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1040nr Filing

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1040nr Filing

1040nr filing 8. 1040nr filing   Paying Tax Through Withholding or Estimated Tax Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Notification of Alien Status Withholding From CompensationWithholding on Wages Withholding on Pensions Withholding on Tip Income Independent Contractors Withholding From Other IncomeTax Withheld on Partnership Income Withholding on Scholarships and Fellowship Grants Income Entitled to Tax Treaty BenefitsStudents, teachers, and researchers. 1040nr filing Tax Withheld on Real Property Sales Social Security and Medicare TaxesStudents and Exchange Visitors Agricultural Workers Self-Employment Tax International Social Security Agreements Estimated Tax Form 1040-ES (NR)Fiscal year. 1040nr filing Introduction This chapter discusses how to pay your U. 1040nr filing S. 1040nr filing income tax as you earn or receive income during the year. 1040nr filing In general, the federal income tax is a pay as you go tax. 1040nr filing There are two ways to pay as you go. 1040nr filing Withholding. 1040nr filing If you are an employee, your employer probably withholds income tax from your pay. 1040nr filing Tax may also be withheld from certain other income—including pensions, bonuses, commissions, and gambling winnings. 1040nr filing In each case, the amount withheld is paid to the U. 1040nr filing S. 1040nr filing Treasury in your name. 1040nr filing Estimated tax. 1040nr filing If you do not pay your tax through withholding, or do not pay enough tax that way, you might have to pay estimated tax. 1040nr filing People who are in business for themselves generally will have to pay their tax this way. 1040nr filing You may have to pay estimated tax if you receive income such as dividends, interest, rent, and royalties. 1040nr filing Estimated tax is used to pay not only income tax, but self-employment tax and alternative minimum tax as well. 1040nr filing Topics - This chapter discusses: How to notify your employer of your alien status, Income subject to withholding of income tax, Exemptions from withholding, Social security and Medicare taxes, and Estimated tax rules. 1040nr filing Useful Items - You may want to see: Publication 515 Withholding of Tax on Nonresident Aliens and Foreign Entities 901 U. 1040nr filing S. 1040nr filing Tax Treaties Form (and Instructions) W-4 Employee's Withholding Allowance Certificate W-8BEN Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (Individuals) W-8ECI Certificate of Foreign Person's Claim That Income Is Effectively Connected With the Conduct of a Trade or Business in the United States W-9 Request for Taxpayer Identification Number and Certification 1040-ES (NR) U. 1040nr filing S. 1040nr filing Estimated Tax for Nonresident Alien Individuals 8233 Exemption From Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual 8288-B Application for Withholding Certificate for Dispositions by Foreign Persons of U. 1040nr filing S. 1040nr filing Real Property Interests 13930 Application for Central Withholding Agreement See chapter 12 for information about getting these publications and forms. 1040nr filing Notification of Alien Status You must let your employer know whether you are a resident or a nonresident alien so your employer can withhold the correct amount of tax from your wages. 1040nr filing If you are a resident alien under the rules discussed in chapter 1, you must file Form W-9 or a similar statement with your employer. 1040nr filing If you are a nonresident alien under those rules, you must furnish to your employer Form 8233 or Form W-8BEN, establishing that you are a foreign person, or Form W-4, establishing that your compensation is subject to graduated withholding at the same rates as resident aliens or U. 1040nr filing S. 1040nr filing citizens. 1040nr filing If you are a resident alien and you receive income other than wages (such as dividends and royalties) from sources within the United States, file Form W-9 or similar statement with the withholding agent (generally, the payer of the income) so the agent will not withhold tax on the income at the 30% (or lower treaty) rate. 1040nr filing If you receive this type of income as a nonresident alien, file Form W-8BEN with the withholding agent so that the agent will withhold tax at the 30% (or lower treaty) rate. 1040nr filing However, if the income is effectively connected with a U. 1040nr filing S. 1040nr filing trade or business, file Form W-8ECI instead. 1040nr filing Withholding From Compensation The following discussion generally applies only to nonresident aliens. 1040nr filing Tax is withheld from resident aliens in the same manner as U. 1040nr filing S. 1040nr filing citizens. 1040nr filing Wages and other compensation paid to a nonresident alien for services performed as an employee are usually subject to graduated withholding at the same rates as resident aliens and U. 1040nr filing S. 1040nr filing citizens. 1040nr filing Therefore, your compensation, unless it is specifically excluded from the term “wages” by law, or is exempt from tax by treaty, is subject to graduated withholding. 1040nr filing Withholding on Wages If you are an employee and you receive wages subject to graduated withholding, you will be required to fill out a Form W-4. 1040nr filing Also fill out Form W-4 for a scholarship or fellowship grant to the extent it represents payment for past, present, or future services and for which you are not claiming a tax treaty withholding exemption on Form 8233 (discussed later under Income Entitled to Tax Treaty Benefits). 1040nr filing These are services you are required to perform as an employee and as a condition of receiving the scholarship or fellowship (or tuition reduction). 1040nr filing Nonresident aliens should fill out Form W-4 using the following instructions instead of the instructions on the Form W-4. 1040nr filing This is because of the restrictions on a nonresident alien's filing status, the limited number of personal exemptions a nonresident alien is allowed, and because a nonresident alien cannot claim the standard deduction. 1040nr filing Enter your social security number (SSN) on line 2. 1040nr filing Do not enter an individual taxpayer identification number (ITIN). 1040nr filing Check only “Single” marital status on line 3 (regardless of your actual marital status). 1040nr filing Claim only one allowance on line 5, unless you are a resident of Canada, Mexico, or South Korea, or a U. 1040nr filing S. 1040nr filing national. 1040nr filing Write “Nonresident Alien” or “NRA” on the dotted line on line 6. 1040nr filing You can request additional withholding on line 6 at your option. 1040nr filing Do not claim “Exempt” withholding status on line 7. 1040nr filing A U. 1040nr filing S. 1040nr filing national is an individual who, although not a U. 1040nr filing S. 1040nr filing citizen, owes his or her allegiance to the United States. 1040nr filing U. 1040nr filing S. 1040nr filing nationals include American Samoans, and Northern Mariana Islanders who chose to become U. 1040nr filing S. 1040nr filing nationals instead of U. 1040nr filing S. 1040nr filing citizens. 1040nr filing See Withholding on Scholarships and Fellowship Grants later, for how to fill out Form W-4 if you receive a U. 1040nr filing S. 1040nr filing source scholarship or fellowship grant that is not a payment for services. 1040nr filing Students and business apprentices from India. 1040nr filing   If you are eligible for the benefits of Article 21(2) of the United States-India Income Tax Treaty, you may claim an additional withholding allowance for the standard deduction. 1040nr filing You can claim an additional withholding allowance for your spouse only if your spouse will have no gross income for 2013 and cannot be claimed as a dependent on another U. 1040nr filing S. 1040nr filing taxpayer's 2013 return. 1040nr filing You may also claim an additional withholding allowance for each of your dependents not admitted to the United States on “F-2,” “J-2,” or “M-2” visas if they meet the same rules that apply to U. 1040nr filing S. 1040nr filing citizens. 1040nr filing Household employees. 1040nr filing   If you work as a household employee, your employer does not have to withhold income tax. 1040nr filing However, you may agree to voluntary income tax withholding by filing a Form W-4 with your employer. 1040nr filing The agreement goes into effect when your employer accepts the agreement by beginning the withholding. 1040nr filing You or your employer may end the agreement by letting the other know in writing. 1040nr filing Agricultural workers. 1040nr filing   If you are an agricultural worker on an H-2A visa, your employer does not have to withhold income tax. 1040nr filing However, your employer will withhold income tax only if you and your employer agree to withhold. 1040nr filing In that case, you must provide your employer with a properly completed Form W-4. 1040nr filing You can find more information about not having tax withheld at www. 1040nr filing irs. 1040nr filing gov/Individuals/International-Taxpayers/Foreign-Agricultural-Workers. 1040nr filing Wages Exempt From Withholding Wages that are exempt from U. 1040nr filing S. 1040nr filing income tax under an income tax treaty are generally exempt from withholding. 1040nr filing For information on how to claim this exemption from withholding, see Income Entitled to Tax Treaty Benefits , later. 1040nr filing Wages paid to aliens who are residents of American Samoa, Canada, Mexico, Puerto Rico, or the U. 1040nr filing S. 1040nr filing Virgin Islands may be exempt from withholding. 1040nr filing The following paragraphs explain these exemptions. 1040nr filing Residents of Canada or Mexico engaged in transportation-related employment. 1040nr filing   Certain residents of Canada or Mexico who enter or leave the United States at frequent intervals are not subject to withholding on their wages. 1040nr filing These persons either: Perform duties in transportation service between the United States and Canada or Mexico, or Perform duties connected to the construction, maintenance, or operation of a waterway, viaduct, dam, or bridge crossed by, or crossing, the boundary between the United States and Canada or the boundary between the United States and Mexico. 1040nr filing    This employment is subject to withholding of social security and Medicare taxes unless the services are performed for a railroad. 1040nr filing   To qualify for the exemption from withholding during a tax year, a Canadian or Mexican resident must give the employer a statement in duplicate with name, address, and identification number, certifying that the resident: Is not a U. 1040nr filing S. 1040nr filing citizen or resident, Is a resident of Canada or Mexico, whichever applies, and Expects to perform duties previously described during the tax year in question. 1040nr filing   The statement can be in any form, but it must be dated and signed by the employee and must include a written declaration that it is made under the penalties of perjury. 1040nr filing Residents of American Samoa and Puerto Rico. 1040nr filing   If you are a nonresident alien employee who is a resident of American Samoa or Puerto Rico, wages for services performed in American Samoa or Puerto Rico are generally not subject to withholding unless you are an employee of the United States or any of its agencies in American Samoa or Puerto Rico. 1040nr filing Residents of the U. 1040nr filing S. 1040nr filing Virgin Islands. 1040nr filing   Nonresident aliens who are bona fide residents of the U. 1040nr filing S Virgin Islands are not subject to withholding of U. 1040nr filing S. 1040nr filing tax on income earned while temporarily employed in the United States. 1040nr filing This is because those persons pay their income tax to the U. 1040nr filing S. 1040nr filing Virgin Islands. 1040nr filing To avoid having tax withheld on income earned in the United States, bona fide residents of the U. 1040nr filing S. 1040nr filing Virgin Islands should write a letter, in duplicate, to their employers, stating that they are bona fide residents of the U. 1040nr filing S. 1040nr filing Virgin Islands and expect to pay tax on all income to the U. 1040nr filing S. 1040nr filing Virgin Islands. 1040nr filing Withholding on Pensions If you receive a pension as a result of personal services performed in the United States, the pension income is subject to the 30% (or lower treaty) rate of withholding. 1040nr filing You may, however, have tax withheld at graduated rates on the portion of the pension that arises from the performance of services in the United States after December 31, 1986. 1040nr filing You must fill out Form W-8BEN and give it to the withholding agent or payer before the income is paid or credited to you. 1040nr filing Withholding on Tip Income Tips you receive during the year for services performed in the United States are subject to U. 1040nr filing S. 1040nr filing income tax. 1040nr filing Include them in taxable income. 1040nr filing In addition, tips received while working for one employer, amounting to $20 or more in a month, are subject to graduated withholding. 1040nr filing Independent Contractors If there is no employee-employer relationship between you and the person for whom you perform services, your compensation is subject to the 30% (or lower treaty) rate of withholding. 1040nr filing However, if you are engaged in a trade or business in the United States during the tax year, your compensation for personal services as an independent contractor (independent personal services) may be entirely or partly exempt from withholding if you reach an agreement with the Internal Revenue Service on the amount of withholding required. 1040nr filing An agreement that you reach with the IRS regarding withholding from your compensation for independent personal services is effective for payments covered by the agreement after it is agreed to by all parties. 1040nr filing You must agree to timely file an income tax return for the current tax year. 1040nr filing Central withholding agreements. 1040nr filing   If you are a nonresident alien entertainer or athlete performing or participating in athletic events in the United States, you may be able to enter into a withholding agreement with the IRS for reduced withholding provided certain requirements are met. 1040nr filing Under no circumstances will such a withholding agreement reduce taxes withheld to less than the anticipated amount of income tax liability. 1040nr filing   File Form 13930 and the required attachments with the IRS to request a central withholding agreement. 1040nr filing Either you or your authorized representative can file the form. 1040nr filing It should be sent to the IRS at least 45 days before the tour begins or the event occurs. 1040nr filing Exceptions will be considered on a case by case basis. 1040nr filing   For more information on the CWA program, go to www. 1040nr filing irs. 1040nr filing gov/Individuals/International-Taxpayers/Central-Withholding-Agreements. 1040nr filing Final payment exemption. 1040nr filing   Your final payment of compensation during the tax year for independent personal services may be entirely or partly exempt from withholding. 1040nr filing This exemption is available only once during your tax year and applies to a maximum of $5,000 of compensation. 1040nr filing To obtain this exemption, you or your agent must give the following statements and information to the Commissioner or his delegate. 1040nr filing A statement by each withholding agent from whom you have received gross income effectively connected with a trade or business in the United States during the tax year, showing the amount of income paid and the tax withheld. 1040nr filing Each statement must be signed by the withholding agent and verified by a declaration that it is made under penalties of perjury. 1040nr filing A statement by the withholding agent from whom you expect to receive the final payment of compensation, showing the amount of the payment and the amount of tax that would be withheld if a final payment exemption were not granted. 1040nr filing This statement must also be signed by the withholding agent and verified by a declaration that it is made under penalties of perjury. 1040nr filing A statement by you that you do not intend to receive any other income effectively connected with a trade or business in the United States during the current tax year. 1040nr filing The amount of tax that has been withheld or paid under any other provision of the Internal Revenue Code or regulations for any income effectively connected with your trade or business in the United States during the current tax year. 1040nr filing The amount of your outstanding tax liabilities, if any, including interest and penalties, from the current tax year or prior tax periods. 1040nr filing Any provision of an income tax treaty under which a partial or complete exemption from withholding may be claimed, the country of your residence, and a statement of sufficient facts to justify an exemption under the treaty. 1040nr filing A statement signed by you, and verified by a declaration that it is made under penalties of perjury, that all the information given is true and that to your knowledge no relevant information has been omitted. 1040nr filing   If satisfied with the information, the IRS will determine the amount of your tentative income tax for the tax year on gross income effectively connected with your trade or business in the United States. 1040nr filing Ordinary and necessary business expenses can be taken into account if proven to the satisfaction of the Commissioner or his delegate. 1040nr filing   The Commissioner or his delegate will send you a letter, directed to the withholding agent, showing the amount of the final payment of compensation that is exempt from withholding and the amount that can be paid to you because of the exemption. 1040nr filing You must give two copies of the letter to the withholding agent and must also attach a copy of the letter to your income tax return for the tax year for which the exemption is effective. 1040nr filing Allowance for Personal Exemption Withholding on payments for independent personal services is generally based on the amount of your compensation payment minus the value of one exemption ($3,950 for 2014). 1040nr filing To determine the income for independent personal services performed in the United States to which the 30% (or lower treaty) rate will apply, you are allowed one personal exemption if you are not a U. 1040nr filing S. 1040nr filing national and are not a resident of Canada, Mexico, or South Korea. 1040nr filing For purposes of 30% withholding, the exemption is prorated at $10. 1040nr filing 82 a day in 2014 for the period that labor or personal services are performed in the United States. 1040nr filing To claim an exemption from withholding on the personal exemption amount, fill out the applicable parts of Form 8233 and give it to the withholding agent. 1040nr filing Example. 1040nr filing Eric Johannsen, who is a resident of Country X worked under a contract with a U. 1040nr filing S. 1040nr filing firm (not as an employee) in the United States for 100 days during 2014 before returning to his country. 1040nr filing He earned $6,000 for the services performed (not considered wages) in the United States. 1040nr filing Eric is married and has three dependent children. 1040nr filing His wife is not employed and has no income subject to U. 1040nr filing S. 1040nr filing tax. 1040nr filing The amount of the personal exemption to be allowed against the income for his personal services performed within the United States in 2014 is $1,082 (100 days × $10. 1040nr filing 82), and withholding at 30% is applied against the balance. 1040nr filing Thus, $1,475. 1040nr filing 40 in tax is withheld from Eric's earnings (30% of $4,918 ($6,000 − $1,082). 1040nr filing U. 1040nr filing S. 1040nr filing nationals or residents of Canada, Mexico, or South Korea. 1040nr filing   If you are a nonresident alien who is a resident of Canada, Mexico, or South Korea, or who is a national of the United States, you are subject to the same 30% withholding on your compensation for independent personal services performed in the United States. 1040nr filing However, if you are a U. 1040nr filing S. 1040nr filing national or a resident of Canada or Mexico, you are allowed the same personal exemptions as U. 1040nr filing S. 1040nr filing citizens. 1040nr filing For the 30% (or lower treaty) rate withholding, you can take $10. 1040nr filing 82 per day for each allowable exemption in 2014. 1040nr filing If you are a resident of South Korea, you are allowed personal exemptions for yourself and for your spouse and children who live with you in the United States at any time during the tax year. 1040nr filing However, the additional exemptions for your spouse and children must be further prorated as explained in chapter 5 under Exemptions . 1040nr filing Students and business apprentices from India. 1040nr filing   If you are eligible for the benefits of Article 21(2) of the United States-India Income Tax Treaty, you are allowed an exemption for your spouse only if your spouse will have no gross income for 2014 and cannot be claimed as a dependent on another U. 1040nr filing S. 1040nr filing taxpayer's 2014 return. 1040nr filing You are also allowed an exemption for each dependent not admitted to the United States on “F-2,” “J-2,” or “M-2” visas if they meet the same rules that apply to U. 1040nr filing S. 1040nr filing citizens. 1040nr filing For the 30% (or lower treaty rate) withholding on compensation for independent personal services performed in the United States, you are allowed $10. 1040nr filing 82 per day for each allowable exemption in 2014. 1040nr filing Refund of Taxes Withheld in Error Multi-level marketing. 1040nr filing   If you are a distributor for a multi-level marketing company who had taxes withheld in error, file a U. 1040nr filing S. 1040nr filing income tax return (Form 1040NR, Form 1040NR-EZ, or Form 1120-F) or, if a tax return has already been filed, a claim for refund (Form 1040X or amended Form 1120-F) to recover the amount withheld in error. 1040nr filing You must also attach to the U. 1040nr filing S. 1040nr filing income tax return or claim for refund supporting information that includes, but is not limited to, the following items. 1040nr filing A copy of your Form W-2, Form 1042-S, or Form 1099 to prove the amount of taxes withheld. 1040nr filing A statement explaining why income reported on your Form W-2, Form 1042-S, or Form 1099 is not subject to U. 1040nr filing S. 1040nr filing taxation. 1040nr filing A statement listing all the dates you entered and left the United States during the taxable year. 1040nr filing If the compensation is multi-year compensation, the statement must list all the dates you entered and left the United States during each of the taxable years to which the compensation is attributable. 1040nr filing A copy of any documents or records that show the number of days you actually were present in the United States during the years listed. 1040nr filing A statement providing: (a) the number of days (or unit of time less than a day, if appropriate) that personal services were performed in the United States in connection with recruiting, training, and supporting your lower-tier distributors; and (b) the total number of days (or unit of time less than a day, if appropriate) that personal services were performed globally in connection with recruiting, training, and supporting your lower-tier distributors. 1040nr filing Any further relevant document or record supporting your claim that the taxes were withheld in error. 1040nr filing Withholding From Other Income Other income subject to 30% withholding generally includes fixed or determinable income such as interest (other than portfolio interest), dividends, pensions and annuities, and gains from certain sales and exchanges, discussed in chapter 4. 1040nr filing It also includes 85% of social security benefits paid to nonresident aliens. 1040nr filing Refund of taxes withheld in error on social security benefits paid to resident aliens. 1040nr filing   Social security benefits paid to a lawful permanent resident (green card holder) are not subject to 30% withholding. 1040nr filing For U. 1040nr filing S. 1040nr filing income tax purposes, green card holders continue to be resident aliens until their lawful permanent resident status under immigration laws is either taken away or is administratively or judicially determined to have been abandoned. 1040nr filing See Green Card Test in chapter 1. 1040nr filing If you are a green card holder and tax was withheld in error on your social security benefits because you have a foreign address, the withholding tax is refundable by the Social Security Administration (SSA) or the IRS. 1040nr filing SSA will refund taxes erroneously withheld if the refund can be processed during the same calendar year in which the tax was withheld. 1040nr filing If SSA cannot refund the taxes withheld, you must file a Form 1040 or 1040A with the Department of the Treasury, Internal Revenue Service Center, Austin, TX 73301 to determine if you are entitled to a refund. 1040nr filing You must also attach the following to your Form 1040 or 1040A. 1040nr filing A copy of Form SSA-1042S, Social Security Benefit Statement. 1040nr filing A copy of the “green card. 1040nr filing ” A signed declaration that includes the following statements: The SSA should not have withheld income tax from my social security benefits because I am a U. 1040nr filing S. 1040nr filing lawful permanent resident and my green card has been neither revoked nor administratively or judicially determined to have been abandoned. 1040nr filing I am filing a U. 1040nr filing S. 1040nr filing income tax return for the tax year as a resident alien reporting all of my worldwide income. 1040nr filing I have not claimed benefits for the tax year under an income tax treaty as the resident of a country other than the United States. 1040nr filing Other income not subject to withholding of 30% (or lower treaty) rate. 1040nr filing   The following income is not subject to withholding at the 30% (or lower treaty) rate if you file Form W-8ECI with the payer of the income. 1040nr filing Income (other than compensation) that is effectively connected with your U. 1040nr filing S. 1040nr filing trade or business. 1040nr filing Income from real property that you choose to treat as effectively connected with a U. 1040nr filing S. 1040nr filing trade or business. 1040nr filing See Income From Real Property in chapter 4 for details about this choice. 1040nr filing   Special rules for withholding on partnership income, scholarships, and fellowships are explained next. 1040nr filing Tax Withheld on Partnership Income If you are a foreign partner in a U. 1040nr filing S. 1040nr filing or foreign partnership, the partnership will withhold tax on your share of effectively connected taxable income (ECTI) from the partnership. 1040nr filing You may be able to reduce your ECTI subject to withholding by certain partner-level deductions. 1040nr filing Generally, you must use Form 8804-C for this purpose. 1040nr filing See the Instructions for Form 8804-C for more information. 1040nr filing The withholding rate on your share of effectively connected income is generally the highest rate of tax specified under section 1 of the Code (39. 1040nr filing 6% for 2014). 1040nr filing However, the partnership may withhold at the highest rate that applies to a particular type of income allocable to you if you gave the partnership the appropriate documentation. 1040nr filing Long-term capital gain is an example of a particular type of income to which the highest tax rate applies. 1040nr filing Claim the tax withheld as a credit on your 2014 Form 1040NR. 1040nr filing The partnership will give you a statement on Form 8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax, showing the tax withheld. 1040nr filing A partnership that is publicly traded will withhold tax on your actual distributions of effectively connected income. 1040nr filing In this case the partnership will give you a statement on Form 1042-S, Foreign Person's U. 1040nr filing S. 1040nr filing Source Income Subject to Withholding. 1040nr filing Withholding on Scholarships and Fellowship Grants There is no withholding on a qualified scholarship received by a candidate for a degree. 1040nr filing See chapter 3. 1040nr filing If you are a nonresident alien student or grantee with an “F,” “J,” “M,” or “Q” visa and you receive a U. 1040nr filing S. 1040nr filing source grant or scholarship that is not fully exempt, the withholding agent (usually the payer of the scholarship) withholds tax at 14% (or lower treaty rate) of the taxable part of the grant or scholarship that is not a payment for services. 1040nr filing However, if you are not a candidate for a degree and the grant does not meet certain requirements, tax will be withheld at the 30% (or lower treaty) rate. 1040nr filing Any part of a scholarship or fellowship grant that is a payment for services is subject to graduated withholding as discussed earlier under Withholding on Wages. 1040nr filing Alternate Withholding Procedure Your withholding agent may choose to use an alternate procedure by asking you to fill out Form W-4 and the Personal Allowances Worksheet (attached to Form W-4). 1040nr filing Use the following instructions instead of the Form W-4 instructions to complete the worksheet. 1040nr filing Line A. 1040nr filing   Enter the total of the following amounts on line A. 1040nr filing Personal exemption. 1040nr filing   Include the prorated part of your allowable personal exemption. 1040nr filing Figure the amount by multiplying the number of days you expect to be in the United States in 2014 by the daily exemption amount ($10. 1040nr filing 82). 1040nr filing Expenses. 1040nr filing   Include expenses that will be deductible on your return. 1040nr filing These include away-from-home expenses (meals, lodging, and transportation), certain state and local income taxes, charitable contributions, and casualty losses, discussed earlier under Itemized Deductions in chapter 5. 1040nr filing They also include business expenses, moving expenses, and the IRA deduction discussed under Deductions in chapter 5. 1040nr filing Nontaxable grant or scholarship. 1040nr filing   Include the part of your grant or scholarship that is not taxable under U. 1040nr filing S. 1040nr filing law or under a tax treaty. 1040nr filing Line B. 1040nr filing   Enter -0- unless the following paragraph applies to you. 1040nr filing   If you are a student who qualifies under Article 21(2) of the United States-India Income Tax Treaty, and you are not claiming deductions for away-from-home expenses or other itemized deductions (discussed earlier), enter the standard deduction on line B. 1040nr filing The standard deduction amount for 2013 is $6,100. 1040nr filing Lines C and D. 1040nr filing   Enter -0- on both lines unless the following paragraphs apply to you. 1040nr filing   If you are a resident of Canada, Mexico, South Korea, or a U. 1040nr filing S. 1040nr filing national, an additional daily exemption amount may be allowed for your spouse and each of your dependents. 1040nr filing   If you are a resident of India who is eligible for the benefits of Article 21(2) of the United States-India Income Tax Treaty, you can claim an additional daily exemption amount for your spouse only if your spouse will have no gross income for 2014 and cannot be claimed as a dependent on another U. 1040nr filing S. 1040nr filing taxpayer's 2014 return. 1040nr filing You can also claim an additional amount for each of your dependents not admitted to the United States on “F-2,” “J-2,” or “M-2” visas if they meet the same rules that apply to U. 1040nr filing S. 1040nr filing citizens. 1040nr filing   Enter any additional amount for your spouse on line C. 1040nr filing Enter any additional amount for your dependents on line D. 1040nr filing Lines E, F, and G. 1040nr filing   No entries should be made on lines E, F, and G. 1040nr filing Line H. 1040nr filing   Add the amounts on lines A through D and enter the total on line H. 1040nr filing Form W-4. 1040nr filing   Complete lines 1 through 4 of Form W-4. 1040nr filing Sign and date the form and give it with the Personal Allowances Worksheet to your withholding agent. 1040nr filing   If you file a Form W-4 to reduce or eliminate the withholding on your scholarship or grant, you must file an annual U. 1040nr filing S. 1040nr filing income tax return to be allowed the exemptions and deductions you claimed on that form. 1040nr filing If you are in the United States during more than one tax year, you must attach a statement to your yearly Form W-4 indicating that you have filed a U. 1040nr filing S. 1040nr filing income tax return for the previous year. 1040nr filing If you have not been in the United States long enough to be required to file a return, you must attach a statement to your Form W-4 saying you will file a U. 1040nr filing S. 1040nr filing income tax return when required. 1040nr filing After the withholding agent has accepted your Form W-4, tax will be withheld on your scholarship or grant at the graduated rates that apply to wages. 1040nr filing The gross amount of the income is reduced by the amount on line H of the worksheet and the withholding tax is figured on the remainder. 1040nr filing You will receive a Form 1042-S from the withholding agent (usually the payer of your grant) showing the gross amount of your taxable scholarship or fellowship grant less the withholding allowance amount, the tax rate, and the amount of tax withheld. 1040nr filing Use this form to prepare your annual U. 1040nr filing S. 1040nr filing income tax return. 1040nr filing Income Entitled to Tax Treaty Benefits If a tax treaty between the United States and your country provides an exemption from, or a reduced rate of, tax for certain items of income, you should notify the payor of the income (the withholding agent) of your foreign status to claim a tax treaty withholding exemption. 1040nr filing Generally, you do this by filing either Form W-8BEN or Form 8233 with the withholding agent. 1040nr filing File Form W-8BEN for income that is not personal services income. 1040nr filing File Form 8233 for personal services income as discussed next. 1040nr filing Employees and independent contractors. 1040nr filing   If you perform personal services as an employee or as an independent contractor and you can claim an exemption from withholding on that personal service income because of a tax treaty, give Form 8233 to each withholding agent from whom amounts will be received. 1040nr filing   Even if you submit Form 8233, the withholding agent may have to withhold tax from your income. 1040nr filing This is because the factors on which the treaty exemption is based may not be determinable until after the close of the tax year. 1040nr filing In this case, you must file Form 1040NR (or Form 1040NR-EZ if you qualify) to recover any overwithheld tax and to provide the IRS with proof that you are entitled to the treaty exemption. 1040nr filing Students, teachers, and researchers. 1040nr filing   Students, teachers, and researchers must attach the appropriate statement shown in Appendix A (for students) or Appendix B (for teachers and researchers) at the end of this publication to the Form 8233 and give it to the withholding agent. 1040nr filing For treaties not listed in the appendices, attach a statement in a format similar to those for other treaties. 1040nr filing   If you received a scholarship or fellowship and personal services income from the same withholding agent, use Form 8233 to claim an exemption from withholding based on a tax treaty for both types of income. 1040nr filing Special events and promotions. 1040nr filing   Withholding at the full 30% rate is required for payments made to a nonresident alien or foreign corporation for gate receipts (or television or other receipts) from rock music festivals, boxing promotions, and other entertainment or sporting events, unless the withholding agent has been specifically advised otherwise by letter from the IRS. 1040nr filing Form 13930 is used to request a reduction in withholding. 1040nr filing Withholding may be required even if the income may be exempt from taxation by provisions of a tax treaty. 1040nr filing One reason for this is that the partial or complete exemption is usually based on factors that cannot be determined until after the close of the tax year. 1040nr filing You will be required to pay U. 1040nr filing S. 1040nr filing tax, at the time of your departure from the United States, on any income for which you incorrectly claimed a treaty exemption. 1040nr filing For more details on treaty provisions that apply to compensation, see Publication 901. 1040nr filing Tax Withheld on Real Property Sales If you are a nonresident alien and you dispose of a U. 1040nr filing S. 1040nr filing real property interest, the transferee (buyer) of the property generally must withhold a tax equal to 10% of the amount realized on the disposition. 1040nr filing A distribution by a qualified investment entity to a nonresident alien shareholder that is treated as gain from the sale or exchange of a U. 1040nr filing S. 1040nr filing real property interest by the shareholder is subject to withholding at 35%. 1040nr filing Withholding is also required on certain distributions and other transactions by domestic or foreign corporations, partnerships, trusts, and estates. 1040nr filing These rules are covered in Publication 515. 1040nr filing For information on the tax treatment of dispositions of U. 1040nr filing S. 1040nr filing real property interests, see Real Property Gain or Loss in chapter 4. 1040nr filing If you are a partner in a domestic partnership, and the partnership disposes of a U. 1040nr filing S. 1040nr filing real property interest at a gain, the partnership will withhold tax on the amount of gain allocable to its foreign partners. 1040nr filing Your share of the income and tax withheld will be reported to you on Form 8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax, or Form 1042-S, Foreign Person's U. 1040nr filing S. 1040nr filing Source Income Subject to Withholding (in the case of a publicly traded partnership). 1040nr filing Withholding is not required in the following situations. 1040nr filing The property is acquired by the buyer for use as a residence and the amount realized (sales price) is not more than $300,000. 1040nr filing The property disposed of is an interest in a domestic corporation if any class of stock of the corporation is regularly traded on an established securities market. 1040nr filing However, this exception does not apply to certain dispositions of substantial amounts of non-publicly traded interests in publicly traded corporations. 1040nr filing The property disposed of is an interest in a U. 1040nr filing S. 1040nr filing corporation that is not regularly traded on an established market and you (the seller) give the buyer a copy of a statement issued by the corporation certifying that the interest is not a U. 1040nr filing S. 1040nr filing real property interest. 1040nr filing You (the seller) give the buyer a certification stating, under penalties of perjury, that you are not a foreign person, and containing your name, U. 1040nr filing S. 1040nr filing taxpayer identification number, and home address. 1040nr filing You can give the certification to a qualified substitute. 1040nr filing The qualified substitute gives the buyer a statement, under penalties of perjury, that the certification is in the possession of the qualified substitute. 1040nr filing For this purpose, a qualified substitute is (a) the person (including any attorney or title company) responsible for closing the transaction, other than your agent, and (b) the buyer's agent. 1040nr filing The buyer receives a withholding certificate from the Internal Revenue Service. 1040nr filing You give the buyer written notice that you are not required to recognize any gain or loss on the transfer because of a nonrecognition provision in the Internal Revenue Code or a provision in a U. 1040nr filing S. 1040nr filing tax treaty. 1040nr filing The buyer must file a copy of the notice with the Ogden Service Center, P. 1040nr filing O. 1040nr filing Box 409101, Ogden, UT 84409. 1040nr filing You must verify the notice as true and sign it under penalties of perjury. 1040nr filing The notice must contain the following information. 1040nr filing A statement that the notice is a notice of nonrecognition under regulation section 1. 1040nr filing 1445-2(d)(2). 1040nr filing Your name, taxpayer identification number, and home address. 1040nr filing A statement that you are not required to recognize any gain or loss on the transfer. 1040nr filing A brief description of the transfer. 1040nr filing A brief summary of the law and facts supporting your claim that recognition of gain or loss is not required. 1040nr filing You may not give the buyer a written notice for any of the following transfers: the sale of your main home on which you exclude gain, a like-kind exchange that does not qualify for nonrecognition treatment in its entirety, or a deferred like-kind exchange that has not been completed at the time the buyer must file Form 8288. 1040nr filing Instead, a withholding certificate (described next) must be obtained. 1040nr filing The amount you realize on the transfer of a U. 1040nr filing S. 1040nr filing real property interest is zero. 1040nr filing The property is acquired by the United States, a U. 1040nr filing S. 1040nr filing state or possession, a political subdivision, or the District of Columbia. 1040nr filing The distribution is from a domestically controlled qualified investment entity (QIE) and is treated as a distribution of a U. 1040nr filing S. 1040nr filing real property interest only because an interest in the entity was disposed of in an applicable wash sale transaction. 1040nr filing For the definition of a QIE, see Qualified investment entities under Real Property Gain or Loss, earlier. 1040nr filing See Wash sale under Real Property Gain or Loss in chapter 4. 1040nr filing The certifications in (3) and (4) must be disregarded by the buyer if the buyer or qualified substitute has actual knowledge, or receives notice from a seller's or buyer's agent (or substitute), that they are false. 1040nr filing This also applies to the qualified substitute's statement under (4). 1040nr filing Withholding certificates. 1040nr filing   The tax required to be withheld on a disposition can be reduced or eliminated under a withholding certificate issued by the IRS. 1040nr filing Either you or the buyer can request a withholding certificate. 1040nr filing   A withholding certificate can be issued due to any of the following. 1040nr filing The IRS determines that reduced withholding is appropriate because either: The amount required to be withheld would be more than your maximum tax liability, or Withholding of the reduced amount would not jeopardize collection of the tax. 1040nr filing All of your realized gain is exempt from U. 1040nr filing S. 1040nr filing tax. 1040nr filing You or the buyer enters into an agreement for the payment of tax providing security for the tax liability. 1040nr filing   Get Publication 515 and Form 8288-B for information on procedures to request a withholding certificate. 1040nr filing Credit for tax withheld. 1040nr filing   The buyer must report and pay over the withheld tax within 20 days after the transfer using Form 8288, U. 1040nr filing S. 1040nr filing Withholding Tax Return for Dispositions by Foreign Persons of U. 1040nr filing S. 1040nr filing Real Property Interests. 1040nr filing This form is filed with the IRS with copies A and B of Form 8288-A, Statement of Withholding on Dispositions by Foreign Persons of U. 1040nr filing S. 1040nr filing Real Property Interests. 1040nr filing Copy B of this statement will be stamped received by the IRS and returned to you (the seller) if the statement is complete and includes your taxpayer identification number (TIN). 1040nr filing You must file Copy B with your tax return to take credit for the tax withheld. 1040nr filing   A stamped copy of Form 8288-A will not be provided to you if your TIN is not included on that form. 1040nr filing The IRS will send you a letter requesting the TIN and providing instructions for how to get a TIN. 1040nr filing When you provide the IRS with a TIN, the IRS will provide you with a stamped Copy B of Form 8288-A. 1040nr filing Social Security and Medicare Taxes If you work as an employee in the United States, you must pay social security and Medicare taxes in most cases. 1040nr filing Your payments of these taxes contribute to your coverage under the U. 1040nr filing S. 1040nr filing social security system. 1040nr filing Social security coverage provides retirement benefits, survivors and disability benefits, and medical insurance (Medicare) benefits to individuals who meet certain eligibility requirements. 1040nr filing In most cases, the first $113,700 of taxable wages received in 2013 for services performed in the United States is subject to social security tax. 1040nr filing All taxable wages are subject to Medicare tax. 1040nr filing Your employer deducts these taxes from each wage payment. 1040nr filing Your employer must deduct these taxes even if you do not expect to qualify for social security or Medicare benefits. 1040nr filing You can claim a credit for excess social security tax on your income tax return if you have more than one employer and the amount deducted from your combined wages for 2013 is more than $7,049. 1040nr filing 40. 1040nr filing Use the appropriate worksheet in chapter 3 of Publication 505, Tax Withholding and Estimated Tax, to figure your credit. 1040nr filing If any one employer deducted more than $7,049. 1040nr filing 40, you cannot claim a credit for that amount. 1040nr filing Ask your employer to refund the excess. 1040nr filing If your employer does not refund the excess, you can file a claim for refund using Form 843. 1040nr filing In general, U. 1040nr filing S. 1040nr filing social security and Medicare taxes apply to payments of wages for services performed as an employee in the United States, regardless of the citizenship or residence of either the employee or the employer. 1040nr filing In limited situations, these taxes apply to wages for services performed outside the United States. 1040nr filing Your employer should be able to tell you if social security and Medicare taxes apply to your wages. 1040nr filing You cannot make voluntary payments if no taxes are due. 1040nr filing Additional Medicare Tax. 1040nr filing   Beginning in 2013, in addition to the Medicare tax, a 0. 1040nr filing 9% Additional Medicare Tax applies to Medicare wages, Railroad Retirement Tax Act (RRTA) compensation, and self-employment income that are more than: $250,000 if married filing jointly, $125,000 if married filing separately, or $200,000 for any other filing status. 1040nr filing   There are no special rules for nonresident aliens for purposes of Additional Medicare Tax. 1040nr filing 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. 1040nr filing   Your employer is responsible for withholding the 0. 1040nr filing 9% Additional Medicare Tax on Medicare wages or RRTA compensation it pays to you in excess of $200,000 in the calendar year. 1040nr filing If you intend to file a joint return and you anticipate that you and your spouse's individual wages are not going to be more than $200,000 but your combined wages and self-employment income are going to be more than $250,000, you may want to request additional withholding on Form W-4 and/or make estimated tax payments. 1040nr filing   If you file Form 1040NR, you must pay Additional Medicare Tax if the total of your wages and your self-employment income was more than $125,000 if married (Box 3, 4, or 5 on page 1 of Form 1040NR), or $200,000 if single or qualifying widow(er) (Box 1, 2, or 6 on page 1 of Form 1040NR). 1040nr filing    See Form 8959, Additional Medicare Tax, and the Instructions for Form 8959 to determine whether you are required to pay Additional Medicare Tax. 1040nr filing For more information on Additional Medicare Tax, go to IRS. 1040nr filing gov and enter “Additional Medicare Tax” in the search box. 1040nr filing   Self-employed individuals may also be required to pay Additional Medicare Tax. 1040nr filing See Self-Employment Tax , later. 1040nr filing Students and Exchange Visitors Generally, services performed by you as a nonresident alien temporarily in the United States as a nonimmigrant under subparagraph (F), (J), (M), or (Q) of section 101(a)(15) of the Immigration and Nationality Act are not covered under the social security program if the services are performed to carry out the purpose for which you were admitted to the United States. 1040nr filing This means that there will be no withholding of social security or Medicare taxes from the pay you receive for these services. 1040nr filing These types of services are very limited, and generally include only on-campus work, practical training, and economic hardship employment. 1040nr filing Social security and Medicare taxes will be withheld from your pay for these services if you are considered a resident alien as discussed in chapter 1, even though your nonimmigrant classification (“F,” “J,” “M,” or “Q”) remains the same. 1040nr filing Services performed by a spouse or minor child of nonimmigrant aliens with the classification of “F-2,” “J-2,” “M-2,” and “Q-3” are covered under social security. 1040nr filing Nonresident Alien Students If you are a nonresident alien temporarily admitted to the United States as a student, you generally are not permitted to work for a wage or salary or to engage in business while you are in the United States. 1040nr filing In some cases, a student admitted to the United States in “F-1,” “M-1,” or “J-1” status is granted permission to work. 1040nr filing Social security and Medicare taxes are not withheld from pay for the work unless the student is considered a resident alien. 1040nr filing Any student who is enrolled and regularly attending classes at a school may be exempt from social security and Medicare taxes on pay for services performed for that school. 1040nr filing The U. 1040nr filing S. 1040nr filing Citizenship and Immigration Services (USCIS) permits on-campus work for students in “F-1” status if it does not displace a U. 1040nr filing S. 1040nr filing resident. 1040nr filing On-campus work means work performed on the school's premises. 1040nr filing On-campus work includes work performed at an off-campus location that is educationally affiliated with the school. 1040nr filing On-campus work under the terms of a scholarship, fellowship, or assistantship is considered part of the academic program of a student taking a full course of study and is permitted by the USCIS. 1040nr filing Social security and Medicare taxes are not withheld from pay for this work unless the student is considered a resident alien. 1040nr filing If services performed by a nonresident alien student are not considered as performed to carry out the purpose for which the student was admitted to the United States, social security and Medicare taxes will be withheld from pay for the services unless the pay is exempt under the Internal Revenue Code. 1040nr filing Exchange Visitors Exchange visitors are temporarily admitted to the United States under section 101(a)(15)(J) of the Immigration and Nationality Act. 1040nr filing Social security and Medicare taxes are not withheld on pay for services of an exchange visitor who has been given permission to work and who possesses or obtains a letter of authorization from the sponsor unless the exchange visitor is considered a resident alien. 1040nr filing If services performed by an exchange visitor are not considered as performed to carry out the purpose for which the visitor was admitted to the United States, social security and Medicare taxes are withheld from pay for the services unless the pay is exempt under the Internal Revenue Code. 1040nr filing Nonresident aliens temporarily admitted to the United States as participants in international cultural exchange programs under section 101(a)(15)(Q) of the Immigration and Nationality Act may be exempt from social security and Medicare taxes. 1040nr filing The employer must be the petitioner through whom the alien obtained the “Q” visa. 1040nr filing Social security and Medicare taxes are not withheld from pay for this work unless the alien is considered a resident alien. 1040nr filing Refund of Taxes Withheld in Error If social security or Medicare taxes were withheld in error from pay that is not subject to these taxes, contact the employer who withheld the taxes for a refund. 1040nr filing If you are unable to get a full refund of the amount from your employer, file a claim for refund with the Internal Revenue Service on Form 843, Claim for Refund and Request for Abatement. 1040nr filing Attach the following items to Form 843. 1040nr filing A copy of your Form W-2 to prove the amount of social security and Medicare taxes withheld. 1040nr filing A copy of your visa. 1040nr filing Form I-94 (or other documentation showing your dates of arrival or departure). 1040nr filing If you have an F-1 visa, documentation showing permission to work in the U. 1040nr filing S. 1040nr filing If you have a J-1 visa, documentation showing permission to work in the U. 1040nr filing S. 1040nr filing If you are engaged in optional practical training or employment due to severe economic necessity, documentation showing permission to work in the U. 1040nr filing S. 1040nr filing A statement from your employer indicating the amount of the reimbursement your employer provided and the amount of the credit or refund your employer claimed or you authorized your employer to claim. 1040nr filing If you cannot obtain this statement from your employer, you must provide this information on your own statement and explain why you are not attaching a statement from your employer or on Form 8316 claiming your employer will not issue the refund. 1040nr filing If you were exempt from social security and Medicare tax for only part of the year, pay statements showing the tax paid during the period you were exempt. 1040nr filing File Form 843 (with attachments) with the Department of the Treasury, Internal Revenue Service Center, Ogden, UT 84201-0038. 1040nr filing Do not use Form 843 to request a refund of Additional Medicare Tax. 1040nr filing If Additional Medicare Tax was withheld from your pay in error, you can claim a credit for any withheld Additional Medicare Tax against the total tax liability shown on your tax return by filing Form 8959 with Form 1040 or 1040NR. 1040nr filing If Additional Medicare Tax was withheld in error in a prior year for which you already filed Form 1040 or 1040NR, you must file Form 1040X, Amended U. 1040nr filing S. 1040nr filing Individual Income Tax Return, for the prior year in which the wages or compensation were originally received to recover the Additional Medicare Tax withheld in error. 1040nr filing See the Instructions for Form 1040X. 1040nr filing Agricultural Workers Agricultural workers temporarily admitted into the United States on H-2A visas are exempt from social security and Medicare taxes on compensation paid to them for services performed in connection with the H-2A visa. 1040nr filing You can find more information about not having tax withheld at www. 1040nr filing irs. 1040nr filing gov/Individuals/International-Taxpayers/Foreign-Agricultural-Workers. 1040nr filing Self-Employment Tax Self-employment tax is the social security and Medicare taxes for individuals who are self-employed. 1040nr filing Nonresident aliens are not subject to self-employment tax unless an international social security agreement in effect determines that they are covered under the U. 1040nr filing S. 1040nr filing social security system. 1040nr filing Residents of the U. 1040nr filing S. 1040nr filing Virgin Islands, Puerto Rico, Guam, the Commonwealth of the Northern Mariana Islands, or American Samoa are considered U. 1040nr filing S. 1040nr filing residents for this purpose and are subject to the self-employment tax. 1040nr filing Resident aliens must pay self-employment tax under the same rules that apply to U. 1040nr filing S. 1040nr filing citizens. 1040nr filing However, a resident alien employed by an international organization, a foreign government, or a wholly-owned instrumentality of a foreign government is not subject to the self-employment tax on income earned in the United States. 1040nr filing Self-employment income you receive while you are a resident alien is subject to self-employment tax even if it was paid for services you performed as a nonresident alien. 1040nr filing Example. 1040nr filing Bill Jones is an author engaged in the business of writing books. 1040nr filing Bill had several books published in a foreign country while he was a citizen and resident of that country. 1040nr filing During 2013, Bill entered the United States as a resident alien. 1040nr filing After becoming a U. 1040nr filing S. 1040nr filing resident, he continued to receive royalties from his foreign publisher. 1040nr filing Bill reports his income and expenses on the cash basis (he reports income on his tax return when received and deducts expenses when paid). 1040nr filing Bill's 2013 self-employment income includes the royalties received after he became a U. 1040nr filing S. 1040nr filing resident even though the books were published while he was a nonresident alien. 1040nr filing This royalty income is subject to self-employment tax. 1040nr filing Reporting self-employment tax. 1040nr filing   Use Schedule SE (Form 1040) to report and figure your self-employment tax. 1040nr filing Then enter the tax on Form 1040, line 56, or Form 1040NR, line 54. 1040nr filing Attach Schedule SE to Form 1040 or Form 1040NR. 1040nr filing Additional Medicare Tax. 1040nr filing   Self-employed individuals must pay a 0. 1040nr filing 9% Additional Medicare Tax on self-employment income that exceeds one of the following threshold amounts (based on your filing status): Married filing jointly — $250,000; Married filing separately — $125,000; Single, Head of household, or Qualifying widow(er) — $200,000. 1040nr filing   If you have both wages and self-employment income, the threshold amount for applying the Additional Medicare Tax on the self-employment income is reduced (but not below zero) by the amount of wages subject to Additional Medicare Tax. 1040nr filing A self-employment loss should not be considered for purposes of this tax   If you file Form 1040NR, you must pay Additional Medicare Tax if the total of your wages and your self-employment income was more than $125,000 if married (Box 3, 4, or 5 on page 1 of Form 1040NR), or $200,000 if single or qualifying widow(er) (Box 1, 2, or 6 on page 1 of Form 1040NR). 1040nr filing   See Form 8959, Additional Medicare Tax, and the Instructions for Form 8959 to determine whether you are required to pay Additional Medicare Tax. 1040nr filing For more information on Additional Medicare Tax, go to IRS. 1040nr filing gov and enter “Additional Medicare Tax” in the search box. 1040nr filing Deduction for employer-equivalent portion of self-employment tax. 1040nr filing   If you must pay self-employment tax, you can deduct a portion of the self-employment tax paid in figuring your adjusted gross income. 1040nr filing This deduction is figured on Schedule SE (Form 1040). 1040nr filing Note. 1040nr filing No portion of the Additional Medicare Tax is deductible for self-employment tax. 1040nr filing More information. 1040nr filing   Get Publication 334, Tax Guide for Small Business, for more information about self-employment tax. 1040nr filing International Social Security Agreements The United States has entered into social security agreements with foreign countries to coordinate social security coverage and taxation of workers employed for part or all of their working careers in one of the countries. 1040nr filing These agreements are commonly referred to as totalization agreements. 1040nr filing Under these agreements, dual coverage and dual contributions (taxes) for the same work are eliminated. 1040nr filing The agreements generally make sure that social security taxes (including self-employment tax) are paid only to one country. 1040nr filing Agreements are in effect with the following countries. 1040nr filing Australia. 1040nr filing Austria. 1040nr filing Belgium. 1040nr filing Canada. 1040nr filing Chile. 1040nr filing Czech Republic. 1040nr filing Denmark. 1040nr filing Finland. 1040nr filing France. 1040nr filing Germany. 1040nr filing Greece. 1040nr filing Ireland. 1040nr filing Italy. 1040nr filing Japan. 1040nr filing Korea, South. 1040nr filing Luxembourg. 1040nr filing The Netherlands. 1040nr filing Norway. 1040nr filing Poland. 1040nr filing Portugal. 1040nr filing Spain. 1040nr filing Sweden. 1040nr filing Switzerland. 1040nr filing The United Kingdom. 1040nr filing Agreements with other countries are expected to enter into force in the future. 1040nr filing Employees. 1040nr filing   Generally, under these agreements, you are subject to social security taxes only in the country where you are working. 1040nr filing However, if you are temporarily sent to work for the same employer in the United States and your pay would normally be subject to social security taxes in both countries, most agreements provide that you remain covered only by the social security system of the country from which you were sent. 1040nr filing You can get more information on any agreement by contacting the U. 1040nr filing S. 1040nr filing Social Security Administration at the address given later. 1040nr filing If you have access to the Internet, you can get more information at www. 1040nr filing socialsecurity. 1040nr filing gov/international. 1040nr filing   To establish that your pay is subject only to foreign social security taxes and is exempt from U. 1040nr filing S. 1040nr filing social security taxes (including the Medicare tax) under an agreement, you or your employer should request a certificate of coverage from the appropriate agency of the foreign country. 1040nr filing This will usually be the same agency to which you or your employer pays your foreign social security taxes. 1040nr filing The foreign agency will be able to tell you what information is needed for them to issue the certificate. 1040nr filing Your employer should keep a copy of the certificate because it may be needed to show why you are exempt from U. 1040nr filing S. 1040nr filing social security taxes. 1040nr filing Only wages paid on or after the effective date of the agreement can be exempt from U. 1040nr filing S. 1040nr filing social security taxes. 1040nr filing    Some of the countries with which the United States has agreements will not issue certificates of coverage. 1040nr filing In this case, either you or your employer should request a statement that your wages are not covered by the U. 1040nr filing S. 1040nr filing social security system. 1040nr filing Request the statement from the following address. 1040nr filing U. 1040nr filing S. 1040nr filing Social Security Administration Office of International Programs P. 1040nr filing O. 1040nr filing Box 17741 Baltimore, MD 21235-7741 Self-employed individuals. 1040nr filing   Under most agreements, self-employed individuals are covered by the social security system of the country where they reside. 1040nr filing However, under some agreements, you may be exempt from U. 1040nr filing S. 1040nr filing self-employment tax if you temporarily transfer your business activity to or from the United States. 1040nr filing   If you believe that your self-employment income is subject only to U. 1040nr filing S. 1040nr filing self-employment tax and is exempt from foreign social security taxes, request a certificate of coverage from the U. 1040nr filing S. 1040nr filing Social Security Administration at the address given earlier. 1040nr filing This certificate will establish your exemption from foreign social security taxes. 1040nr filing   To establish that your self-employment income is subject only to foreign social security taxes and is exempt from U. 1040nr filing S. 1040nr filing self-employment tax, request a certificate of coverage from the appropriate agency of the foreign country. 1040nr filing If the foreign country will not issue the certificate, you should request a statement that your income is not covered by the U. 1040nr filing S. 1040nr filing social security system. 1040nr filing Request it from the U. 1040nr filing S. 1040nr filing Social Security Administration at the address given earlier. 1040nr filing Attach a photocopy of either statement to Form 1040 each year you are exempt. 1040nr filing Also print “Exempt, see attached statement” on the line for self-employment tax. 1040nr filing Estimated Tax Form 1040-ES (NR) You may have income from which no U. 1040nr filing S. 1040nr filing income tax is withheld. 1040nr filing Or the amount of tax withheld may be less than the income tax you estimate you will owe at the end of the year. 1040nr filing If so, you may have to pay estimated tax. 1040nr filing Generally, you must make estimated tax payments for 2014 if you expect to owe at least $1,000 in tax and you expect your withholding and certain refundable credits to be less than the smaller of: 90% of the tax to be shown on your 2014 income tax return, or 100% of the tax shown on your 2013 income tax return (if your 2013 return covered all 12 months of the year). 1040nr filing If your adjusted gross income for 2013 was more than $150,000 ($75,000 if your filing status for 2014 is married filing separately), substitute 110% for 100% in (2) above if you are not a farmer or fisherman. 1040nr filing Item (2) does not apply if you did not file a 2013 return. 1040nr filing A nonresident alien should use Form 1040-ES (NR) to figure and pay estimated tax. 1040nr filing If you pay by check, make it payable to the "United States Treasury. 1040nr filing " How to estimate your tax for 2014. 1040nr filing   If you filed a 2013 return on Form 1040NR or Form 1040NR-EZ and expect your income, number of exemptions, and total deductions for 2014 to be nearly the same, you should use your 2013 return as a guide to complete the Estimated Tax Worksheet in the Form 1040-ES (NR) instructions. 1040nr filing If you did not file a return for 2013, or if your income, exemptions, deductions, or credits will be different for 2014, you must estimate these amounts. 1040nr filing Figure your estimated tax liability using the Tax Rate Schedule in the 2014 Form 1040-ES (NR) instructions for your filing status. 1040nr filing Note. 1040nr filing If you expect to be a resident of Puerto Rico during the entire year, use Form 1040-ES or Formulario 1040-ES (PR). 1040nr filing When to pay estimated tax. 1040nr filing   Make your first estimated tax payment by the due date for filing the previous year's Form 1040NR or Form 1040NR-EZ. 1040nr filing If you have wages subject to the same withholding rules that apply to U. 1040nr filing S. 1040nr filing citizens, you must file Form 1040NR or Form 1040NR-EZ and make your first estimated tax payment by April 15, 2014. 1040nr filing If you do not have wages subject to withholding, file your income tax return and make your first estimated tax payment by June 16, 2014. 1040nr filing   If your first estimated tax payment is due April 15, 2014, you can pay your estimated tax in full at that time or in four equal installments by the dates shown next. 1040nr filing 1st installment April 15, 2014 2nd installment June 16, 2014 3rd installment Sept. 1040nr filing 15, 2014 4th installment Jan. 1040nr filing 15, 2015 If your first payment is not due until June 16, 2014, you can pay your estimated tax in full at that time or: ½ of your estimated tax by June 16, 2014, 1/4 of the tax by September 15, 2014, and 1/4 by January 15, 2015. 1040nr filing    You do not have to make the payment due January 15, 2015, if you file your 2014 Form 1040NR or 1040NR-EZ by February 2, 2015, and pay the entire balance due with your return. 1040nr filing Fiscal year. 1040nr filing   If your return is not on a calendar year basis, your due dates are the 15th day of the 4th, 6th, and 9th months of your fiscal year, and the 1st month of the following fiscal year. 1040nr filing If any date falls on a Saturday, Sunday, or legal holiday, use the next day that is not a Saturday, Sunday, or legal holiday. 1040nr filing Changes in income, deductions, or exemptions. 1040nr filing   Even if you are not required to make an estimated tax payment in April or June, your circumstances may change so that you will have to make estimated tax payments later. 1040nr filing This can happen if you receive additional income or if any of your deductions are reduced or eliminated. 1040nr filing If so, see the instructions for Form 1040-ES (NR) and Publication 505 for information on figuring your estimated tax. 1040nr filing Amended estimated tax. 1040nr filing   If, after you have made estimated tax payments, you find your estimated tax is substantially increased or decreased because of a change in your income or exemptions, you should adjust your remaining estimated tax payments. 1040nr filing To do this, see the instructions for Form 1040-ES (NR) and Publication 505. 1040nr filing Penalty for failure to pay estimated income tax. 1040nr filing   You will be subject to a penalty for underpayment of installments of estimated tax except in certain situations. 1040nr filing These situations are explained on Form 2210, Underpayment of Estimated Tax by Individuals, Estates, and 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Crash tests can help you determine how well a vehicle will protect you in a crash. Here are different organizations that perform crash tests and rate vehicles:

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The 1040nr Filing

1040nr filing 1. 1040nr filing   Filing Information Table of Contents Topics - This chapter discusses: Useful Items - You may want to see: Filing RequirementsWhen To File and Pay Foreign Currency Does My Return Have To Be On Paper? Where To File Nonresident Alien Spouse Treated as a ResidentSocial Security Number (SSN) How To Make the Choice Suspending the Choice Ending the Choice Estimated Tax Other Forms You May Have To File Topics - This chapter discusses: Whether you have to file a return, When to file your return and pay any tax due, How to treat foreign currency, How to file electronically, Where to file your return, When you can treat your nonresident alien spouse as a resident, and When you may have to make estimated tax payments. 1040nr filing Useful Items - You may want to see: Publication 3 Armed Forces' Tax Guide 501 Exemptions, Standard Deduction, and Filing Information 505 Tax Withholding and Estimated Tax 519 U. 1040nr filing S. 1040nr filing Tax Guide for Aliens 970 Tax Benefits for Education Form (and Instructions) 1040-ES Estimated Tax for Individuals 1040X Amended U. 1040nr filing S. 1040nr filing Individual Income Tax Return 2350 Application for Extension of Time To File U. 1040nr filing S. 1040nr filing Income Tax Return 2555 Foreign Earned Income 2555-EZ Foreign Earned Income Exclusion 4868 Application for Automatic Extension of Time To File U. 1040nr filing S. 1040nr filing Individual Income Tax Return 8822 Change of Address See chapter 7 for information about getting these publications and forms. 1040nr filing Filing Requirements If you are a U. 1040nr filing S. 1040nr filing citizen or resident alien, the rules for filing income, estate, and gift tax returns and for paying estimated tax are generally the same whether you are in the United States or abroad. 1040nr filing Your income, filing status, and age generally determine whether you must file an income tax return. 1040nr filing Generally, you must file a return for 2013 if your gross income from worldwide sources is at least the amount shown for your filing status in the following table. 1040nr filing Filing Status*   Amount Single $10,000 65 or older $11,500 Head of household $12,850 65 or older $14,350 Qualifying widow(er) $16,100 65 or older $17,300 Married filing jointly $20,000 Not living with spouse at end of year $3,900 One spouse 65 or older $21,200 Both spouses 65 or older $22,400 Married filing separately $3,900 *If you are the dependent of another taxpayer, see the instructions for Form 1040 for more information on whether you must file a return. 1040nr filing Gross income. 1040nr filing   This includes all income you receive in the form of money, goods, property, and services that is not exempt from tax. 1040nr filing   For purposes of determining whether you must file a return, gross income includes any income that you can exclude as foreign earned income or as a foreign housing amount. 1040nr filing If you are self-employed, your gross income includes the amount on Part I, line 7 of Schedule C (Form 1040), Profit or Loss From Business, or line 1 of Schedule C-EZ (Form 1040), Net Profit From Business. 1040nr filing Self-employed individuals. 1040nr filing   If your net earnings from self-employment are $400 or more, you must file a return even if your gross income is below the amount listed for your filing status in the table shown earlier. 1040nr filing Net earnings from self-employment are defined in Publication 334, Tax Guide for Small Business. 1040nr filing 65 or older. 1040nr filing   You are considered to be age 65 on the day before your 65th birthday. 1040nr filing For example, if your 65th birthday is on January 1, 2014, you are considered 65 for 2013. 1040nr filing Residents of U. 1040nr filing S. 1040nr filing possessions. 1040nr filing   If you are (or were) a bona fide resident of a U. 1040nr filing S. 1040nr filing possession, you may be required to file Form 8898, Statement for Individuals Who Begin or End Bona Fide Residence in a U. 1040nr filing S. 1040nr filing Possession. 1040nr filing See the instructions for the form for more information. 1040nr filing When To File and Pay If you file on a calendar year basis, the due date for filing your return is April 15 of the following year. 1040nr filing If you file on a fiscal year basis (a year ending on the last day of any month except December), the due date is 3 months and 15 days after the close of your fiscal year. 1040nr filing In general, the tax shown on your return should be paid by the due date of the return, without regard to any extension of time for filing the return. 1040nr filing When the due date for doing any act for tax purposes—filing a return, paying taxes, etc. 1040nr filing — falls on a Saturday, Sunday, or legal holiday, the due date is delayed until the next business day. 1040nr filing A tax return delivered by the U. 1040nr filing S. 1040nr filing mail or a designated delivery service that is postmarked or dated by the delivery service on or before the due date is considered to have been filed on or before that date. 1040nr filing See your Form 1040 or Form 1040A instructions for a list of designated delivery services. 1040nr filing Foreign wire transfers. 1040nr filing   If you have a U. 1040nr filing S. 1040nr filing bank account, you can use: EFTPS (Electronic Federal Tax Payment System), or Federal Tax Application (same-day wire transfer). 1040nr filing If you do not have a U. 1040nr filing S. 1040nr filing bank account, ask if your financial institution has a U. 1040nr filing S. 1040nr filing affiliate that can help you make same-day wire transfers. 1040nr filing   For more information, visit www. 1040nr filing eftps. 1040nr filing gov. 1040nr filing Extensions You can get an extension of time to file your return. 1040nr filing In some circumstances, you also can get an extension of time to file and pay any tax due. 1040nr filing However, if you pay the tax due after the regular due date, interest will be charged from the regular due date until the date the tax is paid. 1040nr filing This publication discusses four extensions: an automatic 2-month extension, an automatic 6-month extension, an additional extension for taxpayers out of the country, and an extension of time to meet tests. 1040nr filing If you served in a combat zone or qualified hazardous duty area, see Publication 3 for a discussion of extensions of deadlines. 1040nr filing Automatic 2-month extension. 1040nr filing   You are allowed an automatic 2-month extension to file your return and pay federal income tax if you are a U. 1040nr filing S. 1040nr filing citizen or resident alien, and on the regular due date of your return: You are living outside the United States and Puerto Rico and your main place of business or post of duty is outside the United States and Puerto Rico, or You are in military or naval service on duty outside the United States and Puerto Rico. 1040nr filing   If you use a calendar year, the regular due date of your return is April 15. 1040nr filing Even if you are allowed an extension, you will have to pay interest on any tax not paid by the regular due date of your return. 1040nr filing Married taxpayers. 1040nr filing   If you file a joint return, either you or your spouse can qualify for the automatic extension. 1040nr filing If you and your spouse file separate returns, this automatic extension applies only to the spouse who qualifies for it. 1040nr filing How to get the extension. 1040nr filing   To use this automatic 2-month extension, you must attach a statement to your return explaining which of the two situations listed earlier qualified you for the extension. 1040nr filing Automatic 6-month extension. 1040nr filing   If you are not able to file your return by the due date, you generally can get an automatic 6-month extension of time to file (but not of time to pay). 1040nr filing To get this automatic extension, you must file a paper Form 4868 or use IRS e-file (electronic filing). 1040nr filing For more information about filing electronically, see E-file options , later. 1040nr filing   The form must show your properly estimated tax liability based on the information available to you. 1040nr filing    You may not be eligible. 1040nr filing You cannot use the automatic 6-month extension of time to file if: You want the IRS to figure your tax, or You are under a court order to file by the regular due date. 1040nr filing E-file options. 1040nr filing    You can use e-file to get an extension of time to file. 1040nr filing You can either file Form 4868 electronically or you can pay part or all of your estimate of tax due using a credit or debit card. 1040nr filing   First, complete Form 4868 to use as a worksheet. 1040nr filing If you think you may owe tax when you file your return, use Part II of the form to estimate your balance due. 1040nr filing    Then, do one of the following. 1040nr filing E-file Form 4868. 1040nr filing You can use a tax software package with your personal computer or a tax professional to file Form 4868 electronically. 1040nr filing You will need to provide certain information from your tax return for 2012. 1040nr filing If you wish to make a payment by electronic funds withdrawal, see the instructions for Form 4868. 1040nr filing If you e-file Form 4868, do not also send a paper Form 4868. 1040nr filing E-file and pay by credit or debit card. 1040nr filing You can get an extension by paying part or all of your estimate of tax due by using a credit or debit card. 1040nr filing You can do this by phone or over the Internet. 1040nr filing If you do this, you do not file Form 4868. 1040nr filing For more information, see the instructions for your tax return. 1040nr filing When to file. 1040nr filing   Generally, you must request the 6-month extension by the regular due date of your return. 1040nr filing Previous 2-month extension. 1040nr filing   If you cannot file your return within the automatic 2-month extension period, you generally can get an additional 4 months to file your return, for a total of 6 months. 1040nr filing The 2-month period and the 6-month period start at the same time. 1040nr filing You have to request the additional 4 months by the new due date allowed by the 2-month extension. 1040nr filing   The additional 4 months of time to file (unlike the original 2-month extension) is not an extension of time to pay. 1040nr filing You must make an accurate estimate of your tax based on the information available to you. 1040nr filing If you find you cannot pay the full amount due with Form 4868, you can still get the extension. 1040nr filing You will owe interest on the unpaid amount from the original due date of the return. 1040nr filing   You also may be charged a penalty for paying the tax late unless you have reasonable cause for not paying your tax when due. 1040nr filing Penalties for paying the tax late are assessed from the original due date of your return, unless you qualify for the automatic 2-month extension. 1040nr filing In that situation, penalties for paying late are assessed from the extended due date of the payment (June 15 for calendar year taxpayers). 1040nr filing Additional extension of time for taxpayers out of the country. 1040nr filing   In addition to the 6-month extension, taxpayers who are out of the country can request a discretionary 2-month additional extension of time to file their returns (to December 15 for calendar year taxpayers). 1040nr filing   To request this extension, you must send the Internal Revenue Service a letter explaining the reasons why you need the additional 2 months. 1040nr filing Send the letter by the extended due date (October 15 for calendar year taxpayers) to the following address: Department of the Treasury Internal Revenue Service Center Austin, TX 73301-0045   You will not receive any notification from the Internal Revenue Service unless your request is denied. 1040nr filing   The discretionary 2-month additional extension is not available to taxpayers who have an approved extension of time to file on Form 2350, discussed next. 1040nr filing Extension of time to meet tests. 1040nr filing   You generally cannot get an extension of more than 6 months. 1040nr filing However, if you are outside the United States and meet certain requirements, you may be able to get a longer extension. 1040nr filing   You can get an extension of more than 6 months to file your tax return if you need the time to meet either the bona fide residence test or the physical presence test to qualify for either the foreign earned income exclusion or the foreign housing exclusion or deduction. 1040nr filing The tests, the exclusions, and the deduction are explained in chapter 4. 1040nr filing   You should request an extension if all three of the following apply. 1040nr filing You are a U. 1040nr filing S. 1040nr filing citizen or resident alien. 1040nr filing You expect to meet either the bona fide residence test or the physical presence test, but not until after your tax return is due. 1040nr filing Your tax home is in a foreign country (or countries) throughout your period of bona fide residence or physical presence, whichever applies. 1040nr filing   If you are granted an extension, it generally will be to 30 days beyond the date on which you can reasonably expect to qualify for an exclusion or deduction under either the bona fide residence test or the physical presence test. 1040nr filing However, if you have moving expenses that are for services performed in 2 years, you may be granted an extension until after the end of the second year. 1040nr filing How to get an extension. 1040nr filing   To obtain an extension, file Form 2350 either by giving it to a local IRS representative or other IRS employee or by mailing it to the: Department of the Treasury Internal Revenue Service Center Austin, TX 73301-0045   You must file Form 2350 by the due date for filing your return. 1040nr filing Generally, if both your tax home and your abode are outside the United States and Puerto Rico on the regular due date of your return and you file on a calendar year basis, the due date for filing your return is June 15. 1040nr filing What if tests are not met. 1040nr filing   If you obtain an extension and unforeseen events make it impossible for you to meet either the bona fide residence test or the physical presence test, you should file your income tax return as soon as possible because you must pay interest on any tax due after the regular due date of the return (even though an extension was granted). 1040nr filing    You should make any request for an extension early, so that if it is denied you still can file your return on time. 1040nr filing Otherwise, if you file late and additional tax is due, you may be subject to a penalty. 1040nr filing Return filed before test is met. 1040nr filing   If you file a return before you meet the bona fide residence test or the physical presence test, you must include all income from both U. 1040nr filing S. 1040nr filing and foreign sources and pay the tax on that income. 1040nr filing If you later meet either of the tests, you can claim the foreign earned income exclusion, the foreign housing exclusion, or the foreign housing deduction on Form 1040X. 1040nr filing Foreign Currency You must express the amounts you report on your U. 1040nr filing S. 1040nr filing tax return in U. 1040nr filing S. 1040nr filing dollars. 1040nr filing If you receive all or part of your income or pay some or all of your expenses in foreign currency, you must translate the foreign currency into U. 1040nr filing S. 1040nr filing dollars. 1040nr filing How you do this depends on your functional currency. 1040nr filing Your functional currency generally is the U. 1040nr filing S. 1040nr filing dollar unless you are required to use the currency of a foreign country. 1040nr filing You must make all federal income tax determinations in your functional currency. 1040nr filing The U. 1040nr filing S. 1040nr filing dollar is the functional currency for all taxpayers except some qualified business units (QBUs). 1040nr filing A QBU is a separate and clearly identified unit of a trade or business that maintains separate books and records. 1040nr filing Even if you have a QBU, your functional currency is the dollar if any of the following apply. 1040nr filing You conduct the business in U. 1040nr filing S. 1040nr filing dollars. 1040nr filing The principal place of business is located in the United States. 1040nr filing You choose to or are required to use the U. 1040nr filing S. 1040nr filing dollar as your functional currency. 1040nr filing The business books and records are not kept in the currency of the economic environment in which a significant part of the business activities is conducted. 1040nr filing Make all income tax determinations in your functional currency. 1040nr filing If your functional currency is the U. 1040nr filing S. 1040nr filing dollar, you must immediately translate into U. 1040nr filing S. 1040nr filing dollars all items of income, expense, etc. 1040nr filing (including taxes), that you receive, pay, or accrue in a foreign currency and that will affect computation of your income tax. 1040nr filing Use the exchange rate prevailing when you receive, pay, or accrue the item. 1040nr filing If there is more than one exchange rate, use the one that most properly reflects your income. 1040nr filing You can generally get exchange rates from banks and U. 1040nr filing S. 1040nr filing Embassies. 1040nr filing If your functional currency is not the U. 1040nr filing S. 1040nr filing dollar, make all income tax determinations in your functional currency. 1040nr filing At the end of the year, translate the results, such as income or loss, into U. 1040nr filing S. 1040nr filing dollars to report on your income tax return. 1040nr filing Blocked Income You generally must report your foreign income in terms of U. 1040nr filing S. 1040nr filing dollars and, with one exception (see Fulbright Grant, later), you must pay taxes due on it in U. 1040nr filing S. 1040nr filing dollars. 1040nr filing If, because of restrictions in a foreign country, your income is not readily convertible into U. 1040nr filing S. 1040nr filing dollars or into other money or property that is readily convertible into U. 1040nr filing S. 1040nr filing dollars, your income is “blocked” or “deferrable” income. 1040nr filing You can report this income in one of two ways: Report the income and pay your federal income tax with U. 1040nr filing S. 1040nr filing dollars that you have in the United States or in some other country, or Postpone the reporting of the income until it becomes unblocked. 1040nr filing If you choose to postpone the reporting of the income, you must file an information return with your tax return. 1040nr filing For this information return, you should use another Form 1040 labeled “Report of Deferrable Foreign Income, pursuant to Rev. 1040nr filing Rul. 1040nr filing 74-351. 1040nr filing ” You must declare on the information return that you will include the deferrable income in your taxable income for the year that it becomes unblocked. 1040nr filing You also must state that you waive any right to claim that the deferrable income was includible in your income for any earlier year. 1040nr filing You must report your income on your information return using the foreign currency in which you received that income. 1040nr filing If you have blocked income from more than one foreign country, include a separate information return for each country. 1040nr filing Income becomes unblocked and reportable for tax purposes when it becomes convertible, or when it is converted, into U. 1040nr filing S. 1040nr filing dollars or into other money or property that is convertible into U. 1040nr filing S. 1040nr filing currency. 1040nr filing Also, if you use blocked income for your personal expenses or dispose of it by gift, bequest, or devise, you must treat it as unblocked and reportable. 1040nr filing If you have received blocked income on which you have not paid tax, you should check to see whether that income is still blocked. 1040nr filing If it is not, you should take immediate steps to pay tax on it, file a declaration or amended declaration of estimated tax, and include the income on your tax return for the year in which the income became unblocked. 1040nr filing If you choose to postpone reporting blocked income and in a later tax year you wish to begin including it in gross income although it is still blocked, you must obtain the permission of the IRS to do so. 1040nr filing To apply for permission, file Form 3115, Application for Change in Accounting Method. 1040nr filing You also must request permission from the IRS on Form 3115 if you have not chosen to defer the reporting of blocked income in the past, but now wish to begin reporting blocked income under the deferred method. 1040nr filing See the instructions for Form 3115 for information on changing your accounting method. 1040nr filing Fulbright Grant All income must be reported in U. 1040nr filing S. 1040nr filing dollars. 1040nr filing In most cases, the tax also must be paid in U. 1040nr filing S. 1040nr filing dollars. 1040nr filing If, however, at least 70% of your Fulbright grant has been paid in nonconvertible foreign currency (blocked income), you can use the currency of the host country to pay the part of the U. 1040nr filing S. 1040nr filing tax that is based on the blocked income. 1040nr filing Paying U. 1040nr filing S. 1040nr filing tax in foreign currency. 1040nr filing   To qualify for this method of payment, you must prepare a statement that shows the following information. 1040nr filing You were a Fulbright grantee and were paid in nonconvertible foreign currency. 1040nr filing The total grant you received during the year and the amount you received in nonconvertible foreign currency. 1040nr filing At least 70% of the grant was paid in nonconvertible foreign currency. 1040nr filing The statement must be certified by the U. 1040nr filing S. 1040nr filing educational foundation or commission paying the grant or other person having control of grant payments to you. 1040nr filing   You should prepare at least two copies of this statement. 1040nr filing Attach one copy to your Form 1040 and keep the other copy for identification purposes when you make a tax deposit of nonconvertible foreign currency. 1040nr filing Figuring actual tax. 1040nr filing   When you prepare your income tax return, you may owe tax or the entire liability may have been satisfied with your estimated tax payments. 1040nr filing If you owe tax, figure the part due to (and payable in) the nonconvertible foreign currency by using the following formula. 1040nr filing   Adjusted gross income that is blocked income × Total U. 1040nr filing S. 1040nr filing tax = Tax on blocked income     Total adjusted  gross income     You must attach all of the following to the return. 1040nr filing A copy of the certified statement discussed earlier. 1040nr filing A detailed statement showing the allocation of tax attributable to amounts received in foreign currency and the rates of exchange used in determining your tax liability in U. 1040nr filing S. 1040nr filing dollars. 1040nr filing The original deposit receipt for any balance of tax due that you paid in nonconvertible foreign currency. 1040nr filing Figuring estimated tax on nonconvertible foreign currency. 1040nr filing   If you are liable for estimated tax (discussed later), figure the amount you can pay to the IRS in nonconvertible foreign currency using the following formula. 1040nr filing   Adjusted gross income that is blocked income × Total estimated U. 1040nr filing S. 1040nr filing tax = Estimated tax on blocked income     Total adjusted  gross income     If you must pay your host country income tax on your grant, subtract any estimated foreign tax credit that applies to your grant from the estimated tax on the blocked income. 1040nr filing Deposit of foreign currency with disbursing officer. 1040nr filing   Once you have determined the amount of the actual tax or estimated tax that you can pay in nonconvertible foreign currency, deposit that amount with the disbursing officer of the Department of State in the foreign country in which the foundation or commission paying the grant is located. 1040nr filing Estimated tax installments. 1040nr filing   You can either deposit the full estimated tax amount before the first installment due date or make four equal payments before the installment due dates. 1040nr filing See Estimated Tax , later. 1040nr filing Deposit receipt. 1040nr filing   Upon accepting the foreign currency, the disbursing officer will give you a receipt in duplicate. 1040nr filing The original of this receipt (showing the amount of foreign currency deposited and its equivalent in U. 1040nr filing S. 1040nr filing dollars) should be attached to your Form 1040 or payment voucher from Form 1040-ES. 1040nr filing Keep the copy for your records. 1040nr filing Does My Return Have To Be On Paper? IRS e-file (electronic filing) is the fastest, easiest, and most convenient way to file your income tax return electronically. 1040nr filing IRS e-file offers accurate, safe, and fast alternatives to filing on paper. 1040nr filing IRS computers quickly and automatically check for errors or other missing information. 1040nr filing Even returns with a foreign address can be e-filed! How to e-file. 1040nr filing   There are three ways you can e-file. 1040nr filing Use your personal computer. 1040nr filing Use a volunteer. 1040nr filing Many programs offering free tax help can e-file your return. 1040nr filing Use a tax professional. 1040nr filing Most tax professionals can e-file your return. 1040nr filing These methods are explained in detail in the instructions for your tax return. 1040nr filing Where To File If any of the following situations apply to you, do not file your return with the service center listed for your home state. 1040nr filing You claim the foreign earned income exclusion. 1040nr filing You claim the foreign housing exclusion or deduction. 1040nr filing You live in a foreign country. 1040nr filing Instead, use one of the following special addresses. 1040nr filing If you are not enclosing a check or money order, file your return with the: Department of the Treasury Internal Revenue Service Center Austin, TX 73301-0215 USA If you are enclosing a check or money order, file your return with: Internal Revenue Service Center P. 1040nr filing O. 1040nr filing Box 1303 Charlotte, NC 28201-1303 USA If you do not know where your legal residence is and you do not have a principal place of business in the United States, you can file with the appropriate address listed above. 1040nr filing However, you should not file with the addresses listed above if you are a bona fide resident of the U. 1040nr filing S. 1040nr filing Virgin Islands, Guam, or the Commonwealth of the Northern Mariana Islands during your entire tax year. 1040nr filing Resident of U. 1040nr filing S. 1040nr filing Virgin Islands (USVI). 1040nr filing   If you are a bona fide resident of the USVI during your entire tax year, you generally are not required to file a U. 1040nr filing S. 1040nr filing return. 1040nr filing However, you must file a return with the USVI. 1040nr filing    Send your return to the:     Virgin Islands Bureau of Internal Revenue 6115 Estate Smith Bay Suite 225 St. 1040nr filing Thomas, Virgin Islands 00802 Non-USVI resident with USVI income. 1040nr filing   If you are a U. 1040nr filing S. 1040nr filing citizen or resident alien and you have income from sources in the USVI or income effectively connected with the conduct of a trade or business in the USVI, and you are not a bona fide resident of the USVI during your entire tax year, you must file identical tax returns with the United States and the USVI. 1040nr filing File the original return with the United States and file a signed copy of the U. 1040nr filing S. 1040nr filing return (including all attachments, forms, and schedules) with the Virgin Islands Bureau of Internal Revenue. 1040nr filing   You must complete Form 8689, Allocation of Individual Income Tax to the U. 1040nr filing S. 1040nr filing Virgin Islands, and attach a copy to both your U. 1040nr filing S. 1040nr filing return and your USVI return. 1040nr filing You should file your U. 1040nr filing S. 1040nr filing return with the address listed under Where To File. 1040nr filing   See Publication 570, Tax Guide for Individuals With Income From U. 1040nr filing S. 1040nr filing Possessions, for information about filing Virgin Islands returns. 1040nr filing Resident of Guam. 1040nr filing   If you are a bona fide resident of Guam during your entire tax year, you should file a return with Guam. 1040nr filing    Send your return to the:     Department of Revenue and Taxation Government of Guam P. 1040nr filing O. 1040nr filing Box 23607 GMF, GU 96921   However, if you have income from sources within Guam and you are a U. 1040nr filing S. 1040nr filing citizen or resident alien, but not a bona fide resident of Guam during the entire tax year, you should file a return with the United States. 1040nr filing Send your return to the address listed under Where To File. 1040nr filing   See Publication 570 for information about filing Guam returns. 1040nr filing Resident of the Commonwealth of the Northern Mariana Islands. 1040nr filing   If you are a bona fide resident of the Commonwealth of the Northern Mariana Islands (CNMI) during your entire tax year, you should file a return with the Northern Mariana Islands. 1040nr filing    Send your return to the:      Division of Revenue and Taxation Commonwealth of the Northern Mariana Islands P. 1040nr filing O. 1040nr filing Box 5234, CHRB Saipan, MP 96950   However, if you have income from sources within the CNMI and you are a U. 1040nr filing S. 1040nr filing citizen or resident alien, but not a bona fide resident of the CNMI during the entire tax year, you should file a return with the United States. 1040nr filing Send your return to the address listed under Where To File. 1040nr filing   See Publication 570 for information about filing Northern Mariana Islands returns. 1040nr filing Nonresident Alien Spouse Treated as a Resident If, at the end of your tax year, you are married and one spouse is a U. 1040nr filing S. 1040nr filing citizen or a resident alien and the other is a nonresident alien, you can choose to treat the nonresident as a U. 1040nr filing S. 1040nr filing resident. 1040nr filing This includes situations in which one of you is a nonresident alien at the beginning of the tax year and a resident alien at the end of the year and the other is a nonresident alien at the end of the year. 1040nr filing If you make this choice, the following two rules apply. 1040nr filing You and your spouse are treated, for income tax purposes, as residents for all tax years that the choice is in effect. 1040nr filing You must file a joint income tax return for the year you make the choice. 1040nr filing This means that neither of you can claim under any tax treaty not to be a U. 1040nr filing S. 1040nr filing resident for a tax year for which the choice is in effect. 1040nr filing You can file joint or separate returns in years after the year in which you make the choice. 1040nr filing Example 1. 1040nr filing Pat Smith, a U. 1040nr filing S. 1040nr filing citizen, is married to Norman, a nonresident alien. 1040nr filing Pat and Norman make the choice to treat Norman as a resident alien by attaching a statement to their joint return. 1040nr filing Pat and Norman must report their worldwide income for the year they make the choice and for all later years unless the choice is ended or suspended. 1040nr filing Although Pat and Norman must file a joint return for the year they make the choice, they can file either joint or separate returns for later years. 1040nr filing Example 2. 1040nr filing When Bob and Sharon Williams got married, both were nonresident aliens. 1040nr filing In June of last year, Bob became a resident alien and remained a resident for the rest of the year. 1040nr filing Bob and Sharon both choose to be treated as resident aliens by attaching a statement to their joint return for last year. 1040nr filing Bob and Sharon must report their worldwide income for last year and all later years unless the choice is ended or suspended. 1040nr filing Bob and Sharon must file a joint return for last year, but they can file either joint or separate returns for later years. 1040nr filing If you do not choose to treat your nonresident alien spouse as a U. 1040nr filing S. 1040nr filing resident, you may be able to use head of household filing status. 1040nr filing To use this status, you must pay more than half the cost of maintaining a household for certain dependents or relatives other than your nonresident alien spouse. 1040nr filing For more information, see Publication 501. 1040nr filing Social Security Number (SSN) If you choose to treat your nonresident alien spouse as a U. 1040nr filing S. 1040nr filing resident, your spouse must have either an SSN or an individual taxpayer identification number (ITIN). 1040nr filing To get an SSN for a nonresident alien spouse, apply at an office of the U. 1040nr filing S. 1040nr filing Social Security Administration (SSA) or U. 1040nr filing S. 1040nr filing consulate. 1040nr filing You must complete Form SS-5, Application for a Social Security Card, available at www. 1040nr filing socialsecurity. 1040nr filing gov or by calling 1-800-772-1213. 1040nr filing You must also provide original or certified copies of documents to verify that spouse's age, identity, and citizenship. 1040nr filing If the nonresident alien spouse is not eligible to get an SSN, he or she can file Form W-7, Application for IRS Individual Taxpayer Identification Number, with the IRS to apply for an ITIN. 1040nr filing How To Make the Choice Attach a statement, signed by both spouses, to your joint return for the first tax year for which the choice applies. 1040nr filing It should contain the following: A declaration that one spouse was a nonresident alien and the other spouse a U. 1040nr filing S. 1040nr filing citizen or resident alien on the last day of your tax year and that you choose to be treated as U. 1040nr filing S. 1040nr filing residents for the entire tax year, and The name, address, and social security number (or individual taxpayer identification number) of each spouse. 1040nr filing (If one spouse died, include the name and address of the person making the choice for the deceased spouse. 1040nr filing ) You generally make this choice when you file your joint return. 1040nr filing However, you also can make the choice by filing a joint amended return on Form 1040X. 1040nr filing Attach Form 1040, 1040A, or 1040EZ and print “Amended” across the top of the amended return. 1040nr filing If you make the choice with an amended return, you and your spouse also must amend any returns that you may have filed after the year for which you made the choice. 1040nr filing You generally must file the amended joint return within 3 years from the date you filed your original U. 1040nr filing S. 1040nr filing income tax return or 2 years from the date you paid your income tax for that year, whichever is later. 1040nr filing Table 1–1. 1040nr filing Ending the Choice To Treat Nonresident Alien Spouse as a Resident Revocation   Either spouse can revoke the choice for any tax year. 1040nr filing   • The revocation must be made by the due date for filing the tax return for that tax year. 1040nr filing   • The spouse who revokes the choice must attach a signed statement declaring that the choice is being revoked. 1040nr filing The statement revoking the choice must include the following:     • The name, address, and social security number (or taxpayer identification number) of each spouse. 1040nr filing     • The name and address of any person who is revoking the choice for a deceased spouse. 1040nr filing     • A list of any states, foreign countries, and possessions that have community property laws in which either spouse is domiciled or where real property is located from which either spouse receives income. 1040nr filing   • If the spouse revoking the choice does not have to file a return and does not file a claim for refund, send the statement to the Internal Revenue Service Center where the last joint return was filed. 1040nr filing Death   The death of either spouse ends the choice, beginning with the first tax year following the year in which the spouse died. 1040nr filing   • If the surviving spouse is a U. 1040nr filing S. 1040nr filing citizen or resident alien and is entitled to the joint tax rates as a surviving spouse, the choice will not end until the close of the last year for which these joint rates may be used. 1040nr filing   • If both spouses die in the same tax year, the choice ends on the first day after the close of the tax year in which the spouses died. 1040nr filing Divorce or  Legal separation   A divorce or legal separation ends the choice as of the beginning of the tax year in which the legal separation occurs. 1040nr filing Inadequate records   The Internal Revenue Service can end the choice for any tax year that either spouse has failed to keep adequate books, records, and other information necessary to determine the correct income tax liability, or to provide adequate access to those records. 1040nr filing Suspending the Choice The choice to be treated as a resident alien does not apply to any later tax year if neither of you is a U. 1040nr filing S. 1040nr filing citizen or resident alien at any time during the later tax year. 1040nr filing Example. 1040nr filing Dick Brown was a resident alien on December 31, 2010, and married to Judy, a nonresident alien. 1040nr filing They chose to treat Judy as a resident alien and filed a joint 2010 income tax return. 1040nr filing On January 10, 2012, Dick became a nonresident alien. 1040nr filing Judy had remained a nonresident alien. 1040nr filing Because Dick was a resident alien during part of 2012, Dick and Judy can file joint or separate returns for that year. 1040nr filing Neither Dick nor Judy was a resident alien at any time during 2013 and their choice is suspended for that year. 1040nr filing For 2013, both are treated as nonresident aliens. 1040nr filing If Dick becomes a resident alien again in 2014, their choice is no longer suspended and both are treated as resident aliens. 1040nr filing Ending the Choice Once made, the choice to be treated as a resident applies to all later years unless suspended (as explained earlier) or ended in one of the ways shown in Table 1-1. 1040nr filing If the choice is ended for any of the reasons listed in Table 1-1, neither spouse can make a choice in any later tax year. 1040nr filing Estimated Tax The requirements for determining who must pay estimated tax are the same for a U. 1040nr filing S. 1040nr filing citizen or resident abroad as for a taxpayer in the United States. 1040nr filing For current instructions on making estimated tax payments, see Form 1040-ES. 1040nr filing If you had a tax liability for 2013, you may have to pay estimated tax for 2014. 1040nr filing Generally, you must make estimated tax payments for 2014 if you expect to owe at least $1,000 in tax for 2014 after subtracting your withholding and credits and you expect your withholding and credits to be less than the smaller of: 90% of the tax to be shown on your 2014 tax return, or 100% of the tax shown on your 2013 tax return. 1040nr filing (The return must cover all 12 months. 1040nr filing ) If less than two-thirds of your gross income for 2013 and 2014 is from farming or fishing and your adjusted gross income for 2013 is more than $150,000 ($75,000 if you are married and file separately), substitute 110% for 100% in (2). 1040nr filing See Publication 505 for more information. 1040nr filing The first installment of estimated tax is due on April 15, 2014. 1040nr filing Foreign earned income exclusion. 1040nr filing   When figuring your estimated gross income, subtract amounts you expect to exclude under the foreign earned income exclusion and the foreign housing exclusion. 1040nr filing In addition, you can reduce your income by your estimated foreign housing deduction. 1040nr filing However, you must estimate tax on your nonexcluded income using the tax rates that will apply had you not excluded the income. 1040nr filing If the actual amount of the exclusion or deduction is less than you estimate, you may have to pay a penalty for underpayment of estimated tax. 1040nr filing   For more information about figuring your estimated tax, see Publication 505. 1040nr filing Other Forms You May Have To File FinCEN Form 114 (replaces Form TD F 90-22. 1040nr filing 1). 1040nr filing   Beginning October 1, 2013, Form 114, Report of Foreign Bank and Financial Accounts (FBAR), must be filed instead of Form TD F 90-22. 1040nr filing 1. 1040nr filing Form 114 is filed electronically with the Financial Crimes Enforcement Network (FinCEN). 1040nr filing See the filing instructions at www. 1040nr filing bsaefiling. 1040nr filing fincen. 1040nr filing treas. 1040nr filing gov/main. 1040nr filing html. 1040nr filing   You must file Form 114 if you had any financial interest in, or signature or other authority over a bank, securities, or other financial account in a foreign country. 1040nr filing You do not need to file the report if the assets are with a U. 1040nr filing S. 1040nr filing military banking facility operated by a financial institution or if the combined assets in the account(s) are $10,000 or less during the entire year. 1040nr filing   More information about the filing of Form 114 can be found in the instructions for the form. 1040nr filing FinCEN Form 105. 1040nr filing   You must file Form 105, Report of International Transportation of Currency or Monetary Instruments, if you physically transport, mail, ship, or cause to be physically transported, mailed, or shipped into or out of the United States, currency or other monetary instruments totaling more than $10,000 at one time. 1040nr filing Certain recipients of currency or monetary instruments also must file Form 105. 1040nr filing   More information about the filing of Form 105 can be found in the instructions on the back of the form. 1040nr filing Form 8938. 1040nr filing   You must file Form 8938 to report the ownership of specified foreign financial assets if the total value of those assets exceeds an applicable threshold amount (the “reporting threshold ”). 1040nr filing The reporting threshold varies depending on whether you live in the United States, are married, or file a joint income tax return with your spouse. 1040nr filing Specified foreign financial assets include any financial account maintained by a foreign financial institution and, to the extent held for investment, any stock, securities, or any other interest in a foreign entity and any financial instrument or contract with an issuer or counterparty that is not a U. 1040nr filing S. 1040nr filing person. 1040nr filing   You may have to pay penalties if you are required to file Form 8938 and fail to do so, or if you have an understatement of tax due to any transaction involving an undisclosed foreign financial asset. 1040nr filing   More information about the filing of Form 8938 can be found in the separate instructions for Form 8938. 1040nr filing Prev  Up  Next   Home   More Online Publications