Filing Your Taxes Online is Fast, Easy and Secure.
Start now and receive your tax refund in as little as 7 days.

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

Find tax credits for everything from school tuition to buying a hybri

3. E-File for FREE

E-file free with direct deposit to get your refund in as few as 7 days.

Filing your taxes with paper mail can be difficult and it could take weeks for your refund to arrive. IRS e-file is easy, fast and secure. There is no paperwork going to the IRS so tax refunds can be processed in as little as 7 days with direct deposit. As you prepare your taxes online, you can see your tax refund in real time.

FREE audit support and representation from an enrolled agent – NEW and only from H&R Block

2005 Tax Return Software Free

2012 1040 FormFiling State Income Taxes OnlineFree State Tax Filing 20132012 Tax FormsReal Life Tax Filing Block Military NonmilitaryFiling A Tax Amendment1020 Ez FormH&r Block State Tax CouponWww Irs Gov 2011freeefileFiling Amended Tax Returns1040x Instructions For DummiesIrs GovHow Do I File A 2012 Tax ReturnTurbotax 2011 FreeEarned Income Tax Credit CalculatorFiling 1040x InstructionsFreetaxusa 20102013 Form 1040ez InstructionsCan I Refile My TaxesHow Do I File A 1040xE File Amended 1040xHow To Do Back TaxesHow Many Years Can You File Back TaxesHow Do I File 2010 Tax ReturnTax Act 2010Hrblock EfileIrsFree Tax FilingIrs Amendment FormAmending My 2012 Tax Return1040ez Free Online FilingFree Irs Tax Forms 2012Www Hnrblock ComHow To File State Taxes For FreeIrs Free File 1040ezMilitary PayFile A Tax Extension1040 Es Payment VoucherIrs For 1040xIrs Form1040

2005 Tax Return Software Free

2005 tax return software free 8. 2005 tax return software free   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. 2005 tax return software free 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. 2005 tax return software free Introduction This chapter discusses how to pay your U. 2005 tax return software free S. 2005 tax return software free income tax as you earn or receive income during the year. 2005 tax return software free In general, the federal income tax is a pay as you go tax. 2005 tax return software free There are two ways to pay as you go. 2005 tax return software free Withholding. 2005 tax return software free If you are an employee, your employer probably withholds income tax from your pay. 2005 tax return software free Tax may also be withheld from certain other income—including pensions, bonuses, commissions, and gambling winnings. 2005 tax return software free In each case, the amount withheld is paid to the U. 2005 tax return software free S. 2005 tax return software free Treasury in your name. 2005 tax return software free Estimated tax. 2005 tax return software free If you do not pay your tax through withholding, or do not pay enough tax that way, you might have to pay estimated tax. 2005 tax return software free People who are in business for themselves generally will have to pay their tax this way. 2005 tax return software free You may have to pay estimated tax if you receive income such as dividends, interest, rent, and royalties. 2005 tax return software free Estimated tax is used to pay not only income tax, but self-employment tax and alternative minimum tax as well. 2005 tax return software free 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. 2005 tax return software free Useful Items - You may want to see: Publication 515 Withholding of Tax on Nonresident Aliens and Foreign Entities 901 U. 2005 tax return software free S. 2005 tax return software free 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. 2005 tax return software free S. 2005 tax return software free 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. 2005 tax return software free S. 2005 tax return software free Real Property Interests 13930 Application for Central Withholding Agreement See chapter 12 for information about getting these publications and forms. 2005 tax return software free 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. 2005 tax return software free 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. 2005 tax return software free 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. 2005 tax return software free S. 2005 tax return software free citizens. 2005 tax return software free 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. 2005 tax return software free 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. 2005 tax return software free However, if the income is effectively connected with a U. 2005 tax return software free S. 2005 tax return software free trade or business, file Form W-8ECI instead. 2005 tax return software free Withholding From Compensation The following discussion generally applies only to nonresident aliens. 2005 tax return software free Tax is withheld from resident aliens in the same manner as U. 2005 tax return software free S. 2005 tax return software free citizens. 2005 tax return software free 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. 2005 tax return software free S. 2005 tax return software free citizens. 2005 tax return software free 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. 2005 tax return software free 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. 2005 tax return software free 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). 2005 tax return software free These are services you are required to perform as an employee and as a condition of receiving the scholarship or fellowship (or tuition reduction). 2005 tax return software free Nonresident aliens should fill out Form W-4 using the following instructions instead of the instructions on the Form W-4. 2005 tax return software free 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. 2005 tax return software free Enter your social security number (SSN) on line 2. 2005 tax return software free Do not enter an individual taxpayer identification number (ITIN). 2005 tax return software free Check only “Single” marital status on line 3 (regardless of your actual marital status). 2005 tax return software free Claim only one allowance on line 5, unless you are a resident of Canada, Mexico, or South Korea, or a U. 2005 tax return software free S. 2005 tax return software free national. 2005 tax return software free Write “Nonresident Alien” or “NRA” on the dotted line on line 6. 2005 tax return software free You can request additional withholding on line 6 at your option. 2005 tax return software free Do not claim “Exempt” withholding status on line 7. 2005 tax return software free A U. 2005 tax return software free S. 2005 tax return software free national is an individual who, although not a U. 2005 tax return software free S. 2005 tax return software free citizen, owes his or her allegiance to the United States. 2005 tax return software free U. 2005 tax return software free S. 2005 tax return software free nationals include American Samoans, and Northern Mariana Islanders who chose to become U. 2005 tax return software free S. 2005 tax return software free nationals instead of U. 2005 tax return software free S. 2005 tax return software free citizens. 2005 tax return software free See Withholding on Scholarships and Fellowship Grants later, for how to fill out Form W-4 if you receive a U. 2005 tax return software free S. 2005 tax return software free source scholarship or fellowship grant that is not a payment for services. 2005 tax return software free Students and business apprentices from India. 2005 tax return software free   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. 2005 tax return software free 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. 2005 tax return software free S. 2005 tax return software free taxpayer's 2013 return. 2005 tax return software free 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. 2005 tax return software free S. 2005 tax return software free citizens. 2005 tax return software free Household employees. 2005 tax return software free   If you work as a household employee, your employer does not have to withhold income tax. 2005 tax return software free However, you may agree to voluntary income tax withholding by filing a Form W-4 with your employer. 2005 tax return software free The agreement goes into effect when your employer accepts the agreement by beginning the withholding. 2005 tax return software free You or your employer may end the agreement by letting the other know in writing. 2005 tax return software free Agricultural workers. 2005 tax return software free   If you are an agricultural worker on an H-2A visa, your employer does not have to withhold income tax. 2005 tax return software free However, your employer will withhold income tax only if you and your employer agree to withhold. 2005 tax return software free In that case, you must provide your employer with a properly completed Form W-4. 2005 tax return software free You can find more information about not having tax withheld at www. 2005 tax return software free irs. 2005 tax return software free gov/Individuals/International-Taxpayers/Foreign-Agricultural-Workers. 2005 tax return software free Wages Exempt From Withholding Wages that are exempt from U. 2005 tax return software free S. 2005 tax return software free income tax under an income tax treaty are generally exempt from withholding. 2005 tax return software free For information on how to claim this exemption from withholding, see Income Entitled to Tax Treaty Benefits , later. 2005 tax return software free Wages paid to aliens who are residents of American Samoa, Canada, Mexico, Puerto Rico, or the U. 2005 tax return software free S. 2005 tax return software free Virgin Islands may be exempt from withholding. 2005 tax return software free The following paragraphs explain these exemptions. 2005 tax return software free Residents of Canada or Mexico engaged in transportation-related employment. 2005 tax return software free   Certain residents of Canada or Mexico who enter or leave the United States at frequent intervals are not subject to withholding on their wages. 2005 tax return software free 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. 2005 tax return software free    This employment is subject to withholding of social security and Medicare taxes unless the services are performed for a railroad. 2005 tax return software free   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. 2005 tax return software free S. 2005 tax return software free 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. 2005 tax return software free   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. 2005 tax return software free Residents of American Samoa and Puerto Rico. 2005 tax return software free   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. 2005 tax return software free Residents of the U. 2005 tax return software free S. 2005 tax return software free Virgin Islands. 2005 tax return software free   Nonresident aliens who are bona fide residents of the U. 2005 tax return software free S Virgin Islands are not subject to withholding of U. 2005 tax return software free S. 2005 tax return software free tax on income earned while temporarily employed in the United States. 2005 tax return software free This is because those persons pay their income tax to the U. 2005 tax return software free S. 2005 tax return software free Virgin Islands. 2005 tax return software free To avoid having tax withheld on income earned in the United States, bona fide residents of the U. 2005 tax return software free S. 2005 tax return software free Virgin Islands should write a letter, in duplicate, to their employers, stating that they are bona fide residents of the U. 2005 tax return software free S. 2005 tax return software free Virgin Islands and expect to pay tax on all income to the U. 2005 tax return software free S. 2005 tax return software free Virgin Islands. 2005 tax return software free 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. 2005 tax return software free 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. 2005 tax return software free 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. 2005 tax return software free Withholding on Tip Income Tips you receive during the year for services performed in the United States are subject to U. 2005 tax return software free S. 2005 tax return software free income tax. 2005 tax return software free Include them in taxable income. 2005 tax return software free In addition, tips received while working for one employer, amounting to $20 or more in a month, are subject to graduated withholding. 2005 tax return software free 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. 2005 tax return software free 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. 2005 tax return software free 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. 2005 tax return software free You must agree to timely file an income tax return for the current tax year. 2005 tax return software free Central withholding agreements. 2005 tax return software free   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. 2005 tax return software free Under no circumstances will such a withholding agreement reduce taxes withheld to less than the anticipated amount of income tax liability. 2005 tax return software free   File Form 13930 and the required attachments with the IRS to request a central withholding agreement. 2005 tax return software free Either you or your authorized representative can file the form. 2005 tax return software free It should be sent to the IRS at least 45 days before the tour begins or the event occurs. 2005 tax return software free Exceptions will be considered on a case by case basis. 2005 tax return software free   For more information on the CWA program, go to www. 2005 tax return software free irs. 2005 tax return software free gov/Individuals/International-Taxpayers/Central-Withholding-Agreements. 2005 tax return software free Final payment exemption. 2005 tax return software free   Your final payment of compensation during the tax year for independent personal services may be entirely or partly exempt from withholding. 2005 tax return software free This exemption is available only once during your tax year and applies to a maximum of $5,000 of compensation. 2005 tax return software free To obtain this exemption, you or your agent must give the following statements and information to the Commissioner or his delegate. 2005 tax return software free 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. 2005 tax return software free Each statement must be signed by the withholding agent and verified by a declaration that it is made under penalties of perjury. 2005 tax return software free 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. 2005 tax return software free This statement must also be signed by the withholding agent and verified by a declaration that it is made under penalties of perjury. 2005 tax return software free 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. 2005 tax return software free 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. 2005 tax return software free The amount of your outstanding tax liabilities, if any, including interest and penalties, from the current tax year or prior tax periods. 2005 tax return software free 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. 2005 tax return software free 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. 2005 tax return software free   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. 2005 tax return software free Ordinary and necessary business expenses can be taken into account if proven to the satisfaction of the Commissioner or his delegate. 2005 tax return software free   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. 2005 tax return software free 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. 2005 tax return software free 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). 2005 tax return software free 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. 2005 tax return software free S. 2005 tax return software free national and are not a resident of Canada, Mexico, or South Korea. 2005 tax return software free For purposes of 30% withholding, the exemption is prorated at $10. 2005 tax return software free 82 a day in 2014 for the period that labor or personal services are performed in the United States. 2005 tax return software free 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. 2005 tax return software free Example. 2005 tax return software free Eric Johannsen, who is a resident of Country X worked under a contract with a U. 2005 tax return software free S. 2005 tax return software free firm (not as an employee) in the United States for 100 days during 2014 before returning to his country. 2005 tax return software free He earned $6,000 for the services performed (not considered wages) in the United States. 2005 tax return software free Eric is married and has three dependent children. 2005 tax return software free His wife is not employed and has no income subject to U. 2005 tax return software free S. 2005 tax return software free tax. 2005 tax return software free 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. 2005 tax return software free 82), and withholding at 30% is applied against the balance. 2005 tax return software free Thus, $1,475. 2005 tax return software free 40 in tax is withheld from Eric's earnings (30% of $4,918 ($6,000 − $1,082). 2005 tax return software free U. 2005 tax return software free S. 2005 tax return software free nationals or residents of Canada, Mexico, or South Korea. 2005 tax return software free   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. 2005 tax return software free However, if you are a U. 2005 tax return software free S. 2005 tax return software free national or a resident of Canada or Mexico, you are allowed the same personal exemptions as U. 2005 tax return software free S. 2005 tax return software free citizens. 2005 tax return software free For the 30% (or lower treaty) rate withholding, you can take $10. 2005 tax return software free 82 per day for each allowable exemption in 2014. 2005 tax return software free 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. 2005 tax return software free However, the additional exemptions for your spouse and children must be further prorated as explained in chapter 5 under Exemptions . 2005 tax return software free Students and business apprentices from India. 2005 tax return software free   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. 2005 tax return software free S. 2005 tax return software free taxpayer's 2014 return. 2005 tax return software free 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. 2005 tax return software free S. 2005 tax return software free citizens. 2005 tax return software free For the 30% (or lower treaty rate) withholding on compensation for independent personal services performed in the United States, you are allowed $10. 2005 tax return software free 82 per day for each allowable exemption in 2014. 2005 tax return software free Refund of Taxes Withheld in Error Multi-level marketing. 2005 tax return software free   If you are a distributor for a multi-level marketing company who had taxes withheld in error, file a U. 2005 tax return software free S. 2005 tax return software free 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. 2005 tax return software free You must also attach to the U. 2005 tax return software free S. 2005 tax return software free income tax return or claim for refund supporting information that includes, but is not limited to, the following items. 2005 tax return software free A copy of your Form W-2, Form 1042-S, or Form 1099 to prove the amount of taxes withheld. 2005 tax return software free A statement explaining why income reported on your Form W-2, Form 1042-S, or Form 1099 is not subject to U. 2005 tax return software free S. 2005 tax return software free taxation. 2005 tax return software free A statement listing all the dates you entered and left the United States during the taxable year. 2005 tax return software free 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. 2005 tax return software free 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. 2005 tax return software free 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. 2005 tax return software free Any further relevant document or record supporting your claim that the taxes were withheld in error. 2005 tax return software free 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. 2005 tax return software free It also includes 85% of social security benefits paid to nonresident aliens. 2005 tax return software free Refund of taxes withheld in error on social security benefits paid to resident aliens. 2005 tax return software free   Social security benefits paid to a lawful permanent resident (green card holder) are not subject to 30% withholding. 2005 tax return software free For U. 2005 tax return software free S. 2005 tax return software free 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. 2005 tax return software free See Green Card Test in chapter 1. 2005 tax return software free 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. 2005 tax return software free SSA will refund taxes erroneously withheld if the refund can be processed during the same calendar year in which the tax was withheld. 2005 tax return software free 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. 2005 tax return software free You must also attach the following to your Form 1040 or 1040A. 2005 tax return software free A copy of Form SSA-1042S, Social Security Benefit Statement. 2005 tax return software free A copy of the “green card. 2005 tax return software free ” 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. 2005 tax return software free S. 2005 tax return software free lawful permanent resident and my green card has been neither revoked nor administratively or judicially determined to have been abandoned. 2005 tax return software free I am filing a U. 2005 tax return software free S. 2005 tax return software free income tax return for the tax year as a resident alien reporting all of my worldwide income. 2005 tax return software free 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. 2005 tax return software free Other income not subject to withholding of 30% (or lower treaty) rate. 2005 tax return software free   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. 2005 tax return software free Income (other than compensation) that is effectively connected with your U. 2005 tax return software free S. 2005 tax return software free trade or business. 2005 tax return software free Income from real property that you choose to treat as effectively connected with a U. 2005 tax return software free S. 2005 tax return software free trade or business. 2005 tax return software free See Income From Real Property in chapter 4 for details about this choice. 2005 tax return software free   Special rules for withholding on partnership income, scholarships, and fellowships are explained next. 2005 tax return software free Tax Withheld on Partnership Income If you are a foreign partner in a U. 2005 tax return software free S. 2005 tax return software free or foreign partnership, the partnership will withhold tax on your share of effectively connected taxable income (ECTI) from the partnership. 2005 tax return software free You may be able to reduce your ECTI subject to withholding by certain partner-level deductions. 2005 tax return software free Generally, you must use Form 8804-C for this purpose. 2005 tax return software free See the Instructions for Form 8804-C for more information. 2005 tax return software free 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. 2005 tax return software free 6% for 2014). 2005 tax return software free 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. 2005 tax return software free Long-term capital gain is an example of a particular type of income to which the highest tax rate applies. 2005 tax return software free Claim the tax withheld as a credit on your 2014 Form 1040NR. 2005 tax return software free The partnership will give you a statement on Form 8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax, showing the tax withheld. 2005 tax return software free A partnership that is publicly traded will withhold tax on your actual distributions of effectively connected income. 2005 tax return software free In this case the partnership will give you a statement on Form 1042-S, Foreign Person's U. 2005 tax return software free S. 2005 tax return software free Source Income Subject to Withholding. 2005 tax return software free Withholding on Scholarships and Fellowship Grants There is no withholding on a qualified scholarship received by a candidate for a degree. 2005 tax return software free See chapter 3. 2005 tax return software free If you are a nonresident alien student or grantee with an “F,” “J,” “M,” or “Q” visa and you receive a U. 2005 tax return software free S. 2005 tax return software free 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. 2005 tax return software free 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. 2005 tax return software free 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. 2005 tax return software free 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). 2005 tax return software free Use the following instructions instead of the Form W-4 instructions to complete the worksheet. 2005 tax return software free Line A. 2005 tax return software free   Enter the total of the following amounts on line A. 2005 tax return software free Personal exemption. 2005 tax return software free   Include the prorated part of your allowable personal exemption. 2005 tax return software free 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. 2005 tax return software free 82). 2005 tax return software free Expenses. 2005 tax return software free   Include expenses that will be deductible on your return. 2005 tax return software free 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. 2005 tax return software free They also include business expenses, moving expenses, and the IRA deduction discussed under Deductions in chapter 5. 2005 tax return software free Nontaxable grant or scholarship. 2005 tax return software free   Include the part of your grant or scholarship that is not taxable under U. 2005 tax return software free S. 2005 tax return software free law or under a tax treaty. 2005 tax return software free Line B. 2005 tax return software free   Enter -0- unless the following paragraph applies to you. 2005 tax return software free   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. 2005 tax return software free The standard deduction amount for 2013 is $6,100. 2005 tax return software free Lines C and D. 2005 tax return software free   Enter -0- on both lines unless the following paragraphs apply to you. 2005 tax return software free   If you are a resident of Canada, Mexico, South Korea, or a U. 2005 tax return software free S. 2005 tax return software free national, an additional daily exemption amount may be allowed for your spouse and each of your dependents. 2005 tax return software free   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. 2005 tax return software free S. 2005 tax return software free taxpayer's 2014 return. 2005 tax return software free 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. 2005 tax return software free S. 2005 tax return software free citizens. 2005 tax return software free   Enter any additional amount for your spouse on line C. 2005 tax return software free Enter any additional amount for your dependents on line D. 2005 tax return software free Lines E, F, and G. 2005 tax return software free   No entries should be made on lines E, F, and G. 2005 tax return software free Line H. 2005 tax return software free   Add the amounts on lines A through D and enter the total on line H. 2005 tax return software free Form W-4. 2005 tax return software free   Complete lines 1 through 4 of Form W-4. 2005 tax return software free Sign and date the form and give it with the Personal Allowances Worksheet to your withholding agent. 2005 tax return software free   If you file a Form W-4 to reduce or eliminate the withholding on your scholarship or grant, you must file an annual U. 2005 tax return software free S. 2005 tax return software free income tax return to be allowed the exemptions and deductions you claimed on that form. 2005 tax return software free 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. 2005 tax return software free S. 2005 tax return software free income tax return for the previous year. 2005 tax return software free 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. 2005 tax return software free S. 2005 tax return software free income tax return when required. 2005 tax return software free 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. 2005 tax return software free 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. 2005 tax return software free 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. 2005 tax return software free Use this form to prepare your annual U. 2005 tax return software free S. 2005 tax return software free income tax return. 2005 tax return software free 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. 2005 tax return software free Generally, you do this by filing either Form W-8BEN or Form 8233 with the withholding agent. 2005 tax return software free File Form W-8BEN for income that is not personal services income. 2005 tax return software free File Form 8233 for personal services income as discussed next. 2005 tax return software free Employees and independent contractors. 2005 tax return software free   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. 2005 tax return software free   Even if you submit Form 8233, the withholding agent may have to withhold tax from your income. 2005 tax return software free This is because the factors on which the treaty exemption is based may not be determinable until after the close of the tax year. 2005 tax return software free 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. 2005 tax return software free Students, teachers, and researchers. 2005 tax return software free   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. 2005 tax return software free For treaties not listed in the appendices, attach a statement in a format similar to those for other treaties. 2005 tax return software free   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. 2005 tax return software free Special events and promotions. 2005 tax return software free   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. 2005 tax return software free Form 13930 is used to request a reduction in withholding. 2005 tax return software free Withholding may be required even if the income may be exempt from taxation by provisions of a tax treaty. 2005 tax return software free 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. 2005 tax return software free You will be required to pay U. 2005 tax return software free S. 2005 tax return software free tax, at the time of your departure from the United States, on any income for which you incorrectly claimed a treaty exemption. 2005 tax return software free For more details on treaty provisions that apply to compensation, see Publication 901. 2005 tax return software free Tax Withheld on Real Property Sales If you are a nonresident alien and you dispose of a U. 2005 tax return software free S. 2005 tax return software free real property interest, the transferee (buyer) of the property generally must withhold a tax equal to 10% of the amount realized on the disposition. 2005 tax return software free 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. 2005 tax return software free S. 2005 tax return software free real property interest by the shareholder is subject to withholding at 35%. 2005 tax return software free Withholding is also required on certain distributions and other transactions by domestic or foreign corporations, partnerships, trusts, and estates. 2005 tax return software free These rules are covered in Publication 515. 2005 tax return software free For information on the tax treatment of dispositions of U. 2005 tax return software free S. 2005 tax return software free real property interests, see Real Property Gain or Loss in chapter 4. 2005 tax return software free If you are a partner in a domestic partnership, and the partnership disposes of a U. 2005 tax return software free S. 2005 tax return software free real property interest at a gain, the partnership will withhold tax on the amount of gain allocable to its foreign partners. 2005 tax return software free 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. 2005 tax return software free S. 2005 tax return software free Source Income Subject to Withholding (in the case of a publicly traded partnership). 2005 tax return software free Withholding is not required in the following situations. 2005 tax return software free The property is acquired by the buyer for use as a residence and the amount realized (sales price) is not more than $300,000. 2005 tax return software free 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. 2005 tax return software free However, this exception does not apply to certain dispositions of substantial amounts of non-publicly traded interests in publicly traded corporations. 2005 tax return software free The property disposed of is an interest in a U. 2005 tax return software free S. 2005 tax return software free 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. 2005 tax return software free S. 2005 tax return software free real property interest. 2005 tax return software free 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. 2005 tax return software free S. 2005 tax return software free taxpayer identification number, and home address. 2005 tax return software free You can give the certification to a qualified substitute. 2005 tax return software free The qualified substitute gives the buyer a statement, under penalties of perjury, that the certification is in the possession of the qualified substitute. 2005 tax return software free 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. 2005 tax return software free The buyer receives a withholding certificate from the Internal Revenue Service. 2005 tax return software free 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. 2005 tax return software free S. 2005 tax return software free tax treaty. 2005 tax return software free The buyer must file a copy of the notice with the Ogden Service Center, P. 2005 tax return software free O. 2005 tax return software free Box 409101, Ogden, UT 84409. 2005 tax return software free You must verify the notice as true and sign it under penalties of perjury. 2005 tax return software free The notice must contain the following information. 2005 tax return software free A statement that the notice is a notice of nonrecognition under regulation section 1. 2005 tax return software free 1445-2(d)(2). 2005 tax return software free Your name, taxpayer identification number, and home address. 2005 tax return software free A statement that you are not required to recognize any gain or loss on the transfer. 2005 tax return software free A brief description of the transfer. 2005 tax return software free A brief summary of the law and facts supporting your claim that recognition of gain or loss is not required. 2005 tax return software free 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. 2005 tax return software free Instead, a withholding certificate (described next) must be obtained. 2005 tax return software free The amount you realize on the transfer of a U. 2005 tax return software free S. 2005 tax return software free real property interest is zero. 2005 tax return software free The property is acquired by the United States, a U. 2005 tax return software free S. 2005 tax return software free state or possession, a political subdivision, or the District of Columbia. 2005 tax return software free The distribution is from a domestically controlled qualified investment entity (QIE) and is treated as a distribution of a U. 2005 tax return software free S. 2005 tax return software free real property interest only because an interest in the entity was disposed of in an applicable wash sale transaction. 2005 tax return software free For the definition of a QIE, see Qualified investment entities under Real Property Gain or Loss, earlier. 2005 tax return software free See Wash sale under Real Property Gain or Loss in chapter 4. 2005 tax return software free 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. 2005 tax return software free This also applies to the qualified substitute's statement under (4). 2005 tax return software free Withholding certificates. 2005 tax return software free   The tax required to be withheld on a disposition can be reduced or eliminated under a withholding certificate issued by the IRS. 2005 tax return software free Either you or the buyer can request a withholding certificate. 2005 tax return software free   A withholding certificate can be issued due to any of the following. 2005 tax return software free 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. 2005 tax return software free All of your realized gain is exempt from U. 2005 tax return software free S. 2005 tax return software free tax. 2005 tax return software free You or the buyer enters into an agreement for the payment of tax providing security for the tax liability. 2005 tax return software free   Get Publication 515 and Form 8288-B for information on procedures to request a withholding certificate. 2005 tax return software free Credit for tax withheld. 2005 tax return software free   The buyer must report and pay over the withheld tax within 20 days after the transfer using Form 8288, U. 2005 tax return software free S. 2005 tax return software free Withholding Tax Return for Dispositions by Foreign Persons of U. 2005 tax return software free S. 2005 tax return software free Real Property Interests. 2005 tax return software free 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. 2005 tax return software free S. 2005 tax return software free Real Property Interests. 2005 tax return software free 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). 2005 tax return software free You must file Copy B with your tax return to take credit for the tax withheld. 2005 tax return software free   A stamped copy of Form 8288-A will not be provided to you if your TIN is not included on that form. 2005 tax return software free The IRS will send you a letter requesting the TIN and providing instructions for how to get a TIN. 2005 tax return software free When you provide the IRS with a TIN, the IRS will provide you with a stamped Copy B of Form 8288-A. 2005 tax return software free 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. 2005 tax return software free Your payments of these taxes contribute to your coverage under the U. 2005 tax return software free S. 2005 tax return software free social security system. 2005 tax return software free Social security coverage provides retirement benefits, survivors and disability benefits, and medical insurance (Medicare) benefits to individuals who meet certain eligibility requirements. 2005 tax return software free 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. 2005 tax return software free All taxable wages are subject to Medicare tax. 2005 tax return software free Your employer deducts these taxes from each wage payment. 2005 tax return software free Your employer must deduct these taxes even if you do not expect to qualify for social security or Medicare benefits. 2005 tax return software free 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. 2005 tax return software free 40. 2005 tax return software free Use the appropriate worksheet in chapter 3 of Publication 505, Tax Withholding and Estimated Tax, to figure your credit. 2005 tax return software free If any one employer deducted more than $7,049. 2005 tax return software free 40, you cannot claim a credit for that amount. 2005 tax return software free Ask your employer to refund the excess. 2005 tax return software free If your employer does not refund the excess, you can file a claim for refund using Form 843. 2005 tax return software free In general, U. 2005 tax return software free S. 2005 tax return software free 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. 2005 tax return software free In limited situations, these taxes apply to wages for services performed outside the United States. 2005 tax return software free Your employer should be able to tell you if social security and Medicare taxes apply to your wages. 2005 tax return software free You cannot make voluntary payments if no taxes are due. 2005 tax return software free Additional Medicare Tax. 2005 tax return software free   Beginning in 2013, in addition to the Medicare tax, a 0. 2005 tax return software free 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. 2005 tax return software free   There are no special rules for nonresident aliens for purposes of Additional Medicare Tax. 2005 tax return software free 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. 2005 tax return software free   Your employer is responsible for withholding the 0. 2005 tax return software free 9% Additional Medicare Tax on Medicare wages or RRTA compensation it pays to you in excess of $200,000 in the calendar year. 2005 tax return software free 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. 2005 tax return software free   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). 2005 tax return software free    See Form 8959, Additional Medicare Tax, and the Instructions for Form 8959 to determine whether you are required to pay Additional Medicare Tax. 2005 tax return software free For more information on Additional Medicare Tax, go to IRS. 2005 tax return software free gov and enter “Additional Medicare Tax” in the search box. 2005 tax return software free   Self-employed individuals may also be required to pay Additional Medicare Tax. 2005 tax return software free See Self-Employment Tax , later. 2005 tax return software free 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. 2005 tax return software free This means that there will be no withholding of social security or Medicare taxes from the pay you receive for these services. 2005 tax return software free These types of services are very limited, and generally include only on-campus work, practical training, and economic hardship employment. 2005 tax return software free 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. 2005 tax return software free 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. 2005 tax return software free 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. 2005 tax return software free In some cases, a student admitted to the United States in “F-1,” “M-1,” or “J-1” status is granted permission to work. 2005 tax return software free Social security and Medicare taxes are not withheld from pay for the work unless the student is considered a resident alien. 2005 tax return software free 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. 2005 tax return software free The U. 2005 tax return software free S. 2005 tax return software free Citizenship and Immigration Services (USCIS) permits on-campus work for students in “F-1” status if it does not displace a U. 2005 tax return software free S. 2005 tax return software free resident. 2005 tax return software free On-campus work means work performed on the school's premises. 2005 tax return software free On-campus work includes work performed at an off-campus location that is educationally affiliated with the school. 2005 tax return software free 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. 2005 tax return software free Social security and Medicare taxes are not withheld from pay for this work unless the student is considered a resident alien. 2005 tax return software free 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. 2005 tax return software free Exchange Visitors Exchange visitors are temporarily admitted to the United States under section 101(a)(15)(J) of the Immigration and Nationality Act. 2005 tax return software free 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. 2005 tax return software free 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. 2005 tax return software free 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. 2005 tax return software free The employer must be the petitioner through whom the alien obtained the “Q” visa. 2005 tax return software free Social security and Medicare taxes are not withheld from pay for this work unless the alien is considered a resident alien. 2005 tax return software free 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. 2005 tax return software free 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. 2005 tax return software free Attach the following items to Form 843. 2005 tax return software free A copy of your Form W-2 to prove the amount of social security and Medicare taxes withheld. 2005 tax return software free A copy of your visa. 2005 tax return software free Form I-94 (or other documentation showing your dates of arrival or departure). 2005 tax return software free If you have an F-1 visa, documentation showing permission to work in the U. 2005 tax return software free S. 2005 tax return software free If you have a J-1 visa, documentation showing permission to work in the U. 2005 tax return software free S. 2005 tax return software free If you are engaged in optional practical training or employment due to severe economic necessity, documentation showing permission to work in the U. 2005 tax return software free S. 2005 tax return software free 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. 2005 tax return software free 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. 2005 tax return software free 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. 2005 tax return software free File Form 843 (with attachments) with the Department of the Treasury, Internal Revenue Service Center, Ogden, UT 84201-0038. 2005 tax return software free Do not use Form 843 to request a refund of Additional Medicare Tax. 2005 tax return software free 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. 2005 tax return software free 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. 2005 tax return software free S. 2005 tax return software free 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. 2005 tax return software free See the Instructions for Form 1040X. 2005 tax return software free 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. 2005 tax return software free You can find more information about not having tax withheld at www. 2005 tax return software free irs. 2005 tax return software free gov/Individuals/International-Taxpayers/Foreign-Agricultural-Workers. 2005 tax return software free Self-Employment Tax Self-employment tax is the social security and Medicare taxes for individuals who are self-employed. 2005 tax return software free 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. 2005 tax return software free S. 2005 tax return software free social security system. 2005 tax return software free Residents of the U. 2005 tax return software free S. 2005 tax return software free Virgin Islands, Puerto Rico, Guam, the Commonwealth of the Northern Mariana Islands, or American Samoa are considered U. 2005 tax return software free S. 2005 tax return software free residents for this purpose and are subject to the self-employment tax. 2005 tax return software free Resident aliens must pay self-employment tax under the same rules that apply to U. 2005 tax return software free S. 2005 tax return software free citizens. 2005 tax return software free 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. 2005 tax return software free 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. 2005 tax return software free Example. 2005 tax return software free Bill Jones is an author engaged in the business of writing books. 2005 tax return software free Bill had several books published in a foreign country while he was a citizen and resident of that country. 2005 tax return software free During 2013, Bill entered the United States as a resident alien. 2005 tax return software free After becoming a U. 2005 tax return software free S. 2005 tax return software free resident, he continued to receive royalties from his foreign publisher. 2005 tax return software free Bill reports his income and expenses on the cash basis (he reports income on his tax return when received and deducts expenses when paid). 2005 tax return software free Bill's 2013 self-employment income includes the royalties received after he became a U. 2005 tax return software free S. 2005 tax return software free resident even though the books were published while he was a nonresident alien. 2005 tax return software free This royalty income is subject to self-employment tax. 2005 tax return software free Reporting self-employment tax. 2005 tax return software free   Use Schedule SE (Form 1040) to report and figure your self-employment tax. 2005 tax return software free Then enter the tax on Form 1040, line 56, or Form 1040NR, line 54. 2005 tax return software free Attach Schedule SE to Form 1040 or Form 1040NR. 2005 tax return software free Additional Medicare Tax. 2005 tax return software free   Self-employed individuals must pay a 0. 2005 tax return software free 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. 2005 tax return software free   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. 2005 tax return software free 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). 2005 tax return software free   See Form 8959, Additional Medicare Tax, and the Instructions for Form 8959 to determine whether you are required to pay Additional Medicare Tax. 2005 tax return software free For more information on Additional Medicare Tax, go to IRS. 2005 tax return software free gov and enter “Additional Medicare Tax” in the search box. 2005 tax return software free Deduction for employer-equivalent portion of self-employment tax. 2005 tax return software free   If you must pay self-employment tax, you can deduct a portion of the self-employment tax paid in figuring your adjusted gross income. 2005 tax return software free This deduction is figured on Schedule SE (Form 1040). 2005 tax return software free Note. 2005 tax return software free No portion of the Additional Medicare Tax is deductible for self-employment tax. 2005 tax return software free More information. 2005 tax return software free   Get Publication 334, Tax Guide for Small Business, for more information about self-employment tax. 2005 tax return software free 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. 2005 tax return software free These agreements are commonly referred to as totalization agreements. 2005 tax return software free Under these agreements, dual coverage and dual contributions (taxes) for the same work are eliminated. 2005 tax return software free The agreements generally make sure that social security taxes (including self-employment tax) are paid only to one country. 2005 tax return software free Agreements are in effect with the following countries. 2005 tax return software free Australia. 2005 tax return software free Austria. 2005 tax return software free Belgium. 2005 tax return software free Canada. 2005 tax return software free Chile. 2005 tax return software free Czech Republic. 2005 tax return software free Denmark. 2005 tax return software free Finland. 2005 tax return software free France. 2005 tax return software free Germany. 2005 tax return software free Greece. 2005 tax return software free Ireland. 2005 tax return software free Italy. 2005 tax return software free Japan. 2005 tax return software free Korea, South. 2005 tax return software free Luxembourg. 2005 tax return software free The Netherlands. 2005 tax return software free Norway. 2005 tax return software free Poland. 2005 tax return software free Portugal. 2005 tax return software free Spain. 2005 tax return software free Sweden. 2005 tax return software free Switzerland. 2005 tax return software free The United Kingdom. 2005 tax return software free Agreements with other countries are expected to enter into force in the future. 2005 tax return software free Employees. 2005 tax return software free   Generally, under these agreements, you are subject to social security taxes only in the country where you are working. 2005 tax return software free 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. 2005 tax return software free You can get more information on any agreement by contacting the U. 2005 tax return software free S. 2005 tax return software free Social Security Administration at the address given later. 2005 tax return software free If you have access to the Internet, you can get more information at www. 2005 tax return software free socialsecurity. 2005 tax return software free gov/international. 2005 tax return software free   To establish that your pay is subject only to foreign social security taxes and is exempt from U. 2005 tax return software free S. 2005 tax return software free 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. 2005 tax return software free This will usually be the same agency to which you or your employer pays your foreign social security taxes. 2005 tax return software free The foreign agency will be able to tell you what information is needed for them to issue the certificate. 2005 tax return software free Your employer should keep a copy of the certificate because it may be needed to show why you are exempt from U. 2005 tax return software free S. 2005 tax return software free social security taxes. 2005 tax return software free Only wages paid on or after the effective date of the agreement can be exempt from U. 2005 tax return software free S. 2005 tax return software free social security taxes. 2005 tax return software free    Some of the countries with which the United States has agreements will not issue certificates of coverage. 2005 tax return software free In this case, either you or your employer should request a statement that your wages are not covered by the U. 2005 tax return software free S. 2005 tax return software free social security system. 2005 tax return software free Request the statement from the following address. 2005 tax return software free U. 2005 tax return software free S. 2005 tax return software free Social Security Administration Office of International Programs P. 2005 tax return software free O. 2005 tax return software free Box 17741 Baltimore, MD 21235-7741 Self-employed individuals. 2005 tax return software free   Under most agreements, self-employed individuals are covered by the social security system of the country where they reside. 2005 tax return software free However, under some agreements, you may be exempt from U. 2005 tax return software free S. 2005 tax return software free self-employment tax if you temporarily transfer your business activity to or from the United States. 2005 tax return software free   If you believe that your self-employment income is subject only to U. 2005 tax return software free S. 2005 tax return software free self-employment tax and is exempt from foreign social security taxes, request a certificate of coverage from the U. 2005 tax return software free S. 2005 tax return software free Social Security Administration at the address given earlier. 2005 tax return software free This certificate will establish your exemption from foreign social security taxes. 2005 tax return software free   To establish that your self-employment income is subject only to foreign social security taxes and is exempt from U. 2005 tax return software free S. 2005 tax return software free self-employment tax, request a certificate of coverage from the appropriate agency of the foreign country. 2005 tax return software free If the foreign country will not issue the certificate, you should request a statement that your income is not covered by the U. 2005 tax return software free S. 2005 tax return software free social security system. 2005 tax return software free Request it from the U. 2005 tax return software free S. 2005 tax return software free Social Security Administration at the address given earlier. 2005 tax return software free Attach a photocopy of either statement to Form 1040 each year you are exempt. 2005 tax return software free Also print “Exempt, see attached statement” on the line for self-employment tax. 2005 tax return software free Estimated Tax Form 1040-ES (NR) You may have income from which no U. 2005 tax return software free S. 2005 tax return software free income tax is withheld. 2005 tax return software free Or the amount of tax withheld may be less than the income tax you estimate you will owe at the end of the year. 2005 tax return software free If so, you may have to pay estimated tax. 2005 tax return software free 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). 2005 tax return software free 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. 2005 tax return software free Item (2) does not apply if you did not file a 2013 return. 2005 tax return software free A nonresident alien should use Form 1040-ES (NR) to figure and pay estimated tax. 2005 tax return software free If you pay by check, make it payable to the "United States Treasury. 2005 tax return software free " How to estimate your tax for 2014. 2005 tax return software free   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. 2005 tax return software free 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. 2005 tax return software free Figure your estimated tax liability using the Tax Rate Schedule in the 2014 Form 1040-ES (NR) instructions for your filing status. 2005 tax return software free Note. 2005 tax return software free If you expect to be a resident of Puerto Rico during the entire year, use Form 1040-ES or Formulario 1040-ES (PR). 2005 tax return software free When to pay estimated tax. 2005 tax return software free   Make your first estimated tax payment by the due date for filing the previous year's Form 1040NR or Form 1040NR-EZ. 2005 tax return software free If you have wages subject to the same withholding rules that apply to U. 2005 tax return software free S. 2005 tax return software free citizens, you must file Form 1040NR or Form 1040NR-EZ and make your first estimated tax payment by April 15, 2014. 2005 tax return software free 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. 2005 tax return software free   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. 2005 tax return software free 1st installment April 15, 2014 2nd installment June 16, 2014 3rd installment Sept. 2005 tax return software free 15, 2014 4th installment Jan. 2005 tax return software free 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. 2005 tax return software free    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. 2005 tax return software free Fiscal year. 2005 tax return software free   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. 2005 tax return software free If any date falls on a Saturday, Sunday, or legal holiday, use the next day that is not a Saturday, Sunday, or legal holiday. 2005 tax return software free Changes in income, deductions, or exemptions. 2005 tax return software free   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. 2005 tax return software free This can happen if you receive additional income or if any of your deductions are reduced or eliminated. 2005 tax return software free If so, see the instructions for Form 1040-ES (NR) and Publication 505 for information on figuring your estimated tax. 2005 tax return software free Amended estimated tax. 2005 tax return software free   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. 2005 tax return software free To do this, see the instructions for Form 1040-ES (NR) and Publication 505. 2005 tax return software free Penalty for failure to pay estimated income tax. 2005 tax return software free   You will be subject to a penalty for underpayment of installments of estimated tax except in certain situations. 2005 tax return software free These situations are explained on Form 2210, Underpayment of Estimated Tax by Individuals, Estates, and Trusts. 2005 tax return software free Prev  Up  Next   Home   More Online Publications
Español

Reference Center and General Government

Find U.S. government common abbreviations, calendars, contact information, forms, photos, maps, news and more.


The 2005 Tax Return Software Free

2005 tax return software free 18. 2005 tax return software free   Alimony Table of Contents IntroductionSpouse or former spouse. 2005 tax return software free Divorce or separation instrument. 2005 tax return software free Useful Items - You may want to see: General RulesMortgage payments. 2005 tax return software free Taxes and insurance. 2005 tax return software free Other payments to a third party. 2005 tax return software free Instruments Executed After 1984Payments to a third party. 2005 tax return software free Exception. 2005 tax return software free Substitute payments. 2005 tax return software free Specifically designated as child support. 2005 tax return software free Contingency relating to your child. 2005 tax return software free Clearly associated with a contingency. 2005 tax return software free How To Deduct Alimony Paid How To Report Alimony Received Recapture Rule Introduction This chapter discusses the rules that apply if you pay or receive alimony. 2005 tax return software free It covers the following topics. 2005 tax return software free What payments are alimony. 2005 tax return software free What payments are not alimony, such as child support. 2005 tax return software free How to deduct alimony you paid. 2005 tax return software free How to report alimony you received as income. 2005 tax return software free Whether you must recapture the tax benefits of alimony. 2005 tax return software free Recapture means adding back in your income all or part of a deduction you took in a prior year. 2005 tax return software free Alimony is a payment to or for a spouse or former spouse under a divorce or separation instrument. 2005 tax return software free It does not include voluntary payments that are not made under a divorce or separation instrument. 2005 tax return software free Alimony is deductible by the payer and must be included in the spouse's or former spouse's income. 2005 tax return software free Although this chapter is generally written for the payer of the alimony, the recipient can use the information to determine whether an amount received is alimony. 2005 tax return software free To be alimony, a payment must meet certain requirements. 2005 tax return software free Different requirements generally apply to payments under instruments executed after 1984 and to payments under instruments executed before 1985. 2005 tax return software free This chapter discusses the rules for payments under instruments executed after 1984. 2005 tax return software free If you need the rules for payments under pre-1985 instruments, get and keep a copy of the 2004 version of Publication 504. 2005 tax return software free That was the last year the information on pre-1985 instruments was included in Publication 504. 2005 tax return software free Use Table 18-1 in this chapter as a guide to determine whether certain payments are considered alimony. 2005 tax return software free Definitions. 2005 tax return software free   The following definitions apply throughout this chapter. 2005 tax return software free Spouse or former spouse. 2005 tax return software free   Unless otherwise stated, the term “spouse” includes former spouse. 2005 tax return software free Divorce or separation instrument. 2005 tax return software free   The term “divorce or separation instrument” means: A decree of divorce or separate maintenance or a written instrument incident to that decree, A written separation agreement, or A decree or any type of court order requiring a spouse to make payments for the support or maintenance of the other spouse. 2005 tax return software free This includes a temporary decree, an interlocutory (not final) decree, and a decree of alimony pendente lite (while awaiting action on the final decree or agreement). 2005 tax return software free Useful Items - You may want to see: Publication 504 Divorced or Separated Individuals General Rules The following rules apply to alimony regardless of when the divorce or separation instrument was executed. 2005 tax return software free Payments not alimony. 2005 tax return software free   Not all payments under a divorce or separation instrument are alimony. 2005 tax return software free Alimony does not include: Child support, Noncash property settlements, Payments that are your spouse's part of community income, as explained under Community Property in Publication 504, Payments to keep up the payer's property, or Use of the payer's property. 2005 tax return software free Payments to a third party. 2005 tax return software free   Cash payments, checks, or money orders to a third party on behalf of your spouse under the terms of your divorce or separation instrument can be alimony, if they otherwise qualify. 2005 tax return software free These include payments for your spouse's medical expenses, housing costs (rent, utilities, etc. 2005 tax return software free ), taxes, tuition, etc. 2005 tax return software free The payments are treated as received by your spouse and then paid to the third party. 2005 tax return software free Life insurance premiums. 2005 tax return software free   Alimony includes premiums you must pay under your divorce or separation instrument for insurance on your life to the extent your spouse owns the policy. 2005 tax return software free Payments for jointly-owned home. 2005 tax return software free   If your divorce or separation instrument states that you must pay expenses for a home owned by you and your spouse, some of your payments may be alimony. 2005 tax return software free Mortgage payments. 2005 tax return software free   If you must pay all the mortgage payments (principal and interest) on a jointly-owned home, and they otherwise qualify as alimony, you can deduct one-half of the total payments as alimony. 2005 tax return software free If you itemize deductions and the home is a qualified home, you can claim one-half of the interest in figuring your deductible interest. 2005 tax return software free Your spouse must report one-half of the payments as alimony received. 2005 tax return software free If your spouse itemizes deductions and the home is a qualified home, he or she can claim one-half of the interest on the mortgage in figuring deductible interest. 2005 tax return software free Taxes and insurance. 2005 tax return software free   If you must pay all the real estate taxes or insurance on a home held as tenants in common, you can deduct one-half of these payments as alimony. 2005 tax return software free Your spouse must report one-half of these payments as alimony received. 2005 tax return software free If you and your spouse itemize deductions, you can each claim one-half of the real estate taxes and none of the home insurance. 2005 tax return software free    If your home is held as tenants by the entirety or joint tenants, none of your payments for taxes or insurance are alimony. 2005 tax return software free But if you itemize deductions, you can claim all of the real estate taxes and none of the home insurance. 2005 tax return software free Other payments to a third party. 2005 tax return software free   If you made other third-party payments, see Publication 504 to see whether any part of the payments qualifies as alimony. 2005 tax return software free Instruments Executed After 1984 The following rules for alimony apply to payments under divorce or separation instruments executed after 1984. 2005 tax return software free Exception for instruments executed before 1985. 2005 tax return software free   There are two situations where the rules for instruments executed after 1984 apply to instruments executed before 1985. 2005 tax return software free A divorce or separation instrument executed before 1985 and then modified after 1984 to specify that the after-1984 rules will apply. 2005 tax return software free A temporary divorce or separation instrument executed before 1985 and incorporated into, or adopted by, a final decree executed after 1984 that: Changes the amount or period of payment, or Adds or deletes any contingency or condition. 2005 tax return software free   For the rules for alimony payments under pre-1985 instruments not meeting these exceptions, get the 2004 version of Publication 504 at www. 2005 tax return software free irs. 2005 tax return software free gov/pub504. 2005 tax return software free Example 1. 2005 tax return software free In November 1984, you and your former spouse executed a written separation agreement. 2005 tax return software free In February 1985, a decree of divorce was substituted for the written separation agreement. 2005 tax return software free The decree of divorce did not change the terms for the alimony you pay your former spouse. 2005 tax return software free The decree of divorce is treated as executed before 1985. 2005 tax return software free Alimony payments under this decree are not subject to the rules for payments under instruments executed after 1984. 2005 tax return software free Example 2. 2005 tax return software free Assume the same facts as in Example 1 except that the decree of divorce changed the amount of the alimony. 2005 tax return software free In this example, the decree of divorce is not treated as executed before 1985. 2005 tax return software free The alimony payments are subject to the rules for payments under instruments executed after 1984. 2005 tax return software free Alimony requirements. 2005 tax return software free   A payment to or for a spouse under a divorce or separation instrument is alimony if the spouses do not file a joint return with each other and all the following requirements are met. 2005 tax return software free The payment is in cash. 2005 tax return software free The instrument does not designate the payment as not alimony. 2005 tax return software free Spouses legally separated under a decree of divorce or separate maintenance are not members of the same household. 2005 tax return software free There is no liability to make any payment (in cash or property) after the death of the recipient spouse. 2005 tax return software free The payment is not treated as child support. 2005 tax return software free Each of these requirements is discussed below. 2005 tax return software free Cash payment requirement. 2005 tax return software free   Only cash payments, including checks and money orders, qualify as alimony. 2005 tax return software free The following do not qualify as alimony. 2005 tax return software free Transfers of services or property (including a debt instrument of a third party or an annuity contract). 2005 tax return software free Execution of a debt instrument by the payer. 2005 tax return software free The use of the payer's property. 2005 tax return software free Payments to a third party. 2005 tax return software free   Cash payments to a third party under the terms of your divorce or separation instrument can qualify as cash payments to your spouse. 2005 tax return software free See Payments to a third party under General Rules, earlier. 2005 tax return software free   Also, cash payments made to a third party at the written request of your spouse may qualify as alimony if all the following requirements are met. 2005 tax return software free The payments are in lieu of payments of alimony directly to your spouse. 2005 tax return software free The written request states that both spouses intend the payments to be treated as alimony. 2005 tax return software free You receive the written request from your spouse before you file your return for the year you made the payments. 2005 tax return software free Payments designated as not alimony. 2005 tax return software free   You and your spouse can designate that otherwise qualifying payments are not alimony. 2005 tax return software free You do this by including a provision in your divorce or separation instrument that states the payments are not deductible as alimony by you and are excludable from your spouse's income. 2005 tax return software free For this purpose, any instrument (written statement) signed by both of you that makes this designation and that refers to a previous written separation agreement is treated as a written separation agreement (and therefore a divorce or separation instrument). 2005 tax return software free If you are subject to temporary support orders, the designation must be made in the original or a later temporary support order. 2005 tax return software free   Your spouse can exclude the payments from income only if he or she attaches a copy of the instrument designating them as not alimony to his or her return. 2005 tax return software free The copy must be attached each year the designation applies. 2005 tax return software free Spouses cannot be members of the same household. 2005 tax return software free    Payments to your spouse while you are members of the same household are not alimony if you are legally separated under a decree of divorce or separate maintenance. 2005 tax return software free A home you formerly shared is considered one household, even if you physically separate yourselves in the home. 2005 tax return software free   You are not treated as members of the same household if one of you is preparing to leave the household and does leave no later than 1 month after the date of the payment. 2005 tax return software free Exception. 2005 tax return software free   If you are not legally separated under a decree of divorce or separate maintenance, a payment under a written separation agreement, support decree, or other court order may qualify as alimony even if you are members of the same household when the payment is made. 2005 tax return software free Table 18-1. 2005 tax return software free Alimony Requirements (Instruments Executed After 1984) Payments ARE alimony if all of the following are true: Payments are NOT alimony if any of the following are true: Payments are required by a divorce or separation instrument. 2005 tax return software free Payments are not required by a divorce or separation instrument. 2005 tax return software free Payer and recipient spouse do not file a joint return with each other. 2005 tax return software free Payer and recipient spouse file a joint return with each other. 2005 tax return software free Payment is in cash (including checks or money orders). 2005 tax return software free Payment is: Not in cash, A noncash property settlement, Spouse's part of community income, or To keep up the payer's property. 2005 tax return software free Payment is not designated in the instrument as not alimony. 2005 tax return software free Payment is designated in the instrument as not alimony. 2005 tax return software free Spouses legally separated under a decree of divorce or separate maintenance are not members of the same household. 2005 tax return software free Spouses legally separated under a decree of divorce or separate maintenance are members of the same household. 2005 tax return software free Payments are not required after death of the recipient spouse. 2005 tax return software free Payments are required after death of the recipient spouse. 2005 tax return software free Payment is not treated as child support. 2005 tax return software free Payment is treated as child support. 2005 tax return software free These payments are deductible by the payer and includible in income by the recipient. 2005 tax return software free These payments are neither deductible by the payer nor includible in income by the recipient. 2005 tax return software free Liability for payments after death of recipient spouse. 2005 tax return software free   If any part of payments you make must continue to be made for any period after your spouse's death, that part of your payments is not alimony, whether made before or after the death. 2005 tax return software free If all of the payments would continue, then none of the payments made before or after the death are alimony. 2005 tax return software free   The divorce or separation instrument does not have to expressly state that the payments cease upon the death of your spouse if, for example, the liability for continued payments would end under state law. 2005 tax return software free Example. 2005 tax return software free You must pay your former spouse $10,000 in cash each year for 10 years. 2005 tax return software free Your divorce decree states that the payments will end upon your former spouse's death. 2005 tax return software free You must also pay your former spouse or your former spouse's estate $20,000 in cash each year for 10 years. 2005 tax return software free The death of your spouse would not terminate these payments under state law. 2005 tax return software free The $10,000 annual payments may qualify as alimony. 2005 tax return software free The $20,000 annual payments that do not end upon your former spouse's death are not alimony. 2005 tax return software free Substitute payments. 2005 tax return software free   If you must make any payments in cash or property after your spouse's death as a substitute for continuing otherwise qualifying payments before the death, the otherwise qualifying payments are not alimony. 2005 tax return software free To the extent that your payments begin, accelerate, or increase because of the death of your spouse, otherwise qualifying payments you made may be treated as payments that were not alimony. 2005 tax return software free Whether or not such payments will be treated as not alimony depends on all the facts and circumstances. 2005 tax return software free Example 1. 2005 tax return software free Under your divorce decree, you must pay your former spouse $30,000 annually. 2005 tax return software free The payments will stop at the end of 6 years or upon your former spouse's death, if earlier. 2005 tax return software free Your former spouse has custody of your minor children. 2005 tax return software free The decree provides that if any child is still a minor at your spouse's death, you must pay $10,000 annually to a trust until the youngest child reaches the age of majority. 2005 tax return software free The trust income and corpus (principal) are to be used for your children's benefit. 2005 tax return software free These facts indicate that the payments to be made after your former spouse's death are a substitute for $10,000 of the $30,000 annual payments. 2005 tax return software free Of each of the $30,000 annual payments, $10,000 is not alimony. 2005 tax return software free Example 2. 2005 tax return software free Under your divorce decree, you must pay your former spouse $30,000 annually. 2005 tax return software free The payments will stop at the end of 15 years or upon your former spouse's death, if earlier. 2005 tax return software free The decree provides that if your former spouse dies before the end of the 15-year period, you must pay the estate the difference between $450,000 ($30,000 × 15) and the total amount paid up to that time. 2005 tax return software free For example, if your spouse dies at the end of the tenth year, you must pay the estate $150,000 ($450,000 − $300,000). 2005 tax return software free These facts indicate that the lump-sum payment to be made after your former spouse's death is a substitute for the full amount of the $30,000 annual payments. 2005 tax return software free None of the annual payments are alimony. 2005 tax return software free The result would be the same if the payment required at death were to be discounted by an appropriate interest factor to account for the prepayment. 2005 tax return software free Child support. 2005 tax return software free   A payment that is specifically designated as child support or treated as specifically designated as child support under your divorce or separation instrument is not alimony. 2005 tax return software free The amount of child support may vary over time. 2005 tax return software free Child support payments are not deductible by the payer and are not taxable to the recipient. 2005 tax return software free Specifically designated as child support. 2005 tax return software free   A payment will be treated as specifically designated as child support to the extent that the payment is reduced either: On the happening of a contingency relating to your child, or At a time that can be clearly associated with the contingency. 2005 tax return software free A payment may be treated as specifically designated as child support even if other separate payments are specifically designated as child support. 2005 tax return software free Contingency relating to your child. 2005 tax return software free   A contingency relates to your child if it depends on any event relating to that child. 2005 tax return software free It does not matter whether the event is certain or likely to occur. 2005 tax return software free Events relating to your child include the child's: Becoming employed, Dying, Leaving the household, Leaving school, Marrying, or Reaching a specified age or income level. 2005 tax return software free Clearly associated with a contingency. 2005 tax return software free   Payments that would otherwise qualify as alimony are presumed to be reduced at a time clearly associated with the happening of a contingency relating to your child only in the following situations. 2005 tax return software free The payments are to be reduced not more than 6 months before or after the date the child will reach 18, 21, or local age of majority. 2005 tax return software free The payments are to be reduced on two or more occasions that occur not more than 1 year before or after a different one of your children reaches a certain age from 18 to 24. 2005 tax return software free This certain age must be the same for each child, but need not be a whole number of years. 2005 tax return software free In all other situations, reductions in payments are not treated as clearly associated with the happening of a contingency relating to your child. 2005 tax return software free   Either you or the IRS can overcome the presumption in the two situations above. 2005 tax return software free This is done by showing that the time at which the payments are to be reduced was determined independently of any contingencies relating to your children. 2005 tax return software free For example, if you can show that the period of alimony payments is customary in the local jurisdiction, such as a period equal to one-half of the duration of the marriage, you can overcome the presumption and may be able to treat the amount as alimony. 2005 tax return software free How To Deduct Alimony Paid You can deduct alimony you paid, whether or not you itemize deductions on your return. 2005 tax return software free You must file Form 1040. 2005 tax return software free You cannot use Form 1040A or Form 1040EZ. 2005 tax return software free Enter the amount of alimony you paid on Form 1040, line 31a. 2005 tax return software free In the space provided on line 31b, enter your spouse's social security number (SSN) or individual taxpayer identification number (ITIN). 2005 tax return software free If you paid alimony to more than one person, enter the SSN or ITIN of one of the recipients. 2005 tax return software free Show the SSN or ITIN and amount paid to each other recipient on an attached statement. 2005 tax return software free Enter your total payments on line 31a. 2005 tax return software free You must provide your spouse's SSN or ITIN. 2005 tax return software free If you do not, you may have to pay a $50 penalty and your deduction may be disallowed. 2005 tax return software free For more information on SSNs and ITINs, see Social Security Number (SSN) in chapter 1. 2005 tax return software free How To Report Alimony Received Report alimony you received as income on Form 1040, line 11. 2005 tax return software free You cannot use Form 1040A or Form 1040EZ. 2005 tax return software free You must give the person who paid the alimony your SSN or ITIN. 2005 tax return software free If you do not, you may have to pay a $50 penalty. 2005 tax return software free Recapture Rule If your alimony payments decrease or end during the first 3 calendar years, you may be subject to the recapture rule. 2005 tax return software free If you are subject to this rule, you have to include in income in the third year part of the alimony payments you previously deducted. 2005 tax return software free Your spouse can deduct in the third year part of the alimony payments he or she previously included in income. 2005 tax return software free The 3-year period starts with the first calendar year you make a payment qualifying as alimony under a decree of divorce or separate maintenance or a written separation agreement. 2005 tax return software free Do not include any time in which payments were being made under temporary support orders. 2005 tax return software free The second and third years are the next 2 calendar years, whether or not payments are made during those years. 2005 tax return software free The reasons for a reduction or end of alimony payments that can require a recapture include: A change in your divorce or separation instrument, A failure to make timely payments, A reduction in your ability to provide support, or A reduction in your spouse's support needs. 2005 tax return software free When to apply the recapture rule. 2005 tax return software free   You are subject to the recapture rule in the third year if the alimony you pay in the third year decreases by more than $15,000 from the second year or the alimony you pay in the second and third years decreases significantly from the alimony you pay in the first year. 2005 tax return software free   When you figure a decrease in alimony, do not include the following amounts. 2005 tax return software free Payments made under a temporary support order. 2005 tax return software free Payments required over a period of at least 3 calendar years that vary because they are a fixed part of your income from a business or property, or from compensation for employment or self-employment. 2005 tax return software free Payments that decrease because of the death of either spouse or the remarriage of the spouse receiving the payments before the end of the third year. 2005 tax return software free Figuring the recapture. 2005 tax return software free   You can use Worksheet 1 in Publication 504 to figure recaptured alimony. 2005 tax return software free Including the recapture in income. 2005 tax return software free   If you must include a recapture amount in income, show it on Form 1040, line 11 (“Alimony received”). 2005 tax return software free Cross out “received” and enter “recapture. 2005 tax return software free ” On the dotted line next to the amount, enter your spouse's last name and SSN or ITIN. 2005 tax return software free Deducting the recapture. 2005 tax return software free   If you can deduct a recapture amount, show it on Form 1040, line 31a (“Alimony paid”). 2005 tax return software free Cross out “paid” and enter “recapture. 2005 tax return software free ” In the space provided, enter your spouse's SSN or ITIN. 2005 tax return software free Prev  Up  Next   Home   More Online Publications