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Telefile

Telefile 5. Telefile   How To Get Tax Help Table of Contents Whether it's help with a tax issue, preparing your tax return or a need for a free publication or form, get the help you need the way you want it: online, use a smart phone, call or walk in to an IRS office or volunteer site near you. Telefile You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get information from the IRS in several ways. Telefile By selecting the method that is best for you, you will have quick and easy access to tax help. Telefile Free help with your tax return. Telefile   You can get free help preparing your return nationwide from IRS-certified volunteers. Telefile The Volunteer Income Tax Assistance (VITA) program helps low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers. Telefile The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Telefile Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. Telefile In addition, some VITA and TCE sites provide taxpayers the opportunity to prepare their own return with help from an IRS-certified volunteer. Telefile To find the nearest VITA or TCE site, you can use the VITA Locator Tool on IRS. Telefile gov, download the IRS2Go app, or call 1-800-906-9887. Telefile   As part of the TCE program, AARP offers the Tax-Aide counseling program. Telefile To find the nearest AARP Tax-Aide site, visit AARP's website at www. Telefile aarp. Telefile org/money/taxaide or call 1-888-227-7669. Telefile For more information on these programs, go to IRS. Telefile gov and enter “VITA” in the search box. Telefile Internet. Telefile    IRS. Telefile gov and IRS2Go are ready when you are —24 hours a day, 7 days a week. Telefile Download the free IRS2Go app from the iTunes app store or from Google Play. Telefile Use it to check your refund status, order transcripts of your tax returns or tax account, watch the IRS YouTube channel, get IRS news as soon as it's released to the public, subscribe to filing season updates or daily tax tips, and follow the IRS Twitter news feed, @IRSnews, to get the latest federal tax news, including information about tax law changes and important IRS programs. Telefile Check the status of your 2013 refund with the Where's My Refund? application on IRS. Telefile gov or download the IRS2Go app and select the Refund Status option. Telefile The IRS issues more than 9 out of 10 refunds in less than 21 days. Telefile Using these applications, you can start checking on the status of your return within 24 hours after we receive your e-filed return or 4 weeks after you mail a paper return. Telefile You will also be given a personalized refund date as soon as the IRS processes your tax return and approves your refund. Telefile The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Telefile Use the Interactive Tax Assistant (ITA) to research your tax questions. Telefile No need to wait on the phone or stand in line. Telefile The ITA is available 24 hours a day, 7 days a week, and provides you with a variety of tax information related to general filing topics, deductions, credits, and income. Telefile When you reach the response screen, you can print the entire interview and the final response for your records. Telefile New subject areas are added on a regular basis. Telefile  Answers not provided through ITA may be found in Tax Trails, one of the Tax Topics on IRS. Telefile gov which contain general individual and business tax information or by searching the IRS Tax Map, which includes an international subject index. Telefile You can use the IRS Tax Map, to search publications and instructions by topic or keyword. Telefile The IRS Tax Map integrates forms and publications into one research tool and provides single-point access to tax law information by subject. Telefile When the user searches the IRS Tax Map, they will be provided with links to related content in existing IRS publications, forms and instructions, questions and answers, and Tax Topics. Telefile Coming this filing season, you can immediately view and print for free all 5 types of individual federal tax transcripts (tax returns, tax account, record of account, wage and income statement, and certification of non-filing) using Get Transcript. Telefile You can also ask the IRS to mail a return or an account transcript to you. Telefile Only the mail option is available by choosing the Tax Records option on the IRS2Go app by selecting Mail Transcript on IRS. Telefile gov or by calling 1-800-908-9946. Telefile Tax return and tax account transcripts are generally available for the current year and the past three years. Telefile Determine if you are eligible for the EITC and estimate the amount of the credit with the Earned Income Tax Credit (EITC) Assistant. Telefile Visit Understanding Your IRS Notice or Letter to get answers to questions about a notice or letter you received from the IRS. Telefile If you received the First Time Homebuyer Credit, you can use the First Time Homebuyer Credit Account Look-up tool for information on your repayments and account balance. Telefile Check the status of your amended return using Where's My Amended Return? Go to IRS. Telefile gov and enter Where's My Amended Return? in the search box. Telefile You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. Telefile It can take up to 3 weeks from the date you mailed it to show up in our system. Telefile Make a payment using one of several safe and convenient electronic payment options available on IRS. Telefile gov. Telefile Select the Payment tab on the front page of IRS. Telefile gov for more information. Telefile Determine if you are eligible and apply for an online payment agreement, if you owe more tax than you can pay today. Telefile Figure your income tax withholding with the IRS Withholding Calculator on IRS. Telefile gov. Telefile Use it if you've had too much or too little withheld, your personal situation has changed, you're starting a new job or you just want to see if you're having the right amount withheld. Telefile Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. Telefile gov. Telefile Request an Electronic Filing PIN by going to IRS. Telefile gov and entering Electronic Filing PIN in the search box. Telefile Download forms, instructions and publications, including accessible versions for people with disabilities. Telefile Locate the nearest Taxpayer Assistance Center (TAC) using the Office Locator tool on IRS. Telefile gov, or choose the Contact Us option on the IRS2Go app and search Local Offices. Telefile An employee can answer questions about your tax account or help you set up a payment plan. Telefile Before you visit, check the Office Locator on IRS. Telefile gov, or Local Offices under Contact Us on IRS2Go to confirm the address, phone number, days and hours of operation, and the services provided. Telefile If you have a special need, such as a disability, you can request an appointment. Telefile Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. Telefile Apply for an Employer Identification Number (EIN). Telefile Go to IRS. Telefile gov and enter Apply for an EIN in the search box. Telefile Read the Internal Revenue Code, regulations, or other official guidance. Telefile Read Internal Revenue Bulletins. Telefile Sign up to receive local and national tax news and more by email. Telefile Just click on “subscriptions” above the search box on IRS. Telefile gov and choose from a variety of options. Telefile Phone. Telefile    You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. Telefile Download the free IRS2Go app from the iTunes app store or from Google Play. Telefile Call to locate the nearest volunteer help site, 1-800-906-9887 or you can use the VITA Locator Tool on IRS. Telefile gov, or download the IRS2Go app. Telefile Low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. Telefile The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Telefile Most VITA and TCE sites offer free electronic filing. Telefile Some VITA and TCE sites provide IRS-certified volunteers who can help prepare your tax return. Telefile Through the TCE program, AARP offers the Tax-Aide counseling program; call 1-888-227-7669 to find the nearest Tax-Aide location. Telefile Call the automated Where's My Refund? information hotline to check the status of your 2013 refund 24 hours a day, 7 days a week at 1-800-829-1954. Telefile If you e-file, you can start checking on the status of your return within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. Telefile The IRS issues more than 9 out of 10 refunds in less than 21 days. Telefile Where's My Refund? will give you a personalized refund date as soon as the IRS processes your tax return and approves your refund. Telefile Before you call this automated hotline, have your 2013 tax return handy so you can enter your social security number, your filing status, and the exact whole dollar amount of your refund. Telefile The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Telefile Note, the above information is for our automated hotline. Telefile Our live phone and walk-in assistors can research the status of your refund only if it's been 21 days or more since you filed electronically or more than 6 weeks since you mailed your paper return. Telefile Call the Amended Return Hotline, 1-866-464-2050, to check the status of your amended return. Telefile You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. Telefile It can take up to 3 weeks from the date you mailed it to show up in our system. Telefile Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, publications, and prior-year forms and instructions (limited to 5 years). Telefile You should receive your order within 10 business days. Telefile Call TeleTax, 1-800-829-4477, to listen to pre-recorded messages covering general and business tax information. Telefile If, between January and April 15, you still have questions about the Form 1040, 1040A, or 1040EZ (like filing requirements, dependents, credits, Schedule D, pensions and IRAs or self-employment taxes), call 1-800-829-1040. Telefile Call using TTY/TDD equipment, 1-800-829-4059 to ask tax questions or order forms and publications. Telefile The TTY/TDD telephone number is for people who are deaf, hard of hearing, or have a speech disability. Telefile These individuals can also contact the IRS through relay services such as the Federal Relay Service. Telefile Mail. Telefile   You can send your order for forms, instructions, and publications to the address below. Telefile You should receive a response within 10 business days after your request is received. Telefile Internal Revenue Service 1201 N. Telefile Mitsubishi Motorway Bloomington, IL 61705-6613    The Taxpayer Advocate Service Is Here to Help You. Telefile The Taxpayer Advocate Service (TAS) is your voice at the IRS. Telefile Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. Telefile   What can TAS do for you? We can offer you free help with IRS problems that you can't resolve on your own. Telefile We know this process can be confusing, but the worst thing you can do is nothing at all! TAS can help if you can't resolve your tax problem and: Your problem is causing financial difficulties for you, your family, or your business. Telefile You face (or your business is facing) an immediate threat of adverse action. Telefile You've tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised. Telefile   If you qualify for our help, you'll be assigned to one advocate who'll be with you at every turn and will do everything possible to resolve your problem. Telefile Here's why we can help: TAS is an independent organization within the IRS. Telefile Our advocates know how to work with the IRS. Telefile Our services are free and tailored to meet your needs. Telefile We have offices in every state, the District of Columbia, and Puerto Rico. Telefile   How can you reach us? If you think TAS can help you, call your local advocate, whose number is in your local directory and at www. Telefile irs. Telefile gov/Advocate, or call us toll-free at 1-877-777-4778. Telefile   How else does TAS help taxpayers?  TAS also works to resolve large-scale, systemic problems that affect many taxpayers. Telefile If you know of one of these broad issues, please report it to us through our Systemic Advisory Management System at www. Telefile irs. Telefile gov/Advocate/Systemic-Advocacy-Management-System-SAMS. Telefile Low Income Taxpayer Clinics. Telefile    Low Income Taxpayer Clinics (LITCs) serve individuals whose income is below a certain level and need to resolve tax problems such as audits, appeals and tax collection disputes. Telefile Some clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. Telefile Visit www. Telefile irs. Telefile gov/Advocate or see IRS Publication 4134, Low Income Taxpayer Clinic List. Telefile Prev  Up  Next   Home   More Online Publications
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Consumer Protection Offices

City, county, regional, and state consumer offices offer a variety of important services. They might mediate complaints, conduct investigations, prosecute offenders of consumer laws, license and regulate professional service providers, provide educational materials and advocate for consumer rights. To save time, call before sending a written complaint. Ask if the office handles the type of complaint you have and if complaint forms are provided.

State Consumer Protection Offices

Department of Consumer Protection

Website: Department of Consumer Protection

Address: Department of Consumer Protection
165 Capitol Ave.
Hartford, CT 06106-1630

Phone Number: 860-713-6300

Toll-free: 1-800-842-2649

TTY: 860-713-7240

Connecticut Attorney General's Office

Website: Connecticut Attorney General's Office

Address: Connecticut Attorney General's Office
Consumer Assistance Unit
55 Elm St.
Hartford, CT 06106

Phone Number: 860-808-5420

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Banking Authorities

The officials listed in this section regulate and supervise state-chartered banks. Many of them handle or refer problems and complaints about other types of financial institutions as well. Some also answer general questions about banking and consumer credit. If you are dealing with a federally chartered bank, check Federal Agencies.

Department of Banking

Website: Department of Banking

Address: Department of Banking
Government Relations and Consumer Affairs
260 Constitution Plaza
Hartford, CT 06103-1800

Phone Number: 860-240-8299

Toll-free: 1-800-831-7225
1-877-472-8313 (Foreclosure Assistance) 1-877-472-8313 (Foreclosure Assistance)

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Insurance Regulators

Each state has its own laws and regulations for each type of insurance. The officials listed in this section enforce these laws. Many of these offices can also provide you with information to help you make informed insurance buying decisions.

Insurance Department

Website: Insurance Department

Address: Insurance Department
Consumer Affairs Division
PO Box 816
Hartford, CT 06142-0816

Phone Number: 860-297-3900

Toll-free: 1-800-203-3447 (CT)

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Securities Administrators

Each state has its own laws and regulations for securities brokers and securities - including stocks, mutual funds, commodities, real estate, etc. The officials and agencies listed in this section enforce these laws and regulations. Many of these offices can also provide information to help you make informed investment decisions.

Department of Banking

Website: Department of Banking

Address: Department of Banking
Securities and Business Investments Division
260 Constitution Plaza
Hartford, CT 06103-1800

Phone Number: 860-240-8230

Toll-free: 1-800-831-7225

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Utility Commissions

State Utility Commissions regulate services and rates for gas, electricity and telephones within your state. In some states, the utility commissions regulate other services such as water, transportation, and the moving of household goods. Many utility commissions handle consumer complaints. Sometimes, if a number of complaints are received about the same utility matter, they will conduct investigations.

Department of Energy and Environmental Protection

Website: Department of Energy and Environmental Protection

Address: Department of Energy and Environmental Protection
Public Utilities Regulatory Authority
Consumer Services Unit

10 Franklin Square
New Britain, CT 06051

Phone Number: 860-827-1553

Toll-free: 1-800-382-4586 (CT)

TTY: 860-827-2837

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The Telefile

Telefile 8. Telefile   Paying Tax Through Withholding or Estimated Tax Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Notification of Alien Status Withholding From CompensationWithholding on Wages Withholding on Pensions Withholding on Tip Income Independent Contractors Withholding From Other IncomeTax Withheld on Partnership Income Withholding on Scholarships and Fellowship Grants Income Entitled to Tax Treaty BenefitsStudents, teachers, and researchers. Telefile Tax Withheld on Real Property Sales Social Security and Medicare TaxesStudents and Exchange Visitors Agricultural Workers Self-Employment Tax International Social Security Agreements Estimated Tax Form 1040-ES (NR)Fiscal year. Telefile Introduction This chapter discusses how to pay your U. Telefile S. Telefile income tax as you earn or receive income during the year. Telefile In general, the federal income tax is a pay as you go tax. Telefile There are two ways to pay as you go. Telefile Withholding. Telefile If you are an employee, your employer probably withholds income tax from your pay. Telefile Tax may also be withheld from certain other income—including pensions, bonuses, commissions, and gambling winnings. Telefile In each case, the amount withheld is paid to the U. Telefile S. Telefile Treasury in your name. Telefile Estimated tax. Telefile If you do not pay your tax through withholding, or do not pay enough tax that way, you might have to pay estimated tax. Telefile People who are in business for themselves generally will have to pay their tax this way. Telefile You may have to pay estimated tax if you receive income such as dividends, interest, rent, and royalties. Telefile Estimated tax is used to pay not only income tax, but self-employment tax and alternative minimum tax as well. Telefile Topics - This chapter discusses: How to notify your employer of your alien status, Income subject to withholding of income tax, Exemptions from withholding, Social security and Medicare taxes, and Estimated tax rules. Telefile Useful Items - You may want to see: Publication 515 Withholding of Tax on Nonresident Aliens and Foreign Entities 901 U. Telefile S. Telefile Tax Treaties Form (and Instructions) W-4 Employee's Withholding Allowance Certificate W-8BEN Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (Individuals) W-8ECI Certificate of Foreign Person's Claim That Income Is Effectively Connected With the Conduct of a Trade or Business in the United States W-9 Request for Taxpayer Identification Number and Certification 1040-ES (NR) U. Telefile S. Telefile Estimated Tax for Nonresident Alien Individuals 8233 Exemption From Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual 8288-B Application for Withholding Certificate for Dispositions by Foreign Persons of U. Telefile S. Telefile Real Property Interests 13930 Application for Central Withholding Agreement See chapter 12 for information about getting these publications and forms. Telefile Notification of Alien Status You must let your employer know whether you are a resident or a nonresident alien so your employer can withhold the correct amount of tax from your wages. Telefile If you are a resident alien under the rules discussed in chapter 1, you must file Form W-9 or a similar statement with your employer. Telefile If you are a nonresident alien under those rules, you must furnish to your employer Form 8233 or Form W-8BEN, establishing that you are a foreign person, or Form W-4, establishing that your compensation is subject to graduated withholding at the same rates as resident aliens or U. Telefile S. Telefile citizens. Telefile If you are a resident alien and you receive income other than wages (such as dividends and royalties) from sources within the United States, file Form W-9 or similar statement with the withholding agent (generally, the payer of the income) so the agent will not withhold tax on the income at the 30% (or lower treaty) rate. Telefile If you receive this type of income as a nonresident alien, file Form W-8BEN with the withholding agent so that the agent will withhold tax at the 30% (or lower treaty) rate. Telefile However, if the income is effectively connected with a U. Telefile S. Telefile trade or business, file Form W-8ECI instead. Telefile Withholding From Compensation The following discussion generally applies only to nonresident aliens. Telefile Tax is withheld from resident aliens in the same manner as U. Telefile S. Telefile citizens. Telefile Wages and other compensation paid to a nonresident alien for services performed as an employee are usually subject to graduated withholding at the same rates as resident aliens and U. Telefile S. Telefile citizens. Telefile Therefore, your compensation, unless it is specifically excluded from the term “wages” by law, or is exempt from tax by treaty, is subject to graduated withholding. Telefile Withholding on Wages If you are an employee and you receive wages subject to graduated withholding, you will be required to fill out a Form W-4. Telefile Also fill out Form W-4 for a scholarship or fellowship grant to the extent it represents payment for past, present, or future services and for which you are not claiming a tax treaty withholding exemption on Form 8233 (discussed later under Income Entitled to Tax Treaty Benefits). Telefile These are services you are required to perform as an employee and as a condition of receiving the scholarship or fellowship (or tuition reduction). Telefile Nonresident aliens should fill out Form W-4 using the following instructions instead of the instructions on the Form W-4. Telefile This is because of the restrictions on a nonresident alien's filing status, the limited number of personal exemptions a nonresident alien is allowed, and because a nonresident alien cannot claim the standard deduction. Telefile Enter your social security number (SSN) on line 2. Telefile Do not enter an individual taxpayer identification number (ITIN). Telefile Check only “Single” marital status on line 3 (regardless of your actual marital status). Telefile Claim only one allowance on line 5, unless you are a resident of Canada, Mexico, or South Korea, or a U. Telefile S. Telefile national. Telefile Write “Nonresident Alien” or “NRA” on the dotted line on line 6. Telefile You can request additional withholding on line 6 at your option. Telefile Do not claim “Exempt” withholding status on line 7. Telefile A U. Telefile S. Telefile national is an individual who, although not a U. Telefile S. Telefile citizen, owes his or her allegiance to the United States. Telefile U. Telefile S. Telefile nationals include American Samoans, and Northern Mariana Islanders who chose to become U. Telefile S. Telefile nationals instead of U. Telefile S. Telefile citizens. Telefile See Withholding on Scholarships and Fellowship Grants later, for how to fill out Form W-4 if you receive a U. Telefile S. Telefile source scholarship or fellowship grant that is not a payment for services. Telefile Students and business apprentices from India. Telefile   If you are eligible for the benefits of Article 21(2) of the United States-India Income Tax Treaty, you may claim an additional withholding allowance for the standard deduction. Telefile You can claim an additional withholding allowance for your spouse only if your spouse will have no gross income for 2013 and cannot be claimed as a dependent on another U. Telefile S. Telefile taxpayer's 2013 return. Telefile You may also claim an additional withholding allowance for each of your dependents not admitted to the United States on “F-2,” “J-2,” or “M-2” visas if they meet the same rules that apply to U. Telefile S. Telefile citizens. Telefile Household employees. Telefile   If you work as a household employee, your employer does not have to withhold income tax. Telefile However, you may agree to voluntary income tax withholding by filing a Form W-4 with your employer. Telefile The agreement goes into effect when your employer accepts the agreement by beginning the withholding. Telefile You or your employer may end the agreement by letting the other know in writing. Telefile Agricultural workers. Telefile   If you are an agricultural worker on an H-2A visa, your employer does not have to withhold income tax. Telefile However, your employer will withhold income tax only if you and your employer agree to withhold. Telefile In that case, you must provide your employer with a properly completed Form W-4. Telefile You can find more information about not having tax withheld at www. Telefile irs. Telefile gov/Individuals/International-Taxpayers/Foreign-Agricultural-Workers. Telefile Wages Exempt From Withholding Wages that are exempt from U. Telefile S. Telefile income tax under an income tax treaty are generally exempt from withholding. Telefile For information on how to claim this exemption from withholding, see Income Entitled to Tax Treaty Benefits , later. Telefile Wages paid to aliens who are residents of American Samoa, Canada, Mexico, Puerto Rico, or the U. Telefile S. Telefile Virgin Islands may be exempt from withholding. Telefile The following paragraphs explain these exemptions. Telefile Residents of Canada or Mexico engaged in transportation-related employment. Telefile   Certain residents of Canada or Mexico who enter or leave the United States at frequent intervals are not subject to withholding on their wages. Telefile These persons either: Perform duties in transportation service between the United States and Canada or Mexico, or Perform duties connected to the construction, maintenance, or operation of a waterway, viaduct, dam, or bridge crossed by, or crossing, the boundary between the United States and Canada or the boundary between the United States and Mexico. Telefile    This employment is subject to withholding of social security and Medicare taxes unless the services are performed for a railroad. Telefile   To qualify for the exemption from withholding during a tax year, a Canadian or Mexican resident must give the employer a statement in duplicate with name, address, and identification number, certifying that the resident: Is not a U. Telefile S. Telefile citizen or resident, Is a resident of Canada or Mexico, whichever applies, and Expects to perform duties previously described during the tax year in question. Telefile   The statement can be in any form, but it must be dated and signed by the employee and must include a written declaration that it is made under the penalties of perjury. Telefile Residents of American Samoa and Puerto Rico. Telefile   If you are a nonresident alien employee who is a resident of American Samoa or Puerto Rico, wages for services performed in American Samoa or Puerto Rico are generally not subject to withholding unless you are an employee of the United States or any of its agencies in American Samoa or Puerto Rico. Telefile Residents of the U. Telefile S. Telefile Virgin Islands. Telefile   Nonresident aliens who are bona fide residents of the U. Telefile S Virgin Islands are not subject to withholding of U. Telefile S. Telefile tax on income earned while temporarily employed in the United States. Telefile This is because those persons pay their income tax to the U. Telefile S. Telefile Virgin Islands. Telefile To avoid having tax withheld on income earned in the United States, bona fide residents of the U. Telefile S. Telefile Virgin Islands should write a letter, in duplicate, to their employers, stating that they are bona fide residents of the U. Telefile S. Telefile Virgin Islands and expect to pay tax on all income to the U. Telefile S. Telefile Virgin Islands. Telefile Withholding on Pensions If you receive a pension as a result of personal services performed in the United States, the pension income is subject to the 30% (or lower treaty) rate of withholding. Telefile You may, however, have tax withheld at graduated rates on the portion of the pension that arises from the performance of services in the United States after December 31, 1986. Telefile You must fill out Form W-8BEN and give it to the withholding agent or payer before the income is paid or credited to you. Telefile Withholding on Tip Income Tips you receive during the year for services performed in the United States are subject to U. Telefile S. Telefile income tax. Telefile Include them in taxable income. Telefile In addition, tips received while working for one employer, amounting to $20 or more in a month, are subject to graduated withholding. Telefile Independent Contractors If there is no employee-employer relationship between you and the person for whom you perform services, your compensation is subject to the 30% (or lower treaty) rate of withholding. Telefile However, if you are engaged in a trade or business in the United States during the tax year, your compensation for personal services as an independent contractor (independent personal services) may be entirely or partly exempt from withholding if you reach an agreement with the Internal Revenue Service on the amount of withholding required. Telefile An agreement that you reach with the IRS regarding withholding from your compensation for independent personal services is effective for payments covered by the agreement after it is agreed to by all parties. Telefile You must agree to timely file an income tax return for the current tax year. Telefile Central withholding agreements. Telefile   If you are a nonresident alien entertainer or athlete performing or participating in athletic events in the United States, you may be able to enter into a withholding agreement with the IRS for reduced withholding provided certain requirements are met. Telefile Under no circumstances will such a withholding agreement reduce taxes withheld to less than the anticipated amount of income tax liability. Telefile   File Form 13930 and the required attachments with the IRS to request a central withholding agreement. Telefile Either you or your authorized representative can file the form. Telefile It should be sent to the IRS at least 45 days before the tour begins or the event occurs. Telefile Exceptions will be considered on a case by case basis. Telefile   For more information on the CWA program, go to www. Telefile irs. Telefile gov/Individuals/International-Taxpayers/Central-Withholding-Agreements. Telefile Final payment exemption. Telefile   Your final payment of compensation during the tax year for independent personal services may be entirely or partly exempt from withholding. Telefile This exemption is available only once during your tax year and applies to a maximum of $5,000 of compensation. Telefile To obtain this exemption, you or your agent must give the following statements and information to the Commissioner or his delegate. Telefile A statement by each withholding agent from whom you have received gross income effectively connected with a trade or business in the United States during the tax year, showing the amount of income paid and the tax withheld. Telefile Each statement must be signed by the withholding agent and verified by a declaration that it is made under penalties of perjury. Telefile A statement by the withholding agent from whom you expect to receive the final payment of compensation, showing the amount of the payment and the amount of tax that would be withheld if a final payment exemption were not granted. Telefile This statement must also be signed by the withholding agent and verified by a declaration that it is made under penalties of perjury. Telefile A statement by you that you do not intend to receive any other income effectively connected with a trade or business in the United States during the current tax year. Telefile The amount of tax that has been withheld or paid under any other provision of the Internal Revenue Code or regulations for any income effectively connected with your trade or business in the United States during the current tax year. Telefile The amount of your outstanding tax liabilities, if any, including interest and penalties, from the current tax year or prior tax periods. Telefile Any provision of an income tax treaty under which a partial or complete exemption from withholding may be claimed, the country of your residence, and a statement of sufficient facts to justify an exemption under the treaty. Telefile A statement signed by you, and verified by a declaration that it is made under penalties of perjury, that all the information given is true and that to your knowledge no relevant information has been omitted. Telefile   If satisfied with the information, the IRS will determine the amount of your tentative income tax for the tax year on gross income effectively connected with your trade or business in the United States. Telefile Ordinary and necessary business expenses can be taken into account if proven to the satisfaction of the Commissioner or his delegate. Telefile   The Commissioner or his delegate will send you a letter, directed to the withholding agent, showing the amount of the final payment of compensation that is exempt from withholding and the amount that can be paid to you because of the exemption. Telefile You must give two copies of the letter to the withholding agent and must also attach a copy of the letter to your income tax return for the tax year for which the exemption is effective. Telefile Allowance for Personal Exemption Withholding on payments for independent personal services is generally based on the amount of your compensation payment minus the value of one exemption ($3,950 for 2014). Telefile To determine the income for independent personal services performed in the United States to which the 30% (or lower treaty) rate will apply, you are allowed one personal exemption if you are not a U. Telefile S. Telefile national and are not a resident of Canada, Mexico, or South Korea. Telefile For purposes of 30% withholding, the exemption is prorated at $10. Telefile 82 a day in 2014 for the period that labor or personal services are performed in the United States. Telefile To claim an exemption from withholding on the personal exemption amount, fill out the applicable parts of Form 8233 and give it to the withholding agent. Telefile Example. Telefile Eric Johannsen, who is a resident of Country X worked under a contract with a U. Telefile S. Telefile firm (not as an employee) in the United States for 100 days during 2014 before returning to his country. Telefile He earned $6,000 for the services performed (not considered wages) in the United States. Telefile Eric is married and has three dependent children. Telefile His wife is not employed and has no income subject to U. Telefile S. Telefile tax. Telefile The amount of the personal exemption to be allowed against the income for his personal services performed within the United States in 2014 is $1,082 (100 days × $10. Telefile 82), and withholding at 30% is applied against the balance. Telefile Thus, $1,475. Telefile 40 in tax is withheld from Eric's earnings (30% of $4,918 ($6,000 − $1,082). Telefile U. Telefile S. Telefile nationals or residents of Canada, Mexico, or South Korea. Telefile   If you are a nonresident alien who is a resident of Canada, Mexico, or South Korea, or who is a national of the United States, you are subject to the same 30% withholding on your compensation for independent personal services performed in the United States. Telefile However, if you are a U. Telefile S. Telefile national or a resident of Canada or Mexico, you are allowed the same personal exemptions as U. Telefile S. Telefile citizens. Telefile For the 30% (or lower treaty) rate withholding, you can take $10. Telefile 82 per day for each allowable exemption in 2014. Telefile If you are a resident of South Korea, you are allowed personal exemptions for yourself and for your spouse and children who live with you in the United States at any time during the tax year. Telefile However, the additional exemptions for your spouse and children must be further prorated as explained in chapter 5 under Exemptions . Telefile Students and business apprentices from India. Telefile   If you are eligible for the benefits of Article 21(2) of the United States-India Income Tax Treaty, you are allowed an exemption for your spouse only if your spouse will have no gross income for 2014 and cannot be claimed as a dependent on another U. Telefile S. Telefile taxpayer's 2014 return. Telefile You are also allowed an exemption for each dependent not admitted to the United States on “F-2,” “J-2,” or “M-2” visas if they meet the same rules that apply to U. Telefile S. Telefile citizens. Telefile For the 30% (or lower treaty rate) withholding on compensation for independent personal services performed in the United States, you are allowed $10. Telefile 82 per day for each allowable exemption in 2014. Telefile Refund of Taxes Withheld in Error Multi-level marketing. Telefile   If you are a distributor for a multi-level marketing company who had taxes withheld in error, file a U. Telefile S. Telefile income tax return (Form 1040NR, Form 1040NR-EZ, or Form 1120-F) or, if a tax return has already been filed, a claim for refund (Form 1040X or amended Form 1120-F) to recover the amount withheld in error. Telefile You must also attach to the U. Telefile S. Telefile income tax return or claim for refund supporting information that includes, but is not limited to, the following items. Telefile A copy of your Form W-2, Form 1042-S, or Form 1099 to prove the amount of taxes withheld. Telefile A statement explaining why income reported on your Form W-2, Form 1042-S, or Form 1099 is not subject to U. Telefile S. Telefile taxation. Telefile A statement listing all the dates you entered and left the United States during the taxable year. Telefile If the compensation is multi-year compensation, the statement must list all the dates you entered and left the United States during each of the taxable years to which the compensation is attributable. Telefile A copy of any documents or records that show the number of days you actually were present in the United States during the years listed. Telefile A statement providing: (a) the number of days (or unit of time less than a day, if appropriate) that personal services were performed in the United States in connection with recruiting, training, and supporting your lower-tier distributors; and (b) the total number of days (or unit of time less than a day, if appropriate) that personal services were performed globally in connection with recruiting, training, and supporting your lower-tier distributors. Telefile Any further relevant document or record supporting your claim that the taxes were withheld in error. Telefile Withholding From Other Income Other income subject to 30% withholding generally includes fixed or determinable income such as interest (other than portfolio interest), dividends, pensions and annuities, and gains from certain sales and exchanges, discussed in chapter 4. Telefile It also includes 85% of social security benefits paid to nonresident aliens. Telefile Refund of taxes withheld in error on social security benefits paid to resident aliens. Telefile   Social security benefits paid to a lawful permanent resident (green card holder) are not subject to 30% withholding. Telefile For U. Telefile S. Telefile income tax purposes, green card holders continue to be resident aliens until their lawful permanent resident status under immigration laws is either taken away or is administratively or judicially determined to have been abandoned. Telefile See Green Card Test in chapter 1. Telefile If you are a green card holder and tax was withheld in error on your social security benefits because you have a foreign address, the withholding tax is refundable by the Social Security Administration (SSA) or the IRS. Telefile SSA will refund taxes erroneously withheld if the refund can be processed during the same calendar year in which the tax was withheld. Telefile If SSA cannot refund the taxes withheld, you must file a Form 1040 or 1040A with the Department of the Treasury, Internal Revenue Service Center, Austin, TX 73301 to determine if you are entitled to a refund. Telefile You must also attach the following to your Form 1040 or 1040A. Telefile A copy of Form SSA-1042S, Social Security Benefit Statement. Telefile A copy of the “green card. Telefile ” A signed declaration that includes the following statements: The SSA should not have withheld income tax from my social security benefits because I am a U. Telefile S. Telefile lawful permanent resident and my green card has been neither revoked nor administratively or judicially determined to have been abandoned. Telefile I am filing a U. Telefile S. Telefile income tax return for the tax year as a resident alien reporting all of my worldwide income. Telefile I have not claimed benefits for the tax year under an income tax treaty as the resident of a country other than the United States. Telefile Other income not subject to withholding of 30% (or lower treaty) rate. Telefile   The following income is not subject to withholding at the 30% (or lower treaty) rate if you file Form W-8ECI with the payer of the income. Telefile Income (other than compensation) that is effectively connected with your U. Telefile S. Telefile trade or business. Telefile Income from real property that you choose to treat as effectively connected with a U. Telefile S. Telefile trade or business. Telefile See Income From Real Property in chapter 4 for details about this choice. Telefile   Special rules for withholding on partnership income, scholarships, and fellowships are explained next. Telefile Tax Withheld on Partnership Income If you are a foreign partner in a U. Telefile S. Telefile or foreign partnership, the partnership will withhold tax on your share of effectively connected taxable income (ECTI) from the partnership. Telefile You may be able to reduce your ECTI subject to withholding by certain partner-level deductions. Telefile Generally, you must use Form 8804-C for this purpose. Telefile See the Instructions for Form 8804-C for more information. Telefile The withholding rate on your share of effectively connected income is generally the highest rate of tax specified under section 1 of the Code (39. Telefile 6% for 2014). Telefile However, the partnership may withhold at the highest rate that applies to a particular type of income allocable to you if you gave the partnership the appropriate documentation. Telefile Long-term capital gain is an example of a particular type of income to which the highest tax rate applies. Telefile Claim the tax withheld as a credit on your 2014 Form 1040NR. Telefile The partnership will give you a statement on Form 8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax, showing the tax withheld. Telefile A partnership that is publicly traded will withhold tax on your actual distributions of effectively connected income. Telefile In this case the partnership will give you a statement on Form 1042-S, Foreign Person's U. Telefile S. Telefile Source Income Subject to Withholding. Telefile Withholding on Scholarships and Fellowship Grants There is no withholding on a qualified scholarship received by a candidate for a degree. Telefile See chapter 3. Telefile If you are a nonresident alien student or grantee with an “F,” “J,” “M,” or “Q” visa and you receive a U. Telefile S. Telefile source grant or scholarship that is not fully exempt, the withholding agent (usually the payer of the scholarship) withholds tax at 14% (or lower treaty rate) of the taxable part of the grant or scholarship that is not a payment for services. Telefile However, if you are not a candidate for a degree and the grant does not meet certain requirements, tax will be withheld at the 30% (or lower treaty) rate. Telefile Any part of a scholarship or fellowship grant that is a payment for services is subject to graduated withholding as discussed earlier under Withholding on Wages. Telefile Alternate Withholding Procedure Your withholding agent may choose to use an alternate procedure by asking you to fill out Form W-4 and the Personal Allowances Worksheet (attached to Form W-4). Telefile Use the following instructions instead of the Form W-4 instructions to complete the worksheet. Telefile Line A. Telefile   Enter the total of the following amounts on line A. Telefile Personal exemption. Telefile   Include the prorated part of your allowable personal exemption. Telefile Figure the amount by multiplying the number of days you expect to be in the United States in 2014 by the daily exemption amount ($10. Telefile 82). Telefile Expenses. Telefile   Include expenses that will be deductible on your return. Telefile These include away-from-home expenses (meals, lodging, and transportation), certain state and local income taxes, charitable contributions, and casualty losses, discussed earlier under Itemized Deductions in chapter 5. Telefile They also include business expenses, moving expenses, and the IRA deduction discussed under Deductions in chapter 5. Telefile Nontaxable grant or scholarship. Telefile   Include the part of your grant or scholarship that is not taxable under U. Telefile S. Telefile law or under a tax treaty. Telefile Line B. Telefile   Enter -0- unless the following paragraph applies to you. Telefile   If you are a student who qualifies under Article 21(2) of the United States-India Income Tax Treaty, and you are not claiming deductions for away-from-home expenses or other itemized deductions (discussed earlier), enter the standard deduction on line B. Telefile The standard deduction amount for 2013 is $6,100. Telefile Lines C and D. Telefile   Enter -0- on both lines unless the following paragraphs apply to you. Telefile   If you are a resident of Canada, Mexico, South Korea, or a U. Telefile S. Telefile national, an additional daily exemption amount may be allowed for your spouse and each of your dependents. Telefile   If you are a resident of India who is eligible for the benefits of Article 21(2) of the United States-India Income Tax Treaty, you can claim an additional daily exemption amount for your spouse only if your spouse will have no gross income for 2014 and cannot be claimed as a dependent on another U. Telefile S. Telefile taxpayer's 2014 return. Telefile You can also claim an additional amount for each of your dependents not admitted to the United States on “F-2,” “J-2,” or “M-2” visas if they meet the same rules that apply to U. Telefile S. Telefile citizens. Telefile   Enter any additional amount for your spouse on line C. Telefile Enter any additional amount for your dependents on line D. Telefile Lines E, F, and G. Telefile   No entries should be made on lines E, F, and G. Telefile Line H. Telefile   Add the amounts on lines A through D and enter the total on line H. Telefile Form W-4. Telefile   Complete lines 1 through 4 of Form W-4. Telefile Sign and date the form and give it with the Personal Allowances Worksheet to your withholding agent. Telefile   If you file a Form W-4 to reduce or eliminate the withholding on your scholarship or grant, you must file an annual U. Telefile S. Telefile income tax return to be allowed the exemptions and deductions you claimed on that form. Telefile If you are in the United States during more than one tax year, you must attach a statement to your yearly Form W-4 indicating that you have filed a U. Telefile S. Telefile income tax return for the previous year. Telefile If you have not been in the United States long enough to be required to file a return, you must attach a statement to your Form W-4 saying you will file a U. Telefile S. Telefile income tax return when required. Telefile After the withholding agent has accepted your Form W-4, tax will be withheld on your scholarship or grant at the graduated rates that apply to wages. Telefile The gross amount of the income is reduced by the amount on line H of the worksheet and the withholding tax is figured on the remainder. Telefile You will receive a Form 1042-S from the withholding agent (usually the payer of your grant) showing the gross amount of your taxable scholarship or fellowship grant less the withholding allowance amount, the tax rate, and the amount of tax withheld. Telefile Use this form to prepare your annual U. Telefile S. Telefile income tax return. Telefile Income Entitled to Tax Treaty Benefits If a tax treaty between the United States and your country provides an exemption from, or a reduced rate of, tax for certain items of income, you should notify the payor of the income (the withholding agent) of your foreign status to claim a tax treaty withholding exemption. Telefile Generally, you do this by filing either Form W-8BEN or Form 8233 with the withholding agent. Telefile File Form W-8BEN for income that is not personal services income. Telefile File Form 8233 for personal services income as discussed next. Telefile Employees and independent contractors. Telefile   If you perform personal services as an employee or as an independent contractor and you can claim an exemption from withholding on that personal service income because of a tax treaty, give Form 8233 to each withholding agent from whom amounts will be received. Telefile   Even if you submit Form 8233, the withholding agent may have to withhold tax from your income. Telefile This is because the factors on which the treaty exemption is based may not be determinable until after the close of the tax year. Telefile In this case, you must file Form 1040NR (or Form 1040NR-EZ if you qualify) to recover any overwithheld tax and to provide the IRS with proof that you are entitled to the treaty exemption. Telefile Students, teachers, and researchers. Telefile   Students, teachers, and researchers must attach the appropriate statement shown in Appendix A (for students) or Appendix B (for teachers and researchers) at the end of this publication to the Form 8233 and give it to the withholding agent. Telefile For treaties not listed in the appendices, attach a statement in a format similar to those for other treaties. Telefile   If you received a scholarship or fellowship and personal services income from the same withholding agent, use Form 8233 to claim an exemption from withholding based on a tax treaty for both types of income. Telefile Special events and promotions. Telefile   Withholding at the full 30% rate is required for payments made to a nonresident alien or foreign corporation for gate receipts (or television or other receipts) from rock music festivals, boxing promotions, and other entertainment or sporting events, unless the withholding agent has been specifically advised otherwise by letter from the IRS. Telefile Form 13930 is used to request a reduction in withholding. Telefile Withholding may be required even if the income may be exempt from taxation by provisions of a tax treaty. Telefile One reason for this is that the partial or complete exemption is usually based on factors that cannot be determined until after the close of the tax year. Telefile You will be required to pay U. Telefile S. Telefile tax, at the time of your departure from the United States, on any income for which you incorrectly claimed a treaty exemption. Telefile For more details on treaty provisions that apply to compensation, see Publication 901. Telefile Tax Withheld on Real Property Sales If you are a nonresident alien and you dispose of a U. Telefile S. Telefile real property interest, the transferee (buyer) of the property generally must withhold a tax equal to 10% of the amount realized on the disposition. Telefile A distribution by a qualified investment entity to a nonresident alien shareholder that is treated as gain from the sale or exchange of a U. Telefile S. Telefile real property interest by the shareholder is subject to withholding at 35%. Telefile Withholding is also required on certain distributions and other transactions by domestic or foreign corporations, partnerships, trusts, and estates. Telefile These rules are covered in Publication 515. Telefile For information on the tax treatment of dispositions of U. Telefile S. Telefile real property interests, see Real Property Gain or Loss in chapter 4. Telefile If you are a partner in a domestic partnership, and the partnership disposes of a U. Telefile S. Telefile real property interest at a gain, the partnership will withhold tax on the amount of gain allocable to its foreign partners. Telefile Your share of the income and tax withheld will be reported to you on Form 8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax, or Form 1042-S, Foreign Person's U. Telefile S. Telefile Source Income Subject to Withholding (in the case of a publicly traded partnership). Telefile Withholding is not required in the following situations. Telefile The property is acquired by the buyer for use as a residence and the amount realized (sales price) is not more than $300,000. Telefile The property disposed of is an interest in a domestic corporation if any class of stock of the corporation is regularly traded on an established securities market. Telefile However, this exception does not apply to certain dispositions of substantial amounts of non-publicly traded interests in publicly traded corporations. Telefile The property disposed of is an interest in a U. Telefile S. Telefile corporation that is not regularly traded on an established market and you (the seller) give the buyer a copy of a statement issued by the corporation certifying that the interest is not a U. Telefile S. Telefile real property interest. Telefile You (the seller) give the buyer a certification stating, under penalties of perjury, that you are not a foreign person, and containing your name, U. Telefile S. Telefile taxpayer identification number, and home address. Telefile You can give the certification to a qualified substitute. Telefile The qualified substitute gives the buyer a statement, under penalties of perjury, that the certification is in the possession of the qualified substitute. Telefile For this purpose, a qualified substitute is (a) the person (including any attorney or title company) responsible for closing the transaction, other than your agent, and (b) the buyer's agent. Telefile The buyer receives a withholding certificate from the Internal Revenue Service. Telefile You give the buyer written notice that you are not required to recognize any gain or loss on the transfer because of a nonrecognition provision in the Internal Revenue Code or a provision in a U. Telefile S. Telefile tax treaty. Telefile The buyer must file a copy of the notice with the Ogden Service Center, P. Telefile O. Telefile Box 409101, Ogden, UT 84409. Telefile You must verify the notice as true and sign it under penalties of perjury. Telefile The notice must contain the following information. Telefile A statement that the notice is a notice of nonrecognition under regulation section 1. Telefile 1445-2(d)(2). Telefile Your name, taxpayer identification number, and home address. Telefile A statement that you are not required to recognize any gain or loss on the transfer. Telefile A brief description of the transfer. Telefile A brief summary of the law and facts supporting your claim that recognition of gain or loss is not required. Telefile You may not give the buyer a written notice for any of the following transfers: the sale of your main home on which you exclude gain, a like-kind exchange that does not qualify for nonrecognition treatment in its entirety, or a deferred like-kind exchange that has not been completed at the time the buyer must file Form 8288. Telefile Instead, a withholding certificate (described next) must be obtained. Telefile The amount you realize on the transfer of a U. Telefile S. Telefile real property interest is zero. Telefile The property is acquired by the United States, a U. Telefile S. Telefile state or possession, a political subdivision, or the District of Columbia. Telefile The distribution is from a domestically controlled qualified investment entity (QIE) and is treated as a distribution of a U. Telefile S. Telefile real property interest only because an interest in the entity was disposed of in an applicable wash sale transaction. Telefile For the definition of a QIE, see Qualified investment entities under Real Property Gain or Loss, earlier. Telefile See Wash sale under Real Property Gain or Loss in chapter 4. Telefile The certifications in (3) and (4) must be disregarded by the buyer if the buyer or qualified substitute has actual knowledge, or receives notice from a seller's or buyer's agent (or substitute), that they are false. Telefile This also applies to the qualified substitute's statement under (4). Telefile Withholding certificates. Telefile   The tax required to be withheld on a disposition can be reduced or eliminated under a withholding certificate issued by the IRS. Telefile Either you or the buyer can request a withholding certificate. Telefile   A withholding certificate can be issued due to any of the following. Telefile The IRS determines that reduced withholding is appropriate because either: The amount required to be withheld would be more than your maximum tax liability, or Withholding of the reduced amount would not jeopardize collection of the tax. Telefile All of your realized gain is exempt from U. Telefile S. Telefile tax. Telefile You or the buyer enters into an agreement for the payment of tax providing security for the tax liability. Telefile   Get Publication 515 and Form 8288-B for information on procedures to request a withholding certificate. Telefile Credit for tax withheld. Telefile   The buyer must report and pay over the withheld tax within 20 days after the transfer using Form 8288, U. Telefile S. Telefile Withholding Tax Return for Dispositions by Foreign Persons of U. Telefile S. Telefile Real Property Interests. Telefile This form is filed with the IRS with copies A and B of Form 8288-A, Statement of Withholding on Dispositions by Foreign Persons of U. Telefile S. Telefile Real Property Interests. Telefile Copy B of this statement will be stamped received by the IRS and returned to you (the seller) if the statement is complete and includes your taxpayer identification number (TIN). Telefile You must file Copy B with your tax return to take credit for the tax withheld. Telefile   A stamped copy of Form 8288-A will not be provided to you if your TIN is not included on that form. Telefile The IRS will send you a letter requesting the TIN and providing instructions for how to get a TIN. Telefile When you provide the IRS with a TIN, the IRS will provide you with a stamped Copy B of Form 8288-A. Telefile Social Security and Medicare Taxes If you work as an employee in the United States, you must pay social security and Medicare taxes in most cases. Telefile Your payments of these taxes contribute to your coverage under the U. Telefile S. Telefile social security system. Telefile Social security coverage provides retirement benefits, survivors and disability benefits, and medical insurance (Medicare) benefits to individuals who meet certain eligibility requirements. Telefile In most cases, the first $113,700 of taxable wages received in 2013 for services performed in the United States is subject to social security tax. Telefile All taxable wages are subject to Medicare tax. Telefile Your employer deducts these taxes from each wage payment. Telefile Your employer must deduct these taxes even if you do not expect to qualify for social security or Medicare benefits. Telefile You can claim a credit for excess social security tax on your income tax return if you have more than one employer and the amount deducted from your combined wages for 2013 is more than $7,049. Telefile 40. Telefile Use the appropriate worksheet in chapter 3 of Publication 505, Tax Withholding and Estimated Tax, to figure your credit. Telefile If any one employer deducted more than $7,049. Telefile 40, you cannot claim a credit for that amount. Telefile Ask your employer to refund the excess. Telefile If your employer does not refund the excess, you can file a claim for refund using Form 843. Telefile In general, U. Telefile S. Telefile social security and Medicare taxes apply to payments of wages for services performed as an employee in the United States, regardless of the citizenship or residence of either the employee or the employer. Telefile In limited situations, these taxes apply to wages for services performed outside the United States. Telefile Your employer should be able to tell you if social security and Medicare taxes apply to your wages. Telefile You cannot make voluntary payments if no taxes are due. Telefile Additional Medicare Tax. Telefile   Beginning in 2013, in addition to the Medicare tax, a 0. Telefile 9% Additional Medicare Tax applies to Medicare wages, Railroad Retirement Tax Act (RRTA) compensation, and self-employment income that are more than: $250,000 if married filing jointly, $125,000 if married filing separately, or $200,000 for any other filing status. Telefile   There are no special rules for nonresident aliens for purposes of Additional Medicare Tax. Telefile Wages, RRTA compensation, and self-employment income that are subject to Medicare tax will also be subject to Additional Medicare Tax if in excess of the applicable threshold. Telefile   Your employer is responsible for withholding the 0. Telefile 9% Additional Medicare Tax on Medicare wages or RRTA compensation it pays to you in excess of $200,000 in the calendar year. Telefile If you intend to file a joint return and you anticipate that you and your spouse's individual wages are not going to be more than $200,000 but your combined wages and self-employment income are going to be more than $250,000, you may want to request additional withholding on Form W-4 and/or make estimated tax payments. Telefile   If you file Form 1040NR, you must pay Additional Medicare Tax if the total of your wages and your self-employment income was more than $125,000 if married (Box 3, 4, or 5 on page 1 of Form 1040NR), or $200,000 if single or qualifying widow(er) (Box 1, 2, or 6 on page 1 of Form 1040NR). Telefile    See Form 8959, Additional Medicare Tax, and the Instructions for Form 8959 to determine whether you are required to pay Additional Medicare Tax. Telefile For more information on Additional Medicare Tax, go to IRS. Telefile gov and enter “Additional Medicare Tax” in the search box. Telefile   Self-employed individuals may also be required to pay Additional Medicare Tax. Telefile See Self-Employment Tax , later. Telefile Students and Exchange Visitors Generally, services performed by you as a nonresident alien temporarily in the United States as a nonimmigrant under subparagraph (F), (J), (M), or (Q) of section 101(a)(15) of the Immigration and Nationality Act are not covered under the social security program if the services are performed to carry out the purpose for which you were admitted to the United States. Telefile This means that there will be no withholding of social security or Medicare taxes from the pay you receive for these services. Telefile These types of services are very limited, and generally include only on-campus work, practical training, and economic hardship employment. Telefile Social security and Medicare taxes will be withheld from your pay for these services if you are considered a resident alien as discussed in chapter 1, even though your nonimmigrant classification (“F,” “J,” “M,” or “Q”) remains the same. Telefile Services performed by a spouse or minor child of nonimmigrant aliens with the classification of “F-2,” “J-2,” “M-2,” and “Q-3” are covered under social security. Telefile Nonresident Alien Students If you are a nonresident alien temporarily admitted to the United States as a student, you generally are not permitted to work for a wage or salary or to engage in business while you are in the United States. Telefile In some cases, a student admitted to the United States in “F-1,” “M-1,” or “J-1” status is granted permission to work. Telefile Social security and Medicare taxes are not withheld from pay for the work unless the student is considered a resident alien. Telefile Any student who is enrolled and regularly attending classes at a school may be exempt from social security and Medicare taxes on pay for services performed for that school. Telefile The U. Telefile S. Telefile Citizenship and Immigration Services (USCIS) permits on-campus work for students in “F-1” status if it does not displace a U. Telefile S. Telefile resident. Telefile On-campus work means work performed on the school's premises. Telefile On-campus work includes work performed at an off-campus location that is educationally affiliated with the school. Telefile On-campus work under the terms of a scholarship, fellowship, or assistantship is considered part of the academic program of a student taking a full course of study and is permitted by the USCIS. Telefile Social security and Medicare taxes are not withheld from pay for this work unless the student is considered a resident alien. Telefile If services performed by a nonresident alien student are not considered as performed to carry out the purpose for which the student was admitted to the United States, social security and Medicare taxes will be withheld from pay for the services unless the pay is exempt under the Internal Revenue Code. Telefile Exchange Visitors Exchange visitors are temporarily admitted to the United States under section 101(a)(15)(J) of the Immigration and Nationality Act. Telefile Social security and Medicare taxes are not withheld on pay for services of an exchange visitor who has been given permission to work and who possesses or obtains a letter of authorization from the sponsor unless the exchange visitor is considered a resident alien. Telefile If services performed by an exchange visitor are not considered as performed to carry out the purpose for which the visitor was admitted to the United States, social security and Medicare taxes are withheld from pay for the services unless the pay is exempt under the Internal Revenue Code. Telefile Nonresident aliens temporarily admitted to the United States as participants in international cultural exchange programs under section 101(a)(15)(Q) of the Immigration and Nationality Act may be exempt from social security and Medicare taxes. Telefile The employer must be the petitioner through whom the alien obtained the “Q” visa. Telefile Social security and Medicare taxes are not withheld from pay for this work unless the alien is considered a resident alien. Telefile Refund of Taxes Withheld in Error If social security or Medicare taxes were withheld in error from pay that is not subject to these taxes, contact the employer who withheld the taxes for a refund. Telefile If you are unable to get a full refund of the amount from your employer, file a claim for refund with the Internal Revenue Service on Form 843, Claim for Refund and Request for Abatement. Telefile Attach the following items to Form 843. Telefile A copy of your Form W-2 to prove the amount of social security and Medicare taxes withheld. Telefile A copy of your visa. Telefile Form I-94 (or other documentation showing your dates of arrival or departure). Telefile If you have an F-1 visa, documentation showing permission to work in the U. Telefile S. Telefile If you have a J-1 visa, documentation showing permission to work in the U. Telefile S. Telefile If you are engaged in optional practical training or employment due to severe economic necessity, documentation showing permission to work in the U. Telefile S. Telefile A statement from your employer indicating the amount of the reimbursement your employer provided and the amount of the credit or refund your employer claimed or you authorized your employer to claim. Telefile If you cannot obtain this statement from your employer, you must provide this information on your own statement and explain why you are not attaching a statement from your employer or on Form 8316 claiming your employer will not issue the refund. Telefile If you were exempt from social security and Medicare tax for only part of the year, pay statements showing the tax paid during the period you were exempt. Telefile File Form 843 (with attachments) with the Department of the Treasury, Internal Revenue Service Center, Ogden, UT 84201-0038. Telefile Do not use Form 843 to request a refund of Additional Medicare Tax. Telefile If Additional Medicare Tax was withheld from your pay in error, you can claim a credit for any withheld Additional Medicare Tax against the total tax liability shown on your tax return by filing Form 8959 with Form 1040 or 1040NR. Telefile If Additional Medicare Tax was withheld in error in a prior year for which you already filed Form 1040 or 1040NR, you must file Form 1040X, Amended U. Telefile S. Telefile Individual Income Tax Return, for the prior year in which the wages or compensation were originally received to recover the Additional Medicare Tax withheld in error. Telefile See the Instructions for Form 1040X. Telefile Agricultural Workers Agricultural workers temporarily admitted into the United States on H-2A visas are exempt from social security and Medicare taxes on compensation paid to them for services performed in connection with the H-2A visa. Telefile You can find more information about not having tax withheld at www. Telefile irs. Telefile gov/Individuals/International-Taxpayers/Foreign-Agricultural-Workers. Telefile Self-Employment Tax Self-employment tax is the social security and Medicare taxes for individuals who are self-employed. Telefile Nonresident aliens are not subject to self-employment tax unless an international social security agreement in effect determines that they are covered under the U. Telefile S. Telefile social security system. Telefile Residents of the U. Telefile S. Telefile Virgin Islands, Puerto Rico, Guam, the Commonwealth of the Northern Mariana Islands, or American Samoa are considered U. Telefile S. Telefile residents for this purpose and are subject to the self-employment tax. Telefile Resident aliens must pay self-employment tax under the same rules that apply to U. Telefile S. Telefile citizens. Telefile However, a resident alien employed by an international organization, a foreign government, or a wholly-owned instrumentality of a foreign government is not subject to the self-employment tax on income earned in the United States. Telefile Self-employment income you receive while you are a resident alien is subject to self-employment tax even if it was paid for services you performed as a nonresident alien. Telefile Example. Telefile Bill Jones is an author engaged in the business of writing books. Telefile Bill had several books published in a foreign country while he was a citizen and resident of that country. Telefile During 2013, Bill entered the United States as a resident alien. Telefile After becoming a U. Telefile S. Telefile resident, he continued to receive royalties from his foreign publisher. Telefile Bill reports his income and expenses on the cash basis (he reports income on his tax return when received and deducts expenses when paid). Telefile Bill's 2013 self-employment income includes the royalties received after he became a U. Telefile S. Telefile resident even though the books were published while he was a nonresident alien. Telefile This royalty income is subject to self-employment tax. Telefile Reporting self-employment tax. Telefile   Use Schedule SE (Form 1040) to report and figure your self-employment tax. Telefile Then enter the tax on Form 1040, line 56, or Form 1040NR, line 54. Telefile Attach Schedule SE to Form 1040 or Form 1040NR. Telefile Additional Medicare Tax. Telefile   Self-employed individuals must pay a 0. Telefile 9% Additional Medicare Tax on self-employment income that exceeds one of the following threshold amounts (based on your filing status): Married filing jointly — $250,000; Married filing separately — $125,000; Single, Head of household, or Qualifying widow(er) — $200,000. Telefile   If you have both wages and self-employment income, the threshold amount for applying the Additional Medicare Tax on the self-employment income is reduced (but not below zero) by the amount of wages subject to Additional Medicare Tax. Telefile A self-employment loss should not be considered for purposes of this tax   If you file Form 1040NR, you must pay Additional Medicare Tax if the total of your wages and your self-employment income was more than $125,000 if married (Box 3, 4, or 5 on page 1 of Form 1040NR), or $200,000 if single or qualifying widow(er) (Box 1, 2, or 6 on page 1 of Form 1040NR). Telefile   See Form 8959, Additional Medicare Tax, and the Instructions for Form 8959 to determine whether you are required to pay Additional Medicare Tax. Telefile For more information on Additional Medicare Tax, go to IRS. Telefile gov and enter “Additional Medicare Tax” in the search box. Telefile Deduction for employer-equivalent portion of self-employment tax. Telefile   If you must pay self-employment tax, you can deduct a portion of the self-employment tax paid in figuring your adjusted gross income. Telefile This deduction is figured on Schedule SE (Form 1040). Telefile Note. Telefile No portion of the Additional Medicare Tax is deductible for self-employment tax. Telefile More information. Telefile   Get Publication 334, Tax Guide for Small Business, for more information about self-employment tax. Telefile International Social Security Agreements The United States has entered into social security agreements with foreign countries to coordinate social security coverage and taxation of workers employed for part or all of their working careers in one of the countries. Telefile These agreements are commonly referred to as totalization agreements. Telefile Under these agreements, dual coverage and dual contributions (taxes) for the same work are eliminated. Telefile The agreements generally make sure that social security taxes (including self-employment tax) are paid only to one country. Telefile Agreements are in effect with the following countries. Telefile Australia. Telefile Austria. Telefile Belgium. Telefile Canada. Telefile Chile. Telefile Czech Republic. Telefile Denmark. Telefile Finland. Telefile France. Telefile Germany. Telefile Greece. Telefile Ireland. Telefile Italy. Telefile Japan. Telefile Korea, South. Telefile Luxembourg. Telefile The Netherlands. Telefile Norway. Telefile Poland. Telefile Portugal. Telefile Spain. Telefile Sweden. Telefile Switzerland. Telefile The United Kingdom. Telefile Agreements with other countries are expected to enter into force in the future. Telefile Employees. Telefile   Generally, under these agreements, you are subject to social security taxes only in the country where you are working. Telefile However, if you are temporarily sent to work for the same employer in the United States and your pay would normally be subject to social security taxes in both countries, most agreements provide that you remain covered only by the social security system of the country from which you were sent. Telefile You can get more information on any agreement by contacting the U. Telefile S. Telefile Social Security Administration at the address given later. Telefile If you have access to the Internet, you can get more information at www. Telefile socialsecurity. Telefile gov/international. Telefile   To establish that your pay is subject only to foreign social security taxes and is exempt from U. Telefile S. Telefile social security taxes (including the Medicare tax) under an agreement, you or your employer should request a certificate of coverage from the appropriate agency of the foreign country. Telefile This will usually be the same agency to which you or your employer pays your foreign social security taxes. Telefile The foreign agency will be able to tell you what information is needed for them to issue the certificate. Telefile Your employer should keep a copy of the certificate because it may be needed to show why you are exempt from U. Telefile S. Telefile social security taxes. Telefile Only wages paid on or after the effective date of the agreement can be exempt from U. Telefile S. Telefile social security taxes. Telefile    Some of the countries with which the United States has agreements will not issue certificates of coverage. Telefile In this case, either you or your employer should request a statement that your wages are not covered by the U. Telefile S. Telefile social security system. Telefile Request the statement from the following address. Telefile U. Telefile S. Telefile Social Security Administration Office of International Programs P. Telefile O. Telefile Box 17741 Baltimore, MD 21235-7741 Self-employed individuals. Telefile   Under most agreements, self-employed individuals are covered by the social security system of the country where they reside. Telefile However, under some agreements, you may be exempt from U. Telefile S. Telefile self-employment tax if you temporarily transfer your business activity to or from the United States. Telefile   If you believe that your self-employment income is subject only to U. Telefile S. Telefile self-employment tax and is exempt from foreign social security taxes, request a certificate of coverage from the U. Telefile S. Telefile Social Security Administration at the address given earlier. Telefile This certificate will establish your exemption from foreign social security taxes. Telefile   To establish that your self-employment income is subject only to foreign social security taxes and is exempt from U. Telefile S. Telefile self-employment tax, request a certificate of coverage from the appropriate agency of the foreign country. Telefile If the foreign country will not issue the certificate, you should request a statement that your income is not covered by the U. Telefile S. Telefile social security system. Telefile Request it from the U. Telefile S. Telefile Social Security Administration at the address given earlier. Telefile Attach a photocopy of either statement to Form 1040 each year you are exempt. Telefile Also print “Exempt, see attached statement” on the line for self-employment tax. Telefile Estimated Tax Form 1040-ES (NR) You may have income from which no U. Telefile S. Telefile income tax is withheld. Telefile Or the amount of tax withheld may be less than the income tax you estimate you will owe at the end of the year. Telefile If so, you may have to pay estimated tax. Telefile Generally, you must make estimated tax payments for 2014 if you expect to owe at least $1,000 in tax and you expect your withholding and certain refundable credits to be less than the smaller of: 90% of the tax to be shown on your 2014 income tax return, or 100% of the tax shown on your 2013 income tax return (if your 2013 return covered all 12 months of the year). Telefile If your adjusted gross income for 2013 was more than $150,000 ($75,000 if your filing status for 2014 is married filing separately), substitute 110% for 100% in (2) above if you are not a farmer or fisherman. Telefile Item (2) does not apply if you did not file a 2013 return. Telefile A nonresident alien should use Form 1040-ES (NR) to figure and pay estimated tax. Telefile If you pay by check, make it payable to the "United States Treasury. Telefile " How to estimate your tax for 2014. Telefile   If you filed a 2013 return on Form 1040NR or Form 1040NR-EZ and expect your income, number of exemptions, and total deductions for 2014 to be nearly the same, you should use your 2013 return as a guide to complete the Estimated Tax Worksheet in the Form 1040-ES (NR) instructions. Telefile If you did not file a return for 2013, or if your income, exemptions, deductions, or credits will be different for 2014, you must estimate these amounts. Telefile Figure your estimated tax liability using the Tax Rate Schedule in the 2014 Form 1040-ES (NR) instructions for your filing status. Telefile Note. Telefile If you expect to be a resident of Puerto Rico during the entire year, use Form 1040-ES or Formulario 1040-ES (PR). Telefile When to pay estimated tax. Telefile   Make your first estimated tax payment by the due date for filing the previous year's Form 1040NR or Form 1040NR-EZ. Telefile If you have wages subject to the same withholding rules that apply to U. Telefile S. Telefile citizens, you must file Form 1040NR or Form 1040NR-EZ and make your first estimated tax payment by April 15, 2014. Telefile If you do not have wages subject to withholding, file your income tax return and make your first estimated tax payment by June 16, 2014. Telefile   If your first estimated tax payment is due April 15, 2014, you can pay your estimated tax in full at that time or in four equal installments by the dates shown next. Telefile 1st installment April 15, 2014 2nd installment June 16, 2014 3rd installment Sept. Telefile 15, 2014 4th installment Jan. Telefile 15, 2015 If your first payment is not due until June 16, 2014, you can pay your estimated tax in full at that time or: ½ of your estimated tax by June 16, 2014, 1/4 of the tax by September 15, 2014, and 1/4 by January 15, 2015. Telefile    You do not have to make the payment due January 15, 2015, if you file your 2014 Form 1040NR or 1040NR-EZ by February 2, 2015, and pay the entire balance due with your return. Telefile Fiscal year. Telefile   If your return is not on a calendar year basis, your due dates are the 15th day of the 4th, 6th, and 9th months of your fiscal year, and the 1st month of the following fiscal year. Telefile If any date falls on a Saturday, Sunday, or legal holiday, use the next day that is not a Saturday, Sunday, or legal holiday. Telefile Changes in income, deductions, or exemptions. Telefile   Even if you are not required to make an estimated tax payment in April or June, your circumstances may change so that you will have to make estimated tax payments later. Telefile This can happen if you receive additional income or if any of your deductions are reduced or eliminated. Telefile If so, see the instructions for Form 1040-ES (NR) and Publication 505 for information on figuring your estimated tax. Telefile Amended estimated tax. Telefile   If, after you have made estimated tax payments, you find your estimated tax is substantially increased or decreased because of a change in your income or exemptions, you should adjust your remaining estimated tax payments. Telefile To do this, see the instructions for Form 1040-ES (NR) and Publication 505. Telefile Penalty for failure to pay estimated income tax. Telefile   You will be subject to a penalty for underpayment of installments of estimated tax except in certain situations. Telefile These situations are explained on Form 2210, Underpayment of Estimated Tax by Individuals, Estates, and Trusts. Telefile Prev  Up  Next   Home   More Online Publications