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Mypay Military Pay

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Mypay Military Pay

Mypay military pay Index Symbols 401(k) Plan Elective Deferrals, Elective Deferrals (401(k) Plans) Safe harbor, Safe harbor 401(k) plan. Mypay military pay A Annual additions, Annual additions. Mypay military pay Annual benefits, Annual benefits. Mypay military pay Assistance (see Tax help) Automatic Enrollment, Automatic Enrollment B Business, definition, Business. Mypay military pay C Common-law employee, Common-law employee. Mypay military pay Compensation, Compensation. Mypay military pay Contribution Defined, Contribution. Mypay military pay Limits Qualified plans, Limits on Contributions and Benefits SEP-IRAs, Contribution Limits SIMPLE IRA plan, Contribution Limits D Deduction Defined, SIMPLE plans. Mypay military pay , Deduction. Mypay military pay Deduction worksheet for self-employed, Figuring your deduction. Mypay military pay Defined benefit plan Deduction limits, Defined benefit plans. Mypay military pay Limits on contributions, Defined benefit plan. Mypay military pay Defined contribution plan Automatic Enrollment, Automatic Enrollment Deduction limits, Defined contribution plans. Mypay military pay Eligible automatic contribution arrangement, Eligible automatic contribution arrangement. Mypay military pay Forfeitures, Forfeiture. Mypay military pay Limits on contributions, Defined contribution plan. Mypay military pay Money purchase pension plan, Money purchase pension plan. Mypay military pay Profit-sharing plan, Profit-sharing plan. Mypay military pay Qualified automatic contribution arrangement, Qualified automatic contribution arrangement. Mypay military pay Definitions you need to know, Definitions You Need To Know Disqualified person, Prohibited Transactions Distributions (withdrawals), Distributions (Withdrawals) E EACA, Eligible automatic contribution arrangement. Mypay military pay Earned income, Earned income. Mypay military pay Eligible automatic contribution arrangement, Eligible automatic contribution arrangement. Mypay military pay Employees Eligible, Eligible employee. Mypay military pay Excludable, Excludable employees. Mypay military pay Highly compensated, Highly compensated employee. Mypay military pay Leased, Leased employee. Mypay military pay Employer Defined, Employer. Mypay military pay Excess Deferrals, Treatment of Excess Deferrals Excise tax, Excise Tax on Reversion of Plan Assets Nondeductible (excess) contributions, Excise Tax for Nondeductible (Excess) Contributions Reduced benefit accrual, Notification of Significant Benefit Accrual Reduction SEP excess contributions, Excise tax. Mypay military pay Excludable employees, Excludable employees. Mypay military pay F Form 1040, Where To Deduct Contributions, Reporting the tax. Mypay military pay 1099-R, Reporting corrective distributions on Form 1099-R. Mypay military pay 5304–SIMPLE, How To Set Up a SIMPLE IRA Plan 5305–S, Setting up a SIMPLE IRA. Mypay military pay 5305–SA, Setting up a SIMPLE IRA. Mypay military pay 5305–SEP, Formal written agreement. Mypay military pay 5305–SIMPLE, How To Set Up a SIMPLE IRA Plan 5310, Form 5310. Mypay military pay 5329, Reporting the tax. Mypay military pay 5330, Reporting the tax. Mypay military pay , Tax on excess contributions of highly compensated employees. Mypay military pay , Excise Tax on Reversion of Plan Assets, Payment of the 15% tax. Mypay military pay 5500, Form 5500. Mypay military pay , Electronic filing of Forms 5500 and 5500-SF. Mypay military pay 5500-EZ, Form 5500-EZ. Mypay military pay Form W-2, Reporting on Form W-2. Mypay military pay Schedule K (Form 1065), Where To Deduct Contributions Free tax services, Free help with your return. Mypay military pay H Highly compensated employee, Highly compensated employee. Mypay military pay K Keogh plans (see Qualified plans) L Leased employee, Leased employee. Mypay military pay N Net earnings from self-employment, Net earnings from self-employment. Mypay military pay Notification requirements, Notification Requirement P Participant, definition, Participant. Mypay military pay Participation, Participation. Mypay military pay Partner, definition, Partner. Mypay military pay Publications (see Tax help) Q QACA, Qualified automatic contribution arrangement. Mypay military pay Qualified automatic contribution arrangement, Qualified automatic contribution arrangement. Mypay military pay Qualified Plan, definition, Qualified plan. Mypay military pay Qualified plans, Limits on Contributions and Benefits Assignment of benefits, Benefits must not be assigned or alienated. Mypay military pay Benefits starting date, Benefit payment must begin when required. Mypay military pay Contributions, Contributions, Employer Contributions, Limits on Contributions and Benefits, When Contributions Are Considered Made, Where To Deduct Contributions Deduction limits, Deduction Limits, Defined contribution plans. Mypay military pay , Defined benefit plans. Mypay military pay , Deduction Limit for Self-Employed Individuals, Carryover of Excess Contributions, Excise Tax for Nondeductible (Excess) Contributions Deduction Worksheet for Self-Employed, Table and Worksheets for the Self-Employed Deductions, Employer Deduction Deferrals, Treatment of contributions. Mypay military pay , Reporting on Form W-2. Mypay military pay Defined benefit plan, Defined Benefit Plan Defined contribution plan, Defined Contribution Plan Distributions, Distributions Minimum, Required Distributions Required beginning date, Required beginning date. Mypay military pay Rollover, Rollover. Mypay military pay Tax on excess benefits, Tax on Excess Benefits Tax on premature, Tax on Early Distributions Tax treatment, Tax Treatment of Distributions Elective Deferrals, Elective Deferrals (401(k) Plans) Limits, Limit on Elective Deferrals Employee nondeductible contributions, Employee Contributions Excess Deferrals, Treatment of Excess Deferrals Investing plan assets, Investing Plan Assets Kinds of plans, Kinds of Plans Leased employees, Leased employee. Mypay military pay Minimum requirements Coverage, Minimum coverage requirement must be met. Mypay military pay Funding, Minimum Funding Requirement Vesting, Minimum vesting standard must be met. Mypay military pay Prohibited transactions, Prohibited Transactions Qualification rules, Qualification Rules Rate Table for Self-Employed, Table and Worksheets for the Self-Employed Rate Worksheet for Self-Employed, Table and Worksheets for the Self-Employed Reporting requirements, Reporting Requirements Setting up, Setting Up a Qualified Plan Qualified Plans Survivor benefits, Survivor benefits. Mypay military pay Qualified Roth Contribution Program, Qualified Roth Contribution Program R Rate Table for Self-Employed, Rate table for self-employed. Mypay military pay Rate Worksheet for Self-Employed, Rate worksheet for self-employed. Mypay military pay Required distributions, Required Distributions Rollovers, Rollover. Mypay military pay S Safe harbor 401(k) plan, Safe harbor 401(k) plan. Mypay military pay Salary reduction arrangement, Deferral percentage. Mypay military pay , Limit on Elective Deferrals Salary Reduction Simplified Employee Pension(SARSEP), Salary Reduction Simplified Employee Pensions (SARSEPs) SARSEP ADP test, SARSEP ADP test. Mypay military pay Section 402(f) notice, Section 402(f) Notice. Mypay military pay Self-employed individual, Self-employed individual. Mypay military pay SEP plans Deduction Worksheet for Self-Employed, Table and Worksheets for the Self-Employed Rate Table for Self-Employed, Table and Worksheets for the Self-Employed Rate Worksheet for Self-Employed, Table and Worksheets for the Self-Employed Reporting and Disclosure, Reporting and Disclosure Requirements SEP-IRAs Contributions, Contributions for yourself. Mypay military pay Deductible contributions, Deducting Contributions, Excise tax. Mypay military pay Carryover of excess contributions, Carryover of Excess SEP Contributions Deduction limits, Deduction Limit for Contributions for Participants Limits for self-employed, Deduction Limit for Self-Employed Individuals When to deduct, When To Deduct Contributions Where to deduct, Where To Deduct Contributions Distributions (withdrawals), Distributions (Withdrawals) Eligible employee, Eligible employee. Mypay military pay Excludable employees, Excludable employees. Mypay military pay SIMPLE IRA plan Compensation, Compensation. Mypay military pay Contributions, Contribution Limits Deductions, Nonelective contributions. Mypay military pay Distributions(withdrawals), Distributions (Withdrawals) Employee election period, Election period. Mypay military pay Employer matching contributions, Employer matching contributions. Mypay military pay Excludable employees, Excludable employees. Mypay military pay Notification requirements, Notification Requirement When to deduct contributions, When To Deduct Contributions SIMPLE plans, Who Can Set Up a SIMPLE IRA Plan?, Reporting on Form W-2. Mypay military pay SIMPLE 401(k), SIMPLE 401(k) Plan SIMPLE IRA plan, SIMPLE IRA Plan Simplified employee pension (SEP), Salary Reduction Simplified Employee Pensions (SARSEPs) Salary reduction arrangement Compensation of self-employed individuals, Compensation of self-employed individuals. Mypay military pay Employee compensation, Employee compensation. Mypay military pay Who can have a SARSEP, Who can have a SARSEP? SEP-IRA contributions, How Much Can I Contribute? Setting up a SEP, Setting Up a SEP Sixty-day employee election period, Election period. Mypay military pay Sole proprietor, definition, Sole proprietor. Mypay military pay T Tax help, How To Get Tax Help U User fee, User fee. Mypay military pay W Worksheets Deduction Worksheet for Self-Employed, Table and Worksheets for the Self-Employed Rate Worksheet for Self-Employed, Table and Worksheets for the Self-Employed Prev  Up     Home   More Online Publications
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Appeals

About the Office of Appeals

Every year, the Office of Appeals helps over 100,000 taxpayers resolve their tax disputes without going to Tax Court. We are an independent organization from the IRS whose mission is to help taxpayers and the government resolve tax disagreements. Appeals DOES NOT take sides in a dispute; rather we offer an objective point of view on each individual case. See the Treasury Inspector General for Tax Administration’s report (PDF) on their audit of Appeals’ independence.
 

Appeals also offers mediation services through Fast Track Settlement, Early Referral, and other mediation programs. These mediation programs are designed to help you resolve your dispute at the earliest possible stage in the audit or collection process.

Getting Started with Appeals

If you’ve received an IRS letter stating that your case qualifies to be reviewed with Appeals then the following topics will help you get started.

 

Page Last Reviewed or Updated: 23-Jan-2014

The Mypay Military Pay

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