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2010 Amended Tax Form

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2010 Amended Tax Form

2010 amended tax form 2. 2010 amended tax form   Taxable and Nontaxable Income Table of Contents Compensation for Services Retirement Plan DistributionsIndividual Retirement Arrangements (IRAs) Pensions and Annuities Social Security and Equivalent Railroad Retirement BenefitsAre Any of Your Benefits Taxable? How Much Is Taxable? How To Report Your Benefits Lump-Sum Election Repayments More Than Gross Benefits Sickness and Injury BenefitsDisability Pensions Long-Term Care Insurance Contracts Workers' Compensation Other Sickness and Injury Benefits Life Insurance ProceedsInstallments for life. 2010 amended tax form Surviving spouse. 2010 amended tax form Endowment Contract Proceeds Accelerated Death Benefits Sale of HomeMaximum Amount of Exclusion Ownership and Use Tests Married Persons Business Use or Rental of Home Reporting the Sale Reverse Mortgages Other ItemsWelfare benefits. 2010 amended tax form Payments from a state fund for victims of crime. 2010 amended tax form Home Affordable Modification Program (HAMP). 2010 amended tax form Mortgage assistance payments. 2010 amended tax form Payments to reduce cost of winter energy use. 2010 amended tax form Nutrition Program for the Elderly. 2010 amended tax form Reemployment Trade Adjustment Assistance (RTAA). 2010 amended tax form Generally, income is taxable unless it is specifically exempt (not taxed) by law. 2010 amended tax form Your taxable income may include compensation for services, interest, dividends, rents, royalties, income from partnerships, estate or trust income, gain from sales or exchanges of property, and business income of all kinds. 2010 amended tax form Under special provisions of the law, certain items are partially or fully exempt from tax. 2010 amended tax form Provisions that are of special interest to older taxpayers are discussed in this chapter. 2010 amended tax form Compensation for Services Generally, you must include in gross income everything you receive in payment for personal services. 2010 amended tax form In addition to wages, salaries, commissions, fees, and tips, this includes other forms of compensation such as fringe benefits and stock options. 2010 amended tax form You need not receive the compensation in cash for it to be taxable. 2010 amended tax form Payments you receive in the form of goods or services generally must be included in gross income at their fair market value. 2010 amended tax form Volunteer work. 2010 amended tax form   Do not include in your gross income amounts you receive for supportive services or reimbursements for out-of-pocket expenses under any of the following volunteer programs. 2010 amended tax form Retired Senior Volunteer Program (RSVP). 2010 amended tax form Foster Grandparent Program. 2010 amended tax form Senior Companion Program. 2010 amended tax form Service Corps of Retired Executives (SCORE). 2010 amended tax form Unemployment compensation. 2010 amended tax form   You must include in income all unemployment compensation you or your spouse (if married filing jointly) received. 2010 amended tax form More information. 2010 amended tax form   See Publication 525, Taxable and Nontaxable Income, for more detailed information on specific types of income. 2010 amended tax form Retirement Plan Distributions This section summarizes the tax treatment of amounts you receive from traditional individual retirement arrangements (IRA), employee pensions or annuities, and disability pensions or annuities. 2010 amended tax form A traditional IRA is any IRA that is not a Roth or SIMPLE IRA. 2010 amended tax form A Roth IRA is an individual retirement plan that can be either an account or an annuity and features nondeductible contributions and tax-free distributions. 2010 amended tax form A SIMPLE IRA is a tax-favored retirement plan that certain small employers (including self-employed individuals) can set up for the benefit of their employees. 2010 amended tax form More detailed information can be found in Publication 590, Individual Retirement Arrangements (IRAs), and Publication 575, Pension and Annuity Income. 2010 amended tax form Individual Retirement Arrangements (IRAs) In general, distributions from a traditional IRA are taxable in the year you receive them. 2010 amended tax form Exceptions to the general rule are rollovers, tax-free withdrawals of contributions, and the return of nondeductible contributions. 2010 amended tax form These are discussed in Publication 590. 2010 amended tax form If you made nondeductible contributions to a traditional IRA, you must file Form 8606, Nondeductible IRAs. 2010 amended tax form If you do not file Form 8606 with your return, you may have to pay a $50 penalty. 2010 amended tax form Also, when you receive distributions from your traditional IRA, the amounts will be taxed unless you can show, with satisfactory evidence, that nondeductible contributions were made. 2010 amended tax form Early distributions. 2010 amended tax form   Generally, early distributions are amounts distributed from your traditional IRA account or annuity before you are age 59½, or amounts you receive when you cash in retirement bonds before you are age  59½. 2010 amended tax form You must include early distributions of taxable amounts in your gross income. 2010 amended tax form These taxable amounts are also subject to an additional 10% tax unless the distribution qualifies for an exception. 2010 amended tax form For purposes of the additional 10% tax, an IRA is a qualified retirement plan. 2010 amended tax form For more information about this tax, see Tax on Early Distributions under Pensions and Annuities, later. 2010 amended tax form After age 59½ and before age 70½. 2010 amended tax form   After you reach age 59½, you can receive distributions from your traditional IRA without having to pay the 10% additional tax. 2010 amended tax form Even though you can receive distributions after you reach age 59½, distributions are not required until you reach  age 70½. 2010 amended tax form Required distributions. 2010 amended tax form   If you are the owner of a traditional IRA, you generally must receive the entire balance in your IRA or start receiving periodic distributions from your IRA by April 1 of the year following the year in which you reach age 70½. 2010 amended tax form See When Must You Withdraw Assets? (Required Minimum Distributions) in Publication 590. 2010 amended tax form If distributions from your traditional IRA(s) are less than the required minimum distribution for the year, you may have to pay a 50% excise tax for that year on the amount not distributed as required. 2010 amended tax form For purposes of the 50% excise tax, an IRA is a qualified retirement plan. 2010 amended tax form For more information about this tax, see Tax on Excess Accumulation under Pensions and Annuities, later. 2010 amended tax form See also Excess Accumulations (Insufficient Distributions) in Publication 590. 2010 amended tax form Pensions and Annuities Generally, if you did not pay any part of the cost of your employee pension or annuity, and your employer did not withhold part of the cost of the contract from your pay while you worked, the amounts you receive each year are fully taxable. 2010 amended tax form However, see Insurance Premiums for Retired Public Safety Officers , later. 2010 amended tax form If you paid part of the cost of your pension or annuity plan (see Cost , later), you can exclude part of each annuity payment from income as a recovery of your cost (investment in the contract). 2010 amended tax form This tax-free part of the payment is figured when your annuity starts and remains the same each year, even if the amount of the payment changes. 2010 amended tax form The rest of each payment is taxable. 2010 amended tax form However, see Insurance Premiums for Retired Public Safety Officers , later. 2010 amended tax form You figure the tax-free part of the payment using one of the following methods. 2010 amended tax form Simplified Method. 2010 amended tax form You generally must use this method if your annuity is paid under a qualified plan (a qualified employee plan, a qualified employee annuity, or a tax-sheltered annuity plan or contract). 2010 amended tax form You cannot use this method if your annuity is paid under a nonqualified plan. 2010 amended tax form General Rule. 2010 amended tax form You must use this method if your annuity is paid under a nonqualified plan. 2010 amended tax form You generally cannot use this method if your annuity is paid under a qualified plan. 2010 amended tax form Contact your employer or plan administrator to find out if your pension or annuity is paid under a qualified or nonqualified plan. 2010 amended tax form You determine which method to use when you first begin receiving your annuity, and you continue using it each year that you recover part of your cost. 2010 amended tax form Exclusion limit. 2010 amended tax form   If your annuity starting date is after 1986, the total amount of annuity income you can exclude over the years as a recovery of the cost cannot exceed your total cost. 2010 amended tax form Any unrecovered cost at your (or the last annuitant's) death is allowed as a miscellaneous itemized deduction on the final return of the decedent. 2010 amended tax form This deduction is not subject to the 2%-of-adjusted-gross-income limit on miscellaneous deductions. 2010 amended tax form   If you contributed to your pension or annuity and your annuity starting date is before 1987, you can continue to take your monthly exclusion for as long as you receive your annuity. 2010 amended tax form If you chose a joint and survivor annuity, your survivor can continue to take the survivor's exclusion figured as of the annuity starting date. 2010 amended tax form The total exclusion may be more than your cost. 2010 amended tax form Cost. 2010 amended tax form   Before you can figure how much, if any, of your pension or annuity benefits are taxable, you must determine your cost in the plan (your investment in the contract). 2010 amended tax form Your total cost in the plan includes everything that you paid. 2010 amended tax form It also includes amounts your employer contributed that were taxable to you when paid. 2010 amended tax form However, see Foreign employment contributions , later. 2010 amended tax form   From this total cost, subtract any refunded premiums, rebates, dividends, unrepaid loans, or other tax-free amounts you received by the later of the annuity starting date or the date on which you received your first payment. 2010 amended tax form   The annuity starting date is the later of the first day of the first period for which you received a payment from the plan or the date on which the plan's obligations became fixed. 2010 amended tax form    The amount of your contributions to the plan may be shown in box 9b of any Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. 2010 amended tax form , that you receive. 2010 amended tax form Foreign employment contributions. 2010 amended tax form   If you worked abroad, certain amounts your employer paid into your retirement plan that were not includible in your gross income may be considered part of your cost. 2010 amended tax form For details, see Foreign employment contributions in Publication 575. 2010 amended tax form Withholding. 2010 amended tax form   The payer of your pension, profit-sharing, stock bonus, annuity, or deferred compensation plan will withhold income tax on the taxable part of amounts paid to you. 2010 amended tax form However, you can choose not to have tax withheld on the payments you receive, unless they are eligible rollover distributions. 2010 amended tax form (These are distributions that are eligible for rollover treatment but are not paid directly to another qualified retirement plan or to a traditional IRA. 2010 amended tax form ) See Withholding Tax and Estimated Tax and Rollovers in Publication 575 for more information. 2010 amended tax form   For payments other than eligible rollover distributions, you can tell the payer how much to withhold by filing a Form W-4P, Withholding Certificate for Pension or Annuity Payments. 2010 amended tax form Simplified Method. 2010 amended tax form   Under the Simplified Method, you figure the tax-free part of each annuity payment by dividing your cost by the total number of anticipated monthly payments. 2010 amended tax form For an annuity that is payable over the lives of the annuitants, this number is based on the annuitants' ages on the annuity starting date and is determined from a table. 2010 amended tax form For any other annuity, this number is the number of monthly annuity payments under the contract. 2010 amended tax form Who must use the Simplified Method. 2010 amended tax form   You must use the Simplified Method if your annuity starting date is after November 18, 1996, and you receive your pension or annuity payments from a qualified plan or annuity, unless you were at least 75 years old and entitled to at least 5 years of guaranteed payments (defined next). 2010 amended tax form   In addition, if your annuity starting date is after July 1, 1986, and before November 19, 1996, you could have chosen to use the Simplified Method for payments from a qualified plan, unless you were at least 75 years old and entitled to at least 5 years of guaranteed payments. 2010 amended tax form If you chose to use the Simplified Method, you must continue to use it each year that you recover part of your cost. 2010 amended tax form Guaranteed payments. 2010 amended tax form   Your annuity contract provides guaranteed payments if a minimum number of payments or a minimum amount (for example, the amount of your investment) is payable even if you and any survivor annuitant do not live to receive the minimum. 2010 amended tax form If the minimum amount is less than the total amount of the payments you are to receive, barring death, during the first 5 years after payments begin (figured by ignoring any payment increases), you are entitled to less than 5 years of guaranteed payments. 2010 amended tax form Who cannot use the Simplified Method. 2010 amended tax form   You cannot use the Simplified Method and must use the General Rule if you receive pension or annuity payments from: A nonqualified plan, such as a private annuity, a purchased commercial annuity, or a nonqualified employee plan, or A qualified plan if you are age 75 or older on your annuity starting date and you are entitled to at least 5 years of guaranteed payments (defined above). 2010 amended tax form   In addition, you had to use the General Rule for either circumstance described above if your annuity starting date is after July 1, 1986, and before November 19, 1996. 2010 amended tax form If you did not have to use the General Rule, you could have chosen to use it. 2010 amended tax form You also had to use the General Rule for payments from a qualified plan if your annuity starting date is before July 2, 1986, and you did not qualify to use the Three-Year Rule. 2010 amended tax form   If you had to use the General Rule (or chose to use it), you must continue to use it each year that you recover your cost. 2010 amended tax form   Unless your annuity starting date was before 1987, once you have recovered all of your non-taxable investment, all of each remaining payment you receive is fully taxable. 2010 amended tax form Once your remaining payments are fully taxable, there is no longer a concern with the General Rule or Simplified Method. 2010 amended tax form   Complete information on the General Rule, including the actuarial tables you need, is contained in Publication 939, General Rule for Pensions and Annuities. 2010 amended tax form How to use the Simplified Method. 2010 amended tax form   Complete the Simplified Method Worksheet in the Form 1040, Form 1040A, or Form 1040NR instructions or in Publication 575 to figure your taxable annuity for 2013. 2010 amended tax form Be sure to keep the completed worksheet; it will help you figure your taxable annuity next year. 2010 amended tax form   To complete line 3 of the worksheet, you must determine the total number of expected monthly payments for your annuity. 2010 amended tax form How you do this depends on whether the annuity is for a single life, multiple lives, or a fixed period. 2010 amended tax form For this purpose, treat an annuity that is payable over the life of an annuitant as payable for that annuitant's life even if the annuity has a fixed-period feature or also provides a temporary annuity payable to the annuitant's child under age 25. 2010 amended tax form    You do not need to complete line 3 of the worksheet or make the computation on line 4 if you received annuity payments last year and used last year's worksheet to figure your taxable annuity. 2010 amended tax form Instead, enter the amount from line 4 of last year's worksheet on line 4 of this year's worksheet. 2010 amended tax form Single-life annuity. 2010 amended tax form   If your annuity is payable for your life alone, use Table 1 at the bottom of the worksheet to determine the total number of expected monthly payments. 2010 amended tax form Enter on line 3 the number shown for your age on your annuity starting date. 2010 amended tax form This number will differ depending on whether your annuity starting date is before November 19, 1996, or after November 18, 1996. 2010 amended tax form Multiple-lives annuity. 2010 amended tax form   If your annuity is payable for the lives of more than one annuitant, use Table 2 at the bottom of the worksheet to determine the total number of expected monthly payments. 2010 amended tax form Enter on line 3 the number shown for the annuitants' combined ages on the annuity starting date. 2010 amended tax form For an annuity payable to you as the primary annuitant and to more than one survivor annuitant, combine your age and the age of the youngest survivor annuitant. 2010 amended tax form For an annuity that has no primary annuitant and is payable to you and others as survivor annuitants, combine the ages of the oldest and youngest annuitants. 2010 amended tax form Do not treat as a survivor annuitant anyone whose entitlement to payments depends on an event other than the primary annuitant's death. 2010 amended tax form   However, if your annuity starting date is before 1998, do not use Table 2 and do not combine the annuitants' ages. 2010 amended tax form Instead, you must use Table 1 at the bottom of the worksheet and enter on line 3 the number shown for the primary annuitant's age on the annuity starting date. 2010 amended tax form This number will differ depending on whether your annuity starting date is before November 19, 1996, or after November 18, 1996. 2010 amended tax form Fixed-period annuities. 2010 amended tax form   If your annuity does not depend in whole or in part on anyone's life expectancy, the total number of expected monthly payments to enter on line 3 of the worksheet is the number of monthly annuity payments under the contract. 2010 amended tax form Line 6. 2010 amended tax form   The amount on line 6 should include all amounts that could have been recovered in prior years. 2010 amended tax form If you did not recover an amount in a prior year, you may be able to amend your returns for the affected years. 2010 amended tax form    Be sure to keep a copy of the completed worksheet; it will help you figure your taxable annuity in later years. 2010 amended tax form Example. 2010 amended tax form Bill Smith, age 65, began receiving retirement benefits in 2013, under a joint and survivor annuity. 2010 amended tax form Bill's annuity starting date is January 1, 2013. 2010 amended tax form The benefits are to be paid over the joint lives of Bill and his wife, Kathy, age 65. 2010 amended tax form Bill had contributed $31,000 to a qualified plan and had received no distributions before the annuity starting date. 2010 amended tax form Bill is to receive a retirement benefit of $1,200 a month, and Kathy is to receive a monthly survivor benefit of $600 upon Bill's death. 2010 amended tax form Bill must use the Simplified Method to figure his taxable annuity because his payments are from a qualified plan and he is under age 75. 2010 amended tax form See the illustrated Worksheet 2-A, Simplified Method Worksheet, later. 2010 amended tax form You can find a blank version of this worksheet in Publication 575. 2010 amended tax form (The references in the illustrated worksheet are to sections in Publication 575). 2010 amended tax form His annuity is payable over the lives of more than one annuitant, so Bill uses his and Kathy's combined ages, 130 (65 + 65), and Table 2 at the bottom of the worksheet in completing line 3 of the worksheet and finds the line 3 amount to be 310. 2010 amended tax form Bill's tax-free monthly amount is $100 ($31,000 ÷ 310 as shown on line 4 of the worksheet). 2010 amended tax form Upon Bill's death, if Bill has not recovered the full $31,000 investment, Kathy will also exclude $100 from her $600 monthly payment. 2010 amended tax form The full amount of any annuity payments received after 310 payments are paid must generally be included in gross income. 2010 amended tax form If Bill and Kathy die before 310 payments are made, a miscellaneous itemized deduction will be allowed for the unrecovered cost on the final income tax return of the last to die. 2010 amended tax form This deduction is not subject to the 2%-of-adjusted-gross-income limit. 2010 amended tax form Worksheet 2-A. 2010 amended tax form Simplified Method Worksheet—Illustrated 1. 2010 amended tax form Enter the total pension or annuity payments received this year. 2010 amended tax form Also, add this amount to the total for Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a 1. 2010 amended tax form $ 14,400 2. 2010 amended tax form Enter your cost in the plan (contract) at the annuity starting date plus any death benefit exclusion* See Cost (Investment in the Contract), earlier 2. 2010 amended tax form 31,000   Note. 2010 amended tax form If your annuity starting date was before this year and you completed this worksheet last year, skip line 3 and enter the amount from line 4 of last year's worksheet on line 4 below (even if the amount of your pension or annuity has changed). 2010 amended tax form Otherwise, go to line 3. 2010 amended tax form     3. 2010 amended tax form Enter the appropriate number from Table 1 below. 2010 amended tax form But if your annuity starting date was after 1997 and the payments are for your life and that of your beneficiary, enter the appropriate number from Table 2 below 3. 2010 amended tax form 310 4. 2010 amended tax form Divide line 2 by the number on line 3 4. 2010 amended tax form 100 5. 2010 amended tax form Multiply line 4 by the number of months for which this year's payments were made. 2010 amended tax form If your annuity starting date was before 1987, enter this amount on line 8 below and skip lines 6, 7, 10, and 11. 2010 amended tax form Otherwise, go to line 6 5. 2010 amended tax form 1,200 6. 2010 amended tax form Enter any amount previously recovered tax free in years after 1986. 2010 amended tax form This is the amount shown on line 10 of your worksheet for last year 6. 2010 amended tax form 0 7. 2010 amended tax form Subtract line 6 from line 2 7. 2010 amended tax form 31,000 8. 2010 amended tax form Enter the smaller of line 5 or line 7 8. 2010 amended tax form 1,200 9. 2010 amended tax form Taxable amount for year. 2010 amended tax form Subtract line 8 from line 1. 2010 amended tax form Enter the result, but not less than zero. 2010 amended tax form Also, add this amount to the total for Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b. 2010 amended tax form Note. 2010 amended tax form If your Form 1099-R shows a larger taxable amount, use the amount figured on this line instead. 2010 amended tax form If you are a retired public safety officer, see Insurance Premiums for Retired Public Safety Officers, earlier, before entering an amount on your tax return. 2010 amended tax form 9. 2010 amended tax form $ 13,200 10. 2010 amended tax form Was your annuity starting date before 1987? □ Yes. 2010 amended tax form STOP. 2010 amended tax form Do not complete the rest of this worksheet. 2010 amended tax form  ☑ No. 2010 amended tax form Add lines 6 and 8. 2010 amended tax form This is the amount you have recovered tax free through 2013. 2010 amended tax form You will need this number if you need to fill out this worksheet next year. 2010 amended tax form 10. 2010 amended tax form 1,200 11. 2010 amended tax form Balance of cost to be recovered. 2010 amended tax form Subtract line 10 from line 2. 2010 amended tax form If zero, you will not have to complete this worksheet next year. 2010 amended tax form The payments you receive next year will generally be fully taxable 11. 2010 amended tax form $ 29,800 * A death benefit exclusion (up to $5,000) applied to certain benefits received by employees who died before August 21, 1996. 2010 amended tax form   Table 1 for Line 3 Above       AND your annuity starting date was—   IF your age on your annuity starting date was . 2010 amended tax form . 2010 amended tax form . 2010 amended tax form   BEFORE November 19, 1996, enter on line 3 . 2010 amended tax form . 2010 amended tax form . 2010 amended tax form AFTER November 18, 1996, enter on line 3 . 2010 amended tax form . 2010 amended tax form . 2010 amended tax form   55 or under 300 360   56-60 260 310   61-65 240 260   66-70 170 210   71 or over 120 160 Table 2 for Line 3 Above   IF the annuitants' combined ages on your annuity starting date were . 2010 amended tax form . 2010 amended tax form . 2010 amended tax form   THEN enter on line 3 . 2010 amended tax form . 2010 amended tax form . 2010 amended tax form         110 or under   410         111-120   360         121-130   310         131-140   260         141 or over   210       Survivors of retirees. 2010 amended tax form   Benefits paid to you as a survivor under a joint and survivor annuity must be included in your gross income in the same way the retiree would have included them in gross income. 2010 amended tax form   If you receive a survivor annuity because of the death of a retiree who had reported the annuity under the Three-Year Rule, include the total received in your income. 2010 amended tax form The retiree's cost has already been recovered tax free. 2010 amended tax form   If the retiree was reporting the annuity payments under the General Rule, you must apply the same exclusion percentage the retiree used to your initial payment called for in the contract. 2010 amended tax form The resulting tax-free amount will then remain fixed. 2010 amended tax form Any increases in the survivor annuity are fully taxable. 2010 amended tax form   If the retiree was reporting the annuity payments under the Simplified Method, the part of each payment that is tax free is the same as the tax-free amount figured by the retiree at the annuity starting date. 2010 amended tax form See Simplified Method , earlier. 2010 amended tax form How to report. 2010 amended tax form   If you file Form 1040, report your total annuity on line 16a, and the taxable part on line 16b. 2010 amended tax form If your pension or annuity is fully taxable, enter it on line 16b. 2010 amended tax form Do not make an entry on line 16a. 2010 amended tax form   If you file Form 1040A, report your total annuity on line 12a, and the taxable part on line 12b. 2010 amended tax form If your pension or annuity is fully taxable, enter it on line 12b. 2010 amended tax form Do not make an entry on line 12a. 2010 amended tax form   If you file Form 1040NR, report your total annuity on line 17a, and the taxable part on line 17b. 2010 amended tax form If your pension or annuity is fully taxable, enter it on line 17b. 2010 amended tax form Do not make an entry on line 17a. 2010 amended tax form Example. 2010 amended tax form You are a Form 1040 filer and you received monthly payments totaling $1,200 (12 months x $100) during 2013 from a pension plan that was completely financed by your employer. 2010 amended tax form You had paid no tax on the payments that your employer made to the plan, and the payments were not used to pay for accident, health, or long-term care insurance premiums (as discussed later under Insurance Premiums for Retired Public Safety Officers ). 2010 amended tax form The entire $1,200 is taxable. 2010 amended tax form You include $1,200 only on Form 1040, line 16b. 2010 amended tax form Joint return. 2010 amended tax form   If you file a joint return and you and your spouse each receive one or more pensions or annuities, report the total of the pensions and annuities on line 16a of Form 1040, line 12a of Form 1040A, or line 17a of Form 1040NR. 2010 amended tax form Report the total of the taxable parts on line 16b of Form 1040, line 12b of Form 1040A, or line 17b of Form 1040NR. 2010 amended tax form Form 1099-R. 2010 amended tax form   You should receive a Form 1099-R for your pension or annuity. 2010 amended tax form Form 1099-R shows your pension or annuity for the year and any income tax withheld. 2010 amended tax form You should receive a Form W-2 if you receive distributions from certain nonqualified plans. 2010 amended tax form You must attach Forms 1099-R or Forms W-2 to your 2013 tax return if federal income tax was withheld. 2010 amended tax form Generally, you should be sent these forms by January 31, 2014. 2010 amended tax form Nonperiodic Distributions If you receive a nonperiodic distribution from your retirement plan, you may be able to exclude all or part of it from your income as a recovery of your cost. 2010 amended tax form Nonperiodic distributions include cash withdrawals, distributions of current earnings (dividends) on your investment, and certain loans. 2010 amended tax form For information on how to figure the taxable amount of a nonperiodic distribution, see Taxation of Nonperiodic Payments in Publication 575. 2010 amended tax form The taxable part of a nonperiodic distribution may be subject to an additional 10% tax. 2010 amended tax form See Tax on Early Distributions, later. 2010 amended tax form Lump-sum distributions. 2010 amended tax form   If you receive a lump-sum distribution from a qualified employee plan or qualified employee annuity and the plan participant was born before January 2, 1936, you may be able to elect optional methods of figuring the tax on the distribution. 2010 amended tax form The part from active participation in the plan before 1974 may qualify as capital gain subject to a 20% tax rate. 2010 amended tax form The part from participation after 1973 (and any part from participation before 1974 that you do not report as capital gain) is ordinary income. 2010 amended tax form You may be able to use the 10-year tax option to figure tax on the ordinary income part. 2010 amended tax form Form 1099-R. 2010 amended tax form   If you receive a total distribution from a plan, you should receive a Form 1099-R. 2010 amended tax form If the distribution qualifies as a lump-sum distribution, box 3 shows the capital gain part of the distribution. 2010 amended tax form The amount in box 2a, Taxable amount, minus the amount in box 3, Capital gain, is the ordinary income part. 2010 amended tax form More information. 2010 amended tax form   For more detailed information on lump-sum distributions, see Publication 575 or Form 4972, Tax on Lump-Sum Distributions. 2010 amended tax form Tax on Early Distributions Most distributions you receive from your qualified retirement plan and nonqualified annuity contracts before you reach age 59½ are subject to an additional tax of 10%. 2010 amended tax form The tax applies to the taxable part of the distribution. 2010 amended tax form For this purpose, a qualified retirement plan is: A qualified employee plan (including a qualified cash or deferred arrangement (CODA) under Internal Revenue Code section 401(k)), A qualified employee annuity plan, A tax-sheltered annuity plan (403(b) plan), or An eligible state or local government section 457 deferred compensation plan (to the extent that any distribution is attributable to amounts the plan received in a direct transfer or rollover from one of the other plans listed here or an IRA). 2010 amended tax form  An IRA is also a qualified retirement plan for purposes of this tax. 2010 amended tax form General exceptions to tax. 2010 amended tax form   The early distribution tax does not apply to any distributions that are: Made as part of a series of substantially equal periodic payments (made at least annually) for your life (or life expectancy) or the joint lives (or joint life expectancies) of you and your designated beneficiary (if from a qualified retirement plan, the payments must begin after separation from service), Made because you are totally and permanently disabled, or Made on or after the death of the plan participant or contract holder. 2010 amended tax form Additional exceptions. 2010 amended tax form   There are additional exceptions to the early distribution tax for certain distributions from qualified retirement plans and nonqualified annuity contracts. 2010 amended tax form See Publication 575 for details. 2010 amended tax form Reporting tax. 2010 amended tax form   If you owe only the tax on early distributions and distribution code 1 (early distribution, no known exception) is correctly shown in Form 1099-R, box 7, multiply the taxable part of the early distribution by 10% (. 2010 amended tax form 10) and enter the result on Form 1040, line 58, or Form 1040NR, line 56. 2010 amended tax form See the instructions for line 58 of Form 1040 or line 56 of Form 1040NR for more information about reporting the early distribution tax. 2010 amended tax form Tax on Excess Accumulation To make sure that most of your retirement benefits are paid to you during your lifetime, rather than to your beneficiaries after your death, the payments that you receive from qualified retirement plans must begin no later than your required beginning date. 2010 amended tax form Unless the rule for 5% owners applies, this is generally April 1 of the year that follows the later of: The calendar year in which you reach age 70½, or The calendar year in which you retire from employment with the employer maintaining the plan. 2010 amended tax form However, your plan may require you to begin to receive payments by April 1 of the year that follows the year in which you reach 70½, even if you have not retired. 2010 amended tax form For this purpose, a qualified retirement plan includes: A qualified employee plan, A qualified employee annuity plan, An eligible section 457 deferred compensation plan, or A tax-sheltered annuity plan (403(b) plan) (for benefits accruing after 1986). 2010 amended tax form  An IRA is also a qualified retirement plan for purposes of this tax. 2010 amended tax form An excess accumulation is the undistributed remainder of the required minimum distribution that was left in your qualified retirement plan. 2010 amended tax form 5% owners. 2010 amended tax form   If you own (or are considered to own under section 318 of the Internal Revenue Code) more than 5% of the company maintaining your qualified retirement plan, you must begin to receive distributions from the plan by April 1 of the year after the calendar year in which you reach age 70½. 2010 amended tax form See Publication 575 for more information. 2010 amended tax form Amount of tax. 2010 amended tax form   If you do not receive the required minimum distribution, you are subject to an additional tax. 2010 amended tax form The tax equals 50% of the difference between the amount that must be distributed and the amount that was distributed during the tax year. 2010 amended tax form You can get this excise tax excused if you establish that the shortfall in distributions was due to reasonable error and that you are taking reasonable steps to remedy the shortfall. 2010 amended tax form Form 5329. 2010 amended tax form   You must file a Form 5329 if you owe a tax because you did not receive a minimum required distribution from your qualified retirement plan. 2010 amended tax form Additional information. 2010 amended tax form   For more detailed information on the tax on excess accumulation, see Publication 575. 2010 amended tax form Insurance Premiums for Retired Public Safety Officers If you are an eligible retired public safety officer (law enforcement officer, firefighter, chaplain, or member of a rescue squad or ambulance crew), you can elect to exclude from income distributions made from your eligible retirement plan that are used to pay the premiums for accident or health insurance or long-term care insurance. 2010 amended tax form The premiums can be for coverage for you, your spouse, or dependent(s). 2010 amended tax form The distribution must be made directly from the plan to the insurance provider. 2010 amended tax form You can exclude from income the smaller of the amount of the insurance premiums or $3,000. 2010 amended tax form You can only make this election for amounts that would otherwise be included in your income. 2010 amended tax form The amount excluded from your income cannot be used to claim a medical expense deduction. 2010 amended tax form An eligible retirement plan is a governmental plan that is a: Qualified trust, Section 403(a) plan, Section 403(b) annuity, or Section 457(b) plan. 2010 amended tax form If you make this election, reduce the otherwise taxable amount of your pension or annuity by the amount excluded. 2010 amended tax form The taxable amount shown in box 2a of any Form 1099-R that you receive does not reflect the exclusion. 2010 amended tax form Report your total distributions on Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a. 2010 amended tax form Report the taxable amount on Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b. 2010 amended tax form Enter “PSO” next to the appropriate line on which you report the taxable amount. 2010 amended tax form Railroad Retirement Benefits Benefits paid under the Railroad Retirement Act fall into two categories. 2010 amended tax form These categories are treated differently for income tax purposes. 2010 amended tax form Social security equivalent benefits. 2010 amended tax form   The first category is the amount of tier 1 railroad retirement benefits that equals the social security benefit that a railroad employee or beneficiary would have been entitled to receive under the social security system. 2010 amended tax form This part of the tier 1 benefit is the social security equivalent benefit (SSEB) and is treated for tax purposes like social security benefits. 2010 amended tax form (See Social Security and Equivalent Railroad Retirement Benefits , later. 2010 amended tax form ) Non-social security equivalent benefits. 2010 amended tax form   The second category contains the rest of the tier 1 benefits, called the non-social security equivalent benefit (NSSEB). 2010 amended tax form It also contains any tier 2 benefit, vested dual benefit (VDB), and supplemental annuity benefit. 2010 amended tax form This category of benefits is treated as an amount received from a qualified employee plan. 2010 amended tax form This allows for the tax-free (nontaxable) recovery of employee contributions from the tier 2 benefits and the NSSEB part of the tier 1 benefits. 2010 amended tax form Vested dual benefits and supplemental annuity benefits are non-contributory pensions and are fully taxable. 2010 amended tax form More information. 2010 amended tax form   For more information about railroad retirement benefits, see Publication 575. 2010 amended tax form Military Retirement Pay Military retirement pay based on age or length of service is taxable and must be included in income as a pension on Form 1040, lines 16a and 16b; on Form 1040A, lines 12a and 12b; or on Form 1040NR, lines 17a and 17b. 2010 amended tax form But, certain military and government disability pensions that are based on a percentage of disability from active service in the Armed Forces of any country generally are not taxable. 2010 amended tax form For more information, including information about veterans' benefits and insurance, see Publication 525. 2010 amended tax form Social Security and Equivalent Railroad Retirement Benefits This discussion explains the federal income tax rules for social security benefits and equivalent tier 1 railroad retirement benefits. 2010 amended tax form Social security benefits include monthly retirement, survivor, and disability benefits. 2010 amended tax form They do not include supplemental security income (SSI) payments, which are not taxable. 2010 amended tax form Equivalent tier 1 railroad retirement benefits are the part of tier 1 benefits that a railroad employee or beneficiary would have been entitled to receive under the social security system. 2010 amended tax form They commonly are called the social security equivalent benefit (SSEB) portion of tier 1 benefits. 2010 amended tax form If you received these benefits during 2013, you should have received a Form SSA-1099 or Form RRB-1099 (Form SSA-1042S or Form RRB-1042S if you are a nonresident alien), showing the amount of the benefits. 2010 amended tax form Are Any of Your Benefits Taxable? Note. 2010 amended tax form When the term “benefits” is used in this section, it applies to both social security benefits and the SSEB portion of tier 1 railroad retirement benefits. 2010 amended tax form  To find out whether any of your benefits may be taxable, compare the base amount for your filing status (explained later) with the total of: One-half of your benefits, plus All your other income, including tax-exempt interest. 2010 amended tax form When making this comparison, do not reduce your other income by any exclusions for: Interest from qualified U. 2010 amended tax form S. 2010 amended tax form savings bonds, Employer-provided adoption benefits, Foreign earned income or foreign housing, or Income earned in American Samoa or Puerto Rico by bona fide residents. 2010 amended tax form Figuring total income. 2010 amended tax form   To figure the total of one-half of your benefits plus your other income, use Worksheet 2-B. 2010 amended tax form If that total amount is more than your base amount, part of your benefits may be taxable. 2010 amended tax form If you are married and file a joint return for 2013, you and your spouse must combine your incomes and your benefits to figure whether any of your combined benefits are taxable. 2010 amended tax form Even if your spouse did not receive any benefits, you must add your spouse's income to yours to figure whether any of your benefits are taxable. 2010 amended tax form If the only income you received during 2013 was your social security or the SSEB portion of tier 1 railroad retirement benefits, your benefits generally are not taxable and you probably do not have to file a return. 2010 amended tax form If you have income in addition to your benefits, you may have to file a return even if none of your benefits are taxable. 2010 amended tax form Worksheet 2-B. 2010 amended tax form A Quick Way To Check if Your Benefits May Be Taxable A. 2010 amended tax form Enter the amount from box 5 of all your Forms SSA-1099 and RRB-1099. 2010 amended tax form Include  the full amount of any lump-sum benefit payments received in 2013, for 2013 and  earlier years. 2010 amended tax form (If you received more than one form, combine the amounts from box 5  and enter the total. 2010 amended tax form ) A. 2010 amended tax form     Note. 2010 amended tax form If the amount on line A is zero or less, stop here; none of your benefits are  taxable this year. 2010 amended tax form     B. 2010 amended tax form Enter one-half of the amount on line A B. 2010 amended tax form   C. 2010 amended tax form Enter your taxable pensions, wages, interest, dividends, and other taxable income C. 2010 amended tax form   D. 2010 amended tax form Enter any tax-exempt interest income (such as interest on municipal bonds) plus any exclusions from income for: •Interest from qualified U. 2010 amended tax form S. 2010 amended tax form savings bonds, •Employer-provided adoption benefits, •Foreign earned income or foreign housing, or •Income earned in American Samoa or Puerto Rico by bona fide residents D. 2010 amended tax form   E. 2010 amended tax form Add lines B, C, and D and enter the total E. 2010 amended tax form   F. 2010 amended tax form If you are: •Married filing jointly, enter $32,000 •Single, head of household, qualifying widow(er), or married filing separately and you  lived apart from your spouse for all of 2013, enter $25,000 •Married filing separately and you lived with your spouse at any time during 2013,  enter -0- F. 2010 amended tax form   G. 2010 amended tax form Is the amount on line F less than or equal to the amount on line E? □ No. 2010 amended tax form None of your benefits are taxable this year. 2010 amended tax form  □ Yes. 2010 amended tax form Some of your benefits may be taxable. 2010 amended tax form To figure how much of your benefits  are taxable, see Which worksheet to use under How Much Is Taxable. 2010 amended tax form     Base Amount Your base amount is: $25,000 if you are single, head of household, or qualifying widow(er) with dependent child, $25,000 if you are married filing separately and lived apart from your spouse for all of 2013, $32,000 if you are married filing jointly, or $0 if you are married filing separately and lived with your spouse at any time during 2013. 2010 amended tax form Repayment of Benefits Any repayment of benefits you made during 2013 must be subtracted from the gross benefits you received in 2013. 2010 amended tax form It does not matter whether the repayment was for a benefit you received in 2013 or in an earlier year. 2010 amended tax form If you repaid more than the gross benefits you received in 2013, see Repayments More Than Gross Benefits , later. 2010 amended tax form Your gross benefits are shown in box 3 of Form SSA-1099 or Form RRB-1099. 2010 amended tax form Your repayments are shown in box 4. 2010 amended tax form The amount in box 5 shows your net benefits for 2013 (box 3 minus box 4). 2010 amended tax form Use the amount in box 5 to figure whether any of your benefits are taxable. 2010 amended tax form Tax Withholding and Estimated Tax You can choose to have federal income tax withheld from your social security and/or the SSEB portion of your tier 1 railroad retirement benefits. 2010 amended tax form If you choose to do this, you must complete a Form W-4V, Voluntary Withholding Request. 2010 amended tax form If you do not choose to have income tax withheld, you may have to request additional withholding from other income, or pay estimated tax during the year. 2010 amended tax form For details, see Publication 505, Tax Withholding and Estimated Tax, or the instructions for Form 1040-ES, Estimated Tax for Individuals. 2010 amended tax form How Much Is Taxable? If part of your benefits is taxable, how much is taxable depends on the total amount of your benefits and other income. 2010 amended tax form Generally, the higher that total amount, the greater the taxable part of your benefits. 2010 amended tax form Maximum taxable part. 2010 amended tax form   The taxable part of your benefits usually cannot be more than 50%. 2010 amended tax form However, up to 85% of your benefits can be taxable if either of the following situations applies to you. 2010 amended tax form The total of one-half of your benefits and all your other income is more than $34,000 ($44,000 if you are married filing jointly). 2010 amended tax form You are married filing separately and lived with your spouse at any time during 2013. 2010 amended tax form   If you are a nonresident alien, 85% of your benefits are taxable. 2010 amended tax form However, this income is exempt under some tax treaties. 2010 amended tax form Which worksheet to use. 2010 amended tax form   A worksheet to figure your taxable benefits is in the instructions for your Form 1040 or 1040A. 2010 amended tax form However, you will need to use a different worksheet(s) if any of the following situations applies to you. 2010 amended tax form You contributed to a traditional individual retirement arrangement (IRA) and you or your spouse were covered by a retirement plan at work. 2010 amended tax form In this situation, you must use the special worksheets in Appendix B of Publication 590 to figure both your IRA deduction and your taxable benefits. 2010 amended tax form Situation (1) does not apply and you take one or more of the following exclusions. 2010 amended tax form Interest from qualified U. 2010 amended tax form S. 2010 amended tax form savings bonds (Form 8815). 2010 amended tax form Employer-provided adoption benefits (Form 8839). 2010 amended tax form Foreign earned income or housing (Form 2555 or Form 2555-EZ). 2010 amended tax form Income earned in American Samoa (Form 4563) or Puerto Rico by bona fide residents. 2010 amended tax form In these situations, you must use Worksheet 1 in Publication 915, Social Security and Equivalent Railroad Retirement Benefits, to figure your taxable benefits. 2010 amended tax form You received a lump-sum payment for an earlier year. 2010 amended tax form In this situation, also complete Worksheet 2 or 3 and Worksheet 4 in Publication 915. 2010 amended tax form See Lump-Sum Election , later. 2010 amended tax form How To Report Your Benefits If part of your benefits are taxable, you must use Form 1040, Form 1040A, or Form 1040NR. 2010 amended tax form You cannot use Form 1040EZ. 2010 amended tax form Reporting on Form 1040. 2010 amended tax form   Report your net benefits (the amount in box 5 of your Form SSA-1099 or Form RRB-1099) on line 20a and the taxable part on line 20b. 2010 amended tax form If you are married filing separately and you lived apart from your spouse for all of 2013, also enter “D” to the right of the word “benefits” on line 20a. 2010 amended tax form Reporting on Form 1040A. 2010 amended tax form   Report your net benefits (the amount in box 5 of your Form SSA-1099 or Form RRB-1099) on line 14a and the taxable part on line 14b. 2010 amended tax form If you are married filing separately and you lived apart from your spouse for all of 2013, also enter “D” to the right of the word “benefits” on line 14a. 2010 amended tax form Reporting on Form 1040NR. 2010 amended tax form   Report 85% of the total amount of your benefits (box 5 of your Form SSA-1042S or Form RRB-1042S) in the appropriate column of Form 1040NR, Schedule NEC, line 8. 2010 amended tax form Benefits not taxable. 2010 amended tax form   If you are filing Form 1040EZ, do not report any benefits on your tax return. 2010 amended tax form If you are filing Form 1040 or Form 1040A, report your net benefits (the amount in box 5 of your Form SSA-1099 or Form RRB-1099) on Form 1040, line 20a, or Form 1040A, line 14a. 2010 amended tax form Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. 2010 amended tax form If you are married filing separately and you lived apart from your spouse for all of 2013, also enter “D” to the right of the word “benefits” on Form 1040, line 20a, or Form 1040A, line 14a. 2010 amended tax form Lump-Sum Election You must include the taxable part of a lump-sum (retroactive) payment of benefits received in 2013 in your 2013 income, even if the payment includes benefits for an earlier year. 2010 amended tax form This type of lump-sum benefit payment should not be confused with the lump-sum death benefit that both the SSA and RRB pay to many of their beneficiaries. 2010 amended tax form No part of the lump-sum death benefit is subject to tax. 2010 amended tax form For more information about the lump-sum death benefit, visit the Social Security Administration website at www. 2010 amended tax form SSA. 2010 amended tax form gov, and use keyword: death benefit. 2010 amended tax form Generally, you use your 2013 income to figure the taxable part of the total benefits received in 2013. 2010 amended tax form However, you may be able to figure the taxable part of a lump-sum payment for an earlier year separately, using your income for the earlier year. 2010 amended tax form You can elect this method if it lowers your taxable benefits. 2010 amended tax form See Publication 915 for more information. 2010 amended tax form Repayments More Than Gross Benefits In some situations, your Form SSA-1099 or Form RRB-1099 will show that the total benefits you repaid (box 4) are more than the gross benefits (box 3) you received. 2010 amended tax form If this occurred, your net benefits in box 5 will be a negative figure (a figure in parentheses) and none of your benefits will be taxable. 2010 amended tax form If you receive more than one form, a negative figure in box 5 of one form is used to offset a positive figure in box 5 of another form for that same year. 2010 amended tax form If you have any questions about this negative figure, contact your local Social Security Administration office or your local U. 2010 amended tax form S. 2010 amended tax form Railroad Retirement Board field office. 2010 amended tax form Joint return. 2010 amended tax form   If you and your spouse file a joint return, and your Form SSA-1099 or RRB-1099 has a negative figure in box 5 but your spouse's does not, subtract the box 5 amount on your form from the box 5 amount on your spouse's form. 2010 amended tax form You do this to get your net benefits when figuring if your combined benefits are taxable. 2010 amended tax form Repayment of benefits received in an earlier year. 2010 amended tax form   If the total amount shown in box 5 of all of your Forms SSA-1099 and RRB-1099 is a negative figure, you can take an itemized deduction for the part of this negative figure that represents benefits you included in gross income in an earlier year. 2010 amended tax form   If this deduction is $3,000 or less, it is subject to the 2%-of-adjusted-gross-income limit that applies to certain miscellaneous itemized deductions. 2010 amended tax form Claim it on Schedule A (Form 1040), line 23. 2010 amended tax form   If this deduction is more than $3,000, you have to follow some special instructions. 2010 amended tax form See Publication 915 for those instructions. 2010 amended tax form Sickness and Injury Benefits Generally, you must report as income any amount you receive for personal injury or sickness through an accident or health plan that is paid for by your employer. 2010 amended tax form If both you and your employer pay for the plan, only the amount you receive that is due to your employer's payments is reported as income. 2010 amended tax form However, certain payments may not be taxable to you. 2010 amended tax form Some of these payments are discussed later in this section. 2010 amended tax form Also, see Military and Government Disability Pensions and Other Sickness and Injury Benefits in Publication 525. 2010 amended tax form Cost paid by you. 2010 amended tax form   If you pay the entire cost of an accident or health plan, do not include any amounts you receive from the plan for personal injury or sickness as income on your tax return. 2010 amended tax form If your plan reimbursed you for medical expenses you deducted in an earlier year, you may have to include some, or all, of the reimbursement in your income. 2010 amended tax form Disability Pensions If you retired on disability, you must include in income any disability pension you receive under a plan that is paid for by your employer. 2010 amended tax form You must report your taxable disability payments as wages on line 7 of Form 1040 or Form 1040A or on line 8 of Form 1040NR until you reach minimum retirement age. 2010 amended tax form Minimum retirement age generally is the age at which you can first receive a pension or annuity if you are not disabled. 2010 amended tax form If you were 65 or older by the end of 2013 or you were retired on permanent and total disability and received taxable disability income, you may be able to claim the credit for the elderly or the disabled. 2010 amended tax form See Credit for the Elderly or the Disabled, later. 2010 amended tax form For more information on this credit, see Publication 524, Credit for the Elderly or the Disabled. 2010 amended tax form Beginning on the day after you reach minimum retirement age, payments you receive are taxable as a pension or annuity. 2010 amended tax form Report the payments on lines 16a and 16b of Form 1040, on lines 12a and 12b of Form 1040A, or on lines 17a and 17b of Form 1040NR. 2010 amended tax form For more information on pensions and annuities, see Publication 575. 2010 amended tax form Retirement and profit-sharing plans. 2010 amended tax form   If you receive payments from a retirement or profit-sharing plan that does not provide for disability retirement, do not treat the payments as a disability pension. 2010 amended tax form The payments must be reported as a pension or annuity. 2010 amended tax form Accrued leave payment. 2010 amended tax form   If you retire on disability, any lump-sum payment you receive for accrued annual leave is a salary payment. 2010 amended tax form The payment is not a disability payment. 2010 amended tax form Include it in your income in the tax year you receive it. 2010 amended tax form Long-Term Care Insurance Contracts In most cases, long-term care insurance contracts generally are treated as accident and health insurance contracts. 2010 amended tax form Amounts you receive from them (other than policyholder dividends or premium refunds) generally are excludable from income as amounts received for personal injury or sickness. 2010 amended tax form However, the amount you can exclude may be limited. 2010 amended tax form Long-term care insurance contracts are discussed in more detail in Publication 525. 2010 amended tax form Workers' Compensation Amounts you receive as workers' compensation for an occupational sickness or injury are fully exempt from tax if they are paid under a workers' compensation act or a statute in the nature of a workers' compensation act. 2010 amended tax form The exemption also applies to your survivors. 2010 amended tax form The exemption, however, does not apply to retirement plan benefits you receive based on your age, length of service, or prior contributions to the plan, even if you retired because of an occupational sickness or injury. 2010 amended tax form If part of your workers' compensation reduces your social security or equivalent railroad retirement benefits, that part is considered social security (or equivalent railroad retirement) benefits and may be taxable. 2010 amended tax form For a discussion of the taxability of these benefits, see Social Security and Equivalent Railroad Retirement Benefits, earlier. 2010 amended tax form Return to work. 2010 amended tax form   If you return to work after qualifying for workers' compensation, salary payments you receive for performing light duties are taxable as wages. 2010 amended tax form Other Sickness and Injury Benefits In addition to disability pensions and annuities, you may receive other payments for sickness or injury. 2010 amended tax form Federal Employees' Compensation Act (FECA). 2010 amended tax form   Payments received under this Act for personal injury or sickness, including payments to beneficiaries in case of death, are not taxable. 2010 amended tax form However, you are taxed on amounts you receive under this Act as continuation of pay for up to 45 days while a claim is being decided. 2010 amended tax form Report this income on Form 1040, line 7; Form 1040A, line 7; on Form 1040EZ, line 1; or Form 1040NR, line 8. 2010 amended tax form Also, pay for sick leave while a claim is being processed is taxable and must be included in your income as wages. 2010 amended tax form    If part of the payments you receive under FECA reduces your social security or equivalent railroad retirement benefits, that part is considered social security (or equivalent railroad retirement) benefits and may be taxable. 2010 amended tax form For a discussion of the taxability of these benefits, see Social Security and Equivalent Railroad Retirement Benefits, earlier. 2010 amended tax form Other compensation. 2010 amended tax form   Many other amounts you receive as compensation for sickness or injury are not taxable. 2010 amended tax form These include the following amounts. 2010 amended tax form Benefits you receive under an accident or health insurance policy on which either you paid the premiums or your employer paid the premiums but you had to include them in your income. 2010 amended tax form Disability benefits you receive for loss of income or earning capacity as a result of injuries under a no-fault car insurance policy. 2010 amended tax form Compensation you receive for permanent loss or loss of use of a part or function of your body, for your permanent disfigurement, or for such loss or disfigurement suffered by your spouse or dependent(s). 2010 amended tax form This compensation must be based only on the injury and not on the period of your absence from work. 2010 amended tax form These benefits are not taxable even if your employer pays for the accident and health plan that provides these benefits. 2010 amended tax form Life Insurance Proceeds Life insurance proceeds paid to you because of the death of the insured person are not taxable unless the policy was turned over to you for a price. 2010 amended tax form This is true even if the proceeds were paid under an accident or health insurance policy or an endowment contract. 2010 amended tax form Proceeds not received in installments. 2010 amended tax form   If death benefits are paid to you in a lump sum or other than at regular intervals, include in your income only the benefits that are more than the amount payable to you at the time of the insured person's death. 2010 amended tax form If the benefit payable at death is not specified, you include in your income the benefit payments that are more than the present value of the payments at the time of death. 2010 amended tax form Proceeds received in installments. 2010 amended tax form   If you receive life insurance proceeds in installments, you can exclude part of each installment from your income. 2010 amended tax form   To determine the excluded part, divide the amount held by the insurance company (generally the total lump sum payable at the death of the insured person) by the number of installments to be paid. 2010 amended tax form Include anything over this excluded part in your income as interest. 2010 amended tax form Installments for life. 2010 amended tax form   If, as the beneficiary under an insurance contract, you are entitled to receive the proceeds in installments for the rest of your life without a refund or period-certain guarantee, you figure the excluded part of each installment by dividing the amount held by the insurance company by your life expectancy. 2010 amended tax form If there is a refund or period-certain guarantee, the amount held by the insurance company for this purpose is reduced by the actuarial value of the guarantee. 2010 amended tax form Surviving spouse. 2010 amended tax form   If your spouse died before October 23, 1986, and insurance proceeds paid to you because of the death of your spouse are received in installments, you can exclude, in any year, up to $1,000 of the interest included in the installments. 2010 amended tax form If you remarry, you can continue to take the exclusion. 2010 amended tax form Surrender of policy for cash. 2010 amended tax form   If you surrender a life insurance policy for cash, you must include in income any proceeds that are more than the cost of the life insurance policy. 2010 amended tax form In general, your cost (or investment in the contract) is the total of premiums that you paid for the life insurance policy, less any refunded premiums, rebates, dividends, or unrepaid loans that were not included in your income. 2010 amended tax form You should receive a Form 1099-R showing the total proceeds and the taxable part. 2010 amended tax form Report these amounts on Form 1040, lines 16a and 16b; Form 1040A, lines 12a and 12b; or Form 1040NR, lines 17a and 17b. 2010 amended tax form Endowment Contract Proceeds An endowment contract is a policy that pays over to you a specified amount of money on a certain date unless you die before that date, in which case, the money is paid to your designated beneficiary. 2010 amended tax form Endowment proceeds paid in a lump sum to you at maturity are taxable only if the proceeds are more than the cost of the policy. 2010 amended tax form To determine your cost, subtract from the total premiums (or other consideration) paid for the contract any amount that you previously received under the contract and excluded from your income. 2010 amended tax form Include in your income the part of the lump-sum payment that is more than your cost. 2010 amended tax form Endowment proceeds that you choose to receive in installments instead of a lump-sum payment at the maturity of the policy are taxed as an annuity. 2010 amended tax form The tax treatment of an annuity is explained in Publication 575. 2010 amended tax form For this treatment to apply, you must choose to receive the proceeds in installments before receiving any part of the lump sum. 2010 amended tax form This election must be made within 60 days after the lump-sum payment first becomes payable to you. 2010 amended tax form Accelerated Death Benefits Certain amounts paid as accelerated death benefits under a life insurance contract or viatical settlement before the insured's death are generally excluded from income if the insured is terminally or chronically ill. 2010 amended tax form However, see Exception , later. 2010 amended tax form For a chronically ill individual, accelerated death benefits paid on the basis of costs incurred for qualified long-term care services are fully excludable. 2010 amended tax form Accelerated death benefits paid on a per diem or other periodic basis without regard to the costs are excludable up to a limit. 2010 amended tax form In addition, if any portion of a death benefit under a life insurance contract on the life of a terminally or chronically ill individual is sold or assigned to a viatical settlement provider, the amount received also is excluded from income. 2010 amended tax form Generally, a viatical settlement provider is one who regularly engages in the business of buying or taking assignment of life insurance contracts on the lives of insured individuals who are terminally or chronically ill. 2010 amended tax form To report taxable accelerated death benefits made on a per diem or other periodic basis, you must file Form 8853, Archer MSAs and Long-Term Care Insurance Contracts, with your return. 2010 amended tax form Terminally or chronically ill defined. 2010 amended tax form   A terminally ill person is one who has been certified by a physician as having an illness or physical condition that reasonably can be expected to result in death within 24 months from the date of the certification. 2010 amended tax form A chronically ill person is one who is not terminally ill but has been certified (within the previous 12 months) by a licensed health care practitioner as meeting either of the following conditions. 2010 amended tax form The person is unable to perform (without substantial help) at least two activities of daily living (eating, toileting, transferring, bathing, dressing, and continence) for a period of 90 days or more because of a loss of functional capacity. 2010 amended tax form The person requires substantial supervision to protect himself or herself from threats to health and safety due to severe cognitive impairment. 2010 amended tax form Exception. 2010 amended tax form   The exclusion does not apply to any amount paid to a person other than the insured if that other person has an insurable interest in the life of the insured because the insured: Is a director, officer, or employee of the other person, or Has a financial interest in the business of the other person. 2010 amended tax form Sale of Home You may be able to exclude from income any gain up to $250,000 ($500,000 on a joint return in most cases) on the sale of your main home. 2010 amended tax form Generally, if you can exclude all of the gain, you do not need to report the sale on your tax return. 2010 amended tax form You can choose not to take the exclusion by including the gain from the sale in your gross income on your tax return for the year of the sale. 2010 amended tax form Main home. 2010 amended tax form   Usually, your main home is the home you live in most of the time and can be a: House, Houseboat, Mobile home, Cooperative apartment, or Condominium. 2010 amended tax form Repaying the first-time homebuyer credit because you sold your home. 2010 amended tax form   If you claimed a first-time homebuyer credit for your main home and you sell it, you may have to repay the credit. 2010 amended tax form For a home purchased in 2008 and used as your main home until sold in 2013, you must file Form 5405 and repay the balance of the unpaid credit on your 2013 tax return. 2010 amended tax form   For a home purchased after 2008, you generally must repay the entire credit if the home was sold (or otherwise ceased to be your main home) within 36 months of the purchase date. 2010 amended tax form If you purchased your home in 2009 and used it as your main home until sold in 2013, you do not have to repay the credit or file Form 5405. 2010 amended tax form If you purchased your home in 2010 and used it as your main home until sold in 2013, you may have to file Form 5405 and repay the entire credit on your 2013 tax return. 2010 amended tax form   See the Instructions for Form 5405 for more information about repaying the credit and exceptions to repayment that may apply to you. 2010 amended tax form Maximum Amount of Exclusion You can generally exclude up to $250,000 of the gain (other than gain allocated to periods of nonqualified use) on the sale of your main home if all of the following are true. 2010 amended tax form You meet the ownership test. 2010 amended tax form You meet the use test. 2010 amended tax form During the 2-year period ending on the date of the sale, you did not exclude gain from the sale of another home. 2010 amended tax form You may be able to exclude up to $500,000 of the gain (other than gain allocated to periods of nonqualified use) on the sale of your main home if you are married and file a joint return and meet the requirements listed in the discussion of the special rules for joint returns, later, under Married Persons . 2010 amended tax form Ownership and Use Tests To claim the exclusion, you must meet the ownership and use tests. 2010 amended tax form This means that during the 5-year period ending on the date of the sale, you must have: Owned the home for at least 2 years (the ownership test), and Lived in the home as your main home for at least 2 years (the use test). 2010 amended tax form Exception to ownership and use tests. 2010 amended tax form   If you owned and lived in the property as your main home for less than 2 years, you still can claim an exclusion in some cases. 2010 amended tax form Generally, you must have sold the home due to a change in place of employment, health, or unforeseen circumstances. 2010 amended tax form The maximum amount you can exclude will be reduced. 2010 amended tax form See Publication 523, Selling Your Home, for more information. 2010 amended tax form Exception to use test for individuals with a disability. 2010 amended tax form   There is an exception to the use test if, during the 5-year period before the sale of your home: You become physically or mentally unable to care for yourself, and You owned and lived in your home as your main home for a total of at least 1 year. 2010 amended tax form Under this exception, you are considered to live in your home during any time that you own the home and live in a facility (including a nursing home) that is licensed by a state or political subdivision to care for persons in your condition. 2010 amended tax form   If you meet this exception to the use test, you still have to meet the 2-out-of-5-year ownership test to claim the exclusion. 2010 amended tax form Exception to ownership test for property acquired in a like-kind exchange. 2010 amended tax form   You must have owned your main home for at least 5 years to qualify for the exclusion if you acquired your main home in a like-kind exchange. 2010 amended tax form This special 5-year ownership rule continues to apply to a home you acquired in a like-kind exchange and gave to another person. 2010 amended tax form A like-kind exchange is an exchange of property held for productive use in a trade or business or for investment. 2010 amended tax form See Publication 523 for more information. 2010 amended tax form Period of nonqualified use. 2010 amended tax form   Generally, the gain from the sale or exchange of your main home will not qualify for the exclusion to the extent that the gain is allocated to periods of nonqualified use. 2010 amended tax form Nonqualified use is any period after December 31, 2008, during which the property is not used as the main home. 2010 amended tax form See Publication 523 for more information. 2010 amended tax form Married Persons In the special situations discussed below, if you and your spouse file a joint return for the year of sale and one spouse meets the ownership and use test, you can exclude up to $250,000 of gain. 2010 amended tax form However, see Special rules for joint returns , next. 2010 amended tax form Special rules for joint returns. 2010 amended tax form   You can exclude up to $500,000 of the gain on the sale of your main home if all of the following are true. 2010 amended tax form You are married and file a joint return for the year. 2010 amended tax form Either you or your spouse meets the ownership test. 2010 amended tax form Both you and your spouse meet the use test. 2010 amended tax form During the 2-year period ending on the date of the sale, neither you nor your spouse exclude gain from the sale of another home. 2010 amended tax form Sale of home by surviving spouse. 2010 amended tax form   If your spouse died and you did not remarry before the date of sale, you are considered to have owned and lived in the property as your main home during any period of time when your spouse owned and lived in it as a main home. 2010 amended tax form   If you meet all of the following requirements, you may qualify to exclude up to $500,000 of any gain from the sale or exchange of your main home in 2013. 2010 amended tax form The sale or exchange took place no more than 2 years after the date of death of your spouse. 2010 amended tax form You have not remarried. 2010 amended tax form You and your spouse met the use test at the time of your spouse's death. 2010 amended tax form You or your spouse met the ownership test at the time of your spouse's death. 2010 amended tax form Neither you nor your spouse excluded gain from the sale of another home during the last 2 years. 2010 amended tax form Home transferred from spouse. 2010 amended tax form   If your home was transferred to you by your spouse (or former spouse if the transfer was incident to divorce), you are considered to have owned it during any period of time when your spouse owned it. 2010 amended tax form Use of home after divorce. 2010 amended tax form   You are considered to have used property as your main home during any period when: You owned it, and Your spouse or former spouse is allowed to live in it under a divorce or separation instrument and uses it as his or her main home. 2010 amended tax form Business Use or Rental of Home You may be able to exclude gain from the sale of a home that you have used for business or to produce rental income. 2010 amended tax form However, you must meet the ownership and use tests. 2010 amended tax form See Publication 523 for more information. 2010 amended tax form Depreciation after May 6, 1997. 2010 amended tax form   If you were entitled to take depreciation deductions because you used your home for business purposes or as rental property, you cannot exclude the part of your gain equal to any depreciation allowed or allowable as a deduction for periods after May 6, 1997. 2010 amended tax form See Publication 523 for more information. 2010 amended tax form Reporting the Sale Do not report the 2013 sale of your main home on your tax return unless: You have a gain and you do not qualify to exclude all of it, You have a gain and you choose not to exclude it, or You received Form 1099-S. 2010 amended tax form If you have a gain that you cannot or choose not to exclude, if you received a Form 1099-S, or if you have a deductible loss, report the sale on your tax return. 2010 amended tax form Report the sale on Part I or Part II of Form 8949 as a short-term or long-term transaction, depending on how long you owned the home. 2010 amended tax form If you used your home for business or to produce rental income, you may have to use Form 4797, Sales of Business Property, to report the sale of the business or rental part. 2010 amended tax form See Publication 523 for more information. 2010 amended tax form Reverse Mortgages A revers
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Understanding Your CP2000 Notice

The income and/or payment information we have on file doesn’t match the information you reported on your tax return. This could affect your tax return; it may cause an increase or decrease in your tax, or may not change it at all.


What you need to do

  • Read your notice carefully—it explains the information we received and how it affects your tax return.
  • Complete the notice response form whether or not you agree or disagree with the notice, the response form explains what actions to take. (Your specific notice may not have a response form. In that case, the notice will have instructions on what to do).
  • Contact the business or person reporting the information, if it is wrong. Ask them to correct it, and then provide the corrected information to us.

You may want to…


Answers to Common Questions

Why did I receive the notice?

We received information from a third party that doesn’t match the information you reported on your tax return.

Is the notice a bill?

No. It informs you about the information we’ve received and how it affects your tax.

What do I need to do?

Complete the notice response form. (Follow the notice instructions if your notice doesn’t have a response form.)

What do I do if the information is wrong or if I disagree?

The notice response form has instructions on what to do if the new information is wrong. You also may want to contact whoever reported the information and ask them to correct it.

The information is wrong because someone else is using my name and social security number. What can I do?

Call us and let us know. You also can use this link to go to our Identity theft information webpage to find out more about what you can do.

I reported the information but I reported it incorrectly. Can I call you to correct my return?

We can accept your information over the phone for incorrectly reported information as long as the mistake didn't increase or decrease your tax.

Do I need to amend my return?

If the information displayed in the CP2000 notice is correct, you don't need to amend your return unless you have additional income, credits or expenses to report. If you agree with our notice, follow the instructions to sign the response page and return it to us in the envelope provided.

If you have additional income, credits or expenses to report, you may want to complete and submit a Form 1040-X, Amended U.S. Individual Income Tax Return. You can receive help at an IRS Taxpayer Assistance Center.

I want to check a copy of my original return. I don’t have one. How can I get one?

You can get a transcript of your return on our ”Order a Transcript” webpage at irs.gov. You also can get one by completing and sending us a Form 4506-T, Request for Transcript of Tax Return.

I don’t want a transcript of my return. I want a copy. How can I get one?

Did an accountant or some other person prepare your return? You could ask them for a copy.

I can’t get a copy of my return from a tax preparer. How else can I get a copy of it?

You can get a copy of your return by completing and sending us a Form 4506, Request for Copy of Tax Return. We charge a fee for tax return requests.

How can I find an IRS Taxpayer Assistance Center?

We have centers located throughout the country. Our website has directions on how to find the center nearest to you.

Why did it take you so long to contact me about this matter?

Our computer systems match the information you report on your tax return with information reported by employers, banks, businesses, and others. This matching takes several months to complete.

The notice says my taxes will increase. Will I be charged interest on the money I owe?

Yes, interest accrues on your unpaid balance until you pay it in full.

What happens if I can’t pay the full amount I owe?

You can make a payment plan with us when you can’t pay the full amount you owe.

How can I make a payment plan?

Call us at the toll free number on the top right corner of your notice to talk about payment plans or learn more about them at this web page.


Tips for next year

You can avoid future problems by:

  • keeping accurate and full records
  • waiting until you get all of your income statements before filing your tax return
  • checking the records you get from your employer, mortgage company, bank, or other sources of income (W-2s, 1098s, 1099s, etc.) to make sure they're correct
  • including all your income on your tax return
  • following the instructions on how to report income, expenses and deductions
  • filing an amended tax return for any information you receive after you’ve filed your return

Consider filing your taxes electronically. Filing online can help you avoid mistakes and find credits and deductions you may qualify for. In many cases, you can file for free. Learn more about how to file electronically here.

Page Last Reviewed or Updated: 28-Feb-2014

The 2010 Amended Tax Form

2010 amended tax form 8. 2010 amended tax form   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. 2010 amended tax form 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. 2010 amended tax form Introduction This chapter discusses how to pay your U. 2010 amended tax form S. 2010 amended tax form income tax as you earn or receive income during the year. 2010 amended tax form In general, the federal income tax is a pay as you go tax. 2010 amended tax form There are two ways to pay as you go. 2010 amended tax form Withholding. 2010 amended tax form If you are an employee, your employer probably withholds income tax from your pay. 2010 amended tax form Tax may also be withheld from certain other income—including pensions, bonuses, commissions, and gambling winnings. 2010 amended tax form In each case, the amount withheld is paid to the U. 2010 amended tax form S. 2010 amended tax form Treasury in your name. 2010 amended tax form Estimated tax. 2010 amended tax form If you do not pay your tax through withholding, or do not pay enough tax that way, you might have to pay estimated tax. 2010 amended tax form People who are in business for themselves generally will have to pay their tax this way. 2010 amended tax form You may have to pay estimated tax if you receive income such as dividends, interest, rent, and royalties. 2010 amended tax form Estimated tax is used to pay not only income tax, but self-employment tax and alternative minimum tax as well. 2010 amended tax form 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. 2010 amended tax form Useful Items - You may want to see: Publication 515 Withholding of Tax on Nonresident Aliens and Foreign Entities 901 U. 2010 amended tax form S. 2010 amended tax form 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. 2010 amended tax form S. 2010 amended tax form 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. 2010 amended tax form S. 2010 amended tax form Real Property Interests 13930 Application for Central Withholding Agreement See chapter 12 for information about getting these publications and forms. 2010 amended tax form 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. 2010 amended tax form 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. 2010 amended tax form 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. 2010 amended tax form S. 2010 amended tax form citizens. 2010 amended tax form 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. 2010 amended tax form 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. 2010 amended tax form However, if the income is effectively connected with a U. 2010 amended tax form S. 2010 amended tax form trade or business, file Form W-8ECI instead. 2010 amended tax form Withholding From Compensation The following discussion generally applies only to nonresident aliens. 2010 amended tax form Tax is withheld from resident aliens in the same manner as U. 2010 amended tax form S. 2010 amended tax form citizens. 2010 amended tax form 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. 2010 amended tax form S. 2010 amended tax form citizens. 2010 amended tax form 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. 2010 amended tax form 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. 2010 amended tax form 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). 2010 amended tax form These are services you are required to perform as an employee and as a condition of receiving the scholarship or fellowship (or tuition reduction). 2010 amended tax form Nonresident aliens should fill out Form W-4 using the following instructions instead of the instructions on the Form W-4. 2010 amended tax form 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. 2010 amended tax form Enter your social security number (SSN) on line 2. 2010 amended tax form Do not enter an individual taxpayer identification number (ITIN). 2010 amended tax form Check only “Single” marital status on line 3 (regardless of your actual marital status). 2010 amended tax form Claim only one allowance on line 5, unless you are a resident of Canada, Mexico, or South Korea, or a U. 2010 amended tax form S. 2010 amended tax form national. 2010 amended tax form Write “Nonresident Alien” or “NRA” on the dotted line on line 6. 2010 amended tax form You can request additional withholding on line 6 at your option. 2010 amended tax form Do not claim “Exempt” withholding status on line 7. 2010 amended tax form A U. 2010 amended tax form S. 2010 amended tax form national is an individual who, although not a U. 2010 amended tax form S. 2010 amended tax form citizen, owes his or her allegiance to the United States. 2010 amended tax form U. 2010 amended tax form S. 2010 amended tax form nationals include American Samoans, and Northern Mariana Islanders who chose to become U. 2010 amended tax form S. 2010 amended tax form nationals instead of U. 2010 amended tax form S. 2010 amended tax form citizens. 2010 amended tax form See Withholding on Scholarships and Fellowship Grants later, for how to fill out Form W-4 if you receive a U. 2010 amended tax form S. 2010 amended tax form source scholarship or fellowship grant that is not a payment for services. 2010 amended tax form Students and business apprentices from India. 2010 amended tax form   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. 2010 amended tax form 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. 2010 amended tax form S. 2010 amended tax form taxpayer's 2013 return. 2010 amended tax form 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. 2010 amended tax form S. 2010 amended tax form citizens. 2010 amended tax form Household employees. 2010 amended tax form   If you work as a household employee, your employer does not have to withhold income tax. 2010 amended tax form However, you may agree to voluntary income tax withholding by filing a Form W-4 with your employer. 2010 amended tax form The agreement goes into effect when your employer accepts the agreement by beginning the withholding. 2010 amended tax form You or your employer may end the agreement by letting the other know in writing. 2010 amended tax form Agricultural workers. 2010 amended tax form   If you are an agricultural worker on an H-2A visa, your employer does not have to withhold income tax. 2010 amended tax form However, your employer will withhold income tax only if you and your employer agree to withhold. 2010 amended tax form In that case, you must provide your employer with a properly completed Form W-4. 2010 amended tax form You can find more information about not having tax withheld at www. 2010 amended tax form irs. 2010 amended tax form gov/Individuals/International-Taxpayers/Foreign-Agricultural-Workers. 2010 amended tax form Wages Exempt From Withholding Wages that are exempt from U. 2010 amended tax form S. 2010 amended tax form income tax under an income tax treaty are generally exempt from withholding. 2010 amended tax form For information on how to claim this exemption from withholding, see Income Entitled to Tax Treaty Benefits , later. 2010 amended tax form Wages paid to aliens who are residents of American Samoa, Canada, Mexico, Puerto Rico, or the U. 2010 amended tax form S. 2010 amended tax form Virgin Islands may be exempt from withholding. 2010 amended tax form The following paragraphs explain these exemptions. 2010 amended tax form Residents of Canada or Mexico engaged in transportation-related employment. 2010 amended tax form   Certain residents of Canada or Mexico who enter or leave the United States at frequent intervals are not subject to withholding on their wages. 2010 amended tax form 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. 2010 amended tax form    This employment is subject to withholding of social security and Medicare taxes unless the services are performed for a railroad. 2010 amended tax form   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. 2010 amended tax form S. 2010 amended tax form 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. 2010 amended tax form   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. 2010 amended tax form Residents of American Samoa and Puerto Rico. 2010 amended tax form   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. 2010 amended tax form Residents of the U. 2010 amended tax form S. 2010 amended tax form Virgin Islands. 2010 amended tax form   Nonresident aliens who are bona fide residents of the U. 2010 amended tax form S Virgin Islands are not subject to withholding of U. 2010 amended tax form S. 2010 amended tax form tax on income earned while temporarily employed in the United States. 2010 amended tax form This is because those persons pay their income tax to the U. 2010 amended tax form S. 2010 amended tax form Virgin Islands. 2010 amended tax form To avoid having tax withheld on income earned in the United States, bona fide residents of the U. 2010 amended tax form S. 2010 amended tax form Virgin Islands should write a letter, in duplicate, to their employers, stating that they are bona fide residents of the U. 2010 amended tax form S. 2010 amended tax form Virgin Islands and expect to pay tax on all income to the U. 2010 amended tax form S. 2010 amended tax form Virgin Islands. 2010 amended tax form 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. 2010 amended tax form 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. 2010 amended tax form 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. 2010 amended tax form Withholding on Tip Income Tips you receive during the year for services performed in the United States are subject to U. 2010 amended tax form S. 2010 amended tax form income tax. 2010 amended tax form Include them in taxable income. 2010 amended tax form In addition, tips received while working for one employer, amounting to $20 or more in a month, are subject to graduated withholding. 2010 amended tax form 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. 2010 amended tax form 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. 2010 amended tax form 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. 2010 amended tax form You must agree to timely file an income tax return for the current tax year. 2010 amended tax form Central withholding agreements. 2010 amended tax form   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. 2010 amended tax form Under no circumstances will such a withholding agreement reduce taxes withheld to less than the anticipated amount of income tax liability. 2010 amended tax form   File Form 13930 and the required attachments with the IRS to request a central withholding agreement. 2010 amended tax form Either you or your authorized representative can file the form. 2010 amended tax form It should be sent to the IRS at least 45 days before the tour begins or the event occurs. 2010 amended tax form Exceptions will be considered on a case by case basis. 2010 amended tax form   For more information on the CWA program, go to www. 2010 amended tax form irs. 2010 amended tax form gov/Individuals/International-Taxpayers/Central-Withholding-Agreements. 2010 amended tax form Final payment exemption. 2010 amended tax form   Your final payment of compensation during the tax year for independent personal services may be entirely or partly exempt from withholding. 2010 amended tax form This exemption is available only once during your tax year and applies to a maximum of $5,000 of compensation. 2010 amended tax form To obtain this exemption, you or your agent must give the following statements and information to the Commissioner or his delegate. 2010 amended tax form 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. 2010 amended tax form Each statement must be signed by the withholding agent and verified by a declaration that it is made under penalties of perjury. 2010 amended tax form 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. 2010 amended tax form This statement must also be signed by the withholding agent and verified by a declaration that it is made under penalties of perjury. 2010 amended tax form 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. 2010 amended tax form 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. 2010 amended tax form The amount of your outstanding tax liabilities, if any, including interest and penalties, from the current tax year or prior tax periods. 2010 amended tax form 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. 2010 amended tax form 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. 2010 amended tax form   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. 2010 amended tax form Ordinary and necessary business expenses can be taken into account if proven to the satisfaction of the Commissioner or his delegate. 2010 amended tax form   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. 2010 amended tax form 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. 2010 amended tax form 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). 2010 amended tax form 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. 2010 amended tax form S. 2010 amended tax form national and are not a resident of Canada, Mexico, or South Korea. 2010 amended tax form For purposes of 30% withholding, the exemption is prorated at $10. 2010 amended tax form 82 a day in 2014 for the period that labor or personal services are performed in the United States. 2010 amended tax form 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. 2010 amended tax form Example. 2010 amended tax form Eric Johannsen, who is a resident of Country X worked under a contract with a U. 2010 amended tax form S. 2010 amended tax form firm (not as an employee) in the United States for 100 days during 2014 before returning to his country. 2010 amended tax form He earned $6,000 for the services performed (not considered wages) in the United States. 2010 amended tax form Eric is married and has three dependent children. 2010 amended tax form His wife is not employed and has no income subject to U. 2010 amended tax form S. 2010 amended tax form tax. 2010 amended tax form 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. 2010 amended tax form 82), and withholding at 30% is applied against the balance. 2010 amended tax form Thus, $1,475. 2010 amended tax form 40 in tax is withheld from Eric's earnings (30% of $4,918 ($6,000 − $1,082). 2010 amended tax form U. 2010 amended tax form S. 2010 amended tax form nationals or residents of Canada, Mexico, or South Korea. 2010 amended tax form   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. 2010 amended tax form However, if you are a U. 2010 amended tax form S. 2010 amended tax form national or a resident of Canada or Mexico, you are allowed the same personal exemptions as U. 2010 amended tax form S. 2010 amended tax form citizens. 2010 amended tax form For the 30% (or lower treaty) rate withholding, you can take $10. 2010 amended tax form 82 per day for each allowable exemption in 2014. 2010 amended tax form 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. 2010 amended tax form However, the additional exemptions for your spouse and children must be further prorated as explained in chapter 5 under Exemptions . 2010 amended tax form Students and business apprentices from India. 2010 amended tax form   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. 2010 amended tax form S. 2010 amended tax form taxpayer's 2014 return. 2010 amended tax form 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. 2010 amended tax form S. 2010 amended tax form citizens. 2010 amended tax form For the 30% (or lower treaty rate) withholding on compensation for independent personal services performed in the United States, you are allowed $10. 2010 amended tax form 82 per day for each allowable exemption in 2014. 2010 amended tax form Refund of Taxes Withheld in Error Multi-level marketing. 2010 amended tax form   If you are a distributor for a multi-level marketing company who had taxes withheld in error, file a U. 2010 amended tax form S. 2010 amended tax form 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. 2010 amended tax form You must also attach to the U. 2010 amended tax form S. 2010 amended tax form income tax return or claim for refund supporting information that includes, but is not limited to, the following items. 2010 amended tax form A copy of your Form W-2, Form 1042-S, or Form 1099 to prove the amount of taxes withheld. 2010 amended tax form A statement explaining why income reported on your Form W-2, Form 1042-S, or Form 1099 is not subject to U. 2010 amended tax form S. 2010 amended tax form taxation. 2010 amended tax form A statement listing all the dates you entered and left the United States during the taxable year. 2010 amended tax form 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. 2010 amended tax form 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. 2010 amended tax form 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. 2010 amended tax form Any further relevant document or record supporting your claim that the taxes were withheld in error. 2010 amended tax form 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. 2010 amended tax form It also includes 85% of social security benefits paid to nonresident aliens. 2010 amended tax form Refund of taxes withheld in error on social security benefits paid to resident aliens. 2010 amended tax form   Social security benefits paid to a lawful permanent resident (green card holder) are not subject to 30% withholding. 2010 amended tax form For U. 2010 amended tax form S. 2010 amended tax form 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. 2010 amended tax form See Green Card Test in chapter 1. 2010 amended tax form 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. 2010 amended tax form SSA will refund taxes erroneously withheld if the refund can be processed during the same calendar year in which the tax was withheld. 2010 amended tax form 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. 2010 amended tax form You must also attach the following to your Form 1040 or 1040A. 2010 amended tax form A copy of Form SSA-1042S, Social Security Benefit Statement. 2010 amended tax form A copy of the “green card. 2010 amended tax form ” 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. 2010 amended tax form S. 2010 amended tax form lawful permanent resident and my green card has been neither revoked nor administratively or judicially determined to have been abandoned. 2010 amended tax form I am filing a U. 2010 amended tax form S. 2010 amended tax form income tax return for the tax year as a resident alien reporting all of my worldwide income. 2010 amended tax form 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. 2010 amended tax form Other income not subject to withholding of 30% (or lower treaty) rate. 2010 amended tax form   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. 2010 amended tax form Income (other than compensation) that is effectively connected with your U. 2010 amended tax form S. 2010 amended tax form trade or business. 2010 amended tax form Income from real property that you choose to treat as effectively connected with a U. 2010 amended tax form S. 2010 amended tax form trade or business. 2010 amended tax form See Income From Real Property in chapter 4 for details about this choice. 2010 amended tax form   Special rules for withholding on partnership income, scholarships, and fellowships are explained next. 2010 amended tax form Tax Withheld on Partnership Income If you are a foreign partner in a U. 2010 amended tax form S. 2010 amended tax form or foreign partnership, the partnership will withhold tax on your share of effectively connected taxable income (ECTI) from the partnership. 2010 amended tax form You may be able to reduce your ECTI subject to withholding by certain partner-level deductions. 2010 amended tax form Generally, you must use Form 8804-C for this purpose. 2010 amended tax form See the Instructions for Form 8804-C for more information. 2010 amended tax form 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. 2010 amended tax form 6% for 2014). 2010 amended tax form 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. 2010 amended tax form Long-term capital gain is an example of a particular type of income to which the highest tax rate applies. 2010 amended tax form Claim the tax withheld as a credit on your 2014 Form 1040NR. 2010 amended tax form The partnership will give you a statement on Form 8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax, showing the tax withheld. 2010 amended tax form A partnership that is publicly traded will withhold tax on your actual distributions of effectively connected income. 2010 amended tax form In this case the partnership will give you a statement on Form 1042-S, Foreign Person's U. 2010 amended tax form S. 2010 amended tax form Source Income Subject to Withholding. 2010 amended tax form Withholding on Scholarships and Fellowship Grants There is no withholding on a qualified scholarship received by a candidate for a degree. 2010 amended tax form See chapter 3. 2010 amended tax form If you are a nonresident alien student or grantee with an “F,” “J,” “M,” or “Q” visa and you receive a U. 2010 amended tax form S. 2010 amended tax form 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. 2010 amended tax form 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. 2010 amended tax form 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. 2010 amended tax form 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). 2010 amended tax form Use the following instructions instead of the Form W-4 instructions to complete the worksheet. 2010 amended tax form Line A. 2010 amended tax form   Enter the total of the following amounts on line A. 2010 amended tax form Personal exemption. 2010 amended tax form   Include the prorated part of your allowable personal exemption. 2010 amended tax form 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. 2010 amended tax form 82). 2010 amended tax form Expenses. 2010 amended tax form   Include expenses that will be deductible on your return. 2010 amended tax form 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. 2010 amended tax form They also include business expenses, moving expenses, and the IRA deduction discussed under Deductions in chapter 5. 2010 amended tax form Nontaxable grant or scholarship. 2010 amended tax form   Include the part of your grant or scholarship that is not taxable under U. 2010 amended tax form S. 2010 amended tax form law or under a tax treaty. 2010 amended tax form Line B. 2010 amended tax form   Enter -0- unless the following paragraph applies to you. 2010 amended tax form   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. 2010 amended tax form The standard deduction amount for 2013 is $6,100. 2010 amended tax form Lines C and D. 2010 amended tax form   Enter -0- on both lines unless the following paragraphs apply to you. 2010 amended tax form   If you are a resident of Canada, Mexico, South Korea, or a U. 2010 amended tax form S. 2010 amended tax form national, an additional daily exemption amount may be allowed for your spouse and each of your dependents. 2010 amended tax form   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. 2010 amended tax form S. 2010 amended tax form taxpayer's 2014 return. 2010 amended tax form 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. 2010 amended tax form S. 2010 amended tax form citizens. 2010 amended tax form   Enter any additional amount for your spouse on line C. 2010 amended tax form Enter any additional amount for your dependents on line D. 2010 amended tax form Lines E, F, and G. 2010 amended tax form   No entries should be made on lines E, F, and G. 2010 amended tax form Line H. 2010 amended tax form   Add the amounts on lines A through D and enter the total on line H. 2010 amended tax form Form W-4. 2010 amended tax form   Complete lines 1 through 4 of Form W-4. 2010 amended tax form Sign and date the form and give it with the Personal Allowances Worksheet to your withholding agent. 2010 amended tax form   If you file a Form W-4 to reduce or eliminate the withholding on your scholarship or grant, you must file an annual U. 2010 amended tax form S. 2010 amended tax form income tax return to be allowed the exemptions and deductions you claimed on that form. 2010 amended tax form 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. 2010 amended tax form S. 2010 amended tax form income tax return for the previous year. 2010 amended tax form 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. 2010 amended tax form S. 2010 amended tax form income tax return when required. 2010 amended tax form 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. 2010 amended tax form 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. 2010 amended tax form 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. 2010 amended tax form Use this form to prepare your annual U. 2010 amended tax form S. 2010 amended tax form income tax return. 2010 amended tax form 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. 2010 amended tax form Generally, you do this by filing either Form W-8BEN or Form 8233 with the withholding agent. 2010 amended tax form File Form W-8BEN for income that is not personal services income. 2010 amended tax form File Form 8233 for personal services income as discussed next. 2010 amended tax form Employees and independent contractors. 2010 amended tax form   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. 2010 amended tax form   Even if you submit Form 8233, the withholding agent may have to withhold tax from your income. 2010 amended tax form This is because the factors on which the treaty exemption is based may not be determinable until after the close of the tax year. 2010 amended tax form 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. 2010 amended tax form Students, teachers, and researchers. 2010 amended tax form   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. 2010 amended tax form For treaties not listed in the appendices, attach a statement in a format similar to those for other treaties. 2010 amended tax form   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. 2010 amended tax form Special events and promotions. 2010 amended tax form   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. 2010 amended tax form Form 13930 is used to request a reduction in withholding. 2010 amended tax form Withholding may be required even if the income may be exempt from taxation by provisions of a tax treaty. 2010 amended tax form 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. 2010 amended tax form You will be required to pay U. 2010 amended tax form S. 2010 amended tax form tax, at the time of your departure from the United States, on any income for which you incorrectly claimed a treaty exemption. 2010 amended tax form For more details on treaty provisions that apply to compensation, see Publication 901. 2010 amended tax form Tax Withheld on Real Property Sales If you are a nonresident alien and you dispose of a U. 2010 amended tax form S. 2010 amended tax form real property interest, the transferee (buyer) of the property generally must withhold a tax equal to 10% of the amount realized on the disposition. 2010 amended tax form 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. 2010 amended tax form S. 2010 amended tax form real property interest by the shareholder is subject to withholding at 35%. 2010 amended tax form Withholding is also required on certain distributions and other transactions by domestic or foreign corporations, partnerships, trusts, and estates. 2010 amended tax form These rules are covered in Publication 515. 2010 amended tax form For information on the tax treatment of dispositions of U. 2010 amended tax form S. 2010 amended tax form real property interests, see Real Property Gain or Loss in chapter 4. 2010 amended tax form If you are a partner in a domestic partnership, and the partnership disposes of a U. 2010 amended tax form S. 2010 amended tax form real property interest at a gain, the partnership will withhold tax on the amount of gain allocable to its foreign partners. 2010 amended tax form 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. 2010 amended tax form S. 2010 amended tax form Source Income Subject to Withholding (in the case of a publicly traded partnership). 2010 amended tax form Withholding is not required in the following situations. 2010 amended tax form The property is acquired by the buyer for use as a residence and the amount realized (sales price) is not more than $300,000. 2010 amended tax form 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. 2010 amended tax form However, this exception does not apply to certain dispositions of substantial amounts of non-publicly traded interests in publicly traded corporations. 2010 amended tax form The property disposed of is an interest in a U. 2010 amended tax form S. 2010 amended tax form 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. 2010 amended tax form S. 2010 amended tax form real property interest. 2010 amended tax form 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. 2010 amended tax form S. 2010 amended tax form taxpayer identification number, and home address. 2010 amended tax form You can give the certification to a qualified substitute. 2010 amended tax form The qualified substitute gives the buyer a statement, under penalties of perjury, that the certification is in the possession of the qualified substitute. 2010 amended tax form 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. 2010 amended tax form The buyer receives a withholding certificate from the Internal Revenue Service. 2010 amended tax form 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. 2010 amended tax form S. 2010 amended tax form tax treaty. 2010 amended tax form The buyer must file a copy of the notice with the Ogden Service Center, P. 2010 amended tax form O. 2010 amended tax form Box 409101, Ogden, UT 84409. 2010 amended tax form You must verify the notice as true and sign it under penalties of perjury. 2010 amended tax form The notice must contain the following information. 2010 amended tax form A statement that the notice is a notice of nonrecognition under regulation section 1. 2010 amended tax form 1445-2(d)(2). 2010 amended tax form Your name, taxpayer identification number, and home address. 2010 amended tax form A statement that you are not required to recognize any gain or loss on the transfer. 2010 amended tax form A brief description of the transfer. 2010 amended tax form A brief summary of the law and facts supporting your claim that recognition of gain or loss is not required. 2010 amended tax form 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. 2010 amended tax form Instead, a withholding certificate (described next) must be obtained. 2010 amended tax form The amount you realize on the transfer of a U. 2010 amended tax form S. 2010 amended tax form real property interest is zero. 2010 amended tax form The property is acquired by the United States, a U. 2010 amended tax form S. 2010 amended tax form state or possession, a political subdivision, or the District of Columbia. 2010 amended tax form The distribution is from a domestically controlled qualified investment entity (QIE) and is treated as a distribution of a U. 2010 amended tax form S. 2010 amended tax form real property interest only because an interest in the entity was disposed of in an applicable wash sale transaction. 2010 amended tax form For the definition of a QIE, see Qualified investment entities under Real Property Gain or Loss, earlier. 2010 amended tax form See Wash sale under Real Property Gain or Loss in chapter 4. 2010 amended tax form 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. 2010 amended tax form This also applies to the qualified substitute's statement under (4). 2010 amended tax form Withholding certificates. 2010 amended tax form   The tax required to be withheld on a disposition can be reduced or eliminated under a withholding certificate issued by the IRS. 2010 amended tax form Either you or the buyer can request a withholding certificate. 2010 amended tax form   A withholding certificate can be issued due to any of the following. 2010 amended tax form 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. 2010 amended tax form All of your realized gain is exempt from U. 2010 amended tax form S. 2010 amended tax form tax. 2010 amended tax form You or the buyer enters into an agreement for the payment of tax providing security for the tax liability. 2010 amended tax form   Get Publication 515 and Form 8288-B for information on procedures to request a withholding certificate. 2010 amended tax form Credit for tax withheld. 2010 amended tax form   The buyer must report and pay over the withheld tax within 20 days after the transfer using Form 8288, U. 2010 amended tax form S. 2010 amended tax form Withholding Tax Return for Dispositions by Foreign Persons of U. 2010 amended tax form S. 2010 amended tax form Real Property Interests. 2010 amended tax form 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. 2010 amended tax form S. 2010 amended tax form Real Property Interests. 2010 amended tax form 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). 2010 amended tax form You must file Copy B with your tax return to take credit for the tax withheld. 2010 amended tax form   A stamped copy of Form 8288-A will not be provided to you if your TIN is not included on that form. 2010 amended tax form The IRS will send you a letter requesting the TIN and providing instructions for how to get a TIN. 2010 amended tax form When you provide the IRS with a TIN, the IRS will provide you with a stamped Copy B of Form 8288-A. 2010 amended tax form 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. 2010 amended tax form Your payments of these taxes contribute to your coverage under the U. 2010 amended tax form S. 2010 amended tax form social security system. 2010 amended tax form Social security coverage provides retirement benefits, survivors and disability benefits, and medical insurance (Medicare) benefits to individuals who meet certain eligibility requirements. 2010 amended tax form 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. 2010 amended tax form All taxable wages are subject to Medicare tax. 2010 amended tax form Your employer deducts these taxes from each wage payment. 2010 amended tax form Your employer must deduct these taxes even if you do not expect to qualify for social security or Medicare benefits. 2010 amended tax form 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. 2010 amended tax form 40. 2010 amended tax form Use the appropriate worksheet in chapter 3 of Publication 505, Tax Withholding and Estimated Tax, to figure your credit. 2010 amended tax form If any one employer deducted more than $7,049. 2010 amended tax form 40, you cannot claim a credit for that amount. 2010 amended tax form Ask your employer to refund the excess. 2010 amended tax form If your employer does not refund the excess, you can file a claim for refund using Form 843. 2010 amended tax form In general, U. 2010 amended tax form S. 2010 amended tax form 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. 2010 amended tax form In limited situations, these taxes apply to wages for services performed outside the United States. 2010 amended tax form Your employer should be able to tell you if social security and Medicare taxes apply to your wages. 2010 amended tax form You cannot make voluntary payments if no taxes are due. 2010 amended tax form Additional Medicare Tax. 2010 amended tax form   Beginning in 2013, in addition to the Medicare tax, a 0. 2010 amended tax form 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. 2010 amended tax form   There are no special rules for nonresident aliens for purposes of Additional Medicare Tax. 2010 amended tax form 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. 2010 amended tax form   Your employer is responsible for withholding the 0. 2010 amended tax form 9% Additional Medicare Tax on Medicare wages or RRTA compensation it pays to you in excess of $200,000 in the calendar year. 2010 amended tax form 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. 2010 amended tax form   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). 2010 amended tax form    See Form 8959, Additional Medicare Tax, and the Instructions for Form 8959 to determine whether you are required to pay Additional Medicare Tax. 2010 amended tax form For more information on Additional Medicare Tax, go to IRS. 2010 amended tax form gov and enter “Additional Medicare Tax” in the search box. 2010 amended tax form   Self-employed individuals may also be required to pay Additional Medicare Tax. 2010 amended tax form See Self-Employment Tax , later. 2010 amended tax form 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. 2010 amended tax form This means that there will be no withholding of social security or Medicare taxes from the pay you receive for these services. 2010 amended tax form These types of services are very limited, and generally include only on-campus work, practical training, and economic hardship employment. 2010 amended tax form 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. 2010 amended tax form 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. 2010 amended tax form 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. 2010 amended tax form In some cases, a student admitted to the United States in “F-1,” “M-1,” or “J-1” status is granted permission to work. 2010 amended tax form Social security and Medicare taxes are not withheld from pay for the work unless the student is considered a resident alien. 2010 amended tax form 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. 2010 amended tax form The U. 2010 amended tax form S. 2010 amended tax form Citizenship and Immigration Services (USCIS) permits on-campus work for students in “F-1” status if it does not displace a U. 2010 amended tax form S. 2010 amended tax form resident. 2010 amended tax form On-campus work means work performed on the school's premises. 2010 amended tax form On-campus work includes work performed at an off-campus location that is educationally affiliated with the school. 2010 amended tax form 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. 2010 amended tax form Social security and Medicare taxes are not withheld from pay for this work unless the student is considered a resident alien. 2010 amended tax form 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. 2010 amended tax form Exchange Visitors Exchange visitors are temporarily admitted to the United States under section 101(a)(15)(J) of the Immigration and Nationality Act. 2010 amended tax form 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. 2010 amended tax form 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. 2010 amended tax form 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. 2010 amended tax form The employer must be the petitioner through whom the alien obtained the “Q” visa. 2010 amended tax form Social security and Medicare taxes are not withheld from pay for this work unless the alien is considered a resident alien. 2010 amended tax form 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. 2010 amended tax form 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. 2010 amended tax form Attach the following items to Form 843. 2010 amended tax form A copy of your Form W-2 to prove the amount of social security and Medicare taxes withheld. 2010 amended tax form A copy of your visa. 2010 amended tax form Form I-94 (or other documentation showing your dates of arrival or departure). 2010 amended tax form If you have an F-1 visa, documentation showing permission to work in the U. 2010 amended tax form S. 2010 amended tax form If you have a J-1 visa, documentation showing permission to work in the U. 2010 amended tax form S. 2010 amended tax form If you are engaged in optional practical training or employment due to severe economic necessity, documentation showing permission to work in the U. 2010 amended tax form S. 2010 amended tax form 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. 2010 amended tax form 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. 2010 amended tax form 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. 2010 amended tax form File Form 843 (with attachments) with the Department of the Treasury, Internal Revenue Service Center, Ogden, UT 84201-0038. 2010 amended tax form Do not use Form 843 to request a refund of Additional Medicare Tax. 2010 amended tax form 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. 2010 amended tax form 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. 2010 amended tax form S. 2010 amended tax form 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. 2010 amended tax form See the Instructions for Form 1040X. 2010 amended tax form 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. 2010 amended tax form You can find more information about not having tax withheld at www. 2010 amended tax form irs. 2010 amended tax form gov/Individuals/International-Taxpayers/Foreign-Agricultural-Workers. 2010 amended tax form Self-Employment Tax Self-employment tax is the social security and Medicare taxes for individuals who are self-employed. 2010 amended tax form 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. 2010 amended tax form S. 2010 amended tax form social security system. 2010 amended tax form Residents of the U. 2010 amended tax form S. 2010 amended tax form Virgin Islands, Puerto Rico, Guam, the Commonwealth of the Northern Mariana Islands, or American Samoa are considered U. 2010 amended tax form S. 2010 amended tax form residents for this purpose and are subject to the self-employment tax. 2010 amended tax form Resident aliens must pay self-employment tax under the same rules that apply to U. 2010 amended tax form S. 2010 amended tax form citizens. 2010 amended tax form 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. 2010 amended tax form 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. 2010 amended tax form Example. 2010 amended tax form Bill Jones is an author engaged in the business of writing books. 2010 amended tax form Bill had several books published in a foreign country while he was a citizen and resident of that country. 2010 amended tax form During 2013, Bill entered the United States as a resident alien. 2010 amended tax form After becoming a U. 2010 amended tax form S. 2010 amended tax form resident, he continued to receive royalties from his foreign publisher. 2010 amended tax form Bill reports his income and expenses on the cash basis (he reports income on his tax return when received and deducts expenses when paid). 2010 amended tax form Bill's 2013 self-employment income includes the royalties received after he became a U. 2010 amended tax form S. 2010 amended tax form resident even though the books were published while he was a nonresident alien. 2010 amended tax form This royalty income is subject to self-employment tax. 2010 amended tax form Reporting self-employment tax. 2010 amended tax form   Use Schedule SE (Form 1040) to report and figure your self-employment tax. 2010 amended tax form Then enter the tax on Form 1040, line 56, or Form 1040NR, line 54. 2010 amended tax form Attach Schedule SE to Form 1040 or Form 1040NR. 2010 amended tax form Additional Medicare Tax. 2010 amended tax form   Self-employed individuals must pay a 0. 2010 amended tax form 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. 2010 amended tax form   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. 2010 amended tax form 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). 2010 amended tax form   See Form 8959, Additional Medicare Tax, and the Instructions for Form 8959 to determine whether you are required to pay Additional Medicare Tax. 2010 amended tax form For more information on Additional Medicare Tax, go to IRS. 2010 amended tax form gov and enter “Additional Medicare Tax” in the search box. 2010 amended tax form Deduction for employer-equivalent portion of self-employment tax. 2010 amended tax form   If you must pay self-employment tax, you can deduct a portion of the self-employment tax paid in figuring your adjusted gross income. 2010 amended tax form This deduction is figured on Schedule SE (Form 1040). 2010 amended tax form Note. 2010 amended tax form No portion of the Additional Medicare Tax is deductible for self-employment tax. 2010 amended tax form More information. 2010 amended tax form   Get Publication 334, Tax Guide for Small Business, for more information about self-employment tax. 2010 amended tax form 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. 2010 amended tax form These agreements are commonly referred to as totalization agreements. 2010 amended tax form Under these agreements, dual coverage and dual contributions (taxes) for the same work are eliminated. 2010 amended tax form The agreements generally make sure that social security taxes (including self-employment tax) are paid only to one country. 2010 amended tax form Agreements are in effect with the following countries. 2010 amended tax form Australia. 2010 amended tax form Austria. 2010 amended tax form Belgium. 2010 amended tax form Canada. 2010 amended tax form Chile. 2010 amended tax form Czech Republic. 2010 amended tax form Denmark. 2010 amended tax form Finland. 2010 amended tax form France. 2010 amended tax form Germany. 2010 amended tax form Greece. 2010 amended tax form Ireland. 2010 amended tax form Italy. 2010 amended tax form Japan. 2010 amended tax form Korea, South. 2010 amended tax form Luxembourg. 2010 amended tax form The Netherlands. 2010 amended tax form Norway. 2010 amended tax form Poland. 2010 amended tax form Portugal. 2010 amended tax form Spain. 2010 amended tax form Sweden. 2010 amended tax form Switzerland. 2010 amended tax form The United Kingdom. 2010 amended tax form Agreements with other countries are expected to enter into force in the future. 2010 amended tax form Employees. 2010 amended tax form   Generally, under these agreements, you are subject to social security taxes only in the country where you are working. 2010 amended tax form 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. 2010 amended tax form You can get more information on any agreement by contacting the U. 2010 amended tax form S. 2010 amended tax form Social Security Administration at the address given later. 2010 amended tax form If you have access to the Internet, you can get more information at www. 2010 amended tax form socialsecurity. 2010 amended tax form gov/international. 2010 amended tax form   To establish that your pay is subject only to foreign social security taxes and is exempt from U. 2010 amended tax form S. 2010 amended tax form 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. 2010 amended tax form This will usually be the same agency to which you or your employer pays your foreign social security taxes. 2010 amended tax form The foreign agency will be able to tell you what information is needed for them to issue the certificate. 2010 amended tax form Your employer should keep a copy of the certificate because it may be needed to show why you are exempt from U. 2010 amended tax form S. 2010 amended tax form social security taxes. 2010 amended tax form Only wages paid on or after the effective date of the agreement can be exempt from U. 2010 amended tax form S. 2010 amended tax form social security taxes. 2010 amended tax form    Some of the countries with which the United States has agreements will not issue certificates of coverage. 2010 amended tax form In this case, either you or your employer should request a statement that your wages are not covered by the U. 2010 amended tax form S. 2010 amended tax form social security system. 2010 amended tax form Request the statement from the following address. 2010 amended tax form U. 2010 amended tax form S. 2010 amended tax form Social Security Administration Office of International Programs P. 2010 amended tax form O. 2010 amended tax form Box 17741 Baltimore, MD 21235-7741 Self-employed individuals. 2010 amended tax form   Under most agreements, self-employed individuals are covered by the social security system of the country where they reside. 2010 amended tax form However, under some agreements, you may be exempt from U. 2010 amended tax form S. 2010 amended tax form self-employment tax if you temporarily transfer your business activity to or from the United States. 2010 amended tax form   If you believe that your self-employment income is subject only to U. 2010 amended tax form S. 2010 amended tax form self-employment tax and is exempt from foreign social security taxes, request a certificate of coverage from the U. 2010 amended tax form S. 2010 amended tax form Social Security Administration at the address given earlier. 2010 amended tax form This certificate will establish your exemption from foreign social security taxes. 2010 amended tax form   To establish that your self-employment income is subject only to foreign social security taxes and is exempt from U. 2010 amended tax form S. 2010 amended tax form self-employment tax, request a certificate of coverage from the appropriate agency of the foreign country. 2010 amended tax form If the foreign country will not issue the certificate, you should request a statement that your income is not covered by the U. 2010 amended tax form S. 2010 amended tax form social security system. 2010 amended tax form Request it from the U. 2010 amended tax form S. 2010 amended tax form Social Security Administration at the address given earlier. 2010 amended tax form Attach a photocopy of either statement to Form 1040 each year you are exempt. 2010 amended tax form Also print “Exempt, see attached statement” on the line for self-employment tax. 2010 amended tax form Estimated Tax Form 1040-ES (NR) You may have income from which no U. 2010 amended tax form S. 2010 amended tax form income tax is withheld. 2010 amended tax form Or the amount of tax withheld may be less than the income tax you estimate you will owe at the end of the year. 2010 amended tax form If so, you may have to pay estimated tax. 2010 amended tax form 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). 2010 amended tax form 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. 2010 amended tax form Item (2) does not apply if you did not file a 2013 return. 2010 amended tax form A nonresident alien should use Form 1040-ES (NR) to figure and pay estimated tax. 2010 amended tax form If you pay by check, make it payable to the "United States Treasury. 2010 amended tax form " How to estimate your tax for 2014. 2010 amended tax form   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. 2010 amended tax form 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. 2010 amended tax form Figure your estimated tax liability using the Tax Rate Schedule in the 2014 Form 1040-ES (NR) instructions for your filing status. 2010 amended tax form Note. 2010 amended tax form If you expect to be a resident of Puerto Rico during the entire year, use Form 1040-ES or Formulario 1040-ES (PR). 2010 amended tax form When to pay estimated tax. 2010 amended tax form   Make your first estimated tax payment by the due date for filing the previous year's Form 1040NR or Form 1040NR-EZ. 2010 amended tax form If you have wages subject to the same withholding rules that apply to U. 2010 amended tax form S. 2010 amended tax form citizens, you must file Form 1040NR or Form 1040NR-EZ and make your first estimated tax payment by April 15, 2014. 2010 amended tax form 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. 2010 amended tax form   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. 2010 amended tax form 1st installment April 15, 2014 2nd installment June 16, 2014 3rd installment Sept. 2010 amended tax form 15, 2014 4th installment Jan. 2010 amended tax form 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. 2010 amended tax form    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. 2010 amended tax form Fiscal year. 2010 amended tax form   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. 2010 amended tax form If any date falls on a Saturday, Sunday, or legal holiday, use the next day that is not a Saturday, Sunday, or legal holiday. 2010 amended tax form Changes in income, deductions, or exemptions. 2010 amended tax form   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. 2010 amended tax form This can happen if you receive additional income or if any of your deductions are reduced or eliminated. 2010 amended tax form If so, see the instructions for Form 1040-ES (NR) and Publication 505 for information on figuring your estimated tax. 2010 amended tax form Amended estimated tax. 2010 amended tax form   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. 2010 amended tax form To do this, see the instructions for Form 1040-ES (NR) and Publication 505. 2010 amended tax form Penalty for failure to pay estimated income tax. 2010 amended tax form   You will be subject to a penalty for underpayment of installments of estimated tax except in certain situations. 2010 amended tax form These situations are explained on Form 2210, Underpayment of Estimated Tax by Individuals, Estates, and Trusts. 2010 amended tax form Prev  Up  Next   Home   More Online Publications