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1040nr Turbotax

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1040nr Turbotax

1040nr turbotax Index A Accounting method Accrual, Accrual Method, Accrual method. 1040nr turbotax Automatic procedures, Automatic change procedures. 1040nr turbotax Cash, Cash Method, Cash method. 1040nr turbotax Change in, Change in Accounting Method Combination, Combination Method Special, Special Methods Accounting periods, Accounting Periods Accrual method Income - general rule, Income—General Rule Income - special rules, Income—Special Rules Of accounting, Accrual Method Adjusted basis, Adjusted basis. 1040nr turbotax Administrator, Executor or administrator. 1040nr turbotax Alternative fuel vehicle refueling property credit, Alternative fuel vehicle refueling property credit (Form 8911). 1040nr turbotax Alternative motor vehicle credit, Alternative motor vehicle credit (Form 8910). 1040nr turbotax Appeal rights, Appeals. 1040nr turbotax Appreciation, Appreciation. 1040nr turbotax Audits, Examinations (audits). 1040nr turbotax Automobile (see Car expenses) B Bad debts, Bad Debts Barter income, Bartering for Property or Services Basis of property, Basis. 1040nr turbotax Bribes, Expenses You Cannot Deduct Business expenses, Business Expenses Business income, Business Income Business use of your home, Business Use of Your Home C Canceled debt, Canceled Debt Cancellation of qualified real property business debt, Cancellation of qualified real property business debt. 1040nr turbotax Capital gain or loss, Is My Gain or Loss Ordinary or Capital? Car expenses, Car and Truck Expenses, Methods for Deducting Car and Truck Expenses Carbon dioxide sequestration credit, Carbon dioxide sequestration credit (Form 8933). 1040nr turbotax Cash discount, Cash discounts. 1040nr turbotax , Cash discounts. 1040nr turbotax Cash method Expenses, Expenses Income, Income Changing accounting method, Changing accounting method. 1040nr turbotax Charitable contributions, Expenses You Cannot Deduct Child employed by parent, Child employed by parent. 1040nr turbotax Claim for refund, Refunds. 1040nr turbotax Collection of tax, Collections. 1040nr turbotax Combination method of accounting, Combination Method Comments on publication, Comments and suggestions. 1040nr turbotax Condemned property, Condemned property. 1040nr turbotax Consignments, Consignments. 1040nr turbotax Construction allowances, Construction allowances. 1040nr turbotax Cost of goods sold, How To Figure Cost of Goods Sold Credit Alternative fuel vehicle refueling property, Alternative fuel vehicle refueling property credit (Form 8911). 1040nr turbotax Alternative motor vehicle, Alternative motor vehicle credit (Form 8910). 1040nr turbotax Carbon dioxide sequestration, Carbon dioxide sequestration credit (Form 8933). 1040nr turbotax Disabled access, Disabled access credit (Form 8826). 1040nr turbotax Distilled spirits, Distilled spirits credit (Form 8906). 1040nr turbotax Employer-provided childcare, Credit for employer-provided childcare facilities and services (Form 8882). 1040nr turbotax How to claim, How To Claim the Credit Indian coal, Renewable electricity, refined coal, and Indian coal production credit (Form 8835). 1040nr turbotax Investment, Investment credit (Form 3468). 1040nr turbotax Low sulfur diesel fuel production, Low sulfur diesel fuel production credit (Form 8896). 1040nr turbotax Low-income housing, Low-income housing credit (Form 8586). 1040nr turbotax New markets, New markets credit (Form 8874). 1040nr turbotax Nonconventional source fuel, Nonconventional source fuel credit (Form 8907). 1040nr turbotax Orphan drug, Orphan drug credit (Form 8820). 1040nr turbotax Qualified plug-in electric drive motor vehicle, Qualified plug-in electric drive motor vehicle credit (Form 8936). 1040nr turbotax Refined coal, Renewable electricity, refined coal, and Indian coal production credit (Form 8835). 1040nr turbotax Renewable electricity, Renewable electricity, refined coal, and Indian coal production credit (Form 8835). 1040nr turbotax Small employer health insurance premiums, Credit for small employer health insurance premiums (Form 8941). 1040nr turbotax Small employer pension plan startup costs, Credit for small employer pension plan startup costs (Form 8881). 1040nr turbotax Taxes paid on certain employee tips, Credit for employer social security and Medicare taxes paid on certain employee tips (Form 8846). 1040nr turbotax Work opportunity, Work opportunity credit (Form 5884). 1040nr turbotax D Damages, Damages. 1040nr turbotax Debt Bad, Bad Debts Canceled, Canceled Debt Qualified real property business, Qualified real property business debt. 1040nr turbotax Refund offset against, Offset against debts. 1040nr turbotax Definitions Accounting methods, Accounting Methods Accounting periods, Accounting Periods Barter, Bartering for Property or Services Basis, Basis. 1040nr turbotax Business bad debt, Business bad debt. 1040nr turbotax Calendar tax year, Calendar tax year. 1040nr turbotax Cash discount, Cash discounts. 1040nr turbotax , Cash discounts. 1040nr turbotax Disposition of property, What Is a Disposition of Property? Drawing account, Merchandise withdrawn from sale. 1040nr turbotax Entertainment expenses, Entertainment expenses. 1040nr turbotax Fair market value, Fair market value. 1040nr turbotax Fiscal tax year, Fiscal tax year. 1040nr turbotax Fringe benefit, Fringe benefits. 1040nr turbotax Local transportation expenses, Local transportation expenses. 1040nr turbotax Necessary expense, Introduction Net operating loss, Net Operating Losses (NOLs) Nonbusiness bad debt, Nonbusiness bad debts. 1040nr turbotax Ordinary expense, Introduction Principal place of business, Principal place of business. 1040nr turbotax Qualified long-term real property, Qualified long-term real property. 1040nr turbotax Qualified real property business debt, Cancellation of qualified real property business debt. 1040nr turbotax Rent, Rent Expense Restricted property, Other Income Retail space, Retail space. 1040nr turbotax Self-employment (SE) tax, Self-Employment (SE) Tax Sole proprietor, Sole proprietor. 1040nr turbotax Tax home, Local transportation expenses. 1040nr turbotax Trade discount, Trade discounts. 1040nr turbotax , Cash discounts. 1040nr turbotax Travel expenses, Travel, Meals, and Entertainment Depreciation Deduction, Depreciation Listed property, Listed property. 1040nr turbotax Depreciation, recapture, Recapture of depreciation. 1040nr turbotax Direct seller, Direct seller. 1040nr turbotax , Real estate agent or direct seller. 1040nr turbotax Disabled access credit, Disabled access credit (Form 8826). 1040nr turbotax Disposition of property Business property, Introduction Installment sale, Installment sales. 1040nr turbotax , Installment sales. 1040nr turbotax Like-kind exchange, Like-kind exchanges. 1040nr turbotax , Like-kind exchanges. 1040nr turbotax , Exchange of like-kind property. 1040nr turbotax Nontaxable exchange, Nontaxable exchanges. 1040nr turbotax Sale of a business, Sale of a business. 1040nr turbotax Distilled spirits credit, Distilled spirits credit (Form 8906). 1040nr turbotax Dividend income, Interest and Dividend Income Donation of inventory, Donation of inventory. 1040nr turbotax Drawing account, Merchandise withdrawn from sale. 1040nr turbotax Due date of return, When Is My Tax Return Due? E e-file, IRS e-file (Electronic Filing) Economic injury, Economic injury. 1040nr turbotax EFTPS, EFTPS Electronic filing, IRS e-file (Electronic Filing) Employee, Employee. 1040nr turbotax Employee benefit programs, Fringe benefits. 1040nr turbotax Employees' pay, Employees' Pay Employer identification number (EIN), Employer identification number (EIN). 1040nr turbotax Employment taxes About, Employment Taxes Deduction for, Employment taxes. 1040nr turbotax Entertainment expenses, Entertainment expenses. 1040nr turbotax (see Travel expenses) Escrow, payments placed in, Payment placed in escrow. 1040nr turbotax Estimated tax, How Do I Pay Income Tax? Examinations (audits), Examinations (audits). 1040nr turbotax Excise taxes About, Excise Taxes Deduction for, Excise taxes. 1040nr turbotax Executor, Executor or administrator. 1040nr turbotax Expenses, Business Expenses Bad debts, Bad Debts Car, Car and Truck Expenses Depreciation, Depreciation Employees' pay, Employees' Pay Entertainment, Travel, Meals, and Entertainment Home, business use, Business Use of Your Home Insurance, Insurance Interest, Interest Legal and professional fees, Legal and Professional Fees Meals, Travel, Meals, and Entertainment Nondeductible, Expenses You Cannot Deduct Other, Other Expenses You Can Deduct Pension plans, Pension Plans Rent, Rent Expense Taxes, Taxes Travel, Travel, Meals, and Entertainment Truck, Car and Truck Expenses F Fair market value, Fair market value. 1040nr turbotax Filing business taxes, Filing and Paying Business Taxes Fishing crew member, Fishing crew member. 1040nr turbotax , Fishing crew member. 1040nr turbotax Form 1040 (tax return), How Do I File? 1040-ES (estimated tax), How Do I Pay Income Tax? 1040-V (voucher), Balance due. 1040nr turbotax 1099-B (barter), Information returns. 1040nr turbotax 1099-MISC (miscellaneous), Form 1099-MISC. 1040nr turbotax , Information returns. 1040nr turbotax 1128 (change tax year), Change in tax year. 1040nr turbotax 2210 (underpayment of estimated tax), Penalty for underpayment of tax. 1040nr turbotax 2290 (excise tax for heavy trucks), Form 2290. 1040nr turbotax 3115 (change accounting method), Change in Accounting Method 3468 (investment credit), Investment credit (Form 3468). 1040nr turbotax 3800 (general business credit), Useful Items - You may want to see: 4562 (depreciation), Form 4562. 1040nr turbotax 4684 (casualty and theft), Casualties and thefts. 1040nr turbotax 4797 (sale of business property), Dispositions of business property and depreciable property. 1040nr turbotax , Condemned property. 1040nr turbotax , Listed property. 1040nr turbotax 4868 (extension), When Is My Tax Return Due? 5884 (work opportunity credit), Work opportunity credit (Form 5884). 1040nr turbotax 6251 (alternative minimum tax), Useful Items - You may want to see: 6252 (installment sale), Installment sales. 1040nr turbotax 720 (excise tax return), Form 720. 1040nr turbotax 8300 (cash payments over $10,000), Form 8300. 1040nr turbotax 8586 (low-income housing), Low-income housing credit (Form 8586). 1040nr turbotax 8594 (asset acquisition), Sale of a business. 1040nr turbotax 8820 (orphan drug credit), Orphan drug credit (Form 8820). 1040nr turbotax 8824 (like-kind exchange), Like-kind exchanges. 1040nr turbotax , Like-kind exchanges. 1040nr turbotax 8826 (disabled access credit), Disabled access credit (Form 8826). 1040nr turbotax 8829 (business in home), Deduction limit. 1040nr turbotax 8835 (renewable electricity, coal credit), Renewable electricity, refined coal, and Indian coal production credit (Form 8835). 1040nr turbotax 8846 (credit for social security on tip income), Credit for employer social security and Medicare taxes paid on certain employee tips (Form 8846). 1040nr turbotax 8857 (innocent spouse), Innocent spouse relief. 1040nr turbotax 8874 (new markets credit), New markets credit (Form 8874). 1040nr turbotax 8879 (self-selected PIN), Using an Authorized IRS e-file Provider 8881 (pension plan startup costs credit), Credit for small employer pension plan startup costs (Form 8881). 1040nr turbotax 8882 (employer-provided childcare credit), Credit for employer-provided childcare facilities and services (Form 8882). 1040nr turbotax 8886 (transaction statement), Reminders 8896 (low sulfur diesel fuel production credit), Low sulfur diesel fuel production credit (Form 8896). 1040nr turbotax 8906 (distilled spirits credit), Distilled spirits credit (Form 8906). 1040nr turbotax 8907 (nonconventional fuel credit), Nonconventional source fuel credit (Form 8907). 1040nr turbotax 8910 (alternative vehicle credit), Alternative motor vehicle credit (Form 8910). 1040nr turbotax , Car and Truck Expenses 8911 (alternative fuel refueling property credit), Alternative fuel vehicle refueling property credit (Form 8911). 1040nr turbotax 8933 (carbon dioxide sequestration credit), Carbon dioxide sequestration credit (Form 8933). 1040nr turbotax 8936 (qualified plug-in electric drive motor vehicle), Qualified plug-in electric drive motor vehicle credit (Form 8936). 1040nr turbotax 8941 (small employer health insurance premiums), Credit for small employer health insurance premiums (Form 8941). 1040nr turbotax 982 (discharge of indebtedness), Exclusions Schedule C (sole proprietor), How Do I File? Schedule C-EZ (sole proprietor), How Do I File? Schedule SE (self-employment tax), Who must pay self-employment tax. 1040nr turbotax SS-4 (application for EIN), Employer identification number (EIN). 1040nr turbotax SS-5 (application for SSN), Social security number (SSN). 1040nr turbotax W-2 (report wages), Form W-2. 1040nr turbotax W-4 (employee withholding), Employee. 1040nr turbotax W-7 (application for ITIN), Individual taxpayer identification number (ITIN). 1040nr turbotax W-9 (request for TIN), Other payee. 1040nr turbotax Fringe benefits, Fringe benefits. 1040nr turbotax Fuel taxes, Fuel taxes. 1040nr turbotax G Gains and losses, Gains and losses. 1040nr turbotax General business credits, General Business Credits, Business Credits Gross profit Accuracy, Testing Gross Profit Accuracy Additions to, Additions to Gross Profit Guidelines for selected occupations, Guidelines for Selected Occupations (see also Occupations, selected) H Health insurance, deduction for self-employed, Self-employed health insurance deduction. 1040nr turbotax Home, business use of, Business Use of Your Home Hotels, boarding houses, and apartments, Hotels, boarding houses, and apartments. 1040nr turbotax Husband and wife business, Business owned and operated by spouses. 1040nr turbotax I Identification numbers, Identification Numbers Income, Items That Are Not Income (see also Not income) Accounting for your, Accounting for Your Income Barter, Bartering for Property or Services Business, Business Income Damages, Damages. 1040nr turbotax Gains and losses, Gains and losses. 1040nr turbotax Kickbacks, Kickbacks. 1040nr turbotax Kinds of income, Kinds of Income Lost income payments, Lost income payments. 1040nr turbotax Other, Other Income Paid to a third party, Income paid to a third party. 1040nr turbotax Personal property rent, Personal Property Rents Promissory notes, Promissory notes. 1040nr turbotax Recapture of depreciation, Recapture of depreciation. 1040nr turbotax Recovery of items previously deducted, Recovery of items previously deducted. 1040nr turbotax Rental, Real Estate Rents, Personal Property Rents Restricted property, Restricted property. 1040nr turbotax Income tax About, Income Tax Deduction for, Income taxes. 1040nr turbotax How to pay, How Do I Pay Income Tax? Underpayment penalty, Penalty for underpayment of tax. 1040nr turbotax Income tax return, who must file, Do I Have To File an Income Tax Return? Independent contractor, Independent contractor. 1040nr turbotax , Employment Taxes, Sole proprietor or independent contractor. 1040nr turbotax Individual taxpayer identification number (ITIN), Individual taxpayer identification number (ITIN). 1040nr turbotax Information returns, Information Returns Information, How to get more, How To Get More Information Innocent spouse relief, Innocent spouse relief. 1040nr turbotax Installment sales, Installment sales. 1040nr turbotax Insurance Expense, Insurance Nondeductible premiums, Nondeductible premiums. 1040nr turbotax Prepayment, Prepayment. 1040nr turbotax Proceeds, Insurance proceeds. 1040nr turbotax Self-employed health, Self-employed health insurance deduction. 1040nr turbotax Insurance agent Former, Insurance agent, former. 1040nr turbotax Retired, Insurance agent, retired. 1040nr turbotax Interest Expenses, Interest Income, Interest and Dividend Income Inventories, Inventories Investment credit, Investment credit (Form 3468). 1040nr turbotax K Kickbacks, Kickbacks. 1040nr turbotax , Expenses You Cannot Deduct L Lease bonus, Lease bonus. 1040nr turbotax Lease cancellation payments, Lease cancellation payments. 1040nr turbotax Legal fees, Legal and Professional Fees Like-kind exchanges, Like-kind exchanges. 1040nr turbotax , Exchange of like-kind property. 1040nr turbotax Limited liability company, Limited liability company (LLC). 1040nr turbotax Listed property, Listed property. 1040nr turbotax Lobbying expense, Expenses You Cannot Deduct Local transportation expenses, Local transportation expenses. 1040nr turbotax Lodging, Meals and lodging. 1040nr turbotax Long-term capital gain or loss, Is My Capital Gain or Loss Short Term or Long Term? Lost income payments, Lost income payments. 1040nr turbotax Low sulfur diesel fuel production credit, Low sulfur diesel fuel production credit (Form 8896). 1040nr turbotax Low-income housing credit, Low-income housing credit (Form 8586). 1040nr turbotax M Meals, Meals and lodging. 1040nr turbotax (see Travel expenses) Methods for figuring net earnings, Methods for Figuring Net Earnings Mileage rate for vehicles, Standard mileage rate. 1040nr turbotax Motor vehicle, alternative credit, Alternative motor vehicle credit (Form 8910). 1040nr turbotax N Net operating losses, Net Operating Losses (NOLs) Net profit or loss, Introduction New markets credit, New markets credit (Form 8874). 1040nr turbotax Newspaper carrier or distributor, Newspaper carrier or distributor. 1040nr turbotax Newspaper or magazine vendor, Newspaper or magazine vendor. 1040nr turbotax Nonbusiness bad debt, Nonbusiness bad debts. 1040nr turbotax Nonconventional source fuel credit, Nonconventional source fuel credit (Form 8907). 1040nr turbotax Nondeductible insurance premiums, Nondeductible premiums. 1040nr turbotax Nonemployee compensation, Introduction Nontaxable exchanges, Nontaxable exchanges. 1040nr turbotax Not income Appreciation, Appreciation. 1040nr turbotax Consignments, Consignments. 1040nr turbotax Constructions allowances, Construction allowances. 1040nr turbotax Exchange of like-kind property, Exchange of like-kind property. 1040nr turbotax Leasehold improvements, Leasehold improvements. 1040nr turbotax Loans, Loans. 1040nr turbotax Sales tax, Sales tax. 1040nr turbotax Not-for-profit activities, Not-for-Profit Activities Notary public, Notary public. 1040nr turbotax , Notary public. 1040nr turbotax O Occupations, selected Administrator, Executor or administrator. 1040nr turbotax Direct seller, Direct seller. 1040nr turbotax , Real estate agent or direct seller. 1040nr turbotax Executor, Executor or administrator. 1040nr turbotax Fishing crew member, Fishing crew member. 1040nr turbotax Insurance agent, former, Insurance agent, former. 1040nr turbotax Insurance agent, retired, Insurance agent, retired. 1040nr turbotax Newspaper carrier or distributor, Newspaper carrier or distributor. 1040nr turbotax Newspaper or magazine vendor, Newspaper or magazine vendor. 1040nr turbotax Notary public, Notary public. 1040nr turbotax Public official, Public official. 1040nr turbotax Real estate agent, Real estate agent or direct seller. 1040nr turbotax Securities dealer, Securities dealer. 1040nr turbotax Securities trader, Securities trader. 1040nr turbotax Office in the home, Office in the home. 1040nr turbotax (see also Business use of your home) Optional methods, using both, Using Both Optional Methods Ordinary gain or loss, Is My Gain or Loss Ordinary or Capital? Orphan drug credit, Orphan drug credit (Form 8820). 1040nr turbotax P Parking fees, Parking fees and tolls. 1040nr turbotax Partners, husband and wife, Business owned and operated by spouses. 1040nr turbotax Pay, kinds of, Kinds of pay. 1040nr turbotax Paying Business taxes, Filing and Paying Business Taxes Income tax, How Do I Pay Income Tax? Payments to third parties, Payments to third parties. 1040nr turbotax Penalties and fines, Expenses You Cannot Deduct Penalty Failure to file Form 8300, Penalties. 1040nr turbotax Failure to file information returns, Penalties. 1040nr turbotax Failure to furnish correct payee statements, Penalties. 1040nr turbotax Underpayment of tax, Penalty for underpayment of tax. 1040nr turbotax Waiver of, Waiver of penalties. 1040nr turbotax Pension plans, Pension Plans Personal property tax, Personal property tax. 1040nr turbotax Prepaid expense Extends useful life, Prepayment. 1040nr turbotax Rent, Rent paid in advance. 1040nr turbotax Professional fees, Legal and Professional Fees Promissory notes, Promissory notes. 1040nr turbotax Public official, Public official. 1040nr turbotax Punitive damages, Punitive damages. 1040nr turbotax Q Qualified plug-in electric drive motor vehicle credit, Qualified plug-in electric drive motor vehicle credit (Form 8936). 1040nr turbotax Qualified real property business debt, Qualified real property business debt. 1040nr turbotax R Real estate Agent, Real estate agent or direct seller. 1040nr turbotax Dealer, Real estate dealer. 1040nr turbotax Rent, Real Estate Rents Taxes, Real estate taxes. 1040nr turbotax Recovery of items previously deducted, Recovery of items previously deducted. 1040nr turbotax Refund Inquiries, Refund inquiries. 1040nr turbotax Offsets against debts, Offset against debts. 1040nr turbotax Related persons Unreasonable rent, Unreasonable rent. 1040nr turbotax Renewable electricity, refined coal, and Indian coal production credit, Renewable electricity, refined coal, and Indian coal production credit (Form 8835). 1040nr turbotax Rent expense, Rent Expense Rental income, Real Estate Rents Repayment of income, Repayment of income. 1040nr turbotax Reportable transaction disclosure statement, Reminders Reporting self-employment tax, Reporting Self-Employment Tax Restricted property, Restricted property. 1040nr turbotax Retirement plans (see Pension plans) S Salaries, Employees' Pay Sale of a business, Sale of a business. 1040nr turbotax Sale of property, What Is a Disposition of Property? (see also Disposition of property) Sales of assets, Introduction Sales tax, Sales tax. 1040nr turbotax Schedule C, How Do I File? Schedule C-EZ, How Do I File? Schedule SE (Form 1040), Who must pay self-employment tax. 1040nr turbotax Schedule SE, filing requirement, Reporting Self-Employment Tax SE tax About, Self-Employment (SE) Tax Aliens, Aliens. 1040nr turbotax Child employed by parent, Child employed by parent. 1040nr turbotax Church employee, Church employee. 1040nr turbotax Community property income, Community Property Income Deduction for, Self-employment tax. 1040nr turbotax Earning credits, Earning credits in 2013 and 2014. 1040nr turbotax Effects of using an optional method, Effects of using an optional method. 1040nr turbotax Farm optional method, Farm Optional Method Fiscal year filer, Fiscal Year Filer Fishing crew member, Fishing crew member. 1040nr turbotax Gain or loss, Gain or Loss Government employee, State or local government employee. 1040nr turbotax , Foreign government or international organization employee. 1040nr turbotax Joint return, Joint return. 1040nr turbotax Lost income payments, Lost Income Payments Maximum earnings For 2011, What's New for 2013, Maximum earnings subject to SE tax. 1040nr turbotax Subject to, Maximum earnings subject to self-employment tax. 1040nr turbotax Methods for figuring net earnings, Methods for Figuring Net Earnings More than one business, More Than One Business, More than one business. 1040nr turbotax Nonfarm optional method, Nonfarm Optional Method Notary public, Notary public. 1040nr turbotax Optional methods Farm, Farm Optional Method Nonfarm, Nonfarm Optional Method Rate, SE tax rate. 1040nr turbotax Regular method, Regular Method Residing abroad, U. 1040nr turbotax S. 1040nr turbotax citizen or resident alien residing abroad. 1040nr turbotax Special rules and exceptions, Special Rules and Exceptions Tax rate, SE tax rate. 1040nr turbotax Time limit for posting income, The Social Security Administration (SSA) time limit for posting self-employment income. 1040nr turbotax Who must pay, Who Must Pay SE Tax? Why use an optional method, Why use an optional method? Section 179 Deduction, Section 179 deduction. 1040nr turbotax Property, Section 179 property. 1040nr turbotax Securities Dealer, Securities dealer. 1040nr turbotax Trader, Securities trader. 1040nr turbotax Self-employed health insurance deduction, Self-employed health insurance deduction. 1040nr turbotax Self-employment tax (see SE tax) Settlement payments, Settlement payments. 1040nr turbotax Short-term capital gain or loss, Is My Capital Gain or Loss Short Term or Long Term? Signature, electronic, Electronic signatures. 1040nr turbotax Small Business Administration, Small Business Administration Small employer health insurance premiums credit, Credit for small employer health insurance premiums (Form 8941). 1040nr turbotax Social security coverage, Social security coverage. 1040nr turbotax Social security number (SSN), Social security number (SSN). 1040nr turbotax Sole proprietor, Sole proprietor. 1040nr turbotax , Sole proprietor or independent contractor. 1040nr turbotax Sport utility vehicle, Section 179 deduction. 1040nr turbotax Standard mileage rate, Standard mileage rate. 1040nr turbotax For 2011, What's New for 2013 Statutory employee, Statutory employee. 1040nr turbotax Suggestions for publication, Comments and suggestions. 1040nr turbotax SUV, Section 179 deduction. 1040nr turbotax T Tax home, Local transportation expenses. 1040nr turbotax , Travel expenses. 1040nr turbotax Tax preparation fees, Tax preparation fees. 1040nr turbotax Tax refund Claim for, Refunds. 1040nr turbotax Offset against debts, Offset against debts. 1040nr turbotax Tax return How to file, How Do I File? Who must file, Do I Have To File an Income Tax Return? Tax year, Accounting Periods Calendar, Calendar tax year. 1040nr turbotax Change in, Change in tax year. 1040nr turbotax Fiscal, Fiscal tax year. 1040nr turbotax Taxes Deduction for, Taxes Employment, Employment Taxes, Employment taxes. 1040nr turbotax Excise, Excise Taxes, Excise taxes. 1040nr turbotax Fuel, Fuel taxes. 1040nr turbotax Income, Income Tax, Income taxes. 1040nr turbotax Paid on certain employee tips, Credit for employer social security and Medicare taxes paid on certain employee tips (Form 8846). 1040nr turbotax Personal property, Personal property tax. 1040nr turbotax Real estate, Real estate taxes. 1040nr turbotax Sales, Sales tax. 1040nr turbotax Self-employment, Self-Employment (SE) Tax, Self-employment tax. 1040nr turbotax Taxpayer rights, Declaration of Taxpayer Rights Third parties, Payments to, Payments to third parties. 1040nr turbotax Tolls, Parking fees and tolls. 1040nr turbotax Trade discount, Trade discounts. 1040nr turbotax , Trade discounts. 1040nr turbotax Trade or business, Trade or business. 1040nr turbotax Trailer park owner, Trailer park owner. 1040nr turbotax Transportation expenses, Local transportation expenses. 1040nr turbotax Travel expenses, Travel expenses. 1040nr turbotax U Underpayment of tax penalty, Penalty for underpayment of tax. 1040nr turbotax Uniform capitalization rules, Uniform Capitalization Rules W Wages, Employees' Pay Work opportunity credit, Work opportunity credit (Form 5884). 1040nr turbotax Prev  Up     Home   More Online Publications
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The 1040nr Turbotax

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