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1040 A Tax Form

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1040 A Tax Form

1040 a tax form 11. 1040 a tax form   Other Expenses Table of Contents What's New Introduction Topics - This chapter discusses: Useful Items - You may want to see: Reimbursement of Travel, Meals, and EntertainmentReimbursements Miscellaneous ExpensesMeaning of generally enforced. 1040 a tax form Kickbacks. 1040 a tax form Form 1099-MISC. 1040 a tax form Exception. 1040 a tax form Tax preparation fees. 1040 a tax form Covered executive branch official. 1040 a tax form Exceptions to denial of deduction. 1040 a tax form Indirect political contributions. 1040 a tax form Type of deduction. 1040 a tax form Repayment—$3,000 or less. 1040 a tax form Repayment—over $3,000. 1040 a tax form Method 1. 1040 a tax form Method 2. 1040 a tax form Repayment does not apply. 1040 a tax form Year of deduction (or credit). 1040 a tax form Telephone. 1040 a tax form What's New Standard mileage rate. 1040 a tax form  Beginning in 2013, the standard mileage rate for the cost of operating your car, van, pickup, or panel truck for business use is 56. 1040 a tax form 5 cents per mile. 1040 a tax form For more information, see Car and truck expenses under Miscellaneous Expenses. 1040 a tax form Introduction This chapter covers business expenses that may not have been explained to you, as a business owner, in previous chapters of this publication. 1040 a tax form Topics - This chapter discusses: Travel, meals, and entertainment Bribes and kickbacks Charitable contributions Education expenses Lobbying expenses Penalties and fines Repayments (claim of right) Other miscellaneous expenses Useful Items - You may want to see: Publication 15-B Employer's Tax Guide to Fringe Benefits 463 Travel, Entertainment, Gift, and Car Expenses 526 Charitable Contributions 529 Miscellaneous Deductions 544 Sales and Other Dispositions of Assets 970 Tax Benefits for Education 1542 Per Diem Rates See chapter 12 for information about getting publications and forms. 1040 a tax form Reimbursement of Travel, Meals, and Entertainment The following discussion explains how to handle any reimbursements or allowances you may provide to your employees under a reimbursement or allowance arrangement for travel, meals, and entertainment expenses. 1040 a tax form If you are self-employed and report your income and expenses on Schedule C or C-EZ (Form 1040), see Publication 463. 1040 a tax form To be deductible for tax purposes, expenses incurred for travel, meals, and entertainment must be ordinary and necessary expenses incurred while carrying on your trade or business. 1040 a tax form Generally, you also must show that entertainment expenses (including meals) are directly related to, or associated with, the conduct of your trade or business. 1040 a tax form For more information on travel, meals, and entertainment, including deductibility, see Publication 463. 1040 a tax form Reimbursements A “reimbursement or allowance arrangement” provides for payment of advances, reimbursements, and allowances for travel, meals, and entertainment expenses incurred by your employees during the ordinary course of business. 1040 a tax form If the expenses are substantiated, you can deduct the allowable amount on your tax return. 1040 a tax form Because of differences between accounting methods and tax law, the amount you can deduct for tax purposes may not be the same as the amount you deduct on your business books and records. 1040 a tax form For example, you can deduct 100% of the cost of meals on your business books and records. 1040 a tax form However, only 50% of these costs are allowed by law as a tax deduction. 1040 a tax form How you deduct a business expense under a reimbursement or allowance arrangement depends on whether you have: An accountable plan, or A nonaccountable plan. 1040 a tax form If you reimburse these expenses under an accountable plan, deduct them as travel, meals, or entertainment expenses. 1040 a tax form If you reimburse these expenses under a nonaccountable plan, report the reimbursements as wages on Form W-2, Wage and Tax Statement, and deduct them as wages on the appropriate line of your tax return. 1040 a tax form If you make a single payment to your employees and it includes both wages and an expense reimbursement, you must specify the amount of the reimbursement and report it accordingly. 1040 a tax form See Table 11-1 , Reporting Reimbursements. 1040 a tax form Accountable Plans An accountable plan requires your employees to meet all of the following requirements. 1040 a tax form Each employee must: Have paid or incurred deductible expenses while performing services as your employee, Adequately account to you for these expenses within a reasonable period of time, and Return any excess reimbursement or allowance within a reasonable period of time. 1040 a tax form An arrangement under which you advance money to employees is treated as meeting (3) above only if the following requirements are also met. 1040 a tax form The advance is reasonably calculated not to exceed the amount of anticipated expenses. 1040 a tax form You make the advance within a reasonable period of time of your employee paying or incurring the expense. 1040 a tax form If any expenses reimbursed under this arrangement are not substantiated, or an excess reimbursement is not returned within a reasonable period of time by an employee, you cannot treat these expenses as reimbursed under an accountable plan. 1040 a tax form Instead, treat the reimbursed expenses as paid under a nonaccountable plan, discussed later. 1040 a tax form Adequate accounting. 1040 a tax form   Your employees must adequately account to you for their travel, meals, and entertainment expenses. 1040 a tax form They must give you documentary evidence of their travel, mileage, and other employee business expenses. 1040 a tax form This evidence should include items such as receipts, along with either a statement of expenses, an account book, a day-planner, or similar record in which the employee entered each expense at or near the time the expense was incurred. 1040 a tax form Excess reimbursement or allowance. 1040 a tax form   An excess reimbursement or allowance is any amount you pay to an employee that is more than the business-related expenses for which the employee adequately accounted. 1040 a tax form The employee must return any excess reimbursement or other expense allowance to you within a reasonable period of time. 1040 a tax form Reasonable period of time. 1040 a tax form   A reasonable period of time depends on the facts and circumstances. 1040 a tax form Generally, actions that take place within the times specified in the following list will be treated as taking place within a reasonable period of time. 1040 a tax form You give an advance within 30 days of the time the employee pays or incurs the expense. 1040 a tax form Your employees adequately account for their expenses within 60 days after the expenses were paid or incurred. 1040 a tax form Your employees return any excess reimbursement within 120 days after the expenses were paid or incurred. 1040 a tax form You give a periodic statement (at least quarterly) to your employees that asks them to either return or adequately account for outstanding advances and they comply within 120 days of the date of the statement. 1040 a tax form How to deduct. 1040 a tax form   You can claim a deduction for travel, meals, and entertainment expenses if you reimburse your employees for these expenses under an accountable plan. 1040 a tax form Generally, the amount you can deduct for meals and entertainment is subject to a 50% limit, discussed later. 1040 a tax form If you are a sole proprietor, or are filing as a single member limited liability company, deduct the travel reimbursement on line 24a and the deductible part of the meals and entertainment reimbursement on line 24b, Schedule C (Form 1040) or line 2, Schedule C-EZ (Form 1040). 1040 a tax form   If you are filing an income tax return for a corporation, include the reimbursement on the Other deductions line of Form 1120, U. 1040 a tax form S. 1040 a tax form Corporation Income Tax Return. 1040 a tax form If you are filing any other business income tax return, such as a partnership or S corporation return, deduct the reimbursement on the appropriate line of the return as provided in the instructions for that return. 1040 a tax form Table 11-1. 1040 a tax form Reporting Reimbursements IF the type of reimbursement (or other expense allowance) arrangement is under THEN the employer reports on Form W-2 An accountable plan with: Actual expense reimbursement:  Adequate accounting made and excess returned No amount. 1040 a tax form Actual expense reimbursement:  Adequate accounting and return of excess both required but excess not returned The excess amount as wages in box 1. 1040 a tax form Per diem or mileage allowance up to the federal rate:  Adequate accounting made and excess returned No amount. 1040 a tax form Per diem or mileage allowance up to the federal rate:  Adequate accounting and return of excess both required but excess not returned The excess amount as wages in box 1. 1040 a tax form The amount up to the federal rate is reported only in box 12—it is not reported in box 1. 1040 a tax form Per diem or mileage allowance exceeds the federal rate:  Adequate accounting made up to the federal rate only and excess not returned The excess amount as wages in box 1. 1040 a tax form The amount up to the federal rate is reported only in box 12—it is not reported in box 1. 1040 a tax form A nonaccountable plan with: Either adequate accounting or return of excess, or both, not required by plan The entire amount as wages in box 1. 1040 a tax form No reimbursement plan The entire amount as wages in box 1. 1040 a tax form Per Diem and Car Allowances You can reimburse your employees under an accountable plan based on travel days, miles, or some other fixed allowance. 1040 a tax form In these cases, your employee is considered to have accounted to you for the amount of the expense that does not exceed the rates established by the federal government. 1040 a tax form Your employee must actually substantiate to you the other elements of the expense, such as time, place, and business purpose. 1040 a tax form Federal rate. 1040 a tax form   The federal rate can be figured using any one of the following methods. 1040 a tax form For car expenses: The standard mileage rate. 1040 a tax form A fixed and variable rate (FAVR). 1040 a tax form For per diem amounts: The regular federal per diem rate. 1040 a tax form The standard meal allowance. 1040 a tax form The high-low rate. 1040 a tax form Car allowance. 1040 a tax form   Your employee is considered to have accounted to you for car expenses that do not exceed the standard mileage rate. 1040 a tax form Beginning in 2013, the standard business mileage rate is 56. 1040 a tax form 5 cents per mile. 1040 a tax form   You can choose to reimburse your employees using a fixed and variable rate (FAVR) allowance. 1040 a tax form This is an allowance that includes a combination of payments covering fixed and variable costs, such as a cents-per-mile rate to cover your employees' variable operating costs (such as gas, oil, etc. 1040 a tax form ) plus a flat amount to cover your employees' fixed costs (such as depreciation, insurance, etc. 1040 a tax form ). 1040 a tax form For information on using a FAVR allowance, see Revenue Procedure 2010-51, available at www. 1040 a tax form irs. 1040 a tax form gov/irb/2010-51_IRB/ar14. 1040 a tax form html and Notice 2012-72, available at www. 1040 a tax form irs. 1040 a tax form gov/irb/2012-50_IRB/ar10. 1040 a tax form html. 1040 a tax form Per diem allowance. 1040 a tax form   If your employee actually substantiates to you the other elements (discussed earlier) of the expenses reimbursed using the per diem allowance, how you report and deduct the allowance depends on whether the allowance is for lodging and meal expenses or for meal expenses only and whether the allowance is more than the federal rate. 1040 a tax form Regular federal per diem rate. 1040 a tax form   The regular federal per diem rate is the highest amount the federal government will pay to its employees while away from home on travel. 1040 a tax form It has two components: Lodging expense, and Meal and incidental expense (M&IE). 1040 a tax form The rates are different for different locations. 1040 a tax form Publication 1542 lists the rates in the continental United States. 1040 a tax form Standard meal allowance. 1040 a tax form   The federal rate for meal and incidental expenses (M&IE) is the standard meal allowance. 1040 a tax form You can pay only an M&IE allowance to employees who travel away from home if: You pay the employee for actual expenses for lodging based on receipts submitted to you, You provide for the lodging, You pay for the actual expense of the lodging directly to the provider, You do not have a reasonable belief that lodging expenses were incurred by the employee, or The allowance is computed on a basis similar to that used in computing the employee's wages (that is, number of hours worked or miles traveled). 1040 a tax form Internet access. 1040 a tax form    Per diem rates are available on the Internet. 1040 a tax form You can access per diem rates at www. 1040 a tax form gsa. 1040 a tax form gov/perdiemrates. 1040 a tax form High-low method. 1040 a tax form   This is a simplified method of computing the federal per diem rate for travel within the continental United States. 1040 a tax form It eliminates the need to keep a current list of the per diem rate for each city. 1040 a tax form   Under the high-low method, the per diem amount for travel during January through September of 2013 is $242 ($65 for M&IE) for certain high-cost locations. 1040 a tax form All other areas have a per diem amount of $163 ($52 for M&IE). 1040 a tax form The high-cost locations eligible for the higher per diem amount under the high-low method are listed in Publication 1542. 1040 a tax form   Effective October 1, 2013, the per diem rate for high-cost locations increased to $251 ($65 for M&IE). 1040 a tax form The rate for all other locations increased to $170 ($52 for M&IE). 1040 a tax form For October, November, and December 2013, you can either continue to use the rates described in the preceding paragraph or change to the new rates. 1040 a tax form However, you must use the same rate for all employees reimbursed under the high-low method. 1040 a tax form   For more information about the high-low method, see Notice 2013-65, available at www. 1040 a tax form irs. 1040 a tax form gov/irb/2013-44_IRB/ar13. 1040 a tax form html. 1040 a tax form See Publication 1542 (available on the Internet at IRS. 1040 a tax form gov) for the current per diem rates for all locations. 1040 a tax form Reporting per diem and car allowances. 1040 a tax form   The following discussion explains how to report per diem and car allowances. 1040 a tax form The manner in which you report them depends on how the allowance compares to the federal rate. 1040 a tax form See Table 11-1. 1040 a tax form Allowance less than or equal to the federal rate. 1040 a tax form   If your allowance for the employee is less than or equal to the appropriate federal rate, that allowance is not included as part of the employee's pay in box 1 of the employee's Form W-2. 1040 a tax form Deduct the allowance as travel expenses (including meals that may be subject to the 50% limit, discussed later). 1040 a tax form See How to deduct under Accountable Plans, earlier. 1040 a tax form Allowance more than the federal rate. 1040 a tax form   If your employee's allowance is more than the appropriate federal rate, you must report the allowance as two separate items. 1040 a tax form   Include the allowance amount up to the federal rate in box 12 (code L) of the employee's Form W-2. 1040 a tax form Deduct it as travel expenses (as explained above). 1040 a tax form This part of the allowance is treated as reimbursed under an accountable plan. 1040 a tax form   Include the amount that is more than the federal rate in box 1 (and in boxes 3 and 5 if they apply) of the employee's Form W-2. 1040 a tax form Deduct it as wages subject to income tax withholding, social security, Medicare, and federal unemployment taxes. 1040 a tax form This part of the allowance is treated as reimbursed under a nonaccountable plan as explained later under Nonaccountable Plans. 1040 a tax form Meals and Entertainment Under an accountable plan, you can generally deduct only 50% of any otherwise deductible business-related meal and entertainment expenses you reimburse your employees. 1040 a tax form The deduction limit applies even if you reimburse them for 100% of the expenses. 1040 a tax form Application of the 50% limit. 1040 a tax form   The 50% deduction limit applies to reimbursements you make to your employees for expenses they incur for meals while traveling away from home on business and for entertaining business customers at your place of business, a restaurant, or another location. 1040 a tax form It applies to expenses incurred at a business convention or reception, business meeting, or business luncheon at a club. 1040 a tax form The deduction limit may also apply to meals you furnish on your premises to your employees. 1040 a tax form Related expenses. 1040 a tax form   Taxes and tips relating to a meal or entertainment activity you reimburse to your employee under an accountable plan are included in the amount subject to the 50% limit. 1040 a tax form Reimbursements you make for expenses, such as cover charges for admission to a nightclub, rent paid for a room to hold a dinner or cocktail party, or the amount you pay for parking at a sports arena, are all subject to the 50% limit. 1040 a tax form However, the cost of transportation to and from an otherwise allowable business meal or a business-related entertainment activity is not subject to the 50% limit. 1040 a tax form Amount subject to 50% limit. 1040 a tax form   If you provide your employees with a per diem allowance only for meal and incidental expenses, the amount treated as an expense for food and beverages is the lesser of the following. 1040 a tax form The per diem allowance. 1040 a tax form The federal rate for M&IE. 1040 a tax form   If you provide your employees with a per diem allowance that covers lodging, meals, and incidental expenses, you must treat an amount equal to the federal M&IE rate for the area of travel as an expense for food and beverages. 1040 a tax form If the per diem allowance you provide is less than the federal per diem rate for the area of travel, you can treat 40% of the per diem allowance as the amount for food and beverages. 1040 a tax form Meal expenses when subject to “hours of service” limits. 1040 a tax form   You can deduct 80% of the cost of reimbursed meals your employees consume while away from their tax home on business during, or incident to, any period subject to the Department of Transportation's “hours of service” limits. 1040 a tax form   See Publication 463 for a detailed discussion of individuals subject to the Department of Transportation's “hours of service” limits. 1040 a tax form De minimis (minimal) fringe benefit. 1040 a tax form   The 50% limit does not apply to an expense for food or beverage that is excluded from the gross income of an employee because it is a de minimis fringe benefit. 1040 a tax form See Publication 15-B for additional information on de minimis fringe benefits. 1040 a tax form Company cafeteria or executive dining room. 1040 a tax form   The cost of food and beverages you provide primarily to your employees on your business premises is deductible. 1040 a tax form This includes the cost of maintaining the facilities for providing the food and beverages. 1040 a tax form These expenses are subject to the 50% limit unless they qualify as a de minimis fringe benefit, as just discussed, or unless they are compensation to your employees (explained later). 1040 a tax form Employee activities. 1040 a tax form   The expense of providing recreational, social, or similar activities (including the use of a facility) for your employees is deductible and is not subject to the 50% limit. 1040 a tax form The benefit must be primarily for your employees who are not highly compensated. 1040 a tax form   For this purpose, a highly compensated employee is an employee who meets either of the following requirements. 1040 a tax form Owned a 10% or more interest in the business during the year or the preceding year. 1040 a tax form An employee is treated as owning any interest owned by his or her brother, sister, spouse, ancestors, and lineal descendants. 1040 a tax form Received more than $115,000 in pay for the preceding year. 1040 a tax form You can choose to include only employees who were also in the top 20% of employees when ranked by pay for the preceding year. 1040 a tax form   For example, the expenses for food, beverages, and entertainment for a company-wide picnic are not subject to the 50% limit. 1040 a tax form Meals or entertainment treated as compensation. 1040 a tax form   The 50% limit does not apply to either of the following. 1040 a tax form Expenses for meals or entertainment that you treat as: Compensation to an employee who was the recipient of the meals or entertainment, and Wages subject to withholding of federal income tax. 1040 a tax form Expenses for meals or entertainment if: A recipient of the meals or entertainment who is not your employee has to include the expenses in gross income as compensation for services or as a prize or award, and You include that amount on a Form 1099 issued to the recipient, if a Form 1099 is required. 1040 a tax form Sales of meals or entertainment. 1040 a tax form   You can deduct the cost of meals or entertainment (including the use of facilities) you sell to the public. 1040 a tax form For example, if you run a nightclub, your expense for the entertainment you furnish to your customers, such as a floor show, is a business expense that is fully deductible. 1040 a tax form The 50% limit does not apply to this expense. 1040 a tax form Providing meals or entertainment to general public to promote goodwill. 1040 a tax form   You can deduct the cost of providing meals, entertainment, or recreational facilities to the general public as a means of advertising or promoting goodwill in the community. 1040 a tax form The 50% limit does not apply to this expense. 1040 a tax form Director, stockholder, or employee meetings. 1040 a tax form   You can deduct entertainment expenses directly related to business meetings of your employees, partners, stockholders, agents, or directors. 1040 a tax form You can provide some minor social activities, but the main purpose of the meeting must be your company's business. 1040 a tax form These expenses are subject to the 50% limit. 1040 a tax form Trade association meetings. 1040 a tax form   You can deduct expenses directly related to and necessary for attending business meetings or conventions of certain tax-exempt organizations. 1040 a tax form These organizations include business leagues, chambers of commerce, real estate boards, and trade and professional associations. 1040 a tax form Nonaccountable Plans A nonaccountable plan is an arrangement that does not meet the requirements for an accountable plan. 1040 a tax form All amounts paid, or treated as paid, under a nonaccountable plan are reported as wages on Form W-2. 1040 a tax form The payments are subject to income tax withholding, social security, Medicare, and federal unemployment taxes. 1040 a tax form You can deduct the reimbursement as compensation or wages only to the extent it meets the deductibility tests for employees' pay in chapter 2. 1040 a tax form Deduct the allowable amount as compensation or wages on the appropriate line of your income tax return, as provided in its instructions. 1040 a tax form Miscellaneous Expenses In addition to travel, meal, and entertainment expenses, there are other expenses you can deduct. 1040 a tax form Advertising expenses. 1040 a tax form   You generally can deduct reasonable advertising expenses that are directly related to your business activities. 1040 a tax form Generally, you cannot deduct amounts paid to influence legislation (i. 1040 a tax form e. 1040 a tax form , lobbying). 1040 a tax form See Lobbying expenses , later. 1040 a tax form   You can usually deduct as a business expense the cost of institutional or goodwill advertising to keep your name before the public if it relates to business you reasonably expect to gain in the future. 1040 a tax form For example, the cost of advertising that encourages people to contribute to the Red Cross, to buy U. 1040 a tax form S. 1040 a tax form Savings Bonds, or to participate in similar causes is usually deductible. 1040 a tax form Anticipated liabilities. 1040 a tax form   Anticipated liabilities or reserves for anticipated liabilities are not deductible. 1040 a tax form For example, assume you sold 1-year TV service contracts this year totaling $50,000. 1040 a tax form From experience, you know you will have expenses of about $15,000 in the coming year for these contracts. 1040 a tax form You cannot deduct any of the $15,000 this year by charging expenses to a reserve or liability account. 1040 a tax form You can deduct your expenses only when you actually pay or accrue them, depending on your accounting method. 1040 a tax form Bribes and kickbacks. 1040 a tax form   Engaging in the payment of bribes or kickbacks is a serious criminal matter. 1040 a tax form Such activity could result in criminal prosecution. 1040 a tax form Any payments that appear to have been made, either directly or indirectly, to an official or employee of any government or an agency or instrumentality of any government are not deductible for tax purposes and are in violation of the law. 1040 a tax form   Payments paid directly or indirectly to a person in violation of any federal or state law (but only if that state law is generally enforced, defined below) that provides for a criminal penalty or for the loss of a license or privilege to engage in a trade or business are also not allowed as a deduction for tax purposes. 1040 a tax form Meaning of “generally enforced. 1040 a tax form ”   A state law is considered generally enforced unless it is never enforced or enforced only for infamous persons or persons whose violations are extraordinarily flagrant. 1040 a tax form For example, a state law is generally enforced unless proper reporting of a violation of the law results in enforcement only under unusual circumstances. 1040 a tax form Kickbacks. 1040 a tax form   A kickback is a payment for referring a client, patient, or customer. 1040 a tax form The common kickback situation occurs when money or property is given to someone as payment for influencing a third party to purchase from, use the services of, or otherwise deal with the person who pays the kickback. 1040 a tax form In many cases, the person whose business is being sought or enjoyed by the person who pays the kickback is not aware of the payment. 1040 a tax form   For example, the Yard Corporation is in the business of repairing ships. 1040 a tax form It returns 10% of the repair bills as kickbacks to the captains and chief officers of the vessels it repairs. 1040 a tax form Although this practice is considered an ordinary and necessary expense of getting business, it is clearly a violation of a state law that is generally enforced. 1040 a tax form These expenditures are not deductible for tax purposes, whether or not the owners of the shipyard are subsequently prosecuted. 1040 a tax form Form 1099-MISC. 1040 a tax form   It does not matter whether any kickbacks paid during the tax year are deductible on your income tax return in regards to information reporting. 1040 a tax form See Form 1099-MISC for more information. 1040 a tax form Car and truck expenses. 1040 a tax form   The costs of operating a car, truck, or other vehicle in your business are deductible. 1040 a tax form For more information on how to figure your deduction, see Publication 463. 1040 a tax form Charitable contributions. 1040 a tax form   Cash payments to an organization, charitable or otherwise, may be deductible as business expenses if the payments are not charitable contributions or gifts and are directly related to your business. 1040 a tax form If the payments are charitable contributions or gifts, you cannot deduct them as business expenses. 1040 a tax form However, corporations (other than S corporations) can deduct charitable contributions on their income tax returns, subject to limitations. 1040 a tax form See the Instructions for Form 1120 for more information. 1040 a tax form Sole proprietors, partners in a partnership, or shareholders in an S corporation may be able to deduct charitable contributions made by their business on Schedule A (Form 1040). 1040 a tax form Example. 1040 a tax form You paid $15 to a local church for a half-page ad in a program for a concert it is sponsoring. 1040 a tax form The purpose of the ad was to encourage readers to buy your products. 1040 a tax form Your payment is not a charitable contribution. 1040 a tax form You can deduct it as an advertising expense. 1040 a tax form Example. 1040 a tax form You made a $100,000 donation to a committee organized by the local Chamber of Commerce to bring a convention to your city, intended to increase business activity, including yours. 1040 a tax form Your payment is not a charitable contribution. 1040 a tax form You can deduct it as a business expense. 1040 a tax form See Publication 526 for a discussion of donated inventory, including capital gain property. 1040 a tax form Club dues and membership fees. 1040 a tax form   Generally, you cannot deduct amounts paid or incurred for membership in any club organized for business, pleasure, recreation, or any other social purpose. 1040 a tax form This includes country clubs, golf and athletic clubs, hotel clubs, sporting clubs, airline clubs, and clubs operated to provide meals under circumstances generally considered to be conducive to business discussions. 1040 a tax form Exception. 1040 a tax form   The following organizations are not treated as clubs organized for business, pleasure, recreation, or other social purpose unless one of the main purposes is to conduct entertainment activities for members or their guests or to provide members or their guests with access to entertainment facilities. 1040 a tax form Boards of trade. 1040 a tax form Business leagues. 1040 a tax form Chambers of commerce. 1040 a tax form Civic or public service organizations. 1040 a tax form Professional organizations such as bar associations and medical associations. 1040 a tax form Real estate boards. 1040 a tax form Trade associations. 1040 a tax form Credit card convenience fees. 1040 a tax form   Credit card companies charge a fee to businesses who accept their cards. 1040 a tax form This fee when paid or incurred by the business can be deducted as a business expense. 1040 a tax form Damages recovered. 1040 a tax form   Special rules apply to compensation you receive for damages sustained as a result of patent infringement, breach of contract or fiduciary duty, or antitrust violations. 1040 a tax form You must include this compensation in your income. 1040 a tax form However, you may be able to take a special deduction. 1040 a tax form The deduction applies only to amounts recovered for actual economic injury, not any additional amount. 1040 a tax form The deduction is the smaller of the following. 1040 a tax form The amount you received or accrued for damages in the tax year reduced by the amount you paid or incurred in the year to recover that amount. 1040 a tax form Your losses from the injury you have not deducted. 1040 a tax form Demolition expenses or losses. 1040 a tax form   Amounts paid or incurred to demolish a structure are not deductible. 1040 a tax form These amounts are added to the basis of the land where the demolished structure was located. 1040 a tax form Any loss for the remaining undepreciated basis of a demolished structure would not be recognized until the property is disposed of. 1040 a tax form Education expenses. 1040 a tax form   Ordinary and necessary expenses paid for the cost of the education and training of your employees are deductible. 1040 a tax form See Education Expenses in chapter 2. 1040 a tax form   You can also deduct the cost of your own education (including certain related travel) related to your trade or business. 1040 a tax form You must be able to show the education maintains or improves skills required in your trade or business, or that it is required by law or regulations, for keeping your license to practice, status, or job. 1040 a tax form For example, an attorney can deduct the cost of attending Continuing Legal Education (CLE) classes that are required by the state bar association to maintain his or her license to practice law. 1040 a tax form   Education expenses you incur to meet the minimum requirements of your present trade or business, or those that qualify you for a new trade or business, are not deductible. 1040 a tax form This is true even if the education maintains or improves skills presently required in your business. 1040 a tax form For more information on education expenses, see Publication 970. 1040 a tax form Franchise, trademark, trade name. 1040 a tax form   If you buy a franchise, trademark, or trade name, you can deduct the amount you pay or incur as a business expense only if your payments are part of a series of payments that are: Contingent on productivity, use, or disposition of the item, Payable at least annually for the entire term of the transfer agreement, and Substantially equal in amount (or payable under a fixed formula). 1040 a tax form   When determining the term of the transfer agreement, include all renewal options and any other period for which you and the transferrer reasonably expect the agreement to be renewed. 1040 a tax form   A franchise includes an agreement that gives one of the parties to the agreement the right to distribute, sell, or provide goods, services, or facilities within a specified area. 1040 a tax form Impairment-related expenses. 1040 a tax form   If you are disabled, you can deduct expenses necessary for you to be able to work (impairment-related expenses) as a business expense, rather than as a medical expense. 1040 a tax form   You are disabled if you have either of the following. 1040 a tax form A physical or mental disability (for example, blindness or deafness) that functionally limits your being employed. 1040 a tax form A physical or mental impairment that substantially limits one or more of your major life activities. 1040 a tax form   The expense qualifies as a business expense if all the following apply. 1040 a tax form Your work clearly requires the expense for you to satisfactorily perform that work. 1040 a tax form The goods or services purchased are clearly not needed or used, other than incidentally, in your personal activities. 1040 a tax form Their treatment is not specifically provided for under other tax law provisions. 1040 a tax form Example. 1040 a tax form You are blind. 1040 a tax form You must use a reader to do your work, both at and away from your place of work. 1040 a tax form The reader's services are only for your work. 1040 a tax form You can deduct your expenses for the reader as a business expense. 1040 a tax form Internet-related expenses. 1040 a tax form   Generally, you can deduct internet-related expenses including domain registrations fees and webmaster consulting costs. 1040 a tax form If you are starting a business you may have to amortize these expenses as start-up costs. 1040 a tax form For more information about amortizing start-up and organizational costs, see chapter 8. 1040 a tax form Interview expense allowances. 1040 a tax form   Reimbursements you make to job candidates for transportation or other expenses related to interviews for possible employment are not wages. 1040 a tax form You can deduct the reimbursements as a business expense. 1040 a tax form However, expenses for food, beverages, and entertainment are subject to the 50% limit discussed earlier under Meals and Entertainment. 1040 a tax form Legal and professional fees. 1040 a tax form   Fees charged by accountants and attorneys that are ordinary and necessary expenses directly related to operating your business are deductible as business expenses. 1040 a tax form However, usually legal fees you pay to acquire business assets are not deductible. 1040 a tax form These costs are added to the basis of the property. 1040 a tax form   Fees that include payments for work of a personal nature (such as drafting a will, or damages arising from a personal injury) are not allowed as a business deduction on Schedule C or C-EZ. 1040 a tax form If the invoice includes both business and personal charges, compute the business portion as follows: multiply the total amount of the bill by a fraction, the numerator of which is the amount attributable to business matters, the denominator of which is the total amount paid. 1040 a tax form The result is the portion of the invoice attributable to business expenses. 1040 a tax form The portion attributable to personal matters is the difference between the total amount and the business portion (computed above). 1040 a tax form   Legal fees relating to personal tax advice may be deductible on Schedule A (Form 1040), if you itemize deductions. 1040 a tax form However, the deduction is subject to the 2% limitation on miscellaneous itemized deductions. 1040 a tax form See Publication 529, Miscellaneous Deductions. 1040 a tax form Tax preparation fees. 1040 a tax form   The cost of hiring a tax professional, such as a C. 1040 a tax form P. 1040 a tax form A. 1040 a tax form , to prepare that part of your tax return relating to your business as a sole proprietor is deductible on Schedule C or Schedule C-EZ. 1040 a tax form Any remaining cost may be deductible on Schedule A (Form 1040) if you itemize deductions. 1040 a tax form   You can also claim a business deduction for amounts paid or incurred in resolving asserted tax deficiencies for your business operated as a sole proprietor. 1040 a tax form Licenses and regulatory fees. 1040 a tax form   Licenses and regulatory fees for your trade or business paid annually to state or local governments generally are deductible. 1040 a tax form Some licenses and fees may have to be amortized. 1040 a tax form See chapter 8 for more information. 1040 a tax form Lobbying expenses. 1040 a tax form   Generally, lobbying expenses are not deductible. 1040 a tax form Lobbying expenses include amounts paid or incurred for any of the following activities. 1040 a tax form Influencing legislation. 1040 a tax form Participating in or intervening in any political campaign for, or against, any candidate for public office. 1040 a tax form Attempting to influence the general public, or segments of the public, about elections, legislative matters, or referendums. 1040 a tax form Communicating directly with covered executive branch officials (defined later) in any attempt to influence the official actions or positions of those officials. 1040 a tax form Researching, preparing, planning, or coordinating any of the preceding activities. 1040 a tax form   Your expenses for influencing legislation and communicating directly with a covered executive branch official include a portion of your labor costs and general and administrative costs of your business. 1040 a tax form For information on making this allocation, see section 1. 1040 a tax form 162-28 of the regulations. 1040 a tax form   You cannot claim a charitable or business expense deduction for amounts paid to an organization if both of the following apply. 1040 a tax form The organization conducts lobbying activities on matters of direct financial interest to your business. 1040 a tax form A principal purpose of your contribution is to avoid the rules discussed earlier that prohibit a business deduction for lobbying expenses. 1040 a tax form   If a tax-exempt organization, other than a section 501(c)(3) organization, provides you with a notice on the part of dues that is allocable to nondeductible lobbying and political expenses, you cannot deduct that part of the dues. 1040 a tax form Covered executive branch official. 1040 a tax form   For purposes of this discussion, a covered executive branch official is any of the following. 1040 a tax form The President. 1040 a tax form The Vice President. 1040 a tax form Any officer or employee of the White House Office of the Executive Office of the President and the two most senior level officers of each of the other agencies in the Executive Office. 1040 a tax form Any individual who: Is serving in a position in Level I of the Executive Schedule under section 5312 of title 5, United States Code, Has been designated by the President as having Cabinet-level status, or Is an immediate deputy of an individual listed in item (a) or (b). 1040 a tax form Exceptions to denial of deduction. 1040 a tax form   The general denial of the deduction does not apply to the following. 1040 a tax form Expenses of appearing before, or communicating with, any committee or member of any local council or similar governing body concerning its legislation (local legislation) if the legislation is of direct interest to you or to you and an organization of which you are a member. 1040 a tax form An Indian tribal government is treated as a local council or similar governing body. 1040 a tax form Any in-house expenses for influencing legislation and communicating directly with a covered executive branch official if those expenses for the tax year do not exceed $2,000 (excluding overhead expenses). 1040 a tax form Expenses incurred by taxpayers engaged in the trade or business of lobbying (professional lobbyists) on behalf of another person (but does apply to payments by the other person to the lobbyist for lobbying activities). 1040 a tax form Moving machinery. 1040 a tax form   Generally, the cost of moving machinery from one city to another is a deductible expense. 1040 a tax form So is the cost of moving machinery from one plant to another, or from one part of your plant to another. 1040 a tax form You can deduct the cost of installing the machinery in the new location. 1040 a tax form However, you must capitalize the costs of installing or moving newly purchased machinery. 1040 a tax form Outplacement services. 1040 a tax form   The costs of outplacement services you provide to your employees to help them find new employment, such as career counseling, résumé assistance, skills assessment, etc. 1040 a tax form are deductible. 1040 a tax form   The costs of outplacement services may cover more than one deduction category. 1040 a tax form For example, deduct as a utilities expense the cost of telephone calls made under this service and deduct as rental expense the cost of renting machinery and equipment for this service. 1040 a tax form   For information on whether the value of outplacement services is includable in your employees' income, see Publication 15-B. 1040 a tax form Penalties and fines. 1040 a tax form   Penalties paid for late performance or nonperformance of a contract are generally deductible. 1040 a tax form For instance, you own and operate a construction company. 1040 a tax form Under a contract, you are to finish construction of a building by a certain date. 1040 a tax form Due to construction delays, the building is not completed and ready for occupancy on the date stipulated in the contract. 1040 a tax form You are now required to pay an additional amount for each day that completion is delayed beyond the completion date stipulated in the contract. 1040 a tax form These additional costs are deductible business expenses. 1040 a tax form   On the other hand, penalties or fines paid to any government agency or instrumentality because of a violation of any law are not deductible. 1040 a tax form These fines or penalties include the following amounts. 1040 a tax form Paid because of a conviction for a crime or after a plea of guilty or no contest in a criminal proceeding. 1040 a tax form Paid as a penalty imposed by federal, state, or local law in a civil action, including certain additions to tax and additional amounts and assessable penalties imposed by the Internal Revenue Code. 1040 a tax form Paid in settlement of actual or possible liability for a fine or penalty, whether civil or criminal. 1040 a tax form Forfeited as collateral posted for a proceeding that could result in a fine or penalty. 1040 a tax form   Examples of nondeductible penalties and fines include the following. 1040 a tax form Fines for violating city housing codes. 1040 a tax form Fines paid by truckers for violating state maximum highway weight laws. 1040 a tax form Fines for violating air quality laws. 1040 a tax form Civil penalties for violating federal laws regarding mining safety standards and discharges into navigable waters. 1040 a tax form   A fine or penalty does not include any of the following. 1040 a tax form Legal fees and related expenses to defend yourself in a prosecution or civil action for a violation of the law imposing the fine or civil penalty. 1040 a tax form Court costs or stenographic and printing charges. 1040 a tax form Compensatory damages paid to a government. 1040 a tax form Political contributions. 1040 a tax form   Contributions or gifts paid to political parties or candidates are not deductible. 1040 a tax form In addition, expenses paid or incurred to take part in any political campaign of a candidate for public office are not deductible. 1040 a tax form Indirect political contributions. 1040 a tax form   You cannot deduct indirect political contributions and costs of taking part in political activities as business expenses. 1040 a tax form Examples of nondeductible expenses include the following. 1040 a tax form Advertising in a convention program of a political party, or in any other publication if any of the proceeds from the publication are for, or intended for, the use of a political party or candidate. 1040 a tax form Admission to a dinner or program (including, but not limited to, galas, dances, film presentations, parties, and sporting events) if any of the proceeds from the function are for, or intended for, the use of a political party or candidate. 1040 a tax form Admission to an inaugural ball, gala, parade, concert, or similar event if identified with a political party or candidate. 1040 a tax form Repairs. 1040 a tax form   The cost of repairing or improving property used in your trade or business is either a deductible or capital expense. 1040 a tax form Routine maintenance that keeps your property in a normal efficient operating condition, but that does not materially increase the value or substantially prolong the useful life of the property, is deductible in the year that it is incurred. 1040 a tax form Otherwise, the cost must be capitalized and depreciated. 1040 a tax form See Form 4562 and its instructions for how to compute and claim the depreciation deduction. 1040 a tax form   The cost of repairs includes the costs of labor, supplies, and certain other items. 1040 a tax form The value of your own labor is not deductible. 1040 a tax form Examples of repairs include: Reconditioning floors (but not replacement), Repainting the interior and exterior walls of a building, Cleaning and repairing roofs and gutters, and Fixing plumbing leaks (but not replacement of fixtures). 1040 a tax form Repayments. 1040 a tax form   If you had to repay an amount you included in your income in an earlier year, you may be able to deduct the amount repaid for the year in which you repaid it. 1040 a tax form Or, if the amount you repaid is more than $3,000, you may be able to take a credit against your tax for the year in which you repaid it. 1040 a tax form Type of deduction. 1040 a tax form   The type of deduction you are allowed in the year of repayment depends on the type of income you included in the earlier year. 1040 a tax form For instance, if you repay an amount you previously reported as a capital gain, deduct the repayment as a capital loss on Form 8949. 1040 a tax form If you reported it as self-employment income, deduct it as a business deduction on Schedule C or Schedule C-EZ (Form 1040) or Schedule F (Form 1040). 1040 a tax form   If you reported the amount as wages, unemployment compensation, or other nonbusiness ordinary income, enter it on Schedule A (Form 1040) as a miscellaneous itemized deduction that is subject to the 2% limitation. 1040 a tax form However, if the repayment is over $3,000 and Method 1 (discussed later) applies, deduct it on Schedule A (Form 1040) as a miscellaneous itemized deduction that is not subject to the 2% limitation. 1040 a tax form Repayment—$3,000 or less. 1040 a tax form   If the amount you repaid was $3,000 or less, deduct it from your income in the year you repaid it. 1040 a tax form Repayment—over $3,000. 1040 a tax form   If the amount you repaid was more than $3,000, you can deduct the repayment, as described earlier. 1040 a tax form However, you can instead choose to take a tax credit for the year of repayment if you included the income under a “claim of right. 1040 a tax form ” This means that at the time you included the income, it appeared that you had an unrestricted right to it. 1040 a tax form If you qualify for this choice, figure your tax under both methods and use the method that results in less tax. 1040 a tax form Method 1. 1040 a tax form   Figure your tax for 2013 claiming a deduction for the repaid amount. 1040 a tax form Method 2. 1040 a tax form   Figure your tax for 2013 claiming a credit for the repaid amount. 1040 a tax form Follow these steps. 1040 a tax form Figure your tax for 2013 without deducting the repaid amount. 1040 a tax form Refigure your tax from the earlier year without including in income the amount you repaid in 2013. 1040 a tax form Subtract the tax in (2) from the tax shown on your return for the earlier year. 1040 a tax form This is the amount of your credit. 1040 a tax form Subtract the answer in (3) from the tax for 2013 figured without the deduction (step 1). 1040 a tax form   If Method 1 results in less tax, deduct the amount repaid as discussed earlier under Type of deduction. 1040 a tax form   If Method 2 results in less tax, claim the credit on line 71 of Form 1040, and write “I. 1040 a tax form R. 1040 a tax form C. 1040 a tax form 1341” next to line 71. 1040 a tax form Example. 1040 a tax form For 2012, you filed a return and reported your income on the cash method. 1040 a tax form In 2013, you repaid $5,000 included in your 2012 gross income under a claim of right. 1040 a tax form Your filing status in 2013 and 2012 is single. 1040 a tax form Your income and tax for both years are as follows:   2012  With Income 2012  Without Income Taxable Income $15,000 $10,000 Tax $ 1,819 $ 1,069   2013  Without Deduction 2013  With Deduction Taxable Income $49,950 $44,950 Tax $8,423 $7,173 Your tax under Method 1 is $7,173. 1040 a tax form Your tax under Method 2 is $7,673, figured as follows: Tax previously determined for 2012 $ 1,819 Less: Tax as refigured − 1,069 Decrease in 2012 tax $ 750 Regular tax liability for 2013 $8,423 Less: Decrease in 2012 tax − 750 Refigured tax for 2013 $ 7,673 Because you pay less tax under Method 1, you should take a deduction for the repayment in 2013. 1040 a tax form Repayment does not apply. 1040 a tax form   This discussion does not apply to the following. 1040 a tax form Deductions for bad debts. 1040 a tax form Deductions from sales to customers, such as returns and allowances, and similar items. 1040 a tax form Deductions for legal and other expenses of contesting the repayment. 1040 a tax form Year of deduction (or credit). 1040 a tax form   If you use the cash method of accounting, you can take the deduction (or credit, if applicable) for the tax year in which you actually make the repayment. 1040 a tax form If you use any other accounting method, you can deduct the repayment or claim a credit for it only for the tax year in which it is a proper deduction under your accounting method. 1040 a tax form For example, if you use the accrual method, you are entitled to the deduction or credit in the tax year in which the obligation for the repayment accrues. 1040 a tax form Subscriptions. 1040 a tax form   Subscriptions to professional, technical, and trade journals that deal with your business field are deductible. 1040 a tax form Supplies and materials. 1040 a tax form   Unless you have deducted the cost in any earlier year, you generally can deduct the cost of materials and supplies actually consumed and used during the tax year. 1040 a tax form   If you keep incidental materials and supplies on hand, you can deduct the cost of the incidental materials and supplies you bought during the tax year if all the following requirements are met. 1040 a tax form You do not keep a record of when they are used. 1040 a tax form You do not take an inventory of the amount on hand at the beginning and end of the tax year. 1040 a tax form This method does not distort your income. 1040 a tax form   You can also deduct the cost of books, professional instruments, equipment, etc. 1040 a tax form , if you normally use them within a year. 1040 a tax form However, if the usefulness of these items extends substantially beyond the year they are placed in service, you generally must recover their costs through depreciation. 1040 a tax form For more information regarding depreciation see Publication 946, How To Depreciate Property. 1040 a tax form Utilities. 1040 a tax form   Business expenses for heat, lights, power, telephone service, and water and sewerage are deductible. 1040 a tax form However, any part due to personal use is not deductible. 1040 a tax form Telephone. 1040 a tax form   You cannot deduct the cost of basic local telephone service (including any taxes) for the first telephone line you have in your home, even if you have an office in your home. 1040 a tax form However, charges for business long-distance phone calls on that line, as well as the cost of a second line into your home used exclusively for business, are deductible business expenses. 1040 a tax form Prev  Up  Next   Home   More Online Publications
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The 1040 A Tax Form

1040 a tax form Publication 901 - Main Content Table of Contents Application of Treaties Tax Exemptions Provided by TreatiesPersonal Services Income Professors, Teachers, and Researchers Students and Apprentices Wages and Pensions Paid by a Foreign Government Explanation of TablesTable 1 Table 2 Table 3 Application of Treaties The United States has income tax treaties with a number of foreign countries. 1040 a tax form Under these treaties, residents (not necessarily citizens) of foreign countries are taxed at a reduced rate, or are exempt from U. 1040 a tax form S. 1040 a tax form income taxes on certain items of income they receive from sources within the United States. 1040 a tax form These reduced rates and exemptions vary among countries and specific items of income. 1040 a tax form If there is no treaty between your country and the United States, you must pay tax on the income in the same way and at the same rates shown in the instructions for Form 1040NR. 1040 a tax form Also see Publication 519. 1040 a tax form Many of the individual states of the United States tax the income of their residents. 1040 a tax form Therefore, you should consult the tax authorities of the state in which you live to find out if that state taxes the income of individuals and, if so, whether the tax applies to any of your income. 1040 a tax form Tax treaties reduce the U. 1040 a tax form S. 1040 a tax form taxes of residents of foreign countries. 1040 a tax form With certain exceptions, they do not reduce the U. 1040 a tax form S. 1040 a tax form taxes of U. 1040 a tax form S. 1040 a tax form citizens or residents. 1040 a tax form U. 1040 a tax form S. 1040 a tax form citizens and residents are subject to U. 1040 a tax form S. 1040 a tax form income tax on their worldwide income. 1040 a tax form Treaty provisions generally are reciprocal (apply to both treaty countries); therefore, a U. 1040 a tax form S. 1040 a tax form citizen or resident who receives income from a treaty country may refer to the tables in this publication to see if a tax treaty might affect the tax to be paid to that foreign country. 1040 a tax form Foreign taxing authorities sometimes require certification from the U. 1040 a tax form S. 1040 a tax form Government that an applicant filed an income tax return as a U. 1040 a tax form S. 1040 a tax form citizen or resident, as part of the proof of entitlement to the treaty benefits. 1040 a tax form See Form 8802, Application for United States Residency Certification, to request a certification. 1040 a tax form Disclosure of a treaty-based position that reduces your tax. 1040 a tax form   If you take the position that any U. 1040 a tax form S. 1040 a tax form tax is overruled or otherwise reduced by a U. 1040 a tax form S. 1040 a tax form treaty (a treaty-based position), you generally must disclose that position on Form 8833 and attach it to your return. 1040 a tax form If you are not required to file a return because of your treaty-based position, you must file a return anyway to report your position. 1040 a tax form The filing of Form 8833 does not apply to a reduced rate of withholding tax on noneffectively connected income, such as dividends, interest, rents or royalties, or to a reduced rate of tax on pay received for services performed as an employee, including pensions, annuities, and social security. 1040 a tax form For more information, see Publication 519 and the Form 8833 instructions. 1040 a tax form   If you fail to file Form 8833, you may have to pay a $1,000 penalty. 1040 a tax form Corporations are subject to a $10,000 penalty for each failure. 1040 a tax form Tax Exemptions Provided by Treaties In addition to the tables in the back of this publication, this publication contains discussions of the exemptions from tax and certain other effects of the tax treaties on the following types of income. 1040 a tax form Pay for certain personal services performed in the United States. 1040 a tax form Pay of a professor, teacher, or researcher who teaches or performs research in the United States for a limited time. 1040 a tax form Amounts received for maintenance and studies by a foreign student or apprentice who is here for study or experience. 1040 a tax form Wages, salaries, and pensions paid by a foreign government. 1040 a tax form Personal Services Income Pay for certain personal services performed in the United States is exempt from U. 1040 a tax form S. 1040 a tax form income tax if you are a resident of one of the countries discussed below, if you are in the United States for a limited number of days, and if you meet certain other conditions. 1040 a tax form For this purpose, the word “day” means a day during any part of which you are physically present in the United States. 1040 a tax form Terms defined. 1040 a tax form   Several terms appear in many of the discussions that follow. 1040 a tax form The exact meanings of the terms are determined by the particular tax treaty under discussion; thus, the meanings vary among treaties. 1040 a tax form The definitions that follow are, therefore, general definitions that may not give the exact meaning intended by a particular treaty. 1040 a tax form   The terms fixed base and permanent establishment generally mean a fixed place of business, such as a place of management, a branch, an office, a factory, a warehouse, or a mining site, through which an enterprise carries on its business. 1040 a tax form   The term borne by generally means having ultimate financial accounting responsibility for, or providing the monetary resources for, an expenditure or payment, even if another entity in another location actually made the expenditure or payment. 1040 a tax form Australia Income that residents of Australia receive for performing personal services as independent contractors or self-employed individuals (independent personal services) in the United States during the tax year is exempt from U. 1040 a tax form S. 1040 a tax form income tax if the residents: Are in the United States for no more than 183 days during the tax year, and Do not have a fixed base regularly available to them in the United States for the purpose of performing the services. 1040 a tax form If they have a fixed base available in the United States, they are taxed on the income attributable to the fixed base. 1040 a tax form Pay that residents of Australia receive for labor or personal services performed in the United States as employees (dependent personal services), including services as a director of a company, is exempt from U. 1040 a tax form S. 1040 a tax form income tax if: The residents are in the United States for no more than 183 days during the tax year, The pay is paid by, or on behalf of, an employer or company that is not a resident of the United States, and The pay is not deductible in determining the taxable income of the trade or business of the employer (or company) in the United States. 1040 a tax form These exemptions do not apply to public entertainers (such as theater, motion picture, radio, or television entertainers, musicians, and athletes) from Australia who earn more than $10,000 in gross receipts, including reimbursed expenses, from their entertainment activities in the United States during the tax year. 1040 a tax form Austria Income that residents of Austria receive for personal services as independent contractors or self-employed individuals (independent personal services) in the United States is exempt from U. 1040 a tax form S. 1040 a tax form income tax if they do not have a fixed base regularly available to them in the United States for performing the services. 1040 a tax form If they have a fixed base available in the United States, they are taxed on the income attributable to the fixed base. 1040 a tax form Income that residents of Austria receive for services performed in the United States as employees (dependent personal services) is exempt from U. 1040 a tax form S. 1040 a tax form income tax if the residents meet the following requirements. 1040 a tax form They are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. 1040 a tax form Their income is paid by, or on behalf of, an employer who is not a U. 1040 a tax form S. 1040 a tax form resident. 1040 a tax form Their income is not borne by a permanent establishment or a fixed base that the employer has in the United States. 1040 a tax form These exemptions do not apply to public entertainers (such as theater, motion picture, radio, or television entertainers, musicians, and athletes) from Austria who earn more than $20,000 in gross receipts, including reimbursed expenses, from their entertainment activities in the United States during the tax year. 1040 a tax form Income received by a resident of Austria for services performed as an employee and member of the regular complement of a ship or aircraft operated in international traffic is exempt from U. 1040 a tax form S. 1040 a tax form income tax. 1040 a tax form Bangladesh Income that residents of Bangladesh receive for performing personal services as independent contractors or self-employed individuals (independent personal services) in the United States during the tax year is exempt from U. 1040 a tax form S. 1040 a tax form income tax if the residents: Are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year, or Do not have a fixed base regularly available to them in the United States for the purpose of performing the services. 1040 a tax form If they have a fixed base available in the United States, they are taxed on the income attributable to the fixed base. 1040 a tax form Income that residents of Bangladesh receive for services performed in the United States as employees (dependent personal services) is exempt from U. 1040 a tax form S. 1040 a tax form income tax if the residents meet the following requirements. 1040 a tax form They are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. 1040 a tax form Their income is paid by, or on behalf of, an employer who is not a U. 1040 a tax form S. 1040 a tax form resident. 1040 a tax form Their income is not borne by a permanent establishment or a fixed base that the employer has in the United States. 1040 a tax form These exemptions do not apply to pubic entertainers (such as theater, motion picture, radio, or television entertainers, musicians, and athletes) from Bangladesh who earn more than $10,000 in gross receipts, including reimbursed expenses, from their entertainment activities in the United States during the tax year. 1040 a tax form Regardless of these limits, income of Bangladesh entertainers is exempt from U. 1040 a tax form S. 1040 a tax form income tax if their visit to the United States is wholly or mainly supported by public funds of Bangladesh, its political subdivisions, or local authorities. 1040 a tax form Income received from employment as a member of the regular complement of a ship or an aircraft operated by a Bangladesh enterprise in international traffic is exempt from U. 1040 a tax form S. 1040 a tax form tax. 1040 a tax form If the ship or aircraft is operated by a U. 1040 a tax form S. 1040 a tax form enterprise, the income is subject to U. 1040 a tax form S. 1040 a tax form tax. 1040 a tax form If the resident of Bangladesh is a shareholder in a U. 1040 a tax form S. 1040 a tax form corporation, these exemptions do not apply to directors' fees received as a member of the board of directors of the U. 1040 a tax form S. 1040 a tax form corporation. 1040 a tax form The amount received by the shareholder that is more than the amount paid to a director that is not a shareholder is subject to U. 1040 a tax form S. 1040 a tax form tax at the rate of 15%. 1040 a tax form Barbados Income that residents of Barbados receive for performing personal services as independent contractors or self-employed individuals (independent personal services) in the United States during the tax year is exempt from U. 1040 a tax form S. 1040 a tax form income tax if the residents: Are in the United States for no more than 89 days during the tax year, Earn net income for independent services provided to U. 1040 a tax form S. 1040 a tax form residents that is not more than $5,000 (there is no dollar limit if the contractors are not U. 1040 a tax form S. 1040 a tax form residents), and Do not have a regular base available in the United States for performing the services. 1040 a tax form If they have a regular base available in the United States but otherwise meet the conditions for exemption, they are taxed only on the income attributable to the regular base. 1040 a tax form Income that residents of Barbados receive for personal services performed in the United States as employees (dependent personal services) is exempt from U. 1040 a tax form S. 1040 a tax form tax if the residents meet four requirements. 1040 a tax form They are in the United States for no more than 183 days during the calendar year. 1040 a tax form The income earned in the calendar year in the United States is not more than $5,000. 1040 a tax form Their income is paid by or for an employer who is not a U. 1040 a tax form S. 1040 a tax form resident. 1040 a tax form The income is not borne by a permanent establishment or regular base of the employer in the United States. 1040 a tax form Income of a Barbadian resident from employment as a member of the regular complement of a ship or aircraft operated in international traffic is exempt from U. 1040 a tax form S. 1040 a tax form tax. 1040 a tax form These exemptions do not apply to Barbadian resident public entertainers (such as theater, motion picture, radio, or television artists, musicians, or athletes) who receive gross receipts of more than $250 per day or $4,000 in the tax year, not including reimbursed expenses, from their entertainment activities in the United States. 1040 a tax form However, the exemptions do apply regardless of these limits on gross receipts if the entertainer's visit to the United States is substantially supported by Barbadian public funds or if the entertainer's services are provided to a nonprofit organization. 1040 a tax form Belgium Income that residents of Belgium receive for personal services as independent contractors or self-employed individuals are subject to the provisions of Article 7 (Business Profits) of the treaty. 1040 a tax form Under that provision, business profits are exempt from U. 1040 a tax form S. 1040 a tax form income tax unless the individual has a permanent establishment in the United States. 1040 a tax form If they have a permanent establishment in the United States, they are taxed on the profit attributable to the permanent establishment. 1040 a tax form Income that residents of Belgium receive for services performed in the United States as employees (dependent personal services) is exempt from U. 1040 a tax form S. 1040 a tax form income tax if the residents meet the following requirements. 1040 a tax form They are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. 1040 a tax form Their income is paid by, or on behalf of, an employer who is not a U. 1040 a tax form S. 1040 a tax form resident. 1040 a tax form Their income is not borne by a permanent establishment that the employer has in the United States. 1040 a tax form The exemption does not apply to directors' fees and similar payments received by a resident of Belgium for services performed in the United States as a member of the board of directors of a company that is a resident of the United States. 1040 a tax form Public entertainers (such as theater, motion picture, radio, or television artists, musicians, or athletes) from Belgium who earn more than $20,000 in gross receipts, including reimbursed expenses, from their entertainment activities in the United States during the tax year are subject to U. 1040 a tax form S. 1040 a tax form tax. 1040 a tax form Income received by a resident of Belgium for services performed as an employee and member of the regular complement of a ship or aircraft operated in international traffic is exempt from U. 1040 a tax form S. 1040 a tax form income tax. 1040 a tax form Bulgaria Income that residents of Bulgaria receive for personal services as independent contractors or self-employed individuals is subject to the provisions of Article 7 (Business Profits) of the treaty. 1040 a tax form Under that provision, business profits are exempt from U. 1040 a tax form S. 1040 a tax form income tax unless the individual has a permanent establishment in the United States. 1040 a tax form If they have a permanent establishment in the United States, they are taxed on the profit attributable to the permanent establishment. 1040 a tax form Under Article 5 (Permanent Establishment), you may be considered to provide services through a permanent establishment in the United States even if you do not have a fixed place of business. 1040 a tax form Income that residents of Bulgaria receive for services performed in the United States as employees (dependent personal services) is exempt from U. 1040 a tax form S. 1040 a tax form income tax if the residents meet the following requirements. 1040 a tax form They are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. 1040 a tax form Their income is paid by, or on behalf of, an employer who is not a U. 1040 a tax form S. 1040 a tax form resident. 1040 a tax form Their income is not borne by a permanent establishment that the employer has in the United States. 1040 a tax form The exemption does not apply to directors' fees and similar payments received by a resident of Bulgaria as a member of the board of directors of a U. 1040 a tax form S. 1040 a tax form company. 1040 a tax form Public entertainers (such as theater, motion picture, radio, or television artists, musicians, or athletes) from Bulgaria who earn more than $15,000 in gross receipts, including reimbursed expenses, from their entertainment activities in the United States during the tax year are subject to U. 1040 a tax form S. 1040 a tax form tax. 1040 a tax form Income received by a resident of Bulgaria for services performed as an employee and member of the regular complement of a ship or aircraft operated in international traffic is exempt from U. 1040 a tax form S. 1040 a tax form income tax. 1040 a tax form Canada Income that residents of Canada receive for personal services as independent contractors or self-employed individuals is subject to the provisions of Article VII (Business Profits) of the treaty. 1040 a tax form Under that provision, business profits are exempt from U. 1040 a tax form S. 1040 a tax form income tax unless the individual has a permanent establishment in the United States. 1040 a tax form If they have a permanent establishment in the United States, they are taxed on the profit attributable to the permanent establishment. 1040 a tax form Under Article V (Permanent Establishment), you may be considered to provide services through a permanent establishment in the United States even if you do not have a fixed place of business. 1040 a tax form Income that residents of Canada receive for personal services performed as employees (dependent personal services) in the United States is exempt from U. 1040 a tax form S. 1040 a tax form tax if it is not more than $10,000 for the year. 1040 a tax form If the income is more than $10,000 for the year, it is exempt only if: The residents are present in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year, and The income is not paid by, or on behalf of, a U. 1040 a tax form S. 1040 a tax form resident, and is not borne by a permanent establishment in the United States. 1040 a tax form Public entertainers (such as theater, motion picture, radio, or television artists, musicians, or athletes) from Canada who derive more than $15,000 in gross receipts, including reimbursed expenses, from their entertainment activities in the United States during the calendar year are subject to U. 1040 a tax form S. 1040 a tax form tax. 1040 a tax form However, this article does not apply to athletes participating in team sports in leagues with regularly scheduled games in both Canada and the United States. 1040 a tax form Pay received by a resident of Canada for employment regularly done in more than one country on a ship, aircraft, motor vehicle, or train operated by a Canadian resident is exempt from U. 1040 a tax form S. 1040 a tax form tax. 1040 a tax form China, People's Republic of Income that residents of the People's Republic of China receive for personal services as independent contractors or self-employed individuals (independent personal services) that they perform during the tax year in the United States is exempt from U. 1040 a tax form S. 1040 a tax form income tax if the residents: Are present in the United States for no more than 183 days in the calendar year, and Do not have a fixed base regularly available in the United States for performing the services. 1040 a tax form If they have a fixed base available in the United States, they are taxable on the income attributable to the fixed base. 1040 a tax form Pay received by residents of the People's Republic of China for services performed as employees (dependent personal services) in the United States is exempt from U. 1040 a tax form S. 1040 a tax form tax if: The residents are present in the United States for no more than 183 days in the calendar year, The pay is paid by or for an employer who is not a U. 1040 a tax form S. 1040 a tax form resident, and The pay is not borne by a permanent establishment or fixed base that the employer has in the United States. 1040 a tax form These exemptions do not apply to directors' fees for service on the board of directors of a U. 1040 a tax form S. 1040 a tax form corporation. 1040 a tax form These exemptions generally do not apply to income received as a public entertainer (such as a theater, motion picture, radio, or television artist, musician, or athlete). 1040 a tax form However, income of athletes or public entertainers from China participating in a cultural exchange program agreed upon by the U. 1040 a tax form S. 1040 a tax form and Chinese governments is exempt from U. 1040 a tax form S. 1040 a tax form tax. 1040 a tax form Commonwealth of Independent States Income that residents of a C. 1040 a tax form I. 1040 a tax form S. 1040 a tax form member receive for performing personal services in the United States is exempt from U. 1040 a tax form S. 1040 a tax form income tax if those residents are in the United States for no more than 183 days during the tax year. 1040 a tax form Pay received by an employee who is a member of the regular complement of a ship or aircraft operated in international traffic by a C. 1040 a tax form I. 1040 a tax form S. 1040 a tax form member or a resident of a C. 1040 a tax form I. 1040 a tax form S. 1040 a tax form member is exempt from U. 1040 a tax form S. 1040 a tax form tax. 1040 a tax form Cyprus Income that residents of Cyprus receive for performing personal services as independent contractors or self-employed individuals (independent personal services) in the United States during the tax year is exempt from U. 1040 a tax form S. 1040 a tax form income tax if the residents: Are present in the United States for less than 183 days in the tax year, and Do not have a fixed base regularly available to them in the United States for performing the services. 1040 a tax form If they have a fixed base available in the United States, they are taxable on the income attributable to the fixed base. 1040 a tax form Pay received by residents of Cyprus from services performed as employees (dependent personal services), including services as an officer of a corporation, is exempt from U. 1040 a tax form S. 1040 a tax form income tax if: The residents are in the United States for less than 183 days during the tax year, The pay is paid by or for an employer who is not a U. 1040 a tax form S. 1040 a tax form resident, and The pay is not borne by a permanent establishment, fixed base, or trade or business that the employer has in the United States. 1040 a tax form Pay received by a Cyprus resident for performing personal services as an employee and member of the regular complement of a ship or aircraft operated in international traffic by a resident of Cyprus is exempt from U. 1040 a tax form S. 1040 a tax form tax. 1040 a tax form These exemptions do not apply to Cyprus resident public entertainers (theater, motion picture, radio, or television artists, musicians, or athletes) who receive gross receipts of more than $500 per day or $5,000 for the tax year, not including reimbursed expenses, from their entertainment activities in the United States. 1040 a tax form Directors' fees received by residents of Cyprus for service on the board of directors of a U. 1040 a tax form S. 1040 a tax form corporation are exempt from U. 1040 a tax form S. 1040 a tax form income tax to the extent of a reasonable fixed amount payable to all directors for each day of attendance at directors' meetings held in the United States. 1040 a tax form Czech Republic Income that residents of the Czech Republic receive for performing personal services as independent contractors or self-employed individuals (independent personal services) in the United States is exempt from U. 1040 a tax form S. 1040 a tax form income tax if the residents: Are present in the United States for no more than 183 days in any 12-month period, and Do not have a fixed base regularly available to them in the United States for performing the services. 1040 a tax form If they have a fixed base available, they are taxed only on income attributable to the fixed base. 1040 a tax form Income that residents of the Czech Republic receive for employment in the United States (dependent personal services) is exempt from U. 1040 a tax form S. 1040 a tax form income tax if the following three requirements are met. 1040 a tax form The resident is present in the United States for no more than 183 days in any 12-month period. 1040 a tax form The income is paid by, or on behalf of, an employer who is not a U. 1040 a tax form S. 1040 a tax form resident. 1040 a tax form The income is not borne by a permanent establishment or a fixed base that the employer has in the United States. 1040 a tax form These exemptions do not apply to income residents of the Czech Republic receive as public entertainers (such as theater, motion picture, radio, or television artists, or musicians) or sportsmen if their gross receipts, including reimbursed expenses, are more than $20,000 during the tax year. 1040 a tax form Regardless of these limits, income of Czech entertainers and sportsmen is exempt from U. 1040 a tax form S. 1040 a tax form income tax if their visit to the United States is substantially supported by public funds of the Czech Republic, its political subdivisions, or local authorities, or the visit is made pursuant to a specific arrangement between the United States and the Czech Republic. 1040 a tax form These exemptions do not apply to directors' fees and similar payments received by a resident of the Czech Republic as a member of the board of directors of a company that is a resident of the United States. 1040 a tax form Income from employment as a member of the regular complement of a ship or aircraft operated by a Czech enterprise in international traffic is exempt from U. 1040 a tax form S. 1040 a tax form income tax. 1040 a tax form If the ship or aircraft is operated by a U. 1040 a tax form S. 1040 a tax form enterprise, the income is subject to U. 1040 a tax form S. 1040 a tax form tax. 1040 a tax form Denmark Income that residents of Denmark receive for personal services as independent contractors or self-employed individuals (independent personal services) in the United States is exempt from U. 1040 a tax form S. 1040 a tax form income tax if they do not have a fixed base regularly available to them in the United States for performing the services. 1040 a tax form If they have a fixed base available in the United States, they are taxed on the income attributable to the fixed base. 1040 a tax form Income that residents of Denmark receive for services performed in the United States as employees (dependent personal services) is exempt from U. 1040 a tax form S. 1040 a tax form income tax if the residents meet the following requirements. 1040 a tax form They are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. 1040 a tax form Their income is paid by, or on behalf of, an employer who is not a U. 1040 a tax form S. 1040 a tax form resident. 1040 a tax form Their income is not borne by a permanent establishment or a fixed base that the employer has in the United States. 1040 a tax form These exemptions do not apply to directors' fees and similar payments received by a resident of Denmark as a member of the board of directors of a company that is a resident of the United States. 1040 a tax form These exemptions do not apply to public entertainers (such as theater, motion picture, radio, or television artists, musicians, and athletes) from Denmark who earn more than $20,000 in gross receipts, including reimbursed expenses, from their entertainment activities in the United States during the tax year. 1040 a tax form Income received by a resident of Denmark for services performed as an employee and member of the regular complement of a ship or aircraft operated in international traffic is exempt from U. 1040 a tax form S. 1040 a tax form income tax. 1040 a tax form Egypt Income that residents of Egypt receive for performing personal services as independent contractors or as self-employed individuals (independent personal services) in the United States during the tax year is exempt from U. 1040 a tax form S. 1040 a tax form income tax if they are in the United States for no more than 89 days during the tax year. 1040 a tax form Income that residents of Egypt receive for labor or personal services performed in the United States as employees (dependent personal services), including income for services performed by an officer of a corporation or company, is exempt from U. 1040 a tax form S. 1040 a tax form income tax if the residents meet four requirements. 1040 a tax form They are in the United States for no more than 89 days during the tax year. 1040 a tax form They are employees of a resident of, or a permanent establishment in, Egypt. 1040 a tax form Their income is not borne by a permanent establishment that the employer has in the United States. 1040 a tax form Their income is subject to Egyptian tax. 1040 a tax form This exemption does not apply to pay received by a resident of Egypt who is an employee and member of the regular complement of a ship or an aircraft operated in international traffic by a resident of the United States. 1040 a tax form These exemptions do not apply to Egyptian resident public entertainers (theater, motion picture, radio, or television artists, musicians, or athletes), who earn income for services as public entertainers if the gross amount of the income is more than $400 for each day they are in the United States performing the services. 1040 a tax form Estonia Income that residents of Estonia receive for performing personal services as independent contractors or self-employed individuals (independent personal services) in the United States is exempt from U. 1040 a tax form S. 1040 a tax form income tax if the residents: Are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year, and Do not have a fixed base regularly available to them in the United States for performing the services. 1040 a tax form If they have a fixed base available, they are taxed on the income attributable to the fixed base. 1040 a tax form Income that residents of Estonia receive for services performed in the United States as employees (dependent personal services) is exempt from U. 1040 a tax form S. 1040 a tax form income tax if the following requirements are met. 1040 a tax form The resident is in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. 1040 a tax form The income is paid by, or on behalf of, an employer who is not a U. 1040 a tax form S. 1040 a tax form resident. 1040 a tax form The income is not borne by a permanent establishment or a fixed base that the employer has in the United States. 1040 a tax form These exemptions do not apply to directors' fees and similar payments received by a resident of Estonia as a member of the board of directors or similar body of a company that is a U. 1040 a tax form S. 1040 a tax form resident. 1040 a tax form Pay received for employment as a member of the regular complement of a ship or an aircraft operated in international traffic by a United States enterprise is subject to U. 1040 a tax form S. 1040 a tax form tax. 1040 a tax form These exemptions do not apply to income residents of Estonia receive as public entertainers (such as theater, motion picture, radio, or television artists, or musicians) or sportsmen if their gross receipts, including reimbursed expenses, are more than $20,000 for their personal activities in the United States during the tax year. 1040 a tax form Regardless of these limits, income of Estonian entertainers or athletes is exempt from U. 1040 a tax form S. 1040 a tax form income tax if their visit to the United States is wholly or mainly supported by public funds of Estonia, its political subdivisions, or local authorities. 1040 a tax form Finland Income that residents of Finland receive for performing personal services as independent contractors or self-employed individuals (independent personal services) in the United States is exempt from U. 1040 a tax form S. 1040 a tax form income tax if they do not have a fixed base regularly available to them in the United States for performing the services. 1040 a tax form If they have a fixed base available in the United States, they are taxed on the income attributable to the fixed base. 1040 a tax form Income that residents of Finland receive for labor or personal services performed in the United States as employees (dependent personal services) is exempt from U. 1040 a tax form S. 1040 a tax form income tax if the residents meet three requirements. 1040 a tax form They are in the United States for no more than 183 days during any 12-month period. 1040 a tax form Their income is paid by, or on behalf of, an employer who is not a resident of the United States. 1040 a tax form Their income is not borne by a permanent establishment, fixed base, or trade or business that the employer has in the United States. 1040 a tax form The exemption does not apply to pay received by a resident of Finland who is an employee and member of the regular complement of a ship or aircraft operated in international traffic by a resident of the United States. 1040 a tax form These exemptions do not apply to income residents of Finland receive as public entertainers or sportsmen if the gross income, including reimbursed expenses, is more than $20,000 for their personal activities in the United States during the calendar year. 1040 a tax form France Income that residents of France receive for performing personal services as independent contractors or self-employed individuals (independent personal services) in the United States is exempt from U. 1040 a tax form S. 1040 a tax form income tax if they do not have a fixed base regularly available to them in the United States for performing the services. 1040 a tax form If they have a fixed base available in the United States, they are taxed on the income attributable to the fixed base. 1040 a tax form Income that residents of France receive for labor or personal services performed in the United States as employees (dependent personal services) is exempt from U. 1040 a tax form S. 1040 a tax form income tax if the residents meet three requirements. 1040 a tax form They are in the United States for no more than 183 days in any 12-month period. 1040 a tax form Their income is paid by, or on behalf of, an employer who is not a resident of the United States. 1040 a tax form Their income is not borne by a permanent establishment or a fixed base that the employer has in the United States. 1040 a tax form Income for services performed by a resident of France as an employee and member of the regular complement of a ship or an aircraft operated in international traffic is exempt from tax in the United States. 1040 a tax form These exemptions do not apply to public entertainers (such as theater, motion picture, radio, or television artists, or musicians), or sportsmen from France who earn more than $10,000 in gross receipts, including reimbursed expenses, from their entertainment activities in the United States during the tax year. 1040 a tax form Regardless of these limits, income of French entertainers or sportsmen is exempt from U. 1040 a tax form S. 1040 a tax form tax if their visit is principally supported by public funds of France. 1040 a tax form These exemptions do not apply to directors' fees and similar payments received by a resident of France as a member of the board of directors of a company that is a resident of the United States. 1040 a tax form Germany Income that residents of Germany receive for personal services as independent contractors or self-employed individuals are subject to the provisions of Article 7 (Business Profits) of the treaty. 1040 a tax form Under that provision, business profits are exempt from U. 1040 a tax form S. 1040 a tax form income tax unless the individual has a permanent establishment in the United States. 1040 a tax form If they have a permanent establishment in the United States, they are taxed on the profit attributable to the permanent establishment. 1040 a tax form Income that residents of Germany receive for labor or personal services performed in the United States as employees (dependent personal services) is exempt from U. 1040 a tax form S. 1040 a tax form tax if the residents meet three requirements. 1040 a tax form They are in the United States for no more than 183 days during the calendar year. 1040 a tax form The income is paid by, or on behalf of, an employer who is not a resident of the United States. 1040 a tax form The income is not borne by a permanent establishment that the employer has in the United States. 1040 a tax form Pay received by a resident of Germany for services performed as an employee and member of the regular complement of a ship or aircraft operated in international traffic is exempt from U. 1040 a tax form S. 1040 a tax form tax. 1040 a tax form The exemption does not apply to directors' fees and other similar payments received by a resident of Germany for services performed in the United States as a member of the board of directors of a company resident in the United States. 1040 a tax form Income residents of Germany receive as public entertainers (such as theater, motion picture, radio, or television artists, or musicians) or athletes is subject to U. 1040 a tax form S. 1040 a tax form tax if their gross receipts, including reimbursed expenses, from their entertainment activities in the United States are more than $20,000 during the calendar year. 1040 a tax form Income of German entertainers or athletes is exempt from U. 1040 a tax form S. 1040 a tax form tax if their visit to the United States is substantially supported by public funds of Germany, its political subdivisions, or local authorities. 1040 a tax form Greece Income that residents of Greece receive for labor or personal services (including practicing liberal and artistic professions) is exempt from U. 1040 a tax form S. 1040 a tax form income tax if they are in the United States for no more than 183 days during the tax year and the pay is not more than $10,000. 1040 a tax form The pay, regardless of amount, is exempt from U. 1040 a tax form S. 1040 a tax form income tax if it is for labor or personal services performed as employees of, or under contract with, a resident of Greece or a Greek corporation or other entity of Greece, and if the residents are in the United States for no more than 183 days during the tax year. 1040 a tax form Hungary Income that residents of Hungary receive for performing personal services as independent contractors or self-employed individuals (independent personal services) in the United States during the tax year is exempt from U. 1040 a tax form S. 1040 a tax form tax if the residents: Are in the United States for no more than 183 days during the tax year, and Do not have a fixed base regularly available in the United States. 1040 a tax form If they have a fixed base available in the United States, they are taxed on the income attributable to the fixed base. 1040 a tax form Income that residents of Hungary receive for labor or personal services performed in the United States as employees (dependent personal services) is exempt from U. 1040 a tax form S. 1040 a tax form income tax if the residents meet three requirements. 1040 a tax form They are in the United States for no more than 183 days during the tax year. 1040 a tax form Their income is paid by or on behalf of an employer who is not a resident of the United States. 1040 a tax form Their income is not borne by a permanent establishment or a fixed base that the employer has in the United States. 1040 a tax form Pay received by an employee who is a member of the regular complement of a ship or aircraft operated by a Hungarian enterprise in international traffic is exempt from U. 1040 a tax form S. 1040 a tax form tax. 1040 a tax form If the ship or aircraft is operated by a U. 1040 a tax form S. 1040 a tax form enterprise, the pay is subject to U. 1040 a tax form S. 1040 a tax form tax. 1040 a tax form Iceland Income that residents of Iceland receive for personal services as independent contractors or self-employed individuals is subject to the provisions of Article 7 (Business Profits) of the treaty. 1040 a tax form Under that provision, business profits are exempt from U. 1040 a tax form S. 1040 a tax form income tax unless the individual has a permanent establishment in the United States. 1040 a tax form If they have a permanent establishment in the United States, they are taxed on the profit attributable to the permanent establishment. 1040 a tax form Income that residents of Iceland receive for services performed in the United States as employees (dependent personal services) is exempt from U. 1040 a tax form S. 1040 a tax form income tax if the residents meet the following requirements. 1040 a tax form They are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. 1040 a tax form Their income is paid by, or on behalf of, an employer who is not a U. 1040 a tax form S. 1040 a tax form resident. 1040 a tax form Their income is not borne by a permanent establishment that the employer has in the United States. 1040 a tax form The exemption does not apply to directors' fees and similar payments received by a resident of Iceland as a member of the board of directors of a U. 1040 a tax form S. 1040 a tax form company. 1040 a tax form Public entertainers (such as theater, motion picture, radio, or television artists, musicians, or athletes) from Iceland who earn more than $20,000 in gross receipts, including reimbursed expenses, from their entertainment activities in the United States during the tax year are subject to U. 1040 a tax form S. 1040 a tax form tax. 1040 a tax form Income received by a resident of Iceland for services performed as an employee and member of the regular complement of a ship or aircraft operated in international traffic is exempt from U. 1040 a tax form S. 1040 a tax form income tax. 1040 a tax form India Income that residents of India receive for performing personal services in the United States during the tax year as independent contractors or self-employed individuals (independent personal services) is exempt from U. 1040 a tax form S. 1040 a tax form income tax if the residents: Are present in the United States for no more than 89 days during the tax year, and Do not have a fixed base regularly available to them in the United States for performing the services. 1040 a tax form If they have a fixed base available, they are taxed only on income attributable to the fixed base. 1040 a tax form Income that residents of India receive for personal services performed in the United States as employees (dependent personal services) is exempt from U. 1040 a tax form S. 1040 a tax form income tax if the residents meet three requirements. 1040 a tax form They are present in the United States for no more than 183 days during the tax year. 1040 a tax form The income is paid by, or on behalf of, an employer who is not a resident of the United States. 1040 a tax form The income is not borne by a permanent establishment, fixed base, or trade or business the employer has in the United States. 1040 a tax form The exemption does not apply to pay received by a resident of India for services performed as an employee aboard a ship or aircraft operated in international traffic by a U. 1040 a tax form S. 1040 a tax form enterprise. 1040 a tax form These exemptions do not apply to directors' fees and similar payments received by an Indian resident as a member of the board of directors of a company that is a U. 1040 a tax form S. 1040 a tax form resident. 1040 a tax form These exemptions do not apply to income residents of India receive as public entertainers (such as theater, motion picture, radio, or television artists, or musicians) or athletes if their net income is more than $1,500 during the tax year for their entertainment activities in the United States. 1040 a tax form Regardless of this limit, the income of Indian entertainers and athletes is exempt from U. 1040 a tax form S. 1040 a tax form tax if their visit to the United States is wholly or substantially supported from the public funds of the Indian Government, its political subdivisions, or local authorities. 1040 a tax form Indonesia Income that residents of Indonesia receive for performing personal services as individual contractors or self-employed individuals (independent personal services) in the United States during the tax year is exempt from U. 1040 a tax form S. 1040 a tax form income tax if the residents: Are present in the United States for no more than 119 days during any consecutive 12-month period, and Do not have a fixed base regularly available to them in the United States for performing the services. 1040 a tax form If they have a fixed base available, they are taxed only on the income attributable to the fixed base. 1040 a tax form Income that residents of Indonesia receive for personal services performed in the United States as employees (dependent personal services) is exempt from U. 1040 a tax form S. 1040 a tax form income tax if the residents meet three requirements. 1040 a tax form They are present in the United States no more than 119 days during any consecutive 12-month period. 1040 a tax form The income is paid by, or on behalf of, an employer who is not a resident of the United States. 1040 a tax form The income is not borne or reimbursed by a permanent establishment the employer has in the United States. 1040 a tax form Pay received by an individual for services performed as an employee aboard a ship or aircraft operated by an Indonesian resident in international traffic is exempt from U. 1040 a tax form S. 1040 a tax form tax if the individual is a member of the regular complement of the ship or aircraft. 1040 a tax form These exemptions do not apply to income residents of Indonesia receive as public entertainers (such as theater, motion picture, radio, or television artists, or musicians) or athletes if their gross receipts, including reimbursed expenses, are more than $2,000 during any consecutive 12-month period. 1040 a tax form Regardless of these limits, income of Indonesian entertainers and athletes is exempt from U. 1040 a tax form S. 1040 a tax form tax if their visit to the United States is substantially supported or sponsored by the Indonesian Government and the Indonesian competent authority certifies that the entertainers or athletes qualify for this exemption. 1040 a tax form Ireland Income that residents of Ireland receive for personal services as independent contractors or self-employed individuals (independent personal services) in the United States is exempt from U. 1040 a tax form S. 1040 a tax form income tax if they do not have a fixed base regularly available to them in the United States for performing the services. 1040 a tax form If they have a fixed base available in the United States, they are taxed on the income attributable to the fixed base. 1040 a tax form Income that residents of Ireland receive for services performed in the United States as employees (dependent personal services) is exempt from U. 1040 a tax form S. 1040 a tax form income tax if the residents meet the following requirements. 1040 a tax form They are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. 1040 a tax form Their income is paid by, or on behalf of, an employer who is not a U. 1040 a tax form S. 1040 a tax form resident. 1040 a tax form Their income is not borne by a permanent establishment or a fixed base that the employer has in the United States. 1040 a tax form These exemptions do not apply to directors' fees and similar payments received by a resident of Ireland as a member of the board of directors of a company that is a resident of the United States. 1040 a tax form However, amounts received for attending meetings in Ireland are not subject to U. 1040 a tax form S. 1040 a tax form income tax. 1040 a tax form Income received by a resident of Ireland for services performed as an employee and member of the regular complement of a ship or aircraft operated in international traffic is exempt from U. 1040 a tax form S. 1040 a tax form income tax. 1040 a tax form These exemptions do not apply to public entertainers (such as theater, motion picture, radio, or television entertainers, musicians, and athletes) from Ireland who earn more than $20,000 in gross receipts, including reimbursed expenses, from their entertainment activities in the United States during the tax year. 1040 a tax form Israel Income that residents of Israel receive for performing personal services as independent contractors or as self-employed individuals (independent personal services) in the United States during the tax year is exempt from U. 1040 a tax form S. 1040 a tax form income tax if they are in the United States for no more than 182 days during the tax year. 1040 a tax form Income that residents of Israel receive for labor or personal services performed in the United States as employees (dependent personal services), including income for services performed by an officer of a corporation or company, is exempt from U. 1040 a tax form S. 1040 a tax form income tax if the residents meet four requirements. 1040 a tax form They are in the United States for no more than 182 days during the tax year. 1040 a tax form They are employees of a resident of, or a permanent establishment in, Israel. 1040 a tax form Their income is not borne by a permanent establishment that the employer has in the United States. 1040 a tax form Their income is subject to Israeli tax. 1040 a tax form The exemption does not apply to pay received by an employee for labor or personal services performed as a member of the regular complement of a ship or an aircraft operated in international traffic by a U. 1040 a tax form S. 1040 a tax form resident. 1040 a tax form These exemptions do not apply to income that residents of Israel receive as public entertainers (such as theater, motion picture, radio, or television artists, musicians, or athletes), if the gross amount of the income is more than $400 for each day they are in the United States performing the services. 1040 a tax form Italy Income that residents of Italy receive for personal services as independent contractors or self-employed individuals (independent personal services) in the United States is exempt from U. 1040 a tax form S. 1040 a tax form income tax if they do not have a fixed base regularly available to them in the United States for performing the services. 1040 a tax form If they have a fixed base available in the United States, they are taxed on the income attributable to the fixed base. 1040 a tax form Income that residents of Italy receive for labor or personal services performed in the United States as employees (dependent personal services) is exempt from U. 1040 a tax form S. 1040 a tax form income tax if the following requirements are met. 1040 a tax form The residents are in the United States for no more than 183 days during the tax year. 1040 a tax form The income is paid by, or on behalf of, an employer who is not a resident of the United States. 1040 a tax form The income is not borne by a permanent establishment or a fixed base that the employer has in the United States. 1040 a tax form These exemptions do not apply to directors' fees and similar payments received by a resident of Italy for services performed in the United States as a member of the board of directors of a company that is a U. 1040 a tax form S. 1040 a tax form resident. 1040 a tax form Pay received for employment regularly exercised aboard a ship or aircraft operated by a U. 1040 a tax form S. 1040 a tax form enterprise is subject to U. 1040 a tax form S. 1040 a tax form tax. 1040 a tax form These exemptions do not apply to income residents of Italy receive as public entertainers (such as theater, motion picture, radio, or television artists, musicians, or athletes) if they are present in the United States for more than 90 days during the tax year or their gross receipts, including reimbursed expenses, are more than $20,000 during the tax year for their entertainment activities in the United States. 1040 a tax form Jamaica Income that residents of Jamaica receive for the performance of personal services as independent contractors or self-employed individuals (independent personal services) in the United States during the tax year is exempt from U. 1040 a tax form S. 1040 a tax form income tax if the residents: Are in the United States for no more than 89 days during the tax year, Do not have a fixed base regularly available to them in the United States for performing their services, and Earn net income for those services that is not more than $5,000 during the tax year if the income is from a U. 1040 a tax form S. 1040 a tax form contractor. 1040 a tax form If they have a fixed base available in the United States, they are taxed only on the income that is attributable to the fixed base. 1040 a tax form There is no dollar limit for condition (3) if the contractor is from a country other than the United States. 1040 a tax form Income that residents of Jamaica receive for personal services performed in the United States as employees (dependent personal services) is exempt from U. 1040 a tax form S. 1040 a tax form income tax if the residents meet four requirements. 1040 a tax form They are in the United States for no more than 183 days during the tax year. 1040 a tax form Their income is paid by or for an employer who is not a resident of the United States. 1040 a tax form Their income is not borne by a permanent establishment or a fixed base that the employer has in the United States. 1040 a tax form Their net income received for the services is not more than $5,000 during the tax year. 1040 a tax form Pay received from employment as a member of the regular complement of a ship or an aircraft operated in international traffic by a Jamaican enterprise is exempt from U. 1040 a tax form S. 1040 a tax form tax. 1040 a tax form If the ship or aircraft is operated by a U. 1040 a tax form S. 1040 a tax form enterprise, the pay is subject to U. 1040 a tax form S. 1040 a tax form tax. 1040 a tax form These exemptions do not apply to income that residents of Jamaica receive for performing services in the United States as entertainers, such as theater, motion picture, radio, or television artists, musicians, or athletes, if the gross receipts (excluding reimbursements for expenses) from the services are more than $400 a day or $5,000 for the tax year. 1040 a tax form Directors' fees received by residents of Jamaica for services performed in the United States as members of boards of directors of U. 1040 a tax form S. 1040 a tax form corporations are exempt from U. 1040 a tax form S. 1040 a tax form tax if the fees (excluding reimbursed expenses) are not more than $400 per day for each day the directors are present in the United States to perform the services. 1040 a tax form Japan Income that residents of Japan receive for personal services as independent contractors or self-employed individuals is subject to the provisions of Article 7 (business profits) of the treaty. 1040 a tax form Under that provision, business profits are exempt from U. 1040 a tax form S. 1040 a tax form income tax unless the individual has a permanent establishment in the United States. 1040 a tax form If they have a permanent establishment in the United States, they are taxed on the profits attributable to the permanent establishment. 1040 a tax form Income that residents of Japan receive for services performed in the United States as employees (dependent personal services) is exempt from U. 1040 a tax form S. 1040 a tax form income tax if the residents meet the following requirements. 1040 a tax form They are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. 1040 a tax form Their income is paid by, or on behalf of, an employer who is not a U. 1040 a tax form S. 1040 a tax form resident. 1040 a tax form Their income is not borne by a permanent establishment that the employer has in the United States. 1040 a tax form The exemption does not apply to directors' fees and similar payments received by a resident of Japan for services performed as a member of the board of directors of a company that is a resident of the United States. 1040 a tax form The exemption does not apply to a resident of Japan who performs services as an employee aboard a ship or an aircraft operated in international traffic by a U. 1040 a tax form S. 1040 a tax form resident. 1040 a tax form Public entertainers (such as theater, motion picture, radio, or television artists, musicians, or athletes) from Japan who earn more than $10,000 in gross receipts, including reimbursed expenses, from their entertainment activities in the United States during the tax year are subject to U. 1040 a tax form S. 1040 a tax form tax. 1040 a tax form Kazakhstan Income that residents of Kazakhstan receive for performing personal services as independent contractors or self-employed individuals (independent personal services) in the United States is exempt from U. 1040 a tax form S. 1040 a tax form income tax if: The residents are in the United States for no more than 183 days in any consecutive 12-month period, and The income is not attributable to a fixed base in the United States which is regularly available to the residents. 1040 a tax form If the residents have a fixed base available, they are taxed only on the income attributable to the fixed base. 1040 a tax form Income that residents of Kazakhstan receive for employment in the United States (dependent personal services) is exempt from U. 1040 a tax form S. 1040 a tax form income tax if the following three requirements are met. 1040 a tax form The resident is in the United States for no more than 183 days in any 12-month period. 1040 a tax form The income is paid by, or on behalf of, an employer who is not a resident of the United States. 1040 a tax form The income is not borne by a permanent establishment or a fixed base that the employer has in the United States. 1040 a tax form Income derived by a resident of Kazakhstan from employment as a member of the regular complement of a ship or aircraft operated in international traffic is exempt from U. 1040 a tax form S. 1040 a tax form tax. 1040 a tax form These exemptions do not apply to directors' fees and similar payments received by a resident of Kazakhstan as a member of the board of directors or similar body of a company that is a U. 1040 a tax form S. 1040 a tax form resident. 1040 a tax form Korea, South Income that residents of South Korea receive for performing personal services as independent contractors or self-employed individuals (independent personal services) in the United States during the tax year is exempt from U. 1040 a tax form S. 1040 a tax form tax if the residents: Are in the United States for no more than 182 days during the tax year, Earn income for those services that is not more than $3,000 during the tax year, and Do not maintain a fixed base in the United States for more than 182 days during the tax year. 1040 a tax form If they maintain a fixed base in the United States for more than 182 days, they are taxed on the income attributable to the fixed base. 1040 a tax form Income that residents of Korea receive for labor or personal services performed in the United States as employees (dependent personal services), including pay for services performed as an officer of a corporation, is exempt from U. 1040 a tax form S. 1040 a tax form tax if the residents meet four requirements. 1040 a tax form They are in the United States for no more than 182 days during the tax year. 1040 a tax form They are employees of a resident of Korea or of a permanent establishment maintained in Korea. 1040 a tax form Their compensation is not borne by a permanent establishment that the employer has in the United States. 1040 a tax form Their income for those services is not more than $3,000. 1040 a tax form Pay received by employees who are members of the regular complement of a ship or aircraft operated by a resident of Korea in international traffic is exempt. 1040 a tax form Latvia Income that residents of Latvia receive for performing personal services as independent contractors or self-employed individuals (independent personal services) in the United States is exempt from U. 1040 a tax form S. 1040 a tax form income tax if the residents: Are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year, and Do not have a fixed base regularly available to them in the United States for performing the services. 1040 a tax form If they have a fixed base available, they are taxed only on the income attributable to the fixed base. 1040 a tax form Income that residents of Latvia receive for services performed in the United States as employees (dependent personal services) is exempt from U. 1040 a tax form S. 1040 a tax form income tax if the following requirements are met. 1040 a tax form The resident is in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. 1040 a tax form The income is paid by, or on behalf of, an employer who is not a U. 1040 a tax form S. 1040 a tax form resident. 1040 a tax form The income is not borne by a permanent establishment or a fixed base that the employer has in the United States. 1040 a tax form The exemption does not apply to pay received for employment as a member of the regular complement of a ship or an aircraft operated in international traffic by a U. 1040 a tax form S. 1040 a tax form enterprise. 1040 a tax form The exemptions do not apply to directors' fees and similar payments received by a resident of Latvia as a member of the board of directors or similar body of a company that is a U. 1040 a tax form S. 1040 a tax form resident. 1040 a tax form The exemptions do not apply to income residents of Latvia receive as public entertainers (such as theater, motion picture, radio, or television artists, or musicians) or sportsmen if their gross receipts, including reimbursed expenses, are more than $20,000 for their personal activities in the United States during the tax year. 1040 a tax form Regardless of these limits, income of Latvian entertainers or athletes is exempt from U. 1040 a tax form S. 1040 a tax form income tax if their visit to the United States is wholly or mainly supported by public funds of Latvia, its political subdivisions, or local authorities. 1040 a tax form Lithuania Income that residents of Lithuania receive for performing personal services as independent contractors or self-employed individuals (independent personal services) in the United States is exempt from U. 1040 a tax form S. 1040 a tax form income tax if the residents: Are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year, and Do not have a fixed base regularly available to them in the United States for performing the services. 1040 a tax form If they have a fixed base available, they are taxed only on the income attributable to the fixed base. 1040 a tax form Income that residents of Lithuania receive for services performed in the United States as employees (dependent personal services) is exempt from U. 1040 a tax form S. 1040 a tax form income tax if the following requirements are met. 1040 a tax form The resident is in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. 1040 a tax form The income is paid by, or on behalf of, an employer who is not a U. 1040 a tax form S. 1040 a tax form resident. 1040 a tax form The income is not borne by a permanent establishment or a fixed base that the employer has in the United States. 1040 a tax form The exemption does not apply to pay received for employment as a member of the regular complement of a ship or an aircraft operated in international traffic by a U. 1040 a tax form S. 1040 a tax form enterprise. 1040 a tax form The exemptions do not apply to directors' fees and similar payments received by a resident of Lithuania as a member of the board of directors or similar body of a company that is a U. 1040 a tax form S. 1040 a tax form resident. 1040 a tax form The exemptions do not apply to income residents of Lithuania receive as public entertainers (such as theater, motion picture, radio, or television artists, or musicians) or sportsmen if their gross receipts, including reimbursed expenses, are more than $20,000 for their personal activities in the United States during the tax year. 1040 a tax form Regardless of these limits, income of Lithuanian entertainers or athletes is exempt from U. 1040 a tax form S. 1040 a tax form income tax if their visit to the United States is wholly or mainly supported by public funds of Lithuania, its political subdivisions, or local authorities. 1040 a tax form Luxembourg Income that residents of Luxembourg receive for personal services as independent contractors or self-employed individuals (independent personal services) in the United States is exempt from U. 1040 a tax form S. 1040 a tax form income tax if they do not have a fixed base regularly available to them in the United States for performing the services. 1040 a tax form If they have a fixed base available in the United States, they are taxed on the income attributable to the fixed base. 1040 a tax form Income that residents of Luxembourg receive for services performed in the United States as employees (dependent personal services) is exempt from U. 1040 a tax form S. 1040 a tax form income tax if the residents meet the following requirements. 1040 a tax form They are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. 1040 a tax form Their income is paid by, or on behalf of, an employer who is not a U. 1040 a tax form S. 1040 a tax form resident. 1040 a tax form Their income is not borne by a permanent establishment or a fixed base that the employer has in the United States. 1040 a tax form The exemption does not apply to pay received for employment exercised continuously or predominantly aboard a ship or aircraft operated in international traffic by a U. 1040 a tax form S. 1040 a tax form enterprise. 1040 a tax form The exemptions do not apply to directors' fees and similar payments received by a resident of Luxembourg for services performed in the United States as a member of the board of directors of a company that is a resident of the United States. 1040 a tax form The exemptions do not apply to public entertainers (such as theater, motion picture, radio, or television artists, musicians, or athletes) from Luxembourg who earn more than $10,000 in gross receipts, including reimbursed expenses, from their entertainment activities in the United States during the tax year. 1040 a tax form Malta Income that residents of Malta receive for personal services as independent contractors or self-employed individuals is subject to the provisions of Article 7 (Business Profits) of the treaty. 1040 a tax form Under that provision, business profits are exempt from U. 1040 a tax form S. 1040 a tax form income tax unless the individual has a permanent establishment in the United States. 1040 a tax form If they have a permanent establishment in the United States, they are taxed on the profits attributable to the permanent establishment. 1040 a tax form Income that residents of Malta receive for services performed in the United States as employees (dependent personal services) is exempt from U. 1040 a tax form S. 1040 a tax form income tax if the residents meet the following requirements. 1040 a tax form They are in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year. 1040 a tax form Their income is paid by, or on behalf of, an employer who is not a U. 1040 a tax form S. 1040 a tax form resident. 1040 a tax form Their income is not borne by a permanent establishment that the employer has in the United States. 1040 a tax form The exemption does not apply to directors' fees and similar payments received by a resident of Malta for services performed in the United States as a member of the board of directors of a company that is a resident of the United States. 1040 a tax form Public entertainers (such as theater, motion picture, radio, or television artists, musicians, or athletes) from Malta who earn more than $20,000 in gross receipts, including reimbursed expenses, from their entertainment activities in the United States during the tax year are subject to U. 1040 a tax form S. 1040 a tax form tax. 1040 a tax form Income received by a resident of Malta for employment aboard a ship or an aircraft operated in international traffic is exempt from U. 1040 a tax form S. 1040 a tax form income tax if the individual is a member of the regular complement of the ship or aircraft. 1040 a tax form Mexico Income that residents of Mexico receive for performing personal services as independent contractors or self-employed individuals (independent personal services) in the United States is exempt from U. 1040 a tax form S. 1040 a tax form income tax if the residents: Are in the United States for no more than 182 days in a 12-month period, and Do not have a fixed base that they regularly use for performing the services. 1040 a tax form If they have a fixed base available, they are taxed only on income attributable to the fixed base. 1040 a tax form Income that residents of Mexico receive for employment in the United States (dependent personal services) is exempt from U. 1040 a tax form S. 1040 a tax form tax if the following three requirements are met. 1040 a tax form The resident is present in the United States for no more than 183 days in a 12-month period. 1040 a tax form The income is paid by, or on behalf of, an employer who is not a resident of the United States. 1040 a tax form The income is not borne by a permanent establishment or fixed base that the employer has in the United States. 1040 a tax form These exemptions do not apply to directors' fees and similar payments received by a resident of Mexico for services performed outside Mexico as a director or overseer of a company that is a U. 1040 a tax form S. 1040 a tax form resident. 1040 a tax form These exemptions do not apply to income residents of Mexico receive as public entertainers (such as theater, motion picture, radio, or television artists, or musicians) or athletes if the income, including reimbursed expenses, is more than $3,000 during the tax year for their entertainment activities in the United States. 1040 a tax form This includes income from activities performed in the United States relating to the entertainer or athlete's reputation, such as endorsements of commercial products. 1040 a tax form Regardless of this limit, the income of Mexican entertainers and athletes is exempt from U. 1040 a tax form S. 1040 a tax form tax if their visit to the United States is substantially supported by public funds of Mexico, its political subdivisions, or local authorities. 1040 a tax form Morocco Income that residents of Morocco receive for performing personal services as independent contractors or as self-employed persons (independent personal services) in the United States during the tax year is exempt from U. 1040 a tax form S. 1040 a tax form income tax if the residents: Are in the United States for no more than 182 days during the tax year, Do not maintain a fixed base in the United States for more than 89 days during the tax year, and Earn total income for those services that is not more than $5,000. 1040 a tax form If they have a fixed base in the United States for more than 89 days, they are taxed only on the income attributable to the fixed base. 1040 a tax form Income that residents of Morocco receive for labor or personal services performed in the United States as employees (dependent personal services) is exempt from U. 1040 a tax form S. 1040 a tax form income tax if the residents meet three requirements. 1040 a tax form They are in the United States for less than 183 days during the tax year. 1040 a tax form They are employees of a resident of Morocco or of a permanent establishment of a resident of a country other than Morocco if the permanent establishment is located in Morocco. 1040 a tax form Their income is not borne by a permanent establishment that the employer has in the United States. 1040 a tax form Compensation received for services performed by a member of the board of directors of a corporation does not qualify for this exemption. 1040 a tax form Income received by an individual for performing labor or personal services as an employee aboard a ship or an aircraft operated in international traffic by a Moroccan resident is exempt from U. 1040 a tax form S. 1040 a tax form income tax if the individual is a member of the regular complement of the ship or aircraft. 1040 a tax form These exemptions do not apply to income received for services performed in the United States by professional entertainers, including theater, film, radio, and television performers, musicians, and athletes, unless the services are performed by, or for the account of, a Moroccan nonprofit organization. 1040 a tax form Netherlands Income that residents of the Netherlands receive for performing personal services as independent contractors or self-employed individuals (independent personal services) in the United States is exempt from U. 1040 a tax form S. 1040 a tax form income tax if the income is not attributable to a fixed base in the United States that is regularly available for performing the services. 1040 a tax form Income that residents of the Netherlands receive for employment in the United States (dependent personal services) is exempt from U. 1040 a tax form S. 1040 a tax form income tax if the following three requirements are met. 1040 a tax form The resident is in the United States for no more than 183 days during the tax year. 1040 a tax form The income is paid by, or on behalf of, an employer who is not a U. 1040 a tax form S. 1040 a tax form resident. 1040 a tax form The income is not borne by a permanent establishment or fixed base the employer has in the United States. 1040 a tax form Income received by a Netherlands resident for employment as a member of the regular complement of a ship or