxes 2014 You figure the part of the moving expense reimbursement for services performed in the foreign country for 2013 by multiplying the total includible reimbursement by a fraction. Last day to file taxes 2014 The fraction is the number of days of foreign residence during the year (90) divided by the number of days in the year (365). Last day to file taxes 2014 The remaining part of the includible reimbursement is for services performed in the foreign country in 2012. Last day to file taxes 2014 You report the amount of the includible reimbursement in 2013, the year you received it. Last day to file taxes 2014    In this example, if you met the physical presence test for a period that included at least 120 days in 2013, the moving expense reimbursement would be considered earned entirely in the year of the move. Last day to file taxes 2014 Storage expense reimbursements. Last day to file taxes 2014   If you are reimbursed for storage expenses, the reimbursement is for services you perform during the period of time for which the storage expenses are incurred. Last day to file taxes 2014 U. Last day to file taxes 2014 S. Last day to file taxes 2014 Government Employees For purposes of the foreign earned income exclusion, the foreign housing exclusion, and the foreign housing deduction, foreign earned income does not include any amounts paid by the United States or any of its agencies to its employees. Last day to file taxes 2014 This includes amounts paid from both appropriated and nonappropriated funds. Last day to file taxes 2014 The following organizations (and other organizations similarly organized and operated under United States Army, Navy, or Air Force regulations) are integral parts of the Armed Forces, agencies, or instrumentalities of the United States. Last day to file taxes 2014 United States Armed Forces exchanges. Last day to file taxes 2014 Commissioned and noncommissioned officers' messes. Last day to file taxes 2014 Armed Forces motion picture services. Last day to file taxes 2014 Kindergartens on foreign Armed Forces installations. Last day to file taxes 2014 Amounts paid by the United States or its agencies to persons who are not their employees may qualify for exclusion or deduction. Last day to file taxes 2014 If you are a U. Last day to file taxes 2014 S. Last day to file taxes 2014 Government employee paid by a U. Last day to file taxes 2014 S. Last day to file taxes 2014 agency that assigned you to a foreign government to perform specific services for which the agency is reimbursed by the foreign government, your pay is from the U. Last day to file taxes 2014 S. Last day to file taxes 2014 Government and does not qualify for exclusion or deduction. Last day to file taxes 2014 If you have questions about whether you are an employee or an independent contractor, get Publication 15-A, Employer's Supplemental Tax Guide. Last day to file taxes 2014 American Institute in Taiwan. Last day to file taxes 2014   Amounts paid by the American Institute in Taiwan are not foreign earned income for purposes of the foreign earned income exclusion, the foreign housing exclusion, or the foreign housing deduction. Last day to file taxes 2014 If you are an employee of the American Institute in Taiwan, allowances you receive are exempt from U. Last day to file taxes 2014 S. Last day to file taxes 2014 tax up to the amount that equals tax-exempt allowances received by civilian employees of the U. Last day to file taxes 2014 S. Last day to file taxes 2014 Government. Last day to file taxes 2014 Allowances. Last day to file taxes 2014   Cost-of-living and foreign-area allowances paid under certain acts of Congress to U. Last day to file taxes 2014 S. Last day to file taxes 2014 civilian officers and employees stationed in Alaska and Hawaii or elsewhere outside the 48 contiguous states and the District of Columbia can be excluded from gross income. Last day to file taxes 2014 Post differentials are wages that must be included in gross income, regardless of the act of Congress under which they are paid. Last day to file taxes 2014 More information. Last day to file taxes 2014   Publication 516, U. Last day to file taxes 2014 S. Last day to file taxes 2014 Government Civilian Employees Stationed Abroad, has more information for U. Last day to file taxes 2014 S. Last day to file taxes 2014 Government employees abroad. Last day to file taxes 2014 Exclusion of Meals and Lodging You do not include in your income the value of meals and lodging provided to you and your family by your employer at no charge if the following conditions are met. Last day to file taxes 2014 The meals are furnished: On the business premises of your employer, and For the convenience of your employer. Last day to file taxes 2014 The lodging is furnished: On the business premises of your employer, For the convenience of your employer, and As a condition of your employment. Last day to file taxes 2014 If these conditions are met, do not include the value of the meals or lodging in your income, even if a law or your employment contract says that they are provided as compensation. Last day to file taxes 2014 Amounts you do not include in income because of these rules are not foreign earned income. Last day to file taxes 2014 If you receive a Form W-2, excludable amounts should not be included in the total reported in box 1 as wages. Last day to file taxes 2014 Family. Last day to file taxes 2014   Your family, for this purpose, includes only your spouse and your dependents. Last day to file taxes 2014 Lodging. Last day to file taxes 2014   The value of lodging includes the cost of heat, electricity, gas, water, sewer service, and similar items needed to make the lodging fit to live in. Last day to file taxes 2014 Business premises of employer. Last day to file taxes 2014   Generally, the business premises of your employer is wherever you work. Last day to file taxes 2014 For example, if you work as a housekeeper, meals and lodging provided in your employer's home are provided on the business premises of your employer. Last day to file taxes 2014 Similarly, meals provided to cowhands while herding cattle on land leased or owned by their employer are considered provided on the premises of their employer. Last day to file taxes 2014 Convenience of employer. Last day to file taxes 2014   Whether meals or lodging are provided for your employer's convenience must be determined from all the facts and circumstances. Last day to file taxes 2014 Meals furnished at no charge are considered provided for your employer's convenience if there is a good business reason for providing them, other than to give you more pay. Last day to file taxes 2014   On the other hand, if your employer provides meals to you or your family as a means of giving you more pay, and there is no other business reason for providing them, their value is extra income to you because they are not furnished for the convenience of your employer. Last day to file taxes 2014 Condition of employment. Last day to file taxes 2014   Lodging is provided as a condition of employment if you must accept the lodging to properly carry out the duties of your job. Last day to file taxes 2014 You must accept lodging to properly carry out your duties if, for example, you must be available for duty at all times or you could not perform your duties if the lodging was not furnished. Last day to file taxes 2014 Foreign camps. Last day to file taxes 2014   If the lodging is in a camp located in a foreign country, the camp is considered part of your employer's business premises. Last day to file taxes 2014 The camp must be: Provided for your employer's convenience because the place where you work is in a remote area where satisfactory housing is not available to you on the open market within a reasonable commuting distance, Located as close as reasonably possible in the area where you work, and Provided in a common area or enclave that is not available to the general public for lodging or accommodations and that normally houses at least ten employees. Last day to file taxes 2014 Foreign Earned Income Exclusion If your tax home is in a foreign country and you meet the bona fide residence test or the physical presence test, you can choose to exclude from your income a limited amount of your foreign earned income. Last day to file taxes 2014 Foreign earned income was defined earlier in this chapter. Last day to file taxes 2014 You also can choose to exclude from your income a foreign housing amount. Last day to file taxes 2014 This is explained later under Foreign Housing Exclusion. Last day to file taxes 2014 If you choose to exclude a foreign housing amount, you must figure the foreign housing exclusion before you figure the foreign earned income exclusion. Last day to file taxes 2014 Your foreign earned income exclusion is limited to your foreign earned income minus your foreign housing exclusion. Last day to file taxes 2014 If you choose to exclude foreign earned income, you cannot deduct, exclude, or claim a credit for any item that can be allocated to or charged against the excluded amounts. Last day to file taxes 2014 This includes any expenses, losses, and other normally deductible items allocable to the excluded income. Last day to file taxes 2014 For more information about deductions and credits, see chapter 5 . Last day to file taxes 2014 Limit on Excludable Amount You may be able to exclude up to $97,600 of your foreign earned income in 2013. Last day to file taxes 2014 You cannot exclude more than the smaller of: $97,600, or Your foreign earned income (discussed earlier) for the tax year minus your foreign housing exclusion (discussed later). Last day to file taxes 2014 If both you and your spouse work abroad and each of you meets either the bona fide residence test or the physical presence test, you can each choose the foreign earned income exclusion. Last day to file taxes 2014 You do not both need to meet the same test. Last day to file taxes 2014 Together, you and your spouse can exclude as much as $195,200. Last day to file taxes 2014 Paid in year following work. Last day to file taxes 2014   Generally, you are considered to have earned income in the year in which you do the work for which you receive the income, even if you work in one year but are not paid until the following year. Last day to file taxes 2014 If you report your income on a cash basis, you report the income on your return for the year you receive it. Last day to file taxes 2014 If you work one year, but are not paid for that work until the next year, the amount you can exclude in the year you are paid is the amount you could have excluded in the year you did the work if you had been paid in that year. Last day to file taxes 2014 For an exception to this general rule, see Year-end payroll period, later. Last day to file taxes 2014 Example. Last day to file taxes 2014 You were a bona fide resident of Brazil for all of 2012 and 2013. Last day to file taxes 2014 You report your income on the cash basis. Last day to file taxes 2014 In 2012, you were paid $84,200 for work you did in Brazil during that year. Last day to file taxes 2014 You excluded all of the $84,200 from your income in 2012. Last day to file taxes 2014 In 2013, you were paid $117,300 for your work in Brazil. Last day to file taxes 2014 $18,800 was for work you did in 2012 and $98,500 was for work you did in 2013. Last day to file taxes 2014 You can exclude $10,900 of the $18,800 from your income in 2013. Last day to file taxes 2014 This is the $95,100 maximum exclusion in 2012 minus the $84,200 actually excluded that year. Last day to file taxes 2014 You must include the remaining $7,900 in income in 2013 because you could not have excluded that income in 2012 if you had received it that year. Last day to file taxes 2014 You can exclude $97,600 of the $98,500 you were paid for work you did in 2013 from your 2013 income. Last day to file taxes 2014 Your total foreign earned income exclusion for 2013 is $108,500 ($10,900 for work you did in 2012 and $97,600 for work you did in 2013). Last day to file taxes 2014 You would include in your 2013 income $8,800 ($7,900 for the work you did in 2012 and $900 for the work you did in 2013). Last day to file taxes 2014 Year-end payroll period. Last day to file taxes 2014   There is an exception to the general rule that income is considered earned in the year you do the work for which you receive the income. Last day to file taxes 2014 If you are a cash-basis taxpayer, any salary or wage payment you receive after the end of the year in which you do the work for which you receive the pay is considered earned entirely in the year you receive it if all four of the following apply. Last day to file taxes 2014 The period for which the payment is made is a normal payroll period of your employer that regularly applies to you. Last day to file taxes 2014 The payroll period includes the last day of your tax year (December 31 if you figure your taxes on a calendar-year basis). Last day to file taxes 2014 The payroll period is not longer than 16 days. Last day to file taxes 2014 The payday comes at the same time in relation to the payroll period that it would normally come and it comes before the end of the next payroll period. Last day to file taxes 2014 Example. Last day to file taxes 2014 You are paid twice a month. Last day to file taxes 2014 For the normal payroll period that begins on the first of the month and ends on the fifteenth of the month, you are paid on the sixteenth day of the month. Last day to file taxes 2014 For the normal payroll period that begins on the sixteenth of the month and ends on the last day of the month, you are paid on the first day of the following month. Last day to file taxes 2014 Because all of the above conditions are met, the pay you received on January 1, 2013, is considered earned in 2013. Last day to file taxes 2014 Income earned over more than 1 year. Last day to file taxes 2014   Regardless of when you actually receive income, you must apply it to the year in which you earned it in figuring your excludable amount for that year. Last day to file taxes 2014 For example, a bonus may be based on work you did over several years. Last day to file taxes 2014 You determine the amount of the bonus that is considered earned in a particular year in two steps. Last day to file taxes 2014 Divide the bonus by the number of calendar months in the period when you did the work that resulted in the bonus. Last day to file taxes 2014 Multiply the result of (1) by the number of months you did the work during the year. Last day to file taxes 2014 This is the amount that is subject to the exclusion limit for that tax year. Last day to file taxes 2014 Income received more than 1 year after it was earned. Last day to file taxes 2014   You cannot exclude income you receive after the end of the year following the year you do the work to earn it. Last day to file taxes 2014 Example. Last day to file taxes 2014   You were a bona fide resident of Sweden for 2011, 2012, and 2013. Last day to file taxes 2014 You report your income on the cash basis. Last day to file taxes 2014 In 2011, you were paid $69,000 for work you did in Sweden that year and in 2012 you were paid $74,000 for that year's work in Sweden. Last day to file taxes 2014 You excluded all the income on your 2011 and 2012 returns. Last day to file taxes 2014   In 2013, you were paid $92,000; $82,000 for your work in Sweden during 2013, and $10,000 for work you did in Sweden in 2011. Last day to file taxes 2014 You cannot exclude any of the $10,000 for work done in 2011 because you received it after the end of the year following the year in which you earned it. Last day to file taxes 2014 You must include the $10,000 in income. Last day to file taxes 2014 You can exclude all of the $82,000 received for work you did in 2013. Last day to file taxes 2014 Community income. Last day to file taxes 2014   The maximum exclusion applies separately to the earnings of spouses. Last day to file taxes 2014 Ignore any community property laws when you figure your limit on the foreign earned income exclusion. Last day to file taxes 2014 Part-year exclusion. Last day to file taxes 2014   If the period for which you qualify for the foreign earned income exclusion includes only part of the year, you must adjust the maximum limit based on the number of qualifying days in the year. Last day to file taxes 2014 The number of qualifying days is the number of days in the year within the period on which you both: Have your tax home in a foreign country, and Meet either the bona fide residence test or the physical presence test. Last day to file taxes 2014   For this purpose, you can count as qualifying days all days within a period of 12 consecutive months once you are physically present and have your tax home in a foreign country for 330 full days. Last day to file taxes 2014 To figure your maximum exclusion, multiply the maximum excludable amount for the year by the number of your qualifying days in the year, and then divide the result by the number of days in the year. Last day to file taxes 2014 Example. Last day to file taxes 2014 You report your income on the calendar-year basis and you qualified for the foreign earned income exclusion under the bona fide residence test for 75 days in 2013. Last day to file taxes 2014 You can exclude a maximum of 75/365 of $97,600, or $20,055, of your foreign earned income for 2013. Last day to file taxes 2014 If you qualify under the bona fide residence test for all of 2014, you can exclude your foreign earned income up to the 2014 limit. Last day to file taxes 2014 Physical presence test. Last day to file taxes 2014   Under the physical presence test, a 12-month period can be any period of 12 consecutive months that includes 330 full days. Last day to file taxes 2014 If you qualify for the foreign earned income exclusion under the physical presence test for part of a year, it is important to carefully choose the 12-month period that will allow the maximum exclusion for that year. Last day to file taxes 2014 Example. Last day to file taxes 2014 You are physically present and have your tax home in a foreign country for a 16-month period from June 1, 2012, through September 30, 2013, except for 16 days in December 2012 when you were on vacation in the United States. Last day to file taxes 2014 You figure the maximum exclusion for 2012 as follows. Last day to file taxes 2014 Beginning with June 1, 2012, count forward 330 full days. Last day to file taxes 2014 Do not count the 16 days you spent in the United States. Last day to file taxes 2014 The 330th day, May 12, 2013, is the last day of a 12-month period. Last day to file taxes 2014 Count backward 12 months from May 11, 2013, to find the first day of this 12-month period, May 12, 2012. Last day to file taxes 2014 This 12-month period runs from May 12, 2012, through May 11, 2013. Last day to file taxes 2014 Count the total days during 2012 that fall within this 12-month period. Last day to file taxes 2014 This is 234 days (May 12, 2012 – December 31, 2012). Last day to file taxes 2014 Multiply $95,100 (the maximum exclusion for 2012) by the fraction 234/366 to find your maximum exclusion for 2012 ($60,802). Last day to file taxes 2014 You figure the maximum exclusion for 2013 in the opposite manner. Last day to file taxes 2014 Beginning with your last full day, September 30, 2013, count backward 330 full days. Last day to file taxes 2014 Do not count the 16 days you spent in the United States. Last day to file taxes 2014 That day, October 20, 2012, is the first day of a 12-month period. Last day to file taxes 2014 Count forward 12 months from October 20, 2012, to find the last day of this 12-month period, October 19, 2013. Last day to file taxes 2014 This 12-month period runs from October 20, 2012, through October 19, 2013. Last day to file taxes 2014 Count the total days during 2013 that fall within this 12-month period. Last day to file taxes 2014 This is 292 days (January 1, 2013 – October 19, 2013). Last day to file taxes 2014 Multiply $97,600, the maximum limit, by the fraction 292/365 to find your maximum exclusion for 2013 ($78,080). Last day to file taxes 2014 Choosing the Exclusion The foreign earned income exclusion is voluntary. Last day to file taxes 2014 You can choose the exclusion by completing the appropriate parts of Form 2555. Last day to file taxes 2014 When You Can Choose the Exclusion Your initial choice of the exclusion on Form 2555 or Form 2555-EZ generally must be made with one of the following returns. Last day to file taxes 2014 A return filed by the due date (including any extensions). Last day to file taxes 2014 A return amending a timely-filed return. Last day to file taxes 2014 Amended returns generally must be filed by the later of 3 years after the filing date of the original return or 2 years after the tax is paid. Last day to file taxes 2014 A return filed within 1 year from the original due date of the return (determined without regard to any extensions). Last day to file taxes 2014 Filing after the above periods. Last day to file taxes 2014   You can choose the exclusion on a return filed after the periods described above if you owe no federal income tax after taking into account the exclusion. Last day to file taxes 2014 If you owe federal income tax after taking into account the exclusion, you can choose the exclusion on a return filed after the periods described earlier if you file before the IRS discovers that you failed to choose the exclusion. Last day to file taxes 2014 Whether or not you owe federal income tax after taking the exclusion into account, if you file your return after the periods described earlier, you must type or legibly print at the top of the first page of the Form 1040 “Filed pursuant to section 1. Last day to file taxes 2014 911-7(a)(2)(i)(D). Last day to file taxes 2014 ” If you owe federal income tax after taking into account the foreign earned income exclusion and the IRS discovered that you failed to choose the exclusion, you may still be able to choose the exclusion. Last day to file taxes 2014 You must request a private letter ruling under Income Tax Regulation 301. Last day to file taxes 2014 9100-3 and Revenue Procedure 2013-1, 2013-1 I. Last day to file taxes 2014 R. Last day to file taxes 2014 B. Last day to file taxes 2014 1, available at www. Last day to file taxes 2014 irs. Last day to file taxes 2014 gov/irb/2013-01_IRB/ar06. Last day to file taxes 2014 html. Last day to file taxes 2014 Effect of Choosing the Exclusion Once you choose to exclude your foreign earned income, that choice remains in effect for that year and all later years unless you revoke it. Last day to file taxes 2014 Foreign tax credit or deduction. Last day to file taxes 2014