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

Vita Income Tax Bakersfield Ca

H&r Block Free Online Tax FilingAmend My Tax Return Online2012 EfileTurbotax Free State Efile CouponI Need To File My 2010 Tax ReturnCheapest State Tax ReturnIncome Taxes Free1040x HelpFiling 2012 Tax ReturnHow Do I Efile My State TaxesFree 1040x Software1040ez For 2010How To File Amended Tax Return For 2012File Tax ReturnTaxcut 2011Can I Still File My 2012 Taxes ElectronicallyH&r Free TaxTax UnemployedI Still Need To File My 2012 TaxesFree Tax Preparation For Low Income2012 State Tax1040ez Form For 2014Filing Taxes 2014Irs Tax AmendmentAmending A Tax Return1040ez Forms1040ez FileHelp Filling Out 1040xFile State Federal Taxes FreeState Income Tax RatesFreefillableformsFree Downloadable Irs Tax FormsFree 1040x Tax FormsIrs FormsAmend Tax Return For FreeFree Federal Tax FormsAmend Federal Tax Return 20122012 Irs Form 1040ez1040ez Tax Form 2013Www Irs Gov File

Vita Income Tax Bakersfield Ca

Vita income tax bakersfield ca 4. Vita income tax bakersfield ca   Unrelated Business Taxable Income Table of Contents IncomeExclusions Dues of Agricultural Organizations and Business Leagues DeductionsDirectly Connected Exploitation of Exempt Activity—Advertising Sales Modifications Partnership Income or Loss S Corporation Income or Loss Special Rules for Foreign Organizations Special Rules for Social Clubs, VEBAs, SUBs, and GLSOsIncome that is set aside. Vita income tax bakersfield ca Special Rules for Veterans' Organizations Income From Controlled OrganizationsAddition to tax for valuation misstatements. Vita income tax bakersfield ca Net unrelated income. Vita income tax bakersfield ca Net unrelated loss. Vita income tax bakersfield ca Control. Vita income tax bakersfield ca Income from property financed with qualified 501(c)(3) bonds. Vita income tax bakersfield ca Disposition of property received from taxable subsidiary and used in unrelated business. Vita income tax bakersfield ca Income From Debt-Financed Property Debt-Financed PropertyAcquisition Indebtedness Computation of Debt-Financed Income Deductions for Debt-Financed Property Allocation Rules How to Get Tax Help The term “unrelated business taxable income” generally means the gross income derived from any unrelated trade or business regularly conducted by the exempt organization, less the deductions directly connected with carrying on the trade or business. Vita income tax bakersfield ca If an organization regularly carries on two or more unrelated business activities, its unrelated business taxable income is the total of gross income from all such activities less the total allowable deductions attributable to all the activities. Vita income tax bakersfield ca In computing unrelated business taxable income, gross income and deductions are subject to the modifications and special rules explained in this chapter. Vita income tax bakersfield ca Whether a particular item of income or expense falls within any of these modifications or special rules must be determined by all the facts and circumstances in each specific case. Vita income tax bakersfield ca For example, if the organization received a payment termed rent that is in fact a return of profits by a person operating the property for the benefit of the organization, or that is a share of the profits retained by the organization as a partner or joint venturer, the payment is not within the income exclusion for rents, discussed later under Exclusions. Vita income tax bakersfield ca Income Generally, unrelated business income is taxable, but there are exclusions and special rules that must be considered when figuring the income. Vita income tax bakersfield ca Exclusions The following types of income (and deductions directly connected with the income) are generally excluded when figuring unrelated business taxable income. Vita income tax bakersfield ca Dividends, interest, annuities and other investment income. Vita income tax bakersfield ca   All dividends, interest, annuities, payments with respect to securities loans, income from notional principal contracts, and other income from an exempt organization's ordinary and routine investments that the IRS determines are substantially similar to these types of income are excluded in computing unrelated business taxable income. Vita income tax bakersfield ca Exception for insurance activity income of a controlled foreign corporation. Vita income tax bakersfield ca   This exclusion does not apply to income from certain insurance activities of an exempt organization's controlled foreign corporation. Vita income tax bakersfield ca The income is not excludable dividend income, but instead is unrelated business taxable income to the extent it would be so treated if the exempt organization had earned it directly. Vita income tax bakersfield ca Certain exceptions to this rule apply. Vita income tax bakersfield ca For more information, see section 512(b)(17). Vita income tax bakersfield ca Other exceptions. Vita income tax bakersfield ca   This exclusion does not apply to unrelated debt-financed income (discussed under Income From Debt-Financed Property, later), to interest or annuities received from a controlled corporation (discussed under Income From Controlled Organizations, later). Vita income tax bakersfield ca Income from lending securities. Vita income tax bakersfield ca   Payments received with respect to a security loan are excluded in computing unrelated business taxable income only if the loan is made under an agreement that:    Provides for the return to the exempt organization of securities identical to the securities loaned, Requires payments to the organization of amounts equivalent to all interest, dividends, and other distributions that the owner of the securities is entitled to receive during the period of the loan, Does not reduce the organization's risk of loss or opportunity for gain on the securities, Contains reasonable procedures to implement the obligation of the borrower to furnish collateral to the organization with a fair market value each business day during the period of the loan in an amount not less than the fair market value of the securities at the close of the preceding business day, and Permits the organization to terminate the loan upon notice of not more than 5 business days. Vita income tax bakersfield ca   Payments with respect to securities loans include: Amounts in respect of dividends, interest, and other distributions, Fees based on the period of time the loan is in effect and the fair market value of the security during that period, Income from collateral security for the loan, and Income from the investment of collateral security. Vita income tax bakersfield ca The payments are considered to be from the securities loaned and not from collateral security or the investment of collateral security from the loans. Vita income tax bakersfield ca Any deductions that are directly connected with collateral security for the loan, or with the investment of collateral security, are considered deductions that are directly connected with the securities loaned. Vita income tax bakersfield ca Royalties. Vita income tax bakersfield ca   Royalties, including overriding royalties, are excluded in computing unrelated business taxable income. Vita income tax bakersfield ca   To be considered a royalty, a payment must relate to the use of a valuable right. Vita income tax bakersfield ca Payments for trademarks, trade names, or copyrights are ordinarily considered royalties. Vita income tax bakersfield ca Similarly, payments for the use of a professional athlete's name, photograph, likeness, or facsimile signature are ordinarily considered royalties. Vita income tax bakersfield ca However, royalties do not include payments for personal services. Vita income tax bakersfield ca Therefore, payments for personal appearances and interviews are not excluded as royalties and must be included in figuring unrelated business taxable income. Vita income tax bakersfield ca   Unrelated business taxable income does not include royalty income received from licensees by an exempt organization that is the legal and beneficial owner of patents assigned to it by inventors for specified percentages of future royalties. Vita income tax bakersfield ca   Mineral royalties are excluded whether measured by production or by gross or taxable income from the mineral property. Vita income tax bakersfield ca However, the exclusion does not apply to royalties that stem from an arrangement whereby the organization owns a working interest in a mineral property and is liable for its share of the development and operating costs under the terms of its agreement with the operator of the property. Vita income tax bakersfield ca To the extent they are not treated as loans under section 636 (relating to income tax treatment of mineral production payments), payments for mineral production are treated in the same manner as royalty payments for the purpose of computing unrelated business taxable income. Vita income tax bakersfield ca To the extent they are treated as loans, any payments for production that are the equivalent of interest are treated as interest and are excluded. Vita income tax bakersfield ca Exceptions. Vita income tax bakersfield ca   This exclusion does not apply to debt-financed income (discussed under Income From Debt-Financed Property, later) or to royalties received from a controlled corporation (discussed under Income From Controlled Organizations, later). Vita income tax bakersfield ca Rents. Vita income tax bakersfield ca   Rents from real property, including elevators and escalators, are excluded in computing unrelated business taxable income. Vita income tax bakersfield ca Rents from personal property are not excluded. Vita income tax bakersfield ca However, special rules apply to “mixed leases” of both real and personal property. Vita income tax bakersfield ca Mixed leases. Vita income tax bakersfield ca   In a mixed lease, all of the rents are excluded if the rents attributable to the personal property are not more than 10% of the total rents under the lease, as determined when the personal property is first placed in service by the lessee. Vita income tax bakersfield ca If the rents attributable to personal property are more than 10% but not more than 50% of the total rents, only the rents attributable to the real property are excluded. Vita income tax bakersfield ca If the rents attributable to the personal property are more than 50% of the total rents, none of the rents are excludable. Vita income tax bakersfield ca   Property is placed in service when the lessee first may use it under the terms of a lease. Vita income tax bakersfield ca For example, property subject to a lease entered into on November 1, for a term starting on January 1 of the next year, is considered placed in service on January 1, regardless of when the lessee first actually uses it. Vita income tax bakersfield ca   If separate leases are entered into for real and personal property and the properties have an integrated use (for example, one or more leases for real property and another lease or leases for personal property to be used on the real property), all the leases will be considered as one lease. Vita income tax bakersfield ca   The rent attributable to the personal property must be recomputed, and the treatment of the rents must be redetermined, if: The rent attributable to all the leased personal property increases by 100% or more because additional or substitute personal property is placed in service, or The lease is modified to change the rent charged (whether or not the amount of rented personal property changes). Vita income tax bakersfield ca Any change in the treatment of rents resulting from the recomputation is effective only for the period beginning with the event that caused the recomputation. Vita income tax bakersfield ca Exception for rents based on net profit. Vita income tax bakersfield ca   The exclusion for rents does not apply if the amount of the rent depends on the income or profits derived by any person from the leased property, other than an amount based on a fixed percentage of the gross receipts or sales. Vita income tax bakersfield ca Exception for income from personal services. Vita income tax bakersfield ca   Payment for occupying space when personal services are also rendered to the occupant does not constitute rent from real property. Vita income tax bakersfield ca Therefore, the exclusion does not apply to transactions such as renting hotel rooms, rooms in boarding houses or tourist homes, and space in parking lots or warehouses. Vita income tax bakersfield ca Other exceptions. Vita income tax bakersfield ca   This exclusion does not apply to unrelated debt-financed income (discussed under Income From Debt-Financed Property, later), or to interest, annuities, royalties and rents received from a controlled corporation (discussed under Income From Controlled Organizations, later), investment income (dividends, interest, rents, etc. Vita income tax bakersfield ca ) received by organizations described in sections 501(c)(7), 501(c)(9), 501(c)(17), and 501(c)(20). Vita income tax bakersfield ca See Special Rules for Social Clubs, VEBAs, SUBs, and GLSOs, discussed later for more information. Vita income tax bakersfield ca Income from research. Vita income tax bakersfield ca   A tax-exempt organization may exclude income from research grants or contracts from unrelated business taxable income. Vita income tax bakersfield ca However, the extent of the exclusion depends on the nature of the organization and the type of research. Vita income tax bakersfield ca   Income from research for the United States, any of its agencies or instrumentalities, or a state or any of its political subdivisions is excluded when computing unrelated business taxable income. Vita income tax bakersfield ca   For a college, university, or hospital, all income from research, whether fundamental or applied, is excluded in computing unrelated business taxable income. Vita income tax bakersfield ca   When an organization is operated primarily to conduct fundamental research (as distinguished from applied research) and the results are freely available to the general public, all income from research performed for any person is excluded in computing unrelated business taxable income. Vita income tax bakersfield ca   The term research, for this purpose, does not include activities of a type normally conducted as an incident to commercial or industrial operations, such as testing or inspecting materials or products, or designing or constructing equipment, buildings, etc. Vita income tax bakersfield ca In addition, the term fundamental research does not include research conducted for the primary purpose of commercial or industrial application. Vita income tax bakersfield ca Gains and losses from disposition of property. Vita income tax bakersfield ca   Also excluded from unrelated business taxable income are gains or losses from the sale, exchange, or other disposition of property other than: Stock in trade or other property of a kind that would properly be includable in inventory if on hand at the close of the tax year, Property held primarily for sale to customers in the ordinary course of a trade or business, or Cutting of timber that an organization has elected to consider as a sale or exchange of the timber. Vita income tax bakersfield ca   It should be noted that the last exception relates only to cut timber. Vita income tax bakersfield ca The sale, exchange, or other disposition of standing timber is excluded from the computation of unrelated business income, unless it constitutes property held for sale to customers in the ordinary course of business. Vita income tax bakersfield ca Lapse or termination of options. Vita income tax bakersfield ca   Any gain from the lapse or termination of options to buy or sell securities is excluded from unrelated business taxable income. Vita income tax bakersfield ca The exclusion applies only if the option is written in connection with the exempt organization's investment activities. Vita income tax bakersfield ca Therefore, this exclusion is not available if the organization is engaged in the trade or business of writing options or the options are held by the organization as inventory or for sale to customers in the ordinary course of a trade or business. Vita income tax bakersfield ca Exception. Vita income tax bakersfield ca   This exclusion does not apply to unrelated debt-financed income, discussed later under Income From Debt-Financed Property. Vita income tax bakersfield ca Gain or loss on disposition of certain brownfield property. Vita income tax bakersfield ca   Gain or loss from the qualifying sale, exchange, or other disposition of a qualifying brownfield property (as defined in section 512(b)(19)(C)), which was acquired by the organization after December 31, 2005 and before January 1, 2011, is excluded from unrelated business taxable income and is excepted from the debt-financed rules for such property. Vita income tax bakersfield ca See sections 512(b)(19) and 514(b)(1)(E). Vita income tax bakersfield ca Income from services provided under federal license. Vita income tax bakersfield ca   There is a further exclusion from unrelated business taxable income of income from a trade or business conducted by a religious order or by an educational organization maintained by the order. Vita income tax bakersfield ca   This exclusion applies only if the following requirements are met. Vita income tax bakersfield ca The trade or business must have been operated by the order or by the institution before May 27, 1959. Vita income tax bakersfield ca The trade or business must provide services under a license issued by a federal regulatory agency. Vita income tax bakersfield ca More than 90% of the net income from the business for the tax year must be devoted to religious, charitable, or educational purposes that constitute the basis for the religious order's exemption. Vita income tax bakersfield ca The rates or other charges for these services must be fully competitive with the rates or other charges of similar taxable businesses. Vita income tax bakersfield ca Rates or other charges for these services will be considered as fully competitive if they are neither materially higher nor materially lower than the rates charged by similar businesses operating in the same general area. Vita income tax bakersfield ca Exception. Vita income tax bakersfield ca    This exclusion does not apply to unrelated debt-financed income (discussed under Income From Debt-Financed Property, later). Vita income tax bakersfield ca Member income of mutual or cooperative electric companies. Vita income tax bakersfield ca   Income of a mutual or cooperative electric company described in section 501(c)(12) which is treated as member income under subparagraph (H) of that section is excluded from unrelated business taxable income. Vita income tax bakersfield ca Dues of Agricultural Organizations and Business Leagues Dues received from associate members by organizations exempt under section 501(c)(5) or section 501(c)(6) may be treated as gross income from an unrelated trade or business if the associate member category exists for the principal purpose of producing unrelated business income. Vita income tax bakersfield ca For example, if an organization creates an associate member category solely to allow associate members to purchase insurance through the organization, the associate member dues may be unrelated business income. Vita income tax bakersfield ca Exception. Vita income tax bakersfield ca   Associate member dues received by an agricultural or horticultural organization are not treated as gross income from an unrelated trade or business, regardless of their purpose, if they are not more than the annual limit. Vita income tax bakersfield ca The limit on dues paid by an associate member is $148 for 2011. Vita income tax bakersfield ca   If the required annual dues are more than the limit, the entire amount is treated as income from an unrelated business unless the associate member category was formed or availed of for the principal purpose of furthering the organization's exempt purposes. Vita income tax bakersfield ca Deductions To qualify as allowable deductions in computing unrelated business taxable income, the expenses, depreciation, and similar items generally must be allowable income tax deductions that are directly connected with carrying on an unrelated trade or business. Vita income tax bakersfield ca They cannot be directly connected with excluded income. Vita income tax bakersfield ca For an exception to the “directly connected” requirement, see Charitable contributions deduction, under Modifications, later. Vita income tax bakersfield ca Directly Connected To be directly connected with the conduct of an unrelated business, deductions must have a proximate and primary relationship to carrying on that business. Vita income tax bakersfield ca For an exception, see Expenses attributable to exploitation of exempt activities, later. Vita income tax bakersfield ca Expenses attributable solely to unrelated business. Vita income tax bakersfield ca   Expenses, depreciation, and similar items attributable solely to the conduct of an unrelated business are proximately and primarily related to that business and qualify for deduction to the extent that they are otherwise allowable income tax deductions. Vita income tax bakersfield ca   For example, salaries of personnel employed full-time to conduct the unrelated business and depreciation of a building used entirely in the conduct of that business are deductible to the extent otherwise allowable. Vita income tax bakersfield ca Expenses attributable to dual use of facilities or personnel. Vita income tax bakersfield ca   When facilities or personnel are used both to conduct exempt functions and to conduct an unrelated trade or business, expenses, depreciation, and similar items attributable to the facilities or personnel must be allocated between the two uses on a reasonable basis. Vita income tax bakersfield ca The part of an item allocated to the unrelated trade or business is proximately and primarily related to that business and is allowable as a deduction in computing unrelated business taxable income if the expense is otherwise an allowable income tax deduction. Vita income tax bakersfield ca Example 1. Vita income tax bakersfield ca A school recognized as a tax-exempt organization contracts with an individual to conduct a summer tennis camp. Vita income tax bakersfield ca The school provides the tennis courts, housing, and dining facilities. Vita income tax bakersfield ca The contracted individual hires the instructors, recruits campers, and provides supervision. Vita income tax bakersfield ca The income the school receives from this activity is from a dual use of the facilities and personnel. Vita income tax bakersfield ca The school, in computing its unrelated business taxable income, may deduct an allocable part of the expenses attributable to the facilities and personnel. Vita income tax bakersfield ca Example 2. Vita income tax bakersfield ca An exempt organization with gross income from an unrelated trade or business pays its president $90,000 a year. Vita income tax bakersfield ca The president devotes approximately 10% of his time to the unrelated business. Vita income tax bakersfield ca To figure the organization's unrelated business taxable income, a deduction of $9,000 ($90,000 × 10%) is allowed for the salary paid to its president. Vita income tax bakersfield ca Expenses attributable to exploitation of exempt activities. Vita income tax bakersfield ca   Generally, expenses, depreciation, and similar items attributable to the conduct of an exempt activity are not deductible in computing unrelated business taxable income from an unrelated trade or business that exploits the exempt activity. Vita income tax bakersfield ca (See Exploitation of exempt functions under Not substantially related in chapter 3. Vita income tax bakersfield ca ) This is because they do not have a proximate and primary relationship to the unrelated trade or business, and therefore, they do not qualify as directly connected with that business. Vita income tax bakersfield ca Exception. Vita income tax bakersfield ca   Expenses, depreciation, and similar items may be treated as directly connected with the conduct of the unrelated business if all the following statements are true. Vita income tax bakersfield ca The unrelated business exploits the exempt activity. Vita income tax bakersfield ca The unrelated business is a type normally conducted for profit by taxable organizations. Vita income tax bakersfield ca The exempt activity is a type normally conducted by taxable organizations in carrying on that type of business. Vita income tax bakersfield ca The amount treated as directly connected is the smaller of: The excess of these expenses, depreciation, and similar items over the income from, or attributable to, the exempt activity; or The gross unrelated business income reduced by all other expenses, depreciation, and other items that are actually directly connected. Vita income tax bakersfield ca   The application of these rules to an advertising activity that exploits an exempt publishing activity is explained next. Vita income tax bakersfield ca Exploitation of Exempt Activity—Advertising Sales The sale of advertising in a periodical of an exempt organization that contains editorial material related to the accomplishment of the organization's exempt purpose is an unrelated business that exploits an exempt activity, the circulation and readership of the periodical. Vita income tax bakersfield ca Therefore, in addition to direct advertising costs, exempt activity costs (expenses, depreciation, and similar expenses attributable to the production and distribution of the editorial or readership content) can be treated as directly connected with the conduct of the advertising activity. Vita income tax bakersfield ca (See Expenses attributable to exploitation of exempt activities under Directly Connected, earlier. Vita income tax bakersfield ca ) Figuring unrelated business taxable income (UBTI). Vita income tax bakersfield ca   The UBTI of an advertising activity is the amount shown in the following chart. Vita income tax bakersfield ca IF gross advertising income is . Vita income tax bakersfield ca . Vita income tax bakersfield ca . Vita income tax bakersfield ca THEN UBTI is . Vita income tax bakersfield ca . Vita income tax bakersfield ca . Vita income tax bakersfield ca More than direct advertising costs The excess advertising income, reduced (but not below zero) by the excess, if any, of readership costs over circulation income. Vita income tax bakersfield ca Equal to or less than direct advertising costs Zero. Vita income tax bakersfield ca   • Circulation income and readership costs are not taken into account. Vita income tax bakersfield ca   • Any excess advertising costs reduce (but not below zero) UBTI from any other unrelated business activity. Vita income tax bakersfield ca   The terms used in the chart are explained in the following discussions. Vita income tax bakersfield ca Periodical Income Gross advertising income. Vita income tax bakersfield ca   This is all the income from the unrelated advertising activities of an exempt organization periodical. Vita income tax bakersfield ca Circulation income. Vita income tax bakersfield ca   This is all the income from the production, distribution, or circulation of an exempt organization's periodical (other than gross advertising income). Vita income tax bakersfield ca It includes all amounts from the sale or distribution of the readership content of the periodical, such as income from subscriptions. Vita income tax bakersfield ca It also includes allocable membership receipts if the right to receive the periodical is associated with a membership or similar status in the organization. Vita income tax bakersfield ca Allocable membership receipts. Vita income tax bakersfield ca   This is the part of membership receipts (dues, fees, or other charges associated with membership) equal to the amount that would have been charged and paid for the periodical if: The periodical was published by a taxable organization, The periodical was published for profit, and The member was an unrelated party dealing with the taxable organization at arm's length. Vita income tax bakersfield ca   The amount used to allocate membership receipts is the amount shown in the following chart. Vita income tax bakersfield ca   For this purpose, the total periodical costs are the sum of the direct advertising costs and the readership costs, explained under Periodical Costs, later. Vita income tax bakersfield ca The cost of other exempt activities means the total expenses incurred by the organization in connection with its other exempt activities, not offset by any income earned by the organization from those activities. Vita income tax bakersfield ca IF . Vita income tax bakersfield ca . Vita income tax bakersfield ca . Vita income tax bakersfield ca THEN the amount used to allocate membership receipts is . Vita income tax bakersfield ca . Vita income tax bakersfield ca . Vita income tax bakersfield ca 20% or more of the total circulation consists of sales to nonmembers The subscription price charged nonmembers. Vita income tax bakersfield ca The above condition does not apply, and 20% or more of the members pay reduced dues because they do not receive the periodical The reduction in dues for a member not receiving the periodical. Vita income tax bakersfield ca Neither of the above conditions applies The membership receipts multiplied by this fraction:   Total periodical costs Total periodical costs Plus Cost of other exempt activities Example 1. Vita income tax bakersfield ca U is an exempt scientific organization with 10,000 members who pay annual dues of $15. Vita income tax bakersfield ca One of U's activities is publishing a monthly periodical distributed to all of its members. Vita income tax bakersfield ca U also distributes 5,000 additional copies of its periodical to nonmembers, who subscribe for $10 a year. Vita income tax bakersfield ca Since the nonmember circulation of U's periodical represents one-third (more than 20%) of its total circulation, the subscription price charged to nonmembers is used to determine the part of U's membership receipts allocable to the periodical. Vita income tax bakersfield ca Thus, U's allocable membership receipts are $100,000 ($10 times 10,000 members), and U's total circulation income for the periodical is $150,000 ($100,000 from members plus $50,000 from sales to nonmembers). Vita income tax bakersfield ca Example 2. Vita income tax bakersfield ca Assume the same facts except that U sells only 500 copies of its periodical to nonmembers, at a price of $10 a year. Vita income tax bakersfield ca Assume also that U's members may elect not to receive the periodical, in which case their dues are reduced from $15 a year to $6 a year, and that only 3,000 members elect to receive the periodical and pay the full dues of $15 a year. Vita income tax bakersfield ca U's stated subscription price of $9 to members consistently results in an excess of total income (including gross advertising income) attributable to the periodical over total costs of the periodical. Vita income tax bakersfield ca Since the 500 copies of the periodical distributed to nonmembers represent only 14% of the 3,500 copies distributed, the $10 subscription price charged to nonmembers is not used to determine the part of membership receipts allocable to the periodical. Vita income tax bakersfield ca Instead, since 70% of the members elect not to receive the periodical and pay $9 less per year in dues, the $9 price is used to determine the subscription price charged to members. Vita income tax bakersfield ca Thus, the allocable membership receipts will be $9 a member, or $27,000 ($9 times 3,000 copies). Vita income tax bakersfield ca U's total circulation income is $32,000 ($27,000 plus the $5,000 from nonmember subscriptions). Vita income tax bakersfield ca Periodical Costs Direct advertising costs. Vita income tax bakersfield ca   These are expenses, depreciation, and similar items of deduction directly connected with selling and publishing advertising in the periodical. Vita income tax bakersfield ca   Examples of allowable deductions under this classification include agency commissions and other direct selling costs, such as transportation and travel expenses, office salaries, promotion and research expenses, and office overhead directly connected with the sale of advertising lineage in the periodical. Vita income tax bakersfield ca Also included are other deductions commonly classified as advertising costs under standard account classifications, such as artwork and copy preparation, telephone, telegraph, postage, and similar costs directly connected with advertising. Vita income tax bakersfield ca   In addition, direct advertising costs include the part of mechanical and distribution costs attributable to advertising lineage. Vita income tax bakersfield ca For this purpose, the general account classifications of items includable in mechanical and distribution costs ordinarily employed in business-paper and consumer-publication accounting provide a guide for the computation. Vita income tax bakersfield ca Accordingly, the mechanical and distribution costs include the part of the costs and other expenses of composition, press work, binding, mailing (including paper and wrappers used for mailing), and bulk postage attributable to the advertising lineage of the publication. Vita income tax bakersfield ca   In the absence of specific and detailed records, the part of mechanical and distribution costs attributable to the periodical's advertising lineage can be based on the ratio of advertising lineage to total lineage in the periodical, if this allocation is reasonable. Vita income tax bakersfield ca Readership costs. Vita income tax bakersfield ca   These are all expenses, depreciation, and similar items that are directly connected with the production and distribution of the readership content of the periodical. Vita income tax bakersfield ca Costs partly attributable to other activities. Vita income tax bakersfield ca   Deductions properly attributable to exempt activities other than publishing the periodical may not be allocated to the periodical. Vita income tax bakersfield ca When expenses are attributable both to the periodical and to the organization's other activities, an allocation must be made on a reasonable basis. Vita income tax bakersfield ca The method of allocation will vary with the nature of the item, but once adopted, should be used consistently. Vita income tax bakersfield ca Allocations based on dollar receipts from various exempt activities generally are not reasonable since receipts usually do not accurately reflect the costs associated with specific activities that an exempt organization conducts. Vita income tax bakersfield ca Consolidated Periodicals If an exempt organization publishes more than one periodical to produce income, it may treat all of them (but not less than all) as one in determining unrelated business taxable income from selling advertising. Vita income tax bakersfield ca It treats the gross income from all the periodicals, and the deductions directly connected with them, on a consolidated basis. Vita income tax bakersfield ca Consolidated treatment, once adopted, must be followed consistently and is binding. Vita income tax bakersfield ca This treatment can be changed only with the consent of the Internal Revenue Service. Vita income tax bakersfield ca An exempt organization's periodical is published to produce income if: The periodical generates gross advertising income to the organization equal to at least 25% of its readership costs, and Publishing the periodical is an activity engaged in for profit. Vita income tax bakersfield ca Whether the publication of a periodical is an activity engaged in for profit can be determined only by all the facts and circumstances in each case. Vita income tax bakersfield ca The facts and circumstances must show that the organization carries on the activity for economic profit, although there may not be a profit in a particular year. Vita income tax bakersfield ca For example, if an organization begins publishing a new periodical whose total costs exceed total income in the start-up years because of lack of advertising sales, that does not mean that the organization did not have as its objective an economic profit. Vita income tax bakersfield ca The organization may establish that it had this objective by showing it can reasonably expect advertising sales to increase, so that total income will exceed costs within a reasonable time. Vita income tax bakersfield ca Example. Vita income tax bakersfield ca Y, an exempt trade association, publishes three periodicals that it distributes to its members: a weekly newsletter, a monthly magazine, and a quarterly journal. Vita income tax bakersfield ca Both the monthly magazine and the quarterly journal contain advertising that accounts for gross advertising income equal to more than 25% of their respective readership costs. Vita income tax bakersfield ca Similarly, the total income attributable to each periodical has exceeded the total deductions attributable to each periodical for substantially all the years they have been published. Vita income tax bakersfield ca The newsletter carries no advertising and its annual subscription price is not intended to cover the cost of publication. Vita income tax bakersfield ca The newsletter is a service that Y distributes to all of its members in an effort to keep them informed of changes occurring in the business world. Vita income tax bakersfield ca It is not engaged in for profit. Vita income tax bakersfield ca Under these circumstances, Y may consolidate the income and deductions from the monthly and quarterly journals in computing its unrelated business taxable income. Vita income tax bakersfield ca It may not consolidate the income and deductions from the newsletter with the income and deductions of its other periodicals, since the newsletter is not published for the production of income. Vita income tax bakersfield ca Modifications Net operating loss deduction. Vita income tax bakersfield ca   The net operating loss (NOL) deduction (as provided in section 172) is allowed in computing unrelated business taxable income. Vita income tax bakersfield ca However, the NOL for any tax year, the carrybacks and carryovers of NOLs, and the NOL deduction are determined without taking into account any amount of income or deduction that has been specifically excluded in computing unrelated business taxable income. Vita income tax bakersfield ca For example, a loss from an unrelated trade or business is not diminished because dividend income was received. Vita income tax bakersfield ca   If this were not done, organizations would, in effect, be taxed on their exempt income, since unrelated business losses then would be offset by dividends, interest, and other excluded income. Vita income tax bakersfield ca This would reduce the loss that could be applied against unrelated business income of prior or future tax years. Vita income tax bakersfield ca Therefore, to preserve the immunity of exempt income, all NOL computations are limited to those items of income and deductions that affect the unrelated business taxable income. Vita income tax bakersfield ca   In line with this concept, an NOL carryback or carryover is allowed only from a tax year for which the organization is subject to tax on unrelated business income. Vita income tax bakersfield ca   For example, if an organization just became subject to the tax last year, its NOL for that year is not a carryback to a prior year when it had no unrelated business taxable income, nor is its NOL carryover to succeeding years reduced by the related income of those prior years. Vita income tax bakersfield ca   However, in determining the span of years for which an NOL may be carried back or forward, the tax years for which the organization is not subject to the tax on unrelated business income are counted. Vita income tax bakersfield ca For example, if an organization was subject to the tax for 2009 and had an NOL for that year, the last tax year to which any part of that loss may be carried over is 2029, regardless of whether the organization was subject to the unrelated business income tax in any of the intervening years. Vita income tax bakersfield ca   For more details on the NOL deduction, including property eligible for an extended carryback period, see sections 172 and 1400N, Publication 536, Net Operating Losses (NOLs) for Individuals, Estates, and Trusts, and Publication 4492-B, Information for Affected Taxpayers in the Midwestern Disaster Areas. Vita income tax bakersfield ca Charitable contributions deduction. Vita income tax bakersfield ca   An exempt organization is allowed to deduct its charitable contributions in computing its unrelated business taxable income whether or not the contributions are directly connected with the unrelated business. Vita income tax bakersfield ca   To be deductible, the contribution must be paid to another qualified organization. Vita income tax bakersfield ca For example, an exempt university that operates an unrelated business may deduct a contribution made to another university for educational work, but may not claim a deduction for contributions of amounts spent for carrying out its own educational program. Vita income tax bakersfield ca   For purposes of the deduction, a distribution by a trust made under the trust instrument to a beneficiary, which itself is a qualified organization, is treated the same as a contribution. Vita income tax bakersfield ca Deduction limits. Vita income tax bakersfield ca   An exempt organization that is subject to the unrelated business income tax at corporate rates is allowed a deduction for charitable contributions up to 10% of its unrelated business taxable income computed without regard to the deduction for contributions. Vita income tax bakersfield ca See the Instructions for Form 990-T for more information. Vita income tax bakersfield ca    An exempt trust that is subject to the unrelated business income tax at trust rates generally is allowed a deduction for charitable contributions in the same amounts as allowed for individuals. Vita income tax bakersfield ca However, the limit on the deduction is determined in relation to the trust's unrelated business taxable income computed without regard to the deduction, rather than in relation to adjusted gross income. Vita income tax bakersfield ca   Contributions in excess of the limits just described may be carried over to the next 5 tax years. Vita income tax bakersfield ca A contribution carryover is not allowed, however, to the extent that it increases an NOL carryover. Vita income tax bakersfield ca Suspension of deduction limits for farmers and ranchers. Vita income tax bakersfield ca   The limitations discussed above are temporarily suspended for certain qualified conservation contributions of property used in agriculture or livestock production. Vita income tax bakersfield ca See the Instructions for Form 990-T for details. Vita income tax bakersfield ca Specific deduction. Vita income tax bakersfield ca   In computing unrelated business taxable income, a specific deduction of $1,000 is allowed. Vita income tax bakersfield ca However, the specific deduction is not allowed in computing an NOL or the NOL deduction. Vita income tax bakersfield ca   Generally, the deduction is limited to $1,000 regardless of the number of unrelated businesses in which the organization is engaged. Vita income tax bakersfield ca Exception. Vita income tax bakersfield ca   An exception is provided in the case of a diocese, province of a religious order, or a convention or association of churches that may claim a specific deduction for each parish, individual church, district, or other local unit. Vita income tax bakersfield ca In these cases, the specific deduction for each local unit is limited to the lower of: $1,000, or Gross income derived from an unrelated trade or business regularly conducted by the local unit. Vita income tax bakersfield ca   This exception applies only to parishes, districts, or other local units that are not separate legal entities, but are components of a larger entity (diocese, province, convention, or association) filing Form 990-T. Vita income tax bakersfield ca The parent organization must file a return reporting the unrelated business gross income and related deductions of all units that are not separate legal entities. Vita income tax bakersfield ca The local units cannot file separate returns. Vita income tax bakersfield ca However, each local unit that is separately incorporated must file its own return and cannot include, or be included with, any other entity. Vita income tax bakersfield ca See Title-holding corporations in chapter 1 for a discussion of the only situation in which more than one legal entity may be included on the same Form 990-T. Vita income tax bakersfield ca Example. Vita income tax bakersfield ca X is an association of churches and is divided into local units A, B, C, and D. Vita income tax bakersfield ca Last year, A, B, C, and D derived gross income of, respectively, $1,200, $800, $1,500, and $700 from unrelated businesses that they regularly conduct. Vita income tax bakersfield ca X may claim a specific deduction of $1,000 with respect to A, $800 with respect to B, $1,000 with respect to C, and $700 with respect to D. Vita income tax bakersfield ca Partnership Income or Loss An organization may have unrelated business income or loss as a member of a partnership, rather than through direct business dealings with the public. Vita income tax bakersfield ca If so, it must treat its share of the partnership income or loss as if it had conducted the business activity in its own capacity as a corporation or trust. Vita income tax bakersfield ca No distinction is made between limited and general partners. Vita income tax bakersfield ca The organization is required to notify the partnership of its tax-exempt status. Vita income tax bakersfield ca Thus, if an organization is a member of a partnership regularly engaged in a trade or business that is an unrelated trade or business with respect to the organization, the organization must include in its unrelated business taxable income its share of the partnership's gross income from the unrelated trade or business (whether or not distributed), and the deductions attributable to it. Vita income tax bakersfield ca The partnership income and deductions to be included in the organization's unrelated business taxable income are figured the same way as any income and deductions from an unrelated trade or business conducted directly by the organization. Vita income tax bakersfield ca The partnership is required to provide the organization this information on Schedule K-1. Vita income tax bakersfield ca Example. Vita income tax bakersfield ca An exempt educational organization is a partner in a partnership that operates a factory. Vita income tax bakersfield ca The partnership also holds stock in a corporation. Vita income tax bakersfield ca The exempt organization must include its share of the gross income from operating the factory in its unrelated business taxable income but may exclude its share of any dividends the partnership received from the corporation. Vita income tax bakersfield ca Different tax years. Vita income tax bakersfield ca   If the exempt organization and the partnership of which it is a member have different tax years, the partnership items that enter into the computation of the organization's unrelated business taxable income must be based on the income and deductions of the partnership for the partnership's tax year that ends within or with the organization's tax year. Vita income tax bakersfield ca S Corporation Income or Loss An organization that owns S corporation stock must take into account its share of the S corporation's income, deductions, or losses in figuring unrelated business taxable income, regardless of the actual source or nature of the income, deductions, and losses. Vita income tax bakersfield ca For example, the organization's share of the S corporation's interest and dividend income will be taxable, even though interest and dividends are normally excluded from unrelated business taxable income. Vita income tax bakersfield ca The organization must also take into account its gain or loss on the sale or other disposition of the S corporation stock in figuring unrelated business taxable income. Vita income tax bakersfield ca Special Rules for Foreign Organizations The unrelated business taxable income of a foreign organization exempt from tax under section 501(a) consists of the organization's: Unrelated business taxable income derived from sources within the United States but not effectively connected with the conduct of a trade or business within the United States, and Unrelated business taxable income effectively connected with the conduct of a trade or business within the United States, whether or not this income is derived from sources within the United States. Vita income tax bakersfield ca To determine whether income realized by a foreign organization is derived from sources within the United States or is effectively connected with the conduct of a trade or business within the United States, see sections 861 through 865 and the related regulations. Vita income tax bakersfield ca Special Rules for Social Clubs, VEBAs, SUBs, and GLSOs The following discussion applies to: Social clubs described in section 501(c)(7), Voluntary employees' beneficiary associations (VEBAs) described in section 501(c)(9), Supplemental unemployment compensation benefit trusts (SUBs) described in section 501(c)(17), and Group legal services organizations (GLSOs) described in section 501(c)(20). Vita income tax bakersfield ca These organizations must figure unrelated business taxable income under special rules. Vita income tax bakersfield ca Unlike other exempt organizations, they cannot exclude their investment income (dividends, interest, rents, etc. Vita income tax bakersfield ca ). Vita income tax bakersfield ca (See Exclusions under Income, earlier. Vita income tax bakersfield ca ) Therefore, they are generally subject to unrelated business income tax on this income. Vita income tax bakersfield ca The unrelated business taxable income of these organizations includes all gross income, less deductions directly connected with the production of that income, except that gross income for this purpose does not include exempt function income. Vita income tax bakersfield ca The dividends received by a corporation are not allowed in computing unrelated business taxable income because it is not an expense incurred in the production of income. Vita income tax bakersfield ca Losses from nonexempt activities. Vita income tax bakersfield ca   Losses from nonexempt activities of these organizations cannot be used to offset investment income unless the activities were undertaken with the intent to make a profit. Vita income tax bakersfield ca Example. Vita income tax bakersfield ca A private golf and country club that is a qualified tax-exempt social club has nonexempt function income from interest and from the sale of food and beverages to nonmembers. Vita income tax bakersfield ca The club sells food and beverages as a service to members and their guests rather than for the purpose of making a profit. Vita income tax bakersfield ca Therefore, any loss resulting from sales to nonmembers cannot be used to offset the club's interest income. Vita income tax bakersfield ca Modifications. Vita income tax bakersfield ca   The unrelated business taxable income is modified by any NOL or charitable contributions deduction and by the specific deduction (described earlier under Deductions). Vita income tax bakersfield ca Exempt function income. Vita income tax bakersfield ca   This is gross income from dues, fees, charges or similar items paid by members for goods, facilities, or services to the members or their dependents or guests, to further the organization's exempt purposes. Vita income tax bakersfield ca Exempt function income also includes income set aside for qualified purposes. Vita income tax bakersfield ca Income that is set aside. Vita income tax bakersfield ca   This is income set aside to be used for religious, charitable, scientific, literary, or educational purposes or for the prevention of cruelty to children or animals. Vita income tax bakersfield ca In addition, for a VEBA, SUB, or GLSO, it is income set aside to provide for the payment of life, sick, accident, or other benefits. Vita income tax bakersfield ca   However, any amounts set aside by a VEBA or SUB that exceed the organization's qualified asset account limit (determined under section 419A) are unrelated business income. Vita income tax bakersfield ca Special rules apply to the treatment of existing reserves for post-retirement medical or life insurance benefits. Vita income tax bakersfield ca These rules are explained in section 512(a)(3)(E)(ii). Vita income tax bakersfield ca   Income derived from an unrelated trade or business may not be set aside and therefore cannot be exempt function income. Vita income tax bakersfield ca In addition, any income set aside and later spent for other purposes must be included in unrelated business taxable income. Vita income tax bakersfield ca   Set-aside income is generally excluded from gross income only if it is set aside in the tax year in which it is otherwise includible in gross income. Vita income tax bakersfield ca However, income set aside on or before the date for filing Form 990-T, including extensions of time, may, at the election of the organization, be treated as having been set aside in the tax year for which the return was filed. Vita income tax bakersfield ca The income set aside must have been includible in gross income for that earlier year. Vita income tax bakersfield ca Nonrecognition of gain. Vita income tax bakersfield ca   If the organization sells property used directly in performing an exempt function and purchases other property used directly in performing an exempt function, any gain on the sale is recognized only to the extent that the sales price of the old property exceeds the cost of the new property. Vita income tax bakersfield ca The purchase of the new property must be made within 1 year before the date of sale of the old property or within 3 years after the date of sale. Vita income tax bakersfield ca   This rule also applies to gain from an involuntary conversion of the property resulting from its destruction in whole or in part, theft, seizure, requisition, or condemnation. Vita income tax bakersfield ca Special Rules for Veterans' Organizations Unrelated business taxable income of a veterans' organization that is exempt under section 501(c)(19) does not include the net income from insurance business that is properly set aside. Vita income tax bakersfield ca The organization may set aside income from payments received for life, sick, accident, or health insurance for the organization's members or their dependents for the payment of insurance benefits or reasonable costs of insurance administration, or for use exclusively for religious, charitable, scientific, literary, or educational purposes, or the prevention of cruelty to children or animals. Vita income tax bakersfield ca For details, see section 512(a)(4) and the regulations under that section. Vita income tax bakersfield ca Income From Controlled Organizations The exclusions for interest, annuities, royalties, and rents, explained earlier in this chapter under Income, may not apply to a payment of these items received by a controlling organization from its controlled organization. Vita income tax bakersfield ca The payment is included in the controlling organization's unrelated business taxable income to the extent it reduced the net unrelated income (or increased the net unrelated loss) of the controlled organization. Vita income tax bakersfield ca All deductions of the controlling organization directly connected with the amount included in its unrelated business taxable income are allowed. Vita income tax bakersfield ca Excess qualifying specified payments. Vita income tax bakersfield ca   Excess qualifying specified payments received or accrued from a controlled entity are included in a controlling exempt organization's unrelated business taxable income only on the amount that exceeds that which would have been paid or accrued if the payments had been determined under section 482. Vita income tax bakersfield ca Qualifying specified payments means any payments of interest, annuities, royalties, or rents received or accrued from the controlled organization pursuant to a binding written contract in effect on August 17, 2006, or to a contract which is a renewal, under substantially similar terms of a binding written contract in effect on August 17, 2006, and the payments are received or accrued before January 1, 2012. Vita income tax bakersfield ca   If a controlled participant is not required to file a U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca income tax return, the participant must ensure that the copy or copies of the Regulations section 1. Vita income tax bakersfield ca 482-7 Cost Sharing Arrangement Statement and any updates are attached to Schedule M of any Form 5471, Information Return of U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca Persons With Respect To Certain Foreign Corporations, any Form 5472, Information Return of a 25% Foreign-Owned U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca Corporation or a Foreign Corporation Engaged in a U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca Trade or Business, or any Form 8865, Return of U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca Persons With Respect to Certain Foreign Partnerships, filed for that participant. Vita income tax bakersfield ca Addition to tax for valuation misstatements. Vita income tax bakersfield ca   Under section 512(b)(13)(E)(ii), the tax imposed on a controlling organization will be increased by 20 percent of the excess qualifying specified payments that are determined with or without any amendments or supplements, whichever is larger. Vita income tax bakersfield ca See section 512(b)(13)(E)(ii) for more information. Vita income tax bakersfield ca Net unrelated income. Vita income tax bakersfield ca   This is: For an exempt organization, its unrelated business taxable income, or For a nonexempt organization, the part of its taxable income that would be unrelated business taxable income if it were exempt and had the same exempt purposes as the controlling organization. Vita income tax bakersfield ca Net unrelated loss. Vita income tax bakersfield ca   This is: For an exempt organization, its NOL, or For a nonexempt organization, the part of its NOL that would be its NOL if it were exempt and had the same exempt purposes as the controlling organization. Vita income tax bakersfield ca Control. Vita income tax bakersfield ca   An organization is controlled if: For a corporation, the controlling organization owns (by vote or value) more than 50% of the stock, For a partnership, the controlling organization owns more than 50% of the profits or capital interests, or For any other organization, the controlling organization owns more than 50% of the beneficial interest. Vita income tax bakersfield ca For this purpose, constructive ownership of stock (determined under section 318) or other interests is taken into account. Vita income tax bakersfield ca   As a result, an exempt parent organization is treated as controlling any subsidiary in which it holds more than 50% of the voting power or value, whether directly (as in the case of a first-tier subsidiary) or indirectly (as in the case of a second-tier subsidiary). Vita income tax bakersfield ca Income from property financed with qualified 501(c)(3) bonds. Vita income tax bakersfield ca If any part of a 501(c)(3) organization's property financed with qualified 501(c)(3) bonds is used in a trade or business of any person other than a section 501(c)(3) organization or a governmental unit, and such use is not consistent with the requirements for qualified 501(c)(3) bonds under section 145, the section 501(c)(3) organization is considered to have received unrelated business income in the amount of the greater of the actual rental income or the fair rental value of the property for the period it is used. Vita income tax bakersfield ca No deduction is allowed for interest on the private activity bond. Vita income tax bakersfield ca See sections 150(b)(3) and (c) for more information. Vita income tax bakersfield ca Disposition of property received from taxable subsidiary and used in unrelated business. Vita income tax bakersfield ca A taxable 80%-owned subsidiary corporation of one or more tax-exempt entities is generally subject to tax on a distribution in liquidation of its assets to its exempt parent (or parents). Vita income tax bakersfield ca The assets are treated as if sold at fair market value. Vita income tax bakersfield ca Tax-exempt entities include organizations described in sections 501(a), 529, and 115, charitable remainder trusts, U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca and foreign governments, Indian tribal governments, international organizations, and similar non-taxable organizations. Vita income tax bakersfield ca A taxable corporation that transfers substantially all of its assets to a tax-exempt entity in a transaction that otherwise qualifies for nonrecognition treatment must recognize gain on the transaction as if it sold the assets at fair market value. Vita income tax bakersfield ca However, such a transfer is not taxable if it qualifies as a like-kind exchange under section 1031 or an involuntary conversion under section 1033. Vita income tax bakersfield ca In such a case the built-in appreciation is preserved in the replacement property received in the transaction. Vita income tax bakersfield ca A corporation that changes status from taxable to tax-exempt is treated generally as if it transferred all of its assets to a tax-exempt entity immediately before the change in status (thus subjecting it to the tax on a deemed sale for fair market value). Vita income tax bakersfield ca This rule does not apply where the taxable corporation becomes exempt within 3 years of formation, or had previously been exempt and within several years (generally a period of 3 years) regains exemption, unless the principal purpose of the transactions is to avoid the tax on the change in status. Vita income tax bakersfield ca In the transactions described above, the taxable event is deferred for property that the tax-exempt entity immediately uses in an unrelated business. Vita income tax bakersfield ca If the parent later disposes of the property, then any gain (not in excess of the amount not recognized) is included in the parent's unrelated business taxable income. Vita income tax bakersfield ca If there is partial use of the assets in unrelated business, then there is partial recognition of gain or loss. Vita income tax bakersfield ca Property is treated as disposed if the tax-exempt entity no longer uses it in an unrelated business. Vita income tax bakersfield ca Losses on the transfer of assets to a tax-exempt entity are disallowed if part of a plan with a principal purpose of recognizing losses. Vita income tax bakersfield ca Income From Debt-Financed Property Investment income that would otherwise be excluded from an exempt organization's unrelated business taxable income (see Exclusions under Income earlier) must be included to the extent it is derived from debt-financed property. Vita income tax bakersfield ca The amount of income included is proportionate to the debt on the property. Vita income tax bakersfield ca Debt-Financed Property In general, the term “debt-financed property” means any property held to produce income (including gain from its disposition) for which there is an acquisition indebtedness at any time during the tax year (or during the 12-month period before the date of the property's disposal, if it was disposed of during the tax year). Vita income tax bakersfield ca It includes rental real estate, tangible personal property, and corporate stock. Vita income tax bakersfield ca Acquisition Indebtedness For any debt-financed property, acquisition indebtedness is the unpaid amount of debt incurred by an organization: When acquiring or improving the property, Before acquiring or improving the property if the debt would not have been incurred except for the acquisition or improvement, and After acquiring or improving the property if: The debt would not have been incurred except for the acquisition or improvement, and Incurring the debt was reasonably foreseeable when the property was acquired or improved. Vita income tax bakersfield ca The facts and circumstances of each situation determine whether incurring a debt was reasonably foreseeable. Vita income tax bakersfield ca That an organization may not have foreseen the need to incur a debt before acquiring or improving the property does not necessarily mean that incurring the debt later was not reasonably foreseeable. Vita income tax bakersfield ca Example 1. Vita income tax bakersfield ca Y, an exempt scientific organization, mortgages its laboratory to replace working capital used in remodeling an office building that Y rents to an insurance company for nonexempt purposes. Vita income tax bakersfield ca The debt is acquisition indebtedness since the debt, though incurred after the improvement of the office building, would not have been incurred without the improvement, and the debt was reasonably foreseeable when, to make the improvement, Y reduced its working capital below the amount necessary to continue current operations. Vita income tax bakersfield ca Example 2. Vita income tax bakersfield ca X, an exempt organization, forms a partnership with A and B. Vita income tax bakersfield ca The partnership agreement provides that all three partners will share equally in the profits of the partnership, each will invest $3 million, and X will be a limited partner. Vita income tax bakersfield ca X invests $1 million of its own funds in the partnership and $2 million of borrowed funds. Vita income tax bakersfield ca The partnership buys as its sole asset an office building that it leases to the public for nonexempt purposes. Vita income tax bakersfield ca The office building costs the partnership $24 million, of which $15 million is borrowed from Y bank. Vita income tax bakersfield ca The loan is secured by a mortgage on the entire office building. Vita income tax bakersfield ca By agreement with Y bank, X is not personally liable for payment of the mortgage. Vita income tax bakersfield ca X has acquisition indebtedness of $7 million. Vita income tax bakersfield ca This amount is the $2 million debt X incurred in acquiring the partnership interest, plus the $5 million that is X's allocable part of the partnership's debt incurred to buy the office building (one-third of $15 million). Vita income tax bakersfield ca Example 3. Vita income tax bakersfield ca A labor union advanced funds, from existing resources and without any borrowing, to its tax-exempt subsidiary title-holding company. Vita income tax bakersfield ca The subsidiary used the funds to pay a debt owed to a third party that was previously incurred in acquiring two income-producing office buildings. Vita income tax bakersfield ca Neither the union nor the subsidiary has incurred any further debt in acquiring or improving the property. Vita income tax bakersfield ca The union has no outstanding debt on the property. Vita income tax bakersfield ca The subsidiary's debt to the union is represented by a demand note on which the subsidiary makes payments whenever it has the available cash. Vita income tax bakersfield ca The books of the union and the subsidiary list the outstanding debt as interorganizational indebtedness. Vita income tax bakersfield ca Although the subsidiary's books show a debt to the union, it is not the type subject to the debt-financed property rules. Vita income tax bakersfield ca In this situation, the very nature of the title-holding company and the parent-subsidiary relationship shows this debt to be merely a matter of accounting between the two organizations. Vita income tax bakersfield ca Accordingly, the debt is not acquisition indebtedness. Vita income tax bakersfield ca Change in use of property. Vita income tax bakersfield ca   If an organization converts property that is not debt-financed property to a use that results in its treatment as debt-financed property, the outstanding principal debt on the property is thereafter treated as acquisition indebtedness. Vita income tax bakersfield ca Example. Vita income tax bakersfield ca Four years ago a university borrowed funds to acquire an apartment building as housing for married students. Vita income tax bakersfield ca Last year, the university rented the apartment building to the public for nonexempt purposes. Vita income tax bakersfield ca The outstanding principal debt becomes acquisition indebtedness as of the time the building was first rented to the public. Vita income tax bakersfield ca Continued debt. Vita income tax bakersfield ca   If an organization sells property and, without paying off debt that would be acquisition indebtedness if the property were debt-financed property, buys property that is otherwise debt-financed property, the unpaid debt is acquisition indebtedness for the new property. Vita income tax bakersfield ca This is true even if the original property was not debt-financed property. Vita income tax bakersfield ca Example. Vita income tax bakersfield ca To house its administration offices, an exempt organization bought a building using $600,000 of its own funds and $400,000 of borrowed funds secured by a pledge of its securities. Vita income tax bakersfield ca The office building was not debt-financed property. Vita income tax bakersfield ca The organization later sold the building for $1 million without repaying the $400,000 loan. Vita income tax bakersfield ca It used the sale proceeds to buy an apartment building it rents to the general public. Vita income tax bakersfield ca The unpaid debt of $400,000 is acquisition indebtedness with respect to the apartment building. Vita income tax bakersfield ca Property acquired subject to mortgage or lien. Vita income tax bakersfield ca   If property (other than certain gifts, bequests, and devises) is acquired subject to a mortgage, the outstanding principal debt secured by that mortgage is treated as acquisition indebtedness even if the organization did not assume or agree to pay the debt. Vita income tax bakersfield ca Example. Vita income tax bakersfield ca An exempt organization paid $50,000 for real property valued at $150,000 and subject to a $100,000 mortgage. Vita income tax bakersfield ca The $100,000 of outstanding principal debt is acquisition indebtedness, as though the organization had borrowed $100,000 to buy the property. Vita income tax bakersfield ca Liens similar to a mortgage. Vita income tax bakersfield ca   In determining acquisition indebtedness, a lien similar to a mortgage is treated as a mortgage. Vita income tax bakersfield ca A lien is similar to a mortgage if title to property is encumbered by the lien for a creditor's benefit. Vita income tax bakersfield ca However, when state law provides that a lien for taxes or assessments attaches to property before the taxes or assessments become due and payable, the lien is not treated as a mortgage until after the taxes or assessments have become due and payable and the organization has had an opportunity to pay the lien in accordance with state law. Vita income tax bakersfield ca Liens similar to mortgages include (but are not limited to): Deeds of trust, Conditional sales contracts, Chattel mortgages, Security interests under the Uniform Commercial Code, Pledges, Agreements to hold title in escrow, and Liens for taxes or assessments (other than those discussed earlier in this paragraph). Vita income tax bakersfield ca Exception for property acquired by gift, bequest, or devise. Vita income tax bakersfield ca   If property subject to a mortgage is acquired by gift, bequest, or devise, the outstanding principal debt secured by the mortgage is not treated as acquisition indebtedness during the 10-year period following the date the organization receives the property. Vita income tax bakersfield ca However, this applies to a gift of property only if:    The mortgage was placed on the property more than 5 years before the date the organization received it, and The donor held the property for more than 5 years before the date the organization received it. Vita income tax bakersfield ca   This exception does not apply if an organization assumes and agrees to pay all or part of the debt secured by the mortgage or makes any payment for the equity in the property owned by the donor or decedent (other than a payment under an annuity obligation excluded from the definition of acquisition indebtedness, discussed under Debt That Is Not Acquisition Indebtedness, later). Vita income tax bakersfield ca   Whether an organization has assumed and agreed to pay all or part of a debt in order to acquire the property is determined by the facts and circumstances of each situation. Vita income tax bakersfield ca Modifying existing debt. Vita income tax bakersfield ca   Extending, renewing, or refinancing an existing debt is considered a continuation of that debt to the extent its outstanding principal does not increase. Vita income tax bakersfield ca When the principal of the modified debt is more than the outstanding principal of the old debt, the excess is treated as a separate debt. Vita income tax bakersfield ca Extension or renewal. Vita income tax bakersfield ca   In general, any modification or substitution of the terms of a debt by an organization is considered an extension or renewal of the original debt, rather than the start of a new one, to the extent that the outstanding principal of the debt does not increase. Vita income tax bakersfield ca   The following are examples of acts resulting in the extension or renewal of a debt: Substituting liens to secure the debt, Substituting obligees whether or not with the organization's consent, Renewing, extending, or accelerating the payment terms of the debt, and Adding, deleting, or substituting sureties or other primary or secondary obligors. Vita income tax bakersfield ca Debt increase. Vita income tax bakersfield ca   If the outstanding principal of a modified debt is more than that of the unmodified debt, and only part of the refinanced debt is acquisition indebtedness, the payments on the refinanced debt must be allocated between the old debt and the excess. Vita income tax bakersfield ca Example. Vita income tax bakersfield ca An organization has an outstanding principal debt of $500,000 that is treated as acquisition indebtedness. Vita income tax bakersfield ca The organization borrows another $100,000, which is not acquisition indebtedness, from the same lender, resulting in a $600,000 note for the total obligation. Vita income tax bakersfield ca A payment of $60,000 on the total obligation would reduce the acquisition indebtedness by $50,000 ($60,000 x $500,000/$600,000) and the excess debt by $10,000. Vita income tax bakersfield ca Debt That Is Not Acquisition Indebtedness Certain debt and obligations are not acquisition indebtedness. Vita income tax bakersfield ca These include the following. Vita income tax bakersfield ca Debts incurred in performing an exempt purpose. Vita income tax bakersfield ca Annuity obligations. Vita income tax bakersfield ca Securities loans. Vita income tax bakersfield ca Real property debts of qualified organizations. Vita income tax bakersfield ca Certain Federal financing. Vita income tax bakersfield ca Debt incurred in performing exempt purpose. Vita income tax bakersfield ca   A debt incurred in performing an exempt purpose is not acquisition indebtedness. Vita income tax bakersfield ca For example, acquisition indebtedness does not include the debt an exempt credit union incurs in accepting deposits from its members or the debt an exempt organization incurs in accepting payments from its members to provide them with insurance, retirement, or other benefits. Vita income tax bakersfield ca Annuity obligation. Vita income tax bakersfield ca   The organization's obligation to pay an annuity is not acquisition indebtedness if the annuity meets all the following requirements. Vita income tax bakersfield ca It must be the sole consideration (other than a mortgage on property acquired by gift, bequest, or devise that meets the exception discussed under Property acquired subject to mortgage or lien, earlier in this chapter) issued in exchange for the property received. Vita income tax bakersfield ca Its present value, at the time of exchange, must be less than 90% of the value of the prior owner's equity in the property received. Vita income tax bakersfield ca It must be payable over the lives of either one or two individuals living when issued. Vita income tax bakersfield ca It must be payable under a contract that: Does not guarantee a minimum nor specify a maximum number of payments, and Does not provide for any adjustment of the amount of the annuity payments based on the income received from the transferred property or any other property. Vita income tax bakersfield ca Example. Vita income tax bakersfield ca X, an exempt organization, receives property valued at $100,000 from donor A, a male age 60. Vita income tax bakersfield ca In return X promises to pay A $6,000 a year for the rest of A's life, with neither a minimum nor maximum number of payments specified. Vita income tax bakersfield ca The amounts paid under the annuity are not dependent on the income derived from the property transferred to X. Vita income tax bakersfield ca The present value of this annuity is $81,156, determined from IRS valuation tables. Vita income tax bakersfield ca Since the value of the annuity is less than 90 percent of A's $100,000 equity in the property transferred and the annuity meets all the other requirements just discussed, the obligation to make annuity payments is not acquisition indebtedness. Vita income tax bakersfield ca Securities loans. Vita income tax bakersfield ca   Acquisition indebtedness does not include an obligation of the exempt organization to return collateral security provided by the borrower of the exempt organization's securities under a securities loan agreement (discussed under Exclusions earlier in this chapter). Vita income tax bakersfield ca This transaction is not treated as the borrowing by the exempt organization of the collateral furnished by the borrower (usually a broker) of the securities. Vita income tax bakersfield ca   However, if the exempt organization incurred debt to buy the loaned securities, any income from the securities (including income from
Print - Click this link to Print this page

Disposiciones Tributarias de la Ley de Cuidado de Salud a Bajo Precio

English

 

 Personas físicas
 y familias
 
 Empleadores
 
Otras organizaciones
 
La Ley de Cuidado de Salud, aborda las opciones de cobertura de seguro médico y ayuda financiera para personas físicas y familias, incluso el Crédito Tributario para Primas. El IRS, administra las disposiciones tributarias incluidas en la nueva ley. Visite CuidadoDeSalud.gov para más información sobre las opciones de cobertura y ayuda.
   
   
La Ley de Cuidado de Salud, contiene muchas disposiciones tributarias y otras para empleadores. El IRS administra las disposiciones tributarias incluidas en la ley. Visite CuidadoDeSalud.gov y SBA.gov/healthcare para más información sobre otras disposiciones.
 
 
  • Aseguradores
  • Ciertos Tipos de Negocios
  • Organizaciones Exentas y Gubernamentales

 

 

Page Last Reviewed or Updated: 26-Mar-2014

The Vita Income Tax Bakersfield Ca

Vita income tax bakersfield ca Publication 519 - Additional Material Table of Contents Appendix A—Tax Treaty Exemption Procedure for StudentsBelgium Bulgaria China, People's Republic of Cyprus Czech Republic, Estonia, Latvia, Lithuania, and Slovak Republic Egypt France Germany Iceland Indonesia Israel, Philippines and Thailand Korea, Norway, Poland, and Romania Morocco Netherlands Pakistan Portugal and Spain Slovenia and Venezuela Trinidad and Tobago Tunisia Appendix B—Tax Treaty Exemption Procedure for Teachers and ResearchersBelgium Bulgaria China, People's Republic of Commonwealth of Independent States Czech Republic and Slovak Republic Egypt, Hungary, Korea, Philippines, Poland, and Romania France Germany Greece India Indonesia Israel Italy Jamaica Luxembourg Netherlands Norway Pakistan Portugal Slovenia and Venezuela Thailand Trinidad and Tobago United Kingdom Frequently Asked Questions This section answers tax-related questions commonly asked by aliens. Vita income tax bakersfield ca . Vita income tax bakersfield ca What is the difference between a resident alien and a nonresident alien for tax purposes? . Vita income tax bakersfield ca What is the difference between the taxation of income that is effectively connected with a trade or business in the United States and income that is not effectively connected with a trade or business in the United States? . Vita income tax bakersfield ca I am a student with an F-1 Visa. Vita income tax bakersfield ca I was told that I was an exempt individual. Vita income tax bakersfield ca Does this mean I am exempt from paying U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca tax? . Vita income tax bakersfield ca I am a resident alien. Vita income tax bakersfield ca Can I claim any treaty benefits? . Vita income tax bakersfield ca I am a nonresident alien with no dependents. Vita income tax bakersfield ca I am working temporarily for a U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca company. Vita income tax bakersfield ca What return do I file? . Vita income tax bakersfield ca I came to the United States on June 30th of last year. Vita income tax bakersfield ca I have an H-1B Visa. Vita income tax bakersfield ca What is my tax status, resident alien or nonresident alien? What tax return do I file? . Vita income tax bakersfield ca When is my Form 1040NR due? . Vita income tax bakersfield ca My spouse is a nonresident alien. Vita income tax bakersfield ca Does he need a social security number? . Vita income tax bakersfield ca I am a nonresident alien. Vita income tax bakersfield ca Can I file a joint return with my spouse? . Vita income tax bakersfield ca I have an H-1B Visa and my husband has an F-1 Visa. Vita income tax bakersfield ca We both lived in the United States all of last year and had income. Vita income tax bakersfield ca What kind of form should we file? Do we file separate returns or a joint return? . Vita income tax bakersfield ca Is a dual-resident taxpayer the same as a dual-status taxpayer? . Vita income tax bakersfield ca I am a nonresident alien and invested money in the U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca stock market through a U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca brokerage company. Vita income tax bakersfield ca Are the dividends and the capital gains taxable? If yes, how are they taxed? . Vita income tax bakersfield ca I am a nonresident alien. Vita income tax bakersfield ca I receive U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca social security benefits. Vita income tax bakersfield ca Are my benefits taxable? . Vita income tax bakersfield ca Do I have to pay taxes on my scholarship? . Vita income tax bakersfield ca I am a nonresident alien. Vita income tax bakersfield ca Can I claim the standard deduction? . Vita income tax bakersfield ca I am a dual-status taxpayer. Vita income tax bakersfield ca Can I claim the standard deduction? . Vita income tax bakersfield ca I am filing Form 1040NR. Vita income tax bakersfield ca Can I claim itemized deductions? . Vita income tax bakersfield ca I am not a U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca citizen. Vita income tax bakersfield ca What exemptions can I claim? . Vita income tax bakersfield ca What exemptions can I claim as a dual-status taxpayer? . Vita income tax bakersfield ca I am single with a dependent child. Vita income tax bakersfield ca I was a dual-status alien in 2013. Vita income tax bakersfield ca Can I claim the earned income credit on my 2013 tax return? . Vita income tax bakersfield ca I am a nonresident alien student. Vita income tax bakersfield ca Can I claim an education credit on my Form 1040NR? . Vita income tax bakersfield ca I am a nonresident alien, temporarily working in the U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca under a J visa. Vita income tax bakersfield ca Am I subject to social security and Medicare taxes? . Vita income tax bakersfield ca I am a nonresident alien student. Vita income tax bakersfield ca Social security taxes were withheld from my pay in error. Vita income tax bakersfield ca How do I get a refund of these taxes? . Vita income tax bakersfield ca I am an alien who will be leaving the United States. Vita income tax bakersfield ca What forms do I have to file before I leave? . Vita income tax bakersfield ca I filed a Form 1040-C when I left the United States. Vita income tax bakersfield ca Do I still have to file an annual U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca tax return? . Vita income tax bakersfield ca What is the difference between a resident alien and a nonresident alien for tax purposes? For tax purposes, an alien is an individual who is not a U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca citizen. Vita income tax bakersfield ca Aliens are classified as resident aliens and nonresident aliens. Vita income tax bakersfield ca Resident aliens are taxed on their worldwide income, the same as U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca citizens. Vita income tax bakersfield ca Nonresident aliens are taxed only on their U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca source income and certain foreign source income that is effectively connected with a U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca trade or business. Vita income tax bakersfield ca The difference between these two categories is that effectively connected income, after allowable deductions, is taxed at graduated rates. Vita income tax bakersfield ca These are the same rates that apply to U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca citizens and residents. Vita income tax bakersfield ca Income that is not effectively connected is taxed at a flat 30% (or lower treaty) rate. Vita income tax bakersfield ca The term “exempt individual” does not refer to someone exempt from U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca tax. Vita income tax bakersfield ca You were referred to as an exempt individual because as a student temporarily in the United States on an F Visa, you do not have to count the days you were present in the United States as a student during the first 5 years in determining if you are a resident alien under the substantial presence test. Vita income tax bakersfield ca See chapter 1 . Vita income tax bakersfield ca Generally, you cannot claim tax treaty benefits as a resident alien. Vita income tax bakersfield ca However, there are exceptions. Vita income tax bakersfield ca See Effect of Tax Treaties in chapter 1. Vita income tax bakersfield ca See also Resident Aliens under Some Typical Tax Treaty Benefits in chapter 9. Vita income tax bakersfield ca You must file Form 1040NR if you are engaged in a trade or business in the United States, or have any other U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca source income on which tax was not fully paid by the amount withheld. Vita income tax bakersfield ca You can use Form 1040NR-EZ instead of Form 1040NR if you meet all 11 conditions listed under Form 1040NR-EZ in chapter 7. Vita income tax bakersfield ca You were a dual-status alien last year. Vita income tax bakersfield ca As a general rule, because you were in the United States for 183 days or more, you have met the substantial presence test and you are taxed as a resident. Vita income tax bakersfield ca However, for the part of the year that you were not present in the United States, you are a nonresident. Vita income tax bakersfield ca File Form 1040. Vita income tax bakersfield ca Print “Dual-Status Return” across the top. Vita income tax bakersfield ca Attach a statement showing your U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca source income for the part of the year you were a nonresident. Vita income tax bakersfield ca You may use Form 1040NR as the statement. Vita income tax bakersfield ca Print “Dual-Status Statement” across the top. Vita income tax bakersfield ca See First Year of Residency in chapter 1 for rules on determining your residency starting date. Vita income tax bakersfield ca If you are an employee and you receive wages subject to U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca income tax withholding, you must generally file by the 15th day of the 4th month after your tax year ends. Vita income tax bakersfield ca If you file for the 2013 calendar year, your return is due April 15, 2014. Vita income tax bakersfield ca If you are not an employee who receives wages subject to U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca income tax withholding, you must file by the 15th day of the 6th month after your tax year ends. Vita income tax bakersfield ca For the 2013 calendar year, file your return by June 16, 2014. Vita income tax bakersfield ca For more information on when and where to file, see chapter 7 . Vita income tax bakersfield ca A social security number (SSN) must be furnished on returns, statements, and other tax-related documents. Vita income tax bakersfield ca If your spouse does not have and is not eligible to get an SSN, he must apply for an individual taxpayer identification number (ITIN). Vita income tax bakersfield ca If you are a U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca citizen or resident and you choose to treat your nonresident spouse as a resident and file a joint tax return, your nonresident spouse needs an SSN or an ITIN. Vita income tax bakersfield ca Alien spouses who are claimed as exemptions or dependents are also required to furnish an SSN or an ITIN. Vita income tax bakersfield ca See Identification Number in chapter 5 for more information. Vita income tax bakersfield ca Generally, you cannot file as married filing jointly if either spouse was a nonresident alien at any time during the tax year. Vita income tax bakersfield ca However, nonresident aliens married to U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca citizens or residents can choose to be treated as U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca residents and file joint returns. Vita income tax bakersfield ca For more information on this choice, see Nonresident Spouse Treated as a Resident in chapter 1. Vita income tax bakersfield ca Assuming both of you had these visas for all of last year, you are a resident alien. Vita income tax bakersfield ca Your husband is a nonresident alien if he has not been in the United States as a student for more than 5 years. Vita income tax bakersfield ca You and your husband can file a joint tax return on Form 1040, 1040A, or 1040EZ if he makes the choice to be treated as a resident for the entire year. Vita income tax bakersfield ca See Nonresident Spouse Treated as a Resident in chapter 1. Vita income tax bakersfield ca If your husband does not make this choice, you must file a separate return on Form 1040 or Form 1040A. Vita income tax bakersfield ca Your husband must file Form 1040NR or 1040NR-EZ. Vita income tax bakersfield ca No. Vita income tax bakersfield ca A dual-resident taxpayer is one who is a resident of both the United States and another country under each country's tax laws. Vita income tax bakersfield ca See Effect of Tax Treaties in chapter 1. Vita income tax bakersfield ca You are a dual-status taxpayer when you are both a resident alien and a nonresident alien in the same year. Vita income tax bakersfield ca See chapter 6 . Vita income tax bakersfield ca The following rules apply if the dividends and capital gains are not effectively connected with a U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca trade or business. Vita income tax bakersfield ca Capital gains are generally not taxable if you were in the United States for less than 183 days during the year. Vita income tax bakersfield ca See Sales or Exchanges of Capital Assets in chapter 4 for more information and exceptions. Vita income tax bakersfield ca Dividends are generally taxed at a 30% (or lower treaty) rate. Vita income tax bakersfield ca The brokerage company or payor of the dividends should withhold this tax at source. Vita income tax bakersfield ca If tax is not withheld at the correct rate, you must file Form 1040NR to receive a refund or pay any additional tax due. Vita income tax bakersfield ca If the capital gains and dividends are effectively connected with a U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca trade or business, they are taxed according to the same rules and at the same rates that apply to U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca citizens and residents. Vita income tax bakersfield ca If you are a nonresident alien, 85% of any U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca social security benefits (and the equivalent portion of tier 1 railroad retirement benefits) you receive is subject to the flat 30% tax, unless exempt, or subject to a lower treaty rate. Vita income tax bakersfield ca See The 30% Tax in chapter 4. Vita income tax bakersfield ca If you are a nonresident alien and the scholarship is not from U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca sources, it is not subject to U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca tax. Vita income tax bakersfield ca See Scholarships, Grants, Prizes, and Awards in chapter 2 to determine whether your scholarship is from U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca sources. Vita income tax bakersfield ca If your scholarship is from U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca sources or you are a resident alien, your scholarship is subject to U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca tax according to the following rules. Vita income tax bakersfield ca If you are a candidate for a degree, you may be able to exclude from your income the part of the scholarship you use to pay for tuition, fees, books, supplies, and equipment required by the educational institution. Vita income tax bakersfield ca However, the part of the scholarship you use to pay for other expenses, such as room and board, is taxable. Vita income tax bakersfield ca See Scholarships and Fellowship Grants in chapter 3 for more information. Vita income tax bakersfield ca If you are not a candidate for a degree, your scholarship is taxable. Vita income tax bakersfield ca Nonresident aliens cannot claim the standard deduction. Vita income tax bakersfield ca However, see Students and business apprentices from India , under Itemized Deductions in chapter 5 for an exception. Vita income tax bakersfield ca You cannot claim the standard deduction allowed on Form 1040. Vita income tax bakersfield ca However, you can itemize any allowable deductions. Vita income tax bakersfield ca Nonresident aliens can claim some of the same itemized deductions that resident aliens can claim. Vita income tax bakersfield ca However, nonresident aliens can claim itemized deductions only if they have income effectively connected with their U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca trade or business. Vita income tax bakersfield ca See Itemized Deductions in chapter 5. Vita income tax bakersfield ca Resident aliens can claim personal exemptions and exemptions for dependents in the same way as U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca citizens. Vita income tax bakersfield ca However, nonresident aliens generally can claim only a personal exemption for themselves on their U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca tax return. Vita income tax bakersfield ca There are special rules for residents of Mexico, Canada, and South Korea; for U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca nationals; and for students and business apprentices from India. Vita income tax bakersfield ca See Exemptions in chapter 5. Vita income tax bakersfield ca As a dual-status taxpayer, you usually will be able to claim your own personal exemption. Vita income tax bakersfield ca Subject to the general rules for qualification, you can claim exemptions for your spouse and dependents when you figure taxable income for the part of the year you are a resident alien. Vita income tax bakersfield ca The amount you can claim for these exemptions is limited to your taxable income (figured before subtracting exemptions) for the part of the year you are a resident alien. Vita income tax bakersfield ca You cannot use exemptions (other than your own) to reduce taxable income to less than zero for that period. Vita income tax bakersfield ca If you are a nonresident alien for any part of the year, you cannot claim the earned income credit. Vita income tax bakersfield ca See chapter 6 for more information on dual-status aliens. Vita income tax bakersfield ca If you are a nonresident alien for any part of the year, you generally cannot claim the education credits. Vita income tax bakersfield ca However, if you are married and choose to file a joint return with a U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca citizen or resident spouse, you may be eligible for these credits. Vita income tax bakersfield ca See Nonresident Spouse Treated as a Resident in chapter 1. Vita income tax bakersfield ca Generally, services you perform 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 you perform the services to carry out the purpose for which you were admitted to the United States. Vita income tax bakersfield ca See Social Security and Medicare Taxes in chapter 8. Vita income tax bakersfield ca 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. Vita income tax bakersfield ca 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. Vita income tax bakersfield ca Do not use Form 843 to request a refund of Additional Medicare Tax. Vita income tax bakersfield ca See Refund of Taxes Withheld in Error in chapter 8. Vita income tax bakersfield ca Before leaving the United States, aliens generally must obtain a certificate of compliance. Vita income tax bakersfield ca This document, also popularly known as the sailing permit or departure permit, is part of the income tax form you must file before leaving. Vita income tax bakersfield ca You will receive a sailing or departure permit after filing a Form 1040-C or Form 2063. Vita income tax bakersfield ca These forms are discussed in chapter 11. Vita income tax bakersfield ca Form 1040-C is not an annual U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca income tax return. Vita income tax bakersfield ca If an income tax return is required by law, you must file that return even though you already filed a Form 1040-C. Vita income tax bakersfield ca Chapters 5 and 7 discuss filing an annual U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca income tax return. Vita income tax bakersfield ca . Vita income tax bakersfield ca What is the difference between the taxation of income that is effectively connected with a trade or business in the United States and income that is not effectively connected with a trade or business in the United States? The difference between these two categories is that effectively connected income, after allowable deductions, is taxed at graduated rates. Vita income tax bakersfield ca These are the same rates that apply to U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca citizens and residents. Vita income tax bakersfield ca Income that is not effectively connected is taxed at a flat 30% (or lower treaty) rate. Vita income tax bakersfield ca The term “exempt individual” does not refer to someone exempt from U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca tax. Vita income tax bakersfield ca You were referred to as an exempt individual because as a student temporarily in the United States on an F Visa, you do not have to count the days you were present in the United States as a student during the first 5 years in determining if you are a resident alien under the substantial presence test. Vita income tax bakersfield ca See chapter 1 . Vita income tax bakersfield ca Generally, you cannot claim tax treaty benefits as a resident alien. Vita income tax bakersfield ca However, there are exceptions. Vita income tax bakersfield ca See Effect of Tax Treaties in chapter 1. Vita income tax bakersfield ca See also Resident Aliens under Some Typical Tax Treaty Benefits in chapter 9. Vita income tax bakersfield ca You must file Form 1040NR if you are engaged in a trade or business in the United States, or have any other U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca source income on which tax was not fully paid by the amount withheld. Vita income tax bakersfield ca You can use Form 1040NR-EZ instead of Form 1040NR if you meet all 11 conditions listed under Form 1040NR-EZ in chapter 7. Vita income tax bakersfield ca You were a dual-status alien last year. Vita income tax bakersfield ca As a general rule, because you were in the United States for 183 days or more, you have met the substantial presence test and you are taxed as a resident. Vita income tax bakersfield ca However, for the part of the year that you were not present in the United States, you are a nonresident. Vita income tax bakersfield ca File Form 1040. Vita income tax bakersfield ca Print “Dual-Status Return” across the top. Vita income tax bakersfield ca Attach a statement showing your U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca source income for the part of the year you were a nonresident. Vita income tax bakersfield ca You may use Form 1040NR as the statement. Vita income tax bakersfield ca Print “Dual-Status Statement” across the top. Vita income tax bakersfield ca See First Year of Residency in chapter 1 for rules on determining your residency starting date. Vita income tax bakersfield ca If you are an employee and you receive wages subject to U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca income tax withholding, you must generally file by the 15th day of the 4th month after your tax year ends. Vita income tax bakersfield ca If you file for the 2013 calendar year, your return is due April 15, 2014. Vita income tax bakersfield ca If you are not an employee who receives wages subject to U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca income tax withholding, you must file by the 15th day of the 6th month after your tax year ends. Vita income tax bakersfield ca For the 2013 calendar year, file your return by June 16, 2014. Vita income tax bakersfield ca For more information on when and where to file, see chapter 7 . Vita income tax bakersfield ca A social security number (SSN) must be furnished on returns, statements, and other tax-related documents. Vita income tax bakersfield ca If your spouse does not have and is not eligible to get an SSN, he must apply for an individual taxpayer identification number (ITIN). Vita income tax bakersfield ca If you are a U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca citizen or resident and you choose to treat your nonresident spouse as a resident and file a joint tax return, your nonresident spouse needs an SSN or an ITIN. Vita income tax bakersfield ca Alien spouses who are claimed as exemptions or dependents are also required to furnish an SSN or an ITIN. Vita income tax bakersfield ca See Identification Number in chapter 5 for more information. Vita income tax bakersfield ca Generally, you cannot file as married filing jointly if either spouse was a nonresident alien at any time during the tax year. Vita income tax bakersfield ca However, nonresident aliens married to U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca citizens or residents can choose to be treated as U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca residents and file joint returns. Vita income tax bakersfield ca For more information on this choice, see Nonresident Spouse Treated as a Resident in chapter 1. Vita income tax bakersfield ca Assuming both of you had these visas for all of last year, you are a resident alien. Vita income tax bakersfield ca Your husband is a nonresident alien if he has not been in the United States as a student for more than 5 years. Vita income tax bakersfield ca You and your husband can file a joint tax return on Form 1040, 1040A, or 1040EZ if he makes the choice to be treated as a resident for the entire year. Vita income tax bakersfield ca See Nonresident Spouse Treated as a Resident in chapter 1. Vita income tax bakersfield ca If your husband does not make this choice, you must file a separate return on Form 1040 or Form 1040A. Vita income tax bakersfield ca Your husband must file Form 1040NR or 1040NR-EZ. Vita income tax bakersfield ca No. Vita income tax bakersfield ca A dual-resident taxpayer is one who is a resident of both the United States and another country under each country's tax laws. Vita income tax bakersfield ca See Effect of Tax Treaties in chapter 1. Vita income tax bakersfield ca You are a dual-status taxpayer when you are both a resident alien and a nonresident alien in the same year. Vita income tax bakersfield ca See chapter 6 . Vita income tax bakersfield ca The following rules apply if the dividends and capital gains are not effectively connected with a U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca trade or business. Vita income tax bakersfield ca Capital gains are generally not taxable if you were in the United States for less than 183 days during the year. Vita income tax bakersfield ca See Sales or Exchanges of Capital Assets in chapter 4 for more information and exceptions. Vita income tax bakersfield ca Dividends are generally taxed at a 30% (or lower treaty) rate. Vita income tax bakersfield ca The brokerage company or payor of the dividends should withhold this tax at source. Vita income tax bakersfield ca If tax is not withheld at the correct rate, you must file Form 1040NR to receive a refund or pay any additional tax due. Vita income tax bakersfield ca If the capital gains and dividends are effectively connected with a U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca trade or business, they are taxed according to the same rules and at the same rates that apply to U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca citizens and residents. Vita income tax bakersfield ca If you are a nonresident alien, 85% of any U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca social security benefits (and the equivalent portion of tier 1 railroad retirement benefits) you receive is subject to the flat 30% tax, unless exempt, or subject to a lower treaty rate. Vita income tax bakersfield ca See The 30% Tax in chapter 4. Vita income tax bakersfield ca If you are a nonresident alien and the scholarship is not from U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca sources, it is not subject to U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca tax. Vita income tax bakersfield ca See Scholarships, Grants, Prizes, and Awards in chapter 2 to determine whether your scholarship is from U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca sources. Vita income tax bakersfield ca If your scholarship is from U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca sources or you are a resident alien, your scholarship is subject to U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca tax according to the following rules. Vita income tax bakersfield ca If you are a candidate for a degree, you may be able to exclude from your income the part of the scholarship you use to pay for tuition, fees, books, supplies, and equipment required by the educational institution. Vita income tax bakersfield ca However, the part of the scholarship you use to pay for other expenses, such as room and board, is taxable. Vita income tax bakersfield ca See Scholarships and Fellowship Grants in chapter 3 for more information. Vita income tax bakersfield ca If you are not a candidate for a degree, your scholarship is taxable. Vita income tax bakersfield ca Nonresident aliens cannot claim the standard deduction. Vita income tax bakersfield ca However, see Students and business apprentices from India , under Itemized Deductions in chapter 5 for an exception. Vita income tax bakersfield ca You cannot claim the standard deduction allowed on Form 1040. Vita income tax bakersfield ca However, you can itemize any allowable deductions. Vita income tax bakersfield ca Nonresident aliens can claim some of the same itemized deductions that resident aliens can claim. Vita income tax bakersfield ca However, nonresident aliens can claim itemized deductions only if they have income effectively connected with their U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca trade or business. Vita income tax bakersfield ca See Itemized Deductions in chapter 5. Vita income tax bakersfield ca Resident aliens can claim personal exemptions and exemptions for dependents in the same way as U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca citizens. Vita income tax bakersfield ca However, nonresident aliens generally can claim only a personal exemption for themselves on their U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca tax return. Vita income tax bakersfield ca There are special rules for residents of Mexico, Canada, and South Korea; for U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca nationals; and for students and business apprentices from India. Vita income tax bakersfield ca See Exemptions in chapter 5. Vita income tax bakersfield ca As a dual-status taxpayer, you usually will be able to claim your own personal exemption. Vita income tax bakersfield ca Subject to the general rules for qualification, you can claim exemptions for your spouse and dependents when you figure taxable income for the part of the year you are a resident alien. Vita income tax bakersfield ca The amount you can claim for these exemptions is limited to your taxable income (figured before subtracting exemptions) for the part of the year you are a resident alien. Vita income tax bakersfield ca You cannot use exemptions (other than your own) to reduce taxable income to less than zero for that period. Vita income tax bakersfield ca If you are a nonresident alien for any part of the year, you cannot claim the earned income credit. Vita income tax bakersfield ca See chapter 6 for more information on dual-status aliens. Vita income tax bakersfield ca If you are a nonresident alien for any part of the year, you generally cannot claim the education credits. Vita income tax bakersfield ca However, if you are married and choose to file a joint return with a U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca citizen or resident spouse, you may be eligible for these credits. Vita income tax bakersfield ca See Nonresident Spouse Treated as a Resident in chapter 1. Vita income tax bakersfield ca Generally, services you perform 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 you perform the services to carry out the purpose for which you were admitted to the United States. Vita income tax bakersfield ca See Social Security and Medicare Taxes in chapter 8. Vita income tax bakersfield ca 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. Vita income tax bakersfield ca 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. Vita income tax bakersfield ca Do not use Form 843 to request a refund of Additional Medicare Tax. Vita income tax bakersfield ca See Refund of Taxes Withheld in Error in chapter 8. Vita income tax bakersfield ca Before leaving the United States, aliens generally must obtain a certificate of compliance. Vita income tax bakersfield ca This document, also popularly known as the sailing permit or departure permit, is part of the income tax form you must file before leaving. Vita income tax bakersfield ca You will receive a sailing or departure permit after filing a Form 1040-C or Form 2063. Vita income tax bakersfield ca These forms are discussed in chapter 11. Vita income tax bakersfield ca Form 1040-C is not an annual U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca income tax return. Vita income tax bakersfield ca If an income tax return is required by law, you must file that return even though you already filed a Form 1040-C. Vita income tax bakersfield ca Chapters 5 and 7 discuss filing an annual U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca income tax return. Vita income tax bakersfield ca . Vita income tax bakersfield ca I am a student with an F-1 Visa. Vita income tax bakersfield ca I was told that I was an exempt individual. Vita income tax bakersfield ca Does this mean I am exempt from paying U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca tax? The term “exempt individual” does not refer to someone exempt from U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca tax. Vita income tax bakersfield ca You were referred to as an exempt individual because as a student temporarily in the United States on an F Visa, you do not have to count the days you were present in the United States as a student during the first 5 years in determining if you are a resident alien under the substantial presence test. Vita income tax bakersfield ca See chapter 1 . Vita income tax bakersfield ca Generally, you cannot claim tax treaty benefits as a resident alien. Vita income tax bakersfield ca However, there are exceptions. Vita income tax bakersfield ca See Effect of Tax Treaties in chapter 1. Vita income tax bakersfield ca See also Resident Aliens under Some Typical Tax Treaty Benefits in chapter 9. Vita income tax bakersfield ca You must file Form 1040NR if you are engaged in a trade or business in the United States, or have any other U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca source income on which tax was not fully paid by the amount withheld. Vita income tax bakersfield ca You can use Form 1040NR-EZ instead of Form 1040NR if you meet all 11 conditions listed under Form 1040NR-EZ in chapter 7. Vita income tax bakersfield ca You were a dual-status alien last year. Vita income tax bakersfield ca As a general rule, because you were in the United States for 183 days or more, you have met the substantial presence test and you are taxed as a resident. Vita income tax bakersfield ca However, for the part of the year that you were not present in the United States, you are a nonresident. Vita income tax bakersfield ca File Form 1040. Vita income tax bakersfield ca Print “Dual-Status Return” across the top. Vita income tax bakersfield ca Attach a statement showing your U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca source income for the part of the year you were a nonresident. Vita income tax bakersfield ca You may use Form 1040NR as the statement. Vita income tax bakersfield ca Print “Dual-Status Statement” across the top. Vita income tax bakersfield ca See First Year of Residency in chapter 1 for rules on determining your residency starting date. Vita income tax bakersfield ca If you are an employee and you receive wages subject to U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca income tax withholding, you must generally file by the 15th day of the 4th month after your tax year ends. Vita income tax bakersfield ca If you file for the 2013 calendar year, your return is due April 15, 2014. Vita income tax bakersfield ca If you are not an employee who receives wages subject to U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca income tax withholding, you must file by the 15th day of the 6th month after your tax year ends. Vita income tax bakersfield ca For the 2013 calendar year, file your return by June 16, 2014. Vita income tax bakersfield ca For more information on when and where to file, see chapter 7 . Vita income tax bakersfield ca A social security number (SSN) must be furnished on returns, statements, and other tax-related documents. Vita income tax bakersfield ca If your spouse does not have and is not eligible to get an SSN, he must apply for an individual taxpayer identification number (ITIN). Vita income tax bakersfield ca If you are a U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca citizen or resident and you choose to treat your nonresident spouse as a resident and file a joint tax return, your nonresident spouse needs an SSN or an ITIN. Vita income tax bakersfield ca Alien spouses who are claimed as exemptions or dependents are also required to furnish an SSN or an ITIN. Vita income tax bakersfield ca See Identification Number in chapter 5 for more information. Vita income tax bakersfield ca Generally, you cannot file as married filing jointly if either spouse was a nonresident alien at any time during the tax year. Vita income tax bakersfield ca However, nonresident aliens married to U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca citizens or residents can choose to be treated as U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca residents and file joint returns. Vita income tax bakersfield ca For more information on this choice, see Nonresident Spouse Treated as a Resident in chapter 1. Vita income tax bakersfield ca Assuming both of you had these visas for all of last year, you are a resident alien. Vita income tax bakersfield ca Your husband is a nonresident alien if he has not been in the United States as a student for more than 5 years. Vita income tax bakersfield ca You and your husband can file a joint tax return on Form 1040, 1040A, or 1040EZ if he makes the choice to be treated as a resident for the entire year. Vita income tax bakersfield ca See Nonresident Spouse Treated as a Resident in chapter 1. Vita income tax bakersfield ca If your husband does not make this choice, you must file a separate return on Form 1040 or Form 1040A. Vita income tax bakersfield ca Your husband must file Form 1040NR or 1040NR-EZ. Vita income tax bakersfield ca No. Vita income tax bakersfield ca A dual-resident taxpayer is one who is a resident of both the United States and another country under each country's tax laws. Vita income tax bakersfield ca See Effect of Tax Treaties in chapter 1. Vita income tax bakersfield ca You are a dual-status taxpayer when you are both a resident alien and a nonresident alien in the same year. Vita income tax bakersfield ca See chapter 6 . Vita income tax bakersfield ca The following rules apply if the dividends and capital gains are not effectively connected with a U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca trade or business. Vita income tax bakersfield ca Capital gains are generally not taxable if you were in the United States for less than 183 days during the year. Vita income tax bakersfield ca See Sales or Exchanges of Capital Assets in chapter 4 for more information and exceptions. Vita income tax bakersfield ca Dividends are generally taxed at a 30% (or lower treaty) rate. Vita income tax bakersfield ca The brokerage company or payor of the dividends should withhold this tax at source. Vita income tax bakersfield ca If tax is not withheld at the correct rate, you must file Form 1040NR to receive a refund or pay any additional tax due. Vita income tax bakersfield ca If the capital gains and dividends are effectively connected with a U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca trade or business, they are taxed according to the same rules and at the same rates that apply to U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca citizens and residents. Vita income tax bakersfield ca If you are a nonresident alien, 85% of any U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca social security benefits (and the equivalent portion of tier 1 railroad retirement benefits) you receive is subject to the flat 30% tax, unless exempt, or subject to a lower treaty rate. Vita income tax bakersfield ca See The 30% Tax in chapter 4. Vita income tax bakersfield ca If you are a nonresident alien and the scholarship is not from U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca sources, it is not subject to U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca tax. Vita income tax bakersfield ca See Scholarships, Grants, Prizes, and Awards in chapter 2 to determine whether your scholarship is from U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca sources. Vita income tax bakersfield ca If your scholarship is from U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca sources or you are a resident alien, your scholarship is subject to U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca tax according to the following rules. Vita income tax bakersfield ca If you are a candidate for a degree, you may be able to exclude from your income the part of the scholarship you use to pay for tuition, fees, books, supplies, and equipment required by the educational institution. Vita income tax bakersfield ca However, the part of the scholarship you use to pay for other expenses, such as room and board, is taxable. Vita income tax bakersfield ca See Scholarships and Fellowship Grants in chapter 3 for more information. Vita income tax bakersfield ca If you are not a candidate for a degree, your scholarship is taxable. Vita income tax bakersfield ca Nonresident aliens cannot claim the standard deduction. Vita income tax bakersfield ca However, see Students and business apprentices from India , under Itemized Deductions in chapter 5 for an exception. Vita income tax bakersfield ca You cannot claim the standard deduction allowed on Form 1040. Vita income tax bakersfield ca However, you can itemize any allowable deductions. Vita income tax bakersfield ca Nonresident aliens can claim some of the same itemized deductions that resident aliens can claim. Vita income tax bakersfield ca However, nonresident aliens can claim itemized deductions only if they have income effectively connected with their U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca trade or business. Vita income tax bakersfield ca See Itemized Deductions in chapter 5. Vita income tax bakersfield ca Resident aliens can claim personal exemptions and exemptions for dependents in the same way as U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca citizens. Vita income tax bakersfield ca However, nonresident aliens generally can claim only a personal exemption for themselves on their U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca tax return. Vita income tax bakersfield ca There are special rules for residents of Mexico, Canada, and South Korea; for U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca nationals; and for students and business apprentices from India. Vita income tax bakersfield ca See Exemptions in chapter 5. Vita income tax bakersfield ca As a dual-status taxpayer, you usually will be able to claim your own personal exemption. Vita income tax bakersfield ca Subject to the general rules for qualification, you can claim exemptions for your spouse and dependents when you figure taxable income for the part of the year you are a resident alien. Vita income tax bakersfield ca The amount you can claim for these exemptions is limited to your taxable income (figured before subtracting exemptions) for the part of the year you are a resident alien. Vita income tax bakersfield ca You cannot use exemptions (other than your own) to reduce taxable income to less than zero for that period. Vita income tax bakersfield ca If you are a nonresident alien for any part of the year, you cannot claim the earned income credit. Vita income tax bakersfield ca See chapter 6 for more information on dual-status aliens. Vita income tax bakersfield ca If you are a nonresident alien for any part of the year, you generally cannot claim the education credits. Vita income tax bakersfield ca However, if you are married and choose to file a joint return with a U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca citizen or resident spouse, you may be eligible for these credits. Vita income tax bakersfield ca See Nonresident Spouse Treated as a Resident in chapter 1. Vita income tax bakersfield ca Generally, services you perform 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 you perform the services to carry out the purpose for which you were admitted to the United States. Vita income tax bakersfield ca See Social Security and Medicare Taxes in chapter 8. Vita income tax bakersfield ca 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. Vita income tax bakersfield ca 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. Vita income tax bakersfield ca Do not use Form 843 to request a refund of Additional Medicare Tax. Vita income tax bakersfield ca See Refund of Taxes Withheld in Error in chapter 8. Vita income tax bakersfield ca Before leaving the United States, aliens generally must obtain a certificate of compliance. Vita income tax bakersfield ca This document, also popularly known as the sailing permit or departure permit, is part of the income tax form you must file before leaving. Vita income tax bakersfield ca You will receive a sailing or departure permit after filing a Form 1040-C or Form 2063. Vita income tax bakersfield ca These forms are discussed in chapter 11. Vita income tax bakersfield ca Form 1040-C is not an annual U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca income tax return. Vita income tax bakersfield ca If an income tax return is required by law, you must file that return even though you already filed a Form 1040-C. Vita income tax bakersfield ca Chapters 5 and 7 discuss filing an annual U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca income tax return. Vita income tax bakersfield ca . Vita income tax bakersfield ca I am a resident alien. Vita income tax bakersfield ca Can I claim any treaty benefits? Generally, you cannot claim tax treaty benefits as a resident alien. Vita income tax bakersfield ca However, there are exceptions. Vita income tax bakersfield ca See Effect of Tax Treaties in chapter 1. Vita income tax bakersfield ca See also Resident Aliens under Some Typical Tax Treaty Benefits in chapter 9. Vita income tax bakersfield ca You must file Form 1040NR if you are engaged in a trade or business in the United States, or have any other U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca source income on which tax was not fully paid by the amount withheld. Vita income tax bakersfield ca You can use Form 1040NR-EZ instead of Form 1040NR if you meet all 11 conditions listed under Form 1040NR-EZ in chapter 7. Vita income tax bakersfield ca You were a dual-status alien last year. Vita income tax bakersfield ca As a general rule, because you were in the United States for 183 days or more, you have met the substantial presence test and you are taxed as a resident. Vita income tax bakersfield ca However, for the part of the year that you were not present in the United States, you are a nonresident. Vita income tax bakersfield ca File Form 1040. Vita income tax bakersfield ca Print “Dual-Status Return” across the top. Vita income tax bakersfield ca Attach a statement showing your U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca source income for the part of the year you were a nonresident. Vita income tax bakersfield ca You may use Form 1040NR as the statement. Vita income tax bakersfield ca Print “Dual-Status Statement” across the top. Vita income tax bakersfield ca See First Year of Residency in chapter 1 for rules on determining your residency starting date. Vita income tax bakersfield ca If you are an employee and you receive wages subject to U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca income tax withholding, you must generally file by the 15th day of the 4th month after your tax year ends. Vita income tax bakersfield ca If you file for the 2013 calendar year, your return is due April 15, 2014. Vita income tax bakersfield ca If you are not an employee who receives wages subject to U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca income tax withholding, you must file by the 15th day of the 6th month after your tax year ends. Vita income tax bakersfield ca For the 2013 calendar year, file your return by June 16, 2014. Vita income tax bakersfield ca For more information on when and where to file, see chapter 7 . Vita income tax bakersfield ca A social security number (SSN) must be furnished on returns, statements, and other tax-related documents. Vita income tax bakersfield ca If your spouse does not have and is not eligible to get an SSN, he must apply for an individual taxpayer identification number (ITIN). Vita income tax bakersfield ca If you are a U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca citizen or resident and you choose to treat your nonresident spouse as a resident and file a joint tax return, your nonresident spouse needs an SSN or an ITIN. Vita income tax bakersfield ca Alien spouses who are claimed as exemptions or dependents are also required to furnish an SSN or an ITIN. Vita income tax bakersfield ca See Identification Number in chapter 5 for more information. Vita income tax bakersfield ca Generally, you cannot file as married filing jointly if either spouse was a nonresident alien at any time during the tax year. Vita income tax bakersfield ca However, nonresident aliens married to U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca citizens or residents can choose to be treated as U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca residents and file joint returns. Vita income tax bakersfield ca For more information on this choice, see Nonresident Spouse Treated as a Resident in chapter 1. Vita income tax bakersfield ca Assuming both of you had these visas for all of last year, you are a resident alien. Vita income tax bakersfield ca Your husband is a nonresident alien if he has not been in the United States as a student for more than 5 years. Vita income tax bakersfield ca You and your husband can file a joint tax return on Form 1040, 1040A, or 1040EZ if he makes the choice to be treated as a resident for the entire year. Vita income tax bakersfield ca See Nonresident Spouse Treated as a Resident in chapter 1. Vita income tax bakersfield ca If your husband does not make this choice, you must file a separate return on Form 1040 or Form 1040A. Vita income tax bakersfield ca Your husband must file Form 1040NR or 1040NR-EZ. Vita income tax bakersfield ca No. Vita income tax bakersfield ca A dual-resident taxpayer is one who is a resident of both the United States and another country under each country's tax laws. Vita income tax bakersfield ca See Effect of Tax Treaties in chapter 1. Vita income tax bakersfield ca You are a dual-status taxpayer when you are both a resident alien and a nonresident alien in the same year. Vita income tax bakersfield ca See chapter 6 . Vita income tax bakersfield ca The following rules apply if the dividends and capital gains are not effectively connected with a U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca trade or business. Vita income tax bakersfield ca Capital gains are generally not taxable if you were in the United States for less than 183 days during the year. Vita income tax bakersfield ca See Sales or Exchanges of Capital Assets in chapter 4 for more information and exceptions. Vita income tax bakersfield ca Dividends are generally taxed at a 30% (or lower treaty) rate. Vita income tax bakersfield ca The brokerage company or payor of the dividends should withhold this tax at source. Vita income tax bakersfield ca If tax is not withheld at the correct rate, you must file Form 1040NR to receive a refund or pay any additional tax due. Vita income tax bakersfield ca If the capital gains and dividends are effectively connected with a U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca trade or business, they are taxed according to the same rules and at the same rates that apply to U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca citizens and residents. Vita income tax bakersfield ca If you are a nonresident alien, 85% of any U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca social security benefits (and the equivalent portion of tier 1 railroad retirement benefits) you receive is subject to the flat 30% tax, unless exempt, or subject to a lower treaty rate. Vita income tax bakersfield ca See The 30% Tax in chapter 4. Vita income tax bakersfield ca If you are a nonresident alien and the scholarship is not from U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca sources, it is not subject to U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca tax. Vita income tax bakersfield ca See Scholarships, Grants, Prizes, and Awards in chapter 2 to determine whether your scholarship is from U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca sources. Vita income tax bakersfield ca If your scholarship is from U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca sources or you are a resident alien, your scholarship is subject to U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca tax according to the following rules. Vita income tax bakersfield ca If you are a candidate for a degree, you may be able to exclude from your income the part of the scholarship you use to pay for tuition, fees, books, supplies, and equipment required by the educational institution. Vita income tax bakersfield ca However, the part of the scholarship you use to pay for other expenses, such as room and board, is taxable. Vita income tax bakersfield ca See Scholarships and Fellowship Grants in chapter 3 for more information. Vita income tax bakersfield ca If you are not a candidate for a degree, your scholarship is taxable. Vita income tax bakersfield ca Nonresident aliens cannot claim the standard deduction. Vita income tax bakersfield ca However, see Students and business apprentices from India , under Itemized Deductions in chapter 5 for an exception. Vita income tax bakersfield ca You cannot claim the standard deduction allowed on Form 1040. Vita income tax bakersfield ca However, you can itemize any allowable deductions. Vita income tax bakersfield ca Nonresident aliens can claim some of the same itemized deductions that resident aliens can claim. Vita income tax bakersfield ca However, nonresident aliens can claim itemized deductions only if they have income effectively connected with their U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca trade or business. Vita income tax bakersfield ca See Itemized Deductions in chapter 5. Vita income tax bakersfield ca Resident aliens can claim personal exemptions and exemptions for dependents in the same way as U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca citizens. Vita income tax bakersfield ca However, nonresident aliens generally can claim only a personal exemption for themselves on their U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca tax return. Vita income tax bakersfield ca There are special rules for residents of Mexico, Canada, and South Korea; for U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca nationals; and for students and business apprentices from India. Vita income tax bakersfield ca See Exemptions in chapter 5. Vita income tax bakersfield ca As a dual-status taxpayer, you usually will be able to claim your own personal exemption. Vita income tax bakersfield ca Subject to the general rules for qualification, you can claim exemptions for your spouse and dependents when you figure taxable income for the part of the year you are a resident alien. Vita income tax bakersfield ca The amount you can claim for these exemptions is limited to your taxable income (figured before subtracting exemptions) for the part of the year you are a resident alien. Vita income tax bakersfield ca You cannot use exemptions (other than your own) to reduce taxable income to less than zero for that period. Vita income tax bakersfield ca If you are a nonresident alien for any part of the year, you cannot claim the earned income credit. Vita income tax bakersfield ca See chapter 6 for more information on dual-status aliens. Vita income tax bakersfield ca If you are a nonresident alien for any part of the year, you generally cannot claim the education credits. Vita income tax bakersfield ca However, if you are married and choose to file a joint return with a U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca citizen or resident spouse, you may be eligible for these credits. Vita income tax bakersfield ca See Nonresident Spouse Treated as a Resident in chapter 1. Vita income tax bakersfield ca Generally, services you perform 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 you perform the services to carry out the purpose for which you were admitted to the United States. Vita income tax bakersfield ca See Social Security and Medicare Taxes in chapter 8. Vita income tax bakersfield ca 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. Vita income tax bakersfield ca 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. Vita income tax bakersfield ca Do not use Form 843 to request a refund of Additional Medicare Tax. Vita income tax bakersfield ca See Refund of Taxes Withheld in Error in chapter 8. Vita income tax bakersfield ca Before leaving the United States, aliens generally must obtain a certificate of compliance. Vita income tax bakersfield ca This document, also popularly known as the sailing permit or departure permit, is part of the income tax form you must file before leaving. Vita income tax bakersfield ca You will receive a sailing or departure permit after filing a Form 1040-C or Form 2063. Vita income tax bakersfield ca These forms are discussed in chapter 11. Vita income tax bakersfield ca Form 1040-C is not an annual U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca income tax return. Vita income tax bakersfield ca If an income tax return is required by law, you must file that return even though you already filed a Form 1040-C. Vita income tax bakersfield ca Chapters 5 and 7 discuss filing an annual U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca income tax return. Vita income tax bakersfield ca . Vita income tax bakersfield ca I am a nonresident alien with no dependents. Vita income tax bakersfield ca I am working temporarily for a U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca company. Vita income tax bakersfield ca What return do I file? You must file Form 1040NR if you are engaged in a trade or business in the United States, or have any other U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca source income on which tax was not fully paid by the amount withheld. Vita income tax bakersfield ca You can use Form 1040NR-EZ instead of Form 1040NR if you meet all 11 conditions listed under Form 1040NR-EZ in chapter 7. Vita income tax bakersfield ca You were a dual-status alien last year. Vita income tax bakersfield ca As a general rule, because you were in the United States for 183 days or more, you have met the substantial presence test and you are taxed as a resident. Vita income tax bakersfield ca However, for the part of the year that you were not present in the United States, you are a nonresident. Vita income tax bakersfield ca File Form 1040. Vita income tax bakersfield ca Print “Dual-Status Return” across the top. Vita income tax bakersfield ca Attach a statement showing your U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca source income for the part of the year you were a nonresident. Vita income tax bakersfield ca You may use Form 1040NR as the statement. Vita income tax bakersfield ca Print “Dual-Status Statement” across the top. Vita income tax bakersfield ca See First Year of Residency in chapter 1 for rules on determining your residency starting date. Vita income tax bakersfield ca If you are an employee and you receive wages subject to U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca income tax withholding, you must generally file by the 15th day of the 4th month after your tax year ends. Vita income tax bakersfield ca If you file for the 2013 calendar year, your return is due April 15, 2014. Vita income tax bakersfield ca If you are not an employee who receives wages subject to U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca income tax withholding, you must file by the 15th day of the 6th month after your tax year ends. Vita income tax bakersfield ca For the 2013 calendar year, file your return by June 16, 2014. Vita income tax bakersfield ca For more information on when and where to file, see chapter 7 . Vita income tax bakersfield ca A social security number (SSN) must be furnished on returns, statements, and other tax-related documents. Vita income tax bakersfield ca If your spouse does not have and is not eligible to get an SSN, he must apply for an individual taxpayer identification number (ITIN). Vita income tax bakersfield ca If you are a U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca citizen or resident and you choose to treat your nonresident spouse as a resident and file a joint tax return, your nonresident spouse needs an SSN or an ITIN. Vita income tax bakersfield ca Alien spouses who are claimed as exemptions or dependents are also required to furnish an SSN or an ITIN. Vita income tax bakersfield ca See Identification Number in chapter 5 for more information. Vita income tax bakersfield ca Generally, you cannot file as married filing jointly if either spouse was a nonresident alien at any time during the tax year. Vita income tax bakersfield ca However, nonresident aliens married to U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca citizens or residents can choose to be treated as U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca residents and file joint returns. Vita income tax bakersfield ca For more information on this choice, see Nonresident Spouse Treated as a Resident in chapter 1. Vita income tax bakersfield ca Assuming both of you had these visas for all of last year, you are a resident alien. Vita income tax bakersfield ca Your husband is a nonresident alien if he has not been in the United States as a student for more than 5 years. Vita income tax bakersfield ca You and your husband can file a joint tax return on Form 1040, 1040A, or 1040EZ if he makes the choice to be treated as a resident for the entire year. Vita income tax bakersfield ca See Nonresident Spouse Treated as a Resident in chapter 1. Vita income tax bakersfield ca If your husband does not make this choice, you must file a separate return on Form 1040 or Form 1040A. Vita income tax bakersfield ca Your husband must file Form 1040NR or 1040NR-EZ. Vita income tax bakersfield ca No. Vita income tax bakersfield ca A dual-resident taxpayer is one who is a resident of both the United States and another country under each country's tax laws. Vita income tax bakersfield ca See Effect of Tax Treaties in chapter 1. Vita income tax bakersfield ca You are a dual-status taxpayer when you are both a resident alien and a nonresident alien in the same year. Vita income tax bakersfield ca See chapter 6 . Vita income tax bakersfield ca The following rules apply if the dividends and capital gains are not effectively connected with a U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca trade or business. Vita income tax bakersfield ca Capital gains are generally not taxable if you were in the United States for less than 183 days during the year. Vita income tax bakersfield ca See Sales or Exchanges of Capital Assets in chapter 4 for more information and exceptions. Vita income tax bakersfield ca Dividends are generally taxed at a 30% (or lower treaty) rate. Vita income tax bakersfield ca The brokerage company or payor of the dividends should withhold this tax at source. Vita income tax bakersfield ca If tax is not withheld at the correct rate, you must file Form 1040NR to receive a refund or pay any additional tax due. Vita income tax bakersfield ca If the capital gains and dividends are effectively connected with a U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca trade or business, they are taxed according to the same rules and at the same rates that apply to U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca citizens and residents. Vita income tax bakersfield ca If you are a nonresident alien, 85% of any U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca social security benefits (and the equivalent portion of tier 1 railroad retirement benefits) you receive is subject to the flat 30% tax, unless exempt, or subject to a lower treaty rate. Vita income tax bakersfield ca See The 30% Tax in chapter 4. Vita income tax bakersfield ca If you are a nonresident alien and the scholarship is not from U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca sources, it is not subject to U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca tax. Vita income tax bakersfield ca See Scholarships, Grants, Prizes, and Awards in chapter 2 to determine whether your scholarship is from U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca sources. Vita income tax bakersfield ca If your scholarship is from U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca sources or you are a resident alien, your scholarship is subject to U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca tax according to the following rules. Vita income tax bakersfield ca If you are a candidate for a degree, you may be able to exclude from your income the part of the scholarship you use to pay for tuition, fees, books, supplies, and equipment required by the educational institution. Vita income tax bakersfield ca However, the part of the scholarship you use to pay for other expenses, such as room and board, is taxable. Vita income tax bakersfield ca See Scholarships and Fellowship Grants in chapter 3 for more information. Vita income tax bakersfield ca If you are not a candidate for a degree, your scholarship is taxable. Vita income tax bakersfield ca Nonresident aliens cannot claim the standard deduction. Vita income tax bakersfield ca However, see Students and business apprentices from India , under Itemized Deductions in chapter 5 for an exception. Vita income tax bakersfield ca You cannot claim the standard deduction allowed on Form 1040. Vita income tax bakersfield ca However, you can itemize any allowable deductions. Vita income tax bakersfield ca Nonresident aliens can claim some of the same itemized deductions that resident aliens can claim. Vita income tax bakersfield ca However, nonresident aliens can claim itemized deductions only if they have income effectively connected with their U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca trade or business. Vita income tax bakersfield ca See Itemized Deductions in chapter 5. Vita income tax bakersfield ca Resident aliens can claim personal exemptions and exemptions for dependents in the same way as U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca citizens. Vita income tax bakersfield ca However, nonresident aliens generally can claim only a personal exemption for themselves on their U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca tax return. Vita income tax bakersfield ca There are special rules for residents of Mexico, Canada, and South Korea; for U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca nationals; and for students and business apprentices from India. Vita income tax bakersfield ca See Exemptions in chapter 5. Vita income tax bakersfield ca As a dual-status taxpayer, you usually will be able to claim your own personal exemption. Vita income tax bakersfield ca Subject to the general rules for qualification, you can claim exemptions for your spouse and dependents when you figure taxable income for the part of the year you are a resident alien. Vita income tax bakersfield ca The amount you can claim for these exemptions is limited to your taxable income (figured before subtracting exemptions) for the part of the year you are a resident alien. Vita income tax bakersfield ca You cannot use exemptions (other than your own) to reduce taxable income to less than zero for that period. Vita income tax bakersfield ca If you are a nonresident alien for any part of the year, you cannot claim the earned income credit. Vita income tax bakersfield ca See chapter 6 for more information on dual-status aliens. Vita income tax bakersfield ca If you are a nonresident alien for any part of the year, you generally cannot claim the education credits. Vita income tax bakersfield ca However, if you are married and choose to file a joint return with a U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca citizen or resident spouse, you may be eligible for these credits. Vita income tax bakersfield ca See Nonresident Spouse Treated as a Resident in chapter 1. Vita income tax bakersfield ca Generally, services you perform 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 you perform the services to carry out the purpose for which you were admitted to the United States. Vita income tax bakersfield ca See Social Security and Medicare Taxes in chapter 8. Vita income tax bakersfield ca 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. Vita income tax bakersfield ca 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. Vita income tax bakersfield ca Do not use Form 843 to request a refund of Additional Medicare Tax. Vita income tax bakersfield ca See Refund of Taxes Withheld in Error in chapter 8. Vita income tax bakersfield ca Before leaving the United States, aliens generally must obtain a certificate of compliance. Vita income tax bakersfield ca This document, also popularly known as the sailing permit or departure permit, is part of the income tax form you must file before leaving. Vita income tax bakersfield ca You will receive a sailing or departure permit after filing a Form 1040-C or Form 2063. Vita income tax bakersfield ca These forms are discussed in chapter 11. Vita income tax bakersfield ca Form 1040-C is not an annual U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca income tax return. Vita income tax bakersfield ca If an income tax return is required by law, you must file that return even though you already filed a Form 1040-C. Vita income tax bakersfield ca Chapters 5 and 7 discuss filing an annual U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca income tax return. Vita income tax bakersfield ca . Vita income tax bakersfield ca I came to the United States on June 30th of last year. Vita income tax bakersfield ca I have an H-1B Visa. Vita income tax bakersfield ca What is my tax status, resident alien or nonresident alien? What tax return do I file? You were a dual-status alien last year. Vita income tax bakersfield ca As a general rule, because you were in the United States for 183 days or more, you have met the substantial presence test and you are taxed as a resident. Vita income tax bakersfield ca However, for the part of the year that you were not present in the United States, you are a nonresident. Vita income tax bakersfield ca File Form 1040. Vita income tax bakersfield ca Print “Dual-Status Return” across the top. Vita income tax bakersfield ca Attach a statement showing your U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca source income for the part of the year you were a nonresident. Vita income tax bakersfield ca You may use Form 1040NR as the statement. Vita income tax bakersfield ca Print “Dual-Status Statement” across the top. Vita income tax bakersfield ca See First Year of Residency in chapter 1 for rules on determining your residency starting date. Vita income tax bakersfield ca If you are an employee and you receive wages subject to U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca income tax withholding, you must generally file by the 15th day of the 4th month after your tax year ends. Vita income tax bakersfield ca If you file for the 2013 calendar year, your return is due April 15, 2014. Vita income tax bakersfield ca If you are not an employee who receives wages subject to U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca income tax withholding, you must file by the 15th day of the 6th month after your tax year ends. Vita income tax bakersfield ca For the 2013 calendar year, file your return by June 16, 2014. Vita income tax bakersfield ca For more information on when and where to file, see chapter 7 . Vita income tax bakersfield ca A social security number (SSN) must be furnished on returns, statements, and other tax-related documents. Vita income tax bakersfield ca If your spouse does not have and is not eligible to get an SSN, he must apply for an individual taxpayer identification number (ITIN). Vita income tax bakersfield ca If you are a U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca citizen or resident and you choose to treat your nonresident spouse as a resident and file a joint tax return, your nonresident spouse needs an SSN or an ITIN. Vita income tax bakersfield ca Alien spouses who are claimed as exemptions or dependents are also required to furnish an SSN or an ITIN. Vita income tax bakersfield ca See Identification Number in chapter 5 for more information. Vita income tax bakersfield ca Generally, you cannot file as married filing jointly if either spouse was a nonresident alien at any time during the tax year. Vita income tax bakersfield ca However, nonresident aliens married to U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca citizens or residents can choose to be treated as U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca residents and file joint returns. Vita income tax bakersfield ca For more information on this choice, see Nonresident Spouse Treated as a Resident in chapter 1. Vita income tax bakersfield ca Assuming both of you had these visas for all of last year, you are a resident alien. Vita income tax bakersfield ca Your husband is a nonresident alien if he has not been in the United States as a student for more than 5 years. Vita income tax bakersfield ca You and your husband can file a joint tax return on Form 1040, 1040A, or 1040EZ if he makes the choice to be treated as a resident for the entire year. Vita income tax bakersfield ca See Nonresident Spouse Treated as a Resident in chapter 1. Vita income tax bakersfield ca If your husband does not make this choice, you must file a separate return on Form 1040 or Form 1040A. Vita income tax bakersfield ca Your husband must file Form 1040NR or 1040NR-EZ. Vita income tax bakersfield ca No. Vita income tax bakersfield ca A dual-resident taxpayer is one who is a resident of both the United States and another country under each country's tax laws. Vita income tax bakersfield ca See Effect of Tax Treaties in chapter 1. Vita income tax bakersfield ca You are a dual-status taxpayer when you are both a resident alien and a nonresident alien in the same year. Vita income tax bakersfield ca See chapter 6 . Vita income tax bakersfield ca The following rules apply if the dividends and capital gains are not effectively connected with a U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca trade or business. Vita income tax bakersfield ca Capital gains are generally not taxable if you were in the United States for less than 183 days during the year. Vita income tax bakersfield ca See Sales or Exchanges of Capital Assets in chapter 4 for more information and exceptions. Vita income tax bakersfield ca Dividends are generally taxed at a 30% (or lower treaty) rate. Vita income tax bakersfield ca The brokerage company or payor of the dividends should withhold this tax at source. Vita income tax bakersfield ca If tax is not withheld at the correct rate, you must file Form 1040NR to receive a refund or pay any additional tax due. Vita income tax bakersfield ca If the capital gains and dividends are effectively connected with a U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca trade or business, they are taxed according to the same rules and at the same rates that apply to U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca citizens and residents. Vita income tax bakersfield ca If you are a nonresident alien, 85% of any U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca social security benefits (and the equivalent portion of tier 1 railroad retirement benefits) you receive is subject to the flat 30% tax, unless exempt, or subject to a lower treaty rate. Vita income tax bakersfield ca See The 30% Tax in chapter 4. Vita income tax bakersfield ca If you are a nonresident alien and the scholarship is not from U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca sources, it is not subject to U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca tax. Vita income tax bakersfield ca See Scholarships, Grants, Prizes, and Awards in chapter 2 to determine whether your scholarship is from U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca sources. Vita income tax bakersfield ca If your scholarship is from U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca sources or you are a resident alien, your scholarship is subject to U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca tax according to the following rules. Vita income tax bakersfield ca If you are a candidate for a degree, you may be able to exclude from your income the part of the scholarship you use to pay for tuition, fees, books, supplies, and equipment required by the educational institution. Vita income tax bakersfield ca However, the part of the scholarship you use to pay for other expenses, such as room and board, is taxable. Vita income tax bakersfield ca See Scholarships and Fellowship Grants in chapter 3 for more information. Vita income tax bakersfield ca If you are not a candidate for a degree, your scholarship is taxable. Vita income tax bakersfield ca Nonresident aliens cannot claim the standard deduction. Vita income tax bakersfield ca However, see Students and business apprentices from India , under Itemized Deductions in chapter 5 for an exception. Vita income tax bakersfield ca You cannot claim the standard deduction allowed on Form 1040. Vita income tax bakersfield ca However, you can itemize any allowable deductions. Vita income tax bakersfield ca Nonresident aliens can claim some of the same itemized deductions that resident aliens can claim. Vita income tax bakersfield ca However, nonresident aliens can claim itemized deductions only if they have income effectively connected with their U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca trade or business. Vita income tax bakersfield ca See Itemized Deductions in chapter 5. Vita income tax bakersfield ca Resident aliens can claim personal exemptions and exemptions for dependents in the same way as U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca citizens. Vita income tax bakersfield ca However, nonresident aliens generally can claim only a personal exemption for themselves on their U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca tax return. Vita income tax bakersfield ca There are special rules for residents of Mexico, Canada, and South Korea; for U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca nationals; and for students and business apprentices from India. Vita income tax bakersfield ca See Exemptions in chapter 5. Vita income tax bakersfield ca As a dual-status taxpayer, you usually will be able to claim your own personal exemption. Vita income tax bakersfield ca Subject to the general rules for qualification, you can claim exemptions for your spouse and dependents when you figure taxable income for the part of the year you are a resident alien. Vita income tax bakersfield ca The amount you can claim for these exemptions is limited to your taxable income (figured before subtracting exemptions) for the part of the year you are a resident alien. Vita income tax bakersfield ca You cannot use exemptions (other than your own) to reduce taxable income to less than zero for that period. Vita income tax bakersfield ca If you are a nonresident alien for any part of the year, you cannot claim the earned income credit. Vita income tax bakersfield ca See chapter 6 for more information on dual-status aliens. Vita income tax bakersfield ca If you are a nonresident alien for any part of the year, you generally cannot claim the education credits. Vita income tax bakersfield ca However, if you are married and choose to file a joint return with a U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca citizen or resident spouse, you may be eligible for these credits. Vita income tax bakersfield ca See Nonresident Spouse Treated as a Resident in chapter 1. Vita income tax bakersfield ca Generally, services you perform 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 you perform the services to carry out the purpose for which you were admitted to the United States. Vita income tax bakersfield ca See Social Security and Medicare Taxes in chapter 8. Vita income tax bakersfield ca 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. Vita income tax bakersfield ca 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. Vita income tax bakersfield ca Do not use Form 843 to request a refund of Additional Medicare Tax. Vita income tax bakersfield ca See Refund of Taxes Withheld in Error in chapter 8. Vita income tax bakersfield ca Before leaving the United States, aliens generally must obtain a certificate of compliance. Vita income tax bakersfield ca This document, also popularly known as the sailing permit or departure permit, is part of the income tax form you must file before leaving. Vita income tax bakersfield ca You will receive a sailing or departure permit after filing a Form 1040-C or Form 2063. Vita income tax bakersfield ca These forms are discussed in chapter 11. Vita income tax bakersfield ca Form 1040-C is not an annual U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca income tax return. Vita income tax bakersfield ca If an income tax return is required by law, you must file that return even though you already filed a Form 1040-C. Vita income tax bakersfield ca Chapters 5 and 7 discuss filing an annual U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca income tax return. Vita income tax bakersfield ca . Vita income tax bakersfield ca When is my Form 1040NR due? If you are an employee and you receive wages subject to U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca income tax withholding, you must generally file by the 15th day of the 4th month after your tax year ends. Vita income tax bakersfield ca If you file for the 2013 calendar year, your return is due April 15, 2014. Vita income tax bakersfield ca If you are not an employee who receives wages subject to U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca income tax withholding, you must file by the 15th day of the 6th month after your tax year ends. Vita income tax bakersfield ca For the 2013 calendar year, file your return by June 16, 2014. Vita income tax bakersfield ca For more information on when and where to file, see chapter 7 . Vita income tax bakersfield ca A social security number (SSN) must be furnished on returns, statements, and other tax-related documents. Vita income tax bakersfield ca If your spouse does not have and is not eligible to get an SSN, he must apply for an individual taxpayer identification number (ITIN). Vita income tax bakersfield ca If you are a U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca citizen or resident and you choose to treat your nonresident spouse as a resident and file a joint tax return, your nonresident spouse needs an SSN or an ITIN. Vita income tax bakersfield ca Alien spouses who are claimed as exemptions or dependents are also required to furnish an SSN or an ITIN. Vita income tax bakersfield ca See Identification Number in chapter 5 for more information. Vita income tax bakersfield ca Generally, you cannot file as married filing jointly if either spouse was a nonresident alien at any time during the tax year. Vita income tax bakersfield ca However, nonresident aliens married to U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca citizens or residents can choose to be treated as U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca residents and file joint returns. Vita income tax bakersfield ca For more information on this choice, see Nonresident Spouse Treated as a Resident in chapter 1. Vita income tax bakersfield ca Assuming both of you had these visas for all of last year, you are a resident alien. Vita income tax bakersfield ca Your husband is a nonresident alien if he has not been in the United States as a student for more than 5 years. Vita income tax bakersfield ca You and your husband can file a joint tax return on Form 1040, 1040A, or 1040EZ if he makes the choice to be treated as a resident for the entire year. Vita income tax bakersfield ca See Nonresident Spouse Treated as a Resident in chapter 1. Vita income tax bakersfield ca If your husband does not make this choice, you must file a separate return on Form 1040 or Form 1040A. Vita income tax bakersfield ca Your husband must file Form 1040NR or 1040NR-EZ. Vita income tax bakersfield ca No. Vita income tax bakersfield ca A dual-resident taxpayer is one who is a resident of both the United States and another country under each country's tax laws. Vita income tax bakersfield ca See Effect of Tax Treaties in chapter 1. Vita income tax bakersfield ca You are a dual-status taxpayer when you are both a resident alien and a nonresident alien in the same year. Vita income tax bakersfield ca See chapter 6 . Vita income tax bakersfield ca The following rules apply if the dividends and capital gains are not effectively connected with a U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca trade or business. Vita income tax bakersfield ca Capital gains are generally not taxable if you were in the United States for less than 183 days during the year. Vita income tax bakersfield ca See Sales or Exchanges of Capital Assets in chapter 4 for more information and exceptions. Vita income tax bakersfield ca Dividends are generally taxed at a 30% (or lower treaty) rate. Vita income tax bakersfield ca The brokerage company or payor of the dividends should withhold this tax at source. Vita income tax bakersfield ca If tax is not withheld at the correct rate, you must file Form 1040NR to receive a refund or pay any additional tax due. Vita income tax bakersfield ca If the capital gains and dividends are effectively connected with a U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca trade or business, they are taxed according to the same rules and at the same rates that apply to U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca citizens and residents. Vita income tax bakersfield ca If you are a nonresident alien, 85% of any U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca social security benefits (and the equivalent portion of tier 1 railroad retirement benefits) you receive is subject to the flat 30% tax, unless exempt, or subject to a lower treaty rate. Vita income tax bakersfield ca See The 30% Tax in chapter 4. Vita income tax bakersfield ca If you are a nonresident alien and the scholarship is not from U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca sources, it is not subject to U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca tax. Vita income tax bakersfield ca See Scholarships, Grants, Prizes, and Awards in chapter 2 to determine whether your scholarship is from U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca sources. Vita income tax bakersfield ca If your scholarship is from U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca sources or you are a resident alien, your scholarship is subject to U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca tax according to the following rules. Vita income tax bakersfield ca If you are a candidate for a degree, you may be able to exclude from your income the part of the scholarship you use to pay for tuition, fees, books, supplies, and equipment required by the educational institution. Vita income tax bakersfield ca However, the part of the scholarship you use to pay for other expenses, such as room and board, is taxable. Vita income tax bakersfield ca See Scholarships and Fellowship Grants in chapter 3 for more information. Vita income tax bakersfield ca If you are not a candidate for a degree, your scholarship is taxable. Vita income tax bakersfield ca Nonresident aliens cannot claim the standard deduction. Vita income tax bakersfield ca However, see Students and business apprentices from India , under Itemized Deductions in chapter 5 for an exception. Vita income tax bakersfield ca You cannot claim the standard deduction allowed on Form 1040. Vita income tax bakersfield ca However, you can itemize any allowable deductions. Vita income tax bakersfield ca Nonresident aliens can claim some of the same itemized deductions that resident aliens can claim. Vita income tax bakersfield ca However, nonresident aliens can claim itemized deductions only if they have income effectively connected with their U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca trade or business. Vita income tax bakersfield ca See Itemized Deductions in chapter 5. Vita income tax bakersfield ca Resident aliens can claim personal exemptions and exemptions for dependents in the same way as U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca citizens. Vita income tax bakersfield ca However, nonresident aliens generally can claim only a personal exemption for themselves on their U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca tax return. Vita income tax bakersfield ca There are special rules for residents of Mexico, Canada, and South Korea; for U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca nationals; and for students and business apprentices from India. Vita income tax bakersfield ca See Exemptions in chapter 5. Vita income tax bakersfield ca As a dual-status taxpayer, you usually will be able to claim your own personal exemption. Vita income tax bakersfield ca Subject to the general rules for qualification, you can claim exemptions for your spouse and dependents when you figure taxable income for the part of the year you are a resident alien. Vita income tax bakersfield ca The amount you can claim for these exemptions is limited to your taxable income (figured before subtracting exemptions) for the part of the year you are a resident alien. Vita income tax bakersfield ca You cannot use exemptions (other than your own) to reduce taxable income to less than zero for that period. Vita income tax bakersfield ca If you are a nonresident alien for any part of the year, you cannot claim the earned income credit. Vita income tax bakersfield ca See chapter 6 for more information on dual-status aliens. Vita income tax bakersfield ca If you are a nonresident alien for any part of the year, you generally cannot claim the education credits. Vita income tax bakersfield ca However, if you are married and choose to file a joint return with a U. Vita income tax bakersfield ca S. Vita income tax bakersfield ca citizen or resident spouse, you may be eligible for these credits. Vita income tax bakersfield ca See Nonresident Spouse Treated as a Resident in chapter 1. Vita income tax bakersfield ca Generally, services you perform 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 you perform the services to carry out the purpose