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Amend 2008 Tax Return Free

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Amend 2008 Tax Return Free

Amend 2008 tax return free Publication 515 - Main Content Table of Contents Withholding of TaxWithholding Agent Withholding and Reporting Obligations Persons Subject to NRA WithholdingIdentifying the Payee Foreign Persons DocumentationBeneficial Owners Foreign Intermediaries and Foreign Flow-Through Entities Standards of Knowledge Presumption Rules Income Subject to NRA WithholdingSource of Income Fixed or Determinable Annual or Periodical Income (FDAP) Withholding on Specific IncomeEffectively Connected Income Income Not Effectively Connected Pay for Personal Services Performed Artists and Athletes (Income Codes 42 and 43) Other Income Foreign Governments and Certain Other Foreign Organizations U. Amend 2008 tax return free S. Amend 2008 tax return free Taxpayer Identification NumbersUnexpected payment. Amend 2008 tax return free Depositing Withheld TaxesWhen Deposits Are Required Adjustment for Overwithholding Returns RequiredJoint owners. Amend 2008 tax return free Electronic reporting. Amend 2008 tax return free Partnership Withholding on Effectively Connected IncomeWho Must Withhold Foreign Partner Publicly Traded Partnerships U. Amend 2008 tax return free S. Amend 2008 tax return free Real Property InterestForeign corporations. Amend 2008 tax return free Domestic corporations. Amend 2008 tax return free U. Amend 2008 tax return free S. Amend 2008 tax return free real property holding corporations. Amend 2008 tax return free Partnerships. Amend 2008 tax return free Trusts and estates. Amend 2008 tax return free Domestically controlled QIE. Amend 2008 tax return free Late filing of certifications or notices. Amend 2008 tax return free Certifications. Amend 2008 tax return free Liability of agent or qualified substitute. Amend 2008 tax return free Reporting and Paying the Tax Withholding Certificates Tax Treaty TablesTable 1 Table 2 Table 3 How To Get Tax HelpLow Income Taxpayer Clinics (LITCs). Amend 2008 tax return free Withholding of Tax In most cases, a foreign person is subject to U. Amend 2008 tax return free S. Amend 2008 tax return free tax on its U. Amend 2008 tax return free S. Amend 2008 tax return free source income. Amend 2008 tax return free Most types of U. Amend 2008 tax return free S. Amend 2008 tax return free source income received by a foreign person are subject to U. Amend 2008 tax return free S. Amend 2008 tax return free tax of 30%. Amend 2008 tax return free A reduced rate, including exemption, may apply if there is a tax treaty between the foreign person's country of residence and the United States. Amend 2008 tax return free The tax is generally withheld (NRA withholding) from the payment made to the foreign person. Amend 2008 tax return free The term “NRA withholding” is used in this publication descriptively to refer to withholding required under sections 1441, 1442, and 1443 of the Internal Revenue Code. Amend 2008 tax return free In most cases, NRA withholding describes the withholding regime that requires withholding on a payment of U. Amend 2008 tax return free S. Amend 2008 tax return free source income. Amend 2008 tax return free Payments to foreign persons, including nonresident alien individuals, foreign entities, and governments, may be subject to NRA withholding. Amend 2008 tax return free NRA withholding does not include withholding under section 1445 of the Code (see U. Amend 2008 tax return free S. Amend 2008 tax return free Real Property Interest, later) or under section 1446 of the Code (see Partnership Withholding on Effectively Connected Income , later). Amend 2008 tax return free A withholding agent (defined next) is the person responsible for withholding on payments made to a foreign person. Amend 2008 tax return free However, a withholding agent that can reliably associate the payment with documentation (discussed later) from a U. Amend 2008 tax return free S. Amend 2008 tax return free person is not required to withhold. Amend 2008 tax return free In addition, a withholding agent may apply a reduced rate of withholding (including an exemption from withholding) if it can reliably associate the payment with documentation from a beneficial owner that is a foreign person entitled to a reduced rate of withholding. Amend 2008 tax return free Withholding Agent You are a withholding agent if you are a U. Amend 2008 tax return free S. Amend 2008 tax return free or foreign person that has control, receipt, custody, disposal, or payment of any item of income of a foreign person that is subject to withholding. Amend 2008 tax return free A withholding agent may be an individual, corporation, partnership, trust, association, nominee (under section 1446 of the Code), or any other entity, including any foreign intermediary, foreign partnership, or U. Amend 2008 tax return free S. Amend 2008 tax return free branch of certain foreign banks and insurance companies. Amend 2008 tax return free You may be a withholding agent even if there is no requirement to withhold from a payment or even if another person has withheld the required amount from the payment. Amend 2008 tax return free Although several persons may be withholding agents for a single payment, the full tax is required to be withheld only once. Amend 2008 tax return free In most cases, the U. Amend 2008 tax return free S. Amend 2008 tax return free person who pays an amount subject to NRA withholding is the person responsible for withholding. Amend 2008 tax return free However, other persons may be required to withhold. Amend 2008 tax return free For example, a payment made by a flow-through entity or nonqualified intermediary that knows, or has reason to know, that the full amount of NRA withholding was not done by the person from which it receives a payment is required to do the appropriate withholding since it also falls within the definition of a withholding agent. Amend 2008 tax return free In addition, withholding must be done by any qualified intermediary, withholding foreign partnership, or withholding foreign trust in accordance with the terms of its withholding agreement, discussed later. Amend 2008 tax return free Liability for tax. Amend 2008 tax return free   As a withholding agent, you are personally liable for any tax required to be withheld. Amend 2008 tax return free This liability is independent of the tax liability of the foreign person to whom the payment is made. Amend 2008 tax return free If you fail to withhold and the foreign payee fails to satisfy its U. Amend 2008 tax return free S. Amend 2008 tax return free tax liability, then both you and the foreign person are liable for tax, as well as interest and any applicable penalties. Amend 2008 tax return free   The applicable tax will be collected only once. Amend 2008 tax return free If the foreign person satisfies its U. Amend 2008 tax return free S. Amend 2008 tax return free tax liability, you are not liable for the tax but remain liable for any interest and penalties for failure to withhold. Amend 2008 tax return free Determination of amount to withhold. Amend 2008 tax return free   You must withhold on the gross amount subject to NRA withholding. Amend 2008 tax return free You cannot reduce the gross amount by any deductions. Amend 2008 tax return free However, see Scholarships and Fellowship Grants and Pay for Personal Services Performed , later, for when a deduction for a personal exemption may be allowed. Amend 2008 tax return free   If the determination of the source of the income or the amount subject to tax depends on facts that are not known at the time of payment, you must withhold an amount sufficient to ensure that at least 30% of the amount subsequently determined to be subject to withholding is withheld. Amend 2008 tax return free In no case, however, should you withhold more than 30% of the total amount paid. Amend 2008 tax return free Or, you may make a reasonable estimate of the amount from U. Amend 2008 tax return free S. Amend 2008 tax return free sources and put a corresponding part of the amount due in escrow until the amount from U. Amend 2008 tax return free S. Amend 2008 tax return free sources can be determined, at which time withholding becomes due. Amend 2008 tax return free When to withhold. Amend 2008 tax return free   Withholding is required at the time you make a payment of an amount subject to withholding. Amend 2008 tax return free A payment is made to a person if that person realizes income, whether or not there is an actual transfer of cash or other property. Amend 2008 tax return free A payment is considered made to a person if it is paid for that person's benefit. Amend 2008 tax return free For example, a payment made to a creditor of a person in satisfaction of that person's debt to the creditor is considered made to the person. Amend 2008 tax return free A payment also is considered made to a person if it is made to that person's agent. Amend 2008 tax return free   A U. Amend 2008 tax return free S. Amend 2008 tax return free partnership should withhold when any distributions that include amounts subject to withholding are made. Amend 2008 tax return free However, if a foreign partner's distributive share of income subject to withholding is not actually distributed, the U. Amend 2008 tax return free S. Amend 2008 tax return free partnership must withhold on the foreign partner's distributive share of the income on the earlier of the date that a Schedule K-1 (Form 1065) is provided or mailed to the partner or the due date for furnishing that schedule. Amend 2008 tax return free If the distributable amount consists of effectively connected income, see Partnership Withholding on Effectively Connected Income , later. Amend 2008 tax return free A U. Amend 2008 tax return free S. Amend 2008 tax return free trust is required to withhold on the amount includible in the gross income of a foreign beneficiary to the extent the trust's distributable net income consists of an amount subject to withholding. Amend 2008 tax return free To the extent a U. Amend 2008 tax return free S. Amend 2008 tax return free trust is required to distribute an amount subject to withholding but does not actually distribute the amount, it must withhold on the foreign beneficiary's allocable share at the time the income is required to be reported on Form 1042-S. Amend 2008 tax return free Withholding and Reporting Obligations You are required to report payments subject to NRA withholding on Form 1042-S and to file a tax return on Form 1042. Amend 2008 tax return free (See Returns Required , later. Amend 2008 tax return free ) An exception from reporting may apply to individuals who are not required to withhold from a payment and who do not make the payment in the course of their trade or business. Amend 2008 tax return free Form 1099 reporting and backup withholding. Amend 2008 tax return free    You also may be responsible as a payer for reporting on Form 1099 payments made to a U. Amend 2008 tax return free S. Amend 2008 tax return free person. Amend 2008 tax return free You must withhold 28% (backup withholding rate) from a reportable payment made to a U. Amend 2008 tax return free S. Amend 2008 tax return free person that is subject to Form 1099 reporting if any of the following apply. Amend 2008 tax return free The U. Amend 2008 tax return free S. Amend 2008 tax return free person has not provided its taxpayer identification number (TIN) in the manner required. Amend 2008 tax return free The IRS notifies you that the TIN furnished by the payee is incorrect. Amend 2008 tax return free There has been a notified payee underreporting. Amend 2008 tax return free There has been a payee certification failure. Amend 2008 tax return free In most cases, a TIN must be provided by a U. Amend 2008 tax return free S. Amend 2008 tax return free non-exempt recipient on Form W-9, Request for Taxpayer Identification Number and Certification. Amend 2008 tax return free A payer files a tax return on Form 945, Annual Return of Withheld Federal Income Tax, for backup withholding. Amend 2008 tax return free You may be required to file Form 1099 and, if appropriate, backup withhold, even if you do not make the payments directly to that U. Amend 2008 tax return free S. Amend 2008 tax return free person. Amend 2008 tax return free For example, you are required to report income paid to a foreign intermediary or flow-through entity that collects for a U. Amend 2008 tax return free S. Amend 2008 tax return free person subject to Form 1099 reporting. Amend 2008 tax return free See Identifying the Payee , later, for more information. Amend 2008 tax return free Also see Section S. Amend 2008 tax return free Special Rules for Reporting Payments Made Through Foreign Intermediaries and Foreign Flow-Through Entities on Form 1099 in the General Instructions for Certain Information Returns. Amend 2008 tax return free Foreign persons who provide Form W-8BEN, Form W-8ECI, or Form W-8EXP (or applicable documentary evidence) are exempt from backup withholding and Form 1099 reporting. Amend 2008 tax return free Wages paid to employees. Amend 2008 tax return free   If you are the employer of a nonresident alien, you generally must withhold taxes at graduated rates. Amend 2008 tax return free See Pay for Personal Services Performed , later. Amend 2008 tax return free Effectively connected income by partnerships. Amend 2008 tax return free   A withholding agent that is a partnership (whether U. Amend 2008 tax return free S. Amend 2008 tax return free or foreign) is also responsible for withholding on its income effectively connected with a U. Amend 2008 tax return free S. Amend 2008 tax return free trade or business that is allocable to foreign partners. Amend 2008 tax return free See Partnership Withholding on Effectively Connected Income , later, for more information. Amend 2008 tax return free U. Amend 2008 tax return free S. Amend 2008 tax return free real property interest. Amend 2008 tax return free   A withholding agent also may be responsible for withholding if a foreign person transfers a U. Amend 2008 tax return free S. Amend 2008 tax return free real property interest to the agent, or if it is a corporation, partnership, trust, or estate that distributes a U. Amend 2008 tax return free S. Amend 2008 tax return free real property interest to a shareholder, partner, or beneficiary that is a foreign person. Amend 2008 tax return free See U. Amend 2008 tax return free S. Amend 2008 tax return free Real Property Interest , later. Amend 2008 tax return free Persons Subject to NRA Withholding NRA withholding applies only to payments made to a payee that is a foreign person. Amend 2008 tax return free It does not apply to payments made to U. Amend 2008 tax return free S. Amend 2008 tax return free persons. Amend 2008 tax return free Usually, you determine the payee's status as a U. Amend 2008 tax return free S. Amend 2008 tax return free or foreign person based on the documentation that person provides. Amend 2008 tax return free See Documentation , later. Amend 2008 tax return free However, if you have received no documentation or you cannot reliably associate all or a part of a payment with documentation, then you must apply certain presumption rules, discussed later. Amend 2008 tax return free Identifying the Payee In most cases, the payee is the person to whom you make the payment, regardless of whether that person is the beneficial owner of the income. Amend 2008 tax return free However, there are situations in which the payee is a person other than the one to whom you actually make a payment. Amend 2008 tax return free U. Amend 2008 tax return free S. Amend 2008 tax return free agent of foreign person. Amend 2008 tax return free   If you make a payment to a U. Amend 2008 tax return free S. Amend 2008 tax return free person and you have actual knowledge that the U. Amend 2008 tax return free S. Amend 2008 tax return free person is receiving the payment as an agent of a foreign person, you must treat the payment as made to the foreign person. Amend 2008 tax return free However, if the U. Amend 2008 tax return free S. Amend 2008 tax return free person is a financial institution, you may treat the institution as the payee provided you have no reason to believe that the institution will not comply with its own obligation to withhold. Amend 2008 tax return free   If the payment is not subject to NRA withholding (for example, gross proceeds from the sales of securities), you must treat the payment as made to a U. Amend 2008 tax return free S. Amend 2008 tax return free person and not as a payment to a foreign person. Amend 2008 tax return free You may be required to report the payment on Form 1099 and, if applicable, backup withhold. Amend 2008 tax return free Disregarded entities. Amend 2008 tax return free   A business entity that is not a corporation and that has a single owner may be disregarded as an entity separate from its owner (a disregarded entity) for federal tax purposes. Amend 2008 tax return free The payee of a payment made to a disregarded entity is the owner of the entity. Amend 2008 tax return free   If the owner of the entity is a foreign person, you must apply NRA withholding unless you can treat the foreign owner as a beneficial owner entitled to a reduced rate of withholding. Amend 2008 tax return free   If the owner is a U. Amend 2008 tax return free S. Amend 2008 tax return free person, you do not apply NRA withholding. Amend 2008 tax return free However, you may be required to report the payment on Form 1099 and, if applicable, backup withhold. Amend 2008 tax return free You may assume that a foreign entity is not a disregarded entity unless you can reliably associate the payment with documentation provided by the owner or you have actual knowledge or reason to know that the foreign entity is a disregarded entity. Amend 2008 tax return free Flow-Through Entities The payees of payments (other than income effectively connected with a U. Amend 2008 tax return free S. Amend 2008 tax return free trade or business) made to a foreign flow-through entity are the owners or beneficiaries of the flow-through entity. Amend 2008 tax return free This rule applies for purposes of NRA withholding and for Form 1099 reporting and backup withholding. Amend 2008 tax return free Income that is, or is deemed to be, effectively connected with the conduct of a U. Amend 2008 tax return free S. Amend 2008 tax return free trade or business of a flow-through entity is treated as paid to the entity. Amend 2008 tax return free All of the following are flow-through entities. Amend 2008 tax return free A foreign partnership (other than a withholding foreign partnership). Amend 2008 tax return free A foreign simple or foreign grantor trust (other than a withholding foreign trust). Amend 2008 tax return free A fiscally transparent entity receiving income for which treaty benefits are claimed. Amend 2008 tax return free See Fiscally transparent entity , later. Amend 2008 tax return free In most cases, you treat a payee as a flow-through entity if it provides you with a Form W-8IMY (see Documentation , later) on which it claims such status. Amend 2008 tax return free You also may be required to treat the entity as a flow-through entity under the presumption rules, discussed later. Amend 2008 tax return free You must determine whether the owners or beneficiaries of a flow-through entity are U. Amend 2008 tax return free S. Amend 2008 tax return free or foreign persons, how much of the payment relates to each owner or beneficiary, and, if the owner or beneficiary is foreign, whether a reduced rate of NRA withholding applies. Amend 2008 tax return free You make these determinations based on the documentation and other information (contained in a withholding statement) that is associated with the flow-through entity's Form W-8IMY. Amend 2008 tax return free If you do not have all of the information that is required to reliably associate a payment with a specific payee, you must apply the presumption rules. Amend 2008 tax return free See Documentation and Presumption Rules , later. Amend 2008 tax return free Withholding foreign partnerships and withholding foreign trusts are not flow-through entities. Amend 2008 tax return free Foreign partnerships. Amend 2008 tax return free    A foreign partnership is any partnership that is not organized under the laws of any state of the United States or the District of Columbia or any partnership that is treated as foreign under the income tax regulations. Amend 2008 tax return free If a foreign partnership is not a withholding foreign partnership, the payees of income are the partners of the partnership, provided the partners are not themselves a flow-through entity or a foreign intermediary. Amend 2008 tax return free However, the payee is the partnership itself if the partnership is claiming treaty benefits on the basis that it is not fiscally transparent and that it meets all the other requirements for claiming treaty benefits. Amend 2008 tax return free If a partner is a foreign flow-through entity or a foreign intermediary, you apply the payee determination rules to that partner to determine the payees. Amend 2008 tax return free Example 1. Amend 2008 tax return free A nonwithholding foreign partnership has three partners: a nonresident alien individual; a foreign corporation; and a U. Amend 2008 tax return free S. Amend 2008 tax return free citizen. Amend 2008 tax return free You make a payment of U. Amend 2008 tax return free S. Amend 2008 tax return free source interest to the partnership. Amend 2008 tax return free It gives you a Form W-8IMY with which it associates Form W-8BEN from the nonresident alien; Form W-8BEN from the foreign corporation; and Form W-9 from the U. Amend 2008 tax return free S. Amend 2008 tax return free citizen. Amend 2008 tax return free The partnership also gives you a complete withholding statement that enables you to associate a part of the interest payment to each partner. Amend 2008 tax return free You must treat all three partners as the payees of the interest payment as if the payment were made directly to them. Amend 2008 tax return free Report the payment to the nonresident alien and the foreign corporation on Forms 1042-S. Amend 2008 tax return free Report the payment to the U. Amend 2008 tax return free S. Amend 2008 tax return free citizen on Form 1099-INT. Amend 2008 tax return free Example 2. Amend 2008 tax return free A nonwithholding foreign partnership has two partners: a foreign corporation and a nonwithholding foreign partnership. Amend 2008 tax return free The second partnership has two partners, both nonresident alien individuals. Amend 2008 tax return free You make a payment of U. Amend 2008 tax return free S. Amend 2008 tax return free source interest to the first partnership. Amend 2008 tax return free It gives you a valid Form W-8IMY with which it associates a Form W-8BEN from the foreign corporation and a Form W-8IMY from the second partnership. Amend 2008 tax return free In addition, Forms W-8BEN from the partners are associated with the Form W-8IMY from the second partnership. Amend 2008 tax return free The Forms W-8IMY from the partnerships have complete withholding statements associated with them. Amend 2008 tax return free Because you can reliably associate a part of the interest payment with the Form W-8BEN provided by the foreign corporation and the Forms W-8BEN provided by the nonresident alien individual partners as a result of the withholding statements, you must treat them as the payees of the interest. Amend 2008 tax return free Example 3. Amend 2008 tax return free You make a payment of U. Amend 2008 tax return free S. Amend 2008 tax return free source dividends to a withholding foreign partnership. Amend 2008 tax return free The partnership has two partners, both foreign corporations. Amend 2008 tax return free You can reliably associate the payment with a valid Form W-8IMY from the partnership on which it represents that it is a withholding foreign partnership. Amend 2008 tax return free You must treat the partnership as the payee of the dividends. Amend 2008 tax return free Foreign simple and grantor trust. Amend 2008 tax return free   A trust is foreign unless it meets both of the following tests. Amend 2008 tax return free A court within the United States is able to exercise primary supervision over the administration of the trust. Amend 2008 tax return free One or more U. Amend 2008 tax return free S. Amend 2008 tax return free persons have the authority to control all substantial decisions of the trust. Amend 2008 tax return free   In most cases, a foreign simple trust is a foreign trust that is required to distribute all of its income annually. Amend 2008 tax return free A foreign grantor trust is a foreign trust that is treated as a grantor trust under sections 671 through 679 of the Code. Amend 2008 tax return free   The payees of a payment made to a foreign simple trust are the beneficiaries of the trust. Amend 2008 tax return free The payees of a payment made to a foreign grantor trust are the owners of the trust. Amend 2008 tax return free However, the payee is the foreign simple or grantor trust itself if the trust is claiming treaty benefits on the basis that it is not fiscally transparent and that it meets all the other requirements for claiming treaty benefits. Amend 2008 tax return free If the beneficiaries or owners are themselves flow-through entities or foreign intermediaries, you apply the payee determination rules to that beneficiary or owner to determine the payees. Amend 2008 tax return free Example. Amend 2008 tax return free A foreign simple trust has three beneficiaries: two nonresident alien individuals and a U. Amend 2008 tax return free S. Amend 2008 tax return free citizen. Amend 2008 tax return free You make a payment of interest to the foreign trust. Amend 2008 tax return free It gives you a Form W-8IMY with which it associates Forms W-8BEN from the nonresident aliens and a Form W-9 from the U. Amend 2008 tax return free S. Amend 2008 tax return free citizen. Amend 2008 tax return free The trust also gives you a complete withholding statement that enables you to associate a part of the interest payment with the forms provided by each beneficiary. Amend 2008 tax return free You must treat all three beneficiaries as the payees of the interest payment as if the payment were made directly to them. Amend 2008 tax return free Report the payment to the nonresident aliens on Forms 1042-S. Amend 2008 tax return free Report the payment to the U. Amend 2008 tax return free S. Amend 2008 tax return free citizen on Form 1099-INT. Amend 2008 tax return free Fiscally transparent entity. Amend 2008 tax return free   If a reduced rate of withholding under an income tax treaty is claimed, a flow-through entity includes any entity in which the interest holder must treat the entity as fiscally transparent. Amend 2008 tax return free The determination of whether an entity is fiscally transparent is made on an item of income basis (that is, the determination is made separately for interest, dividends, royalties, etc. Amend 2008 tax return free ). Amend 2008 tax return free The interest holder in an entity makes the determination by applying the laws of the jurisdiction where the interest holder is organized, incorporated, or otherwise considered a resident. Amend 2008 tax return free An entity is considered to be fiscally transparent for the income to the extent the laws of that jurisdiction require the interest holder to separately take into account on a current basis the interest holder's share of the income, whether or not distributed to the interest holder, and the character and source of the income to the interest holder are determined as if the income was realized directly from the source that paid it to the entity. Amend 2008 tax return free Subject to the standards of knowledge rules discussed later, you generally make the determination that an entity is fiscally transparent based on a Form W-8IMY provided by the entity. Amend 2008 tax return free   The payees of a payment made to a fiscally transparent entity are the interest holders of the entity. Amend 2008 tax return free Example. Amend 2008 tax return free Entity A is a business organization organized under the laws of country X that has an income tax treaty in force with the United States. Amend 2008 tax return free A has two interest holders, B and C. Amend 2008 tax return free B is a corporation organized under the laws of country Y. Amend 2008 tax return free C is a corporation organized under the laws of country Z. Amend 2008 tax return free Both countries Y and Z have an income tax treaty in force with the United States. Amend 2008 tax return free A receives royalty income from U. Amend 2008 tax return free S. Amend 2008 tax return free sources that is not effectively connected with the conduct of a trade or business in the United States. Amend 2008 tax return free For U. Amend 2008 tax return free S. Amend 2008 tax return free income tax purposes, A is treated as a partnership. Amend 2008 tax return free Country X treats A as a partnership and requires the interest holders in A to separately take into account on a current basis their respective shares of the income paid to A even if the income is not distributed. Amend 2008 tax return free The laws of country X provide that the character and source of the income to A's interest holders are determined as if the income was realized directly from the source that paid it to A. Amend 2008 tax return free Accordingly, A is fiscally transparent in its jurisdiction, country X. Amend 2008 tax return free B and C are not fiscally transparent under the laws of their respective countries of incorporation. Amend 2008 tax return free Country Y requires B to separately take into account on a current basis B's share of the income paid to A, and the character and source of the income to B is determined as if the income was realized directly from the source that paid it to A. Amend 2008 tax return free Accordingly, A is fiscally transparent for that income under the laws of country Y, and B is treated as deriving its share of the U. Amend 2008 tax return free S. Amend 2008 tax return free source royalty income for purposes of the U. Amend 2008 tax return free S. Amend 2008 tax return free -Y income tax treaty. Amend 2008 tax return free Country Z, on the other hand, treats A as a corporation and does not require C to take into account its share of A's income on a current basis whether or not distributed. Amend 2008 tax return free Therefore, A is not treated as fiscally transparent under the laws of country Z. Amend 2008 tax return free Accordingly, C is not treated as deriving its share of the U. Amend 2008 tax return free S. Amend 2008 tax return free source royalty income for purposes of the U. Amend 2008 tax return free S. Amend 2008 tax return free -Z income tax treaty. Amend 2008 tax return free Foreign Intermediaries In most cases, if you make payments to a foreign intermediary, the payees are the persons for whom the foreign intermediary collects the payment, such as account holders or customers, not the intermediary itself. Amend 2008 tax return free This rule applies for purposes of NRA withholding and for Form 1099 reporting and backup withholding. Amend 2008 tax return free You may, however, treat a qualified intermediary that has assumed primary withholding responsibility for a payment as the payee, and you are not required to withhold. Amend 2008 tax return free An intermediary is a custodian, broker, nominee, or any other person that acts as an agent for another person. Amend 2008 tax return free A foreign intermediary is either a qualified intermediary or a nonqualified intermediary. Amend 2008 tax return free In most cases, you determine whether an entity is a qualified intermediary or a nonqualified intermediary based on the representations the intermediary makes on Form W-8IMY. Amend 2008 tax return free You must determine whether the customers or account holders of a foreign intermediary are U. Amend 2008 tax return free S. Amend 2008 tax return free or foreign persons and, if the account holder or customer is foreign, whether a reduced rate of NRA withholding applies. Amend 2008 tax return free You make these determinations based on the foreign intermediary's Form W-8IMY and associated information and documentation. Amend 2008 tax return free If you do not have all of the information or documentation that is required to reliably associate a payment with a payee, you must apply the presumption rules. Amend 2008 tax return free See Documentation and Presumption Rules , later. Amend 2008 tax return free Nonqualified intermediary. Amend 2008 tax return free   A nonqualified intermediary (NQI) is any intermediary that is a foreign person and that is not a qualified intermediary. Amend 2008 tax return free The payees of a payment made to an NQI are the customers or account holders on whose behalf the NQI is acting. Amend 2008 tax return free Example. Amend 2008 tax return free You make a payment of interest to a foreign bank that is a nonqualified intermediary. Amend 2008 tax return free The bank gives you a Form W-8IMY and the Forms W-8BEN of two foreign persons, and a Form W-9 from a U. Amend 2008 tax return free S. Amend 2008 tax return free person for whom the bank is collecting the payments. Amend 2008 tax return free The bank also associates with its Form W-8IMY a withholding statement on which it allocates the interest payment to each account holder and provides all other information required to be on the withholding statement. Amend 2008 tax return free The account holders are the payees of the interest payment. Amend 2008 tax return free You should report the part of the interest paid to the two foreign persons on Forms 1042-S and the part paid to the U. Amend 2008 tax return free S. Amend 2008 tax return free person on Form 1099-INT. Amend 2008 tax return free Qualified intermediary. Amend 2008 tax return free   A qualified intermediary (QI) is any foreign intermediary (or foreign branch of a U. Amend 2008 tax return free S. Amend 2008 tax return free intermediary) that has entered into a qualified intermediary withholding agreement (discussed later) with the IRS. Amend 2008 tax return free You may treat a QI as a payee to the extent the QI assumes primary withholding responsibility or primary Form 1099 reporting and backup withholding responsibility for a payment. Amend 2008 tax return free In this situation, the QI is required to withhold the tax. Amend 2008 tax return free You can determine whether a QI has assumed responsibility from the Form W-8IMY provided by the QI. Amend 2008 tax return free   A payment to a QI to the extent it does not assume primary NRA withholding responsibility is considered made to the person on whose behalf the QI acts. Amend 2008 tax return free If a QI does not assume Form 1099 reporting and backup withholding responsibility, you must report on Form 1099 and, if applicable, backup withhold as if you were making the payment directly to the U. Amend 2008 tax return free S. Amend 2008 tax return free person. Amend 2008 tax return free Branches of financial institutions. Amend 2008 tax return free   Branches of financial institutions are not permitted to operate as QIs if they are located outside of countries having approved “know-your-customer” (KYC) rules. Amend 2008 tax return free The countries with approved KYC rules are listed on IRS. Amend 2008 tax return free gov. Amend 2008 tax return free QI withholding agreement. Amend 2008 tax return free   Foreign financial institutions and foreign branches of U. Amend 2008 tax return free S. Amend 2008 tax return free financial institutions can enter into an agreement with the IRS to be a qualified intermediary. Amend 2008 tax return free   A QI is entitled to certain simplified withholding and reporting rules. Amend 2008 tax return free In general, there are three major areas whereby intermediaries with QI status are afforded such simplified treatment. Amend 2008 tax return free   To apply for QI status, complete Form 14345, Qualified Intermediary Application, and Form SS-4, Application for Employer Identification Number. Amend 2008 tax return free These forms, and the procedures required to obtain a QI withholding agreement are available at www. Amend 2008 tax return free irs. Amend 2008 tax return free gov/Businesses/Corporations/Qualified-Intermediaries-(QI). Amend 2008 tax return free Documentation. Amend 2008 tax return free   A QI is not required to forward documentation obtained from foreign account holders to the U. Amend 2008 tax return free S. Amend 2008 tax return free withholding agent from whom the QI receives a payment of U. Amend 2008 tax return free S. Amend 2008 tax return free source income. Amend 2008 tax return free The QI maintains such documentation at its location and provides the U. Amend 2008 tax return free S. Amend 2008 tax return free withholding agent with withholding rate pools. Amend 2008 tax return free A withholding rate pool is a payment of a single type of income that is subject to a single rate of withholding. Amend 2008 tax return free   A QI is required to provide the U. Amend 2008 tax return free S. Amend 2008 tax return free withholding agent with information regarding U. Amend 2008 tax return free S. Amend 2008 tax return free persons subject to Form 1099 information reporting unless the QI assumes the primary obligation to do Form 1099 reporting and backup withholding. Amend 2008 tax return free   If a QI obtains documentary evidence under the “know-your-customer” rules that apply to the QI under local law, and the documentary evidence is of a type specified in an attachment to the QI agreement, the documentary evidence remains valid until there is a change in circumstances or the QI knows the information is incorrect. Amend 2008 tax return free This indefinite validity period rule does not apply to Forms W-8 or to documentary evidence that is not of the type specified in the attachment to the agreement. Amend 2008 tax return free Form 1042-S reporting. Amend 2008 tax return free   A QI is permitted to report payments made to its direct foreign account holders on a pooled basis rather than reporting payments to each direct account holder specifically. Amend 2008 tax return free Pooled basis reporting is not available for payments to certain account holders, such as a nonqualified intermediary or a flow-through entity (discussed earlier). Amend 2008 tax return free Collective refund procedures. Amend 2008 tax return free   A QI may seek a refund on behalf of its direct account holders. Amend 2008 tax return free The direct account holders, therefore, are not required to file returns with the IRS to obtain refunds, but rather may obtain them from the QI. Amend 2008 tax return free U. Amend 2008 tax return free S. Amend 2008 tax return free branches of foreign banks and foreign insurance companies. Amend 2008 tax return free   Special rules apply to a U. Amend 2008 tax return free S. Amend 2008 tax return free branch of a foreign bank subject to Federal Reserve Board supervision or a foreign insurance company subject to state regulatory supervision. Amend 2008 tax return free If you agree to treat the branch as a U. Amend 2008 tax return free S. Amend 2008 tax return free person, you may treat the branch as a U. Amend 2008 tax return free S. Amend 2008 tax return free payee for a payment subject to NRA withholding provided you receive a Form W-8IMY from the U. Amend 2008 tax return free S. Amend 2008 tax return free branch on which the agreement is evidenced. Amend 2008 tax return free If you treat the branch as a U. Amend 2008 tax return free S. Amend 2008 tax return free payee, you are not required to withhold. Amend 2008 tax return free Even though you agree to treat the branch as a U. Amend 2008 tax return free S. Amend 2008 tax return free person, you must report the payment on Form 1042-S. Amend 2008 tax return free   A financial institution organized in a U. Amend 2008 tax return free S. Amend 2008 tax return free possession is treated as a U. Amend 2008 tax return free S. Amend 2008 tax return free branch. Amend 2008 tax return free The special rules discussed in this section apply to a possessions financial institution. Amend 2008 tax return free   If you are paying a U. Amend 2008 tax return free S. Amend 2008 tax return free branch an amount that is not subject to NRA withholding, treat the payment as made to a foreign person, irrespective of any agreement to treat the branch as a U. Amend 2008 tax return free S. Amend 2008 tax return free person for amounts subject to NRA withholding. Amend 2008 tax return free Consequently, amounts not subject to NRA withholding that are paid to a U. Amend 2008 tax return free S. Amend 2008 tax return free branch are not subject to Form 1099 reporting or backup withholding. Amend 2008 tax return free   Alternatively, a U. Amend 2008 tax return free S. Amend 2008 tax return free branch may provide you with a Form W-8IMY with which it associates the documentation of the persons on whose behalf it acts. Amend 2008 tax return free In this situation, the payees are the persons on whose behalf the branch acts provided you can reliably associate the payment with valid documentation from those persons. Amend 2008 tax return free See Nonqualified Intermediaries under  Documentation, later. Amend 2008 tax return free   If the U. Amend 2008 tax return free S. Amend 2008 tax return free branch does not provide you with a Form W-8IMY, then you should treat a payment subject to NRA withholding as made to the foreign person of which the branch is a part and the income as effectively connected with the conduct of a trade or business in the United States. Amend 2008 tax return free Withholding foreign partnership and foreign trust. Amend 2008 tax return free   A withholding foreign partnership (WP) is any foreign partnership that has entered into a WP withholding agreement with the IRS and is acting in that capacity. Amend 2008 tax return free A withholding foreign trust (WT) is a foreign simple or grantor trust that has entered into a WT withholding agreement with the IRS and is acting in that capacity. Amend 2008 tax return free   A WP or WT may act in that capacity only for payments of amounts subject to NRA withholding that are distributed to, or included in the distributive share of, its direct partners, beneficiaries, or owners. Amend 2008 tax return free A WP or WT acting in that capacity must assume NRA withholding responsibility for these amounts. Amend 2008 tax return free You may treat a WP or WT as a payee if it has provided you with documentation (discussed later) that represents that it is acting as a WP or WT for such amounts. Amend 2008 tax return free WP and WT withholding agreements. Amend 2008 tax return free   The WP and WT withholding agreements and the application procedures for the agreements are in Revenue Procedure 2003-64. Amend 2008 tax return free Also see the following items. Amend 2008 tax return free Revenue Procedure 2004-21. Amend 2008 tax return free Revenue Procedure 2005-77. Amend 2008 tax return free Employer identification number (EIN). Amend 2008 tax return free   A completed Form SS-4 must be submitted with the application for being a WP or WT. Amend 2008 tax return free The WP or WT will be assigned a WP-EIN or WT-EIN to be used only when acting in that capacity. Amend 2008 tax return free Documentation. Amend 2008 tax return free   A WP or WT must provide you with a Form W-8IMY that certifies that the WP or WT is acting in that capacity and a written statement identifying the amounts for which it is so acting. Amend 2008 tax return free The statement is not required to contain withholding rate pool information or any information relating to the identity of a direct partner, beneficiary, or owner. Amend 2008 tax return free The Form W-8IMY must contain the WP-EIN or WT-EIN. Amend 2008 tax return free Foreign Persons A payee is subject to NRA withholding only if it is a foreign person. Amend 2008 tax return free A foreign person includes a nonresident alien individual, foreign corporation, foreign partnership, foreign trust, foreign estate, and any other person that is not a U. Amend 2008 tax return free S. Amend 2008 tax return free person. Amend 2008 tax return free It also includes a foreign branch of a U. Amend 2008 tax return free S. Amend 2008 tax return free financial institution if the foreign branch is a qualified intermediary. Amend 2008 tax return free In most cases, the U. Amend 2008 tax return free S. Amend 2008 tax return free branch of a foreign corporation or partnership is treated as a foreign person. Amend 2008 tax return free Nonresident alien. Amend 2008 tax return free   A nonresident alien is an individual who is not a U. Amend 2008 tax return free S. Amend 2008 tax return free citizen or a resident alien. Amend 2008 tax return free A resident of a foreign country under the residence article of an income tax treaty is a nonresident alien individual for purposes of withholding. Amend 2008 tax return free Married to U. Amend 2008 tax return free S. Amend 2008 tax return free citizen or resident alien. Amend 2008 tax return free   Nonresident alien individuals married to U. Amend 2008 tax return free S. Amend 2008 tax return free citizens or resident aliens may choose to be treated as resident aliens for certain income tax purposes. Amend 2008 tax return free However, these individuals are still subject to the NRA withholding rules that apply to nonresident aliens for all income except wages. Amend 2008 tax return free Wages paid to these individuals are subject to graduated withholding. Amend 2008 tax return free See Wages Paid to Employees—Graduated Withholding . Amend 2008 tax return free Resident alien. Amend 2008 tax return free   A resident alien is an individual who is not a citizen or national of the United States and who meets either the green card test or the substantial presence test for the calendar year. Amend 2008 tax return free Green card test. Amend 2008 tax return free An alien is a resident alien if the individual was a lawful permanent resident of the United States at any time during the calendar year. Amend 2008 tax return free This is known as the green card test because these aliens hold immigrant visas (also known as green cards). Amend 2008 tax return free Substantial presence test. Amend 2008 tax return free An alien is considered a resident alien if the individual meets the substantial presence test for the calendar year. Amend 2008 tax return free Under this test, the individual must be physically present in the United States on at least: 31 days during the current calendar year, and 183 days during the current year and the 2 preceding years, counting all the days of physical presence in the current year, but only 1/3 the number of days of presence in the first preceding year, and only 1/6 the number of days in the second preceding year. Amend 2008 tax return free   In most cases, the days the alien is in the United States as a teacher, student, or trainee on an “F,” “J,” “M,” or “Q” visa are not counted. Amend 2008 tax return free This exception is for a limited period of time. Amend 2008 tax return free   For more information on resident and nonresident status, the tests for residence, and the exceptions to them, see Publication 519. Amend 2008 tax return free Note. Amend 2008 tax return free   If your employee is late in notifying you that his or her status changed from nonresident alien to resident alien, you may have to make an adjustment to Form 941 if that employee was exempt from withholding of social security and Medicare taxes as a nonresident alien. Amend 2008 tax return free For more information on making adjustments, see chapter 13 of Publication 15 (Circular E). Amend 2008 tax return free Resident of a U. Amend 2008 tax return free S. Amend 2008 tax return free possession. Amend 2008 tax return free   A bona fide resident of Puerto Rico, the U. Amend 2008 tax return free S. Amend 2008 tax return free Virgin Islands, Guam, the Commonwealth of the Northern Mariana Islands (CNMI), or American Samoa who is not a U. Amend 2008 tax return free S. Amend 2008 tax return free citizen or a U. Amend 2008 tax return free S. Amend 2008 tax return free national is treated as a nonresident alien for the withholding rules explained here. Amend 2008 tax return free A bona fide resident of a possession is someone who: Meets the presence test, Does not have a tax home outside the possession, and Does not have a closer connection to the United States or to a foreign country than to the possession. Amend 2008 tax return free   For more information, see Publication 570, Tax Guide for Individuals With Income From U. Amend 2008 tax return free S. Amend 2008 tax return free Possessions. Amend 2008 tax return free Foreign corporations. Amend 2008 tax return free   A foreign corporation is one that does not fit the definition of a domestic corporation. Amend 2008 tax return free A domestic corporation is one that was created or organized in the United States or under the laws of the United States, any of its states, or the District of Columbia. Amend 2008 tax return free Guam or Northern Mariana Islands corporations. Amend 2008 tax return free   A corporation created or organized in, or under the laws of, Guam or the CNMI is not considered a foreign corporation for the purpose of withholding tax for the tax year if: At all times during the tax year less than 25% in value of the corporation's stock is owned, directly or indirectly, by foreign persons; and At least 20% of the corporation's gross income is derived from sources within Guam or the CNMI for the 3-year period ending with the close of the preceding tax year of the corporation (or the period the corporation has been in existence, if less). Amend 2008 tax return free Note. Amend 2008 tax return free   The provisions discussed below under U. Amend 2008 tax return free S. Amend 2008 tax return free Virgin Islands and American Samoa corporations will apply to Guam or CNMI corporations when an implementing agreement is in effect between the United States and that possession. Amend 2008 tax return free U. Amend 2008 tax return free S. Amend 2008 tax return free Virgin Islands and American Samoa corporations. Amend 2008 tax return free   A corporation created or organized in, or under the laws of, the U. Amend 2008 tax return free S. Amend 2008 tax return free Virgin Islands or American Samoa is not considered a foreign corporation for the purposes of withholding tax for the tax year if: At all times during the tax year less than 25% in value of the corporation's stock is owned, directly or indirectly, by foreign persons, At least 65% of the corporation's gross income is effectively connected with the conduct of a trade or business in the U. Amend 2008 tax return free S. Amend 2008 tax return free Virgin Islands, American Samoa, Guam, the CNMI, or the United States for the 3-year period ending with the close of the tax year of the corporation (or the period the corporation or any predecessor has been in existence, if less), and No substantial part of the income of the corporation is used, directly or indirectly, to satisfy obligations to a person who is not a bona fide resident of the U. Amend 2008 tax return free S. Amend 2008 tax return free Virgin Islands, American Samoa, Guam, the CNMI, or the United States. Amend 2008 tax return free Foreign private foundations. Amend 2008 tax return free   A private foundation that was created or organized under the laws of a foreign country is a foreign private foundation. Amend 2008 tax return free Gross investment income from sources within the United States paid to a qualified foreign private foundation is subject to NRA withholding at a 4% rate (unless exempted by a treaty) rather than the ordinary statutory 30% rate. Amend 2008 tax return free Other foreign organizations, associations, and charitable institutions. Amend 2008 tax return free   An organization may be exempt from income tax under section 501(a) of the Internal Revenue Code even if it was formed under foreign law. Amend 2008 tax return free In most cases, you do not have to withhold tax on payments of income to these foreign tax-exempt organizations unless the IRS has determined that they are foreign private foundations. Amend 2008 tax return free   Payments to these organizations, however, must be reported on Form 1042-S, even though no tax is withheld. Amend 2008 tax return free   You must withhold tax on the unrelated business income (as described in Publication 598, Tax on Unrelated Business Income of Exempt Organizations) of foreign tax-exempt organizations in the same way that you would withhold tax on similar income of nonexempt organizations. Amend 2008 tax return free U. Amend 2008 tax return free S. Amend 2008 tax return free branches of foreign persons. Amend 2008 tax return free   In most cases, a payment to a U. Amend 2008 tax return free S. Amend 2008 tax return free branch of a foreign person is a payment made to the foreign person. Amend 2008 tax return free However, you may treat payments to U. Amend 2008 tax return free S. Amend 2008 tax return free branches of foreign banks and foreign insurance companies (discussed earlier) that are subject to U. Amend 2008 tax return free S. Amend 2008 tax return free regulatory supervision as payments made to a U. Amend 2008 tax return free S. Amend 2008 tax return free person, if you and the U. Amend 2008 tax return free S. Amend 2008 tax return free branch have agreed to do so, and if their agreement is evidenced by a withholding certificate, Form W-8IMY. Amend 2008 tax return free For this purpose, a financial institution organized under the laws of a U. Amend 2008 tax return free S. Amend 2008 tax return free possession is treated as a U. Amend 2008 tax return free S. Amend 2008 tax return free branch. Amend 2008 tax return free Documentation In most cases, you must withhold 30% from the gross amount paid to a foreign payee unless you can reliably associate the payment with valid documentation that establishes either of the following. Amend 2008 tax return free The payee is a U. Amend 2008 tax return free S. Amend 2008 tax return free person. Amend 2008 tax return free The payee is a foreign person that is the beneficial owner of the income and is entitled to a reduced rate of withholding. Amend 2008 tax return free In most cases, you must get the documentation before you make the payment. Amend 2008 tax return free The documentation is not valid if you know, or have reason to know, that it is unreliable or incorrect. Amend 2008 tax return free See Standards of Knowledge , later. Amend 2008 tax return free If you cannot reliably associate a payment with valid documentation, you must use the presumption rules discussed later. Amend 2008 tax return free For example, if you do not have documentation or you cannot determine the part of a payment that is allocable to specific documentation, you must use the presumption rules. Amend 2008 tax return free The specific types of documentation are discussed in this section. Amend 2008 tax return free However, see Withholding on Specific Income , later, as well as the instructions to the particular forms. Amend 2008 tax return free As the withholding agent, you also may want to see the Instructions for the Requester of Forms W-8BEN, W-8ECI, W-8EXP, and W-8IMY. Amend 2008 tax return free Section 1446 withholding. Amend 2008 tax return free   Under section 1446 of the Code, a partnership must withhold tax on its effectively connected income allocable to a foreign partner. Amend 2008 tax return free In most cases, a partnership determines if a partner is a foreign partner and the partner's tax classification based on the withholding certificate provided by the partner. Amend 2008 tax return free This is the same documentation that is filed for NRA withholding, but may require additional information as discussed under each of the forms in this section. Amend 2008 tax return free Joint owners. Amend 2008 tax return free    If you make a payment to joint owners, you need to get documentation from each owner. Amend 2008 tax return free Form W-9. Amend 2008 tax return free   In most cases, you can treat the payee as a U. Amend 2008 tax return free S. Amend 2008 tax return free person if the payee gives you a Form W-9. Amend 2008 tax return free The Form W-9 can be used only by a U. Amend 2008 tax return free S. Amend 2008 tax return free person and must contain the payee's taxpayer identification number (TIN). Amend 2008 tax return free If there is more than one owner, you may treat the total amount as paid to a U. Amend 2008 tax return free S. Amend 2008 tax return free person if any one of the owners gives you a Form W-9. Amend 2008 tax return free See U. Amend 2008 tax return free S. Amend 2008 tax return free Taxpayer Identification Numbers , later. Amend 2008 tax return free U. Amend 2008 tax return free S. Amend 2008 tax return free persons are not subject to NRA withholding, but may be subject to Form 1099 reporting and backup withholding. Amend 2008 tax return free Form W-8. Amend 2008 tax return free   In most cases, a foreign payee of the income should give you a form in the Form W-8 series. Amend 2008 tax return free Until further notice, you can rely upon Forms W-8 that contain a P. Amend 2008 tax return free O. Amend 2008 tax return free box as a permanent residence address provided you do not know, or have reason to know, that the person providing the form is a U. Amend 2008 tax return free S. Amend 2008 tax return free person and that a street address is available. Amend 2008 tax return free You may rely on Forms W-8 for which there is a U. Amend 2008 tax return free S. Amend 2008 tax return free mailing address provided you received the form prior to December 31, 2001. Amend 2008 tax return free   If certain requirements are met, the foreign person can give you documentary evidence, rather than a Form W-8. Amend 2008 tax return free You can rely on documentary evidence in lieu of a Form W-8 for a payment made in a U. Amend 2008 tax return free S. Amend 2008 tax return free possession. Amend 2008 tax return free Other documentation. Amend 2008 tax return free   Other documentation may be required to claim an exemption from, or a reduced rate of, withholding on pay for personal services. Amend 2008 tax return free The nonresident alien individual may have to give you a Form W-4 or a Form 8233, Exemption From Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual. Amend 2008 tax return free These forms are discussed in Pay for Personal Services Performed under Withholding on Specific Income. Amend 2008 tax return free Beneficial Owners If all the appropriate requirements have been established on a Form W-8BEN, W-8ECI, W-8EXP or, if applicable, on documentary evidence, you may treat the payee as a foreign beneficial owner. Amend 2008 tax return free Form W-8BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding. Amend 2008 tax return free   This form is used by a foreign person to: Establish foreign status; Claim that such person is the beneficial owner of the income for which the form is being furnished or a partner in a partnership subject to section 1446 withholding; and If applicable, claim a reduced rate of, or exemption from, withholding under an income tax treaty. Amend 2008 tax return free   Form W-8BEN also may be used to claim that the foreign person is exempt from Form 1099 reporting and backup withholding for income that is not subject to NRA withholding. Amend 2008 tax return free For example, a foreign person may provide a Form W-8BEN to a broker to establish that the gross proceeds from the sale of securities are not subject to Form 1099 reporting or backup withholding. Amend 2008 tax return free Claiming treaty benefits. Amend 2008 tax return free   You may apply a reduced rate of withholding to a foreign person that provides a Form W-8BEN claiming a reduced rate of withholding under an income tax treaty only if the person provides a U. Amend 2008 tax return free S. Amend 2008 tax return free TIN and certifies that: It is a resident of a treaty country; It is the beneficial owner of the income; If it is an entity, it derives the income within the meaning of section 894 of the Internal Revenue Code (it is not fiscally transparent); and It meets any limitation on benefits provision contained in the treaty, if applicable. Amend 2008 tax return free   If the foreign beneficial owner claiming a treaty benefit is related to you, the foreign beneficial owner also must certify on Form W-8BEN that it will file Form 8833, Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b), if the amount subject to NRA withholding received during a calendar year exceeds, in the aggregate, $500,000. Amend 2008 tax return free   An entity derives income for which it is claiming treaty benefits only if the entity is not treated as fiscally transparent for that income. Amend 2008 tax return free See Fiscally transparent entity discussed earlier under Flow-Through Entities. Amend 2008 tax return free   Limitations on benefits provisions generally prohibit third country residents from obtaining treaty benefits. Amend 2008 tax return free For example, a foreign corporation may not be entitled to a reduced rate of withholding unless a minimum percentage of its owners are citizens or residents of the United States or the treaty country. Amend 2008 tax return free   The exemptions from, or reduced rates of, U. Amend 2008 tax return free S. Amend 2008 tax return free tax vary under each treaty. Amend 2008 tax return free You must check the provisions of the tax treaty that apply. Amend 2008 tax return free Tables at the end of this publication show the countries with which the United States has income tax treaties and the rates of withholding that apply in cases where all conditions of the particular treaty articles are satisfied. Amend 2008 tax return free   If you know, or have reason to know, that an owner of income is not eligible for treaty benefits claimed, you must not apply the treaty rate. Amend 2008 tax return free You are not, however, responsible for misstatements on a Form W-8, documentary evidence, or statements accompanying documentary evidence for which you did not have actual knowledge, or reason to know, that the statements were incorrect. Amend 2008 tax return free Exceptions to TIN requirement. Amend 2008 tax return free   A foreign person does not have to provide a TIN to claim a reduced rate of withholding under a treaty if the requirements for the following exceptions are met. Amend 2008 tax return free Income from marketable securities (discussed next). Amend 2008 tax return free Unexpected payments to an individual (discussed under U. Amend 2008 tax return free S. Amend 2008 tax return free Taxpayer Identification Numbers ). Amend 2008 tax return free Marketable securities. Amend 2008 tax return free   A Form W-8BEN provided to claim treaty benefits does not need a U. Amend 2008 tax return free S. Amend 2008 tax return free TIN if the foreign beneficial owner is claiming the benefits on income from marketable securities. Amend 2008 tax return free For this purpose, income from a marketable security consists of the following items. Amend 2008 tax return free Dividends and interest from stocks and debt obligations that are actively traded. Amend 2008 tax return free Dividends from any redeemable security issued by an investment company registered under the Investment Company Act of 1940 (mutual fund). Amend 2008 tax return free Dividends, interest, or royalties from units of beneficial interest in a unit investment trust that are (or were upon issuance) publicly offered and are registered with the SEC under the Securities Act of 1933. Amend 2008 tax return free Income related to loans of any of the above securities. Amend 2008 tax return free Offshore accounts. Amend 2008 tax return free   If a payment is made outside the United States to an offshore account, a payee may give you documentary evidence, rather than Form W-8BEN. Amend 2008 tax return free   In most cases, a payment is made outside the United States if you complete the acts necessary to effect the payment outside the United States. Amend 2008 tax return free However, an amount paid by a bank or other financial institution on a deposit or account usually will be treated as paid at the branch or office where the amount is credited. Amend 2008 tax return free An offshore account is an account maintained at an office or branch of a U. Amend 2008 tax return free S. Amend 2008 tax return free or foreign bank or other financial institution at any location outside the United States. Amend 2008 tax return free   You may rely on documentary evidence given to you by a nonqualified intermediary or a flow-through entity with its Form W-8IMY. Amend 2008 tax return free This rule applies even though you make the payment to a nonqualified intermediary or flow-through entity in the United States. Amend 2008 tax return free In most cases, the nonqualified intermediary or flow-through entity that gives you documentary evidence also will have to give you a withholding statement, discussed later. Amend 2008 tax return free Documentary evidence. Amend 2008 tax return free   You may apply a reduced rate of withholding to income from marketable securities (discussed earlier) paid outside the United States to an offshore account if the beneficial owner gives you documentary evidence in place of a Form W-8BEN. Amend 2008 tax return free To claim treaty benefits, the documentary evidence must be one of the following: A certificate of residence that: Is issued by a tax official of the treaty country of which the foreign beneficial owner claims to be a resident, States that the person has filed its most recent income tax return as a resident of that country, and Is issued within 3 years prior to being presented to you. Amend 2008 tax return free Documentation for an individual that: Includes the individual's name, address, and photograph, Is an official document issued by an authorized governmental body, and Is issued no more than 3 years prior to being presented to you. Amend 2008 tax return free Documentation for an entity that: Includes the name of the entity, Includes the address of its principal office in the treaty country, and Is an official document issued by an authorized governmental body. Amend 2008 tax return free In addition to the documentary evidence, a foreign beneficial owner that is an entity must provide a statement that it derives the income for which it claims treaty benefits and that it meets one or more of the conditions set forth in a limitation on benefits article, if any, (or similar provision) contained in the applicable treaty. Amend 2008 tax return free Form 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. Amend 2008 tax return free   This form is used by a foreign person to: Establish foreign status, Claim that such person is the beneficial owner of the income for which the form is being furnished, and Claim that the income is effectively connected with the conduct of a trade or business in the United States. Amend 2008 tax return free (See Effectively Connected Income , later. Amend 2008 tax return free )   Effectively connected income for which a valid Form W-8ECI has been provided is generally not subject to NRA withholding. Amend 2008 tax return free   If a partner submits this form to a partnership, the income claimed to be effectively connected with the conduct of a U. Amend 2008 tax return free S. Amend 2008 tax return free trade or business is subject to withholding under section 1446. Amend 2008 tax return free If the partner has made, or will make, an election under section 871(d) or 882(d), the partner must submit Form W-8ECI, and attach a copy of the election, or a statement of intent to elect, to the form. Amend 2008 tax return free    If the partner's only effectively connected income is the income allocated from the partnership and the partner is not making the election under section 871(d) or 882(d), the partner should provide Form W-8BEN to the partnership. Amend 2008 tax return free Form W-8EXP, Certificate of Foreign Government or Other Foreign Organization for United States Tax Withholding. Amend 2008 tax return free   This form is used by a foreign government, international organization, foreign central bank of issue, foreign tax-exempt organization, foreign private foundation, or government of a U. Amend 2008 tax return free S. Amend 2008 tax return free possession to: Establish foreign status, Claim that such person is the beneficial owner of the income for which the form is being furnished, and Claim a reduced rate of, or an exemption from, withholding as such an entity. Amend 2008 tax return free   If the government or organization is a partner in a partnership carrying on a trade or business in the United States, the effectively connected income allocable to the partner is subject to withholding under section 1446. Amend 2008 tax return free   See Foreign Governments and Certain Other Foreign Organizations , later. Amend 2008 tax return free Foreign Intermediaries and Foreign Flow-Through Entities Payments made to a foreign intermediary or foreign flow-through entity are treated as made to the payees on whose behalf the intermediary or entity acts. Amend 2008 tax return free The Form W-8IMY provided by a foreign intermediary or flow-through entity must be accompanied by additional information for you to be able to reliably associate the payment with a payee. Amend 2008 tax return free The additional information required depends on the type of intermediary or flow-through entity and the extent of the withholding responsibilities it assumes. Amend 2008 tax return free Form W-8IMY, Certificate of Foreign Intermediary, Foreign Flow-Through Entity, or Certain U. Amend 2008 tax return free S. Amend 2008 tax return free Branches for United States Tax Withholding. Amend 2008 tax return free   This form is used by foreign intermediaries and foreign flow-through entities, as well as certain U. Amend 2008 tax return free S. Amend 2008 tax return free branches, to: Represent that a foreign person is a qualified intermediary or nonqualified intermediary, Represent, if applicable, that the qualified intermediary is assuming primary NRA withholding responsibility and/or primary Form 1099 reporting and backup withholding responsibility, Represent that a foreign partnership or a foreign simple or grantor trust is a withholding foreign partnership or a withholding foreign trust, Represent that a foreign flow-through entity is a nonwithholding foreign partnership, or a nonwithholding foreign trust and that the income is not effectively connected with the conduct of a trade or business in the United States, Represent that the provider is a U. Amend 2008 tax return free S. Amend 2008 tax return free branch of a foreign bank or insurance company and either is agreeing to be treated as a U. Amend 2008 tax return free S. Amend 2008 tax return free person or is transmitting documentation of the persons on whose behalf it is acting, or Represent that, for purposes of section 1446, it is an upper-tier foreign partnership or a foreign grantor trust and that the form is being used to transmit the required documentation. Amend 2008 tax return free For information on qualifying as an upper-tier foreign partnership, see Regulations section 1. Amend 2008 tax return free 1446-5. Amend 2008 tax return free Qualified Intermediaries In most cases, a QI is any foreign intermediary that has entered into a QI withholding agreement (discussed earlier) with the IRS. Amend 2008 tax return free A foreign intermediary that has received a QI employer identification number (QI-EIN) may represent on Form W-8IMY that it is a QI before it receives a fully executed agreement. Amend 2008 tax return free The intermediary can claim that it is a QI until the IRS revokes its QI-EIN. Amend 2008 tax return free The IRS will revoke a QI-EIN if the QI agreement is not executed and returned to the IRS within a reasonable period of time after the agreement was sent to the intermediary for signature. Amend 2008 tax return free Responsibilities. Amend 2008 tax return free   Payments made to a QI that does not assume NRA withholding responsibility are treated as paid to its account holders and customers. Amend 2008 tax return free However, a QI is not required to provide you with documentation it obtains from its foreign account holders and customers. Amend 2008 tax return free Instead, it provides you with a withholding statement that contains withholding rate pool information. Amend 2008 tax return free A withholding rate pool is a payment of a single type of income, determined in accordance with the categories of income reported on Form 1042-S that is subject to a single rate of withholding. Amend 2008 tax return free A qualified intermediary is required to provide you with information regarding U. Amend 2008 tax return free S. Amend 2008 tax return free persons subject to Form 1099 reporting and to provide you withholding rate pool information separately for each such U. Amend 2008 tax return free S. Amend 2008 tax return free person unless it has assumed Form 1099 reporting and backup withholding responsibility. Amend 2008 tax return free For the alternative procedure for providing rate pool information for U. Amend 2008 tax return free S. Amend 2008 tax return free non-exempt persons, see the Form W-8IMY instructions. Amend 2008 tax return free   The withholding statement must: Designate those accounts for which it acts as a qualified intermediary, Designate those accounts for which it assumes primary NRA withholding responsibility and/or primary Form 1099 and backup withholding responsibility, and Provide sufficient information for you to allocate the payment to a withholding rate pool. Amend 2008 tax return free   The extent to which you must have withholding rate pool information depends on the withholding and reporting obligations assumed by the QI. Amend 2008 tax return free Primary responsibility not assumed. Amend 2008 tax return free   If a QI does not assume primary NRA withholding responsibility or primary Form 1099 reporting and backup withholding responsibility for the payment, you can reliably associate the payment with valid documentation only to the extent you can reliably determine the part of the payment that relates to each withholding rate pool for foreign payees. Amend 2008 tax return free Unless the alternative procedure applies, the qualified intermediary must provide you with a separate withholding rate pool for each U. Amend 2008 tax return free S. Amend 2008 tax return free person subject to Form 1099 reporting and/or backup withholding. Amend 2008 tax return free The QI must provide a Form W-9 or, in the absence of the form, the name, address, and TIN, if available, for such person. Amend 2008 tax return free Primary NRA withholding responsibility assumed. Amend 2008 tax return free   If you make a payment to a QI that assumes primary NRA withholding responsibility (but not primary Form 1099 reporting and backup withholding responsibility), you can reliably associate the payment with valid documentation only to the extent you can reliably determine the part of the payment that relates to the withholding rate pool for which the QI assumes primary NRA withholding responsibility and the part of the payment attributable to withholding rate pools for each U. Amend 2008 tax return free S. Amend 2008 tax return free person, unless the alternative procedure applies, subject to Form 1099 reporting and/or backup withholding. Amend 2008 tax return free The QI must provide a Form W-9 or, in the absence of the form, the name, address, and TIN, if available, for such person. Amend 2008 tax return free Primary NRA and Form 1099 responsibility assumed. Amend 2008 tax return free   If you make a payment to a QI that assumes both primary NRA withholding responsibility and primary Form 1099 reporting and backup withholding responsibility, you can reliably associate a payment with valid documentation provided that you receive a valid Form W-8IMY. Amend 2008 tax return free It is not necessary to associate the payment with withholding rate pools. Amend 2008 tax return free Example. Amend 2008 tax return free You make a payment of dividends to a QI. Amend 2008 tax return free It has five customers: two are foreign persons who have provided documentation entitling them to a 15% rate of withholding on dividends; two are foreign persons subject to a 30% rate of withholding on dividends; and one is a U. Amend 2008 tax return free S. Amend 2008 tax return free individual who provides it with a Form W-9. Amend 2008 tax return free Each customer is entitled to 20% of the dividend payment. Amend 2008 tax return free The QI does not assume any primary withholding responsibility. Amend 2008 tax return free The QI gives you a Form W-8IMY with which it associates the Form W-9 and a withholding statement that allocates 40% of the dividend to a 15% withholding rate pool, 40% to a 30% withholding rate pool, and 20% to the U. Amend 2008 tax return free S. Amend 2008 tax return free individual. Amend 2008 tax return free You should report on Forms 1042-S 40% of the payment as made to a 15% rate dividend pool and 40% of the payment as made to a 30% rate dividend pool. Amend 2008 tax return free The part of the payment allocable to the U. Amend 2008 tax return free S. Amend 2008 tax return free individual (20%) is reportable on Form 1099-DIV. Amend 2008 tax return free Smaller partnerships and trusts. Amend 2008 tax return free   A QI may apply special rules to a smaller partnership or trust (Joint Account Provision) only if the partnership or trust meets the following conditions. Amend 2008 tax return free It is a foreign partnership or foreign simple or grantor trust. Amend 2008 tax return free It is a direct account holder of the QI. Amend 2008 tax return free It does not have any partner, beneficiary, or owner that is a U. Amend 2008 tax return free S. Amend 2008 tax return free person or a pass- through partner, beneficiary, or owner. Amend 2008 tax return free   For information on these rules, see section 4A. Amend 2008 tax return free 01 of the QI agreement. Amend 2008 tax return free This is found in Appendix 3 of Revenue Procedure 2003-64. Amend 2008 tax return free Also see Revenue Procedure 2004-21. Amend 2008 tax return free Related partnerships and trusts. Amend 2008 tax return free    A QI may apply special rules to a related partnership or trust only if the partnership or trust meets the following conditions. Amend 2008 tax return free It is a foreign partnership or foreign simple or grantor trust. Amend 2008 tax return free It is either: A direct account holder of the QI, or An indirect account holder of the QI that is a direct partner, beneficiary, or owner of a partnership or trust to which the QI has applied this rule. Amend 2008 tax return free For information on these rules, see section 4A. Amend 2008 tax return free 02 of the QI agreement. Amend 2008 tax return free This is found in Appendix 3 of Revenue Procedure 2003-64. Amend 2008 tax return free Also see Revenue Procedure 2005-77. Amend 2008 tax return free Nonqualified Intermediaries If you are making a payment to an NQI, foreign flow-through entity, or U. Amend 2008 tax return free S. Amend 2008 tax return free branch that is using Form W-8IMY to transmit information about the branch's account holders or customers, you can treat the payment (or a part of the payment) as reliably associated with valid documentation from a specific payee only if, prior to making the payment: You can allocate the payment to a valid Form W-8IMY, You can reliably determine how much of the payment relates to valid documentation provided by a payee (a person that is not itself a foreign intermediary, flow- through entity, or U. Amend 2008 tax return free S. Amend 2008 tax return free branch), and You have sufficient information to report the payment on Form 1042-S or Form 1099, if reporting is required. Amend 2008 tax return free The NQI, flow-through entity, or U. Amend 2008 tax return free S. Amend 2008 tax return free branch must give you certain information on a withholding statement that is associated with the Form W-8IMY. Amend 2008 tax return free A withholding statement must be updated to keep the information accurate prior to each payment. Amend 2008 tax return free Withholding statement. Amend 2008 tax return free   In most cases, a withholding statement must contain the following information. Amend 2008 tax return free The name, address, and TIN (if any, or if required) of each person for whom documentation is provided. Amend 2008 tax return free The type of documentation (documentary evidence, Form W-8, or Form W-9) for every person for whom documentation has been provided. Amend 2008 tax return free The status of the person for whom the documentation has been provided, such as whether the person is a U. Amend 2008 tax return free S. Amend 2008 tax return free exempt recipient (U. Amend 2008 tax return free S. Amend 2008 tax return free person exempt from Form 1099 reporting), U. Amend 2008 tax return free S. Amend 2008 tax return free non-exempt recipient (U. Amend 2008 tax return free S. Amend 2008 tax return free person subject to Form 1099 reporting), or a foreign person. Amend 2008 tax return free For a foreign person, the statement must indicate whether the person is a beneficial owner or a foreign intermediary, flow-through entity, or a U. Amend 2008 tax return free S. Amend 2008 tax return free branch. Amend 2008 tax return free The type of recipient the person is, based on the recipient codes used on Form 1042-S. Amend 2008 tax return free Information allocating each payment, by income type, to each payee (including U. Amend 2008 tax return free S. Amend 2008 tax return free exempt and U. Amend 2008 tax return free S. Amend 2008 tax return free non-exempt recipients) for whom documentation has been provided. Amend 2008 tax return free The rate of withholding that applies to each foreign person to whom a payment is allocated. Amend 2008 tax return free A foreign payee's country of residence. Amend 2008 tax return free If a reduced rate of withholding is claimed, the basis for a reduced rate of withholding (for example, portfolio interest, treaty benefit, etc. Amend 2008 tax return free ). Amend 2008 tax return free In the case of treaty benefits claimed by entities, whether the applicable limitation on benefits statement and the statement that the foreign person derives the income for which treaty benefits are claimed, have been made. Amend 2008 tax return free The name, address, and TIN (if any) of any other NQI, flow-through entity, or U. Amend 2008 tax return free S. Amend 2008 tax return free branch from which the payee will directly receive a payment. Amend 2008 tax return free Any other information a withholding agent requests to fulfill its reporting and withholding obligations. Amend 2008 tax return free Alternative procedure. Amend 2008 tax return free   Under this alternative procedure the NQI can give you the information that allocates each payment to each foreign and U. Amend 2008 tax return free S. Amend 2008 tax return free exempt recipient by January 31 following the calendar year of payment, rather than prior to the payment being made as otherwise required. Amend 2008 tax return free To take advantage of this procedure, the NQI must: (a) inform you, on its withholding statement, that it is using the alternative procedure; and (b) obtain your consent. Amend 2008 tax return free You must receive the withholding statement with all the required information (other than item 5) prior to making the payment. Amend 2008 tax return free    This alternative procedure cannot be used for payments to U. Amend 2008 tax return free S. Amend 2008 tax return free non-exempt recipients. Amend 2008 tax return free Therefore, an NQI must always provide you with allocation information for all U. Amend 2008 tax return free S. Amend 2008 tax return free non-exempt recipients prior to a payment being made. Amend 2008 tax return free Pooled withholding information. Amend 2008 tax return free   If an NQI uses the alternative procedure, it must provide you with withholding rate pool information, as opposed to individual allocation information, prior to the payment of a reportable amount. Amend 2008 tax return free A withholding rate pool is a payment of a single type of income (as determined by the income categories on Form 1042-S) that is subject to a single rate of withholding. Amend 2008 tax return free For example, an NQI that has foreign account holders receiving royalties and dividends, both subject to the 15% rate, will provide you with information for two withholding rate pools (one for royalties and one for dividends). Amend 2008 tax return free The NQI must provide you with the payee specific allocation information (information allocating each payment to each payee) by January 31 following the calendar year of payment. Amend 2008 tax return free Failure to provide allocation information. Amend 2008 tax return free   If an NQI fails to provide you with the payee specific allocation information for a withholding rate pool by January 31, you must not apply the alternative procedure to any of the NQI's withholding rate pools from that date forward. Amend 2008 tax return free You must treat the payees as undocumented and apply the presumption rules, discussed later in Presumption Rules . Amend 2008 tax return free An NQI is deemed to have f
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Contact My Local Office in New York

Face-to-face Tax Help

IRS Taxpayer Assistance Centers (TACs) are your source for personal tax help when you believe your tax issue can only be handled face-to-face. No appointment is necessary.

Keep in mind, many questions can be resolved online without waiting in line. Through IRS.gov you can:
• Set up a payment plan.
• Get a transcript of your tax return.
• Make a payment.
• Check on your refund.
• Find answers to many of your tax questions.

We are now referring all requests for tax return preparation services to other available resources. You can take advantage of free tax preparation through Free File, Free File Fillable Forms or through a volunteer site in your community. To find the nearest volunteer site location or to get more information about Free File, go to the top of the page and enter “Free Tax Help” in the Search box.

If you have a tax account issues and feel that it requires talking with someone face-to-face, visit your local TAC.

Caution:  Many of our offices are located in Federal Office Buildings. These buildings may not allow visitors to bring in cell phones with camera capabilities.

Multilingual assistance is available in every office. Hours of operation are subject to change.

Before visiting your local office click on "Services Provided" in the chart below to see what services are available. Services are limited and not all services are available at every TAC office and may vary from site to site. You can get these services on a walk-in basis.

City Street Address Days/Hours of Service Telephone*
Albany Clinton Ave. & N. Pearl St.
Albany, NY 12207

Monday - Friday 8:30 a.m. - 4:30 p.m.

 

Services Provided

(518) 427-4250
Bethpage 999 Stewart Ave.
Bethpage, NY 11714

Monday - Friday 8:30 a.m. - 4:30 p.m.
 

Services Provided

(516) 576-7428
Binghamton 15 Henry St.
Binghamton, NY 13901

Monday - Friday 8:30 a.m.-4:30 p.m.
(Closed for lunch 1:00 p.m. - 2:00 p.m.)

 

Services Provided

(607) 721-0338
Bronx 1200 Waters Place
Bronx, NY 10461

Monday - Friday 8:30 a.m.-4:30 p.m.

 

**This office will be open until 6:00 p.m. on 4/14 & 4/15**

 

Services Provided

(718) 536-3660
Brooklyn 2 Metro Tech, 1st floor
Brooklyn, NY 11201

Monday - Friday 8:30 a.m.-4:30 p.m.

 

**This office will be open until 6:00 p.m. on 4/14 & 4/15**
 

Services Provided

(718) 834-6559
Buffalo 130 South Elmwood Ave.
Buffalo, NY 14202

Monday - Friday 8:30 a.m.-4:30 p.m.

 

Services Provided

(716) 961-5100
Elmira 149 West Gray St.
Elmira, NY 14901

Monday - Friday 8:30 a.m.- 4:30 p.m.
(Closed for lunch 1:00 p.m. - 2:00)

 

Services Provided

(607) 767-1012
Hauppauge 1180 Veterans Memorial Hwy.
Hauppauge, NY 11788

Monday - Friday 8:30 a.m.-4:30 p.m.


Services Provided

(631) 851-4726
Jamestown

201 West Third Street
Jamestown, NY 14701

 

 

Monday - Friday 8:30 a.m.- 4:30 p.m.
(Closed for lunch 1:00 p.m. - 2:00 p.m.)

 

Services Provided

(716) 961-5100 
 Kingston 153 Sawkill Rd.
Kingston, NY 12401 

Monday - Friday 8:30 a.m.- 4:30 p.m.
(Closed for lunch 1:00 p.m. - 2:00 p.m.)

 

Services Provided

(845) 339-5384
 New York (Harlem) 2283 Third Ave.
New York, NY 10035 

Monday - Friday 8:30 a.m.-4:30 p.m.

 

**This office will be open until 6:00 p.m. on 4/14 & 4/15**

 

Services Provided

(718) 536-3699 
 New York (Downtown) 290 Broadway
New York, NY 10007 

Monday - Friday 8:30 a.m.-4:30 p.m.
 

Services Provided

(212) 436-1000
 New York (Midtown) 110 W. 44th St.
New York, NY 10036 

Monday - Friday 8:30 a.m.-4:30 p.m.

 

**This office will be open until 6:00 p.m. on 4/14 & 4/15**
 

Services Provided  

(212) 719-6631 
 Poughkeepsie 191 Main St.
Poughkeepsie, NY 12601 

Monday - Friday 8:30 a.m.-4:30 p.m.
(Closed for lunch 1:00 p.m. - 2:00 p.m.)

 

Services Provided

(845) 452-2220 
 Queensbury 375 Bay Rd.
Queensbury, NY 12804 

Monday - Friday 8:30 a.m. - 4:30 p.m.
(Closed for lunch 1:00 p.m. - 2:00 p.m.)

 

Services Provided

(518) 798-6047 
 Rego Park 59-17 Junction Blvd.
Rego Park, NY 11368 

Monday - Friday 8:30 a.m.-4:30 p.m.


 Services Provided

(718) 760-6019 
 Rochester 255 East Ave.
Rochester, NY 14604 

Monday - Friday 8:30 a.m.-4:30 p.m.
 

Services Provided

(585) 263-5840 
Staten Island/remote
Taxpayer Assistance
available at
Project Hospitality
514 Bay Street
Staten Island, NY 10304 

Monday - Friday 8:30 a.m.-4:30 p.m. 
 

Virtual Services Provided

(212) 436-1000 
 Syracuse One Park Place
300 South State Street
Syracuse, NY  13202 

Monday - Friday 8:30 a.m.-4:30 p.m.

 

Services Provided

(315) 448-0807 
 Utica 10 Broad St.
Utica, NY  13501 

Monday - Friday 8:30 a.m.-4:00 p.m.

 

 Services Provided

(315) 793-1952 
 West Nyack 242 W. Nyack Rd.
West Nyack, NY 10994 

Monday - Friday 8:30 a.m.-4:30 p.m. 
(Closed for lunch 1:00 p.m. - 2:00 p.m.)

 

Services Provided

(845) 627-1487 
 White Plains 210 E. Post Rd.
White Plains, NY 10601 

Monday - Friday 8:30 a.m.-4:30 p.m.


Services Provided

(914) 684-7302 

* Note: The phone numbers in the chart above are not toll-free for all locations. When you call, you will reach a recorded business message with information about office hours, locations and services provided in that office. If face-to-face assistance is not a priority for you, you may also get help with IRS letters or resolve tax account issues by phone, toll free at 1-800-829-1040 (individuals) or 1-800-829-4933 (businesses). 

For information on where to file your tax return please see Where to File Addresses

The Taxpayer Advocate Service: Within New York call:
 

 Albany  (518) 427-5413
 Brooklyn  (718) 834-2200
 Buffalo  (716) 961-5300
 Manhattan  (212) 436-1011

Call 1-877-777-4778 elsewhere, or see  Publication 1546, The Taxpayer Advocate Service of the IRS. For further information, see  Tax Topic 104.

Partnerships

IRS and organizations all over the country are partnering to assist taxpayers. Through these partnerships, organizations are also achieving their own goals. These mutually beneficial partnerships are strengthening outreach efforts and bringing education and assistance to millions.

For more information about these programs for individuals and families, contact the Stakeholder Partnerships, Education and Communication Office at:

Internal Revenue Service
1 Clinton Ave., Room 600
Albany, NY 12207

Internal Revenue Service
201 Como Park Blvd.
Cheektowaga, NY 14425

Internal Revenue Service
290 Broadway, 5th FL
New York, NY 10007

For more information about these programs for businesses, your local Stakeholder Liaison office establishes relationships with organizations representing small business and self-employed taxpayers. They provide information about the policies, practices and procedures the IRS uses to ensure compliance with the tax laws. To establish a relationship with us, use this list to find a contact in your state:

Stakeholder Liaison (SL) Phone Numbers for Organizations Representing Small Businesses and Self-employed Taxpayers.

Page Last Reviewed or Updated: 28-Mar-2014

The Amend 2008 Tax Return Free

Amend 2008 tax return free 6. Amend 2008 tax return free   Tuition and Fees Deduction Table of Contents IntroductionWhat is the tax benefit of the tuition and fees deduction. Amend 2008 tax return free Can You Claim the DeductionWho Can Claim the Deduction Who Cannot Claim the Deduction What Expenses QualifyQualified Education Expenses No Double Benefit Allowed Expenses That Do Not Qualify Who Is an Eligible Student Who Can Claim a Dependent's Expenses Figuring the DeductionEffect of the Amount of Your Income on the Amount of Your Deduction Claiming the Deduction Illustrated Example Introduction You may be able to deduct qualified education expenses paid during the year for yourself, your spouse, or your dependent(s). Amend 2008 tax return free You cannot claim this deduction if your filing status is married filing separately or if another person can claim an exemption for you as a dependent on his or her tax return. Amend 2008 tax return free The qualified expenses must be for higher education, as explained later under Qualified Education Expenses . Amend 2008 tax return free What is the tax benefit of the tuition and fees deduction. Amend 2008 tax return free   The tuition and fees deduction can reduce the amount of your income subject to tax by up to $4,000. Amend 2008 tax return free   This deduction is taken as an adjustment to income. Amend 2008 tax return free This means you can claim this deduction even if you do not itemize deductions on Schedule A (Form 1040). Amend 2008 tax return free This deduction may be beneficial to you if you do not qualify for the American opportunity or lifetime learning credits. Amend 2008 tax return free You can choose the education benefit that will give you the lowest tax. Amend 2008 tax return free You may want to compare the tuition and fees deduction to the education credits. Amend 2008 tax return free See chapter 2, American Opportunity Credit and chapter 3, Lifetime Learning Credit for more information on the education credits. Amend 2008 tax return free Table 6-1. Amend 2008 tax return free Tuition and Fees Deduction at a Glance summarizes the features of the tuition and fees deduction. Amend 2008 tax return free Can You Claim the Deduction The following rules will help you determine if you can claim the tuition and fees deduction. Amend 2008 tax return free Who Can Claim the Deduction Generally, you can claim the tuition and fees deduction if all three of the following requirements are met. Amend 2008 tax return free You pay qualified education expenses of higher education. Amend 2008 tax return free You pay the education expenses for an eligible student. Amend 2008 tax return free The eligible student is yourself, your spouse, or your dependent for whom you claim an exemption on your tax return. Amend 2008 tax return free The term “qualified education expenses” is defined later under Qualified Education Expenses . Amend 2008 tax return free “Eligible student” is defined later under Who Is an Eligible Student . Amend 2008 tax return free For more information on claiming the deduction for a dependent, see Who Can Claim a Dependent's Expenses , later. Amend 2008 tax return free Table 6-1. Amend 2008 tax return free Tuition and Fees Deduction at a Glance Do not rely on this table alone. Amend 2008 tax return free Refer to the text for complete details. Amend 2008 tax return free Question Answer What is the maximum benefit? You can reduce your income subject to tax by up to $4,000. Amend 2008 tax return free What is the limit on modified adjusted gross income (MAGI)? $160,000 if married filing a joint return; $80,000 if single, head of household, or qualifying widow(er). Amend 2008 tax return free Where is the deduction taken? As an adjustment to income on  Form 1040 or Form 1040A. Amend 2008 tax return free For whom must the expenses be paid? A student enrolled in an eligible educational institution who is either: •you,  •your spouse, or  •your dependent for whom you claim an exemption. Amend 2008 tax return free What tuition and fees are deductible? Tuition and fees required for enrollment or attendance at an eligible postsecondary educational institution, but not including personal, living, or family expenses, such as room and board. Amend 2008 tax return free Who Cannot Claim the Deduction You cannot claim the tuition and fees deduction if any of the following apply. Amend 2008 tax return free Your filing status is married filing separately. Amend 2008 tax return free Another person can claim an exemption for you as a dependent on his or her tax return. Amend 2008 tax return free You cannot take the deduction even if the other person does not actually claim that exemption. Amend 2008 tax return free Your modified adjusted gross income (MAGI) is more than $80,000 ($160,000 if filing a joint return). Amend 2008 tax return free You (or your spouse) were a nonresident alien for any part of 2013 and the nonresident alien did not elect to be treated as a resident alien for tax purposes. Amend 2008 tax return free More information on nonresident aliens can be found in Publication 519. Amend 2008 tax return free What Expenses Qualify The tuition and fees deduction is based on qualified education expenses you pay for yourself, your spouse, or a dependent for whom you claim an exemption on your tax return. Amend 2008 tax return free Generally, the deduction is allowed for qualified education expenses paid in 2013 in connection with enrollment at an institution of higher education during 2013 or for an academic period beginning in 2013 or in the first 3 months of 2014. Amend 2008 tax return free For example, if you paid $1,500 in December 2013 for qualified tuition for the spring 2014 semester beginning in January 2014, you may be able to use that $1,500 in figuring your 2013 deduction. Amend 2008 tax return free Academic period. Amend 2008 tax return free   An academic period includes a semester, trimester, quarter, or other period of study (such as a summer school session) as reasonably determined by an educational institution. Amend 2008 tax return free In the case of an educational institution that uses credit hours or clock hours and does not have academic terms, each payment period can be treated as an academic period. Amend 2008 tax return free Paid with borrowed funds. Amend 2008 tax return free   You can claim a tuition and fees deduction for qualified education expenses paid with the proceeds of a loan. Amend 2008 tax return free Use the expenses to figure the deduction for the year in which the expenses are paid, not the year in which the loan is repaid. Amend 2008 tax return free Treat loan disbursements sent directly to the educational institution as paid on the date the institution credits the student's account. Amend 2008 tax return free Student withdraws from class(es). Amend 2008 tax return free   You can claim a tuition and fees deduction for qualified education expenses not refunded when a student withdraws. Amend 2008 tax return free Qualified Education Expenses For purposes of the tuition and fees deduction, qualified education expenses are tuition and certain related expenses required for enrollment or attendance at an eligible educational institution. Amend 2008 tax return free Eligible educational institution. Amend 2008 tax return free   An eligible educational institution is any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the U. Amend 2008 tax return free S. Amend 2008 tax return free Department of Education. Amend 2008 tax return free It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. Amend 2008 tax return free The educational institution should be able to tell you if it is an eligible educational institution. Amend 2008 tax return free   Certain educational institutions located outside the United States also participate in the U. Amend 2008 tax return free S. Amend 2008 tax return free Department of Education's Federal Student Aid (FSA) programs. Amend 2008 tax return free Related expenses. Amend 2008 tax return free   Student-activity fees and expenses for course-related books, supplies, and equipment are included in qualified education expenses only if the fees and expenses must be paid to the institution as a condition of enrollment or attendance. Amend 2008 tax return free Prepaid expenses. Amend 2008 tax return free   Qualified education expenses paid in 2013 for an academic period that begins in the first three months of 2014 can be used in figuring an education credit for 2013 only. Amend 2008 tax return free See Academic period , earlier. Amend 2008 tax return free For example, you pay $2,000 in December 2013 for qualified tuition for the 2014 winter quarter that begins in January 2014, you can use that $2,000 in figuring an education credit for 2013 only (if you meet all the other requirements). Amend 2008 tax return free You cannot use any amount you paid in 2012 or 2014 to figure the qualified education expenses you use to figure your 2013 education credit(s). Amend 2008 tax return free In the following examples, assume that each student is an eligible student and each college or university an eligible educational institution. Amend 2008 tax return free Example 1. Amend 2008 tax return free Jackson is a sophomore in University V's degree program in dentistry. Amend 2008 tax return free This year, in addition to tuition, he is required to pay a fee to the university for the rental of the dental equipment he will use in this program. Amend 2008 tax return free Because the equipment rental fee must be paid to University V for enrollment and attendance, Jackson's equipment rental fee is a qualified education expense. Amend 2008 tax return free Example 2. Amend 2008 tax return free Donna and Charles, both first-year students at College W, are required to have certain books and other reading materials to use in their mandatory first-year classes. Amend 2008 tax return free The college has no policy about how students should obtain these materials, but any student who purchases them from College W's bookstore will receive a bill directly from the college. Amend 2008 tax return free Charles bought his books from a friend, so what he paid for them is not a qualified education expense. Amend 2008 tax return free Donna bought hers at College W's bookstore. Amend 2008 tax return free Although Donna paid College W directly for her first-year books and materials, her payment is not a qualified education expense because the books and materials are not required to be purchased from College W for enrollment or attendance at the institution. Amend 2008 tax return free Example 3. Amend 2008 tax return free When Marci enrolled at College X for her freshman year, she had to pay a separate student activity fee in addition to her tuition. Amend 2008 tax return free This activity fee is required of all students, and is used solely to fund on-campus organizations and activities run by students, such as the student newspaper and the student government. Amend 2008 tax return free No portion of the fee covers personal expenses. Amend 2008 tax return free Although labeled as a student activity fee, the fee is required for Marci's enrollment and attendance at College X. Amend 2008 tax return free Therefore, it is a qualified expense. Amend 2008 tax return free No Double Benefit Allowed You cannot do any of the following. Amend 2008 tax return free Deduct qualified education expenses you deduct under any other provision of the law, for example, as a business expense. Amend 2008 tax return free Deduct qualified education expenses for a student on your income tax return if you or anyone else claims an American opportunity or lifetime learning credit for that same student in the same year. Amend 2008 tax return free Deduct qualified education expenses that have been used to figure the tax-free portion of a distribution from a Coverdell education savings account (ESA) or a qualified tuition program (QTP). Amend 2008 tax return free For a QTP, this applies only to the amount of tax-free earnings that were distributed, not to the recovery of contributions to the program. Amend 2008 tax return free See Coordination With Tuition and Fees Deduction in chapter 8, Qualified Tuition Program, later. Amend 2008 tax return free Deduct qualified education expenses that have been paid with tax-free interest on U. Amend 2008 tax return free S. Amend 2008 tax return free savings bonds (Form 8815). Amend 2008 tax return free See Figuring the Tax-Free Amount in chapter 10, Education Savings Bond Program, later. Amend 2008 tax return free Deduct qualified education expenses that have been paid with tax-free educational assistance, such as a scholarship, grant, or assistance provided by an employer. Amend 2008 tax return free See the following section on Adjustments to Qualified Education Expenses. Amend 2008 tax return free Adjustments to Qualified Education Expenses For each student, reduce the qualified education expenses paid by or on behalf of that student under the following rules. Amend 2008 tax return free The result is the amount of adjusted qualified education expenses for each student. Amend 2008 tax return free You must also reduce qualified education expenses by the other amounts referred to in No Double Benefit Allowed , earlier. Amend 2008 tax return free Tax-free educational assistance. Amend 2008 tax return free   For tax-free educational assistance received in 2013, reduce the qualified educational expenses for each academic period by the amount of tax-free educational assistance allocable to that academic period. Amend 2008 tax return free See Academic period , earlier. Amend 2008 tax return free   Some tax-free educational assistance received after 2013 may be treated as a refund of qualified education expenses paid in 2013. Amend 2008 tax return free This tax-free educational assistance is any tax-free educational assistance received by you or anyone else after 2013 for qualified education expenses paid on behalf of a student in 2013 (or attributable to enrollment at an eligible educational institution during 2013). Amend 2008 tax return free   If this tax-free educational assistance is received after 2013 but before you file your 2013 income tax return, see Refunds received after 2013 but before your income tax return is filed , later. Amend 2008 tax return free If this tax-free educational assistance is received after 2013 and after you file your 2013 income tax return, see Refunds received after 2013 and after your income tax return is filed , later. Amend 2008 tax return free   This tax-free education assistance includes: The tax-free part of scholarships and fellowships (see Tax-Free Scholarships and Fellowships in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Pell grants (see Pell Grants and Other Title IV Need-Based Education Grants in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Employer-provided educational assistance (see chapter 11, Employer-Provided Educational Assistance ), Veterans' educational assistance (see Veterans' Benefits in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), and Any other nontaxable (tax-free) payments (other than gifts or inheritances) received as educational assistance. Amend 2008 tax return free Generally, any scholarship or fellowship is treated as tax free. Amend 2008 tax return free However, a scholarship or fellowship is not treated as tax free to the extent the student includes it in gross income (if the student is required to file a tax return for the year the scholarship or fellowship is received) and either of the following is true. Amend 2008 tax return free The scholarship or fellowship (or any part of it) must be applied (by its terms) to expenses (such as room and board) other than qualified education expenses as defined in Qualified education expenses in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions. Amend 2008 tax return free The scholarship or fellowship (or any part of it) may be applied (by its terms) to expenses (such as room and board) other than qualified education expenses as defined in Qualified education expenses in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions. Amend 2008 tax return free You may be able to increase the combined value of an education credit and certain educational assistance if the student includes some or all of the educational assistance in income in the year it is received. Amend 2008 tax return free For details, see Adjustments to Qualified Education Expenses in chapters 2 and 3. Amend 2008 tax return free Refunds. Amend 2008 tax return free   A refund of qualified education expenses may reduce adjusted qualified education expenses for the tax year or require repayment (recapture) of a credit claimed in an earlier year. Amend 2008 tax return free Some tax-free educational assistance received after 2013 may be treated as a refund. Amend 2008 tax return free See Tax-free educational assistance , earlier. Amend 2008 tax return free Refunds received in 2013. Amend 2008 tax return free   For each student, figure the adjusted qualified education expenses for 2013 by adding all the qualified education expenses for 2013 and subtracting any refunds of those expenses received from the eligible educational institution during 2013. Amend 2008 tax return free Refunds received after 2013 but before your income tax return is filed. Amend 2008 tax return free   If anyone receives a refund after 2013 of qualified education expenses paid on behalf of a student in 2013 and the refund is paid before you file an income tax return for 2013, the amount of qualified education expenses for 2013 is reduced by the amount of the refund. Amend 2008 tax return free Refunds received after 2013 and after your income tax return is filed. Amend 2008 tax return free   If anyone receives a refund after 2013 of qualified education expenses paid on behalf of a student in 2013 and the refund is paid after you file an income tax return for 2013, you may need to repay some or all of the credit. Amend 2008 tax return free See Credit recapture , later. Amend 2008 tax return free Coordination with Coverdell education savings accounts and qualified tuition programs. Amend 2008 tax return free   Reduce your qualified education expenses by any qualified education expenses used to figure the exclusion from gross income of (a) interest received under an education savings bond program, or (b) any distribution from a Coverdell education savings account or qualified tuition program (QTP). Amend 2008 tax return free For a QTP, this applies only to the amount of tax-free earnings that were distributed, not to the recovery of contributions to the program. Amend 2008 tax return free Credit recapture. Amend 2008 tax return free    If any tax-free educational assistance for the qualified education expenses paid in 2013 or any refund of your qualified education expenses paid in 2013 is received after you file your 2013 income tax return, you must recapture (repay) any excess credit. Amend 2008 tax return free You do this by refiguring the amount of your adjusted qualified education expenses for 2013 by reducing that amount by the amount of the refund or tax-free educational assistance. Amend 2008 tax return free You then refigure your education credit(s) for 2013 and figure the amount by which your 2013 tax liability would have increased if you had claimed the refigured credit(s). Amend 2008 tax return free Include that amount as an additional tax for the year the refund or tax-free assistance was received. Amend 2008 tax return free Example. Amend 2008 tax return free   You paid $3,500 of qualified education expenses in December 2013, and your child began college in January 2014. Amend 2008 tax return free You claimed $3,500 as the tuition and fees deduction on your 2013 income tax return. Amend 2008 tax return free The reduction reduced your taxable income by $3,500. Amend 2008 tax return free Also, you claimed no tax credits in 2013. Amend 2008 tax return free Your child withdrew from two classes and you received a refund of $2,000 in 2014 after you filed your 2013 tax return. Amend 2008 tax return free Refigure your 2013 tuition and fees deduction using $1,500 of qualified education expense instead of the $3,500. Amend 2008 tax return free The refigured tuition and fees deduction is $1,500. Amend 2008 tax return free Do not file an amended 2013 tax return to account for this adjustment. Amend 2008 tax return free Instead, include the difference of $2,000 (but only to the extent this difference would have increased your 2013 tax) on the “Other income” line of your 2014 Form 1040. Amend 2008 tax return free You cannot file Form 1040A for 2014. Amend 2008 tax return free Amounts that do not reduce qualified education expenses. Amend 2008 tax return free   Do not reduce qualified education expenses by amounts paid with funds the student receives as: Payment for services, such as wages, A loan, A gift, An inheritance, or A withdrawal from the student's personal savings. Amend 2008 tax return free   Do not reduce the qualified education expenses by any scholarship or fellowship reported as income on the student's tax return in the following situations. Amend 2008 tax return free The use of the money is restricted, by the terms of the scholarship or fellowship, to costs of attendance (such as room and board) other than qualified education expenses as defined in Qualified education expenses in chapter 1, Scholarships, Fellowships, Grants, and Tuition Restrictions. Amend 2008 tax return free The use of the money is not restricted. Amend 2008 tax return free Example 1. Amend 2008 tax return free In 2013, Jackie paid $3,000 for tuition and $5,000 for room and board at University X. Amend 2008 tax return free The university did not require her to pay any fees in addition to her tuition in order to enroll in or attend classes. Amend 2008 tax return free To help pay these costs, she was awarded a $2,000 scholarship and a $4,000 student loan. Amend 2008 tax return free The terms of the scholarship state that it can be used to pay any of Jackie's college expenses. Amend 2008 tax return free University X applies the $2,000 scholarship against Jackie's $8,000 total bill, and Jackie pays the $6,000 balance of her bill from University X with a combination of her student loan and her savings. Amend 2008 tax return free Jackie does not report any portion of the scholarship as income on her tax return. Amend 2008 tax return free In figuring the tuition and fees deduction, Jackie must reduce her qualified education expenses by the amount of the scholarship ($2,000) because she excluded the entire scholarship from her income. Amend 2008 tax return free The student loan is not tax-free educational assistance, so she does not need to reduce her qualified expenses by any part of the loan proceeds. Amend 2008 tax return free Jackie is treated as having paid $1,000 in qualified education expenses ($3,000 tuition – $2,000 scholarship) in 2013. Amend 2008 tax return free Example 2. Amend 2008 tax return free The facts are the same as in Example 1, except that Jackie reports her entire scholarship as income on her tax return. Amend 2008 tax return free Because Jackie reported the entire $2,000 scholarship in her income, she does not need to reduce her qualified education expenses. Amend 2008 tax return free Jackie is treated as having paid $3,000 in qualified education expenses. Amend 2008 tax return free Expenses That Do Not Qualify Qualified education expenses do not include amounts paid for: Insurance, Medical expenses (including student health fees), Room and board, Transportation, or Similar personal, living, or family expenses. Amend 2008 tax return free This is true even if the amount must be paid to the institution as a condition of enrollment or attendance. Amend 2008 tax return free Sports, games, hobbies, and noncredit courses. Amend 2008 tax return free   Qualified education expenses generally do not include expenses that relate to any course of instruction or other education that involves sports, games or hobbies, or any noncredit course. Amend 2008 tax return free However, if the course of instruction or other education is part of the student's degree program, these expenses can qualify. Amend 2008 tax return free Comprehensive or bundled fees. Amend 2008 tax return free   Some eligible educational institutions combine all of their fees for an academic period into one amount. Amend 2008 tax return free If you do not receive, or do not have access to, an allocation showing how much you paid for qualified education expenses and how much you paid for personal expenses, such as those listed above, contact the institution. Amend 2008 tax return free The institution is required to make this allocation and provide you with the amount you paid (or were billed) for qualified education expenses on Form 1098-T. Amend 2008 tax return free See Figuring the Deduction , later, for more information about Form 1098-T. Amend 2008 tax return free Who Is an Eligible Student For purposes of the tuition and fees deduction, an eligible student is a student who is enrolled in one or more courses at an eligible educational institution (as defined under Qualified Education Expenses , earlier). Amend 2008 tax return free Who Can Claim a Dependent's Expenses Generally, in order to claim the tuition and fees deduction for qualified education expenses for a dependent, you must: Have paid the expenses, and Claim an exemption for the student as a dependent. Amend 2008 tax return free For you to be able to deduct qualified education expenses for your dependent, you must claim an exemption for that individual. Amend 2008 tax return free You do this by listing your dependent's name and other required information on Form 1040 (or Form 1040A), line 6c. Amend 2008 tax return free IF your dependent is an eligible student and you. Amend 2008 tax return free . Amend 2008 tax return free . Amend 2008 tax return free AND. Amend 2008 tax return free . Amend 2008 tax return free . Amend 2008 tax return free THEN. Amend 2008 tax return free . Amend 2008 tax return free . Amend 2008 tax return free claim an exemption for your dependent you paid all qualified education expenses for your dependent only you can deduct the qualified education expenses that you paid. Amend 2008 tax return free Your dependent cannot take a deduction. Amend 2008 tax return free claim an exemption for your dependent your dependent paid all qualified education expenses no one is allowed to take a deduction. Amend 2008 tax return free do not claim an exemption for your dependent you paid all qualified education expenses no one is allowed to take a deduction. Amend 2008 tax return free do not claim an exemption for your dependent your dependent paid all qualified education expenses no one is allowed to take a deduction. Amend 2008 tax return free Expenses paid by dependent. Amend 2008 tax return free   If your dependent pays qualified education expenses, no one can take a tuition and fees deduction for those expenses. Amend 2008 tax return free Neither you nor your dependent can deduct the expenses. Amend 2008 tax return free For purposes of the tuition and fees deduction, you are not treated as paying any expenses actually paid by a dependent for whom you or anyone other than the dependent can claim an exemption. Amend 2008 tax return free This rule applies even if you do not claim an exemption for your dependent on your tax return. Amend 2008 tax return free Expenses paid by you. Amend 2008 tax return free   If you claim an exemption for a dependent who is an eligible student, only you can include any expenses you paid when figuring your tuition and fees deduction. Amend 2008 tax return free Expenses paid under divorce decree. Amend 2008 tax return free   Qualified education expenses paid directly to an eligible educational institution for a student under a court-approved divorce decree are treated as paid by the student. Amend 2008 tax return free Only the student would be eligible to take a tuition and fees deduction for that payment, and then only if no one else could claim an exemption for the student. Amend 2008 tax return free Expenses paid by others. Amend 2008 tax return free   Someone other than you, your spouse, or your dependent (such as a relative or former spouse) may make a payment directly to an eligible educational institution to pay for an eligible student's qualified education expenses. Amend 2008 tax return free In this case, the student is treated as receiving the payment from the other person and, in turn, paying the institution. Amend 2008 tax return free If you claim, or can claim, an exemption on your tax return for the student, you are not considered to have paid the expenses and you cannot deduct them. Amend 2008 tax return free If the student is not a dependent, only the student can deduct payments made directly to the institution for his or her expenses. Amend 2008 tax return free If the student is your dependent, no one can deduct the payments. Amend 2008 tax return free Example. Amend 2008 tax return free In 2013, Ms. Amend 2008 tax return free Baker makes a payment directly to an eligible educational institution for her grandson Dan's qualified education expenses. Amend 2008 tax return free For purposes of deducting tuition and fees, Dan is treated as receiving the money from his grandmother and, in turn, paying his own qualified education expenses. Amend 2008 tax return free If an exemption cannot be claimed for Dan on anyone else's tax return, only Dan can claim a tuition and fees deduction for his grandmother's payment. Amend 2008 tax return free If someone else can claim an exemption for Dan, no one will be allowed a deduction for Ms. Amend 2008 tax return free Baker's payment. Amend 2008 tax return free Tuition reduction. Amend 2008 tax return free   When an eligible educational institution provides a reduction in tuition to an employee of the institution (or spouse or dependent child of an employee), the amount of the reduction may or may not be taxable. Amend 2008 tax return free If it is taxable, the employee is treated as receiving a payment of that amount and, in turn, paying it to the educational institution on behalf of the student. Amend 2008 tax return free For more information on tuition reductions, see Qualified Tuition Reduction , in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions. Amend 2008 tax return free Figuring the Deduction The maximum tuition and fees deduction in 2013 is $4,000, $2,000, or $0, depending on the amount of your MAGI. Amend 2008 tax return free See Effect of the Amount of Your Income on the Amount of Your Deduction , later. Amend 2008 tax return free Form 1098-T. Amend 2008 tax return free   To help you figure your tuition and fees deduction, the student should receive Form 1098-T (see Appendix A for a completed example of Form 1098-T). Amend 2008 tax return free Generally, an eligible educational institution (such as a college or university) must send Form 1098-T (or acceptable substitute) to each enrolled student by January 31, 2014. Amend 2008 tax return free An institution may choose to report either payments received (box 1), or amounts billed (box 2), for qualified education expenses. Amend 2008 tax return free However, the amount in boxes 1 and 2 of Form 1098-T might be different than what you paid. Amend 2008 tax return free When figuring the deduction, use only the amounts you paid in 2013 for qualified education expenses. Amend 2008 tax return free   In addition, Form 1098-T should give other information for that institution, such as adjustments made for prior years, the amount of scholarships or grants, reimbursements or refunds, and whether the student was enrolled at least half-time or was a graduate student. Amend 2008 tax return free    The eligible educational institution may ask for a completed Form W-9S or similar statement to obtain the student's name, address, and taxpayer identification number. Amend 2008 tax return free Effect of the Amount of Your Income on the Amount of Your Deduction If your MAGI is not more than $65,000 ($130,000 if you are married filing jointly), your maximum tuition and fees deduction is $4,000. Amend 2008 tax return free If your MAGI is larger than $65,000 ($130,000 if you are married filing jointly), but is not more than $80,000 ($160,000 if you are married filing jointly), your maximum deduction is $2,000. Amend 2008 tax return free No tuition and fees deduction is allowed if your MAGI is larger than $80,000 ($160,000 if you are married filing jointly). Amend 2008 tax return free Modified adjusted gross income (MAGI). Amend 2008 tax return free   For most taxpayers, MAGI is adjusted gross income (AGI) as figured on their federal income tax return before subtracting any deduction for tuition and fees. Amend 2008 tax return free However, as discussed below, there may be other modifications. Amend 2008 tax return free MAGI when using Form 1040A. Amend 2008 tax return free   If you file Form 1040A, your MAGI is the AGI on line 22 of that form, figured without taking into account any amount on line 19 (tuition and fees deduction). Amend 2008 tax return free MAGI when using Form 1040. Amend 2008 tax return free   If you file Form 1040, your MAGI is the AGI on line 38 of that form, figured without taking into account any amount on line 34 (tuition and fees deduction) or line 35 (domestic production activities deduction), and modified by adding back any: Foreign earned income exclusion, Foreign housing exclusion, Foreign housing deduction, Exclusion of income by bona fide residents of American Samoa, and Exclusion of income by bona fide residents of Puerto Rico. Amend 2008 tax return free   Table 6-2 shows how the amount of your MAGI can affect your tuition and fees deduction. Amend 2008 tax return free   You can use Worksheet 6-1. Amend 2008 tax return free MAGI for the Tuition and Fees Deduction , later, to figure your MAGI. Amend 2008 tax return free Table 6-2. Amend 2008 tax return free Effect of MAGI on Maximum Tuition and Fees Deduction IF your filing status is. Amend 2008 tax return free . Amend 2008 tax return free . Amend 2008 tax return free AND your MAGI is. Amend 2008 tax return free . Amend 2008 tax return free . Amend 2008 tax return free THEN your maximum tuition and fees deduction is. Amend 2008 tax return free . Amend 2008 tax return free . Amend 2008 tax return free single,  head of household, or qualifying widow(er) not more than $65,000 $4,000. Amend 2008 tax return free more than $65,000  but not more than $80,000 $2,000. Amend 2008 tax return free more than $80,000 $0. Amend 2008 tax return free married filing joint return not more than $130,000 $4,000. Amend 2008 tax return free more than $130,000 but not more than $160,000 $2,000. Amend 2008 tax return free more than $160,000 $0. Amend 2008 tax return free Claiming the Deduction You claim a tuition and fees deduction by completing Form 8917 and submitting it with your Form 1040 or Form 1040A. Amend 2008 tax return free Enter the deduction on Form 1040, line 34, or Form 1040A, line 19. Amend 2008 tax return free A filled-in Form 8917 is shown at the end of this chapter. Amend 2008 tax return free Illustrated Example Tim Pfister, a single taxpayer, enrolled full-time at a local college to earn a degree in engineering. Amend 2008 tax return free This is the first year of his postsecondary education. Amend 2008 tax return free During 2013, he paid $3,600 for his qualified 2013 tuition expense. Amend 2008 tax return free Both he and the college meet all of the requirements for the tuition and fees deduction. Amend 2008 tax return free Tim's total income (Form 1040, line 22) and MAGI are $26,000. Amend 2008 tax return free He figures his deduction of $3,600 as shown on Form 8917, later. Amend 2008 tax return free Worksheet 6-1. Amend 2008 tax return free MAGI for the Tuition and Fees Deduction Use this worksheet if you are filing Form 2555, 2555-EZ, or 4563, or you are excluding income from sources within Puerto Rico. Amend 2008 tax return free Before using this worksheet, you must complete Form 1040, lines 7 through 33, and figure any amount to be entered on the dotted line next to line 36. Amend 2008 tax return free 1. Amend 2008 tax return free Enter the amount from Form 1040, line 22   1. Amend 2008 tax return free         2. Amend 2008 tax return free Enter the total from Form 1040, lines 23 through 33   2. Amend 2008 tax return free               3. Amend 2008 tax return free Enter the total of any amounts entered on the dotted line next to Form 1040, line 36   3. Amend 2008 tax return free               4. Amend 2008 tax return free Add lines 2 and 3   4. Amend 2008 tax return free         5. Amend 2008 tax return free Subtract line 4 from line 1   5. Amend 2008 tax return free         6. Amend 2008 tax return free Enter your foreign earned income exclusion and/or housing  exclusion (Form 2555, line 45, or Form 2555-EZ, line 18)   6. Amend 2008 tax return free         7. Amend 2008 tax return free Enter your foreign housing deduction (Form 2555, line 50)   7. Amend 2008 tax return free         8. Amend 2008 tax return free Enter the amount of income from Puerto Rico you are excluding   8. Amend 2008 tax return free         9. Amend 2008 tax return free Enter the amount of income from American Samoa you are  excluding (Form 4563, line 15)   9. Amend 2008 tax return free         10. Amend 2008 tax return free Add lines 5 through 9. Amend 2008 tax return free This is your modified adjusted gross income   10. Amend 2008 tax return free     Note. Amend 2008 tax return free If the amount on line 10 is more than $80,000 ($160,000 if married filing jointly),  you cannot take the deduction for tuition and fees. Amend 2008 tax return free       This image is too large to be displayed in the current screen. Amend 2008 tax return free Please click the link to view the image. 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