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

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

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

3. E-File for FREE

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

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

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

2013 Ohio 1040ez Instructions

Free Tax Filing 20121040ez CalculatorAmended Us Individual Income Tax ReturnTax Planning Us 1040Irs Form 1040 Ez InstructionsFile Amended 2012 Tax ReturnFederal Income Tax Ez Form 2011Filing Prior Year Tax Returns1041x2012 1040ezMyfreetaxes De ComFree File Fillable Forms1040 Form 2012File Tax 1040ez Free OnlineMilitary Tax QuestionsFile Previous Years Tax Returns2009 Tax Form10 40 EzTax 1040ezState Taxes Free FileH & R Block Free1040ez Mailing AddressTurbo Tax AmendmentState Tax FileH&r Block Taxcut 2011Compare Tax Software2011 Tax TablesIrs 2012 Tax Forms 1040ezFree Fillable FormsTax Act 2011 Free DownloadIrs Form 1040ezFile Taxes Online For FreeWhere To Get 2011 Tax FormsHelp Me File 1040ezElectronic File 1040ezTax Table For 1040ez FormW4 Ez FormHow To Fill Out A 1040x Tax Amendment FormTax Amendment FormHow To Do State Taxes For Free

2013 Ohio 1040ez Instructions

2013 ohio 1040ez instructions Index A Activities not for profit, Hobby Expenses Adjustments to gross income Armed forces reservists' travel expenses, Armed Forces reservists traveling more than 100 miles from home. 2013 ohio 1040ez instructions Performing artists, Performing Artists State or local government officials paid on fee basis, Officials Paid on a Fee Basis Unlawful discrimination claims, Unlawful discrimination claims. 2013 ohio 1040ez instructions Administrative fees IRA trustees, Trustee's Administrative Fees for IRA Adoption expenses, Adoption Expenses Amortizable bond premium, Amortizable Premium on Taxable Bonds, More information. 2013 ohio 1040ez instructions Appraisal fees, Appraisal Fees Armed forces Military uniforms, Military uniforms. 2013 ohio 1040ez instructions Reservists, travel expenses, Armed Forces reservists traveling more than 100 miles from home. 2013 ohio 1040ez instructions Assistance (see Tax help) B Bad debts, Business Bad Debt Bank accounts Check-writing fees, Check-Writing Fees on Personal Account Losses on deposits, Loss on Deposits Bonds Amortizable premium, Amortizable Premium on Taxable Bonds Breach of contract Damages, Damages for Breach of Employment Contract Bribes, List of Nondeductible Expenses Burial expenses, List of Nondeductible Expenses Business expenses (see Employee business expenses) Business gifts, Gift expenses. 2013 ohio 1040ez instructions C Campaign contributions, Lobbying and political activities. 2013 ohio 1040ez instructions , Political Contributions Campaign expenses, Campaign Expenses Capital expenditures, Capital Expenses Casualty losses, Casualty and Theft Losses, Casualty and Theft Losses of Income-Producing Property Cell phones, Depreciation on Computers Chambers of Commerce dues, Lobbying and political activities. 2013 ohio 1040ez instructions Check-writing fees, Check-Writing Fees on Personal Account Claim of right repayments, Repayments Under Claim of Right Clerical help, deductibility of, Clerical Help and Office Rent Clothes Protective, Protective clothing. 2013 ohio 1040ez instructions Work, Work Clothes and Uniforms Club dues, Club Dues Commissions, Commissions Commuting expenses, Commuting Expenses Computers Depreciation, Depreciation on Computers, Depreciation on Home Computer, Excess Deductions of an Estate Convenience fees, Credit or Debit Card Convenience Fees Criminal prosecutions Travel expenses for federal staff, Federal crime investigation and prosecution. 2013 ohio 1040ez instructions D Damages Breach of employment contract, Damages for Breach of Employment Contract Deposits Losses on, Loss on Deposits Depreciation Computers, Depreciation on Computers, Depreciation on Home Computer, Excess Deductions of an Estate Disabilities, persons with Work-related expenses, Impairment-Related Work Expenses Dividends Fees to collect, Fees To Collect Interest and Dividends Service charges on reinvestment plans, Service Charges on Dividend Reinvestment Plans Dues, Dues to Chambers of Commerce and Professional Societies (see also Expenses) (see also Fees) Chambers of Commerce, Dues to Chambers of Commerce and Professional Societies Club, Club Dues Lobbying, Dues used for lobbying. 2013 ohio 1040ez instructions Professional societies, Dues to Chambers of Commerce and Professional Societies Union, Union Dues and Expenses E Education, Educator Expenses, Education Expenses During Unemployment Education expenses, Work-Related Education, More information. 2013 ohio 1040ez instructions Employee business expenses Form 2106 and Form 2106-EZ, Form 2106 and Form 2106-EZ. 2013 ohio 1040ez instructions Performing artists, Performing Artists Unreimbursed, Unreimbursed Employee Expenses Employment Agency fees, Employment and outplacement agency fees. 2013 ohio 1040ez instructions Breach of contract, Damages for Breach of Employment Contract Entertainers and musicians (see Performing artists) Entertainment expenses, Meals and entertainment. 2013 ohio 1040ez instructions Estates Federal estate tax, Federal Estate Tax on Income in Respect of a Decedent Expenses, Dues to Chambers of Commerce and Professional Societies, Education Expenses During Unemployment (see also Dues) (see also Fees) Adoption, Adoption Expenses Campaign, Campaign Expenses Capital, Capital Expenses Commuting, Commuting Expenses Education Work-related, Work-Related Education Educator, Educator Expenses Qualified, Qualified expenses. 2013 ohio 1040ez instructions Educator Expenses, Eligible educator. 2013 ohio 1040ez instructions Employee business (see Employee business expenses) Entertainment, Meals and entertainment. 2013 ohio 1040ez instructions Funeral and burial, List of Nondeductible Expenses Gifts, Travel, Transportation, Meals, Entertainment, Gifts, and Local Lodging, Gift expenses. 2013 ohio 1040ez instructions Health spa, Health Spa Expenses Hobby, Hobby Expenses Home office, Home Office Impairment-related, Impairment-Related Work Expenses Investment, Investment Fees and Expenses, Investment-Related Seminars Job search, Job Search Expenses Legal (see Legal expenses) Local lodging, Travel, Transportation, Meals, Entertainment, Gifts, and Local Lodging Meals, Meals and entertainment. 2013 ohio 1040ez instructions , Lunches With Co-workers Meals and entertainment, Travel, Transportation, Meals, Entertainment, Gifts, and Local Lodging Nondeductible, Nondeductible Expenses Over limit, educator, Educator expenses over limit. 2013 ohio 1040ez instructions Personal, Nondeductible Expenses Production of income, Other Expenses Professional promotion, Professional Reputation Tax-exempt income, Tax-Exempt Income Expenses Travel and transportation, Travel, Transportation, Meals, Entertainment, Gifts, and Local Lodging Travel as education, Travel as education. 2013 ohio 1040ez instructions F Federal estate tax, Federal Estate Tax on Income in Respect of a Decedent Fees, Dues to Chambers of Commerce and Professional Societies (see also Dues) (see also Expenses) Appraisal, Appraisal Fees Check-writing, Check-Writing Fees on Personal Account Employment and outplacement agency, Employment and outplacement agency fees. 2013 ohio 1040ez instructions Investment, Fees To Collect Interest and Dividends, Investment Fees and Expenses IRA trustee, Trustee's Administrative Fees for IRA Legal (see Legal expenses) License, Licenses and Regulatory Fees Professional accreditation, Professional Accreditation Fees Fines, Fines or Penalties Form 2106 Employee business expenses, Form 2106 and Form 2106-EZ. 2013 ohio 1040ez instructions Form 2106-EZ Employee business expenses, Form 2106 and Form 2106-EZ. 2013 ohio 1040ez instructions Form 4562 Depreciation and amortization, Reporting your depreciation deduction. 2013 ohio 1040ez instructions , Depreciation. 2013 ohio 1040ez instructions , Computer used in a home office. 2013 ohio 1040ez instructions Free tax services, Free help with your tax return. 2013 ohio 1040ez instructions Funeral expenses, List of Nondeductible Expenses G Gambling winnings and losses, Gambling Losses Up to the Amount of Gambling Winnings Government employees Federal criminal investigation and prosecution travel expenses, Federal crime investigation and prosecution. 2013 ohio 1040ez instructions State or local government officials paid on fee basis, Officials Paid on a Fee Basis H Health spa, Health Spa Expenses Help (see Tax help) Hobbies, Hobby Expenses Home Security system, Home Security System Telephone service, Residential Telephone Service Home office Computers, Computer used in a home office. 2013 ohio 1040ez instructions Expenses, Home Office Principal place of business, Principal place of business. 2013 ohio 1040ez instructions Travel and transportation expenses, Home office. 2013 ohio 1040ez instructions I Impairment-related work expenses, Impairment-Related Work Expenses Income aid payment, Repayment of Income Aid Payment Income in respect of decedent Estate tax, Federal Estate Tax on Income in Respect of a Decedent Individual retirement arrangements (IRAs) Trustees' fees, Trustee's Administrative Fees for IRA Insurance Business liability, Business Liability Insurance Life insurance, Life Insurance Premiums Malpractice, Unreimbursed Employee Expenses Personal disability, List of Nondeductible Expenses Interest income Fees to collect, Fees To Collect Interest and Dividends Investments Annuity, unrecovered investment in, Unrecovered Investment in Annuity Deposits, losses on, Loss on Deposits Fees and expenses, Investment Fees and Expenses Seminars, Investment-Related Seminars Itemized deductions Deductions not subject to 2% limit, Deductions Not Subject to the 2% Limit Deductions subject to 2% limit, Introduction, Deductions Subject to the 2% Limit How to report, How To Report J Job search, Job Search Expenses, Travel and transportation expenses. 2013 ohio 1040ez instructions K Kickbacks, List of Nondeductible Expenses L Legal expenses Job-related, Legal Fees Personal, Personal Legal Expenses Political campaigns, Legal fees. 2013 ohio 1040ez instructions Production of income, Legal Expenses Unlawful discrimination claims, Legal Expenses Licenses Fees, Licenses and Regulatory Fees Life insurance, Life Insurance Premiums Lobbying, Lobbying and political activities. 2013 ohio 1040ez instructions , Lobbying Expenses, Exceptions. 2013 ohio 1040ez instructions Local transportation, Local transportation expenses. 2013 ohio 1040ez instructions Losses Casualties and thefts, Casualty and Theft Losses, Casualty and Theft Losses of Income-Producing Property Deposits, Loss on Deposits Gambling, Gambling Losses Up to the Amount of Gambling Winnings IRA, Loss on IRA Mislaid cash or property, Lost or Mislaid Cash or Property Partnership, Loss From Other Activities From Schedule K-1 (Form 1065-B), Box 2 Roth IRA, Loss on IRA M Mail carriers, rural, Rural Mail Carriers' Vehicle Expenses Malpractice insurance, Unreimbursed Employee Expenses Meal and lodging expenses, Meals and entertainment. 2013 ohio 1040ez instructions Lunches with coworkers, Lunches With Co-workers Working late, Meals While Working Late Medical examinations, Unreimbursed Employee Expenses Mileage rate, What's New Missing children, photographs of, Reminders Mutual funds Indirect deductions, Indirect Deductions of Pass-Through Entities N Nondeductible expenses, Nondeductible Expenses, Wristwatches Not-for-profit activities, Hobby Expenses O Occupational taxes, Occupational Taxes Office Home (see Home office) Rent, Clerical Help and Office Rent Outplacement agency fees, Employment and outplacement agency fees. 2013 ohio 1040ez instructions P Partnerships Indirect deductions, Indirect Deductions of Pass-Through Entities Pass-through entities, Indirect Deductions of Pass-Through Entities Passport expense, Unreimbursed Employee Expenses Penalties, Fines or Penalties Performing artists, Performing Artists Work clothes, Work Clothes and Uniforms Personal expenses, Nondeductible Expenses, Wristwatches Political contributions, Lobbying and political activities. 2013 ohio 1040ez instructions , Political Contributions Campaign expenses, Campaign Expenses Ponzi-type investment schemes, Losses From Ponzi-type Investment Schemes Postal workers, Rural Mail Carriers' Vehicle Expenses Production of income expenses, Other Expenses, Loss on IRA Professional accreditation fees, Professional Accreditation Fees Professional journals, Unreimbursed Employee Expenses Professional reputation and marketing, Professional Reputation Professional societies dues, Lobbying and political activities. 2013 ohio 1040ez instructions Prosecution travel expenses, Federal crime investigation and prosecution. 2013 ohio 1040ez instructions Protective clothing, Protective clothing. 2013 ohio 1040ez instructions Publications (see Tax help) R Recordkeeping requirements Computer used for home and business, Depreciation on Computers Deductions, to verify, Introduction Gambling winnings and losses, Gambling Losses Up to the Amount of Gambling Winnings Home office, Home Office Relief fund contributions, Relief Fund Contributions Rent Office, Clerical Help and Office Rent Safe deposit box, Safe Deposit Box Rent Repayments Claim of right, Repayments Under Claim of Right Income, Repayments of Income Income aid payments, Unreimbursed Employee Expenses Social Security benefits, Repayments of Social Security Benefits Reporting requirements Armed Forces reservists, Armed Forces reservists. 2013 ohio 1040ez instructions Computer used in a home office, Computer used in a home office. 2013 ohio 1040ez instructions Depreciation, Depreciation. 2013 ohio 1040ez instructions Form 2106 and Form 2106-EZ, Form 2106 and Form 2106-EZ. 2013 ohio 1040ez instructions Impairment-related work expenses, Impairment-related work expenses. 2013 ohio 1040ez instructions Itemized deductions, How To Report Tax preparation fees, Tax preparation fees. 2013 ohio 1040ez instructions Research expenses, Research Expenses of a College Professor Résumé, Résumé. 2013 ohio 1040ez instructions Rural mail carriers, Rural Mail Carriers' Vehicle Expenses S S corporations Indirect deductions, Indirect Deductions of Pass-Through Entities Safe deposit box, Safe Deposit Box Rent Security systems, home, Home Security System Seminars, investment-related, Investment-Related Seminars Service charges on dividend reinvestment plans, Service Charges on Dividend Reinvestment Plans Social Security repayments, Repayments of Social Security Benefits State or local governments Officials paid on fee basis, Officials Paid on a Fee Basis Stockholders' meeting expenses, Stockholders' Meetings T Tax help, How To Get Tax Help Tax-exempt income expenses, Tax-Exempt Income Expenses Taxes Estate tax, Federal Estate Tax on Income in Respect of a Decedent Occupational, Occupational Taxes Telephones Cell phone, Depreciation on Computers Residential service, Residential Telephone Service Theft losses, Casualty and Theft Losses, Casualty and Theft Losses of Income-Producing Property Tools, Tools Used in Your Work Travel and transportation expenses, Local lodging. 2013 ohio 1040ez instructions , Additional information. 2013 ohio 1040ez instructions Another individual, paid by taxpayer, Travel Expenses for Another Individual Armed forces reservists, Armed Forces reservists traveling more than 100 miles from home. 2013 ohio 1040ez instructions Commuting, Commuting Expenses Criminal investigations and prosecutions, Federal crime investigation and prosecution. 2013 ohio 1040ez instructions Education, Travel as education. 2013 ohio 1040ez instructions Indefinite work assignments, Indefinite work assignment. 2013 ohio 1040ez instructions Job search, Travel and transportation expenses. 2013 ohio 1040ez instructions Local transportation, Local transportation expenses. 2013 ohio 1040ez instructions Research, Research Expenses of a College Professor Temporary work assignments, Temporary work assignment. 2013 ohio 1040ez instructions Trustees IRA administrative fees, Trustee's Administrative Fees for IRA TTY/TDD information, How To Get Tax Help U Unemployment and education expenses, Education Expenses During Unemployment Unemployment benefit fund contributions, Voluntary Unemployment Benefit Fund Contributions Uniforms, military, Military uniforms. 2013 ohio 1040ez instructions Union dues, Union Dues and Expenses Unreimbursed employee expenses, Unreimbursed Employee Expenses, Military uniforms. 2013 ohio 1040ez instructions W Wagering winnings and losses, Gambling Losses Up to the Amount of Gambling Winnings Work Clothes and uniforms, Work Clothes and Uniforms Impairment-related expenses, Impairment-Related Work Expenses Supplies, Unreimbursed Employee Expenses Tools, Unreimbursed Employee Expenses, Tools Used in Your Work Travel and transportation expenses, Travel, Transportation, Meals, Entertainment, Gifts, and Local Lodging Wristwatches, List of Nondeductible Expenses, Wristwatches Prev  Up     Home   More Online Publications

Topic 602 - Child and Dependent Care Credit

You may be able to claim the child and dependent care credit if you paid work-related expenses for the care of a qualifying individual. The credit is generally a percentage of the amount of work-related expenses you paid to a care provider for the care of a qualifying individual. The percentage depends on your adjusted gross income. Work-related expenses qualifying for the credit are those paid for the care of a qualifying individual to enable you to work or actively look for work.

Expenses are paid for the care of a qualifying individual if the primary function is to assure the individual's well-being and protection. In general, amounts paid for services outside your household qualify for the credit if the care is provided for (i) a qualifying individual who is your qualifying child under age 13 or (ii) a qualifying individual who regularly spends at least 8 hours each day in your household.

The total expenses that may be used to calculate the credit are capped at $3,000 (for one qualifying individual) or at $6,000 (for two or more qualifying individuals). The dollar limits may differ depending on the tax year in question. The expenses qualifying for the computation of the credit must be reduced by the amount of any dependent care benefits provided by your employer that you exclude from gross income. In general, you can exclude up to $5,000 for dependent care benefits received from your employer. Also, generally, the expenses claimed may not exceed the lesser of your earned income or your spouse’s earned income. A special rule applies if your spouse is a full-time student or incapable of self-care. For additional information, refer to Publication 503, Child and Dependent Care Expenses.

For purposes of the child and dependent care credit, a qualifying individual is:

  1. Your dependent qualifying child who is under age 13 when the care is provided,
  2. Your spouse who is physically or mentally incapable of self-care and who has the same principal place of abode as you for more than half of the year, or
  3. Your dependent who is physically or mentally incapable of self-care, and who has the same principal place of abode as you for more than half of the year. For this purpose, whether an individual is your dependent is determined without regard to the individual's gross income, whether the individual files a joint return, or whether you are a dependent of another taxpayer.

An individual is physically or mentally incapable of self-care if, as a result of a physical or mental defect, the individual is incapable of caring for his or her hygiene or nutritional needs, or requires the full-time attention of another person for the individual's own safety or the safety of others.

For more information on who is a dependent or a qualifying child, refer to Publication 501, Exemptions, Standard Deduction, and Filing Information.

A noncustodial parent may not treat a child as a qualifying individual for purposes of the credit, even if the noncustodial parent may claim an exemption for the child. For more information on divorced or separated parents or parents who live apart at all times during the last six months of the year, refer to the topic Child of Divorced or Separated Parents or Parents Living Apart in Publication 503, Child and Dependent Care Expenses.

If a person is a qualifying individual for only a part of the tax year, only those expenses paid during that part of the year are included in calculating the credit.

In addition to paying for the care of a qualifying individual, you must meet all of the following conditions to claim the credit:

  1. Your payment must be made to a care provider who is not your spouse, the parent of your child who is your qualifying individual, your child under age 19, or a dependent of you or your spouse.
  2. You must file a joint return if you are married.
  3. You must provide the taxpayer identification number (usually the social security number) of each qualifying individual on the return on which you claim the credit.
  4. You must report the name, address, and taxpayer identification number (either the social security number, or the employer identification number) of the care provider on your return. If the care provider is a tax-exempt organization, you need only report the name and address on your return. You can use Form W-10 (PDF), Dependent Care Provider's Identification and Certification, to request this information from the care provider. If you do not provide information regarding the care provider, you may still be eligible for the credit if you can show that you exercised due diligence in attempting to provide the required information.

If you qualify for the credit, complete Form 2441 (PDF) and Form 1040 (PDF) or Form 1040A (PDF). If you received dependent care benefits from your employer (this amount should be shown on your Form W-2 (PDF), you must complete Part III of Form 2441. You cannot claim the child and dependent care credit if you use Form 1040EZ (PDF).

If you pay a provider to care for your dependent or spouse in your home, you may be a household employer. If you are a household employer, you may have to withhold and pay social security and Medicare taxes and pay federal unemployment tax. For more information, refer to Publication 926, Household Employer's Tax Guide, or Topic 756.

Page Last Reviewed or Updated: December 12, 2013

The 2013 Ohio 1040ez Instructions

2013 ohio 1040ez instructions 2. 2013 ohio 1040ez instructions   Possession Source Income Table of Contents Types of IncomeCompensation for Labor or Personal Services Investment Income Sales or Other Dispositions of Property Scholarships, Fellowships, Grants, Prizes, and Awards Effectively Connected Income In order to determine where to file your return and which form(s) you need to complete, you must determine the source of each item of income you received during the tax year. 2013 ohio 1040ez instructions Income you received from sources within, or that was effectively connected with the conduct of a trade or business within, the relevant possession must be identified separately from U. 2013 ohio 1040ez instructions S. 2013 ohio 1040ez instructions or foreign source income. 2013 ohio 1040ez instructions This chapter discusses the rules for determining if the source of your income is from: American Samoa, The Commonwealth of the Northern Mariana Islands (CNMI), The Commonwealth of Puerto Rico (Puerto Rico), Guam, or The U. 2013 ohio 1040ez instructions S. 2013 ohio 1040ez instructions Virgin Islands (USVI). 2013 ohio 1040ez instructions Generally, the same rules that apply for determining U. 2013 ohio 1040ez instructions S. 2013 ohio 1040ez instructions source income also apply for determining possession source income. 2013 ohio 1040ez instructions However, there are some important exceptions to these rules. 2013 ohio 1040ez instructions Both the general rules and the exceptions are discussed in this chapter. 2013 ohio 1040ez instructions U. 2013 ohio 1040ez instructions S. 2013 ohio 1040ez instructions income rule. 2013 ohio 1040ez instructions   This rule states that income is not possession source income if, under the rules of Internal Revenue Code sections 861–865, it is treated as income: From sources within the United States, or Effectively connected with the conduct of a trade or business within the United States. 2013 ohio 1040ez instructions Table 2-1 shows the general rules for determining whether income is from sources within the United States. 2013 ohio 1040ez instructions Table 2-1. 2013 ohio 1040ez instructions General Rules for Determining U. 2013 ohio 1040ez instructions S. 2013 ohio 1040ez instructions Source of Income Item of Income Factor Determining Source Salaries, wages, and other compensation for labor or personal services Where labor or services performed Pensions Contributions: Where services were performed that earned the pension Investment earnings: Where pension trust is located Interest Residence of payer Dividends Where corporation created or organized Rents Location of property Royalties:   Natural resources Location of property Patents, copyrights, etc. 2013 ohio 1040ez instructions Where property is used Sale of business inventory—purchased Where sold Sale of business inventory—produced Allocation if produced and sold in different locations Sale of real property Location of property Sale of personal property Seller's tax home (but see Special Rules for Gains From Dispositions of Certain Property , later, for exceptions) Sale of natural resources Allocation based on fair market value of product at export terminal. 2013 ohio 1040ez instructions For more information, see Regulations section 1. 2013 ohio 1040ez instructions 863-1(b). 2013 ohio 1040ez instructions Types of Income This section looks at the most common types of income received by individuals, and the rules for determining the source of the income. 2013 ohio 1040ez instructions Generally, the same rules shown in Table 2-1 are used to determine if you have possession source income. 2013 ohio 1040ez instructions Compensation for Labor or Personal Services Income from labor or personal services includes wages, salaries, commissions, fees, per diem allowances, employee allowances and bonuses, and fringe benefits. 2013 ohio 1040ez instructions It also includes income earned by sole proprietors and general partners from providing personal services in the course of their trade or business. 2013 ohio 1040ez instructions Services performed wholly within a relevant possession. 2013 ohio 1040ez instructions   Generally, all pay you receive for services performed in a relevant possession is considered to be from sources within that possession. 2013 ohio 1040ez instructions However, there is an exception for income earned as a member of the U. 2013 ohio 1040ez instructions S. 2013 ohio 1040ez instructions Armed Forces or a civilian spouse. 2013 ohio 1040ez instructions U. 2013 ohio 1040ez instructions S. 2013 ohio 1040ez instructions Armed Forces. 2013 ohio 1040ez instructions   If you are a bona fide resident of a relevant possession, your military service pay will be sourced in that possession even if you perform the services in the United States or another possession. 2013 ohio 1040ez instructions However, if you are not a bona fide resident of a possession, your military service pay will be income from the  United States even if you perform services in a possession. 2013 ohio 1040ez instructions Civilian spouse of active duty member of the U. 2013 ohio 1040ez instructions S. 2013 ohio 1040ez instructions Armed Forces. 2013 ohio 1040ez instructions   If you are a bona fide resident of a U. 2013 ohio 1040ez instructions S. 2013 ohio 1040ez instructions possession and choose to keep that possession as your tax residence under MSRRA when relocating with your servicemember spouse under military orders, the source of income for your labor or personal services is considered to be that possession. 2013 ohio 1040ez instructions Likewise, if your tax residence is in one of the 50 states or the District of Columbia before relocating and you choose to keep it as your tax residence, the source of income for services performed in any of the U. 2013 ohio 1040ez instructions S. 2013 ohio 1040ez instructions possessions is considered to be the United States and, specifically, your state of residence or the District of Columbia. 2013 ohio 1040ez instructions Services performed partly inside and partly outside a relevant possession. 2013 ohio 1040ez instructions   If you are an employee and receive compensation for labor or personal services performed both inside and outside the relevant possession, special rules apply in determining the source of the compensation. 2013 ohio 1040ez instructions Compensation (other than certain fringe benefits) is sourced on a time basis. 2013 ohio 1040ez instructions Certain fringe benefits (such as housing and education) are sourced on a geographical basis. 2013 ohio 1040ez instructions   Or, you may be permitted to use an alternative basis to determine the source of compensation. 2013 ohio 1040ez instructions See Alternative basis , later. 2013 ohio 1040ez instructions   If you are self-employed, determine the source of your income for labor or personal services from self-employment on the basis that most correctly reflects the proper source of that income under the facts and circumstances of your particular case. 2013 ohio 1040ez instructions In many cases, the facts and circumstances will call for an apportionment on a time basis as explained next. 2013 ohio 1040ez instructions Time basis. 2013 ohio 1040ez instructions   Use a time basis to figure your compensation for labor or personal services from the relevant possession (other than the fringe benefits discussed later). 2013 ohio 1040ez instructions Do this by multiplying your total compensation (other than the fringe benefits discussed later) by the following fraction:   Number of days you performed  services in the relevant  possession during the year     Total number of days you  performed services during the year           You can use a unit of time less than a day in the above fraction, if appropriate. 2013 ohio 1040ez instructions The time period for which the income is made does not have to be a year. 2013 ohio 1040ez instructions Instead, you can use another distinct, separate, and continuous time period if you can establish to the satisfaction of the IRS that this other period is more appropriate. 2013 ohio 1040ez instructions Example. 2013 ohio 1040ez instructions In 2013, you worked in your employer's office in the United States for 60 days and in the Puerto Rico office for 180 days, earning a total of $80,000 for the year. 2013 ohio 1040ez instructions Your Puerto Rico source income is $60,000, figured as follows. 2013 ohio 1040ez instructions       180 days 240 days × $80,000 = $60,000                 Multi-year compensation. 2013 ohio 1040ez instructions   The source of multi-year compensation is generally determined on a time basis over the period to which the compensation is attributable. 2013 ohio 1040ez instructions Multi-year compensation is compensation that is included in your income in 1 tax year but is attributable to a period that includes 2 or more tax years. 2013 ohio 1040ez instructions You determine the period to which the income is attributable based on the facts and circumstances of your case. 2013 ohio 1040ez instructions For more information on multi-year compensation, see Treasury Decision (T. 2013 ohio 1040ez instructions D. 2013 ohio 1040ez instructions ) 9212 and Regulations section 1. 2013 ohio 1040ez instructions 861-4, 2005-35 I. 2013 ohio 1040ez instructions R. 2013 ohio 1040ez instructions B. 2013 ohio 1040ez instructions 429, available at www. 2013 ohio 1040ez instructions irs. 2013 ohio 1040ez instructions gov/irb/2005-35_IRB/ar14. 2013 ohio 1040ez instructions html. 2013 ohio 1040ez instructions Certain fringe benefits sourced on a geographical basis. 2013 ohio 1040ez instructions   If you received any of the following fringe benefits as compensation for labor or services performed as an employee partly inside and partly outside a relevant possession, you must source that income on a geographical basis. 2013 ohio 1040ez instructions Housing. 2013 ohio 1040ez instructions Education. 2013 ohio 1040ez instructions Local transportation. 2013 ohio 1040ez instructions Tax reimbursement. 2013 ohio 1040ez instructions Hazardous or hardship duty pay. 2013 ohio 1040ez instructions Moving expense reimbursement. 2013 ohio 1040ez instructions For information on determining the source of the fringe benefits listed above, see Regulations section 1. 2013 ohio 1040ez instructions 861-4. 2013 ohio 1040ez instructions Alternative basis. 2013 ohio 1040ez instructions   You can determine the source of your compensation under an alternative basis if you establish to the satisfaction of the IRS that, under the facts and circumstances of your case, the alternative basis more properly determines the source of your income than the time or geographical basis. 2013 ohio 1040ez instructions If you use an alternative basis, you must keep (and have available for inspection) records to document why the alternative basis more properly determines the source of your income. 2013 ohio 1040ez instructions De minimis exception. 2013 ohio 1040ez instructions   There is an exception to the rule for determining the source of income earned in a possession. 2013 ohio 1040ez instructions Generally, you will not have income from a possession if during a tax year you: Are a U. 2013 ohio 1040ez instructions S. 2013 ohio 1040ez instructions citizen or resident, Are not a bona fide resident of that possession, Are not employed by or under contract with an individual, partnership, or corporation that is engaged in a trade or business in that possession, Temporarily perform services in that possession for 90 days or less, and Earned $3,000 or less from such services. 2013 ohio 1040ez instructions This exception began with income earned during your 2008 tax year. 2013 ohio 1040ez instructions Pensions. 2013 ohio 1040ez instructions   Generally, pension income has two components: contributions to the pension plan and the earnings accrued from investing those contributions. 2013 ohio 1040ez instructions The contribution portion is sourced according to where services were performed that earned the pension. 2013 ohio 1040ez instructions The investment earnings portion is sourced according to the location of the pension trust. 2013 ohio 1040ez instructions Example. 2013 ohio 1040ez instructions You are a U. 2013 ohio 1040ez instructions S. 2013 ohio 1040ez instructions citizen who worked in Puerto Rico for a U. 2013 ohio 1040ez instructions S. 2013 ohio 1040ez instructions company. 2013 ohio 1040ez instructions All services were performed in Puerto Rico. 2013 ohio 1040ez instructions Upon retirement you remained in Puerto Rico and began receiving your pension from the U. 2013 ohio 1040ez instructions S. 2013 ohio 1040ez instructions pension trust of your employer. 2013 ohio 1040ez instructions Distributions from the U. 2013 ohio 1040ez instructions S. 2013 ohio 1040ez instructions pension trust must be allocated between (1) contributions, which are Puerto Rico source income, and (2) investment earnings, which are U. 2013 ohio 1040ez instructions S. 2013 ohio 1040ez instructions source income. 2013 ohio 1040ez instructions Investment Income This category includes such income as interest, dividends, rents, and royalties. 2013 ohio 1040ez instructions Interest income. 2013 ohio 1040ez instructions   The source of interest income is generally determined by the residence of the payer. 2013 ohio 1040ez instructions Interest paid by corporations created or organized in a relevant possession (possession corporation) or by individuals who are bona fide residents of a relevant possession is considered income from sources within that possession. 2013 ohio 1040ez instructions   However, there is an exception to this rule if you are a bona fide resident of a relevant possession, receive interest from a corporation created or organized in that possession, and are a shareholder of that corporation who owns, directly or indirectly, at least 10% of the total voting stock of the corporation. 2013 ohio 1040ez instructions See Regulations section 1. 2013 ohio 1040ez instructions 937-2(i) for more information. 2013 ohio 1040ez instructions Dividends. 2013 ohio 1040ez instructions   Generally, dividends paid by a corporation created or organized in a relevant possession will be considered income from sources within that possession. 2013 ohio 1040ez instructions There are additional rules for bona fide residents of a relevant possession who receive dividend income from possession corporations, and who own, directly or indirectly, at least 10% of the voting stock of the corporation. 2013 ohio 1040ez instructions For more information, see Regulations section 1. 2013 ohio 1040ez instructions 937-2(g). 2013 ohio 1040ez instructions Rental income. 2013 ohio 1040ez instructions   Rents from property located in a relevant possession are treated as income from sources within that possession. 2013 ohio 1040ez instructions Royalties. 2013 ohio 1040ez instructions   Royalties from natural resources located in a relevant possession are considered income from sources within that possession. 2013 ohio 1040ez instructions   Also considered possession source income are royalties received for the use of, or for the privilege of using, in a relevant possession, patents, copyrights, secret processes and formulas, goodwill, trademarks, trade brands, franchises, and other like property. 2013 ohio 1040ez instructions Sales or Other Dispositions of Property The source rules for sales or other dispositions of property are varied. 2013 ohio 1040ez instructions The most common situations are discussed below. 2013 ohio 1040ez instructions Real property. 2013 ohio 1040ez instructions   Real property includes land and buildings, and generally anything built on, growing on, or attached to land. 2013 ohio 1040ez instructions The location of the property generally determines the source of income from the sale. 2013 ohio 1040ez instructions For example, if you are a bona fide resident of Guam and sell your home that is located in Guam, the gain on the sale is sourced in Guam. 2013 ohio 1040ez instructions If, however, the home you sold was located in the United States, the gain is U. 2013 ohio 1040ez instructions S. 2013 ohio 1040ez instructions source income. 2013 ohio 1040ez instructions Personal property. 2013 ohio 1040ez instructions   The term “personal property” refers to property (such as machinery, equipment, or furniture) that is not real property. 2013 ohio 1040ez instructions Generally, gain (or loss) from the sale or other disposition is sourced according to the seller's tax home. 2013 ohio 1040ez instructions If personal property is sold by a bona fide resident of a relevant possession, the gain (or loss) from the sale is treated as sourced within that possession. 2013 ohio 1040ez instructions   This rule does not apply to the sale of inventory, intangible property, depreciable personal property, or property sold through a foreign office or fixed place of business. 2013 ohio 1040ez instructions The rules applying to sales of inventory are discussed below. 2013 ohio 1040ez instructions For information on sales of the other types of property mentioned, see Internal Revenue Code section 865. 2013 ohio 1040ez instructions Inventory. 2013 ohio 1040ez instructions   Your inventory is personal property that is stock in trade or that is held primarily for sale to customers in the ordinary course of your trade or business. 2013 ohio 1040ez instructions The source of income from the sale of inventory depends on whether the inventory was purchased or produced. 2013 ohio 1040ez instructions Purchased. 2013 ohio 1040ez instructions   Income from the sale of inventory that you purchased is sourced where you sell the property. 2013 ohio 1040ez instructions Generally, this is where title to the property passes to the buyer. 2013 ohio 1040ez instructions Produced. 2013 ohio 1040ez instructions   Income from the sale of inventory that you produced in a relevant possession and sold outside that possession (or vice versa) is sourced based on an allocation. 2013 ohio 1040ez instructions For information on making the allocation, see Regulations section 1. 2013 ohio 1040ez instructions 863-3(f). 2013 ohio 1040ez instructions Special Rules for Gains From Dispositions of Certain Property There are special rules for gains from dispositions of certain investment property (for example, stocks, bonds, debt instruments, diamonds, and gold) owned by a U. 2013 ohio 1040ez instructions S. 2013 ohio 1040ez instructions citizen or resident alien prior to becoming a bona fide resident of a possession. 2013 ohio 1040ez instructions You are subject to these special rules if you meet both of the following conditions. 2013 ohio 1040ez instructions For the tax year for which the source of the gain must be determined, you are a bona fide resident of the relevant possession. 2013 ohio 1040ez instructions For any of the 10 years preceding that year, you were a citizen or resident alien of the United States (other than a bona fide resident of the relevant possession). 2013 ohio 1040ez instructions If you meet these conditions, gains from the disposition of this property will not be treated as income from sources within the relevant possession for purposes of the Internal Revenue Code. 2013 ohio 1040ez instructions Accordingly, bona fide residents of American Samoa and Puerto Rico, for example, may not exclude the gain on their U. 2013 ohio 1040ez instructions S. 2013 ohio 1040ez instructions tax return. 2013 ohio 1040ez instructions (See chapter 3 for additional filing information. 2013 ohio 1040ez instructions ) With respect to the CNMI, Guam, and the USVI, the gain from the disposition of this property will not meet the requirements for certain tax rules that may allow bona fide residents of those possessions to reduce or obtain a rebate of taxes on income from sources within the relevant possessions. 2013 ohio 1040ez instructions These rules apply to dispositions after April 11, 2005. 2013 ohio 1040ez instructions For details, see Regulations section 1. 2013 ohio 1040ez instructions 937-2(f)(1) and Examples 1 and 2 of section 1. 2013 ohio 1040ez instructions 937-2(k). 2013 ohio 1040ez instructions Example 1. 2013 ohio 1040ez instructions In 2007, Cheryl Jones, a U. 2013 ohio 1040ez instructions S. 2013 ohio 1040ez instructions citizen, lived in the United States and paid $1,000 for 100 shares of stock in the Rose Corporation, a U. 2013 ohio 1040ez instructions S. 2013 ohio 1040ez instructions corporation listed on the New York Stock Exchange. 2013 ohio 1040ez instructions On March 1, 2010, she moved to Puerto Rico and changed her tax home to Puerto Rico on the same date. 2013 ohio 1040ez instructions Cheryl satisfied the presence test in 2010 and, under the year-of-move exception, she was considered a bona fide resident of Puerto Rico for the rest of 2010. 2013 ohio 1040ez instructions On March 1, 2010, the closing value of Cheryl's stock in the Rose Corporation was $2,000. 2013 ohio 1040ez instructions On January 5, 2013, while still a bona fide resident of Puerto Rico, Cheryl sold all her Rose Corporation stock for $7,000. 2013 ohio 1040ez instructions Under the earlier rules, none of Cheryl's $6,000 gain will be treated as income from sources within Puerto Rico. 2013 ohio 1040ez instructions The source rules discussed in the preceding paragraphs supplement, and may apply in conjunction with, an existing special rule. 2013 ohio 1040ez instructions This existing special rule applies if you are a U. 2013 ohio 1040ez instructions S. 2013 ohio 1040ez instructions citizen or resident alien who becomes a bona fide resident of American Samoa, the CNMI, or Guam, and who has gain from the disposition of certain U. 2013 ohio 1040ez instructions S. 2013 ohio 1040ez instructions assets during the 10-year period beginning when you became a bona fide resident. 2013 ohio 1040ez instructions The gain is U. 2013 ohio 1040ez instructions S. 2013 ohio 1040ez instructions source income that generally is subject to U. 2013 ohio 1040ez instructions S. 2013 ohio 1040ez instructions tax if the property is either (1) located in the United States; (2) stock issued by a U. 2013 ohio 1040ez instructions S. 2013 ohio 1040ez instructions corporation or a debt obligation of a U. 2013 ohio 1040ez instructions S. 2013 ohio 1040ez instructions person or of the United States, a state (or political subdivision), or the District of Columbia; or (3) property that has a basis in whole or in part by reference to property described in (1) or (2). 2013 ohio 1040ez instructions See chapter 3 for filing information. 2013 ohio 1040ez instructions Special election. 2013 ohio 1040ez instructions   For dispositions after April 11, 2005, you can choose to treat the part of gain (or loss) attributable to the time you held the property while a bona fide resident of the relevant possession (the possession holding period) as gain (or loss) from sources within that possession. 2013 ohio 1040ez instructions Make the election by reporting the gain attributable to the possession holding period on your income tax return for the year of disposition. 2013 ohio 1040ez instructions This election overrides both of the special rules discussed earlier. 2013 ohio 1040ez instructions   There are two methods for figuring the gain for the possession holding period, one for marketable securities and another for other types of investment property. 2013 ohio 1040ez instructions Marketable securities. 2013 ohio 1040ez instructions   Marketable securities are those actively traded on an established financial market, such as stock in a publicly held corporation. 2013 ohio 1040ez instructions Under the special election, allocate the gain (or loss) by figuring the appreciation separately for your possession and U. 2013 ohio 1040ez instructions S. 2013 ohio 1040ez instructions holding periods. 2013 ohio 1040ez instructions   Your possession holding period begins on the first day you do not have a tax home outside the relevant possession. 2013 ohio 1040ez instructions The gain (or loss) attributable to the possession holding period is the difference in fair market value of the security at the close of the market on the first and last days of this holding period. 2013 ohio 1040ez instructions This is your gain (or loss) that is treated as being from sources within the relevant possession. 2013 ohio 1040ez instructions If you were a bona fide resident of the relevant possession for more than one continuous period, combine the gains (or losses) from each possession holding period. 2013 ohio 1040ez instructions Example 2. 2013 ohio 1040ez instructions Assume the same facts as in Example 1, except that Cheryl makes the special election to allocate the gain between her U. 2013 ohio 1040ez instructions S. 2013 ohio 1040ez instructions and possession holding periods. 2013 ohio 1040ez instructions Cheryl's possession holding period began March 1, 2010, the date her tax home changed to Puerto Rico. 2013 ohio 1040ez instructions Therefore, the portion of gain attributable to her possession holding period is $5,000 ($7,000 sale price – $2,000 closing value on first day of the possession holding period). 2013 ohio 1040ez instructions By reporting $5,000 of her $6,000 gain as Puerto Rico source income on her 2013 Puerto Rico tax return (and the remainder as non-Puerto Rico source income), Cheryl elects to treat that amount as Puerto Rico source income. 2013 ohio 1040ez instructions Other personal property. 2013 ohio 1040ez instructions   For personal property other than marketable securities, use a time-based allocation. 2013 ohio 1040ez instructions Figure the gain (or loss) attributable to the possession holding period by multiplying your total gain (or loss) by the following fraction. 2013 ohio 1040ez instructions      Number of days in the  possession holding period     Total number of days  in your holding period         The result is your gain (or loss) that is treated as being from sources within the relevant possession. 2013 ohio 1040ez instructions Example 3. 2013 ohio 1040ez instructions In addition to the stock in Rose Corporation, Cheryl acquired a 5% interest in the Alder Partnership on January 1, 2009. 2013 ohio 1040ez instructions On March 1, 2010, when she established bona fide residency in Puerto Rico, her partnership interest was not considered a marketable security. 2013 ohio 1040ez instructions On September 16, 2013, while still a bona fide resident of Puerto Rico, Cheryl sold her interest in Alder Partnership for a $100,000 gain. 2013 ohio 1040ez instructions She had owned the interest for a total of 1,720 days. 2013 ohio 1040ez instructions Cheryl's possession holding period (from March 1, 2010, through September 16, 2013) is 1,296 days. 2013 ohio 1040ez instructions The portion of her gain attributable to Puerto Rico is $75,349 ($100,000 x (1,296 Puerto Rico days ÷ 1,720 total days)). 2013 ohio 1040ez instructions By reporting $75,349 of her $100,000 gain as Puerto Rico source income on her 2013 Puerto Rico tax return (and the remainder as non-Puerto Rico source income), Cheryl elects to treat that amount as Puerto Rico source income. 2013 ohio 1040ez instructions Scholarships, Fellowships, Grants, Prizes, and Awards The source of these types of income is generally the residence of the payer, regardless of who actually disburses the funds. 2013 ohio 1040ez instructions Therefore, in order to be possession source income, the payer must be a resident of the relevant possession, such as an individual who is a bona fide resident or a corporation created or organized in that possession. 2013 ohio 1040ez instructions These rules do not apply to amounts paid as salary or other compensation for services. 2013 ohio 1040ez instructions See Compensation for Labor or Personal Services, earlier in this chapter, for the source rules that apply. 2013 ohio 1040ez instructions Effectively Connected Income In limited circumstances, some kinds of income from sources outside the relevant possession must be treated as effectively connected with a trade or business in that possession. 2013 ohio 1040ez instructions These circumstances are listed below. 2013 ohio 1040ez instructions You have an office or other fixed place of business in the relevant possession to which the income can be attributed. 2013 ohio 1040ez instructions That office or place of business is a material factor in producing the income. 2013 ohio 1040ez instructions The income is produced in the ordinary course of the trade or business carried on through that office or other fixed place of business. 2013 ohio 1040ez instructions An office or other fixed place of business is a material factor if it significantly contributes to, and is an essential economic element in, the earning of the income. 2013 ohio 1040ez instructions The three kinds of income from sources outside the relevant possession to which these rules apply are the following. 2013 ohio 1040ez instructions Rents and royalties for the use of, or for the privilege of using, intangible personal property located outside the relevant possession or from any interest in such property. 2013 ohio 1040ez instructions Included are rents or royalties for the use of, or for the privilege of using, outside the relevant possession, patents, copyrights, secret processes and formulas, goodwill, trademarks, trade brands, franchises, and similar properties if the rents or royalties are from the active conduct of a trade or business in the relevant possession. 2013 ohio 1040ez instructions Dividends or interest from the active conduct of a banking, financing, or similar business in the relevant possession. 2013 ohio 1040ez instructions Income, gain, or loss from the sale or exchange outside the relevant possession, through the office or other fixed place of business in the relevant possession, of: Stock in trade, Property that would be included in inventory if on hand at the end of the tax year, or Property held primarily for sale to customers in the ordinary course of business. 2013 ohio 1040ez instructions Item (3) will not apply if you sold the property for use, consumption, or disposition outside the relevant possession and an office or other fixed place of business in a foreign country was a material factor in the sale. 2013 ohio 1040ez instructions Example. 2013 ohio 1040ez instructions Marcy Jackson is a bona fide resident of American Samoa. 2013 ohio 1040ez instructions Her business, which she conducts from an office in American Samoa, is developing and selling specialized computer software. 2013 ohio 1040ez instructions A software purchaser will frequently pay Marcy an additional amount to install the software on the purchaser's operating system and to ensure that the software is functioning properly. 2013 ohio 1040ez instructions Marcy installs the software at the purchaser's place of business, which may be in American Samoa, in the United States, or in another country. 2013 ohio 1040ez instructions The income from selling the software is effectively connected with the conduct of Marcy's business in American Samoa, even though the product's destination may be outside the possession. 2013 ohio 1040ez instructions However, the compensation she receives for installing the software (personal services) outside of American Samoa is not effectively connected with the conduct of her business in the possession—the income is sourced where she performs the services. 2013 ohio 1040ez instructions Prev  Up  Next   Home   More Online Publications