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Filing Taxes For 2013

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Filing Taxes For 2013

Filing taxes for 2013 Index Symbols 30% Tax, The 30% Tax , Residents of Canada or Mexico engaged in transportation-related employment. Filing taxes for 2013 , Students, teachers, and researchers. Filing taxes for 2013 A Accuracy-related penalties, Accuracy-related penalty. Filing taxes for 2013 Additional Medicare Tax, Additional Medicare Tax. Filing taxes for 2013 , Additional Medicare Tax. Filing taxes for 2013 Adoption credit Dual-status alien, Adoption credit. Filing taxes for 2013 Nonresident alien, Adoption credit. Filing taxes for 2013 Resident alien, Adoption credit. Filing taxes for 2013 Agricultural workers, Agricultural workers. Filing taxes for 2013 , Agricultural Workers Alien Nonresident, Nonresident Aliens, Nonresident Aliens, Nonresident Aliens Resident, Resident Aliens, Resident Aliens, Resident Aliens Alien status, employer notification of, Notification of Alien Status Alternative minimum tax, Alternative minimum tax. Filing taxes for 2013 Amended returns, Amended Returns and Claims for Refund American Samoa, residents of, Aliens From American Samoa or Puerto Rico, Special rules for aliens from certain U. Filing taxes for 2013 S. Filing taxes for 2013 possessions. Filing taxes for 2013 , Bona Fide Residents of American Samoa or Puerto Rico Annuities Income, Income from certain annuities. Filing taxes for 2013 Source rule, Pensions and Annuities Asset-use test, Asset-use test. Filing taxes for 2013 Assistance (see Tax help) Athletes, professional, Professional athletes. Filing taxes for 2013 Awards, Scholarships, Grants, Prizes, and Awards B Basis of property, Depreciable property. Filing taxes for 2013 Beneficiary of estate or trust, Beneficiary of an estate or trust. Filing taxes for 2013 Business expenses, ordinary and necessary, Ordinary and necessary business expenses. Filing taxes for 2013 Business operations, Business operations. Filing taxes for 2013 Business profits and losses and sales transactions, Business Profits and Losses and Sales Transactions Business, U. Filing taxes for 2013 S. Filing taxes for 2013 , Trade or Business in the United States Business-activities test, Business-activities test. Filing taxes for 2013 C Canada Commuters, Regular commuters from Canada or Mexico. Filing taxes for 2013 Exemptions, Exemptions Personal exemption, Resident Aliens Qualifying widow filing status, Qualifying widow(er). Filing taxes for 2013 Residents of, Residents of Mexico or Canada or U. Filing taxes for 2013 S. Filing taxes for 2013 nationals. Filing taxes for 2013 Social security benefits, Special Rule for Canadian and German Social Security Benefits Transportation-related employment, Residents of Canada or Mexico engaged in transportation-related employment. Filing taxes for 2013 Withholding tax, U. Filing taxes for 2013 S. Filing taxes for 2013 nationals or residents of Canada, Mexico, or South Korea. Filing taxes for 2013 Capital assets, sales or exchanges, Sales or Exchanges of Capital Assets Casualty and theft losses, Casualty and theft losses. Filing taxes for 2013 Central withholding agreements, Central withholding agreements. Filing taxes for 2013 Charitable contributions, Charitable contributions. Filing taxes for 2013 Child and dependent care credit Dual-status alien, Child and dependent care credit. Filing taxes for 2013 Nonresident alien, Child and dependent care credit. Filing taxes for 2013 Resident alien, Child and dependent care credit. Filing taxes for 2013 Child tax credit Resident alien, Child tax credit. Filing taxes for 2013 , Child tax credit. Filing taxes for 2013 , Child tax credit. Filing taxes for 2013 Claims for refund, Amended Returns and Claims for Refund Closer connection, Closer Connection to a Foreign Country Commodities, trading in, Trading in stocks, securities, and commodities. Filing taxes for 2013 Community income, Community Income Commuters from Canada or Mexico, Regular commuters from Canada or Mexico. Filing taxes for 2013 Compensation for labor or personal services Geographical basis, Geographical Basis Contingent interest, Contingent interest. Filing taxes for 2013 Credit for the elderly or the disabled Dual-status alien, 6) Tax credits. Filing taxes for 2013 Resident alien, Credit for the elderly or the disabled. Filing taxes for 2013 Credits against tax Child and dependent care credit, Child and dependent care credit. Filing taxes for 2013 , Child and dependent care credit. Filing taxes for 2013 Child tax credit, Child tax credit. Filing taxes for 2013 , Child tax credit. Filing taxes for 2013 , Child tax credit. Filing taxes for 2013 Credit for the elderly or the disabled, 6) Tax credits. Filing taxes for 2013 Dual-status alien, Credits Earned income credit, Earned income credit. Filing taxes for 2013 , 6) Tax credits. Filing taxes for 2013 Education credits, Education credits. Filing taxes for 2013 , Education credits. Filing taxes for 2013 , 6) Tax credits. Filing taxes for 2013 Excess social security tax withheld, Excess social security tax withheld. Filing taxes for 2013 Foreign tax credit, Foreign tax credit. Filing taxes for 2013 , Foreign tax credit. Filing taxes for 2013 Hope credit, Education credits. Filing taxes for 2013 , Education credits. Filing taxes for 2013 Lifetime learning credit, Education credits. Filing taxes for 2013 , Education credits. Filing taxes for 2013 Retirement savings contributions, Retirement savings contributions credit. Filing taxes for 2013 , Retirement savings contributions credit. Filing taxes for 2013 , Retirement savings contributions credit. Filing taxes for 2013 Tax paid on undistributed long-term capital gains, Tax paid on undistributed long-term capital gains. Filing taxes for 2013 Tax withheld at source, Tax withheld at the source. Filing taxes for 2013 Tax withheld on partnership income, Tax withheld on partnership income. Filing taxes for 2013 Withholding from wages, Withholding from wages. Filing taxes for 2013 Crew members Alien status, Crew members. Filing taxes for 2013 Compensation, Crew members. Filing taxes for 2013 Currency, transporting, Other Forms You May Have To File D Days of presence, Days of Presence in the United States De minimis presence, De minimis presence. Filing taxes for 2013 Deductions, Deductions, Itemized Deductions Departure permit, When to get a sailing or departure permit. Filing taxes for 2013 Depreciable property, Depreciable property. Filing taxes for 2013 Diplomats (see Foreign government employees) Direct economic relationship, Personal Service Income Disclosure statement, Disclosure statement. Filing taxes for 2013 Dividends, U. Filing taxes for 2013 S. Filing taxes for 2013 source income, Dividends Dual-status aliens, Dual-Status Aliens Dual-status tax year, Dual-Status Aliens, Dual-Status Tax Year Child care credit, Child and dependent care credit. Filing taxes for 2013 Computation of tax, How To Figure Tax Credit for the elderly or the disabled, 6) Tax credits. Filing taxes for 2013 Earned income credit, 6) Tax credits. Filing taxes for 2013 Education credit, 6) Tax credits. Filing taxes for 2013 Exemptions, 2) Exemptions. Filing taxes for 2013 Foreign tax credit, Foreign tax credit. Filing taxes for 2013 Forms to file, Forms To File Head of household. Filing taxes for 2013 , 3) Head of household. Filing taxes for 2013 Income subject to tax, Income Subject to Tax Joint return, 4) Joint return. Filing taxes for 2013 Residency ending date, Dual-Status Aliens Residency starting date, Dual-Status Aliens Restrictions, Restrictions for Dual-Status Taxpayers Standard deduction, 1) Standard deduction. Filing taxes for 2013 Tax rates, 5) Tax rates. Filing taxes for 2013 When and where to file, When and Where To File E Earned income credit Dual-status alien, 6) Tax credits. Filing taxes for 2013 Nonresident alien, Earned income credit. Filing taxes for 2013 Resident alien, Earned income credit. Filing taxes for 2013 Education credits Dual-status alien, 6) Tax credits. Filing taxes for 2013 Nonresident alien, Education credits. Filing taxes for 2013 Resident alien, Education credits. Filing taxes for 2013 Effectively connected income, Effectively Connected Income Foreign income, Foreign Income Investment income, Investment Income Pensions, Pensions. Filing taxes for 2013 Real property gain or loss, Real Property Gain or Loss Real property income choice, Income From Real Property Tax on, Tax on Effectively Connected Income Transportation income, Transportation Income Employees of foreign governments, Employees of foreign governments. Filing taxes for 2013 Employees of international organizations, Employees of international organizations. Filing taxes for 2013 Employees, household, Household employees. Filing taxes for 2013 Employees, withholding exemption under tax treaty, Employees and independent contractors. Filing taxes for 2013 Employer identification number, Employer identification number (EIN). Filing taxes for 2013 Estate, beneficiary, Beneficiary of an estate or trust. Filing taxes for 2013 Estimated tax, Paying Tax Through Withholding or Estimated Tax , Estimated Tax Form 1040-ES (NR) Excess social security tax, Excess social security tax withheld. Filing taxes for 2013 Exchange visitors, Exchange Visitors Income from foreign employer, Students and exchange visitors. Filing taxes for 2013 Social security and Medicare taxes, Students and Exchange Visitors Exclusions from gross income, Exclusions From Gross Income Annuities, Income from certain annuities. Filing taxes for 2013 Compensation from a foreign employer, Students and exchange visitors. Filing taxes for 2013 Gambling winnings, dog or horse racing, Gambling Winnings From Dog or Horse Racing Students and exchange visitors, Students and exchange visitors. Filing taxes for 2013 Treaty income, Income affected by treaties. Filing taxes for 2013 , Treaty Income Exempt individual, Exempt individual. Filing taxes for 2013 Exemption from withholding Employees, Employees and independent contractors. Filing taxes for 2013 Independent contractors, Employees and independent contractors. Filing taxes for 2013 Students, teachers, and researchers, Students, teachers, and researchers. Filing taxes for 2013 Exemptions Dual-status taxpayer, Exemptions Indian students and business apprentices, Students and business apprentices from India. Filing taxes for 2013 Nonresident alien, Exemptions Resident alien, Exemptions Residents of Mexico or Canada, Residents of Mexico or Canada or U. Filing taxes for 2013 S. Filing taxes for 2013 nationals. Filing taxes for 2013 Residents of South Korea, Residents of South Korea. Filing taxes for 2013 U. Filing taxes for 2013 S. Filing taxes for 2013 nationals, Residents of Mexico or Canada or U. Filing taxes for 2013 S. Filing taxes for 2013 nationals. Filing taxes for 2013 Expatriation tax, Expatriation Before June 4, 2004 F Fellowship grant Excludable, Scholarships and Fellowship Grants Source rule, Scholarships, Grants, Prizes, and Awards Withholding tax, Withholding on Scholarships and Fellowship Grants Filing requirements, Nonresident Aliens Filing returns, Figuring Your Tax Amended returns, Amended Returns and Claims for Refund Claims for refund, Amended Returns and Claims for Refund Commonwealth of the Northern Mariana Islands, Aliens from Guam or the Commonwealth of the Northern Mariana Islands. Filing taxes for 2013 Dual-status taxpayer, Forms To File Estimated tax, When to pay estimated tax. Filing taxes for 2013 Form 1040-C, Form 1040-C Form 1040NR, Figuring Your Tax, Nonresident Aliens Form 1040NR-EZ, Figuring Your Tax, Form 1040NR-EZ Form 2063, Form 2063 Guam, Aliens from Guam or the Commonwealth of the Northern Mariana Islands. Filing taxes for 2013 Nonresident alien, Figuring Your Tax U. Filing taxes for 2013 S. Filing taxes for 2013 Virgin Islands, Aliens from the U. Filing taxes for 2013 S. Filing taxes for 2013 Virgin Islands. Filing taxes for 2013 Who must file, Nonresident Aliens Filing status, Filing Status First-year choice, First-Year Choice Fixed or determinable income, Fixed or Determinable Income Foreign country, Foreign country. Filing taxes for 2013 Foreign earned income exclusion, Foreign Earned Income and Housing Amount Foreign employer, Employees of foreign persons, organizations, or offices. Filing taxes for 2013 , Foreign employer. Filing taxes for 2013 Foreign government employees Alien status, Foreign government-related individuals. Filing taxes for 2013 Exempt from U. Filing taxes for 2013 S. Filing taxes for 2013 tax, Employees of Foreign Governments and International Organizations Tax treaty exemption, Employees of Foreign Governments Foreign income subject to U. Filing taxes for 2013 S. Filing taxes for 2013 tax, Foreign Income Foreign organizations, charitable contributions to, Charitable contributions. Filing taxes for 2013 Foreign tax credit Dual-status alien, Foreign tax credit. Filing taxes for 2013 Nonresident alien, Foreign tax credit. Filing taxes for 2013 Resident alien, Foreign tax credit. Filing taxes for 2013 Forms, Form 8843. Filing taxes for 2013 1040-C, Form 1040-C 1040-ES(NR), Estimated Tax Form 1040-ES (NR) 1040NR, Nonresident Aliens 1040NR-EZ, Form 1040NR-EZ 1040X, Amended Returns and Claims for Refund 1042-S, Tax Withheld on Real Property Sales 1116, Foreign tax credit. Filing taxes for 2013 , Foreign tax credit. Filing taxes for 2013 , Foreign tax credit. Filing taxes for 2013 2063, Form 2063 2106, Deductible travel expenses. Filing taxes for 2013 2210, Penalty for failure to pay estimated income tax. Filing taxes for 2013 3903, Moving expenses. Filing taxes for 2013 4563, Residents of American Samoa. Filing taxes for 2013 4790 (see FinCEN 105) 6251, Alternative minimum tax. Filing taxes for 2013 8233, Employees and independent contractors. Filing taxes for 2013 8275, Disclosure statement. Filing taxes for 2013 8288, Credit for tax withheld. Filing taxes for 2013 8288-A, Credit for tax withheld. Filing taxes for 2013 8288-B, Withholding certificates. Filing taxes for 2013 8801, Credit for prior year minimum tax. Filing taxes for 2013 8805, Tax Withheld on Partnership Income, Tax Withheld on Real Property Sales 8833, Effect of Tax Treaties, Resident Aliens 8840, Form 8840. Filing taxes for 2013 8843, Form 8843. Filing taxes for 2013 8854, Reporting requirements. Filing taxes for 2013 FinCEN 105, Other Forms You May Have To File W-4, Withholding on Wages, Alternate Withholding Procedure, Form W-4. Filing taxes for 2013 W-7, Individual taxpayer identification number (ITIN). Filing taxes for 2013 W-8BEN, Income Entitled to Tax Treaty Benefits W-8ECI, Withholding on Pensions W-9, Notification of Alien Status Forms to file Dual-status alien, Forms To File Nonresident aliens, Nonresident Aliens Resident alien, Resident Aliens Sailing permits, Forms To File Free tax services, Free help with your tax return. Filing taxes for 2013 G Gambling winnings, dog or horse racing, Gambling Winnings From Dog or Horse Racing German social security benefits, Special Rule for Canadian and German Social Security Benefits Green card test, Green Card Test H Head of household Nonresident alien, Head of household. Filing taxes for 2013 Resident alien, Head of household. Filing taxes for 2013 Help (see Tax help) Home, sale of, Gain From the Sale of Your Main Home Household employees, Household employees. Filing taxes for 2013 I Identification number, taxpayer Defined, Identification Number Penalty for failure to supply, Failure to supply taxpayer identification number. Filing taxes for 2013 Income Community, Community Income Effectively connected, Effectively Connected Income Exclusions, Exclusions From Gross Income Fixed or determinable, Fixed or Determinable Income Foreign, Foreign Income From real property, Income From Real Property Income affected by treaties, Income affected by treaties. Filing taxes for 2013 Interest, Interest Income Investment, Investment Income Personal services, Personal Service Income Reporting, Reporting Your Income Sale of home, Gain From the Sale of Your Main Home Tip, Withholding on Tip Income Income code 28, Gambling Winnings Income from U. Filing taxes for 2013 S. Filing taxes for 2013 sources, Source of Income Dividends, Dividends Interest, Interest Income Pensions and annuities, Pensions and Annuities Personal property, Personal Property Personal services, Personal Services Real property, Real Property Rents or royalties, Rents or Royalties Independent contractors Withholding exemption under tax treaty, Employees and independent contractors. Filing taxes for 2013 Withholding rules, Independent Contractors India, students and business apprentices from Exemptions, Students and business apprentices from India. Filing taxes for 2013 Exemptions for spouse and dependents, Students and business apprentices from India. Filing taxes for 2013 Standard deduction, Students and business apprentices from India. Filing taxes for 2013 Withholding allowances, Students and business apprentices from India. Filing taxes for 2013 Individual retirement arrangement (IRA), Individual retirement arrangement (IRA). Filing taxes for 2013 Individual taxpayer identification number (ITIN), Individual taxpayer identification number (ITIN). Filing taxes for 2013 Intangible property, Intangible property. Filing taxes for 2013 Interest Portfolio, Portfolio interest. Filing taxes for 2013 , Interest that does not qualify as portfolio interest. Filing taxes for 2013 Interest income Contingent, Contingent interest. Filing taxes for 2013 Excludable, Interest Income Source rule, Interest Income International organization employees Alien status, Foreign government-related individuals. Filing taxes for 2013 Exempt from U. Filing taxes for 2013 S. Filing taxes for 2013 tax, Employees of Foreign Governments and International Organizations International social security agreements, International Social Security Agreements Interrupted period of residence, Interrupted Period of Residence Inventory, Inventory property. Filing taxes for 2013 Investment income, Investment Income Itemized deductions, Itemized Deductions J Job expenses, Job expenses and other miscellaneous deductions. Filing taxes for 2013 K Korea, South Exemptions, Residents of South Korea. Filing taxes for 2013 , Exemptions Married filing separately, Married nonresident alien. Filing taxes for 2013 Qualifying widow filing status, Qualifying widow(er). Filing taxes for 2013 Withholding tax, U. Filing taxes for 2013 S. Filing taxes for 2013 nationals or residents of Canada, Mexico, or South Korea. Filing taxes for 2013 L Last year of residency, Last Year of Residency Long-term U. Filing taxes for 2013 S. Filing taxes for 2013 resident Defined, Long-term resident defined. Filing taxes for 2013 Expatriation tax, Long-term resident defined. Filing taxes for 2013 Losses Business, Business Profits and Losses and Sales Transactions Capital Assets, Sales or Exchanges of Capital Assets Casualty and theft, Casualty and theft losses. Filing taxes for 2013 Of nonresident aliens, Losses. Filing taxes for 2013 Real property, Real Property Gain or Loss M Married filing jointly Nonresident alien, Married nonresident alien. Filing taxes for 2013 Resident alien, Married filing jointly. Filing taxes for 2013 Medical condition, Medical condition. Filing taxes for 2013 Medicare tax, Social Security and Medicare Taxes Mexico Commuters, Regular commuters from Canada or Mexico. Filing taxes for 2013 Exemptions, Exemptions Personal exemption, Resident Aliens Qualifying widow filing status, Qualifying widow(er). Filing taxes for 2013 Residents of, Residents of Mexico or Canada or U. Filing taxes for 2013 S. Filing taxes for 2013 nationals. Filing taxes for 2013 Transportation-related employment, Residents of Canada or Mexico engaged in transportation-related employment. Filing taxes for 2013 Withholding tax, U. Filing taxes for 2013 S. Filing taxes for 2013 nationals or residents of Canada, Mexico, or South Korea. Filing taxes for 2013 Miscellaneous deductions, Job expenses and other miscellaneous deductions. Filing taxes for 2013 Monetary instruments, transporting, Other Forms You May Have To File Moving expenses, Moving expenses. Filing taxes for 2013 Multi-level marketing, Multi-level marketing. Filing taxes for 2013 , Multi-level marketing. Filing taxes for 2013 Municipal bonds, State and local government obligations. Filing taxes for 2013 N National of the United States, Qualifying widow(er). Filing taxes for 2013 , 5) Tax rates. Filing taxes for 2013 , Withholding on Wages Natural resources (see Real property) Non-registered obligations, Obligations not in registered form. Filing taxes for 2013 Nonresident alien, Nonresident Aliens Annuity income, Income from certain annuities. Filing taxes for 2013 Business expenses, Ordinary and necessary business expenses. Filing taxes for 2013 Casualty and theft losses, Casualty and theft losses. Filing taxes for 2013 Charitable contributions, Charitable contributions. Filing taxes for 2013 Child care credit, Child and dependent care credit. Filing taxes for 2013 Credit for excess social security tax withheld, Excess social security tax withheld. Filing taxes for 2013 Credit for income tax withheld, Withholding from wages. Filing taxes for 2013 Credit for prior year minimum tax, Credit for prior year minimum tax. Filing taxes for 2013 Defined, Nonresident Aliens Earned income credit, Earned income credit. Filing taxes for 2013 Education credits, Education credits. Filing taxes for 2013 Effectively connected income, tax on, Tax on Effectively Connected Income Filing Form 1040NR, Figuring Your Tax Filing Form 1040NR-EZ, Figuring Your Tax Foreign tax credit, Foreign tax credit. Filing taxes for 2013 Gambling winnings, dog or horse racing, Gambling Winnings From Dog or Horse Racing Head of household, Head of household. Filing taxes for 2013 How income is taxed, Nonresident Aliens Individual retirement arrangement (IRA), Individual retirement arrangement (IRA). Filing taxes for 2013 Interest income, Interest Income Job expenses, Job expenses and other miscellaneous deductions. Filing taxes for 2013 Losses, Losses. Filing taxes for 2013 Married filing jointly, Married nonresident alien. Filing taxes for 2013 Miscellaneous deductions, Job expenses and other miscellaneous deductions. Filing taxes for 2013 Moving expenses, Moving expenses. Filing taxes for 2013 Personal exemptions, Exemptions Qualifying widow(er), Qualifying widow(er). Filing taxes for 2013 Standard deduction, Standard deduction. Filing taxes for 2013 State and local income taxes, State and local income taxes. Filing taxes for 2013 Students, Nonresident Alien Students Tax paid on undistributed long-term capital gains, Tax paid on undistributed long-term capital gains. Filing taxes for 2013 Tax withheld at source, Tax withheld at the source. Filing taxes for 2013 Travel expenses, Travel expenses. Filing taxes for 2013 Withholding from partnership income, Tax withheld on partnership income. Filing taxes for 2013 Withholding tax, Paying Tax Through Withholding or Estimated Tax Nonresident spouse treated as a resident, Nonresident Spouse Treated as a Resident O Obligations Not in registered form, Obligations not in registered form. Filing taxes for 2013 Registered, Obligations in registered form. Filing taxes for 2013 Original issue discount, Original issue discount (OID). Filing taxes for 2013 P Partnership Income, tax withheld on, Tax Withheld on Partnership Income Partnerships, Partnerships. Filing taxes for 2013 Payment against U. Filing taxes for 2013 S. Filing taxes for 2013 tax, Payments Tax withheld at the source, Tax withheld at the source. Filing taxes for 2013 Withholding from wages, Tax Withheld Penalties, Penalties. Filing taxes for 2013 , Penalties Accuracy-related, Accuracy-related penalty. Filing taxes for 2013 Failure to file, Filing late. Filing taxes for 2013 Failure to pay, Paying tax late. Filing taxes for 2013 Failure to supply taxpayer identification number, Failure to supply taxpayer identification number. Filing taxes for 2013 Fraud, Fraud. Filing taxes for 2013 Frivolous tax submission, Frivolous tax submission. Filing taxes for 2013 Negligence, Negligence or disregard. Filing taxes for 2013 Substantial understatement of income tax, Substantial understatement of income tax. Filing taxes for 2013 Penalty for failure to pay estimated income tax, Penalty for failure to pay estimated income tax. Filing taxes for 2013 Penalty on early withdrawal of savings, Penalty on early withdrawal of savings. Filing taxes for 2013 Pensions, Pensions. Filing taxes for 2013 Source rule, Pensions and Annuities Withholding on, Withholding on Pensions Personal exemption Prorating, Personal exemption. Filing taxes for 2013 Withholding allowance, Allowance for Personal Exemption Personal property, Personal Property Personal services income Connected with U. Filing taxes for 2013 S. Filing taxes for 2013 business, Personal Service Income Paid by foreign employer, Services Performed for Foreign Employer Source rule, Personal Services Tax treaty exemption, Personal Services Withholding on wages, Withholding on Wages Portfolio interest, Portfolio interest. Filing taxes for 2013 , Interest that does not qualify as portfolio interest. Filing taxes for 2013 Prizes, Scholarships, Grants, Prizes, and Awards Professional athletes, Professional athletes. Filing taxes for 2013 Property Depreciable, Depreciable property. Filing taxes for 2013 Intangible, Intangible property. Filing taxes for 2013 Inventory, Inventory property. Filing taxes for 2013 Personal, Personal Property Real, Real Property, Real Property Gain or Loss Protective return, Protective return. Filing taxes for 2013 Publications (see Tax help) Puerto Rico, residents of, Aliens From American Samoa or Puerto Rico, Special rules for aliens from certain U. Filing taxes for 2013 S. Filing taxes for 2013 possessions. Filing taxes for 2013 , Bona Fide Residents of American Samoa or Puerto Rico, Residents of American Samoa and Puerto Rico. Filing taxes for 2013 Q Qualified investment entity Distributions paid by, Qualified investment entities. Filing taxes for 2013 R Railroad retirement benefits, Social Security Benefits, Social security and railroad retirement benefits. Filing taxes for 2013 Real estate (see Real property) Real property Definition, Real Property Income from, Income From Real Property Natural resources, Natural resources. Filing taxes for 2013 Sale or exchange of, Real Property Gain or Loss Source rule, Real Property Tax withheld on sale of, Tax Withheld on Real Property Sales U. Filing taxes for 2013 S. Filing taxes for 2013 real property interest, U. Filing taxes for 2013 S. Filing taxes for 2013 real property interest. Filing taxes for 2013 Real property income, Real property income. Filing taxes for 2013 Refunds, claims for, Amended Returns and Claims for Refund Registered obligations, Obligations in registered form. Filing taxes for 2013 Rents, Rents or Royalties Researchers, wage withholding exemption under tax treaty, Students, teachers, and researchers. Filing taxes for 2013 , Appendix B—Tax Treaty Exemption Procedure for Teachers and Researchers Residence, interrupted, Interrupted Period of Residence Residency First year, First Year of Residency Last year, Last Year of Residency Starting date, Residency starting date under substantial presence test. Filing taxes for 2013 Termination date, Last Year of Residency Tests, Resident Aliens Resident alien, Resident Aliens Child tax credit, Child tax credit. Filing taxes for 2013 , Child tax credit. Filing taxes for 2013 , Child tax credit. Filing taxes for 2013 Defined, Resident Aliens Education credits, Education credits. Filing taxes for 2013 Head of household, Head of household. Filing taxes for 2013 Married filing jointly, Married filing jointly. Filing taxes for 2013 Qualifying widow(er), Qualifying widow(er). Filing taxes for 2013 Resident alien status, choosing, Choosing Resident Alien Status Retirement savings contributions credit Dual-status alien, Retirement savings contributions credit. Filing taxes for 2013 Nonresident alien, Retirement savings contributions credit. Filing taxes for 2013 Resident alien, Retirement savings contributions credit. Filing taxes for 2013 Royalties, Rents or Royalties S Sailing permits, departing aliens Aliens not requiring, Aliens Not Required To Obtain Sailing or Departure Permits Bond furnished, insuring tax payment, Paying Taxes and Obtaining Refunds Form 1040-C, Form 1040-C Form 2063, Form 2063 Forms to file, Forms To File When to get, When to get a sailing or departure permit. Filing taxes for 2013 Where to get, Where to get a sailing or departure permit. Filing taxes for 2013 Salary (see Personal services income) Sale of home, income from, Gain From the Sale of Your Main Home Sales or exchanges, capital assets, Sales or Exchanges of Capital Assets Scholarship Excludable, Scholarships and Fellowship Grants Source rule, Scholarships, Grants, Prizes, and Awards Withholding tax, Withholding on Scholarships and Fellowship Grants Securities, trading in, Trading in stocks, securities, and commodities. Filing taxes for 2013 Self-employed retirement plans, Self-employed SEP, SIMPLE, and qualified retirement plans. Filing taxes for 2013 Self-employment tax, Self-Employment Tax Social security benefits Dual-status alien, Social security and railroad retirement benefits. Filing taxes for 2013 Nonresident alien, Social Security Benefits Social security number, Social security number (SSN). Filing taxes for 2013 Social security tax Credit for excess tax withheld, Social Security and Medicare Taxes Excess withheld, Excess social security tax withheld. Filing taxes for 2013 Foreign students and exchange visitors, Students and Exchange Visitors International agreements, International Social Security Agreements Self-employment tax, Self-Employment Tax Totalization agreements, International Social Security Agreements Withheld in error, Refund of Taxes Withheld in Error Source of compensation for labor or personal services Alternative basis, Alternative Basis Multi-year compensation, Multi-year compensation. Filing taxes for 2013 Time basis, Time Basis Source of income, Source of Income Standard deduction, Standard deduction. Filing taxes for 2013 State and local income taxes, State and local income taxes. Filing taxes for 2013 Stocks, trading in, Trading in stocks, securities, and commodities. Filing taxes for 2013 Student loan interest expense, Student loan interest expense. Filing taxes for 2013 Students Alien status, Students. Filing taxes for 2013 Engaged in U. Filing taxes for 2013 S. Filing taxes for 2013 business, Students and trainees. Filing taxes for 2013 Fellowship grant, Scholarships, Grants, Prizes, and Awards, Withholding on Scholarships and Fellowship Grants Income from foreign employer, Students and exchange visitors. Filing taxes for 2013 Scholarship, Scholarships, Grants, Prizes, and Awards, Withholding on Scholarships and Fellowship Grants Social security and Medicare taxes, Students and Exchange Visitors Tax treaty exemption, Students, Apprentices, and Trainees Wage withholding exemption under tax treaty, Students, teachers, and researchers. Filing taxes for 2013 , Appendix A—Tax Treaty Exemption Procedure for Students Students and business apprentices from India, Students and business apprentices from India. Filing taxes for 2013 , Students and business apprentices from India. Filing taxes for 2013 , Students and business apprentices from India. Filing taxes for 2013 , Students and business apprentices from India. Filing taxes for 2013 Substantial presence test, Substantial Presence Test T Tax credits and payments Nonresident aliens, Nonresident Aliens Resident aliens, Tax Credits and Payments Tax help, How To Get Tax Help Tax home, Tax home. Filing taxes for 2013 , Tax home. Filing taxes for 2013 Tax paid on undistributed long-term capital gains, Tax paid on undistributed long-term capital gains. Filing taxes for 2013 Tax treaties Benefits, Treaty Income, Some Typical Tax Treaty Benefits Capital gains, Capital Gains Effect of, Effect of Tax Treaties Employees of foreign governments, Employees of Foreign Governments Exclusions from income, Income affected by treaties. Filing taxes for 2013 Income affected by, Income affected by treaties. Filing taxes for 2013 Reporting benefits claimed, Reporting Treaty Benefits Claimed Teachers and professors, Teachers, Professors, and Researchers Trainees, students, and apprentices, Students, Apprentices, and Trainees Tax Treaties Income entitled to benefits, Income Entitled to Tax Treaty Benefits Tax year, Tax Year, Tax Year Tax, expatriation, Expatriation Before June 4, 2004 Tax, transportation, Transportation Tax Taxpayer identification number Defined, Identification Number Penalty for failure to supply, Failure to supply taxpayer identification number. Filing taxes for 2013 Teachers Alien status, Teachers and trainees. Filing taxes for 2013 Tax treaty exemption, Teachers, Professors, and Researchers Wage withholding exemption under tax treaty, Students, teachers, and researchers. Filing taxes for 2013 , Appendix B—Tax Treaty Exemption Procedure for Teachers and Researchers Tie-breaker rule, Effect of Tax Treaties Tip income, Withholding on Tip Income Totalization agreements, International Social Security Agreements Trade or business, U. Filing taxes for 2013 S. Filing taxes for 2013 , Trade or Business in the United States Beneficiary of estate or trust, Beneficiary of an estate or trust. Filing taxes for 2013 Business operations, Business operations. Filing taxes for 2013 Income from U. Filing taxes for 2013 S. Filing taxes for 2013 sources, Effectively Connected Income Partnerships, Partnerships. Filing taxes for 2013 Personal services, Personal Services Students and trainees, Students and trainees. Filing taxes for 2013 Trading in stocks, securities, and commodities, Trading in stocks, securities, and commodities. Filing taxes for 2013 Trading in stocks, securities, and commodities, Trading in stocks, securities, and commodities. Filing taxes for 2013 Trainees, Teachers and trainees. Filing taxes for 2013 , Students and trainees. Filing taxes for 2013 Transportation income Connected with U. Filing taxes for 2013 S. Filing taxes for 2013 business, Transportation Income Source rule, Transportation Income Transportation of currency or monetary instruments, Other Forms You May Have To File Transportation tax, Transportation Tax Transportation-related employment, residents of Canada or Mexico, Residents of Canada or Mexico engaged in transportation-related employment. Filing taxes for 2013 Travel expenses, Travel expenses. Filing taxes for 2013 Treaties, income affected by, Income affected by treaties. Filing taxes for 2013 Treaty benefits for resident aliens, Resident Aliens Treaty benefits, reporting benefits claimed, Reporting Treaty Benefits Claimed Trust, beneficiary, Beneficiary of an estate or trust. Filing taxes for 2013 TTY/TDD information, How To Get Tax Help U U. 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Topic 602 - Child and Dependent Care Credit

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

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

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

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

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

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

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

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

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

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

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

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

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

Page Last Reviewed or Updated: December 12, 2013

The Filing Taxes For 2013

Filing taxes for 2013 4. Filing taxes for 2013   Foreign Earned Income and Housing: Exclusion – Deduction Table of Contents Topics - This chapter discusses: Useful Items - You may want to see: Who Qualifies for the Exclusions and the Deduction? RequirementsTax Home in Foreign Country Bona Fide Residence Test Physical Presence Test Waiver of Time Requirements U. Filing taxes for 2013 S. Filing taxes for 2013 Travel Restrictions Foreign Earned Income Foreign Earned Income ExclusionLimit on Excludable Amount Choosing the Exclusion Foreign Housing Exclusion and DeductionHousing Amount Foreign Housing Exclusion Foreign Housing Deduction Married Couples Form 2555 and Form 2555-EZForm 2555-EZ Form 2555 Topics - This chapter discusses: Who qualifies for the foreign earned income exclusion, the foreign housing exclusion, and the foreign housing deduction, The requirements that must be met to claim either exclusion or the deduction, How to figure the foreign earned income exclusion, and How to figure the foreign housing exclusion and the foreign housing deduction. Filing taxes for 2013 Useful Items - You may want to see: Publication 519 U. Filing taxes for 2013 S. Filing taxes for 2013 Tax Guide for Aliens 570 Tax Guide for Individuals With Income from U. Filing taxes for 2013 S. Filing taxes for 2013 Possessions 596 Earned Income Credit (EIC) Form (and Instructions) 1040X Amended U. Filing taxes for 2013 S. Filing taxes for 2013 Individual Income Tax Return 2555 Foreign Earned Income 2555-EZ Foreign Earned Income Exclusion See chapter 7 for information about getting these publications and forms. Filing taxes for 2013 Who Qualifies for the Exclusions and the Deduction? If you meet certain requirements, you may qualify for the foreign earned income and foreign housing exclusions and the foreign housing deduction. Filing taxes for 2013 If you are a U. Filing taxes for 2013 S. Filing taxes for 2013 citizen or a resident alien of the United States and you live abroad, you are taxed on your worldwide income. Filing taxes for 2013 However, you may qualify to exclude from income up to $97,600 of your foreign earnings. Filing taxes for 2013 In addition, you can exclude or deduct certain foreign housing amounts. Filing taxes for 2013 See Foreign Earned Income Exclusion and Foreign Housing Exclusion and Deduction, later. Filing taxes for 2013 You also may be entitled to exclude from income the value of meals and lodging provided to you by your employer. Filing taxes for 2013 See Exclusion of Meals and Lodging, later. Filing taxes for 2013 Requirements To claim the foreign earned income exclusion, the foreign housing exclusion, or the foreign housing deduction, you must meet all three of the following requirements. Filing taxes for 2013 Your tax home must be in a foreign country. Filing taxes for 2013 You must have foreign earned income. Filing taxes for 2013 You must be one of the following. Filing taxes for 2013 A U. Filing taxes for 2013 S. Filing taxes for 2013 citizen who is a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year. Filing taxes for 2013 A U. Filing taxes for 2013 S. Filing taxes for 2013 resident alien who is a citizen or national of a country with which the United States has an income tax treaty in effect and who is a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year. Filing taxes for 2013 A U. Filing taxes for 2013 S. Filing taxes for 2013 citizen or a U. Filing taxes for 2013 S. Filing taxes for 2013 resident alien who is physically present in a foreign country or countries for at least 330 full days during any period of 12 consecutive months. Filing taxes for 2013 See Publication 519 to find out if you are a U. Filing taxes for 2013 S. Filing taxes for 2013 resident alien for tax purposes and whether you keep that alien status when you temporarily work abroad. Filing taxes for 2013 If you are a nonresident alien married to a U. Filing taxes for 2013 S. Filing taxes for 2013 citizen or resident alien, and both you and your spouse choose to treat you as a resident alien, you are a resident alien for tax purposes. Filing taxes for 2013 For information on making the choice, see the discussion in chapter 1 under Nonresident Alien Spouse Treated as a Resident . Filing taxes for 2013 Waiver of minimum time requirements. Filing taxes for 2013   The minimum time requirements for bona fide residence and physical presence can be waived if you must leave a foreign country because of war, civil unrest, or similar adverse conditions in that country. Filing taxes for 2013 This is fully explained under Waiver of Time Requirements , later. Filing taxes for 2013   See Figure 4-A and information in this chapter to determine if you are eligible to claim either exclusion or the deduction. Filing taxes for 2013 Tax Home in Foreign Country To qualify for the foreign earned income exclusion, the foreign housing exclusion, or the foreign housing deduction, your tax home must be in a foreign country throughout your period of bona fide residence or physical presence abroad. Filing taxes for 2013 Bona fide residence and physical presence are explained later. Filing taxes for 2013 Tax Home Your tax home is the general area of your main place of business, employment, or post of duty, regardless of where you maintain your family home. Filing taxes for 2013 Your tax home is the place where you are permanently or indefinitely engaged to work as an employee or self-employed individual. Filing taxes for 2013 Having a “tax home” in a given location does not necessarily mean that the given location is your residence or domicile for tax purposes. Filing taxes for 2013 If you do not have a regular or main place of business because of the nature of your work, your tax home may be the place where you regularly live. Filing taxes for 2013 If you have neither a regular or main place of business nor a place where you regularly live, you are considered an itinerant and your tax home is wherever you work. Filing taxes for 2013 You are not considered to have a tax home in a foreign country for any period in which your abode is in the United States. Filing taxes for 2013 However, your abode is not necessarily in the United States while you are temporarily in the United States. Filing taxes for 2013 Your abode is also not necessarily in the United States merely because you maintain a dwelling in the United States, whether or not your spouse or dependents use the dwelling. Filing taxes for 2013 “Abode” has been variously defined as one's home, habitation, residence, domicile, or place of dwelling. Filing taxes for 2013 It does not mean your principal place of business. Filing taxes for 2013 “Abode” has a domestic rather than a vocational meaning and does not mean the same as “tax home. Filing taxes for 2013 ” The location of your abode often will depend on where you maintain your economic, family, and personal ties. Filing taxes for 2013 Example 1. Filing taxes for 2013 You are employed on an offshore oil rig in the territorial waters of a foreign country and work a 28-day on/28-day off schedule. Filing taxes for 2013 You return to your family residence in the United States during your off periods. Filing taxes for 2013 You are considered to have an abode in the United States and do not satisfy the tax home test in the foreign country. Filing taxes for 2013 You cannot claim either of the exclusions or the housing deduction. Filing taxes for 2013 Example 2. Filing taxes for 2013 For several years, you were a marketing executive with a producer of machine tools in Toledo, Ohio. Filing taxes for 2013 In November of last year, your employer transferred you to London, England, for a minimum of 18 months to set up a sales operation for Europe. Filing taxes for 2013 Before you left, you distributed business cards showing your business and home addresses in London. Filing taxes for 2013 You kept ownership of your home in Toledo but rented it to another family. Filing taxes for 2013 You placed your car in storage. Filing taxes for 2013 In November of last year, you moved your spouse, children, furniture, and family pets to a home your employer rented for you in London. Filing taxes for 2013 Shortly after moving, you leased a car and you and your spouse got British driving licenses. Filing taxes for 2013 Your entire family got library cards for the local public library. Filing taxes for 2013 You and your spouse opened bank accounts with a London bank and secured consumer credit. Filing taxes for 2013 You joined a local business league and both you and your spouse became active in the neighborhood civic association and worked with a local charity. Filing taxes for 2013 Your abode is in London for the time you live there. Filing taxes for 2013 You satisfy the tax home test in the foreign country. Filing taxes for 2013 Please click here for the text description of the image. Filing taxes for 2013 Figure 4–A Can I Claim the Exclusion or Deduction? Temporary or Indefinite Assignment The location of your tax home often depends on whether your assignment is temporary or indefinite. Filing taxes for 2013 If you are temporarily absent from your tax home in the United States on business, you may be able to deduct your away-from-home expenses (for travel, meals, and lodging), but you would not qualify for the foreign earned income exclusion. Filing taxes for 2013 If your new work assignment is for an indefinite period, your new place of employment becomes your tax home and you would not be able to deduct any of the related expenses that you have in the general area of this new work assignment. Filing taxes for 2013 If your new tax home is in a foreign country and you meet the other requirements, your earnings may qualify for the foreign earned income exclusion. Filing taxes for 2013 If you expect your employment away from home in a single location to last, and it does last, for 1 year or less, it is temporary unless facts and circumstances indicate otherwise. Filing taxes for 2013 If you expect it to last for more than 1 year, it is indefinite. Filing taxes for 2013 If you expect it to last for 1 year or less, but at some later date you expect it to last longer than 1 year, it is temporary (in the absence of facts and circumstances indicating otherwise) until your expectation changes. Filing taxes for 2013 Once your expectation changes, it is indefinite. Filing taxes for 2013 Foreign Country To meet the bona fide residence test or the physical presence test, you must live in or be present in a foreign country. Filing taxes for 2013 A foreign country includes any territory under the sovereignty of a government other than that of the United States. Filing taxes for 2013 The term “foreign country” includes the country's airspace and territorial waters, but not international waters and the airspace above them. Filing taxes for 2013 It also includes the seabed and subsoil of those submarine areas adjacent to the country's territorial waters over which it has exclusive rights under international law to explore and exploit the natural resources. Filing taxes for 2013 The term “foreign country” does not include Antarctica or U. Filing taxes for 2013 S. Filing taxes for 2013 possessions such as Puerto Rico, Guam, the Commonwealth of the Northern Mariana Islands, the U. Filing taxes for 2013 S. Filing taxes for 2013 Virgin Islands, and Johnston Island. Filing taxes for 2013 For purposes of the foreign earned income exclusion, the foreign housing exclusion, and the foreign housing deduction, the terms “foreign,” “abroad,” and “overseas” refer to areas outside the United States and those areas listed or described in the previous sentence. Filing taxes for 2013 American Samoa, Guam, and the Commonwealth of the Northern Mariana Islands Residence or presence in a U. Filing taxes for 2013 S. Filing taxes for 2013 possession does not qualify you for the foreign earned income exclusion. Filing taxes for 2013 You may, however, qualify for an exclusion of your possession income on your U. Filing taxes for 2013 S. Filing taxes for 2013 return. Filing taxes for 2013 American Samoa. Filing taxes for 2013   There is a possession exclusion available to individuals who are bona fide residents of American Samoa for the entire tax year. Filing taxes for 2013 Gross income from sources within American Samoa may be eligible for this exclusion. Filing taxes for 2013 Income that is effectively connected with the conduct of a trade or business within American Samoa also may be eligible for this exclusion. Filing taxes for 2013 Use Form 4563, Exclusion of Income for Bona Fide Residents of American Samoa, to figure the exclusion. Filing taxes for 2013 Guam and the Commonwealth of the Northern Mariana Islands. Filing taxes for 2013   An exclusion will be available to residents of Guam and the Commonwealth of the Northern Mariana Islands if, and when, new implementation agreements take effect between the United States and those possessions. Filing taxes for 2013   For more information, see Publication 570. Filing taxes for 2013 Puerto Rico and U. Filing taxes for 2013 S. Filing taxes for 2013 Virgin Islands Residents of Puerto Rico and the U. Filing taxes for 2013 S. Filing taxes for 2013 Virgin Islands cannot claim the foreign earned income exclusion or the foreign housing exclusion. Filing taxes for 2013 Puerto Rico. Filing taxes for 2013   Generally, if you are a U. Filing taxes for 2013 S. Filing taxes for 2013 citizen who is a bona fide resident of Puerto Rico for the entire tax year, you are not subject to U. Filing taxes for 2013 S. Filing taxes for 2013 tax on income from Puerto Rican sources. Filing taxes for 2013 This does not include amounts paid for services performed as an employee of the United States. Filing taxes for 2013 However, you are subject to U. Filing taxes for 2013 S. Filing taxes for 2013 tax on your income from sources outside Puerto Rico. Filing taxes for 2013 In figuring your U. Filing taxes for 2013 S. Filing taxes for 2013 tax, you cannot deduct expenses allocable to income not subject to tax. Filing taxes for 2013 Bona Fide Residence Test You meet the bona fide residence test if you are a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year. Filing taxes for 2013 You can use the bona fide residence test to qualify for the exclusions and the deduction only if you are either: A U. Filing taxes for 2013 S. Filing taxes for 2013 citizen, or A U. Filing taxes for 2013 S. Filing taxes for 2013 resident alien who is a citizen or national of a country with which the United States has an income tax treaty in effect. Filing taxes for 2013 You do not automatically acquire bona fide resident status merely by living in a foreign country or countries for 1 year. Filing taxes for 2013 If you go to a foreign country to work on a particular job for a specified period of time, you ordinarily will not be regarded as a bona fide resident of that country even though you work there for 1 tax year or longer. Filing taxes for 2013 The length of your stay and the nature of your job are only two of the factors to be considered in determining whether you meet the bona fide residence test. Filing taxes for 2013 Bona fide residence. Filing taxes for 2013   To meet the bona fide residence test, you must have established a bona fide residence in a foreign country. Filing taxes for 2013   Your bona fide residence is not necessarily the same as your domicile. Filing taxes for 2013 Your domicile is your permanent home, the place to which you always return or intend to return. Filing taxes for 2013 Example. Filing taxes for 2013 You could have your domicile in Cleveland, Ohio, and a bona fide residence in Edinburgh, Scotland, if you intend to return eventually to Cleveland. Filing taxes for 2013 The fact that you go to Scotland does not automatically make Scotland your bona fide residence. Filing taxes for 2013 If you go there as a tourist, or on a short business trip, and return to the United States, you have not established bona fide residence in Scotland. Filing taxes for 2013 But if you go to Scotland to work for an indefinite or extended period and you set up permanent quarters there for yourself and your family, you probably have established a bona fide residence in a foreign country, even though you intend to return eventually to the United States. Filing taxes for 2013 You are clearly not a resident of Scotland in the first instance. Filing taxes for 2013 However, in the second, you are a resident because your stay in Scotland appears to be permanent. Filing taxes for 2013 If your residency is not as clearly defined as either of these illustrations, it may be more difficult to decide whether you have established a bona fide residence. Filing taxes for 2013 Determination. Filing taxes for 2013   Questions of bona fide residence are determined according to each individual case, taking into account factors such as your intention, the purpose of your trip, and the nature and length of your stay abroad. Filing taxes for 2013   To meet the bona fide residence test, you must show the Internal Revenue Service (IRS) that you have been a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year. Filing taxes for 2013 The IRS decides whether you are a bona fide resident of a foreign country largely on the basis of facts you report on Form 2555. Filing taxes for 2013 IRS cannot make this determination until you file Form 2555. Filing taxes for 2013 Statement to foreign authorities. Filing taxes for 2013   You are not considered a bona fide resident of a foreign country if you make a statement to the authorities of that country that you are not a resident of that country, and the authorities: Hold that you are not subject to their income tax laws as a resident, or Have not made a final decision on your status. Filing taxes for 2013 Special agreements and treaties. Filing taxes for 2013   An income tax exemption provided in a treaty or other international agreement will not in itself prevent you from being a bona fide resident of a foreign country. Filing taxes for 2013 Whether a treaty prevents you from becoming a bona fide resident of a foreign country is determined under all provisions of the treaty, including specific provisions relating to residence or privileges and immunities. Filing taxes for 2013 Example 1. Filing taxes for 2013 You are a U. Filing taxes for 2013 S. Filing taxes for 2013 citizen employed in the United Kingdom by a U. Filing taxes for 2013 S. Filing taxes for 2013 employer under contract with the U. Filing taxes for 2013 S. Filing taxes for 2013 Armed Forces. Filing taxes for 2013 You are not subject to the North Atlantic Treaty Status of Forces Agreement. Filing taxes for 2013 You may be a bona fide resident of the United Kingdom. Filing taxes for 2013 Example 2. Filing taxes for 2013 You are a U. Filing taxes for 2013 S. Filing taxes for 2013 citizen in the United Kingdom who qualifies as an “employee” of an armed service or as a member of a “civilian component” under the North Atlantic Treaty Status of Forces Agreement. Filing taxes for 2013 You are not a bona fide resident of the United Kingdom. Filing taxes for 2013 Example 3. Filing taxes for 2013 You are a U. Filing taxes for 2013 S. Filing taxes for 2013 citizen employed in Japan by a U. Filing taxes for 2013 S. Filing taxes for 2013 employer under contract with the U. Filing taxes for 2013 S. Filing taxes for 2013 Armed Forces. Filing taxes for 2013 You are subject to the agreement of the Treaty of Mutual Cooperation and Security between the United States and Japan. Filing taxes for 2013 Being subject to the agreement does not make you a bona fide resident of Japan. Filing taxes for 2013 Example 4. Filing taxes for 2013 You are a U. Filing taxes for 2013 S. Filing taxes for 2013 citizen employed as an “official” by the United Nations in Switzerland. Filing taxes for 2013 You are exempt from Swiss taxation on the salary or wages paid to you by the United Nations. Filing taxes for 2013 This does not prevent you from being a bona fide resident of Switzerland. Filing taxes for 2013 Effect of voting by absentee ballot. Filing taxes for 2013   If you are a U. Filing taxes for 2013 S. Filing taxes for 2013 citizen living abroad, you can vote by absentee ballot in any election held in the United States without risking your status as a bona fide resident of a foreign country. Filing taxes for 2013   However, if you give information to the local election officials about the nature and length of your stay abroad that does not match the information you give for the bona fide residence test, the information given in connection with absentee voting will be considered in determining your status, but will not necessarily be conclusive. Filing taxes for 2013 Uninterrupted period including entire tax year. Filing taxes for 2013   To meet the bona fide residence test, you must reside in a foreign country or countries for an uninterrupted period that includes an entire tax year. Filing taxes for 2013 An entire tax year is from January 1 through December 31 for taxpayers who file their income tax returns on a calendar year basis. Filing taxes for 2013   During the period of bona fide residence in a foreign country, you can leave the country for brief or temporary trips back to the United States or elsewhere for vacation or business. Filing taxes for 2013 To keep your status as a bona fide resident of a foreign country, you must have a clear intention of returning from such trips, without unreasonable delay, to your foreign residence or to a new bona fide residence in another foreign country. Filing taxes for 2013 Example 1. Filing taxes for 2013 You arrived with your family in Lisbon, Portugal, on November 1, 2011. Filing taxes for 2013 Your assignment is indefinite, and you intend to live there with your family until your company sends you to a new post. Filing taxes for 2013 You immediately established residence there. Filing taxes for 2013 You spent April of 2012 at a business conference in the United States. Filing taxes for 2013 Your family stayed in Lisbon. Filing taxes for 2013 Immediately following the conference, you returned to Lisbon and continued living there. Filing taxes for 2013 On January 1, 2013, you completed an uninterrupted period of residence for a full tax year (2012), and you meet the bona fide residence test. Filing taxes for 2013 Example 2. Filing taxes for 2013 Assume the same facts as in Example 1, except that you transferred back to the United States on December 13, 2012. Filing taxes for 2013 You would not meet the bona fide residence test because your bona fide residence in the foreign country, although it lasted more than a year, did not include a full tax year. Filing taxes for 2013 You may, however, qualify for the foreign earned income exclusion or the housing exclusion or deduction under the physical presence test (discussed later). Filing taxes for 2013 Bona fide resident for part of a year. Filing taxes for 2013   Once you have established bona fide residence in a foreign country for an uninterrupted period that includes an entire tax year, you are a bona fide resident of that country for the period starting with the date you actually began the residence and ending with the date you abandon the foreign residence. Filing taxes for 2013 Your period of bona fide residence can include an entire tax year plus parts of 2 other tax years. Filing taxes for 2013 Example. Filing taxes for 2013 You were a bona fide resident of Singapore from March 1, 2011, through September 14, 2013. Filing taxes for 2013 On September 15, 2013, you returned to the United States. Filing taxes for 2013 Since you were a bona fide resident of a foreign country for all of 2012, you were also a bona fide resident of a foreign country from March 1, 2011, through the end of 2011 and from January 1, 2013, through September 14, 2013. Filing taxes for 2013 Reassignment. Filing taxes for 2013   If you are assigned from one foreign post to another, you may or may not have a break in foreign residence between your assignments, depending on the circumstances. Filing taxes for 2013 Example 1. Filing taxes for 2013 You were a resident of Pakistan from October 1, 2012, through November 30, 2013. Filing taxes for 2013 On December 1, 2013, you and your family returned to the United States to wait for an assignment to another foreign country. Filing taxes for 2013 Your household goods also were returned to the United States. Filing taxes for 2013 Your foreign residence ended on November 30, 2013, and did not begin again until after you were assigned to another foreign country and physically entered that country. Filing taxes for 2013 Since you were not a bona fide resident of a foreign country for the entire tax year of 2012 or 2013 you do not meet the bona fide residence test in either year. Filing taxes for 2013 You may, however, qualify for the foreign earned income exclusion or the housing exclusion or deduction under the physical presence test, discussed later. Filing taxes for 2013 Example 2. Filing taxes for 2013 Assume the same facts as in Example 1, except that upon completion of your assignment in Pakistan you were given a new assignment to Turkey. Filing taxes for 2013 On December 1, 2013, you and your family returned to the United States for a month's vacation. Filing taxes for 2013 On January 2, 2014, you arrived in Turkey for your new assignment. Filing taxes for 2013 Because you did not interrupt your bona fide residence abroad, you meet the bona fide residence test. Filing taxes for 2013 Physical Presence Test You meet the physical presence test if you are physically present in a foreign country or countries 330 full days during a period of 12 consecutive months. Filing taxes for 2013 The 330 days do not have to be consecutive. Filing taxes for 2013 Any U. Filing taxes for 2013 S. Filing taxes for 2013 citizen or resident alien can use the physical presence test to qualify for the exclusions and the deduction. Filing taxes for 2013 The physical presence test is based only on how long you stay in a foreign country or countries. Filing taxes for 2013 This test does not depend on the kind of residence you establish, your intentions about returning, or the nature and purpose of your stay abroad. Filing taxes for 2013 330 full days. Filing taxes for 2013   Generally, to meet the physical presence test, you must be physically present in a foreign country or countries for at least 330 full days during a 12-month period. Filing taxes for 2013 You can count days you spent abroad for any reason. Filing taxes for 2013 You do not have to be in a foreign country only for employment purposes. Filing taxes for 2013 You can be on vacation. Filing taxes for 2013   You do not meet the physical presence test if illness, family problems, a vacation, or your employer's orders cause you to be present for less than the required amount of time. Filing taxes for 2013 Exception. Filing taxes for 2013   You can be physically present in a foreign country or countries for less than 330 full days and still meet the physical presence test if you are required to leave a country because of war or civil unrest. Filing taxes for 2013 See Waiver of Time Requirements, later. Filing taxes for 2013 Full day. Filing taxes for 2013   A full day is a period of 24 consecutive hours, beginning at midnight. Filing taxes for 2013 Travel. Filing taxes for 2013    When you leave the United States to go directly to a foreign country or when you return directly to the United States from a foreign country, the time you spend on or over international waters does not count toward the 330-day total. Filing taxes for 2013 Example. Filing taxes for 2013 You leave the United States for France by air on June 10. Filing taxes for 2013 You arrive in France at 9:00 a. Filing taxes for 2013 m. Filing taxes for 2013 on June 11. Filing taxes for 2013 Your first full day of physical presence in France is June 12. Filing taxes for 2013 Passing over foreign country. Filing taxes for 2013   If, in traveling from the United States to a foreign country, you pass over a foreign country before midnight of the day you leave, the first day you can count toward the 330-day total is the day following the day you leave the United States. Filing taxes for 2013 Example. Filing taxes for 2013 You leave the United States by air at 9:30 a. Filing taxes for 2013 m. Filing taxes for 2013 on June 10 to travel to Kenya. Filing taxes for 2013 You pass over western Africa at 11:00 p. Filing taxes for 2013 m. Filing taxes for 2013 on June 10 and arrive in Kenya at 12:30 a. Filing taxes for 2013 m. Filing taxes for 2013 on June 11. Filing taxes for 2013 Your first full day in a foreign country is June 11. Filing taxes for 2013 Change of location. Filing taxes for 2013   You can move about from one place to another in a foreign country or to another foreign country without losing full days. Filing taxes for 2013 If any part of your travel is not within any foreign country and takes less than 24 hours, you are considered to be in a foreign country during that part of travel. Filing taxes for 2013 Example 1. Filing taxes for 2013 You leave Ireland by air at 11:00 p. Filing taxes for 2013 m. Filing taxes for 2013 on July 6 and arrive in Sweden at 5:00 a. Filing taxes for 2013 m. Filing taxes for 2013 on July 7. Filing taxes for 2013 Your trip takes less than 24 hours and you lose no full days. Filing taxes for 2013 Example 2. Filing taxes for 2013 You leave Norway by ship at 10:00 p. Filing taxes for 2013 m. Filing taxes for 2013 on July 6 and arrive in Portugal at 6:00 a. Filing taxes for 2013 m. Filing taxes for 2013 on July 8. Filing taxes for 2013 Since your travel is not within a foreign country or countries and the trip takes more than 24 hours, you lose as full days July 6, 7, and 8. Filing taxes for 2013 If you remain in Portugal, your next full day in a foreign country is July 9. Filing taxes for 2013 In United States while in transit. Filing taxes for 2013   If you are in transit between two points outside the United States and are physically present in the United States for less than 24 hours, you are not treated as present in the United States during the transit. Filing taxes for 2013 You are treated as traveling over areas not within any foreign country. Filing taxes for 2013    Please click here for the text description of the image. Filing taxes for 2013 Figure 4-B How to figure the 12-month period. Filing taxes for 2013   There are four rules you should know when figuring the 12-month period. Filing taxes for 2013 Your 12-month period can begin with any day of the month. Filing taxes for 2013 It ends the day before the same calendar day, 12 months later. Filing taxes for 2013 Your 12-month period must be made up of consecutive months. Filing taxes for 2013 Any 12-month period can be used if the 330 days in a foreign country fall within that period. Filing taxes for 2013 You do not have to begin your 12-month period with your first full day in a foreign country or end it with the day you leave. Filing taxes for 2013 You can choose the 12-month period that gives you the greatest exclusion. Filing taxes for 2013 In determining whether the 12-month period falls within a longer stay in the foreign country, 12-month periods can overlap one another. Filing taxes for 2013 Example 1. Filing taxes for 2013 You are a construction worker who works on and off in a foreign country over a 20-month period. Filing taxes for 2013 You might pick up the 330 full days in a 12-month period only during the middle months of the time you work in the foreign country because the first few and last few months of the 20-month period are broken up by long visits to the United States. Filing taxes for 2013 Example 2. Filing taxes for 2013 You work in New Zealand for a 20-month period from January 1, 2012, through August 31, 2013, except that you spend 28 days in February 2012 and 28 days in February 2013 on vacation in the United States. Filing taxes for 2013 You are present in New Zealand for at least 330 full days during each of the following two 12-month periods: January 1, 2012 – December 31, 2012 and September 1, 2012 – August 31, 2013. Filing taxes for 2013 By overlapping the 12-month periods in this way, you meet the physical presence test for the whole 20-month period. Filing taxes for 2013 See Figure 4-B, on the previous page. Filing taxes for 2013 Waiver of Time Requirements Both the bona fide residence test and the physical presence test contain minimum time requirements. Filing taxes for 2013 The minimum time requirements can be waived, however, if you must leave a foreign country because of war, civil unrest, or similar adverse conditions in that country. Filing taxes for 2013 You must be able to show that you reasonably could have expected to meet the minimum time requirements if not for the adverse conditions. Filing taxes for 2013 To qualify for the waiver, you must actually have your tax home in the foreign country and be a bona fide resident of, or be physically present in, the foreign country on or before the beginning date of the waiver. Filing taxes for 2013 Early in 2014, the IRS will publish in the Internal Revenue Bulletin a list of the only countries that qualify for the waiver for 2013 and the effective dates. Filing taxes for 2013 If you left one of the countries on or after the date listed for each country, you can meet the bona fide residence test or physical presence test for 2013 without meeting the minimum time requirement. Filing taxes for 2013 However, in figuring your exclusion, the number of your qualifying days of bona fide residence or physical presence includes only days of actual residence or presence within the country. Filing taxes for 2013 U. Filing taxes for 2013 S. Filing taxes for 2013 Travel Restrictions If you are present in a foreign country in violation of U. Filing taxes for 2013 S. Filing taxes for 2013 law, you will not be treated as a bona fide resident of a foreign country or as physically present in a foreign country while you are in violation of the law. Filing taxes for 2013 Income that you earn from sources within such a country for services performed during a period of violation does not qualify as foreign earned income. Filing taxes for 2013 Your housing expenses within that country (or outside that country for housing your spouse or dependents) while you are in violation of the law cannot be included in figuring your foreign housing amount. Filing taxes for 2013 For 2013, the only country to which travel restrictions applied was Cuba. Filing taxes for 2013 The restrictions applied for the entire year. Filing taxes for 2013 However, individuals working at the U. Filing taxes for 2013 S. Filing taxes for 2013 Naval Base at Guantanamo Bay in Cuba are not in violation of U. Filing taxes for 2013 S. Filing taxes for 2013 law. Filing taxes for 2013 Personal service income earned by individuals at the base is eligible for the foreign earned income exclusion provided the other requirements are met. Filing taxes for 2013 Foreign Earned Income To claim the foreign earned income exclusion, the foreign housing exclusion, or the foreign housing deduction, you must have foreign earned income. Filing taxes for 2013 Foreign earned income generally is income you receive for services you perform during a period in which you meet both of the following requirements. Filing taxes for 2013 Your tax home is in a foreign country. Filing taxes for 2013 You meet either the bona fide residence test or the physical presence test. Filing taxes for 2013 To determine whether your tax home is in a foreign country, see Tax Home in Foreign Country, earlier. Filing taxes for 2013 To determine whether you meet either the bona fide residence test or the physical presence test, see Bona Fide Residence Test and Physical Presence Test, earlier. Filing taxes for 2013 Foreign earned income does not include the following amounts. Filing taxes for 2013 The value of meals and lodging that you exclude from your income because the meals and lodging were furnished for the convenience of your employer. Filing taxes for 2013 Pension or annuity payments you receive, including social security benefits (see Pensions and annuities, later). Filing taxes for 2013 Pay you receive as an employee of the U. Filing taxes for 2013 S. Filing taxes for 2013 Government. Filing taxes for 2013 (See U. Filing taxes for 2013 S. Filing taxes for 2013 Government Employees, later. Filing taxes for 2013 ) Amounts you include in your income because of your employer's contributions to a nonexempt employee trust or to a nonqualified annuity contract. Filing taxes for 2013 Any unallowable moving expense deduction that you choose to recapture as explained under Moving Expense Attributable to Foreign Earnings in 2 Years in chapter 5. Filing taxes for 2013 Payments you receive after the end of the tax year following the tax year in which you performed the services that earned the income. Filing taxes for 2013 Earned income. Filing taxes for 2013   This is pay for personal services performed, such as wages, salaries, or professional fees. Filing taxes for 2013 The list that follows classifies many types of income into three categories. Filing taxes for 2013 The column headed Variable Income lists income that may fall into either the earned income category, the unearned income category, or partly into both. Filing taxes for 2013 For more information on earned and unearned income, see Earned and Unearned Income, later. Filing taxes for 2013 Earned Income Unearned Income Variable Income Salaries and wages Dividends Business profits Commissions Interest Royalties Bonuses Capital gains Rents Professional fees Gambling winnings Scholarships and fellowships Tips Alimony     Social security benefits     Pensions     Annuities     In addition to the types of earned income listed, certain noncash income and allowances or reimbursements are considered earned income. Filing taxes for 2013 Noncash income. Filing taxes for 2013   The fair market value of property or facilities provided to you by your employer in the form of lodging, meals, or use of a car is earned income. Filing taxes for 2013 Allowances or reimbursements. Filing taxes for 2013   Earned income includes allowances or reimbursements you receive, such as the following amounts. Filing taxes for 2013    Cost-of-living allowances. Filing taxes for 2013 Overseas differential. Filing taxes for 2013 Family allowance. Filing taxes for 2013 Reimbursement for education or education allowance. Filing taxes for 2013 Home leave allowance. Filing taxes for 2013 Quarters allowance. Filing taxes for 2013 Reimbursement for moving or moving allowance (unless excluded from income as discussed later in Reimbursement of employee expenses under Earned and Unearned Income). Filing taxes for 2013 Source of Earned Income The source of your earned income is the place where you perform the services for which you received the income. Filing taxes for 2013 Foreign earned income is income you receive for working in a foreign country. Filing taxes for 2013 Where or how you are paid has no effect on the source of the income. Filing taxes for 2013 For example, income you receive for work done in Austria is income from a foreign source even if the income is paid directly to your bank account in the United States and your employer is located in New York City. Filing taxes for 2013 Example. Filing taxes for 2013 You are a U. Filing taxes for 2013 S. Filing taxes for 2013 citizen, a bona fide resident of Canada, and working as a mining engineer. Filing taxes for 2013 Your salary is $76,800 per year. Filing taxes for 2013 You also receive a $6,000 cost-of-living allowance, and a $6,000 education allowance. Filing taxes for 2013 Your employment contract did not indicate that you were entitled to these allowances only while outside the United States. Filing taxes for 2013 Your total income is $88,800. Filing taxes for 2013 You work a 5-day week, Monday through Friday. Filing taxes for 2013 After subtracting your vacation, you have a total of 240 workdays in the year. Filing taxes for 2013 You worked in the United States during the year for 6 weeks (30 workdays). Filing taxes for 2013 The following shows how to figure the part of your income that is for work done in Canada during the year. Filing taxes for 2013   Number of days worked in Canada during the year (210) × Total income ($88,800) = $77,700     Number of days of work during the year for which payment was made (240)   Your foreign source earned income is $77,700. Filing taxes for 2013 Earned and Unearned Income Earned income was defined earlier as pay for personal services performed. Filing taxes for 2013 Some types of income are not easily identified as earned or unearned income. Filing taxes for 2013 Some of these types of income are further explained here. Filing taxes for 2013 Income from a sole proprietorship or partnership. Filing taxes for 2013   Income from a business in which capital investment is an important part of producing the income may be unearned income. Filing taxes for 2013 If you are a sole proprietor or partner and your personal services are also an important part of producing the income, the part of the income that represents the value of your personal services will be treated as earned income. Filing taxes for 2013 Capital a factor. Filing taxes for 2013   If capital investment is an important part of producing income, no more than 30% of your share of the net profits of the business is earned income. Filing taxes for 2013   If you have no net profits, the part of your gross profit that represents a reasonable allowance for personal services actually performed is considered earned income. Filing taxes for 2013 Because you do not have a net profit, the 30% limit does not apply. Filing taxes for 2013 Example 1. Filing taxes for 2013 You are a U. Filing taxes for 2013 S. Filing taxes for 2013 citizen and meet the bona fide residence test. Filing taxes for 2013 You invest in a partnership based in Cameroon that is engaged solely in selling merchandise outside the United States. Filing taxes for 2013 You perform no services for the partnership. Filing taxes for 2013 At the end of the tax year, your share of the net profits is $80,000. Filing taxes for 2013 The entire $80,000 is unearned income. Filing taxes for 2013 Example 2. Filing taxes for 2013 Assume that in Example 1 you spend time operating the business. Filing taxes for 2013 Your share of the net profits is $80,000; 30% of your share of the profits is $24,000. Filing taxes for 2013 If the value of your services for the year is $15,000, your earned income is limited to the value of your services, $15,000. Filing taxes for 2013 Capital not a factor. Filing taxes for 2013   If capital is not an income-producing factor and personal services produce the business income, the 30% rule does not apply. Filing taxes for 2013 The entire amount of business income is earned income. Filing taxes for 2013 Example. Filing taxes for 2013 You and Lou Green are management consultants and operate as equal partners in performing services outside the United States. Filing taxes for 2013 Because capital is not an income- producing factor, all the income from the partnership is considered earned income. Filing taxes for 2013 Income from a corporation. Filing taxes for 2013   The salary you receive from a corporation is earned income only if it represents a reasonable allowance as compensation for work you do for the corporation. Filing taxes for 2013 Any amount over what is considered a reasonable salary is unearned income. Filing taxes for 2013 Example 1. Filing taxes for 2013 You are a U. Filing taxes for 2013 S. Filing taxes for 2013 citizen and an officer and stockholder of a corporation in Honduras. Filing taxes for 2013 You perform no work or service of any kind for the corporation. Filing taxes for 2013 During the tax year you receive a $10,000 “salary” from the corporation. Filing taxes for 2013 The $10,000 clearly is not for personal services and is unearned income. Filing taxes for 2013 Example 2. Filing taxes for 2013 You are a U. Filing taxes for 2013 S. Filing taxes for 2013 citizen and work full time as secretary-treasurer of your corporation. Filing taxes for 2013 During the tax year you receive $100,000 as salary from the corporation. Filing taxes for 2013 If $80,000 is a reasonable allowance as pay for the work you did, then $80,000 is earned income. Filing taxes for 2013 Stock options. Filing taxes for 2013   You may have earned income if you disposed of stock that you got by exercising a stock option granted to you under an employee stock purchase plan. Filing taxes for 2013   If your gain on the disposition of stock you got by exercising an option is treated as capital gain, your gain is unearned income. Filing taxes for 2013   However, if you disposed of the stock less than 2 years after you were granted the option or less than 1 year after you got the stock, part of the gain on the disposition may be earned income. Filing taxes for 2013 It is considered received in the year you disposed of the stock and earned in the year you performed the services for which you were granted the option. Filing taxes for 2013 Any part of the earned income that is due to work you did outside the United States is foreign earned income. Filing taxes for 2013   See Publication 525, Taxable and Nontaxable Income, for a discussion of the treatment of stock options. Filing taxes for 2013 Pensions and annuities. Filing taxes for 2013    For purposes of the foreign earned income exclusion, the foreign housing exclusion, and the foreign housing deduction, amounts received as pensions or annuities are unearned income. Filing taxes for 2013 Royalties. Filing taxes for 2013   Royalties from the leasing of oil and mineral lands and patents generally are a form of rent or dividends and are unearned income. Filing taxes for 2013   Royalties received by a writer are earned income if they are received: For the transfer of property rights of the writer in the writer's product, or Under a contract to write a book or series of articles. Filing taxes for 2013 Rental income. Filing taxes for 2013   Generally, rental income is unearned income. Filing taxes for 2013 If you perform personal services in connection with the production of rent, up to 30% of your net rental income can be considered earned income. Filing taxes for 2013 Example. Filing taxes for 2013 Larry Smith, a U. Filing taxes for 2013 S. Filing taxes for 2013 citizen living in Australia, owns and operates a rooming house in Sydney. Filing taxes for 2013 If he is operating the rooming house as a business that requires capital and personal services, he can consider up to 30% of net rental income as earned income. Filing taxes for 2013 On the other hand, if he just owns the rooming house and performs no personal services connected with its operation, except perhaps making minor repairs and collecting rents, none of his net income from the house is considered earned income. Filing taxes for 2013 It is all unearned income. Filing taxes for 2013 Professional fees. Filing taxes for 2013   If you are engaged in a professional occupation (such as a doctor or lawyer), all fees received in the performance of these services are earned income. Filing taxes for 2013 Income of an artist. Filing taxes for 2013   Income you receive from the sale of paintings you created is earned income. Filing taxes for 2013 Scholarships and fellowships. Filing taxes for 2013   Any portion of a scholarship or fellowship grant that is paid to you for teaching, research or other services is considered earned income if you must include it in your gross income. Filing taxes for 2013 If the payer of the grant is required to provide you with a Form W-2, Wage and Tax Statement, these amounts will be listed as wages. Filing taxes for 2013    Certain scholarship and fellowship income may be exempt under other provisions. Filing taxes for 2013 See Publication 970, Tax Benefits for Education, chapter 1. Filing taxes for 2013 Use of employer's property or facilities. Filing taxes for 2013   If you receive fringe benefits in the form of the right to use your employer's property or facilities, the fair market value of that right is earned income. Filing taxes for 2013 Fair market value is the price at which the property would change hands between a willing buyer and a willing seller, neither being required to buy or sell, and both having reasonable knowledge of all the necessary facts. Filing taxes for 2013 Example. Filing taxes for 2013 You are privately employed and live in Japan all year. Filing taxes for 2013 You are paid a salary of $6,000 a month. Filing taxes for 2013 You live rent-free in a house provided by your employer that has a fair rental value of $3,000 a month. Filing taxes for 2013 The house is not provided for your employer's convenience. Filing taxes for 2013 You report on the calendar-year, cash basis. Filing taxes for 2013 You received $72,000 salary from foreign sources plus $36,000 fair rental value of the house, or a total of $108,000 of earned income. Filing taxes for 2013 Reimbursement of employee expenses. Filing taxes for 2013   If you are reimbursed under an accountable plan (defined below) for expenses you incur on your employer's behalf and you have adequately accounted to your employer for the expenses, do not include the reimbursement for those expenses in your earned income. Filing taxes for 2013   The expenses for which you are reimbursed are not considered allocable (related) to your earned income. Filing taxes for 2013 If expenses and reimbursement are equal, there is nothing to allocate to excluded income. Filing taxes for 2013 If expenses are more than the reimbursement, the unreimbursed expenses are considered to have been incurred in producing earned income and must be divided between your excluded and included income in determining the amount of unreimbursed expenses you can deduct. Filing taxes for 2013 (See chapter 5. Filing taxes for 2013 ) If the reimbursement is more than the expenses, no expenses remain to be divided between excluded and included income and the excess reimbursement must be included in earned income. Filing taxes for 2013   These rules do not apply to the following individuals. Filing taxes for 2013 Straight-commission salespersons. Filing taxes for 2013 Employees who have arrangements with their employers under which taxes are not withheld on a percentage of the commissions because the employers consider that percentage to be attributable to the employees' expenses. Filing taxes for 2013 Accountable plan. Filing taxes for 2013   An accountable plan is a reimbursement or allowance arrangement that includes all three of the following rules. Filing taxes for 2013 The expenses covered under the plan must have a business connection. Filing taxes for 2013 The employee must adequately account to the employer for these expenses within a reasonable period of time. Filing taxes for 2013 The employee must return any excess reimbursement or allowance within a reasonable period of time. Filing taxes for 2013 Reimbursement of moving expenses. Filing taxes for 2013   Reimbursement of moving expenses may be earned income. Filing taxes for 2013 You must include as earned income: Any reimbursements of, or payments for, nondeductible moving expenses, Reimbursements that are more than your deductible expenses and that you do not return to your employer, Any reimbursements made (or treated as made) under a nonaccountable plan (any plan that does not meet the rules listed above for an accountable plan), even if they are for deductible expenses, and Any reimbursement of moving expenses you deducted in an earlier year. Filing taxes for 2013 This section discusses reimbursements that must be included in earned income. Filing taxes for 2013 Publication 521, Moving Expenses, discusses additional rules that apply to moving expense deductions and reimbursements. Filing taxes for 2013   The rules for determining when the reimbursement is considered earned or where the reimbursement is considered earned may differ somewhat from the general rules previously discussed. Filing taxes for 2013   Although you receive the reimbursement in one tax year, it may be considered earned for services performed, or to be performed, in another tax year. Filing taxes for 2013 You must report the reimbursement as income on your return in the year you receive it, even if it is considered earned during a different year. Filing taxes for 2013 Move from U. Filing taxes for 2013 S. Filing taxes for 2013 to foreign country. Filing taxes for 2013   If you move from the United States to a foreign country, your moving expense reimbursement is generally considered pay for future services to be performed at the new location. Filing taxes for 2013 The reimbursement is considered earned solely in the year of the move if you qualify for the exclusion for a period that includes at least 120 days during that tax year. Filing taxes for 2013   If you are neither a bona fide resident of nor physically present in a foreign country or countries for a period that includes 120 days during the year of the move, a portion of the reimbursement is considered earned in the year of the move and a portion is considered earned in the year following the year of the move. Filing taxes for 2013 To figure the amount earned in the year of the move, multiply the reimbursement by a fraction. Filing taxes for 2013 The numerator (top number) is the number of days in your qualifying period that fall within the year of the move, and the denominator (bottom number) is the total number of days in the year of the move. Filing taxes for 2013   The difference between the total reimbursement and the amount considered earned in the year of the move is the amount considered earned in the year following the year of the move. Filing taxes for 2013 The part earned in each year is figured as shown in the following example. Filing taxes for 2013 Example. Filing taxes for 2013 You are a U. Filing taxes for 2013 S. Filing taxes for 2013 citizen working in the United States. Filing taxes for 2013 You were told in October 2012 that you were being transferred to a foreign country. Filing taxes for 2013 You arrived in the foreign country on December 15, 2012, and you are a bona fide resident for the remainder of 2012 and all of 2013. Filing taxes for 2013 Your employer reimbursed you $2,000 in January 2013 for the part of the moving expense that you were not allowed to deduct. Filing taxes for 2013 Because you did not qualify for the exclusion under the bona fide residence test for at least 120 days in 2012 (the year of the move), the reimbursement is considered pay for services performed in the foreign country for both 2012 and 2013. Filing taxes for 2013 You figure the part of the reimbursement for services performed in the foreign country in 2012 by multiplying the total reimbursement by a fraction. Filing taxes for 2013 The fraction is the number of days during which you were a bona fide resident in 2012 (the year of the move) divided by 366. Filing taxes for 2013 The remaining part of the reimbursement is for services performed in the foreign country in 2013. Filing taxes for 2013 This computation is used only to determine when the reimbursement is considered earned. Filing taxes for 2013 You would include the amount of the reimbursement in income in 2013, the year you received it. Filing taxes for 2013 Move between foreign countries. Filing taxes for 2013   If you move between foreign countries, any moving expense reimbursement that you must include in income will be considered earned in the year of the move if you qualify for the foreign earned income exclusion for a period that includes at least 120 days in the year of the move. Filing taxes for 2013 Move to U. Filing taxes for 2013 S. Filing taxes for 2013   If you move to the United States, the moving expense reimbursement that you must include in income is generally considered to be U. Filing taxes for 2013 S. Filing taxes for 2013 source income. Filing taxes for 2013   However, if under either an agreement between you and your employer or a statement of company policy that is reduced to writing before your move to the foreign country, your employer will reimburse you for your move back to the United States regardless of whether you continue to work for the employer, the includible reimbursement is considered compensation for past services performed in the foreign country. Filing taxes for 2013 The includible reimbursement is considered earned in the year of the move if you qualify for the foreign earned income exclusion for a period that includes at least 120 days during that year. Filing taxes for 2013 Otherwise, you treat the includible reimbursement as received for services performed in the foreign country in the year of the move and the year immediately before the year of the move. Filing taxes for 2013   See the discussion under Move from U. Filing taxes for 2013 S. Filing taxes for 2013 to foreign country , earlier, to figure the amount of the includible reimbursement considered earned in the year of the move. Filing taxes for 2013 The amount earned in the year before the year of the move is the difference between the total includible reimbursement and the amount earned in the year of the move. Filing taxes for 2013 Example. Filing taxes for 2013 You are a U. Filing taxes for 2013 S. Filing taxes for 2013 citizen employed in a foreign country. Filing taxes for 2013 You retired from employment with your employer on March 31, 2013, and returned to the United States after having been a bona fide resident of the foreign country for several years. Filing taxes for 2013 A written agreement with your employer entered into before you went abroad provided that you would be reimbursed for your move back to the United States. Filing taxes for 2013 In April 2013, your former employer reimbursed you $4,000 for the part of the cost of your move back to the United States that you were not allowed to deduct. Filing taxes for 2013 Because you were not a bona fide resident of a foreign country or countries for a period that included at least 120 days in 2013 (the year of the move), the includible reimbursement is considered pay for services performed in the foreign country for both 2013 and 2012. Filing taxes for 2013 You figure the part of the moving expense reimbursement for services performed in the foreign country for 2013 by multiplying the total includible reimbursement by a fraction. Filing taxes for 2013 The fraction is the number of days of foreign residence during the year (90) divided by the number of days in the year (365). Filing taxes for 2013 The remaining part of the includible reimbursement is for services performed in the foreign country in 2012. Filing taxes for 2013 You report the amount of the includible reimbursement in 2013, the year you received it. Filing taxes for 2013    In this example, if you met the physical presence test for a period that included at least 120 days in 2013, the moving expense reimbursement would be considered earned entirely in the year of the move. Filing taxes for 2013 Storage expense reimbursements. Filing taxes for 2013   If you are reimbursed for storage expenses, the reimbursement is for services you perform during the period of time for which the storage expenses are incurred. Filing taxes for 2013 U. Filing taxes for 2013 S. Filing taxes for 2013 Government Employees For purposes of the foreign earned income exclusion, the foreign housing exclusion, and the foreign housing deduction, foreign earned income does not include any amounts paid by the United States or any of its agencies to its employees. Filing taxes for 2013 This includes amounts paid from both appropriated and nonappropriated funds. Filing taxes for 2013 The following organizations (and other organizations similarly organized and operated under United States Army, Navy, or Air Force regulations) are integral parts of the Armed Forces, agencies, or instrumentalities of the United States. Filing taxes for 2013 United States Armed Forces exchanges. Filing taxes for 2013 Commissioned and noncommissioned officers' messes. Filing taxes for 2013 Armed Forces motion picture services. Filing taxes for 2013 Kindergartens on foreign Armed Forces installations. Filing taxes for 2013 Amounts paid by the United States or its agencies to persons who are not their employees may qualify for exclusion or deduction. Filing taxes for 2013 If you are a U. Filing taxes for 2013 S. Filing taxes for 2013 Government employee paid by a U. Filing taxes for 2013 S. Filing taxes for 2013 agency that assigned you to a foreign government to perform specific services for which the agency is reimbursed by the foreign government, your pay is from the U. Filing taxes for 2013 S. Filing taxes for 2013 Government and does not qualify for exclusion or deduction. Filing taxes for 2013 If you have questions about whether you are an employee or an independent contractor, get Publication 15-A, Employer's Supplemental Tax Guide. Filing taxes for 2013 American Institute in Taiwan. Filing taxes for 2013   Amounts paid by the American Institute in Taiwan are not foreign earned income for purposes of the foreign earned income exclusion, the foreign housing exclusion, or the foreign housing deduction. Filing taxes for 2013 If you are an employee of the American Institute in Taiwan, allowances you receive are exempt from U. Filing taxes for 2013 S. Filing taxes for 2013 tax up to the amount that equals tax-exempt allowances received by civilian employees of the U. Filing taxes for 2013 S. Filing taxes for 2013 Government. Filing taxes for 2013 Allowances. Filing taxes for 2013   Cost-of-living and foreign-area allowances paid under certain acts of Congress to U. Filing taxes for 2013 S. Filing taxes for 2013 civilian officers and employees stationed in Alaska and Hawaii or elsewhere outside the 48 contiguous states and the District of Columbia can be excluded from gross income. Filing taxes for 2013 Post differentials are wages that must be included in gross income, regardless of the act of Congress under which they are paid. Filing taxes for 2013 More information. Filing taxes for 2013   Publication 516, U. Filing taxes for 2013 S. Filing taxes for 2013 Government Civilian Employees Stationed Abroad, has more information for U. Filing taxes for 2013 S. Filing taxes for 2013 Government employees abroad. Filing taxes for 2013 Exclusion of Meals and Lodging You do not include in your income the value of meals and lodging provided to you and your family by your employer at no charge if the following conditions are met. Filing taxes for 2013 The meals are furnished: On the business premises of your employer, and For the convenience of your employer. Filing taxes for 2013 The lodging is furnished: On the business premises of your employer, For the convenience of your employer, and As a condition of your employment. Filing taxes for 2013 If these conditions are met, do not include the value of the meals or lodging in your income, even if a law or your employment contract says that they are provided as compensation. Filing taxes for 2013 Amounts you do not include in income because of these rules are not foreign earned income. Filing taxes for 2013 If you receive a Form W-2, excludable amounts should not be included in the total reported in box 1 as wages. Filing taxes for 2013 Family. Filing taxes for 2013   Your family, for this purpose, includes only your spouse and your dependents. Filing taxes for 2013 Lodging. Filing taxes for 2013   The value of lodging includes the cost of heat, electricity, gas, water, sewer service, and similar items needed to make the lodging fit to live in. Filing taxes for 2013 Business premises of employer. Filing taxes for 2013   Generally, the business premises of your employer is wherever you work. Filing taxes for 2013 For example, if you work as a housekeeper, meals and lodging provided in your employer's home are provided on the business premises of your employer. Filing taxes for 2013 Similarly, meals provided to cowhands while herding cattle on land leased or owned by their employer are considered provided on the premises of their employer. Filing taxes for 2013 Convenience of employer. Filing taxes for 2013   Whether meals or lodging are provided for your employer's convenience must be determined from all the facts and circumstances. Filing taxes for 2013 Meals furnished at no charge are considered provided for your employer's convenience if there is a good business reason for providing them, other than to give you more pay. Filing taxes for 2013   On the other hand, if your employer provides meals to you or your family as a means of giving you more pay, and there is no other business reason for providing them, their value is extra income to you because they are not furnished for the convenience of your employer. Filing taxes for 2013 Condition of employment. Filing taxes for 2013   Lodging is provided as a condition of employment if you must accept the lodging to properly carry out the duties of your job. Filing taxes for 2013 You must accept lodging to properly carry out your duties if, for example, you must be available for duty at all times or you could not perform your duties if the lodging was not furnished. Filing taxes for 2013 Foreign camps. Filing taxes for 2013   If the lodging is in a camp located in a foreign country, the camp is considered part of your employer's business premises. Filing taxes for 2013 The camp must be: Provided for your employer's convenience because the place where you work is in a remote area where satisfactory housing is not available to you on the open market within a reasonable commuting distance, Located as close as reasonably possible in the area where you work, and Provided in a common area or enclave that is not available to the general public for lodging or accommodations and that normally houses at least ten employees. Filing taxes for 2013 Foreign Earned Income Exclusion If your tax home is in a foreign country and you meet the bona fide residence test or the physical presence test, you can choose to exclude from your income a limited amount of your foreign earned income. Filing taxes for 2013 Foreign earned income was defined earlier in this chapter. Filing taxes for 2013 You also can choose to exclude from your income a foreign housing amount. Filing taxes for 2013 This is explained later under Foreign Housing Exclusion. Filing taxes for 2013 If you choose to exclude a foreign housing amount, you must figure the foreign housing exclusion before you figure the foreign earned income exclusion. Filing taxes for 2013 Your foreign earned income exclusion is limited to your foreign earned income minus your foreign housing exclusion. Filing taxes for 2013 If you choose to exclude foreign earned income, you cannot deduct, exclude, or claim a credit for any item that can be allocated to or charged against the excluded amounts. Filing taxes for 2013 This includes any expenses, losses, and other normally deductible items allocable to the excluded income. Filing taxes for 2013 For more information about deductions and credits, see chapter 5 . Filing taxes for 2013 Limit on Excludable Amount You may be able to exclude up to $97,600 of your foreign earned income in 2013. Filing taxes for 2013 You cannot exclude more than the smaller of: $97,600, or Your foreign earned income (discussed earlier) for the tax year minus your foreign housing exclusion (discussed later). Filing taxes for 2013 If both you and your spouse work abroad and each of you meets either the bona fide residence test or the physical presence test, you can each choose the foreign earned income exclusion. Filing taxes for 2013 You do not both need to meet the same test. Filing taxes for 2013 Together, you and your spouse can exclude as much as $195,200. Filing taxes for 2013 Paid in year following work. Filing taxes for 2013   Generally, you are considered to have earned income in the year in which you do the work for which you receive the income, even if you work in one year but are not paid until the following year. Filing taxes for 2013 If you report your income on a cash basis, you report the income on your return for the year you receive it. Filing taxes for 2013 If you work one year, but are not paid for that work until the next year, the amount you can exclude in the year you are paid is the amount you could have excluded in the year you did the work if you had been paid in that year. Filing taxes for 2013 For an exception to this general rule, see Year-end payroll period, later. Filing taxes for 2013 Example. Filing taxes for 2013 You were a bona fide resident of Brazil for all of 2012 and 2013. Filing taxes for 2013 You report your income on the cash basis. Filing taxes for 2013 In 2012, you were paid $84,200 for work you did in Brazil during that year. Filing taxes for 2013 You excluded all of the $84,200 from your income in 2012. Filing taxes for 2013 In 2013, you were paid $117,300 for your work in Brazil. Filing taxes for 2013 $18,800 was for work you did in 2012 and $98,500 was for work you did in 2013. Filing taxes for 2013 You can exclude $10,900 of the $18,800 from your income in 2013. Filing taxes for 2013 This is the $95,100 maximum exclusion in 2012 minus the $84,200 actually excluded that year. Filing taxes for 2013 You must include the remaining $7,900 in income in 2013 because you could not have excluded that income in 2012 if you had received it that year. Filing taxes for 2013 You can exclude $97,600 of the $98,500 you were paid for work you did in 2013 from your 2013 income. Filing taxes for 2013 Your total foreign earned income exclusion for 2013 is $108,500 ($10,900 for work you did in 2012 and $97,600 for work you did in 2013). Filing taxes for 2013 You would include in your 2013 income $8,800 ($7,900 for the work you did in 2012 and $900 for the work you did in 2013). Filing taxes for 2013 Year-end payroll period. Filing taxes for 2013   There is an exception to the general rule that income is considered earned in the year you do the work for which you receive the income. Filing taxes for 2013 If you are a cash-basis taxpayer, any salary or wage payment you receive after the end of the year in which you do the work for which you receive the pay is considered earned entirely in the year you receive it if all four of the following apply. Filing taxes for 2013 The period for which the payment is made is a normal payroll period of your employer that regularly applies to you. Filing taxes for 2013 The payroll period includes the last day of your tax year (December 31 if you figure your taxes on a calendar-year basis). Filing taxes for 2013 The payroll period is not longer than 16 days. Filing taxes for 2013 The payday comes at the same time in relation to the payroll period that it would normally come and it comes before the end of the next payroll period. Filing taxes for 2013 Example. Filing taxes for 2013 You are paid twice a month. Filing taxes for 2013 For the normal payroll period that begins on the first of the month and ends on the fifteenth of the month, you are paid on the sixteenth day of the month. Filing taxes for 2013 For the normal payroll period that begins on the sixteenth of the month and ends on the last day of the month, you are paid on the first day of the following month. Filing taxes for 2013 Because all of the above conditions are met, the pay you received on January 1, 2013, is considered earned in 2013. Filing taxes for 2013 Income earned over more than 1 year. Filing taxes for 2013   Regardless of when you actually receive income, you must apply it to the year in which you earned it in figuring your excludable amount for that year. Filing taxes for 2013 For example, a bonus may be based on work you did over several years. Filing taxes for 2013 You determine the amount of the bonus that is considered earned in a particular year in two steps. Filing taxes for 2013 Divide the bonus by the number of calendar months in the period when you did the work that resulted in the bonus. Filing taxes for 2013 Multiply the result of (1) by the number of months you did the work during the year. Filing taxes for 2013 This is the amount that is subject to the exclusion limit for that tax year. Filing taxes for 2013 Income received more than 1 year after it was earned. Filing taxes for 2013   You cannot exclude income you receive after the end of the year following the year you do the work to earn it. Filing taxes for 2013 Example. Filing taxes for 2013   You were a bona fide resident of Sweden for 2011, 2012, and 2013. Filing taxes for 2013 You report your income on the cash basis. Filing taxes for 2013 In 2011, you were paid $69,000 for work you did in Sweden that year and in 2012 you were paid $74,000 for that year's work in Sweden. Filing taxes for 2013 You excluded all the income on your 2011 and 2012 returns. Filing taxes for 2013   In 2013, you were paid $92,000; $82,000 for your work in Sweden during 2013, and $10,000 for work you did in Sweden in 2011. Filing taxes for 2013 You cannot exclude any of the $10,000 for work done in 2011 because you received it after the end of the year following the year in which you earned it. Filing taxes for 2013 You must include the $10,000 in income. Filing taxes for 2013 You can exclude all of the $82,000 received for work you did in 2013. Filing taxes for 2013 Community income. Filing taxes for 2013   The maximum exclusion applies separately to the earnings of spouses. Filing taxes for 2013 Ignore any community property laws when you figure your limit on the foreign earned income exclusion. Filing taxes for 2013 Part-year exclusion. Filing taxes for 2013   If the period for which you qualify for the foreign earned income exclusion includes only part of the year, you must adjust the maximum limit based on the number of qualifying days in the year. Filing taxes for 2013 The number of qualifying days is the number of days in the year within the period on which you both: Have your tax home in a foreign country, and Meet either the bona fide residence test or the physical presence test. Filing taxes for 2013   For this purpose, you can count as qualifying days all days within a period of 12 consecutive months once you are physically present and have your tax home in a foreign country for 330 full days. Filing taxes for 2013 To figure your maximum exclusion, multiply the maximum excludable amount for the year by the number of your qualifying days in the year, and then divide the result by the number of days in the year. Filing taxes for 2013 Example. Filing taxes for 2013 You report your income on the calendar-year basis and you qualified for the foreign earned income exclusion under the bona fide residence test for 75 days in 2013. Filing taxes for 2013 You can exclude a maximum of 75/365 of $97,600, or $20,055, of your foreign earned income for 2013. Filing taxes for 2013 If you qualify under the bona fide residence test for all of 2014, you can exclude your foreign earned income up to the 2014 limit. Filing taxes for 2013 Physical presence test. Filing taxes for 2013   Under the physical presence test, a 12-month period can be any period of 12 consecutive months that includes 330 full days. Filing taxes for 2013 If you qualify for the foreign earned income exclusion under the physical presence test for part of a year, it is important to carefully choose the 12-month period that will allow the maximum exclusion for that year. Filing taxes for 2013 Example. Filing taxes for 2013 You are physically present and have your tax home in a foreign country for a 16-month period from June 1, 2012, through September 30, 2013, except for 16 days in December 2012 when you were on vacation in the United States. Filing taxes for 2013 You figure the maximum exclusion for 2012 as follows. Filing taxes for 2013 Beginning with June 1, 2012, count forward 330 full days. Filing taxes for 2013 Do not count the 16 days you spent in the United States. Filing taxes for 2013 The 330th day, May 12, 2013, is the last day of a 12-month period. Filing taxes for 2013 Count backward 12 months from May 11, 2013, to find the first day of this 12-month period, May 12, 2012. Filing taxes for 2013 This 12-month period runs from May 12, 2012, through May 11, 2013. Filing taxes for 2013 Count the total days during 2012 that fall within this 12-month period. Filing taxes for 2013 This is 234 days (May 12, 2012 – December 31, 2012). Filing taxes for 2013 Multiply $95,100 (the maximum exclusion for 2012) by the fraction 234/366 to find your maximum exclusion for 2012 ($60,802). Filing taxes for 2013 You figure the maximum exclusion for 2013 in the opposite manner. Filing taxes for 2013 Beginning with your last full day, September 30, 2013, count backward 330 full days. Filing taxes for 2013 Do not count the 16 days you spent in the United States. Filing taxes for 2013 That day, October 20, 2012, is the first day of a 12-month period. Filing taxes for 2013 Count forward 12 months from October 20, 2012, to find the last day of this 12-month period, October 19, 2013. Filing taxes for 2013 This 12-month period runs from October 20, 2012, through October 19, 2013. Filing taxes for 2013 Count the total days during 2013 that fall within this 12-month period. Filing taxes for 2013 This is 292 days (January 1, 2013 – October 19, 2013). Filing taxes for 2013 Multiply $97,600, the maximum limit, by the fraction 292/365 to find your maximum exclusion for 2013 ($78,080). Filing taxes for 2013 Choosing the Exclusion The foreign earned income exclusion is voluntary. Filing taxes for 2013 You can choose the exclusion by completing the appropriate parts of Form 2555. Filing taxes for 2013 When You Can Choose the Exclusion Your initial choice of the exclusion on Form 2555 or Form 2555-EZ generally must be made with one of the following returns. Filing taxes for 2013 A return filed by the due date (including any extensions). Filing taxes for 2013 A return amending a timely-filed return. Filing taxes for 2013 Amended returns generally must be filed by the later of 3 years after the filing date of the original return or 2 years after the tax is paid. Filing taxes for 2013 A return filed within 1 year from the original due date of the return (determined without regard to any extensions). Filing taxes for 2013 Filing after the above periods. Filing taxes for 2013   You can choose the exclusion on a return filed after the periods described above if you owe no federal income tax after taking into account the exclusion. Filing taxes for 2013 If you owe federal income tax after taking into account the exclusion, you can choose the exclusion on a return filed after the periods described earlier if you file before the IRS discovers that you failed to choose the exclusion. Filing taxes for 2013 Whether or not you owe federal income tax after taking the exclusion into account, if you file your return after the periods described earlier, you must type or legibly print at the top of the first page of the Form 1040 “Filed pursuant to section 1. Filing taxes for 2013 911-7(a)(2)(i)(D). Filing taxes for 2013 ” If you owe federal income tax after taking into account the foreign earned income exclusion and the IRS discovered that you failed to choose the exclusion, you may still be able to choose the exclusion. Filing taxes for 2013 You must request a private letter ruling under Income Tax Regulation 301. Filing taxes for 2013 9100-3 and Revenue Procedure 2013-1, 2013-1 I. Filing taxes for 2013 R. Filing taxes for 2013 B. Filing taxes for 2013 1, available at www. Filing taxes for 2013 irs. Filing taxes for 2013 gov/irb/2013-01_IRB/ar06. Filing taxes for 2013 html. Filing taxes for 2013 Effect of Choosing the Exclusion Once you choose to exclude your foreign earned income, that choice remains in effect for that year and all later years unless you revoke it. Filing taxes for 2013 Foreign tax credit or deduction. Filing taxes for 2013