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1040 Tax Forms

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1040 Tax Forms

1040 tax forms Publication 4492 - Introductory Material Table of Contents Introduction Useful Items - You may want to see: Introduction This publication explains the major provisions of the Katrina Emergency Tax Relief Act of 2005 and the Gulf Opportunity Zone Act of 2005. 1040 tax forms Useful Items - You may want to see: Publication 526 Charitable Contributions 536 Net Operating Losses (NOLs) for Individuals, Estates, and Trusts 547 Casualties, Disasters, and Thefts 946 How To Depreciate Property Form (and Instructions) 4506Request for Copy of Tax Return 4506-TRequest for Transcript of Tax Return 4684Casualties and Thefts 5884Work Opportunity Credit 5884-ACredits for Employers Affected by Hurricane Katrina, Rita, or Wilma 8863Education Credits (Hope and Lifetime Learning Credits) 8914Exemption Amount for Taxpayers Housing Individuals Displaced by Hurricane Katrina 8915Qualified Hurricane Retirement Plan Distributions and Repayments Prev  Up  Next   Home   More Online Publications
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The 1040 Tax Forms

1040 tax forms 4. 1040 tax forms   Filing U. 1040 tax forms S. 1040 tax forms Tax Returns Table of Contents Who Must FileFiling Requirement if Possession Income Is Excluded When To FileExtension of Time To File Where To File Special Rules for Completing Your U. 1040 tax forms S. 1040 tax forms Tax ReturnU. 1040 tax forms S. 1040 tax forms Armed Forces. 1040 tax forms Deductions if Possession Income Is Excluded Foreign Tax Credit if Possession Income Is Excluded Self-Employment Tax Additional Medicare Tax Net Investment Income Tax Paying Your TaxesEstimated Tax Double TaxationCompetent Authority Assistance The information in chapter 3 will tell you if a U. 1040 tax forms S. 1040 tax forms income tax return is required for your situation. 1040 tax forms If a U. 1040 tax forms S. 1040 tax forms return is required, your next step is to see if you meet the filing requirements. 1040 tax forms If you do meet the filing requirements, the information presented in this chapter will help you understand the special procedures involved. 1040 tax forms This chapter discusses: Filing requirements, When to file your return, Where to send your return, How to adjust your deductions and credits if you are excluding income from American Samoa or Puerto Rico, How to make estimated tax payments and pay self-employment tax, and How to request assistance in resolving instances of double taxation. 1040 tax forms Who Must File If you are not required to file a possession tax return that includes your worldwide income, you must generally file a U. 1040 tax forms S. 1040 tax forms income tax return if your gross income is at least the amount shown in Table 4-1, later, for your filing status and age. 1040 tax forms If you were a bona fide resident of American Samoa or Puerto Rico and are able to exclude your possession income from your U. 1040 tax forms S. 1040 tax forms tax return, your filing requirement may be less than the amount in Table 4-1. 1040 tax forms For details, see the information under Filing Requirement if Possession Income Is Excluded , later. 1040 tax forms Some individuals (such as those who can be claimed as a dependent on another person's return or who owe certain taxes, such as self-employment tax) must file a tax return even though the gross income is less than the amount shown in Table 4-1 for their filing status and age. 1040 tax forms For more information, see the Form 1040 instructions. 1040 tax forms Filing Requirement if Possession Income Is Excluded If you were a bona fide resident of American Samoa or Puerto Rico and qualify to exclude possession income on your U. 1040 tax forms S. 1040 tax forms tax return, you must determine your adjusted filing requirement. 1040 tax forms Generally, your filing requirement is based on the total of your (and your spouse's if filing a joint return) personal exemption(s) plus your standard deduction. 1040 tax forms Personal exemption. 1040 tax forms   When figuring your filing requirement, your personal exemption is allowed in full. 1040 tax forms Do not reduce it for this purpose. 1040 tax forms Do not include exemptions for your dependents. 1040 tax forms Allowable standard deduction. 1040 tax forms   Unless your filing status is married filing separately, the minimum income level at which you must file a return is based, in part, on the standard deduction for your filing status and age. 1040 tax forms Because the standard deduction applies to all types of income, it must be divided between your excluded income and income from other sources. 1040 tax forms Multiply the regular standard deduction for your filing status and age (this is zero if you are married filing a separate return; all others, see Form 1040 instructions) by the following fraction:      Gross income subject to U. 1040 tax forms S. 1040 tax forms income tax     Gross income from all sources (including excluded possession income)   Example. 1040 tax forms Barbara Spruce, a U. 1040 tax forms S. 1040 tax forms citizen, is single, under 65, and a bona fide resident of American Samoa. 1040 tax forms During 2013, she received $20,000 of income from American Samoa sources (qualifies for exclusion) and $8,000 of income from sources outside the possession (subject to U. 1040 tax forms S. 1040 tax forms income tax). 1040 tax forms Her allowable standard deduction for 2013 is figured as follows:   $8,000 $28,000 × $6,100 (regular standard deduction) = $1,743   Adjusted filing requirement. 1040 tax forms   Figure your adjusted filing requirement by adding the amount of your allowable standard deduction to the amount of your personal exemption. 1040 tax forms You must file a U. 1040 tax forms S. 1040 tax forms income tax return if your gross income is at least the amount shown on line 3 of the following worksheet. 1040 tax forms    1. 1040 tax forms Enter the allowable standard deduction you figured earlier under Allowable standard deduction . 1040 tax forms If your filing status is married filing separately, enter -0-   2. 1040 tax forms Personal exemption. 1040 tax forms If your filing status is married filing jointly, enter $7,800; if someone can claim you as a dependent, enter -0-; otherwise, enter $3,900   3. 1040 tax forms Add lines 1 and 2. 1040 tax forms You must file a U. 1040 tax forms S. 1040 tax forms income tax return if your gross income from sources outside the relevant possession is at least this amount   Table 4-1. 1040 tax forms 2013 Filing Requirements Chart for Most Taxpayers IF your filing status is. 1040 tax forms . 1040 tax forms . 1040 tax forms AND at the end of 2013 you were*. 1040 tax forms . 1040 tax forms . 1040 tax forms THEN file a return if your gross income** was at least. 1040 tax forms . 1040 tax forms . 1040 tax forms single under 65 $10,000 65 or older $11,500 married filing jointly*** under 65 (both spouses) $20,000 65 or older (one spouse) $21,200 65 or older (both spouses) $22,400 married filing separately any age $3,900 head of household under 65 $12,850 65 or older $14,350 qualifying widow(er)  with dependent child under 65 $16,100 65 or older $17,300 * If you were born on January 1, 1949, you are considered to be age 65 at the end of 2013. 1040 tax forms ** Gross income means all income you received in the form of money, goods, property, and services that is not exempt from tax, including any income from sources outside the United States (even if you can exclude part or all of it). 1040 tax forms Do not include social security benefits unless (a) you are married filing a separate return and you lived with your spouse at any time during 2013, or (b) one-half of your social security benefits plus your other gross income is more than $25,000 ($32,000 if married filing jointly). 1040 tax forms If (a) or (b) applies, see the instructions for Form 1040 or Publication 915, Social Security and Equivalent Railroad Retirement Benefits, to figure the taxable part of social security benefits you must include in gross income. 1040 tax forms *** If you did not live with your spouse at the end of 2013 (or on the date your spouse died) and your gross income was at least $3,900 you must file a return regardless of your age. 1040 tax forms Example 1. 1040 tax forms James and Joan Thompson, one over 65, are U. 1040 tax forms S. 1040 tax forms citizens and bona fide residents of Puerto Rico during the entire tax year. 1040 tax forms They file a joint income tax return. 1040 tax forms During 2013, they received $35,000 of income from Puerto Rico sources (qualifies for exclusion) and $6,000 of income from sources outside Puerto Rico (subject to U. 1040 tax forms S. 1040 tax forms income tax). 1040 tax forms Their allowable standard deduction for 2013 is figured as follows:   $6,000 $41,000 × $13,400 ( standard deduction for 65 or older (one spouse) ) = $1,961   The Thompsons do not have to file a U. 1040 tax forms S. 1040 tax forms income tax return because their gross income subject to U. 1040 tax forms S. 1040 tax forms tax ($6,000) is less than their allowable standard deduction plus their personal exemptions ($1,961+ $7,800= $9,761). 1040 tax forms Example 2. 1040 tax forms Barbara Spruce (see Example under Allowable standard deduction, earlier), however, must file a U. 1040 tax forms S. 1040 tax forms income tax return because her gross income subject to U. 1040 tax forms S. 1040 tax forms tax ($8,000) is more than her allowable standard deduction plus her personal exemption ($1,743 + $3,900 = $5,643). 1040 tax forms If you must file a U. 1040 tax forms S. 1040 tax forms income tax return, you may be able to file a paperless return using IRS e-file. 1040 tax forms See your form instructions or visit our website at IRS. 1040 tax forms gov. 1040 tax forms When To File If you file on a calendar year basis, the due date for filing your U. 1040 tax forms S. 1040 tax forms income tax return is April 15 following the end of your tax year. 1040 tax forms If you use a fiscal year (a year ending on the last day of a month other than December), the due date is the 15th day of the 4th month after the end of your fiscal year. 1040 tax forms If any due date falls on a Saturday, Sunday, or legal holiday, your tax return is due on the next business day. 1040 tax forms For your 2013 tax return, the due date is April 15, 2014. 1040 tax forms If you mail your federal tax return, it is considered timely if it bears an official postmark dated on or before the due date, including any extensions. 1040 tax forms If you use a private delivery service designated by the IRS, generally the postmark date is the date the private delivery service records in its database or marks on the mailing label. 1040 tax forms See your form instructions for a list of designated private delivery services. 1040 tax forms Extension of Time To File You can get an extension of time to file your U. 1040 tax forms S. 1040 tax forms income tax return. 1040 tax forms Special rules apply for those living outside the United States. 1040 tax forms Automatic 6-Month Extension If you cannot file your 2013 return by the due date, you can get an automatic 6-month extension of time to file. 1040 tax forms Example. 1040 tax forms If your return must be filed by April 15, 2014, you will have until October 15, 2014, to file. 1040 tax forms Although you are not required to make a payment of the tax you estimate as due, Form 4868 does not extend the time to pay taxes. 1040 tax forms If you do not pay the amount due by the regular due date (generally April 15), you will owe interest on any unpaid tax from the original due date to the date you pay the tax. 1040 tax forms You may also be charged penalties (see the Instructions for Form 4868). 1040 tax forms How to get the automatic extension. 1040 tax forms   You can get the automatic 6-month extension if you do one of the following by the due date for filing your return. 1040 tax forms E-file Form 4868 using your personal computer or a tax professional. 1040 tax forms E-file and pay by credit or debit card. 1040 tax forms Your payment must be at least $1. 1040 tax forms You may pay by phone or over the Internet. 1040 tax forms Do not file Form 4868. 1040 tax forms File a paper Form 4868. 1040 tax forms If you are a fiscal year taxpayer, you must file a paper Form 4868. 1040 tax forms See Form 4868 for information on getting an extension using these options. 1040 tax forms When to file. 1040 tax forms   You must request the automatic extension by the due date for your return. 1040 tax forms You can file your return any time before the 6-month extension period ends. 1040 tax forms When you file your return. 1040 tax forms   Enter any payment you made related to the extension of time to file on Form 1040, line 68. 1040 tax forms If you file Form 1040A, U. 1040 tax forms S. 1040 tax forms Individual Income Tax Return, or Form 1040EZ, Income Tax Return for Single and Joint Filers With No Dependents, include that payment in your total payments on Form 1040A, line 41, or Form 1040EZ, line 9. 1040 tax forms Also enter “Form 4868” and the amount paid in the space to the left of the entry space for line 41 or line 9. 1040 tax forms You cannot ask the Internal Revenue Service to figure your tax if you use the extension of time to file. 1040 tax forms Individuals Outside the United States and Puerto Rico You are allowed an automatic 2-month extension (until June 16, 2014, if you use the calendar year) to file your 2013 return and pay any federal income tax due if: You are a U. 1040 tax forms S. 1040 tax forms citizen or resident, and On the due date of your return: You are living outside of the United States and Puerto Rico, and your main place of business or post of duty is outside the United States and Puerto Rico, or You are in military or naval service on duty outside the United States and Puerto Rico. 1040 tax forms However, if you pay the tax due after the regular due date (generally April 15), interest will be charged from April 15 until the date the tax is paid. 1040 tax forms If you serve in a combat zone or qualified hazardous duty area, you may be eligible for a longer extension of time to file. 1040 tax forms For more information, see Publication 3, Armed Forces' Tax Guide. 1040 tax forms Married taxpayers. 1040 tax forms   If you file a joint return, only one spouse has to qualify for this automatic extension. 1040 tax forms However, if you and your spouse file separate returns, this automatic extension applies only to the spouse who qualifies. 1040 tax forms How to get the extension. 1040 tax forms   To use this special automatic extension, you must attach a statement to your return explaining what situation qualified you for the extension. 1040 tax forms (See the situations listed under (2), earlier. 1040 tax forms ) Extension beyond 2 months. 1040 tax forms   If you cannot file your 2013 return within the automatic 2-month extension period, you can get an additional 4-month extension, for a total of 6 months. 1040 tax forms File Form 4868 by the end of the automatic extension period (June 16, 2014 for calendar year taxpayers). 1040 tax forms Be sure to check the box on Form 4868, line 8, if appropriate. 1040 tax forms   In addition to this 6-month extension, taxpayers who are out of the country (as defined under (2) earlier) can request a discretionary 2-month additional extension of time to file their returns (to December 15 for calendar year taxpayers). 1040 tax forms   To request this extension, you must send the IRS a letter explaining the reasons why you need the additional 2 months. 1040 tax forms Send the letter by the extended due date (October 15 for calendar year taxpayers) to:  Department of the Treasury Internal Revenue Service Austin, TX 73301-0215 USA   You will not receive any notification from the IRS unless your request is denied for being untimely. 1040 tax forms Where To File Use the addresses listed below if you have to file Form 1040 with the United States and you are excluding possession income from American Samoa or Puerto Rico. 1040 tax forms If you are not including a check or a money order, send your U. 1040 tax forms S. 1040 tax forms tax return and all attachments to:   Department of the Treasury Internal Revenue Service Austin, TX 73301-0215 USA If you are including a check or a money order, send your U. 1040 tax forms S. 1040 tax forms tax return and all attachments to:  Internal Revenue Service P. 1040 tax forms O. 1040 tax forms Box 1303 Charlotte, NC 28201-1303 USA Also send your U. 1040 tax forms S. 1040 tax forms return to these addresses if you are attaching Form 5074 or Form 8689. 1040 tax forms If you are not in either of the above categories, send your return to the address shown in the Form 1040 instructions for the possession or state in which you reside. 1040 tax forms Special Rules for Completing Your U. 1040 tax forms S. 1040 tax forms Tax Return If you are not excluding possession income from your U. 1040 tax forms S. 1040 tax forms tax return, follow the instructions for the specific forms you file. 1040 tax forms However, you may not qualify to claim the earned income credit (EIC). 1040 tax forms Earned income credit. 1040 tax forms   Even if you maintain a household in one of the possessions discussed in this publication that is your main home and the home of your qualifying child, you cannot claim the earned income credit on your U. 1040 tax forms S. 1040 tax forms tax return. 1040 tax forms This credit is available only if you maintain the household in the United States or you are serving on extended active duty in the U. 1040 tax forms S. 1040 tax forms Armed Forces. 1040 tax forms U. 1040 tax forms S. 1040 tax forms Armed Forces. 1040 tax forms   U. 1040 tax forms S. 1040 tax forms military personnel stationed outside the United States on extended active duty are considered to live in the United States during that duty period for purposes of the EIC. 1040 tax forms Extended active duty means you are called or ordered to duty for an indefinite period or for a period of more than 90 days. 1040 tax forms Once you begin serving your extended active duty, you are still considered to have been on extended active duty even if you do not serve more than 90 days. 1040 tax forms Income from American Samoa or Puerto Rico excluded. 1040 tax forms   You will not be allowed to take deductions and credits that apply to the excluded income. 1040 tax forms The additional information you need follows. 1040 tax forms Deductions if Possession Income Is Excluded Deductions that specifically apply to your excluded possession income, such as employee business expenses, are not allowable on your U. 1040 tax forms S. 1040 tax forms income tax return. 1040 tax forms Deductions that do not specifically apply to any particular type of income must be divided between your excluded income from sources in the relevant possession and income from all other sources to find the part that you can deduct on your U. 1040 tax forms S. 1040 tax forms tax return. 1040 tax forms Examples of such deductions are alimony payments, the standard deduction, and certain itemized deductions (such as medical expenses, charitable contributions, real estate taxes, and mortgage interest on your home). 1040 tax forms Figuring the deduction. 1040 tax forms   To find the part of a deduction that is allowable, multiply the deduction by the following fraction. 1040 tax forms   Gross income subject to U. 1040 tax forms S. 1040 tax forms income tax     Gross income from all sources (including excluded possession income)   Adjustments to Income Your adjusted gross income equals your gross income minus certain deductions (adjustments). 1040 tax forms Moving expense deduction. 1040 tax forms   Generally, expenses of a move to a possession are directly attributable to wages, salaries, and other earned income from that possession. 1040 tax forms Likewise, the expenses of a move back to the United States are generally attributable to U. 1040 tax forms S. 1040 tax forms earned income. 1040 tax forms   If you are claiming expenses for a move to a relevant possession, how and where you will deduct the expenses depends on your status as a bona fide resident and if any of your possession income is excluded on your U. 1040 tax forms S. 1040 tax forms tax return. 1040 tax forms For more information, see Moving expense deduction in chapter 3 under the name of the relevant possession. 1040 tax forms   If you are claiming expenses for a move from a U. 1040 tax forms S. 1040 tax forms possession to the United States, use Form 3903 to figure your deductible expenses and enter the amount on Form 1040, line 26. 1040 tax forms For purposes of deducting moving expenses, the possessions are considered part of the United States. 1040 tax forms See Publication 521, Moving Expenses, for information about what expenses are deductible. 1040 tax forms Self-employment tax deduction. 1040 tax forms   Generally, if you are reporting self-employment income on your U. 1040 tax forms S. 1040 tax forms return, you can include the deductible part of your self-employment tax on Form 1040, line 27. 1040 tax forms This is an income tax deduction only; it is not a deduction in figuring net earnings from self-employment (for self-employment tax). 1040 tax forms   However, if you are a bona fide resident of American Samoa or Puerto Rico and you exclude all of your self-employment income from gross income, you cannot take the deduction on Form 1040, line 27, because the deduction is related to excluded income. 1040 tax forms   If only part of your self-employment income is excluded, the part of the deduction that is based on the nonexcluded income is allowed. 1040 tax forms This would happen if, for instance, you have two businesses and only the income from one of them is excludable. 1040 tax forms   For purposes of the deduction only, figure the self-employment tax on the nonexcluded income by multiplying your total self-employment tax (from Schedule SE (Form 1040)), Self-Employment Tax) by the following fraction. 1040 tax forms   Self-employment income subject to U. 1040 tax forms S. 1040 tax forms income tax     Total self-employment income (including excluded possession income)   The result is your self-employment tax on nonexcluded income. 1040 tax forms Include the deductible part of this amount on Form 1040, line 27. 1040 tax forms Individual retirement arrangement (IRA) deduction. 1040 tax forms   Do not take excluded income into account when figuring your deductible IRA contribution. 1040 tax forms Standard Deduction The standard deduction is composed of the regular standard deduction amount and the additional standard deduction for taxpayers who are blind or age 65 or over. 1040 tax forms To find the amount you can claim on Form 1040, line 40, first figure your full standard deduction according to the Instructions for Form 1040. 1040 tax forms Then multiply your full standard deduction by the following fraction. 1040 tax forms   Gross income subject to U. 1040 tax forms S. 1040 tax forms income tax     Gross income from all sources (including excluded possession income)   In the space above line 40, enter “Standard deduction modified due to income excluded under section 931 (if American Samoa) or section 933 (if Puerto Rico). 1040 tax forms ” This calculation may not be the same as the one you used to determine if you need to file a U. 1040 tax forms S. 1040 tax forms tax return. 1040 tax forms Itemized Deductions Most itemized deductions do not apply to a particular type of income. 1040 tax forms However, itemized deductions can be divided into three categories. 1040 tax forms Those that apply specifically to excluded income, such as employee business expenses, are not deductible. 1040 tax forms Those that apply specifically to income subject to U. 1040 tax forms S. 1040 tax forms income tax, which might also be employee business expenses, are fully allowable under the Instructions for Schedule A (Form 1040), Itemized Deductions. 1040 tax forms Those that do not apply to specific income must be allocated between your gross income subject to U. 1040 tax forms S. 1040 tax forms income tax and your total gross income from all sources. 1040 tax forms The example given later shows how to figure the deductible part of each type of expense that is not related to specific income. 1040 tax forms Example. 1040 tax forms In 2013, you and your spouse are both under 65 and U. 1040 tax forms S. 1040 tax forms citizens who are bona fide residents of Puerto Rico during the entire tax year. 1040 tax forms You file a joint income tax return. 1040 tax forms During 2013, you earned $20,000 from Puerto Rican sources (excluded from U. 1040 tax forms S. 1040 tax forms gross income) and your spouse earned $60,000 from the U. 1040 tax forms S. 1040 tax forms Government. 1040 tax forms You have $16,000 of itemized deductions that do not apply to any specific type of income. 1040 tax forms These are medical expenses of $4,000, real estate taxes of $5,000, home mortgage interest of $6,000, and charitable contributions of $1,000 (cash contributions). 1040 tax forms You determine the amount of each deduction that you can claim on your Schedule A (Form 1040), Itemized Deductions, by multiplying the deduction by the fraction shown under Figuring the deduction , earlier under Deductions if Possession Income is Excluded. 1040 tax forms   Medical Expenses   $60,000$80,000 × $4,000 = $3,000  (enter on line 1  of Schedule A)     Real Estate Taxes   $60,000$80,000 × $5,000 = $3,750  (enter on line 6  of Schedule A)     Home Mortgage Interest   $60,000$80,000 × $6,000 = $4,500  (enter on line 10 or 11 of  Schedule A)     Charitable Contributions (cash contributions)   $60,000$80,000 × $1,000 = $750  (enter on line 16 of Schedule A)   Enter on Schedule A (Form 1040) only the allowable portion of each deduction. 1040 tax forms Overall limitation on itemized deductions. 1040 tax forms   If your adjusted gross income (discussed earlier) is over $300,000 if married filing jointly or qualifying widow(er); $275,000 if head of household; $250,000 if single; or $150,000 if married filing separately; see the Itemized Deductions Worksheet in the Instructions for Schedule A (Form 1040), to figure your itemized deductions. 1040 tax forms Personal Exemptions Personal exemptions are allowed in full even if excluding possession income. 1040 tax forms However, depending upon your adjusted gross income and filing status, the amount you can deduct may be reduced. 1040 tax forms See the Deduction for Exemptions Worksheet—Line 42 in the instructions for Form 1040. 1040 tax forms Foreign Tax Credit if Possession Income Is Excluded If you must report American Samoa or Puerto Rico source income on your U. 1040 tax forms S. 1040 tax forms tax return, you can claim a foreign tax credit for income taxes paid to the possession on that income. 1040 tax forms However, you cannot claim a foreign tax credit for taxes paid on possession income that is excluded on your U. 1040 tax forms S. 1040 tax forms tax return. 1040 tax forms The foreign tax credit is generally figured on Form 1116. 1040 tax forms If you have income, such as U. 1040 tax forms S. 1040 tax forms Government wages, that is not excludable, and you also have possession source income that is excludable, you must figure the credit by reducing your foreign taxes paid or accrued by the taxes based on the excluded income. 1040 tax forms You make this reduction for each separate income category. 1040 tax forms To find the amount of this reduction, use the following formula for each income category. 1040 tax forms Excluded income from possession sources less deductible expenses based on that income x Tax paid or accrued to the possession = Reduction in foreign taxes Total income subject to possession tax less deductible expenses based on that income Enter the amount of the reduction on Form 1116, line 12. 1040 tax forms For more information on the foreign tax credit, see Publication 514. 1040 tax forms Example. 1040 tax forms Jason and Lynn Reddy are U. 1040 tax forms S. 1040 tax forms citizens who were bona fide residents of Puerto Rico during all of 2013. 1040 tax forms They file a joint tax return. 1040 tax forms The following table shows their excludable and taxable income for U. 1040 tax forms S. 1040 tax forms federal income tax purposes. 1040 tax forms   Taxable   Excludable Jason's wages from  U. 1040 tax forms S. 1040 tax forms Government $25,000     Lynn's wages from Puerto Rico  corp. 1040 tax forms     $15,000 Dividend from Puerto Rico corp. 1040 tax forms doing business in Puerto Rico     200 Dividend from U. 1040 tax forms S. 1040 tax forms  corp. 1040 tax forms doing business  in U. 1040 tax forms S. 1040 tax forms * 1,000     Totals $26,000   $15,200 * Income from sources outside Puerto Rico is taxable. 1040 tax forms   Jason and Lynn must file 2013 income tax returns with both Puerto Rico and the United States. 1040 tax forms They have gross income of $26,000 for U. 1040 tax forms S. 1040 tax forms tax purposes. 1040 tax forms They paid taxes to Puerto Rico of $4,000 ($3,980 on their wages and $20 on the dividend from the Puerto Rico corporation). 1040 tax forms They figure their foreign tax credit on two Forms 1116, which they must attach to their U. 1040 tax forms S. 1040 tax forms return. 1040 tax forms They fill out one Form 1116 for wages and one Form 1116 for the dividend. 1040 tax forms Jason and Lynn figure the Puerto Rico taxes on excluded income as follows. 1040 tax forms   Wages: ($15,000 ÷ $40,000) × $3,980 = $1,493   Dividend: ($200 ÷ $200) × $20 = $20 They enter $1,493 on Form 1116, line 12, for wages and $20 on the second Form 1116, line 12, for the dividend. 1040 tax forms Self-Employment Tax Self-employment tax includes both social security and Medicare taxes for individuals who are self-employed. 1040 tax forms A U. 1040 tax forms S. 1040 tax forms citizen or resident alien who is self-employed must pay self-employment tax on net self-employment earnings of $400 or more. 1040 tax forms This rule applies whether or not the earnings are excludable from gross income (or whether or not a U. 1040 tax forms S. 1040 tax forms income tax return must otherwise be filed). 1040 tax forms Bona fide residents of the possessions discussed in this publication are considered U. 1040 tax forms S. 1040 tax forms residents for this purpose and are subject to the self-employment tax. 1040 tax forms Forms to file. 1040 tax forms   If you have net self-employment income and are subject to self-employment tax, file one of the following with the United States. 1040 tax forms If you are required to file Form 1040 with the United States, complete Schedule SE (Form 1040) and attach it to your Form 1040. 1040 tax forms If you are not required to file Form 1040 with the United States and you are a bona fide resident of American Samoa, the CNMI, Guam, Puerto Rico, or the USVI, file Form 1040-SS. 1040 tax forms If you are a resident of Puerto Rico, you can file the Spanish-language Form 1040-PR instead. 1040 tax forms Do not file forms 1040-SS or 1040-PR with Form 1040. 1040 tax forms If you are required to pay Additional Medicare Tax (discussed later) on your self-employment income, attach Form 8959, Additional Medicare Tax to Form 1040, Form 1040-SS, or Form 1040-PR, as applicable. 1040 tax forms Chapter 11 Bankruptcy cases. 1040 tax forms   While you are a debtor in a chapter 11 bankruptcy case, your net profit or loss from self-employment will be included on the income tax return (Form 1041, U. 1040 tax forms S. 1040 tax forms Income Tax Return for Estates and Trusts) of the bankruptcy estate. 1040 tax forms However, you—not the bankruptcy estate—are responsible for paying self-employment tax on your net earnings from self-employment. 1040 tax forms   Use Schedule SE (Form 1040), Form 1040-SS, or Form 1040-PR, as determined above, to figure your correct amount of self-employment tax. 1040 tax forms   For other reporting requirements, see Chapter 11 Bankruptcy Cases in the Instructions for Form 1040. 1040 tax forms Additional Medicare Tax Beginning in 2013, a 0. 1040 tax forms 9% Additional Medicare Tax applies to Medicare wages, railroad retirement (RRTA) compensation, and self-employment income that are more than: $125,000 if married filing separately, $250,000 if married filing jointly, or $200,000 if single, head of household, or qualifying widow(er). 1040 tax forms Medicare wages and self-employment income are combined to determine if income exceeds the threshold. 1040 tax forms A self-employment loss should not be considered for purposes of this tax. 1040 tax forms RRTA compensation should be separately compared to the threshold. 1040 tax forms Your employer is responsible for withholding the 0. 1040 tax forms 9% Additional Medicare Tax on Medicare wages or RRTA compensation it pays to you in excess of $200,000. 1040 tax forms You should consider this withholding, if applicable, in determining whether you need to make estimated tax payments. 1040 tax forms There are no special rules for U. 1040 tax forms S. 1040 tax forms citizens and nonresident aliens living abroad for purposes of this provision. 1040 tax forms Wages, RRTA compensation, and self-employment income that are subject to Medicare tax will also be subject to Additional Medicare Tax if in excess of the applicable threshold. 1040 tax forms For more information, see Form 8959, Additional Medicare Tax, and its instructions or visit www. 1040 tax forms irs. 1040 tax forms gov and enter the following words in the search box: Additional Medicare Tax. 1040 tax forms You cannot include the Additional Medicare Tax as a deductible part of your self-employment tax. 1040 tax forms Net Investment Income Tax Beginning in 2013, the Net Investment Income Tax (NIIT) imposes a 3. 1040 tax forms 8% tax on the lesser of an individual’s net investment income or the excess of the individual’s modified adjusted gross income over a specified threshold amount. 1040 tax forms Bona fide residents of Puerto Rico and American Samoa who may have a federal income tax return filing obligation may be liable for the NIIT if the taxpayer’s modified adjusted gross income from non-territory sources exceeds a specified threshold amount. 1040 tax forms The NIIT does not apply to any individual who is a nonresident alien with respect to the United States. 1040 tax forms Bona fide residents must take into account any additional tax liability associated with the NIIT when calculating your estimated tax payments. 1040 tax forms Forms to file. 1040 tax forms   If you are a bona fide resident of American Samoa and Puerto Rico and you are required to pay the NIIT, you must file Form 1040 with the United States and attach Form 8960, Net Investment Income Tax—Individuals, Estates, and Trusts. 1040 tax forms For more information, see Form 8960 and its instructions. 1040 tax forms Paying Your Taxes You may find that not all of your income tax has been paid through withholding by either the United States or the possession. 1040 tax forms This is often true if you have income that is not subject to withholding, such as self-employment, interest, or rental income. 1040 tax forms In this situation, you may need to make estimated tax payments. 1040 tax forms Estimated Tax If your estimated income tax obligation is to the United States, use the worksheet in the Form 1040-ES package to figure your estimated tax, including self-employment tax. 1040 tax forms Include the Additional Medicare Tax and Net Investment Income Tax if applicable. 1040 tax forms If you are paying by check or money order, use the payment vouchers in the Form 1040-ES package. 1040 tax forms Or, you can make your payments electronically and not have to file any paper forms. 1040 tax forms See the Form 1040-ES instructions for information on making payments. 1040 tax forms Double Taxation Mutual agreement procedures exist to settle issues where there is inconsistent tax treatment between the IRS and the taxing authorities of the following possessions. 1040 tax forms American Samoa. 1040 tax forms The Commonwealth of Puerto Rico. 1040 tax forms The Commonwealth of the Northern Mariana Islands. 1040 tax forms Guam. 1040 tax forms The U. 1040 tax forms S. 1040 tax forms Virgin Islands. 1040 tax forms These issues usually involve allocations of income, deductions, credits, or allowances between related persons; determinations of residency; and determinations of the source of income and related expenses. 1040 tax forms Competent Authority Assistance The tax coordination agreements between the United States and the possession tax departments contain provisions allowing the competent authorities of the United States and the relevant possession to resolve, by mutual agreement, inconsistent tax treatment by the two jurisdictions. 1040 tax forms How to make your request. 1040 tax forms   Your request for competent authority assistance must include all the information listed in Revenue Procedure 2006-23, 2006-20 I. 1040 tax forms R. 1040 tax forms B. 1040 tax forms 900 available at www. 1040 tax forms irs. 1040 tax forms gov/pub/irs-irbs/irb06-49. 1040 tax forms pdf. 1040 tax forms    Also, see Notice 2013-78, which provides proposed updates to the procedures for requesting U. 1040 tax forms S. 1040 tax forms competent authority assistance under tax treaties. 1040 tax forms As noted, an update to Revenue Procedure 2006-23 will be published in the future. 1040 tax forms   Your request must be in the form of a letter addressed to the Deputy Commissioner (International) LB&I. 1040 tax forms It must contain a statement that competent authority assistance is requested under the mutual agreement procedure with the possession. 1040 tax forms You (or a person having authority to sign your federal return) must sign and date the request. 1040 tax forms    Send your written request for U. 1040 tax forms S. 1040 tax forms assistance under this procedure to:   Deputy Commissioner (International) Large Business and International Division Internal Revenue Service 1111 Constitution Avenue, N. 1040 tax forms W. 1040 tax forms  Routing: M4-365 Washington, DC 20224 (Attention: TAIT) Nonresident aliens generally must present their initial request for assistance to the relevant possession tax agency. 1040 tax forms Credit or Refund In addition to the tax assistance request, if you seek a credit or refund of any overpayment of U. 1040 tax forms S. 1040 tax forms tax paid on the income in question, you should file a claim on Form 1040X, Amended U. 1040 tax forms S. 1040 tax forms Individual Income Tax Return. 1040 tax forms Indicate on the form that a request for assistance under the mutual agreement procedure with the possession has been filed. 1040 tax forms Attach a copy of the request to the form. 1040 tax forms Also, you should take whatever steps must be taken under the possession tax code to prevent the expiration of the statutory period for filing a claim for credit or refund of a possession tax. 1040 tax forms See Revenue Procedure 2006-54 (or its successor), section 9, for complete information. 1040 tax forms Prev  Up  Next   Home   More Online Publications