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File Free State Tax

Free Tax Act 2011File Taxes OnlineFree Online State And Federal Tax FilingFederal Income Tax Instructions 1040ezCan You E File An Amended ReturnFree Tax HelpHow Do I File A Amended Tax ReturnMilitary TurbotaxAmend My ReturnDownload Free Tax SoftwareFile 2010 Taxes With TurbotaxPrintable Tax Form 1040Myfreetaxes 2013Military Tax Return CalculatorPartnership Tax SoftwareIrs 1040ez FormEfile Tax Returns1040nrRevise Tax ReturnAmend 2011 Tax Return Online1040 Easy FormFree Tax Calculator 2012Amend A Tax ReturnEz Worksheet Line F1040nr Tax ReturnsAmend 2011 Tax Return OnlineTaxes For StudentsFree Tax Software For 2012Taxslayer Free For MilitaryFree State Efile TaxesHow To Do An Amendment On My Tax ReturnStudent Tax InformationHow To File Your 2012 Tax ReturnForm 1040ezState Tax RatesAmend 2009 Tax Return Online FreeElderly Filing Income TaxFree 1040 Ez FormH&r Block LoginIrsfreefile

File Free State Tax

File free state tax Index A Accrued leave payment Disability retirement and, Accrued leave payment. File free state tax Assistance (see Tax help) C Care Dependent care benefits, Dependent Care Benefits Child and dependent care expenses, Child and Dependent Care Credit Compensation for permanent loss or disfigurement, Other Payments Credit for the elderly or the disabled, Credit for the Elderly or the Disabled D Damages, physical injury or sickness, Other Payments Dependent care assistance, Dependent Care Benefits Disability Pensions, Disability Pensions Disability benefits, no-fault car insurance policy, Other Payments Disability pensions, Disability Pensions E Exclusion from income Employer-provided dependent care benefits, Exclusion or deduction. File free state tax F Form W-2 Dependent care benefits, Statement for employee. File free state tax Free tax services, Free help with your tax return. File free state tax H Help (see Tax help) I Impairment-related work expenses Definition, Impairment-related expenses defined. File free state tax Impairment–related work expenses, Impairment-Related Work Expenses Income, Income Compensation for permanent loss or disfigurement, Other Payments Dependent care assistance, Dependent Care Benefits Disability pensions, Disability Pensions Long-term care insurance, Long-Term Care Insurance Military and government disability pensions, Military and Government Disability Pensions No-fault car insurance policy disability benefits, Other Payments Physical injury or sickness damages, Other Payments Social security and railroad retirement benefits, Social Security and Railroad Retirement Benefits Supplemental security income (SSI) payments, Supplemental security income (SSI) payments. File free state tax VA disability benefits, VA disability benefits. File free state tax Welfare fund benefits, Other Payments Workers compensation, Other Payments Itemized deductions, Itemized Deductions Impairment-related work expenses, Impairment-Related Work Expenses Medical expenses, Medical Expenses L Long-term care insurance, Long-Term Care Insurance M Medical expenses, Medical Expenses Military and government disability pensions, Military and Government Disability Pensions N No-fault car insurance policy disability benefits, Other Payments P Pensions Disability pensions, Disability Pensions Physical injury or sickness damages, Other Payments Profit-sharing plan, Retirement and profit-sharing plans. File free state tax Publications (see Tax help) S Social security and railroad retirement benefits, Social Security and Railroad Retirement Benefits Supplemental security income (SSI) payments, Supplemental security income (SSI) payments. File free state tax T Tax credits, Tax Credits Child and dependent care credit, Child and Dependent Care Credit Credit for the elderly or the disabled, Credit for the Elderly or the Disabled Tax help, How To Get Tax Help TTY/TDD information, How To Get Tax Help V VA disability benefits, VA disability benefits. File free state tax W Welfare fund benefits, Other Payments Workers compensation, Other Payments Prev  Up     Home   More Online Publications
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SOI Bulletin (Publication 1136)

Index of SOI Bulletin Articles, by Topic

Articles and Data Releases by Year and Season

2014 Winter Spring    
2013 Winter Spring Summer Fall
2012 Winter Spring Summer Fall
2011 Winter Spring Summer Fall
2010 Winter Spring Summer Fall
2009 Winter Spring Summer Fall
2008 Winter Spring Summer Fall
2007 Winter Spring Summer Fall
2006 Winter Spring Summer Fall
2005 Winter Spring Summer Fall
2004 Winter Spring Summer Fall
2003 Winter Spring Summer Fall
2002 Winter Spring Summer Fall
2001 Winter Spring Summer Fall
2000 Winter Spring Summer Fall
1999 Winter Spring Summer Fall
1998 Winter Spring Summer Fall
1997 Winter Spring Summer Fall
1996 Winter Spring Summer Fall
1995 Winter Spring Summer Fall
1994 Winter Spring Summer Fall
1993 Winter Spring Summer Fall
1992 Winter Spring Summer Fall
1991 Winter Spring Summer Fall
1990 Winter Spring Summer Fall
1989 Winter Spring Summer Fall
1988 Winter Spring Summer Fall
1987 Winter Spring Summer Fall
1986 Winter Spring Summer Fall
1985 Winter Spring Summer Fall
1984 Winter Spring Summer Fall
1983 Winter Spring Summer Fall
1982 Winter Spring Summer Fall
1981 Winter Spring Summer Fall

Historical Tables and Appendix

Tables: 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12 (expanded version), 13 (expanded version), 14a, 14b, 15, 16 (expanded version), 17, 18, 19 , 20, 21, 22a, 22b, 23, 24.

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The File Free State Tax

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