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1040ez 2012 Instructions

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1040ez 2012 Instructions

1040ez 2012 instructions 2. 1040ez 2012 instructions   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. 1040ez 2012 instructions This chapter will help you determine the source of different types of income you may receive during the tax year. 1040ez 2012 instructions This chapter also discusses special rules for married individuals who are domiciled in a country with community property laws. 1040ez 2012 instructions Topics - This chapter discusses: Income source rules, and Community income. 1040ez 2012 instructions Resident Aliens A resident alien's income is generally subject to tax in the same manner as a U. 1040ez 2012 instructions S. 1040ez 2012 instructions citizen. 1040ez 2012 instructions 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. 1040ez 2012 instructions S. 1040ez 2012 instructions tax return. 1040ez 2012 instructions You must report these amounts from sources within and outside the United States. 1040ez 2012 instructions Nonresident Aliens A nonresident alien usually is subject to U. 1040ez 2012 instructions S. 1040ez 2012 instructions income tax only on U. 1040ez 2012 instructions S. 1040ez 2012 instructions source income. 1040ez 2012 instructions Under limited circumstances, certain foreign source income is subject to U. 1040ez 2012 instructions S. 1040ez 2012 instructions tax. 1040ez 2012 instructions See Foreign Income in chapter 4. 1040ez 2012 instructions The general rules for determining U. 1040ez 2012 instructions S. 1040ez 2012 instructions source income that apply to most nonresident aliens are shown in Table 2-1. 1040ez 2012 instructions The following discussions cover the general rules as well as the exceptions to these rules. 1040ez 2012 instructions Not all items of U. 1040ez 2012 instructions S. 1040ez 2012 instructions source income are taxable. 1040ez 2012 instructions See chapter 3. 1040ez 2012 instructions Interest Income Generally, U. 1040ez 2012 instructions S. 1040ez 2012 instructions source interest income includes the following items. 1040ez 2012 instructions Interest on bonds, notes, or other interest-bearing obligations of U. 1040ez 2012 instructions S. 1040ez 2012 instructions residents or domestic corporations. 1040ez 2012 instructions Interest paid by a domestic or foreign partnership or foreign corporation engaged in a U. 1040ez 2012 instructions S. 1040ez 2012 instructions trade or business at any time during the tax year. 1040ez 2012 instructions Original issue discount. 1040ez 2012 instructions Interest from a state, the District of Columbia, or the U. 1040ez 2012 instructions S. 1040ez 2012 instructions Government. 1040ez 2012 instructions The place or manner of payment is immaterial in determining the source of the income. 1040ez 2012 instructions 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. 1040ez 2012 instructions Exceptions. 1040ez 2012 instructions   U. 1040ez 2012 instructions S. 1040ez 2012 instructions source interest income does not include the following items. 1040ez 2012 instructions 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. 1040ez 2012 instructions S. 1040ez 2012 instructions possession. 1040ez 2012 instructions However, the interest will be considered U. 1040ez 2012 instructions S. 1040ez 2012 instructions source interest income if either of the following apply. 1040ez 2012 instructions The recipient of the interest is related to the resident alien or domestic corporation. 1040ez 2012 instructions See section 954(d)(3) for the definition of related person. 1040ez 2012 instructions The terms of the obligation are significantly modified after August 9, 2010. 1040ez 2012 instructions Any extension of the term of the obligation is considered a significant modification. 1040ez 2012 instructions 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. 1040ez 2012 instructions 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. 1040ez 2012 instructions Dividends In most cases, dividend income received from domestic corporations is U. 1040ez 2012 instructions S. 1040ez 2012 instructions source income. 1040ez 2012 instructions Dividend income from foreign corporations is usually foreign source income. 1040ez 2012 instructions Exceptions to both of these rules are discussed below. 1040ez 2012 instructions 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. 1040ez 2012 instructions Dividend equivalent payments. 1040ez 2012 instructions   U. 1040ez 2012 instructions S. 1040ez 2012 instructions source dividends also include all dividend equivalent payments. 1040ez 2012 instructions 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. 1040ez 2012 instructions S. 1040ez 2012 instructions sources. 1040ez 2012 instructions    The Internal Revenue Service has issued final regulations that would affect the treatment of dividend equivalent payments and specified notional principal contracts. 1040ez 2012 instructions You can view this regulation at www. 1040ez 2012 instructions irs. 1040ez 2012 instructions gov/irb/2013-52_IRB/ar08. 1040ez 2012 instructions html. 1040ez 2012 instructions First exception. 1040ez 2012 instructions   Dividends received from a domestic corporation are not U. 1040ez 2012 instructions S. 1040ez 2012 instructions source income if the corporation elects to take the American Samoa economic development credit. 1040ez 2012 instructions Second exception. 1040ez 2012 instructions   Part of the dividends received from a foreign corporation is U. 1040ez 2012 instructions S. 1040ez 2012 instructions 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. 1040ez 2012 instructions If the corporation was formed less than 3 years before the declaration, use its total gross income from the time it was formed. 1040ez 2012 instructions Determine the part that is U. 1040ez 2012 instructions S. 1040ez 2012 instructions source income by multiplying the dividend by the following fraction. 1040ez 2012 instructions   Foreign corporation's gross income connected with a U. 1040ez 2012 instructions S. 1040ez 2012 instructions 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. 1040ez 2012 instructions S. 1040ez 2012 instructions source income. 1040ez 2012 instructions They must be paid by a noncorporate resident or U. 1040ez 2012 instructions S. 1040ez 2012 instructions corporation or by any foreign person if the amounts are effectively connected with the conduct of a U. 1040ez 2012 instructions S. 1040ez 2012 instructions trade or business. 1040ez 2012 instructions For more information, see Internal Revenue Code sections 861(a)(9) and 862(a)(9). 1040ez 2012 instructions 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. 1040ez 2012 instructions The only exceptions to this rule are discussed in chapter 3 under Employees of foreign persons, organizations, or offices, and under Crew members. 1040ez 2012 instructions 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. 1040ez 2012 instructions Compensation (other than certain fringe benefits) is sourced on a time basis. 1040ez 2012 instructions Certain fringe benefits (such as housing and education) are sourced on a geographical basis. 1040ez 2012 instructions Or, you may be permitted to use an alternative basis to determine the source of compensation. 1040ez 2012 instructions See Alternative Basis , later. 1040ez 2012 instructions Multi-level marketing. 1040ez 2012 instructions   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. 1040ez 2012 instructions 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. 1040ez 2012 instructions 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. 1040ez 2012 instructions Self-employed individuals. 1040ez 2012 instructions   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. 1040ez 2012 instructions In many cases, the facts and circumstances will call for an apportionment on a time basis as explained next. 1040ez 2012 instructions Time Basis Use a time basis to figure your U. 1040ez 2012 instructions S. 1040ez 2012 instructions source compensation (other than the fringe benefits discussed later). 1040ez 2012 instructions 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. 1040ez 2012 instructions The time period for which the compensation is made does not have to be a year. 1040ez 2012 instructions 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. 1040ez 2012 instructions Example 1. 1040ez 2012 instructions Christina Brooks, a resident of the Netherlands, worked 240 days for a U. 1040ez 2012 instructions S. 1040ez 2012 instructions company during the tax year. 1040ez 2012 instructions She received $80,000 in compensation. 1040ez 2012 instructions None of it was for fringe benefits. 1040ez 2012 instructions Christina performed services in the United States for 60 days and performed services in the Netherlands for 180 days. 1040ez 2012 instructions Using the time basis for determining the source of compensation, $20,000 ($80,000 × 60/240) is her U. 1040ez 2012 instructions S. 1040ez 2012 instructions source income. 1040ez 2012 instructions Example 2. 1040ez 2012 instructions Rob Waters, a resident of South Africa, is employed by a corporation. 1040ez 2012 instructions His annual salary is $100,000. 1040ez 2012 instructions None of it is for fringe benefits. 1040ez 2012 instructions During the first quarter of the year he worked entirely within the United States. 1040ez 2012 instructions On April 1, Rob was transferred to Singapore for the remainder of the year. 1040ez 2012 instructions 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. 1040ez 2012 instructions Accordingly, $25,000 of Rob's annual salary is attributable to the first quarter of the year (. 1040ez 2012 instructions 25 × $100,000). 1040ez 2012 instructions All of it is U. 1040ez 2012 instructions S. 1040ez 2012 instructions source income because he worked entirely within the United States during that quarter. 1040ez 2012 instructions The remaining $75,000 is attributable to the last three quarters of the year. 1040ez 2012 instructions During those quarters, he worked 150 days in Singapore and 30 days in the United States. 1040ez 2012 instructions His periodic performance of services in the United States did not result in distinct, separate, and continuous periods of time. 1040ez 2012 instructions Of this $75,000, $12,500 ($75,000 × 30/180) is U. 1040ez 2012 instructions S. 1040ez 2012 instructions source income. 1040ez 2012 instructions Multi-year compensation. 1040ez 2012 instructions   The source of multi-year compensation is generally determined on a time basis over the period to which the compensation is attributable. 1040ez 2012 instructions 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. 1040ez 2012 instructions   You determine the period to which the compensation is attributable based on the facts and circumstances of your case. 1040ez 2012 instructions 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. 1040ez 2012 instructions   The amount of compensation treated as from U. 1040ez 2012 instructions S. 1040ez 2012 instructions sources is figured by multiplying the total multi-year compensation by a fraction. 1040ez 2012 instructions 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. 1040ez 2012 instructions 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. 1040ez 2012 instructions Geographical Basis Compensation you receive as an employee in the form of the following fringe benefits is sourced on a geographical basis. 1040ez 2012 instructions Housing. 1040ez 2012 instructions Education. 1040ez 2012 instructions Local transportation. 1040ez 2012 instructions Tax reimbursement. 1040ez 2012 instructions Hazardous or hardship duty pay as defined in Regulations section 1. 1040ez 2012 instructions 861-4(b)(2)(ii)(D)(5). 1040ez 2012 instructions Moving expense reimbursement. 1040ez 2012 instructions The amount of fringe benefits must be reasonable and you must substantiate them by adequate records or by sufficient evidence. 1040ez 2012 instructions Principal place of work. 1040ez 2012 instructions   The above fringe benefits, except for tax reimbursement and hazardous or hardship duty pay, are sourced based on your principal place of work. 1040ez 2012 instructions Your principal place of work is usually the place where you spend most of your working time. 1040ez 2012 instructions This could be your office, plant, store, shop, or other location. 1040ez 2012 instructions 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. 1040ez 2012 instructions   If you have more than one job at any time, your main job location depends on the facts in each case. 1040ez 2012 instructions 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. 1040ez 2012 instructions Housing. 1040ez 2012 instructions   The source of a housing fringe benefit is determined based on the location of your principal place of work. 1040ez 2012 instructions 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. 1040ez 2012 instructions Rent. 1040ez 2012 instructions Utilities (except telephone charges). 1040ez 2012 instructions Real and personal property insurance. 1040ez 2012 instructions Occupancy taxes not deductible under section 164 or 216(a). 1040ez 2012 instructions Nonrefundable fees for securing a leasehold. 1040ez 2012 instructions Rental of furniture and accessories. 1040ez 2012 instructions Household repairs. 1040ez 2012 instructions Residential parking. 1040ez 2012 instructions Fair rental value of housing provided in kind by your employer. 1040ez 2012 instructions   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. 1040ez 2012 instructions ), 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. 1040ez 2012 instructions Education. 1040ez 2012 instructions   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. 1040ez 2012 instructions An education fringe benefit includes payments only for the following expenses for education at an elementary or secondary school. 1040ez 2012 instructions Tuition, fees, academic tutoring, special needs services for a special needs student, books, supplies, and other equipment. 1040ez 2012 instructions Room and board and uniforms that are required or provided by the school in connection with enrollment or attendance. 1040ez 2012 instructions Local transportation. 1040ez 2012 instructions   The source of a local transportation fringe benefit is determined based on the location of your principal place of work. 1040ez 2012 instructions 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. 1040ez 2012 instructions 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. 1040ez 2012 instructions Actual expenses do not include the cost (including interest) of any vehicle purchased by you or on your behalf. 1040ez 2012 instructions Tax reimbursement. 1040ez 2012 instructions   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. 1040ez 2012 instructions Moving expense reimbursement. 1040ez 2012 instructions   The source of a moving expense reimbursement is generally based on the location of your new principal place of work. 1040ez 2012 instructions 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. 1040ez 2012 instructions 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. 1040ez 2012 instructions 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. 1040ez 2012 instructions 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. 1040ez 2012 instructions 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. 1040ez 2012 instructions 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. 1040ez 2012 instructions 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. 1040ez 2012 instructions Your name and social security number (written across the top of the statement). 1040ez 2012 instructions The specific compensation income, or the specific fringe benefit, for which you are using the alternative basis. 1040ez 2012 instructions For each item in (2), the alternative basis of allocation of source used. 1040ez 2012 instructions For each item in (2), a computation showing how the alternative allocation was computed. 1040ez 2012 instructions A comparison of the dollar amount of the U. 1040ez 2012 instructions S. 1040ez 2012 instructions compensation and foreign compensation sourced under both the alternative basis and the time or geographical basis discussed earlier. 1040ez 2012 instructions 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. 1040ez 2012 instructions This is true whether the vessel or aircraft is owned, hired, or leased. 1040ez 2012 instructions The term “vessel or aircraft” includes any container used in connection with a vessel or aircraft. 1040ez 2012 instructions All income from transportation that begins and ends in the United States is treated as derived from sources in the United States. 1040ez 2012 instructions 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. 1040ez 2012 instructions For transportation income from personal services, 50% of the income is U. 1040ez 2012 instructions S. 1040ez 2012 instructions source income if the transportation is between the United States and a U. 1040ez 2012 instructions S. 1040ez 2012 instructions possession. 1040ez 2012 instructions For nonresident aliens, this only applies to income derived from, or in connection with, an aircraft. 1040ez 2012 instructions For information on how U. 1040ez 2012 instructions S. 1040ez 2012 instructions source transportation income is taxed, see chapter 4. 1040ez 2012 instructions 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. 1040ez 2012 instructions However, see Activities to be performed outside the United States , later. 1040ez 2012 instructions For example, payments for research or study in the United States made by the United States, a noncorporate U. 1040ez 2012 instructions S. 1040ez 2012 instructions resident, or a domestic corporation, are from U. 1040ez 2012 instructions S. 1040ez 2012 instructions sources. 1040ez 2012 instructions Similar payments from a foreign government or foreign corporation are foreign source payments even though the funds may be disbursed through a U. 1040ez 2012 instructions S. 1040ez 2012 instructions agent. 1040ez 2012 instructions Payments made by an entity designated as a public international organization under the International Organizations Immunities Act are from foreign sources. 1040ez 2012 instructions Activities to be performed outside the United States. 1040ez 2012 instructions   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. 1040ez 2012 instructions S. 1040ez 2012 instructions source income. 1040ez 2012 instructions    These rules do not apply to amounts paid as salary or other compensation for services. 1040ez 2012 instructions See Personal Services, earlier, for the source rules that apply. 1040ez 2012 instructions 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. 1040ez 2012 instructions S. 1040ez 2012 instructions sources. 1040ez 2012 instructions That part is the amount attributable to earnings of the pension plan and the employer contributions made for services performed in the United States. 1040ez 2012 instructions This applies whether the distribution is made under a qualified or nonqualified stock bonus, pension, profit-sharing, or annuity plan (whether or not funded). 1040ez 2012 instructions If you performed services as an employee of the United States, you may receive a distribution from the U. 1040ez 2012 instructions S. 1040ez 2012 instructions Government under a plan, such as the Civil Service Retirement System, that is treated as a qualified pension plan. 1040ez 2012 instructions Your U. 1040ez 2012 instructions S. 1040ez 2012 instructions source income is the otherwise taxable amount of the distribution that is attributable to your total U. 1040ez 2012 instructions S. 1040ez 2012 instructions Government basic pay other than tax-exempt pay for services performed outside the United States. 1040ez 2012 instructions Rents or Royalties Your U. 1040ez 2012 instructions S. 1040ez 2012 instructions 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. 1040ez 2012 instructions U. 1040ez 2012 instructions S. 1040ez 2012 instructions 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. 1040ez 2012 instructions Real Property Real property is land and buildings and generally anything built on, growing on, or attached to land. 1040ez 2012 instructions 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. 1040ez 2012 instructions Natural resources. 1040ez 2012 instructions   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. 1040ez 2012 instructions For information on determining that part, see section 1. 1040ez 2012 instructions 863-1(b) of the regulations. 1040ez 2012 instructions Table 2-1. 1040ez 2012 instructions 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. 1040ez 2012 instructions S. 1040ez 2012 instructions or foreign corporation* Rents Location of property Royalties:   Natural resources Location of property Patents, copyrights, etc. 1040ez 2012 instructions 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. 1040ez 2012 instructions For more information, see section 1. 1040ez 2012 instructions 863-1(b) of the regulations. 1040ez 2012 instructions *Exceptions include: a) Dividends paid by a U. 1040ez 2012 instructions S. 1040ez 2012 instructions corporation are foreign source if the corporation elects the  American Samoa economic development credit. 1040ez 2012 instructions  b) Part of a dividend paid by a foreign corporation is U. 1040ez 2012 instructions S. 1040ez 2012 instructions source if at least 25% of the  corporation's gross income is effectively connected with a U. 1040ez 2012 instructions S. 1040ez 2012 instructions trade or business for the  3 tax years before the year in which the dividends are declared. 1040ez 2012 instructions Personal Property Personal property is property, such as machinery, equipment, or furniture, that is not real property. 1040ez 2012 instructions 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. 1040ez 2012 instructions 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. 1040ez 2012 instructions Tax home. 1040ez 2012 instructions   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. 1040ez 2012 instructions Your tax home is the place where you permanently or indefinitely work as an employee or a self-employed individual. 1040ez 2012 instructions 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. 1040ez 2012 instructions If you do not fit either of these categories, you are considered an itinerant and your tax home is wherever you work. 1040ez 2012 instructions Inventory property. 1040ez 2012 instructions   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. 1040ez 2012 instructions Income from the sale of inventory that you purchased is sourced where the property is sold. 1040ez 2012 instructions Generally, this is where title to the property passes to the buyer. 1040ez 2012 instructions For example, income from the sale of inventory in the United States is U. 1040ez 2012 instructions S. 1040ez 2012 instructions source income, whether you purchased it in the United States or in a foreign country. 1040ez 2012 instructions   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. 1040ez 2012 instructions For information on making this allocation, see section 1. 1040ez 2012 instructions 863-3 of the regulations. 1040ez 2012 instructions   These rules apply even if your tax home is not in the United States. 1040ez 2012 instructions Depreciable property. 1040ez 2012 instructions   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. 1040ez 2012 instructions You allocate this part of the gain to sources in the United States based on the ratio of U. 1040ez 2012 instructions S. 1040ez 2012 instructions depreciation adjustments to total depreciation adjustments. 1040ez 2012 instructions The rest of this part of the gain is considered to be from sources outside the United States. 1040ez 2012 instructions   For this purpose, “U. 1040ez 2012 instructions S. 1040ez 2012 instructions depreciation adjustments” are the depreciation adjustments to the basis of the property that are allowable in figuring taxable income from U. 1040ez 2012 instructions S. 1040ez 2012 instructions sources. 1040ez 2012 instructions 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. 1040ez 2012 instructions S. 1040ez 2012 instructions depreciation adjustments. 1040ez 2012 instructions But there are some exceptions for certain transportation, communications, and other property used internationally. 1040ez 2012 instructions   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. 1040ez 2012 instructions   A loss is sourced in the same way as the depreciation deductions were sourced. 1040ez 2012 instructions However, if the property was used predominantly in the United States, the entire loss reduces U. 1040ez 2012 instructions S. 1040ez 2012 instructions source income. 1040ez 2012 instructions   The basis of property usually means the cost (money plus the fair market value of other property or services) of property you acquire. 1040ez 2012 instructions Depreciation is an amount deducted to recover the cost or other basis of a trade or business asset. 1040ez 2012 instructions 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. 1040ez 2012 instructions A depreciation deduction is any deduction for depreciation or amortization or any other allowable deduction that treats a capital expenditure as a deductible expense. 1040ez 2012 instructions Intangible property. 1040ez 2012 instructions   Intangible property includes patents, copyrights, secret processes or formulas, goodwill, trademarks, trade names, or other like property. 1040ez 2012 instructions 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. 1040ez 2012 instructions This is the same as the source rule for gain from the sale of depreciable property. 1040ez 2012 instructions See Depreciable property , earlier, for details on how to apply this rule. 1040ez 2012 instructions   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. 1040ez 2012 instructions 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. 1040ez 2012 instructions If payments for goodwill do not depend on its productivity, use, or disposition, their source is the country in which the goodwill was generated. 1040ez 2012 instructions Sales through offices or fixed places of business. 1040ez 2012 instructions   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. 1040ez 2012 instructions S. 1040ez 2012 instructions source income. 1040ez 2012 instructions 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. 1040ez 2012 instructions   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. 1040ez 2012 instructions S. 1040ez 2012 instructions source income. 1040ez 2012 instructions The income is treated as U. 1040ez 2012 instructions S. 1040ez 2012 instructions source income if an income tax of less than 10% of the income from the sale is paid to a foreign country. 1040ez 2012 instructions 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. 1040ez 2012 instructions Community Income If you are married and you or your spouse is subject to the community property laws of a foreign country, a U. 1040ez 2012 instructions S. 1040ez 2012 instructions state, or a U. 1040ez 2012 instructions S. 1040ez 2012 instructions possession, you generally must follow those laws to determine the income of yourself and your spouse for U. 1040ez 2012 instructions S. 1040ez 2012 instructions tax purposes. 1040ez 2012 instructions 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. 1040ez 2012 instructions S. 1040ez 2012 instructions citizen or resident and you do not both choose to be treated as U. 1040ez 2012 instructions S. 1040ez 2012 instructions residents as explained in chapter 1. 1040ez 2012 instructions In these cases, you and your spouse must report community income as explained later. 1040ez 2012 instructions Earned income. 1040ez 2012 instructions   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. 1040ez 2012 instructions That spouse must report all of it on his or her separate return. 1040ez 2012 instructions Trade or business income. 1040ez 2012 instructions   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. 1040ez 2012 instructions That spouse must report all of it on his or her separate return. 1040ez 2012 instructions Partnership income (or loss). 1040ez 2012 instructions   A partner's distributive share of partnership income (or loss) is treated as the income (or loss) of the partner. 1040ez 2012 instructions The partner must report all of it on his or her separate return. 1040ez 2012 instructions Separate property income. 1040ez 2012 instructions   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. 1040ez 2012 instructions That spouse must report all of it on his or her separate return. 1040ez 2012 instructions Use the appropriate community property law to determine what is separate property. 1040ez 2012 instructions Other community income. 1040ez 2012 instructions   All other community income is treated as provided by the applicable community property laws. 1040ez 2012 instructions Prev  Up  Next   Home   More Online Publications
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QuickAlerts "More" e-file Benefits for Tax Professionals

Did you know the IRS has a service that alerts Electronic Return Originators (EROs), Software Developers and Transmitters to e-file happenings almost at the very moment they occur? If not, then you’ve been missing out on some very helpful benefits provided by the QuickAlerts Messaging System.  Get on board to become one of the thousands who receive “up-to-the-minute” information on e-file events.

What Is QuickAlerts?

QuickAlerts is a free online service that sends e-file messages, within seconds, to all "subscribers."  These messages will keep you up to date on events that affect e-file Transmitters, Software Developers and Authorized IRS e-file Providers. 

Why Should You Subscribe?

This is a "free service" with options and convenience rolled into one single package. What could be easier than a "one-time subscription" to receive important e-file information, continuously, until you unsubscribe?

What Are the Benefits?

Four QuickAlerts categories provide the e-file information that is certain to enhance your filing season.  

  • Alerts – Processing delays, programming problems, changes to any filing season procedures, Error Reject Code and Business Rules information
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  • General Notifications – Seminars, Conferences, e-file publication changes
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Choose the categories that suit your needs then sit back, relax and let the filing season news come to you through the convenience of email.  Never miss another important event.  Be informed of what you need to know, when you need to know it.   

Another benefit is the QuickAlerts Library.  The library stores previously posted messages.  If you've missed any of the filing season messages, click on the following link to see older and previously posted Quickalerts: QuickAlerts Library

How to Subscribe

It's simple.   Select this Subscription page link and select "Subscribe" at the bottom of that page. Enter your email address and follow the prompts until you are able to select the "QuickAlerts" subscription.  Then select the categories of QuickAlerts you want to receive.  If you are already an e-News subscriber, just access your e-News Subscription account, select "QuickAlerts" and select the QuickAlerts categories you want.  It's that simple! 

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If you have questions or problems with the subscription service, please contact support@govdelivery.com.  If you have another e-file related issue you wish to bring to our attention, you may send us an email at  QuickAlerts@irs.gov.

Please note that during the filing season, the QuickAlerts mailbox receives "volumes of email."   Responses may be delayed during this timeframe.  We truly apologize in advance for any inconvenience this might cause you and will work expeditiously to respond as quickly as possible.

 

Page Last Reviewed or Updated: 10-Feb-2014

The 1040ez 2012 Instructions

1040ez 2012 instructions Publication 225 - Introductory Material Table of Contents IntroductionOrdering forms and publications. 1040ez 2012 instructions Tax questions. 1040ez 2012 instructions Future Developments What's New for 2013 What's New for 2014 Reminders Introduction You are in the business of farming if you cultivate, operate, or manage a farm for profit, either as owner or tenant. 1040ez 2012 instructions A farm includes livestock, dairy, poultry, fish, fruit, and truck farms. 1040ez 2012 instructions It also includes plantations, ranches, ranges, and orchards. 1040ez 2012 instructions This publication explains how the federal tax laws apply to farming. 1040ez 2012 instructions Use this publication as a guide to figure your taxes and complete your farm tax return. 1040ez 2012 instructions If you need more information on a subject, get the specific IRS tax publication covering that subject. 1040ez 2012 instructions We refer to many of these free publications throughout this publication. 1040ez 2012 instructions See chapter 16 for information on ordering these publications. 1040ez 2012 instructions The explanations and examples in this publication reflect the Internal Revenue Service's interpretation of tax laws enacted by Congress, Treasury regulations, and court decisions. 1040ez 2012 instructions However, the information given does not cover every situation and is not intended to replace the law or change its meaning. 1040ez 2012 instructions This publication covers subjects on which a court may have made a decision more favorable to taxpayers than the interpretation of the Service. 1040ez 2012 instructions Until these differing interpretations are resolved by higher court decisions, or in some other way, this publication will continue to present the interpretation of the Service. 1040ez 2012 instructions The IRS Mission. 1040ez 2012 instructions   Provide America's taxpayers top quality service by helping them understand and meet their tax responsibilities and by applying the tax law with integrity and fairness to all. 1040ez 2012 instructions Comments and suggestions. 1040ez 2012 instructions   We welcome your comments about this publication and your suggestions for future editions. 1040ez 2012 instructions   You can write to us at the following address: Internal Revenue Service Business Forms and Publications Branch SE:W:CAR:MP:T:B 1111 Constitution Ave. 1040ez 2012 instructions NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. 1040ez 2012 instructions Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. 1040ez 2012 instructions   You can email us at taxforms@irs. 1040ez 2012 instructions gov. 1040ez 2012 instructions Please put “Publications Comment” on the subject line. 1040ez 2012 instructions You can also send us comments from www. 1040ez 2012 instructions irs. 1040ez 2012 instructions gov/formspubs/, select “Comment on Tax Forms and Publications” under “More Information. 1040ez 2012 instructions ”   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. 1040ez 2012 instructions Ordering forms and publications. 1040ez 2012 instructions   Visit www. 1040ez 2012 instructions irs. 1040ez 2012 instructions gov/formspubs/ to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. 1040ez 2012 instructions Internal Revenue Service 1201 N. 1040ez 2012 instructions Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. 1040ez 2012 instructions   If you have a tax question, check the information available on IRS. 1040ez 2012 instructions gov or call 1-800-829-1040. 1040ez 2012 instructions We cannot answer tax questions sent to either of the above addresses. 1040ez 2012 instructions Comments on IRS enforcement actions. 1040ez 2012 instructions   The Small Business and Agricultural Regulatory Enforcement Ombudsman and 10 Regional Fairness Boards were established to receive comments from small business about federal agency enforcement actions. 1040ez 2012 instructions The Ombudsman will annually evaluate the enforcement activities of each agency and rate its responsiveness to small business. 1040ez 2012 instructions If you wish to comment on the enforcement actions of the IRS, you can: Call 1-888-734-3247, Fax your comments to 202-481-5719, Write to Office of the National Ombudsman U. 1040ez 2012 instructions S. 1040ez 2012 instructions Small Business Administration 409 3rd Street, S. 1040ez 2012 instructions W. 1040ez 2012 instructions  Washington, DC 20416 Send an email to ombudsman@sba. 1040ez 2012 instructions gov, or Download the appraisal form at  www. 1040ez 2012 instructions sba. 1040ez 2012 instructions gov/ombudsman. 1040ez 2012 instructions Treasury Inspector General for Tax Administration. 1040ez 2012 instructions   If you want to confidentially report misconduct, waste, fraud, or abuse by an IRS employee, you can call 1-800-366-4484 (1-800-877-8339 for TTY/TDD users). 1040ez 2012 instructions You can remain anonymous. 1040ez 2012 instructions Farm tax classes. 1040ez 2012 instructions   Many state Cooperative Extension Services conduct farm tax workshops in conjunction with the IRS. 1040ez 2012 instructions Contact your county extension office for more information. 1040ez 2012 instructions Rural tax education website. 1040ez 2012 instructions   The Rural Tax Education website is a source for information concerning agriculturally related income and deductions and self-employment tax. 1040ez 2012 instructions The website is available for farmers and ranchers, other agricultural producers, Extension educators, and any one interested in learning about the tax side of the agricultural community. 1040ez 2012 instructions Members of the National Farm Income Tax Extension Committee are contributors for the website and the website is hosted by Utah State University Cooperative Extension. 1040ez 2012 instructions You can visit the website at www. 1040ez 2012 instructions ruraltax. 1040ez 2012 instructions org. 1040ez 2012 instructions Future Developments The IRS has created a page on IRS. 1040ez 2012 instructions gov for information about Publication 225, at  www. 1040ez 2012 instructions irs. 1040ez 2012 instructions gov/pub225. 1040ez 2012 instructions Information about recent developments affecting Publication 225 will be posted on that page. 1040ez 2012 instructions What's New for 2013 The following items highlight a number of administrative and tax law changes for 2013. 1040ez 2012 instructions They are discussed in more detail throughout the publication. 1040ez 2012 instructions Standard mileage rate. 1040ez 2012 instructions  For 2013, the standard mileage rate for the cost of operating your car, van, pickup, or panel truck for each mile of business use is 56. 1040ez 2012 instructions 5 cents. 1040ez 2012 instructions See chapter 4. 1040ez 2012 instructions Simplified method for business use of home deduction. 1040ez 2012 instructions  The IRS now provides a simplified method to determine your expenses for business use of your home. 1040ez 2012 instructions For more information, see Schedule C (Form 1040), Part II, and its instructions. 1040ez 2012 instructions See chapter 4. 1040ez 2012 instructions Increased section 179 expense deduction dollar limits. 1040ez 2012 instructions  The maximum amount you can elect to deduct for most section 179 property you placed in service in 2013 is $500,000. 1040ez 2012 instructions This limit is reduced by the amount by which the cost of the property placed in service during the tax year exceeds $2 million. 1040ez 2012 instructions See chapter 7. 1040ez 2012 instructions Extension of special depreciation allowance for certain qualified property acquired after December 31, 2007. 1040ez 2012 instructions  You may be able to take a 50% special depreciation allowance for certain qualified property acquired after December 31, 2007, and placed in service before January 1, 2014. 1040ez 2012 instructions See chapter 7. 1040ez 2012 instructions Expiration of the 3-year recovery period for certain race horses. 1040ez 2012 instructions . 1040ez 2012 instructions  The 3-year recovery period for race horses two years old or younger will expire for such horses placed in service after December 31, 2013. 1040ez 2012 instructions See chapter 7. 1040ez 2012 instructions Tax rates. 1040ez 2012 instructions  For tax years beginning in 2013, the social security part of the self-employment tax increases from 10. 1040ez 2012 instructions 4% to 12. 1040ez 2012 instructions 4%. 1040ez 2012 instructions As a result, the self-employment tax is increased from 13. 1040ez 2012 instructions 3% to 15. 1040ez 2012 instructions 3%. 1040ez 2012 instructions See chapter 12. 1040ez 2012 instructions Maximum net earnings. 1040ez 2012 instructions  The maximum net self-employment earnings subject to the social security part (12. 1040ez 2012 instructions 4%) of the self-employment tax increased to $113,700 for 2013. 1040ez 2012 instructions There is no maximum limit on earnings subject to the Medicare part (2. 1040ez 2012 instructions 9%). 1040ez 2012 instructions See chapter 12. 1040ez 2012 instructions Net investment income tax. 1040ez 2012 instructions  For tax years beginning in 2013, individuals, estates, and trusts may be subject to the net investment income tax (NIIT). 1040ez 2012 instructions If you are a trader in financial instruments and commodities and required to file Schedule C (Form 1040), your investment income (for purposes of the NIIT) may be reduced by your interest and other investment expenses to the extent those expenses are not used to reduce your self-employment income. 1040ez 2012 instructions For information about NIIT and the special rule for traders in financial instruments and commodities, see the Instructions for Form 8960. 1040ez 2012 instructions Social Security and Medicare Tax for 2013. 1040ez 2012 instructions  The employee tax rate for social security is 6. 1040ez 2012 instructions 2%. 1040ez 2012 instructions The employer tax rate for social security remains unchanged at 6. 1040ez 2012 instructions 2%. 1040ez 2012 instructions The social security wage base limit is $113,700. 1040ez 2012 instructions The Medicare tax rate is 1. 1040ez 2012 instructions 45% each for the employee and employer, unchanged from 2012. 1040ez 2012 instructions There is no wage base limit for Medicare tax. 1040ez 2012 instructions See chapter 13. 1040ez 2012 instructions Additional Medicare Tax. 1040ez 2012 instructions  For tax years beginning in 2013, a 0. 1040ez 2012 instructions 9% Additional Medicare Tax applies to your Medicare wages, Railroad Tax Act (RRTA) compensation, and self-employment income above a threshold amount. 1040ez 2012 instructions Use Form 8959, Additional Medicare Tax, to figure this tax. 1040ez 2012 instructions For more information, see the Instructions for Form 8959 and the Instructions for Schedule SE (Form 1040). 1040ez 2012 instructions In addition to withholding Medicare tax at 1. 1040ez 2012 instructions 45%, you must withhold a 0. 1040ez 2012 instructions 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. 1040ez 2012 instructions You are required to begin withholding Additional Medicare Tax in the pay period in which you pay wages in excess of $200,000 to an employee and continue to withhold it each pay period until the end of the calendar year. 1040ez 2012 instructions Additional Medicare Tax is only imposed on the employee. 1040ez 2012 instructions There is no employer share of Additional Medicare Tax. 1040ez 2012 instructions All wages that are subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 withholding threshold. 1040ez 2012 instructions For more information on what wages are subject to Medicare tax, see the chart, Special Rules for Various Types of Services and Payments, in section 15 of Publication 15 (Circular E), Employer's Tax Guide. 1040ez 2012 instructions For more information on Additional Medicare Tax, visit IRS. 1040ez 2012 instructions gov and enter “Additional Medicare Tax” in the search box. 1040ez 2012 instructions See chapter 13. 1040ez 2012 instructions Leave-Based donation programs to aid victims of Hurricane Sandy. 1040ez 2012 instructions  Under these programs, employees may donate their vacation, sick, or personal leave in exchange for employer cash payments made before January 1, 2014, to qualified tax-exempt organizations providing relief for the victims of Hurricane Sandy. 1040ez 2012 instructions The donated leave will not be included in the income or wages of the employee. 1040ez 2012 instructions The employer may deduct the cash payments as business expenses or charitable contributions. 1040ez 2012 instructions See chapter 13. 1040ez 2012 instructions Work opportunity tax credit for qualified tax-exempt organizations hiring qualified veterans extended. 1040ez 2012 instructions  The work opportunity tax credit is now available for eligible unemployed veterans who begin work before January 1, 2014. 1040ez 2012 instructions Qualified tax-exempt organizations that hire eligible unemployed veterans can claim the work opportunity tax credit against their payroll tax liability using Form 5884-C, Work Opportunity Credit for Qualified Tax-Exempt Organizations Hiring Qualified Veterans. 1040ez 2012 instructions For more information, visit IRS. 1040ez 2012 instructions gov and enter “work opportunity credit” in the search box. 1040ez 2012 instructions See chapter 13. 1040ez 2012 instructions Estimated tax. 1040ez 2012 instructions  For tax years beginning in 2013, the Net Investment Income Tax (NIIT) may need to be included when calculating your estimated tax. 1040ez 2012 instructions Also, when figuring your estimated tax, you may need to include the 0. 1040ez 2012 instructions 9% Additional Medicare Tax applicable to Medicare wages, Railroad Retirement Tax Act (RRTA) compensation, and self-employment income above the threshold amount based on your filing status. 1040ez 2012 instructions For more information, see Publication 505. 1040ez 2012 instructions What's New for 2014 Maximum net earnings. 1040ez 2012 instructions  The maximum net self-employment earnings subject to the social security part of the self-employment tax for 2014 will be discussed in the 2013 Publication 334. 1040ez 2012 instructions See chapter 12. 1040ez 2012 instructions Social security and Medicare tax for 2014. 1040ez 2012 instructions  The employee and employer tax rates for social security and the maximum amount of wages subject to social security tax for 2014 will be discussed in Publication 51 (Circular A), Agricultural Employer's Tax Guide (For use in 2014). 1040ez 2012 instructions The Medicare tax rate for 2014 will also be discussed in Publication 51 (Circular A) (For use in 2014). 1040ez 2012 instructions There is no limit on the amount of wages subject to Medicare tax. 1040ez 2012 instructions See chapter 13. 1040ez 2012 instructions Reminders The following reminders and other items may help you file your tax return. 1040ez 2012 instructions   IRS e-file (Electronic Filing) You can file your tax returns electronically using an IRS e-file option. 1040ez 2012 instructions The benefits of IRS e-file include faster refunds, increased accuracy, and acknowledgment of IRS receipt of your return. 1040ez 2012 instructions You can use one of the following IRS e-file options. 1040ez 2012 instructions Use an authorized IRS e-file provider. 1040ez 2012 instructions Use a personal computer. 1040ez 2012 instructions Visit a Volunteer Income Tax Assistance (VITA) or Tax Counseling for the Elderly (TCE) site. 1040ez 2012 instructions For details on these fast filing methods, see your income tax package. 1040ez 2012 instructions Principal agricultural activity codes. 1040ez 2012 instructions  You must enter on line B of Schedule F (Form 1040) a code that identifies your principal agricultural activity. 1040ez 2012 instructions It is important to use the correct code because this information will identify market segments of the public for IRS Taxpayer Education programs. 1040ez 2012 instructions The U. 1040ez 2012 instructions S. 1040ez 2012 instructions Census Bureau also uses this information for its economic census. 1040ez 2012 instructions See the list of Principal Agricultural Activity Codes on page 2 of Schedule F (Form 1040). 1040ez 2012 instructions Publication on employer identification numbers (EIN). 1040ez 2012 instructions  Publication 1635, Understanding Your Employer Identification Number, provides general information on employer identification numbers. 1040ez 2012 instructions Topics include how to apply for an EIN and how to complete Form SS-4. 1040ez 2012 instructions Change of address. 1040ez 2012 instructions  If you change your home address, you should use Form 8822, Change of Addres, to notify the IRS. 1040ez 2012 instructions If you change your business address, you should use Form 8822-B, Change of Address or Responsible Party — Business, to notify the IRS. 1040ez 2012 instructions Be sure to include your suite, room, or other unit number. 1040ez 2012 instructions Reportable transactions. 1040ez 2012 instructions  You must file Form 8886, Reportable Transaction Disclosure Statement, to report certain transactions. 1040ez 2012 instructions You may have to pay a penalty if you are required to file Form 8886 but do not do so. 1040ez 2012 instructions Reportable transactions include (1) transactions the same as or substantially similar to tax avoidance transactions identified by the IRS, (2) transactions offered to you under conditions of confidentiality and for which you paid an advisor a minimum fee, (3) transactions for which you have or a related party has a right to a full or partial refund of fees if all or part of the intended tax consequences from the transaction are not sustained, (4) transactions that result in losses of at least $2 million in any single year or $4 million in any combination of years, and (5) transactions with asset holding periods of 45 days or less and that result in a tax credit of more than $250,000. 1040ez 2012 instructions For more information, see the Instructions for Form 8886. 1040ez 2012 instructions Form W-4 for 2014. 1040ez 2012 instructions  You should make new Forms W-4 available to your employees and encourage them to check their income tax withholding for 2014. 1040ez 2012 instructions Those employees who owed a large amount of tax or received a large refund for 2013 may need to submit a new Form W-4. 1040ez 2012 instructions See Publication 919, How Do I Adjust My Tax Withholding. 1040ez 2012 instructions Form 1099-MISC. 1040ez 2012 instructions  Generally, file Form 1099-MISC if you pay at least $600 in rents, services, and other miscellaneous payments in your farming business to an individual (for example, an accountant, an attorney, or a veterinarian) who is not your employee. 1040ez 2012 instructions Limited Liability Company (LLC). 1040ez 2012 instructions  For purposes of this publication, a limited liability company (LLC) is a business entity organized in the United States under state law. 1040ez 2012 instructions Unlike a partnership, all of the members of an LLC have limited personal liability for its debts. 1040ez 2012 instructions An LLC may be classified for federal income tax purposes as a partnership, corporation, or an entity disregarded as separate from its owner by applying the rules in Regulations section 301. 1040ez 2012 instructions 7701-3. 1040ez 2012 instructions See Publication 3402 for more details. 1040ez 2012 instructions Photographs of missing children. 1040ez 2012 instructions  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. 1040ez 2012 instructions Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. 1040ez 2012 instructions You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. 1040ez 2012 instructions Prev  Up  Next   Home   More Online Publications