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Printable 1040ez Form

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Printable 1040ez Form

Printable 1040ez form 4. Printable 1040ez form   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. Printable 1040ez form S. Printable 1040ez form 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. Printable 1040ez form Useful Items - You may want to see: Publication 519 U. Printable 1040ez form S. Printable 1040ez form Tax Guide for Aliens 570 Tax Guide for Individuals With Income from U. Printable 1040ez form S. Printable 1040ez form Possessions 596 Earned Income Credit (EIC) Form (and Instructions) 1040X Amended U. Printable 1040ez form S. Printable 1040ez form 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. Printable 1040ez form 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. Printable 1040ez form If you are a U. Printable 1040ez form S. Printable 1040ez form citizen or a resident alien of the United States and you live abroad, you are taxed on your worldwide income. Printable 1040ez form However, you may qualify to exclude from income up to $97,600 of your foreign earnings. Printable 1040ez form In addition, you can exclude or deduct certain foreign housing amounts. Printable 1040ez form See Foreign Earned Income Exclusion and Foreign Housing Exclusion and Deduction, later. Printable 1040ez form You also may be entitled to exclude from income the value of meals and lodging provided to you by your employer. Printable 1040ez form See Exclusion of Meals and Lodging, later. Printable 1040ez form 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. Printable 1040ez form Your tax home must be in a foreign country. Printable 1040ez form You must have foreign earned income. Printable 1040ez form You must be one of the following. Printable 1040ez form A U. Printable 1040ez form S. Printable 1040ez form citizen who is a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year. Printable 1040ez form A U. Printable 1040ez form S. Printable 1040ez form 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. Printable 1040ez form A U. Printable 1040ez form S. Printable 1040ez form citizen or a U. Printable 1040ez form S. Printable 1040ez form 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. Printable 1040ez form See Publication 519 to find out if you are a U. Printable 1040ez form S. Printable 1040ez form resident alien for tax purposes and whether you keep that alien status when you temporarily work abroad. Printable 1040ez form If you are a nonresident alien married to a U. Printable 1040ez form S. Printable 1040ez form 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. Printable 1040ez form For information on making the choice, see the discussion in chapter 1 under Nonresident Alien Spouse Treated as a Resident . Printable 1040ez form Waiver of minimum time requirements. Printable 1040ez form   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. Printable 1040ez form This is fully explained under Waiver of Time Requirements , later. Printable 1040ez form   See Figure 4-A and information in this chapter to determine if you are eligible to claim either exclusion or the deduction. Printable 1040ez form 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. Printable 1040ez form Bona fide residence and physical presence are explained later. Printable 1040ez form 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. Printable 1040ez form Your tax home is the place where you are permanently or indefinitely engaged to work as an employee or self-employed individual. Printable 1040ez form Having a “tax home” in a given location does not necessarily mean that the given location is your residence or domicile for tax purposes. Printable 1040ez form 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. Printable 1040ez form 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. Printable 1040ez form 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. Printable 1040ez form However, your abode is not necessarily in the United States while you are temporarily in the United States. Printable 1040ez form 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. Printable 1040ez form “Abode” has been variously defined as one's home, habitation, residence, domicile, or place of dwelling. Printable 1040ez form It does not mean your principal place of business. Printable 1040ez form “Abode” has a domestic rather than a vocational meaning and does not mean the same as “tax home. Printable 1040ez form ” The location of your abode often will depend on where you maintain your economic, family, and personal ties. Printable 1040ez form Example 1. Printable 1040ez form 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. Printable 1040ez form You return to your family residence in the United States during your off periods. Printable 1040ez form You are considered to have an abode in the United States and do not satisfy the tax home test in the foreign country. Printable 1040ez form You cannot claim either of the exclusions or the housing deduction. Printable 1040ez form Example 2. Printable 1040ez form For several years, you were a marketing executive with a producer of machine tools in Toledo, Ohio. Printable 1040ez form 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. Printable 1040ez form Before you left, you distributed business cards showing your business and home addresses in London. Printable 1040ez form You kept ownership of your home in Toledo but rented it to another family. Printable 1040ez form You placed your car in storage. Printable 1040ez form In November of last year, you moved your spouse, children, furniture, and family pets to a home your employer rented for you in London. Printable 1040ez form Shortly after moving, you leased a car and you and your spouse got British driving licenses. Printable 1040ez form Your entire family got library cards for the local public library. Printable 1040ez form You and your spouse opened bank accounts with a London bank and secured consumer credit. Printable 1040ez form 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. Printable 1040ez form Your abode is in London for the time you live there. Printable 1040ez form You satisfy the tax home test in the foreign country. Printable 1040ez form Please click here for the text description of the image. Printable 1040ez form 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. Printable 1040ez form 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. Printable 1040ez form 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. Printable 1040ez form 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. Printable 1040ez form 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. Printable 1040ez form If you expect it to last for more than 1 year, it is indefinite. Printable 1040ez form 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. Printable 1040ez form Once your expectation changes, it is indefinite. Printable 1040ez form 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. Printable 1040ez form A foreign country includes any territory under the sovereignty of a government other than that of the United States. Printable 1040ez form The term “foreign country” includes the country's airspace and territorial waters, but not international waters and the airspace above them. Printable 1040ez form 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. Printable 1040ez form The term “foreign country” does not include Antarctica or U. Printable 1040ez form S. Printable 1040ez form possessions such as Puerto Rico, Guam, the Commonwealth of the Northern Mariana Islands, the U. Printable 1040ez form S. Printable 1040ez form Virgin Islands, and Johnston Island. Printable 1040ez form 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. Printable 1040ez form American Samoa, Guam, and the Commonwealth of the Northern Mariana Islands Residence or presence in a U. Printable 1040ez form S. Printable 1040ez form possession does not qualify you for the foreign earned income exclusion. Printable 1040ez form You may, however, qualify for an exclusion of your possession income on your U. Printable 1040ez form S. Printable 1040ez form return. Printable 1040ez form American Samoa. Printable 1040ez form   There is a possession exclusion available to individuals who are bona fide residents of American Samoa for the entire tax year. Printable 1040ez form Gross income from sources within American Samoa may be eligible for this exclusion. Printable 1040ez form Income that is effectively connected with the conduct of a trade or business within American Samoa also may be eligible for this exclusion. Printable 1040ez form Use Form 4563, Exclusion of Income for Bona Fide Residents of American Samoa, to figure the exclusion. Printable 1040ez form Guam and the Commonwealth of the Northern Mariana Islands. Printable 1040ez form   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. Printable 1040ez form   For more information, see Publication 570. Printable 1040ez form Puerto Rico and U. Printable 1040ez form S. Printable 1040ez form Virgin Islands Residents of Puerto Rico and the U. Printable 1040ez form S. Printable 1040ez form Virgin Islands cannot claim the foreign earned income exclusion or the foreign housing exclusion. Printable 1040ez form Puerto Rico. Printable 1040ez form   Generally, if you are a U. Printable 1040ez form S. Printable 1040ez form citizen who is a bona fide resident of Puerto Rico for the entire tax year, you are not subject to U. Printable 1040ez form S. Printable 1040ez form tax on income from Puerto Rican sources. Printable 1040ez form This does not include amounts paid for services performed as an employee of the United States. Printable 1040ez form However, you are subject to U. Printable 1040ez form S. Printable 1040ez form tax on your income from sources outside Puerto Rico. Printable 1040ez form In figuring your U. Printable 1040ez form S. Printable 1040ez form tax, you cannot deduct expenses allocable to income not subject to tax. Printable 1040ez form 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. Printable 1040ez form You can use the bona fide residence test to qualify for the exclusions and the deduction only if you are either: A U. Printable 1040ez form S. Printable 1040ez form citizen, or A U. Printable 1040ez form S. Printable 1040ez form resident alien who is a citizen or national of a country with which the United States has an income tax treaty in effect. Printable 1040ez form You do not automatically acquire bona fide resident status merely by living in a foreign country or countries for 1 year. Printable 1040ez form 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. Printable 1040ez form 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. Printable 1040ez form Bona fide residence. Printable 1040ez form   To meet the bona fide residence test, you must have established a bona fide residence in a foreign country. Printable 1040ez form   Your bona fide residence is not necessarily the same as your domicile. Printable 1040ez form Your domicile is your permanent home, the place to which you always return or intend to return. Printable 1040ez form Example. Printable 1040ez form You could have your domicile in Cleveland, Ohio, and a bona fide residence in Edinburgh, Scotland, if you intend to return eventually to Cleveland. Printable 1040ez form The fact that you go to Scotland does not automatically make Scotland your bona fide residence. Printable 1040ez form 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. Printable 1040ez form 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. Printable 1040ez form You are clearly not a resident of Scotland in the first instance. Printable 1040ez form However, in the second, you are a resident because your stay in Scotland appears to be permanent. Printable 1040ez form 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. Printable 1040ez form Determination. Printable 1040ez form   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. Printable 1040ez form   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. Printable 1040ez form 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. Printable 1040ez form IRS cannot make this determination until you file Form 2555. Printable 1040ez form Statement to foreign authorities. Printable 1040ez form   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. Printable 1040ez form Special agreements and treaties. Printable 1040ez form   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. Printable 1040ez form 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. Printable 1040ez form Example 1. Printable 1040ez form You are a U. Printable 1040ez form S. Printable 1040ez form citizen employed in the United Kingdom by a U. Printable 1040ez form S. Printable 1040ez form employer under contract with the U. Printable 1040ez form S. Printable 1040ez form Armed Forces. Printable 1040ez form You are not subject to the North Atlantic Treaty Status of Forces Agreement. Printable 1040ez form You may be a bona fide resident of the United Kingdom. Printable 1040ez form Example 2. Printable 1040ez form You are a U. Printable 1040ez form S. Printable 1040ez form 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. Printable 1040ez form You are not a bona fide resident of the United Kingdom. Printable 1040ez form Example 3. Printable 1040ez form You are a U. Printable 1040ez form S. Printable 1040ez form citizen employed in Japan by a U. Printable 1040ez form S. Printable 1040ez form employer under contract with the U. Printable 1040ez form S. Printable 1040ez form Armed Forces. Printable 1040ez form You are subject to the agreement of the Treaty of Mutual Cooperation and Security between the United States and Japan. Printable 1040ez form Being subject to the agreement does not make you a bona fide resident of Japan. Printable 1040ez form Example 4. Printable 1040ez form You are a U. Printable 1040ez form S. Printable 1040ez form citizen employed as an “official” by the United Nations in Switzerland. Printable 1040ez form You are exempt from Swiss taxation on the salary or wages paid to you by the United Nations. Printable 1040ez form This does not prevent you from being a bona fide resident of Switzerland. Printable 1040ez form Effect of voting by absentee ballot. Printable 1040ez form   If you are a U. Printable 1040ez form S. Printable 1040ez form 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. Printable 1040ez form   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. Printable 1040ez form Uninterrupted period including entire tax year. Printable 1040ez form   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. Printable 1040ez form An entire tax year is from January 1 through December 31 for taxpayers who file their income tax returns on a calendar year basis. Printable 1040ez form   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. Printable 1040ez form 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. Printable 1040ez form Example 1. Printable 1040ez form You arrived with your family in Lisbon, Portugal, on November 1, 2011. Printable 1040ez form Your assignment is indefinite, and you intend to live there with your family until your company sends you to a new post. Printable 1040ez form You immediately established residence there. Printable 1040ez form You spent April of 2012 at a business conference in the United States. Printable 1040ez form Your family stayed in Lisbon. Printable 1040ez form Immediately following the conference, you returned to Lisbon and continued living there. Printable 1040ez form 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. Printable 1040ez form Example 2. Printable 1040ez form Assume the same facts as in Example 1, except that you transferred back to the United States on December 13, 2012. Printable 1040ez form 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. Printable 1040ez form You may, however, qualify for the foreign earned income exclusion or the housing exclusion or deduction under the physical presence test (discussed later). Printable 1040ez form Bona fide resident for part of a year. Printable 1040ez form   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. Printable 1040ez form Your period of bona fide residence can include an entire tax year plus parts of 2 other tax years. Printable 1040ez form Example. Printable 1040ez form You were a bona fide resident of Singapore from March 1, 2011, through September 14, 2013. Printable 1040ez form On September 15, 2013, you returned to the United States. Printable 1040ez form 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. Printable 1040ez form Reassignment. Printable 1040ez form   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. Printable 1040ez form Example 1. Printable 1040ez form You were a resident of Pakistan from October 1, 2012, through November 30, 2013. Printable 1040ez form On December 1, 2013, you and your family returned to the United States to wait for an assignment to another foreign country. Printable 1040ez form Your household goods also were returned to the United States. Printable 1040ez form 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. Printable 1040ez form 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. Printable 1040ez form You may, however, qualify for the foreign earned income exclusion or the housing exclusion or deduction under the physical presence test, discussed later. Printable 1040ez form Example 2. Printable 1040ez form 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. Printable 1040ez form On December 1, 2013, you and your family returned to the United States for a month's vacation. Printable 1040ez form On January 2, 2014, you arrived in Turkey for your new assignment. Printable 1040ez form Because you did not interrupt your bona fide residence abroad, you meet the bona fide residence test. Printable 1040ez form 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. Printable 1040ez form The 330 days do not have to be consecutive. Printable 1040ez form Any U. Printable 1040ez form S. Printable 1040ez form citizen or resident alien can use the physical presence test to qualify for the exclusions and the deduction. Printable 1040ez form The physical presence test is based only on how long you stay in a foreign country or countries. Printable 1040ez form 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. Printable 1040ez form 330 full days. Printable 1040ez form   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. Printable 1040ez form You can count days you spent abroad for any reason. Printable 1040ez form You do not have to be in a foreign country only for employment purposes. Printable 1040ez form You can be on vacation. Printable 1040ez form   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. Printable 1040ez form Exception. Printable 1040ez form   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. Printable 1040ez form See Waiver of Time Requirements, later. Printable 1040ez form Full day. Printable 1040ez form   A full day is a period of 24 consecutive hours, beginning at midnight. Printable 1040ez form Travel. Printable 1040ez form    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. Printable 1040ez form Example. Printable 1040ez form You leave the United States for France by air on June 10. Printable 1040ez form You arrive in France at 9:00 a. Printable 1040ez form m. Printable 1040ez form on June 11. Printable 1040ez form Your first full day of physical presence in France is June 12. Printable 1040ez form Passing over foreign country. Printable 1040ez form   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. Printable 1040ez form Example. Printable 1040ez form You leave the United States by air at 9:30 a. Printable 1040ez form m. Printable 1040ez form on June 10 to travel to Kenya. Printable 1040ez form You pass over western Africa at 11:00 p. Printable 1040ez form m. Printable 1040ez form on June 10 and arrive in Kenya at 12:30 a. Printable 1040ez form m. Printable 1040ez form on June 11. Printable 1040ez form Your first full day in a foreign country is June 11. Printable 1040ez form Change of location. Printable 1040ez form   You can move about from one place to another in a foreign country or to another foreign country without losing full days. Printable 1040ez form 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. Printable 1040ez form Example 1. Printable 1040ez form You leave Ireland by air at 11:00 p. Printable 1040ez form m. Printable 1040ez form on July 6 and arrive in Sweden at 5:00 a. Printable 1040ez form m. Printable 1040ez form on July 7. Printable 1040ez form Your trip takes less than 24 hours and you lose no full days. Printable 1040ez form Example 2. Printable 1040ez form You leave Norway by ship at 10:00 p. Printable 1040ez form m. Printable 1040ez form on July 6 and arrive in Portugal at 6:00 a. Printable 1040ez form m. Printable 1040ez form on July 8. Printable 1040ez form 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. Printable 1040ez form If you remain in Portugal, your next full day in a foreign country is July 9. Printable 1040ez form In United States while in transit. Printable 1040ez form   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. Printable 1040ez form You are treated as traveling over areas not within any foreign country. Printable 1040ez form    Please click here for the text description of the image. Printable 1040ez form Figure 4-B How to figure the 12-month period. Printable 1040ez form   There are four rules you should know when figuring the 12-month period. Printable 1040ez form Your 12-month period can begin with any day of the month. Printable 1040ez form It ends the day before the same calendar day, 12 months later. Printable 1040ez form Your 12-month period must be made up of consecutive months. Printable 1040ez form Any 12-month period can be used if the 330 days in a foreign country fall within that period. Printable 1040ez form 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. Printable 1040ez form You can choose the 12-month period that gives you the greatest exclusion. Printable 1040ez form In determining whether the 12-month period falls within a longer stay in the foreign country, 12-month periods can overlap one another. Printable 1040ez form Example 1. Printable 1040ez form You are a construction worker who works on and off in a foreign country over a 20-month period. Printable 1040ez form 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. Printable 1040ez form Example 2. Printable 1040ez form 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. Printable 1040ez form 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. Printable 1040ez form By overlapping the 12-month periods in this way, you meet the physical presence test for the whole 20-month period. Printable 1040ez form See Figure 4-B, on the previous page. Printable 1040ez form Waiver of Time Requirements Both the bona fide residence test and the physical presence test contain minimum time requirements. Printable 1040ez form 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. Printable 1040ez form You must be able to show that you reasonably could have expected to meet the minimum time requirements if not for the adverse conditions. Printable 1040ez form 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. Printable 1040ez form 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. Printable 1040ez form 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. Printable 1040ez form 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. Printable 1040ez form U. Printable 1040ez form S. Printable 1040ez form Travel Restrictions If you are present in a foreign country in violation of U. Printable 1040ez form S. Printable 1040ez form 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. Printable 1040ez form 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. Printable 1040ez form 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. Printable 1040ez form For 2013, the only country to which travel restrictions applied was Cuba. Printable 1040ez form The restrictions applied for the entire year. Printable 1040ez form However, individuals working at the U. Printable 1040ez form S. Printable 1040ez form Naval Base at Guantanamo Bay in Cuba are not in violation of U. Printable 1040ez form S. Printable 1040ez form law. Printable 1040ez form Personal service income earned by individuals at the base is eligible for the foreign earned income exclusion provided the other requirements are met. Printable 1040ez form 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. Printable 1040ez form Foreign earned income generally is income you receive for services you perform during a period in which you meet both of the following requirements. Printable 1040ez form Your tax home is in a foreign country. Printable 1040ez form You meet either the bona fide residence test or the physical presence test. Printable 1040ez form To determine whether your tax home is in a foreign country, see Tax Home in Foreign Country, earlier. Printable 1040ez form 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. Printable 1040ez form Foreign earned income does not include the following amounts. Printable 1040ez form 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. Printable 1040ez form Pension or annuity payments you receive, including social security benefits (see Pensions and annuities, later). Printable 1040ez form Pay you receive as an employee of the U. Printable 1040ez form S. Printable 1040ez form Government. Printable 1040ez form (See U. Printable 1040ez form S. Printable 1040ez form Government Employees, later. Printable 1040ez form ) Amounts you include in your income because of your employer's contributions to a nonexempt employee trust or to a nonqualified annuity contract. Printable 1040ez form 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. Printable 1040ez form Payments you receive after the end of the tax year following the tax year in which you performed the services that earned the income. Printable 1040ez form Earned income. Printable 1040ez form   This is pay for personal services performed, such as wages, salaries, or professional fees. Printable 1040ez form The list that follows classifies many types of income into three categories. Printable 1040ez form The column headed Variable Income lists income that may fall into either the earned income category, the unearned income category, or partly into both. Printable 1040ez form For more information on earned and unearned income, see Earned and Unearned Income, later. Printable 1040ez form 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. Printable 1040ez form Noncash income. Printable 1040ez form   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. Printable 1040ez form Allowances or reimbursements. Printable 1040ez form   Earned income includes allowances or reimbursements you receive, such as the following amounts. Printable 1040ez form    Cost-of-living allowances. Printable 1040ez form Overseas differential. Printable 1040ez form Family allowance. Printable 1040ez form Reimbursement for education or education allowance. Printable 1040ez form Home leave allowance. Printable 1040ez form Quarters allowance. Printable 1040ez form Reimbursement for moving or moving allowance (unless excluded from income as discussed later in Reimbursement of employee expenses under Earned and Unearned Income). Printable 1040ez form Source of Earned Income The source of your earned income is the place where you perform the services for which you received the income. Printable 1040ez form Foreign earned income is income you receive for working in a foreign country. Printable 1040ez form Where or how you are paid has no effect on the source of the income. Printable 1040ez form 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. Printable 1040ez form Example. Printable 1040ez form You are a U. Printable 1040ez form S. Printable 1040ez form citizen, a bona fide resident of Canada, and working as a mining engineer. Printable 1040ez form Your salary is $76,800 per year. Printable 1040ez form You also receive a $6,000 cost-of-living allowance, and a $6,000 education allowance. Printable 1040ez form Your employment contract did not indicate that you were entitled to these allowances only while outside the United States. Printable 1040ez form Your total income is $88,800. Printable 1040ez form You work a 5-day week, Monday through Friday. Printable 1040ez form After subtracting your vacation, you have a total of 240 workdays in the year. Printable 1040ez form You worked in the United States during the year for 6 weeks (30 workdays). Printable 1040ez form The following shows how to figure the part of your income that is for work done in Canada during the year. Printable 1040ez form   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. Printable 1040ez form Earned and Unearned Income Earned income was defined earlier as pay for personal services performed. Printable 1040ez form Some types of income are not easily identified as earned or unearned income. Printable 1040ez form Some of these types of income are further explained here. Printable 1040ez form Income from a sole proprietorship or partnership. Printable 1040ez form   Income from a business in which capital investment is an important part of producing the income may be unearned income. Printable 1040ez form 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. Printable 1040ez form Capital a factor. Printable 1040ez form   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. Printable 1040ez form   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. Printable 1040ez form Because you do not have a net profit, the 30% limit does not apply. Printable 1040ez form Example 1. Printable 1040ez form You are a U. Printable 1040ez form S. Printable 1040ez form citizen and meet the bona fide residence test. Printable 1040ez form You invest in a partnership based in Cameroon that is engaged solely in selling merchandise outside the United States. Printable 1040ez form You perform no services for the partnership. Printable 1040ez form At the end of the tax year, your share of the net profits is $80,000. Printable 1040ez form The entire $80,000 is unearned income. Printable 1040ez form Example 2. Printable 1040ez form Assume that in Example 1 you spend time operating the business. Printable 1040ez form Your share of the net profits is $80,000; 30% of your share of the profits is $24,000. Printable 1040ez form 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. Printable 1040ez form Capital not a factor. Printable 1040ez form   If capital is not an income-producing factor and personal services produce the business income, the 30% rule does not apply. Printable 1040ez form The entire amount of business income is earned income. Printable 1040ez form Example. Printable 1040ez form You and Lou Green are management consultants and operate as equal partners in performing services outside the United States. Printable 1040ez form Because capital is not an income- producing factor, all the income from the partnership is considered earned income. Printable 1040ez form Income from a corporation. Printable 1040ez form   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. Printable 1040ez form Any amount over what is considered a reasonable salary is unearned income. Printable 1040ez form Example 1. Printable 1040ez form You are a U. Printable 1040ez form S. Printable 1040ez form citizen and an officer and stockholder of a corporation in Honduras. Printable 1040ez form You perform no work or service of any kind for the corporation. Printable 1040ez form During the tax year you receive a $10,000 “salary” from the corporation. Printable 1040ez form The $10,000 clearly is not for personal services and is unearned income. Printable 1040ez form Example 2. Printable 1040ez form You are a U. Printable 1040ez form S. Printable 1040ez form citizen and work full time as secretary-treasurer of your corporation. Printable 1040ez form During the tax year you receive $100,000 as salary from the corporation. Printable 1040ez form If $80,000 is a reasonable allowance as pay for the work you did, then $80,000 is earned income. Printable 1040ez form Stock options. Printable 1040ez form   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. Printable 1040ez form   If your gain on the disposition of stock you got by exercising an option is treated as capital gain, your gain is unearned income. Printable 1040ez form   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. Printable 1040ez form 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. Printable 1040ez form Any part of the earned income that is due to work you did outside the United States is foreign earned income. Printable 1040ez form   See Publication 525, Taxable and Nontaxable Income, for a discussion of the treatment of stock options. Printable 1040ez form Pensions and annuities. Printable 1040ez form    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. Printable 1040ez form Royalties. Printable 1040ez form   Royalties from the leasing of oil and mineral lands and patents generally are a form of rent or dividends and are unearned income. Printable 1040ez form   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. Printable 1040ez form Rental income. Printable 1040ez form   Generally, rental income is unearned income. Printable 1040ez form 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. Printable 1040ez form Example. Printable 1040ez form Larry Smith, a U. Printable 1040ez form S. Printable 1040ez form citizen living in Australia, owns and operates a rooming house in Sydney. Printable 1040ez form 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. Printable 1040ez form 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. Printable 1040ez form It is all unearned income. Printable 1040ez form Professional fees. Printable 1040ez form   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. Printable 1040ez form Income of an artist. Printable 1040ez form   Income you receive from the sale of paintings you created is earned income. Printable 1040ez form Scholarships and fellowships. Printable 1040ez form   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. Printable 1040ez form 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. Printable 1040ez form    Certain scholarship and fellowship income may be exempt under other provisions. Printable 1040ez form See Publication 970, Tax Benefits for Education, chapter 1. Printable 1040ez form Use of employer's property or facilities. Printable 1040ez form   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. Printable 1040ez form 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. Printable 1040ez form Example. Printable 1040ez form You are privately employed and live in Japan all year. Printable 1040ez form You are paid a salary of $6,000 a month. Printable 1040ez form You live rent-free in a house provided by your employer that has a fair rental value of $3,000 a month. Printable 1040ez form The house is not provided for your employer's convenience. Printable 1040ez form You report on the calendar-year, cash basis. Printable 1040ez form 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. Printable 1040ez form Reimbursement of employee expenses. Printable 1040ez form   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. Printable 1040ez form   The expenses for which you are reimbursed are not considered allocable (related) to your earned income. Printable 1040ez form If expenses and reimbursement are equal, there is nothing to allocate to excluded income. Printable 1040ez form 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. Printable 1040ez form (See chapter 5. Printable 1040ez form ) 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. Printable 1040ez form   These rules do not apply to the following individuals. Printable 1040ez form Straight-commission salespersons. Printable 1040ez form 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. Printable 1040ez form Accountable plan. Printable 1040ez form   An accountable plan is a reimbursement or allowance arrangement that includes all three of the following rules. Printable 1040ez form The expenses covered under the plan must have a business connection. Printable 1040ez form The employee must adequately account to the employer for these expenses within a reasonable period of time. Printable 1040ez form The employee must return any excess reimbursement or allowance within a reasonable period of time. Printable 1040ez form Reimbursement of moving expenses. Printable 1040ez form   Reimbursement of moving expenses may be earned income. Printable 1040ez form 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. Printable 1040ez form This section discusses reimbursements that must be included in earned income. Printable 1040ez form Publication 521, Moving Expenses, discusses additional rules that apply to moving expense deductions and reimbursements. Printable 1040ez form   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. Printable 1040ez form   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. Printable 1040ez form 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. Printable 1040ez form Move from U. Printable 1040ez form S. Printable 1040ez form to foreign country. Printable 1040ez form   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. Printable 1040ez form 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. Printable 1040ez form   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. Printable 1040ez form To figure the amount earned in the year of the move, multiply the reimbursement by a fraction. Printable 1040ez form 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. Printable 1040ez form   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. Printable 1040ez form The part earned in each year is figured as shown in the following example. Printable 1040ez form Example. Printable 1040ez form You are a U. Printable 1040ez form S. Printable 1040ez form citizen working in the United States. Printable 1040ez form You were told in October 2012 that you were being transferred to a foreign country. Printable 1040ez form 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. Printable 1040ez form Your employer reimbursed you $2,000 in January 2013 for the part of the moving expense that you were not allowed to deduct. Printable 1040ez form 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. Printable 1040ez form You figure the part of the reimbursement for services performed in the foreign country in 2012 by multiplying the total reimbursement by a fraction. Printable 1040ez form 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. Printable 1040ez form The remaining part of the reimbursement is for services performed in the foreign country in 2013. Printable 1040ez form This computation is used only to determine when the reimbursement is considered earned. Printable 1040ez form You would include the amount of the reimbursement in income in 2013, the year you received it. Printable 1040ez form Move between foreign countries. Printable 1040ez form   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. Printable 1040ez form Move to U. Printable 1040ez form S. Printable 1040ez form   If you move to the United States, the moving expense reimbursement that you must include in income is generally considered to be U. Printable 1040ez form S. Printable 1040ez form source income. Printable 1040ez form   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. Printable 1040ez form 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. Printable 1040ez form 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. Printable 1040ez form   See the discussion under Move from U. Printable 1040ez form S. Printable 1040ez form to foreign country , earlier, to figure the amount of the includible reimbursement considered earned in the year of the move. Printable 1040ez form 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. Printable 1040ez form Example. Printable 1040ez form You are a U. Printable 1040ez form S. Printable 1040ez form citizen employed in a foreign country. Printable 1040ez form 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. Printable 1040ez form 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. Printable 1040ez form 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. Printable 1040ez form 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. Printable 1040ez form 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. Printable 1040ez form The fraction is the number of days of foreign residence during the year (90) divided by the number of days in the year (365). Printable 1040ez form The remaining part of the includible reimbursement is for services performed in the foreign country in 2012. Printable 1040ez form You report the amount of the includible reimbursement in 2013, the year you received it. Printable 1040ez form    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. Printable 1040ez form Storage expense reimbursements. Printable 1040ez form   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. Printable 1040ez form U. Printable 1040ez form S. Printable 1040ez form 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. Printable 1040ez form This includes amounts paid from both appropriated and nonappropriated funds. Printable 1040ez form 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. Printable 1040ez form United States Armed Forces exchanges. Printable 1040ez form Commissioned and noncommissioned officers' messes. Printable 1040ez form Armed Forces motion picture services. Printable 1040ez form Kindergartens on foreign Armed Forces installations. Printable 1040ez form Amounts paid by the United States or its agencies to persons who are not their employees may qualify for exclusion or deduction. Printable 1040ez form If you are a U. Printable 1040ez form S. Printable 1040ez form Government employee paid by a U. Printable 1040ez form S. Printable 1040ez form 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. Printable 1040ez form S. Printable 1040ez form Government and does not qualify for exclusion or deduction. Printable 1040ez form If you have questions about whether you are an employee or an independent contractor, get Publication 15-A, Employer's Supplemental Tax Guide. Printable 1040ez form American Institute in Taiwan. Printable 1040ez form   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. Printable 1040ez form If you are an employee of the American Institute in Taiwan, allowances you receive are exempt from U. Printable 1040ez form S. Printable 1040ez form tax up to the amount that equals tax-exempt allowances received by civilian employees of the U. Printable 1040ez form S. Printable 1040ez form Government. Printable 1040ez form Allowances. Printable 1040ez form   Cost-of-living and foreign-area allowances paid under certain acts of Congress to U. Printable 1040ez form S. Printable 1040ez form 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. Printable 1040ez form Post differentials are wages that must be included in gross income, regardless of the act of Congress under which they are paid. Printable 1040ez form More information. Printable 1040ez form   Publication 516, U. Printable 1040ez form S. Printable 1040ez form Government Civilian Employees Stationed Abroad, has more information for U. Printable 1040ez form S. Printable 1040ez form Government employees abroad. Printable 1040ez form 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. Printable 1040ez form The meals are furnished: On the business premises of your employer, and For the convenience of your employer. Printable 1040ez form The lodging is furnished: On the business premises of your employer, For the convenience of your employer, and As a condition of your employment. Printable 1040ez form 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. Printable 1040ez form Amounts you do not include in income because of these rules are not foreign earned income. Printable 1040ez form If you receive a Form W-2, excludable amounts should not be included in the total reported in box 1 as wages. Printable 1040ez form Family. Printable 1040ez form   Your family, for this purpose, includes only your spouse and your dependents. Printable 1040ez form Lodging. Printable 1040ez form   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. Printable 1040ez form Business premises of employer. Printable 1040ez form   Generally, the business premises of your employer is wherever you work. Printable 1040ez form 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. Printable 1040ez form 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. Printable 1040ez form Convenience of employer. Printable 1040ez form   Whether meals or lodging are provided for your employer's convenience must be determined from all the facts and circumstances. Printable 1040ez form 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. Printable 1040ez form   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. Printable 1040ez form Condition of employment. Printable 1040ez form   Lodging is provided as a condition of employment if you must accept the lodging to properly carry out the duties of your job. Printable 1040ez form 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. Printable 1040ez form Foreign camps. Printable 1040ez form   If the lodging is in a camp located in a foreign country, the camp is considered part of your employer's business premises. Printable 1040ez form 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. Printable 1040ez form 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. Printable 1040ez form Foreign earned income was defined earlier in this chapter. Printable 1040ez form You also can choose to exclude from your income a foreign housing amount. Printable 1040ez form This is explained later under Foreign Housing Exclusion. Printable 1040ez form If you choose to exclude a foreign housing amount, you must figure the foreign housing exclusion before you figure the foreign earned income exclusion. Printable 1040ez form Your foreign earned income exclusion is limited to your foreign earned income minus your foreign housing exclusion. Printable 1040ez form 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. Printable 1040ez form This includes any expenses, losses, and other normally deductible items allocable to the excluded income. Printable 1040ez form For more information about deductions and credits, see chapter 5 . Printable 1040ez form Limit on Excludable Amount You may be able to exclude up to $97,600 of your foreign earned income in 2013. Printable 1040ez form 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). Printable 1040ez form 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. Printable 1040ez form You do not both need to meet the same test. Printable 1040ez form Together, you and your spouse can exclude as much as $195,200. Printable 1040ez form Paid in year following work. Printable 1040ez form   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. Printable 1040ez form If you report your income on a cash basis, you report the income on your return for the year you receive it. Printable 1040ez form 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. Printable 1040ez form For an exception to this general rule, see Year-end payroll period, later. Printable 1040ez form Example. Printable 1040ez form You were a bona fide resident of Brazil for all of 2012 and 2013. Printable 1040ez form You report your income on the cash basis. Printable 1040ez form In 2012, you were paid $84,200 for work you did in Brazil during that year. Printable 1040ez form You excluded all of the $84,200 from your income in 2012. Printable 1040ez form In 2013, you were paid $117,300 for your work in Brazil. Printable 1040ez form $18,800 was for work you did in 2012 and $98,500 was for work you did in 2013. Printable 1040ez form You can exclude $10,900 of the $18,800 from your income in 2013. Printable 1040ez form This is the $95,100 maximum exclusion in 2012 minus the $84,200 actually excluded that year. Printable 1040ez form 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. Printable 1040ez form You can exclude $97,600 of the $98,500 you were paid for work you did in 2013 from your 2013 income. Printable 1040ez form 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). Printable 1040ez form 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). Printable 1040ez form Year-end payroll period. Printable 1040ez form   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. Printable 1040ez form 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. Printable 1040ez form The period for which the payment is made is a normal payroll period of your employer that regularly applies to you. Printable 1040ez form The payroll period includes the last day of your tax year (December 31 if you figure your taxes on a calendar-year basis). Printable 1040ez form The payroll period is not longer than 16 days. Printable 1040ez form 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. Printable 1040ez form Example. Printable 1040ez form You are paid twice a month. Printable 1040ez form 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. Printable 1040ez form 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. Printable 1040ez form Because all of the above conditions are met, the pay you received on January 1, 2013, is considered earned in 2013. Printable 1040ez form Income earned over more than 1 year. Printable 1040ez form   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. Printable 1040ez form For example, a bonus may be based on work you did over several years. Printable 1040ez form You determine the amount of the bonus that is considered earned in a particular year in two steps. Printable 1040ez form Divide the bonus by the number of calendar months in the period when you did the work that resulted in the bonus. Printable 1040ez form Multiply the result of (1) by the number of months you did the work during the year. Printable 1040ez form This is the amount that is subject to the exclusion limit for that tax year. Printable 1040ez form Income received more than 1 year after it was earned. Printable 1040ez form   You cannot exclude income you receive after the end of the year following the year you do the work to earn it. Printable 1040ez form Example. Printable 1040ez form   You were a bona fide resident of Sweden for 2011, 2012, and 2013. Printable 1040ez form You report your income on the cash basis. Printable 1040ez form 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. Printable 1040ez form You excluded all the income on your 2011 and 2012 returns. Printable 1040ez form   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. Printable 1040ez form 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. Printable 1040ez form You must include the $10,000 in income. Printable 1040ez form You can exclude all of the $82,000 received for work you did in 2013. Printable 1040ez form Community income. Printable 1040ez form   The maximum exclusion applies separately to the earnings of spouses. Printable 1040ez form Ignore any community property laws when you figure your limit on the foreign earned income exclusion. Printable 1040ez form Part-year exclusion. Printable 1040ez form   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. Printable 1040ez form 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. Printable 1040ez form   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. Printable 1040ez form 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. Printable 1040ez form Example. Printable 1040ez form 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. Printable 1040ez form You can exclude a maximum of 75/365 of $97,600, or $20,055, of your foreign earned income for 2013. Printable 1040ez form 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. Printable 1040ez form Physical presence test. Printable 1040ez form   Under the physical presence test, a 12-month period can be any period of 12 consecutive months that includes 330 full days. Printable 1040ez form 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. Printable 1040ez form Example. Printable 1040ez form 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. Printable 1040ez form You figure the maximum exclusion for 2012 as follows. Printable 1040ez form Beginning with June 1, 2012, count forward 330 full days. Printable 1040ez form Do not count the 16 days you spent in the United States. Printable 1040ez form The 330th day, May 12, 2013, is the last day of a 12-month period. Printable 1040ez form Count backward 12 months from May 11, 2013, to find the first day of this 12-month period, May 12, 2012. Printable 1040ez form This 12-month period runs from May 12, 2012, through May 11, 2013. Printable 1040ez form Count the total days during 2012 that fall within this 12-month period. Printable 1040ez form This is 234 days (May 12, 2012 – December 31, 2012). Printable 1040ez form Multiply $95,100 (the maximum exclusion for 2012) by the fraction 234/366 to find your maximum exclusion for 2012 ($60,802). Printable 1040ez form You figure the maximum exclusion for 2013 in the opposite manner. Printable 1040ez form Beginning with your last full day, September 30, 2013, count backward 330 full days. Printable 1040ez form Do not count the 16 days you spent in the United States. Printable 1040ez form That day, October 20, 2012, is the first day of a 12-month period. Printable 1040ez form Count forward 12 months from October 20, 2012, to find the last day of this 12-month period, October 19, 2013. Printable 1040ez form This 12-month period runs from October 20, 2012, through October 19, 2013. Printable 1040ez form Count the total days during 2013 that fall within this 12-month period. Printable 1040ez form This is 292 days (January 1, 2013 – October 19, 2013). Printable 1040ez form Multiply $97,600, the maximum limit, by the fraction 292/365 to find your maximum exclusion for 2013 ($78,080). Printable 1040ez form Choosing the Exclusion The foreign earned income exclusion is voluntary. Printable 1040ez form You can choose the exclusion by completing the appropriate parts of Form 2555. Printable 1040ez form 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. Printable 1040ez form A return filed by the due date (including any extensions). Printable 1040ez form A return amending a timely-filed return. Printable 1040ez form 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. Printable 1040ez form A return filed within 1 year from the original due date of the return (determined without regard to any extensions). Printable 1040ez form Filing after the above periods. Printable 1040ez form   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. Printable 1040ez form 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. Printable 1040ez form 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. Printable 1040ez form 911-7(a)(2)(i)(D). Printable 1040ez form ” 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. Printable 1040ez form You must request a private letter ruling under Income Tax Regulation 301. Printable 1040ez form 9100-3 and Revenue Procedure 2013-1, 2013-1 I. Printable 1040ez form R. Printable 1040ez form B. Printable 1040ez form 1, available at www. Printable 1040ez form irs. Printable 1040ez form gov/irb/2013-01_IRB/ar06. Printable 1040ez form html. Printable 1040ez form 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. Printable 1040ez form Foreign tax credit or deduction. Printable 1040ez form  
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IRS - Collecting Revenue

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These tables provide an overview of the main IRS functions: processing tax returns and collecting revenue. Much of these data are published by fiscal year; however, historical tax collection data are also available, as well as projections of returns to be filed in the future.

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Fiscal Year Data

The tables below were originally published in the IRS Data Book, which is IRS Publication 55B, and are complied by various divisions throughout the IRS. The IRS's fiscal year runs from October 1 to September 30.


Summary of Internal Revenue Collections

Internal Revenue Collections and Refunds
Internal Revenue collections and refunds, by type of tax, including corporation, individual, employment, estate, gift, and excise taxes.

Internal Revenue Gross Collections

Internal Revenue Gross Collections
These tables breakout the total taxes paid by type of tax, including corporation, individual, employment, estate & gift, and excise taxes.


Internal Revenue Gross Collections
Shown by state and by type of tax, including corporation, individual and employment, railroad retirement, unemployment insurance, estate, gift, and excise taxes.

•  Prior to 2000, gross collections were reported by IRS region and district, as shown in the tables below.

Fiscal Years available: 
1999    1998    1997    1996    1995

Summary of Number of Returns

Number of Returns Filed
These tables provide a summary of returns filed, by tax type, including income, estate, gift, employment, and excise taxes, as well as tax-exempt organizations, employee plan, and supplemental documents.

Number of Returns Filed
These tables provide a summary of returns filed, by tax type and state, including income, estate, gift, employment, and excise taxes, as well as tax-exempt organizations, employee plan, and supplemental documents.
by Type of Return and State

•  From 1995 to 1999, the number of returns filed are available by IRS region and district. 
by type of tax and fiscal years
1999     1998     1997     1996     1995

Number of Returns Filed Electronically, by Type of Return and State
The number of tax returns filed electronically is available broken out by state.  Also included are the breakouts for online filers and paid-preparer filed returns.

Selected Information from Returns Filed
For many years, IRS published information from filed returns.  Details cover the presidential election campaign fund, contributions to reduce public debt, the earned income tax credit, and IRS master file accounts.

Fiscal Years available:   
2005     2004     2003     2002     2001     2000     1999     1998     1997     1996     1995


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SOI Historical Tables

The following tables are part of the SOI Historical tables published in the SOI Bulletin.

Treasury Department Gross Tax Collections
Classified by: Amounts collected, by quarter and fiscal year, by type of return
Fiscal Years covered: 1987-2007
                                        
Federal Excise Taxes Reported to or Collected by the IRS, Alcohol and Tobacco Tax and Trade Bureau, and Customs Service

 

Classified by:

Fiscal Years
covered:

Type of excise tax (including luxury taxes, fuel, sport fishing equipment, environmental taxes, wine, beer, tobacco, etc.), by fiscal year

1999-2007

 


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Filing Projections for Selected Tax Returns

Projections of Federal Tax Return Filings: Calendar Years 2005-2012
                              
    • SOI Bulletin article This article discusses the return projections in detail, including the effects of new forms and e-file.  Projection highlights and methodology are also included.
                                                        
    • Data table Filing projections are broken out by form types and method of filing (where multiple options are available).

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Issuing Refunds  |  Enforcing Laws

Assisting Taxpayers  |  Managing the System

IRS Tax Compliance Activities  |  Taxpayer Compliance Research

 

 

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Page Last Reviewed or Updated: 25-Feb-2014

The Printable 1040ez Form

Printable 1040ez form 18. Printable 1040ez form   Alimony Table of Contents IntroductionSpouse or former spouse. Printable 1040ez form Divorce or separation instrument. Printable 1040ez form Useful Items - You may want to see: General RulesMortgage payments. Printable 1040ez form Taxes and insurance. Printable 1040ez form Other payments to a third party. Printable 1040ez form Instruments Executed After 1984Payments to a third party. Printable 1040ez form Exception. Printable 1040ez form Substitute payments. Printable 1040ez form Specifically designated as child support. Printable 1040ez form Contingency relating to your child. Printable 1040ez form Clearly associated with a contingency. Printable 1040ez form How To Deduct Alimony Paid How To Report Alimony Received Recapture Rule Introduction This chapter discusses the rules that apply if you pay or receive alimony. Printable 1040ez form It covers the following topics. Printable 1040ez form What payments are alimony. Printable 1040ez form What payments are not alimony, such as child support. Printable 1040ez form How to deduct alimony you paid. Printable 1040ez form How to report alimony you received as income. Printable 1040ez form Whether you must recapture the tax benefits of alimony. Printable 1040ez form Recapture means adding back in your income all or part of a deduction you took in a prior year. Printable 1040ez form Alimony is a payment to or for a spouse or former spouse under a divorce or separation instrument. Printable 1040ez form It does not include voluntary payments that are not made under a divorce or separation instrument. Printable 1040ez form Alimony is deductible by the payer and must be included in the spouse's or former spouse's income. Printable 1040ez form Although this chapter is generally written for the payer of the alimony, the recipient can use the information to determine whether an amount received is alimony. Printable 1040ez form To be alimony, a payment must meet certain requirements. Printable 1040ez form Different requirements generally apply to payments under instruments executed after 1984 and to payments under instruments executed before 1985. Printable 1040ez form This chapter discusses the rules for payments under instruments executed after 1984. Printable 1040ez form If you need the rules for payments under pre-1985 instruments, get and keep a copy of the 2004 version of Publication 504. Printable 1040ez form That was the last year the information on pre-1985 instruments was included in Publication 504. Printable 1040ez form Use Table 18-1 in this chapter as a guide to determine whether certain payments are considered alimony. Printable 1040ez form Definitions. Printable 1040ez form   The following definitions apply throughout this chapter. Printable 1040ez form Spouse or former spouse. Printable 1040ez form   Unless otherwise stated, the term “spouse” includes former spouse. Printable 1040ez form Divorce or separation instrument. Printable 1040ez form   The term “divorce or separation instrument” means: A decree of divorce or separate maintenance or a written instrument incident to that decree, A written separation agreement, or A decree or any type of court order requiring a spouse to make payments for the support or maintenance of the other spouse. Printable 1040ez form This includes a temporary decree, an interlocutory (not final) decree, and a decree of alimony pendente lite (while awaiting action on the final decree or agreement). Printable 1040ez form Useful Items - You may want to see: Publication 504 Divorced or Separated Individuals General Rules The following rules apply to alimony regardless of when the divorce or separation instrument was executed. Printable 1040ez form Payments not alimony. Printable 1040ez form   Not all payments under a divorce or separation instrument are alimony. Printable 1040ez form Alimony does not include: Child support, Noncash property settlements, Payments that are your spouse's part of community income, as explained under Community Property in Publication 504, Payments to keep up the payer's property, or Use of the payer's property. Printable 1040ez form Payments to a third party. Printable 1040ez form   Cash payments, checks, or money orders to a third party on behalf of your spouse under the terms of your divorce or separation instrument can be alimony, if they otherwise qualify. Printable 1040ez form These include payments for your spouse's medical expenses, housing costs (rent, utilities, etc. Printable 1040ez form ), taxes, tuition, etc. Printable 1040ez form The payments are treated as received by your spouse and then paid to the third party. Printable 1040ez form Life insurance premiums. Printable 1040ez form   Alimony includes premiums you must pay under your divorce or separation instrument for insurance on your life to the extent your spouse owns the policy. Printable 1040ez form Payments for jointly-owned home. Printable 1040ez form   If your divorce or separation instrument states that you must pay expenses for a home owned by you and your spouse, some of your payments may be alimony. Printable 1040ez form Mortgage payments. Printable 1040ez form   If you must pay all the mortgage payments (principal and interest) on a jointly-owned home, and they otherwise qualify as alimony, you can deduct one-half of the total payments as alimony. Printable 1040ez form If you itemize deductions and the home is a qualified home, you can claim one-half of the interest in figuring your deductible interest. Printable 1040ez form Your spouse must report one-half of the payments as alimony received. Printable 1040ez form If your spouse itemizes deductions and the home is a qualified home, he or she can claim one-half of the interest on the mortgage in figuring deductible interest. Printable 1040ez form Taxes and insurance. Printable 1040ez form   If you must pay all the real estate taxes or insurance on a home held as tenants in common, you can deduct one-half of these payments as alimony. Printable 1040ez form Your spouse must report one-half of these payments as alimony received. Printable 1040ez form If you and your spouse itemize deductions, you can each claim one-half of the real estate taxes and none of the home insurance. Printable 1040ez form    If your home is held as tenants by the entirety or joint tenants, none of your payments for taxes or insurance are alimony. Printable 1040ez form But if you itemize deductions, you can claim all of the real estate taxes and none of the home insurance. Printable 1040ez form Other payments to a third party. Printable 1040ez form   If you made other third-party payments, see Publication 504 to see whether any part of the payments qualifies as alimony. Printable 1040ez form Instruments Executed After 1984 The following rules for alimony apply to payments under divorce or separation instruments executed after 1984. Printable 1040ez form Exception for instruments executed before 1985. Printable 1040ez form   There are two situations where the rules for instruments executed after 1984 apply to instruments executed before 1985. Printable 1040ez form A divorce or separation instrument executed before 1985 and then modified after 1984 to specify that the after-1984 rules will apply. Printable 1040ez form A temporary divorce or separation instrument executed before 1985 and incorporated into, or adopted by, a final decree executed after 1984 that: Changes the amount or period of payment, or Adds or deletes any contingency or condition. Printable 1040ez form   For the rules for alimony payments under pre-1985 instruments not meeting these exceptions, get the 2004 version of Publication 504 at www. Printable 1040ez form irs. Printable 1040ez form gov/pub504. Printable 1040ez form Example 1. Printable 1040ez form In November 1984, you and your former spouse executed a written separation agreement. Printable 1040ez form In February 1985, a decree of divorce was substituted for the written separation agreement. Printable 1040ez form The decree of divorce did not change the terms for the alimony you pay your former spouse. Printable 1040ez form The decree of divorce is treated as executed before 1985. Printable 1040ez form Alimony payments under this decree are not subject to the rules for payments under instruments executed after 1984. Printable 1040ez form Example 2. Printable 1040ez form Assume the same facts as in Example 1 except that the decree of divorce changed the amount of the alimony. Printable 1040ez form In this example, the decree of divorce is not treated as executed before 1985. Printable 1040ez form The alimony payments are subject to the rules for payments under instruments executed after 1984. Printable 1040ez form Alimony requirements. Printable 1040ez form   A payment to or for a spouse under a divorce or separation instrument is alimony if the spouses do not file a joint return with each other and all the following requirements are met. Printable 1040ez form The payment is in cash. Printable 1040ez form The instrument does not designate the payment as not alimony. Printable 1040ez form Spouses legally separated under a decree of divorce or separate maintenance are not members of the same household. Printable 1040ez form There is no liability to make any payment (in cash or property) after the death of the recipient spouse. Printable 1040ez form The payment is not treated as child support. Printable 1040ez form Each of these requirements is discussed below. Printable 1040ez form Cash payment requirement. Printable 1040ez form   Only cash payments, including checks and money orders, qualify as alimony. Printable 1040ez form The following do not qualify as alimony. Printable 1040ez form Transfers of services or property (including a debt instrument of a third party or an annuity contract). Printable 1040ez form Execution of a debt instrument by the payer. Printable 1040ez form The use of the payer's property. Printable 1040ez form Payments to a third party. Printable 1040ez form   Cash payments to a third party under the terms of your divorce or separation instrument can qualify as cash payments to your spouse. Printable 1040ez form See Payments to a third party under General Rules, earlier. Printable 1040ez form   Also, cash payments made to a third party at the written request of your spouse may qualify as alimony if all the following requirements are met. Printable 1040ez form The payments are in lieu of payments of alimony directly to your spouse. Printable 1040ez form The written request states that both spouses intend the payments to be treated as alimony. Printable 1040ez form You receive the written request from your spouse before you file your return for the year you made the payments. Printable 1040ez form Payments designated as not alimony. Printable 1040ez form   You and your spouse can designate that otherwise qualifying payments are not alimony. Printable 1040ez form You do this by including a provision in your divorce or separation instrument that states the payments are not deductible as alimony by you and are excludable from your spouse's income. Printable 1040ez form For this purpose, any instrument (written statement) signed by both of you that makes this designation and that refers to a previous written separation agreement is treated as a written separation agreement (and therefore a divorce or separation instrument). Printable 1040ez form If you are subject to temporary support orders, the designation must be made in the original or a later temporary support order. Printable 1040ez form   Your spouse can exclude the payments from income only if he or she attaches a copy of the instrument designating them as not alimony to his or her return. Printable 1040ez form The copy must be attached each year the designation applies. Printable 1040ez form Spouses cannot be members of the same household. Printable 1040ez form    Payments to your spouse while you are members of the same household are not alimony if you are legally separated under a decree of divorce or separate maintenance. Printable 1040ez form A home you formerly shared is considered one household, even if you physically separate yourselves in the home. Printable 1040ez form   You are not treated as members of the same household if one of you is preparing to leave the household and does leave no later than 1 month after the date of the payment. Printable 1040ez form Exception. Printable 1040ez form   If you are not legally separated under a decree of divorce or separate maintenance, a payment under a written separation agreement, support decree, or other court order may qualify as alimony even if you are members of the same household when the payment is made. Printable 1040ez form Table 18-1. Printable 1040ez form Alimony Requirements (Instruments Executed After 1984) Payments ARE alimony if all of the following are true: Payments are NOT alimony if any of the following are true: Payments are required by a divorce or separation instrument. Printable 1040ez form Payments are not required by a divorce or separation instrument. Printable 1040ez form Payer and recipient spouse do not file a joint return with each other. Printable 1040ez form Payer and recipient spouse file a joint return with each other. Printable 1040ez form Payment is in cash (including checks or money orders). Printable 1040ez form Payment is: Not in cash, A noncash property settlement, Spouse's part of community income, or To keep up the payer's property. Printable 1040ez form Payment is not designated in the instrument as not alimony. Printable 1040ez form Payment is designated in the instrument as not alimony. Printable 1040ez form Spouses legally separated under a decree of divorce or separate maintenance are not members of the same household. Printable 1040ez form Spouses legally separated under a decree of divorce or separate maintenance are members of the same household. Printable 1040ez form Payments are not required after death of the recipient spouse. Printable 1040ez form Payments are required after death of the recipient spouse. Printable 1040ez form Payment is not treated as child support. Printable 1040ez form Payment is treated as child support. Printable 1040ez form These payments are deductible by the payer and includible in income by the recipient. Printable 1040ez form These payments are neither deductible by the payer nor includible in income by the recipient. Printable 1040ez form Liability for payments after death of recipient spouse. Printable 1040ez form   If any part of payments you make must continue to be made for any period after your spouse's death, that part of your payments is not alimony, whether made before or after the death. Printable 1040ez form If all of the payments would continue, then none of the payments made before or after the death are alimony. Printable 1040ez form   The divorce or separation instrument does not have to expressly state that the payments cease upon the death of your spouse if, for example, the liability for continued payments would end under state law. Printable 1040ez form Example. Printable 1040ez form You must pay your former spouse $10,000 in cash each year for 10 years. Printable 1040ez form Your divorce decree states that the payments will end upon your former spouse's death. Printable 1040ez form You must also pay your former spouse or your former spouse's estate $20,000 in cash each year for 10 years. Printable 1040ez form The death of your spouse would not terminate these payments under state law. Printable 1040ez form The $10,000 annual payments may qualify as alimony. Printable 1040ez form The $20,000 annual payments that do not end upon your former spouse's death are not alimony. Printable 1040ez form Substitute payments. Printable 1040ez form   If you must make any payments in cash or property after your spouse's death as a substitute for continuing otherwise qualifying payments before the death, the otherwise qualifying payments are not alimony. Printable 1040ez form To the extent that your payments begin, accelerate, or increase because of the death of your spouse, otherwise qualifying payments you made may be treated as payments that were not alimony. Printable 1040ez form Whether or not such payments will be treated as not alimony depends on all the facts and circumstances. Printable 1040ez form Example 1. Printable 1040ez form Under your divorce decree, you must pay your former spouse $30,000 annually. Printable 1040ez form The payments will stop at the end of 6 years or upon your former spouse's death, if earlier. Printable 1040ez form Your former spouse has custody of your minor children. Printable 1040ez form The decree provides that if any child is still a minor at your spouse's death, you must pay $10,000 annually to a trust until the youngest child reaches the age of majority. Printable 1040ez form The trust income and corpus (principal) are to be used for your children's benefit. Printable 1040ez form These facts indicate that the payments to be made after your former spouse's death are a substitute for $10,000 of the $30,000 annual payments. Printable 1040ez form Of each of the $30,000 annual payments, $10,000 is not alimony. Printable 1040ez form Example 2. Printable 1040ez form Under your divorce decree, you must pay your former spouse $30,000 annually. Printable 1040ez form The payments will stop at the end of 15 years or upon your former spouse's death, if earlier. Printable 1040ez form The decree provides that if your former spouse dies before the end of the 15-year period, you must pay the estate the difference between $450,000 ($30,000 × 15) and the total amount paid up to that time. Printable 1040ez form For example, if your spouse dies at the end of the tenth year, you must pay the estate $150,000 ($450,000 − $300,000). Printable 1040ez form These facts indicate that the lump-sum payment to be made after your former spouse's death is a substitute for the full amount of the $30,000 annual payments. Printable 1040ez form None of the annual payments are alimony. Printable 1040ez form The result would be the same if the payment required at death were to be discounted by an appropriate interest factor to account for the prepayment. Printable 1040ez form Child support. Printable 1040ez form   A payment that is specifically designated as child support or treated as specifically designated as child support under your divorce or separation instrument is not alimony. Printable 1040ez form The amount of child support may vary over time. Printable 1040ez form Child support payments are not deductible by the payer and are not taxable to the recipient. Printable 1040ez form Specifically designated as child support. Printable 1040ez form   A payment will be treated as specifically designated as child support to the extent that the payment is reduced either: On the happening of a contingency relating to your child, or At a time that can be clearly associated with the contingency. Printable 1040ez form A payment may be treated as specifically designated as child support even if other separate payments are specifically designated as child support. Printable 1040ez form Contingency relating to your child. Printable 1040ez form   A contingency relates to your child if it depends on any event relating to that child. Printable 1040ez form It does not matter whether the event is certain or likely to occur. Printable 1040ez form Events relating to your child include the child's: Becoming employed, Dying, Leaving the household, Leaving school, Marrying, or Reaching a specified age or income level. Printable 1040ez form Clearly associated with a contingency. Printable 1040ez form   Payments that would otherwise qualify as alimony are presumed to be reduced at a time clearly associated with the happening of a contingency relating to your child only in the following situations. Printable 1040ez form The payments are to be reduced not more than 6 months before or after the date the child will reach 18, 21, or local age of majority. Printable 1040ez form The payments are to be reduced on two or more occasions that occur not more than 1 year before or after a different one of your children reaches a certain age from 18 to 24. Printable 1040ez form This certain age must be the same for each child, but need not be a whole number of years. Printable 1040ez form In all other situations, reductions in payments are not treated as clearly associated with the happening of a contingency relating to your child. Printable 1040ez form   Either you or the IRS can overcome the presumption in the two situations above. Printable 1040ez form This is done by showing that the time at which the payments are to be reduced was determined independently of any contingencies relating to your children. Printable 1040ez form For example, if you can show that the period of alimony payments is customary in the local jurisdiction, such as a period equal to one-half of the duration of the marriage, you can overcome the presumption and may be able to treat the amount as alimony. Printable 1040ez form How To Deduct Alimony Paid You can deduct alimony you paid, whether or not you itemize deductions on your return. Printable 1040ez form You must file Form 1040. Printable 1040ez form You cannot use Form 1040A or Form 1040EZ. Printable 1040ez form Enter the amount of alimony you paid on Form 1040, line 31a. Printable 1040ez form In the space provided on line 31b, enter your spouse's social security number (SSN) or individual taxpayer identification number (ITIN). Printable 1040ez form If you paid alimony to more than one person, enter the SSN or ITIN of one of the recipients. Printable 1040ez form Show the SSN or ITIN and amount paid to each other recipient on an attached statement. Printable 1040ez form Enter your total payments on line 31a. Printable 1040ez form You must provide your spouse's SSN or ITIN. Printable 1040ez form If you do not, you may have to pay a $50 penalty and your deduction may be disallowed. Printable 1040ez form For more information on SSNs and ITINs, see Social Security Number (SSN) in chapter 1. Printable 1040ez form How To Report Alimony Received Report alimony you received as income on Form 1040, line 11. Printable 1040ez form You cannot use Form 1040A or Form 1040EZ. Printable 1040ez form You must give the person who paid the alimony your SSN or ITIN. Printable 1040ez form If you do not, you may have to pay a $50 penalty. Printable 1040ez form Recapture Rule If your alimony payments decrease or end during the first 3 calendar years, you may be subject to the recapture rule. Printable 1040ez form If you are subject to this rule, you have to include in income in the third year part of the alimony payments you previously deducted. Printable 1040ez form Your spouse can deduct in the third year part of the alimony payments he or she previously included in income. Printable 1040ez form The 3-year period starts with the first calendar year you make a payment qualifying as alimony under a decree of divorce or separate maintenance or a written separation agreement. Printable 1040ez form Do not include any time in which payments were being made under temporary support orders. Printable 1040ez form The second and third years are the next 2 calendar years, whether or not payments are made during those years. Printable 1040ez form The reasons for a reduction or end of alimony payments that can require a recapture include: A change in your divorce or separation instrument, A failure to make timely payments, A reduction in your ability to provide support, or A reduction in your spouse's support needs. Printable 1040ez form When to apply the recapture rule. Printable 1040ez form   You are subject to the recapture rule in the third year if the alimony you pay in the third year decreases by more than $15,000 from the second year or the alimony you pay in the second and third years decreases significantly from the alimony you pay in the first year. Printable 1040ez form   When you figure a decrease in alimony, do not include the following amounts. Printable 1040ez form Payments made under a temporary support order. Printable 1040ez form Payments required over a period of at least 3 calendar years that vary because they are a fixed part of your income from a business or property, or from compensation for employment or self-employment. Printable 1040ez form Payments that decrease because of the death of either spouse or the remarriage of the spouse receiving the payments before the end of the third year. Printable 1040ez form Figuring the recapture. Printable 1040ez form   You can use Worksheet 1 in Publication 504 to figure recaptured alimony. Printable 1040ez form Including the recapture in income. Printable 1040ez form   If you must include a recapture amount in income, show it on Form 1040, line 11 (“Alimony received”). Printable 1040ez form Cross out “received” and enter “recapture. Printable 1040ez form ” On the dotted line next to the amount, enter your spouse's last name and SSN or ITIN. Printable 1040ez form Deducting the recapture. Printable 1040ez form   If you can deduct a recapture amount, show it on Form 1040, line 31a (“Alimony paid”). Printable 1040ez form Cross out “paid” and enter “recapture. Printable 1040ez form ” In the space provided, enter your spouse's SSN or ITIN. Printable 1040ez form Prev  Up  Next   Home   More Online Publications