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1040 Tax Forms 2011

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1040 Tax Forms 2011

1040 tax forms 2011 1. 1040 tax forms 2011   Nonresident Alien or Resident Alien? Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Nonresident Aliens Resident AliensGreen Card Test Substantial Presence Test Effect of Tax Treaties Dual-Status AliensFirst Year of Residency Choosing Resident Alien Status Last Year of Residency Nonresident Spouse Treated as a ResidentHow To Make the Choice Aliens From American Samoa or Puerto Rico Introduction You should first determine whether, for income tax purposes, you are a nonresident alien or a resident alien. 1040 tax forms 2011 If you are both a nonresident and resident in the same year, you have a dual status. 1040 tax forms 2011 Dual status is explained later. 1040 tax forms 2011 Also explained later are a choice to treat your nonresident spouse as a resident and some other special situations. 1040 tax forms 2011 Topics - This chapter discusses: How to determine if you are a nonresident, resident, or dual-status alien, and How to treat a nonresident spouse as a resident alien. 1040 tax forms 2011 Useful Items - You may want to see: Form (and Instructions) 1040 U. 1040 tax forms 2011 S. 1040 tax forms 2011 Individual Income Tax Return 1040A U. 1040 tax forms 2011 S. 1040 tax forms 2011 Individual Income Tax Return 1040NR U. 1040 tax forms 2011 S. 1040 tax forms 2011 Nonresident Alien Income Tax Return 8833 Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b) 8840 Closer Connection Exception Statement for Aliens 8843 Statement for Exempt Individuals and Individuals With a Medical Condition See chapter 12 for information about getting these forms. 1040 tax forms 2011 Nonresident Aliens If you are an alien (not a U. 1040 tax forms 2011 S. 1040 tax forms 2011 citizen), you are considered a nonresident alien unless you meet one of the two tests described next under Resident Aliens. 1040 tax forms 2011 Resident Aliens You are a resident alien of the United States for tax purposes if you meet either the green card test or the substantial presence test for calendar year 2013 (January 1–December 31). 1040 tax forms 2011 Even if you do not meet either of these tests, you may be able to choose to be treated as a U. 1040 tax forms 2011 S. 1040 tax forms 2011 resident for part of the year. 1040 tax forms 2011 See First-Year Choice under Dual-Status Aliens, later. 1040 tax forms 2011 Green Card Test You are a resident for tax purposes if you are a lawful permanent resident of the United States at any time during calendar year 2013. 1040 tax forms 2011 (However, see Dual-Status Aliens , later. 1040 tax forms 2011 ) This is known as the “green card” test. 1040 tax forms 2011 You are a lawful permanent resident of the United States at any time if you have been given the privilege, according to the immigration laws, of residing permanently in the United States as an immigrant. 1040 tax forms 2011 You generally have this status if the U. 1040 tax forms 2011 S. 1040 tax forms 2011 Citizenship and Immigration Services (USCIS) (or its predecessor organization) has issued you an alien registration card, also known as a “green card. 1040 tax forms 2011 ” You continue to have resident status under this test unless the status is taken away from you or is administratively or judicially determined to have been abandoned. 1040 tax forms 2011 Resident status taken away. 1040 tax forms 2011   Resident status is considered to have been taken away from you if the U. 1040 tax forms 2011 S. 1040 tax forms 2011 government issues you a final administrative or judicial order of exclusion or deportation. 1040 tax forms 2011 A final judicial order is an order that you may no longer appeal to a higher court of competent jurisdiction. 1040 tax forms 2011 Resident status abandoned. 1040 tax forms 2011   An administrative or judicial determination of abandonment of resident status may be initiated by you, the USCIS, or a U. 1040 tax forms 2011 S. 1040 tax forms 2011 consular officer. 1040 tax forms 2011    If you initiate the determination, your resident status is considered to be abandoned when you file either of the following with the USCIS or U. 1040 tax forms 2011 S. 1040 tax forms 2011 consular officer. 1040 tax forms 2011 Your application for abandonment. 1040 tax forms 2011 Your Alien Registration Receipt Card attached to a letter stating your intent to abandon your resident status. 1040 tax forms 2011 You must file the letter by certified mail, return receipt requested. 1040 tax forms 2011 You must keep a copy of the letter and proof that it was mailed and received. 1040 tax forms 2011    Until you have proof your letter was received, you remain a resident alien for tax purposes even if the USCIS would not recognize the validity of your green card because it is more than ten years old or because you have been absent from the United States for a period of time. 1040 tax forms 2011   If the USCIS or U. 1040 tax forms 2011 S. 1040 tax forms 2011 consular officer initiates this determination, your resident status will be considered to be abandoned when the final administrative order of abandonment is issued. 1040 tax forms 2011 If you are granted an appeal to a federal court of competent jurisdiction, a final judicial order is required. 1040 tax forms 2011   Under U. 1040 tax forms 2011 S. 1040 tax forms 2011 immigration law, a lawful permanent resident who is required to file a tax return as a resident and fails to do so may be regarded as having abandoned status and may lose permanent resident status. 1040 tax forms 2011    A long-term resident who ceases to be a lawful permanent resident may be subject to special reporting requirements and tax provisions. 1040 tax forms 2011 See Expatriation Tax in chapter 4. 1040 tax forms 2011 Termination of residency after June 3, 2004, and before June 17, 2008. 1040 tax forms 2011   If you terminated your residency after June 3, 2004, and before June 17, 2008, you will still be considered a U. 1040 tax forms 2011 S. 1040 tax forms 2011 resident for tax purposes until you notify the Secretary of Homeland Security and file Form 8854, Initial and Annual Expatriation Statement. 1040 tax forms 2011 Termination of residency after June 16, 2008. 1040 tax forms 2011   For information on your residency termination date, see Former long-term resident under Expatriation After June 16, 2008, in chapter 4. 1040 tax forms 2011 Substantial Presence Test You will be considered a U. 1040 tax forms 2011 S. 1040 tax forms 2011 resident for tax purposes if you meet the substantial presence test for calendar year 2013. 1040 tax forms 2011 To meet this test, you must be physically present in the United States on at least: 31 days during 2013, and 183 days during the 3-year period that includes 2013, 2012, and 2011, counting: All the days you were present in 2013, and 1/3 of the days you were present in 2012, and 1/6 of the days you were present in 2011. 1040 tax forms 2011 Example. 1040 tax forms 2011 You were physically present in the United States on 120 days in each of the years 2011, 2012, and 2013. 1040 tax forms 2011 To determine if you meet the substantial presence test for 2013, count the full 120 days of presence in 2013, 40 days in 2012 (1/3 of 120), and 20 days in 2011 (1/6 of 120). 1040 tax forms 2011 Because the total for the 3-year period is 180 days, you are not considered a resident under the substantial presence test for 2013. 1040 tax forms 2011 The term United States includes the following areas. 1040 tax forms 2011 All 50 states and the District of Columbia. 1040 tax forms 2011 The territorial waters of the United States. 1040 tax forms 2011 The seabed and subsoil of those submarine areas that are adjacent to U. 1040 tax forms 2011 S. 1040 tax forms 2011 territorial waters and over which the United States has exclusive rights under international law to explore and exploit natural resources. 1040 tax forms 2011 The term does not include U. 1040 tax forms 2011 S. 1040 tax forms 2011 possessions and territories or U. 1040 tax forms 2011 S. 1040 tax forms 2011 airspace. 1040 tax forms 2011 Days of Presence in the United States You are treated as present in the United States on any day you are physically present in the country at any time during the day. 1040 tax forms 2011 However, there are exceptions to this rule. 1040 tax forms 2011 Do not count the following as days of presence in the United States for the substantial presence test. 1040 tax forms 2011 Days you commute to work in the United States from a residence in Canada or Mexico if you regularly commute from Canada or Mexico. 1040 tax forms 2011 Days you are in the United States for less than 24 hours when you are in transit between two places outside the United States. 1040 tax forms 2011 Days you are in the United States as a crew member of a foreign vessel. 1040 tax forms 2011 Days you are unable to leave the United States because of a medical condition that arose while you are in the United States. 1040 tax forms 2011 Days you are an exempt individual. 1040 tax forms 2011 The specific rules that apply to each of these categories are discussed next. 1040 tax forms 2011 Regular commuters from Canada or Mexico. 1040 tax forms 2011   Do not count the days on which you commute to work in the United States from your residence in Canada or Mexico if you regularly commute from Canada or Mexico. 1040 tax forms 2011 You are considered to commute regularly if you commute to work in the United States on more than 75% of the workdays during your working period. 1040 tax forms 2011   For this purpose, “commute” means to travel to work and return to your residence within a 24-hour period. 1040 tax forms 2011 “Workdays” are the days on which you work in the United States or Canada or Mexico. 1040 tax forms 2011 “Working period” means the period beginning with the first day in the current year on which you are physically present in the United States to work and ending on the last day in the current year on which you are physically present in the United States to work. 1040 tax forms 2011 If your work requires you to be present in the United States only on a seasonal or cyclical basis, your working period begins on the first day of the season or cycle on which you are present in the United States to work and ends on the last day of the season or cycle on which you are present in the United States to work. 1040 tax forms 2011 You can have more than one working period in a calendar year, and your working period can begin in one calendar year and end in the following calendar year. 1040 tax forms 2011 Example. 1040 tax forms 2011 Maria Perez lives in Mexico and works for Compañía ABC in its office in Mexico. 1040 tax forms 2011 She was assigned to her firm's office in the United States from February 1 through June 1. 1040 tax forms 2011 On June 2, she resumed her employment in Mexico. 1040 tax forms 2011 On 69 days, Maria commuted each morning from her home in Mexico to work in Compañía ABC's U. 1040 tax forms 2011 S. 1040 tax forms 2011 office. 1040 tax forms 2011 She returned to her home in Mexico on each of those evenings. 1040 tax forms 2011 On 7 days, she worked in her firm's Mexico office. 1040 tax forms 2011 For purposes of the substantial presence test, Maria does not count the days she commuted to work in the United States because those days equal more than 75% of the workdays during the working period (69 workdays in the United States divided by 76 workdays in the working period equals 90. 1040 tax forms 2011 8%). 1040 tax forms 2011 Days in transit. 1040 tax forms 2011   Do not count the days you are in the United States for less than 24 hours and you are in transit between two places outside the United States. 1040 tax forms 2011 You are considered to be in transit if you engage in activities that are substantially related to completing travel to your foreign destination. 1040 tax forms 2011 For example, if you travel between airports in the United States to change planes en route to your foreign destination, you are considered to be in transit. 1040 tax forms 2011 However, you are not considered to be in transit if you attend a business meeting while in the United States. 1040 tax forms 2011 This is true even if the meeting is held at the airport. 1040 tax forms 2011 Crew members. 1040 tax forms 2011   Do not count the days you are temporarily present in the United States as a regular crew member of a foreign vessel (boat or ship) engaged in transportation between the United States and a foreign country or a U. 1040 tax forms 2011 S. 1040 tax forms 2011 possession. 1040 tax forms 2011 However, this exception does not apply if you otherwise engage in any trade or business in the United States on those days. 1040 tax forms 2011 Medical condition. 1040 tax forms 2011   Do not count the days you intended to leave, but could not leave the United States because of a medical condition or problem that arose while you were in the United States. 1040 tax forms 2011 Whether you intended to leave the United States on a particular day is determined based on all the facts and circumstances. 1040 tax forms 2011 For example, you may be able to establish that you intended to leave if your purpose for visiting the United States could be accomplished during a period that is not long enough to qualify you for the substantial presence test. 1040 tax forms 2011 However, if you need an extended period of time to accomplish the purpose of your visit and that period would qualify you for the substantial presence test, you would not be able to establish an intent to leave the United States before the end of that extended period. 1040 tax forms 2011   In the case of an individual who is judged mentally incompetent, proof of intent to leave the United States can be determined by analyzing the individual's pattern of behavior before he or she was judged mentally incompetent. 1040 tax forms 2011   If you qualify to exclude days of presence because of a medical condition, you must file a fully completed Form 8843 with the IRS. 1040 tax forms 2011 See Form 8843 , later. 1040 tax forms 2011   You cannot exclude any days of presence in the United States under the following circumstances. 1040 tax forms 2011 You were initially prevented from leaving, were then able to leave, but remained in the United States beyond a reasonable period for making arrangements to leave. 1040 tax forms 2011 You returned to the United States for treatment of a medical condition that arose during a prior stay. 1040 tax forms 2011 The condition existed before your arrival in the United States and you were aware of the condition. 1040 tax forms 2011 It does not matter whether you needed treatment for the condition when you entered the United States. 1040 tax forms 2011 Exempt individual. 1040 tax forms 2011   Do not count days for which you are an exempt individual. 1040 tax forms 2011 The term “exempt individual” does not refer to someone exempt from U. 1040 tax forms 2011 S. 1040 tax forms 2011 tax, but to anyone in the following categories. 1040 tax forms 2011 An individual temporarily present in the United States as a foreign government-related individual under an “A” or “G” visa. 1040 tax forms 2011 A teacher or trainee temporarily present in the United States under a “J” or “Q” visa, who substantially complies with the requirements of the visa. 1040 tax forms 2011 A student temporarily present in the United States under an “F,” “J,” “M,” or “Q” visa, who substantially complies with the requirements of the visa. 1040 tax forms 2011 A professional athlete temporarily in the United States to compete in a charitable sports event. 1040 tax forms 2011   The specific rules for each of these four categories (including any rules on the length of time you will be an exempt individual) are discussed next. 1040 tax forms 2011 Foreign government-related individuals. 1040 tax forms 2011   A foreign government-related individual is an individual (or a member of the individual's immediate family) who is temporarily present in the United States: As a full-time employee of an international organization, By reason of diplomatic status, or By reason of a visa (other than a visa that grants lawful permanent residence) that the Secretary of the Treasury determines represents full-time diplomatic or consular status. 1040 tax forms 2011 Note. 1040 tax forms 2011 You are considered temporarily present in the United States regardless of the actual amount of time you are present in the United States. 1040 tax forms 2011    An international organization is any public international organization that the President of the United States has designated by Executive Order as being entitled to the privileges, exemptions, and immunities provided for in the International Organizations Act. 1040 tax forms 2011 An individual is a full-time employee if his or her work schedule meets the organization's standard full-time work schedule. 1040 tax forms 2011   An individual is considered to have full-time diplomatic or consular status if he or she: Has been accredited by a foreign government that is recognized by the United States, Intends to engage primarily in official activities for that foreign government while in the United States, and Has been recognized by the President, Secretary of State, or a consular officer as being entitled to that status. 1040 tax forms 2011 Note. 1040 tax forms 2011 If you are present in the United States under an “A” or “G” visa you are considered a foreign government-related individual (with full-time diplomatic or consular status). 1040 tax forms 2011 None of your days count for purposes of the substantial presence test. 1040 tax forms 2011   Members of the immediate family include the individual's spouse and unmarried children (whether by blood or adoption) but only if the spouse's or unmarried children's visa statuses are derived from and dependent on the exempt individual's visa classification. 1040 tax forms 2011 Unmarried children are included only if they: Are under 21 years of age, Reside regularly in the exempt individual's household, and Are not members of another household. 1040 tax forms 2011 Teachers and trainees. 1040 tax forms 2011   A teacher or trainee is an individual, other than a student, who is temporarily in the United States under a “J” or “Q” visa and substantially complies with the requirements of that visa. 1040 tax forms 2011 You are considered to have substantially complied with the visa requirements if you have not engaged in activities that are prohibited by U. 1040 tax forms 2011 S. 1040 tax forms 2011 immigration laws and could result in the loss of your visa status. 1040 tax forms 2011   Also included are immediate family members of exempt teachers and trainees. 1040 tax forms 2011 See the definition of immediate family, earlier, under Foreign government-related individuals . 1040 tax forms 2011   You will not be an exempt individual as a teacher or trainee in 2013 if you were exempt as a teacher, trainee, or student for any part of 2 of the 6 preceding calendar years. 1040 tax forms 2011 However, you will be an exempt individual if all of the following conditions are met. 1040 tax forms 2011 You were exempt as a teacher, trainee, or student for any part of 3 (or fewer) of the 6 preceding calendar years, A foreign employer paid all of your compensation during 2013, and A foreign employer paid all of your compensation during each of the preceding 6 years you were present in the United States as a teacher or trainee. 1040 tax forms 2011 A foreign employer includes an office or place of business of an American entity in a foreign country or a U. 1040 tax forms 2011 S. 1040 tax forms 2011 possession. 1040 tax forms 2011   If you qualify to exclude days of presence as a teacher or trainee, you must file a fully completed Form 8843 with the IRS. 1040 tax forms 2011 See Form 8843 , later. 1040 tax forms 2011 Example. 1040 tax forms 2011 Carla was temporarily in the United States during the year as a teacher on a “J” visa. 1040 tax forms 2011 Her compensation for the year was paid by a foreign employer. 1040 tax forms 2011 Carla was treated as an exempt teacher for the previous 2 years but her compensation was not paid by a foreign employer. 1040 tax forms 2011 She will not be considered an exempt individual for the current year because she was exempt as a teacher for at least 2 of the past 6 years. 1040 tax forms 2011 If her compensation for the past 2 years had been paid by a foreign employer, she would be an exempt individual for the current year. 1040 tax forms 2011 Students. 1040 tax forms 2011   A student is any individual who is temporarily in the United States on an “F,” “J,” “M,” or “Q” visa and who substantially complies with the requirements of that visa. 1040 tax forms 2011 You are considered to have substantially complied with the visa requirements if you have not engaged in activities that are prohibited by U. 1040 tax forms 2011 S. 1040 tax forms 2011 immigration laws and could result in the loss of your visa status. 1040 tax forms 2011   Also included are immediate family members of exempt students. 1040 tax forms 2011 See the definition of immediate family, earlier, under Foreign government-related individuals . 1040 tax forms 2011   You will not be an exempt individual as a student in 2013 if you have been exempt as a teacher, trainee, or student for any part of more than 5 calendar years unless you meet both of the following requirements. 1040 tax forms 2011 You establish that you do not intend to reside permanently in the United States. 1040 tax forms 2011 You have substantially complied with the requirements of your visa. 1040 tax forms 2011 The facts and circumstances to be considered in determining if you have demonstrated an intent to reside permanently in the United States include, but are not limited to, the following. 1040 tax forms 2011 Whether you have maintained a closer connection to a foreign country (discussed later). 1040 tax forms 2011 Whether you have taken affirmative steps to change your status from nonimmigrant to lawful permanent resident as discussed later under Closer Connection to a Foreign Country . 1040 tax forms 2011   If you qualify to exclude days of presence as a student, you must file a fully completed Form 8843 with the IRS. 1040 tax forms 2011 See Form 8843 , later. 1040 tax forms 2011 Professional athletes. 1040 tax forms 2011   A professional athlete who is temporarily in the United States to compete in a charitable sports event is an exempt individual. 1040 tax forms 2011 A charitable sports event is one that meets the following conditions. 1040 tax forms 2011 The main purpose is to benefit a qualified charitable organization. 1040 tax forms 2011 The entire net proceeds go to charity. 1040 tax forms 2011 Volunteers perform substantially all the work. 1040 tax forms 2011   In figuring the days of presence in the United States, you can exclude only the days on which you actually competed in a sports event. 1040 tax forms 2011 You cannot exclude the days on which you were in the United States to practice for the event, to perform promotional or other activities related to the event, or to travel between events. 1040 tax forms 2011   If you qualify to exclude days of presence as a professional athlete, you must file a fully completed Form 8843 with the IRS. 1040 tax forms 2011 See Form 8843 , next. 1040 tax forms 2011 Form 8843. 1040 tax forms 2011   If you exclude days of presence in the United States because you fall into any of the following categories, you must file a fully completed Form 8843. 1040 tax forms 2011 You were unable to leave the United States as planned because of a medical condition or problem. 1040 tax forms 2011 You were temporarily in the United States as a teacher or trainee on a “J” or “Q” visa. 1040 tax forms 2011 You were temporarily in the United States as a student on an “F,” “J,” “M,” or “Q” visa. 1040 tax forms 2011 You were a professional athlete competing in a charitable sports event. 1040 tax forms 2011 Attach Form 8843 to your 2013 income tax return. 1040 tax forms 2011 If you do not have to file a return, send Form 8843 to the Department of the Treasury, Internal Revenue Service Center, Austin, TX 73301-0215, by the due date for filing Form 1040NR or Form 1040NR-EZ. 1040 tax forms 2011 The due date for filing is discussed in chapter 7. 1040 tax forms 2011 If you do not timely file Form 8843, you cannot exclude the days you were present in the United States as a professional athlete or because of a medical condition that arose while you were in the United States. 1040 tax forms 2011 This does not apply if you can show by clear and convincing evidence that you took reasonable actions to become aware of the filing requirements and significant steps to comply with those requirements. 1040 tax forms 2011 Closer Connection to a Foreign Country Even if you meet the substantial presence test, you can be treated as a nonresident alien if you: Are present in the United States for less than 183 days during the year, Maintain a tax home in a foreign country during the year, and Have a closer connection during the year to one foreign country in which you have a tax home than to the United States (unless you have a closer connection to two foreign countries, discussed next). 1040 tax forms 2011 Closer connection to two foreign countries. 1040 tax forms 2011   You can demonstrate that you have a closer connection to two foreign countries (but not more than two) if you meet all of the following conditions. 1040 tax forms 2011 You maintained a tax home beginning on the first day of the year in one foreign country. 1040 tax forms 2011 You changed your tax home during the year to a second foreign country. 1040 tax forms 2011 You continued to maintain your tax home in the second foreign country for the rest of the year. 1040 tax forms 2011 You had a closer connection to each foreign country than to the United States for the period during which you maintained a tax home in that foreign country. 1040 tax forms 2011 You are subject to tax as a resident under the tax laws of either foreign country for the entire year or subject to tax as a resident in both foreign countries for the period during which you maintained a tax home in each foreign country. 1040 tax forms 2011 Tax home. 1040 tax forms 2011   Your tax home is the general area of your main place of business, employment, or post of duty, regardless of where you maintain your family home. 1040 tax forms 2011 Your tax home is the place where you permanently or indefinitely work as an employee or a self-employed individual. 1040 tax forms 2011 If you do not have a regular or main place of business because of the nature of your work, then your tax home is the place where you regularly live. 1040 tax forms 2011 If you do not fit either of these categories, you are considered an itinerant and your tax home is wherever you work. 1040 tax forms 2011   For determining whether you have a closer connection to a foreign country, your tax home must also be in existence for the entire current year, and must be located in the same foreign country to which you are claiming to have a closer connection. 1040 tax forms 2011 Foreign country. 1040 tax forms 2011   In determining whether you have a closer connection to a foreign country, the term “foreign country” means: Any territory under the sovereignty of the United Nations or a government other than that of the United States, The territorial waters of the foreign country (determined under U. 1040 tax forms 2011 S. 1040 tax forms 2011 law), The seabed and subsoil of those submarine areas which are adjacent to the territorial waters of the foreign country and over which the foreign country has exclusive rights under international law to explore and exploit natural resources, and Possessions and territories of the United States. 1040 tax forms 2011 Establishing a closer connection. 1040 tax forms 2011   You will be considered to have a closer connection to a foreign country than the United States if you or the IRS establishes that you have maintained more significant contacts with the foreign country than with the United States. 1040 tax forms 2011 In determining whether you have maintained more significant contacts with the foreign country than with the United States, the facts and circumstances to be considered include, but are not limited to, the following. 1040 tax forms 2011 The country of residence you designate on forms and documents. 1040 tax forms 2011 The types of official forms and documents you file, such as Form W-9, Form W-8BEN, or Form W-8ECI. 1040 tax forms 2011 The location of: Your permanent home, Your family, Your personal belongings, such as cars, furniture, clothing, and jewelry, Your current social, political, cultural, professional, or religious affiliations, Your business activities (other than those that constitute your tax home), The jurisdiction in which you hold a driver's license, The jurisdiction in which you vote, and Charitable organizations to which you contribute. 1040 tax forms 2011 It does not matter whether your permanent home is a house, an apartment, or a furnished room. 1040 tax forms 2011 It also does not matter whether you rent or own it. 1040 tax forms 2011 It is important, however, that your home be available at all times, continuously, and not solely for short stays. 1040 tax forms 2011 When you cannot have a closer connection. 1040 tax forms 2011   You cannot claim you have a closer connection to a foreign country if either of the following applies: You personally applied, or took other steps during the year, to change your status to that of a permanent resident, or You had an application pending for adjustment of status during the current year. 1040 tax forms 2011 Steps to change your status to that of a permanent resident include, but are not limited to, the filing of the following forms. 1040 tax forms 2011 Form I-508, Waiver of Rights, Privileges, Exemptions and Immunities Form I-485, Application to Register Permanent Residence or Adjust Status Form I-130, Petition for Alien Relative, on your behalf Form I-140, Immigrant Petition for Alien Worker, on your behalf Form ETA-750, Application for Alien Employment Certification, on your behalf Form DS-230, Application for Immigrant Visa and Alien Registration Form 8840. 1040 tax forms 2011   You must attach a fully completed Form 8840 to your income tax return to claim you have a closer connection to a foreign country or countries. 1040 tax forms 2011   If you do not have to file a return, send the form to the Department of the Treasury, Internal Revenue Service Center, Austin, TX 73301-0215, by the due date for filing Form 1040NR or Form 1040NR-EZ. 1040 tax forms 2011 The due date for filing is discussed later in chapter 7. 1040 tax forms 2011   If you do not timely file Form 8840, you cannot claim a closer connection to a foreign country or countries. 1040 tax forms 2011 This does not apply if you can show by clear and convincing evidence that you took reasonable actions to become aware of the filing requirements and significant steps to comply with those requirements. 1040 tax forms 2011 Effect of Tax Treaties The rules given here to determine if you are a U. 1040 tax forms 2011 S. 1040 tax forms 2011 resident do not override tax treaty definitions of residency. 1040 tax forms 2011 If you are a dual-resident taxpayer, you can still claim the benefits under an income tax treaty. 1040 tax forms 2011 A dual-resident taxpayer is one who is a resident of both the United States and another country under each country's tax laws. 1040 tax forms 2011 The income tax treaty between the two countries must contain a provision that provides for resolution of conflicting claims of residence (tie-breaker rule). 1040 tax forms 2011 If you are treated as a resident of a foreign country under a tax treaty, you are treated as a nonresident alien in figuring your U. 1040 tax forms 2011 S. 1040 tax forms 2011 income tax. 1040 tax forms 2011 For purposes other than figuring your tax, you will be treated as a U. 1040 tax forms 2011 S. 1040 tax forms 2011 resident. 1040 tax forms 2011 For example, the rules discussed here do not affect your residency time periods as discussed later under Dual-Status Aliens . 1040 tax forms 2011 Information to be reported. 1040 tax forms 2011   If you are a dual-resident taxpayer and you claim treaty benefits, you must file a return by the due date (including extensions) using Form 1040NR or Form 1040NR-EZ, and compute your tax as a nonresident alien. 1040 tax forms 2011 You must also attach a fully completed Form 8833 if you determine your residency under a tax treaty and receive payments or income items totaling more than $100,000. 1040 tax forms 2011 You may also have to attach Form 8938 (discussed in chapter 7). 1040 tax forms 2011 See Reporting Treaty Benefits Claimed in chapter 9 for more information on reporting treaty benefits. 1040 tax forms 2011 Dual-Status Aliens You can be both a nonresident alien and a resident alien during the same tax year. 1040 tax forms 2011 This usually occurs in the year you arrive in or depart from the United States. 1040 tax forms 2011 Aliens who have dual status should see chapter 6 for information on filing a return for a dual-status tax year. 1040 tax forms 2011 First Year of Residency If you are a U. 1040 tax forms 2011 S. 1040 tax forms 2011 resident for the calendar year, but you were not a U. 1040 tax forms 2011 S. 1040 tax forms 2011 resident at any time during the preceding calendar year, you are a U. 1040 tax forms 2011 S. 1040 tax forms 2011 resident only for the part of the calendar year that begins on the residency starting date. 1040 tax forms 2011 You are a nonresident alien for the part of the year before that date. 1040 tax forms 2011 Residency starting date under substantial presence test. 1040 tax forms 2011   If you meet the substantial presence test for a calendar year, your residency starting date is generally the first day you are present in the United States during that calendar year. 1040 tax forms 2011 However, you do not have to count up to 10 days of actual presence in the United States if on those days you establish that: You had a closer connection to a foreign country than to the United States, and Your tax home was in that foreign country. 1040 tax forms 2011 See Closer Connection to a Foreign Country , earlier. 1040 tax forms 2011   In determining whether you can exclude up to 10 days, the following rules apply. 1040 tax forms 2011 You can exclude days from more than one period of presence as long as the total days in all periods are not more than 10. 1040 tax forms 2011 You cannot exclude any days in a period of consecutive days of presence if all the days in that period cannot be excluded. 1040 tax forms 2011 Although you can exclude up to 10 days of presence in determining your residency starting date, you must include those days when determining whether you meet the substantial presence test. 1040 tax forms 2011 Example. 1040 tax forms 2011 Ivan Ivanovich is a citizen of Russia. 1040 tax forms 2011 He came to the United States for the first time on January 6, 2013, to attend a business meeting and returned to Russia on January 10, 2013. 1040 tax forms 2011 His tax home remained in Russia. 1040 tax forms 2011 On March 1, 2013, he moved to the United States and resided here for the rest of the year. 1040 tax forms 2011 Ivan is able to establish a closer connection to Russia for the period January 6–10. 1040 tax forms 2011 Thus, his residency starting date is March 1. 1040 tax forms 2011 Statement required to exclude up to 10 days of presence. 1040 tax forms 2011   You must file a statement with the IRS if you are excluding up to 10 days of presence in the United States for purposes of your residency starting date. 1040 tax forms 2011 You must sign and date this statement and include a declaration that it is made under penalties of perjury. 1040 tax forms 2011 The statement must contain the following information (as applicable). 1040 tax forms 2011 Your name, address, U. 1040 tax forms 2011 S. 1040 tax forms 2011 taxpayer identification number (if any), and U. 1040 tax forms 2011 S. 1040 tax forms 2011 visa number (if any). 1040 tax forms 2011 Your passport number and the name of the country that issued your passport. 1040 tax forms 2011 The tax year for which the statement applies. 1040 tax forms 2011 The first day that you were present in the United States during the year. 1040 tax forms 2011 The dates of the days you are excluding in figuring your first day of residency. 1040 tax forms 2011 Sufficient facts to establish that you have maintained your tax home in and a closer connection to a foreign country during the period you are excluding. 1040 tax forms 2011   Attach the required statement to your income tax return. 1040 tax forms 2011 If you are not required to file a return, send the statement to the Department of the Treasury, Internal Revenue Service Center, Austin, TX 73301-0215, on or before the due date for filing Form 1040NR or Form 1040NR-EZ. 1040 tax forms 2011 The due date for filing is discussed in chapter 7. 1040 tax forms 2011   If you do not file the required statement as explained above, you cannot claim that you have a closer connection to a foreign country or countries. 1040 tax forms 2011 Therefore, your first day of residency will be the first day you are present in the United States. 1040 tax forms 2011 This does not apply if you can show by clear and convincing evidence that you took reasonable actions to become aware of the requirements for filing the statement and significant steps to comply with those requirements. 1040 tax forms 2011 Residency starting date under green card test. 1040 tax forms 2011   If you meet the green card test at any time during a calendar year, but do not meet the substantial presence test for that year, your residency starting date is the first day in the calendar year on which you are present in the United States as a lawful permanent resident. 1040 tax forms 2011   If you meet both the substantial presence test and the green card test, your residency starting date is the earlier of the first day during the year you are present in the United States under the substantial presence test or as a lawful permanent resident. 1040 tax forms 2011 Residency during the preceding year. 1040 tax forms 2011   If you were a U. 1040 tax forms 2011 S. 1040 tax forms 2011 resident during any part of the preceding calendar year and you are a U. 1040 tax forms 2011 S. 1040 tax forms 2011 resident for any part of the current year, you will be considered a U. 1040 tax forms 2011 S. 1040 tax forms 2011 resident at the beginning of the current year. 1040 tax forms 2011 This applies whether you are a resident under the substantial presence test or green card test. 1040 tax forms 2011 Example. 1040 tax forms 2011 Robert Bach is a citizen of Switzerland. 1040 tax forms 2011 He came to the United States as a U. 1040 tax forms 2011 S. 1040 tax forms 2011 resident for the first time on May 1, 2012, and remained until November 5, 2012, when he returned to Switzerland. 1040 tax forms 2011 Robert came back to the United States on March 5, 2013, as a lawful permanent resident and still resides here. 1040 tax forms 2011 In calendar year 2013, Robert's U. 1040 tax forms 2011 S. 1040 tax forms 2011 residency is deemed to begin on January 1, 2013, because he qualified as a resident in calendar year 2012. 1040 tax forms 2011 First-Year Choice If you do not meet either the green card test or the substantial presence test for 2012 or 2013 and you did not choose to be treated as a resident for part of 2012, but you meet the substantial presence test for 2014, you can choose to be treated as a U. 1040 tax forms 2011 S. 1040 tax forms 2011 resident for part of 2013. 1040 tax forms 2011 To make this choice, you must: Be present in the United States for at least 31 days in a row in 2013, and Be present in the United States for at least 75% of the number of days beginning with the first day of the 31-day period and ending with the last day of 2013. 1040 tax forms 2011 For purposes of this 75% requirement, you can treat up to 5 days of absence from the United States as days of presence in the United States. 1040 tax forms 2011 When counting the days of presence in (1) and (2) above, do not count the days you were in the United States under any of the exceptions discussed earlier under Days of Presence in the United States. 1040 tax forms 2011 If you make the first-year choice, your residency starting date for 2013 is the first day of the earliest 31-day period (described in (1) above) that you use to qualify for the choice. 1040 tax forms 2011 You are treated as a U. 1040 tax forms 2011 S. 1040 tax forms 2011 resident for the rest of the year. 1040 tax forms 2011 If you are present for more than one 31-day period and you satisfy condition (2) above for each of those periods, your residency starting date is the first day of the first 31-day period. 1040 tax forms 2011 If you are present for more than one 31-day period but you satisfy condition (2) above only for a later 31-day period, your residency starting date is the first day of the later 31-day period. 1040 tax forms 2011 Note. 1040 tax forms 2011 You do not have to be married to make this choice. 1040 tax forms 2011 Example 1. 1040 tax forms 2011 Juan DaSilva is a citizen of the Philippines. 1040 tax forms 2011 He came to the United States for the first time on November 1, 2013, and was here on 31 consecutive days (from November 1 through December 1, 2013). 1040 tax forms 2011 Juan returned to the Philippines on December 1 and came back to the United States on December 17, 2013. 1040 tax forms 2011 He stayed in the United States for the rest of the year. 1040 tax forms 2011 During 2014, Juan was a resident of the United States under the substantial presence test. 1040 tax forms 2011 Juan can make the first-year choice for 2013 because he was in the United States in 2013 for a period of 31 days in a row (November 1 through December 1) and for at least 75% of the days following (and including) the first day of his 31-day period (46 total days of presence in the United States divided by 61 days in the period from November 1 through December 31 equals 75. 1040 tax forms 2011 4%). 1040 tax forms 2011 If Juan makes the first-year choice, his residency starting date will be November 1, 2013. 1040 tax forms 2011 Example 2. 1040 tax forms 2011 The facts are the same as in Example 1, except that Juan was also absent from the United States on December 24, 25, 29, 30, and 31. 1040 tax forms 2011 He can make the first-year choice for 2013 because up to 5 days of absence are considered days of presence for purposes of the 75% requirement. 1040 tax forms 2011 Statement required to make the first-year choice for 2013. 1040 tax forms 2011   You must attach a statement to Form 1040 to make the first-year choice for 2013. 1040 tax forms 2011 The statement must contain your name and address and specify the following. 1040 tax forms 2011 That you are making the first-year choice for 2013. 1040 tax forms 2011 That you were not a resident in 2012. 1040 tax forms 2011 That you are a resident under the substantial presence test in 2014. 1040 tax forms 2011 The number of days of presence in the United States during 2014. 1040 tax forms 2011 The date or dates of your 31-day period of presence and the period of continuous presence in the United States during 2013. 1040 tax forms 2011 The date or dates of absence from the United States during 2013 that you are treating as days of presence. 1040 tax forms 2011 You cannot file Form 1040 or the statement until you meet the substantial presence test for 2014. 1040 tax forms 2011 If you have not met the test for 2014 as of April 15, 2014, you can request an extension of time for filing your 2013 Form 1040 until a reasonable period after you have met that test. 1040 tax forms 2011 To request an extension to file until October 15, 2014, use Form 4868, Application for Automatic Extension of Time To File U. 1040 tax forms 2011 S. 1040 tax forms 2011 Individual Income Tax Return. 1040 tax forms 2011 You can file the paper form or use one of the electronic filing options explained in the Form 4868 instructions. 1040 tax forms 2011 You should pay with this extension the amount of tax you expect to owe for 2013 figured as if you were a nonresident alien the entire year. 1040 tax forms 2011 You can use Form 1040NR or Form 1040NR-EZ to figure the tax. 1040 tax forms 2011 Enter the tax on Form 4868. 1040 tax forms 2011 If you do not pay the tax due, you will be charged interest on any tax not paid by the regular due date of your return, and you may be charged a penalty on the late payment. 1040 tax forms 2011   Once you make the first-year choice, you may not revoke it without the approval of the Internal Revenue Service. 1040 tax forms 2011   If you do not follow the procedures discussed here for making the first-year choice, you will be treated as a nonresident alien for all of 2013. 1040 tax forms 2011 However, this does not apply if you can show by clear and convincing evidence that you took reasonable actions to become aware of the filing procedures and significant steps to comply with the procedures. 1040 tax forms 2011 Choosing Resident Alien Status If you are a dual-status alien, you can choose to be treated as a U. 1040 tax forms 2011 S. 1040 tax forms 2011 resident for the entire year if all of the following apply. 1040 tax forms 2011 You were a nonresident alien at the beginning of the year. 1040 tax forms 2011 You are a resident alien or U. 1040 tax forms 2011 S. 1040 tax forms 2011 citizen at the end of the year. 1040 tax forms 2011 You are married to a U. 1040 tax forms 2011 S. 1040 tax forms 2011 citizen or resident alien at the end of the year. 1040 tax forms 2011 Your spouse joins you in making the choice. 1040 tax forms 2011 This includes situations in which both you and your spouse were nonresident aliens at the beginning of the tax year and both of you are resident aliens at the end of the tax year. 1040 tax forms 2011 Note. 1040 tax forms 2011 If you are single at the end of the year, you cannot make this choice. 1040 tax forms 2011 If you make this choice, the following rules apply. 1040 tax forms 2011 You and your spouse are treated as U. 1040 tax forms 2011 S. 1040 tax forms 2011 residents for the entire year for income tax purposes. 1040 tax forms 2011 You and your spouse are taxed on worldwide income. 1040 tax forms 2011 You and your spouse must file a joint return for the year of the choice. 1040 tax forms 2011 Neither you nor your spouse can make this choice for any later tax year, even if you are separated, divorced, or remarried. 1040 tax forms 2011 The special instructions and restrictions for dual-status taxpayers in chapter 6 do not apply to you. 1040 tax forms 2011 Note. 1040 tax forms 2011 A similar choice is available if, at the end of the tax year, one spouse is a nonresident alien and the other spouse is a U. 1040 tax forms 2011 S. 1040 tax forms 2011 citizen or resident. 1040 tax forms 2011 See Nonresident Spouse Treated as a Resident , later. 1040 tax forms 2011 If you previously made that choice and it is still in effect, you do not need to make the choice explained here. 1040 tax forms 2011 Making the choice. 1040 tax forms 2011   You should attach a statement signed by both spouses to your joint return for the year of the choice. 1040 tax forms 2011 The statement must contain the following information. 1040 tax forms 2011 A declaration that you both qualify to make the choice and that you choose to be treated as U. 1040 tax forms 2011 S. 1040 tax forms 2011 residents for the entire tax year. 1040 tax forms 2011 The name, address, and taxpayer identification number (SSN or ITIN) of each spouse. 1040 tax forms 2011 (If one spouse died, include the name and address of the person who makes the choice for the deceased spouse. 1040 tax forms 2011 )   You generally make this choice when you file your joint return. 1040 tax forms 2011 However, you also can make the choice by filing Form 1040X, Amended U. 1040 tax forms 2011 S. 1040 tax forms 2011 Individual Income Tax Return. 1040 tax forms 2011 Attach Form 1040, Form 1040A, or Form 1040EZ and print “Amended” across the top of the corrected return. 1040 tax forms 2011 If you make the choice with an amended return, you and your spouse must also amend any returns that you may have filed after the year for which you made the choice. 1040 tax forms 2011   You generally must file the amended joint return within 3 years from the date you filed your original U. 1040 tax forms 2011 S. 1040 tax forms 2011 income tax return or 2 years from the date you paid your income tax for that year, whichever is later. 1040 tax forms 2011 Last Year of Residency If you were a U. 1040 tax forms 2011 S. 1040 tax forms 2011 resident in 2013 but are not a U. 1040 tax forms 2011 S. 1040 tax forms 2011 resident during any part of 2014, you cease to be a U. 1040 tax forms 2011 S. 1040 tax forms 2011 resident on your residency termination date. 1040 tax forms 2011 Your residency termination date is December 31, 2013, unless you qualify for an earlier date as discussed next. 1040 tax forms 2011 Earlier residency termination date. 1040 tax forms 2011   You may qualify for a residency termination date that is earlier than December 31. 1040 tax forms 2011 This date is: The last day in 2013 that you are physically present in the United States, if you met the substantial presence test, The first day in 2013 that you are no longer a lawful permanent resident of the United States, if you met the green card test, or The later of (1) or (2), if you met both tests. 1040 tax forms 2011 You can use this date only if, for the remainder of 2013, your tax home was in a foreign country and you had a closer connection to that foreign country. 1040 tax forms 2011 See Closer Connection to a Foreign Country , earlier. 1040 tax forms 2011    A long-term resident who ceases to be a lawful permanent resident may be subject to special reporting requirements and tax provisions. 1040 tax forms 2011 See Expatriation Tax in chapter 4. 1040 tax forms 2011 Termination of residency. 1040 tax forms 2011   For information on your residency termination date, see Former long-term resident under Expatriation After June 16, 2008, in chapter 4. 1040 tax forms 2011 De minimis presence. 1040 tax forms 2011   If you are a U. 1040 tax forms 2011 S. 1040 tax forms 2011 resident because of the substantial presence test and you qualify to use the earlier residency termination date, you can exclude up to 10 days of actual presence in the United States in determining your residency termination date. 1040 tax forms 2011 In determining whether you can exclude up to 10 days, the following rules apply. 1040 tax forms 2011 You can exclude days from more than one period of presence as long as the total days in all periods are not more than 10. 1040 tax forms 2011 You cannot exclude any days in a period of consecutive days of presence if all the days in that period cannot be excluded. 1040 tax forms 2011 Although you can exclude up to 10 days of presence in determining your residency termination date, you must include those days when determining whether you meet the substantial presence test. 1040 tax forms 2011 Example. 1040 tax forms 2011 Lola Bovary is a citizen of Malta. 1040 tax forms 2011 She came to the United States for the first time on March 1, 2013, and resided here until August 25, 2013. 1040 tax forms 2011 On December 12, 2013, Lola came to the United States for vacation and stayed here until December 16, 2013, when she returned to Malta. 1040 tax forms 2011 She is able to establish a closer connection to Malta for the period December 12–16. 1040 tax forms 2011 Lola is not a U. 1040 tax forms 2011 S. 1040 tax forms 2011 resident for tax purposes during 2014 and can establish a closer connection to Malta for the rest of calendar year 2013. 1040 tax forms 2011 Lola is a U. 1040 tax forms 2011 S. 1040 tax forms 2011 resident under the substantial presence test for 2013 because she was present in the United States for 183 days (178 days for the period March 1 to August 25 plus 5 days in December). 1040 tax forms 2011 Lola's residency termination date is August 25, 2013. 1040 tax forms 2011 Residency during the next year. 1040 tax forms 2011   If you are a U. 1040 tax forms 2011 S. 1040 tax forms 2011 resident during any part of 2014 and you are a resident during any part of 2013, you will be treated as a resident through the end of 2013. 1040 tax forms 2011 This applies whether you have a closer connection to a foreign country than the United States during 2013, and whether you are a resident under the substantial presence test or green card test. 1040 tax forms 2011 Statement required to establish your residency termination date. 1040 tax forms 2011   You must file a statement with the IRS to establish your residency termination date. 1040 tax forms 2011 You must sign and date this statement and include a declaration that it is made under penalties of perjury. 1040 tax forms 2011 The statement must contain the following information (as applicable). 1040 tax forms 2011 Your name, address, U. 1040 tax forms 2011 S. 1040 tax forms 2011 taxpayer identification number (if any), and U. 1040 tax forms 2011 S. 1040 tax forms 2011 visa number (if any). 1040 tax forms 2011 Your passport number and the name of the country that issued your passport. 1040 tax forms 2011 The tax year for which the statement applies. 1040 tax forms 2011 The last day that you were present in the United States during the year. 1040 tax forms 2011 Sufficient facts to establish that you have maintained your tax home in, and that you have a closer connection to, a foreign country following your last day of presence in the United States during the year or following the abandonment or rescission of your status as a lawful permanent resident during the year. 1040 tax forms 2011 The date that your status as a lawful permanent resident was abandoned or rescinded. 1040 tax forms 2011 Sufficient facts (including copies of relevant documents) to establish that your status as a lawful permanent resident has been abandoned or rescinded. 1040 tax forms 2011 If you can exclude days under the de minimis presence rule, discussed earlier, include the dates of the days you are excluding and sufficient facts to establish that you have maintained your tax home in and that you have a closer connection to a foreign country during the period you are excluding. 1040 tax forms 2011   Attach the required statement to your income tax return. 1040 tax forms 2011 If you are not required to file a return, send the statement to the Department of the Treasury, Internal Revenue Service Center, Austin, TX 73301-0215, on or before the due date for filing Form 1040NR or Form 1040NR-EZ. 1040 tax forms 2011 The due date for filing is discussed in chapter 7. 1040 tax forms 2011   If you do not file the required statement as explained above, you cannot claim that you have a closer connection to a foreign country or countries. 1040 tax forms 2011 This does not apply if you can show by clear and convincing evidence that you took reasonable actions to become aware of the requirements for filing the statement and significant steps to comply with those requirements. 1040 tax forms 2011 Nonresident Spouse Treated as a Resident If, at the end of your tax year, you are married and one spouse is a U. 1040 tax forms 2011 S. 1040 tax forms 2011 citizen or a resident alien and the other spouse is a nonresident alien, you can choose to treat the nonresident spouse as a U. 1040 tax forms 2011 S. 1040 tax forms 2011 resident. 1040 tax forms 2011 This includes situations in which one spouse is a nonresident alien at the beginning of the tax year, but a resident alien at the end of the year, and the other spouse is a nonresident alien at the end of the year. 1040 tax forms 2011 If you make this choice, you and your spouse are treated for income tax purposes as residents for your entire tax year. 1040 tax forms 2011 Neither you nor your spouse can claim under any tax treaty not to be a U. 1040 tax forms 2011 S. 1040 tax forms 2011 resident. 1040 tax forms 2011 You are both taxed on worldwide income. 1040 tax forms 2011 You must file a joint income tax return for the year you make the choice, but you and your spouse can file joint or separate returns in later years. 1040 tax forms 2011 If you file a joint return under this provision, the special instructions and restrictions for dual-status taxpayers in chapter 6 do not apply to you. 1040 tax forms 2011 Example. 1040 tax forms 2011 Bob and Sharon Williams are married and both are nonresident aliens at the beginning of the year. 1040 tax forms 2011 In June, Bob became a resident alien and remained a resident for the rest of the year. 1040 tax forms 2011 Bob and Sharon both choose to be treated as resident aliens by attaching a statement to their joint return. 1040 tax forms 2011 Bob and Sharon must file a joint return for the year they make the choice, but they can file either joint or separate returns for later years. 1040 tax forms 2011 How To Make the Choice Attach a statement, signed by both spouses, to your joint return for the first tax year for which the choice applies. 1040 tax forms 2011 It should contain the following information. 1040 tax forms 2011 A declaration that one spouse was a nonresident alien and the other spouse a U. 1040 tax forms 2011 S. 1040 tax forms 2011 citizen or resident alien on the last day of your tax year, and that you choose to be treated as U. 1040 tax forms 2011 S. 1040 tax forms 2011 residents for the entire tax year. 1040 tax forms 2011 The name, address, and identification number of each spouse. 1040 tax forms 2011 (If one spouse died, include the name and address of the person making the choice for the deceased spouse. 1040 tax forms 2011 ) Amended return. 1040 tax forms 2011   You generally make this choice when you file your joint return. 1040 tax forms 2011 However, you can also make the choice by filing a joint amended return on Form 1040X. 1040 tax forms 2011 Attach Form 1040, Form 1040A, or Form 1040EZ and print “Amended” across the top of the corrected return. 1040 tax forms 2011 If you make the choice with an amended return, you and your spouse must also amend any returns that you may have filed after the year for which you made the choice. 1040 tax forms 2011   You generally must file the amended joint return within 3 years from the date you filed your original U. 1040 tax forms 2011 S. 1040 tax forms 2011 income tax return or 2 years from the date you paid your income tax for that year, whichever is later. 1040 tax forms 2011 Suspending the Choice The choice to be treated as a resident alien is suspended for any tax year (after the tax year you made the choice) if neither spouse is a U. 1040 tax forms 2011 S. 1040 tax forms 2011 citizen or resident alien at any time during the tax year. 1040 tax forms 2011 This means each spouse must file a separate return as a nonresident alien for that year if either meets the filing requirements for nonresident aliens discussed in chapter 7. 1040 tax forms 2011 Example. 1040 tax forms 2011 Dick Brown was a resident alien on December 31, 2010, and married to Judy, a nonresident alien. 1040 tax forms 2011 They chose to treat Judy as a resident alien and filed joint 2010 and 2011 income tax returns. 1040 tax forms 2011 On January 10, 2012, Dick became a nonresident alien. 1040 tax forms 2011 Judy had remained a nonresident alien throughout the period. 1040 tax forms 2011 Dick and Judy could have filed joint or separate returns for 2012 because Dick was a resident alien for part of that year. 1040 tax forms 2011 However, because neither Dick nor Judy is a resident alien at any time during 2013, their choice is suspended for that year. 1040 tax forms 2011 If either meets the filing requirements for nonresident aliens discussed in chapter 7, they must file separate returns as nonresident aliens for 2013. 1040 tax forms 2011 If Dick becomes a resident alien again in 2014, their choice is no longer suspended. 1040 tax forms 2011 Ending the Choice Once made, the choice to be treated as a resident applies to all later years unless suspended (as explained earlier under Suspending the Choice ) or ended in one of the following ways. 1040 tax forms 2011 If the choice is ended in one of the following ways, neither spouse can make this choice in any later tax year. 1040 tax forms 2011 Revocation. 1040 tax forms 2011 Either spouse can revoke the choice for any tax year, provided he or she makes the revocation by the due date for filing the tax return for that tax year. 1040 tax forms 2011 The spouse who revokes the choice must attach a signed statement declaring that the choice is being revoked. 1040 tax forms 2011 The statement must include the name, address, and identification number of each spouse. 1040 tax forms 2011 (If one spouse dies, include the name and address of the person who is revoking the choice for the deceased spouse. 1040 tax forms 2011 ) The statement also must include a list of any states, foreign countries, and possessions that have community property laws in which either spouse is domiciled or where real property is located from which either spouse receives income. 1040 tax forms 2011 File the statement as follows. 1040 tax forms 2011 If the spouse revoking the choice must file a return, attach the statement to the return for the first year the revocation applies. 1040 tax forms 2011 If the spouse revoking the choice does not have to file a return, but does file a return (for example, to obtain a refund), attach the statement to the return. 1040 tax forms 2011 If the spouse revoking the choice does not have to file a return and does not file a claim for refund, send the statement to the Internal Revenue Service Center where you filed the last joint return. 1040 tax forms 2011 Death. 1040 tax forms 2011 The death of either spouse ends the choice, beginning with the first tax year following the year the spouse died. 1040 tax forms 2011 However, if the surviving spouse is a U. 1040 tax forms 2011 S. 1040 tax forms 2011 citizen or resident and is entitled to the joint tax rates as a surviving spouse, the choice will not end until the close of the last year for which these joint rates may be used. 1040 tax forms 2011 If both spouses die in the same tax year, the choice ends on the first day after the close of the tax year in which the spouses died. 1040 tax forms 2011 Legal separation. 1040 tax forms 2011 A legal separation under a decree of divorce or separate maintenance ends the choice as of the beginning of the tax year in which the legal separation occurs. 1040 tax forms 2011 Inadequate records. 1040 tax forms 2011 The Internal Revenue Service can end the choice for any tax year that either spouse has failed to keep adequate books, records, and other information necessary to determine the correct income tax liability, or to provide adequate access to those records. 1040 tax forms 2011 Aliens From American Samoa or Puerto Rico If you are a nonresident alien in the United States and a bona fide resident of American Samoa or Puerto Rico during the entire tax year, you are taxed, with certain exceptions, according to the rules for resident aliens of the United States. 1040 tax forms 2011 For more information, see Bona Fide Residents of American Samoa or Puerto Rico in chapter 5. 1040 tax forms 2011 If you are a nonresident alien from American Samoa or Puerto Rico who does not qualify as a bona fide resident of American Samoa or Puerto Rico for the entire tax year, you are taxed as a nonresident alien. 1040 tax forms 2011 Resident aliens who formerly were bona fide residents of American Samoa or Puerto Rico are taxed according to the rules for resident aliens. 1040 tax forms 2011 Prev  Up  Next   Home   More Online Publications
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CP 297A - Notice of Levy and Notice of Your Right to a Hearing

Details About This Notice:
Sample Content: Page 1, Page 2
Purpose:   We send CP 297A to notify the recipient of our levy and of  their right to a hearing.
Reason for Issuance:   There is a balance due on the recipient's account we've previously asked them to pay. We're sending the notice to inform them the account is still unpaid and to notify them of our levy and of their right to receive appeals consideration.
Account Balance:   Balance Due
Possible Enclosures:  

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Page Last Reviewed or Updated: 31-Mar-2014

The 1040 Tax Forms 2011

1040 tax forms 2011 2. 1040 tax forms 2011   Source of Income Table of Contents Introduction Topics - This chapter discusses: Resident Aliens Nonresident AliensInterest Income Dividends Guarantee of Indebtedness Personal Services Transportation Income Scholarships, Grants, Prizes, and Awards Pensions and Annuities Rents or Royalties Real Property Personal Property Community Income Introduction After you have determined your alien status, you must determine the source of your income. 1040 tax forms 2011 This chapter will help you determine the source of different types of income you may receive during the tax year. 1040 tax forms 2011 This chapter also discusses special rules for married individuals who are domiciled in a country with community property laws. 1040 tax forms 2011 Topics - This chapter discusses: Income source rules, and Community income. 1040 tax forms 2011 Resident Aliens A resident alien's income is generally subject to tax in the same manner as a U. 1040 tax forms 2011 S. 1040 tax forms 2011 citizen. 1040 tax forms 2011 If you are a resident alien, you must report all interest, dividends, wages, or other compensation for services, income from rental property or royalties, and other types of income on your U. 1040 tax forms 2011 S. 1040 tax forms 2011 tax return. 1040 tax forms 2011 You must report these amounts from sources within and outside the United States. 1040 tax forms 2011 Nonresident Aliens A nonresident alien usually is subject to U. 1040 tax forms 2011 S. 1040 tax forms 2011 income tax only on U. 1040 tax forms 2011 S. 1040 tax forms 2011 source income. 1040 tax forms 2011 Under limited circumstances, certain foreign source income is subject to U. 1040 tax forms 2011 S. 1040 tax forms 2011 tax. 1040 tax forms 2011 See Foreign Income in chapter 4. 1040 tax forms 2011 The general rules for determining U. 1040 tax forms 2011 S. 1040 tax forms 2011 source income that apply to most nonresident aliens are shown in Table 2-1. 1040 tax forms 2011 The following discussions cover the general rules as well as the exceptions to these rules. 1040 tax forms 2011 Not all items of U. 1040 tax forms 2011 S. 1040 tax forms 2011 source income are taxable. 1040 tax forms 2011 See chapter 3. 1040 tax forms 2011 Interest Income Generally, U. 1040 tax forms 2011 S. 1040 tax forms 2011 source interest income includes the following items. 1040 tax forms 2011 Interest on bonds, notes, or other interest-bearing obligations of U. 1040 tax forms 2011 S. 1040 tax forms 2011 residents or domestic corporations. 1040 tax forms 2011 Interest paid by a domestic or foreign partnership or foreign corporation engaged in a U. 1040 tax forms 2011 S. 1040 tax forms 2011 trade or business at any time during the tax year. 1040 tax forms 2011 Original issue discount. 1040 tax forms 2011 Interest from a state, the District of Columbia, or the U. 1040 tax forms 2011 S. 1040 tax forms 2011 Government. 1040 tax forms 2011 The place or manner of payment is immaterial in determining the source of the income. 1040 tax forms 2011 A substitute interest payment made to the transferor of a security in a securities lending transaction or a sale-repurchase transaction is sourced in the same manner as the interest on the transferred security. 1040 tax forms 2011 Exceptions. 1040 tax forms 2011   U. 1040 tax forms 2011 S. 1040 tax forms 2011 source interest income does not include the following items. 1040 tax forms 2011 Interest paid by a resident alien or a domestic corporation on obligations issued before August 10, 2010, if for the 3-year period ending with the close of the payer's tax year preceding the interest payment, at least 80% of the payer's total gross income: Is from sources outside the United States, and Is attributable to the active conduct of a trade or business by the individual or corporation in a foreign country or a U. 1040 tax forms 2011 S. 1040 tax forms 2011 possession. 1040 tax forms 2011 However, the interest will be considered U. 1040 tax forms 2011 S. 1040 tax forms 2011 source interest income if either of the following apply. 1040 tax forms 2011 The recipient of the interest is related to the resident alien or domestic corporation. 1040 tax forms 2011 See section 954(d)(3) for the definition of related person. 1040 tax forms 2011 The terms of the obligation are significantly modified after August 9, 2010. 1040 tax forms 2011 Any extension of the term of the obligation is considered a significant modification. 1040 tax forms 2011 Interest paid by a foreign branch of a domestic corporation or a domestic partnership on deposits or withdrawable accounts with mutual savings banks, cooperative banks, credit unions, domestic building and loan associations, and other savings institutions chartered and supervised as savings and loan or similar associations under federal or state law if the interest paid or credited can be deducted by the association. 1040 tax forms 2011 Interest on deposits with a foreign branch of a domestic corporation or domestic partnership, but only if the branch is in the commercial banking business. 1040 tax forms 2011 Dividends In most cases, dividend income received from domestic corporations is U. 1040 tax forms 2011 S. 1040 tax forms 2011 source income. 1040 tax forms 2011 Dividend income from foreign corporations is usually foreign source income. 1040 tax forms 2011 Exceptions to both of these rules are discussed below. 1040 tax forms 2011 A substitute dividend payment made to the transferor of a security in a securities lending transaction or a sale-repurchase transaction is sourced in the same manner as a distribution on the transferred security. 1040 tax forms 2011 Dividend equivalent payments. 1040 tax forms 2011   U. 1040 tax forms 2011 S. 1040 tax forms 2011 source dividends also include all dividend equivalent payments. 1040 tax forms 2011 Dividend equivalent payments include substitute dividends, payments made pursuant to a specified notional principal contract, and all similar payments that, directly or indirectly, are contingent on or determined by reference to, the payment of a dividend from U. 1040 tax forms 2011 S. 1040 tax forms 2011 sources. 1040 tax forms 2011    The Internal Revenue Service has issued final regulations that would affect the treatment of dividend equivalent payments and specified notional principal contracts. 1040 tax forms 2011 You can view this regulation at www. 1040 tax forms 2011 irs. 1040 tax forms 2011 gov/irb/2013-52_IRB/ar08. 1040 tax forms 2011 html. 1040 tax forms 2011 First exception. 1040 tax forms 2011   Dividends received from a domestic corporation are not U. 1040 tax forms 2011 S. 1040 tax forms 2011 source income if the corporation elects to take the American Samoa economic development credit. 1040 tax forms 2011 Second exception. 1040 tax forms 2011   Part of the dividends received from a foreign corporation is U. 1040 tax forms 2011 S. 1040 tax forms 2011 source income if 25% or more of its total gross income for the 3-year period ending with the close of its tax year preceding the declaration of dividends was effectively connected with a trade or business in the United States. 1040 tax forms 2011 If the corporation was formed less than 3 years before the declaration, use its total gross income from the time it was formed. 1040 tax forms 2011 Determine the part that is U. 1040 tax forms 2011 S. 1040 tax forms 2011 source income by multiplying the dividend by the following fraction. 1040 tax forms 2011   Foreign corporation's gross income connected with a U. 1040 tax forms 2011 S. 1040 tax forms 2011 trade or business for the 3-year period     Foreign corporation's gross income from all sources for that period   Guarantee of Indebtedness Certain amounts received directly or indirectly, for the provision of a guarantee of indebtedness issued after September 27, 2010, are U. 1040 tax forms 2011 S. 1040 tax forms 2011 source income. 1040 tax forms 2011 They must be paid by a noncorporate resident or U. 1040 tax forms 2011 S. 1040 tax forms 2011 corporation or by any foreign person if the amounts are effectively connected with the conduct of a U. 1040 tax forms 2011 S. 1040 tax forms 2011 trade or business. 1040 tax forms 2011 For more information, see Internal Revenue Code sections 861(a)(9) and 862(a)(9). 1040 tax forms 2011 Personal Services All wages and any other compensation for services performed in the United States are considered to be from sources in the United States. 1040 tax forms 2011 The only exceptions to this rule are discussed in chapter 3 under Employees of foreign persons, organizations, or offices, and under Crew members. 1040 tax forms 2011 If you are an employee and receive compensation for labor or personal services performed both inside and outside the United States, special rules apply in determining the source of the compensation. 1040 tax forms 2011 Compensation (other than certain fringe benefits) is sourced on a time basis. 1040 tax forms 2011 Certain fringe benefits (such as housing and education) are sourced on a geographical basis. 1040 tax forms 2011 Or, you may be permitted to use an alternative basis to determine the source of compensation. 1040 tax forms 2011 See Alternative Basis , later. 1040 tax forms 2011 Multi-level marketing. 1040 tax forms 2011   Certain companies sell products through a multi-level marketing arrangement, such that an upper-tier distributor, who has sponsored a lower-tier distributor, is entitled to a payment from the company based on certain activities of that lower-tier distributor. 1040 tax forms 2011 Generally, depending on the facts, payments from such multi-level marketing companies to independent (non-employee) distributors (upper-tier distributors) that are based on the sales or purchases of persons whom they have sponsored (lower-tier distributors) constitute income for the performance of personal services in recruiting, training, and supporting the lower-tier distributors. 1040 tax forms 2011 The source of such income is generally based on where the services of the upper-tier distributor are performed, and may, depending on the facts, be considered multi-year compensation, with the source of income determined over the period to which such compensation is attributable. 1040 tax forms 2011 Self-employed individuals. 1040 tax forms 2011   If you are self-employed, you determine the source of compensation for labor or personal services from self-employment on the basis that most correctly reflects the proper source of that income under the facts and circumstances of your particular case. 1040 tax forms 2011 In many cases, the facts and circumstances will call for an apportionment on a time basis as explained next. 1040 tax forms 2011 Time Basis Use a time basis to figure your U. 1040 tax forms 2011 S. 1040 tax forms 2011 source compensation (other than the fringe benefits discussed later). 1040 tax forms 2011 Do this by multiplying your total compensation (other than the fringe benefits discussed later) by the following fraction:   Number of days you performed services in the United States during the year     Total number of days you performed services during the year   You can use a unit of time less than a day in the above fraction, if appropriate. 1040 tax forms 2011 The time period for which the compensation is made does not have to be a year. 1040 tax forms 2011 Instead, you can use another distinct, separate, and continuous time period if you can establish to the satisfaction of the IRS that this other period is more appropriate. 1040 tax forms 2011 Example 1. 1040 tax forms 2011 Christina Brooks, a resident of the Netherlands, worked 240 days for a U. 1040 tax forms 2011 S. 1040 tax forms 2011 company during the tax year. 1040 tax forms 2011 She received $80,000 in compensation. 1040 tax forms 2011 None of it was for fringe benefits. 1040 tax forms 2011 Christina performed services in the United States for 60 days and performed services in the Netherlands for 180 days. 1040 tax forms 2011 Using the time basis for determining the source of compensation, $20,000 ($80,000 × 60/240) is her U. 1040 tax forms 2011 S. 1040 tax forms 2011 source income. 1040 tax forms 2011 Example 2. 1040 tax forms 2011 Rob Waters, a resident of South Africa, is employed by a corporation. 1040 tax forms 2011 His annual salary is $100,000. 1040 tax forms 2011 None of it is for fringe benefits. 1040 tax forms 2011 During the first quarter of the year he worked entirely within the United States. 1040 tax forms 2011 On April 1, Rob was transferred to Singapore for the remainder of the year. 1040 tax forms 2011 Rob is able to establish that the first quarter of the year and the last 3 quarters of the year are two separate, distinct, and continuous periods of time. 1040 tax forms 2011 Accordingly, $25,000 of Rob's annual salary is attributable to the first quarter of the year (. 1040 tax forms 2011 25 × $100,000). 1040 tax forms 2011 All of it is U. 1040 tax forms 2011 S. 1040 tax forms 2011 source income because he worked entirely within the United States during that quarter. 1040 tax forms 2011 The remaining $75,000 is attributable to the last three quarters of the year. 1040 tax forms 2011 During those quarters, he worked 150 days in Singapore and 30 days in the United States. 1040 tax forms 2011 His periodic performance of services in the United States did not result in distinct, separate, and continuous periods of time. 1040 tax forms 2011 Of this $75,000, $12,500 ($75,000 × 30/180) is U. 1040 tax forms 2011 S. 1040 tax forms 2011 source income. 1040 tax forms 2011 Multi-year compensation. 1040 tax forms 2011   The source of multi-year compensation is generally determined on a time basis over the period to which the compensation is attributable. 1040 tax forms 2011 Multi-year compensation is compensation that is included in your income in one tax year but that is attributable to a period that includes two or more tax years. 1040 tax forms 2011   You determine the period to which the compensation is attributable based on the facts and circumstances of your case. 1040 tax forms 2011 For example, an amount of compensation that specifically relates to a period of time that includes several calendar years is attributable to the entire multi-year period. 1040 tax forms 2011   The amount of compensation treated as from U. 1040 tax forms 2011 S. 1040 tax forms 2011 sources is figured by multiplying the total multi-year compensation by a fraction. 1040 tax forms 2011 The numerator of the fraction is the number of days (or unit of time less than a day, if appropriate) that you performed labor or personal services in the United States in connection with the project. 1040 tax forms 2011 The denominator of the fraction is the total number of days (or unit of time less than a day, if appropriate) that you performed labor or personal services in connection with the project. 1040 tax forms 2011 Geographical Basis Compensation you receive as an employee in the form of the following fringe benefits is sourced on a geographical basis. 1040 tax forms 2011 Housing. 1040 tax forms 2011 Education. 1040 tax forms 2011 Local transportation. 1040 tax forms 2011 Tax reimbursement. 1040 tax forms 2011 Hazardous or hardship duty pay as defined in Regulations section 1. 1040 tax forms 2011 861-4(b)(2)(ii)(D)(5). 1040 tax forms 2011 Moving expense reimbursement. 1040 tax forms 2011 The amount of fringe benefits must be reasonable and you must substantiate them by adequate records or by sufficient evidence. 1040 tax forms 2011 Principal place of work. 1040 tax forms 2011   The above fringe benefits, except for tax reimbursement and hazardous or hardship duty pay, are sourced based on your principal place of work. 1040 tax forms 2011 Your principal place of work is usually the place where you spend most of your working time. 1040 tax forms 2011 This could be your office, plant, store, shop, or other location. 1040 tax forms 2011 If there is no one place where you spend most of your working time, your main job location is the place where your work is centered, such as where you report for work or are otherwise required to “base” your work. 1040 tax forms 2011   If you have more than one job at any time, your main job location depends on the facts in each case. 1040 tax forms 2011 The more important factors to be considered are: The total time you spend at each place, The amount of work you do at each place, and How much money you earn at each place. 1040 tax forms 2011 Housing. 1040 tax forms 2011   The source of a housing fringe benefit is determined based on the location of your principal place of work. 1040 tax forms 2011 A housing fringe benefit includes payments to you or on your behalf (and your family's if your family resides with you) only for the following. 1040 tax forms 2011 Rent. 1040 tax forms 2011 Utilities (except telephone charges). 1040 tax forms 2011 Real and personal property insurance. 1040 tax forms 2011 Occupancy taxes not deductible under section 164 or 216(a). 1040 tax forms 2011 Nonrefundable fees for securing a leasehold. 1040 tax forms 2011 Rental of furniture and accessories. 1040 tax forms 2011 Household repairs. 1040 tax forms 2011 Residential parking. 1040 tax forms 2011 Fair rental value of housing provided in kind by your employer. 1040 tax forms 2011   A housing fringe benefit does not include: Deductible interest and taxes (including deductible interest and taxes of a tenant-stockholder in a cooperative housing corporation), The cost of buying property, including principal payments on a mortgage, The cost of domestic labor (maids, gardeners, etc. 1040 tax forms 2011 ), Pay television subscriptions, Improvements and other expenses that increase the value or appreciably prolong the life of property, Purchased furniture or accessories, Depreciation or amortization of property or improvements, The value of meals or lodging that you exclude from gross income, or The value of meals or lodging that you deduct as moving expenses. 1040 tax forms 2011 Education. 1040 tax forms 2011   The source of an education fringe benefit for the education expenses of your dependents is determined based on the location of your principal place of work. 1040 tax forms 2011 An education fringe benefit includes payments only for the following expenses for education at an elementary or secondary school. 1040 tax forms 2011 Tuition, fees, academic tutoring, special needs services for a special needs student, books, supplies, and other equipment. 1040 tax forms 2011 Room and board and uniforms that are required or provided by the school in connection with enrollment or attendance. 1040 tax forms 2011 Local transportation. 1040 tax forms 2011   The source of a local transportation fringe benefit is determined based on the location of your principal place of work. 1040 tax forms 2011 Your local transportation fringe benefit is the amount that you receive as compensation for local transportation for you or your spouse or dependents at the location of your principal place of work. 1040 tax forms 2011 The amount treated as a local transportation fringe benefit is limited to actual expenses incurred for local transportation and the fair rental value of any employer-provided vehicle used predominantly by you, your spouse, or your dependents for local transportation. 1040 tax forms 2011 Actual expenses do not include the cost (including interest) of any vehicle purchased by you or on your behalf. 1040 tax forms 2011 Tax reimbursement. 1040 tax forms 2011   The source of a tax reimbursement fringe benefit is determined based on the location of the jurisdiction that imposed the tax for which you are reimbursed. 1040 tax forms 2011 Moving expense reimbursement. 1040 tax forms 2011   The source of a moving expense reimbursement is generally based on the location of your new principal place of work. 1040 tax forms 2011 However, the source is determined based on the location of your former principal place of work if you provide sufficient evidence that such determination of source is more appropriate under the facts and circumstances of your case. 1040 tax forms 2011 Sufficient evidence generally requires an agreement between you and your employer, or a written statement of company policy, which is reduced to writing before the move and which is entered into or established to induce you or other employees to move to another country. 1040 tax forms 2011 The written statement or agreement must state that your employer will reimburse you for moving expenses that you incur to return to your former principal place of work regardless of whether you continue to work for your employer after returning to that location. 1040 tax forms 2011 It may contain certain conditions upon which the right to reimbursement is determined as long as those conditions set forth standards that are definitely ascertainable and can only be fulfilled prior to, or through completion of, your return move to your former principal place of work. 1040 tax forms 2011 Alternative Basis If you are an employee, you can determine the source of your compensation under an alternative basis if you establish to the satisfaction of the IRS that, under the facts and circumstances of your case, the alternative basis more properly determines the source of your compensation than the time or geographical basis. 1040 tax forms 2011 If you use an alternative basis, you must keep (and have available for inspection) records to document why the alternative basis more properly determines the source of your compensation. 1040 tax forms 2011 Also, if your total compensation from all sources is $250,000 or more, check “Yes” to both questions on line K on page 5 of Form 1040NR, and attach a written statement to your tax return that sets forth all of the following. 1040 tax forms 2011 Your name and social security number (written across the top of the statement). 1040 tax forms 2011 The specific compensation income, or the specific fringe benefit, for which you are using the alternative basis. 1040 tax forms 2011 For each item in (2), the alternative basis of allocation of source used. 1040 tax forms 2011 For each item in (2), a computation showing how the alternative allocation was computed. 1040 tax forms 2011 A comparison of the dollar amount of the U. 1040 tax forms 2011 S. 1040 tax forms 2011 compensation and foreign compensation sourced under both the alternative basis and the time or geographical basis discussed earlier. 1040 tax forms 2011 Transportation Income Transportation income is income from the use of a vessel or aircraft or for the performance of services directly related to the use of any vessel or aircraft. 1040 tax forms 2011 This is true whether the vessel or aircraft is owned, hired, or leased. 1040 tax forms 2011 The term “vessel or aircraft” includes any container used in connection with a vessel or aircraft. 1040 tax forms 2011 All income from transportation that begins and ends in the United States is treated as derived from sources in the United States. 1040 tax forms 2011 If the transportation begins or ends in the United States, 50% of the transportation income is treated as derived from sources in the United States. 1040 tax forms 2011 For transportation income from personal services, 50% of the income is U. 1040 tax forms 2011 S. 1040 tax forms 2011 source income if the transportation is between the United States and a U. 1040 tax forms 2011 S. 1040 tax forms 2011 possession. 1040 tax forms 2011 For nonresident aliens, this only applies to income derived from, or in connection with, an aircraft. 1040 tax forms 2011 For information on how U. 1040 tax forms 2011 S. 1040 tax forms 2011 source transportation income is taxed, see chapter 4. 1040 tax forms 2011 Scholarships, Grants, Prizes, and Awards Generally, the source of scholarships, fellowship grants, grants, prizes, and awards is the residence of the payer regardless of who actually disburses the funds. 1040 tax forms 2011 However, see Activities to be performed outside the United States , later. 1040 tax forms 2011 For example, payments for research or study in the United States made by the United States, a noncorporate U. 1040 tax forms 2011 S. 1040 tax forms 2011 resident, or a domestic corporation, are from U. 1040 tax forms 2011 S. 1040 tax forms 2011 sources. 1040 tax forms 2011 Similar payments from a foreign government or foreign corporation are foreign source payments even though the funds may be disbursed through a U. 1040 tax forms 2011 S. 1040 tax forms 2011 agent. 1040 tax forms 2011 Payments made by an entity designated as a public international organization under the International Organizations Immunities Act are from foreign sources. 1040 tax forms 2011 Activities to be performed outside the United States. 1040 tax forms 2011   Scholarships, fellowship grants, targeted grants, and achievement awards received by nonresident aliens for activities performed, or to be performed, outside the United States are not U. 1040 tax forms 2011 S. 1040 tax forms 2011 source income. 1040 tax forms 2011    These rules do not apply to amounts paid as salary or other compensation for services. 1040 tax forms 2011 See Personal Services, earlier, for the source rules that apply. 1040 tax forms 2011 Pensions and Annuities If you receive a pension from a domestic trust for services performed both in and outside the United States, part of the pension payment is from U. 1040 tax forms 2011 S. 1040 tax forms 2011 sources. 1040 tax forms 2011 That part is the amount attributable to earnings of the pension plan and the employer contributions made for services performed in the United States. 1040 tax forms 2011 This applies whether the distribution is made under a qualified or nonqualified stock bonus, pension, profit-sharing, or annuity plan (whether or not funded). 1040 tax forms 2011 If you performed services as an employee of the United States, you may receive a distribution from the U. 1040 tax forms 2011 S. 1040 tax forms 2011 Government under a plan, such as the Civil Service Retirement System, that is treated as a qualified pension plan. 1040 tax forms 2011 Your U. 1040 tax forms 2011 S. 1040 tax forms 2011 source income is the otherwise taxable amount of the distribution that is attributable to your total U. 1040 tax forms 2011 S. 1040 tax forms 2011 Government basic pay other than tax-exempt pay for services performed outside the United States. 1040 tax forms 2011 Rents or Royalties Your U. 1040 tax forms 2011 S. 1040 tax forms 2011 source income includes rent and royalty income received during the tax year from property located in the United States or from any interest in that property. 1040 tax forms 2011 U. 1040 tax forms 2011 S. 1040 tax forms 2011 source income also includes rents or royalties for the use of, or for the privilege of using, in the United States, intangible property such as patents, copyrights, secret processes and formulas, goodwill, trademarks, franchises, and similar property. 1040 tax forms 2011 Real Property Real property is land and buildings and generally anything built on, growing on, or attached to land. 1040 tax forms 2011 Gross income from sources in the United States includes gains, profits, and income from the sale or other disposition of real property located in the United States. 1040 tax forms 2011 Natural resources. 1040 tax forms 2011   The income from the sale of products of any farm, mine, oil or gas well, other natural deposit, or timber located in the United States and sold in a foreign country, or located in a foreign country and sold in the United States, is partly from sources in the United States. 1040 tax forms 2011 For information on determining that part, see section 1. 1040 tax forms 2011 863-1(b) of the regulations. 1040 tax forms 2011 Table 2-1. 1040 tax forms 2011 Summary of Source Rules for Income of Nonresident Aliens Item of income Factor determining source Salaries, wages, other compensation Where services performed Business income:   Personal services Where services performed Sale of inventory—purchased Where sold Sale of inventory—produced Allocation Interest Residence of payer Dividends Whether a U. 1040 tax forms 2011 S. 1040 tax forms 2011 or foreign corporation* Rents Location of property Royalties:   Natural resources Location of property Patents, copyrights, etc. 1040 tax forms 2011 Where property is used Sale of real property Location of property Sale of personal property Seller's tax home (but see Personal Property , later, for exceptions) Pension distributions attributable to contributions Where services were performed that earned the pension Investment earnings on pension contributions Location of pension trust Sale of natural resources Allocation based on fair market value of product at export terminal. 1040 tax forms 2011 For more information, see section 1. 1040 tax forms 2011 863-1(b) of the regulations. 1040 tax forms 2011 *Exceptions include: a) Dividends paid by a U. 1040 tax forms 2011 S. 1040 tax forms 2011 corporation are foreign source if the corporation elects the  American Samoa economic development credit. 1040 tax forms 2011  b) Part of a dividend paid by a foreign corporation is U. 1040 tax forms 2011 S. 1040 tax forms 2011 source if at least 25% of the  corporation's gross income is effectively connected with a U. 1040 tax forms 2011 S. 1040 tax forms 2011 trade or business for the  3 tax years before the year in which the dividends are declared. 1040 tax forms 2011 Personal Property Personal property is property, such as machinery, equipment, or furniture, that is not real property. 1040 tax forms 2011 Gain or loss from the sale or exchange of personal property generally has its source in the United States if you have a tax home in the United States. 1040 tax forms 2011 If you do not have a tax home in the United States, the gain or loss generally is considered to be from sources outside the United States. 1040 tax forms 2011 Tax home. 1040 tax forms 2011   Your tax home is the general area of your main place of business, employment, or post of duty, regardless of where you maintain your family home. 1040 tax forms 2011 Your tax home is the place where you permanently or indefinitely work as an employee or a self-employed individual. 1040 tax forms 2011 If you do not have a regular or main place of business because of the nature of your work, then your tax home is the place where you regularly live. 1040 tax forms 2011 If you do not fit either of these categories, you are considered an itinerant and your tax home is wherever you work. 1040 tax forms 2011 Inventory property. 1040 tax forms 2011   Inventory property is personal property that is stock in trade or that is held primarily for sale to customers in the ordinary course of your trade or business. 1040 tax forms 2011 Income from the sale of inventory that you purchased is sourced where the property is sold. 1040 tax forms 2011 Generally, this is where title to the property passes to the buyer. 1040 tax forms 2011 For example, income from the sale of inventory in the United States is U. 1040 tax forms 2011 S. 1040 tax forms 2011 source income, whether you purchased it in the United States or in a foreign country. 1040 tax forms 2011   Income from the sale of inventory property that you produced in the United States and sold outside the United States (or vice versa) is partly from sources in the United States and partly from sources outside the United States. 1040 tax forms 2011 For information on making this allocation, see section 1. 1040 tax forms 2011 863-3 of the regulations. 1040 tax forms 2011   These rules apply even if your tax home is not in the United States. 1040 tax forms 2011 Depreciable property. 1040 tax forms 2011   To determine the source of any gain from the sale of depreciable personal property, you must first figure the part of the gain that is not more than the total depreciation adjustments on the property. 1040 tax forms 2011 You allocate this part of the gain to sources in the United States based on the ratio of U. 1040 tax forms 2011 S. 1040 tax forms 2011 depreciation adjustments to total depreciation adjustments. 1040 tax forms 2011 The rest of this part of the gain is considered to be from sources outside the United States. 1040 tax forms 2011   For this purpose, “U. 1040 tax forms 2011 S. 1040 tax forms 2011 depreciation adjustments” are the depreciation adjustments to the basis of the property that are allowable in figuring taxable income from U. 1040 tax forms 2011 S. 1040 tax forms 2011 sources. 1040 tax forms 2011 However, if the property is used predominantly in the United States during a tax year, all depreciation deductions allowable for that year are treated as U. 1040 tax forms 2011 S. 1040 tax forms 2011 depreciation adjustments. 1040 tax forms 2011 But there are some exceptions for certain transportation, communications, and other property used internationally. 1040 tax forms 2011   Gain from the sale of depreciable property that is more than the total depreciation adjustments on the property is sourced as if the property were inventory property, as discussed above. 1040 tax forms 2011   A loss is sourced in the same way as the depreciation deductions were sourced. 1040 tax forms 2011 However, if the property was used predominantly in the United States, the entire loss reduces U. 1040 tax forms 2011 S. 1040 tax forms 2011 source income. 1040 tax forms 2011   The basis of property usually means the cost (money plus the fair market value of other property or services) of property you acquire. 1040 tax forms 2011 Depreciation is an amount deducted to recover the cost or other basis of a trade or business asset. 1040 tax forms 2011 The amount you can deduct depends on the property's cost, when you began using the property, how long it will take to recover your cost, and which depreciation method you use. 1040 tax forms 2011 A depreciation deduction is any deduction for depreciation or amortization or any other allowable deduction that treats a capital expenditure as a deductible expense. 1040 tax forms 2011 Intangible property. 1040 tax forms 2011   Intangible property includes patents, copyrights, secret processes or formulas, goodwill, trademarks, trade names, or other like property. 1040 tax forms 2011 The gain from the sale of amortizable or depreciable intangible property, up to the previously allowable amortization or depreciation deductions, is sourced in the same way as the original deductions were sourced. 1040 tax forms 2011 This is the same as the source rule for gain from the sale of depreciable property. 1040 tax forms 2011 See Depreciable property , earlier, for details on how to apply this rule. 1040 tax forms 2011   Gain in excess of the amortization or depreciation deductions is sourced in the country where the property is used if the income from the sale is contingent on the productivity, use, or disposition of that property. 1040 tax forms 2011 If the income is not contingent on the productivity, use, or disposition of the property, the income is sourced according to your tax home as discussed earlier. 1040 tax forms 2011 If payments for goodwill do not depend on its productivity, use, or disposition, their source is the country in which the goodwill was generated. 1040 tax forms 2011 Sales through offices or fixed places of business. 1040 tax forms 2011   Despite any of the earlier rules, if you do not have a tax home in the United States, but you maintain an office or other fixed place of business in the United States, treat the income from any sale of personal property (including inventory property) that is attributable to that office or place of business as U. 1040 tax forms 2011 S. 1040 tax forms 2011 source income. 1040 tax forms 2011 However, this rule does not apply to sales of inventory property for use, disposition, or consumption outside the United States if your office or other fixed place of business outside the United States materially participated in the sale. 1040 tax forms 2011   If you have a tax home in the United States but maintain an office or other fixed place of business outside the United States, income from sales of personal property, other than inventory, depreciable property, or intangibles, that is attributable to that foreign office or place of business may be treated as U. 1040 tax forms 2011 S. 1040 tax forms 2011 source income. 1040 tax forms 2011 The income is treated as U. 1040 tax forms 2011 S. 1040 tax forms 2011 source income if an income tax of less than 10% of the income from the sale is paid to a foreign country. 1040 tax forms 2011 This rule also applies to losses if the foreign country would have imposed an income tax of less than 10% had the sale resulted in a gain. 1040 tax forms 2011 Community Income If you are married and you or your spouse is subject to the community property laws of a foreign country, a U. 1040 tax forms 2011 S. 1040 tax forms 2011 state, or a U. 1040 tax forms 2011 S. 1040 tax forms 2011 possession, you generally must follow those laws to determine the income of yourself and your spouse for U. 1040 tax forms 2011 S. 1040 tax forms 2011 tax purposes. 1040 tax forms 2011 But you must disregard certain community property laws if: Both you and your spouse are nonresident aliens, or One of you is a nonresident alien and the other is a U. 1040 tax forms 2011 S. 1040 tax forms 2011 citizen or resident and you do not both choose to be treated as U. 1040 tax forms 2011 S. 1040 tax forms 2011 residents as explained in chapter 1. 1040 tax forms 2011 In these cases, you and your spouse must report community income as explained later. 1040 tax forms 2011 Earned income. 1040 tax forms 2011   Earned income of a spouse, other than trade or business income and a partner's distributive share of partnership income, is treated as the income of the spouse whose services produced the income. 1040 tax forms 2011 That spouse must report all of it on his or her separate return. 1040 tax forms 2011 Trade or business income. 1040 tax forms 2011   Trade or business income, other than a partner's distributive share of partnership income, is treated as the income of the spouse carrying on the trade or business. 1040 tax forms 2011 That spouse must report all of it on his or her separate return. 1040 tax forms 2011 Partnership income (or loss). 1040 tax forms 2011   A partner's distributive share of partnership income (or loss) is treated as the income (or loss) of the partner. 1040 tax forms 2011 The partner must report all of it on his or her separate return. 1040 tax forms 2011 Separate property income. 1040 tax forms 2011   Income derived from the separate property of one spouse (and which is not earned income, trade or business income, or partnership distributive share income) is treated as the income of that spouse. 1040 tax forms 2011 That spouse must report all of it on his or her separate return. 1040 tax forms 2011 Use the appropriate community property law to determine what is separate property. 1040 tax forms 2011 Other community income. 1040 tax forms 2011   All other community income is treated as provided by the applicable community property laws. 1040 tax forms 2011 Prev  Up  Next   Home   More Online Publications