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Www irs gov freefile 1. Www irs gov freefile   Filing and Paying Business Taxes Table of Contents Introduction Useful Items - You may want to see: Identification NumbersNew EIN. Www irs gov freefile Employee. Www irs gov freefile Other payee. Www irs gov freefile Income TaxDo I Have To File an Income Tax Return? How Do I File? IRS e-file (Electronic Filing) When Is My Tax Return Due? How Do I Pay Income Tax? Self-Employment (SE) TaxHow to become insured under social security. Www irs gov freefile Earning credits in 2013 and 2014. Www irs gov freefile Employment Taxes Excise Taxes Information ReturnsWaiver of penalties. Www irs gov freefile Penalties. Www irs gov freefile Introduction This chapter explains the business taxes you may have to pay and the forms you may have to file. Www irs gov freefile It also discusses taxpayer identification numbers. Www irs gov freefile Table 1-1 lists the benefits of filing electronically. Www irs gov freefile Table 1-2 lists the federal taxes you may have to pay, their due dates, and the forms you use to report them. Www irs gov freefile Table 1-3 provides checklists that highlight the typical forms and schedules you may need to file if you ever go out of business. Www irs gov freefile You may want to get Publication 509, Tax Calendars. Www irs gov freefile It has tax calendars that tell you when to file returns and make tax payments. Www irs gov freefile Useful Items - You may want to see: Publication 505 Tax Withholding and Estimated Tax Form (and Instructions) 1040 U. Www irs gov freefile S. Www irs gov freefile Individual Income Tax Return 1040-ES Estimated Tax for Individuals Sch C (Form 1040) Profit or Loss From Business Sch C-EZ (Form 1040) Net Profit From Business Sch SE (Form 1040) Self-Employment Tax See chapter 12 for information about getting publications and forms. Www irs gov freefile Identification Numbers This section explains three types of taxpayer identification numbers, who needs them, when to use them, and how to get them. Www irs gov freefile Social security number (SSN). Www irs gov freefile   Generally, use your SSN as your taxpayer identification number. Www irs gov freefile You must put this number on each of your individual income tax forms, such as Form 1040 and its schedules. Www irs gov freefile   To apply for an SSN, use Form SS-5, Application for a Social Security Card. Www irs gov freefile This form is available at Social Security Administration (SSA) offices or by calling 1-800-772-1213. Www irs gov freefile It is also available from the SSA website at www. Www irs gov freefile socialsecurity. Www irs gov freefile gov. Www irs gov freefile Individual taxpayer identification number (ITIN). Www irs gov freefile   The IRS will issue an ITIN if you are a nonresident or resident alien and you do not have and are not eligible to get an SSN. Www irs gov freefile In general, if you need to obtain an ITIN, you must attach Form W-7, Application for IRS Individual Taxpayer Identification Number, with your signed, original, completed tax return and any other required documentation and mail them to the following address. Www irs gov freefile  Internal Revenue Service ITIN Operation P. Www irs gov freefile O. Www irs gov freefile Box 149342 Austin, TX 78714-9342 The exceptions are covered in detail in the instructions for Form W-7. Www irs gov freefile If you must include another person's SSN on your return and that person does not have and cannot get an SSN, enter that person's ITIN. Www irs gov freefile The application is also available in Spanish. Www irs gov freefile The form is available at IRS. Www irs gov freefile gov or you can call 1-800-829-3676 to order the form. Www irs gov freefile    An ITIN is for tax use only. Www irs gov freefile It does not entitle the holder to social security benefits or change the holder's employment or immigration status. Www irs gov freefile Employer identification number (EIN). Www irs gov freefile   You must also have an EIN to use as a taxpayer identification number if you do either of the following. Www irs gov freefile Pay wages to one or more employees. Www irs gov freefile File pension or excise tax returns. Www irs gov freefile   If you must have an EIN, include it along with your SSN on your Schedule C or C-EZ. Www irs gov freefile   You can apply for an EIN: Online by clicking on the Employer ID Numbers (EINs) link at www. Www irs gov freefile irs. Www irs gov freefile gov/businesses/small. Www irs gov freefile The EIN is issued immediately once the application information is validated. Www irs gov freefile By telephone at 1-800-829-4933. Www irs gov freefile By mailing or faxing Form SS-4, Application for Employer Identification Number. Www irs gov freefile New EIN. Www irs gov freefile   You may need to get a new EIN if either the form or the ownership of your business changes. Www irs gov freefile For more information, see Publication 1635, Understanding Your EIN. Www irs gov freefile When you need identification numbers of other persons. Www irs gov freefile   In operating your business, you will probably make certain payments you must report on information returns. Www irs gov freefile These payments are discussed under Information Returns, later in this chapter. Www irs gov freefile You must give the recipient of these payments (the payee) a statement showing the total amount paid during the year. Www irs gov freefile You must include the payee's identification number and your identification number on the returns and statements. Www irs gov freefile Employee. Www irs gov freefile   If you have employees, you must get an SSN from each of them. Www irs gov freefile Record the name and SSN of each employee exactly as they are shown on the employee's social security card. Www irs gov freefile If the employee's name is not correct as shown on the card, the employee should request a new card from the SSA. Www irs gov freefile This may occur if the employee's name was changed due to marriage or divorce. Www irs gov freefile   Form W-4, Employee's Withholding Allowance Certificate, is completed by each employee so the correct federal income tax can be withheld from their pay. Www irs gov freefile   If your employee does not have an SSN, he or she should file Form SS-5 with the SSA. Www irs gov freefile Other payee. Www irs gov freefile   If you make payments to someone who is not your employee and you must report the payments on an information return, get that person's SSN. Www irs gov freefile If you must report payments to an organization, such as a corporation or partnership, you must get its EIN. Www irs gov freefile   To get the payee's SSN or EIN, use Form W-9, Request for Taxpayer Identification Number and Certification. Www irs gov freefile   A payee who does not provide you with an identification number may be subject to backup withholding. Www irs gov freefile For information on backup withholding, see the Form W-9 instructions and the General Instructions for Certain Information Returns. Www irs gov freefile Income Tax This part explains whether you have to file an income tax return and when you file it. Www irs gov freefile It also explains how you pay the tax. Www irs gov freefile Do I Have To File an Income Tax Return? You have to file an income tax return for 2013 if your net earnings from self-employment were $400 or more. Www irs gov freefile If your net earnings from self-employment were less than $400, you still have to file an income tax return if you meet any other filing requirement listed in the Form 1040 instructions. Www irs gov freefile How Do I File? File your income tax return on Form 1040 and attach Schedule C or Schedule C-EZ. Www irs gov freefile Enter the net profit or loss from Schedule C or Schedule C-EZ on page 1 of Form 1040. Www irs gov freefile Use Schedule C to figure your net profit or loss from your business. Www irs gov freefile If you operated more than one business as a sole proprietorship, you must attach a separate Schedule C for each business. Www irs gov freefile You can use the simpler Schedule C-EZ if you operated only one business as a sole proprietorship, you did not have a net loss, and you meet the other requirements listed in Part I of the schedule. Www irs gov freefile IRS e-file (Electronic Filing) Please click here for the text description of the image. Www irs gov freefile E-file logo You may be able to file your tax returns electronically using an IRS e-file option. Www irs gov freefile Table 1-1 lists the benefits of IRS e-file. Www irs gov freefile IRS e-file uses automation to replace most of the manual steps needed to process paper returns. Www irs gov freefile As a result, the processing of e-file returns is faster and more accurate than the processing of paper returns. Www irs gov freefile As with a paper return, you are responsible for making sure your return contains accurate information and is filed on time. Www irs gov freefile Using e-file does not affect your chances of an IRS examination of your return. Www irs gov freefile You can file most commonly used business forms using IRS e-file. Www irs gov freefile For more information, visit IRS. Www irs gov freefile gov. Www irs gov freefile Electronic signatures. Www irs gov freefile   Paperless filing is easier than you think and it's available to most taxpayers who file electronically—including those first-time filers who were 16 or older at the end of 2013. Www irs gov freefile If you file electronically using tax preparation software or a tax professional, you will participate in the Self-Select PIN (personal identification number) program. Www irs gov freefile If you are married filing jointly, you and your spouse will each need to create a PIN and enter these PINs as your electronic signatures. Www irs gov freefile    To create a PIN, you must know your adjusted gross income (AGI) from your originally filed 2012 income tax return (not from an amended return, Form 1040X, or any math error notice from the IRS). Www irs gov freefile You will also need to provide your date of birth (DOB). Www irs gov freefile Make sure your DOB is accurate and matches the information on record with the Social Security Administration before you e-file. Www irs gov freefile To do this, check your annual Social Security Statement. Www irs gov freefile   With a Self-Select PIN, there is nothing to sign and nothing to mail—not even your Forms W-2. Www irs gov freefile For more details on the Self-Select PIN program, visit IRS. Www irs gov freefile gov. Www irs gov freefile State returns. Www irs gov freefile   In most states, you can file an electronic state return simultaneously with your federal return. Www irs gov freefile For more information, check with your local IRS office, state tax agency, tax professional, or IRS. Www irs gov freefile gov. Www irs gov freefile Refunds. Www irs gov freefile   You can have your refund check mailed to you, or you can have your refund deposited directly to your checking or savings account. Www irs gov freefile   With e-file, your refund will be issued in half the time as when filing on paper. Www irs gov freefile Most refunds are issued within 3 weeks. Www irs gov freefile If you choose Direct Deposit, you can receive your refund in as few as 10 days. Www irs gov freefile Offset against debts. Www irs gov freefile   As with a paper return, you may not get all of your refund if you owe certain past-due amounts, such as federal tax, state tax, a student loan, or child support. Www irs gov freefile You will be notified if the refund you claimed has been offset against your debts. Www irs gov freefile Refund inquiries. Www irs gov freefile   You can check the status of your refund if it has been at least 24 hours (4 weeks if you mailed a paper return) from the date you filed your return. Www irs gov freefile Be sure to have a copy of your tax return available because you will need to know the filing status, the first social security number shown on the return, and the exact whole-dollar amount of the refund. Www irs gov freefile To check on your refund, do one of the following. Www irs gov freefile Go to IRS. Www irs gov freefile gov and click on Where's My Refund. Www irs gov freefile Call 1-800-829-4477 for automated refund information, and follow the recorded instructions. Www irs gov freefile Call 1-800-829-1954 during the hours shown in your form instructions. Www irs gov freefile Balance due. Www irs gov freefile   If you owe tax, you must pay it by April 15, 2014, to avoid late-payment penalties and interest. Www irs gov freefile You can make your payment electronically by scheduling an electronic funds withdrawal from your checking or savings account or by credit card. Www irs gov freefile Using an Authorized IRS e-file Provider Many tax professionals can electronically file paperless returns for their clients. Www irs gov freefile You have two options. Www irs gov freefile You can prepare your return, take it to an authorized IRS e-file provider, and have the provider transmit it electronically to the IRS. Www irs gov freefile You can have an authorized IRS e-file provider prepare your return and transmit it for you electronically. Www irs gov freefile You will be asked to complete Form 8879, IRS e-file Signature Authorization, to authorize the provider to enter your self-selected PIN on your return. Www irs gov freefile Depending on the provider and the specific services requested, a fee may be charged. Www irs gov freefile To find an authorized IRS e-file provider near you, go to IRS. Www irs gov freefile gov or look for an “Authorized IRS e-file Provider” sign. Www irs gov freefile Using Your Personal Computer A computer with Internet access is all you need to file your tax return using IRS e-file. Www irs gov freefile When you use your personal computer, you can e-file your return from your home any time of the day or night. Www irs gov freefile Sign your return electronically using a self-selected PIN to complete the process. Www irs gov freefile There is no signature form to submit or Forms W-2 to send in. Www irs gov freefile Free Internet filing options. Www irs gov freefile   More taxpayers can now prepare and e-file their individual income tax returns free using commercial tax preparation software accessible through IRS. Www irs gov freefile gov or www. Www irs gov freefile usa. Www irs gov freefile gov. Www irs gov freefile The IRS is partnering with the tax software industry to offer free preparation and filing services to a significant number of taxpayers. Www irs gov freefile Security and privacy certificate programs will assure tax data is safe and secure. Www irs gov freefile To see if you qualify for these services, visit the Return Preparation and Filing Options page at IRS. Www irs gov freefile gov. Www irs gov freefile   If you cannot use the free services, you can buy tax preparation software at various electronics stores or computer and office supply stores. Www irs gov freefile You can also download software from the Internet or prepare and file your return completely online by using tax preparation software available on the Internet. Www irs gov freefile Filing Through Employers and Financial Institutions Some businesses offer free e-file to their employees, members, or customers. Www irs gov freefile Others offer it for a fee. Www irs gov freefile Ask your employer or financial institution if they offer IRS e-file as an employee, member, or customer benefit. Www irs gov freefile Free Help With Your Return Free help in preparing your return is available nationwide from IRS-trained volunteers. Www irs gov freefile The Volunteer Income Tax Assistance (VITA) program is designed to help low-income taxpayers, and the Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 or older with their tax returns. Www irs gov freefile Some locations offer free electronic filing. Www irs gov freefile Table 1-1. Www irs gov freefile Benefits of IRS e-file Accuracy • Your chance of getting an error notice from the IRS is significantly reduced. Www irs gov freefile Security • Your privacy and security are assured. Www irs gov freefile Electronic signatures • Create your own personal identification number (PIN) and file a completely paperless return through your tax preparation software or tax professional. Www irs gov freefile There is nothing to mail. Www irs gov freefile Proof of acceptance • You receive an electronic acknowledgment within 48 hours that the IRS has accepted your return for processing. Www irs gov freefile Fast refunds • You get your refund faster with Direct Deposit—in as few as 10 days. Www irs gov freefile Free Internet filing options • Use IRS. Www irs gov freefile gov to access commercial tax preparation and e-file services available at no cost to eligible taxpayers. Www irs gov freefile Electronic payment options • Convenient, safe, and secure electronic payment options are available. Www irs gov freefile E-file and pay your taxes in a single step. Www irs gov freefile Schedule an electronic funds withdrawal from your checking or savings account (up to and including April 15, 2014) or pay by credit card. Www irs gov freefile Federal/State filing • Prepare and file your federal and state tax returns together and double the benefits you get from e-file. Www irs gov freefile When Is My Tax Return Due? Form 1040 for calendar year 2013 is due by April 15, 2014. Www irs gov freefile If you use a fiscal year (explained in chapter 2), your return is due by the 15th day of the 4th month after the end of your fiscal year. Www irs gov freefile If you file late, you may have to pay penalties and interest. Www irs gov freefile If you cannot file your return on time, use Form 4868, Application for Automatic Extension of Time To File U. Www irs gov freefile S. Www irs gov freefile Individual Income Tax Return, to request an automatic 6-month extension. Www irs gov freefile For calendar year taxpayers, this will extend the tax filing due date until October 15. Www irs gov freefile Filing an extension does not extend the time to pay your taxes, only the time to file the tax return. Www irs gov freefile How Do I Pay Income Tax? Federal income tax is a pay-as-you-go tax. Www irs gov freefile You must pay it as you earn or receive income during the year. Www irs gov freefile An employee usually has income tax withheld from his or her pay. Www irs gov freefile If you do not pay your tax through withholding, or do not pay enough tax that way, you might have to pay estimated tax. Www irs gov freefile You generally have to make estimated tax payments if you expect to owe taxes, including self-employment tax (discussed later), of $1,000 or more when you file your return. Www irs gov freefile Use Form 1040-ES to figure and pay the tax. Www irs gov freefile If you do not have to make estimated tax payments, you can pay any tax due when you file your return. Www irs gov freefile For more information on estimated tax, see Publication 505, Tax Withholding and Estimated Tax. Www irs gov freefile What are my payment options?   You can pay your estimated tax electronically using various options. Www irs gov freefile If you pay electronically, there is no need to mail in Form 1040-ES payment vouchers. Www irs gov freefile These options include: Paying electronically through the Electronic Federal Tax Payment System (EFTPS). Www irs gov freefile Paying by authorizing an electronic funds withdrawal when you file Form 1040 electronically. Www irs gov freefile Paying by credit or debit card over the phone or by Internet. Www irs gov freefile Other options include crediting an overpayment from your 2013 return to your 2014 estimated tax, or mailing a check or money order with a Form 1040-ES payment voucher. Www irs gov freefile EFTPS    To enroll in EFTPS, go to www. Www irs gov freefile eftps. Www irs gov freefile gov or call 1-800-555-4477. Www irs gov freefile When you request a new EIN and you will have a tax obligation, you are automatically enrolled in EFTPS. Www irs gov freefile Benefits of EFTPS: The chance of an error in making your payments is reduced. Www irs gov freefile You receive immediate confirmation of every transaction. Www irs gov freefile Penalty for underpayment of tax. Www irs gov freefile   If you did not pay enough income tax and self-employment tax for 2013 by withholding or by making estimated tax payments, you may have to pay a penalty on the amount not paid. Www irs gov freefile The IRS will figure the penalty for you and send you a bill. Www irs gov freefile Or you can use Form 2210, Underpayment of Estimated Tax by Individuals, Estates, and Trusts, to see if you have to pay a penalty and to figure the penalty amount. Www irs gov freefile For more information, see Publication 505. Www irs gov freefile Self-Employment (SE) Tax Self-employment tax (SE tax) is a social security and Medicare tax primarily for individuals who work for themselves. Www irs gov freefile It is similar to the social security and Medicare taxes withheld from the pay of most wage earners. Www irs gov freefile If you earned income as a statutory employee, you do not pay SE tax on that income. Www irs gov freefile Social security coverage. Www irs gov freefile   Social security benefits are available to self-employed persons just as they are to wage earners. Www irs gov freefile Your payments of SE tax contribute to your coverage under the social security system. Www irs gov freefile Social security coverage provides you with retirement benefits, disability benefits, survivor benefits, and hospital insurance (Medicare) benefits. Www irs gov freefile By not reporting all of your self-employment income, you could cause your social security benefits to be lower when you retire. Www irs gov freefile How to become insured under social security. Www irs gov freefile   You must be insured under the social security system before you begin receiving social security benefits. Www irs gov freefile You are insured if you have the required number of credits (also called quarters of coverage), discussed next. Www irs gov freefile Earning credits in 2013 and 2014. Www irs gov freefile   For 2013, you received one credit, up to a maximum of four credits, for each $1,160 ($1,200 for 2014) of income subject to social security taxes. Www irs gov freefile Therefore, for 2013, if you had income (self-employment and wages) of $4,640 that was subject to social security taxes, you receive four credits ($4,640 ÷ $1,160). Www irs gov freefile   For an explanation of the number of credits you must have to be insured and the benefits available to you and your family under the social security program, consult your nearest Social Security Administration (SSA) office. Www irs gov freefile    Making false statements to get or to increase social security benefits may subject you to penalties. Www irs gov freefile The Social Security Administration (SSA) time limit for posting self-employment income. Www irs gov freefile   Generally, the SSA will give you credit only for self-employment income reported on a tax return filed within 3 years, 3 months, and 15 days after the tax year you earned the income. Www irs gov freefile If you file your tax return or report a change in your self-employment income after this time limit, the SSA may change its records, but only to remove or reduce the amount. Www irs gov freefile The SSA will not change its records to increase your self-employment income. Www irs gov freefile Who must pay self-employment tax. Www irs gov freefile   You must pay SE tax and file Schedule SE (Form 1040) if either of the following applies. Www irs gov freefile Your net earnings from self-employment (excluding church employee income) were $400 or more. Www irs gov freefile You had church employee income of $108. Www irs gov freefile 28 or more. Www irs gov freefile The SE tax rules apply no matter how old you are and even if you are already receiving social security or Medicare benefits. Www irs gov freefile SE tax rate. Www irs gov freefile   For 2013, the SE tax rate on net earnings is 15. Www irs gov freefile 3% (12. Www irs gov freefile 4% social security tax plus 2. Www irs gov freefile 9% Medicare tax). Www irs gov freefile Maximum earnings subject to SE tax. Www irs gov freefile   Only the first $113,700 of your combined wages, tips, and net earnings in 2013 is subject to any combination of the 12. Www irs gov freefile 4% social security part of SE tax, social security tax, or railroad retirement (tier 1) tax. Www irs gov freefile   All your combined wages, tips, and net earnings in 2013 are subject to any combination of the 2. Www irs gov freefile 9% Medicare part of SE tax, social security tax, or railroad retirement (tier 1) tax. Www irs gov freefile   If wages and tips you receive as an employee are subject to either social security or railroad retirement (tier 1) tax, or both, and total at least $113,700, do not pay the 12. Www irs gov freefile 4% social security part of the SE tax on any of your net earnings. Www irs gov freefile However, you must pay the 2. Www irs gov freefile 9% Medicare part of the SE tax on all your net earnings. Www irs gov freefile Deduct one-half of your SE tax as an adjustment to income on line 27 of Form 1040. Www irs gov freefile   More information. Www irs gov freefile   For information on methods of calculating SE tax, see Chapter 10, Self-Employment Tax. Www irs gov freefile Table 1-2. Www irs gov freefile Which Forms Must I File? IF you are liable for: THEN use Form: DUE by:1 Income tax 1040 and Schedule C or C-EZ2 15th day of 4th month after end of  tax year. Www irs gov freefile Self-employment tax Schedule SE File with Form 1040. Www irs gov freefile Estimated tax 1040-ES 15th day of 4th, 6th, and 9th months of tax year, and 15th day of 1st month after the end of tax year. Www irs gov freefile Social security and Medicare taxes and income tax withholding 941 or 944 April 30, July 31, October 31, and January 313. Www irs gov freefile     See Publication 15. Www irs gov freefile Providing information on social security and Medicare taxes and income tax withholding W-2 (to employee)  W-2 and W-3 (to the Social Security Administration) January 313. Www irs gov freefile   Last day of February (March 31 if filing electronically)3. Www irs gov freefile Federal unemployment (FUTA) tax 940 January 313. Www irs gov freefile     April 30, July 31, October 31, and January 31, but only if the liability for unpaid tax is more than $500. Www irs gov freefile Filing information returns for payments to nonemployees and transactions with other persons See Information Returns Forms 1099 – to the recipient by January 31 and to the IRS by February 28 (March 31 if filing electronically). Www irs gov freefile     Other forms – see the General Instructions for Certain Information Returns. Www irs gov freefile Excise tax See Excise Taxes See the instructions to the forms. Www irs gov freefile 1 If a due date falls on a Saturday, Sunday, or legal holiday, file by the next day that is not a Saturday, Sunday, or legal holiday. Www irs gov freefile For more information, see Publication 509, Tax Calendars. Www irs gov freefile 2 File a separate schedule for each business. Www irs gov freefile 3 See the form instructions if you go out of business, change the form of your business, or stop paying wages. Www irs gov freefile     Employment Taxes If you have employees, you will need to file forms to report employment taxes. Www irs gov freefile Employment taxes include the following items. Www irs gov freefile Social security and Medicare taxes. Www irs gov freefile Federal income tax withholding. Www irs gov freefile Federal unemployment (FUTA) tax. Www irs gov freefile For more information, see Publication 15 (Circular E), Employer's Tax Guide. Www irs gov freefile That publication explains your tax responsibilities as an employer. Www irs gov freefile To help you determine whether the people working for you are your employees, see Publication 15-A, Employer's Supplemental Tax Guide. Www irs gov freefile That publication has information to help you determine whether an individual is an independent contractor or an employee. Www irs gov freefile If you incorrectly classify an employee as an independent contractor, you may be held liable for employment taxes for that worker plus a penalty. Www irs gov freefile An independent contractor is someone who is self-employed. Www irs gov freefile You do not generally have to withhold or pay any taxes on payments made to an independent contractor. Www irs gov freefile Excise Taxes This section identifies some of the excise taxes you may have to pay and the forms you have to file if you do any of the following. Www irs gov freefile Manufacture or sell certain products. Www irs gov freefile Operate certain kinds of businesses. Www irs gov freefile Use various kinds of equipment, facilities, or products. Www irs gov freefile Receive payment for certain services. Www irs gov freefile For more information on excise taxes, see Publication 510, Excise Taxes. Www irs gov freefile Form 720. Www irs gov freefile   The federal excise taxes reported on Form 720, Quarterly Federal Excise Tax Return, consist of several broad categories of taxes, including the following. Www irs gov freefile Environmental taxes on the sale or use of ozone-depleting chemicals and imported products containing or manufactured with these chemicals. Www irs gov freefile Communications and air transportation taxes. Www irs gov freefile Fuel taxes. Www irs gov freefile Tax on the first retail sale of heavy trucks, trailers, and tractors. Www irs gov freefile Manufacturers taxes on the sale or use of a variety of different articles. Www irs gov freefile Tax on indoor tanning services. Www irs gov freefile Form 2290. Www irs gov freefile   There is a federal excise tax on the use of certain trucks, truck tractors, and buses on public highways. Www irs gov freefile The tax applies to vehicles having a taxable gross weight of 55,000 pounds or more. Www irs gov freefile Report the tax on Form 2290, Heavy Highway Vehicle Use Tax Return. Www irs gov freefile For more information, see the Instructions for Form 2290. Www irs gov freefile Depositing excise taxes. Www irs gov freefile   If you have to file a quarterly excise tax return on Form 720, you may have to deposit your excise taxes before the return is due. Www irs gov freefile For details on depositing excise taxes, see the Instructions for Form 720. Www irs gov freefile Information Returns If you make or receive payments in your business, you may have to report them to the IRS on information returns. Www irs gov freefile The IRS compares the payments shown on the information returns with each person's income tax return to see if the payments were included in income. Www irs gov freefile You must give a copy of each information return you are required to file to the recipient or payer. Www irs gov freefile In addition to the forms described below, you may have to use other returns to report certain kinds of payments or transactions. Www irs gov freefile For more details on information returns and when you have to file them, see the General Instructions for Certain Information Returns. Www irs gov freefile Form 1099-MISC. Www irs gov freefile   Use Form 1099-MISC, Miscellaneous Income, to report certain payments you make in your business. Www irs gov freefile These payments include the following items. Www irs gov freefile Payments of $600 or more for services performed for your business by people not treated as your employees, such as fees to subcontractors, attorneys, accountants, or directors. Www irs gov freefile Rent payments of $600 or more, other than rents paid to real estate agents. Www irs gov freefile Prizes and awards of $600 or more that are not for services, such as winnings on TV or radio shows. Www irs gov freefile Royalty payments of $10 or more. Www irs gov freefile Payments to certain crew members by operators of fishing boats. Www irs gov freefile You also use Form 1099-MISC to report your sales of $5,000 or more of consumer goods to a person for resale anywhere other than in a permanent retail establishment. Www irs gov freefile Form W-2. Www irs gov freefile   You must file Form W-2, Wage and Tax Statement, to report payments to your employees, such as wages, tips, and other compensation, withheld income, social security, and Medicare taxes. Www irs gov freefile You can file Form W-2 online. Www irs gov freefile For more information about Form W-2, see the General Instructions for Forms W-2 and W-3. Www irs gov freefile Penalties. Www irs gov freefile   The law provides for the following penalties if you do not file Form 1099-MISC or Form W-2 or do not correctly report the information. Www irs gov freefile For more information, see the General Instructions for Certain Information Returns. Www irs gov freefile Failure to file information returns. Www irs gov freefile This penalty applies if you do not file information returns by the due date, do not include all required information, or report incorrect information. Www irs gov freefile Failure to furnish correct payee statements. Www irs gov freefile This penalty applies if you do not furnish a required statement to a payee by the required date, do not include all required information, or report incorrect information. Www irs gov freefile Waiver of penalties. Www irs gov freefile   These penalties will not apply if you can show that the failure was due to reasonable cause and not willful neglect. Www irs gov freefile   In addition, there is no penalty for failure to include all required information, or for including incorrect information, on a de minimis (small) number of information returns if you correct the errors by August 1 of the year the returns are due. Www irs gov freefile (A de minimis number of returns is the greater of 10 or ½ of 1% of the total number of returns you are required to file for the year. Www irs gov freefile ) Form 8300. Www irs gov freefile   You must file Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business, if you receive more than $10,000 in cash in one transaction, or two or more related business transactions. Www irs gov freefile Cash includes U. Www irs gov freefile S. Www irs gov freefile and foreign coin and currency. Www irs gov freefile It also includes certain monetary instruments such as cashier's and traveler's checks and money orders. Www irs gov freefile Cash does not include a check drawn on an individual's personal account (personal check). Www irs gov freefile For more information, see Publication 1544, Reporting Cash Payments of Over $10,000 (Received in a Trade or Business). Www irs gov freefile Penalties. Www irs gov freefile   There are civil and criminal penalties, including up to 5 years in prison, for not filing Form 8300, filing (or causing the filing of) a false or fraudulent Form 8300, or structuring a transaction to evade reporting requirements. Www irs gov freefile Table 1-3. Www irs gov freefile Going Out of Business Checklists (Note. Www irs gov freefile The following checklists highlight the typical final forms and schedules you may need to file if you ever go out of business. Www irs gov freefile For more information, see the instructions for the listed forms. Www irs gov freefile ) IF you are liable for:   THEN you may need to: Income tax □ File Schedule C or C-EZ with your Form 1040 for the year in which you go out of business. Www irs gov freefile   □ File Form 4797 with your Form 1040 for each year in which you sell or exchange property used in your business or in which the business use of certain section 179 or listed property drops to 50% or less. Www irs gov freefile   □ File Form 8594 with your Form 1040 if you sold your business. Www irs gov freefile Self-employment tax □ File Schedule SE with your Form 1040 for the year in which you go out of business. Www irs gov freefile Employment taxes □ File Form 941 (or Form 944) for the calendar quarter in which you make final wage payments. Www irs gov freefile Note. Www irs gov freefile Do not forget to check the box and enter the date final wages were paid on line 15 of Form 941 or line 14 of Form 944. Www irs gov freefile   □ File Form 940 for the calendar year in which final wages were paid. Www irs gov freefile Note. Www irs gov freefile Do not forget to check box d, Final: Business closed or stopped paying wages, under Type of Return. Www irs gov freefile Information returns □ Provide Forms W-2 to your employees for the calendar year in which you make final wage payments. Www irs gov freefile Note. Www irs gov freefile These forms are generally due by the due date of your final Form 941 or Form 944. Www irs gov freefile   □ File Form W-3 to file Forms W-2. Www irs gov freefile Note. Www irs gov freefile These forms are generally due within 1 month after the due date of your final Form 941 or Form 944. Www irs gov freefile   □ Provide Forms 1099-MISC to each person to whom you have paid at least $600 for services (including parts and materials) during the calendar year in which you go out of business. Www irs gov freefile   □ File Form 1096 to file Forms 1099-MISC. 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Www irs gov freefile Publication 516 - Main Content Table of Contents U. Www irs gov freefile S. Www irs gov freefile Tax ReturnFiling Information Foreign Bank Accounts U. Www irs gov freefile S. Www irs gov freefile Government Payments Foreign Earned Income Exclusion Tax Treaty Benefits Allowances, Differentials, and Special Pay Other Income Deductions and Credits — Business Expenses Deductions and Credits — Nonbusiness Expenses Foreign Taxes Local (Foreign) Tax ReturnTax Treaty Benefits Other Agreements Double Withholding How To Get Tax HelpLow Income Taxpayer Clinics (LITCs). Www irs gov freefile U. Www irs gov freefile S. Www irs gov freefile Tax Return Filing Information If you are a U. Www irs gov freefile S. Www irs gov freefile citizen or green card holder living or traveling outside the United States, you are generally required to file income tax returns in the same way as those residing in the United States. Www irs gov freefile However, the special rules explained in the following discussions may apply to you. Www irs gov freefile See also Tax Treaty Benefits, later. Www irs gov freefile When To File and Pay Most individual tax returns cover a calendar year, January through December. Www irs gov freefile The regular due date for these tax returns is April 15 of the following year. Www irs gov freefile If April 15 falls on a Saturday, Sunday, or legal holiday, your tax return is considered timely filed if it is filed by the next business day that is not a Saturday, Sunday, or legal holiday. Www irs gov freefile If you get an extension, you are allowed additional time to file and, in some circumstances, pay your tax. Www irs gov freefile You must pay interest on any tax not paid by the regular due date. Www irs gov freefile Your return is considered filed on time if it is mailed from and officially postmarked in a foreign country on or before the due date (including extensions), or given to a designated international private delivery service before midnight of the last date prescribed for filing. Www irs gov freefile See your tax form instructions for a list of private delivery services that have been designated by the IRS to meet this “timely mailing as timely filing/paying” rule for tax returns and payments. Www irs gov freefile If your return is filed late, the postmark or delivery service date does not determine the date of filing. Www irs gov freefile In that case, your return is considered filed when it is received by the IRS. Www irs gov freefile Extensions You may be able to get an extension of time to file your return and pay your tax. Www irs gov freefile Automatic 2-month extension. Www irs gov freefile   You can get an automatic 2-month extension (to June 15, for a calendar year return) to file your return and pay your tax if you are a U. Www irs gov freefile S. Www irs gov freefile citizen or resident and, on the regular due date of your return, you are living outside the United States and Puerto Rico and your main place of business or post of duty is outside the United States and Puerto Rico. Www irs gov freefile To get this extension, you must attach a statement to your return explaining how you qualified. Www irs gov freefile You will owe interest on any tax not paid by the regular due date of your return. Www irs gov freefile Married taxpayers. Www irs gov freefile   If you file a joint return, either you or your spouse can qualify for the automatic extension. Www irs gov freefile If you and your spouse file separate returns, the extension applies only to the spouse who qualifies. Www irs gov freefile Additional extension. Www irs gov freefile   You can apply for an additional extension of time to file your return by filing Form 4868. Www irs gov freefile You must file Form 4868 by the due date for your income tax return. Www irs gov freefile   Generally, you must file it by April 15. Www irs gov freefile However, if you qualify for the automatic 2-month extension, you generally must file Form 4868 by June 15. Www irs gov freefile Check the box on line 8 of Form 4868. Www irs gov freefile Payment of tax. Www irs gov freefile   You should estimate and pay any additional tax you owe when you file Form 4868 to avoid being charged a late-payment penalty. Www irs gov freefile The late-payment penalty applies if, through withholding, etc. Www irs gov freefile , you paid less than 90% of your actual tax liability by the original due date of your income tax return. Www irs gov freefile Even if the late-payment penalty does not apply, you will be charged interest on any unpaid tax liability from the original due date of the return until the tax is paid. Www irs gov freefile Electronic filing. Www irs gov freefile   You can file for the additional extension by phone, using your home computer, or through a tax professional. Www irs gov freefile See Form 4868 for more information. Www irs gov freefile Limit on additional extensions. Www irs gov freefile   You generally cannot get a total extension of more than 6 months. Www irs gov freefile However, if you are outside the United States and meet certain tests, you may be able to get a longer extension. Www irs gov freefile   For more information, see Publication 54. Www irs gov freefile Foreign Bank Accounts You must file Form TD F 90-22. Www irs gov freefile 1 if at any time during the year you had an interest in, or signature or other authority over, a bank account, securities account, or other financial account in a foreign country. Www irs gov freefile This applies if the combined assets in the account(s) were more than $10,000. Www irs gov freefile Do not include accounts in a U. Www irs gov freefile S. Www irs gov freefile military banking facility operated by a U. Www irs gov freefile S. Www irs gov freefile financial institution. Www irs gov freefile File the completed form by June 30 of the following year with the Department of the Treasury at the address shown on that form. Www irs gov freefile Do not attach it to Form 1040. Www irs gov freefile If you are required to file Form TD F 90-22. Www irs gov freefile 1 but do not do so, you may have to pay a penalty of up to $10,000 (more if the failure to file is willful). Www irs gov freefile You also may be required to file Form 8938 with your U. Www irs gov freefile S. Www irs gov freefile income tax return to report your interest in foreign bank accounts and other specified foreign financial assets. Www irs gov freefile For taxpayers living abroad, you generally do not have to file Form 8938 unless the total value of your specified foreign financial assets is more than $200,000 ($400,000 if married filing jointly) on the last day of the tax year or more than $300,000 ($600,000 if married filing jointly) at any time during the tax year. Www irs gov freefile For more information, see Form 8938 and its instructions. Www irs gov freefile U. Www irs gov freefile S. Www irs gov freefile Government Payments Wages earned for performing services outside the United States is foreign income, regardless of your employer. Www irs gov freefile If you are a U. Www irs gov freefile S. Www irs gov freefile citizen or resident alien, you must report all income from worldwide sources on your tax return unless it is exempt by U. Www irs gov freefile S. Www irs gov freefile law. Www irs gov freefile This applies to earned income (such as wages) as well as unearned income (such as interest, dividends, and capital gains). Www irs gov freefile If you are a nonresident alien, your income from sources outside the United States is not subject to U. Www irs gov freefile S. Www irs gov freefile tax. Www irs gov freefile Foreign Earned Income Exclusion Employees of the U. Www irs gov freefile S. Www irs gov freefile Government are not entitled to the foreign earned income exclusion or the foreign housing exclusion/deduction under section 911 because “foreign earned income ”does not include amounts paid by the U. Www irs gov freefile S. Www irs gov freefile Government as an employee. Www irs gov freefile But see Other Employment, later. Www irs gov freefile Special Situations In the following two situations, your pay is from the U. Www irs gov freefile S. Www irs gov freefile Government and does not qualify for the foreign earned income exclusion. Www irs gov freefile U. Www irs gov freefile S. Www irs gov freefile agency reimbursed by foreign country. Www irs gov freefile   If you are a U. Www irs gov freefile S. Www irs gov freefile Government employee paid by a U. Www irs gov freefile S. Www irs gov freefile agency to perform services in a foreign country, your pay is from the U. Www irs gov freefile S. Www irs gov freefile Government and does not qualify the foreign earned income exclusion or the foreign housing exclusion/deduction. Www irs gov freefile This is true even if the U. Www irs gov freefile S. Www irs gov freefile agency is reimbursed by the foreign government. Www irs gov freefile Employees of post exchanges, etc. Www irs gov freefile   If you are an employee of an Armed Forces post exchange, officers' and enlisted personnel club, Embassy commissary, or similar instrumentality of the U. Www irs gov freefile S. Www irs gov freefile Government, the earnings you receive are paid by the U. Www irs gov freefile S. Www irs gov freefile Government. Www irs gov freefile This is true whether they are paid from appropriated or nonappropriated funds. Www irs gov freefile These earnings are not eligible for the foreign earned income exclusion or the foreign housing exclusion/deduction. Www irs gov freefile Tax Treaty Benefits Most income tax treaties contain an article relating to remuneration from government services. Www irs gov freefile Even if you are working in a foreign country with which the United States has an income tax treaty in force and the treaty article that applies to government services says that your government pay is taxable only in the foreign country, the treaty will likely contain a “saving clause”, which provides that the United States may tax its citizens and its residents as if the treaty had not come into effect. Www irs gov freefile In some treaties, the government service article is an exception to the saving clause, but often only for individuals who are not U. Www irs gov freefile S. Www irs gov freefile citizens or green card holders. Www irs gov freefile Consequently, if you are a U. Www irs gov freefile S. Www irs gov freefile citizen or green card holder, you will generally not be entitled to reduce your U. Www irs gov freefile S. Www irs gov freefile tax on your government pay. Www irs gov freefile If you are neither a U. Www irs gov freefile S. Www irs gov freefile citizen nor green card holder, and you are treated as a resident of the treaty country under the treaty residence article (after application of the so-called “tie-breaker” rule), then you may be entitled to benefits under the government service article. Www irs gov freefile Review the treaty text carefully. Www irs gov freefile U. Www irs gov freefile S. Www irs gov freefile citizens must always file Form 1040. Www irs gov freefile Non-U. Www irs gov freefile S. Www irs gov freefile citizens who are treated as a resident of a treaty country under the treaty residence article (after application of the so-called “tie-breaker” rule) may file Form 1040NR and attach Form 8833. Www irs gov freefile If you pay or accrue taxes to the foreign country on your pay, you may be able to relieve double taxation with a foreign tax credit. Www irs gov freefile Most income tax treaties contain an article providing relief from double taxation. Www irs gov freefile Many treaties contain special foreign tax credit rules for U. Www irs gov freefile S. Www irs gov freefile citizens who are residents of a treaty country. Www irs gov freefile For more information on the mechanics of the foreign tax credit, see Foreign Taxes, later. Www irs gov freefile Allowances, Differentials, and Special Pay Most payments received by U. Www irs gov freefile S. Www irs gov freefile Government civilian employees for working abroad, including pay differentials, are taxable. Www irs gov freefile However, certain foreign areas allowances, cost of living allowances, and travel allowances are tax free. Www irs gov freefile The following discussions explain the tax treatment of allowances, differentials, and other special pay you receive for employment abroad. Www irs gov freefile Pay differentials. Www irs gov freefile   Pay differentials you receive as financial incentives for employment abroad are taxable. Www irs gov freefile Your employer should have included these differentials as wages on your Form W-2, Wage and Tax Statement. Www irs gov freefile   Generally, pay differentials are given for employment under adverse conditions (such as severe climate) or because the post of duty is located in a hazardous or isolated area that may be outside the United States. Www irs gov freefile The area does not have to be a qualified hazardous duty area as discussed in Publication 3. Www irs gov freefile Pay differentials include: Post differentials, Special incentive differentials, and Danger pay. Www irs gov freefile Foreign areas allowances. Www irs gov freefile   Certain foreign areas allowances are tax free. Www irs gov freefile Your employer should not have included these allowances as wages on your Form W-2. Www irs gov freefile   Tax-free foreign areas allowances are allowances (other than post differentials) received under the following laws. Www irs gov freefile Title I, chapter 9, of the Foreign Service Act of 1980. Www irs gov freefile Section 4 of the Central Intelligence Agency Act of 1949, as amended. Www irs gov freefile Title II of the Overseas Differentials and Allowances Act. Www irs gov freefile Subsection (e) or (f) of the first section of the Administrative Expenses Act of 1946, as amended, or section 22 of that Act. Www irs gov freefile These allowances cover such expenses as: Certain repairs to a leased home, Education of dependents in special situations, Motor vehicle shipment, Separate maintenance for dependents, Temporary quarters, Transportation for medical treatment, and Travel, moving, and storage. Www irs gov freefile Allowances received by foreign service employees for representation expenses are also tax free under the above provisions. Www irs gov freefile Cost-of-living allowances. Www irs gov freefile   If you are stationed outside the continental United States or in Alaska, your gross income does not include cost-of-living allowances (other than amounts received under Title II of the Overseas Differentials and Allowances Act) granted by regulations approved by the President of the United States. Www irs gov freefile The cost-of-living portion of any other allowance (for example, a living and quarters allowance) is not included even if the underlying allowance is included in gross income. Www irs gov freefile Cost-of-living allowances are not included on your Form W-2. Www irs gov freefile Federal court employees. Www irs gov freefile   If you are a federal court employee, the preceding paragraph also applies to you. Www irs gov freefile The cost-of-living allowance must be granted by rules similar to regulations approved by the President. Www irs gov freefile American Institute in Taiwan. Www irs gov freefile   If you are an employee of the American Institute in Taiwan, allowances you receive are exempt from U. Www irs gov freefile S. Www irs gov freefile tax if they are equivalent to tax-exempt allowances received by civilian employees of the U. Www irs gov freefile S. Www irs gov freefile Government. Www irs gov freefile Federal reemployment payments after serving with an international organization. Www irs gov freefile   If you are a federal employee who is reemployed by a federal agency after serving with an international organization, you must include in income any reemployment payments you receive. Www irs gov freefile These payments are equal to the difference between the pay, allowances, post differential, and other monetary benefits paid by the international organization and the pay and other benefits that would have been paid by the federal agency had you been detailed to the international agency. Www irs gov freefile Allowances or reimbursements for travel and transportation expenses. Www irs gov freefile   See How To Report Business Expenses, later, for a discussion on whether a reimbursement or allowance for travel or transportation is included in your income. Www irs gov freefile Lodging furnished to a principal representative of the United States. Www irs gov freefile   If you are a principal representative of the United States stationed in a foreign country, you do not have to include in income the value of lodging (including utilities) provided to you as an official residence. Www irs gov freefile However, amounts paid by the U. Www irs gov freefile S. Www irs gov freefile government for your usual costs of operating and maintaining your household are taxable. Www irs gov freefile If amounts are withheld from your pay to cover these expenses, you cannot exclude or deduct those amounts from your income. Www irs gov freefile Peace Corps. Www irs gov freefile   If you are a Peace Corps volunteer or volunteer leader, some allowances you receive are taxable and others are not. Www irs gov freefile Taxable allowances. Www irs gov freefile   The following allowances must be included on your Form W-2 and reported on your return as wages. Www irs gov freefile If you are a volunteer leader, allowances paid to your spouse and minor children while you are training in the United States. Www irs gov freefile The part of living allowances designated by the Director of the Peace Corps as basic compensation. Www irs gov freefile This is the part for personal items such as domestic help, laundry and clothing maintenance, entertainment and recreation, transportation, and other miscellaneous expenses. Www irs gov freefile Leave allowances. Www irs gov freefile Readjustment allowances or “termination payments. Www irs gov freefile ” Taxable allowances are considered received by you when credited to your account. Www irs gov freefile Example. Www irs gov freefile Gary Carpenter, a Peace Corps volunteer, gets $175 a month during his period of service, to be paid to him in a lump sum at the end of his tour of duty. Www irs gov freefile Although the allowance is not available to him until the end of his service, Gary must include it in his income on a monthly basis as it is credited to his account. Www irs gov freefile Nontaxable allowances. Www irs gov freefile   These generally include travel allowances and the part of living allowances for housing, utilities, food, clothing, and household supplies. Www irs gov freefile These allowances should not be included on your Form W-2. Www irs gov freefile These allowances are tax free whether paid by the U. Www irs gov freefile S. Www irs gov freefile Government or the foreign country in which you are stationed. Www irs gov freefile Other Income Other employment. Www irs gov freefile   If, in addition to your U. Www irs gov freefile S. Www irs gov freefile government pay, you receive income from a private employer or self-employment, you may qualify to claim the foreign earned income exclusion and the foreign housing exclusion and deduction under section 911 based on this other income provided you meet either the bona fide residence test or the physical presence test. Www irs gov freefile In addition, if your spouse is a U. Www irs gov freefile S. Www irs gov freefile citizen or resident alien who earns income in a foreign country that is paid by a private employer or is from self-employment, he or she may also qualify for the exclusion or the deduction. Www irs gov freefile For more information, see Publication 54. Www irs gov freefile The tax treaty rules relating to income from personal services generally apply to income from private employment. Www irs gov freefile As discussed above, the saving clause applies to you if you are a U. Www irs gov freefile S. Www irs gov freefile citizen or if you are a resident of the United States under the treaty residence article (after application of the so-called “tie-breaker” rule). Www irs gov freefile Sale of personal property. Www irs gov freefile   If you have a gain from the sale of your personal property (such as an automobile or a home appliance), whether directly or through a favorable exchange rate in converting the proceeds to U. Www irs gov freefile S. Www irs gov freefile dollars, the excess of the amount received in U. Www irs gov freefile S. Www irs gov freefile dollars over the cost or other basis of the property is a capital gain. Www irs gov freefile Capital gains are reported on Schedule D (Form 1040), Capital Gains and Losses. Www irs gov freefile However, losses from sales of your personal property, whether directly or through an unfavorable exchange rate, are not deductible. Www irs gov freefile Sale of your home. Www irs gov freefile   All or part of the gain on the sale of your main home, within or outside the United States, may be taxable. Www irs gov freefile Losses are not deductible. Www irs gov freefile   You may be able to exclude from income any gain up to $250,000 ($500,000 on a joint return). Www irs gov freefile Generally, you must have owned and used the home as your main residence for two of the five years preceding the date of sale. Www irs gov freefile   You can choose to have the 5-year test period for ownership and use suspended during any period you or your spouse is serving on qualified official extended duty as a member of the Foreign Service of the United States, as an employee of the intelligence community, or as an employee or volunteer of the Peace Corps. Www irs gov freefile   For detailed information on selling your home, see Publication 523. Www irs gov freefile Deductions and Credits — Business Expenses You may deduct certain expenses such as travel expenses, transportation expenses, and other expenses connected to your employment. Www irs gov freefile Travel Expenses Subject to certain limits, you can deduct your unreimbursed ordinary and necessary expenses of traveling away from home in connection with the performance of your official duties. Www irs gov freefile These expenses include such items as travel costs, meals, lodging, baggage charges, local transportation costs (such as taxi fares), tips, and dry cleaning and laundry fees. Www irs gov freefile Your home for tax purposes (tax home) is your regular post of duty regardless of where you maintain your family home. Www irs gov freefile Your tax home is not limited to the Embassy, consulate, or duty station. Www irs gov freefile It includes the entire city or general area in which your principal place of employment is located. Www irs gov freefile Traveling away from home. Www irs gov freefile   You are traveling away from home if you meet both of the following requirements. Www irs gov freefile Your duties require you to be away from the general area of your tax home substantially longer than an ordinary day's work. Www irs gov freefile You need to get sleep or rest to meet the demands of your work while away from home. Www irs gov freefile This requirement is not satisfied by merely napping in your car. Www irs gov freefile You do not have to be away from your tax home for a whole day or from dusk to dawn as long as your relief from duty is long enough to get necessary sleep or rest. Www irs gov freefile Temporary assignment. Www irs gov freefile   If your assignment or job away from your tax home is temporary, your tax home does not change. Www irs gov freefile You are considered to be away from home for the whole period, and your travel expenses are deductible. Www irs gov freefile Generally, a temporary assignment in a single location is one that is realistically expected to last (and does in fact last) for one year or less. Www irs gov freefile   However, if your assignment or job is indefinite, the location of the assignment or job becomes your new tax home and you cannot deduct your travel expenses while there. Www irs gov freefile An assignment or job in a single location is considered indefinite if it is realistically expected to last for more than one year, whether or not it actually lasts for more than one year. Www irs gov freefile   You must determine whether your assignment is temporary or indefinite when you start work. Www irs gov freefile If you expect employment to last for one year or less, it is temporary unless there are facts and circumstances that indicate otherwise. Www irs gov freefile Employment that is initially temporary may become indefinite due to changed circumstances. Www irs gov freefile A series of assignments to the same location, all for short periods but that together cover a long period, may be considered an indefinite assignment. Www irs gov freefile Exception for federal crime investigations or prosecutions. Www irs gov freefile   If you are a federal employee participating in a federal crime investigation or prosecution, you may be able to deduct travel expenses even if you are away from your tax home for more than one year. Www irs gov freefile This exception to the one-year rule applies if the Attorney General certifies that you are traveling for the federal government in a temporary duty status to prosecute, or provide support services for the investigation or prosecution of, a federal crime. Www irs gov freefile Limit on meals and entertainment. Www irs gov freefile   You can generally deduct only 50% of the cost of your unreimbursed business-related meals and entertainment. Www irs gov freefile However, the limit does not apply to expenses reimbursed under a U. Www irs gov freefile S. Www irs gov freefile Government expense allowance arrangement. Www irs gov freefile Individuals subject to hours of service limits. Www irs gov freefile   You can deduct 80% of your unreimbursed business-related meal expenses if the meals take place during or incident to any period subject to the Department of Transportation's hours of service limits. Www irs gov freefile   Individuals subject to the Department of Transportation's “hours of service” limits include the following. Www irs gov freefile Certain air transportation workers (such as pilots, crew, dispatchers, mechanics, and control tower operators) who are under Federal Aviation Administration regulations. Www irs gov freefile Interstate truck operators and bus drivers who are under Department of Transportation regulations. Www irs gov freefile Certain railroad employees (such as engineers, conductors, train crews, dispatchers, and control operations personnel) who are under Federal Railroad Administration regulations. Www irs gov freefile Certain merchant mariners who are under Coast Guard regulations. Www irs gov freefile Primary purpose of trip must be for business. Www irs gov freefile   If your trip was entirely for business, your unreimbursed travel expenses are generally deductible. Www irs gov freefile However, if you spend some of your time on nonbusiness activities, part of your expenses may not be deductible. Www irs gov freefile   If your trip was mainly personal, you cannot deduct your travel expenses to and from your destination. Www irs gov freefile This applies even if you engage in business activities while there. Www irs gov freefile However, you can deduct any expenses while at your destination that are directly related to your business. Www irs gov freefile Expenses paid for others. Www irs gov freefile   You generally cannot deduct travel expenses of your spouse, dependents, or other individuals who go with you on a trip. Www irs gov freefile Home leave. Www irs gov freefile   The Foreign Service Act requires U. Www irs gov freefile S. Www irs gov freefile citizens who are members of the foreign service to take a leave of absence after completing 3 years of continuous service abroad. Www irs gov freefile This period is called “home leave” and can be used to take care of certain personal matters such as medical and dental checkups, buying a new wardrobe, and visiting relatives. Www irs gov freefile   The amounts paid for your travel, meals, and lodging while on home leave are deductible as travel or business expenses subject to the rules and limits discussed earlier. Www irs gov freefile You must be able to verify these amounts in order to claim them. Www irs gov freefile Amounts paid on behalf of your family while on home leave are personal living expenses and are not deductible. Www irs gov freefile More information. Www irs gov freefile   See chapter 1 of Publication 463 for more information on travel expenses. Www irs gov freefile Transportation Expenses You can deduct allowable transportation expenses that are directly related to your official duties. Www irs gov freefile Transportation expenses include the cost of transportation by air, rail, bus, or taxi, and the cost of driving and maintaining your car. Www irs gov freefile They do not include expenses you have when traveling away from home overnight. Www irs gov freefile Those expenses are deductible as travel expenses and are discussed earlier. Www irs gov freefile Commuting. Www irs gov freefile   You cannot deduct your transportation costs of going between your home and your regular business location. Www irs gov freefile These costs are personal commuting expenses. Www irs gov freefile   If you have one or more regular business locations but must work at a temporary location, you can deduct the costs of commuting to that temporary place of work. Www irs gov freefile   If you work at two or more places in the same day, you can deduct your expenses of getting from one place of work to the other. Www irs gov freefile More information. Www irs gov freefile   For more information on transportation expenses, see chapter 4 of Publication 463. Www irs gov freefile Other Employee Business Expenses You may be able to deduct other unreimbursed expenses that are connected with your employment. Www irs gov freefile Membership dues. Www irs gov freefile   You can deduct membership dues you pay to professional societies that relate to your business or profession. Www irs gov freefile Subscriptions. Www irs gov freefile   You can deduct subscriptions to professional publications that relate to your business or profession. Www irs gov freefile Educational expenses. Www irs gov freefile   Generally, educational expenses are considered to be personal expenses and are not deductible. Www irs gov freefile However, under some circumstances, educational expenses are deductible as business expenses. Www irs gov freefile   You can deduct educational expenses as business expenses if the education: Maintains or improves skills needed in your present position, or Meets the express requirements of your agency to keep your present position, salary, or status. Www irs gov freefile   You cannot deduct educational expenses as business expenses if the education: Is needed to enable you to meet minimum educational requirements for qualification in your present position, Is a part of a program of study that can qualify you for a new position, or Is for travel as a form of education. Www irs gov freefile These rules apply even if the education is required by your agency or it maintains or improves skills required in your work. Www irs gov freefile   See Publication 970, Tax Benefits for Education, for more information on educational expenses. Www irs gov freefile    Educational expenses that are not work related, such as costs of sending children to college, are personal expenses that you cannot deduct. Www irs gov freefile However, you may be eligible for other tax benefits such as the American opportunity and lifetime learning credits; contributions to a Coverdell education savings account or qualified tuition program; deduction for student loan interest; and exclusion from income of certain savings bond interest. Www irs gov freefile These benefits are explained in Publication 970. Www irs gov freefile Foreign service representation expenses. Www irs gov freefile   If you are an employee of the U. Www irs gov freefile S. Www irs gov freefile Foreign Service and your position requires you to establish and maintain favorable relations in foreign countries, you may receive a nontaxable allowance for representation expenses. Www irs gov freefile If your expenses are more than the allowance you receive, you can deduct the excess expenses as an itemized deduction on Schedule A (Form 1040) if you meet one of the following conditions. Www irs gov freefile You have a certificate from the Secretary of State attesting that the expenses were incurred for the benefit of the United States, and would be reimbursable under appropriate legislation if the agency had sufficient funds for these reimbursements. Www irs gov freefile The expenses, while specifically not reimbursable under State Department regulations, were ordinary and necessary business expenses incurred in the performance of your official duties. Www irs gov freefile    To deduct any expenses for travel, entertainment, and gifts, including those certified by the Secretary of State, you must meet the rules for recordkeeping and accounting to your employer. Www irs gov freefile These rules are explained in Publication 463. Www irs gov freefile Representation expenses. Www irs gov freefile   These are expenses that further the interest of the United States abroad. Www irs gov freefile They include certain entertainment, gifts, costs of official functions, and rental of ceremonial dress. Www irs gov freefile They generally do not include costs of passenger vehicles (such as cars or aircraft), printing or engraving, membership fees, or amounts a principal representative must pay personally to cover the usual costs of operating and maintaining an official residence. Www irs gov freefile   Chapters 300 and 400 of the Standardized Regulations (Government Civilians, Foreign Area) provide more detail on what expenses are allowable as representation expenses. Www irs gov freefile These regulations are available on the Internet at www. Www irs gov freefile state. Www irs gov freefile gov/m/a/als. Www irs gov freefile Look under “Standardized Regulations (DSSR)” and click on “DSSR Table of Contents. Www irs gov freefile ” Publication 463 and Publication 529, Miscellaneous Deductions, provide more detail on what expenses are allowable as ordinary and necessary business expenses. Www irs gov freefile Impairment-related work expenses. Www irs gov freefile   If you are an employee with a physical or mental disability, you can deduct attendant-care services at your place of work and other expenses in connection with work that are necessary for you to be able to work. Www irs gov freefile Attendant care includes a reader for a blind person and a helper for a person with a physical disability. Www irs gov freefile These expenses are reported on Form 2106 or 2106-EZ and carried to Schedule A (Form 1040). Www irs gov freefile They are not subject to the 2%-of-adjusted- gross-income limit on miscellaneous itemized deductions. Www irs gov freefile Loss on conversion of U. Www irs gov freefile S. Www irs gov freefile dollars into foreign currency. Www irs gov freefile   The conversion of U. Www irs gov freefile S. Www irs gov freefile dollars into foreign currency at an official rate of exchange that is not as favorable as the free market rate does not result in a deductible loss. Www irs gov freefile Recordkeeping Rules If you claim a deduction for unreimbursed business expenses, you must keep timely and adequate records of all your business expenses. Www irs gov freefile For example, you must keep records and supporting evidence to prove the following elements about deductions for travel expenses (including meals and lodging while away from home). Www irs gov freefile The amount of each separate expense for travel away from home, such as the cost of your transportation, lodging, or meals. Www irs gov freefile You may total your incidental expenses if you list them in reasonable categories such as daily meals, gasoline and oil, and taxi fares. Www irs gov freefile For each trip away from home, the dates you left and returned and the number of days spent on business. Www irs gov freefile The destination or area of your travel, described by the name of the city, town, or similar designation. Www irs gov freefile The business reason for your travel or the business benefit gained or expected to be gained from your travel. Www irs gov freefile How to record your expenses. Www irs gov freefile   Records for proof of your expenses should be kept in an account book, diary, statement of expense, or similar record. Www irs gov freefile They should be supported by other records, such as receipts or canceled checks, in sufficient detail to establish the elements for these expenses. Www irs gov freefile You do not need to duplicate information in an account book or diary that is shown on a receipt as long as your records and receipts complement each other in an orderly manner. Www irs gov freefile   Each expense should be recorded separately in your records. Www irs gov freefile However, some items can be totaled in reasonable categories. Www irs gov freefile You can make one daily entry for categories such as taxi fares, telephone calls, meals while away from home, gas and oil, and other incidental costs of travel. Www irs gov freefile You may record tips separately or with the cost of the service. Www irs gov freefile    Documentary evidence generally is required to support all lodging expenses while traveling away from home. Www irs gov freefile It is also required for any other expense of $75 or more, except transportation charges if the evidence is not readily available. Www irs gov freefile Documentary evidence is a receipt, paid bill, or similar proof sufficient to support an expense. Www irs gov freefile It ordinarily will be considered adequate if it shows the amount, date, place, and essential business character of the expense. Www irs gov freefile    A canceled check by itself does not prove a business cost. Www irs gov freefile You must have other evidence to show that the check was used for a business purpose. Www irs gov freefile Your records must be timely. Www irs gov freefile   Record the elements for the expense in your account book or other record at or near the time of the expense. Www irs gov freefile A timely-kept record has more value than statements prepared later when, generally, there is a lack of accurate recall. Www irs gov freefile Confidential information. Www irs gov freefile   You do not need to put confidential information relating to an element of a deductible expense (such as the place, business purpose, or business relationship) in your account book, diary, or other record. Www irs gov freefile However, you do have to record the information elsewhere at or near the time of the expense and have it available to fully prove that element of the expense. Www irs gov freefile How To Report Business Expenses As a U. Www irs gov freefile S. Www irs gov freefile Government employee, your business expense reimbursements are generally paid under an accountable plan and are not included in your wages on your Form W-2. Www irs gov freefile If your expenses are not more than the reimbursements, you do not need to show your expenses or reimbursements on your return. Www irs gov freefile However, if you do not account to your employer for a travel advance or if you do not return any excess advance within a reasonable period of time, the advance (or excess) will be included in your wages on your Form W-2. Www irs gov freefile If you are entitled to a reimbursement from your employer but you do not claim it, you cannot deduct the expenses to which that unclaimed reimbursement applies. Www irs gov freefile Form 2106 or Form 2106-EZ. Www irs gov freefile   You must complete Form 2106 or 2106-EZ to deduct your expenses. Www irs gov freefile Also, if your actual expenses are more than your reimbursements, you can complete Form 2106 or 2106-EZ to deduct your excess expenses. Www irs gov freefile Generally, you must include all of your expenses and reimbursements on Form 2106 or 2106-EZ and carry your allowable expense to Schedule A (Form 1040). Www irs gov freefile Your allowable expense is then generally subject to the 2%-of-adjusted-gross-income limit. Www irs gov freefile Form 2106-EZ. Www irs gov freefile   You may be able to use Form 2106-EZ instead of the more complex Form 2106 for reporting unreimbursed employee business expenses. Www irs gov freefile You can use Form 2106-EZ if you meet both of the following conditions. Www irs gov freefile You are not reimbursed by your employer for any expenses. Www irs gov freefile (Amounts your employer included in your wages on your Form W-2 are not considered reimbursements. Www irs gov freefile ) If you claim car expenses, you use the standard mileage rate. Www irs gov freefile Deductions and Credits — Nonbusiness Expenses In addition to deductible business expenses, you may be entitled to deduct certain other expenses. Www irs gov freefile Moving Expenses If you changed job locations or started a new job, you may be able to deduct the reasonable expenses of moving yourself, your family, and your household goods and personal effects to your new home. Www irs gov freefile However, you cannot deduct any expenses for which you received a tax-free allowance as a U. Www irs gov freefile S. Www irs gov freefile Government employee. Www irs gov freefile To deduct moving expenses, your move must be closely related to the start of work and you must meet the distance test and the time test. Www irs gov freefile Closely related to the start of work. Www irs gov freefile   The move must be closely related, both in time and in place, to the start of work at the new location. Www irs gov freefile In general, you must have incurred your moving expenses within one year from the time you first report to your new job or business. Www irs gov freefile   A move generally is not considered closely related in place to the start of work if the distance from your new home to the new job location is more than the distance from your former home to the new job location. Www irs gov freefile A move that does not meet this requirement may qualify if you can show that you must live at the new home as a condition of employment, or you will spend less time or money commuting from the new home to the new job. Www irs gov freefile Distance test. Www irs gov freefile   Your new main job location must be at least 50 miles farther from your former home than your old main job location was. Www irs gov freefile If you did not have an old job location, your new job location must be at least 50 miles from your former home. Www irs gov freefile Time test. Www irs gov freefile   If you are an employee, you must work full time for at least 39 weeks during the first 12 months after you arrive in the general area of your new job location. Www irs gov freefile Deductible moving expenses. Www irs gov freefile   Moving expenses that can be deducted include the reasonable costs of: Moving household goods and personal effects (including packing, crating, in-transit storage, and insurance) of both you and members of your household, and Transportation and lodging for yourself and members of your household for one trip from your former home to your new home (including costs of getting passports). Www irs gov freefile    The cost of your meals is not a deductible moving expense. Www irs gov freefile   The costs of moving household goods include the reasonable expenses of moving household goods and personal effects to and from storage. Www irs gov freefile For a foreign move, the costs also include expenses of storing the goods and effects for part or all of the period that your new job location abroad continues to be your main job location. Www irs gov freefile Expenses must be reasonable. Www irs gov freefile   You can deduct only those expenses that are reasonable for the circumstances of your move. Www irs gov freefile For example, the costs of traveling from your former home to your new one should be by the shortest, most direct route available by conventional transportation. Www irs gov freefile Members of your household. Www irs gov freefile   A member of your household includes anyone who has both your former home and new home as his or her home. Www irs gov freefile It does not include a tenant or employee unless you can claim that person as a dependent. Www irs gov freefile Retirees. Www irs gov freefile   You can deduct the costs of moving to the United States when you permanently retire if both your former main job location and former home were outside the United States and its possessions. Www irs gov freefile You do not have to meet the time test described earlier. Www irs gov freefile Survivors. Www irs gov freefile   You can deduct moving expenses for a move to the United States if you are the spouse or dependent of a person whose main job location at the time of death was outside the United States and its possessions. Www irs gov freefile The move must begin within 6 months after the decedent's death. Www irs gov freefile It must be from the decedent's former home outside the United States, and that home must also have been your home. Www irs gov freefile You do not have to meet the time test described earlier. Www irs gov freefile How to report moving expenses. Www irs gov freefile   Use Form 3903 to report your moving expenses and figure your allowable deduction. Www irs gov freefile Claim the deduction as an adjustment to income on Form 1040. Www irs gov freefile (You cannot deduct moving expenses on Form 1040A or Form 1040EZ. Www irs gov freefile ) Reimbursements. Www irs gov freefile   Generally, you must include reimbursements of, or payments for, nondeductible moving expenses in gross income for the year paid. Www irs gov freefile You also must include in gross income reimbursements paid to you under a nonaccountable plan. Www irs gov freefile However, there is an exception for the tax-free foreign areas allowances described earlier under Allowances, Differentials, and Special Pay. Www irs gov freefile Additional information. Www irs gov freefile   For additional information about moving expenses, see Publication 521. Www irs gov freefile Other Itemized Deductions You may be able to claim other itemized deductions not connected to your employment. Www irs gov freefile Contributions. Www irs gov freefile   You can deduct contributions to qualified organizations created or organized in or under the laws of the United States or its possessions. Www irs gov freefile You cannot deduct contributions you make directly to foreign organizations (except for certain Canadian, Israeli, and Mexican charities), churches, and governments. Www irs gov freefile For more information, see Publication 526, Charitable Contributions. Www irs gov freefile Real estate tax and home mortgage interest. Www irs gov freefile   If you receive a tax-free housing allowance, your itemized deductions for real estate taxes and home mortgage interest are limited. Www irs gov freefile You must reduce the amount of each deduction that would otherwise be allowable by the amount of each expense that is related to the tax-free allowance. Www irs gov freefile Example. Www irs gov freefile Adam is an IRS employee working overseas who receives a $6,300 tax-free housing and utility allowance. Www irs gov freefile During the year, Adam used the allowance, with other funds, to provide a home for himself. Www irs gov freefile His expenses for this home totaled $8,400 and consisted of mortgage principal ($500), insurance ($400), real estate taxes ($1,400), mortgage interest ($4,000), and utility costs ($2,100). Www irs gov freefile Adam did not have any other expenses related to providing a home for himself. Www irs gov freefile Adam must reduce his deductions for home mortgage interest and real estate taxes. Www irs gov freefile He figures a reasonable way to reduce them is to multiply them by a fraction: its numerator is $6,300 (the total housing and utility allowance) and its denominator is $8,400 (the total of all payments to which the housing and utility allowance applies). Www irs gov freefile The result is 3/4. Www irs gov freefile Adam reduces his otherwise allowable home mortgage interest deduction by $3,000 (the $4,000 he paid ×3/4) and his otherwise allowable real estate tax deduction by $1,050 (the $1,400 he paid × 3/4). Www irs gov freefile He can deduct $1,000 of his mortgage interest ($4,000 − $3,000) and $350 of his real estate taxes ($1,400 − $1,050) when he itemizes his deductions. Www irs gov freefile Exception to the reduction. Www irs gov freefile   If you receive a tax-free housing allowance as a member of the military or the clergy, you do not have to reduce your deductions for real estate tax and home mortgage interest expenses you are otherwise entitled to deduct. Www irs gov freefile Required statement. Www irs gov freefile   If you receive a tax-free housing allowance and have real estate tax or home mortgage interest expenses, attach a statement to your tax return. Www irs gov freefile The statement must contain all of the following information. Www irs gov freefile The amount of each type of tax-free income you received, such as a tax-free housing allowance or tax-free representation allowance. Www irs gov freefile The amount of otherwise deductible expenses attributable to each type of tax-free income. Www irs gov freefile The amount attributable to each type of tax-free income that was not directly attributable to that type of tax-free income. Www irs gov freefile An explanation of how you determined the amounts not directly attributable to each type of tax-free income. Www irs gov freefile   The statement must also indicate that none of the amounts deducted on your return are in any way attributable to tax-free income. Www irs gov freefile Foreign Taxes If you pay or accrue taxes to a foreign government, you generally can choose to either claim them as a credit against your U. Www irs gov freefile S. Www irs gov freefile income tax liability or deduct them as an itemized deduction when figuring your taxable income. Www irs gov freefile Do not include the foreign taxes paid or accrued as withheld income taxes in the Payments section of Form 1040. Www irs gov freefile Foreign tax credit. Www irs gov freefile   Your foreign tax credit is subject to a limit based on your taxable income from foreign sources. Www irs gov freefile If you choose to figure a credit against your U. Www irs gov freefile S. Www irs gov freefile tax liability for the foreign taxes, you generally must complete Form 1116 and attach it to your U. Www irs gov freefile S. Www irs gov freefile income tax return. Www irs gov freefile    You cannot claim a credit for foreign taxes paid on amounts excluded from gross income under the foreign earned income or housing exclusions. Www irs gov freefile If all your foreign income is exempt from U. Www irs gov freefile S. Www irs gov freefile tax, you will not be able to claim a foreign tax credit. Www irs gov freefile   If, because of the limit on the credit, you cannot use the full amount of qualified foreign taxes paid or accrued in the tax year, you are allowed to carry the excess back 1 year and then forward 10 years. Www irs gov freefile Exemption from limit. Www irs gov freefile   You can elect to not be subject to the foreign tax limit if you meet all the following conditions. Www irs gov freefile Your only foreign income is passive income, such as interest, dividends, and royalties. Www irs gov freefile The total of all your foreign taxes is not more than $300 ($600 for joint tax returns). Www irs gov freefile The foreign income and taxes are reported to you on a payee statement, such as Form 1099-DIV, Dividends and Distributions, or 1099-INT, Interest Income. Www irs gov freefile If you make the election, you can claim a foreign tax credit without filing Form 1116. Www irs gov freefile However, you cannot carry back or carry over any unused foreign tax to or from this year. Www irs gov freefile See the instructions for the appropriate line in the Tax and Credits section of Form 1040. Www irs gov freefile Foreign tax deduction. Www irs gov freefile   If you choose to deduct all foreign income taxes on your U. Www irs gov freefile S. Www irs gov freefile income tax return, itemize the deduction on Schedule A (Form 1040). Www irs gov freefile You cannot deduct foreign taxes paid on income you exclude under the foreign earned income or housing exclusions. Www irs gov freefile Example. Www irs gov freefile Dennis and Christina are married and live and work in Country X. Www irs gov freefile Dennis works for the U. Www irs gov freefile S. Www irs gov freefile Government and Christina is employed by a private company. Www irs gov freefile They pay income tax to Country X on Christina's income only. Www irs gov freefile Dennis and Christina file a joint tax return and exclude all of Christina's income. Www irs gov freefile They cannot claim a foreign tax credit or take a deduction for the taxes paid to Country X. Www irs gov freefile Deduction for other foreign taxes. Www irs gov freefile   The deduction for foreign taxes other than foreign income taxes is not related to the foreign tax credit. Www irs gov freefile You can take deductions for these miscellaneous foreign taxes and also claim the foreign tax credit for income taxes paid to a foreign country. Www irs gov freefile   You can deduct real property taxes you pay that are imposed on you by a foreign country. Www irs gov freefile You take this deduction on Schedule A (Form 1040). Www irs gov freefile You cannot deduct other foreign taxes, such as personal property taxes, unless you incurred the expenses in a trade or business or in the production of income. Www irs gov freefile More information. Www irs gov freefile   The foreign tax credit and deduction, their limits, and carryback and carryover provisions are discussed in detail in Publication 514. Www irs gov freefile Local (Foreign) Tax Return As a U. Www irs gov freefile S. Www irs gov freefile Government employee, you are expected to observe and fulfill all tax obligations imposed by the host country government. Www irs gov freefile Check with local tax authorities to determine whether you are considered a tax resident of your host country, whether you are required to file a host country tax return and whether you owe taxes to the host country. Www irs gov freefile Tax Treaty Benefits As discussed earlier, most income tax treaties contain an article relating to remuneration from government services. Www irs gov freefile Review the treaty text carefully to determine whether your U. Www irs gov freefile S. Www irs gov freefile Government remuneration is taxable in the host country. Www irs gov freefile You will first have to determine whether you are a resident of your host country under the treaty residence article (after application of the so-called “tie-breaker” rule). Www irs gov freefile If you or your spouse receives income from a private employer or self-employment, review the tax treaty rules relating to income from personal services to determine whether that income is taxable in the host country. Www irs gov freefile If you pay or accrue taxes to both the host country and the United States, you may be able to relieve double taxation with a foreign tax credit. Www irs gov freefile Most income tax treaties contain an article providing relief from double taxation. Www irs gov freefile Many treaties contain special foreign tax credit rules for U. Www irs gov freefile S. Www irs gov freefile citizens who are residents of a treaty country. Www irs gov freefile For more information about the foreign tax credit, see Foreign Taxes, earlier. Www irs gov freefile Other Agreements The United States may be a party to agreements other than income tax treaties that may affect your tax obligations to the host country. Www irs gov freefile For example, consular employees may be exempt from host country tax under the Vienna Convention on Consular Relations or bilateral consular agreements. Www irs gov freefile Similarly, certain diplomatic staff may be exempt from host country tax under the Vienna Convention on Diplomatic Relations. Www irs gov freefile Check with the appropriate U. Www irs gov freefile S. Www irs gov freefile Embassy for more information. Www irs gov freefile Double Withholding If your U. Www irs gov freefile S. Www irs gov freefile government pay is subject to withholding in both the United States and the foreign country, you may reduce the amount of U. Www irs gov freefile S. Www irs gov freefile tax that is withheld from your pay if you expect to be entitled to a foreign tax credit on your U. Www irs gov freefile S. Www irs gov freefile income tax return on this income. Www irs gov freefile Complete Worksheet 1-6 in Publication 505, Tax Withholding and Estimated Tax, to determine how to revise Form W-4, Employee’s Withholding Allowance Certificate. Www irs gov freefile How To Get Tax Help You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get information from the IRS in several ways. Www irs gov freefile By selecting the method that is best for you, you will have quick and easy access to tax help. Www irs gov freefile Free help with your tax return. Www irs gov freefile   Free help in preparing your return is available nationwide from IRS-certified volunteers. Www irs gov freefile The Volunteer Income Tax Assistance (VITA) program is designed to help low-moderate income, elderly, disabled, and limited English proficient taxpayers. Www irs gov freefile The Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 and older with their tax returns. Www irs gov freefile Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. Www irs gov freefile Some VITA and TCE sites provide taxpayers the opportunity to prepare their return with the assistance of an IRS-certified volunteer. Www irs gov freefile To find the nearest VITA or TCE site, visit IRS. Www irs gov freefile gov or call 1-800-906-9887 or 1-800-829-1040. Www irs gov freefile   As part of the TCE program, AARP offers the Tax-Aide counseling program. Www irs gov freefile To find the nearest AARP Tax-Aide site, visit AARP's website at www. Www irs gov freefile aarp. Www irs gov freefile org/money/taxaide or call 1-888-227-7669. Www irs gov freefile   For more information on these programs, go to IRS. Www irs gov freefile gov and enter “VITA” in the search box. Www irs gov freefile Internet. Www irs gov freefile You can access the IRS website at IRS. Www irs gov freefile gov 24 hours a day, 7 days a week to: E-file your return. Www irs gov freefile Find out about commercial tax preparation and e-file services available free to eligible taxpayers. Www irs gov freefile Check the status of your 2012 refund. Www irs gov freefile Go to IRS. Www irs gov freefile gov and click on Where’s My Refund. Www irs gov freefile Information about your return will generally be available within 24 hours after the IRS receives your e-filed return, or 4 weeks after you mail your paper return. Www irs gov freefile If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). Www irs gov freefile Have your 2012 tax return handy so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Www irs gov freefile Where's My Refund? has a new look this year! The tool will include a tracker that displays progress through three stages: (1) return received, (2) refund approved, and (3) refund sent. Www irs gov freefile Where's My Refund? will provide an actual personalized refund date as soon as the IRS processes your tax return and approves your refund. Www irs gov freefile So in a change from previous filing seasons, you won't get an estimated refund date right away. Www irs gov freefile Where's My Refund? includes information for the most recent return filed in the current year and does not include information about amended returns. Www irs gov freefile You can obtain a free transcript online at IRS. Www irs gov freefile gov by clicking on Order a Return or Account Transcript under “Tools. Www irs gov freefile ” For a transcript by phone, call 1-800-908-9946 and follow the prompts in the recorded message. Www irs gov freefile You will be prompted to provide your SSN or Individual Taxpayer Identification Number (ITIN), date of birth, street address and ZIP code. Www irs gov freefile Download forms, including talking tax forms, instructions, and publications. Www irs gov freefile Order IRS products. Www irs gov freefile Research your tax questions. Www irs gov freefile Search publications by topic or keyword. Www irs gov freefile Use the Internal Revenue Code, regulations, or other official guidance. Www irs gov freefile View Internal Revenue Bulletins (IRBs) published in the last few years. Www irs gov freefile Figure your withholding allowances using the IRS Withholding Calculator at www. Www irs gov freefile irs. Www irs gov freefile gov/individuals. Www irs gov freefile Determine if Form 6251 (Alternative Minimum Tax— Individuals), must be filed by using our Alternative Minimum Tax (AMT) Assistant available at IRS. Www irs gov freefile gov by typing Alternative Minimum Tax Assistant in the search box. Www irs gov freefile Sign up to receive local and national tax news by email. Www irs gov freefile Get information on starting and operating a small business. Www irs gov freefile Phone. Www irs gov freefile Many services are available by phone. Www irs gov freefile   Ordering forms, instructions, and publications. Www irs gov freefile Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, and publications, and prior-year forms and instructions (limited to 5 years). Www irs gov freefile You should receive your order within 10 days. Www irs gov freefile Asking tax questions. Www irs gov freefile Call the IRS with your tax questions at 1-800-829-1040. Www irs gov freefile Solving problems. Www irs gov freefile You can get face-to-face help solving tax problems most business days in IRS Taxpayer Assistance Centers (TAC). Www irs gov freefile An employee can explain IRS letters, request adjustments to your account, or help you set up a payment plan. Www irs gov freefile Call your local Taxpayer Assistance Center for an appointment. Www irs gov freefile To find the number, go to www. Www irs gov freefile irs. Www irs gov freefile gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. Www irs gov freefile TTY/TDD equipment. Www irs gov freefile If you have access to TTY/TDD equipment, call 1-800-829-4059 to ask tax questions or to order forms and publications. Www irs gov freefile The TTY/TDD telephone number is for individuals who are deaf, hard of hearing, or have a speech disability. Www irs gov freefile These individuals can also access the IRS through relay services such as the Federal Relay Service at www. Www irs gov freefile gsa. Www irs gov freefile gov/fedrelay. Www irs gov freefile TeleTax topics. Www irs gov freefile Call 1-800-829-4477 to listen to pre-recorded messages covering various tax topics. Www irs gov freefile Checking the status of your 2012 refund. Www irs gov freefile To check the status of your 2012 refund, call 1-800-829-1954 or 1-800-829-4477 (automated Where's My Refund? information 24 hours a day, 7 days a week). Www irs gov freefile Information about your return will generally be available within 24 hours after the IRS receives your e-filed return, or 4 weeks after you mail your paper return. Www irs gov freefile If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). Www irs gov freefile Have your 2012 tax return handy so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Www irs gov freefile Where's My Refund? will provide an actual personalized refund date as soon as the IRS processes your tax return and approves your refund. Www irs gov freefile Where's My Refund? includes information for the most recent return filed in the current year and does not include information about amended returns. Www irs gov freefile Outside the U. Www irs gov freefile S. Www irs gov freefile If you are outside the United States, taxpayer assistance is available at the following U. Www irs gov freefile S Embassies or consulate. Www irs gov freefile Beijing, China (86) (10) 8531-3983 Frankfurt, Germany (49) (69) 7535-3834 London, England (44) (20) 7894-0476 Paris, France (33) (1) 4312-2555 Please contact the office for times when assistance will be available. Www irs gov freefile If you cannot get to one of these offices, taxpayer assistance is available at (267) 941-1000 (not a toll free call). Www irs gov freefile If you are in a U. Www irs gov freefile S. Www irs gov freefile territory (American Samoa, Guam, Northern Mariana Islands, Puerto Rico, and U. Www irs gov freefile S. Www irs gov freefile Virgin Islands) and have a tax question, you can call 1-800-829-1040. Www irs gov freefile Evaluating the quality of our telephone services. Www irs gov freefile To ensure IRS representatives give accurate, courteous, and professional answers, we use several methods to evaluate the quality of our telephone services. Www irs gov freefile One method is for a second IRS representative to listen in on or record random telephone calls. Www irs gov freefile Another is to ask some callers to complete a short survey at the end of the call. Www irs gov freefile Walk-in. Www irs gov freefile Some products and services are available on a walk-in basis. Www irs gov freefile   Products. Www irs gov freefile You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Www irs gov freefile Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. Www irs gov freefile Also, some IRS offices and libraries have the Internal Revenue Code, regulations, Internal Revenue Bulletins, and Cumulative Bulletins available for research purposes. Www irs gov freefile Services. Www irs gov freefile You can walk in to your local TAC most business days for personal, face-to-face tax help. Www irs gov freefile An employee can explain IRS letters, request adjustments to your tax account, or help you set up a payment plan. Www irs gov freefile If you need to resolve a tax problem, have questions about how the tax law applies to your individual tax return, or you are more comfortable talking with someone in person, visit your local TAC where you can talk with an IRS representative face-to-face. Www irs gov freefile No appointment is necessary—just walk in. Www irs gov freefile Before visiting, check www. Www irs gov freefile irs. Www irs gov freefile gov/localcontacts for hours of operation and services provided. Www irs gov freefile If you have an ongoing, complex tax account problem or a special need, such as a disability, an appointment can be requested by calling your local TAC. Www irs gov freefile You can leave a message and a representative will call you back within 2 business days. Www irs gov freefile All other issues will be handled without an appointment. Www irs gov freefile To call your local TAC, go to  www. Www irs gov freefile irs. Www irs gov freefile gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. Www irs gov freefile Outside the U. Www irs gov freefile S. Www irs gov freefile If you are outside the United States during the filing period (January to mid-June), you can get the necessary federal tax forms and publications from most U. Www irs gov freefile S. Www irs gov freefile Embassies and consulates. Www irs gov freefile Mail. Www irs gov freefile You can send your order for forms, instructions, and publications to the address below. Www irs gov freefile You should receive a response within 10 days after your request is received. Www irs gov freefile  Internal Revenue Service 1201 N. Www irs gov freefile Mitsubishi Motorway Bloomington, IL 61705-6613 Outside the U. Www irs gov freefile S. Www irs gov freefile If you are outside the United States, you can get tax assistance by writing to the address below. Www irs gov freefile  Internal Revenue Service International Accounts Philadelphia, PA 19255-0725 Taxpayer Advocate Service. Www irs gov freefile   The Taxpayer Advocate Service (TAS) is your voice at the IRS. Www irs gov freefile Its job is to ensure that every taxpayer is treated fairly, and that you know and understand your rights. Www irs gov freefile TAS offers free help to guide you through the often-confusing process of resolving tax problems that you haven’t been able to solve on your own. Www irs gov freefile Remember, the worst thing you can do is nothing at all. Www irs gov freefile   TAS can help if you can’t resolve your problem with the IRS and: Your problem is causing financial difficulties for you, your family, or your business. Www irs gov freefile You face (or your business is facing) an immediate threat of adverse action. Www irs gov freefile You have tried repeatedly to contact the IRS but no one has responded, or the IRS has not responded to you by the date promised. Www irs gov freefile   If you qualify for help, they will do everything they can to get your problem resolved. Www irs gov freefile You will be assigned to one advocate who will be with you at every turn. Www irs gov freefile TAS has offices in every state, the District of Columbia, and Puerto Rico. Www irs gov freefile Although TAS is independent within the IRS, their advocates know how to work with the IRS to get your problems resolved. Www irs gov freefile And its services are always free. Www irs gov freefile   As a taxpayer, you have rights that the IRS must abide by in its dealings with you. Www irs gov freefile The TAS tax toolkit at www. Www irs gov freefile TaxpayerAdvocate. Www irs gov freefile irs. Www irs gov freefile gov can help you understand these rights. Www irs gov freefile   If you think TAS might be able to help you, call your local advocate, whose number is in your phone book and on our website at www. Www irs gov freefile irs. Www irs gov freefile gov/advocate. Www irs gov freefile You can also call the toll-free number at 1-877-777-4778. Www irs gov freefile Deaf and hard of hearing individuals who have access to TTY/TDD equipment can call 1-800-829-4059. Www irs gov freefile These individuals can also access the IRS through relay services such as the Federal Relay Service at www. Www irs gov freefile gsa. Www irs gov freefile gov/fedrelay. Www irs gov freefile   TAS also handles large-scale or systemic problems that affect many taxpayers. Www irs gov freefile If you know of one of these broad issues, please report it through the Systemic Advocacy Management System at www. Www irs gov freefile irs. Www irs gov freefile gov/advocate. Www irs gov freefile    Outside the U. Www irs gov freefile S. Www irs gov freefile If you live outside of the United States, you can call the Taxpayer Advocate at (787) 522-8601 in English or (787) 522-8600 in Spanish. Www irs gov freefile You can contact the Taxpayer Advocate at: Internal Revenue Service Taxpayer Advocate Service City View Plaza, 48 Carr 165, Suite 2000 Guaynabo, P. Www irs gov freefile R. Www irs gov freefile 00968-8000 Low Income Taxpayer Clinics (LITCs). Www irs gov freefile   Low Income Taxpayer Clinics (LITCs) are independent from the IRS. Www irs gov freefile Some clinics serve individuals whose income is below a certain level and who need to resolve a tax problem. Www irs gov freefile These clinics provide professional representation before the IRS or in court on audits, appeals, tax collection disputes, and other issues for free or for a small fee. Www irs gov freefile Some clinics can provide information about taxpayer rights and responsibilities in many different languages for individuals who speak English as a second language. Www irs gov freefile For more information and to find a clinic near you, see the LITC page on www. Www irs gov freefile irs. Www irs gov freefile gov/advocate or IRS Publication 4134, Low Income Taxpayer Clinic List. Www irs gov freefile This publication is also available by calling 1-800-TAX-FORM (1-800-829-3676) or at your local IRS office. Www irs gov freefile Free tax services. Www irs gov freefile   Publication 910, IRS Guide to Free Tax Services, is your guide to IRS services and resources. Www irs gov freefile Learn about free tax information from the IRS, including publications, services, and education and assistance programs. Www irs gov freefile The publication also has an index of over 100 TeleTax topics (recorded tax information) you can listen to on the telephone. Www irs gov freefile The majority of the information and services listed in this publication are available to you free of charge. Www irs gov freefile If there is a fee associated with a resource or service, it is listed in the publication. Www irs gov freefile   Accessible versions of IRS published products are available on request in a variety of alternative formats for people with disabilities. Www irs gov freefile DVD for tax products. Www irs gov freefile You can order Publication 1796, IRS Tax Products DVD, and obtain: Current-year forms, instructions, and publications. Www irs gov freefile Prior-year forms, instructions, and publications. Www irs gov freefile Tax Map: an electronic research tool and finding aid. Www irs gov freefile Tax law frequently asked questions. Www irs gov freefile Tax Topics from the IRS telephone response system. Www irs gov freefile Internal Revenue Code—Title 26 of the U. Www irs gov freefile S. Www irs gov freefile Code. Www irs gov freefile Links to other Internet-based tax research materials. Www irs gov freefile Fill-in, print, and save features for most tax forms. Www irs gov freefile Internal Revenue Bulletins. Www irs gov freefile Toll-free and email technical support. Www irs gov freefile Two releases during the year. Www irs gov freefile  – The first release will ship the beginning of January 2013. Www irs gov freefile  – The final release will ship the beginning of March 2013. Www irs gov freefile Purchase the DVD from National Technical Information Service (NTIS) at www. Www irs gov freefile irs. Www irs gov freefile gov/cdorders for $30 (no handling fee) or call 1-877-233-6767 toll free to buy the DVD for $30 (plus a $6 handling fee). Www irs gov freefile Prev  Up  Next   Home   More Online Publications