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

TurboTax Federal Free Edition - File Taxes Online

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

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


© 2012 - 2018 All rights reserved.

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

Taxes Unemployed

Irs Amendment FormAmended Tax ReturnsFile 1040xHow To File A 1040Form 1040ez 2012How Can I Efile My State Taxes For Free2011 E File Taxes2012 Federal Tax Form 1040Turbotax Freedom EditionUnemployment Tax ReturnMyfreetaxes Com AchrI Need To File An Amended Tax Return1040ez 2010 Tax FormTax Form Amendment2011 1040a Tax FormsFree Tax Filing Federal And State1040ez Form 2014Amend Turbotax ReturnMy Freetaxes ComH&r Block Free State Tax Filing1040 Tax FormFile State Return OnlyH&r Block Online 1040xFile 2011 Tax Return OnlineIrs Gov ComFile Free State Tax Return1040x Free Software DownloadsTaxes UnemployedIrs Ez FileH R Block TaxEz TaxIncome Tax Amendment FormWww Taxact Com 2012File Taxes Online For Free2012 Federal Tax FormFree E File For State TaxesFree Tax Filing Online For MilitaryFile My 2011 Taxes For Free2012 Tax Preparation Software1040 Tax Form 2012

Taxes Unemployed

Taxes unemployed 6. Taxes unemployed   Basis of Assets Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Cost BasisReal Property Allocating the Basis Uniform Capitalization Rules Adjusted BasisIncreases to Basis Decreases to Basis Basis Other Than CostTaxable Exchanges Involuntary Conversions Nontaxable Exchanges Property Received as a Gift Property Transferred From a Spouse Inherited Property Property Distributed From a Partnership or Corporation Introduction Your basis is the amount of your investment in property for tax purposes. Taxes unemployed Use basis to figure the gain or loss on the sale, exchange, or other disposition of property. Taxes unemployed Also use basis to figure depreciation, amortization, depletion, and casualty losses. Taxes unemployed If you use property for both business or investment purposes and for personal purposes, you must allocate the basis based on the use. Taxes unemployed Only the basis allocated to the business or investment use of the property can be depreciated. Taxes unemployed Your original basis in property is adjusted (increased or decreased) by certain events. Taxes unemployed For example, if you make improvements to the property, increase your basis. Taxes unemployed If you take deductions for depreciation, or casualty losses, or claim certain credits, reduce your basis. Taxes unemployed Keep accurate records of all items that affect the basis of your assets. Taxes unemployed For information on keeping records, see chapter 1. Taxes unemployed Topics - This chapter discusses: Cost basis Adjusted basis Basis other than cost Useful Items - You may want to see: Publication 535 Business Expenses 544 Sales and Other Dispositions of Assets 551 Basis of Assets 946 How To Depreciate Property See chapter 16 for information about getting publications and forms. Taxes unemployed Cost Basis The basis of property you buy is usually its cost. Taxes unemployed Cost is the amount you pay in cash, debt obligations, other property, or services. Taxes unemployed Your cost includes amounts you pay for sales tax, freight, installation, and testing. Taxes unemployed The basis of real estate and business assets will include other items, discussed later. Taxes unemployed Basis generally does not include interest payments. Taxes unemployed However, see Carrying charges and Capitalized interest in chapter 4 of Publication 535. Taxes unemployed You also may have to capitalize (add to basis) certain other costs related to buying or producing property. Taxes unemployed Under the uniform capitalization rules, discussed later, you may have to capitalize direct costs and certain indirect costs of producing property. Taxes unemployed Loans with low or no interest. Taxes unemployed   If you buy property on a time-payment plan that charges little or no interest, the basis of your property is your stated purchase price minus the amount considered to be unstated interest. Taxes unemployed You generally have unstated interest if your interest rate is less than the applicable federal rate. Taxes unemployed See the discussion of unstated interest in Publication 537, Installment Sales. Taxes unemployed Real Property Real property, also called real estate, is land and generally anything built on, growing on, or attached to land. Taxes unemployed If you buy real property, certain fees and other expenses you pay are part of your cost basis in the property. Taxes unemployed Some of these expenses are discussed next. Taxes unemployed Lump sum purchase. Taxes unemployed   If you buy improvements, such as buildings, and the land on which they stand for a lump sum, allocate your cost basis between the land and improvements. Taxes unemployed Allocate the cost basis according to the respective fair market values (FMVs) of the land and improvements at the time of purchase. Taxes unemployed Figure the basis of each asset by multiplying the lump sum by a fraction. Taxes unemployed The numerator is the FMV of that asset and the denominator is the FMV of the whole property at the time of purchase. Taxes unemployed Fair market value (FMV). Taxes unemployed   FMV is the price at which property would change hands between a willing buyer and a willing seller, neither having to buy or sell, and both having reasonable knowledge of all necessary facts. Taxes unemployed Sales of similar property on or about the same date may help in figuring the FMV of the property. Taxes unemployed If you are not certain of the FMV of the land and improvements, you can allocate the basis according to their assessed values for real estate tax purposes. Taxes unemployed Real estate taxes. Taxes unemployed   If you pay the real estate taxes the seller owed on real property you bought, and the seller did not reimburse you, treat those taxes as part of your basis. Taxes unemployed   If you reimburse the seller for taxes the seller paid for you, you generally can deduct that amount as a tax expense. Taxes unemployed Whether or not you reimburse the seller, do not include that amount in the basis of your property. Taxes unemployed Settlement costs. Taxes unemployed   Your basis includes the settlement fees and closing costs for buying the property. Taxes unemployed See Publication 551 for a detailed list of items you can and cannot include in basis. Taxes unemployed   Do not include fees and costs for getting a loan on the property. Taxes unemployed Also, do not include amounts placed in escrow for the future payment of items such as taxes and insurance. Taxes unemployed Points. Taxes unemployed   If you pay points to get a loan (including a mortgage, second mortgage, or line-of-credit), do not add the points to the basis of the related property. Taxes unemployed You may be able to deduct the points currently or over the term of the loan. Taxes unemployed For more information about deducting points, see Points in chapter 4 of Publication 535. Taxes unemployed Assumption of a mortgage. Taxes unemployed   If you buy property and assume (or buy the property subject to) an existing mortgage, your basis includes the amount you pay for the property plus the amount you owe on the mortgage. Taxes unemployed Example. Taxes unemployed If you buy a farm for $100,000 cash and assume a mortgage of $400,000, your basis is $500,000. Taxes unemployed Constructing assets. Taxes unemployed   If you build property or have assets built for you, your expenses for this construction are part of your basis. Taxes unemployed Some of these expenses include the following costs: Land, Labor and materials, Architect's fees, Building permit charges, Payments to contractors, Payments for rental equipment, and Inspection fees. Taxes unemployed   In addition, if you use your own employees, farm materials, and equipment to build an asset, do not deduct the following expenses. Taxes unemployed You must capitalize them (include them in the asset's basis). Taxes unemployed Employee wages paid for the construction work, reduced by any employment credits allowed. Taxes unemployed Depreciation on equipment you own while it is used in the construction. Taxes unemployed Operating and maintenance costs for equipment used in the construction. Taxes unemployed The cost of business supplies and materials used in the construction. Taxes unemployed    Do not include the value of your own labor, or any other labor you did not pay for, in the basis of any property you construct. Taxes unemployed Allocating the Basis In some instances, the rules for determining basis apply to a group of assets acquired in the same transaction or to property that consists of separate items. Taxes unemployed To determine the basis of these assets or separate items, there must be an allocation of basis. Taxes unemployed Group of assets acquired. Taxes unemployed   If you buy multiple assets for a lump sum, allocate the amount you pay among the assets. Taxes unemployed Use this allocation to figure your basis for depreciation and gain or loss on a later disposition of any of these assets. Taxes unemployed You and the seller may agree in the sales contract to a specific allocation of the purchase price among the assets. Taxes unemployed If this allocation is based on the value of each asset and you and the seller have adverse tax interests, the allocation generally will be accepted. Taxes unemployed Farming business acquired. Taxes unemployed   If you buy a group of assets that makes up a farming business, there are special rules you must use to allocate the purchase price among the assets. Taxes unemployed Generally, reduce the purchase price by any cash received. Taxes unemployed Allocate the remaining purchase price to the other business assets received in proportion to (but not more than) their FMV and in a certain order. Taxes unemployed See Trade or Business Acquired under Allocating the Basis in Publication 551 for more information. Taxes unemployed Transplanted embryo. Taxes unemployed   If you buy a cow that is pregnant with a transplanted embryo, allocate to the basis of the cow the part of the purchase price equal to the FMV of the cow without the implant. Taxes unemployed Allocate the rest of the purchase price to the basis of the calf. Taxes unemployed Neither the cost allocated to the cow nor the cost allocated to the calf is deductible as a current business expense. Taxes unemployed Uniform Capitalization Rules Under the uniform capitalization rules, you must include certain direct and indirect costs in the basis of property you produce or in your inventory costs, rather than claim them as a current deduction. Taxes unemployed You recover these costs through depreciation, amortization, or cost of goods sold when you use, sell, or otherwise dispose of the property. Taxes unemployed Generally, you are subject to the uniform capitalization rules if you do any of the following: Produce real or tangible personal property, or Acquire property for resale. Taxes unemployed However, this rule does not apply to personal property if your average annual gross receipts for the 3-tax-year period ending with the year preceding the current tax year are $10 million or less. Taxes unemployed You produce property if you construct, build, install, manufacture, develop, improve, or create the property. Taxes unemployed You are not subject to the uniform capitalization rules if the property is produced for personal use. Taxes unemployed In a farming business, you produce property if you raise or grow any agricultural or horticultural commodity, including plants and animals. Taxes unemployed Plants. Taxes unemployed   A plant produced in a farming business includes the following items: A fruit, nut, or other crop-bearing tree; An ornamental tree; A vine; A bush; Sod; and The crop or yield of a plant that will have more than one crop or yield. Taxes unemployed Animals. Taxes unemployed   An animal produced in a farming business includes any stock, poultry or other bird, and fish or other sea life. Taxes unemployed The direct and indirect costs of producing plants or animals include preparatory costs and preproductive period costs. Taxes unemployed Preparatory costs include the acquisition costs of the seed, seedling, plant, or animal. Taxes unemployed For plants, preproductive period costs include the costs of items such as irrigation, pruning, frost protection, spraying, and harvesting. Taxes unemployed For animals, preproductive period costs include the costs of items such as feed, maintaining pasture or pen areas, breeding, veterinary services, and bedding. Taxes unemployed Exceptions. Taxes unemployed   In a farming business, the uniform capitalization rules do not apply to: Any animal, Any plant with a preproductive period of 2 years or less, or Any costs of replanting certain plants lost or damaged due to casualty. Taxes unemployed   Exceptions (1) and (2) do not apply to a corporation, partnership, or tax shelter required to use an accrual method of accounting. Taxes unemployed See Accrual Method Required under Accounting Methods in chapter 2. Taxes unemployed   In addition, you can elect not to use the uniform capitalization rules for plants with a preproductive period of more than 2 years. Taxes unemployed If you make this election, special rules apply. Taxes unemployed This election cannot be made by a corporation, partnership, or tax shelter required to use an accrual method of accounting. Taxes unemployed This election also does not apply to any costs incurred for the planting, cultivation, maintenance, or development of any citrus or almond grove (or any part thereof) within the first 4 years the trees were planted. Taxes unemployed    If you elect not to use the uniform capitalization rules, you must use the alternative depreciation system for all property used in any of your farming businesses and placed in service in any tax year during which the election is in effect. Taxes unemployed See chapter 7, for additional information on depreciation. Taxes unemployed Example. Taxes unemployed You grow trees that have a preproductive period of more than 2 years. Taxes unemployed The trees produce an annual crop. Taxes unemployed You are an individual and the uniform capitalization rules apply to your farming business. Taxes unemployed You must capitalize the direct costs and an allocable part of indirect costs incurred due to the production of the trees. Taxes unemployed You are not required to capitalize the costs of producing the annual crop because its preproductive period is 2 years or less. Taxes unemployed Preproductive period of more than 2 years. Taxes unemployed   The preproductive period of plants grown in commercial quantities in the United States is based on their nationwide weighted average preproductive period. Taxes unemployed Plants producing the crops or yields shown in Table 6-1 have a nationwide weighted average preproductive period of more than 2 years. Taxes unemployed Other plants (not shown in Table 6-1) may also have a nationwide weighted average preproductive period of more than 2 years. Taxes unemployed More information. Taxes unemployed   For more information on the uniform capitalization rules that apply to property produced in a farming business, see Regulations section 1. Taxes unemployed 263A-4. Taxes unemployed Table 6-1. Taxes unemployed Plants With a Preproductive Period of More Than 2 Years Plants producing the following crops or yields have a nationwide weighted average preproductive period of more than 2 years. Taxes unemployed Almonds Apples Apricots Avocados Blueberries Cherries Chestnuts Coffee beans Currants Dates Figs Grapefruit Grapes Guavas Kiwifruit Kumquats Lemons Limes Macadamia nuts Mangoes Nectarines Olives Oranges Peaches Pears Pecans Persimmons Pistachio nuts Plums Pomegranates Prunes Tangelos Tangerines Tangors Walnuts Adjusted Basis Before figuring gain or loss on a sale, exchange, or other disposition of property or figuring allowable depreciation, depletion, or amortization, you must usually make certain adjustments to the cost basis or basis other than cost (discussed later) of the property. Taxes unemployed The adjustments to the original basis are increases or decreases to the cost basis or other basis which result in the adjusted basis of the property. Taxes unemployed Increases to Basis Increase the basis of any property by all items properly added to a capital account. Taxes unemployed These include the cost of any improvements having a useful life of more than 1 year. Taxes unemployed The following costs increase the basis of property. Taxes unemployed The cost of extending utility service lines to property. Taxes unemployed Legal fees, such as the cost of defending and perfecting title. Taxes unemployed Legal fees for seeking a decrease in an assessment levied against property to pay for local improvements. Taxes unemployed Assessments for items such as paving roads and building ditches that increase the value of the property assessed. Taxes unemployed Do not deduct these expenses as taxes. Taxes unemployed However, you can deduct as taxes amounts assessed for maintenance or repairs, or for meeting interest charges related to the improvements. Taxes unemployed If you make additions or improvements to business property, depreciate the basis of each addition or improvement as separate depreciable property using the rules that would apply to the original property if you had placed it in service at the same time you placed the addition or improvement in service. Taxes unemployed See chapter 7. Taxes unemployed Deducting vs. Taxes unemployed capitalizing costs. Taxes unemployed   Do not add to your basis costs you can deduct as current expenses. Taxes unemployed For example, amounts paid for incidental repairs or maintenance are deductible as business expenses and are not added to basis. Taxes unemployed However, you can elect either to deduct or to capitalize certain other costs. Taxes unemployed See chapter 7 in Publication 535. Taxes unemployed Decreases to Basis The following are some items that reduce the basis of property. Taxes unemployed Section 179 deduction. Taxes unemployed Deductions previously allowed or allowable for amortization, depreciation, and depletion. Taxes unemployed Alternative motor vehicle credit. Taxes unemployed See Form 8910. Taxes unemployed Alternative fuel vehicle refueling property credit. Taxes unemployed See Form 8911. Taxes unemployed Residential energy efficient property credits. Taxes unemployed See Form 5695. Taxes unemployed Investment credit (part or all) taken. Taxes unemployed Casualty and theft losses and insurance reimbursements. Taxes unemployed Payments you receive for granting an easement. Taxes unemployed Exclusion from income of subsidies for energy conservation measures. Taxes unemployed Certain canceled debt excluded from income. Taxes unemployed Rebates from a manufacturer or seller. Taxes unemployed Patronage dividends received from a cooperative association as a result of a purchase of property. Taxes unemployed See Patronage Dividends in chapter 3. Taxes unemployed Gas-guzzler tax. Taxes unemployed See Form 6197. Taxes unemployed Some of these items are discussed next. Taxes unemployed For a more detailed list of items that decrease basis, see section 1016 of the Internal Revenue Code and Publication 551. Taxes unemployed Depreciation and section 179 deduction. Taxes unemployed   The adjustments you must make to the basis of the property if you take the section 179 deduction or depreciate the property are explained next. Taxes unemployed For more information on these deductions, see chapter 7. Taxes unemployed Section 179 deduction. Taxes unemployed   If you take the section 179 expense deduction for all or part of the cost of qualifying business property, decrease the basis of the property by the deduction. Taxes unemployed Depreciation. Taxes unemployed   Decrease the basis of property by the depreciation you deducted or could have deducted on your tax returns under the method of depreciation you chose. Taxes unemployed If you took less depreciation than you could have under the method chosen, decrease the basis by the amount you could have taken under that method. Taxes unemployed If you did not take a depreciation deduction, reduce the basis by the full amount of the depreciation you could have taken. Taxes unemployed   If you deducted more depreciation than you should have, decrease your basis by the amount you should have deducted plus the part of the excess depreciation you deducted that actually reduced your tax liability for any year. Taxes unemployed   See chapter 7 for information on figuring the depreciation you should have claimed. Taxes unemployed   In decreasing your basis for depreciation, take into account the amount deducted on your tax returns as depreciation and any depreciation you must capitalize under the uniform capitalization rules. Taxes unemployed Casualty and theft losses. Taxes unemployed   If you have a casualty or theft loss, decrease the basis of the property by any insurance or other reimbursement. Taxes unemployed Also, decrease it by any deductible loss not covered by insurance. Taxes unemployed See chapter 11 for information about figuring your casualty or theft loss. Taxes unemployed   You must increase your basis in the property by the amount you spend on clean-up costs (such as debris removal) and repairs that restore the property to its pre-casualty condition. Taxes unemployed To make this determination, compare the repaired property to the property before the casualty. Taxes unemployed Easements. Taxes unemployed   The amount you receive for granting an easement is usually considered to be proceeds from the sale of an interest in the real property. Taxes unemployed It reduces the basis of the affected part of the property. Taxes unemployed If the amount received is more than the basis of the part of the property affected by the easement, reduce your basis in that part to zero and treat the excess as a recognized gain. Taxes unemployed See Easements and rights-of-way in chapter 3. Taxes unemployed Exclusion from income of subsidies for energy conservation measures. Taxes unemployed   You can exclude from gross income any subsidy you received from a public utility company for the purchase or installation of an energy conservation measure for a dwelling unit. Taxes unemployed Reduce the basis of the property by the excluded amount. Taxes unemployed Canceled debt excluded from income. Taxes unemployed   If a debt you owe is canceled or forgiven, other than as a gift or bequest, you generally must include the canceled amount in your gross income for tax purposes. Taxes unemployed A debt includes any indebtedness for which you are liable or which attaches to property you hold. Taxes unemployed   You can exclude your canceled debt from income if the debt is any of the following. Taxes unemployed Debt canceled in a bankruptcy case or when you are insolvent. Taxes unemployed Qualified farm debt. Taxes unemployed Qualified real property business debt (provided you are not a C corporation). Taxes unemployed Qualified principal residence indebtedness. Taxes unemployed Discharge of certain indebtedness of a qualified individual because of Midwestern disasters. Taxes unemployed If you exclude canceled debt described in (1) or (2), you may have to reduce the basis of your depreciable and nondepreciable property. Taxes unemployed If you exclude canceled debt described in (3), you must only reduce the basis of your depreciable property by the excluded amount. Taxes unemployed   For more information about canceled debt in a bankruptcy case, see Publication 908, Bankruptcy Tax Guide. Taxes unemployed For more information about insolvency and canceled debt that is qualified farm debt or qualified principal residence indebtedness, see chapter 3. Taxes unemployed For more information about qualified real property business debt, see Publication 334, Tax Guide for Small Business. Taxes unemployed For more information about canceled debt in Midwestern disaster areas, see Publication 4492-B, Information for Affected Taxpayers in the Midwestern Disaster Areas. Taxes unemployed Basis Other Than Cost There are times when you cannot use cost as basis. Taxes unemployed In these situations, the fair market value or the adjusted basis of property may be used. Taxes unemployed Examples are discussed next. Taxes unemployed Property changed from personal to business or rental use. Taxes unemployed   When you hold property for personal use and then change it to business use or use it to produce rent, you must figure its basis for depreciation. Taxes unemployed An example of changing property from personal to business use would be changing the use of your pickup truck that you originally purchased for your personal use to use in your farming business. Taxes unemployed   The basis for depreciation is the lesser of: The FMV of the property on the date of the change, or Your adjusted basis on the date of the change. Taxes unemployed   If you later sell or dispose of this property, the basis you use will depend on whether you are figuring a gain or loss. Taxes unemployed The basis for figuring a gain is your adjusted basis in the property when you sell the property. Taxes unemployed Figure the basis for a loss starting with the smaller of your adjusted basis or the FMV of the property at the time of the change to business or rental use. Taxes unemployed Then make adjustments (increases and decreases) for the period after the change in the property's use, as discussed earlier under Adjusted Basis . Taxes unemployed Property received for services. Taxes unemployed   If you receive property for services, include the property's FMV in income. Taxes unemployed The amount you include in income becomes your basis. Taxes unemployed If the services were performed for a price agreed on beforehand, it will be accepted as the FMV of the property if there is no evidence to the contrary. Taxes unemployed Example. Taxes unemployed George Smith is an accountant and also operates a farming business. Taxes unemployed George agreed to do some accounting work for his neighbor in exchange for a dairy cow. Taxes unemployed The accounting work and the cow are each worth $1,500. Taxes unemployed George must include $1,500 in income for his accounting services. Taxes unemployed George's basis in the cow is $1,500. Taxes unemployed Taxable Exchanges A taxable exchange is one in which the gain is taxable, or the loss is deductible. Taxes unemployed A taxable gain or deductible loss also is known as a recognized gain or loss. Taxes unemployed A taxable exchange occurs when you receive cash or get property that is not similar or related in use to the property exchanged. Taxes unemployed If you receive property in exchange for other property in a taxable exchange, the basis of the property you receive is usually its FMV at the time of the exchange. Taxes unemployed Example. Taxes unemployed You trade a tract of farmland with an adjusted basis of $2,000 for a tractor that has an FMV of $6,000. Taxes unemployed You must report a taxable gain of $4,000 for the land. Taxes unemployed The tractor has a basis of $6,000. Taxes unemployed Involuntary Conversions If you receive property as a result of an involuntary conversion, such as a casualty, theft, or condemnation, figure the basis of the replacement property you receive using the basis of the converted property. Taxes unemployed Similar or related property. Taxes unemployed   If the replacement property is similar or related in service or use to the converted property, the replacement property's basis is the same as the old property's basis on the date of the conversion. Taxes unemployed However, make the following adjustments. Taxes unemployed Decrease the basis by the following amounts. Taxes unemployed Any loss you recognize on the involuntary conversion. Taxes unemployed Any money you receive that you do not spend on similar property. Taxes unemployed Increase the basis by the following amounts. Taxes unemployed Any gain you recognize on the involuntary conversion. Taxes unemployed Any cost of acquiring the replacement property. Taxes unemployed Money or property not similar or related. Taxes unemployed   If you receive money or property not similar or related in service or use to the converted property and you buy replacement property similar or related in service or use to the converted property, the basis of the replacement property is its cost decreased by the gain not recognized on the involuntary conversion. Taxes unemployed Allocating the basis. Taxes unemployed   If you buy more than one piece of replacement property, allocate your basis among the properties based on their respective costs. Taxes unemployed Basis for depreciation. Taxes unemployed   Special rules apply in determining and depreciating the basis of MACRS property acquired in an involuntary conversion. Taxes unemployed For information, see Figuring the Deduction for Property Acquired in a Nontaxable Exchange under Figuring Depreciation Under MACRS in chapter 7. Taxes unemployed For more information about involuntary conversions, see chapter 11. Taxes unemployed Nontaxable Exchanges A nontaxable exchange is an exchange in which you are not taxed on any gain and you cannot deduct any loss. Taxes unemployed A nontaxable gain or loss also is known as an unrecognized gain or loss. Taxes unemployed If you receive property in a nontaxable exchange, its basis is usually the same as the basis of the property you transferred. Taxes unemployed Like-Kind Exchanges The exchange of property for the same kind of property is the most common type of nontaxable exchange. Taxes unemployed For an exchange to qualify as a like-kind exchange, you must hold for business or investment purposes both the property you transfer and the property you receive. Taxes unemployed There must also be an exchange of like-kind property. Taxes unemployed For more information, see Like-Kind Exchanges in  chapter 8. Taxes unemployed The basis of the property you receive generally is the same as the adjusted basis of the property you gave up. Taxes unemployed Example 1. Taxes unemployed You traded a truck you used in your farming business for a new smaller truck to use in farming. Taxes unemployed The adjusted basis of the old truck was $10,000. Taxes unemployed The FMV of the new truck is $30,000. Taxes unemployed Because this is a nontaxable exchange, you do not recognize any gain, and your basis in the new truck is $10,000, the same as the adjusted basis of the truck you traded. Taxes unemployed Example 2. Taxes unemployed You trade a field cultivator (adjusted basis of $8,000) for a planter (FMV of $9,000). Taxes unemployed You use both the field cultivator and the planter in your farming business. Taxes unemployed The basis of the planter you receive is $8,000, the same as the field cultivator traded Exchange expenses. Taxes unemployed   Exchange expenses generally are the closing costs that you pay. Taxes unemployed They include such items as brokerage commissions, attorney fees, and deed preparation fees. Taxes unemployed Add them to the basis of the like-kind property you receive. Taxes unemployed Property plus cash. Taxes unemployed   If you trade property in a like-kind exchange and also pay money, the basis of the property you receive is the adjusted basis of the property you gave up plus the money you paid. Taxes unemployed Example. Taxes unemployed You trade in a truck (adjusted basis of $3,000) for another truck (FMV of $7,500) and pay $4,000. Taxes unemployed Your basis in the new truck is $7,000 (the $3,000 adjusted basis of the old truck plus the $4,000 cash). Taxes unemployed Special rules for related persons. Taxes unemployed   If a like-kind exchange takes place directly or indirectly between related persons and either party disposes of the property within 2 years after the exchange, the exchange no longer qualifies for like-kind exchange treatment. Taxes unemployed Each person must report any gain or loss not recognized on the original exchange unless the loss is not deductible under the related party rules. Taxes unemployed Each person reports it on the tax return filed for the year in which the later disposition occurred. Taxes unemployed If this rule applies, the basis of the property received in the original exchange will be its FMV. Taxes unemployed For more information, see chapter 8. Taxes unemployed Exchange of business property. Taxes unemployed   Exchanging the property of one business for the property of another business generally is a multiple property exchange. Taxes unemployed For information on figuring basis, see Multiple Property Exchanges in chapter 1 of Publication 544. Taxes unemployed Basis for depreciation. Taxes unemployed   Special rules apply in determining and depreciating the basis of MACRS property acquired in a like-kind transaction. Taxes unemployed For information, see Figuring the Deduction for Property Acquired in a Nontaxable Exchange under Figuring Depreciation Under MACRS in chapter 7. Taxes unemployed Partially Nontaxable Exchanges A partially nontaxable exchange is an exchange in which you receive unlike property or money in addition to like-kind property. Taxes unemployed The basis of the property you receive is the same as the adjusted basis of the property you gave up with the following adjustments. Taxes unemployed Decrease the basis by the following amounts. Taxes unemployed Any money you receive. Taxes unemployed Any loss you recognize on the exchange. Taxes unemployed Increase the basis by the following amounts. Taxes unemployed Any additional costs you incur. Taxes unemployed Any gain you recognize on the exchange. Taxes unemployed If the other party to the exchange assumes your liabilities, treat the debt assumption as money you received in the exchange. Taxes unemployed Example 1. Taxes unemployed You trade farmland (basis of $100,000) for another tract of farmland (FMV of $110,000) and $30,000 cash. Taxes unemployed You realize a gain of $40,000. Taxes unemployed This is the FMV of the land received plus the cash minus the basis of the land you traded ($110,000 + $30,000 − $100,000). Taxes unemployed Include your gain in income (recognize gain) only to the extent of the cash received. Taxes unemployed Your basis in the land you received is figured as follows. Taxes unemployed Basis of land traded $100,000 Minus: Cash received (adjustment 1(a)) − 30,000   $70,000 Plus: Gain recognized (adjustment 2(b)) + 30,000 Basis of land received $100,000 Example 2. Taxes unemployed You trade a truck (adjusted basis of $22,750) for another truck (FMV of $20,000) and $10,000 cash. Taxes unemployed You realize a gain of $7,250. Taxes unemployed This is the FMV of the truck received plus the cash minus the adjusted basis of the truck you traded ($20,000 + $10,000 − $22,750). Taxes unemployed You include all the gain in your income (recognize gain) because the gain is less than the cash you received. Taxes unemployed Your basis in the truck you received is figured as follows. Taxes unemployed Adjusted basis of truck traded $22,750 Minus: Cash received (adjustment 1(a)) −10,000   $12,750 Plus: Gain recognized (adjustment 2(b)) + 7,250 Basis of truck received $20,000 Allocation of basis. Taxes unemployed   If you receive like-kind and unlike properties in the exchange, allocate the basis first to the unlike property, other than money, up to its FMV on the date of the exchange. Taxes unemployed The rest is the basis of the like-kind property. Taxes unemployed Example. Taxes unemployed You traded a tractor with an adjusted basis of $15,000 for another tractor that had an FMV of $12,500. Taxes unemployed You also received $1,000 cash and a truck that had an FMV of $3,000. Taxes unemployed The truck is unlike property. Taxes unemployed You realized a gain of $1,500. Taxes unemployed This is the FMV of the tractor received plus the FMV of the truck received plus the cash minus the adjusted basis of the tractor you traded ($12,500 + $3,000 + $1,000 − $15,000). Taxes unemployed You include in income (recognize) all $1,500 of the gain because it is less than the FMV of the unlike property plus the cash received. Taxes unemployed Your basis in the properties you received is figured as follows. Taxes unemployed Adjusted basis of old tractor $15,000 Minus: Cash received (adjustment 1(a)) − 1,000   $14,000 Plus: Gain recognized (adjustment 2(b)) + 1,500 Total basis of properties received $15,500 Allocate the total basis of $15,500 first to the unlike property—the truck ($3,000). Taxes unemployed This is the truck's FMV. Taxes unemployed The rest ($12,500) is the basis of the tractor. Taxes unemployed Sale and Purchase If you sell property and buy similar property in two mutually dependent transactions, you may have to treat the sale and purchase as a single nontaxable exchange. Taxes unemployed Example. Taxes unemployed You used a tractor on your farm for 3 years. Taxes unemployed Its adjusted basis is $22,000 and its FMV is $40,000. Taxes unemployed You are interested in a new tractor, which sells for $60,000. Taxes unemployed Ordinarily, you would trade your old tractor for the new one and pay the dealer $20,000. Taxes unemployed Your basis for depreciating the new tractor would then be $42,000 ($20,000 + $22,000, the adjusted basis of your old tractor). Taxes unemployed However, you want a higher basis for depreciating the new tractor, so you agree to pay the dealer $60,000 for the new tractor if he will pay you $40,000 for your old tractor. Taxes unemployed Because the two transactions are dependent on each other, you are treated as having exchanged your old tractor for the new one and paid $20,000 ($60,000 − $40,000). Taxes unemployed Your basis for depreciating the new tractor is $42,000, the same as if you traded the old tractor. Taxes unemployed Property Received as a Gift To figure the basis of property you receive as a gift, you must know its adjusted basis (defined earlier) to the donor just before it was given to you. Taxes unemployed You also must know its FMV at the time it was given to you and any gift tax paid on it. Taxes unemployed FMV equal to or greater than donor's adjusted basis. Taxes unemployed   If the FMV of the property is equal to or greater than the donor's adjusted basis, your basis is the donor's adjusted basis when you received the gift. Taxes unemployed Increase your basis by all or part of any gift tax paid, depending on the date of the gift. Taxes unemployed   Also, for figuring gain or loss from a sale or other disposition of the property, or for figuring depreciation, depletion, or amortization deductions on business property, you must increase or decrease your basis (the donor's adjusted basis) by any required adjustments to basis while you held the property. Taxes unemployed See Adjusted Basis , earlier. Taxes unemployed   If you received a gift during the tax year, increase your basis in the gift (the donor's adjusted basis) by the part of the gift tax paid on it due to the net increase in value of the gift. Taxes unemployed Figure the increase by multiplying the gift tax paid by the following fraction. Taxes unemployed Net increase in value of the gift Amount of the gift   The net increase in value of the gift is the FMV of the gift minus the donor's adjusted basis. Taxes unemployed The amount of the gift is its value for gift tax purposes after reduction by any annual exclusion and marital or charitable deduction that applies to the gift. Taxes unemployed Example. Taxes unemployed In 2013, you received a gift of property from your mother that had an FMV of $50,000. Taxes unemployed Her adjusted basis was $20,000. Taxes unemployed The amount of the gift for gift tax purposes was $36,000 ($50,000 minus the $14,000 annual exclusion). Taxes unemployed She paid a gift tax of $7,320. Taxes unemployed Your basis, $26,076, is figured as follows. Taxes unemployed Fair market value $50,000 Minus: Adjusted basis −20,000 Net increase in value $30,000 Gift tax paid $7,320 Multiplied by ($30,000 ÷ $36,000) × . Taxes unemployed 83 Gift tax due to net increase in value $6,076 Adjusted basis of property to your mother +20,000 Your basis in the property $26,076 Note. Taxes unemployed If you received a gift before 1977, your basis in the gift (the donor's adjusted basis) includes any gift tax paid on it. Taxes unemployed However, your basis cannot exceed the FMV of the gift when it was given to you. Taxes unemployed FMV less than donor's adjusted basis. Taxes unemployed   If the FMV of the property at the time of the gift is less than the donor's adjusted basis, your basis depends on whether you have a gain or a loss when you dispose of the property. Taxes unemployed Your basis for figuring gain is the donor's adjusted basis plus or minus any required adjustments to basis while you held the property. Taxes unemployed Your basis for figuring loss is its FMV when you received the gift plus or minus any required adjustments to basis while you held the property. Taxes unemployed (See Adjusted Basis , earlier. Taxes unemployed )   If you use the donor's adjusted basis for figuring a gain and get a loss, and then use the FMV for figuring a loss and get a gain, you have neither gain nor loss on the sale or other disposition of the property. Taxes unemployed Example. Taxes unemployed You received farmland as a gift from your parents when they retired from farming. Taxes unemployed At the time of the gift, the land had an FMV of $80,000. Taxes unemployed Your parents' adjusted basis was $100,000. Taxes unemployed After you received the land, no events occurred that would increase or decrease your basis. Taxes unemployed If you sell the land for $120,000, you will have a $20,000 gain because you must use the donor's adjusted basis at the time of the gift ($100,000) as your basis to figure a gain. Taxes unemployed If you sell the land for $70,000, you will have a $10,000 loss because you must use the FMV at the time of the gift ($80,000) as your basis to figure a loss. Taxes unemployed If the sales price is between $80,000 and $100,000, you have neither gain nor loss. Taxes unemployed For instance, if the sales price was $90,000 and you tried to figure a gain using the donor's adjusted basis ($100,000), you would get a $10,000 loss. Taxes unemployed If you then tried to figure a loss using the FMV ($80,000), you would get a $10,000 gain. Taxes unemployed Business property. Taxes unemployed   If you hold the gift as business property, your basis for figuring any depreciation, depletion, or amortization deductions is the same as the donor's adjusted basis plus or minus any required adjustments to basis while you hold the property. Taxes unemployed Property Transferred From a Spouse The basis of property transferred to you or transferred in trust for your benefit by your spouse is the same as your spouse's adjusted basis. Taxes unemployed The same rule applies to a transfer by your former spouse if the transfer is incident to divorce. Taxes unemployed However, for property transferred in trust, adjust your basis for any gain recognized by your spouse or former spouse if the liabilities assumed plus the liabilities to which the property is subject are more than the adjusted basis of the property transferred. Taxes unemployed The transferor must give you the records needed to determine the adjusted basis and holding period of the property as of the date of the transfer. Taxes unemployed For more information, see Property Settlements in Publication 504, Divorced or Separated Individuals. Taxes unemployed Inherited Property Your basis in property you inherited from a decedent, who died before January 1, 2010, or after December 31, 2010, is generally one of the following: The FMV of the property at the date of the decedent's death. Taxes unemployed If a federal estate return is filed, you can use its appraised value. Taxes unemployed The FMV on the alternate valuation date, if the personal representative for the estate elects to use alternate valuation. Taxes unemployed For information on the alternate valuation, see the Instructions for Form 706. Taxes unemployed The decedent's adjusted basis in land to the extent of the value that is excluded from the decedent's taxable estate as a qualified conservation easement. Taxes unemployed If a federal estate tax return does not have to be filed, your basis in the inherited property is its appraised value at the date of death for state inheritance or transmission taxes. Taxes unemployed Special-use valuation method. Taxes unemployed   Under certain conditions, when a person dies, the executor or personal representative of that person's estate may elect to value qualified real property at other than its FMV. Taxes unemployed If so, the executor or personal representative values the qualified real property based on its use as a farm or other closely held business. Taxes unemployed If the executor or personal representative elects this method of valuation for estate tax purposes, this value is the basis of the property for the qualified heirs. Taxes unemployed The qualified heirs should be able to get the necessary value from the executor or personal representative of the estate. Taxes unemployed   If you are a qualified heir who received special-use valuation property, increase your basis by any gain recognized by the estate or trust because of post-death appreciation. Taxes unemployed Post-death appreciation is the property's FMV on the date of distribution minus the property's FMV either on the date of the individual's death or on the alternate valuation date. Taxes unemployed Figure all FMVs without regard to the special-use valuation. Taxes unemployed   You may be liable for an additional estate tax if, within 10 years after the death of the decedent, you transfer the property or the property stops being used as a farm. Taxes unemployed This tax does not apply if you dispose of the property in a like-kind exchange or in an involuntary conversion in which all of the proceeds are reinvested in qualified replacement property. Taxes unemployed The tax also does not apply if you transfer the property to a member of your family and certain requirements are met. Taxes unemployed   You can elect to increase your basis in special-use valuation property if it becomes subject to the additional estate tax. Taxes unemployed To increase your basis, you must make an irrevocable election and pay interest on the additional estate tax figured from the date 9 months after the decedent's death until the date of payment of the additional estate tax. Taxes unemployed If you meet these requirements, increase your basis in the property to its FMV on the date of the decedent's death or the alternate valuation date. Taxes unemployed The increase in your basis is considered to have occurred immediately before the event that resulted in the additional estate tax. Taxes unemployed   You make the election by filing, with Form 706-A, United States Additional Estate Tax Return, a statement that: Contains your (and the estate's) name, address, and taxpayer identification number; Identifies the election as an election under section 1016(c) of the Internal Revenue Code; Specifies the property for which you are making the election; and Provides any additional information required by the Form 706-A instructions. Taxes unemployed   For more information, see Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, Form 706-A, and the related instructions. Taxes unemployed Property inherited from a decedent who died in 2010. Taxes unemployed   If you inherited property from a decedent who died in 2010, different rules may apply. Taxes unemployed See Publication 4895, Tax Treatment of Property Acquired From a Decendent Dying in 2010, for details. Taxes unemployed Property Distributed From a Partnership or Corporation The following rules apply to determine a partner's basis and a shareholder's basis in property distributed respectively from a partnership to the partner with respect to the partner's interest in the partnership and from a corporation to the shareholder with respect to the shareholder's ownership of stock in the corporation. Taxes unemployed Partner's basis. Taxes unemployed   Unless there is a complete liquidation of a partner's interest, the basis of property (other than money) distributed by a partnership to the partner is its adjusted basis to the partnership immediately before the distribution. Taxes unemployed However, the basis of the property to the partner cannot be more than the adjusted basis of his or her interest in the partnership reduced by any money received in the same transaction. Taxes unemployed For more information, see Partner's Basis for Distributed Property in Publication 541, Partnerships. Taxes unemployed Shareholder's basis. Taxes unemployed   The basis of property distributed by a corporation to a shareholder is its fair market value. Taxes unemployed For more information about corporate distributions, see Distributions to Shareholders in Publication 542, Corporations. Taxes unemployed Prev  Up  Next   Home   More Online Publications
Print - Click this link to Print this page

Contact My Local Office in Massachusetts

Face-to-face Tax Help

IRS Taxpayer Assistance Centers (TACs) are your source for personal tax help when you believe your tax issue can only be handled face-to-face. No appointment is necessary.

Keep in mind, many questions can be resolved online without waiting in line. Through IRS.gov you can:
• Set up a payment plan.
• Get a transcript of your tax return.
• Make a payment.
• Check on your refund.
• Find answers to many of your tax questions.

We are now referring all requests for tax return preparation services to other available resources. You can take advantage of free tax preparation through Free File, Free File Fillable Forms or through a volunteer site in your community. To find the nearest volunteer site location or to get more information about Free File, go to the top of the page and enter “Free Tax Help” in the Search box.

If you have a tax account issues and feel that it requires talking with someone face-to-face, visit your local TAC.

Caution:  Many of our offices are located in Federal Office Buildings. These buildings may not allow visitors to bring in cell phones with camera capabilities.

Multilingual assistance is available in every office. Hours of operation are subject to change.

Before visiting your local office click on "Services Provided" in the chart below to see what services are available. Services are limited and not all services are available at every TAC office and may vary from site to site. You can get these services on a walk-in basis.

 City Street Address  Days/Hours of Service  Telephone* 
Boston  JFK Federal Building
15 New Sudbury St.
Boston, MA  02203 

Monday-Friday - 8:30 a.m.- 4:30 p.m.


Services Provided

(617) 316-2850 
Brockton  120 Liberty St.
Brockton, MA 02301 

Monday - Friday - 8:30 a.m.- 4:30 p.m.
**(Closed for lunch 1:00 p.m. – 2:00 p.m. from 1/2 - 4/15)** 
 

Services Provided

(508) 586-4671 
Fitchburg  881 Main St.
Fitchburg, MA 01420 

Monday-Friday - 8:30 a.m.- 4:30 p.m. 
(Closed for lunch 1:00 p.m. - 2:00 p.m.)

 

Services Provided

(978) 342-0016
Hyannis  75 Perseverance Way
Hyannis, MA 02601 

Monday - Friday - 8:30 a.m.- 4:30 p.m.
(Closed for lunch 1:00 p.m. - 2:00 p.m.)

 

Services Provided

(508) 775-0029 
Pittsfield  78 Center St.
Pittsfield, MA 01201 

Monday and Tuesday - 8:30 a.m.- 4:30 p.m. 
(Closed for lunch 12:00 noon - 1:00 p.m.)

 

Services Provided

(413) 499-1573 
Springfield  1550 Main St.
Springfield, MA 01103 

Monday-Friday - 8:30 a.m.-4:30 p.m.
(Closed for lunch from 12:00 noon - 1:00 p.m.)
 

Services Provided

(413) 788-0284 
Stoneham  1 Montvale Ave.
Stoneham, MA 02180 

Monday-Friday - 8:30 a.m.- 4:30 p.m.
(Closed for lunch 1:00 p.m. - 2:00 p.m.)

 

Services Provided

(781) 835-4350 
Worcester  120 Front St.
Worcester, MA 01608 

Monday-Friday - 8:30 a.m.- 4:30 p.m.

 

 Services Provided

(508) 793-8227 

* Note: The phone numbers in the chart above are not toll-free for all locations. When you call, you will reach a recorded business message with information about office hours, locations and services provided in that office. If face-to-face assistance is not a priority for you, you may also get help with IRS letters or resolve tax account issues by phone, toll free at 1-800-829-1040 (individuals) or 1-800-829-4933 (businesses).

For information on where to file your tax return please see Where to File Addresses.

The Taxpayer Advocate Service: Call (617) 316-2690 in Boston or 1-877-777-4778 elsewhere, or see Publication 1546, The Taxpayer Advocate Service of the IRS. For further information, see Tax Topic 104.

Partnerships

IRS and organizations all over the country are partnering to assist taxpayers. Through these partnerships, organizations are also achieving their own goals. These mutually beneficial partnerships are strengthening outreach efforts and bringing education and assistance to millions.

For more information about these programs for individuals and families, contact the Stakeholder Partnerships, Education and Communication Office at:

Internal Revenue Service
25 New Sudbury St. Stop 20826
Boston, MA 02203

For more information about these programs for businesses, your local Stakeholder Liaison office establishes relationships with organizations representing small business and self-employed taxpayers. They provide information about the policies, practices and procedures the IRS uses to ensure compliance with the tax laws. To establish a relationship with us, use this list to find a contact in your state:

Stakeholder Liaison (SL) Phone Numbers for Organizations Representing Small Businesses and Self-employed Taxpayers.

Page Last Reviewed or Updated: 28-Mar-2014

The Taxes Unemployed

Taxes unemployed 1. Taxes unemployed   Filing Information Table of Contents Topics - This chapter discusses: Useful Items - You may want to see: Filing RequirementsWhen To File and Pay Foreign Currency Does My Return Have To Be On Paper? Where To File Nonresident Alien Spouse Treated as a ResidentSocial Security Number (SSN) How To Make the Choice Suspending the Choice Ending the Choice Estimated Tax Other Forms You May Have To File Topics - This chapter discusses: Whether you have to file a return, When to file your return and pay any tax due, How to treat foreign currency, How to file electronically, Where to file your return, When you can treat your nonresident alien spouse as a resident, and When you may have to make estimated tax payments. Taxes unemployed Useful Items - You may want to see: Publication 3 Armed Forces' Tax Guide 501 Exemptions, Standard Deduction, and Filing Information 505 Tax Withholding and Estimated Tax 519 U. Taxes unemployed S. Taxes unemployed Tax Guide for Aliens 970 Tax Benefits for Education Form (and Instructions) 1040-ES Estimated Tax for Individuals 1040X Amended U. Taxes unemployed S. Taxes unemployed Individual Income Tax Return 2350 Application for Extension of Time To File U. Taxes unemployed S. Taxes unemployed Income Tax Return 2555 Foreign Earned Income 2555-EZ Foreign Earned Income Exclusion 4868 Application for Automatic Extension of Time To File U. Taxes unemployed S. Taxes unemployed Individual Income Tax Return 8822 Change of Address See chapter 7 for information about getting these publications and forms. Taxes unemployed Filing Requirements If you are a U. Taxes unemployed S. Taxes unemployed citizen or resident alien, the rules for filing income, estate, and gift tax returns and for paying estimated tax are generally the same whether you are in the United States or abroad. Taxes unemployed Your income, filing status, and age generally determine whether you must file an income tax return. Taxes unemployed Generally, you must file a return for 2013 if your gross income from worldwide sources is at least the amount shown for your filing status in the following table. Taxes unemployed Filing Status*   Amount Single $10,000 65 or older $11,500 Head of household $12,850 65 or older $14,350 Qualifying widow(er) $16,100 65 or older $17,300 Married filing jointly $20,000 Not living with spouse at end of year $3,900 One spouse 65 or older $21,200 Both spouses 65 or older $22,400 Married filing separately $3,900 *If you are the dependent of another taxpayer, see the instructions for Form 1040 for more information on whether you must file a return. Taxes unemployed Gross income. Taxes unemployed   This includes all income you receive in the form of money, goods, property, and services that is not exempt from tax. Taxes unemployed   For purposes of determining whether you must file a return, gross income includes any income that you can exclude as foreign earned income or as a foreign housing amount. Taxes unemployed If you are self-employed, your gross income includes the amount on Part I, line 7 of Schedule C (Form 1040), Profit or Loss From Business, or line 1 of Schedule C-EZ (Form 1040), Net Profit From Business. Taxes unemployed Self-employed individuals. Taxes unemployed   If your net earnings from self-employment are $400 or more, you must file a return even if your gross income is below the amount listed for your filing status in the table shown earlier. Taxes unemployed Net earnings from self-employment are defined in Publication 334, Tax Guide for Small Business. Taxes unemployed 65 or older. Taxes unemployed   You are considered to be age 65 on the day before your 65th birthday. Taxes unemployed For example, if your 65th birthday is on January 1, 2014, you are considered 65 for 2013. Taxes unemployed Residents of U. Taxes unemployed S. Taxes unemployed possessions. Taxes unemployed   If you are (or were) a bona fide resident of a U. Taxes unemployed S. Taxes unemployed possession, you may be required to file Form 8898, Statement for Individuals Who Begin or End Bona Fide Residence in a U. Taxes unemployed S. Taxes unemployed Possession. Taxes unemployed See the instructions for the form for more information. Taxes unemployed When To File and Pay If you file on a calendar year basis, the due date for filing your return is April 15 of the following year. Taxes unemployed If you file on a fiscal year basis (a year ending on the last day of any month except December), the due date is 3 months and 15 days after the close of your fiscal year. Taxes unemployed In general, the tax shown on your return should be paid by the due date of the return, without regard to any extension of time for filing the return. Taxes unemployed When the due date for doing any act for tax purposes—filing a return, paying taxes, etc. Taxes unemployed — falls on a Saturday, Sunday, or legal holiday, the due date is delayed until the next business day. Taxes unemployed A tax return delivered by the U. Taxes unemployed S. Taxes unemployed mail or a designated delivery service that is postmarked or dated by the delivery service on or before the due date is considered to have been filed on or before that date. Taxes unemployed See your Form 1040 or Form 1040A instructions for a list of designated delivery services. Taxes unemployed Foreign wire transfers. Taxes unemployed   If you have a U. Taxes unemployed S. Taxes unemployed bank account, you can use: EFTPS (Electronic Federal Tax Payment System), or Federal Tax Application (same-day wire transfer). Taxes unemployed If you do not have a U. Taxes unemployed S. Taxes unemployed bank account, ask if your financial institution has a U. Taxes unemployed S. Taxes unemployed affiliate that can help you make same-day wire transfers. Taxes unemployed   For more information, visit www. Taxes unemployed eftps. Taxes unemployed gov. Taxes unemployed Extensions You can get an extension of time to file your return. Taxes unemployed In some circumstances, you also can get an extension of time to file and pay any tax due. Taxes unemployed However, if you pay the tax due after the regular due date, interest will be charged from the regular due date until the date the tax is paid. Taxes unemployed This publication discusses four extensions: an automatic 2-month extension, an automatic 6-month extension, an additional extension for taxpayers out of the country, and an extension of time to meet tests. Taxes unemployed If you served in a combat zone or qualified hazardous duty area, see Publication 3 for a discussion of extensions of deadlines. Taxes unemployed Automatic 2-month extension. Taxes unemployed   You are allowed an automatic 2-month extension to file your return and pay federal income tax if you are a U. Taxes unemployed S. Taxes unemployed citizen or resident alien, and on the regular due date of your return: You are living outside the United States and Puerto Rico and your main place of business or post of duty is outside the United States and Puerto Rico, or You are in military or naval service on duty outside the United States and Puerto Rico. Taxes unemployed   If you use a calendar year, the regular due date of your return is April 15. Taxes unemployed Even if you are allowed an extension, you will have to pay interest on any tax not paid by the regular due date of your return. Taxes unemployed Married taxpayers. Taxes unemployed   If you file a joint return, either you or your spouse can qualify for the automatic extension. Taxes unemployed If you and your spouse file separate returns, this automatic extension applies only to the spouse who qualifies for it. Taxes unemployed How to get the extension. Taxes unemployed   To use this automatic 2-month extension, you must attach a statement to your return explaining which of the two situations listed earlier qualified you for the extension. Taxes unemployed Automatic 6-month extension. Taxes unemployed   If you are not able to file your return by the due date, you generally can get an automatic 6-month extension of time to file (but not of time to pay). Taxes unemployed To get this automatic extension, you must file a paper Form 4868 or use IRS e-file (electronic filing). Taxes unemployed For more information about filing electronically, see E-file options , later. Taxes unemployed   The form must show your properly estimated tax liability based on the information available to you. Taxes unemployed    You may not be eligible. Taxes unemployed You cannot use the automatic 6-month extension of time to file if: You want the IRS to figure your tax, or You are under a court order to file by the regular due date. Taxes unemployed E-file options. Taxes unemployed    You can use e-file to get an extension of time to file. Taxes unemployed You can either file Form 4868 electronically or you can pay part or all of your estimate of tax due using a credit or debit card. Taxes unemployed   First, complete Form 4868 to use as a worksheet. Taxes unemployed If you think you may owe tax when you file your return, use Part II of the form to estimate your balance due. Taxes unemployed    Then, do one of the following. Taxes unemployed E-file Form 4868. Taxes unemployed You can use a tax software package with your personal computer or a tax professional to file Form 4868 electronically. Taxes unemployed You will need to provide certain information from your tax return for 2012. Taxes unemployed If you wish to make a payment by electronic funds withdrawal, see the instructions for Form 4868. Taxes unemployed If you e-file Form 4868, do not also send a paper Form 4868. Taxes unemployed E-file and pay by credit or debit card. Taxes unemployed You can get an extension by paying part or all of your estimate of tax due by using a credit or debit card. Taxes unemployed You can do this by phone or over the Internet. Taxes unemployed If you do this, you do not file Form 4868. Taxes unemployed For more information, see the instructions for your tax return. Taxes unemployed When to file. Taxes unemployed   Generally, you must request the 6-month extension by the regular due date of your return. Taxes unemployed Previous 2-month extension. Taxes unemployed   If you cannot file your return within the automatic 2-month extension period, you generally can get an additional 4 months to file your return, for a total of 6 months. Taxes unemployed The 2-month period and the 6-month period start at the same time. Taxes unemployed You have to request the additional 4 months by the new due date allowed by the 2-month extension. Taxes unemployed   The additional 4 months of time to file (unlike the original 2-month extension) is not an extension of time to pay. Taxes unemployed You must make an accurate estimate of your tax based on the information available to you. Taxes unemployed If you find you cannot pay the full amount due with Form 4868, you can still get the extension. Taxes unemployed You will owe interest on the unpaid amount from the original due date of the return. Taxes unemployed   You also may be charged a penalty for paying the tax late unless you have reasonable cause for not paying your tax when due. Taxes unemployed Penalties for paying the tax late are assessed from the original due date of your return, unless you qualify for the automatic 2-month extension. Taxes unemployed In that situation, penalties for paying late are assessed from the extended due date of the payment (June 15 for calendar year taxpayers). Taxes unemployed Additional extension of time for taxpayers out of the country. Taxes unemployed   In addition to the 6-month extension, taxpayers who are out of the country can request a discretionary 2-month additional extension of time to file their returns (to December 15 for calendar year taxpayers). Taxes unemployed   To request this extension, you must send the Internal Revenue Service a letter explaining the reasons why you need the additional 2 months. Taxes unemployed Send the letter by the extended due date (October 15 for calendar year taxpayers) to the following address: Department of the Treasury Internal Revenue Service Center Austin, TX 73301-0045   You will not receive any notification from the Internal Revenue Service unless your request is denied. Taxes unemployed   The discretionary 2-month additional extension is not available to taxpayers who have an approved extension of time to file on Form 2350, discussed next. Taxes unemployed Extension of time to meet tests. Taxes unemployed   You generally cannot get an extension of more than 6 months. Taxes unemployed However, if you are outside the United States and meet certain requirements, you may be able to get a longer extension. Taxes unemployed   You can get an extension of more than 6 months to file your tax return if you need the time to meet either the bona fide residence test or the physical presence test to qualify for either the foreign earned income exclusion or the foreign housing exclusion or deduction. Taxes unemployed The tests, the exclusions, and the deduction are explained in chapter 4. Taxes unemployed   You should request an extension if all three of the following apply. Taxes unemployed You are a U. Taxes unemployed S. Taxes unemployed citizen or resident alien. Taxes unemployed You expect to meet either the bona fide residence test or the physical presence test, but not until after your tax return is due. Taxes unemployed Your tax home is in a foreign country (or countries) throughout your period of bona fide residence or physical presence, whichever applies. Taxes unemployed   If you are granted an extension, it generally will be to 30 days beyond the date on which you can reasonably expect to qualify for an exclusion or deduction under either the bona fide residence test or the physical presence test. Taxes unemployed However, if you have moving expenses that are for services performed in 2 years, you may be granted an extension until after the end of the second year. Taxes unemployed How to get an extension. Taxes unemployed   To obtain an extension, file Form 2350 either by giving it to a local IRS representative or other IRS employee or by mailing it to the: Department of the Treasury Internal Revenue Service Center Austin, TX 73301-0045   You must file Form 2350 by the due date for filing your return. Taxes unemployed Generally, if both your tax home and your abode are outside the United States and Puerto Rico on the regular due date of your return and you file on a calendar year basis, the due date for filing your return is June 15. Taxes unemployed What if tests are not met. Taxes unemployed   If you obtain an extension and unforeseen events make it impossible for you to meet either the bona fide residence test or the physical presence test, you should file your income tax return as soon as possible because you must pay interest on any tax due after the regular due date of the return (even though an extension was granted). Taxes unemployed    You should make any request for an extension early, so that if it is denied you still can file your return on time. Taxes unemployed Otherwise, if you file late and additional tax is due, you may be subject to a penalty. Taxes unemployed Return filed before test is met. Taxes unemployed   If you file a return before you meet the bona fide residence test or the physical presence test, you must include all income from both U. Taxes unemployed S. Taxes unemployed and foreign sources and pay the tax on that income. Taxes unemployed If you later meet either of the tests, you can claim the foreign earned income exclusion, the foreign housing exclusion, or the foreign housing deduction on Form 1040X. Taxes unemployed Foreign Currency You must express the amounts you report on your U. Taxes unemployed S. Taxes unemployed tax return in U. Taxes unemployed S. Taxes unemployed dollars. Taxes unemployed If you receive all or part of your income or pay some or all of your expenses in foreign currency, you must translate the foreign currency into U. Taxes unemployed S. Taxes unemployed dollars. Taxes unemployed How you do this depends on your functional currency. Taxes unemployed Your functional currency generally is the U. Taxes unemployed S. Taxes unemployed dollar unless you are required to use the currency of a foreign country. Taxes unemployed You must make all federal income tax determinations in your functional currency. Taxes unemployed The U. Taxes unemployed S. Taxes unemployed dollar is the functional currency for all taxpayers except some qualified business units (QBUs). Taxes unemployed A QBU is a separate and clearly identified unit of a trade or business that maintains separate books and records. Taxes unemployed Even if you have a QBU, your functional currency is the dollar if any of the following apply. Taxes unemployed You conduct the business in U. Taxes unemployed S. Taxes unemployed dollars. Taxes unemployed The principal place of business is located in the United States. Taxes unemployed You choose to or are required to use the U. Taxes unemployed S. Taxes unemployed dollar as your functional currency. Taxes unemployed The business books and records are not kept in the currency of the economic environment in which a significant part of the business activities is conducted. Taxes unemployed Make all income tax determinations in your functional currency. Taxes unemployed If your functional currency is the U. Taxes unemployed S. Taxes unemployed dollar, you must immediately translate into U. Taxes unemployed S. Taxes unemployed dollars all items of income, expense, etc. Taxes unemployed (including taxes), that you receive, pay, or accrue in a foreign currency and that will affect computation of your income tax. Taxes unemployed Use the exchange rate prevailing when you receive, pay, or accrue the item. Taxes unemployed If there is more than one exchange rate, use the one that most properly reflects your income. Taxes unemployed You can generally get exchange rates from banks and U. Taxes unemployed S. Taxes unemployed Embassies. Taxes unemployed If your functional currency is not the U. Taxes unemployed S. Taxes unemployed dollar, make all income tax determinations in your functional currency. Taxes unemployed At the end of the year, translate the results, such as income or loss, into U. Taxes unemployed S. Taxes unemployed dollars to report on your income tax return. Taxes unemployed Blocked Income You generally must report your foreign income in terms of U. Taxes unemployed S. Taxes unemployed dollars and, with one exception (see Fulbright Grant, later), you must pay taxes due on it in U. Taxes unemployed S. Taxes unemployed dollars. Taxes unemployed If, because of restrictions in a foreign country, your income is not readily convertible into U. Taxes unemployed S. Taxes unemployed dollars or into other money or property that is readily convertible into U. Taxes unemployed S. Taxes unemployed dollars, your income is “blocked” or “deferrable” income. Taxes unemployed You can report this income in one of two ways: Report the income and pay your federal income tax with U. Taxes unemployed S. Taxes unemployed dollars that you have in the United States or in some other country, or Postpone the reporting of the income until it becomes unblocked. Taxes unemployed If you choose to postpone the reporting of the income, you must file an information return with your tax return. Taxes unemployed For this information return, you should use another Form 1040 labeled “Report of Deferrable Foreign Income, pursuant to Rev. Taxes unemployed Rul. Taxes unemployed 74-351. Taxes unemployed ” You must declare on the information return that you will include the deferrable income in your taxable income for the year that it becomes unblocked. Taxes unemployed You also must state that you waive any right to claim that the deferrable income was includible in your income for any earlier year. Taxes unemployed You must report your income on your information return using the foreign currency in which you received that income. Taxes unemployed If you have blocked income from more than one foreign country, include a separate information return for each country. Taxes unemployed Income becomes unblocked and reportable for tax purposes when it becomes convertible, or when it is converted, into U. Taxes unemployed S. Taxes unemployed dollars or into other money or property that is convertible into U. Taxes unemployed S. Taxes unemployed currency. Taxes unemployed Also, if you use blocked income for your personal expenses or dispose of it by gift, bequest, or devise, you must treat it as unblocked and reportable. Taxes unemployed If you have received blocked income on which you have not paid tax, you should check to see whether that income is still blocked. Taxes unemployed If it is not, you should take immediate steps to pay tax on it, file a declaration or amended declaration of estimated tax, and include the income on your tax return for the year in which the income became unblocked. Taxes unemployed If you choose to postpone reporting blocked income and in a later tax year you wish to begin including it in gross income although it is still blocked, you must obtain the permission of the IRS to do so. Taxes unemployed To apply for permission, file Form 3115, Application for Change in Accounting Method. Taxes unemployed You also must request permission from the IRS on Form 3115 if you have not chosen to defer the reporting of blocked income in the past, but now wish to begin reporting blocked income under the deferred method. Taxes unemployed See the instructions for Form 3115 for information on changing your accounting method. Taxes unemployed Fulbright Grant All income must be reported in U. Taxes unemployed S. Taxes unemployed dollars. Taxes unemployed In most cases, the tax also must be paid in U. Taxes unemployed S. Taxes unemployed dollars. Taxes unemployed If, however, at least 70% of your Fulbright grant has been paid in nonconvertible foreign currency (blocked income), you can use the currency of the host country to pay the part of the U. Taxes unemployed S. Taxes unemployed tax that is based on the blocked income. Taxes unemployed Paying U. Taxes unemployed S. Taxes unemployed tax in foreign currency. Taxes unemployed   To qualify for this method of payment, you must prepare a statement that shows the following information. Taxes unemployed You were a Fulbright grantee and were paid in nonconvertible foreign currency. Taxes unemployed The total grant you received during the year and the amount you received in nonconvertible foreign currency. Taxes unemployed At least 70% of the grant was paid in nonconvertible foreign currency. Taxes unemployed The statement must be certified by the U. Taxes unemployed S. Taxes unemployed educational foundation or commission paying the grant or other person having control of grant payments to you. Taxes unemployed   You should prepare at least two copies of this statement. Taxes unemployed Attach one copy to your Form 1040 and keep the other copy for identification purposes when you make a tax deposit of nonconvertible foreign currency. Taxes unemployed Figuring actual tax. Taxes unemployed   When you prepare your income tax return, you may owe tax or the entire liability may have been satisfied with your estimated tax payments. Taxes unemployed If you owe tax, figure the part due to (and payable in) the nonconvertible foreign currency by using the following formula. Taxes unemployed   Adjusted gross income that is blocked income × Total U. Taxes unemployed S. Taxes unemployed tax = Tax on blocked income     Total adjusted  gross income     You must attach all of the following to the return. Taxes unemployed A copy of the certified statement discussed earlier. Taxes unemployed A detailed statement showing the allocation of tax attributable to amounts received in foreign currency and the rates of exchange used in determining your tax liability in U. Taxes unemployed S. Taxes unemployed dollars. Taxes unemployed The original deposit receipt for any balance of tax due that you paid in nonconvertible foreign currency. Taxes unemployed Figuring estimated tax on nonconvertible foreign currency. Taxes unemployed   If you are liable for estimated tax (discussed later), figure the amount you can pay to the IRS in nonconvertible foreign currency using the following formula. Taxes unemployed   Adjusted gross income that is blocked income × Total estimated U. Taxes unemployed S. Taxes unemployed tax = Estimated tax on blocked income     Total adjusted  gross income     If you must pay your host country income tax on your grant, subtract any estimated foreign tax credit that applies to your grant from the estimated tax on the blocked income. Taxes unemployed Deposit of foreign currency with disbursing officer. Taxes unemployed   Once you have determined the amount of the actual tax or estimated tax that you can pay in nonconvertible foreign currency, deposit that amount with the disbursing officer of the Department of State in the foreign country in which the foundation or commission paying the grant is located. Taxes unemployed Estimated tax installments. Taxes unemployed   You can either deposit the full estimated tax amount before the first installment due date or make four equal payments before the installment due dates. Taxes unemployed See Estimated Tax , later. Taxes unemployed Deposit receipt. Taxes unemployed   Upon accepting the foreign currency, the disbursing officer will give you a receipt in duplicate. Taxes unemployed The original of this receipt (showing the amount of foreign currency deposited and its equivalent in U. Taxes unemployed S. Taxes unemployed dollars) should be attached to your Form 1040 or payment voucher from Form 1040-ES. Taxes unemployed Keep the copy for your records. Taxes unemployed Does My Return Have To Be On Paper? IRS e-file (electronic filing) is the fastest, easiest, and most convenient way to file your income tax return electronically. Taxes unemployed IRS e-file offers accurate, safe, and fast alternatives to filing on paper. Taxes unemployed IRS computers quickly and automatically check for errors or other missing information. Taxes unemployed Even returns with a foreign address can be e-filed! How to e-file. Taxes unemployed   There are three ways you can e-file. Taxes unemployed Use your personal computer. Taxes unemployed Use a volunteer. Taxes unemployed Many programs offering free tax help can e-file your return. Taxes unemployed Use a tax professional. Taxes unemployed Most tax professionals can e-file your return. Taxes unemployed These methods are explained in detail in the instructions for your tax return. Taxes unemployed Where To File If any of the following situations apply to you, do not file your return with the service center listed for your home state. Taxes unemployed You claim the foreign earned income exclusion. Taxes unemployed You claim the foreign housing exclusion or deduction. Taxes unemployed You live in a foreign country. Taxes unemployed Instead, use one of the following special addresses. Taxes unemployed If you are not enclosing a check or money order, file your return with the: Department of the Treasury Internal Revenue Service Center Austin, TX 73301-0215 USA If you are enclosing a check or money order, file your return with: Internal Revenue Service Center P. Taxes unemployed O. Taxes unemployed Box 1303 Charlotte, NC 28201-1303 USA If you do not know where your legal residence is and you do not have a principal place of business in the United States, you can file with the appropriate address listed above. Taxes unemployed However, you should not file with the addresses listed above if you are a bona fide resident of the U. Taxes unemployed S. Taxes unemployed Virgin Islands, Guam, or the Commonwealth of the Northern Mariana Islands during your entire tax year. Taxes unemployed Resident of U. Taxes unemployed S. Taxes unemployed Virgin Islands (USVI). Taxes unemployed   If you are a bona fide resident of the USVI during your entire tax year, you generally are not required to file a U. Taxes unemployed S. Taxes unemployed return. Taxes unemployed However, you must file a return with the USVI. Taxes unemployed    Send your return to the:     Virgin Islands Bureau of Internal Revenue 6115 Estate Smith Bay Suite 225 St. Taxes unemployed Thomas, Virgin Islands 00802 Non-USVI resident with USVI income. Taxes unemployed   If you are a U. Taxes unemployed S. Taxes unemployed citizen or resident alien and you have income from sources in the USVI or income effectively connected with the conduct of a trade or business in the USVI, and you are not a bona fide resident of the USVI during your entire tax year, you must file identical tax returns with the United States and the USVI. Taxes unemployed File the original return with the United States and file a signed copy of the U. Taxes unemployed S. Taxes unemployed return (including all attachments, forms, and schedules) with the Virgin Islands Bureau of Internal Revenue. Taxes unemployed   You must complete Form 8689, Allocation of Individual Income Tax to the U. Taxes unemployed S. Taxes unemployed Virgin Islands, and attach a copy to both your U. Taxes unemployed S. Taxes unemployed return and your USVI return. Taxes unemployed You should file your U. Taxes unemployed S. Taxes unemployed return with the address listed under Where To File. Taxes unemployed   See Publication 570, Tax Guide for Individuals With Income From U. Taxes unemployed S. Taxes unemployed Possessions, for information about filing Virgin Islands returns. Taxes unemployed Resident of Guam. Taxes unemployed   If you are a bona fide resident of Guam during your entire tax year, you should file a return with Guam. Taxes unemployed    Send your return to the:     Department of Revenue and Taxation Government of Guam P. Taxes unemployed O. Taxes unemployed Box 23607 GMF, GU 96921   However, if you have income from sources within Guam and you are a U. Taxes unemployed S. Taxes unemployed citizen or resident alien, but not a bona fide resident of Guam during the entire tax year, you should file a return with the United States. Taxes unemployed Send your return to the address listed under Where To File. Taxes unemployed   See Publication 570 for information about filing Guam returns. Taxes unemployed Resident of the Commonwealth of the Northern Mariana Islands. Taxes unemployed   If you are a bona fide resident of the Commonwealth of the Northern Mariana Islands (CNMI) during your entire tax year, you should file a return with the Northern Mariana Islands. Taxes unemployed    Send your return to the:      Division of Revenue and Taxation Commonwealth of the Northern Mariana Islands P. Taxes unemployed O. Taxes unemployed Box 5234, CHRB Saipan, MP 96950   However, if you have income from sources within the CNMI and you are a U. Taxes unemployed S. Taxes unemployed citizen or resident alien, but not a bona fide resident of the CNMI during the entire tax year, you should file a return with the United States. Taxes unemployed Send your return to the address listed under Where To File. Taxes unemployed   See Publication 570 for information about filing Northern Mariana Islands returns. Taxes unemployed Nonresident Alien Spouse Treated as a Resident If, at the end of your tax year, you are married and one spouse is a U. Taxes unemployed S. Taxes unemployed citizen or a resident alien and the other is a nonresident alien, you can choose to treat the nonresident as a U. Taxes unemployed S. Taxes unemployed resident. Taxes unemployed This includes situations in which one of you is a nonresident alien at the beginning of the tax year and a resident alien at the end of the year and the other is a nonresident alien at the end of the year. Taxes unemployed If you make this choice, the following two rules apply. Taxes unemployed You and your spouse are treated, for income tax purposes, as residents for all tax years that the choice is in effect. Taxes unemployed You must file a joint income tax return for the year you make the choice. Taxes unemployed This means that neither of you can claim under any tax treaty not to be a U. Taxes unemployed S. Taxes unemployed resident for a tax year for which the choice is in effect. Taxes unemployed You can file joint or separate returns in years after the year in which you make the choice. Taxes unemployed Example 1. Taxes unemployed Pat Smith, a U. Taxes unemployed S. Taxes unemployed citizen, is married to Norman, a nonresident alien. Taxes unemployed Pat and Norman make the choice to treat Norman as a resident alien by attaching a statement to their joint return. Taxes unemployed Pat and Norman must report their worldwide income for the year they make the choice and for all later years unless the choice is ended or suspended. Taxes unemployed Although Pat and Norman must file a joint return for the year they make the choice, they can file either joint or separate returns for later years. Taxes unemployed Example 2. Taxes unemployed When Bob and Sharon Williams got married, both were nonresident aliens. Taxes unemployed In June of last year, Bob became a resident alien and remained a resident for the rest of the year. Taxes unemployed Bob and Sharon both choose to be treated as resident aliens by attaching a statement to their joint return for last year. Taxes unemployed Bob and Sharon must report their worldwide income for last year and all later years unless the choice is ended or suspended. Taxes unemployed Bob and Sharon must file a joint return for last year, but they can file either joint or separate returns for later years. Taxes unemployed If you do not choose to treat your nonresident alien spouse as a U. Taxes unemployed S. Taxes unemployed resident, you may be able to use head of household filing status. Taxes unemployed To use this status, you must pay more than half the cost of maintaining a household for certain dependents or relatives other than your nonresident alien spouse. Taxes unemployed For more information, see Publication 501. Taxes unemployed Social Security Number (SSN) If you choose to treat your nonresident alien spouse as a U. Taxes unemployed S. Taxes unemployed resident, your spouse must have either an SSN or an individual taxpayer identification number (ITIN). Taxes unemployed To get an SSN for a nonresident alien spouse, apply at an office of the U. Taxes unemployed S. Taxes unemployed Social Security Administration (SSA) or U. Taxes unemployed S. Taxes unemployed consulate. Taxes unemployed You must complete Form SS-5, Application for a Social Security Card, available at www. Taxes unemployed socialsecurity. Taxes unemployed gov or by calling 1-800-772-1213. Taxes unemployed You must also provide original or certified copies of documents to verify that spouse's age, identity, and citizenship. Taxes unemployed If the nonresident alien spouse is not eligible to get an SSN, he or she can file Form W-7, Application for IRS Individual Taxpayer Identification Number, with the IRS to apply for an ITIN. Taxes unemployed How To Make the Choice Attach a statement, signed by both spouses, to your joint return for the first tax year for which the choice applies. Taxes unemployed It should contain the following: A declaration that one spouse was a nonresident alien and the other spouse a U. Taxes unemployed S. Taxes unemployed citizen or resident alien on the last day of your tax year and that you choose to be treated as U. Taxes unemployed S. Taxes unemployed residents for the entire tax year, and The name, address, and social security number (or individual taxpayer identification number) of each spouse. Taxes unemployed (If one spouse died, include the name and address of the person making the choice for the deceased spouse. Taxes unemployed ) You generally make this choice when you file your joint return. Taxes unemployed However, you also can make the choice by filing a joint amended return on Form 1040X. Taxes unemployed Attach Form 1040, 1040A, or 1040EZ and print “Amended” across the top of the amended return. Taxes unemployed If you make the choice with an amended return, you and your spouse also must amend any returns that you may have filed after the year for which you made the choice. Taxes unemployed You generally must file the amended joint return within 3 years from the date you filed your original U. Taxes unemployed S. Taxes unemployed income tax return or 2 years from the date you paid your income tax for that year, whichever is later. Taxes unemployed Table 1–1. Taxes unemployed Ending the Choice To Treat Nonresident Alien Spouse as a Resident Revocation   Either spouse can revoke the choice for any tax year. Taxes unemployed   • The revocation must be made by the due date for filing the tax return for that tax year. Taxes unemployed   • The spouse who revokes the choice must attach a signed statement declaring that the choice is being revoked. Taxes unemployed The statement revoking the choice must include the following:     • The name, address, and social security number (or taxpayer identification number) of each spouse. Taxes unemployed     • The name and address of any person who is revoking the choice for a deceased spouse. Taxes unemployed     • A list of any states, foreign countries, and possessions that have community property laws in which either spouse is domiciled or where real property is located from which either spouse receives income. Taxes unemployed   • If the spouse revoking the choice does not have to file a return and does not file a claim for refund, send the statement to the Internal Revenue Service Center where the last joint return was filed. Taxes unemployed Death   The death of either spouse ends the choice, beginning with the first tax year following the year in which the spouse died. Taxes unemployed   • If the surviving spouse is a U. Taxes unemployed S. Taxes unemployed citizen or resident alien and is entitled to the joint tax rates as a surviving spouse, the choice will not end until the close of the last year for which these joint rates may be used. Taxes unemployed   • If both spouses die in the same tax year, the choice ends on the first day after the close of the tax year in which the spouses died. Taxes unemployed Divorce or  Legal separation   A divorce or legal separation ends the choice as of the beginning of the tax year in which the legal separation occurs. Taxes unemployed Inadequate records   The Internal Revenue Service can end the choice for any tax year that either spouse has failed to keep adequate books, records, and other information necessary to determine the correct income tax liability, or to provide adequate access to those records. Taxes unemployed Suspending the Choice The choice to be treated as a resident alien does not apply to any later tax year if neither of you is a U. Taxes unemployed S. Taxes unemployed citizen or resident alien at any time during the later tax year. Taxes unemployed Example. Taxes unemployed Dick Brown was a resident alien on December 31, 2010, and married to Judy, a nonresident alien. Taxes unemployed They chose to treat Judy as a resident alien and filed a joint 2010 income tax return. Taxes unemployed On January 10, 2012, Dick became a nonresident alien. Taxes unemployed Judy had remained a nonresident alien. Taxes unemployed Because Dick was a resident alien during part of 2012, Dick and Judy can file joint or separate returns for that year. Taxes unemployed Neither Dick nor Judy was a resident alien at any time during 2013 and their choice is suspended for that year. Taxes unemployed For 2013, both are treated as nonresident aliens. Taxes unemployed If Dick becomes a resident alien again in 2014, their choice is no longer suspended and both are treated as resident aliens. Taxes unemployed Ending the Choice Once made, the choice to be treated as a resident applies to all later years unless suspended (as explained earlier) or ended in one of the ways shown in Table 1-1. Taxes unemployed If the choice is ended for any of the reasons listed in Table 1-1, neither spouse can make a choice in any later tax year. Taxes unemployed Estimated Tax The requirements for determining who must pay estimated tax are the same for a U. Taxes unemployed S. Taxes unemployed citizen or resident abroad as for a taxpayer in the United States. Taxes unemployed For current instructions on making estimated tax payments, see Form 1040-ES. Taxes unemployed If you had a tax liability for 2013, you may have to pay estimated tax for 2014. Taxes unemployed Generally, you must make estimated tax payments for 2014 if you expect to owe at least $1,000 in tax for 2014 after subtracting your withholding and credits and you expect your withholding and credits to be less than the smaller of: 90% of the tax to be shown on your 2014 tax return, or 100% of the tax shown on your 2013 tax return. Taxes unemployed (The return must cover all 12 months. Taxes unemployed ) If less than two-thirds of your gross income for 2013 and 2014 is from farming or fishing and your adjusted gross income for 2013 is more than $150,000 ($75,000 if you are married and file separately), substitute 110% for 100% in (2). Taxes unemployed See Publication 505 for more information. Taxes unemployed The first installment of estimated tax is due on April 15, 2014. Taxes unemployed Foreign earned income exclusion. Taxes unemployed   When figuring your estimated gross income, subtract amounts you expect to exclude under the foreign earned income exclusion and the foreign housing exclusion. Taxes unemployed In addition, you can reduce your income by your estimated foreign housing deduction. Taxes unemployed However, you must estimate tax on your nonexcluded income using the tax rates that will apply had you not excluded the income. Taxes unemployed If the actual amount of the exclusion or deduction is less than you estimate, you may have to pay a penalty for underpayment of estimated tax. Taxes unemployed   For more information about figuring your estimated tax, see Publication 505. Taxes unemployed Other Forms You May Have To File FinCEN Form 114 (replaces Form TD F 90-22. Taxes unemployed 1). Taxes unemployed   Beginning October 1, 2013, Form 114, Report of Foreign Bank and Financial Accounts (FBAR), must be filed instead of Form TD F 90-22. Taxes unemployed 1. Taxes unemployed Form 114 is filed electronically with the Financial Crimes Enforcement Network (FinCEN). Taxes unemployed See the filing instructions at www. Taxes unemployed bsaefiling. Taxes unemployed fincen. Taxes unemployed treas. Taxes unemployed gov/main. Taxes unemployed html. Taxes unemployed   You must file Form 114 if you had any financial interest in, or signature or other authority over a bank, securities, or other financial account in a foreign country. Taxes unemployed You do not need to file the report if the assets are with a U. Taxes unemployed S. Taxes unemployed military banking facility operated by a financial institution or if the combined assets in the account(s) are $10,000 or less during the entire year. Taxes unemployed   More information about the filing of Form 114 can be found in the instructions for the form. Taxes unemployed FinCEN Form 105. Taxes unemployed   You must file Form 105, Report of International Transportation of Currency or Monetary Instruments, if you physically transport, mail, ship, or cause to be physically transported, mailed, or shipped into or out of the United States, currency or other monetary instruments totaling more than $10,000 at one time. Taxes unemployed Certain recipients of currency or monetary instruments also must file Form 105. Taxes unemployed   More information about the filing of Form 105 can be found in the instructions on the back of the form. Taxes unemployed Form 8938. Taxes unemployed   You must file Form 8938 to report the ownership of specified foreign financial assets if the total value of those assets exceeds an applicable threshold amount (the “reporting threshold ”). Taxes unemployed The reporting threshold varies depending on whether you live in the United States, are married, or file a joint income tax return with your spouse. Taxes unemployed Specified foreign financial assets include any financial account maintained by a foreign financial institution and, to the extent held for investment, any stock, securities, or any other interest in a foreign entity and any financial instrument or contract with an issuer or counterparty that is not a U. Taxes unemployed S. Taxes unemployed person. Taxes unemployed   You may have to pay penalties if you are required to file Form 8938 and fail to do so, or if you have an understatement of tax due to any transaction involving an undisclosed foreign financial asset. Taxes unemployed   More information about the filing of Form 8938 can be found in the separate instructions for Form 8938. Taxes unemployed Prev  Up  Next   Home   More Online Publications