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File State Return

File state return 8. File state return   Paying Tax Through Withholding or Estimated Tax Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Notification of Alien Status Withholding From CompensationWithholding on Wages Withholding on Pensions Withholding on Tip Income Independent Contractors Withholding From Other IncomeTax Withheld on Partnership Income Withholding on Scholarships and Fellowship Grants Income Entitled to Tax Treaty BenefitsStudents, teachers, and researchers. File state return Tax Withheld on Real Property Sales Social Security and Medicare TaxesStudents and Exchange Visitors Agricultural Workers Self-Employment Tax International Social Security Agreements Estimated Tax Form 1040-ES (NR)Fiscal year. File state return Introduction This chapter discusses how to pay your U. File state return S. File state return income tax as you earn or receive income during the year. File state return In general, the federal income tax is a pay as you go tax. File state return There are two ways to pay as you go. File state return Withholding. File state return If you are an employee, your employer probably withholds income tax from your pay. File state return Tax may also be withheld from certain other income—including pensions, bonuses, commissions, and gambling winnings. File state return In each case, the amount withheld is paid to the U. File state return S. File state return Treasury in your name. File state return Estimated tax. File state return If you do not pay your tax through withholding, or do not pay enough tax that way, you might have to pay estimated tax. File state return People who are in business for themselves generally will have to pay their tax this way. File state return You may have to pay estimated tax if you receive income such as dividends, interest, rent, and royalties. File state return Estimated tax is used to pay not only income tax, but self-employment tax and alternative minimum tax as well. File state return Topics - This chapter discusses: How to notify your employer of your alien status, Income subject to withholding of income tax, Exemptions from withholding, Social security and Medicare taxes, and Estimated tax rules. File state return Useful Items - You may want to see: Publication 515 Withholding of Tax on Nonresident Aliens and Foreign Entities 901 U. File state return S. File state return Tax Treaties Form (and Instructions) W-4 Employee's Withholding Allowance Certificate W-8BEN Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (Individuals) W-8ECI Certificate of Foreign Person's Claim That Income Is Effectively Connected With the Conduct of a Trade or Business in the United States W-9 Request for Taxpayer Identification Number and Certification 1040-ES (NR) U. File state return S. File state return Estimated Tax for Nonresident Alien Individuals 8233 Exemption From Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual 8288-B Application for Withholding Certificate for Dispositions by Foreign Persons of U. File state return S. File state return Real Property Interests 13930 Application for Central Withholding Agreement See chapter 12 for information about getting these publications and forms. File state return Notification of Alien Status You must let your employer know whether you are a resident or a nonresident alien so your employer can withhold the correct amount of tax from your wages. File state return If you are a resident alien under the rules discussed in chapter 1, you must file Form W-9 or a similar statement with your employer. File state return If you are a nonresident alien under those rules, you must furnish to your employer Form 8233 or Form W-8BEN, establishing that you are a foreign person, or Form W-4, establishing that your compensation is subject to graduated withholding at the same rates as resident aliens or U. File state return S. File state return citizens. File state return If you are a resident alien and you receive income other than wages (such as dividends and royalties) from sources within the United States, file Form W-9 or similar statement with the withholding agent (generally, the payer of the income) so the agent will not withhold tax on the income at the 30% (or lower treaty) rate. File state return If you receive this type of income as a nonresident alien, file Form W-8BEN with the withholding agent so that the agent will withhold tax at the 30% (or lower treaty) rate. File state return However, if the income is effectively connected with a U. File state return S. File state return trade or business, file Form W-8ECI instead. File state return Withholding From Compensation The following discussion generally applies only to nonresident aliens. File state return Tax is withheld from resident aliens in the same manner as U. File state return S. File state return citizens. File state return Wages and other compensation paid to a nonresident alien for services performed as an employee are usually subject to graduated withholding at the same rates as resident aliens and U. File state return S. File state return citizens. File state return Therefore, your compensation, unless it is specifically excluded from the term “wages” by law, or is exempt from tax by treaty, is subject to graduated withholding. File state return Withholding on Wages If you are an employee and you receive wages subject to graduated withholding, you will be required to fill out a Form W-4. File state return Also fill out Form W-4 for a scholarship or fellowship grant to the extent it represents payment for past, present, or future services and for which you are not claiming a tax treaty withholding exemption on Form 8233 (discussed later under Income Entitled to Tax Treaty Benefits). File state return These are services you are required to perform as an employee and as a condition of receiving the scholarship or fellowship (or tuition reduction). File state return Nonresident aliens should fill out Form W-4 using the following instructions instead of the instructions on the Form W-4. File state return This is because of the restrictions on a nonresident alien's filing status, the limited number of personal exemptions a nonresident alien is allowed, and because a nonresident alien cannot claim the standard deduction. File state return Enter your social security number (SSN) on line 2. File state return Do not enter an individual taxpayer identification number (ITIN). File state return Check only “Single” marital status on line 3 (regardless of your actual marital status). File state return Claim only one allowance on line 5, unless you are a resident of Canada, Mexico, or South Korea, or a U. File state return S. File state return national. File state return Write “Nonresident Alien” or “NRA” on the dotted line on line 6. File state return You can request additional withholding on line 6 at your option. File state return Do not claim “Exempt” withholding status on line 7. File state return A U. File state return S. File state return national is an individual who, although not a U. File state return S. File state return citizen, owes his or her allegiance to the United States. File state return U. File state return S. File state return nationals include American Samoans, and Northern Mariana Islanders who chose to become U. File state return S. File state return nationals instead of U. File state return S. File state return citizens. File state return See Withholding on Scholarships and Fellowship Grants later, for how to fill out Form W-4 if you receive a U. File state return S. File state return source scholarship or fellowship grant that is not a payment for services. File state return Students and business apprentices from India. File state return   If you are eligible for the benefits of Article 21(2) of the United States-India Income Tax Treaty, you may claim an additional withholding allowance for the standard deduction. File state return You can claim an additional withholding allowance for your spouse only if your spouse will have no gross income for 2013 and cannot be claimed as a dependent on another U. File state return S. File state return taxpayer's 2013 return. File state return You may also claim an additional withholding allowance for each of your dependents not admitted to the United States on “F-2,” “J-2,” or “M-2” visas if they meet the same rules that apply to U. File state return S. File state return citizens. File state return Household employees. File state return   If you work as a household employee, your employer does not have to withhold income tax. File state return However, you may agree to voluntary income tax withholding by filing a Form W-4 with your employer. File state return The agreement goes into effect when your employer accepts the agreement by beginning the withholding. File state return You or your employer may end the agreement by letting the other know in writing. File state return Agricultural workers. File state return   If you are an agricultural worker on an H-2A visa, your employer does not have to withhold income tax. File state return However, your employer will withhold income tax only if you and your employer agree to withhold. File state return In that case, you must provide your employer with a properly completed Form W-4. File state return You can find more information about not having tax withheld at www. File state return irs. File state return gov/Individuals/International-Taxpayers/Foreign-Agricultural-Workers. File state return Wages Exempt From Withholding Wages that are exempt from U. File state return S. File state return income tax under an income tax treaty are generally exempt from withholding. File state return For information on how to claim this exemption from withholding, see Income Entitled to Tax Treaty Benefits , later. File state return Wages paid to aliens who are residents of American Samoa, Canada, Mexico, Puerto Rico, or the U. File state return S. File state return Virgin Islands may be exempt from withholding. File state return The following paragraphs explain these exemptions. File state return Residents of Canada or Mexico engaged in transportation-related employment. File state return   Certain residents of Canada or Mexico who enter or leave the United States at frequent intervals are not subject to withholding on their wages. File state return These persons either: Perform duties in transportation service between the United States and Canada or Mexico, or Perform duties connected to the construction, maintenance, or operation of a waterway, viaduct, dam, or bridge crossed by, or crossing, the boundary between the United States and Canada or the boundary between the United States and Mexico. File state return    This employment is subject to withholding of social security and Medicare taxes unless the services are performed for a railroad. File state return   To qualify for the exemption from withholding during a tax year, a Canadian or Mexican resident must give the employer a statement in duplicate with name, address, and identification number, certifying that the resident: Is not a U. File state return S. File state return citizen or resident, Is a resident of Canada or Mexico, whichever applies, and Expects to perform duties previously described during the tax year in question. File state return   The statement can be in any form, but it must be dated and signed by the employee and must include a written declaration that it is made under the penalties of perjury. File state return Residents of American Samoa and Puerto Rico. File state return   If you are a nonresident alien employee who is a resident of American Samoa or Puerto Rico, wages for services performed in American Samoa or Puerto Rico are generally not subject to withholding unless you are an employee of the United States or any of its agencies in American Samoa or Puerto Rico. File state return Residents of the U. File state return S. File state return Virgin Islands. File state return   Nonresident aliens who are bona fide residents of the U. File state return S Virgin Islands are not subject to withholding of U. File state return S. File state return tax on income earned while temporarily employed in the United States. File state return This is because those persons pay their income tax to the U. File state return S. File state return Virgin Islands. File state return To avoid having tax withheld on income earned in the United States, bona fide residents of the U. File state return S. File state return Virgin Islands should write a letter, in duplicate, to their employers, stating that they are bona fide residents of the U. File state return S. File state return Virgin Islands and expect to pay tax on all income to the U. File state return S. File state return Virgin Islands. File state return Withholding on Pensions If you receive a pension as a result of personal services performed in the United States, the pension income is subject to the 30% (or lower treaty) rate of withholding. File state return You may, however, have tax withheld at graduated rates on the portion of the pension that arises from the performance of services in the United States after December 31, 1986. File state return You must fill out Form W-8BEN and give it to the withholding agent or payer before the income is paid or credited to you. File state return Withholding on Tip Income Tips you receive during the year for services performed in the United States are subject to U. File state return S. File state return income tax. File state return Include them in taxable income. File state return In addition, tips received while working for one employer, amounting to $20 or more in a month, are subject to graduated withholding. File state return Independent Contractors If there is no employee-employer relationship between you and the person for whom you perform services, your compensation is subject to the 30% (or lower treaty) rate of withholding. File state return However, if you are engaged in a trade or business in the United States during the tax year, your compensation for personal services as an independent contractor (independent personal services) may be entirely or partly exempt from withholding if you reach an agreement with the Internal Revenue Service on the amount of withholding required. File state return An agreement that you reach with the IRS regarding withholding from your compensation for independent personal services is effective for payments covered by the agreement after it is agreed to by all parties. File state return You must agree to timely file an income tax return for the current tax year. File state return Central withholding agreements. File state return   If you are a nonresident alien entertainer or athlete performing or participating in athletic events in the United States, you may be able to enter into a withholding agreement with the IRS for reduced withholding provided certain requirements are met. File state return Under no circumstances will such a withholding agreement reduce taxes withheld to less than the anticipated amount of income tax liability. File state return   File Form 13930 and the required attachments with the IRS to request a central withholding agreement. File state return Either you or your authorized representative can file the form. File state return It should be sent to the IRS at least 45 days before the tour begins or the event occurs. File state return Exceptions will be considered on a case by case basis. File state return   For more information on the CWA program, go to www. File state return irs. File state return gov/Individuals/International-Taxpayers/Central-Withholding-Agreements. File state return Final payment exemption. File state return   Your final payment of compensation during the tax year for independent personal services may be entirely or partly exempt from withholding. File state return This exemption is available only once during your tax year and applies to a maximum of $5,000 of compensation. File state return To obtain this exemption, you or your agent must give the following statements and information to the Commissioner or his delegate. File state return A statement by each withholding agent from whom you have received gross income effectively connected with a trade or business in the United States during the tax year, showing the amount of income paid and the tax withheld. File state return Each statement must be signed by the withholding agent and verified by a declaration that it is made under penalties of perjury. File state return A statement by the withholding agent from whom you expect to receive the final payment of compensation, showing the amount of the payment and the amount of tax that would be withheld if a final payment exemption were not granted. File state return This statement must also be signed by the withholding agent and verified by a declaration that it is made under penalties of perjury. File state return A statement by you that you do not intend to receive any other income effectively connected with a trade or business in the United States during the current tax year. File state return The amount of tax that has been withheld or paid under any other provision of the Internal Revenue Code or regulations for any income effectively connected with your trade or business in the United States during the current tax year. File state return The amount of your outstanding tax liabilities, if any, including interest and penalties, from the current tax year or prior tax periods. File state return Any provision of an income tax treaty under which a partial or complete exemption from withholding may be claimed, the country of your residence, and a statement of sufficient facts to justify an exemption under the treaty. File state return A statement signed by you, and verified by a declaration that it is made under penalties of perjury, that all the information given is true and that to your knowledge no relevant information has been omitted. File state return   If satisfied with the information, the IRS will determine the amount of your tentative income tax for the tax year on gross income effectively connected with your trade or business in the United States. File state return Ordinary and necessary business expenses can be taken into account if proven to the satisfaction of the Commissioner or his delegate. File state return   The Commissioner or his delegate will send you a letter, directed to the withholding agent, showing the amount of the final payment of compensation that is exempt from withholding and the amount that can be paid to you because of the exemption. File state return You must give two copies of the letter to the withholding agent and must also attach a copy of the letter to your income tax return for the tax year for which the exemption is effective. File state return Allowance for Personal Exemption Withholding on payments for independent personal services is generally based on the amount of your compensation payment minus the value of one exemption ($3,950 for 2014). File state return To determine the income for independent personal services performed in the United States to which the 30% (or lower treaty) rate will apply, you are allowed one personal exemption if you are not a U. File state return S. File state return national and are not a resident of Canada, Mexico, or South Korea. File state return For purposes of 30% withholding, the exemption is prorated at $10. File state return 82 a day in 2014 for the period that labor or personal services are performed in the United States. File state return To claim an exemption from withholding on the personal exemption amount, fill out the applicable parts of Form 8233 and give it to the withholding agent. File state return Example. File state return Eric Johannsen, who is a resident of Country X worked under a contract with a U. File state return S. File state return firm (not as an employee) in the United States for 100 days during 2014 before returning to his country. File state return He earned $6,000 for the services performed (not considered wages) in the United States. File state return Eric is married and has three dependent children. File state return His wife is not employed and has no income subject to U. File state return S. File state return tax. File state return The amount of the personal exemption to be allowed against the income for his personal services performed within the United States in 2014 is $1,082 (100 days × $10. File state return 82), and withholding at 30% is applied against the balance. File state return Thus, $1,475. File state return 40 in tax is withheld from Eric's earnings (30% of $4,918 ($6,000 − $1,082). File state return U. File state return S. File state return nationals or residents of Canada, Mexico, or South Korea. File state return   If you are a nonresident alien who is a resident of Canada, Mexico, or South Korea, or who is a national of the United States, you are subject to the same 30% withholding on your compensation for independent personal services performed in the United States. File state return However, if you are a U. File state return S. File state return national or a resident of Canada or Mexico, you are allowed the same personal exemptions as U. File state return S. File state return citizens. File state return For the 30% (or lower treaty) rate withholding, you can take $10. File state return 82 per day for each allowable exemption in 2014. File state return If you are a resident of South Korea, you are allowed personal exemptions for yourself and for your spouse and children who live with you in the United States at any time during the tax year. File state return However, the additional exemptions for your spouse and children must be further prorated as explained in chapter 5 under Exemptions . File state return Students and business apprentices from India. File state return   If you are eligible for the benefits of Article 21(2) of the United States-India Income Tax Treaty, you are allowed an exemption for your spouse only if your spouse will have no gross income for 2014 and cannot be claimed as a dependent on another U. File state return S. File state return taxpayer's 2014 return. File state return You are also allowed an exemption for each dependent not admitted to the United States on “F-2,” “J-2,” or “M-2” visas if they meet the same rules that apply to U. File state return S. File state return citizens. File state return For the 30% (or lower treaty rate) withholding on compensation for independent personal services performed in the United States, you are allowed $10. File state return 82 per day for each allowable exemption in 2014. File state return Refund of Taxes Withheld in Error Multi-level marketing. File state return   If you are a distributor for a multi-level marketing company who had taxes withheld in error, file a U. File state return S. File state return income tax return (Form 1040NR, Form 1040NR-EZ, or Form 1120-F) or, if a tax return has already been filed, a claim for refund (Form 1040X or amended Form 1120-F) to recover the amount withheld in error. File state return You must also attach to the U. File state return S. File state return income tax return or claim for refund supporting information that includes, but is not limited to, the following items. File state return A copy of your Form W-2, Form 1042-S, or Form 1099 to prove the amount of taxes withheld. File state return A statement explaining why income reported on your Form W-2, Form 1042-S, or Form 1099 is not subject to U. File state return S. File state return taxation. File state return A statement listing all the dates you entered and left the United States during the taxable year. File state return If the compensation is multi-year compensation, the statement must list all the dates you entered and left the United States during each of the taxable years to which the compensation is attributable. File state return A copy of any documents or records that show the number of days you actually were present in the United States during the years listed. File state return A statement providing: (a) the number of days (or unit of time less than a day, if appropriate) that personal services were performed in the United States in connection with recruiting, training, and supporting your lower-tier distributors; and (b) the total number of days (or unit of time less than a day, if appropriate) that personal services were performed globally in connection with recruiting, training, and supporting your lower-tier distributors. File state return Any further relevant document or record supporting your claim that the taxes were withheld in error. File state return Withholding From Other Income Other income subject to 30% withholding generally includes fixed or determinable income such as interest (other than portfolio interest), dividends, pensions and annuities, and gains from certain sales and exchanges, discussed in chapter 4. File state return It also includes 85% of social security benefits paid to nonresident aliens. File state return Refund of taxes withheld in error on social security benefits paid to resident aliens. File state return   Social security benefits paid to a lawful permanent resident (green card holder) are not subject to 30% withholding. File state return For U. File state return S. File state return income tax purposes, green card holders continue to be resident aliens until their lawful permanent resident status under immigration laws is either taken away or is administratively or judicially determined to have been abandoned. File state return See Green Card Test in chapter 1. File state return If you are a green card holder and tax was withheld in error on your social security benefits because you have a foreign address, the withholding tax is refundable by the Social Security Administration (SSA) or the IRS. File state return SSA will refund taxes erroneously withheld if the refund can be processed during the same calendar year in which the tax was withheld. File state return If SSA cannot refund the taxes withheld, you must file a Form 1040 or 1040A with the Department of the Treasury, Internal Revenue Service Center, Austin, TX 73301 to determine if you are entitled to a refund. File state return You must also attach the following to your Form 1040 or 1040A. File state return A copy of Form SSA-1042S, Social Security Benefit Statement. File state return A copy of the “green card. File state return ” A signed declaration that includes the following statements: The SSA should not have withheld income tax from my social security benefits because I am a U. File state return S. File state return lawful permanent resident and my green card has been neither revoked nor administratively or judicially determined to have been abandoned. File state return I am filing a U. File state return S. File state return income tax return for the tax year as a resident alien reporting all of my worldwide income. File state return I have not claimed benefits for the tax year under an income tax treaty as the resident of a country other than the United States. File state return Other income not subject to withholding of 30% (or lower treaty) rate. File state return   The following income is not subject to withholding at the 30% (or lower treaty) rate if you file Form W-8ECI with the payer of the income. File state return Income (other than compensation) that is effectively connected with your U. File state return S. File state return trade or business. File state return Income from real property that you choose to treat as effectively connected with a U. File state return S. File state return trade or business. File state return See Income From Real Property in chapter 4 for details about this choice. File state return   Special rules for withholding on partnership income, scholarships, and fellowships are explained next. File state return Tax Withheld on Partnership Income If you are a foreign partner in a U. File state return S. File state return or foreign partnership, the partnership will withhold tax on your share of effectively connected taxable income (ECTI) from the partnership. File state return You may be able to reduce your ECTI subject to withholding by certain partner-level deductions. File state return Generally, you must use Form 8804-C for this purpose. File state return See the Instructions for Form 8804-C for more information. File state return The withholding rate on your share of effectively connected income is generally the highest rate of tax specified under section 1 of the Code (39. File state return 6% for 2014). File state return However, the partnership may withhold at the highest rate that applies to a particular type of income allocable to you if you gave the partnership the appropriate documentation. File state return Long-term capital gain is an example of a particular type of income to which the highest tax rate applies. File state return Claim the tax withheld as a credit on your 2014 Form 1040NR. File state return The partnership will give you a statement on Form 8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax, showing the tax withheld. File state return A partnership that is publicly traded will withhold tax on your actual distributions of effectively connected income. File state return In this case the partnership will give you a statement on Form 1042-S, Foreign Person's U. File state return S. File state return Source Income Subject to Withholding. File state return Withholding on Scholarships and Fellowship Grants There is no withholding on a qualified scholarship received by a candidate for a degree. File state return See chapter 3. File state return If you are a nonresident alien student or grantee with an “F,” “J,” “M,” or “Q” visa and you receive a U. File state return S. File state return source grant or scholarship that is not fully exempt, the withholding agent (usually the payer of the scholarship) withholds tax at 14% (or lower treaty rate) of the taxable part of the grant or scholarship that is not a payment for services. File state return However, if you are not a candidate for a degree and the grant does not meet certain requirements, tax will be withheld at the 30% (or lower treaty) rate. File state return Any part of a scholarship or fellowship grant that is a payment for services is subject to graduated withholding as discussed earlier under Withholding on Wages. File state return Alternate Withholding Procedure Your withholding agent may choose to use an alternate procedure by asking you to fill out Form W-4 and the Personal Allowances Worksheet (attached to Form W-4). File state return Use the following instructions instead of the Form W-4 instructions to complete the worksheet. File state return Line A. File state return   Enter the total of the following amounts on line A. File state return Personal exemption. File state return   Include the prorated part of your allowable personal exemption. File state return Figure the amount by multiplying the number of days you expect to be in the United States in 2014 by the daily exemption amount ($10. File state return 82). File state return Expenses. File state return   Include expenses that will be deductible on your return. File state return These include away-from-home expenses (meals, lodging, and transportation), certain state and local income taxes, charitable contributions, and casualty losses, discussed earlier under Itemized Deductions in chapter 5. File state return They also include business expenses, moving expenses, and the IRA deduction discussed under Deductions in chapter 5. File state return Nontaxable grant or scholarship. File state return   Include the part of your grant or scholarship that is not taxable under U. File state return S. File state return law or under a tax treaty. File state return Line B. File state return   Enter -0- unless the following paragraph applies to you. File state return   If you are a student who qualifies under Article 21(2) of the United States-India Income Tax Treaty, and you are not claiming deductions for away-from-home expenses or other itemized deductions (discussed earlier), enter the standard deduction on line B. File state return The standard deduction amount for 2013 is $6,100. File state return Lines C and D. File state return   Enter -0- on both lines unless the following paragraphs apply to you. File state return   If you are a resident of Canada, Mexico, South Korea, or a U. File state return S. File state return national, an additional daily exemption amount may be allowed for your spouse and each of your dependents. File state return   If you are a resident of India who is eligible for the benefits of Article 21(2) of the United States-India Income Tax Treaty, you can claim an additional daily exemption amount for your spouse only if your spouse will have no gross income for 2014 and cannot be claimed as a dependent on another U. File state return S. File state return taxpayer's 2014 return. File state return You can also claim an additional amount for each of your dependents not admitted to the United States on “F-2,” “J-2,” or “M-2” visas if they meet the same rules that apply to U. File state return S. File state return citizens. File state return   Enter any additional amount for your spouse on line C. File state return Enter any additional amount for your dependents on line D. File state return Lines E, F, and G. File state return   No entries should be made on lines E, F, and G. File state return Line H. File state return   Add the amounts on lines A through D and enter the total on line H. File state return Form W-4. File state return   Complete lines 1 through 4 of Form W-4. File state return Sign and date the form and give it with the Personal Allowances Worksheet to your withholding agent. File state return   If you file a Form W-4 to reduce or eliminate the withholding on your scholarship or grant, you must file an annual U. File state return S. File state return income tax return to be allowed the exemptions and deductions you claimed on that form. File state return If you are in the United States during more than one tax year, you must attach a statement to your yearly Form W-4 indicating that you have filed a U. File state return S. File state return income tax return for the previous year. File state return If you have not been in the United States long enough to be required to file a return, you must attach a statement to your Form W-4 saying you will file a U. File state return S. File state return income tax return when required. File state return After the withholding agent has accepted your Form W-4, tax will be withheld on your scholarship or grant at the graduated rates that apply to wages. File state return The gross amount of the income is reduced by the amount on line H of the worksheet and the withholding tax is figured on the remainder. File state return You will receive a Form 1042-S from the withholding agent (usually the payer of your grant) showing the gross amount of your taxable scholarship or fellowship grant less the withholding allowance amount, the tax rate, and the amount of tax withheld. File state return Use this form to prepare your annual U. File state return S. File state return income tax return. File state return Income Entitled to Tax Treaty Benefits If a tax treaty between the United States and your country provides an exemption from, or a reduced rate of, tax for certain items of income, you should notify the payor of the income (the withholding agent) of your foreign status to claim a tax treaty withholding exemption. File state return Generally, you do this by filing either Form W-8BEN or Form 8233 with the withholding agent. File state return File Form W-8BEN for income that is not personal services income. File state return File Form 8233 for personal services income as discussed next. File state return Employees and independent contractors. File state return   If you perform personal services as an employee or as an independent contractor and you can claim an exemption from withholding on that personal service income because of a tax treaty, give Form 8233 to each withholding agent from whom amounts will be received. File state return   Even if you submit Form 8233, the withholding agent may have to withhold tax from your income. File state return This is because the factors on which the treaty exemption is based may not be determinable until after the close of the tax year. File state return In this case, you must file Form 1040NR (or Form 1040NR-EZ if you qualify) to recover any overwithheld tax and to provide the IRS with proof that you are entitled to the treaty exemption. File state return Students, teachers, and researchers. File state return   Students, teachers, and researchers must attach the appropriate statement shown in Appendix A (for students) or Appendix B (for teachers and researchers) at the end of this publication to the Form 8233 and give it to the withholding agent. File state return For treaties not listed in the appendices, attach a statement in a format similar to those for other treaties. File state return   If you received a scholarship or fellowship and personal services income from the same withholding agent, use Form 8233 to claim an exemption from withholding based on a tax treaty for both types of income. File state return Special events and promotions. File state return   Withholding at the full 30% rate is required for payments made to a nonresident alien or foreign corporation for gate receipts (or television or other receipts) from rock music festivals, boxing promotions, and other entertainment or sporting events, unless the withholding agent has been specifically advised otherwise by letter from the IRS. File state return Form 13930 is used to request a reduction in withholding. File state return Withholding may be required even if the income may be exempt from taxation by provisions of a tax treaty. File state return One reason for this is that the partial or complete exemption is usually based on factors that cannot be determined until after the close of the tax year. File state return You will be required to pay U. File state return S. File state return tax, at the time of your departure from the United States, on any income for which you incorrectly claimed a treaty exemption. File state return For more details on treaty provisions that apply to compensation, see Publication 901. File state return Tax Withheld on Real Property Sales If you are a nonresident alien and you dispose of a U. File state return S. File state return real property interest, the transferee (buyer) of the property generally must withhold a tax equal to 10% of the amount realized on the disposition. File state return A distribution by a qualified investment entity to a nonresident alien shareholder that is treated as gain from the sale or exchange of a U. File state return S. File state return real property interest by the shareholder is subject to withholding at 35%. File state return Withholding is also required on certain distributions and other transactions by domestic or foreign corporations, partnerships, trusts, and estates. File state return These rules are covered in Publication 515. File state return For information on the tax treatment of dispositions of U. File state return S. File state return real property interests, see Real Property Gain or Loss in chapter 4. File state return If you are a partner in a domestic partnership, and the partnership disposes of a U. File state return S. File state return real property interest at a gain, the partnership will withhold tax on the amount of gain allocable to its foreign partners. File state return Your share of the income and tax withheld will be reported to you on Form 8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax, or Form 1042-S, Foreign Person's U. File state return S. File state return Source Income Subject to Withholding (in the case of a publicly traded partnership). File state return Withholding is not required in the following situations. File state return The property is acquired by the buyer for use as a residence and the amount realized (sales price) is not more than $300,000. File state return The property disposed of is an interest in a domestic corporation if any class of stock of the corporation is regularly traded on an established securities market. File state return However, this exception does not apply to certain dispositions of substantial amounts of non-publicly traded interests in publicly traded corporations. File state return The property disposed of is an interest in a U. File state return S. File state return corporation that is not regularly traded on an established market and you (the seller) give the buyer a copy of a statement issued by the corporation certifying that the interest is not a U. File state return S. File state return real property interest. File state return You (the seller) give the buyer a certification stating, under penalties of perjury, that you are not a foreign person, and containing your name, U. File state return S. File state return taxpayer identification number, and home address. File state return You can give the certification to a qualified substitute. File state return The qualified substitute gives the buyer a statement, under penalties of perjury, that the certification is in the possession of the qualified substitute. File state return For this purpose, a qualified substitute is (a) the person (including any attorney or title company) responsible for closing the transaction, other than your agent, and (b) the buyer's agent. File state return The buyer receives a withholding certificate from the Internal Revenue Service. File state return You give the buyer written notice that you are not required to recognize any gain or loss on the transfer because of a nonrecognition provision in the Internal Revenue Code or a provision in a U. File state return S. File state return tax treaty. File state return The buyer must file a copy of the notice with the Ogden Service Center, P. File state return O. File state return Box 409101, Ogden, UT 84409. File state return You must verify the notice as true and sign it under penalties of perjury. File state return The notice must contain the following information. File state return A statement that the notice is a notice of nonrecognition under regulation section 1. File state return 1445-2(d)(2). File state return Your name, taxpayer identification number, and home address. File state return A statement that you are not required to recognize any gain or loss on the transfer. File state return A brief description of the transfer. File state return A brief summary of the law and facts supporting your claim that recognition of gain or loss is not required. File state return You may not give the buyer a written notice for any of the following transfers: the sale of your main home on which you exclude gain, a like-kind exchange that does not qualify for nonrecognition treatment in its entirety, or a deferred like-kind exchange that has not been completed at the time the buyer must file Form 8288. File state return Instead, a withholding certificate (described next) must be obtained. File state return The amount you realize on the transfer of a U. File state return S. File state return real property interest is zero. File state return The property is acquired by the United States, a U. File state return S. File state return state or possession, a political subdivision, or the District of Columbia. File state return The distribution is from a domestically controlled qualified investment entity (QIE) and is treated as a distribution of a U. File state return S. File state return real property interest only because an interest in the entity was disposed of in an applicable wash sale transaction. File state return For the definition of a QIE, see Qualified investment entities under Real Property Gain or Loss, earlier. File state return See Wash sale under Real Property Gain or Loss in chapter 4. File state return The certifications in (3) and (4) must be disregarded by the buyer if the buyer or qualified substitute has actual knowledge, or receives notice from a seller's or buyer's agent (or substitute), that they are false. File state return This also applies to the qualified substitute's statement under (4). File state return Withholding certificates. File state return   The tax required to be withheld on a disposition can be reduced or eliminated under a withholding certificate issued by the IRS. File state return Either you or the buyer can request a withholding certificate. File state return   A withholding certificate can be issued due to any of the following. File state return The IRS determines that reduced withholding is appropriate because either: The amount required to be withheld would be more than your maximum tax liability, or Withholding of the reduced amount would not jeopardize collection of the tax. File state return All of your realized gain is exempt from U. File state return S. File state return tax. File state return You or the buyer enters into an agreement for the payment of tax providing security for the tax liability. File state return   Get Publication 515 and Form 8288-B for information on procedures to request a withholding certificate. File state return Credit for tax withheld. File state return   The buyer must report and pay over the withheld tax within 20 days after the transfer using Form 8288, U. File state return S. File state return Withholding Tax Return for Dispositions by Foreign Persons of U. File state return S. File state return Real Property Interests. File state return This form is filed with the IRS with copies A and B of Form 8288-A, Statement of Withholding on Dispositions by Foreign Persons of U. File state return S. File state return Real Property Interests. File state return Copy B of this statement will be stamped received by the IRS and returned to you (the seller) if the statement is complete and includes your taxpayer identification number (TIN). File state return You must file Copy B with your tax return to take credit for the tax withheld. File state return   A stamped copy of Form 8288-A will not be provided to you if your TIN is not included on that form. File state return The IRS will send you a letter requesting the TIN and providing instructions for how to get a TIN. File state return When you provide the IRS with a TIN, the IRS will provide you with a stamped Copy B of Form 8288-A. File state return Social Security and Medicare Taxes If you work as an employee in the United States, you must pay social security and Medicare taxes in most cases. File state return Your payments of these taxes contribute to your coverage under the U. File state return S. File state return social security system. File state return Social security coverage provides retirement benefits, survivors and disability benefits, and medical insurance (Medicare) benefits to individuals who meet certain eligibility requirements. File state return In most cases, the first $113,700 of taxable wages received in 2013 for services performed in the United States is subject to social security tax. File state return All taxable wages are subject to Medicare tax. File state return Your employer deducts these taxes from each wage payment. File state return Your employer must deduct these taxes even if you do not expect to qualify for social security or Medicare benefits. File state return You can claim a credit for excess social security tax on your income tax return if you have more than one employer and the amount deducted from your combined wages for 2013 is more than $7,049. File state return 40. File state return Use the appropriate worksheet in chapter 3 of Publication 505, Tax Withholding and Estimated Tax, to figure your credit. File state return If any one employer deducted more than $7,049. File state return 40, you cannot claim a credit for that amount. File state return Ask your employer to refund the excess. File state return If your employer does not refund the excess, you can file a claim for refund using Form 843. File state return In general, U. File state return S. File state return social security and Medicare taxes apply to payments of wages for services performed as an employee in the United States, regardless of the citizenship or residence of either the employee or the employer. File state return In limited situations, these taxes apply to wages for services performed outside the United States. File state return Your employer should be able to tell you if social security and Medicare taxes apply to your wages. File state return You cannot make voluntary payments if no taxes are due. File state return Additional Medicare Tax. File state return   Beginning in 2013, in addition to the Medicare tax, a 0. File state return 9% Additional Medicare Tax applies to Medicare wages, Railroad Retirement Tax Act (RRTA) compensation, and self-employment income that are more than: $250,000 if married filing jointly, $125,000 if married filing separately, or $200,000 for any other filing status. File state return   There are no special rules for nonresident aliens for purposes of Additional Medicare Tax. File state return 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 state return   Your employer is responsible for withholding the 0. File state return 9% Additional Medicare Tax on Medicare wages or RRTA compensation it pays to you in excess of $200,000 in the calendar year. File state return If you intend to file a joint return and you anticipate that you and your spouse's individual wages are not going to be more than $200,000 but your combined wages and self-employment income are going to be more than $250,000, you may want to request additional withholding on Form W-4 and/or make estimated tax payments. File state return   If you file Form 1040NR, you must pay Additional Medicare Tax if the total of your wages and your self-employment income was more than $125,000 if married (Box 3, 4, or 5 on page 1 of Form 1040NR), or $200,000 if single or qualifying widow(er) (Box 1, 2, or 6 on page 1 of Form 1040NR). File state return    See Form 8959, Additional Medicare Tax, and the Instructions for Form 8959 to determine whether you are required to pay Additional Medicare Tax. File state return For more information on Additional Medicare Tax, go to IRS. File state return gov and enter “Additional Medicare Tax” in the search box. File state return   Self-employed individuals may also be required to pay Additional Medicare Tax. File state return See Self-Employment Tax , later. File state return Students and Exchange Visitors Generally, services performed by you as a nonresident alien temporarily in the United States as a nonimmigrant under subparagraph (F), (J), (M), or (Q) of section 101(a)(15) of the Immigration and Nationality Act are not covered under the social security program if the services are performed to carry out the purpose for which you were admitted to the United States. File state return This means that there will be no withholding of social security or Medicare taxes from the pay you receive for these services. File state return These types of services are very limited, and generally include only on-campus work, practical training, and economic hardship employment. File state return Social security and Medicare taxes will be withheld from your pay for these services if you are considered a resident alien as discussed in chapter 1, even though your nonimmigrant classification (“F,” “J,” “M,” or “Q”) remains the same. File state return Services performed by a spouse or minor child of nonimmigrant aliens with the classification of “F-2,” “J-2,” “M-2,” and “Q-3” are covered under social security. File state return Nonresident Alien Students If you are a nonresident alien temporarily admitted to the United States as a student, you generally are not permitted to work for a wage or salary or to engage in business while you are in the United States. File state return In some cases, a student admitted to the United States in “F-1,” “M-1,” or “J-1” status is granted permission to work. File state return Social security and Medicare taxes are not withheld from pay for the work unless the student is considered a resident alien. File state return Any student who is enrolled and regularly attending classes at a school may be exempt from social security and Medicare taxes on pay for services performed for that school. File state return The U. File state return S. File state return Citizenship and Immigration Services (USCIS) permits on-campus work for students in “F-1” status if it does not displace a U. File state return S. File state return resident. File state return On-campus work means work performed on the school's premises. File state return On-campus work includes work performed at an off-campus location that is educationally affiliated with the school. File state return On-campus work under the terms of a scholarship, fellowship, or assistantship is considered part of the academic program of a student taking a full course of study and is permitted by the USCIS. File state return Social security and Medicare taxes are not withheld from pay for this work unless the student is considered a resident alien. File state return If services performed by a nonresident alien student are not considered as performed to carry out the purpose for which the student was admitted to the United States, social security and Medicare taxes will be withheld from pay for the services unless the pay is exempt under the Internal Revenue Code. File state return Exchange Visitors Exchange visitors are temporarily admitted to the United States under section 101(a)(15)(J) of the Immigration and Nationality Act. File state return Social security and Medicare taxes are not withheld on pay for services of an exchange visitor who has been given permission to work and who possesses or obtains a letter of authorization from the sponsor unless the exchange visitor is considered a resident alien. File state return If services performed by an exchange visitor are not considered as performed to carry out the purpose for which the visitor was admitted to the United States, social security and Medicare taxes are withheld from pay for the services unless the pay is exempt under the Internal Revenue Code. File state return Nonresident aliens temporarily admitted to the United States as participants in international cultural exchange programs under section 101(a)(15)(Q) of the Immigration and Nationality Act may be exempt from social security and Medicare taxes. File state return The employer must be the petitioner through whom the alien obtained the “Q” visa. File state return Social security and Medicare taxes are not withheld from pay for this work unless the alien is considered a resident alien. File state return Refund of Taxes Withheld in Error If social security or Medicare taxes were withheld in error from pay that is not subject to these taxes, contact the employer who withheld the taxes for a refund. File state return If you are unable to get a full refund of the amount from your employer, file a claim for refund with the Internal Revenue Service on Form 843, Claim for Refund and Request for Abatement. File state return Attach the following items to Form 843. File state return A copy of your Form W-2 to prove the amount of social security and Medicare taxes withheld. File state return A copy of your visa. File state return Form I-94 (or other documentation showing your dates of arrival or departure). File state return If you have an F-1 visa, documentation showing permission to work in the U. File state return S. File state return If you have a J-1 visa, documentation showing permission to work in the U. File state return S. File state return If you are engaged in optional practical training or employment due to severe economic necessity, documentation showing permission to work in the U. File state return S. File state return A statement from your employer indicating the amount of the reimbursement your employer provided and the amount of the credit or refund your employer claimed or you authorized your employer to claim. File state return If you cannot obtain this statement from your employer, you must provide this information on your own statement and explain why you are not attaching a statement from your employer or on Form 8316 claiming your employer will not issue the refund. File state return If you were exempt from social security and Medicare tax for only part of the year, pay statements showing the tax paid during the period you were exempt. File state return File Form 843 (with attachments) with the Department of the Treasury, Internal Revenue Service Center, Ogden, UT 84201-0038. File state return Do not use Form 843 to request a refund of Additional Medicare Tax. File state return If Additional Medicare Tax was withheld from your pay in error, you can claim a credit for any withheld Additional Medicare Tax against the total tax liability shown on your tax return by filing Form 8959 with Form 1040 or 1040NR. File state return If Additional Medicare Tax was withheld in error in a prior year for which you already filed Form 1040 or 1040NR, you must file Form 1040X, Amended U. File state return S. File state return Individual Income Tax Return, for the prior year in which the wages or compensation were originally received to recover the Additional Medicare Tax withheld in error. File state return See the Instructions for Form 1040X. File state return Agricultural Workers Agricultural workers temporarily admitted into the United States on H-2A visas are exempt from social security and Medicare taxes on compensation paid to them for services performed in connection with the H-2A visa. File state return You can find more information about not having tax withheld at www. File state return irs. File state return gov/Individuals/International-Taxpayers/Foreign-Agricultural-Workers. File state return Self-Employment Tax Self-employment tax is the social security and Medicare taxes for individuals who are self-employed. File state return Nonresident aliens are not subject to self-employment tax unless an international social security agreement in effect determines that they are covered under the U. File state return S. File state return social security system. File state return Residents of the U. File state return S. File state return Virgin Islands, Puerto Rico, Guam, the Commonwealth of the Northern Mariana Islands, or American Samoa are considered U. File state return S. File state return residents for this purpose and are subject to the self-employment tax. File state return Resident aliens must pay self-employment tax under the same rules that apply to U. File state return S. File state return citizens. File state return However, a resident alien employed by an international organization, a foreign government, or a wholly-owned instrumentality of a foreign government is not subject to the self-employment tax on income earned in the United States. File state return Self-employment income you receive while you are a resident alien is subject to self-employment tax even if it was paid for services you performed as a nonresident alien. File state return Example. File state return Bill Jones is an author engaged in the business of writing books. File state return Bill had several books published in a foreign country while he was a citizen and resident of that country. File state return During 2013, Bill entered the United States as a resident alien. File state return After becoming a U. File state return S. File state return resident, he continued to receive royalties from his foreign publisher. File state return Bill reports his income and expenses on the cash basis (he reports income on his tax return when received and deducts expenses when paid). File state return Bill's 2013 self-employment income includes the royalties received after he became a U. File state return S. File state return resident even though the books were published while he was a nonresident alien. File state return This royalty income is subject to self-employment tax. File state return Reporting self-employment tax. File state return   Use Schedule SE (Form 1040) to report and figure your self-employment tax. File state return Then enter the tax on Form 1040, line 56, or Form 1040NR, line 54. File state return Attach Schedule SE to Form 1040 or Form 1040NR. File state return Additional Medicare Tax. File state return   Self-employed individuals must pay a 0. File state return 9% Additional Medicare Tax on self-employment income that exceeds one of the following threshold amounts (based on your filing status): Married filing jointly — $250,000; Married filing separately — $125,000; Single, Head of household, or Qualifying widow(er) — $200,000. File state return   If you have both wages and self-employment income, the threshold amount for applying the Additional Medicare Tax on the self-employment income is reduced (but not below zero) by the amount of wages subject to Additional Medicare Tax. File state return A self-employment loss should not be considered for purposes of this tax   If you file Form 1040NR, you must pay Additional Medicare Tax if the total of your wages and your self-employment income was more than $125,000 if married (Box 3, 4, or 5 on page 1 of Form 1040NR), or $200,000 if single or qualifying widow(er) (Box 1, 2, or 6 on page 1 of Form 1040NR). File state return   See Form 8959, Additional Medicare Tax, and the Instructions for Form 8959 to determine whether you are required to pay Additional Medicare Tax. File state return For more information on Additional Medicare Tax, go to IRS. File state return gov and enter “Additional Medicare Tax” in the search box. File state return Deduction for employer-equivalent portion of self-employment tax. File state return   If you must pay self-employment tax, you can deduct a portion of the self-employment tax paid in figuring your adjusted gross income. File state return This deduction is figured on Schedule SE (Form 1040). File state return Note. File state return No portion of the Additional Medicare Tax is deductible for self-employment tax. File state return More information. File state return   Get Publication 334, Tax Guide for Small Business, for more information about self-employment tax. File state return International Social Security Agreements The United States has entered into social security agreements with foreign countries to coordinate social security coverage and taxation of workers employed for part or all of their working careers in one of the countries. File state return These agreements are commonly referred to as totalization agreements. File state return Under these agreements, dual coverage and dual contributions (taxes) for the same work are eliminated. File state return The agreements generally make sure that social security taxes (including self-employment tax) are paid only to one country. File state return Agreements are in effect with the following countries. File state return Australia. File state return Austria. File state return Belgium. File state return Canada. File state return Chile. File state return Czech Republic. File state return Denmark. File state return Finland. File state return France. File state return Germany. File state return Greece. File state return Ireland. File state return Italy. File state return Japan. File state return Korea, South. File state return Luxembourg. File state return The Netherlands. File state return Norway. File state return Poland. File state return Portugal. File state return Spain. File state return Sweden. File state return Switzerland. File state return The United Kingdom. File state return Agreements with other countries are expected to enter into force in the future. File state return Employees. File state return   Generally, under these agreements, you are subject to social security taxes only in the country where you are working. File state return However, if you are temporarily sent to work for the same employer in the United States and your pay would normally be subject to social security taxes in both countries, most agreements provide that you remain covered only by the social security system of the country from which you were sent. File state return You can get more information on any agreement by contacting the U. File state return S. File state return Social Security Administration at the address given later. File state return If you have access to the Internet, you can get more information at www. File state return socialsecurity. File state return gov/international. File state return   To establish that your pay is subject only to foreign social security taxes and is exempt from U. File state return S. File state return social security taxes (including the Medicare tax) under an agreement, you or your employer should request a certificate of coverage from the appropriate agency of the foreign country. File state return This will usually be the same agency to which you or your employer pays your foreign social security taxes. File state return The foreign agency will be able to tell you what information is needed for them to issue the certificate. File state return Your employer should keep a copy of the certificate because it may be needed to show why you are exempt from U. File state return S. File state return social security taxes. File state return Only wages paid on or after the effective date of the agreement can be exempt from U. File state return S. File state return social security taxes. File state return    Some of the countries with which the United States has agreements will not issue certificates of coverage. File state return In this case, either you or your employer should request a statement that your wages are not covered by the U. File state return S. File state return social security system. File state return Request the statement from the following address. File state return U. File state return S. File state return Social Security Administration Office of International Programs P. File state return O. File state return Box 17741 Baltimore, MD 21235-7741 Self-employed individuals. File state return   Under most agreements, self-employed individuals are covered by the social security system of the country where they reside. File state return However, under some agreements, you may be exempt from U. File state return S. File state return self-employment tax if you temporarily transfer your business activity to or from the United States. File state return   If you believe that your self-employment income is subject only to U. File state return S. File state return self-employment tax and is exempt from foreign social security taxes, request a certificate of coverage from the U. File state return S. File state return Social Security Administration at the address given earlier. File state return This certificate will establish your exemption from foreign social security taxes. File state return   To establish that your self-employment income is subject only to foreign social security taxes and is exempt from U. File state return S. File state return self-employment tax, request a certificate of coverage from the appropriate agency of the foreign country. File state return If the foreign country will not issue the certificate, you should request a statement that your income is not covered by the U. File state return S. File state return social security system. File state return Request it from the U. File state return S. File state return Social Security Administration at the address given earlier. File state return Attach a photocopy of either statement to Form 1040 each year you are exempt. File state return Also print “Exempt, see attached statement” on the line for self-employment tax. File state return Estimated Tax Form 1040-ES (NR) You may have income from which no U. File state return S. File state return income tax is withheld. File state return Or the amount of tax withheld may be less than the income tax you estimate you will owe at the end of the year. File state return If so, you may have to pay estimated tax. File state return Generally, you must make estimated tax payments for 2014 if you expect to owe at least $1,000 in tax and you expect your withholding and certain refundable credits to be less than the smaller of: 90% of the tax to be shown on your 2014 income tax return, or 100% of the tax shown on your 2013 income tax return (if your 2013 return covered all 12 months of the year). File state return If your adjusted gross income for 2013 was more than $150,000 ($75,000 if your filing status for 2014 is married filing separately), substitute 110% for 100% in (2) above if you are not a farmer or fisherman. File state return Item (2) does not apply if you did not file a 2013 return. File state return A nonresident alien should use Form 1040-ES (NR) to figure and pay estimated tax. File state return If you pay by check, make it payable to the "United States Treasury. File state return " How to estimate your tax for 2014. File state return   If you filed a 2013 return on Form 1040NR or Form 1040NR-EZ and expect your income, number of exemptions, and total deductions for 2014 to be nearly the same, you should use your 2013 return as a guide to complete the Estimated Tax Worksheet in the Form 1040-ES (NR) instructions. File state return If you did not file a return for 2013, or if your income, exemptions, deductions, or credits will be different for 2014, you must estimate these amounts. File state return Figure your estimated tax liability using the Tax Rate Schedule in the 2014 Form 1040-ES (NR) instructions for your filing status. File state return Note. File state return If you expect to be a resident of Puerto Rico during the entire year, use Form 1040-ES or Formulario 1040-ES (PR). File state return When to pay estimated tax. File state return   Make your first estimated tax payment by the due date for filing the previous year's Form 1040NR or Form 1040NR-EZ. File state return If you have wages subject to the same withholding rules that apply to U. File state return S. File state return citizens, you must file Form 1040NR or Form 1040NR-EZ and make your first estimated tax payment by April 15, 2014. File state return If you do not have wages subject to withholding, file your income tax return and make your first estimated tax payment by June 16, 2014. File state return   If your first estimated tax payment is due April 15, 2014, you can pay your estimated tax in full at that time or in four equal installments by the dates shown next. File state return 1st installment April 15, 2014 2nd installment June 16, 2014 3rd installment Sept. File state return 15, 2014 4th installment Jan. File state return 15, 2015 If your first payment is not due until June 16, 2014, you can pay your estimated tax in full at that time or: ½ of your estimated tax by June 16, 2014, 1/4 of the tax by September 15, 2014, and 1/4 by January 15, 2015. File state return    You do not have to make the payment due January 15, 2015, if you file your 2014 Form 1040NR or 1040NR-EZ by February 2, 2015, and pay the entire balance due with your return. File state return Fiscal year. File state return   If your return is not on a calendar year basis, your due dates are the 15th day of the 4th, 6th, and 9th months of your fiscal year, and the 1st month of the following fiscal year. File state return If any date falls on a Saturday, Sunday, or legal holiday, use the next day that is not a Saturday, Sunday, or legal holiday. File state return Changes in income, deductions, or exemptions. File state return   Even if you are not required to make an estimated tax payment in April or June, your circumstances may change so that you will have to make estimated tax payments later. File state return This can happen if you receive additional income or if any of your deductions are reduced or eliminated. File state return If so, see the instructions for Form 1040-ES (NR) and Publication 505 for information on figuring your estimated tax. File state return Amended estimated tax. File state return   If, after you have made estimated tax payments, you find your estimated tax is substantially increased or decreased because of a change in your income or exemptions, you should adjust your remaining estimated tax payments. File state return To do this, see the instructions for Form 1040-ES (NR) and Publication 505. File state return Penalty for failure to pay estimated income tax. File state return   You will be subject to a penalty for underpayment of installments of estimated tax except in certain situations. File state return These situations are explained on Form 2210, Underpayment of Estimated Tax by Individuals, Estates, and Trusts. File state return Prev  Up  Next   Home   More Online Publications
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Understanding Your CP2000 Notice

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


What you need to do

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

You may want to…


Answers to Common Questions

Why did I receive the notice?

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

Is the notice a bill?

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

What do I need to do?

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

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

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

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

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

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

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

Do I need to amend my return?

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

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

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

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

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

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

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

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

How can I find an IRS Taxpayer Assistance Center?

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

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

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

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

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

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

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

How can I make a payment plan?

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


Tips for next year

You can avoid future problems by:

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

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

Page Last Reviewed or Updated: 28-Feb-2014

The File State Return

File state return 11. File state return   Employer-Provided Educational Assistance Table of Contents Introduction Working condition fringe benefit. File state return Introduction If you receive educational assistance benefits from your employer under an educational assistance program, you can exclude up to $5,250 of those benefits each year. File state return This means your employer should not include those benefits with your wages, tips, and other compensation shown in box 1 of your Form W-2. File state return This also means that you do not have to include the benefits on your income tax return. File state return You cannot use any of the tax-free education expenses paid for by your employer as the basis for any other deduction or credit, including the American opportunity credit and lifetime learning credit. File state return Educational assistance program. File state return   To qualify as an educational assistance program, the plan must be written and must meet certain other requirements. File state return Your employer can tell you whether there is a qualified program where you work. File state return Educational assistance benefits. File state return   Tax-free educational assistance benefits include payments for tuition, fees and similar expenses, books, supplies, and equipment. File state return Education generally includes any form of instruction or training that improves or develops your capabilities. File state return The payments do not have to be for work-related courses or courses that are part of a degree program. File state return   Educational assistance benefits do not include payments for the following items. File state return Meals, lodging, or transportation. File state return Tools or supplies (other than textbooks) that you can keep after completing the course of instruction. File state return Courses involving sports, games, or hobbies unless they: Have a reasonable relationship to the business of your employer, or Are required as part of a degree program. File state return Benefits over $5,250. File state return   If your employer pays more than $5,250 in educational assistance benefits for you during the year, you must generally pay tax on the amount over $5,250. File state return Your employer should include in your wages (Form W-2, box 1) the amount that you must include in income. File state return Working condition fringe benefit. File state return    However, if the benefits over $5,250 also qualify as a working condition fringe benefit, your employer does not have to include them in your wages. File state return A working condition fringe benefit is a benefit which, had you paid for it, you could deduct as an employee business expense. File state return For more information on working condition fringe benefits, see Working Condition Benefits in chapter 2 of Publication 15-B, Employer's Tax Guide to Fringe Benefits. File state return Prev  Up  Next   Home   More Online Publications